Panic in Persia as Hyperinflation Hits Iran | Steve H. Hanke | Cato Institute: Commentary
EXCERPTS:
"The implied monthly inflation rate for September [in Iran] was 69.6%. Since the hurdle rate to qualify for hyperinflation – as defined by US economist Philip Cagan – is 50% per month, Iran registered what appears to be the start of the world's 58th hyperinflation episode.
Monday, November 26, 2012
Natural disasters benefit the economy (and other myths) - FBN | TV | Cato Institute
Sallie James on myth of natural disasters stimulating economy on FBN | Media Highlights - TV | Cato Institute
Interesting discussion of several myths that are believed by many otherwise intelligent people.
Interesting discussion of several myths that are believed by many otherwise intelligent people.
Wednesday, November 21, 2012
Twinkees, unions, and jobs
Killing the Goose | RealClearPolitics
EXCERPTS:
"Many people think of labor unions as organizations to benefit workers, and think of employers who are opposed to unions as just people who don't want to pay their employees more money. But some employers have made it a point to pay their employees more than the union wages, just to keep them from joining a union.
"Why would they do that, if it is just a question of not wanting to pay union wages? The Twinkies bankruptcy is a classic example of costs created by labor unions that are not confined to paychecks.
"The work rules imposed in union contracts required the company that makes Twinkies, which also makes Wonder Bread, to deliver these two products to stores in separate trucks. Moreover, truck drivers were not allowed to load either of these products into their trucks. And the people who did load Twinkies into trucks were not allowed to load Wonder Bread, and vice versa.
"All of this was obviously intended to create more jobs for the unions' members. But the needless additional costs that these make-work rules created ended up driving the company into bankruptcy, which can cost 18,500 jobs. The union is killing the goose that laid the golden egg.
EXCERPTS:
"Many people think of labor unions as organizations to benefit workers, and think of employers who are opposed to unions as just people who don't want to pay their employees more money. But some employers have made it a point to pay their employees more than the union wages, just to keep them from joining a union.
"Why would they do that, if it is just a question of not wanting to pay union wages? The Twinkies bankruptcy is a classic example of costs created by labor unions that are not confined to paychecks.
"The work rules imposed in union contracts required the company that makes Twinkies, which also makes Wonder Bread, to deliver these two products to stores in separate trucks. Moreover, truck drivers were not allowed to load either of these products into their trucks. And the people who did load Twinkies into trucks were not allowed to load Wonder Bread, and vice versa.
"All of this was obviously intended to create more jobs for the unions' members. But the needless additional costs that these make-work rules created ended up driving the company into bankruptcy, which can cost 18,500 jobs. The union is killing the goose that laid the golden egg.
Monday, November 19, 2012
Wednesday, November 14, 2012
Monday, November 12, 2012
How to Fix the Gas Shortage: Let ’em Gouge - US Business News Blogs - CNBC
How to Fix the Gas Shortage: Let ’em Gouge - US Business News Blogs - CNBC
EXCERPTS:
"There’s good reason for the widespread condemnation of anti-gouging laws: they are—almost—universally harmful. There’s no public good or special interest benefited by the laws. And especially when it comes to necessities like gasoline, the harm they do is sharply felt by a large part of the population.
EXCERPTS:
"There’s good reason for the widespread condemnation of anti-gouging laws: they are—almost—universally harmful. There’s no public good or special interest benefited by the laws. And especially when it comes to necessities like gasoline, the harm they do is sharply felt by a large part of the population.
"So why do we have these stupid laws at all?
***
"As it turns out there is one set of actors who does benefit from these laws—politicians. Anti-gouging laws allow politicians to appear as if they are defending the interests of the people in a time of crisis—even if they are actually doing nothing of the sort. The politicians who vote for the laws tout them as “consumer protection” and the politicians who enforce them almost always do so loudly and obviously, condemning profiteers. The typical impotence of politicians in the face of a crisis is concealed by their intervention against higher prices.
"This malarkey is made possible because there is no visible, directly observable connection between the shortage and the price-control. It takes at least a moment’s concentration to connect the dots, and the politicians do everything they can do prevent such concentration from happening.
The Morality of the Free Market - Walter Williams - YouTube
Prager University: Free Market Morality - YouTube
Walter Williams is another of my favorite economists. He's a UCLA Ph.D. who's been at George Mason University for years.
Walter Williams is another of my favorite economists. He's a UCLA Ph.D. who's been at George Mason University for years.
