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No, the free market reaction is that all the airlines notice airline seats from the Caribbean are way more valuable right now, so they divert resources from non

No, the free market reaction is that all the airlines notice airline seats from the Caribbean are way more valuable right now, so they divert resources from nonemergency areas to put on extra flights out of the Caribbean, as many as the airports can take, so more people are helped. If there's a law against price gouging, the airlines won't bother doing any such thing, because they have no incentive.

josefresco 9y ago
LOL. So you're saying a for-profit company, who's sole purpose is to increase revenue/stock value is going to do the right thing, and divert flights, leave their gouging money on the table, just to serve those in need? Don't hold you breath.
- rwallace 9y ago
  Er, you've got it the wrong way around. Failure to divert flights would leave money on the table - there's no profit in potential customers who would have been willing to pay you for a service that you don't deliver. It's diverting flights that lets you actually charge the 'gouging' money and increase profits and stock value. This is the principle of how capitalism works. It's the reason why capitalism turned out to work better than communism. We shouldn't ignore our knowledge of basic economics in a disaster area, because that's where it's most badly needed of all.
  - phailhaus 9y ago
    Really? A disaster is where we need capitalism the most? All you've said is how much of a profit companies can make via price gouging, but you've made absolutely no mention about the people that need the help. Great, companies make a killing in profit, but fewer people than ever can afford the help that they need. How are you going to look someone in the face and tell them that they should be glad that they can no longer pay for a service that used to be affordable, right when they need it most?
    - rwallace 9y ago
      My claims have been all about the people that need the help. Stop, take a deep breath, go back and actually read my last few posts. How are you going to look someone in the face and tell them that they should be glad that the service they need is now not available for any price, right when they need it most?
      - phailhaus 9y ago
        Not really, you only suggested that companies will send more flights to disaster areas which somehow means more people will be helped even though they can't afford it anymore. Your suggestion that flights will somehow "run out" doesn't make sense. If demand is huge for flights during a disaster, airlines don't need to increase the profit margin exorbitantly to make more money. They already will.

josefresco 9y ago

LOL. So you're saying a for-profit company, who's sole purpose is to increase revenue/stock value is going to do the right thing, and divert flights, leave their gouging money on the table, just to serve those in need? Don't hold you breath.

rwallace 9y ago
Er, you've got it the wrong way around. Failure to divert flights would leave money on the table - there's no profit in potential customers who would have been willing to pay you for a service that you don't deliver. It's diverting flights that lets you actually charge the 'gouging' money and increase profits and stock value. This is the principle of how capitalism works. It's the reason why capitalism turned out to work better than communism. We shouldn't ignore our knowledge of basic economics in a disaster area, because that's where it's most badly needed of all.
- phailhaus 9y ago
  Really? A disaster is where we need capitalism the most? All you've said is how much of a profit companies can make via price gouging, but you've made absolutely no mention about the people that need the help. Great, companies make a killing in profit, but fewer people than ever can afford the help that they need. How are you going to look someone in the face and tell them that they should be glad that they can no longer pay for a service that used to be affordable, right when they need it most?
  - rwallace 9y ago
    My claims have been all about the people that need the help. Stop, take a deep breath, go back and actually read my last few posts. How are you going to look someone in the face and tell them that they should be glad that the service they need is now not available for any price, right when they need it most?
    - phailhaus 9y ago
      Not really, you only suggested that companies will send more flights to disaster areas which somehow means more people will be helped even though they can't afford it anymore. Your suggestion that flights will somehow "run out" doesn't make sense. If demand is huge for flights during a disaster, airlines don't need to increase the profit margin exorbitantly to make more money. They already will.