Posts tagged ‘price gouging’

“Price Gouging”


Is Price Gouging Immoral? Should It Be Illegal?

The laws of economics are not suspended in an emergency, no matter what the laws of politicians attempt to do. When goods are more scarce, they will be costly to obtain, whether those costs are in terms of money or something else. The importance of letting market prices do their job and determining who gets what is that this process is also the way in which we make sure that there is stuff to be allocated in the first place. The only way to make sure we have sufficient production is to let market prices determine consumption.

Hurricanes Don’t Blow Away Economic Law

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Who knew?!?!?!?!

If you oppose “price gouging,” then you think that there is something magical, something mystical, about the price charged a week ago, when there were plenty of gas stations and people didn’t really need gas because they didn’t need to run generators and they could ride the subway. For some reason, that price then, which was the result of VERY different circumstances in terms of both availability from suppliers and value to users, is the “correct” price.

I have never understood that argument. Let me just admit that. There is nothing special about that price. There are fewer places to buy gas now, and more people need gas, really really need it.

So, even if I concede everything you want to argue, folks, the anti-gouging law is still dumb. It still costs people as much, or more, to get gas. They just pay in time instead of money. And nobody gets the value of the time, it’s wasted. Do you really believe that those folks standing in line don’t have better things to do?

Scarcity is the Problem. Price Rationing is One Answer,” by Mungowitz

This kind of magical thinking is the result of not teaching basic economics…. Basic economics.

Govs. Christie and Cuomo are both demagogues and magical thinkers.

Also see “Speculators Storm Safeway!

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