Raising prices based solely on economics

Freedom New Mexico

In these divisive times, there has to be a bad guy when a hurricane blows in. It can’t just be a natural phenomenon that’s bigger than us all. It has to be a Democratic hurricane, or a Republican hurricane, the bogey man’s hurricane, or a hurricane caused by us all. Somebody has to pay.

In general, Republicans blame catastrophic hurricane damage on liberal government bailout practices that enable people to build and rebuild homes in locations prone to disaster.

Democrats blame Republicans for causing “man-made global warming,” for failing to correct it, and for opposing expensive public works projects that might protect us from violent weather.

And then there’s the person all politicians blame whenever some natural disaster strikes: the small-business owner. This is the bad guy who supplies survivors with food, fuel, water and an array of other basic needs. This person is essential, but loathed. Today, he’s fair game for critics on the left and right.

Before, during and after a hurricane, people need merchants in order to survive. They depend on small-business people not to flee, at least not right away. That’s because consumers need gas, food, bottled water, plywood to protect windows, and a great variety of other supplies before they can evacuate.

Suddenly, retailers are hit with enormous demand on the limited goods and commodities they sell. Not only is demand suddenly and extraordinarily high, most retailers have no means of replacing their supplies as a hurricane barrels down.

With limited supplies and hugely elevated demand, retailers adjust the control valve. The valve on the release of a good or commodity is known as a price.