Bringing back memories of 1970s wage and price controls, in the U.S. and beyond, people are contemplating price caps to control inflation.
First there was the Great Necco Wafer Panic of 2018 and now we have a Valentine’s Day candy shortage of the conversation hearts that are a national favorite.
Called “price gouging” by many of us, an increase in prices as a hurricane approaches could be a productive incentive for supply and demand.
When cities like San Francisco pass rent control legislation to create affordable housing, they could wind up with unintended consequences.
Accused of price gouging after Harvey hit Texas, the businesses that raised prices might actually have been helping people.
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.
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 America (below), Venezuela has the…