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I an astute business person, realize that a hurricane is about to hit. So I go to all the hardware stores and buy all the plywood, window covers and potable wa

I an astute business person, realize that a hurricane is about to hit. So I go to all the hardware stores and buy all the plywood, window covers and potable water. The hardware/grocery stores won't be able to get any more supplies until after the hurricane comes through. I resell the plywood and water for 4-10 times what I paid for it. Even though I don't sell out, I still make a hefty profit. More importantly many businesses and people aren't able to buy at my price and their house gets trashed because they couldn't afford my jacked up prices (or couldn't find me or wait in my line which was less efficient than home depots...) Moreover some people can't drink water for a couple of days while they are waiting for stores to restock. Thats the scenario price gouging laws are trying to stop. Unfortunately it also prevents things like temporarily increasing production or you from buying the plywood/water from town 8 hours away and selling it where is needed.

toast0 6y ago
> I an astute business person, realize that a hurricane is about to hit. So I go to all the hardware stores and buy all the plywood, window covers and potable water. The hardware/grocery stores won't be able to get any more supplies until after the hurricane comes through. I resell the plywood and water for 4-10 times what I paid for it. There's a couple good responses to this particular scenario. a) The managers of the hardware stores are also astute business people with access to hurricane forecasts and may charge you more if you buy around the time of a hurricane as they know their supplies are limited. b) other hurricane profiteers are likely to buy supplies from outside the path of the hurricane and bring them to the damaged areas to sell, if there's money in it. (this one doesn't work so well for a global crisis, but it may encourage people to warehouse goods that might be critical in a crisis)
deleted 6y ago
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nickpp 6y ago
That only works for the first hurricane. The next one will have more "astute business persons". Then the next one even more, until the whole hurricane supply chain and it’s business people will be well prepared and ready for anything. Pretty much how your government was NOT ready and prepared for Covid-19.
- peterwoerner 6y ago
  I am not saying there aren't market based approaches for this to work, but one guy in Chattanooga did buy up ALL the hand sanitizer within a 4-6 hour drive of Chattanooga.

toast0 6y ago

> I an astute business person, realize that a hurricane is about to hit. So I go to all the hardware stores and buy all the plywood, window covers and potable water. The hardware/grocery stores won't be able to get any more supplies until after the hurricane comes through. I resell the plywood and water for 4-10 times what I paid for it. There's a couple good responses to this particular scenario. a) The managers of the hardware stores are also astute business people with access to hurricane forecasts and may charge you more if you buy around the time of a hurricane as they know their supplies are limited. b) other hurricane profiteers are likely to buy supplies from outside the path of the hurricane and bring them to the damaged areas to sell, if there's money in it. (this one doesn't work so well for a global crisis, but it may encourage people to warehouse goods that might be critical in a crisis)

deleted 6y ago

[deleted]

nickpp 6y ago

That only works for the first hurricane. The next one will have more "astute business persons". Then the next one even more, until the whole hurricane supply chain and it’s business people will be well prepared and ready for anything. Pretty much how your government was NOT ready and prepared for Covid-19.

peterwoerner 6y ago
I am not saying there aren't market based approaches for this to work, but one guy in Chattanooga did buy up ALL the hand sanitizer within a 4-6 hour drive of Chattanooga.