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Economics 101 - When demand exceeds supply, you get a shortage. Bans on price gouging actually guarantees shortages during a disaster.
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kevinbabyyeah, nowsourcing, icelind and 3 others like this
Economics 101 - When demand exceeds supply, you get a shortage. Bans on price gouging actually guarantees shortages during a disaster.
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skilletboy 12 years ago
Only a soulless attorney would make this argument.
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alex.kenemer 12 years ago
It feels dirty for sure, but I liked the point that raised prices entices surrounding areas to flood the market with supplies needed most. Meaning the needed supplies get there, then natural competition lowers the gouged prices back down.
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Cody 12 years ago
Call me heartless, but I was totally thinking this during the Sandy mess. Anti-price gouging laws impede the free market system, and economic freedom is best for all over all.
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