2min chapter

Rationally Speaking Podcast cover image

"Price gouging" in emergencies

Rationally Speaking Podcast

CHAPTER

Do Poor People Fail Better Under Price Controls?

i don't know what your intuitions are about that, or even better, if there's any research on whether, in an emergency, poor people specifically tend to fair better under price controls versus the freemarket. So let me give some some arguments. The standard economics argument is a rather than having price controls, a that poor people can't buy some essential goods, better to give them cash. Another one is, instead of price controls, because price controls, more also help the rich, not just the poor. Instead of giving doing price controls, give vouchers, which is what we do with food stamps. We say, poor people need to buy food. It's very important.

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