• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Price gouging is good

multivita-man said:
Right but if there's, say, collusion of gas stations who control supply available to the consumer, then they can, in theory, charge prices that the supply/demand relationship doesn't justify. That has detrimental effects beyond supply conservation, as it eats into disposable income. Moreover, depending on the scale of it, gouging can lead to demand destruction, which ends up being bad for the sellers themselves. There's a reason gouging - true gouging, not price adjustment - is illegal.
Click to expand...
This is price fixing and already illegal and I am not trying to change that.

A gouger retailer would still have to compete with other gougers. And how do you compete? Have as much product as possible and gouge a little less than the competition.
 
tacomancer said:
Allowing price gouging will just encourage hoarding and speculation as people succumb to FOMO.
Click to expand...
Price gouging discourages last minute hoarding (which is a good thing because last minute e hoarding takes away supply and people who truly need it get left out) but price gouging encourages planning ahead hoarding, which is also a good thing because more people are already prepared and might even be able to help their neighbors.
 
Simpletruther said:
This is price fixing and already illegal and I am not trying to change that.

A gouger retailer would still have to compete with other gougers. And how do you compete? Have as much product as possible and gouge a little less than the competition.
Click to expand...

There's typically a strong relationship between fixing and gouging. It's stupid to gouge unless you know that you control the supply.
 
multivita-man said:
There's typically a strong relationship between fixing and gouging. It's stupid to gouge unless you know that you control the supply.
Click to expand...
No, at certain times demand spikes, so there is no need to collude to raise prices. And many demand spikes are semi predictable, like hurricanes, and so if retailers wer allowed to gouge, they would make adjustments to inventory and more supply is then available.
 
Simpletruther said:
Price gouging discourages last minute hoarding (which is a good thing because last minute e hoarding takes away supply and people who truly need it get left out) but price gouging encourages planning ahead hoarding, which is also a good thing because more people are already prepared and might even be able to help their neighbors.
Click to expand...
I am sure you have proof of this assertion and it’s not just your perception of human behavior.

Because that contravenes what happened during the toilet paper thing at the start of COVID where the scarcity was only perception yet people still acted out hoarding and FOMO.
 
tacomancer said:
I am sure you have proof of this assertion and it’s not just your perception of human behavior.

Because that contravenes what happened during the toilet paper thing at the start of COVID where the scarcity was only perception yet people still acted out hoarding and FOMO.
Click to expand...
It's not your perception?

You don't think gas being double price would discourage JOE Blow from hoarding gas during a crisis, or toilet paper?
 
Simpletruther said:
It's not your perception?

You don't think gas being double price would discourage JOE Blow from hoarding gas during a crisis, or toilet paper?
Click to expand...
I cited a real world event

You cited .. what exactly?
 
Simpletruther said:
It's not your perception?

You don't think gas being double price would discourage JOE Blow from hoarding gas during a crisis, or toilet paper?
Click to expand...

Gas is really not a great example because most consumers just fill their tanks and drive off. But using the examples of toilet paper, masks, food, and other supplies, I'd point out that different consumers are going to exhibit different behaviors depending on what their disposable income is. People with minimal amounts of disposable income can't hoard; those with maximum disposable income can hoard, and may find it advantageous to do so. Those who can afford to hoard will continue to do so, and may become even more extreme in their hoarding habits. That puts the squeeze on those with less disposable income - less supply for starters, and higher prices as a result. Gouging doesn't provide any real benefit to the consumer; it just harms consumers with less disposable income and makes everyone else needlessly pay more for shit.
 
tacomancer said:
That’s what I’m talking about
Click to expand...
Me too. They hoarded. Had we allowed price gouging, it would have cut down on the hoarding, leaving more available arsewipe and less corncob desperation wipe.
 
Simpletruther said:
Me too. They hoarded. Had we allowed price gouging, it would have cut down on the hoarding, leaving more available arsewipe and less corncob desperation wipe.
Click to expand...
You are speculating again without evidence.

What actually happened is stores put controls on how many rolls you can buy until the supply chain refilled.
 
tacomancer said:
You are speculating again without evidence.

