Magnifying Calamity with Man-Caused Disasters | Michael Giberson | Cato Institute: Commentary

Magnifying Calamity with Man-Caused Disasters | Michael Giberson | Cato Institute: Commentary: "Price-gouging laws usually apply during emergencies. They are meant to help consumers. Unfortunately, the laws interrupt actions by consumers and businesses that would promote recovery.

Higher prices encourage consumers to be especially careful with goods that have become especially useful. Higher prices encourage retailers and wholesalers to go to extraordinary efforts to bring goods consumers need into disaster-struck areas.

A law that keeps prices low discourages these responses and leaves more disaster-recovery work for charities and government agencies."