A blog about weather, climate, and science. Occasionally, we'll post on other topics of interest.
Sunday, September 16, 2018
Hurricane Fran: Is 'Price Gouging' A Good Thing?
Here is a point of view you probably will not read elsewhere:
A state law that forbids pricing based on conditions on the ground — and backs that up with threats of fines and being taken to court! — makes it harder to bring in fresh supplies after that same state law helps us run out of existing supplies.
But what about people being “taken advantage of”?
The thing is, when the government dictates prices to prevent consumers from being “taken advantage of” by higher prices during a natural disaster, it’s telling suppliers they’re going to be taken advantage of. Laws against “price gouging” are laws that tell suppliers they can’t break even.