Thirteen states — Alabama, Arkansas, Florida, Georgia, Indiana, Louisiana, Mississippi, New York, North Carolina, South Carolina, Tennessee, Virginia and West Virginia — have enacted laws to combat what is seen as price gouging in the wake of natural disasters. Price gouging is legally defined as charging 10 to 25 percent more for something than you charged for it during the month before an emergency. Sellers convicted of price gouging face prison terms and fines.
Price gouging in the wake of natural disasters is often seen as evil exploitation by sellers to rip off desperate customers. Let’s hold off on that conclusion until after you give thought to some very important questions. First let’s see what we can agree upon.
When a natural disaster occurs or is anticipated, supply conditions change. There is going to be less of what people want and need. Under such conditions, what actions are consistent with the public good? My answer is that people should voluntarily use less of everything and waste nothing. That would include economizing on water, gasoline, food and anything else necessary for survival. How about an example?
Take the case of a hurricane like Florence. Let’s assume that evacuation 200 miles or so inland would guarantee safety for North Carolinians. Say the Jones family’s car has three-quarters of a tank of gas, more than enough to drive to safety. The Smith family’s car has less than a quarter-tank of gas, which is not enough to drive away from danger. We can multiply this scenario by tens of thousands of families in the Joneses’ condition and thousands of families in the Smiths’ predicament.
American Contempt for …
Best Price: $5.97
Buy New $13.50
(as of 06:40 EDT – Details)
