Price gouging used to be illegal. Now price gouging is back. A new report by the Consumer Finance Protection Bureau finds that payday lenders typically charge over 400 percent annualized interest, and their low-income customers who go back for six renewals (not unusual) end up paying more in fees than the original amount of the loan. Meanwhile, Uber is charging its customers as much as $39 per mile or $9.50 per minute when demand is highest (such as during a storm), according to filings the company just made with New York’s Taxi and Limousine Commission. Under these conditions, a ride to La Guardia Airport from Brooklyn can cost $780. The reason price gouging used to be banned was because it was once thought unethical to exploit customers in desperate need. But the economic game is now rigged in favor of those with the power to charge whatever the market will bear. Price gouging should be illegal once again. What do you think?
Posted on: Wed, 14 Jan 2015 01:43:17 +0000
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