Price gouging debates and Hurricane Charley impacts in Florida

Justice

"It is astounding to me, the level of greed that someone must have in their soul to be willing to take advantage of someone suffering in the wake of a hurricane," such practices are essentially unethical and morally wrong (Sandel 3). Taking advantage of anyone at their weakest point is something that should never be condoned by society, or the law that governs it. Thus, when asking the question should the government pass legislation to prevent the inflated price, the answer should definitely be yes. It is crucial for local governments to protect the welfare and health of their citizens, and thus need to place price controls in order to do so, especially in times of great emergency.

In his work, Justice: What's the Right Thing to Do?, Michael Sandel explores the topic of price gouging within the context of a major natural disaster. In 2004, parts of Florida were devastated by the violence that was Hurricane Charley. Not only did 22 people loose their lives in the storm, but it also cost $11 billion in damage (Sandel 3). However, this time of great suffering and danger also created a situation where many where taking advantage of those in dark time. Many instances saw $2 bags of ice being sold for over $10 at some gas stations. In Florida in the middle of August, many had to pay the $10 in locations where there was no power or air conditioning. Generators being sold for $2,000, when they were normally worth $250. Yet, Florida already had laws against the price gauging practices that were being seen in the wake of the hurricane. Thus, many vendors eventually had to pay fines afterwards because of their illegal practices during the roughest time.

Still, there are many within the economic community that tend to believe price gauging, like what was seen in Florida in 2004, is a normal product of capitalism. Essentially, the opposition for price control legislation is based on the laws of supply and demand. In capitalism, when the demand goes up, the price naturally follows. Restricting that natural flow can have severe economic impacts. Thus, the research states that "Price controls, including price gouging laws, almost certainly reduce overall economic welfare," (Giberson 49). Those who oppose price control legislation are demanding that the law does not restrict the free market system in this country. Basically, "Public anger is in no justification for interfering with a free market," (Sandel 5). Economics should be allowed to flow freely, as the opponents would say.