OPINION: The lessons we never learn
Meanwhile, clueless and whiny leftists accuse merchants of gouging because market forces cause prices to increase when supplies are low as if this is some new phenomenon. Notably, the same leftists whining about gouging are not emptying their bank accounts and donating all their property to disaster relief as they believe the merchants should be doing.
The rain was still falling as politicians, including President
The
This wasn't always the case.
In 1887,
Farmers were also starving and many had eaten their seed corn simply to survive.
Even in 1887, politicians were fond of taking money from the public fisc and passing it out to voters. The
Cleveland knew the drought in
"I can find no warrant for such an appropriation in the
Cleveland rightly saw that the job of disaster relief rested not with the federal government but with individuals, families, communities and private charities.
Today, though, presidents and other politicians use federal disaster aid as a campaign too. President
The disaster declarations are solely at the discretion of the president leading to abuse, cronyism and politics. Hence, such declarations increase in election years and in states deemed strategically important to the occupant of the
In addition to federal money, natural disasters also bring about accusations of gouging. What the economically illiterate call "gouging" is actually the market working the way it is supposed to do.
In
When there is limited supply of an item, and a natural disaster certainly limits supply, the prices have to go up. Such price increases protect against hoarding by the customers who get there first.
Additionally, the higher prices give merchants incentive to take the risks to get products to the disaster zone. Without the incentive of higher prices, why should store owners risk their lives offering wanted products in a disaster zone?
The higher prices also tell suppliers what products are in most demand. As more suppliers bring in the product in demand, the price drops.
The market works.
The lesson Harvey is teaching us is that disaster relief is killing us and the market works if permitted. What the next natural disaster will teach us is that we never learn.
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