Monday, August 29, 2011 11:10:24 PM
Three 1 gallon tea jugs my mother has had since the dawn of time filled with well water 2 days before irene. Cost us nothing.
Candles of various smells accumulated over the last 10 years. Also cost practically nothing.
Maybe it's growing up on farmland, or maybe it`s the fact that the closest store is 10 miles from here but the way people freak out before storms and get all weird about water, milk, bread and eggs is so alien to me, I actually had to go look up what price gouging meant before I even watched the video.
Monday, August 29, 2011 10:48:01 AM
True @AntEconomist: if there were 'more stock` it wouldn`t be `sold out` eh? Notice that @Squirlz? Limiting how many one can buy is really easy to `get around` and doesn`t really help create fair distribution. Unless you want the FBI involved... It`s a financial risk for a store owner to massively over-stock before a storm, then not sell it! What can one do with 50,000 wind-up flashlights after the storm passes? (or misses?)
Extra costs (and risk) must lead to increased profits or it makes no financial sense to do it.
I know! We`ll get the GOVERNMENT to do it for us! (rationing) Look how well FEMA works, and it`s FREEEEE!
Monday, August 29, 2011 10:22:52 AM
@LazyMe: It's the "order more stock" part that is hand-waiving. The whole point of a shortage is that there isn`t more stock (or the "more stock" is hard to find, or that it takes time to produce, etc.). That`s why allowing the price to rise is a good idea. The higher price gives entrepreneurs the incentive to use extraordinary means to find and get more stock to where it is needed quickly.
Monday, August 29, 2011 8:23:22 AM
It's entirely possible that ordering more stock in such situations and then selling all of it at a the normal price would yield more profit to the store than gouging the normal stock simply because there are more people that can afford it and profit margins for day-to-day items are usually pretty high.