On 29/11/2010 00:54, Vitaliy wrote:
> Carl Denk wrote:
>> The whole issue here is, unscrupulous people taking advantage.
> Let's assume for a second that that disaster victims are normal people wh=
o
> aren't stupid. When the "price gouger" gets on the scene, these normal
> people have choices: they can buy the goods at inflated prices, get them
> from another source, or do without.
>
> When "price gouging" is made illegal, effectively it means that one of th=
e
> choices is eliminated. Are the victims now better off?
>
> Let's look at how Florida defines price gouging:
>
> "Florida Statute 501.160 states that during a state of emergency, it is
> unlawful to sell, lease, offer to sell, or offer for lease essential
> commodities, dwelling units, or self-storage facilities for an amount tha=
t
> grossly exceeds the average price for that commodity during the 30 days
> before the declaration of the state of emergency, unless the seller can
> justifying the price by showing increases in its prices or market trends.
> Examples of necessary commodities are food, ice, gas, and lumber."
>
> In practice, what happens is a run on the stores after any emergency or
> crisis. Since the stores aren't able to control demand via prices, very
> quickly all you are left with, are empty shelves. You cannot buy anything=
,
> at any price.
>
> The dynamics of price controls were well understood back in the eighteent=
h
> century, when Adam Smith argued against the corn laws that, while
> well-intentioned, created famines.
>
> Vitaliy
>
There is also the option of an upper limit. Perhaps x2 isn't an=20
unreasonable upper limit given perhaps higher transport costs, overtime,=20
risks etc.

Zero control and excessive or the wrong control both seem to lead to=20
much evil.
--=20
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