March 24, 2020 Reading Time: < 1 minute

“It’s price-gouging, but we need them,” Mr. Cuomo said.

Gov. Cuomo (NY) was referring to the much higher than pre-crisis prices he chose to pay to get an urgently needed supply of N-95 masks needed for doctors and nurses in New York, which has become Ground Zero for the coronavirus epidemic.

It looks like Gov. Cuomo (NY) must have read our article, “Anti-Gouging Laws Can Kill.”


Longer excerpt from the New York times article:

“There have been scattered signs of progress at addressing the mask shortage. At a news conference on Saturday, Gov. Andrew Cuomo of New York said the state was purchasing 2 million N-95 masks from American and foreign companies. He said the state was paying a rich price for the coveted masks: $4 apiece for products that normally go for 80 cents.

“It’s price-gouging, but we need them,” Mr. Cuomo said. “And most of these are coming from overseas.”

It is a back-handed “endorsement” of market principles from the governor of New York, but we will take it.

Sign the petition.

Raymond C. Niles

Raymond C. Niles is a Senior Fellow of the American Institute for Economic Research. He holds a PhD in Economics from George Mason University and an MBA in Finance & Economics from the Leonard N. Stern School of Business at New York University. Prior to embarking on his academic career, Niles worked for more than 15 years on Wall Street as a senior equity research analyst at Citigroup, Schroders, and Goldman Sachs, and as managing partner of a hedge fund investing in energy securities. Niles has published a book chapter and numerous articles in scholarly and popular publications.

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