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30 sats \ 4 replies \ @Signal312 OP 29 Jan \ on: Price gouging, then and now econ
Food for thought...why is it that some things are not called price gouging, but clearly are, if you apply the same logic?
For instance, hotel rooms, that "price gouge" on popular summer weekends. Why does nobody get upset over that?
Serious answer -- people have some moral intuitions about fairness that extend beyond traditional economic analysis. Thus, gouging someone in a time of disaster is looked on differently than gouging someone on their luxury trip.
I think when economists / libertarians / conservatives / anyone fail to acknowledge that, they undermine their own influence and credibility. (Fair or not.)
Instead, I usually communicate my price-gouging stance like this:
"Would I personally raise prices that much in a time of emergency? No, because I wouldn't feel good about it. However, I think if all the political energy is spent attacking price gougers, then that's a distraction. Because all anti price-gouging laws do is change who can get the housing... it doesn't change how much housing is available."
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Good point. The whole "disaster" aspect of things adds a new dimension.
I wonder if I would say that though, if I were trying to communicate my stance. Cause for me it's actually not true.
If there were some disaster, and lots of people were desperate for housing, but I had a spare room, I actually would consider renting it out, and at a higher price than normal. Because otherwise, it wouldn't be worth it to me.
But it's certainly understandable, at a gut level, that the immediate reaction is not, "Isn't it great that economic incentives have pushed people to provide more housing".
Instead, it's "That price-gouging scum, trying to make money off people's suffering!".
I don't know how to communicate it any better though.
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Yeah, a bit of nuance.... I only meant that I wouldn't price-gouge during a disaster assuming I was already advertising a room for rent.
But if I wasn't already looking for a tenant, I wouldn't offer it up during the disaster either... unless there was a significant reason to do so, financial or otherwise. (Instead, i'd probably keep that room available for friends or family in need)
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