One could argue that there is no such thing as price gouging, it is just businesses responding to supply and demand forces, which they are quite entitled to do. One could also argue that ‘price gouging’ should be encouraged, not frowned upon – because it stops or at least reduces greed.
What did people do when they heard that Covid would soon reach them and cause diarrhoea? They rushed out and stocked up on loo paper, which resulted in such a shortage that others had to go hunting from supermarket to supermarket and from grocer to grocer to buy it. While out walking I passed a property as the occupant was reversing out of his garage and noticed the entire side wall – from floor almost to ceiling – was packed with rolls of loo paper. If retailers were permitted to significantly increase prices, that person would probably not have bought as much loo paper.
Similarly, when we heard about the likelihood of imminent fuel shortages we rushed out and filled up all our vehicles, not caring one iota about our fellow Australians. Farmers did the same. Soon fuel pumps ran dry. If prices were significantly higher, we would have reconsidered the need to fill up and stock up.
Similarly, when an area gets hit by a flood or fire, what do the locals do? They rush out to the supermarkets to stock up on supplies and to the petrol stations to fill up their gas guzzlers – without caring one iota about others.
So, many unjustifiably condemn what they refer to as ‘price gouging’. Those who they should condemn, probably themselves included, are those who stock up, not caring for the wants of others.
A Classic Liberals Australia government will revoke any anti-price gouging or similar laws.