Price Gouging (how much, money, laws, employees)

[Statz2k10]

We see a lot of issues of price gouging going on in Texas because of the hurricane.

I think everybody's first thought is evil owners for raising prices on people who need it. However, while I'm not defending owners that do that.

Is it bad in all scenarios? I don't think it's right to take a case of water and increase it from $5.00 to $50.00. But raising it from $5.00 to $10.00 if it keeps people from buying 20 cases therefore allowing more people the ability to get water themselves?

[banjomike]

The honest costs of delivering things like bottled water and canned food is going to rise a lot, just from the difficulty of delivering the goods.

But those costs won't last forever, or even for very long. Delivery of goods is a first priority after a hurricane.

A semi trailer full of water bottles is still racking up the costs to its owner while its parked, waiting in line to enter Houston, the tractor is still costing money in fuel, and the driver, who must wait with his truck, is still on the job. In Houston, some drivers have been stuck there for 5 days or more now, some with full trucks, some with empty.

No one can get in or out, but the costs of operation haven't stopped. And every trapped driver is one more who can't get out and drive another truck somewhere else until the crisis passes.

Every delivery rig that is snagged by Houston and can't leave until the load is delivered is one that could be making its owners money somewhere else. The owners, drivers and other employees aren't to blame for a natural disaster, but they still have to keep their cash flow flowing.

I can see an honest price increase as a necessity, but the question begs How much is honest? A 50% increase? 100%? 200%?

This is one of those things where the free market is unable to make such a decision. I have no answers myself, but I'm sure an answer could be found as to what a legitimate increase is or not.

[neko_mimi]

I think they should be able to charge whatever they want.

If it's a choice between a $50 case of water, and no water at all, many will gladly pay the $50.

[skycaller23]

I'm in north central Texas. Went shopping Tuesday when the rain finally stopped. The supermarket had restrictions on water, milk and other items. It was done to both prevent hoarding and because the store got limited stock as more food went to the hurricane stricken areas.

Texas has some strict laws regarding price gouging and folks who come across it need to report it.

But as time goes on we will see gas increases at the pump due to real shortages, not gouging.

[Three Wolves In Snow]

Already got a long thread on this subject:

//www.city-data.com/forum/polit...ng-during.html