True story. I want to hear what the people hear think. (Well, I already know what rwingett thinks...)
As you know, though way overhyped (I love you, no1), Sandy knocked out power to most of my area. On Tuesday afternoon, an enterprising businessperson in the area stayed on the phone for hours until he tracked down a Target in South Carolina that had a bunch of generators in storage. He flew his assistant down Monday night on a private plane he chartered (no commercial airlines were flying) to rent a truck and pick up as many generators as possible.
The fellow was able to cram 80 generators on the truck. The businessman was also able to arrange to get a short term loan for the capital from a friend of about $60 grand for the 80 generators. The assistant drove the truck back up to New York, stopping every few hours on the side of the road to catch a few winks.
When the generators were delivered late Wednesday, he immediately spread the word through Facebook and email listserves and whatnot and began selling them at about a $400 markup (more than 50% of the value) out of his driveway. Nevertheless, I believe he sold out or came pretty close to doing so as people desperate to keep their families warm were eager (and thankful) to shell out the extra money.
By my ballpark estimation, assuming he sold out, the fellow probably turned a profit of about $20,000 in 3 or 4 days work. How much he gave to his assistant who did the legwork I have no idea. Maybe they split it evenly. I have no idea.
So, is he a:
1) capitalist hero and brilliant business person
2) shameless gouger taking advantage of the desperate
3) something in between
?
I have an opinion of course, but I'd like to hear what others think first.
Originally posted by sh76How are people going to get gas to power the generators?
True story. I want to hear what the people hear think. (Well, I already know what rwingett thinks...)
As you know, though way overhyped (I love you, no1), Sandy knocked out power to most of my area. On Tuesday afternoon, an enterprising businessperson in the area stayed on the phone for hours until he tracked down a Target in South Carolina that had a bunch ...[text shortened]... g in between
?
I have an opinion of course, but I'd like to hear what others think first.
Originally posted by EladarYeah, but, say you get a generator from this itinerant captain of industry, but you have no gas to put in it. You're waiting for days to get gas, maybe, and by that point your power might come back on. Anyway it's not a case of gouging. It's a case of clever salesmanship, and I have to wonder about some of the logistics.
Gas is becoming less and less of a problem everyday according to the news reports I've seen.
Originally posted by sh76…so as people desperate to keep their families warm were eager (and thankful) to shell out the extra money.
True story. I want to hear what the people hear think. (Well, I already know what rwingett thinks...)
As you know, though way overhyped (I love you, no1), Sandy knocked out power to most of my area. On Tuesday afternoon, an enterprising businessperson in the area stayed on the phone for hours until he tracked down a Target in South Carolina that had a bunch ...[text shortened]... g in between
?
I have an opinion of course, but I'd like to hear what others think first.
What should be added: “…who had the money to shell out.”
And this means essentially that your question cannot really be answered—at least not in any way that sheds light on larger issues of capitalism and the general welfare. You can’t just assume income constraints away—anymore that an egalitarian can assume inefficiencies away (or that anyone can assume efficiencies in a vacuum-like construct such as “perfect competition” ). It is like the first examples of supply-and-demand that ignore people who are excluded from this or that market because of income; if that’s all anyone learns of microeconomics then they haven’t learned much.
No meaningful conclusions can be drawn from the example as given. Really. Anything else is a façade.
EDIT:
The guy’s an arbitrageur (by definition—which is really, by definition, what an entrepreneur is). His ability to arbitrage geographic transaction costs to his profit and some people’s benefit says nothing about capitalism, socialism, mixed-economy systems or anything else in large. His contribution to the “general welfare” could be exactly the same in a society based largely on slave labor.
Really, no larger systemic conclusions (one way or the other) can be drawn.
Originally posted by vistesdThat's a lot of words with which to say nothing.
[b]…so as people desperate to keep their families warm were eager (and thankful) to shell out the extra money.
What should be added: “…who had the money to shell out.”
And this means essentially that your question cannot really be answered—at least not in any way that sheds light on larger issues of capitalism and the general welfare. You can’t ...[text shortened]... on slave labor.
Really, no larger systemic conclusions (one way or the other) can be drawn.[/b]
Originally posted by sh76He's probably a criminal if he's in New York: http://codes.lp.findlaw.com/nycode/GBS/26/396-r
True story. I want to hear what the people hear think. (Well, I already know what rwingett thinks...)
As you know, though way overhyped (I love you, no1), Sandy knocked out power to most of my area. On Tuesday afternoon, an enterprising businessperson in the area stayed on the phone for hours until he tracked down a Target in South Carolina that had a bunch ...[text shortened]... g in between
?
I have an opinion of course, but I'd like to hear what others think first.
New York's price gouging law doesn't specifically define what constitutes an "unconscionably excessive" price. While some disparity in prices before and after a market disruption is allowed, "gross" disparities are illegal "when it is clear that a business is taking unfair advantage of consumers... under severe circumstances that call for shared sacrifices," the attorney general's office said.
http://money.cnn.com/2012/11/05/pf/sandy-price-gouging/
Originally posted by sh76To point out the nothing that can be concluded from your example, either for "Capitalism?" or for the individual ethical behavior of your entrepreneur.
That's a lot of words with which to say nothing.
EDIT: And I believe I used fewer words than you did to set up your inane questions.
Originally posted by sh76The laws of supply and demand do not get suspended during natural disasters.
True story. I want to hear what the people hear think. (Well, I already know what rwingett thinks...)
As you know, though way overhyped (I love you, no1), Sandy knocked out power to most of my area. On Tuesday afternoon, an enterprising businessperson in the area stayed on the phone for hours until he tracked down a Target in South Carolina that had a bunch ...[text shortened]... g in between
?
I have an opinion of course, but I'd like to hear what others think first.