Warren & Venezuela Pols Gouge “Gougers”?

In its “Senators From Venezuela,” WSJ argues “Warren’s draconian ‘anti-gouging’ bill would make today’s shortages look quaint” & cost consumers dearly in the months to come. Something about the history of past price control flops…

“As night follows day,” the editorial board wrote, “the economic problems caused by government are invariably followed by government solutions that would make everything worse. For a classic of the genre, consider the bill introduced by Democratic Senators to fight inflation by attacking price ‘gouging’ … [i.e.,] Massachusetts Senator Elizabeth Warren & 7 Dem Senate colleagues [plus 6 more in the House] want to punish companies that raise prices more than they like. The result would be price controls by another name and they would produce what price controls always do – supply shortages. If you like today’s baby formula mess, pass this bill.”

It's not that our companies are sweethearts or heroes for passing on their own rising costs (caused, btw, largely by govt policies) to customers. But, we are in a capitalist country after all, Liz’s & Bernie’s attempts to turn it into a socialist one notwithstanding. And, to show the cynical power play in the Warren proposal, the WSJ notes, is its setting up THEMSELVES (i.e., the bureaucracy they now influence if not control) as the deciders of who is a “GOUGER” and who would have the power to impose a 5% extra tax on the offenders’ REVENUE, not just supposedly excess profits. Talk about a kick in the pants pocket. There is an old saying: “You want the same counterproductive results, keep pushing the same counterproductive policies.”

Davd Soul