It was October of 2018 when I wrote this post on price gouging and it got me thinking back to it because...
My wife just returned from Target for a quick errand and to return a shirt for a different size that my buddy had gotten me for my birthday. She couldn't help but notice the lack of inventory. Empty shelves, no hand sanitizer, no toilet paper, no lysol spray or wipes. Essentially all the cleaning materials were gone. Which is a HUGE issue when people who ACTUALLY NEED THEM, now cannot get them.
When the price remains low in times of hysteria, like the times we are in right now, people have no problem stocking up. They buy way more than they need, diminishing the supply for everyone else.
So how does price gouging play as a beneficial actor in all of this?
Well simple supply and demand comes into play. When a lot of people want certain items, like toilet paper and cleaning items, the price must increase. This stops, or at least helps, curb how many people go out and buy these items, along with HOW MUCH they buy. When toilet paper goes from 12 bucks for 24 rolls to 30 bucks for the same amount, people buy less.
The negative (individual wise) of course is that you are paying a premium for something that usually is pretty cheap (maybe you should have been a better Autumn chipmunk). On the flip side (for the business owner and everyone else), there are no inventory concerns. Everyone can usually get what they need, albeit at an inflated price.
Heed this scenario for the future. If you want to stock up on things, do so when times are calm and easy. Not when there is a "pandemic" happening. Lastly, understand economic conditions are not ones to be persuaded by political speak. The free market is intended to work as it does, tying to fix things in it only makes things worse.
Thanks for reading and I hope you have all the essentials you need for the near future. Best of health, peace.
There should be a higher burden of proof before accusations of price gouging get thrown around, for sure. It probably should be criminal if the seller has done something underhanded like artificially lowering the perceived supply, removing all but a few off the shelves. But if there is high demand and a low supply, it's often not fair for the seller to be told how to price their goods.
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I hear ya. I’m not insinuating it’s already happening, although it could be. And if they had stock and suppressed their inventory for possible gains in profit, I could maybe see some sort of litigation taken. More than likely though, that wouldn’t happen from a reputable business, imo. Too risky for the backlash they would receive after it was found out. Is it really worth tarnishing your reputation for a quick buck? I doubt it.
I was merely stating that contrary to public opinion, price gouging is a good capitalist trigger to adhere to supply and demand.
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Having extra TP in hand is all well and good but I bet there are now a lot of people out there who have more weeks worth of TP on hand than days worth of the food that would be needed to necessitate its use.
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Ha! So true. Can't eat TP, and I'd rather not starve to death vs. not having the cleanest bung hole. Never forget the essentials!
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It's really crazy even here in Upstate NY, I went into town yesterday to get some rubbing alcohol to make my own hand sanitizer and was amazed at the empty shelves. Went to 3 different stores, as I walked in they announce, "no toilet paper". I am so glad we are #homesteaders and are pretty well prepared, we always back-up our supplies. Our freezer is still pretty full from the fall harvest, my can goods are in good shape but I blew it with the alcohol. But we have lots of soap and hot water, phew! hehe
Since I spent most of my adult life in the health care profession, hand washing is part of my life now, I don't even think about it I just do it. So glad I taught my kids to do the same.
Be well...and wash your hands. haha
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I just learned about that homemade sanitizer trick yesterday! Funny coincidence.
Working at a restaurant, I wash my hands more than most, I understand your habitualness. "They feel dirty, wash em'! 100x a day!
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I could not agree with you more. Being prepared for issues of this nature is something that should be considered long before any event. The other day on the news I saw two women throwing down over TP. What the hell is going to happen when there is a lack of food or other real necessities needed to survive @intothewild
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