by Countable | Updated on 10.10.18
“actually making matters worse by shutting down the mechanism - rising prices - that efficiently and effectively dispatches knowledge and information around the world and calls desperately-needed resources to the areas that are likely to be most affected by the storm.”
"Doubling the price will make customers think twice about buying another gallon of milk, for example, thus leaving supply for those who didn’t arrive at dawn," Mohammed wrote.
Is price gouging “unconscionable”? Or is it the free market at work? Should states relax their price-gouging laws? Hurricane Michael is making landfall: take action above and tell your reps what to do, then comment below.
(Photo Credit: iStockphoto.com / hsun337)
Written by Countable
Taking advantage of people who are in a desperate situation is pretty much as un-American as it gets.
Price gouging ensures that one customer won’t buy all of a given supply. Let’s say a 24 pack of water usually goes for $4 by me. If the hurricane comes here and I have $100, I may go ahead and buy the last 10 cases even though I may not need it. Now if those cases were $30 each, I can’t afford to buy all, nor would I want to spend $300 on all the water.
What happened to compassionate capitalism? Or is everything about the dollar? You can tell that Trump is in office kick people when their down then call it compassion.
It’s called free market capitalism. You can’t have it both ways. You can’t be a unbridled capitalist on a sunny day and then want price control REGULATIONS when it rain. Of course I feel gouging should not be allowed, but conservatives kind force deregulation so their corporate overlords can increase their profits and then try to makeup regulations so that they can pretend to be hero’s of the working man.
NO ..... NO ..... NO ..... NO ...... NO AND HECK NO. NO Way should ANY price gouging be permitted or condoned for any national emergency by anyone for any reason. 10*10*18 ..... SneakyPete.....
Only Socialists would hike prices during National Emergency Situations. They love to gouge the poor or rich. Fairness is for the elites not the poor.
The first rule of economics is that all goods and services are scarce. That is much more the case when there are disasters that disrupt normal supply chains. Scarce goods require rationing, which can happen one of two ways - voluntary rationing (prices adjust and consumers in the market self-limit by reducing consumption, which itself then provides a natural downward pressure on prices, to counteract the upward pressure from reduced supply), or involuntary rationing (someone from the government arbitrarily decides what sounds like a "fair" amount for everyone to get). I choose "price gouging" over government oversight, and would choose that every single time. Additionally, the higher prices (and hence the higher profit opportunities) provide incentive for suppliers outside the affected area to undertake the expense of figuring out how to get goods in there and make sales, thereby increasing the supply available to those affected by the disaster (and, of course, that drives prices back down as well). At this point anyone against the natural movements of prices is basically against helping people.
When I hear the term “price gouge” I cringe. I also cringe at the thought of resource depletion during a time when people need it most. It motivates me to reflect on the mechanism of price and what it is meant to do in the first place: direct behavior. In the absence of a proper rationing plan it makes sense to raise the price of goods as demand and scarcity rise, yet there’s definitely a limit to this. Leaving the window open may lead to nefarious actors to abuse the grey area. It would be nice to see oil, gas, wood and other producers, manufacturers, and retailers come together as industries to set proper standards that are based on distributism.
Market data for non crisis events can justify price fluctuations but increasing during a crisis is plain cruel. What happened to taking care of each other.
No words but no.
You ask this every time and the answer is still no. NO MEANS NO.
It’s already against the law but it happens every time everywhere. It simmers down after local law enforcement cracks down — takes about a week or two and the water needs to go down. Generators, Chain Saws, fuel of any sort, and plastic sheeting are generally most in demand — along with industrial fans to dry things out and mitigate mold — enerally the larger stores the Walmart’s and National hardware chains are generally decent. Also, as soon as the water is down goods flow back into the area quickly depending upon the level of damage to infrastructure.
It’s Terrible taking advantage of other peoples misfortune!
There's a difference between supply and demand, and holding people's health and safety hostage to greed. Nuff said.
Of course not! It is highly unethical!
It’s immoral to rise prices for people who are in the middle of a crisis.
No. Why is this question wasting my time?
I think that is immoral. I wasn’t raised to take advantage of others when they need help.
Businesses should not be able to raise prices in times of crisis. Unethical practices.
Only if I can punch the dealer in the face TWICE!
Heck no! This is a dispicable practice implemented by people who don't care about anyone but themselves. I can't believe we allow anyone to get away with this!
No ... Prices should not increase due to a disaster since people will be in need. However to prevent one person from clearing out the inventory it should be rationed so everyone has equal opportunity to purchase necessary commodities. This should only be implemented on food and water commodities, the nice to haves like TVs, tobacco, wine, etc should be exempt from this protection. As they are necessities for survival.