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>Can you elaborate? Does he want to remove the anti-"gouging" laws? Quite the opposite, he's a somewhat populist moderate Republican. He plans to prosecute peo

>Can you elaborate? Does he want to remove the anti-"gouging" laws? Quite the opposite, he's a somewhat populist moderate Republican. He plans to prosecute people guilty of increasing their prices more than 10% during the crisis to full extent of the law.

gwright 14y ago
This is perhaps good politics, but it is stupid economics. Restricting price changes during a crisis (or any time really) is a fantastic way to create shortages, delay the arrival of needed or substitute resources, encourage hording, and so on.
- pyre 14y ago
  Do you really think that raising (e.g.) gas prices by a large margin will somehow redirect resources to getting more gas into those areas? * The gas stations without electricity aren't to get electricity any fast because the price of gas is higher. * Gasoline shipments aren't going to come any faster. * New gas stations aren't going to pop up as entrepreneurs move into the area to capitalize on increased demand for gas. A disaster isn't necessarily a 'market force.' No one is going to get supplies into a disaster zone faster because they are trying to turn a quick buck. Especially since it isn't like they can setup shop and expect the increased prices to persist.
  - jlgreco 14y ago
    Raising prices will reduce the amount of gas people are willing to put into their cars when they finally do pull up to a working pump. If more people only fill up partially, then more people will be able to make due for a time.
  - fr0sty 14y ago
    > The gas stations without electricity aren't to get electricity any fast because the price of gas is higher. If you can sell gas for $10/gal then it becomes worthwhile to get a generator and start pumping gas. If you can't sell gas at a premium you won't bother. You could say the same for anyone with a truck that has a bulk tank. If they could go house to house selling gasoline at a premium you can bet good money people would be trucking in thousands of gallons of fuel for generators. But that's price gouging so everyone goes without...

gwright 14y ago

This is perhaps good politics, but it is stupid economics. Restricting price changes during a crisis (or any time really) is a fantastic way to create shortages, delay the arrival of needed or substitute resources, encourage hording, and so on.

pyre 14y ago
Do you really think that raising (e.g.) gas prices by a large margin will somehow redirect resources to getting more gas into those areas? * The gas stations without electricity aren't to get electricity any fast because the price of gas is higher. * Gasoline shipments aren't going to come any faster. * New gas stations aren't going to pop up as entrepreneurs move into the area to capitalize on increased demand for gas. A disaster isn't necessarily a 'market force.' No one is going to get supplies into a disaster zone faster because they are trying to turn a quick buck. Especially since it isn't like they can setup shop and expect the increased prices to persist.
- jlgreco 14y ago
  Raising prices will reduce the amount of gas people are willing to put into their cars when they finally do pull up to a working pump. If more people only fill up partially, then more people will be able to make due for a time.
- fr0sty 14y ago
  > The gas stations without electricity aren't to get electricity any fast because the price of gas is higher. If you can sell gas for $10/gal then it becomes worthwhile to get a generator and start pumping gas. If you can't sell gas at a premium you won't bother. You could say the same for anyone with a truck that has a bulk tank. If they could go house to house selling gasoline at a premium you can bet good money people would be trucking in thousands of gallons of fuel for generators. But that's price gouging so everyone goes without...