Could price gouging during a crisis actually be moral?
Price gouging is prohibited in 34 US states and Washington D.C. But two scholars ask whether that's the way it should be.
- Paper products, hand sanitizer, masks, and cleaning wipes—all are in high demand and short supply during the COVID-19 crisis.
- Price gougers are viewed as villains in this crisis—but two scholars argue that price gouging is, in most cases, morally permissible.
- Increased prices prevent unnecessary hoarding. Buyers purchase only what they need when they need it. Also, producers are incentivized to make more. When the supply rises, prices will fall.
At the Safeway grocery store in Southwest Washington, D.C., the toilet paper and paper towels section has been empty for most of the last two months. When the store does restock, supplies don't last long on the shelves. "Do you know if they have paper towels?" a pedestrian outside the store asked a stranger exiting the Safeway in late April. The answer was no: "Still out."
Paper products, hand sanitizer, masks, and cleaning wipes—all are in high demand and short supply during the COVID-19 crisis. Shoppers across the country are facing empty shelves and out-of-stock signs.
But any seller who reacts to current crisis conditions by increasing prices on in-demand products may be committing a crime. Thirty-four states have laws against price gouging. In March, a bipartisan group of state attorneys general wrote a letter urging online marketplaces to crack down on price spikes.
"[W]hile we appreciate reports of the efforts made by platforms and online retailers to crack down on price gouging as the American community faces an unprecedented public health crisis, we are calling on you to do more at a time that requires national unity," the letter said.
A price gouger makes a good temporary boogeyman. One could look at high prices during an emergency and think: They're trying to profit off of my desperation.
What exactly is price gouging, and what distinguishes it from a normal price increase? New York Attorney General Letitia James told NPR that "there's no definitive answer" but "you know it when you see it—[it's] when individuals are taking advantage of the market, particularly when a neighboring store is selling the same product for much less." New York's price gouging complaint form, which consumers can use to report retailers, defines it as "unconscionably excessive pricing of necessary consumer goods and services during any abnormal disruption of the market." However different states might define it, price gouging is widely understood to be exploitative, sleazy, and heartless. Laws against it are popular.
But Michael Munger, professor of political science at Duke University, says that high prices are a crucial part of dealing with scarcity during an emergency.
"If you use the police to keep prices artificially low, it makes the problem of scarcity much worse," Munger says in a short Institute for Humane Studies video on price gouging. Price gouging during an emergency allows more people to get what they need as soon as possible. "And that's true even for those who can't afford the gouger's prices," Munger explains.
How? Increased prices prevent unnecessary hoarding. Buyers purchase only what they need when they need it. Also, producers are incentivized to make more. When the supply rises, prices will fall.
"Price gouging laws keep the shelves empty longer," Munger says.
Matt Zwolinski, professor of philosophy at the University of San Diego, argues in his paper "The Ethics of Price Gouging" that "most, though not all, cases of price gouging are at least morally permissible, if not morally praise-worthy."
"Relative to the baseline of no exchange at all, the gouger's proposal stands to improve the lot of the buyer, not to worsen it," Zwolinski writes. If a buyer purchases a product at an exceptionally high price during an emergency, the buyer has decided that their emergency need justifies the high price. As Zwolinski puts it: "[W]hile the price of generators might rise dramatically in the wake of a disaster which knocks out power to a certain population, so too does the need people have for generators." A seller who raises prices did not create the buyer's increased need; he or she is merely reacting to it.
This doesn't mean, of course, that the price gouger is motivated by altruism. "[T]he fact that there are good arguments to be made for the moral permissibility of price gouging in certain cases does not mean that those who actually engage in the practice are motivated by these considerations," Zwolinski writes. But that's also true of normal market activity: As Adam Smith says in The Wealth of Nations, "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." A price gouger makes a good temporary boogeyman. One could look at high prices during an emergency and think: They're trying to profit off of my desperation.
