NJ Charges Merchants with "Gouging"

[CaptUSA]

http://www.nbcnews.com/business/n-j-charges-8-merchants-gouging-after-sandy-1C6972582

New Jersey has filed lawsuits against eight businesses for allegedly gouging customers with exorbitant prices in the days after Superstorm Sandy roared ashore, the state's attorney general said Friday. The defendants, seven gas stations and a hotel, are accused of hiking their prices from 11 to 59 percent in the days after the storm. One gas station was charging as much as $5.50 a gallon, Attorney General Jeffrey S. Chiesa said. The hotel, a Howard Johnson Express in Parsippany, N.J., allegedly raised its room rates to $119 after the storm, up 32 percent from the top rate of $90 just prior to the storm.

WHOA!!! $5.50/gallon?!! Throw these assholes in prison right now!

So I guess standing in line for 6 hours to buy gas at $3.69/gallon is cheaper in the minds of the idiots running NJ. Obviously, they have no sense of opportunity costs.


The defendants face fines of up to $10,000 for their first offenses and $10,000 for subsequent offenses. Each sale is considered a separate offense. Prosecutors estimate that the gas station charging $5.50 for regular-grade gas made 230 sales on Nov.1, when the state of emergency was in effect.

And they wonder why there are shortages...

THIS is why Chris Christie is done. It has nothing to do with hugging Obama, it has everything to do with the fact that when it mattered most, he rejected the free market and turned to government to solve (read: create) these problems.

[MoneyWhereMyMouthIs2]

And they wonder why there are shortages...

THIS is why Chris Christie is done.


Nah. Even the smarter people I know have very little understanding of basic economics. Add in the dumb people, and this is a positive for his popularity. Sad, but true.

[CaptUSA]

Nah. Even the smarter people I know have very little understanding of basic economics. Add in the dumb people, and this is a positive for his popularity. Sad, but true.I would argue that people have little understanding of the causes, but they have great understanding of the results. It is unfortunate that they won't connect the dots, but they will hold him responsible - even if they don't know why.

[kathy88]

We are so screwed.

[MoneyWhereMyMouthIs2]

I would argue that people have little understanding of the causes, but they have great understanding of the results. It is unfortunate that they won't connect the dots, but they will hold him responsible - even if they don't know why.


They will not hold him responsible for forcing businesses to sell things at lower prices in an emergency. They perceive it as stopping people from being greedy. They don't understand opportunity cost of time. They don't understand that higher prices will bring more supply, and bring the cost down. They don't understand how equilibriums are reached or why higher prices lead to more supply - lowering prices.

They just aren't there mentally. This is exactly the sort of topic that makes me aggravated when people act like "austrian" economics is some completely different animal from "mainstream" economics. (and I see that a lot here.) Both predict the same outcome. You can graph it mathematically... or you can come to the same obvious conclusion through philosophy. You can examine empirical evidence as well.

Even though these are simple concepts that can be taught to 5th graders, they are not taught. My guess is that Christie doesn't even understand these simple concepts. Give me the fucking microphone and I'd explain it in 5-6 minutes. Christie? No. He likely doesn't understand it, and it wouldn't matter if he did.

People like him are out to fool the most people with the least effort, and that is exactly what this is. He strives for votes and power, not education and problem solving. In fact, the dumber he leaves people, the more easily he can manipulate them. Politicians and sociopaths will do this, whether they understand the concepts themselves or not.

[alucard13mmfmj]

wait.. so 5.50 is price gouging?

What will happen when iran is bombed and its 10 dollar? Charge all gas stations and oil executives? lol