Horwitz opposes laws banning price gouging for three main reasons. First, Horwitz believes that anti-price gouging laws cause shortages in these industries. That is, these shortages are not caused by the disaster itself, but by the fact that prices cannot fluctuate, confusing the correlation between supply and demand. Another reason Horwitz opposes laws against price gouging is that price gouging causes those in the affected area to prioritize their own needs. Due to the increase in prices these people will avoid paying for items they do not consider necessary. Finally, Horwitz argues that the natural increase in prices after a disaster incentivizes manufacturers to supply needed items to the affected area. Therefore, by banning price gouging, we are only making it more difficult for those in the affected areas to purchase the goods they need. Horwitz's argument is that laws prohibiting price gouging are intended to make goods more available to those who need them, (Premise 1) price gouging actually helps those in affected areas receive the goods they need, (Premise 2), so we should not prohibit price gouging. (Conclusion) Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay While compelling, there are some problems with this topic. The main problem I find with this argument is found in Premise 2. I believe Horwitz's argument is based on the idea that those in the affected areas have the means to purchase these goods at a premium, but simply find it inconvenient do it LIKE THIS. Horwitz appears to ignore the fact that many of these people have just lost most of their property in a devastating storm. Therefore, rising prices not only pushes up market prices but prevents individuals from purchasing basic necessities. Horwitz's argument is convincing in the case that those in the affected area are somehow able to pay the price increase due to the price reduction. However, in the case of Hurricane Sandy and similar disasters, it is clear that these people would not be able to pay for these goods, even if they wanted to..
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