Unfair, Unconscionable, Yes Indeed

By June 24, 2008Energy

The National Association of Manufacturers sent a “key vote” letter to the House today opposing H.R. 6346, the Federal Price Gouging Protection Act. (Copy of letter here.) Excerpt:

Unfortunately, H.R. 6346 would do nothing to address our nation’s energy supply needs. Instead, it would interfere with normal market forces in addressing supply and demand imbalances and could set a dangerous precedent of the federal government artificially pricing goods. History has demonstrated that price controls and allocations simply do not work.

In fact, this bill could have unintended consequences by creating product shortages and even higher gasoline prices for U.S. companies and consumers. It could also restrict energy supplies by creating disincentives to invest in energy production and distribution.

The bill would have the government replace the market in making many costs decisions. From the text:


    (a) Unconscionable Pricing-
    • (1) IN GENERAL- It shall be unlawful for any person to sell, at wholesale or at retail in an area and during a period of an energy emergency, gasoline or any other petroleum distillate covered by a proclamation issued under paragraph (2) at a price that–
      • (A) is unconscionably excessive; and
      • (B) indicates the seller is taking unfair advantage of the circumstances related to an energy emergency to increase prices unreasonably.

The NAM uses its key votes to determine a legislator’s record on manufacturing issues at the end of a congressional session.

Join the discussion One Comment

Leave a Reply