Carolina Journal Radio

Price-gouging laws create unintended harm for consumers

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From Carolina Journal Radio Program No. 802: The arrival of Hurricane Florence prompted N.C. officials to trigger the state’s price-gouging law. It allows people to complain to government when they believe vendors are charging prices that are too high. Roy Cordato, John Locke Foundation senior economist, says the law creates serious negative unintended consequences. Among them: empty store shelves and dried-up gas pumps. Cordato explains why higher prices make sense during an emergency.