/NQIDVSLISIANI 3 VIDNID0G
3d S3NI4 NOD OaVaNVISA ‘N34 SONWIMTY OAISNTDXa OSN..
or0z e010 :ensowos
sowey ydosor : 1059j014
souojen A owsjuewny ‘eywouo>g :esp91">
“repues
“£1eunN/ op 07 Buna ay61 ou SaeyM ‘s>RSNC “3G CAVANVOSI
“ez-e-d
Sung wyo1 a1 Bulog :¥ “dep :ouaRUOD
*C FeeySIW ‘fepueS “soINy1, DOING THE RIGHT THING
In the seer of 2008, Hurricane Charley roared out ofthe Gulf of
Mexico and swept across Florida tothe Atlantic Ocean, The storm
claimed twenty-two lives and caused §11 billion in damage." Kalo left
ints wake a debate about price gouging
Ata gaestation
for ton dollars. Lacking power for refrigerators o air-conditioning in
the mide of August, many people had litle choice but to pay up
Downed trees heightened demand for chain saws and root repairs. Con
(Orland, they were selling two-dollar bags fice
tractors ofleredto clear two tresoff homeowner sroof—for $23,000
household generators for $250 were
‘ow asking $2,000, seventy- seven-year-old woman fleeing the hu.
ricane with her elderly husband and kandicapped daughter was charged
5160 per night for «mots room that normally goes For $40.”
‘Many Floridians were angered by the inflated price. “After Storm
Come the Vultures” rea a headline in USAToday. One resident, told it
Stores that normally sol sm
‘would cost $10,500 to remove fallen tre For his roo, sid it was
‘wrong for people t "ty to capitalize on other people’ hardship and
Charlie Crist the tates attorney general, agreed: "Kt i as
tounding to me, the level of greed that someone must have in thei soul
tobe willing to take advantage of someone susfering inthe wake ofa
burricane4 msnee
‘lorida has law against price gouging, ad in the aftermath ofthe
hurricane, the attorney general’ office received more than two thou-
sand complaints, Some led to successful wits. A Days Inn in West
Palm Beach had to pay $70,000 in penatien and restitution for ver
charging customers *
‘But even as Crist set about enforcing the price gouging lay, some
comomits argued thatthe low—and the publi outrage—were mi
conecived, In medieval times, plilosophers and theologians believed |
‘thatthe exchange of goods shouldbe governed by 3 "jst pric," deter.
‘mined by wadition or the intrinsic value of things. Bu in market soc:
‘tes, the economists observed prices are set by
“There ino auch thing aa just pice”
spy and demand
“Thomas Sowell, a free-market economist, called price gouging an
“emotionally powerful but economically meaningless expresion that
‘most economists pay no attention to, becuse it seems too canfied to
bother with” Writing in the Tipo Tebune, Sowell sought to explain
“how ‘price gouging’ helps Floridians” Charges of price gouging rise
“when prices are signicantly higher than what people ave been used
tof Sowell wrote. Butthe price levels that you happen tobe wed to”
are not morally sacrosanct, They are no more "special oF fi’ than
‘other price” that market condtions—including those prompted bya
Iason ey bring sou!
Higher prices for ce, bottled water, roof repairs, generators, and
‘motel rooms have the advantage, Sowell argued, of limiting the use of
such things by consumers and increasing incentives for suppliers in
far-off places to provide the goods and services most needed inthe
Inuriane’s aftermath, fice fetches ten dlls a bag when Floridians
are facing power outages inthe August heat, ioe manufacturers will
find it wort their wile to produce and ship more of it. There i noth
ing uns about these prices, Sowell explained they simply fect the
‘ale tit buyers and sellers choose to plice on the things they ex-
change
ome Tae mGHT THE 5
Jeff Jacoby, pro-market commentator wrting inthe Baton Gl,
argued agains price gouging lws on similar grounds Isnt gouging
to charge what the market wil ber. Isnt greedy or brazen. 1s how
goods and services got allocated in a free society” Jacoby acknom
‘eged thatthe “price spikes are infuriating, especially to someone
whose life as just been thrown into turmoil bya deadly storm.” But
publicanger eno justification fr interfering wit the free market. By
proving incentives for suppliers to produce more of the needed
goods, the seemingly exorbitant prices" fr more good than harm.”
is conclusion; “Demoniing vendors won't speed Florida's reovery.
