Economic Conversation

AUTHOR: Matt Fish

The most talked about media topic over the last two weeks is the arrival of the swine flu.  While there has been a very small number of deaths from the influenza, it is something that is very important to American citizens.  In fact, most Americans are willing to do any necessary steps to prevent this disease from spreading.  With this in mind, it seems obvious that some companies are going to make money off this pandemic.  The question that I ask is are pharmacy retailers price gouging to make money off the Swine (H1N1) Flu?

Every single retail establishment that I have been to in the last week has a huge display of “flu prevention” items at the very front of the store.  Everything from Tissues to Lysol to Face Masks are scattered at strategic locations throughout retail establishments.  I have not taken a great deal of time to check the prices on these items, but I would imagine that the sales of “flu prevention” inventory has skyrocketed over the last few weeks.  I have no doubt that there are some individuals who are trying to make an extra dollar off this but would pharmacy retailers go that far?

At one point over the next few weeks most of us will go into a CVS, Walgreens, Rite Aid or Longs Drug store (or any smaller pharmacy of your choice).  It is also likely that we will pick up some items as a precautionary measure against any type of flu.  Are you willing to pay a higher price for these staple items?  Would you pay $20 for a face mask in hopes of avoiding this disease?