For the millionaires and those who can afford to pay and pay, surge pricing in a good formula and good policy to provide services and goods according to supply and demand. It is another core principle of free capitalist economy and laissez faire. Provide service and goods to those who can pay, forget about those who cannot pay. The rich will be very happy but the poor, what poor, they don’t deserve to have the services and the goods.
There is no free lunch, come and get it if you can afford it. That was why
many of the landlords and rich were executed when Capitalism reached its perfection and Communism came in to level the playing field when the
majority of the poor rebelled. Revolutions are made of such stuff, the
struggle between perfect Capitalism and the need to distribute wealth more equally, not equally, to the less deserving.
The parents are complaining that the price of milk powder has surged more than 120% over the last decade or so. A 900g tin of milk powder now costs $56 from $25.40. This must be surge pricing demand at work thought the manufacturers claimed costs are going up due to R & D. The parents are not amused. Maybe they should stop producing babies, then the demand for milk powder will fall and no surge in price.
When the prices of basic goods and services are determined by demand without intervention by the govt, it is very good for the rich and the producers of these goods and services. The other end of the stick is a different story. Should this be the principle for pricing of goods and services for all things?
Public transport prices, food prices, education, ERPs, medical, use of water and electricity, etc etc? Should the govt go this way, to encourage surge pricing and apply surge pricing for more goods and essential services?
The Sultan of Johore has just done the opposite by selling low cost housing to the losers that cannot afford to pay. This is against the principle of Capitalism and surge pricing. Why supply housing at low prices when he could make a pile by restricting supply and sell to the highest buyers? But he is going to stand out as a leader of the people, a champion of the masses, He is now putting many political leaders to shame. Once in a long while a benevolent leader will appear on the scene. This sultan is looking like the one the Malaysians are looking for.
How many monkeys are out there clapping and saying surge pricing is the
right thing and right policy to be adopted by the govt?