Government officials waste no time threatening to crack down on “price gouging” during catastrophic events. Because they care. But of course they don’t. If they did, they’d let the market take care of pricing. Instead, they’ll deny storm victims the necessities they need to get through the disaster.

Vice President Kamala Harris has warned merchants and entrepreneurs that Big Brother Columbia is “monitoring” stricken areas “for allegations of fraud and price gouging and will hold those taking advantage of the situation accountable.” Federal Trade Commission Chair Lina M. Khan says “no American should have to worry about paying grossly inflated prices when fleeing a hurricane,” and promises that “in partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being ripped off by bad actors exploiting a crisis.”

Their rhetoric is meant to reassure. They are proud of themselves. And quite willing to claim scalps, even if means victims are unable to obtain the goods they desperately need. We refer again to the story of John Shepperson, which we have covered before:

In 2005, Shepperson, bought 19 generators at $500 each, loaded them on a rental truck, took time off from work, and drove 600 miles from his home in Kentucky to Mississippi, where the victims of Hurricane Katrina were in urgent need of electricity. According to economist Mark J. Perry, ‘John offered to sell his generators at twice the price he paid, to help cover his costs and make a profit.’ But rather than allow Shepperson to provide an in-demand product to willing buyers, the government arrested him. Shepperson was held for four days.

Meanwhile, the generators were seized by the government, says Perry, and ‘never made it to consumers with urgent needs who desperately wanted to buy them.’

This was an unconscionable act by officials. They’d rather enforce their counterproductive laws than to allow the unfettered commerce that benefits all the involved parties.

Yes, it might seem on the surface that jacking up prices during an emergency is unethical. Yet it can be the best way to deal with a crisis. High prices not only discourage hoarders, they also send suppliers an important signal: They need to rush more goods into production and increase their shipments into the disaster zone. It’s basic economics. Buyers might grumble about the costs, but at least they can get what they need.

To further emphasize our point, we conclude with a few more truisms that should demystify the misunderstandings in regard to “price gouging”:

• “Anti-price gouging laws are really ‘pro-shortage’ laws.” — Perry
• “‘Price gougers’ are often providing a life-line of critical supplies that nobody else is providing, and that life-line could actually be saving lives.” — Perry
• “High prices are an essential way to ensure that resources get where they are desperately needed. Imposing artificially low prices creates shortages of vital supplies and makes it harder for people to recover from disasters.” — Don Boudreaux
• “Pursuing profit is simply the best mechanism for bringing people supplies we need. Without rising prices indicating which materials are most sought-after, suppliers don’t know whether to rush in food, or bandages, or chainsaws.” — John Stossel
• The “assessment of a proposed national price gouging law concluded a national law would have increased total economic losses during Hurricanes Katrina and Rita by nearly $2 billion, mostly from interference with incentives to bring goods and services to areas where they are most needed.” — Michael Giberson
• “When either supply or demand changes, prices change. When the law prevents this … that reduces the flow of resources to where they would be most in demand.” — Thomas Sowell

— Written by the I&I Editorial Board