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Wednesday, September 19, 2018

John Stossel Shows Why Milton Friedman Was Right: ‘Price Gougers’ Deserve Medals

What does the price of a good matter if you can't buy it because it's all gone?

The video above, “Price Gouging,” is one of John Stossel’s educational videos in his series “Stossel in the Classroom.” Here are some “money quotes”:

Milton Friedman: “Gougers deserve a medal.”

Gouger Entrepreneur John Shepperson: “Somebody needs to bring these products to people when there are disasters and emergencies, and this is going to be one person who is not going to be there that they took out of the equation.” Reason? John was arrested for ‘price gouging’ after traveling from Kentucky to Mississippi after Hurricane Katrina with 19 generators that he brought to the devastated area that was without power, and trying to sell those generators above his cost.

Russ Roberts: “People want to live in a world where love motivates people to help others. And love does that. But there’s not enough love to go around. Love for strangers is not going to motivate enough people to get in their trucks, load them up with generators, and take them down to people who are cold and hungry.”

Bonus Videos below: 
1st place winners of the 2018 Stossel in the Classroom “Price Gouging” Video Contest.

College Division: Erika Lewis, age 18

High School division: Annelise Kofod, Age 17

This article is reprinted with permission from the American Enterprise Institute.

  • Mark J. Perry is a scholar at the American Enterprise Institute and a professor of economics and finance at the University of Michigan’s Flint campus.