NYC Politicians: One Cent = Price Gouging
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To review:
--Price gouging is a fiction. It has no viable definition in either economics or common sense.
--Therefore, any politician or activist who asserts otherwise is either a liar or a fool.
--Meanwhile, any attempt to interfere with otherwise open and competitive markets, in the name of "fighting price gouging," is both disingenuous and counterproductive, as it will, at best, be futile and may, at worst, disrupt (i.e., worsen) the very markets that the central planners fear and allege are already "disrupted" (e.g., by a recent hurricane).
--New York City has not had a recent hurricane, or any other event that would "disrupt" any markets.
You may now proceed:
--Since "price gouging" is a fiction, it follows that "evidence of price gouging" is also a fiction. More specifically, "raising prices arbitrarily" would not even be possible in a perfect monopoly facing a perfectly inelastic demand curve. The retail gasoline market in New York City has neither of those characteristics, not even close.
--"A liar or a fool." Forty-three times over. Par for the course when it comes to the New York City Council.
--Not allowing retail vendors to raise their prices, even in this absurd and symbolic manner, will only disrupt the market. The laws of economics are not up for a vote.
--Again, New York City has not had a hurricane recently, or any other event that would "disrupt" any markets. Indeed, oil prices are falling quite noticeably. So why this particular action at this particular time — other than the fact that an election is approaching?
Remind me again how politicians are "enlightened public servants" — and why judges should defer to their actions?
More thoughts at Market Power.
--Price gouging is a fiction. It has no viable definition in either economics or common sense.
--Therefore, any politician or activist who asserts otherwise is either a liar or a fool.
--Meanwhile, any attempt to interfere with otherwise open and competitive markets, in the name of "fighting price gouging," is both disingenuous and counterproductive, as it will, at best, be futile and may, at worst, disrupt (i.e., worsen) the very markets that the central planners fear and allege are already "disrupted" (e.g., by a recent hurricane).
--New York City has not had a recent hurricane, or any other event that would "disrupt" any markets.
You may now proceed:
The City Council voted yesterday, 43-6, to override Mayor Bloomberg's veto of a bill that would make it illegal for gas stations to raise prices more than once a day.So, to re-review:
Over the summer months, council officials said they saw evidence of price gouging, with some stations raising prices arbitrarily, sometimes more than once a day.
--Since "price gouging" is a fiction, it follows that "evidence of price gouging" is also a fiction. More specifically, "raising prices arbitrarily" would not even be possible in a perfect monopoly facing a perfectly inelastic demand curve. The retail gasoline market in New York City has neither of those characteristics, not even close.
--"A liar or a fool." Forty-three times over. Par for the course when it comes to the New York City Council.
--Not allowing retail vendors to raise their prices, even in this absurd and symbolic manner, will only disrupt the market. The laws of economics are not up for a vote.
--Again, New York City has not had a hurricane recently, or any other event that would "disrupt" any markets. Indeed, oil prices are falling quite noticeably. So why this particular action at this particular time — other than the fact that an election is approaching?
Remind me again how politicians are "enlightened public servants" — and why judges should defer to their actions?
More thoughts at Market Power.
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- NYC Politicians: One Cent = Price Gouging
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- Passover Price Gouging?
- Price Gouging: Touch the Toaster
Posted by Kip on
14 September 2006
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