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ACCF: Price-gouging legislation could be costly

06/18/2007
Legislation calling for price controls on gasoline could have counterproductive and costly consequences if passed by US Congress, a spokeswoman for the American Council for Capital Formation told reporters in Houston June 13.“If price controls like current legislative proposals had been in effect in 2005 during Hurricanes Katrina and Rita, losses to households and business would have totaled $1.9 billion,” said Margo Thorning, ACCF senior vice-president and chief economist.Thorning cited the results of an ACCF-commissioned study entitled “Potential Effects of Proposed Price-gouging Legislation on the Cost and Severity of Supply Interruptions.” Consultant CRA Intern...
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