Ron Paul says post-Sandy “price gouging” would’ve helped solve the gas shortage

(Jewel Samad/AFP)

Even as New York and New Jersey launched lawsuits against business that have participated in price gouging post-Sandy, Texas Rep. Ron Paul has penned a newsletter saying that when it comes to gas this practice would have actually solved states problems post the storm.

In the In Praise of Price Gouging newsletter, Paul argues that price gouging is normal market response of rising prices in the wake of a natural disaster.

According to Bloomberg, New Jersey government is currently suing seven stations for price gouging. Under New Jersey law, excessive price increase of 10 percent or more during a declared state of emergency is considered price gouging.

We warned merchants again and again not to violate the law by taking advantage of people following this catastrophe, said New Jersey Attorney General Jeffrey Chiesa during a press conference on Friday Nov. 9. The fact that we have these fringe businesses that think that disasters are a profit center is troubling.

New Jersey Governor Chris Christie warned against price gouging as early as Oct. 27, when he said:

During emergencies, New Jerseyans should look out for each other not seek to take advantage of each other. The State Division of Consumer Affairs will look closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties.

On Nov. 5, New York State Attorney General Eric Schneiderman announced that his office has received overwhelming number of complaints about price gouging and was launching an investigation into the matter, reportedReuters.

Our office has zero tolerance for price gouging, he said. We are actively investigating hundreds of complaints weve received from consumers of businesses preying on victims.

However, the outgoing representative from the Lone Star State, Ron Paul, believes that interfering in price gouging and regulating the prices actually hurt the residents in New Jersey and New York and caused the post-Sandy gas shortage to last longer than it otherwise would.

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Ron Paul says post-Sandy “price gouging” would’ve helped solve the gas shortage