Higher prices make it possible for victims to get the help they need to ride out the crisis and for the devastated region to recover as quickly as possible. They do so by sending the message that critical supplies and skills are urgently needed, and by inducing consumers with less-pressing needs to voluntarily defer to those whose needs are more exigent.
Apropos Art Carden, one wonders if any store owner or entrepreneur should ever be allowed to increase prices, it’s not like they own the property they are selling…
Via Cafe Hayek.
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tim, great link!
Somebody asked me about the morality of “profiteering”. The morality of it is that the sellers have the right to charge any price they want to, and the buyers have the right to buy from whichever seller they want to, or not buy at all.
Good, successful businessmen are going to be the ones who most closely match their prices to the level of demand.
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