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Price-gouging Laws Guarantee Shortages in Miami

Florida Attorney General Pam Bondi (shown) railed against so-called price gougers at a press conference in Tallahassee on Wednesday night: “It’s sickening. It’s disgusting. It’s unacceptable and we’re not going to have any of it.” She then provided the number for Floridians who think they’re being ripped off to call to complain: 1-866-9NO-SCAM. 

Florida Attorney General Pam Bondi 

Bondi doubled down the next day, telling would-be "gougers": “I will be saying your name all over national television and telling people not to go to your business ever again, if you’re stealing from Floridians and taking advantage of Floridians in a time of need. It is not just about the money, it’s about commodities that are helping to keep people alive, keep their children safe.” 

Two college professors who actually understand all of this used a popular example to prove the point, writing for Florida’s Sun-Sentinel: 

Laws against price-gouging are essentially the same thing as price-fixing, 

and 

result predictably in shortages and long lines of people waiting to buy whatever goods might remain on the shelves. 

It’s the example of generators: “Let’s say you sell generators in Georgia. After a hurricane hits further south, you notice that the price of generators in Florida is double what you can make at home. What might you do? It’s reasonable that some suppliers will load up cars and trucks with generators and take them to Florida, offering Floridians the chance to buy the much sought-after product. Those consumers who really value the generators offer to pay the higher price, while those who do not refrain from buying them.” 

What happens next? More sellers of generators come into the market: "Further, as more sellers come to the market with generators, they will have to compete with other suppliers, thus lowering the price of generators." In other words, without saying it in so many words, the cure for high prices for generators is high prices!

DYI:  So called anti price gouging laws only accomplish three unintended consequences.

1) Shortages and long lines develop as normal distribution channels are overwhelmed do to high demand events – hurricanes, tornadoes, earthquakes, tsunamis, etc.  Passing anti price gouging laws terminates – due  do fear of jail time fast acting entrepreneurs who purchase needed items at retail prices then sell at a mark up through make shift distribution channels thus alleviating the shortage.  If allowed to flourish every Tom, Dick, or Harry will flood the stricken area with all of the products in shortage ending the price gold rush as quickly as it started.  Johnny come lately entrepreneurs will arrive too late and have to resort to selling off their merchandise below retail to mitigate their loss.  If Johnny come lately sells below production cost will he or she be jailed due to price dumping laws? 

A.)      In the end anti price gouging/dumping laws are nothing more than government sanctioned anti competitive measures protecting existing business’ from another form of competition forcing consumers to purchase through existing supply chains.

2) Anti price gouging laws trains our citizens – along with many other socialistic laws – to be far less self reliant.  Nothing like high prices to drive home the need to be prepared BEFORE a natural disaster occurs especially those who live within hurricane, earthquake, tornado, tsunamis prone regions.

3) Conditions the public to accept anti free market rhetoric.  All sold to the public by high emotions all designed to nullify critical thinking by the populous.  Nothing more than cheap parlors trick to endure votes.  This is the worst as compared to points one and two as this type of thinking creates acceptance and seeps into every day life providing a backdrop for creeping socialism in America.

 Changing your batteries on your smoke detector during the time change has been advertised widely to the public.  This preparedness should also include especially for those in known natural disaster areas by having citizens purchase cases of bottle water, freeze dried foods, flash lights, batteries, etc. All purchased at normal prices.  If pushed strong enough many business’ would create natural disaster survival kits sold at a discount to increase foot traffic and endure the public to their stores.  Free market solution and an increase in self reliance.

 DYI