I Love Price Gouging

As so often happens in the wake of a natural disaster, government officials in Texas are currently investigating claims of “price gouging,” which the office of the Attorney General reminds residents is illegal after the governor declares a disaster. This is a classic example of the ostensible contrast between greed and altruism, capitalism and charity.

Economists who favor the free market know the standard arguments for letting the price skyrocket to “clear the market” when there are supply s...