After Irma: Is Price Gouging Justified?

Alle Inzinna, feature editor

About a week before the Irma models displayed the monster storm shifting west, many people looked to evacuate to the northern parts of Florida or out of the state entirely. Traffic blocked virtually every inch of highway from Miami to Georgia as one of the biggest evacuations in U.S. history took place. Yet, many found it financially impossible to get out, as the prices of gas and plane tickets rose exponentially.

About 8,000 other reports of price gouging on necessities such as water, ice and food were sent to the Florida attorney general’s office from the weekend before the hurricane.

According to the Washington Post, the main highways remained stagnate like parking lots, with no cars moving and no way to refuel because of gas shortages. One of the only options left was to flee by plane. According to the New York Times, a flight from Miami to Phoenix skyrocketed from $547.50 to $3,258 per ticket. These through-the-roof prices made evacuation via air travel a luxury not many could afford.

Only a few options remained: stay in Miami and prepare to weather out catastrophic conditions, get on the road and sit in unmoving traffic for hours or spend an outrageous amount of money on a plane ticket for a flight that might never take off. Many had no choice but to stick it out in their homes.

Some economists argue that price gouging has its benefits. In an article published by the New York Times, one economist states that putting caps on prices discourages companies from stocking up on high demand supplies. But what good is having the products at hand when many people can’t afford it?

People who are more well off financially can buy the water jug of Poland Springs for almost $100 off of Amazon, or the $42 case of water bottles from Best Buy. It may prove painful on the bank, but it happens anyway.

But some people simply cannot pay for the very products depended on for safety during natural disasters, so they have to find a way to survive without it. Price gouging bars off necessities from people who need it just as much person who could pay $40 versus the usual $5-10 price for a pack of water bottles.

Some economists would argue that raising the prices allows thin resources to stretch to more people. Say the price of gas is tripled during a hurricane. The cost might discourage some car owners from buying more gas than they need, leaving plenty for the next customer and beyond.

But what happens to the family who simply cannot pay for the engorged gas prices? Who has to chose between buying gas or non-perishable food or water? Companies who supply these necessities know how to take advantage of people at their worst and make a profit, and leave the poor out of the equation entirely.  

The hurricane brought about a panic, it shook citizens up while price gouging drained them out. It singled out the wealthy people to drain their bank accounts on everyday necessities and lifesaving transportation, leaving some with no choice but to stay and weather out the storm.