Story perspectives

Economic Expert: Price Controls Worsen Disaster Recovery

11/27/2025

Summary

Story summary

John Cochrane, economist, argues that price controls during natural disasters hinder supply and cause shortages.
He cites the 1906 San Francisco earthquake as an example where flexible pricing aided recovery and housing.
Cochrane says price increases may seem unfair and signal where resources are needed.
He advocates direct cash assistance to help those affected.
He argues price controls disrupt incentives and should be avoided to improve emergency responses.

1 of 1

Story summary

John Cochrane, economist, argues that price controls during natural disasters hinder supply and cause shortages.
He cites the 1906 San Francisco earthquake as an example where flexible pricing aided recovery and housing.
Cochrane says price increases may seem unfair and signal where resources are needed.
He advocates direct cash assistance to help those affected.
He argues price controls disrupt incentives and should be avoided to improve emergency responses.