Legalize Price Gouging

well in the case of katrina it was not price gouging. it was a significant and sudden decrease in supply. the only thing to be done about that is to let markets function. as price goes up, the ability of people to supply more of the product goes up, and thus more is supplied.

 

But that's not the only thing to do. You could give away water for free, since people need it. You could sell it at the same price. You could charge more, but still price it within reach.

You're basically saying that because price gouging is a market function, it isn't wrong. But human beings are more important than the purity of the market. And it's not really a free market function, since human beings are not free to stop drinking water.

 

Billions don't. There is not always a source of drinking water. Every human civilization throughout history has been shaped by the availability of drinking water. Less than 1% of the water on the planet is okay to drink. People die of thirst all the time.

 

That was not price gouging.

 

ok, that's fine- water is important, I don't disagree. that has nothing to do with price gouging (which doesn't exist)

 

Who's protecting ME from the govt price gouging my taxes? Hmmmm???

 

He lived in Indiana. He also drove a Hummer and that had somethng to do with him not being able to afford gas. He made the mistake of listening to the Governator when he said to go buy a hummer.

 

Unless roads are shut down, bridges are out, and the ability to deliver goods is decreased because law enforcement will not allow travel to certain areas due to public safety concerns.

That is not the market determing the price. It is taking advantage of public distress. belive it or not some people do not have 10.00 for a gallon of water.

We had someone do that during a drought here in Bama. he was selling overpriced hay. He sells very little today (at any price) because people have good memories. In the long run it is also bad for business.

 

How is it not a response of the market? The reason that supply drops doesn't matter. Supply could drop due to a bad harvest, natural disaster or government intervention. Regardless, the supply is reduced which drives up the price. Once the supply recovers, the price will drop accordingly.

Which is a great example of why price gouging is not much of a problem. Consumers will find an alternate source, the gougers will lose their corner on the market and eventually will lose even more market share because consumers will remember.

 

I'm glad this post is still up. It's actually relevant now.

 

How about wanting $15 an hour to put a pickle on a hamburger???????????????

 

I have them hold the pickle. Does that mean i get it for $12 or do I have to pay $18

 

That job was a student's job,
not a support a family job.
That's the problem.
Changing a low paying "kid's job" to a family supporting wage.

 

Price gouging no, rationing, yes.


Govt needs a method of forcing rationing on certain items in the event of a natural or unnatural disaster. Things like gasoline, bottled water, and food items should have very strict limits on per purchase items. For a set period that can only be extended by Congress on a per instance basis.

 

Standard Oil held a monopoly because it found a way to refine oil at a price that no one else could beat. It maintained that monopoly until competitors figured out other methods and were able to compete with Standard. By the time of the anti-trust decision, Standard had long since lost a great deal of marketshare and was well on the way to being less than 50% of the market. For all the allegations about Standard Oil, the anti-trust suit ONLY ever considered the market-share issue.

 

Rationing encourages hoarding. If I don't need 20 gallons of gas, but you are going to give it to me, then I'll take it and save it for when I need it. Meanwhile, the person who needs 40 gallons can't get it, except on the black market.

 

Objectively define "price gouging", or is it that it's immoral because it's illegal?