The Mises View: 'Price Gouging' | Joseph T. Salerno

[dreww]

I think Joe just missed one other factor. The seller being in the affected area has to be concerned about how to bridge the time from the emergency to return to normal operations. They still have to pay for rent, utilities, payroll will impact prices. But hey, all us producers are evil in the eyes of the consumers....

[Lurker]

The way governments come down on the market. All I keep thinking is, Who is John Galt? Great video!

[edwaggonersr.]

Dr. Salerno you make it so simple to understand, thank you.

[JamesRiddle_Christ_is_King]

Dr. Salerno is such a gentleman and scholar. Ignorant criminal politicians would never give him an ear.

[edwaggonersr.]

Imagine that an evacuation order has been issued and you need to travel 100 miles within the next four hours to get to get to a safe place.  On the main highway there are two gas stations, one is charging $2.85 a gallon the other is charging $15.00 a gallon.  Which station is going to have the longest line?  The one charging $2.85 a gallon, where most people would say "top off the tank".  The line at the station charging $15.00 would be much shorter and move along much faster because most people would only be buying enough to get out of town, say four gallons.  Which station is going to run out of gas before all people waiting in line have gotten enough gas to get out of town?  Pretty obvious, ain't it!  THIS IS HOW MARKETS WORK!

[jlharland]

Price action is A device to conserve scarce resources, but it not the ONLY device. As the owner of a gas station, rather than raise prices in an emergency, I could impose a limit of of say, 10 gal p/customer until supplies run out, on a first come, first serve basis. It is not an economic necessity that I personally gain from the situation.
You know as well as I that the only motivation in raising prices in an emergency is personal gain. It is not done to conserve scarce resources. If conservation is the motive there are other, less selfish, methods.

[donstacy]

Price "gouging" is a continuum pricing issue with no rational reason to be called a problem. 

[bluemeeni]

The drug companies are not accused of price gouging when charging inflated prices for anti cancer drugs. This is the same thing only its a personal emergency not a public emergency.

[donha]

Price gouging is just price adjustment.

[jow]

I came from the future to say the gas in 2022 is much higher than today than 8 years ago hahaha

[kurtomer]

If only it was that simple, capitalists like to explain away greed as a market force when in reality supply and demand is the most manipulated part of the equation! In this instance though what Joe says makes sense but to people who find themselves in hardship due to no fault of their own it's another burden they have to bear and understandably resent!!!!

[jlharland]

Spare me your patronizing bullshit. At the end of the day, it's not all about money. Money doesn't solve every problem, and money is not the only motivator. There is more to relationships within society than profit seeking.
I did read your entire response. I chose to address only the issue that I did.

[jlharland]

Ah, yes. The Market is perfect, supply and demand, let me make a little more off the suffering or disadvantage of others. It's not me, I just do what the Market compels me to do!
If I was ever in such a disadvantaged position and a local merchant raised prices to cash in on the emergency, I would never buy from that merchant again. Raising prices in an emergency may make economic sense, but it offends my sense of what is moral. It is not moral to profit from others in such a way.