06.21.2007 11:47 am
How a gouging law would hurt the economy
St. Louis Post-Dispatch
The President’s Council of Economic Advisers says that proposed price-gouging legislation would hurt both motorists and the economy. Here’s why:
âPrice gouging” legislation that effectively places controls on prices exacerbates shortages and potentially increases lines at gasoline stations.
The difficulty in defining âprice gouging” would create an unnecessary regulatory regime with potentially high litigation costs and great uncertainty for sellers, enforcement agencies, and the courts. These added costs and uncertainties would deter investment in new supply, increasing prices in the long run.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
Price contols are the main reason there were long gas lines in the 70’s. Let’s not repeat that baloney again.