Re:Economists who defend disaster profiteers are wrong
by WalterBright on Tuesday April 14, 2020 @04:48AM
(#22863875)
Manufacturing can't ramp up overnight, but supply can increase overnight due to gouging because:
1. people won't buy what they don't really need, leaving more for others
2. people will become motivated to sell their surplus supply rather than hoarding it
Further helping things is demand will be reduced due to gouging because people:
1. will not be motivated to buy and hoard
2. will not buy for frivolous purposes
Trying to force companies to produce more at a fixed price is less effective than enticing them to via making more money. An economy cannot be run on altruistic impulses.
1. people won't buy what they don't really need, leaving more for others
2. people will become motivated to sell their surplus supply rather than hoarding it
Further helping things is demand will be reduced due to gouging because people:
1. will not be motivated to buy and hoard
2. will not buy for frivolous purposes
Trying to force companies to produce more at a fixed price is less effective than enticing them to via making more money. An economy cannot be run on altruistic impulses.