But if we heed the work of scholars like Michael Munger and Matt Zwolinski, we might begin to see price gouging as a rational and necessary part of emergency response. During normal times, a pack of hand sanitizer might cost the same as a bottle of red wine. But right now, during the COVID-19 pandemic, does anyone place nearly the same value on a bottle of wine as on a pack of hand sanitizer? By using the law to forcefully keep prices below what people would pay in an emergency, states enable hoarding. For Americans who would like to buy hand sanitizer—or paper towels, toilet paper, cleaning wipes, or masks—and can't find any, price gouging laws are a cold comfort. Most would rather have the option of paying increased prices than no options at all.
Trained dogs can detect cancer and other diseases by smell. Could a device do the same?
Numerous studies have shown that trained dogs can detect many kinds of disease — including lung, breast, ovarian, bladder, and prostate cancers, and possibly Covid-19 — simply through smell. In some cases, involving prostate cancer for example, the dogs had a 99 percent success rate in detecting the disease by sniffing patients' urine samples.
Their goal is a digital model of the Earth that depicts climate change in all of its complexity.
- The European Union envisions an ambitious digital twin of the Earth to simulate climate change.
- The project is a unique collaboration between Earth science and computer experts.
- The digital twin will allow policymakers to audition expansive geoengineering projects meant to address climate change.
Who are the planet-builders?<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTY5MDMzMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzOTA0NzY2MH0.yG8KyIXYBtiAQB0_9KJLPFhvOj2ZvpBy04YPffMIEJM/img.jpg?width=980" id="4548e" class="rm-shortcode" data-rm-shortcode-id="61d5c1e9765e8d98ef2dab9cb2bf01a6" data-rm-shortcode-name="rebelmouse-image" data-width="1440" data-height="833" />
Watching time go by on the digital Earth<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTY5MDMzNi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzNTIyNzQ5MX0.NrXxzMuA8NcrcSIaCivN3zRlsc-KgVpYiecDlLKN4Mw/img.jpg?width=980" id="b1bcf" class="rm-shortcode" data-rm-shortcode-id="aff8d7380cd18b8ee15a8f772d83a7a8" data-rm-shortcode-name="rebelmouse-image" data-width="1440" data-height="988" />
Credit: Logan Armstrong/Unsplash<p>The basic idea of the digital twin is that it will allow scientists to observe climate change in motion as it progresses. "If you are planning a two-meter high dike in The Netherlands, for example," says Bauer in an ETH press release, "I can run through the data in my digital twin and check whether the dike will in all likelihood still protect against expected extreme events in 2050."</p><p>Most important will be trying out geoengineering ideas and seeing how they track over time. The press release specifically notes the value the twin will bring to "strategic planning of fresh water and food supplies or wind farms and solar plants." </p>
Aging models and AI<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTY5MDM0Mi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NjM3Njc3Mn0.7Dm8rcv_bcHSvKlxIvaQ3wu3pC3wjKbWeScQ_nQyLlA/img.jpg?width=980" id="be2db" class="rm-shortcode" data-rm-shortcode-id="8dacb34d559e79cded0443dbd88c84d3" data-rm-shortcode-name="rebelmouse-image" data-width="1440" data-height="720" />
Credit: ECMWF<p>Capturing the subtleties and intricacies of our planet faithfully in order to model plauisble outcomes is going to require an equally complex computer model. Construction of the digital Earth begins with the refinement of current weather models, with a goal of eventually being able to simulate conditions in as small an area as a kilometer. Current models are not nearly as fine-grained, a shortcoming that hampers their ability to make accurate predictions given that the large weather systems are really aggregates of many smaller meteorological systems influencing each other.</p><p>The authors of the paper assert that today's meteorological models fall far short of what's possible, their development having basically become stuck in place about a decade ago. They say that current models take advantage of only about 5 percent of today's available processing power. The solution is the tight collaboration between Earth scientists and computer scientists at the heart of Destination Earth to develop cutting-edge models.</p><p>The twin will also be able to take advantage of rapidly advancing developments in artificial intelligence. Obviously, AI is very good at detecting patterns in large amounts of data. The study anticipates multiple roles for AI here, including the promotion of operational efficiency with new ways of accurately representing physical processes, as well as the development of novel data-compression strategies.</p>
A massive endeavor<p> The team will feed the twin massive amounts of weather data—as well as data regarding human activity—to get the digital planet going and then continually as new data emerge, making the model more and more complex and more and more accurate. </p><p> At full scale, a digital twin of an entire planet would require a suitably massive amount of horsepower. The authors of the study propose a system with 20,000 <a href="https://en.wikipedia.org/wiki/Graphics_processing_unit" target="_blank">GPUs</a> that will require 20 megawatts to run. And since the ultimate goal is to help the Earth and not make things worse, they say they'd like to site its digital twin in an area power from a CO<sup>2</sup>-netural electrical source. </p>
Remedies must honor the complex social dynamics of adolescence.
