TOTM
New York’s Failed Economic Case for Price-Gouging Enforcement
Truth on the Market
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Amajor winter storm across northern New York State in January 1998 snapped power lines and left thousands without electricity, as temperatures plunged. In the small town of Chazy, just south of the Canadian border, a local hardware store stepped up. Chazy Hardware had just one generator on hand, but it managed to locate 54 more on a Saturday in Burlington, Vermont. The following morning, a driver and truck made the icy hours-long round trip to bring them back. Forty of the generators were sold on Saturday, and most of the rest sold Sunday afternoon.
And then the State of New York fined Chazy Hardware for price gouging.