“Let ’Em Gouge: A Defense of Price Gouging” is good libertarian, capitalistic stuff from Cato Institute. For instance:
[M]any of those . . . who will curse a blue streak if you put them in front of a camera and ask them about "Big Oil" are as we speak putting their houses on the market and enthusiastically gouging the living daylights out of anyone looking for a new home.
Who, me?
Point: getting the highest price is what we have come to expect and practice. Oil companies are a fat target, but
no one ever rages against real estate price gouging. In fact, the opposite is the case. Business reporters gush about returns and politicians pledge to do whatever it takes to keep the real estate bubble afloat.
What fools we mortals be. In any case, gouging is
good for everyone in the long run. Gougers are sending an important signal to market actors that something is scarce and that profits are available to those who produce or sell that something.
Yes. It’s signals like this that tell us where to invest our moola. A planned economy leaves such figuring up to commissars, who are notoriously no good at it. The conclusion is clear:
Blame not the price gouger. Blame the government that won't let the price gouger do his job,
by controlling prices and rationing. Tell commissars, czars, whatever we call them, to take a hike.
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