Price gouging after natural disasters ... where should capitalism end?

Simon

I'm sure you're all getting bored by my discussion of the recent 2013 flooding in southern Alberta and flood insurance but as you can imagine it's on everyone's mind here right now.

The latest issue in the news now is price gouging and overcharging after a natural disaster.

Some claim to have been overcharged by people profiteering after the floods.

Some of the cases seem like misunderstandings - if you go to a 7/11 that normally sells bottled water individually and you want to buy a whole flat of it, I don't think you should suddenly expect Costco prices for it.

But others do seem like they are taking advantage ... or are they?

One could argue that high prices will smooth out demand and prevent greedy people from stockpiling more than they need that they may otherwise buy and hoard.

Isn't it the ultimate manifestation of free-market economics, sullply and demand to set the price? Capitalism at work?

Should there be controls? Businesses have to survive too and if their stock is wiped out by the first couple of people through the door and they cannot get more then they are losing out even if it may appear they are making a killing.

slimboyfat

Price controls only work if there is rationing.

I am all for making a fast buck, it's the best kind.

Simon

I don't know enough about the law to know how they determine what price gouging is ... perhaps a certain percentage above the normal price? What other people are charging for the same thing?

Anyone know?

Also, I have to add that I haven't seen anything wrong happening where we are. We went to Costco yesterday and it was fairly busy as expected, lots of people buying bottled water (and they seemed geared up to have a steady supply being brought out) but everyone was patient and good humored.

There were some people collecting supplies for what looked like some disaster relief operation - everything needed to make thousands of sandwiches on palettes ... either that or they were just planning the biggest BBQ ever (but that's unlikely given the weather, even for cannucks!)

ÁrbolesdeArabia

Simon, price gouging is obvious to everyone and in a situation like this where supply is disrupted temporary there is no need for the shopkeepers to double the price of common goods. Those prices in the news article were obscene, there is no good reason for them to demand this type of price distortion. There was no "Supply Shocks" nor limited goods that deemed this hyperinflation, they are parasites taking advantage of a horrible situation and consumer affairs of Canada plus your politicians will bring the sledge hammer down on them!

I think you have us mistaken for people who do not care Simon, please keep us all informed of what is happening to our family in Canada. Price gougers got their ass handed to them after the Twin Towers came crumbling down. Assholes were selling bottled water for $5-$10 a gallon, gas shot up to $7.00 with greedy little shops taking advantage of that nightmare. I can't believe these parasites are charging $50 for a fruit plate, $50 for a 24pk of water we buy for $3.99 at Costco here. Please tell us how we can help Simon!

You need a man like Mayor Rudy Giuliani (I think you have plenty of great people who are trying to weed out these sewer-dwelling-profiteers, thanks to Twitter and Facebook!) who made it a criminal offense and told the shop owners he would personally shut their greedy stores down and hammer them! I hate this part of humanity, the need to profit off the demise and misfortune of others after loosing so much! For what it's worth, you are in our prayers and those afflicted by this nasty disaster! Some people suck and others shine like the Sun by displaying altruism and great acts of compassion and mercy.

They will get theirs according to the Emergency Act of Calvary, I hope they go to jail and loose their license! Is it mini-marts or big chains doing this to our Canadian Brothers and Sisters?

Please keep us informed and what we can do to help, which organization do you think uses the most donated money to bring relief?

TotallyADD

Price gouging was common in FL after a hurricane hits. FL finally had to have laws passed to fine those caught price gouging during those hard times. Totally ADD

Simon

$50 for a 24pk of water we buy for $3.99 at Costco here

Yeah, we always buy from Costco too ... I love them.

But, If I go to a convenience store that sells bottled water at $1.99 per bottle (some if more expensive) then if I want to buy a flat of 24 why would I expect to get them at Costco prices? That seems unreasonable to me. I am paying for the convenience like I always have which is intended for small puchases and has a completely difference price / business model.

Costco make little if anything on their water (they often sell at cost and make money on the membership) so it's not fair to expect some small retailer to suddenly work like a bulk warehouse chain - people can be idiots and get hysterical instead of thinking. They probably couldn't split the packs and put them in the fridge like they normally would and people wanted to buy flats unlike they normally would.

Things like the fruit platter may be different but I have no idea what the regular / typical price for those would be.

Glander

I think it is circumstantial. Some natural disasters are forecast. Ideally, people should be responsible for themselves. But for a merchant to raise prices on essentials after people have been caught in a sudden event? I think it is ugly and nasty. After the situation gets back to normal I think that people will remember the merchant who took advantage of their hardship.

Sayswho

It ends when there there is no other choice!!!!

I survived hurricane Charlie!

SW

Sayswho

Should u shop at Good Will after knowing what they pay some misfortuned ones versus what the few elite (minority) make? I know we will not give to them anymore after the "truth" about how little some of the most vulnerable make that work there! We will find another way to help individuals.

SW

Sayswho

So let me get this straight....if u need something to survive, I should be able to charge u a price that most cannot afford? Like water? pay my price or do with out= --DIE?

SW

Price gouging after natural disasters ... where should capitalism end?

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