Price Gougers Make the Money They Need
With Hurricane Irma wiping out normal economic supplies that individuals require to get by, some political and intellectual figures are coming out against price gougers. They are even going so far as to declare price gouging illegal and advocate that price gougers be criminally prosecuted. But, to try to institute anti-market price controls is to defy the natural market, leading to unnatural disasters.
To give an example: suppose a family of four is driving north from Miami and runs out of water near Orlando. There are no open grocery stores around, but the father does locate a boarded Mini-Mart that is selling drinks. However, the price of a 24 pack of water is $100. This gets the father a little pissed off, and he curses under his breath. But, then again, his family is very thirsty; and he finds no alternative available; so, he reaches into his wallet. Unfortunately, just before he is able to make the transaction, a siren blasting cop car pulls up outside declaring that the owner of the Mini-Mart is under arrest and the store is to be shut down due to criminal activity.
So, as the example above shows, where price gouging is not criminalized, expensive water is available, but where price gouging
is criminalized,
no water is available.
At work, I heard about a practice that I found amusing. Apparently, The Red Cross was going around approaching people with charity. However, there was a catch. If you were seen as a charity case then
you the recipient were required to pay for the goods received. So much for defying the market!
In conclusion, I want to focus on the capitalist rights of the price gougers themselves. While everyone in the south was packing up and shipping their valuables north, price gougers were stocking up on basic necessities and heading into the eye of the storm. These capitalist heroes are treated like dirt by the politicians of the southern states. They stand to make a fortune if they can find the best locations to set up depots and jack up their prices. It takes a lot of time to try to profit from such an adventure; and, the economic investment can be significant as well. Instead of villainizing the price gougers, they should be respected and honored for the risks they take to try to maintain their luxurious lifestyles.
Paul Wharton
Objectivist Capitalist Medicine Promoter