Emergencies Bill: Rivers to Run Uphill

As reported in the Toronto Star:

People and corporations who engage in price gouging or prohibited travel during public emergencies could receive jail sentences and fines of up to $10 million under proposed legislation introduced today.

In other news, the government will introduce legislation to revoke the law of gravity and to ensure that every lottery ticket will win the grand prize. This indicates just how little economic training politicians have: the price of a good isn't set by someone being greedy and trying to "gouge". It's set by the laws of supply and demand: in a scarcity situation, a good will command a higher price than in a surplus situation. No amount of legislation will change that fact. What the legislation can do, however, is to ensure that scarcity will continue for longer than otherwise, by removing the price signals which indicate to sellers that a higher demand exists.

Emergency orders could also prohibit travel, require evacuation of certain areas, establish emergency shelters and hospitals, and close businesses, schools, hospitals or other institutions.

Those orders could also regulate the use and distribution of goods, services or resources, such as water and electricity, fix prices and prevent gouging.

A company that ignores an order could face a fine of up to $10 million.

A corporate director could face a fine of up to $500,000 and up to a year in jail, while an individual could face a fine of up to $100,000 or up to a year in jail.

This will do nothing to alleviate shortages after future crises, but it will do a lot to exacerbate the longer-term problem of shortages of essential goods and materials. It's a control-freak's wet dream come true.

David Friedman put it best:

In the ideal socialist state power will not attract power freaks. People who make decisions will show no slightest bias towards their own interests. There will be no way for a clever man to bend the institutions to serve his own ends. And the rivers will run uphill.

Update: Jon thinks I'm being an optimist.