Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?
Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?
cross-posted from: https://jorts.horse/users/fathermcgruder/statuses/113008342518705813
Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?
You're viewing a single thread.
Probably because that requires a ton of logistics in order to build up and store the reserve, not to mention whatever you're imagining is done with the reserve in order to discourage price gouging.
I'm not sure what you think is supposed to be so difficult about the logistics. When regular supplies of certain good fall off the government would just sell from its stockpiles to increase the market supply and prevent gouging.
What stops private companies from gouging anyway?
The market. Consumers won't have to pay more for toilet paper or whatever than for the price the government is selling it from the stockpile.
How are consumers getting it from the stockpile? Sounds like an even bigger logistics nightmare than companies switching suppliers.
There's a reason people don't buy barrels of oil in bulk when they need to refuel their commuter vehicles.
I still don't understand. Why wouldn't retailers buy from government stockpiles when their regular suppliers are short? The idea is to make up for the shortage so there's no basis for gouging.
Gouging is thus called because it's inherently gratuitous, and not truly due to market conditions.
How does gouging work when there's no shortage of a given product?