cross-posted from: https://jorts.horse/users/fathermcgruder/statuses/113008342518705813
Instead of price controls to prevent gouging, why doesn’t the government build up reserves and stockpiles?
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I still don’t understand. Why wouldn’t retailers buy from government stockpiles when their regular suppliers are short? The idea is to make up for the shortage so there’s no basis for gouging.
Gouging is thus called because it’s inherently gratuitous, and not truly due to market conditions.
How does gouging work when there’s no shortage of a given product?