Analysis: Price Gouging

Make sure your writing is abundant and thorough, I want to know that you, for a fact listened to or read the podcast episode. You will need to prove it with your work so make sure it is very long and detailed. Your assignment is to listen to this podcast episode titled, "Munger on Price Gouging" with Russ Roberts and Mike Munger on the topic of price gouging. The episode also discusses supply & demand and prices at work.URL: http://www.econtalk.org/archives/2007/01/munger_on_price_1.html

A written version of the podcast by Mr. Munger is also available if you prefer to read over listening to a podcast. URL: https://www.econlib.org/library/Columns/y2007/Mungergouging.html

"Mike Munger of Duke University recounts the harrowing (and fascinating) experience of being in the path of a hurricane and the economic forces that were set in motion as a result. One of the most important is the import of urgent supplies when thousands of people are without electricity. Should prices be allowed to rise freely or should the government restrict prices? Listen in as Munger and EconTalk host Russ Roberts discuss the human side of economics after a catastrophe."

If you are focused on the "morality" or "Greed" of the story, then you will have missed the key points of the assignment. Remember that morality is an individual belief structure, and it changes between culture and time. Morality is simply defined as beliefs about what kind of behavior is good or bad. On the other hand, greed is very simply defined as a selfish desire for more than is needed. We could debate the fact that we all have more than we need ... this is not a relevant topic for us to cover here and now.

Analysis: What is paradoxical here and what is much more interesting is how self-interested people can achieve the greater good without that being their intention? What happens as a process, while a market develops? Or what would have happened?