In July 1977, a lightning strike in Westchester County set off a power outage that plunged New York City into 25 hours of darkness. Flights were canceled, baseball games suspended, and subway trains ground to a halt. Looting spread through neighborhoods in Brooklyn and the Bronx, along with hundreds of fires set by arsonists.
Imagine that you were walking from your office in Brooklyn to catch the subway home when the lights went out. Within moments, you hear the sound of shattering glass and see flames rising up into the sky. A taxi pulls up beside you, and the cabbie yells, “You want to get out of here?”
It’s a $30 ride home, but you consider it a bargain. As you climb in, the driver says, “For a hundred bucks I’ll take you wherever you want to go.” The crowds seem to be growing more unruly by the moment. “All right,” you say, “whatever you want.”
When the cabbie pulls up in front of your house, you say, “Listen. I’ll pay the regular fare, and I’ll even give you a tip. But I’m not paying you a hundred dollars. That’s extortion.”
“A deal’s a deal,” the cabbie replies. “You agreed to the price. You have to pay.”
Who’s right?
Grapple with the Gray
List two or three reasons why you have to pay what you agreed.
List two or three reasons why you only have to pay the regular fare.
Was there another alternative?
Having weighed the options, what would you do?
Gray Matters
First, we need to address the ethics of price gouging. In the case of popular sporting events or Broadway shows, it’s not unusual to hear stories of tickets selling for many times face value. One might argue that this is simply supply and demand. If people are willing to pay inflated prices, why should there be any objection to holding out for whatever the market will bear?
There are two ethical objections to this reasoning. In theory, overcharging can accelerate inflation. Rising prices in one commodity might draw prices of other goods and services up with them, adversely affecting working people on a limited budget.
Sociologically, a healthy culture is one whose members exchange goods and services for a fair price, with all parties benefiting from a mutually acceptable standard of value. When merchants become cutthroat in an effort to wring every last penny out of every transaction, the trust necessary to sustain a viable economy is lost, and society grows increasingly unstable.
In short, there’s nothing wrong with getting a good deal, but not when doing so takes advantage of others or causes the fabric of society to fray. In certain times and places, the law itself has prohibited the practice of “scalping.” And virtually everyone shared the outrage directed at the baristas who charged $130 for three cases of bottled water to emergency responders on 9/11.
Nevertheless, there is still the matter of keeping one’s word. Many of us grew up hearing our parents lament the “good old days” when a man was as good as his word and a handshake was the only contract necessary. Even if overcharging is unethical, once I agree to pay an inflated fee, am I not obliged to follow through on the bargain?
Under normal circumstances, that would seem to be so, even if I’m doing business with someone who is less than upright.
But our case is not normal. Many states have what are known as Good Samaritan laws, requiring citizens to intervene where they can by coming to the aid of others in need. Such laws are built upon the scriptural mandate, “You shall not stand idle over your brother’s blood.”1 When my neighbor is in need, I need to help if I can.
Consequently, the cab driver has an ethical responsibility to help a pedestrian in danger. He is certainly allowed to charge his regular fare. But he has no right to capitalize on the desperation of others and exploit their desperation for his own profit.
Moreover, because you have as much responsibility to save your own life as the life of another, you would be permitted to agree to his price up front, even with no intention—or obligation—to actually pay it.
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1 Leviticus 19:16.