OK, I have faith in young people again — at least the ones who understand markets. From Duke political science professor Mike Munger’s blog comes this student-produced video about price gouging and the confusing logic required to believe that government must step in to make sure prices aren’t “too high.”
Yes, folks, right here in North Carolina, we have our very own “price gouging” law. Whether we’re talking about the scarcity of ice in the aftermath of a hurricane, or the scarcity of gas following a supply interruption, price gouging laws are not the solution to achieve the “right price.” JLF’s Roy Cordato explains why in this brief interview from 2008.
