Sandy and the Evils of Price Gouging

[John L]

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As if Superstorm Sandy wasn't bad enough for Kookdom, i.e. New York, and New Jersey, it is also necessary to shoot one's self in the foot, just to show everyone what geniuses they are.

Right on schedule: Time to go after those awful “price gougers”

When allowed to function properly, the free market works very smoothly in bringing people the goods and services they want, in the amount that they want them, and for the price at which they value them. As much as people don’t like hearing it, the laws of supply and demand are no less vital in the event of an emergency — but politicians sure do love to rag on those greedy, profiteering businesses that jack up their prices in the event of a sudden supply shock or demand spike (a.k.a., “price gouging”). Anti-price gouging laws are a huge mistake that hurt the public at large, because all they accomplish is preventing the free market from doing what it does best: Quickly and efficiently adapting to conditions in a way that benefits everyone, and in an emergency especially, price gouging can save lives.

Predictably, of course, in the wake of Hurricane Sandy, so begins the outrageous outrage against those who had the audacity to raise prices on things like gasoline and lodging, via NBC: N.J. charges 8 merchants with gouging after Sandy

New Jersey has filed lawsuits against eight businesses for allegedly gouging customers with exorbitant prices in the days after Superstorm Sandy roared ashore, the state’s attorney general said Friday.

The defendants, seven gas stations and a hotel, are accused of hiking their prices from 11 to 59 percent in the days after the storm. One gas station was charging as much as $5.50 a gallon, Attorney General Jeffrey S. Chiesa said. The hotel, a Howard Johnson Express in Parsippany, N.J., allegedly raised its room rates to $119 after the storm, up 32 percent from the top rate of $90 just prior to the storm.

“We have received no indication that these defendants faced costs that would have made these excessive price increases necessary or justifiable. One gas station even paid less per gallon for a shipment of fuel after the storm than it had paid before the storm,” Chiesa said in a statement.

“Justifiable”? “Excessive”? “Exorbitant”? Excuse me, but how is it that any government possesses the all-encompassing knowledge to determine what is and is not an “exorbitant” price? Competition is a much more accurate and efficient regulator than any government can ever be, and perhaps if lawmakers and bureaucrats were wise enough to let the market do its thing, their citizens would be better off.

I can only hope that FINALLY someone will be willing to take a similar case all the way up to the Supreme Court. It really needs to be thoroughly adjudicated so as to cut this this localized stupidity out, once and for all. Supply and Demand, if left alone, will seek its own level and the customer will be better off without lamebrains in government trying to impose their will on everyone.

Price Gouging Saves Lives

Is Price Gouging Immoral? Should It Be Illegal?

Price Gouging -- Stossel In The Classroom

Fucking Morons! No wonder sane people tend not to live in such places.

And just as an aside, even North Carolina has a stupid price gouging law.

Fortunately, it is not enforced, because the law is political, and the people here know it will never stand the test in a court of law. Perhaps now that most of the Jackasses in NC are being sent packing, responsible politicians will repeal such stupidity from the books.

[Twitchin Kitten]

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yeah John, Let's keep raping the people who are now homeless from catastrophe and make them feel even less like human beings.

And just so you know, we are quite sane and normal here. You may not notice it because you're too busy thinking up insults for anyone who isn't like you or who lives someplace you don't "approve" of.

[Twitchin Kitten]

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I'd like to also add that price gouging was taking place long before fuel was running low. There's a big difference between supply and demand pricing and raping those in need for pure greed. There is no gas shortage by me and I'm in one of the harder hit areas.

[John L]

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You didn't even bother watching any of the videos, did you? If you did, you would realize that 'so called' price gouging actually helps the economy and gets goods to the area far faster. All this is just pure stupidity, and economic ignorance on parade in front of everyone.

And no, I'm not trying to insult YOU personally, just the kooks living up there, who come up with this foolishness. If you were perhaps a little more economically educated you too would be raising hell about it. Educate thyself, for heaven's sake.

Good day.

[AnthonyG]

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If the guy drove 600 miles from where he lives charges double for his generators and makes similar profit margin as say what lowes or depot did to scale thats fine. However if say the guy bought a generator for 400 dollars it cost him 100 dollars in overhead like gas and such and he sells it for 800 that is kind of unfair.

My business opened back up a few days after the hurricane hit here,we lucked out and were the only game in town for a few days when it came to getting a breakfast sandwich. I didn't raise my prices instead I secured large amounts of product and ingredients needed to keep up with the demand. Also I had a good reason to raise prices, we had already lost 30k dollars in food spoilage and lost revenues from days when power was out.

There is nothing wrong with making money in a time of an emergency, but don't prevent someone from getting what they really need because you want to line your pockets more.

[Twitchin Kitten]

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Exactly, Anthony. People will NOT make a return visit to a place that will gouge your pocket like opportunist pricks. The greedy business owner loses in the long run for a short run on his greed. People will make it a point to travel elsewhere for the product until the greed monger is out of business. You do good by your customers they come back and they tell people to visit your store and buy your goods. You gyp them and word of mouth ruins you faster than you can blink.

[Twitchin Kitten]

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John, I'm not sitting through 15 minutes of video. Sorry. I just don't have that kind of attention span.