Back at it again with Democrats trying to alter the laws of economics. The term “price gouging” is a trick used by the Left and the press to rally up supporters and views. They claim it is a predatory business practice…that’s not usually the case. It actually has to do with the people paying the cost of price control laws.
Like natural disasters, trends, and everything else, the media response to COVID-19 has people outraged over this so-called “price gouging.” Considering there’s a record-shattering 6.6 million jobless claims (so far) who knows what sort of anti price gouging policies the Liberals will come up with next during such an economic crisis.
Because Liberals have such a misunderstanding of how prices work, businesses are taking the cost. Take Menards for example. A hardware store in Michigan that got hit with two cease-and-desist letters. One for price-gouging which Menard denies, and a second for dropping their prices too low. It’s a crime to have sales now in your own store? In capitalist America?
During massive emergencies, like right now with COVID-19, it is important to let prices perform their function. First of all, prices reflect what’s in demand and what’s in supply between the consumers and producers. Low prices may be preferable, but high prices help keep masks, hand sanitizer, food, and other high demand products on shelves longer.
Another thing Liberals need to understand is that “gouged” prices rarely last, as they encourage more production and competition prices decrease. As economist Robert Murphy puts it in ‘The Politically Incorrect Guide to Capitalism’, “When the government interferes with prices, it cripples the ability of free people to make intelligent economic decisions, just as surely as if the politicians interfered with phone lines, e-mail, or other means of communication.”
For now, some regulations are being rolled back and the FDA is relaxing its grip on license requirements for doctors being allowed to work across state lines. Finally.
While some prices aren’t altered, stores can also limit the quantity per customer. This can work but doesn’t always. If something is in high demand, customers will just shop at multiple stores multiple times a day, cheating the system in a way. This is only a temporary solution to staving off higher prices but doesn’t always work.
In New York City alone, since the beginning of the COVID-19 pandemic, 550 price gouging violations have been made tallying up to $275,000 in fines.
If Liberals actually regained their faith in private enterprise, the economic and political ramifications would be much easier handled in the short and long terms of the COVID-19 crisis. Otherwise, allowing politicians and the media to control and undermine the price system is going to seriously damage the urgent need of the providers and people.
Even after the COVID-19 crisis, bureaucrats need to make permanent changes in how they play a role in private enterprise. These positive changes must be made for the sake of public health and the American economy.