Fill-in-the-blank article about price-gouging laws

by Art Carden

[As surely as summer follows spring, natural disasters are followed by saber rattling about "price gouging," which is usually defined very lucidly and clearly as an "unconscionable" increase in the price of a necessity. These tend to follow a formula, so I thought that instead of writing a new article discussing the unintended consequences of every price-gouging law that goes into effect after a natural disaster, it would be useful to write a universal, fill-in-the-blank article discussing the economics of price-gouging laws. Whenever there is a natural disaster, you can just fill in the relevant blanks for a complete analysis of the economics of the situation.]

Fearing increases in the prices of basic items as a result of (disaster) , officials in (state or municipality) have declared a state of emergency whereby restrictions on "price gouging" are now in effect. According to (politician or law enforcement official) , the law is designed to protect innocent consumers from "unconscionable" increases in the prices of food, gasoline, ice, electric generators, and home-repair services. The unintended, unseen consequences, however, are predictable, unfortunate, and avoidable.

For more on this commentary, go to The Ludwig von Mises Institute

Labor Day and freedom

by Art Carden

A Tyson Chicken plant in Shelbyville, Tennessee has agreed to grant its workers a day off for the Muslim holiday Eid el-Fitr, replacing Labor Day at the request of the union that represents approximately 1200 plant employees, among them approximately seven hundred Somali Muslim immigrants.

Predictably, the decision has created a firestorm of controversy and attracted considerable criticism. This criticism is largely unwarranted, however. First, how firms and workers contract with one another is none of our business. Second, granting a different holiday harms no one. As I understand it, workers who wish to take time off for the Muslim holiday may do so and work on Labor Day. Those who wish to celebrate Labor Day will probably not be prevented from doing so. Finally, it isn't clear that Labor Day is worth celebrating.

For more on this commentary, go to The Ludwig von Mises Institute