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Democrats Expel the Free Market from Obama Inauguration

When will Democrats embrace the principles of supply and demand?

From the Desert Sun:

WASHINGTON -- California Sen. Dianne Feinstein introduced a bill Monday to ban the sale and counterfeiting of inauguration tickets, one of the most sought-after items in Washington.

...

Feinstein, who complained that some people were trying to sell the free tickets at inflated prices, praised Ebay for agreeing last week not to sell the tickets on its Web site.

Her bill would make it illegal to sell inauguration tickets or to make counterfeit tickets. Violators could be fined $100,000 and jailed for one year.

The counterfeiting part is fine. But why does Feinstein want to ban the sale of inauguration tickets?

Ticket scalping hurts no one. In fact, there are several arguments in favor of it:

  1. Ticket scalping helps achieve the true value of the tickets. The idea that the true value of the ticket is the one printed on it is fallacious. The true value of the ticket is the one achieved by the free market.
  2. Ticket scalping benefits both the seller, who values the money he receives more than his attendance at the inauguration, and the buyer, who values his attendance more than the money he pays.
  3. Ticket scalping gives everyone a chance to have a ticket. In the current situation, the only people who have access to inaugural tickets are the ones who were lucky enough to get through to their Congressmen's offices or to have the right connections. How is this any more "fair" than being able to willingly buy the tickets in order to attend? With ticket scalping, anyone has access to the event if they are willing to pay enough.
  4. Ticket scalping results in a more appreciative audience. Who is more likely to get a higher value from attending the inauguration, someone who lucked out or someone who went out of his way to find and pay for a ticket?

There is no good argument against ticket scalping in this case. Feinstein says selling tickets at "inflated prices" is a bad thing, but she clearly disregards the laws of supply and demand. If they were at "inflated prices," people wouldn't be buying them. In fact, the amount people are paying for the tickets is exactly the definition of the "right price."

Feinstein's failure to raise money for the inauguration by correctly pricing the tickets does not mean that she should bitterly pass a law to prevent anyone else from correctly pricing resale prices. The free market here is benefiting the seller, who is making money by willingly giving up his seat, the buyer, who is happily getting his seat at a price he agreed to, and the event organizers, who are getting a self-selecting audience pool that is far more appreciative than the original one. There is no need to expel the free market from the inauguration.

Posted on Wed, November 19, 2008 at 12:05PM by Registered CommenterPaul Ibrahim in , , , | Comments3 Comments

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Reader Comments (3)

Great argument.

Wed, November 19, 2008 at 11:41PM | Unregistered CommenterOpinionated

San Francisco mentality. Just make new laws and give people less freedom. You'd think in a time when jobs are down, letting the free market work would be a good thing. If people are willing to pay those prices, they are therefore worth that price.

Thu, November 20, 2008 at 11:58AM | Unregistered Commenterjcheney

Seems to me allowing ticket sales (read: scalping) would be a good idea to the Senator from California, since she & her buddies could then tax the devil out of any profits!
Perhaps they fear someone who does not like Obama might get a ticket & boo during the coronation. Oops, I mean inauguration, don't I?
In the final analysis, most Americans are totally disinterested. And spending big bucks on an inauguration as the economy goes down the toilet, appears to be a bit excessive, doesn't it?
Sorta expect the Marie Antoinette reaction from some of our new party in power supporters anyway though.... "let them eat cake!"

Mon, November 24, 2008 at 05:08PM | Unregistered CommenterRubicon

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