In times of pandemics or natural catastrophes, prices of commodities, such as
water, food and medicines, tend to shoot up, in response to a surge in demand
and depleting supplies. The government, in its misguided efforts to maintain
“price affordability”, imposes price controls and anti-price-gouging legislation
and bans the reselling of food and medical supplies. These interventions in the
free market are the exact opposite of what the government should do, if it
wants to ensure that enough commodities go to people who need them, that
people do not hoard all available goods on grocery shelves, and most
importantly, that suppliers have the incentive to produce more goods to meet
current and future demand at market prices.