Share this Story: Matthew Lau: How price gouging benefits people during disasters like Texas stormMatthew Lau: How price gouging benefits people during disasters like Texas storm The role of rising prices amidst scarcity is to ration demand of the scarce resource and encourage its supply Photo by Zach Chambers / BloombergArticle content Texas Senator Ted Cruz recently caused some outrage when, after a winter storm left millions of Texans in the cold and without power, he flew to Cancun on a family trip. Try refreshing your browser, or Matthew Lau: How price gouging benefits people during disasters like Texas storm Back to videoAdvertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content The gas price controls made sellers worse off; they received a lower price. This seems lost on, among others, Texas Representative Joaquin Castro, who lamented price gouging at supermarkets while pointing to long lines and empty shelves. Politicians, therefore, who wish to “help” by impeding markets, imposing price controls, and prosecuting price gougers, would do far less harm if they stopped trying to help.

Source: National Post February 26, 2021 07:18 UTC