Here's a which-is-better question for you. Suppose a New Jersey motel
room rented for $125 a night prior to Hurricane Sandy's devastation.
When the hurricane hits, a husband, wife and their two youngsters might
seek the comfort of renting two adjoining rooms. However, when they
arrive at the motel, they find that rooms now rent for $250. At that
price, they might decide to make do with one room. In my book, that
would be wonderful. That decision would make a room available for
another family who had to evacuate Sandy's wrath. New Jersey Gov. Chris
Christie and others condemn this as price gouging, but I ask you: Which
is preferable for a family seeking shelter -- a room available at $250
or a room unavailable at the pre-hurricane price of $125? It's not the
intention of the motel owner to make a room available for another
family. He just sees an opportunity to earn more money. It was not the
intention of the family of four who made do with just one room to make a
room available for another evacuating family. They are just trying to
save money. Even though it was no one's intention to make that room
available, the room was made available as if intended. That's the
unappreciated benefit of freely fluctuating prices. They get people to
do voluntarily what's in the social interest -- conserve on goods and
services that have become scarce.
Gov. Christie told merchants that price gouging during a state of emergency is illegal because "during emergencies, New Jerseyans should look out for each other -- not seek to take advantage of each other." Christie warned: "The state Division of Consumer Affairs will look closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties." It's not just Christie who has threatened to prosecute sellers for raising prices. New York Attorney General Eric Schneiderman has launched an investigation into post-storm price increases after receiving consumer complaints about higher prices for everything from gasoline to hotel rooms.
Read more: http://townhall.com/columnists/walterewilliams/2012/11/14/disaster_ignorance
Gov. Christie told merchants that price gouging during a state of emergency is illegal because "during emergencies, New Jerseyans should look out for each other -- not seek to take advantage of each other." Christie warned: "The state Division of Consumer Affairs will look closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties." It's not just Christie who has threatened to prosecute sellers for raising prices. New York Attorney General Eric Schneiderman has launched an investigation into post-storm price increases after receiving consumer complaints about higher prices for everything from gasoline to hotel rooms.
Read more: http://townhall.com/columnists/walterewilliams/2012/11/14/disaster_ignorance
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