Price Gouging -- Stossel In The Classroom

[Squibfire]

Rationing, its very simple and does not exclude people with a lack of means

[mba2ceo]

Noble prize - kick back to modern UNCLE TOMS ?

[mba2ceo]

Laws are created by the Rich to maintain their exploitation.

[TheHockeyTank]

Thats outrageus that that person got arrested!! If a customer agrees to the price, theres no problem!!

[gshooting]

@ninjashade411 hardware stores don't make their products either.

[25Deception]

The man with the generators had every right to sell them at whatever price he wanted. To take that man's rights of doing so is to take away his freedom. One has to remember this country is capitalist. Gouging isn't illegal. monopolies are.

[KripDrip]

I should be able to charge whatever I want. If people dont like it, they dont have to buy it.

[MrConservative608]

If you actually take an economics course, like I did in college, you learn that consumers set prices, not sellers.

Though on the price of gasoline, this is a case of crony capitalism and class warfare. The government gets about $2.00 for each gallon of gas & politicians purposely hurt the market with laws like a drilling moratorium to prop up Green energy & technology businesses which if you study physics, you would realize Green energy cannot meet the power needs of industrialization.

[KripDrip]

what do u mean the consumer sets the price? HOW? If all the stores keep ripping me off, what im I supposed to do about it/

[MrConservative608]

@KripDrip Lets say a local Target has bought 50,000 lamp shades. Five months later if they have 49,992 lamp shades left in inventory, do you believe Target would reduce the price of those lamp shades?

[gotitans999]

@KripDrip lol, you aren't ripped off or you wouldn't buy it. You only make a transaction if you think you will be better off. Econ 101.

[wrightclickyt]

So it's ok for the hardware store to mark the price up by 100% EVERY DAY of the week, but along comes an entrepreneur who sees a need and fills it, but it's wrong for him to mark up his price. Nobody likes being ripped off, but that's NOT what the guy did. He didn't trick anyone or steal anything. And his potential customers would be glad to pay double to have the generators.

You don't like the price? Don't buy it. For The State to arrest the guy for gouging smacks of Communism.

[ForTehNguyen]

btw it would help if you knew the legal definition of duress which is someone using an act of violence to force someone to do something they normally would not do. where is this act of violence on the part of Mr Generator? people were willing to take the risk of going into a natural disaster zone, so youre saying that risk should not be rewarded? if so then you are going to ensure nobody brings goods to market during a crisis. how is this better for people when goods are deprived?

[ElDiabloWhoppo]

Simple demand and supply arguements is specious reasoning for this sort of debate. BTW I am anti-communist so forget calling me a commie you muppets.

You RATION an item, you dont sell it at the highest bid. Only rich people are allowed to have water and power?

In these sort of disasters, if you ration by price (as opposed to quanity), is it also acceptable for those with guns (instead of money) to put themselves to the front of the line?

The American ethos is might IS right afterall

[StosselClassroom]

@ElDiabloWhoppo You are confusing the matter. A person with $100 is different from a man with a $100 gun, but only if the latter person decides to use that gun to harm others. The food should be earned, going to the most deserving (whether with money or charity by those with money) when there is not enough to go around. When there is 100 units of food and the people require 150 units of food, survival of the fittest will always take place. Solve the lack of supply, don't further mess up demand.

[ElDiabloWhoppo]

@StosselClassroom. I was suggesting that distributing supplies in this circumstance only (not economy wide) based on price, buys into Plutocracy view of society (those with money are more deserving) and that it is a slippery slope that could easily lead into survival of the most powerful which goes against civilised society

If you couldnt afford $50 for a bottle of water (gross example I know), what would you be tempted to do?

Ration through need, not through wealth is what I am saying.

[MikeJGallagherJr]

Idealy the entire country would buy generators and give them to everybody in need, but this isnt a Leninist paradise or the Kingdom of God on earth. I think after you look into how much money he actually made off of

A. buying the Generator after the standard Hardware Stores Markup,

B. The Costs of transporting it (Uhaul truck, Gas,)

C. The value of his time in transporting it

D. The Markup that he should Rightfully apply,

It would be pretty close to a fair deal for the Consumer.

[aslynelf]

There was nothing wrong with that guy charging twice what he paid for the generators. He had to make back what he spent on the generators themselves, and the cost of transporting them to Mississippi. 

[aslynelf]

Prices go up because the demand is higher.

[Abrawolf]

maybe the higher cost of the generator paid for the gas that got them down there to begin with plus a little profit on the side. Cops are retarded

[MikeJGallagherJr]

@Abrawolf The police don't get to decide which laws to enforce and which to not, they were doing their job, It was the legislators who are too blame. Don't be so quick to blame the law enforcement.

[sakinehbs]

can hotel onwer price gouging too? if so , who benefit from it?not us!!right?

[hughtub]

@sakinehbs Same principle applies. High price encourages more competition to sprout up to seek profit, and therefore supply the increased demand that is represented by the higher price. If hotel rooms become high, individual homeowners will start providing rooms from their house for cheaper. This is how sites like airbnb(dot)com started. Hotel rooms are absurdly expensive today, so now you can stay in someone's empty bedroom for much cheaper in lots of cities.

[ForTehNguyen]

govt should never get in the way if a willful transaction between two people

[ElDiabloWhoppo]

@ForTehNguyen. A willful transaction?????

Just like if I put a gun to your head and said give me a $100 for sparing your life? (satisfies basic contract law)

Both parties want the transaction to go ahead, does that make it illegal?

LAWS you muppett, price gouging and blackmail/kidnapping (whatever) are ILLEGAL

[ForTehNguyen]

@ElDiabloWhoppo

who is forcing these people to buy a generator? Where is the duress or coercion? Duress or coercion is NOT willful. Its funny in the end NO ONE gets a generator they were willing to pay for. Is that better for everyone? BTW contracts signed under duress or coercion are voidable under contract law.

try to use analogies that have less stupid in them.

[ElDiabloWhoppo]

@ForTehNguyen. How is a transaction in a natural disaster not a potential contract under duress? (options, alternatives etc, etc)

And I said basic contract law, i.e Intention, offer, consideration & acceptence (ONLY), so pay attention next time

And guess what, what he did was against the law (he should not have gone to jail though) so clearly the lawmakers believe this sort of behaviour is wrong.