Today’s Tom Woods Letter, which all the influential people receive every weekday. Be one of them.
I live in central Florida, so it looks like I’ll get hit by Hurricane Matthew sometime tomorrow.
I’m well stocked with necessities, but should I need something in a pinch, I sure hope price gougers will be around, doing their socially and economically responsible work.
When there’s a sudden spike in demand for a good, and supply hasn’t had time to adjust, prices rise. And thank goodness.
If prices stayed the same or increased only slightly, no one would bother conserving these scarce things. Instead of a family of five huddling in one hotel room, they might splurge and get two rooms — thereby leaving one fewer room available to another desperate family during an emergency.
If the price of water stayed the same, they might consider washing their kitchen counter with it. But when the price is allowed to rise, they use the water only for its most urgent uses, thereby saving water for others who likewise have urgent uses for it — you know, like drinking.
If prices are allowed to rise, potential suppliers will come out of the woodwork, driving from all over the state and even from out of state to help people and thereby get a share of the dough. The shortage will be alleviated all the faster.
If prices aren’t allowed to rise, well, maybe a complete stranger won’t feel like driving 12 hours to help you.
In short, I need the price system far more than I need Barack Obama.
Almost no one thinks about things this way, unfortunately. They would if they’d taken my government course in high school.
Be the master of the universe after this one-semester course, which you can enjoy on the go.
Do your part to banish ignorance from the Earth:
And when I send an email asking for $10 water, get on down here.