It seems the mainstream media needs a little lesson in Economics 101:

Hurricane Isabel roared onto eastern North Carolina shores in mid-day, September 18, 2003, continuing on into Virginia and north from there. While Isabel was no Hurricane Hugo, the monster storm that demolished Charleston, S.C. back in 1989, it washed up the usual economic fallacies.

Among them is the idea that all prices should be the same after as before the storm. Thus were potential gougers given stern warnings long before the hurricane hit. It is apparently very difficult for people to understand how prices assist in rationing in light of changes in supply, which is why price flexibility is never more needed than in a natural disaster.

But let’s leave that one aside and focus on the biggest fallacy of all: the idea that destruction of all sorts is actually a wonderful thing. To listen to mainstream economists, including Wall Street analysts, what destruction Isabel wrought is really a bonanza for the economy.

Here is some recommended reading:

• 1. Economics in One Lesson – Henry Hazlitt
• 2. Fair Play: What Your Child Can Teach You About Economics, Values, and the Meaning of Life – Stephen E. Landsburg
• 3. Armchair Economist: Economics And Everyday Experience – Stephen E. Landsburg
• 4. Hidden Order : The Economics of Everyday Life – David D. Friedman
• 5. The Machinery of Freedom: A Guide to Radical Capitalism – David D. Friedman
• 6. Free to Choose: A Personal Statement – Milton & Rose Friedman

And who said Economics couldn’t be fun?

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