Had a coworker of mine try to tell me how price gauging was the best example of free market capitalism. Also, how it was morally better as well.
I was simply floored. He spent the next 2 hours trying to convince me of these points.
I finally got fed up and told him there was no way to convince me. It is immoral, corrupt, evil, and the worst of humanity, by trying to profit from people’s misery.
I have a “simple trick” to avoid being price gouged.
Profiting from someone’s misery is one way to look at it... the other way to look at it is incentivizing someone to put forth the effort and capital (and maybe personal) risk to provide a desperately needed product when they otherwise would not be inclined to do so.
If someone knows they have a box of masks in the back of a warehouse somewhere, and they are not allowed to raise the price, they might not go to the trouble and/or expense to retrieve them and transport them to where they are most needed... Fewer people have masks... More people die.
If they are allowed to gouge, they have incentive to go to the trouble of retrieving those masks and spend the money and risk their own safety to get those masks to where people most desperately need them. More people have masks... Fewer people die.
If you have 1000 face masks that normally sell for 50 cents a piece, and don’t raise the price, the first few people buy more than they need. Fewer people have masks... More people die.
You raise the price, people aren’t as likley to take more than they need. More people have masks... Fewer people die.
Did your friend explain it like that?
Your coworker is smarter than you are.
Economics don’t care about your feelings.
Got a lot done at work today, huh? Lol.
You have 2 hours at work to listen to a co-worker talk about price gauging? (Just curious)
Sorry, your co-worker is exactly correct.
If you start selling toilet paper at $10 a roll, pretty soon other people with toilet paper will show up on the same corner offering it for $9, soon, the $10 guy lowers his to $9, they will continue to do that until they get back to slightly increased prices.
Plus, at $5-8 a roll, people will buy 2-3 rolls and everybody can get some. Instead, as we’re seeing, the real selfish louts hoard all the cheaper toilet paper assuring that very few get it.
You should do some research into basic conservative economics. John Stossel has some good video’s on youtube
I agree with your coworker. I have something you want or need. How much will you pay or someone else pay. Simple capitalism. If you have the product feel free to sell below market price.