Not All is as it Seems in Capitalism (698 hits)
Category: NewsRating: -0.03 on 17 reviews (Rate this item) (V)
Submitted by "The HurriCrane" (View user info) at 2005-07-10 17:52:58 EDT
If one was to go to eBaums world right now and look in the eNews section, one would find a link to a news story reading, "Greedy Hotel Owners Profit On Tragedy", which links to the BBC news story at http://news.bbc.co.uk/1/hi/uk/4662809.stm#sad. This news article describes how "greedy" hotels were ramping up prices in downtown London to cash in on the many victims stranded there and in need of shelter. When one looks at this at face value, it may seem as though these hotel owners are cruel and only care about making more money off of the unfortunate victims of this tragedy.
However, most people fail to understand that this is simply the law of supply and demand at work. There are many more people in need of hotel rooms in downtown London right now than there usually are yet the number of hotel rooms remains fairly constant. Increased demand and constant supply means that the prices will naturally go up. While this seems like a terrible thing at first, people fail to realize that the increased price of hotel rooms will lead to greater efficiciency. For example, at the normal hotel room price, it would be acceptable for one businessman to rent a room for himself for a night. However, the increaed price of hotel rooms will force greater efficiency and may lead to collegues and friends chipping in together and staying in the same room when usually they would rent separately. The increased price of rooms may also lead other businesses to rent out space that would not normally be used for overnight shelter or for appartment owners to allow people to stay in extra rooms for the night.
Only when the government interferes is there large inefficiencies. If after the tragedy, the government was to mandate that hotel rooms remain at the normal level, people would begin to rent large rooms for themselves and have no reason to share. This would lead to large shortages of room and shelter for people.
User Reviews
Submitted by williamson (user info) at 2005-07-11 09:10:10 EDT (#)
Ranking: -2
GHEY
Submitted by williamson (user info) at 2005-07-10 22:22:18 EDT (#)
Ranking: -2
Please don't tell me capitalists support this?
Under socialism (if the hotels were nationalised) prices could be risen should they need rising, and people could be forced to rent together if circumstance demands it.
And then, the money that was made in profit from the hotels would go to the hospitals to heal the wounded.
This post has no pro-capitalist points whatsoever.
Submitted by d_prime (user info) at 2005-07-10 22:11:44 EDT (#)
Ranking: 1
I've explained this concept much better.
Submitted by thorpe (user info) at 2005-07-10 21:53:28 EDT (#)
Ranking: -2
1. This was stupid.
2. Your replies to Wiggles were even stupider.
3. You sound like a Durel alter, but not as articulate.
4. -2DIE.
Submitted by williamson (user info) at 2005-07-10 21:26:26 EDT (#)
Ranking: -2
Submitted by Stabkill (user info) at 2005-07-10 19:13:48 (#)
Ranking: 2
Wiggles is a socialist scumbag who loves wealth redistribution and a system where busting your ass to get ahead is not rewarded, but sitting on your ass doing the bare minimum is.
Fuck you, wiggles. You suck cock.
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Oh, and stabs: You really need to understand socialism a bit better. Like most ignorant Americans you seem to have the impression socialism=welfare while in fact egalitarian wealth distribution should be a consequence of socialist economics.
You work your arse off and you can still make a few million dollars. Most of us just don't think you deserve tens of millions or hundreds of millions or billions. That kind of wealth in the hands of individuals is detrimental to society which is what socialism is all about, the good of the many outweighing the good of the few.
Submitted by williamson (user info) at 2005-07-10 20:41:44 EDT (#)
Ranking: -2
Actually, -2 for coming to the unfounded conclusion that supply/demand shows capitalism is a god idea.
Submitted by williamson (user info) at 2005-07-10 20:39:59 EDT (#)
Ranking: 2
A principle of economics, not capitalism.
Submitted by Stabkill (user info) at 2005-07-10 19:14:54 EDT (#)
Ranking: 2
And the hotels couldn't charge that much for the rooms if people weren't paying it... so whose fault is that? There are other options... to those who say there isn't, I guess they lack ingenuity and/or intelligence.
Submitted by Stabkill (user info) at 2005-07-10 19:13:48 EDT (#)
Ranking: 2
Wiggles is a socialist scumbag who loves wealth redistribution and a system where busting your ass to get ahead is not rewarded, but sitting on your ass doing the bare minimum is.
Fuck you, wiggles. You suck cock.
Submitted by Robert_of_Duluth (user info) at 2005-07-10 18:47:12 EDT (#)
Ranking: 0
Im saying that increased prices lead to incresed efficiency in a time of need.
Submitted by Robert_of_Duluth (user info) at 2005-07-10 18:46:35 EDT (#)
Ranking: 0
that's not even a valid argument, what do you mean who benefits it from it besides the hotel owners
Submitted by Robert_of_Duluth (user info) at 2005-07-10 18:44:03 EDT (#)
Ranking: 0
The people who get rooms for the night.
Submitted by Robert_of_Duluth (user info) at 2005-07-10 18:43:23 EDT (#)
Ranking: 0
touché Wiggles
Submitted by Wiggles (user info) at 2005-07-10 18:41:22 EDT (#)
Ranking: -2
You're basically saying this is good simply BECAUSE it's capitalism at work. Who benefits from this besides the already-wealthy hotel owners?
Submitted by Wiggles (user info) at 2005-07-10 18:38:19 EDT (#)
Ranking: -2
This is quite possibly the DUMBEST thing I have ever heard.
Submitted by Freakmagnet (user info) at 2005-07-10 18:00:56 EDT (#)
Ranking: 2
It is good to see that some people still support capitalism.
Submitted by c1ndy (user info) at 2005-07-10 17:58:19 EDT (#)
Ranking: 0
I guess we can't have it both ways. London is proud of it's business as usual stance- the hotels are greedy and want to make as much money as they can, that's their job. This could have been a story about all the acts of goodwill- did you see about M & S donating food and clothes and stuff?