RANT: Price “gouging” in a disaster; what nonsense

Two Newark Gas Stations Accused of Price Gouging – Newark, NJ Patch



What nonsense.

There’s no such thing as “gouging”.

The marketplace always clears willing buyers and sellers.

By allowing “gouging”, the marketplace to sort who really needs gas from who REALLY REALLY needs it.

Plus, the “marketplace” has a memory. If someone “screws” me, when times normalize, then I will NEVER patronize that place again.

Gas in North Jersey should be much more expensive than gas in South Jersey. To satisfy the “extra” demand from New Yorkers, who need it more!

Maybe gas up there would float to 20$/gallon. Then the north jersey people will drive down to Central Jersey. And the price in central Jersey floats up to $10 a gallon.

And Central Jersey ites drive south for their gas.

Also the “greedy” oil companies say “I want to sell my gas for 20$/gallon”. First thing you know there’s more gas in North Jersey than they can sell.

I’m an injineer; not an economist. Them ekkynomists have all sorts of fancy names for it. I call it “common sense”. 

Of course, then we have no need for politicians and bureaucrats to “implement rationing”. Just the King’s “weights and measures” guy. We don’t even need him. The gas station that delivers a short gallon will be found out by the marketplace. Which will administer its own brand of “rough justice”.

(The buyer with his five gallon can sees that the pump says “five” but his can ain’t full. And maybe the buyer will administer some “rough justice”. Joined by everyone waiting behind him. Then, when the cops break up the fight, and non one saw anything, they can arrest the seller for fraud.)

Basically, if the gooferment prevents force or fraud, then it should allow the “invisible hand” of the marketplace to “set” the price. The marketplace will efficiently and relentlessly punish the “gougers”!


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