Posted on Aug 31, 2017
99-for-a-case-of-bottled-water-texas-stores-accused-of-price-gouging-in-wake-of-harvey
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When disasters strike, it can bring out the best in people. Bring people together. Make petty differences go away for a time in the interests of humanity. Unfortunately, it can also bring out the worst in people. Looting, robbery, burglary, and of course the ever popular price gouging for essential items.
https://www.rallypoint.com/shared-links/nfl-star-j-j-watt-of-the-houston-texans-has-raised-5-million-in-three-days-for-harvey-victims
https://www.rallypoint.com/shared-links/nfl-star-j-j-watt-of-the-houston-texans-has-raised-5-million-in-three-days-for-harvey-victims
99-for-a-case-of-bottled-water-texas-stores-accused-of-price-gouging-in-wake-of-harvey
Posted from washingtonpost.com
Crime
Meteorology
Natural Disaster
Money
Edited >1 y ago
Posted >1 y ago
Responses: 3
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There was a friend of my brothers that had a lot of heavy equipment (escalators/dozers etc). After Katrina he went down there with his equipment and aided those who needed help. If they could pay they could pay but he didn't charge anymore than he normally charged for his services. He made an honest money and had more work than he could handle. People that couldn't pay him then sent him money in the mail later but he wasn't expecting it. Where he made his money was contracting with the governement. He told them what his rate was and get this...by their legal rate schedule they actually paid him more. He felt uncomfortable with that but they told him the govt had a rate schedule for various services under contract and they were obligated to pay him that rate.
I hate it when people take advantage of people...like $50 for a case of water etc...just not right and they will have to answer for that one day.
I hate it when people take advantage of people...like $50 for a case of water etc...just not right and they will have to answer for that one day.
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In all reality price gouging is very effective and actually very beneficial in a lot cases. The people needed plywood, someone who doesn't sale plywood actually brought it to them. Created a business on the spot to go out of their way to supply these needed resources. The resources go to those who value them the most. People continue to funnel resources were they are most valued and in turn competition grows and places downward pressure on the prices returning them to their previous state. Basically, the high prices are the very thing that provides the support and resources they require.
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PO3 Steven Sherrill
SSG Kirk Stafford Maybe to a point, but 20 bucks a gallon for gas is criminal. 99 bucks for a flat of water is criminal. I don't know about Texas law, but in Florida if it can be proven that a business has artificially inflated prices following a disaster, they can be prosecuted.
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SSG Kirk Stafford
Just so it is clear - I am not agreeing to the practice of price gouging, just simply calling attention to the forces at play.
I read an article about a similar event which took place in the southeast in the wake of a hurricane. I'll try to locate it, but I believe it was either in Florida or South Carolina. Anyway, a group of young men heard about a shortage of ice the went out rented a truck and drove to another state to deliver it. They sold the ice for $25.00 a bag. People complained but still continued to purchase the ice. The line was long and everyone complained. After a while, the police arrived and arrested the young men for price gouging. The truck went to the impound yard and all the ice melted. Now, who is better off? Using what is lawful and what is not as a reference for ethics is not always beneficial. These young men got up loaded a truck and delivered ice to where it was needed hours away, in search of profits! That's interesting. Let's be honest, profits motivate people to get off the couch more so than the desire to help someone out of the kindness of their heart. People can read about a tragedy and legitimately feel for the victims. However, this in all reality accomplishes nothing. Despite the motive of the seller, resources are being rushed to the needy.
This high prices and profits also project signals not seen on the charitable side. People are donating clothes and random things when the market is clearing signaling for water.
Also look at it in this context: the man owns water in an area where water is not guaranteed. Should he be forced to sell at a lower price, ultimately putting himself a risk of needing water? If water was available elsewhere at a lower price then nobody would purchase this water.
I read an article about a similar event which took place in the southeast in the wake of a hurricane. I'll try to locate it, but I believe it was either in Florida or South Carolina. Anyway, a group of young men heard about a shortage of ice the went out rented a truck and drove to another state to deliver it. They sold the ice for $25.00 a bag. People complained but still continued to purchase the ice. The line was long and everyone complained. After a while, the police arrived and arrested the young men for price gouging. The truck went to the impound yard and all the ice melted. Now, who is better off? Using what is lawful and what is not as a reference for ethics is not always beneficial. These young men got up loaded a truck and delivered ice to where it was needed hours away, in search of profits! That's interesting. Let's be honest, profits motivate people to get off the couch more so than the desire to help someone out of the kindness of their heart. People can read about a tragedy and legitimately feel for the victims. However, this in all reality accomplishes nothing. Despite the motive of the seller, resources are being rushed to the needy.
This high prices and profits also project signals not seen on the charitable side. People are donating clothes and random things when the market is clearing signaling for water.
Also look at it in this context: the man owns water in an area where water is not guaranteed. Should he be forced to sell at a lower price, ultimately putting himself a risk of needing water? If water was available elsewhere at a lower price then nobody would purchase this water.
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SSG Kirk Stafford
****Here is the point: be careful of what you wish for, putting laws into motion that limit the free market could potentially do more harm than good.****
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LTC (Join to see)
PO1 Robert Payne - We have open carry and the population is fairly well armed, problem is that the population has been evacuated leaving the homes and business unmanned. The miscreants are slithering in to take advantage of the situation.
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LTC (Join to see)
PO3 Steven Sherrill - Its like getting a toaster when you open a savings account... have a baby and get a .22 for your new born.
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