Problem with law-breakers....
...may be knowing if you are breaking the law!
I have a piece coming out on price-gouging law in NC. Sent the URL around to a few people for comments....(will post it here when embargo ends)
A friend from high school writes:
Another argument to explore would be that of the convenience store owner that has plenty of ice but refuses to sell it until he determines the maximum price the government will allow him to sell it for. Ah to have a libertarian convenience store owner that would shut down in a crisis and request the attorney general to come over and determine and price his inventory for him. Would it be illegal to refuse to sell your inventory in a crisis?
One of my assignments took me to Guam where we had a few typhoons, one of which had 180 mph winds. The island was smacked very hard, we lost power island-wide for nine days (and up to 40 in some areas), and the main fuel storage tanks on the island caught fire consuming all available gas that was not already in gas station tanks. Many people had back up generators at home, myself included, but it was interesting to see al the dynamics of the situation in action.
posted by Mungowitz @ 9:09 AM
2 Comments:
As a convenience store owner, but also an everyday person who would find himself a victim of the same natural disaster, I believe I would close my business doors long enough to assess my own family's needs before I chose to provide the essential supplies, which I own, to other people.
The other issue relevant to the post is that the business owners finances are seldom taken into consideration in the event of a natural disaster in the discussions of price gouging. A business that may typically depend on the profits garnered from 30 tanks of fuel and 4 turns of it dry inventory during a month may be forced during a disaster to make do with only 3 tanks of fuel and one turn of dry inventory to pay all of its monthly bills. By selling all of its inventory at its original price, and not being able to restock and resell, the business guarantees its financial ruin.
Is it price gouging to plan for that lost revenue and raise your prices enough to make up for it?
Wisdom
Interesting.
Not surprisingly, "Wisdom" is wise.
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