Price Controls Create Man-Made Disasters

In the wake of the recent flooding in Iowa, the state’s attorney general has announced that Iowa’s rules against price gouging are now in effect. These rules prohibit businesses from “substantially raising the prices for needed goods or services without justification” in the wake of a natural disaster. Enforcing these restrictions will have predictable effects: shortages of needed supplies, long lines, delayed repairs, and, perhaps, increased incivility. Like other forms of price control, price-gouging statutes will hurt precisely the people they are intended to help. FULL ARTICLE