In addition to the carnage and descruction that Hurricane Sandy brought to the Northeast, the people living in the affected areas have also experienced shortages of epic proportions. Lines have become the norm as people struggle to purchase necessary goods such as gas, batteries, and bottled water. Are the shortages of these scarce resources inevitable or can something as simple as price gouging alleviate the problems? Read the following articles and answer the questions below.
http://www.forbes.com/sites/artcarden/2012/11/04/want-to-end-sandy-shortages-let-gougers-gouge/
http://business.time.com/2012/11/02/post-sandy-price-gouging-economically-sound-ethically-dubious/
http://www.voanews.com/content/new-york-officials-work-to-curtail-price-gouging/1541504.html
http://knowledgeproblem.com/2009/05/13/price-gouging-is-it-wrong-should-it-be-against-the-law/
Discussion Questions:
- What is the strongest argument in favor of price gouging?
- What is the strongest argument against price gouging?
- Is price gouging a necessary aspect of capitalism that should be encouraged or does the practice do more harm than good? Explain.
