The libertarian economics professor takes New Jersey Governor Chris Christie to task for going after "price gouging" in Hurricane Sandy's aftermath: "Here's a which-is-better question for you. Suppose a New Jersey motel
room rented for $125 a night prior to Hurricane Sandy's devastation.
When the hurricane hits, a husband, wife and their two youngsters might
seek the comfort of renting two adjoining rooms. However, when they
arrive at the motel, they find that rooms now rent for $250. At that
price, they might decide to make do with one room. In my book, that
would be wonderful. That decision would make a room available for
another family who had to evacuate Sandy's wrath."
He continues his commentary: "New Jersey Gov. Chris
Christie and others condemn this as price gouging, but I ask you: Which
is preferable for a family seeking shelter -- a room available at $250
or a room unavailable at the pre-hurricane price of $125? It's not the
intention of the motel owner to make a room available for another
family. He just sees an opportunity to earn more money. It was not the
intention of the family of four who made do with just one room to make a
room available for another evacuating family. They are just trying to
save money. Even though it was no one's intention to make that room
available, the room was made available as if intended. That's the
unappreciated benefit of freely fluctuating prices. They get people to
do voluntarily what's in the social interest -- conserve on goods and
services that have become scarce."
Walter E. Williams Op-Ed: Disaster Ignorance
