AWB Panic! . . . or not

[Warp]

Temporary price caps are at times used to control it and ensure everybody has access to needed items.

lololol

...when supply and demand dictate a certain price, artificially lowering that price means that fewer will be sold and more will be available...right

That is beyond silly

 

[JustinJ]

lololol

...when supply and demand dictate a certain price, artificially lowering that price means that fewer will be sold and more will be available...right

That is beyond silly

It sure is. More silly is just reading something and accusing the writer of saying something totally different. My comment was "Temporary price caps are at times used to control it and ensure everybody has access to needed items." How exactly you equate that to "fewer will be sold and more available" is beyond me. My comment said nothing about about amounts sold or available. Once again, as clearly as i can say it, the purpose is to ensure a readily purchased product is not available to just wealthy individuals during times of limited supply.

Regarding ammo and firearms prices and the earlier references to price gouging, I'll give a couple examples. In early 2009 I was picking up a pistol at a gun shop. While I waited, I asked about the price on a Bushmaster AR on the rack that looked like a very basic M4 clone. The guy wanted $1600. I wasn't willing to pay $1600 for a base model Bushmaster so I passed. It wasn't worth it to me at that price. A few days later I was in another gun shop and saw a comparable AR from Rock River. The price was significantly lower than the rifles at the other shop and I was willing to buy one at their price. The guy at the shop selling $1600 Bushmasters, no doubt, continued to lose sales to his competitor until he lowered his prices. I am sure he didn't have much luck "price gouging."

The effectiveness and unintended consequences of price caps will of course vary depending on how implemented and what is being regulated. Price caps on food, btw, were also implemented during WWI and then again in WWII. There may have been negative effects but arguably doing nothing would have been worse. Regardless, the point is that there was price gouging on weapons and ammo as a result of the last election. However one feels about the practice price gouging, by definition, did occur.

 

[silicosys4]

There is a valuable point here that everyone is missing. Contrary to the above post, the shortages and gouging last 2008-2009 was not a result of the last election. It was a result of people's fears regarding the outcome of said election. And today, they remain baseless. I hesitate to predict a rekindling of those fears as they are, aside from a random blurb here and there, completely unfounded by any action.

 

[alsaqr]

Contrary to the above post, the shortages and gouging last 2008-2009 was not a result of the last election. It was a result of people's fears regarding the outcome of said election.

Bingo!!

Those with a vested interest in raising gun prices played on folks fears that awful stuff would happen soon after 20 January, 2009: It worked really well. The gunshow promoters, online ammo stores, gun store owners and others made a killing.

 

[Warp]

The effectiveness and unintended consequences of price caps will of course vary

They sure will

 

[doc2rn]

Wheel guns hold six and the rifle holds seven....nope I am good, just need more ammo.

 

[Robert]

THR is not an economics forum. That's enough for this go around.