Economic Ignorance Further Hampers Hurricane Sandy Victims

The miles-long lines at beleaguered service stations in the aftermath of Sandy is a testament to an elementary economic reality; sharply higher prices are mandatory in a disaster. During such a radical supply/demand altering event, sharply higher prices must prevail in order for more consumers to receive the desperately-needed commodity. And the economic ignorance of politicians who vow mass prosecutions for price gouging -- as popular as it may be with the media and the affected masses -- only serves to thwart the survival and recovery efforts of the victims. Nobody likes paying higher prices. In fact, when one has received a major blow to their lives, higher prices easily appear to be criminal. Understandable as it is, this is an emotional rather than a rational reaction to an economic law that is attempting to best serve the dire interests of as many people as possible. The basic tenet of economic principle -- price relation to supply vs. demand -- is to accomplish one fundamental...(Read Full Post)