With the aftermath of Hurricane Sandy looming over the people in the hardest hit areas of the United States many people are finding price gouging is taking place. With supply now less than demand in these areas store owners are raising their prices in order to maximize profits on the items they have available to sell to consumers. Even though this is illegal in New York and New Jersey there are still examples of people charging as much as $4 for a can of Coke.
Are these store owners really doing an in justice to the people in their areas, this article argues the opposite. If we did it the United States Government’s way there would be a run on the stores and the first people there would get to buy everything and then they would have to opportunity to horde or sell the extra goods at huge markups to individuals who still need them. The way the store owners are doing it lowers the demand for goods, so people only buy the items they need to stay alive, allowing the stores to keep providing items of necessity to the masses.
When the Government sticks it nose into economics, shortages are created, people can starve or die of thirst because demand is greater than supply. These regulations create riots and other unwholesome activities in order for people to survive. But when the stores are allowed to apply basic economic principles to their stores everyone wins. The stores make more money, the masses get the food and beverages they need, everyone may not be happy, but everyone is alive. Why is it wrong for store owners to profit from managing their prices so that they can stay open and continue to provide essential goods to the people?http://finance.yahoo.com/news/4-coke-price-gouging-hits-153919655.html