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Huh? This is capitalism. If masks are in short supply and hospitals needs them - we obviously buy them all up and sell to those in need for an exuberant marku

by s5300 6y ago

Huh? This is capitalism. If masks are in short supply and hospitals needs them - we obviously buy them all up and sell to those in need for an exuberant markup What do you think the US is, buddy

roenxi 6y ago
The sensible approach when masks are in short supply is to direct more money to the mask manufacturers. It is overwhelmingly likely that they will use the money to produce more masks. How are the mask manufacturers going to get more money if they can't charge an exorbitant markup? They need to buy new plant/ materials and hire new people. Is the plan that the mask manufacturers have to go deeply in to debt to create enough masks? That is the best I can think of without sharp price rises, and it is a terrible plan for encouraging people to produce more masks.
- Dylan16807 6y ago
  What's your threshold for "exorbitant"? If you add an extra dollar to the price, that's enough to get a lot of expansion of manufacturing. Beyond that, I would say that long-term purchasing contracts, or government funding to pay for new machinery, are both much better options to boost capacity than huge price hikes.
  - roenxi 6y ago
    > What's your threshold for "exorbitant"? I don't have one, or actually care about specific numbers. There is some magic price where I'll start learning how to make masks but I doubt we're going to see that reached in my lifetime. > If you add an extra dollar to the price, that's enough to get a lot of expansion of manufacturing. In 18-24 months, sure. We're 12 months in so far though. If they need the money now it is a different story. The higher the price, the more immediate and desperate actions become justified to increase supply. That is one of the core parts of market economics. Let the price rise to some silly amount and people will move heaven and earth to increase supply. To get extraordinary things done an extraordinary amount of money will be needed. That can come from extraordinary prices. Or it can not happen and shortages can persist longer than required.
- greggman3 6y ago
  This worked exactly how it was supposed to in Japan. Masks went up in price in April because supply was limited, by late May they were at clearance prices as supply out stripped demand.

by s5300 6y ago

Huh? This is capitalism. If masks are in short supply and hospitals needs them - we obviously buy them all up and sell to those in need for an exuberant markup What do you think the US is, buddy

roenxi 6y ago

The sensible approach when masks are in short supply is to direct more money to the mask manufacturers. It is overwhelmingly likely that they will use the money to produce more masks. How are the mask manufacturers going to get more money if they can't charge an exorbitant markup? They need to buy new plant/ materials and hire new people. Is the plan that the mask manufacturers have to go deeply in to debt to create enough masks? That is the best I can think of without sharp price rises, and it is a terrible plan for encouraging people to produce more masks.

Dylan16807 6y ago
What's your threshold for "exorbitant"? If you add an extra dollar to the price, that's enough to get a lot of expansion of manufacturing. Beyond that, I would say that long-term purchasing contracts, or government funding to pay for new machinery, are both much better options to boost capacity than huge price hikes.
- roenxi 6y ago
  > What's your threshold for "exorbitant"? I don't have one, or actually care about specific numbers. There is some magic price where I'll start learning how to make masks but I doubt we're going to see that reached in my lifetime. > If you add an extra dollar to the price, that's enough to get a lot of expansion of manufacturing. In 18-24 months, sure. We're 12 months in so far though. If they need the money now it is a different story. The higher the price, the more immediate and desperate actions become justified to increase supply. That is one of the core parts of market economics. Let the price rise to some silly amount and people will move heaven and earth to increase supply. To get extraordinary things done an extraordinary amount of money will be needed. That can come from extraordinary prices. Or it can not happen and shortages can persist longer than required.
greggman3 6y ago
This worked exactly how it was supposed to in Japan. Masks went up in price in April because supply was limited, by late May they were at clearance prices as supply out stripped demand.