> To a very good approximation, the marginal impact of any hoarders on the scarcity of a product is zero. Hoarders are not trying to drive scarcity themselves,

> To a very good approximation, the marginal impact of any hoarders on the scarcity of a product is zero. Hoarders are not trying to drive scarcity themselves, they are trying to buy a product now because they think the price will rise, but they're not trying to make the price rise by buying it. The distinction is important! Are you sure? https://www.nytimes.com/2020/03/14/technology/coronavirus-purell-wipes-amazon-sellers.html https://www.nytimes.com/2020/03/14/technology/coronavirus-pu... "Mr. Colvin said he had posted 300 bottles of hand sanitizer and immediately sold them all for between $8 and $70 each, multiples higher than what he had bought them for. To him, “it was crazy money.” To many others, it was profiteering from a pandemic." > This completely ignores the fact that the cost to produce a product is not a fixed amount, but rather that higher prices induce producers to make more product sooner. How will they make more product sooner? By expanding their businesses - making new factories, procuring new manufacturing machinery, hiring new workers? What happens when demand reduces, and they're back to not only having a normal amount of demand, but having that further reduced by the glut of supply - supply of a nonperishable good in particular? We have certainly fallen back on rationing during times of emergency in our society - even here in America. If it comes to that, I know many people will find it distasteful, but your point of: > The higher price means that those who demonstrate a higher desire for an item (by their willingness to pay) end up getting it. Is unfortunately the truth (though it's interesting that you chose to phrase "ability to pay" as "willingness to pay" - that discounts the fact that many people have a high desire for these items, but could be forced to choose between them and other items needed for basic survival), and left unchecked it will result in a pretty quick reversal of the "rising tide lifts all boats" argument for Capitalism if this situation continues long enough. It'll be pretty hard to argue that the free markets help all Americans when only people who can afford to do so can wipe their ass, or have access to basic health necessities.