Saturday, November 10, 2012
Craigslist Crime Wave - WSJ.com
Review & Outlook: Craigslist Crime Wave - WSJ.com
EXCERPTS:
"Hurricane Sandy and its aftermath continue to offer lessons in Economics 101, if not in political good judgment. One of them flows from the widespread notion that it is somehow wrong to allocate scarce resources to those willing to pay for them.
First we had the contrasting spectacles in New York and New Jersey over gasoline. New Jersey rationed the supply with some degree of success by declaring that cars with odd and even license plates could buy on alternate days. But New York Governor Andrew Cuomo decided residents of hard hit areas would be getting an allotment of 10 gallons for "free." Chaos requiring National Guard intervention was the result. New York City and Long Island have now imposed a version of the New Jersey rationing scheme, to much better effect.
Now comes word that the Attorneys General of both states intend to prosecute people for "price gouging." New York Attorney General Eric Schneiderman has subpoenaed the Craigslist website for the identities of people who advertised gas for sale at high prices. Mr. Schneiderman is doing this in the name of a New York law that forbids charging an "unconscionably excessive price" during an "abnormal disruption in the market."
But "unconscionable" isn't exactly the clear red line one might want in something calling itself a law. One man's unconscionable price might be another's job-saving gasoline supply. So among all the potential crimes he might look to prosecute, Mr. Schneiderman is throwing his department's scarce resources in pursuit of the mobster housewives selling their surplus gas. Maybe we need a law against "political gouging."
New Jersey's law is clearer, but more draconian and as wrong-headed. It says merchants can't charge more than a 10% mark-up for a 30-day period following a state of emergency. State Attorney General Jeffrey Chiesa announced cases against eight businesses, including gas stations and a lodging provider, on Friday.
The danger of all this is obvious. Why would you want to discourage the private sector from moving goods to a needy region in crisis? The cost of doing so might easily justify a mark-up well in excess of 10%. Natural disasters are precisely when we most need market incentives for the provision of things like gas, power, clean water and lodging.
It's not as if the Federal Emergency Management Agency has shown itself up to the job. Price gouging suits are an awfully convenient way for government to point the finger of blame away from its failures to provide even basic services in emergencies. Ask John Shepperson, who was jailed for the crime of trying to bring generators from Kentucky, at a mere double his cost, to the victims of Hurricane Katrina.
Which makes us wonder: If "unconscionable" is going to be the standard, might New York taxpayers have a case against the government for the high taxes that couldn't produce a competent response to Hurricane Sandy?
EXCERPTS:
"Hurricane Sandy and its aftermath continue to offer lessons in Economics 101, if not in political good judgment. One of them flows from the widespread notion that it is somehow wrong to allocate scarce resources to those willing to pay for them.
First we had the contrasting spectacles in New York and New Jersey over gasoline. New Jersey rationed the supply with some degree of success by declaring that cars with odd and even license plates could buy on alternate days. But New York Governor Andrew Cuomo decided residents of hard hit areas would be getting an allotment of 10 gallons for "free." Chaos requiring National Guard intervention was the result. New York City and Long Island have now imposed a version of the New Jersey rationing scheme, to much better effect.
Now comes word that the Attorneys General of both states intend to prosecute people for "price gouging." New York Attorney General Eric Schneiderman has subpoenaed the Craigslist website for the identities of people who advertised gas for sale at high prices. Mr. Schneiderman is doing this in the name of a New York law that forbids charging an "unconscionably excessive price" during an "abnormal disruption in the market."
But "unconscionable" isn't exactly the clear red line one might want in something calling itself a law. One man's unconscionable price might be another's job-saving gasoline supply. So among all the potential crimes he might look to prosecute, Mr. Schneiderman is throwing his department's scarce resources in pursuit of the mobster housewives selling their surplus gas. Maybe we need a law against "political gouging."
New Jersey's law is clearer, but more draconian and as wrong-headed. It says merchants can't charge more than a 10% mark-up for a 30-day period following a state of emergency. State Attorney General Jeffrey Chiesa announced cases against eight businesses, including gas stations and a lodging provider, on Friday.
The danger of all this is obvious. Why would you want to discourage the private sector from moving goods to a needy region in crisis? The cost of doing so might easily justify a mark-up well in excess of 10%. Natural disasters are precisely when we most need market incentives for the provision of things like gas, power, clean water and lodging.
