Economics: The Value of "Price Gouging"

[DBTrek]

How are the potable water hoarders able to prevent anyone else from entering Louisiana with pallets of water to sell?

Oh my Jesus.

All they have to do is buy the water.

From everyone entering the state with water to sell? Right. That’s fantasy land thinking right there. Badass joe and his friends buy all the water from every independent vendor entering the state, at prices dictated by every independent seller, and then only re-sell a glass or two per gallon. Something we’ve never seen in the history of mankind because local thugs don’t have the resources to buy EVERYONES water, thanks to the supply and demand curve.

The more money badass joe and co put up to vendor #1 for his water, the higher vendor #2 charges for theirs. Badass joe is out of cash quickly and water keeps coming in, one van at a time.

[Speaker to Animals]

How are the potable water hoarders able to prevent anyone else from entering Louisiana with pallets of water to sell?

Oh my Jesus.

All they have to do is buy the water.

From everyone entering the state with water to sell? Right. That’s fantasy land thinking right there. Badass joe and his friends buy all the water from every independent vendor entering the state, at prices dictated by every independent seller, and then only re-sell a glass or two per gallon. Something we’ve never seen in the history of mankind because local thugs don’t have the resources to buy EVERYONES water, thanks to the supply and demand curve.

The more money badass joe and co put up to vendor #1 for his water, the highe vendor #2 charges for theirs. Badass joe is out of cash quickly and water keeps coming in, one van at a time.

The whole state?

You are moving goalposts a fuck ton here.

A disaster typically affects a small area, maybe as large as a city, but price gouging need only affect an immediate cluster of neighborhoods to be effective.

I think you need to learn how markets actually work first.

[Speaker to Animals]

In particular, you keep talking about supply and demand, but you show no evidence you actually understand how that works.

Price gouging does not imply one seller among many decided to sell shit for 1000% markup. Obviously nobody would buy it if they could go elsewhere. A high price implies supply is restricted for some reason. Price gouging happens when supply is restricted artificially.

[DBTrek]

The disasters cause the supply shortage (cold vortexes, hurricanes, floods) not the capitalists. New Orleans isn’t short on potable water after Katrina because libertarians or Jeff Bezos bought it all. They’re short because a hurricane just blasted their infrastructure to hell.

The local Crips buying all the water from everyone entering Louisiana (with the intention to sell in NO) for the next 48 hours isn’t even a concern because
1 - They lack the omnipresent knowledge required to know where all the potable water is
2 - The more they pay per gallon the higher each subsequent gallon costs until that point where supply and demand reach parity.

[Speaker to Animals]

I already established I don't give a shit about prices changing in response to real changes in supply.

I think you should move on from that canard.

[DBTrek]

I already established I don't give a shit about prices changing in response to real changes in supply.

I think you should move on from that canard.

Ok ... then how does artificially fixing a low price on a good in high demand prevent a resource monopoly like you describe? Chicago says no one can sell an electric blanket for more than $9. Now any monopolists who wants to hoard the entire supply can try it at cut-rate prices, thanks to anti-price gouging laws. Before monopolists had to try to buy all the electric blankets for whatever independent vendors were charging. Now they can rely on Johnny-law to force everyone to sell all their blankets at $9 apiece, or else.

Anti-price gouging laws don’t even prevent the monopolist hoarding scenario you describe, in fact, they assist it.

[clubgop]

Tell that to the ferry guard crossing from Congo to DRC.

The thin veil of western civilization is kept in place by price gouging laws, sorry not buying it.

I was pointing out what happens without laws. Anti-Gouging are more a courtesy than anything real. Like I said, 2nd Amendment fixes it.

I am sure the Congolese ferryman follows the law to the letter, sure.

[Speaker to Animals]

I already established I don't give a shit about prices changing in response to real changes in supply.

I think you should move on from that canard.

Ok ... then how does artificially fixing a low price on a good in high demand prevent a resource monopoly like you describe? Chicago says no one can sell an electric blanket for more than $9. Now any monopolists who wants to hoard the entire supply can try it at cut-rate prices, thanks to anti-price gouging laws. Before monopolists had to try to buy all the electric blankets for whatever independent vendors were charging. Now they can rely on Johnny-law to force everyone to sell all their blankets at $9 apiece, or else.

Anti-price gouging laws don’t even prevent the monopolist hoarding scenario you describe, in fact, they assist it.

By cornering the market in a region where people lack the ability to get outside said market to buy from competition. I am not explaining this to you a fourth time. I think you possess the minimum IQ to grasp what I explained.

Removing price gouging laws very obviously creates scarcity. It's fucking stupid, and the fact that you cannot quote mine your one Sowell book on economics to respond to this should have indicated to you that your book is not providing you with an objective view of economics at all.

[clubgop]

I already established I don't give a shit about prices changing in response to real changes in supply.

I think you should move on from that canard.

That the whole OP. Look at the attorney general's threatening to sue people. That the point. Live in the real world.

[Speaker to Animals]

I already established I don't give a shit about prices changing in response to real changes in supply.

I think you should move on from that canard.

That the whole OP. Look at the attorney general's threatening to sue people. That the point. Live in the real world.

I do not agree with them either.

Both groups are arguing a fucking canard and refusing to acknowledge reality.

Actual, honest to God, scarcity should in fact result in higher prices. Fucking duh.

Decriminalization of price gouging laws creates an incentive to artificially impose scarcity, which is the exact opposite of what you want in a disaster. Again.. fucking duh.