Sunday, July 31, 2011

Who defines price gouging?

Here are some numbers for you to consider. I buy a bottle of water at a convenience store, it costs $.99, the actual costs are much less, but how much less. I can buy the same bottle of water and 23 more for around $3 to $4 in the grocery store, but consider they also pay less for the water bottle than I am charged for it, usually about 50% less. So the cost to the produce the same bottle of water is less than $.08. Consider that mark up. Now imagine that same bottle of water at a ball game, $4, the mark up is enormous.

So why do we not hear about how horrible it is that "big water" is making a profit on the backs of the poor? Why don't we hear that "big grocery" is price gouging? And why does the base ball team get a pass?

The problem is we pick and choose who we want to vilify, how bad is "big oil", or "big pharma" but not a peep about "big soft drinks"? Our economic system allows for supply and demand to determine price, but yet how often do we hear about how the oil companies are making too much money, and how the pharmaceutical companies are charging too much for the miracle medications that they discovered? Our country is full of whiners and ingrates who want everything for nothing.

Is there any hope of a return to sanity? I am not sure.

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