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  • Hoarding

    Many times, I have seen suppliers of basic commodities in my country hiding basic commodities with the aim of hiking prices. This is unethical and it should be condemned in the highest terms possible. The most affected are sugar and flour. We find that suppliers are greedy and they hide sugar so that there will be a shortage. They then release the hidden bags and earn unrealistic profits. I think that demand and supply should interact and create equilibrium in the economy. Both consumers and suppliers should not be greedy. Would you support hoarding?

  • #2
    Re: Hoarding

    I don't agree with hoarding because it is a selfish motive. But considering the intention of the businessmen, they earn more than what they expect if they would hoard the commodity that will result in increased prices. Only the government can curtail this practice since they have the authority to arrest the hoarders. Particularly with rice, there are also rice hoarders here that have never been arrested simply because the government is not doing anything about it.

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    • #3
      Re: Hoarding

      It is kind of interesting to think about this more personal phenomenon in terms of how it relates tot he business side of things. A lot of the same things surely apply but there are a lot of people caught up in the mix now.

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      • #4
        Re: Hoarding

        The problem is that it makes good business sense to buy low and sell high, and manufacturing shortage is just one of the less ethical methods used. It can be hard for governments to act, because how would they tell the difference between a business storing goods towards high seasonal demand, and one hoarding to create an artificial shortage?

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        • #5
          Re: Hoarding

          I think hoarding is an ancient trick that's easily caught by consumer watchdogs and the government. It is not only a stressful scheme but one that can earn backlash against the company/people behind it. Modern business mindset would rather keep the products free flowing and earn consistently throughout the year rather than hoard and lose sales and anticipate gains from price increases due to shortage. With a free market, a seller of goods can't have monopoly on a product. There will always be other sellers who will bust the artificial shortage myth.

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          • #6
            Re: Hoarding

            Most businesses around the globe, I mean the ones whose sole aim is to maximize profits, do not consider what is ethical sometimes when taking certain business decisions and that is the thing many of us that are outside those businesses have failed to understand. These people are into businesses to maximize their profits and if they see the opportunity to hoard products and sell them when the prices are quite high, they do it!

            In Nigeria, most fuelling stations that sell crude oil products such as petrol, kerosene, diesel are guilty of such act of hoarding those products and as a result, create artificial scarcity of those products so as to cause excess demand to put the price up as a result of decrease in supply. So, I see that as pure business stretegy they adopt to increase their earnings.

            However, this is where government should come into play by regulating how these products are sold and ensure that firms that sell such products do not hoard them just to create artificial scarcity in the economy. Aside from government intervention, I do not see such acts stopping soon.

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            • #7
              Over here hoarding is commonly done by cartels. It is like a syndicate by a group of traders that try to control the market prices. When there is short supply in the market the price goes up so the hoarders will slowly release their supply to the market for a better price. If the government will not monitor the market prices then the cartel will earn more profit because of their control. What the government should do is to flood the market with supplies to bring down the prices.

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              • #8
                Most business enterprise's main purpose is to fully exploit any potential opportunities that would enable them to maximize their profits making at the expense of their consumers. Truth be told, it's not ethical in business or fair to customers but it's something that eaten deep into the fabrics of demand and supply, I'm not sure if it's ever going to be possible to eliminate it from keep happening. Petrol is among the most likely commodity that is always hoarded here in my country especially during festive seasons.

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