Warren
Member
The only reason that things don't work as they should is that there are alot of policitcians and bureaucrats mucking up the works.
ustin, there is a 3rd way, which is the legal one at the moment: allow normal pricing mechanisms to continue. (even if the goods are exhausted). if those guys can show that their costs are going up from $1 to $3/gal i'm sure that's a valid defense. however, since reality is that gas peaked then, and has fallen quite a lot since, these "what if" theories aren't going to go very far.
now if you want to argue about how things would work in our little anarchist fantasyland, then fine.
during gulf war II, a local gas station raised their prices from $2 to $6 the night the "shock and awe" phase started. the state AG busted them on it. no surprise. they deserved it.
WHY DID THEY DESERVE IT?
And I sure hope you guys saying price gouging is bad aren't the same ones that say when a disaster hits and someone asks you for a gun, because they don't have one, you're going to tell them to screw off, they should have thought about that.
1. What is Price Gouging?
Florida Statute 501.160 states - It is unlawful during a state of emergency to sell, lease, offer to sell, or offer for lease commodities, dwelling units, or self-storage facilities for an amount that grossly exceed the average price for the commodity the thirty days before the declaration of the state of emergency or the seller price for the commodity the thirty days before the declaration of the state of emergency unless the seller can show increases in its prices or market trends justifying the price. Examples of necessary commodities are food, ice, gas, oil and lumber. This is a civil crime enforced by the Attorney General, the Department of Agriculture and Consumer Services and State Attorney.
2. How do I know if I’m being price gouged?
The law compares the price of the commodity or service to the average price charged over the 30 day period prior to the declared state of emergency. If there is a “gross disparity” between the prior price and the current charge then it is price gouging.
3. What kinds of things are covered under the Price Gouging statute?
The Price Gouging statute covers only essential commodities. A "commodity" means any good, service, material, merchandise, supplies, equipment, resources, or other article of commerce, and includes, without limitation, food, water, ice, chemicals, petroleum products, and lumber necessary for consumption or use as a direct result of the emergency. Examples of non-essential items luxury items are alcoholic beverages and cigarettes. The law also requires those selling goods and services to possess an occupational license.
onerifle said:Price gouging, or capitalism?
Quote:
WHY DID THEY DESERVE IT?
because they broke the law?
If you won't let a gas station owner raise his prices in anticipation of future wholesale price increases, will you let him close his doors and refuse to sell the gas he has on hand to keep it for his own use?
Pilgrim
I think that their excess profit margins need to be checked!
Justin said:Define "normal" pricing mechanisms? It strikes me as rather intuitive that the normal pricing mechanism that results from a shortage of a particular good is to raise the price to match the demand.
In a situation like Katrina, where demand for a limited commodity is high, while supply dwindles, neither system does a thing to create or bring in more of that commodity. Raising prices only serves to cause people to question how much of that given commodity they want. The natural result is that the commodity is automatically rationed, and everybody gets some.
When the state steps in to maintain pricing at "non-gouging" levels, people are going to continue buying without doing an honest appraisal as to the quantities needed. As a result, not only must the state then force the sellers to maintain their mandated prices, but they must also institute some sort of rationing scheme.
Sergeant Bob said:The government makes more per gallon than the oil companies.
Why isn't everyone screaming about being "gouged" by them?
For every one that wants a free market, complete with no government oversight, well, I hope you like being a serf.
All that talk about "monopolies" misses the point that the barriers for market entry are regulatory, not financial or technical. In other words, it's a government-induced problem, and government is the last party interested in a free and open market with self-regualting prices (which are the only kind of "fair" prices.)
uh, tell that to Walter Williams, PhD, and Thomas Sowell, PhD. I think they got well beyond high school.
A competitive free market will always control itself, friend. Supply and demand will meet at a price so that there is no surplus or shortage.
now, now. don't get all salty. you can say a quote (presumably directed at me personally, since i seem to be the only one on this side of the fence) that includes "evil nasty business owners" "here's a clue" and "grow up." bears repeating. you've got to admit, that's not a tone that's exudes interest in honest discussion.
however, if you and I are stuck in an attic for a couple weeks in N.O. and you've got all the water, then we either don't have enough, and we're conserving anyways, or you have plenty, in which case it would be morally wrong for you to ask for my house in exchange for a couple gallons of water.
the point is that pricing of inelastic goods doesn't help resolve allocation in any useful way, especially when the market isn't working.
My comment however, was directed to this notion that today's economy is a free market. it ignores countless external artificial influences that change the way the market behaves.