What’s Wrong With Profiting From Covid?
The debate over price gouging during crises
Price gouging is a practice whereby a seller increases the price of goods, often to a level that is considered unfair, as a response to an economic shock.
Price gouging is generally viewed as exploiting the victims of crises, and is typically subject to strict anti-gouging regulations. But there exists a minority of economists that reject this dominant narrative and instead espouse the efficiency of price gouging and its potential moral virtues.
The Colvin Brothers
In the US, two brothers rent a truck and travel around Tennessee and Kentucky (the New York Times reports). They buy up all of the antibacterial wipes and hand sanitiser they can find, clearing the shelves at every Walmart, Staples and Home Depot they come across.
While Noah Colvin continues to load a large truck with sanitary products, his brother Matt is preparing and listing their wares on Amazon at a considerable markup.
The first 300 bottles fly off of Amazon’s virtual shelves for between $8 and $70 apiece, generating thousands of dollars in revenue.
In response, Amazon pulls all of the brother’s remaining listings and condemns their actions with a firm official statement…
