16 August—Price gouging is a derogatory term for the nasty principle and practice of driving prices of goods and services far higher than most people would consider reasonable and/or fair. It may occur or be perpetrated at any time by any culprit (so to speak) but is more common during and after demand and supply shocks—certain types of disasters and other emergencies and shortages of supplies, suppliers, and providers of services. It’s not uncommon and especially heinous in monopoly and similar situations.

Price gouging is essentially short-term, localized profiteering in essential goods and services, such as food, clothing, and shelter. Determination of price gouging is, of course, a matter of degree and at best it’s a judgement call. Isn’t it just basic capitalism, after all, supply and demand, to charge what the market will bear and maximize profit? And isn’t capitalism based on greed, a distinctly human trait, and the reason pure, altruistic socialism has never succeeded and can never succeed.

Yet price gouging illegal all over, including Connecticut. In fact, the governor is empowered to impose price restrictions on certain goods and services in short supply. On the other hand, the state website assures us that “price fluctuations that occur during the normal course of business do not constitute price gouging.”

Mighty white of ‘em. But there’s always the question and definition of normal. It’s really a matter of politics rather than economy. That’s why Kamala Harris is calling for a federal ban on price gouging of food, groceries, especially meat. Sounds good, feels good, and good for her and her strategists. Because price gouging certainly isn’t nice.

Kamala promises to use whatever government agencies are available—when she’s President, to be sure—to investigate and penalize “big corporations” (of course) that violate whatever rules are available (or can be created) and to do whatever she and they can to combat price gouging, price fixing, and other anti-competitive practices, such as they may be, in the food and grocery industries. And she’ll ease the burden of high prices that many Republicans attribute to Joe Biden—within her first hundred days in office. Rotsa ruck.

Donald Trump’s promises and other lies are never big on details either. Like how he—singlehandedly, of course—will eliminate inflation. Sure.

While on inflation, then, where’s the line between inflation and price gouging? Take, for instance, the price of USPS postage. In 1952, first-class postage was three cents. Grown-ups will fondly recall the purple three-cent Jefferson stamp. (As well as reliable next-day delivery of local mail.) Inflation has raised a 1952 dollar to $11.50 in 2024. That’s 1,150 percent. So, given inflation, first-class postage should now be 35 cents. But as of 14 July (Bastille Day), first-class postage is 73 cents. That’s almost 2,500 percent, over double the inflation rate. (And next-day delivery?!)

And then there’s PO box extortion. From 1972, from experience in Litchfield, the box rental fee has skyrocketed at double the inflation rate.

Inflation or price gouging?