Called “price gouging” by many of us, an increase in prices as a hurricane approaches could be a productive incentive for supply and demand.…
Does Rent Control Really Control Rent?
When cities like San Francisco pass rent control legislation to create affordable housing, they could wind up with unintended consequences.…
The Upside of Texas Price Gouging
Accused of price gouging after Harvey hit Texas, the businesses that raised prices might actually have been helping people.…
How Venezuela’s Price Ceilings Are Moving
While Venezuela’s price ceilings created life threatening shortages and distorted incentives, lifting them will temporarily result in more distress.…
The Upside of Price Gouging
During the Hurricane Katrina clean-up, a man from Kentucky loaded 19 generators onto his rented U-Haul. Driving 600 miles to an area of Mississippi with no power, he tried to sell them. His price was …
The Strange World of Venezuelan Hyperinflation
Because of hyperinflation, Venezuela needs billions of bank notes so that businesses and consumers can pay the insane prices that rise daily.…
Venezuela's Biggest Economic Problem
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.…
Venezuela Has Cheap Gas But No Cars
At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. The dark purple country at the northern tip of South Ame…
Subsidies: Fueling Egyptian Turmoil
The time is 8 am. During March 2012, 200 people at a depot just west of Cairo are waiting for a truck delivery of butane cylinders. One gentleman yells, “Please, I’ve been waiting for 10 d…
Price Ceilings: Venezuelan Toilet Paper Shortages
One shopper had to search for toilet paper in 6 stores. Another arrived in a supermarket just after a delivery but was limited to a 4-roll maximum. Attempting to deal with its toilet paper shortage, t…