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Started By
Message
re: Price gouging in a temporary supply crunch like the Colonial situation should be allowed
Posted on 5/13/21 at 1:04 pm to RobbBobb
Posted on 5/13/21 at 1:04 pm to RobbBobb
quote:No, because nearly every day care will still charge you for not bringing your kid in that particular day...that's the standard for most day cares, whether it be KinderCare or Debbie down the street
Because their minimum wage employees are going to be able to get to work on $10 a gallon gas, amirite?
1
Posted on 5/13/21 at 1:14 pm to Ross
quote:This can be true. It can also be true that shortages arise when supply is fundamentally unable to meet demand.
Price controls lead to shortages
This is what happened in gas markets during the Texas winter storm. It didn’t matter that unregulated markets allowed the price of gas to rise by 10000% in a day; there simply was not enough production to meet the demand, and no degree of price increase was going to change that.
In such extreme cases, in makes sense to put an upper limit on the allowable price increase of the good.
We aren’t close to that limit with this pipeline issue IMO, but we also need to admit that free markets can’t fix every problem. If both supply and demand reach asymptotic limits before they intersect one another, relying on the price mechanism to bring the market into balance is a foolhardy.
Posted on 5/13/21 at 1:17 pm to Yak
quote:
No, because nearly every day care will still charge you for not bringing your kid in that particular day.
So people still paid for day care when they were closed for the panademic? I dont believe you. Because we didnt have to pay
Day cares are required by law to maintain a student teacher ratio. If employees arent there, they are forced to close (see pandemic). A gas shortage is no different in terms of a declared emergency, than a pandemic
Posted on 5/13/21 at 1:30 pm to slackster
quote:
. I’d rather pay $4/gallon and/or only get 8 gallons at a time than get nothing at all.
Sure because you can afford $4/gallon gas. A lot of people cannot. Perhaps there should be gas station that offer it for $4 a gallon and if you make over $75k a year you can only go to that station. That’s basically what they did with stimulus.
Posted on 5/13/21 at 1:30 pm to RobbBobb
Keep in mind you are still arguing about price controls over 1 single mom versus the entire rest of the population 
Posted on 5/13/21 at 1:34 pm to RobbBobb
quote:
lulz, You just skipped right over the words 'seldom used'.
You weren’t smart enough to understand my post. Tough scene.
Posted on 5/13/21 at 1:37 pm to Ross
quote:
buddy those rising prices prevent shortages
Then explain the current lumber prices
The cutters are getting paid the same
The haulers are being paid the same
Southern states are eliminating pandemic orders
Yet the logs are just piling up at the mills
So there IS NO EXPLANABLE SHORTAGE
Yet the prices are sky high, because the mills refuse to operate
Most of these mills are Canadian owned
Canada is pissed at Trump for the tariffs
So they created a fake shortage. Created to jack up prices, not to control supply and demand
quote:
In the US South, another area abundant with timber, the problem is sort of the opposite. “They have a glut of timber,” Jalbert said. Until the region has enough sawmill capacity to turn that timber into lumber, however, production will remain slower than it could be.
Posted on 5/13/21 at 1:39 pm to RobbBobb
quote:You didn't say that. You said it would be far, far better than to simply sit at home and not pay daycare because you couldn't afford gas. That's a huge difference.
So people still paid for day care when they were closed for the panademic?
If the actual DAYCARE closed down, then yes, you don't have to pay them. However, if you don't bring your kid to daycare for whatever reason, they will still charge you. You sign a contract saying exactly that, otherwise they would not be able to:
quote:
Day cares are required by law to maintain a student teacher ratio.
YOU sign the contract and follow their rules...it doesn't work the other way around.
This post was edited on 5/13/21 at 1:40 pm
Posted on 5/13/21 at 1:45 pm to RobbBobb
quote:
This made sense to you?
A single mother with 3 kids, buys gas at $2.55 to go to work everyday. Without warning a pipeline goes down. Immediately every station in town goes to $10 to curb hoarding.
Guess what? The most desperate among us cant shell out $10 for gas, while she waits for the pipeline to come back on line. Her kids dont eat very well, if she does that
So the gas station runs out of gas and the store owner cant feed his kids that week?
Every regulation hurts someone. Why should a business with rent/labor/utilities be told to lose money because the government wills it?
Posted on 5/13/21 at 2:34 pm to LSUFanHouston
quote:
I think in situations like this, temporary purchasing restrictions are the answer.
if you could enforce it
I don’t think you ever could hope to do that. Hoarders find ways to hoard.
Posted on 5/13/21 at 3:13 pm to Ross
quote:
They tried that with toilet paper. People just went back into the store after checking out and bought more.
In the 70s most stations would limit you to 10 gallons. Lines were common so nobody would get back into a line that was hours long. Also, many stations would limit the hours per day they would sell gas and then just close.
Posted on 5/13/21 at 3:24 pm to slackster
There's no such thing as price gouging (unless it's gov't sanctioned ala drug company overcharging b/c it holds the only patent granted by FDA).
Price controls are the always the worst solution. The gov't should be advertising where people can get gas.
Price controls are the always the worst solution. The gov't should be advertising where people can get gas.
Posted on 5/13/21 at 3:51 pm to Chucktown_Badger
quote:
What can the feds do if some gas station wants to charge $20 a gallon?
They report them to the state agencies.
Posted on 5/13/21 at 3:52 pm to slackster
Anti-gouging laws are not only economically incorrect, they are immoral.
Posted on 5/13/21 at 4:35 pm to Ross
quote:
You either allow gouging or you have shortages.
You allow the market to set the price or you have shortages.
“Price gouging” implies there is some fixed price level that a good should never exceed.
Posted on 5/13/21 at 4:39 pm to seawolf06
quote:
They report them to the state agencies.
and what can they do? Do gas stations not get to set their own prices?
Posted on 5/13/21 at 4:45 pm to RobbBobb
quote:
We have very recent experience where the utility companies acted as the hoarders by raising rates, and people were SOL during the ice storm. Or the gas stations became the hoarder following a hurricane, and travelers were SOL if they couldnt pay up. And now sawmills are the hoarders, and home builders are SOL until they decide to turn the mills back on
In each of these situations if the supplier is sitting on their stock because people or not purchasing due to price they are not making money an will be forced to lower price. The market will always reach equilibrium between supply, demand, and determine the correct price for goods.
Posted on 5/13/21 at 4:49 pm to RobbBobb
quote:
We have very recent experience where the utility companies acted as the hoarders by raising rates, and people were SOL during the ice storm.
You're going to have to provide some sort of basis for this statement. Which utilities were doing this?
Posted on 5/13/21 at 4:55 pm to slackster
There is no such thing as price gouging.
It’s a made up term like “trickle down” or “assault rifle”
supply/demand and scarcity. That’s it.
And any time the state tries to influence either of those, there is never enough or so much that we pay farmers to burn crops.
Either way it’s inefficient and dumb.
It’s a made up term like “trickle down” or “assault rifle”
supply/demand and scarcity. That’s it.
And any time the state tries to influence either of those, there is never enough or so much that we pay farmers to burn crops.
Either way it’s inefficient and dumb.
Posted on 5/13/21 at 5:01 pm to Hayekian serf
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