Silencing the Messenger
24 May 2007
The Editor, Washington Post
1150 15th St., NW
Washington, DC 20071
To the Editor:
Kings of yore occasionally killed messengers bringing bad news. By voting to outlaw so-called "price gouging," the House of Representatives proves that its members are just as irrational as these ancient monarchs ("Tipping-Point Shock," May 24).
Higher prices report an underlying reality such as constrained refining capacity, rising demand, higher taxes, and more regulations. Statutes that prevent prices from rising do nothing to improve the underlying reality. Indeed, by silencing information about reality, restraints on price hikes keep consumers and producers acting in ignorance - thus making matters worse.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, Washington Post
1150 15th St., NW
Washington, DC 20071
To the Editor:
Kings of yore occasionally killed messengers bringing bad news. By voting to outlaw so-called "price gouging," the House of Representatives proves that its members are just as irrational as these ancient monarchs ("Tipping-Point Shock," May 24).
Higher prices report an underlying reality such as constrained refining capacity, rising demand, higher taxes, and more regulations. Statutes that prevent prices from rising do nothing to improve the underlying reality. Indeed, by silencing information about reality, restraints on price hikes keep consumers and producers acting in ignorance - thus making matters worse.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Sunday January 13, 2008 at 2:35pm