Tuesday, November 15, 2005

Talk about "Price Gouging"?

Where's the outrage over this? The WSJ Online reports:
"U.S. producers can't meet American demand and some are even rationing their existing customers. But they can charge more if low-cost Mexican competitors are excluded from the market. The producer price index for cement rose 11.6% in September from the previous year, according to the Associated General Contractors, and the index for concrete products rose 10%. The contractors' group adds that shortages, duties on Mexican cement and high shipping costs 'contributed to a 14.3% increase in the price index for nonresidential
structures last quarter.' Washington politicians who purport to be worried about 'price gouging' in other industries might notice that it is really taking place in cement, thanks to official government policy."
Of course, there are SO many industries where our government (and other governments) have intruded into the market with regulations, subsidies, taxes/tariffs, etc., all with the noble intention of "making things fair" for their constituents, which end with the exact opposite effect. Can you say it with me: "The Law of Unintended Consequences"?

On the other hand, there are just as many instances where the 'constituents' are very happy with the results and are willing to "pay" for it!

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