Let us Praise the Hawaiian Price Gougers

This is another lesson in Economics 101. And one that the government should meddle in. I discussed this very topic last year in a video podcast. You may view it here. It’s in segment 2 which begins at about minute 19:25. Or you read my article regarding the same here.

from IBD:

‘Price Gouging’ In Hawaii Should Be Thanked, Not Cursed

Hawaii has taken a hit from Hurricane Lane, with an estimated 40 inches of rain and flooding in several areas. It’s an old story: Already, claims of price gouging for everything from propane to airline tickets have emerged. Should Hawaiians curse the gougers? No, they should thank them.

That might seem strange, but it’s true.

First off, let’s concede there are no doubt businesses that are technically breaking Hawaii’s anti-emergency gouging laws, which forbid stores from raising prices on food, water, ice, gasoline, cooking fuel, batteries and generators, chemicals or building materials during a declared disaster or emergency. read more

Economics of Bacon and Natural Disasters

by: the Common Constitutionalist

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You may have noticed that the price of bacon is off the charts. I know I have. It appears to have basically doubled in the last months. Why?

It’s simple – supply and demand. Over the last few year demand for everything bacon has skyrocketed. It seems bacon is in everything. There is Maple Bacon ice cream for dogs. There are bacon cream Oreos, bacon flavored gumballs, bacon mayonnaise, bacon toothpaste and Amazon sells Lester’s bacon soda. I love bacon, but ick!

In February, Business Insider explained the effect the demand for bacon has had on the industry.

The country’s supply of frozen pork belly — the meat used to make bacon — fell from 53.4 million pounds in December 2015 to 17.8 million pounds in December 2016. That’s the lowest level the nation’s pork reserve has been at since 1957, according to US Department of Agriculture data. “Today’s pig farmers are setting historic records by producing more pigs than ever,” Rich Deaton, the president of the Ohio Pork Council, said in a statement highlighting the data. “Yet our reserves are still depleting.”

What we’re witnessing are naturally occurring market forces at work – basic economics – supply and demand, and why the cost of bacon has increased so much. As demand outstrips supply, prices naturally increase. If it didn’t, soon there would be no supply left. The free market, left to its own devices, devoid of government meddling, will then re-balance itself, allowing supply to catch up with demand. Bacon will then return to more reasonable prices.

Put it this way. You go to store to purchase something. For this scenario, it doesn’t matter what it is. Luckily, you happen upon a store offering the product at 50% off. Why? read more

Video Podcast – Pastor for Reproductive Rights – Price Gouging Can be Good

by: the Common Constitutionalist

A Female Methodist Reverend claims she was “moved by Scripture” to become an abortion advocate. She says her interpretation of the Bible called her to join the pro-abortion movement.

No one likes price-gouging – especially during times of exceptional need, as in the case of Hurricane victims. I argue that these pirates who jack up prices of goods and services actually perform a needed service to the desperate evacuees. read more