Ive been listening to Munger for years on econtalk. i would’ve liked for him to address the psychological parts more. the anger and rage from being charged exorbitant amounts for food and water is real.

@TheIHSorg

3 жыл бұрын

Good point! We were trying to keep this video short, but that's definitely a great topic for class discussion! It's one of the reasons that even without price gouging laws, some businesses choose not to raise prices during a shortage, since they don't want to anger their customers.

@MrDanielfff777

2 жыл бұрын

It is that or shortages

@JuliusG73

11 ай бұрын

Are you for real? The market is not concerned nor should it be with your feelings.

@verothacamaro

7 ай бұрын

@@JuliusG73 You're right, but politicians are concerned with people's feelings and they create price-gouging laws.

Well stated yet another classic example of government imposing what it considers a moral decision not understanding basic economics.

Very nice and well needed.

While free market principles might work for many items, I disagree on the use of price gouging being "acceptable" for certain items like insulin, which people need to survive. Charging $325 a vial "because you can" when the product costs probably $10-15 (if that) to produce is reprehensible, especially when there are people dying for the simple reason that they have to choose between rent, food, or medication. Also, while there is plenty of expensive health insurance coverage in the US and many who are without it, why isn't the price coming down to the level where the "poor" can afford it? Limiting amounts of essential products purchased, like toilet paper, is working where I live. It helps that we have a grocery chain that has planned and prepared for times like the present. Go ahead and charge whatever for nonessential items, but price gouging will guarantee that the poor will never be able to afford something essential that they may need just as badly (or perhaps worse) than those willing to pay whatever price is set. And who is likely to hurt the most from that? Children. It's upsetting that in a country as wealthy as America that the poor are told to just "wait their turn" until the rich have had their fill, or until the supply is refilled (whenever that is), or until an alternative is developed for certain essential items. Thank God there are still people and organizations that care about one another to help the less fortunate through difficult times because not everyone who needs help is a freeloader.

@gsockpuppet2490

4 жыл бұрын

One issue I have with your take is that the problem with the insulin market IS the lack of free market principles. There are major limitation on who can sell and produce it. Importing from another country is extremely regualted.

@MichaelMungerProf

4 жыл бұрын

Medical care is hardly an example of "free market" activity. The government places myriad restrictions on entry, and on who can manufacture or sell drugs, even generic drugs. You'll notice that that groceries charge low prices, even though they want to charge high prices. Insulin is a problem because the government has allowed, and even encouraged, patents to be extended and to include delivery devices that make it impossible for a new firm just to make insulin for an existing delivery device. www.medicinenet.com/script/main/art.asp?articlekey=225725 So, I agree that "price-gouging" happens all the time, as long as government shills try to pay off their cronyist corporate buddies. But water, which we need even more than insulin? Water is available very cheaply in the grocery store, from many sources.

@TheClavichord

3 жыл бұрын

@@gsockpuppet2490 absolutely, government regulation started the problem in her insulin example.

Excellent overview 👍

Very well said. I remember in econ class the professors taught this. I thought everyone knew, it's simple econ 101

@mattlm64

2 жыл бұрын

Most people understand almost nothing about basic economics. When prices rise, they just think businesses are greedy.

@DavidBryantsTranscendent

2 жыл бұрын

Supply and demand is not the same as price gouging. It's a good thing you folks that understand that as being the same thing weren't alive during the great depression. You might have heard about it... But people were pretty upset once it continued past the point of need in the support of a world war. They amended the constitution to avoid it being used to pillage our resources and everything. It was kind of a big deal. 🧐

Quantity gouging is the new technique by the corporates. Most processed food comes in air filled bags with so little stuff! Big bags little stuff.

@davet1517

2 жыл бұрын

and smaller portions amounts

More people need to hear this. People truly in need will buy the higher-priced scarce goods, more will be produced because of the price and those with less utility from the good will buy as supply eases prices. Markets work if allowed to work.

Tell that to Rena-A-Center!!

Ambulance chasers is keyword..TV as university Avenue purdue

Posting this comment so I can prove to Chally that I watched this

Incentives matter

chally

Great video. And allowing price gouging clearly improves collective welfare. But there’s a different moral principle that many people care about: fairness. I wonder if there’s a way to take advantage of free market principles without ignoring fairness during emergencies?

@escargot8854

3 жыл бұрын

a common proposal is to provide emergency stipends to the poor for use in emergencies.

@scottharris9962

2 жыл бұрын

charities stock-pile goods when times are good, while the rest try to do it when times are bad

People cause it

I agree with most of this, but your bird flu example seems bad. I bet that if, somehow, egg prices had remained the same, demand would still have gone down. Nobody wants to eat eggs during the bird flu, At least until they check to see if that's a plausible vector.

@joelpollen

8 ай бұрын

I don't think that's true. It is not thought that avian flu can be transmitted through cooked eggs. (see www.fda.gov/food/eggs-guidance-documents-regulatory-information/questions-and-answers-regarding-safety-eggs-during-highly-pathogenic-avian-influenza-outbreaks).

People look at me as evil when I say price gouging is a good in emergencies lol

@davet1517

2 жыл бұрын

there are things that need to be high priced due to the rarity and limited amount available

Sociology people

This guy must have learned from Martin Schrelli, who increased the price of HIV medication by more than 1000%, even though there was no scarcity.

@cluckinghampalaceNH

2 жыл бұрын

His name is Martin Shkreli and do not compare him to this guy. You seem to be lacking in facts so I will help you. The medication was Daraprim. It is listed as an antimalarial medication but often used for toxoplasmosis. Toxoplasmosis is a disease that results from a parasitic infection. Most people fight it off without any issues. However, if you have a compromised immune system, such as a patient with HIV, you might not be able to fight it off. Daraprim has awful side effects. There are only approx. 2000 prescriptions written annually for Daraprim so it has been a very low (read no) priority for reformulation or to come up with a better alternative. In comes Martin, increases the cost, FOR INSURANCE COMPANIES, puts most of the profit into R&D to come up with better alternatives. There was a program in place that if the patient did not have insurance their out-of-pocket cost was no greater than $20. There wasn't one documented case of someone who needed this drug, going without it because of cost. You cannot same the same for other necessary drugs like insulin and epi-pens. Take a minute to watch this interview he did with an HIV+ advocate Josh Robbins. It's enlightening. kzread.info/dash/bejne/kYSeqqhxZ93dmbA.html&ab_channel=I%27mStillJoshbyJoshRobbins

From the sound of this, you're likely the type who still believes in trickle-down economics and the Easter Bunny.

@gsockpuppet2490

4 жыл бұрын

No one believes in trickle-down economics, it's not a real thing that anyone argues for.

Ah yes as demand lowers profits increase! Basic economics amirite. What is this the fucking heritage foundation?