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Defense of Price Gouging Paper

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Economics

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Gouging

In this paper, I will present a concise critical evaluation of Zwolinski’s argument in defense of price

gouging. Price gouging is the idea of sellers to spike the prices of goods and services to an unreasonable

levels, which is considered unfair. Price gouging takes place when there is an emergency and sellers of a

given good or service take advantage of the same to sharply raise prices beyond the required levels. In

most cases, sellers raise prices of goods in order to cover up for the increased costs. As Zwolisnki argues,

price gouging can be considered immoral or even illegal in most states, which have put in place

legislations and restrictions to render the practice illegal and an offense. Additionally, the practice might

be seen as immorally impermissible, which is not true from given ideas. In business economics, price

gouging is the reaction of two major price drivers, which are demand and supply among other factors

such as buyer consent and the buy it or leave it business concept.

According to Zwolisnki, price gouging is an ideal and genuine business concept and not an immoral

practice as so presumed by different quotas. This draws a concept that in price gouging, suppliers only

respond to the two market drivers of price, hence there is nothing immoral with the practice. According

to supply and demand concepts, if consumers are willing to pay for a commodity at a certain price, then

it means the price is not above the market because if it was, they can look for a substitute or do without

the particular commodity. Zwolisnki explores the philosophical issues with regard to the price gouging

and goes ahead to debunk the common arguments that condemn gouging on grounds of morality.

Under the argument, Zwolisnki states that any laws formed against pricing gouging are not justified in

any way and that price gouging is moral among other actors such as the way price gouging reflects on

the moral character of the gouger. Zwolisnki goes ahead to state that price gouging comes with several

factors that are not reflected on when the topic is being tackled in social quotas. The political and

economic institutions are relevant sectors and actual drivers of price gouging and yet they are not

strictly analyzed to determine their basic structures.

Zwolisnki debunks the concept that laws prohibiting price gouging are justified morally. From his own

argument, Zwolisnki states that laws against price gouging are designed to hinder the smooth flow of

business because there is no legal way to define the practice of price gouging. These laws are meant to

prohibit the exchange of gods particularly during emergencies. This also make sit heard for traders to

determine the actual required price or what law requires of them because they are unable to predict the

law’s response and definition of a given emergency. Zwolisnki further argues against the laws and

prohibitions against price gouging by describing them as inconsiderate of the traders’ welfare by forcing

them to absorb the increased costs just for the sake of benefiting the customers. Additionally, it is not

plausible to dictate market through restrictions and laws that have no clue of the events on the ground,

which drive major business concepts. This, according to Zwolisnki is protecting one class of individuals

while placing the same burden on another innocent class. Through this, the laws makes it hard for

normal business operations during emergency due to the fact that commodities might be overly

exhausted by consumers, or suppliers might deliberately decide to stop supplying the needed goods and

services.

Price gouging is not immoral because it is done under coercion. Price gouging is done with the consent

of the buyers who are willing to purchase the goods or services that are being gauged. On this idea,

Zwolisnki argues that price gouging is accepted by the buyers themselves, which make sit morally

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permissible. In addition to that, most buyers have fully knowledge of the exchange, which eliminates

any form of deceit. Also, any harm that is to befall the buyer of the gouged good is not attributed to the

seller or alleged gouger, but the disaster or emergency involved should be viewed as the perpetrator.

Also to be viewed on the same context, the main aim and desire of the supplier is not to make the buyer

suffer or worsen their state, rather to improve them. From this analysis, it clearly shows that gouging is

morally permissible due to the fact it is acceptable by the buyer through the aspect of consent.

However, there are several concepts given by Zwolisnki with regard to price gouging that are subject to

open disapproval such as legal prohibitions. As started by Zwolisnki, price gouging should not be

prohibited by law because the law cannot provide clarity on issues of exchange. It is true that the factors

of exchange are governed by demand and supply, which also dictate the prices in a particular market.

However, any business or activity of exchange of goods and services needs governance that should give

guidelines in order to protect all involved parties from exploitation. Additionally, law is always put in

place to ensure order and fairness, which is a fundamental concept of trade or any other form of

exchange. In some cases, traders take advantage of the prevailing situation such as an emergency to

exploit consumers, and so in actual sense, there should be a restriction to govern all forms of exchange.

From this view, Zwolisnki’s criticism of laws that prohibit price gouging are not in order and in good faith

of the aspect of fairness and justice in business exchange,

Zwolisnki also suggests that price gouging is not coercive, which is not correct. Price gouging is clearly

defined as an idea of raising prices above desirable market prices. From this definition, it is clear that

price gouging practices tend to operate beyond the required market variables of price, which are

demand and supply that also dictate market elasticity. If gouging operates beyond market price, then

definitely it is intimidating to consumers. Consumers purchase items for two major reasons, the first

reason is because they can afford the item, and the second reason is because they need the item. These

two aspects have to be met by the market in order to make it fair for the buyer. If for example, the

commodities are available in the market, but are not affordable or are selling above market price, then

buyers will be left with one option, which is to buy under given circumstances. This amounts to force or

coercion owing to the fact that the buyer’s options had been minimized by the prevailing circumstances.

From this concept, it is clear that price gouging is tantamount to coercion.

From Zwolisnki’s argument and criticism concerning legal prohibitions, there is some degree of facts

with regard to business exchange. In any exchange freedom is essential and the issue of pricing should

be left to market shifts of demand and supply and the buyer seller consent. When the market prices are

governed by the factors of demand and supply, all involved parties are equally subjected to the

prevailing consequences. In this sense, fairness prevails in the market, way from the legal prohibitions

that favors buyers leaving suppliers at the discretion of market forces. Additionally, laws cannot ensure

fairness in the market where drivers are not constant and tend to shift according to prevailing

circumstance such as in calamities or emergencies. Laws that govern given circumstances are not meant

to establish order and fairness, instead are subjective and tend to sideline the suppliers. Traders never

take advantage of buyers because of the business concept of take it or leave it, which seeks to ensure

that buyers are at liberty to buy or do without the commodity supplied.

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Gouging In this paper, I will present a concise critical evaluation of Zwolinski’s argument in defense of price gouging. Price gouging is the idea of sellers to spike the prices of goods and services to an unreasonable levels, which is considered unfair. Price gouging takes place when there is an emergency and sellers of a given good or service take advantage of the same to sharply raise prices beyond the required levels. In most cases, sellers raise prices of goods in order to cover up for the increased costs. As Zwolisnki argues, price gouging can be considered immoral or even illegal in most states, which have put in place legislations and restrictions to render the practice illegal and an offense. Additionally, the practice might be seen as immorally impermissible, which is not true from given ideas. In business economics, price gouging is the reaction of two major price drivers, w ...
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