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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThere Is a Plague Loose Upon the Land
Published on Friday, May 4, 2012 by Common Dreams
There Is a Plague Loose Upon the Land
by David Macaray
Most states in the union have laws against gouging. Broadly speaking, gouging is defined as the practice of arbitrarily raising prices on necessary goods, such as milk, bottled water, baby food, baby formula, bread, etc., in response to civil emergencies (riots, martial law) or natural disasters (earthquakes, floods, tornadoes).
For example, an anti-gouging law would prohibit the owner of a neighborhood convenience store, in the wake of a massive earthquake, from tripling or quadrupling the price of drinking water. This consumer-protection device is one more instance of a benevolent governments vital role in regulating the so-called free market. What could be fairer?
However, there are market fanatics out there who abhor these anti-gouging laws. One of their arguments is the reliable, time-honored appeal to the slippery-slope. This argument maintains that if we allow the government to interfere with the sacrosanct Law of Supply and Demand, if we give it the power to approve or disapprove of a sticker price, the next step will be rigid restrictions on how much profit were entitled to make, and the next step after that will be transforming us from the Land of Opportunity into a communist state.
Another argument is that, even in a grave emergencysay, in the aftermath of a major earthquake, with roads buckled, buildings collapsed, gas lines and water mains brokenthe free market, in its genius, can be counted upon to automatically make the necessary corrections, because competing stores will adjust their prices accordingly, in order to attract customers (as if comparison shopping will continue unimpeded). .................(more)
The complete piece is at: http://www.commondreams.org/view/2012/05/04-1
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There Is a Plague Loose Upon the Land (Original Post)
marmar
May 2012
OP
This is so true. Ask any Floridian who has lived through hurricanes. Gas prices rise before the
monmouth
May 2012
#1
It's one thing to believe in the price signal -- even Marxist regimes today do
Recursion
May 2012
#2
monmouth
(21,078 posts)1. This is so true. Ask any Floridian who has lived through hurricanes. Gas prices rise before the
last drop of rain has fallen and the last wind has blown out to sea. I will say the authorities do try to tamp this down but it still happens.
Recursion
(56,582 posts)2. It's one thing to believe in the price signal -- even Marxist regimes today do
It's quite another thing to say the price signal cannot be disrupted, which is what some of these jack-offs today believe.