“To Durbin, producers covering their costs equals “price gouging”.
Well when it comes to goughing I got a little ancedote.
Was trying to park outside a stadium for daughters graduation.Nearby private land owners where selling parking spots...Going rate was usually $5.00...well this guy wanted $10...I remarked, wow inflation! or something to that effect. His response...”everybody else is raising prices, why can I?”
Gougher.
Really? Parking spots?
Next you’ll complain of price gouging on the increase in price of crack rocks.
Durbin isn’t speaking about the underground economy. He’s speaking of grocery stores and merchandise vendors.
That is how the market works, right?
If he gets enough customers who are willing to pay twice the going rate, he stays in business and prospers.
However, if people drive up, see the going rate is twice what is being asked, then do a u-turn and drive up the street to one of the lots charging half as much (even though the walk may be longer) then...his flag wavers he hired for the day might have to be paid out of his own pocket.
It’s that invisible hand, people voting for goods and services with dollar bills held high in their hands which sets the price of those goods and services.
Of course, all the lot owners can get together and start a cartel and fix their prices...
Then people will decide to attend the event with three couples in one car rather than get three separate cars with one couple in each. Or, someone will rent a bus for a day, and pick up people at their hotel or somewhere else where parking is far cheaper.
(Heh, that Thomas Sowell is starting to rub off on me! I am starting to sound just like him...:)