re: What are your thoughts regarding laws against price gouging during states of emergency?

when i was a kid there was a local small business retailer that jacked up prices on portable generators and kerosense heaters after a big ice storm knocked out power to the area. Fast forward several months and the same business ended up closing and declaring bankruptcy because no one would even enter his parking lot to turn around.

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Laws against price gauging are bad because they increase and prolong shortages. When venders can price gauge, it gives greater incentives to people outside of a disaster stricken area to risk life, limb, and equipment to bring supplies into the area.

With no price gauging, once supplies run out, they stay out until conditions are safe to resume normal deliveries. There’s no payoff for risking damaging a delivery vehicle, so supply lines are not repaired as quickly.

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I'm sorry but I disagree with this. Maybe that's true in Louisiana but not here in Florida for the most part. I believe in the free market but I'm okay with capitalistic policies being suspended during a natural disaster emergency like a hurricane for essential items.

I live south of Orlando so while I live inland, this storm could go almost right over me. Regardless of price gouging laws, once the storm starts once supplies are out they are going to stay out.

Another poster here said that when Walmart runs out of water or food, that they won't replenish those items unless the emergency is over and unless they can price gouge. While some stores have been out, if you want water, you are able to find water. The vast majority of the stores have been replenishing food and water.

Even with gas, I just got topped off again yesterday. Yes I had to go to 4 different stations before I found one with gas, but gas shipments are still coming in.

I can understand that shipping costs increase during a disaster, but I absolutely support price gouging laws for essential items as long as it's a short duration.

Take this hurricane for example, I support price gouging laws being in effect from this past Sunday (when many of the price gouging laws here in Florida activated) until Friday after the storm.

I support price gouging laws for essential items like food, grocery items, gas (absolutely essential for evacuating and running generators) and a few other essential items.

Obviously I would support price gouging laws for unessential items like alcohol (nice to have during a hurricane but obviously not essential). I would not support price gouging laws for restaurants (going to a restaurant isn't a right so if they want to charge $30 for a normally $10 burger go for it). Most importantly, I would not support price gouging laws for hotels. It is not essential and if people can't afford hotels, there are always shelters available in the affected areas.

But as long as the duration is short (only the duration of the event or say maybe 1 week or less) and it's only for essential items (water, food, gas, essential tools to clean up after the storm like chainsaws), then yes I absolutely support price gouging laws.

You all act like companies lose money during emergencies. I guarantee you the local Walmart is having great sales this week. Me and millions of other Floridians are probably buying 3 times the amount of groceries we typically buy. I never buy packs or gallons of water except during a Hurricane. Walmart and other local businesses aren't hurting.

Business should not even think about increasing their profits during an emergency. The goal should be to help your customers.

And even for those non-essential items, I hope if companies price gouge that people remember it, boycott that establishment after the storm and they go out of business.

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Should have expected the OT to favor protecting business and corporations over the consumer, but I had some hope

Government is not setting the price. It is limiting the percent increase during a declared emergency to protect the actual constituents, which would be the consumer, and not the business, a non-living entity

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It's not favoring the business, a lot of the time it's understanding human nature. Anyone attempting to attend a concert, but a video game, or that has been in a disaster recently has figured out that scalpers, hoarders, and resellers absolutely suck arse.

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MountaineerPatriot

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so tl;dr you support price gouging laws for both essential and non-essential items...because hey, it's a much better deal to get 0 12-packs of toilet paper for $8 than it is to get 1 12-pack of toilet paper for $20, right?

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Laws against gouging are always going to be tough to define, and people will end up hoarding and/or scalping if there's no price increases.

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So let me ask you this. I’m in the effected area. I was able to go out last night and get an extra gallon of water at regular price. Water was available. If your mentality was true that shouldn’t have been possible.

I was able to top off my tank last night as a gas station at regular price. According to you that shouldn’t have been possible.

We’re not talking about lowering prices. Just keeping prices as it is.

I have no doubt the state is also helping to offset any increased shipping costs or will offer programs as needed. Flat out, I’m not feeling bad for the Walmarts, Home Depot’s and Marriott’s in the area. Even with price gouging laws the stores and hotels in this area are still having a very good weekend.

There is no purely market-driven or economic answer to problems like this.

We need people to be good.

A good shop owner doesn’t try to make extra money off of people’s suffering during an emergency.
A good customer wouldn’t buy up all of the stock of some emergency item and then try to re-sell it when the store sold out.
Etc etc

If everyone was just better, more moral, this wouldn’t be a problem.

In our fallen state, the best we can seem to achieve is to let “price gouging” happen so that the market can set a price that discourages hoarding. And then hope that those in need who can’t afford the higher prices are provided for through other means.

But again, as in most things, the best thing would be for us to treat each other as brothers and children of the Most High God.

Price gouging is actually effective in a lot of instances. Let’s say your town is out of generators and there’s plenty 6 states away. If a guy was to buy them all up, pay to ship them to your area, and sell them for double the normal price that’s ok. Reason being is that if he couldn’t make that profit then you wouldn’t have the access to them anyway. The profit makes it worth it for him to make that happen. If you can afford one at double the price you’re happy as hell that now you have the ability to get one.

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There's an argument to be made that price gouging actually can help more evenly distribute resources. Charging 20 bucks for a bottle of water could mean that several people buy the minimum they need/can afford, whereas if they were still a dollar a pop or something one person may come in and just buy the whole lot and now only one person has all the water to themselves.

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Spot on. One of the few case studies I did in college that changed my way of thinking.

Additionally without the price increases you see from folks buying excess items and flipping for a profit.

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There is no purely market-driven or economic answer to problems like this.

We need people to be good.

A good shop owner doesn’t try to make extra money off of people’s suffering during an emergency.
A good customer wouldn’t buy up all of the stock of some emergency item and then try to re-sell it when the store sold out.
Etc etc

If everyone was just better, more moral, this wouldn’t be a problem.

In our fallen state, the best we can seem to achieve is to let “price gouging” happen so that the market can set a price that discourages hoarding. And then hope that those in need who can’t afford the higher prices are provided for through other means.

But again, as in most things, the best thing would be for us to treat each other as brothers and children of the Most High God.

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Agree. Maybe the best deterrence would be to put these places on blast on social media and organize a boycott once everything settles down. That way government doesn't need to get involved.