- Bullies are likely to be friends according to new research published in the American Journal of Sociology.
- The researchers write that complex social dynamics among adolescents allow the conditions for intragroup dominance.
- The team uses the concept of "frenemies" to describe the relationship between many bullies and victims.
School Bullying: Are We Taking the Wrong Approach?<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="dfd7e31a97e8a049081d3cf6b978714f"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/E3U38uZBW6w?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Femlee, a sociology professor at Penn State, says her study offers important insights into why bullying occurs—and, potentially, leaves clues for how to combat it. Her team found peer aggression to be much higher among students that are proximal to one another, either through friendship or social circles. Bullying does not end friendships, she says; they persist over the long-term, with the bullied maintaining ties to their tormentors. </p><p>Looking at a data set of over 3,000 students—at least half were either bullier or victim—the researchers asked students to choose five classmates that had been mean to them, then analyzed these networks while racking levels of anxiety, depression, and suicidal ideation. As one student remarked, "Sometimes your own friends bully you. I don't understand why, why my friends do this to me."</p><p>Femlee <a href="https://news.psu.edu/story/648500/2021/02/22/research/et-tu-brute-teens-may-be-more-likely-be-bullied-social-climbing" target="_blank" rel="noopener noreferrer">elaborates on the complex dynamics</a> of adolescence:</p><p style="margin-left: 20px;">"These conflicts likely arise between young people who are eyeing the same spot on the team, club, or vying for the same best friend or romantic partner. Those who are closely linked in the school social network are apt to encounter situations in which they are rivals for identical positions and social ties."</p>
Photo: motortion / Adobe Stock<p>They note that strained friendships are more likely to produce dominance behavior and power differentials than close ties. Punching down is common, especially between students of the same gender, race, and grade. The race for recognition seems to necessitate close racial and gender ties. "Frenemies" usually result from one member of a group victimizing another in an attempt at clawing their way to the top of the network.</p><p>This competition can have lifelong effects, such as reducing the bullied's chances of developing intimate relationships. The authors note that most bullying prevention programs fail becuase, in part, "aggressive behavior accrues social rewards and does so to a degree that leads some to betray their closest friends."</p><p>Such programs tend to focus on a fraction of bullying dynamics, such as empathy deficits and emotional dysregulation. They fail to take into account the complex social dynamics of being a teenager. The authors believe coopting status contents and changing the behavior of high-status youths could have downline effects. Instead of dismantling hierarchies, they recommend recognizing status is intrinsic to group fitness instead of pretending the struggle to the top is an aberration. Only then can you create structural change. </p><p>Friends, they conclude, can be the problem but also offer the solution. Aiming for enduring friendships instead of backstabbing frenemies is a tall order but it could impact the tragedy of bullying—and the emotional carnage it leaves in its wake. </p><p>--</p><p><em>Stay in touch with Derek on <a href="http://www.twitter.com/derekberes" target="_blank">Twitter</a> and <a href="https://www.facebook.com/DerekBeresdotcom" target="_blank" rel="noopener noreferrer">Facebook</a>. His most recent book is</em> "<em><a href="https://www.amazon.com/gp/product/B08KRVMP2M?pf_rd_r=MDJW43337675SZ0X00FH&pf_rd_p=edaba0ee-c2fe-4124-9f5d-b31d6b1bfbee" target="_blank" rel="noopener noreferrer">Hero's Dose: The Case For Psychedelics in Ritual and Therapy</a>."</em></p>
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