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Friday, May 25, 2007

Congress Misses the Mark On “Price Gouging Legislation

Tom Dennis of the Grand Forks Herald has a great column up covering the recent action by the United States Congress to outlaw “price gouging” on gasoline sales.

When experts appear before Congress, they usually measure their words. Not Paul Sankey. Last week, the lead oil analyst and managing director at Deutsche Bank spoke on gas prices to the Senate Committee on Energy and Natural Resources, and he began his testimony this way:

“Gouging is an idiotic explanation. Anybody who blames record high U.S. gasoline prices on ‘gouging’ at the pump simply reveals their total ignorance of global oil supply and demand fundamentals.”

But he must have testified before the wrong branch of Congress, because the House voted Thursday to outlaw gasoline price gouging.

What a useless gesture, a sound-and-fury piece of lawmaking that signifies nothing.

You can tell the House wasn’t serious just from the law’s language. The bill makes it illegal during an energy emergency to sell gasoline at a price that is “unconscionably excessive,” and that suggests the seller is trying “to increase prices unreasonably.”

Unconscionably? Unreasonably? Laws swing on the hinges of such words, and the great door of this law is held to its hinges by only a few loops of string. How is a court supposed to fairly assess such subjective terms?

Yep, Tom hit the nail on the head.  Read the entire column, it’s well worth the time.

Comments

If there’s any gouging going on, it’s being perpetrated by government bureaucrats with their confiscatory tax rates.

Kevin on May 25, 2007 at 09:31 am
Avatar for John M.

I drive a Prius and my 401K is filthy with oil stocks.  I say gouge away, baby~

John M. on May 25, 2007 at 09:42 am

Neal Boortz had a great take on “price gouging” as well, arguing that it’s actually a good thing.  If something becomes more expensive--especially something of limited supply, like gas, emergency supplies, hotel rooms, etc.--people are likely to buy less of it, which leaves more for the people who come after them.


"No Sane man will dance.”—Cicero

Daniel on May 25, 2007 at 02:23 pm

If something becomes more expensive--especially something of limited supply, like gas, emergency supplies, hotel rooms, etc.--people are likely to buy less of it, which leaves more for the people who come after them.

Also, if something becomes more expensive, there is added incentive for entrepreneurs to go out of their way to provide more of these goods and services.


A troll is someone who only wants to stir up trouble, not have an honest debate.  Some signs that a poster is a troll:
* Dodges questions from other posters * Refuses to give sources
* When one of its arguments is shown to be false, either ignores the proof or moves the goalposts.  Heh. (From the LGF faq)

Proof on May 25, 2007 at 02:43 pm

Well the solution to high gas prices should be high gas prices.  The higher profits will call for more businesses to produce more supply.

The higher supply would reduce prices until there was something like a balance between the producers and the consumers.

At least that’s the way it’s supposed to work.

The problem is that the government isn’t allowing producers to produce more in this country.  Much of the rest of the world’s supply is tied up by governments not the oil companies.

Get government out of the way and let the market figure this thing out.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on May 25, 2007 at 03:16 pm

TW: But lefties have to blame the “big oil companies”; they never blame greedy govt.


If you don’t know by now, don’t mess with it.

robert108 on May 25, 2007 at 03:23 pm

Robert, did Captain Obvious pay you a visit today?  smile


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on May 25, 2007 at 03:33 pm

TW: Yes, and every day some leftie posts a comment on this blog.


If you don’t know by now, don’t mess with it.

robert108 on May 25, 2007 at 03:44 pm

Really?


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on May 25, 2007 at 03:47 pm
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