'Price Gouging'
S. M. Oliva at LewRockwell.com - commentary on H.R. 5253, the "Federal Energy Price Protection Act of 2006", passed last Wednesday by the U.S. House of Representatives by a vote of 389 to 34. This bill prohibits gasoline "price gouging", something that doesn't now and never did exist, allowing the Federal Trade Commission to decide what it is, and allowing state attorneys general to bring suits in federal court. Should the Senate pass this bill and Bushnev sign it into "law", the f.t.c., five lawyers, will get to decide the wholesale and retail "fair market value" of gasoline. Fortunately, it doesn't increase their budget, and the courts have been good to big business of late, so even if this abomination becomes "law", it may be prevented from doing what all externally imposed price controls always do, causing shortages. It will, however, increase the price of gasoline even more, because the suppliers will have to pay their legal costs.
I sent the following to my Congress Critter, John Sweeney, who voted for the "price gouging" bill. He also voted for the failed H.R. 5254, which would have "streamlined the permitting process to build additional refineries."
I was extremely disappointed to learn that you voted last Wednesday for H.R. 5253, the "Federal Energy Price Protection Act of 2006". Study some economics, sir. There is no such thing as "price gouging". Externally imposed price controls ALWAYS cause shortages. I'd much rather pay $6.00/gallon for gas than not be able to get it at all.
Bravo, though, on on attempting to streamline the process of building new refineries. That would allow the market to lower the price AND increase supply.