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Message
Price gouging laws predictably lead to shortages
Posted on 8/31/17 at 7:52 am
Posted on 8/31/17 at 7:52 am
Which is more compassionate: Allowing a small number of people to hoard a needed item that is purchased at a low price or allowing prices to increase due to demand so that more people can have access to that needed item?
What about the elimination of the profit motive causing people to not work to bring a needed item into an area of need?
Why don't we trust in the free market to do what it does so elegantly?
What about the elimination of the profit motive causing people to not work to bring a needed item into an area of need?
Why don't we trust in the free market to do what it does so elegantly?
This post was edited on 8/31/17 at 7:56 am
17
Posted on 8/31/17 at 7:55 am to weagle99
During times of disaster, human nature expects compassion, not a harsh reality of supply and demand.
This is why even in Texas, politicians are opposed to "price gouging" without defining what level of markup becomes obscene.
This is why even in Texas, politicians are opposed to "price gouging" without defining what level of markup becomes obscene.
Posted on 8/31/17 at 7:57 am to weagle99
This makes no sense whatsoever. Price gouging interrupts the market distribution of goods. Having water sitting on the shelf, priced higher than liquid gold, prevents distribution. Price gouging destroys the natural market.
Posted on 8/31/17 at 8:01 am to weagle99
What shortages/issues are houstonians dealing with?
Posted on 8/31/17 at 8:08 am to weagle99
quote:
Price gouging laws predictably lead to shortages
I think you mean lack of planning leads to shortages
Posted on 8/31/17 at 8:11 am to weagle99
Price gouging is opportunistic. It will come back to haunt the perps. Un-Christian. Prices should remain stable. Even squirrels anticipate shortages and act accordingly. Nobody mentions complacent merchants who fall asleep at the wheel and fail to adequately anticipate shortages and stock up.
Posted on 8/31/17 at 8:12 am to weagle99
In certain cases, sure. I would agree with you that price gouging laws have a net negative when it comes to the economy as a whole.
But in the circumstances of a natural disaster, you need them.
I can recall after Katrina some gas stations raising prices to as much as $5.00 a gallon (the average was around $1.5 at the time I think). When people are hit at their most trying time and have just lost everything, the last thing one should do is force them to pay a premium for something as essential in the aftermath of a storm as gas.
But in the circumstances of a natural disaster, you need them.
I can recall after Katrina some gas stations raising prices to as much as $5.00 a gallon (the average was around $1.5 at the time I think). When people are hit at their most trying time and have just lost everything, the last thing one should do is force them to pay a premium for something as essential in the aftermath of a storm as gas.
This post was edited on 8/31/17 at 8:13 am
Posted on 8/31/17 at 8:12 am to weagle99
quote:
Which is more compassionate: Allowing a small number of people to hoard a needed item that is purchased at a low price or allowing prices to increase due to demand so that more people can have access to that needed item?
What about the elimination of the profit motive causing people to not work to bring a needed item into an area of need?
Why don't we trust in the free market to do what it does so elegantly?
Total BS. the price gouging laws allow for price increses due to shortages or the difficulty of getting goods to an area during a disaster. They only come into play when someone is actually gouging by raising the prices by large margins. Like when gas goes from $2.25 a gallon to $20 a gallon between Friday and Monday. Yeah that's the free market at work is it?
Posted on 8/31/17 at 8:14 am to weagle99
Wouldn't limiting quantities per customer work. Like the gas stations always put in place?
Posted on 8/31/17 at 8:18 am to weagle99
Because compassion exists, and should.
And if your religion hasn't taught you that well enough, the government will.
And if your religion hasn't taught you that well enough, the government will.
Posted on 8/31/17 at 8:19 am to weagle99
quote:How many hoarders do you think there are in Houston right now? Should doctors force you to sign over the deed to your house for medical services? Should the Cajun Navy charge people they are saving? Maybe that mattress guy should make people pay for a new mattress if they want to sleep there.
Allowing a small number of people to hoard a needed item
Posted on 8/31/17 at 8:43 am to weagle99
The silver lining is that they drive IB freeman insane
Posted on 8/31/17 at 9:13 am to weagle99
Posted on 8/31/17 at 9:26 am to weagle99
All artificial, extra-market controls on prices will cause predictable shortages at times of need.
Why? If I cannot make a profit, then I won't engage in commercial activity. If I can't make a profit, I can't be charitable in time of need, either.
But, folks in favor of this nonsense just keep thinking that the world runs on unicorn milk and fairy dust.
Why? If I cannot make a profit, then I won't engage in commercial activity. If I can't make a profit, I can't be charitable in time of need, either.
But, folks in favor of this nonsense just keep thinking that the world runs on unicorn milk and fairy dust.
Posted on 8/31/17 at 9:41 am to weagle99
I would say that in addition to the price gouging laws there should be a reasonable quantity limit on what people can buy. If we are going to keep prices from being raised then we should also stop the guy from going to the gas station and buying 250 gallons of fuel at one time, or the guy going into a store and buying 60 cases of water.
Posted on 8/31/17 at 10:02 am to weagle99
1 to a customer addresses your postulated scenarios.
Posted on 8/31/17 at 10:06 am to weagle99
Correct. Price gouging laws are as silly as raising the min wage to 15 bucks
Posted on 8/31/17 at 11:15 am to weagle99
As someone who took a good bit of economics courses, I can honestly say that I'm fairly against businesses being told what they have to charge. However, human nature in me wouldn't increase prices during a shortage unless I had to (suppliers raising prices for me). Also, there is a strong economic argument against raising prices because these places will almost certainly get destroyed publicly after the storm. Insurance almost certainly covers spoilage of items and possibly loss of revenue. Not worth it to raise in my opinion.
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