It's not as if the Federal Emergency Management Agency has shown itself up to the job. Price gouging suits are an awfully convenient way for government to point the finger of blame away from its failures to provide even basic services in emergencies. Ask John Shepperson, who was jailed for the crime of trying to bring generators from Kentucky, at a mere double his cost, to the victims of Hurricane Katrina.
Which makes us wonder: If "unconscionable" is going to be the standard, might New York taxpayers have a case against the government for the high taxes that couldn't produce a competent response to Hurricane Sandy?
Thursday, November 8, 2012
Some post-election cheer and encouragement
Some post-election cheer and encouragement
EXCERPT:
"His election has revealed that the American people chose someone who wants the US to be more like Europe–more statist and paternalistic. I have heard people who feel like giving up. If we can’t beat this guy, it’s over. We’re on the road to serfdom. Could be. But I think the glass is more half-full than half-empty. So here is some cheer for those of you who are pessimistic about the future.
"Yes, a little over half of the people who voted, a little over 60 million people, thought Obama deserved a second term. But about 59 million (the combined Romney and Gary Johnson votes) disagreed. That’s pretty close. Politics is winner-take-all, a zero-sum game. But those totals tell you just how close it was and how little it will take to change the outcome.
EXCERPT:
"His election has revealed that the American people chose someone who wants the US to be more like Europe–more statist and paternalistic. I have heard people who feel like giving up. If we can’t beat this guy, it’s over. We’re on the road to serfdom. Could be. But I think the glass is more half-full than half-empty. So here is some cheer for those of you who are pessimistic about the future.
"Yes, a little over half of the people who voted, a little over 60 million people, thought Obama deserved a second term. But about 59 million (the combined Romney and Gary Johnson votes) disagreed. That’s pretty close. Politics is winner-take-all, a zero-sum game. But those totals tell you just how close it was and how little it will take to change the outcome.
Monday, November 5, 2012
Sandy Price Gouging Probed: $7 Loaf of Bread, $10 Box of Matches | NBC New York
Sandy Price Gouging Probed: $7 Loaf of Bread, $10 Box of Matches | NBC New York
EXCERPTS:
EXCERPTS:
"More than 400 possible cases of price gouging of gasoline and other essentials, including a $10 box of matches and $7 loaf of bread, have been reported in New York before and after Sandy.
Reports are being investigated in New York City, the Hudson Valley and on Long Island by state Attorney General Eric Schneiderman.
Schneiderman said Monday that he's investigating an increasing number of reports of spikes in prices for essential goods including gasoline, food, bottled water, generators, batteries and flashlights. The probe can include sharp, unwarranted increases in the cost of prices by retailers including supermarkets, hardware stores, bodegas, delis, hotels and taxis, he said.
In one report, the cost of a bag of potatoes jumped to $7, up from $3 before the storm hit. The cost of the box of matches appears more than three times the usual cost, and the loaf of bread is more than double the usual cost.
New Yorkers can report price gouging by telephone at 800-771-7755 or through his office website.
"We are actively investigating hundreds of complaints we've received from consumers of businesses preying on victims of Hurricane Sandy," Schneiderman said. "Our office has zero tolerance for price gouging."
No arrests were reported as of Monday. Schneiderman wouldn't discuss details of the reports or the investigation.
Vendors may defend higher prices if they can show an increased cost of obtaining goods from wholesalers or in delivering services, making prosecutions difficult.
State business law prohibits an "unconscionably excessive price" during an "abnormal disruption of the market" that unfairly takes advantage of consumers.
Last summer, Schneiderman sued some gas stations for price gouging following Tropical Storm Irene. The reports of price gouging were relative low during that storm, which ravaged parts of upstate New York. Schneiderman had sent warning letters to major vendors before Irene and before Sandy.
In August, a Yonkers gas station increased its price from $3.89 a gallon before Irene hit to $4.79 two days later, drawing from the same delivery of gas received before the storm hit. The station lowered the price again, to $3.83, when Irene left. The company settled the suit without admitting guilt for $7,500, Schneiderman said.
A Farmingdale gas station on Long Island raised its price 84 cents per gallon when Irene hit. That gas station settled the lawsuit against it for $3,000.
Saturday, November 3, 2012
Huge crowds line up for free gas trucked in by government; Public told to stay away, make room for first responders
Huge crowds line up for free gas trucked in by government; Public told to stay away, make room for first responders
EXCERPTS:
"More New Yorkers got power Saturday for the first time since Superstorm Sandy struck the region, but frustrations mounted over gasoline shortages as refueling sites turned into traffic jams of horn-honking confusion.
