Posted on 05/24/2006 11:44:31 AM PDT by grundle
John Sheperson is a hero. When Hurricane Katrina struck, he turned on the news and learned that people in Mississippi had lost electric power. They desperately needed generators. He decided to help them, while helping himself.
He borrowed money, bought 19 generators, rented a U-Haul and drove it 600 miles to Mississippi, where he offered to sell the generators for twice what he paid for them. Eager buyers surrounded his truck. "People were excited," he said.
So did the generators go to hospitals? To nursing homes? Did they save lives? Did Mississippi officials give Sheperson a medal?
Nope. Instead, they locked him up — and his generators, too.
"Nobody got any use out of them," said Sheperson.
(Excerpt) Read more at jewishworldreview.com ...
Yep. I thought Haley Barber was a conservative. I'm beginning to think otherwise.
Of course, corrupt LA politicians taking bribes is all good and dandy. Just don't you, Mr. Private Citizen, make a buck for taking a risk.
LA is starting to look as bad as CA. Unreal.
Ooops, this was in MI, not LA. Sorry, my bad...
The hardware store was providing a service to the community by offering generators for sale. If they price them higher than what they are worth, they will be left with a bunch of unsold generators, which gives them an incentive to price them at what they are worth.
Evidently you were selling the generators for less than what they were worth. What you don't know is what the people who bought generators from you at your price did with them - how many of them turned right around and sold them for the same price that the hardware store was selling them for? Just because you apparently left money "on the table" by selling the generators for less than what they were worth gives you no moral authority to demand that the Government force others to do the same thing. So, what is your beef?
That's because no city official was involved in some of the money he got ... now if he offered a 10% kickback .....
Great analysis.
I would only add this: When the government steps in to limit the amount of profit a person can make in an otherwise free and open market, or it ties their hands in order to supposedly make things more "fair" for others, that person will eventually withdraw their goods and services from the market.
At some point, Atlas Shrugs...
NO! NO! NO! Nothing is more reprehensible than profiting from the misfortune of others.
The man was selling generators for more than people wanted to pay for them. The people needed generators and the man was making a windfall profit. Just like Big Oil!
Now that we agree that hurricane entrepreneurs and oil companies engage in gouging, let's go after movie tickets and refreshments. There's no way it would cost $8 to see a movie were it not for the obscene compensation of directors, producers and actors; the cost of a $4 popcorn can't be more than quarter. Congress should investigate price fixing in the movie industry and its relationship with exorbitant compensation rates in the industry. And, don't get me started on professional sports and Microsoft! Wah, wah, wah.
=sarcasm off-
As usual, Stossel hit the nail on the head.
"Evidently you were selling the generators for less than what they were worth. What you don't know is what the people who bought generators from you at your price did with them - how many of them turned right around and sold them for the same price that the hardware store was selling them for? Just because you apparently left money "on the table" by selling the generators for less than what they were worth gives you no moral authority to demand that the Government force others to do the same thing. So, what is your beef?"
My beef was that there were/are laws against price gauging and he was price gauging. I don't remember exactly what the max mark-up that was/is allowed but there is a legal limit. I had to show proof of my purchase price and costs and document with city hall what my selling price was. He was gauging even if he had 0% mark-up because he was gauged, they track the costs from standard market price and if you try to sell it over the max then you're busted (again, regardless of how much you paid).
I know exactly what each of them did with the generators I sold. I helped set them up for them and warned them about the dangers of using them, I even received thank you calls from most of them.
Is your beef with the laws against price gauging during times of emergencies/natural disasters?
This will really piss you off. You know what else I did? I ran around town clearing trees for people because I felt like it and I could, without charging them. I didn't leave anything on the table.
Pre-emptive slam on my spelling (gauging=gouging)
Why should your actions "piss me off"? You were entitled to give the generators away with one-hundred dollar bills stuffed into them if you wanted to...
I'd vote for John Stossel. :)
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