I read this about the recent price bubble of guns & ammo. I did not write it.
"GOUGER.
That is a ugly word. I notice it gets thrown around alot any time there is high demand for a good, or product.
GOUGER.
Stop and think about the implication.
What exactly is a Gouger? Is it someone that makes triple his cost on an investment? Double? Makes any profit at all? Who decides what is "too much" profit? Is it "unfair" just because you have a negative emotional reaction to it?
In fact, we have a system to determine fair market value for a product. It's called supply and demand.
As the supply of a good goes up, and the demand decreases, the price goes down.
As the supply decreases, and demand increases, the price goes up.
In life there are those that plan ahead, and those that don't. Usually the planners make sacrifices in order to be ready for conditions in the future.
For example, lets say you scrape and save to buy land at a relatively low price per acre. Even though it's a huge burden and you barely have the money, you do it anyway because you think it could pay off. You tie up your money instead of having it for other things. You risk loss. You take a gamble.
And lets say I buy xbox games and Cheetos, because that's more fun, and tasty, and its cheaper, and that's how I choose to spend my hard earned money.
Then in ten years, industry moves into the area. Suddenly everyone wants the land for all kinds of reasons. The demand goes way up, and your land triples in value. Your risk has payed off.
Now all the sudden I want land. I want the land you have. I wish I would have bought it sooner, but I chose not to. I bought fun xbox and tasty Cheetos. The good news for me is that it's not too late, I can still have it. But I have to pay a premium.
Would you be a Gouger to charge me the current market value for your land? Would it be "unfair" and "disgusting" to charge more than what was originally paid?
Or would it in fact be UNFAIR and DISGUSTING OF ME to EXPECT and DEMAND that you, after all your planning, hard work, and sacrifice, simply HAND IT OVER to me for little or absolutely NO GAIN?
It's really very simple, but those who would favor centralized government control have always hated the idea of a free market. There is also always a fresh supply of the usefully ignorant who go right along with the emotionally natural, intellectually easy "unfair, unfair!" argument.
It is easy to demonize a person who has planned ahead, but what does it really help?
The unprepared always end up benefiting from the planners, even if it's for a premium. Frankly I'm never happy to have to pay a "high price", but am grateful I have the opportunity to make that choice.
It's called the free market. If you don't like it, don't participate. That is your choice. But spare us the tearful pleas for civility and let the grownups do business."
"GOUGER.
That is a ugly word. I notice it gets thrown around alot any time there is high demand for a good, or product.
GOUGER.
Stop and think about the implication.
What exactly is a Gouger? Is it someone that makes triple his cost on an investment? Double? Makes any profit at all? Who decides what is "too much" profit? Is it "unfair" just because you have a negative emotional reaction to it?
In fact, we have a system to determine fair market value for a product. It's called supply and demand.
As the supply of a good goes up, and the demand decreases, the price goes down.
As the supply decreases, and demand increases, the price goes up.
In life there are those that plan ahead, and those that don't. Usually the planners make sacrifices in order to be ready for conditions in the future.
For example, lets say you scrape and save to buy land at a relatively low price per acre. Even though it's a huge burden and you barely have the money, you do it anyway because you think it could pay off. You tie up your money instead of having it for other things. You risk loss. You take a gamble.
And lets say I buy xbox games and Cheetos, because that's more fun, and tasty, and its cheaper, and that's how I choose to spend my hard earned money.
Then in ten years, industry moves into the area. Suddenly everyone wants the land for all kinds of reasons. The demand goes way up, and your land triples in value. Your risk has payed off.
Now all the sudden I want land. I want the land you have. I wish I would have bought it sooner, but I chose not to. I bought fun xbox and tasty Cheetos. The good news for me is that it's not too late, I can still have it. But I have to pay a premium.
Would you be a Gouger to charge me the current market value for your land? Would it be "unfair" and "disgusting" to charge more than what was originally paid?
Or would it in fact be UNFAIR and DISGUSTING OF ME to EXPECT and DEMAND that you, after all your planning, hard work, and sacrifice, simply HAND IT OVER to me for little or absolutely NO GAIN?
It's really very simple, but those who would favor centralized government control have always hated the idea of a free market. There is also always a fresh supply of the usefully ignorant who go right along with the emotionally natural, intellectually easy "unfair, unfair!" argument.
It is easy to demonize a person who has planned ahead, but what does it really help?
The unprepared always end up benefiting from the planners, even if it's for a premium. Frankly I'm never happy to have to pay a "high price", but am grateful I have the opportunity to make that choice.
It's called the free market. If you don't like it, don't participate. That is your choice. But spare us the tearful pleas for civility and let the grownups do business."
