Federal equity stakes, massive public spending, and anti-price gouging laws? So much for being a capitalist…
On Monday, President Donald Trump signed an executive order to prevent price gouging and hoard supplies.
As part of the E.O., it is a crime to stockpile personal protective equipment at an industrial scale. Attorney General Bill Barr confirmed that the Justice Department will launch investigations into people who are hoarding supplies and price gouging.
The DOJ will probe individuals who are “hoarding these goods on an industrial scale for the purpose of manipulating the market.” He added that President Trump is allowed to designate certain goods as “scarce.”
The DOJ will work with Health and Human Services to enforce the executive order.
Barr had this to say to reporters during the daily coronavirus task force briefing: “If you are sitting on a warehouse with surgical masks, you will be hearing a knock on your door.”
Ugh.
Price gouging is an important social function that sends prices to manufacturers that they need to ramp up output and dedicate more resources to production. This is true for modest and extreme price gouging.
We can only wish for more price gouging to bring necessary supplies to the market at a faster rate.
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