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.
While Venezuela’s price ceilings created life threatening shortages and distorted incentives, lifting them will temporarily result in more distress.
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 double what he had paid. A good idea?…
Because of hyperinflation, Venezuela needs billions of bank notes so that businesses and consumers can pay the insane prices that rise daily.
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…
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 days to get my cylinder–who can…