This is bound to happen when we teach crap economics in school.
The state’s consumer affairs office has subpoenaed sales records of at least nine gas stations since Hurricane Ike disrupted fuel supplies and drove prices beyond $5 a gallon in some areas, an official said Wednesday.
On Tuesday night I was the lone dissenter on City Council voting against a resolution to encourage people to report price gouging.
Price gouging is populist pablum without any basis in real economics. Better raise prices and have enough fuel to go around than be forced to freeze prices, ration, and run out of gas.
The market works fine when we let it. Even this whole banking crisis — had we not allowed Fannie Mae and Freddie Mac to start encroach in areas not their purvey thereby forcing other lending institutions into riskier and riskier schemes to stay competitive, we’d not be in the mess we’re presently in.
Let the market work and let AIG fail.