Will leftists ever understand that "price gouging" is simply price rationing of scarce goods?

Question

All it takes is for them to take a course in basic economics, where they will understand that price rations SCARCE, yes SCARCE goods to the people who value them most. Why do they think that when they limit the price of something the supply will stay the same?

Answer 1

Maybe because it's also illegal in a number of areas

Answer 2

Will everyone please realize that retailers' margins are SQUEEZED when prices rise?

Answer 3

Yes

Next week on Thursday.

When will rightists realize that more oil will only delay the inevitability that we need a new source of energy?

Answer 4

If leftists had a grasp on reality, they wouldn't be leftists, now would they?

They also believe that oil companies will pay the windfall profit taxes that Barack is proposing!  What a hoot.  They just become a conduit to collect more taxes from you and me, because ALL corporations just pass taxes on to the end customer.

Answer 5

A few minutes of economic reflection would convince any rational person that prices are simply a message communicating to both consumers and producers which products are most valued, and where those products should be distributed.

As you said, price "gouging" is nothing more than a natural price increase when some good becomes mush more scarce. When politicians start tinkering with prices, their use of FORCE will do nothing but create either surpluses or shortages.

A good example is the hotel 90 miles from a disaster site (flood, etc). The hotel has a limited number of rooms available (scarcity).

If the hotel prices were allowed to reflect the unexpected influx of disaster victims, the room prices would [double]. However, since "price-gouging" laws would punish the hotel for submitting to supply and demand, the prices are FORCED to remain artificially low. As a result of the “reasonable” prices the [Smith family] decides to rent one room for themselves and a separate room for their children. However, had the prices truly reflected the underlying scarcity of the hotel rooms, the Smiths probably would have only rented one room and shared.

So because of the price gouging laws put in effect by the "compassionate" politicians, none of the hotel guests were "gouged". However, try explaining the politicians’ benevolence to the Anderson family, who had the bad luck of arriving after the Smiths, and therefore had to sleep in their car.

This same principle applies to ALL products and services.

Answer 6

No. Price gouging is a reference to someone's oversimplifying greed to justify a price hike on a goods or service which is in abundant supply or in good standing.

Answer 7

Why don't rightists understand simple social structure for civilization and democracy. Ration the scarce products so that everyone in the society can have access to it instead of price gouging and creating a have's & haven't's, undemocratic.