I am in earnest, I will not equivocate, I will not excuse, I will not retreat a single inch, and I will be heard.


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Heartless Libertarian
"Giving money and power to government is like giving whiskey and car keys to teenage boys." P.J. O'Rourke
 
9/22/2005

On "Price Gouging" 


Yay.  Elected idiots are once again demostrating economic ignorance in order to posture for the media and look good for their constituents.  This time it's by calling for investigations of "price gouging" by gasoline vendors.  Last year after the hurricanes blew through Florida it was plywood and other hurricane supplies.

Is it really gouging if there exists competition, and no collusion, in a product marketplace?  Because last I checked, there were a whole bunch of different companies selling gas, and all of them would, I'm sure, be quick to scoop up as much extra business, and profit, as they could by underselling their competitors.  The fact stands that consumers are willing to pay the prices that sellers are asking.  Demand has remained high despite increases in price.  If the oil companies are making lots of money, good for them.  If people were smart, amybe they'd buy stock in those companies and get a share of those profits for themselves.

As a side thought, why aren't any of these people calling for investigations of price gouging in, say, the entertainment industry?  Why no proposals for legislation on $10 movie tickets and popcorn, or $250 concert tickets?  I guess it all depends on where your campaign contributions come from.


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