What actually happened is stores put controls on how many rolls you can buy until the supply chain refilled.
Click to expand...
That is because they are not allowed to gouge.

Crazy hoarders go from store to store and get around limit buying.
 
Simpletruther said:
It's generally never an issue for neighbors. This is about a business model. Someone who stocks up on flashlights to sell during a power outage etc
Click to expand...
We're not a business model. Wtf is wrong with you?
 
Simpletruther said:
www.wsj.com

‘Price Gouging’ After a Disaster Is Good for the Public

If government prohibits suppliers from charging more, consumers hoard, exacerbating shortages.
www.wsj.com www.wsj.com

This is an emotional topic. I have myself been judgemental of price gougers.
I know this will never sink in to most, but maybe there are a few here willing to put all bias aside and thing with complete rationality here.

Someone charges 50 bucks for a cheap flashlight during a hurricane and people call him evil. Some of Those same hypocrites would gladly offer 50 bucks if they were stuck in that situation. Then turn around and call the person immoral that complied with his request and sold it. Pathetic.

If we allowed price gouging it would be a net benefit to society. It increases supply, and sometimes when it's life and death, when you really need supply.

Oh but it's easier to not think, but emotionally let people die and feel good about ourselves pointing at that nasty price gouger, how we ran him out of town (then oops a storm hit and people died from lack of product).
Click to expand...

Martin Shkreli approves this thread/article.

drugmeme.jpg
 
Simpletruther said:
And gouging would have worked too and had less people struggling to find arsewipe.
Click to expand...
Again you have cited no proof, just your economic-religious faith
 
Simpletruther said:
What part so you disagree with?
You agree people hoard less if the price is higher right?
Click to expand...
I literally just gave you a real example showing proof of my disagreement and how things played out in a shortage scenario…

Higher prices might cause people to horde less, the same, or more. It depends on the individual. When toilet paper went crazy, people kept hoarding and often hoarded harder. Look up the term “fear of missing out”
 
Simpletruther said:
amuedge.com

Why We Need Price Gouging: Benefits of Raising Prices During Crisis

Learn about the potential economic benefits of allowing stores to raise prices to meet demand. Could "price gouging" prevent shortages of essential goods?
amuedge.com amuedge.com

Here is a good explanation, skip to 3 numbered points it gives.

It is the concern you bring up that gouging actually helps, it helps insure much needed supply goes to those who need it most. And creates more available supply in the long run.
Click to expand...
It may "stymie panic buying", but it also may deprive some people in a declared emergency....not just a "run" or a "panic" from attaining the essential goods and services they may need in order to feed, shelter, or provide heat/water etc during an EMERGENCY. When that happens it then becomes a situation were emergency services, or others must now attempt to provide those essential EMERGENCY needs when emergency services could be focused on restoring power, infrastructure, or even security. I was very clear to differentiate between declared emergencies, and other periods of high demand due to worries about supply shortages.


I noticed gas prices have edged down a bit yesterday and today. I suspect that occured after people decided to cut out some of their discretionary driving in order to conserve on expenses. So, market forces are occurring during this energy crises, but it will be volatile for some time. Any tanker spills, or refinieries needing to go offline for any reason, and it will jump up again very quickly I presume.
 
Court Jester said:
It may "stymie panic buying", but it also may deprive some people in a declared emergency....not just a "run" or a "panic" from attaining the essential goods and services they may need in order to feed, shelter, or provide heat/water etc during an EMERGENCY. When that happens it then becomes a situation were emergency services, or others must now attempt to provide those essential EMERGENCY needs when emergency services could be focused on restoring power, infrastructure, or even security. I was very clear to differentiate between declared emergencies, and other periods of high demand due to worries about supply shortages.


I noticed gas prices have edged down a bit yesterday and today. I suspect that occured after people decided to cut out some of their discretionary driving in order to conserve on expenses. So, market forces are occurring during this energy crises, but it will be volatile for some time. Any tanker spills, or refinieries needing to go offline for any reason, and it will jump up again very quickly I presume.
Click to expand...
How would it deprive? it would add more supply in an emergency.
 
You must log in or register to reply here.
Back
Top Bottom