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I guess all people in power must be dumb because every county has laws against grifting necessary essentials in a natural disaster. It’s possible your point do
by true_religion 3y ago
I guess all people in power must be dumb because every county has laws against grifting necessary essentials in a natural disaster.
It’s possible your point does apply to normal price shifts when supply for something like electronics becomes constrained but right now your example detracts from understanding that.
- lobocinza 3y ago> I guess all people in power must be dumb Some are smart psycopaths. The issue isn't dumb in power but dumb people voting. People get outraged by price gouging so populists create laws against it. Even though those laws don't make economic sense they make political sense. Most of the time IMO state agents will just ignore price gouging because they know it is a necessary evil but if the need arises they can always intervene in prices, say they are doing something and save face. But this destroys the economy if done often. It's not black and white.
- true_religion 3y agoI think it makes more economic sense for the government to directly subsidize necessities by shipping them in and controlling the price or giving them away for free. This is what FEMA does in the US. What does not make sense is a world where people have to buy disaster issuance just to make sure they can afford water when a hurricane strikes.