TIME: Post-Sandy Price Gouging: Economically Sound, Ethically Dubious

[Henry Rogue]

I don't think price gougers should be praised. I think they cut there own throats. I'm just skeptical about making it illegal a long with hoarding. Should all that is immoral be illegal? Depends on who defines what is immoral. That worries me.

[torchbearer]

It is immoral to use the force of government to tell someone what they can and can't do with their property.
If I own 50 gallons of fuels, i can sell it for whatever price i want. The consumer will decide if I fail or not on price.
To use force to stop these transactions is the immorality.

[CT4Liberty]

Price gouging during an emergency is immoral. And there is more to business than getting the best price for a product any given minute. Of course in the long run, supply and demand rule, and an open, competitive market will set the appropriate price. An emergency is a short term, temporary situation.

Sure, if you run the local Quicky Mart, you could raise the price to whatever you could get from desperate people. But there's more to this world than economics. After the emergency is over, you may not have any return customers. As a matter of fact, if the customers are desperate or angry enough, your store may get burned to the ground, and in earlier times, you might get tarred and feathered and run out of town.

Adultery is immoral as well, we do not need laws against that...

But the rest of your response proves why price fixing is not necessary. It is up to the property owner to figure out the best price for them short & long term... sure you might make a pretty penny for a week during the storm, but if you lose all business after that wont help you much. The market will take care of people who prey on the public...

[CT4Liberty]

The merchant could limit purchases to one bag per person.

I doubt you would find anyone here argue that a merchant couldnt limit the purchases, what they say is that they shouldnt be forced to...

As a merchant, my goal is to sell all my bags of ice, not to make sure that everyone gets a bag.... if I want to do that out of some sense of civic duty sure, but nobody should be forced to be "moral" as long as their actions do not infringe on anyone else's rights....

[Brian4Liberty]

I doubt you would find anyone here argue that a merchant couldnt limit the purchases, what they say is that they shouldnt be forced to...

Yeah, merchants do it all the time.

As I think about it, it occurs to me that for a product where the demand far surpasses the supply over a long period of time, the product usually ends up being distributed in a crony manner. The products first go to people with some type of connection. True price discovery and supply and demand takes effect in the secondary market after the insiders get their first pick. Politics and economics intersect.

[Brian4Liberty]

I don't think price gougers should be praised. I think they cut there own throats. I'm just skeptical about making it illegal a long with hoarding. Should all that is immoral be illegal? Depends on who defines what is immoral. That worries me.

Adultery is immoral as well, we do not need laws against that...

The less laws the better, and repealing the war on drugs is priority number one, IMHO.

[Bohner]

The merchant could limit purchases to one bag per person.

The problem is some need that ice more than others. What if one person wants that 1 bag of ice to keep his beer cold while another person needs 2 bags of ice to keep his insulin for his diabetic child cold, and 1 bag isn't enough?

With price gouging, the person wanting his beer to be kept cold would probably not buy it because it's not worth $6 for a bag of ice (evil price gougers ). Meanwhile, $12 for 2 bags of ice for the guy with a diabetic child is more than worth it.

Price fixing with limits also creates absolutely no monetary incentive for increased allocation of resources to the high demand disaster area.

[thoughtomator]

The concept of price gouging is a false one - location and time are valid factors in a price. High prices tell the market "bring more stuff here", solving the imbalance between supply and demand faster than any other paradigm can reliably achieve.

[Brian4Liberty]

Neighbor knocks on door: "Can I borrow a cup of sugar, we're making a cake."
You: "Well, the grocery stores are still empty due to the hurricane, so that sugar is very valuable right now. I'll sell you a cup for $50."
Neighbor: "Lol. Seriously?"
You: "Yeah, that is how supply and demand works. We will never discover the true price if I don't charge you $50. And if I don't charge you that much, the stores and the free market will never know that more sugar is needed. Where else are you going to get sugar right now?"
Neighbor: "OK then. ... Oh by the way, tell your wife that if you come over tonight for the BBQ that my wife invited you guys over for, the charge is $1000 a plate, dessert not included."

[Brian4Liberty]

The concept of price gouging is a false one - location and time are valid factors in a price. High prices tell the market "bring more stuff here", solving the imbalance between supply and demand faster than any other paradigm can reliably achieve.

A grocery store or gas station won't restock as soon as they can?