‘Letting them go about dhl business wil”
Attorney General Crit (a Republican who woul ater be elected
governor of Fords) published an op ed piece lathe Tampa paper de
Feradng the law against price gouging “in times of emergency, govern-
tment cannot remain on the sidlines while people are charged
unconscionable prices as they flee for their ves o eck the basic com
modes for their failes ater hurricane Cris rejected the notion |
that shete' = prices flected truly ec oxchan
“This snot the normal ice mathe station where wing buyers
Feely lest to enter at the marketplace ad meet willing slr,
‘where 2 price fagrect!upon based on supply and demand fn an
cemergeny bcs seh na fades Ftp of
The debate about pice gouging that arose in the aftermath of Hur-
cane Charley raises hard questions of morality and law: sit wrong
for sellers of goods and services to take advantage of a natural disaster
by charging whatever the market will bear? IF so, what, iF anything,
shoul the law do about ie? Should the state prohibit price gouging,
even i doing so interferes with the freedom of buyers and sellers to
make whatever deals they choose?6 wsnce
ota, eedom, and Vitae
Ts tind ee ely cvs bow ral nd et cot
Pe cme inn dra byl soe be
Pee ea ay aa qa bo cs
Baste Er cn hong of urea i, woe
Se ee ee bok coy ep prego,
Jou aod tt epee fred ape pug et
reve round hee et axing ele, reopecting feed,
tml promoing ite, Exch of hee pos to ere ay
adn cow ja
Feeds Gr ced re cate ctr
about wel, he eb abot edo. is market rma the
aaa oh by prong zeros pre
wor rd ping he gods heer pope want commen
prince, ween ent mele with cool propery
are eaie ae ast deca rte
Sil wel being) Sead, markt rept iil etn her
Rpetec cis pile xian aciaaie oa
hoor for emer wht a peo he ng hey exchange
Notun oon pce gai vn eke es
wo ir pn re aren Hw he ender of
toting os respon Fis, cy argue a th wee sce
hotel served bye ent pcs charged ed
tine Een highpoint nly pots bn
Rae ane
tails est mes gE
jem treet aes een es
se enone ee eae
peppers
peepee ante. dale, excerpt.
PRR ea city ofa ic aye pd
pee ee Sie nay
ouwe Te eveHT Te 7
Second, defender of price-gouging hws maintain tha, under ce
tain conditions, the free market is not truly fee. As Crist point ot
bayer under duress have no freedom. Thr purchases of necestes
ike safe lodging are forced" If you're fleeing a hurricane with your
fam, the exorbitant price you pa fr gas or ceri not rely 4
Noluntary exchange. Is something closer to extortion. So to decide
swhuther pl
peting accounts of welfare and of feedom,
‘Bat we ako need to consider one further argument. Moch public
gouging hws are justified, we ned oases these com
support for pice gouging laws comes fom semething more vce!
ther elie or fredom, People ate outrage at lures” who prey
ote desertion of eters and want them punies—not rewarded
Fak wind prot Such seainnt a often dumised as avis
Toone tht oi ot interfere with pblc pole ot aA Jaa
rites, emeonizing vendors won't speed Frid’ recovery"?
