
 |
The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014
Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology
John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain
The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious
April 14, 2014
Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time
Eric Schulzke: First degree: How America really recovered from a murder epidemic
Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships
Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin
Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate
Justin Caba: Eating Watermelon Can Help Control High Blood Pressure
April 11, 2014
Rabbi Hillel Goldberg: Silence is much more than golden
Susan Swann: How to value a child for who he is, not just what he does
Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer
Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You
April 9, 2014
Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?
Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau
Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau
Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease
April 8, 2014
Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease
Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear
April 4, 2014
Amy Peterson: A life of love: How to build lasting relationships with your children
John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet
John Ericson: Why 50 million Americans will still have spring allergies after taking meds
Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves
April 2, 2014
Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?
Frank Clayton: Get happy: 20 scientifically proven happiness activities
Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene
|
| |
Jewish World Review
May 24, 2006
/ 26 Iyar, 5766
Mississippi has a place for heroes: Jail
By
John Stossel
| 
|
|
|
|
http://www.JewishWorldReview.com |
John Sheperson is a hero. When Hurricane Katrina struck, he turned on the news and learned that people in Mississippi had lost electric power. They desperately needed generators. He decided to help them, while helping himself.
He borrowed money, bought 19 generators, rented a U-Haul and drove it 600 miles to Mississippi, where he offered to sell the generators for twice what he paid for them. Eager buyers surrounded his truck. "People were excited," he said.
So did the generators go to hospitals? To nursing homes? Did they save lives? Did Mississippi officials give Sheperson a medal?
Nope. Instead, they locked him up and his generators, too.
"Nobody got any use out of them," said Sheperson.
After Katrina, Jim Hood, Mississippi's attorney general, launched a crusade against "price gouging." "For people to take advantage of those in need," he said, "violates every biblical standard of morals that I'm aware of."
The Bible does say, "Give to him that asketh," and if Sheperson had donated those 19 generators and had hauled them down to Mississippi as an act of charity, it would have been fine with Jim Hood. But the attorney general considers making a profit by selling to the desperate at so-called "gouging" prices immoral and illegal.
But making money isn't evil, it's good. Modern life is made possible by people working to make money. And making a profit by "taking advantage" of people in need by meeting their needs is even better.
Today we hear about "gouging" at the gas pump. But it's simple supply and demand. Those "greedy" oil companies don't search for oil and drill for it out of the kindness of their hearts. They do it to make money, just like John Sheperson. The hope of fat profits is what motivates them to take risks to find new sources of oil to meet our energy needs. If companies think the government will "cap" prices to keep profits "fair," they would have little incentive to take the risk.
"Gouging" prices are made possible by extraordinary need by times when people decide that it's so important to get a generator that they're willing to pay twice the normal price. This free trade makes both parties better off, or they wouldn't agree to it: Taking advantage of someone's extreme need means meeting someone's extreme need and getting fairly compensated for the unusual effort you had to make in order to do it.
George Mason University economist Russ Roberts points out that if sellers don't raise prices after a disaster, supplies vanish. Anxious buyers often buy more than they need, just in case. Those not at the front of the line may get nothing. "How do you solve that problem? And how do you find out who should get those scarce items?"
One way is rationing have the government decide who gets what. Another way is to make people wait in long lines and let patience and luck determine who gets the goods.
But the best way is to give the items to those who are willing to pay higher prices. It's best because it directs supplies to those who need them most and because it inspires more people to take the risks John Sheperson took, or invest in finding new sources of (or replacements for) oil. "High prices are good because what they do is they give people and companies the incentive to bring supply in ... and help people in the time of crisis. Without that price increase, who has the incentive to bear the risk of stocking up to take care of people?" said economist Roberts.
You may not believe me or Roberts when we say "gouging" is good, but will you believe three Nobel Prize-winning economists? Nobel Laureate (1992) Gary Becker says "gouging" is the "fairest and best" way to get supplies to those who need them the most. "That's a good thing," added Vernon Smith (2002). And Milton Friedman (1976)?
"The 'gougers' deserve a medal."
Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
JUST OUT FROM STOSSEL
Myths, Lies and Downright Stupidity: Get Out the Shovel --- Why Everything You Know Is Wrong
Stossel mines his 20/20 segments for often engaging challenges to conventional wisdom, presenting a series of "myths" and then deploying an investigative journalism shovel to unearth "truth." This results in snappy debunkings of alarmism, witch-hunts, satanic ritual abuse prosecutions and marketing hokum like the irradiated-foods panic, homeopathic medicine and the notion that bottled water beats tap. Stossel's libertarian convictions make him particularly fond of exposes of government waste and regulatory fiascoes. Sales help fund JWR.
|
JWR contributor John Stossel is co-anchor of ABC News' "20/20." To comment, please click here.
Archives
© 2006, by JFS Productions, Inc.
Distributed by Creators Syndicate, Inc.
|
|
Columnists
Toons
Lifestyles
|