Gas rationing went into effect in northern New Jersey, while crowds lined up at free fuel distribution sites in New York's boroughs, where a limit of 10 gallons per person was imposed. New York officials then said emergency vehicles had the priority over the public.
"It's chaos, pandemonium out here," said Chris Damon, whose family was displaced from his home in the Queens neighborhood of Far Rockaway and are staying with relatives in Brooklyn. He circled the block for 3½ hours at the Brooklyn Armory, where the National Guard was directing traffic.
"It's ridiculous. No one knows what's going on," he said.
New York Gov. Andrew Cuomo had announced that the 5,000-gallon trucks from the Defense Department would set up the emergency mobile gas stations at five locations around the New York City metropolitan area.
"Do not panic. I know there is anxiety about fuel," he said.
The scene was more orderly in hard-hit Staten Island, where a line of cars stretched for two miles under the supervision of police and National Guard troops. Another 400 people were on foot, carrying gas cans.
As gas rationing went into effect at noon in northern New Jersey, police began enforcing rules to allow only motorists with odd-numbered license plates to refuel. Those with even-numbered plates must wait until Sunday.
Jessica Tisdale of Totowa waited in her Mercedes SUV for 40 minutes at a gas station in Jersey City, but didn't quite understand the rules and was ordered to pull away because of her even-numbered plate.
"Is it the number or the letter?" she asked around 12:10 p.m. "I don't think it's fair. I've been in the line since before noon. I don't think it's fair. There's no clarity."
The officer who waved her out of line threw up his hands and shrugged.
At an Exxon station in Wall, N.J., Kathryn Davidson was unaware of the start of rationing but beat the noon deadline despite a 45-minute wait in line and an even-numbered plate.
"How are people supposed to know?" said Davidson, 53, who said it reminded her of the 1970s, when a similar plan was in place.
"There were fistfights and everything. It got nasty," she said. "Everyone seems pretty pleasant as of right now."
EXCERPTS:
"More New Yorkers got power Saturday for the first time since Superstorm Sandy struck the region, but frustrations mounted over gasoline shortages as refueling sites turned into traffic jams of horn-honking confusion.
Gas rationing went into effect in northern New Jersey, while crowds lined up at free fuel distribution sites in New York's boroughs, where a limit of 10 gallons per person was imposed. New York officials then said emergency vehicles had the priority over the public.
"It's chaos, pandemonium out here," said Chris Damon, whose family was displaced from his home in the Queens neighborhood of Far Rockaway and are staying with relatives in Brooklyn. He circled the block for 3½ hours at the Brooklyn Armory, where the National Guard was directing traffic.
"It's ridiculous. No one knows what's going on," he said.
New York Gov. Andrew Cuomo had announced that the 5,000-gallon trucks from the Defense Department would set up the emergency mobile gas stations at five locations around the New York City metropolitan area.
"Do not panic. I know there is anxiety about fuel," he said.
The scene was more orderly in hard-hit Staten Island, where a line of cars stretched for two miles under the supervision of police and National Guard troops. Another 400 people were on foot, carrying gas cans.
As gas rationing went into effect at noon in northern New Jersey, police began enforcing rules to allow only motorists with odd-numbered license plates to refuel. Those with even-numbered plates must wait until Sunday.
Jessica Tisdale of Totowa waited in her Mercedes SUV for 40 minutes at a gas station in Jersey City, but didn't quite understand the rules and was ordered to pull away because of her even-numbered plate.
"Is it the number or the letter?" she asked around 12:10 p.m. "I don't think it's fair. I've been in the line since before noon. I don't think it's fair. There's no clarity."
The officer who waved her out of line threw up his hands and shrugged.
At an Exxon station in Wall, N.J., Kathryn Davidson was unaware of the start of rationing but beat the noon deadline despite a 45-minute wait in line and an even-numbered plate.
"How are people supposed to know?" said Davidson, 53, who said it reminded her of the 1970s, when a similar plan was in place.
"There were fistfights and everything. It got nasty," she said. "Everyone seems pretty pleasant as of right now."
Christie Orders Odd-Even Rationing System For Filling Up Gas Tanks « CBS New York
Christie Orders Odd-Even Rationing System For Filling Up Gas Tanks « CBS New York
BRICK, N.J. (CBSNewYork) — New Jersey Gov. Chris Christie spoke Friday afternoon and said the state was “inching closer to normalcy” following the devastation of Superstorm Sandy.
