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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 8:00 am to TBoy
Actually, it makes a lot of sense. If there is a finite amount of resources, those who need it most will pay the price to get it. Those who don't need it, won't pay for it.
Posted on 8/31/17 at 8:01 am to weagle99
What shortages/issues are houstonians dealing with?
Posted on 8/31/17 at 8:04 am to TBoy
quote:
Price gouging interrupts the market distribution of goods. Having water sitting on the shelf, priced higher than liquid gold, prevents distribution.
Because we all know that distributors and retailers would price things so high that no one will buy them...
That's surely in their best interest
This post was edited on 8/31/17 at 8:04 am
Posted on 8/31/17 at 8:05 am to cwill
Gas
Posted on 8/31/17 at 8:06 am to TBoy
quote:
Having water sitting on the shelf, priced higher than liquid gold, prevents distribution.
No, it prevents one customer from hoarding it all for himself. He won't/can't pay sky high prices, so he'll be compelled to buy only what he truly needs leaving water for the next customer, and the next.
This post was edited on 8/31/17 at 8:09 am
Posted on 8/31/17 at 8:08 am to DeafJam73
What about those who need it but can't afford it?
This post was edited on 8/31/17 at 8:09 am
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 8:10 am to The_Duke
quote:
What about those who need it but can't afford it?
What about those who can afford it, but can't find it?
At best, you're talking about a "six one way, half dozen the other" type of situation.
Posted on 8/31/17 at 8:11 am to Wtodd
quote:
think you mean lack of planning leads to shortages
I think you mean lack of central planning you communist.
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 8:11 am to TBoy
quote:
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.
Gouging sucks but I definitely understand the arguments for not intervening too much. Because people will hoard rather than just taking what they can get by with.
Posted on 8/31/17 at 8:11 am to Stingray
quote:
I think you mean lack of central planning you communist.
No dipshit....lack of planning on people's part
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 8:12 am to weagle99
quote:
Gas
Because refineries and distribution have been interrupted not because of pricing. And I think most of the stories are overblown. I live in the loop in Houston and as far as goods and services go it's just about back to normal. Nobody is crying for higher prices as they lay starving in a Kroger parking lot.
Posted on 8/31/17 at 8:13 am to The_Duke
quote:
What about those who need it but can't afford it?
These guy's idea of the free market often leaves out Humanity. They all want a corporate overlord and are willing to pay for 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?
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