Bans on price gouging

[grumbler]

In the theoretical "free market," price gouging simply results in competitor entry into the market to take advantage of the higher prices.  If that doesn't happen nearly instantaneously, then the market isn't "free."

[Barrister]

and Yi argues that capitalism isn't about screwing someone over.

You have not made a convincing case that a single person buying up thousands of bottles of hand sanitizer at $0.99/each during a crisis is a good thing. How is that not screwing people over?

If we didn't have this fear of "price gouging", the supermarket itself would have raised the price on hand sanitizer during a crisis, removing any profit for the second-hand seller.

[Camerus]

Better solution:  the store could limit 1 or 2 per customer. Not a perfect answer but it effectively makes hoarding much harder and more time consuming.

What social utility is there in douches like this guy:  https://www.nytimes.com/2020/03/14/technology/coronavirus-purell-wipes-amazon-sellers.html

[Admiral Yi]

As a first crack at the issue, I would say any price increase that increases supply should be allowed, whereas any price increase that limits supply should not.

For example, take my personal Spam experience.  It was essentially sold out on Friday.  Maybe if the truck driver or the stocker had been paid a corona bonus the shelf would have been full.  That cost should be passed on to me.  Same with workers at the Spam plant.

On the other hand if I. M. Profiteer had bought up the whole shelf and was selling cans at triple the normal price out of his car trunk, that should not be allowed.

[The Brain]

All these rules, man. What's wrong with just living by ear?

[Admiral Yi]

and Yi argues that capitalism isn't about screwing someone over.

I'm pretty sure I've never used that set of words in that exact order.

I do think that most cases of people arguing that capitalism is screwing them over are in fact cases of people wishing they were paid more, or had to pay less for a product or service.

I do certainly think it's possible for capitalism to screw people over.  Case in point, the Well Fargo fake accounts.

[Barrister]

I do certainly think it's possible for capitalism to screw people over.  Case in point, the Well Fargo fake accounts.

I don't think I would include out and out fraud as a fault of capitalism.

[Sheilbh]

I do certainly think it's possible for capitalism to screw people over.  Case in point, the Well Fargo fake accounts.

I don't think I would include out and out fraud as a fault of capitalism.

Surely that depends on the incentives and likelihood of consequences?

[Oexmelin]

and Yi argues that capitalism isn't about screwing someone over.

I'm pretty sure I've never used that set of words in that exact order.

How about:

Yi and screwing capitalism argues that isn't over someone?

[Admiral Yi]

How about:

Yi and screwing capitalism argues that isn't over someone?

I can't speak for anyone else.  Screwing capitalism will have to speak for himself.

[grumbler]

I do certainly think it's possible for capitalism to screw people over.  Case in point, the Well Fargo fake accounts.

I don't think I would include out and out fraud as a fault of capitalism.

Surely that depends on the incentives and likelihood of consequences?

Surely that is as true in a command economy as in a market one?

[Admiral Yi]

I don't think I would include out and out fraud as a fault of capitalism.

I would include it as a fault of human nature.  Which can and does operate in a for-profit context.

[grumbler]

How about:

Yi and screwing capitalism argues that isn't over someone?

I can't speak for anyone else.  Screwing capitalism will have to speak for himself.

So you agree that "Yi and argues that isn't over someone?"  I can respect that.

[Josephus]

Count me on the "it's not price gouging, its the free market at work" side of things.

Normally say yes. But not in times of national emergencies.

[Barrister]

Count me on the "it's not price gouging, its the free market at work" side of things.

Normally say yes. But not in times of national emergencies.

Why not?  We see what happens when the price doesn't increase.  Demand spikes and there are then instant shortages.  Which just encourages people to hoarde and buy as much as they can.

Right now you can't buy masks, lots of places are out of toilet paper, etc.  If stores had just increased their price you'd be able to walk into a store and buy them if you needed them badly enough.