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Restaurants & Food / Re: Price gouging at our local supermarkets?
« on: April 20, 2020, 08:48:06 AM »
So many whiners without ANY idea the supply chain issues and wholesale price increases grocers are facing.
Egg prices have risen 300% because of this crisis
https://www.reuters.com/article/us-health-coronavirus-usa-eggs/u-s-egg-prices-hit-record-levels-as-pandemic-buying-boosts-demand-idUSKBN21E00L
Everyone should listen to this podcast before they go off reporting grocers who are RISKING THEIR LIVES so we all can hoard toilet paper and ground beef
https://freakonomics.com/podcast/covid-19-food-supply/
Where does something become a normal demand-and-supply response, and where does it leak over into the area of gouging? That’s a really tough question. One thing I’d say is that increase in price is exactly what you want to happen, because that rising price provides the incentive for a food-processing plant to get back up and running quickly. It may provide the incentive to spark back up a plant that’s been idled because it wasn’t profitable before. If you’re just now getting over the illness, to get back to work. So that rising price is the economic incentive that encourages people to resupply that food when we get back online.
https://freakonomics.com/podcast/covid-19-food-supply/
DUBNER: It’s also, theoretically, the incentive for people to not buy more than they actually need just because it’s available, correct?
LUSK: Precisely. That rising price should also be your incentive to cut back and to not buy more. Actually, some retailers have used a little bit of social pressure and social incentive by saying, “You can have that one roll of toilet paper for, whatever, six bucks. But that second roll is going to be 200 bucks. We’re not saying you can’t have it, but please be kind to other people around you.”
Egg prices have risen 300% because of this crisis
https://www.reuters.com/article/us-health-coronavirus-usa-eggs/u-s-egg-prices-hit-record-levels-as-pandemic-buying-boosts-demand-idUSKBN21E00L
Everyone should listen to this podcast before they go off reporting grocers who are RISKING THEIR LIVES so we all can hoard toilet paper and ground beef
https://freakonomics.com/podcast/covid-19-food-supply/
Where does something become a normal demand-and-supply response, and where does it leak over into the area of gouging? That’s a really tough question. One thing I’d say is that increase in price is exactly what you want to happen, because that rising price provides the incentive for a food-processing plant to get back up and running quickly. It may provide the incentive to spark back up a plant that’s been idled because it wasn’t profitable before. If you’re just now getting over the illness, to get back to work. So that rising price is the economic incentive that encourages people to resupply that food when we get back online.
https://freakonomics.com/podcast/covid-19-food-supply/
DUBNER: It’s also, theoretically, the incentive for people to not buy more than they actually need just because it’s available, correct?
LUSK: Precisely. That rising price should also be your incentive to cut back and to not buy more. Actually, some retailers have used a little bit of social pressure and social incentive by saying, “You can have that one roll of toilet paper for, whatever, six bucks. But that second roll is going to be 200 bucks. We’re not saying you can’t have it, but please be kind to other people around you.”