Those who refuse to accept the "theories" (such as the peculiar way supply of a commodity magically increases when consumer demand drives prices up) that have been proven time and time again live in a dream world.
Unfortunately, too many deniers of economic reality hold positions in the government or the media. Or churches, even--imagine that.
Their power over the mostly-uneducated population, whether by way of pronouncements, encyclicals or the brute force of the state, is, in most cases, fleeting. Exceptions exist: see Haiti, Brazil, Zimbabwe, the former Soviet Union.
If you were around in 1971, you'll recall that President Nixon had a sure-fire solution to the woes of inflation this country faced: wage and price controls. How'd that work for you? We got that idiot peanut farmer for president partly as a result of Nixon's failed policies, and he was even worse. A malaise. Red flags and green flags. 12% interest rates. Stores running out of peanut butter and toilet paper.
We can only hope those days won't be repeated in this century.
But I wouldn't put any money on it.
I agree that charging 200 bucks for a flat of water will ensure a supply of water. Most likely that same flat of water, because water is fairly simple to replace during record rainfall.
With gasoline it’s not so easy to replace.
If the price is raised to $20 a gallon what prevents the desperate from simply commandeering those pumps?
The police.
So, if the government is offended, then the police won’t help.
The power to hold life in hostage for greater pay is replaced by the power of people banding together to overcome what they see as threatening their lives.
Ultimately, gouging will lead to rebellion.