Price Gouging is a hot topic after Hurrican Harvey. Surprise, surprise, government chooses wrong path
Ronald Reagan .. "Government is the problem"
Price gouging is illegal in the State of Texas. The Office of the Attorney General has the authority to prosecute any business that engages in price gouging after a disaster has been declared by the governor.
The attorney general of Texas has issued stern warnings about price gouging to businesses in times of disaster, but you should still be on your guard. 17.46(b) of the Texas Deceptive Trade Practices-Consumer Protection Act provides that it is a false, misleading or deceptive act or practice to take advantage of a disaster declared by the Governor under Chapter 418, Government Code, by:
- Selling or leasing fuel, food, medicine or another necessity at an exorbitant or excessive price; or
- Demanding an exorbitant or excessive price in connection with the sale or lease of fuel, food, medicine or another necessity.
https://www.texasattorneygeneral.gov/cpd/price-gouging
What a load of BS.
If you want to see what people really think and believe, take a look at their actions during a time of crisis.
Hurricane Harvey is a time of crisis on the Texas coast.
What is the reaction of the government in crisis? Step in and legislate AGAINST the free market providing free market solutions. Make sure that the only solution to crisis is via government. Keep the sheeple under tight control. Make sure they don't even imagine that the crisis doesn't need massive government intervention to resolve.
Why does the government do this?
Self perpetuation is a major reason. Government is a large bloated beast, that will continue to grow unchecked, if there is no push back from the citizenry to the over reach.
There is also a growing portion of the population that thinks it is a good thing to turn crisis management over to the government. For any crisis. For every crisis.
And if you turn crisis management over to the government, then you want to see them taking actions of some sort, any sort, any actions at all, to show that the government is going to SAVE THE DAY.
With current price gouging laws, and the unspecified values in the statutes for EXORBITANT AND EXCESSIVE, it is a guarantee that the free market is not going to try to provide exceptional and extraordinary assistance in time of crisis. The potential fine for a single instance of PRICE GOUGING is $20,000 per incident. Anyone with any sense is going to stay away from that size of a fine. We will be left to wait for FEMA to coordinate the recovery.
What is the alternative to FEMA and government "saving the day"?
If the price gouging laws did not exist, everyone with a delivery truck and some initiative within a three state radius of the Texas coast, would be loading up with bottled water and other essential supplies, and taking it to the Texas coast to sell to the folks in need. Within 24 hours, there would be so much bottled water and essential supplies for sale, that the price would have equalized out to what it was before the emergency.
Walmart, Costco, HEB, Kroger, and all my neighbors in Dallas would be loading up trucks to go help out. And make a bit of margin in the process, which isn't illegal in a capitalist system the last time I checked.
But price gouging laws will ensure that doesn't happen. Government will make sure that the free market does not have a chance to respond. It would show government as the well-intentioned but ultimately incompetent bumbling Barney Fife's that they are.
We are going to be hearing about shortages for the next week or so, while the slow, cumbersome, lethargic, bureaucratic government takes charge and rides to the rescue. Slowly. Eventually. Maybe.
Trust me that you won't see anyone in MSM raising any questions about the existing price gouging laws? And asking if these laws are on balance more helpful or harmful in time of crisis. MSM are the lead sheeple. They worship at the altar of big government and big government intervention in the free market.
Please upvote if you think that price gouging laws represents government overreach and meddling in the free enterprise system, that are on balance more harmful in time of crisis than helpful.
STEEM On!!
DaveB
Don't we all know that government contracts are legal excuse to extort the government or am I the only one that learned that at a young age
Interesting take on this subject. I never thought of it that way, but I guess most people don't, so the Government can get away with it.
Exactly. It sounds all "motherhood and apple pie" to be against price gouging. But those are just good marketing words for actions which are really anti-free market.
Few people are confident enough to trust a truly free market, which is why so-called free markets around the world are typically some sort of hyrbrid with large strains of socialism over laid.
@@ Nice post Keep It Up @@
Thanks for reading
this gov. sucks !!
Thanks for your post excellent
Our government is just out of control run by greed and corruption.
Yes, please if you haven't already watch this
video https://steemit.com/stockmarket/@jamila-ym/how-members-of-our-congress-and-seanate-become-rich-using-the-stock-market-obamacare-and-tax-dollars
Never heard of this price gouging law before, but it's funny how they turn something like that around. Making it sound like "a good law" in the public's eyes while it only does the opposite. But that is what most laws do anyways...
Yep. Down the rabbit hole. Government positions themselves as "helping", but the real outcome of their actions is to ensure that replacement supplies are slow in arriving. Always.
Jup. They rather serve the corporations and hold the current chain of command in tact, instead of serving the public's needs.
Reality of many countries. Good post. Who will be to blame.
very good post, thx for sharing!
This law sounds awful for me. I am not from US so correct me if I am wrong, in the case, there is a crisis (tornado, fire, earthquake), price gouging prohibits to offer something for free to the people who got into that accident?
Like providing free water, food and blankets right?
If that's true, maan this is the stupidest law ever, I would not care about 20k fine and help to those people as much as I could.
How about the situation, when there is an earth quake or some explosion in a city center and all subways are closed, is the taxi prohibited from helping people and giving them a free ride?
That's a nonsense.
No, you have misunderstood.
There is no law against offering anything for free.
The law says you can't increase price during a time of emergency, no matter how high the demand.
So the result is demand sky rockets, but supply does not show up to be purchased since it costs a lot more to bring in supply during crisis.
The result of the law is supply drops at exactly the moment that the market is sending a signal that there is increased demand and theprice should be allowed to go up, but government prohibts the market from working.
Predictable result every time = massive shortages. Caused by government not letting free market operate to bring supply and demand into balance.
At the very moment when capitalist system could produce the absolute best result, the government turns into Stalinist old Russia central planning style of government
If the government let the free market solve the problem quickly and efficiently, too many people would be forced to ask - why do we need so much government ? Why are we sending so much in taxes to the government ? Why don't we demand a smaller government, that focuses on just the issues it was intended to, such as common defense.