June 28, 2007
Too high? Too low? Just Right? None of the above?

Mark Perry, whose Carpe Diem blog is really excellent, comments on the poor dumb schmuck in Wisconsin who was told to increase prices at his gas station.

Raj filed a lawsuit Tuesday seeking to overturn a 1930s state law requiring retailers to mark up the price of gas. "I should be allowed to give whatever discounts I want to give to the people in order to run my business," Bhandari said, and his lawyer added, "Entrepreneurs and consumers - not state bureaucrats - are in the best position to decide the price of gas."

Yeah, and here I thought politicians and bureaucrats were worried about gas prices being too high, not too low! After all, the House just voted 282-141 to pass the Federal Price Gouging Prevention Act to protect consumers against gas prices that are TOO HIGH!

Reminds me of these immortal lines from the classic "The Incredible Bread Machine",

You're gouging on your prices if You charge more than the rest. But it's unfair competition if You think you can charge less! "A second point that we would make To help avoid confusion... Don't try to charge the same amount, That would be Collusion!
Posted by Robert Lawson at 10:51 AM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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