Snake oil salesmen
David McNew/Getty Images It’s the beginning of the so-called summer driving season in the United States, which means gasoline prices are going up. And that means it’s time for U.S. politicians to pander to popular ignorance about energy prices. Last week, the U.S. House of Representatives passed the “Federal Price Gouging Protection Act,” a bill ...
David McNew/Getty Images
It’s the beginning of the so-called summer driving season in the United States, which means gasoline prices are going up. And that means it’s time for U.S. politicians to pander to popular ignorance about energy prices. Last week, the U.S. House of Representatives passed the “Federal Price Gouging Protection Act,” a bill that would make it illegal for gas companies to charge “unconscionably excessive” prices at the pump. A similar effort is underway in the Senate.
“Price gouging” is not a legal term in the United States, and the bill does not change this fact. What’s an “unconscionably excessive” price? Presumably, as with pornography, the courts will be able to identify this phantom menace when they see it. Maybe they’ll have better luck than the Federal Trade Commission. After Hurricane Katrina, the FTC investigated (pdf) allegations of price gouging and found none, concluding:
Based on well-established economic principles, the price increases were roughly in line with increases predicted by the standard supply and demand paradigm of a competitive market.
But the most idiotic part of the bill is that the same groups pushing for action on “price gouging” also rightly believe that the United States needs to reduce its demand for oil on national security and environmental grounds. Yet as Robert Samuelson points out in a spot-on column in today’s Washington Post, only the pain of high gasoline prices will actually move significant numbers of Americans out of those Hummers and into Priuses and plug-in hybrids. The politicians surely know this, but knowing better has hardly stopped opportunistic lawmakers before. Why start now?
More from Foreign Policy


Russians Are Unraveling Before Our Eyes
A wave of fresh humiliations has the Kremlin struggling to control the narrative.


A BRICS Currency Could Shake the Dollar’s Dominance
De-dollarization’s moment might finally be here.


Is Netflix’s ‘The Diplomat’ Factual or Farcical?
A former U.S. ambassador, an Iran expert, a Libya expert, and a former U.K. Conservative Party advisor weigh in.


The Battle for Eurasia
China, Russia, and their autocratic friends are leading another epic clash over the world’s largest landmass.