But things seemed far from normal after the governor issued a gas rationing system to ease the strain several hours later. Starting at noon Saturday, New Jersey will move to an odd-even gas rationing system in 12 counties as part of a “limited state of energy emergency.”
Christie ordered odd-even fuel sales to help ease shortages and long gas lines that have occurred since Sandy decimated the coast earlier this week.
Residents with license plates ending in an odd number can make gas purchases on odd-numbered days of the month Residents with plates ending in an even number will be able to buy gas on even-numbered days, the governor said.
Not everybody was in love with the idea.
“I think it’ll hurt. I think they should just let people line up and get gas — first come first served,” Secaucus resident John Lambert told CBS 2′s Derricke Dennis on Friday night.
“Come on. People got jobs, gotta go to work. What difference does it make — odd days or even days? It really doesn’t matter,” added Todd Swain of Passaic.
BRICK, N.J. (CBSNewYork) — New Jersey Gov. Chris Christie spoke Friday afternoon and said the state was “inching closer to normalcy” following the devastation of Superstorm Sandy.
But things seemed far from normal after the governor issued a gas rationing system to ease the strain several hours later. Starting at noon Saturday, New Jersey will move to an odd-even gas rationing system in 12 counties as part of a “limited state of energy emergency.”
Christie ordered odd-even fuel sales to help ease shortages and long gas lines that have occurred since Sandy decimated the coast earlier this week.
Residents with license plates ending in an odd number can make gas purchases on odd-numbered days of the month Residents with plates ending in an even number will be able to buy gas on even-numbered days, the governor said.
Not everybody was in love with the idea.
“I think it’ll hurt. I think they should just let people line up and get gas — first come first served,” Secaucus resident John Lambert told CBS 2′s Derricke Dennis on Friday night.
“Come on. People got jobs, gotta go to work. What difference does it make — odd days or even days? It really doesn’t matter,” added Todd Swain of Passaic.
Price gouging complaints in New Jersey - New York News | NYC Breaking News
Price gouging complaints in New Jersey - New York News | NYC Breaking News
EXCERPTS:
MYFOXNY.COM -
"The New Jersey Division of Consumer Affairs issued subpoenas to 65 businesses across the state Friday after more than 500 consumer complaints about alleged price gouging.
"Having seen firsthand the suffering people are experiencing, I assure New Jersey's residents and retailers that we are taking a zero-tolerance approach to price gouging," said Governor Christie. "We are not asking businesses to function as charities. We require that they obey New Jersey's laws – or pay significant penalties."
Attorney General Chiesa noted that the Division has received allegations of price gouging from all regions of the state, with complaints particularly prominent in Bergen, Essex, Middlesex, Monmouth, Ocean, and Passaic counties.
The top complaint categories are:
-Gasoline, with gas prices in some cases allegedly rising by $1 or more per gallon immediately following the storm, in some cases allegedly exceeding $5 per gallon. The Division has also received complaints about gas stations charging more to fill up hand-held canisters than to fill car gas tanks, in apparent violation of state Motor Fuels Act protections related to fuel prices.
-Generators, Batteries and Non-Gasoline Fuels such as propane; with generator prices allegedly doubling from pre-storm prices.
-Food, including reports of unexpectedly high prices at convenience stores and restaurants in certain areas, affecting consumers who are unable to cook a hot meal at home due to power outages.
-Lodging, including complaints about hotels and motels significantly raising their prices, allegedly for rooms that were rented at much lower rates before the storm.
Consumers who suspect price gouging or any other violation of consumer protection laws, particularly as a result of Hurricane Sandy, are urged to call the Division of Consumer Affairs at (800) 242-5846.
Read more: http://www.myfoxny.com/story/19990960/price-gouging-complaints-in-new-jersey#ixzz2BCTWfrJv
EXCERPTS:
MYFOXNY.COM -
"The New Jersey Division of Consumer Affairs issued subpoenas to 65 businesses across the state Friday after more than 500 consumer complaints about alleged price gouging.
"Having seen firsthand the suffering people are experiencing, I assure New Jersey's residents and retailers that we are taking a zero-tolerance approach to price gouging," said Governor Christie. "We are not asking businesses to function as charities. We require that they obey New Jersey's laws – or pay significant penalties."
Attorney General Chiesa noted that the Division has received allegations of price gouging from all regions of the state, with complaints particularly prominent in Bergen, Essex, Middlesex, Monmouth, Ocean, and Passaic counties.
