This is another lesson in Economics 101. And one that the government should meddle in. I discussed this very topic last year in a video podcast. You may view it here. It’s in segment 2 which begins at about minute 19:25. Or you read my article regarding the same here.
‘Price Gouging’ In Hawaii Should Be Thanked, Not Cursed
Hawaii has taken a hit from Hurricane Lane, with an estimated 40 inches of rain and flooding in several areas. It’s an old story: Already, claims of price gouging for everything from propane to airline tickets have emerged. Should Hawaiians curse the gougers? No, they should thank them.
First off, let’s concede there are no doubt businesses that are technically breaking Hawaii’s anti-emergency gouging laws, which forbid stores from raising prices on food, water, ice, gasoline, cooking fuel, batteries and generators, chemicals or building materials during a declared disaster or emergency.