Economy Week 3 Garage Sales

Prompt: “If the state regulated garage sales, would poor people be better off?”

Garage/yard sales are ways for people to sell products they no longer need at a discounted rate. They are wonderful for buyers looking for a bargain, and wonderful for sellers looking to get rid of clutter.

If the state attempted to regulate garage sales I imagine one of two scenarios would unfold. One option is the state raising prices of products through taxation, regulation, or unnecessarily thorough inspection. This would lead to buyers looking for a bargain to lose interest, and it would lead to buyers only able to afford a bargain to be unable to participate.

The other option would be the state trying to lower prices even lower than the regular used item discount. In theory it would be a way to attract discount hungry patrons. But it would also be a deterrent to sellers. Garage sales take work and time to set up, and the sellers put in this work and time because they’d rather get a decent amount of money for their used products than throw them away. But if that amount of income the sellers made from the garage sale was suddenly cut in half there would be much less interest in investing the time setting things up.

Garage sales are ways for people who own used products to sell them directly to the buyers. The sellers get to choose the price they think is right for the item, and the buyer has the option to haggle where they see fit. The state stepping in and attempting to regulate garage sales would be detrimental to both parties participating, and could lower the popularity and relevancy of garage sales entirely.