Price gouging ...why are Governments allowed to do this but private companies aren't? - RC Groups
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Dec 03, 2012, 12:32 PM
Libertas in Infinitum
logan5's Avatar
Discussion

Price gouging ...why are Governments allowed to do this but private companies aren't?


Ever notice that parking meters in the city charges higher rates in the middle of work day when more people are looking for parking and parking spaces are at a premium?

Wouldn't one consider this to be "price gouging" in its simplest form? Studies have shown that in large cities in the middle of day, 1/3 of the down town traffic is made up of people looking for parking. City planners know this, and know that people will pay whatever the cost of parking is during this time, so, prices are higher
Dec 03, 2012, 02:25 PM
Registered User
Here in Austin, they are planning toll lanes for Loop 1. The toll with vary with traffic volume. I'm not sure how that will work. When I worked for the Corps of Engineers in St. Louis, I rode the bus because of parking difficulty.

Power companies, public and private, charge more for electricity during peak demand hours.
Dec 03, 2012, 02:37 PM
Bagpipes spoken here
Pipemajor's Avatar
Likewise the transit systems I use charge higher fares during peak periods.
Airlines also charge higher prices for peak travel periods.
Movie theaters charge higher prices for peak viewing times.
Vacation resorts charge higher prices during the summer vs. winter periods.

The OP baffles me.
Dec 03, 2012, 02:43 PM
Libertas in Infinitum
logan5's Avatar
Quote:
Originally Posted by Pipemajor
Likewise the transit systems I use charge higher fares during peak periods.
Airlines also charge higher prices for peak travel periods.
Movie theaters charge higher prices for peak viewing times.
Vacation resorts charge higher prices during the summer vs. winter periods.

The OP baffles me.
The point is to highlight that the Government also practices in "gouging", which is to modify the price of a product based on the demand and availability of resources.

There have been many pushes by people to have the Government step in and regulate prices ... and yet, the Government practices on a regular basis the principles of supply and demand that results in inflated prices.
Dec 03, 2012, 02:48 PM
Registered User
peterp1964's Avatar
A lot of local governments (i.e., not The Government) outsource parking meters to private companies.

A great American thinker of the early 21st Century said:

gouge me once, shame on [pauses] shame on you. Gouge me [pauses] You can't get gouged again.
Dec 03, 2012, 02:51 PM
Trons and Fumes
wrightme's Avatar
Supply and Demand.


Simple, really.
Dec 03, 2012, 02:55 PM
Registered User
In most instances "price gouging" isn't really a bad thing. Do you want to pay $5 a gallon for bottled water a few days before a hurricane and actually be able to buy water or do you want to pay 99 cents and not be able to find any because people have purchased much more than they need?

Most of the time when people complain about price gouging it is echoed by politicians because it lets them do something that GIVES THE APPEARANCE that they care.
Dec 03, 2012, 03:06 PM
We want... Information!
Bruce Abbott's Avatar
Quote:
Originally Posted by AustinG
Do you want to pay $5 a gallon for bottled water a few days before a hurricane and actually be able to buy water or do you want to pay 99 cents and not be able to find any because people have purchased much more than they need?
Price gouging - the other form of rationing!
Dec 03, 2012, 03:15 PM
Random Pic #23982
Indiana_Geoff's Avatar
Quote:
Originally Posted by AustinG
In most instances "price gouging" isn't really a bad thing. Do you want to pay $5 a gallon for bottled water a few days before a hurricane and actually be able to buy water or do you want to pay 99 cents and not be able to find any because people have purchased much more than they need?

Most of the time when people complain about price gouging it is echoed by politicians because it lets them do something that GIVES THE APPEARANCE that they care.
Woah. Don't let real life economics show up around here. It's not allowed.
Dec 03, 2012, 03:44 PM
ὅπερ ἔδει δεῖξαι
Gerald's Avatar
This thread distorts the meaning of the term price gouging. Price gouging is not simply the practice of charging a higher rate at specific times.

Quote:
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. This rapid increase in prices occurs after a demand or supply shock: examples include price increases after hurricanes or other natural disasters. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies.
Dec 03, 2012, 03:47 PM
Figure Nine Champ
madsci_guy's Avatar
Quote:
Originally Posted by Gerald
This thread distorts the meaning of the term price gouging. Price gouging is not simply the practice of charging a higher rate at specific times.
Quote:
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. This rapid increase in prices occurs after a demand or supply shock: examples include price increases after hurricanes or other natural disasters. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies.
Obviously the writer never studied market forces in Economics.

What is "fair", is when a buyer and seller agree on a price and the product is sold.
Dec 03, 2012, 03:52 PM
One of the Deplorables
Colt SAA's Avatar
Same reason government gets to do insider trading, gun running and all the other illegal things they do.
Dec 03, 2012, 06:32 PM
Registered User
Quote:
Originally Posted by Gerald
This thread distorts the meaning of the term price gouging. Price gouging is not simply the practice of charging a higher rate at specific times.
Please provide a good example of price gouging then. I guess you could say that if someone bought up all the water in NYC and then tried to charge $100 a bottle or something, but how would that work in practice? People would be bringing in water to fill the void. If the person on the ground in NYC is charging too much then others from around the area have an incentive to try to find ways to get water to the area. Just like they would have if there was no water at all. Suddenly a person or group of people dropping everything and renting a truck or trucks filled with water makes sense. The amount that they can make selling water will pay for the rental, the gas and their time.

This will happen naturally without any help from the government. You only become dependent on the government when they make it illegal to sell water above the regular price. When you do that then you need the government or charities to bring it in. The higher price doesn't stop you from giving money to people who need the water so they can buy it either which would be the answer to the what about people who can't afford it question.
Dec 03, 2012, 09:28 PM
Registered User
ambientech's Avatar
Quote:
Originally Posted by Jim Thomerson
Here in Austin, they are planning toll lanes for Loop 1. The toll with vary with traffic volume. I'm not sure how that will work. When I worked for the Corps of Engineers in St. Louis, I rode the bus because of parking difficulty.

Power companies, public and private, charge more for electricity during peak demand hours.
Not only that but this is a road that has already been paid for with tax money. They are going to shrink lanes and re stripe then toll. It is criminal what they are doing
Last edited by ambientech; Dec 03, 2012 at 09:37 PM.
Dec 04, 2012, 09:54 AM
Usual Suspect
RCWorks's Avatar
Obamacare will be a fine example of gouging... The feds will now want their cut of your healthcare buck.


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