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"Price Gouging" during a disaster: Good or Bad
Posted on 9/1/17 at 5:39 pm
Posted on 9/1/17 at 5:39 pm
Adam Carolla had a guy on with a PhD in Economics that held from a Freakonomics type angle that price gouging during a disaster for most things was actually beneficial to the situation at large.
His main point was that price gouging actually helps as it dictates less immediate consumption/hoarding of scarcities and spreads them out more than they would have been distributed otherwise.
A good example is gasoline. If gas is held at the price pre-disaster, everyone fills their tank heading headed out of town and less people end up getting access to gas. If gas is $8/gal, people will self-ration by only buying the gas needed to reach their intended destination and therefore more people will have access to gas.
Thought maybe the OT could have an interesting discussion about this.
His main point was that price gouging actually helps as it dictates less immediate consumption/hoarding of scarcities and spreads them out more than they would have been distributed otherwise.
A good example is gasoline. If gas is held at the price pre-disaster, everyone fills their tank heading headed out of town and less people end up getting access to gas. If gas is $8/gal, people will self-ration by only buying the gas needed to reach their intended destination and therefore more people will have access to gas.
Thought maybe the OT could have an interesting discussion about this.
This post was edited on 9/1/17 at 5:43 pm
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Posted on 9/1/17 at 5:40 pm to Scoop
quote:
Thought maybe the OT could have an interesting discussion about this.
i get gas from budweiser. usually have to take pepto or gasx
eta: phDEEEZZZ NUTZ
This post was edited on 9/1/17 at 5:41 pm
Posted on 9/1/17 at 5:41 pm to Scoop
:dabigfella:
Posted on 9/1/17 at 5:41 pm to Scoop
Catch 22. The product only goes to those that need it, but those that need it have to pay 4 times the price to get it
The assholes that hoard end up not spending money and aren't punished.
Edit: I'm for it though. Rather have the product available at 4 times the price than be out.
The assholes that hoard end up not spending money and aren't punished.
Edit: I'm for it though. Rather have the product available at 4 times the price than be out.
This post was edited on 9/1/17 at 5:43 pm
Posted on 9/1/17 at 5:44 pm to Scoop
Any economics person will tell you it's good. Any politician will tell you it's bad
Posted on 9/1/17 at 5:44 pm to Scoop
Or just set limits on amounts purchased so everybody can get something, instead of exploiting people when they are the most vulnerable 
Posted on 9/1/17 at 5:45 pm to TH03
It's an interesting concept.
It doesn't apply to everything and everyone, but gouging does interject more wide spread access to scarcities in a disaster situation as it steers people to get only what they need rather than everything they can get.
It doesn't apply to everything and everyone, but gouging does interject more wide spread access to scarcities in a disaster situation as it steers people to get only what they need rather than everything they can get.
Posted on 9/1/17 at 5:48 pm to TheArrogantCorndog
quote:
Or just set limits on amounts purchased so everybody can get something, instead of exploiting people when they are the most vulnerable
The logistics of that are insurmountable.
The market can handle it more effectively.
Posted on 9/1/17 at 5:48 pm to Scoop
You'd definitely want the resources available and if raising the prices allows for that to happen, I'm all for it. That positive outweighs the negative of the price.
Posted on 9/1/17 at 5:48 pm to Scoop
there is no gas in my entire zip code. heard some woman today talking about how her husband had to wait so long for gas for the mower/diesel for their tractor.
Posted on 9/1/17 at 5:48 pm to Winston Cup
Where are you
Posted on 9/1/17 at 5:50 pm to Scoop
Not always good, not always bad.
Boortz had a good example on his show way back in the day of why it can be good using hotels. If the rooms are more expensive, then people will use fewer of them and there will be more available for those who need them. If the rooms remain relatively inexpensive, then mom and dad are gonna get them a room to frick in, one for grandma, and one for the kids nobody wants to deal with.
Boortz had a good example on his show way back in the day of why it can be good using hotels. If the rooms are more expensive, then people will use fewer of them and there will be more available for those who need them. If the rooms remain relatively inexpensive, then mom and dad are gonna get them a room to frick in, one for grandma, and one for the kids nobody wants to deal with.
Posted on 9/1/17 at 5:53 pm to Scoop
quote:
The logistics of that are insurmountable.
Not necessarily... allow stores to set their own quotas (based on supply) at standard pricing, so some a-hole doesn't come in and buy all the stock and flip it next door for 10x the price... and it also allows more people equal access to goods during a crisis
Posted on 9/1/17 at 5:53 pm to Scoop
Heres my take. I think its a bad idea for two reasons:
1)It will destroy your customer base like Katrina crushed Kathleen Blanco. People dont forget which stores raped their customers in the time of greatest need.
2)If you jack up necessities like food and water to people who are thirsting or trying to feed their family, and they dont have the money to pay your crazy prices, you're much more likely to get looted or just flat out robbed. Theyd rather face a jury than a hungry family.
1)It will destroy your customer base like Katrina crushed Kathleen Blanco. People dont forget which stores raped their customers in the time of greatest need.
2)If you jack up necessities like food and water to people who are thirsting or trying to feed their family, and they dont have the money to pay your crazy prices, you're much more likely to get looted or just flat out robbed. Theyd rather face a jury than a hungry family.
Posted on 9/1/17 at 5:54 pm to Scoop
I think you're shite for brains not buying what you need in a timely and advanced manner.
Posted on 9/1/17 at 5:54 pm to RogerTheShrubber
quote:This.
Any economics person will tell you it's good. Any politician will tell you it's bad
Price controls, the supposed "moral action", results in supply shortages.
This isn't something that hasn't happened before.
Posted on 9/1/17 at 5:55 pm to Scoop
I prefer not to make it any harder than it already is for my brother, neighbor or friend. I'd be the type that would lose money in a situation like this but that's the way I roll.
You're not going to get rich by gouging people and you're not going to end up in the poor house by helping people either.
You're not going to get rich by gouging people and you're not going to end up in the poor house by helping people either.
Posted on 9/1/17 at 5:56 pm to NYNolaguy1
The discussion isn't whether gouging is moral or ethical. It's more about thinking outside the box as to whether it leads to a wider distribution of scarcities.
Posted on 9/1/17 at 5:58 pm to Homesick Tiger
Again, you are missing the point.
Does gouging indirectly help more people than it hurts?
Does gouging indirectly help more people than it hurts?
Posted on 9/1/17 at 6:03 pm to Scoop
quote:
Does gouging indirectly help more people than it hurts?
Let's use your neighborhood as a scientific experiment and you report back.
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