Hoarding

During a crisis (or really any time) is it wrong to horde resources? During the beginning of the pandemic, for example, people would buy pallets of toilet paper or hand sanitizer and then turn around and sell it at an insane mark up. That is capitalism at it's core but is it a good social policy to allow it?

 

You think only in capitalism that people hoard goods in an emergency?

 

No, I didn’t say it happens IN Capitalism, I said, at its core, should ch actions ARE capitalism. (Buy low, Sell High)

 

Meh, I think it would happen in any system.

 

I don't think it is wrong to do it if you plan on needing it. Selling at very high prices to desperate people probably is wrong if it is an essential good.

 

People who buy up necessities such a toilet paper in an emergency hoping to make a profit are lowlifes who you need to avoid at all costs. Totally shun them and let them stew in their houses full of tp.

 

If it's something useful I don't see any problem with hoarding it and you're actually going to use it.... As long as you're not depriving others of necessary items.

About 5 years ago I gave away 200 number 11 percussion caps that are required to fire cap and ball revolvers.

Now you cannot find them anywhere and I kick myself in the ass even though I still have over 400 of them.

They were about $7 per hundred at the time but good luck finding any now.

I also hoard lead and I don't think that's going to hurt anyone. I also hoard the copper pennies that were 95% copper prior to 1982.

 

Who gets to define "necessary"?

For example people were hoarding toilet paper early in the pandemic. No one "NEEDS" toilet paper.

 

You'd have shitty britches without it.

 

Again, yes...it can happen in any system. That isn't the question.
Buying up all the resources to turn around and sell them at a heavy markup is capitalism at it's core. Is it something that is good for society?

 

That depends on where you sit at the time of the "crisis."

I live in Florida and when a hurricane hits it's not uncommon for people up north to get the idea to buy up generators, and drive them down to the affected area to sell at a mark up. Florida has laws against this, but you have to ask, is it better to have no generators or have the option to buy very pricy generators because you didn't buy one before the hurricane?

 

Would you feel the same it if were food or clean water or needed medicine?

 

How would that be different? Would I rather have no food or clean water or medicine or pay a high price for them?

 

Would it be better for some private concern to buy it, sell it at a huge markup or for the government to buy it and sell it at cost? Or even provide it free of charge>

 

You may have noticed that the government has not done that.

So it's have the item you want at a big cost, or do without.

 

I expressed my thoughts on the issue in these two threads:
scalping goods during a panic
Price Gouging or Opportunity

 

Why would you not allow it?

 

I appreciate your post, and I have nothing that I disagree with.

Other than this. Don't use the term "hoard". Use the term "stock". And then who can even raise an eyebrow.

 

Who has actually done that, that you know of?

 

I can name dozens, if not hundreds, of people who have done it.

But why does it matter if I actually know of anyone that has done it? The question isn't has it been done, but is it good for society?

 

Allowing businesses to raise their prices in response to shortages would help disincentivize people from hoarding and taking far more than they need.
But several states have put in place laws against "price gouging", prohibiting businesses from raising their prices from the normal rates during an emergency or natural disaster. If you don't let the free market operate, price cannot be used to ration items, and you will end up with "scarcity".

If you don't let price do the rationing, it is very hard to implement rationing and prevent people from finding ways to circumvent the controls and limits.

The question is, why shouldn't businesses be allowed to mark up items to get as much money as they can get?
I certainly think there is an argument that small family owned businesses should be allowed to do that.

 

There is an Arab owned gas station here that was charging $25 for a case of water after hurricane. It's people like that that are the problem. ( Not Arab per se, just greedy bastards)

 

What problem is that? Why shouldn't they be able to charge $25 for a case of water.
Maybe someone will really need that water, and then they will pay the ridiculously high price.

Of course, if we just sell the water for cheap, it will not be there when the person who really needs it shows up.

It's their business. What obligation do you think they have to you or anyone else?
If they wanted to hoard all that water for themselves and decide not to sell it during an emergency, that would be their right. Wouldn't you agree?

 

What if the power company decided that your minimum rate was going to be $3,000 a month? Would that be okay?

What if a natural disaster was coming your way forcing you to evacuate and someone wanted to charge you $200 for a gallon of gas. Would you be okay with this?

 

The power company has a monopoly, so that is a different story.

When it comes to business, anyone could get into business, could have decided to buy the product in advance and then later sell it during the emergency.

Why didn't YOU, for example, buy up lots of toilet paper and then sell it for lots of money during the emergency?

Maybe allowing businesses and people to jack up the prices by huge amounts during an emergency will help incentivize some businesses to stock up on those items, so there will be enough of those items during an emergency.