The top complaint categories are:
-Gasoline, with gas prices in some cases allegedly rising by $1 or more per gallon immediately following the storm, in some cases allegedly exceeding $5 per gallon. The Division has also received complaints about gas stations charging more to fill up hand-held canisters than to fill car gas tanks, in apparent violation of state Motor Fuels Act protections related to fuel prices.
-Generators, Batteries and Non-Gasoline Fuels such as propane; with generator prices allegedly doubling from pre-storm prices.
-Food, including reports of unexpectedly high prices at convenience stores and restaurants in certain areas, affecting consumers who are unable to cook a hot meal at home due to power outages.
-Lodging, including complaints about hotels and motels significantly raising their prices, allegedly for rooms that were rented at much lower rates before the storm.
Consumers who suspect price gouging or any other violation of consumer protection laws, particularly as a result of Hurricane Sandy, are urged to call the Division of Consumer Affairs at (800) 242-5846.
Read more: http://www.myfoxny.com/story/19990960/price-gouging-complaints-in-new-jersey#ixzz2BCTWfrJv
‘Maximum temperature law’ to prevent ‘temperature gouging’ makes as much sense as laws to prevent ‘price gouging’
‘Maximum temperature law’ to prevent ‘temperature gouging’ makes as much sense as laws to prevent ‘price gouging’
Excellent analogy that shows what prices really are, and why price controls inevitably produce unintended and undesirable effects.
Excellent analogy that shows what prices really are, and why price controls inevitably produce unintended and undesirable effects.
Friday, November 2, 2012
"I want to be a consumer"
I want to be a consumer
The poem found at this Mises blog is worth reading, especially when thinking about the Keynesian view of the economy.
The poem found at this Mises blog is worth reading, especially when thinking about the Keynesian view of the economy.
An example of laws against "price gouging" - New Jersey
Christie warns merchants of price gouging during storm | Courier-Post | courierpostonline.com
"New Jersey’s price gouging statute makes it illegal to set excessive price increases during a declared state of emergency or for 30 days after the termination of the state of emergency.
"Price increases are deemed excessive under the law if they are more than 10 percent above the price at which the good or service was sold during the normal course of business before the state of emergency.
"The law does allow that, if the merchant faces additional costs imposed by suppliers or legitimate logistical concerns, a price increase is considered excessive if it is more than 10 percent above the amount of markup from cost, compared with the markup normally applied.
"As a reminder of the penalties, Christie pointed out the case of a Sussex County gas station accused of raising fuel prices more than 16 percent last year during Irene. To settle an enforcement action by the Division of Consumer Affairs, that business recently agreed to pay $50,000.
"New Jersey’s price gouging statute makes it illegal to set excessive price increases during a declared state of emergency or for 30 days after the termination of the state of emergency.
"Price increases are deemed excessive under the law if they are more than 10 percent above the price at which the good or service was sold during the normal course of business before the state of emergency.
"The law does allow that, if the merchant faces additional costs imposed by suppliers or legitimate logistical concerns, a price increase is considered excessive if it is more than 10 percent above the amount of markup from cost, compared with the markup normally applied.
"As a reminder of the penalties, Christie pointed out the case of a Sussex County gas station accused of raising fuel prices more than 16 percent last year during Irene. To settle an enforcement action by the Division of Consumer Affairs, that business recently agreed to pay $50,000.
Price Gouging Saves Lives in a Hurricane - David M. Brown - Mises Daily
Price Gouging Saves Lives in a Hurricane - David M. Brown - Mises Daily
EXCERPT:
"Prices are how scarce goods get allocated in markets in accordance with actual conditions. When demand increases, prices go up, all other things being equal. It's not immoral. If orange groves are frozen over (or devastated by Hurricane Charley), leading to fewer oranges going to market, the price of oranges on the market is going to go up as a result of the lower supply. And if demand for a good suddenly lapses or supply of that good suddenly expands, prices will go down. Should lower prices be illegal too?"
EXCERPT:
"Prices are how scarce goods get allocated in markets in accordance with actual conditions. When demand increases, prices go up, all other things being equal. It's not immoral. If orange groves are frozen over (or devastated by Hurricane Charley), leading to fewer oranges going to market, the price of oranges on the market is going to go up as a result of the lower supply. And if demand for a good suddenly lapses or supply of that good suddenly expands, prices will go down. Should lower prices be illegal too?"
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