Oddbean

If company A raise prices too much, company B will offer a lower price, and company A will be forced to lower or go out of business Free markets/competition set prices, there is no such thing as "obscene levels"

If something like water is scarce, it has to be used carefully and efficiently. A technology exists that optimizes efficient use of scarce resources. It's called a free market. On the other hand, an "authority" taking over the resource and metering it out ensures very different outcomes: black markets, elitism, cronyism, corruption, and use of violence to enforce the arrangement.

For a free market to work, you need freedom of movement and of communication, which is not always available during disaster times. In those times, markets will form distortions, cartels and monopolies due to lack of free information flow. The price is still set by demand and supply, but the market is no longer free.

unless it is a government protected monopoly, where competition is blocked by government, the only way a monopoly can dictate the price is by setting a price lower than anyone can compete with - which benefits us all

I’m pretty sure there are assholes who take advantage of natural disasters just because they are assholes. But, I’m not sure why she’s saying that because I don’t believe price gouging is enforced at the federal level … I think it’s a state by state issue / law.

I don’t support price gouging laws. I think if assholes are being assholes; that is their right. Who am I to say what price they can or cannot set. But, at the same time I think there is a good case for many consumer protection laws like knowingly selling you a lemon car.

Imagine the worst piece of shit person you can. Imagine this person stacked up on water bottles and medical supplies while they were on sale and spent his time waiting for a disaster to happen. Disaster strikes. Who's there? Why, it's the evil price gouger looking to secure a profit, selling his wares at a 500% markup. People will have to spend more money to secure scarce resources now. Is this evil? Well, consider FEMA for a second. Government agencies ensure supplies always come in late. They are not interested in profit, they are interested in ticking boxes. Real economics describes reality. Keynesians will have you believe it is possible to cast illusions. Such an approach always leads to tragedy. “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages” -A. Smith

which seems ironic since price gouging can only actually exist where free-market competition has been prohibited - like when the government grants utility companies exclusive access to serve your home.

In other words, does anyone other than you have the right to dictate the price of your property? nostr:nevent1qqs8um4649jwd6xnulctzucptdvt8cwx7ad2wnngwy83a75swdakfacpzpmhxue69uhkummnw3ezumt0d5hsyg8zenmu7gzq8ulj5jj4kv50ph3muwz43f747vmr9ld2alrjdswgavpsgqqqqqqsxscwuj

Guy Swann was saying there is some sort of preferred contractor/supplier deal between FEMA and name-your-corporation. Hence why they turned away offers of help from various sources. It would be a first if the preferential suppliers' idea of a "fair" price is fair.