ut he
te gears ata moral argument worth ing serial. Outrage
the spec no gee
Grit touched on the moral source of the outrage hee de
scribed the "prec that someone must have in thir soul to be wing
totake advantage afsomeone fering the wake o urine" He
ti not explicly conec ths observation to price gouging laws Bat
impli in is comment someting Uke the fllowing argument,
sich might be led he virtue argument
hlviow othe ising of thers, Mone hana persana ic i8at
toe with ve virtue Jn ames of tulle a gsc
gether. Rather thin pres for masimumadhantage psu lok out $F
Eola Anny hich poplar af
soa gi ii fi ot et, re St»
therTone + ve Wa Boo soy SORT Tara it can. Price8 wsmiet
gouging laws cannot banish greed, but they can atleast restrain ite
most brazen expression, and signal society’sdsapproal oft, By
, oval of, By pun-
thing greedy behavior rather than rewarding it, society arms the
dvi virtue of shared scrifice forthe common good,
‘Te acknowleige the moral force ofthe virtue argument snot to
Insist that it must always prval over competing consideration. You
might conclude, in some instances, that a hurricane-stricken commu
ity should make a devil's bargain —allow price govging in hopes of
racing an army of roofers and contractors from far and wide, even
a the moral ost af sanctioning greed. Repair the roofs now andthe
sol fabri ater, What's important t.naiearhewererrtthat- thle
‘ite about price gouging bw isnot imply. rand fcedom,
‘caisson eentsmas apace dspatons
‘ie gas foarte on ish gn nit depen, ;
= PETG Talon many who support price gouging law,
Sod vite pment cong The reson censor lg
‘mental thn argaments tht appl to elie and freedom, To ask
whether & policy will sped economic recovery oF spur economle
owth does no involve jag people prefrences Re asumes tht
ceryone prefers more income rather thin es and does’ pase
fagment on how they spend ther money Sina, to dk whether
under condtions of dares, people are acl free to choose doesn't
require evahatng their choles. The question s whether, or to what
‘extent, people are free rather than coerced
“Th vets sgumantchyconiretrevtrmeegment thn rent
vie and wat ce? Don't izes of pra societies agree
shout sich things? Andi’ i dangerous to ipove judgments aout
virtue through aw? nthe face ofthese worries, many people hod that
government shouldbe nestrl on mater of virtue and vie; should
rot try to cla good attitudes o courage had on
So when we probe our reactions to price gouging, we find our
sclrer pulled in two directions: We ae outraged when people get
Dovua tne eur THe 9
things they don't deserve grec that preyson human misery we think,
Should be punished, not rewarded, And yet we worry when jagments
tout virtue find their way into la
“This dilemma points to one of the great qustions of pola, ph
Iovoph: Boe just socket ecko promote Uae of zee
Or should Iw be neta toward ceptions of virtne, 80
dat ciizns canbe fre to choo for themselves the best way olive?
‘According to the textbook account, ths question divides ancient
and modern politcal thought none portant respect, the textbook
te right- Aristo teaches tht jntice means gvng people what they
deserve. And inorder to determine who deserves what, we have 0
tdtcrmine what virtues are worthy of honor and reward, Aristotle
maintain that we ean gore out what a just constittion i without
fst reflecting on the most desable wa of ie, For him, lw ean’ be
neutral on questions ofthe good life
By contrast, modern polit phosphors Inman! Kant
in the cightecnth century to fon Raws in the twentieth century
tngve that the principe ofjstie that define our ightssholl not rest
tn any particular conception of virtue, oF af the best way to Ive
Stead, ost society respects each persons freedom to choose his oF
her own conception ofthe good life.
‘So you might ay that ancien theories of otc tar with Ft,
wile modern theories start with freedom, And in the chapters t0
Tome, we explore the strengths nd weaknesses of ach, Batit's worth
rotcing at the outset tha this contrast an mislead
Tore tur our gaze to the arguments about justice tht animate
contemporary politi —not among pllosophers but among ordinary
ten and women-—we find a more complicated picture I's true tht
pos of our arguments ar about promoting prosperity and respecting
todividal fred, atleast on the surface. But underlying these argu
ments, and sometimes contending with them, we ean often glimpse
another set of convictions —sbout what virtues are worthy of honor
and reward, nd what way off a good society should promote, De10 wusnice
‘voted though we are to prosperity and freedom, we can't quite dake
off the jgmental strand of tic. The convition that justice involves
virtue as wells choice runs deep, Thinking about justice seems ins-
capably to engage usin thinking about the best way olive,
nat Wounds Deserve the Puro Heart?
