After declaring a state of emergency in the wake of Hurricane Sandy, New Jersey Governor Chris Christie issued a forceful reminder to merchants: Price gouging during a state of emergency is illegal and will result in significant penalties.
Price gouging—raising prices during an emergency condition over their normal level—is illegal in many states. But is it unethical? Jordan Ballor addressed that question in 2005 after Hurricane Katrina:
Turns out that cronyism hits more than just your pocketbook. There’s a good chance it’s hitting your waistline too.
That’s the takeaway from this editorial by Charles Lane. You see, cheese is one of the highest fat foods we eat, and our country overproduces cheese because of government created market distortions.
From the NYTimes: “Zimbabwe’s economy is so dire that bread vanished from store shelves across the country on Wednesday after bakeries shut down, saying government price controls were requiring them to sell loaves at a loss. The price controls are supposed to shield consumers from the nation’s rampant inflation, which now averages nearly 1,600 percent annually.”
