Watching Ike bear down on Houston from the safety of a beach house in Pensacola (yeah, I know, weird, huh?) I discussed with the family how what some people call price gouging is really a benefit for disaster areas. It enforces rational rationing and discourages hoarding. People don’t buy up all the gas or bottled water, and large families double and triple up in hotel rooms instead of taking up three or four rooms at the Motel 6.
I was going to write something more lengthy on this today but this guy beat me to the punch. Enjoy.
I’m waiting for the day that the press starts reporting about the price gouging that goes on with milk, eggs and butter. The lack of understanding of free market economics by today’s journalists, just provides further proof that our universities are hotbeds of socialism.
Hear in Virginia the only thing worse than a journalist screaming “price gouging” is legislature full of idiots who passed a bill outlawing price gouging. this same legislature is primarily Republican. Talk about pandering. As of this afternoon (9/15) the radio was reporting that there was 400 reports of price gouging.
sheesh
Let’s not forget that the station knows they will have to by replacement gas at a higher price (inevitable in such disasters) so raising the price now will insure that he can buy the next tanker load. Of course if the price goes down later, he’ll be stuck with that high priced load, which he will have to sell at under costs to remain competitive.