‘On some issues, questions of virtue and honor are too obvious to deny
Consider the recent debate over who should qualify for the Purple
Heat. lace 1932, the U.S military bas awarded the medal to soldiers
‘wounded or Killed in battle by enemy action In adition to the honor,
the medal ents recipient to special prises in veterans’ hospital
Since the beginning of the current wars in iraq and Afghanistan,
_growing numbers of veterans have been diagnosed with post-traumatic
stress disorder and treated forthe condition. Symptoms include recur.
igightmares, severe depression, and suicide. Atleast three hundred
thousand veterans reportedly sulle from traumatic tres or major de.
pression. Advocate for these veterans have proposed that they, t00,
should quai forthe Purple Heart. Since psychological injuries ean be
at Teast as debilitating a physical ones, they argue, sokers who suffer
these wounds should receive the med.
‘Ate a Pentagon advisory group studied the question, the Penta-
‘gon announced, in 2009, thatthe Purple Heart would be reserved for
soldiers with physical injures, Veterane slfering from mental disor
ders and psychological trauma would not be eligible, eventhough they
aualify for government-spported medial treatment and disability
payments. The Pentagon offered to reasons for its decision: traumatic
‘tres disorders are not intetdonlly caused by enemy action, and they
are dict o diagnose objectively."
Did the Pentagon make the right decison? Taken by themselves
eats are unconvincing. In the Iraq War ne of the most common
Injuries recognized with the Purple Heart has been a punctured ear
Arum, caused by explosions at close range.” But wake bullets ard
ong Te IBA THN
tombs, such explosions are nota deliberate enemy tactic intended 0
‘injure orl they are like traumatic sre) a damaging sie et of
taitfiel acton, And while traumatic disorders may be more dificult
to diagnos than a broken lib, dhe injury they inf can be more se
sere and lng lasting
ihe the wider debate about the Purple Heart revealed the real iste
Inabout the meaning ofthe medal and the virtues it honors, What
then,ae the relevant virtues? Unlike oer mltary medal a Buse
ot braves, It requires no hero ae, only an
eat honors
tnsayinfcidty the enemy The question what kind finery soul
cers gop ale the Miltary Orde of the Purp Het
eppsed award the metal for pycholgi nurs, cing tt
“Rings woul "dcus the hnor A poem for the group te
thet ieding Hod shouk be an ese qsaitetion "He did't
tain wy Boodle injrc sod’ cot But yer E, Howe
Tomer Marne captain wh forsincdng yc
tess pling ani ofthe dapat He strut he oppostion 0
kept atin the altar ha ws post raumatic tesa
‘Mt wanes "The same clare txt demands tough sides
‘ho encourage sheptic tovard th gestion tha he wens of
ae co hut the helt of minds. Sly long ao miary
vane bers at nea ut contempt fr the paychlogeal wunds of
writ ney thon veteran wil ever ce Parle Heat."*
Ste dette cnr the Parle Hear is more thn 2 mdi ot
lineal dupe abut how 0 deermin the veracity af injury. tthe
testo he dgrement are il conceptions of moral character
Meltry valor: Those who insist ht only Heeding wound
CETTSTe tat ps traumatic ste reletsa weakness of cae
te unworthy of bono Those wo beleve tht psychnlogeal wounds
Abo unis arge hat veterans lei lng au td
shold
‘ere depresion hae scrificed for their country as surely and as hon
orably, as those who've lost Limb2 mene
The diate over the Ppl
ple Hw Mette mor po
Aimer tric Wc ete vin Sores mi
tay mel wong what rts he mel propery boners
And anecdotes
fer en tice
sei ho
back aman ei her an rte Thee da mt fet
rumen nt ote we aboathon ote ets a ps
pei ort de ord and fine i
OF est Inthe dois, cneraton of wel an Fedo
predominate But uguments hog an wrong of enon
trang fiend bk Ait quston wha people
‘morally deserve, and why, m
“he bl fr them rte 208- 09a apo
For yer tock pres and realex ales hd led. The don
ig ce et ung ore Wl eet ba
i ntl mse le fara oer eames
teed monger vi che now pel Ooo rod Val
Stetson he cf cle Teo kd
evan not nly biginvesors but alo oda Americans, whoxe
eee eee er ek ot hr cae ts cal a
Aron sly in 08, neu eee