Chris Christie vows to stop “Price Gougers”

This is just another way of saying price controls.  The theory goes that if someone is hiking up prices that they are taking advantage of people.  In actual real life, not the strange world of politics, prices rise because of demand.  When prices increase, this sends a valuable signal to the rest of the market that more goods of that type are required.  So if water increases to three or four dollars a bottle in areas affected by a natural disaster, entrepreneurs will start driving in with cases of water to sell them to the people that are need of such an essential life sustaining good.  This means more water for the people that need it and potentially lives could be saved when prices are allowed to rise.  Instead, price controls prevent this process and lead to shortages.  The reason is pretty simple, in a natural disaster; people will all start buying water because it is relatively cheap (same price as a non-crisis).  If it becomes expensive, only the people that need the water will buy it.  For example, if I have two weeks of water stocked up, I might not go out and buy any water at all if it costs four dollars a bottle.  If the cost is cheap, under a dollar a bottle for example, I might stock up anyway, even though I am well prepared.  This means that the person who has not stocked up will not have any water to buy because I bought it all up even though I have reserves stored already.  Even more, this person might have bought water for ten dollars a bottle but if there is no water to buy, this need can not possibly be met. The market was not allowed to sort out who needs the water most and who does not.

 The market allocates resources to the areas of the economy and to the people that need it most severely. Even those who cannot afford water still depend on charities that can acquire water on the market, if the water is all gone, charities can not relieve this need either. Price controls can only interfere with the market process of allocating resources most effectively.  Unfortunately, politicians from both the right and the left will enact price controls to stop the “gougers” but inadvertently (I hope) harm the people that are most in need.  The fact the price controls result in very negative effects is understood by economists from both the right and the left and everywhere in between.  Even the writers from Slate magazine understand this but politicians will never pass up the opportunity to become “strong leaders” in a crisis and scapegoat innocent market actors that have done nothing wrong.

End the price controls, let people have the liberty to buy and sell water so that the neediest among us can have water they require!

651 thoughts on “Chris Christie vows to stop “Price Gougers”

  1. Undeniably consider that that you stated. Your favourite justification appeared to be at the internet the simplest thing to be aware of. I say to you, I definitely get irked whilst folks consider concerns that they plainly do not recognise about. You controlled to hit the nail upon the top as smartlyand also defined out the whole thing with no need side effect , folks can take a signal. Will likely be back to get more. Thank you

  2. Undeniably believe that which you stated. Your favorite justification appeared to be on the net the simplest thing to be aware of. I say to you, I definitely get irked while people consider worries that they plainly do not know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side effect , people can take a signal. Will likely be back to get more. Thanks

  3. What i don’t understood is if truth be told how you are no longer really much more neatly-liked than you may be right now. You’re very intelligent. You recognize thus significantly on the subject of this matter, made me personally believe it from a lot of various angles. Its like women and men don’t seem to be involved until it’s one thing to accomplish with Lady gaga! Your own stuffs outstanding. All the time handle it up!

  4. Please let me know if you’re looking for a author for your site. You have some really great posts and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an e-mail if interested. Cheers!

  5. Greetings! I’ve been following your weblog for some time now and finally got the bravery to go ahead and give you a shout out from Austin Tx! Just wanted to say keep up the great work!

  6. I was very pleased to find this web site. I want to to thank you for your time for this wonderful read!! I definitely enjoyed every little bit of it and I have you saved as a favorite to check out new stuff on your web site.

  7. Aw, this was a very nice post. In concept I would like to put in writing like this moreover – taking time and precise effort to make an excellent article… however what can I say… I procrastinate alot and in no way seem to get one thing done.

  8. Youre so cool! I dont suppose Ive read something like this before. So good to search out any person with some unique thoughts on this subject. realy thanks for beginning this up. this website is one thing that is wanted on the web, someone with a bit originality. helpful job for bringing one thing new to the internet!

  9. You actually make it seem really easy together with your presentation but I in finding this matter to be really something which I believe I would by no means understand. It kind of feels too complicated and extremely wide for me. I am having a look forward in your subsequent submit, I¦ll attempt to get the grasp of it!

  10. Wow, marvelous blog structure! How long have you ever been blogging for? you make running a blog look easy. The overall look of your website is magnificent, as well as the content!

  11. I do enjoy the manner in which you have framed this specific challenge and it does indeed offer us some fodder for thought. Nonetheless, from what precisely I have personally seen, I simply just hope when the actual responses pack on that individuals stay on point and don’t start upon a soap box involving the news du jour. All the same, thank you for this exceptional point and although I do not necessarily agree with it in totality, I regard your viewpoint.

  12. Admiring the time and energy you put into your blog and in depth information you offer. It’s nice to come across a blog every once in a while that isn’t the same unwanted rehashed material. Great read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  13. I just could not depart your web site before suggesting that I really loved the standard info a person supply in your visitors? Is going to be back steadily in order to check up on new posts.

  14. I am really loving the theme/design of your weblog. Do you ever run into any internet browser compatibility problems? A number of my blog audience have complained about my website not operating correctly in Explorer but looks great in Opera. Do you have any solutions to help fix this issue?

  15. What Is Sugar Defender? Sugar Defender is a meticulously crafted natural health supplement aimed at helping individuals maintain balanced blood sugar levels. Developed by Jeffrey Mitchell, this liquid formula contains 24 scientifically backed ingredients meticulously chosen to target the root causes of blood sugar imbalances.

Leave a Reply

Your email address will not be published. Required fields are marked *