Thomas Sowell makes the case for price gouging in Florida. Of course, anyone who understands the laws of supply and demand know that there is no such thing as price gouging. In a sort of grand irony, government price controls such as those in Florida, actually do more harm than good. Mr. Sowell explains:

Those who are long on indignation and short on economics may say that these hotels were now "charging all that the traffic will bear." But they were probably charging all that the traffic would bear when such hotels were charging $40 a night.

The real question is: Why will the traffic bear more now? Obviously because supply and demand have both changed. Since both homes and hotels have been damaged or destroyed by the hurricanes, there are now more people seeking more rooms from fewer hotels.

What if prices were frozen where they were before all this happened?

Those who got to the hotel first would fill up the rooms and those who got there later would be out of luck -- and perhaps out of doors or out of the community. At higher prices, a family that might have rented one room for the parents and another for the children will now double up in just one room because of the "exorbitant" prices. That leaves another room for someone else.

Someone whose home was damaged, but not destroyed, may decide to stay home and make do in less than ideal conditions, rather than pay the higher prices at the local hotel. That too will leave another room for someone whose home was damaged worse or destroyed.

Profit taking during times of crisis is not immoral. Why should truck drivers drive all night to bring in shipments of much needed supplies if they aren't allowed to profit from it? Simply put, allowing people to take a profit ensures that suppliers will rise to meet the demand of those who need it most.