Edward Lazear Beats Up On Anti-"Price Gouging" Legislation
Talk About Your Easy Targets
By Pejman Yousefzadeh Posted in Economy | Featured Stories — Comments (0) / Email this page » / Leave a comment »
The more people we can get to beat up on this horrifically bad idea, the better:
When it comes to gas prices, it may be hard to believe that virtually all policymakers actually share the same goal: to protect consumers and help ensure they pay an affordable price at the pump. We agree that high gas prices impose a big burden on families and businesses. We firmly oppose exploitive practices perpetrated by opportunists.
Unfortunately, "price gouging" legislation passed by the House last month and now under consideration by the Senate does not address these concerns. Instead, it would harm the economy in general and drivers in particular.
The legislation creates price controls that would exacerbate shortages and potentially produce lines at gasoline stations not seen in three decades. By disrupting market prices, price controls make lines longer during emergencies, misallocate the available supply and prevent those with the greatest need for gasoline from getting access. Gasoline trades on an international market. If U.S. gasoline prices were kept below world market levels, there would be shortages here. Consumers would be forced to line up at gas pumps, but gasoline would run out before satisfying demand, and many would be forced to do without.
Read it all. It's amazing that Congress is even wasting time with this legislation. I thought there were more important things to do than to indulge in debating--and potentially passing--a feel-good bill that is economically insane.