Q&A: Price Gouging in Times of Emergency
Price Gouging in Times of Emergency
Question
Hello Rabbi,
Recently I heard that there are yacht owners offering to transport people from Israel to Cyprus and back at exorbitant prices. In your opinion, is there something immoral about conducting oneself that way?
Best regards,
Answer
In my opinion, yes. It is hard to offer a clear justification, since ostensibly this is just supply and demand. And still, there is a sense of exploitation here. Of course, in Jewish law as well this is the case (see Middah Tovah 367, Parashat Vayeshev).
Discussion on Answer
There is no contradiction. The question was about the yacht owner, and you are talking about government regulation.
I am explaining that even with the yacht there is a moral consideration to raise prices privately because of the low supply and high demand. If I raise prices, I make it possible for the person to whom it really matters to leave on the yacht.
That is really not your role. Charge the market price and give priority to whoever is in distress.
When prices are not raised as a result of high demand, that creates a situation where there is no supply at all, even for someone who really, really needs it. Someone who just wants to take a trip grabs the spot from someone who must leave for surgery. When there is price control on eggs and milk even during emergencies, there are simply no eggs and milk left in the supermarkets for someone who arrives a bit later.