"The Problem With Price Gouging Laws"

Is Price Gouging Unethical?

The article written by Michael Giberson highlights the problems with many states attempting and succeeding in their use of price gouging laws. Price gouging laws seem morally correct, as the article shows, however it goes against all economic thinking. 

"Economic analysis of the effects of price gouging laws reveals concerns on both the demand and supply sides of the market. As already noted, price constraints will discourage conservation of goods at exactly the time they are in especially high demand. Simultaneously, price caps discourage extraordinary efforts to bring goods in high demand into the affected area. As Sowell explained, price gouging laws keep goods from being used where they are most needed. It is a result not intended by state legislators, but completely predictable."

The quote above shows simply the economic consequences of price gouging and how states such as Georgia, South Carolina, and others need to re-think their price gouging laws. I agree with Michael Giberson and think that by instating price gouging laws many states are just going against the natural flow of the economy. The more laws that are instated, like the price gouging law, the more our economy will continue to suffer.