Obama goes back to Bush playbook and declares war on “price gouging” oil companies

"I’m concerned about higher gasoline prices. The government has the responsibility to make sure that we watch very carefully and investigate possible price-gouging, and we will do just that." — George W. Bush, 4/17/2006

Congress is vowing to take actions that it believes will reverse runaway crude and gasoline prices. Oil rose above $136 a barrel on Monday – more than double what it cost a year ago – and gas hovered around $4.07 a gallon.” – CNN, 6/24/2008

"We are going to make sure that nobody is taking advantage of American consumers for their own short-term gain." – Barack Obama, 4/20/2011

gasprices21Whenever the price of gas spikes the call goes out from Washington to investigate price gouging. Unfortunately, this leads to one of the great intellectual challenges of capitalism: Defining price gouging. Problem is no one can separate “taking advantage of consumers for short-term gain” from what is usually called profit taking.

To quote Collateral Damage Sr.: "In a society that has a free market fetish, if not a religion, what is price gouging? Is nine percent profit gouging the price? Or 15 or 50 percent? At what price point does profit change into gouged profit?"

Well, here are a few samples from people who have tried to split that particular hair.

First, former Rep. Bart Stupak, (D-Mich), from 2006:

When we were doing the Energy Policy Act last fall, in the town of Midland, right by my district there, gas went up 90 cents in one day. Now, is that not gouging?

If you take a look at it, from September 2004 until September 2005, refineries have increased their prices 255 percent. Isn’t that gouging?

I mean, I think we all know what gouging is. What we need is a federal standard so we can hold the oil companies’ feet to the fire and make sure we know what factor goes into every gallon of gasoline, so at least the American public will have some transparency and get a fair shake on what goes into a price of a gallon of gasoline.”

Next up:

New York State law prohibits price gouging during a state of emergency. The law specifically provides that, in order to prevent any party from taking unfair advantage of consumers during an abnormal disruption of the market, the charging of "unconscionably excessive" prices is prohibited.”

I like that one the best because it is by the former Attorney General/Governor of New York, Eliot Spitzer. Did he wonder about price gouging as he paid all those ladies of negotiable morality?

And finally this one from the very accurately named blog, Neutral Source:

There is no objective definition. Economists–who specialize in price theory and the behavior of markets and can study these things ad nauseum–have no definition for it, either. In fact, economists have avoided the term as if it were a social disease. A review of all the microeconomics textbooks on Neutral Source’s bookshelf reveals that none have as much as an index entry.”

Price gouging, like porn, is in the eye of the beholder. One thing everyone agrees on about it is that it is always committed by someone else.

For businesses price gouging is "when my competitor gets away with charging more than I thought to charge."

For the general public, price gouging is when a company that I don’t work for or have investments in is charging me too much. Profits are when my company is making enough money to not lay me off.

Actually addressing this problem would involve fundamental changes in our system that are much needed but which no one is willing to actually contemplate. Instead we will get more of this Kabuki Theater. The next act will come when the oil companies declare their quarterly earnings. This will be followed by bi-partisan denunciation of  their “excessive profits” and a number of bills will be proposed which will go nowhere.  Then the oil companies will attempt some sort of PR move to show that they are really nice guys and that will be that.

 

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Be afraid: Rep. starts congressional ‘Media Fairness Caucus’

From my blog at EmediaVitals:

Congressman Lamar Smith (R-Idiocy) believes the press is biased and doesn’t represent the values of most Americans. Reasonable people could disagree on this but it’s certainly not an unusual or insane point of view. What is insane is Smith’s solution. The Media Fairness Circus, er, Caucus: “will encourage fairness and balance in reporting, while calling attention to biased coverage in a fair and reasonable way. By bringing attention to media bias and promoting an open dialogue between members of the media and elected officials, we plan to remind the media of their profound obligation to provide the American people with the facts, and not tell them what to think.

Read the rest here at EmediaVitals.

penguin-sealIt is worth noting that this level of stupidity isn’t limited to the legislative branch. Today, President Obama signed a bill promoting free press around the world. The bill was named after slain journalist Daniel Pearl. Here’s the kicker: Press access to the signing was restricted.

The ceremony on Monday raised some eyebrows as well because the White House restricted media access as the president signed a free press bill. The event was open only to a pool of reporters and photographers who report back to their colleagues. It also came at a time when Mr. Obama’s administration is seeking to force a New York Times reporter, James Risen, to testify about his sources for a book in which he reported on a secret effort to undermine Iran’s nuclear program.

 

CRY HAVOC, AND LOOSE THE PENGUINS OF IRONY!!!

Idiots, Damn Idiots and Sarah Palin

“It’s unbelievable. Unbelievable. No administration in America’s history would, I think, ever have considered such a step that we just found out President Obama is supporting today. It’s kinda like getting out there on a playground, a bunch of kids, getting ready to fight, and one of the kids saying, ‘Go ahead, punch me in the face, and I’m not going to retaliate. Go ahead and do what you want to with me.'” — Sarah Palin on the Obama administration’s new nuclear strategy.

If you believe the NYTimes that policy says,

“For the first time, the United States is explicitly committing not to use nuclear weapons against nonnuclear states that are in compliance with the Nuclear Nonproliferation Treaty, even if they attacked the United States with biological or chemical weapons or launched a crippling cyberattack.”

In other words we’re limiting ourselves to only using conventional weapons to bomb them back into the stone age. In case you weren’t aware of this – we have conventional weapons with as much explosive power as the bombs dropped on Hiroshima and Nagasaki. BTW, there’s an intentional loophole in this policy that still lets the US do whatever it wants.The policy explicitly excludes North Korea, Iran and other “outlier” nations which have violated or renounced the main treaty to halt nuclear proliferation.

The Prez had the comeback of the day: “I really have no response. Because last I checked, Sarah Palin’s not much of an expert on nuclear issues.”

Weekly round-up of business and idiocy news

penguin-seal

10 Worst Marketing Blunders of 2009

1) NBC GOES ALL LENO ALL THE TIME

Edsel … New Coke … Lenovision.

NBC has joined the immortals of marketing stupidity. This year the molting peacock network and president Jeff “Have They Fired Me Yet?” Zucker decided to turn five of the primest pieces of prime-time real estate — the hour between 10 and 11 PM from Monday through Friday — into the Jay Leno hour.

The result? A 28% drop in viewership (through mid-November). This has not only killed network revenues but done in affiliates who have no lead-in for their late news casts.

Despite this, Jeff “10% Of Americans Are Unemployed and I’m Not?” Zucker recently said that all is going according to plan. “Right now, in terms of its performance on the television network, at NBC, in terms of ratings it’s doing exactly what we thought it would do.” Comcast recently bought NBC in what must have been an attempt to copy the government’s cash for clunkers program. Comcast shareholders can now only hope they are being lied to. The worst case scenario is that Mr. Z believes what he is saying.

On the plus side:

  1. It is now possible to buy every ad slot during the Leno show for less than the cost of a house in Detroit.
  2. The federal witness protection program is using guest slots to hide people.

2) TIGER, TIGER BURNING BRIGHT

(Originally #9 — Who knew?)

Because I have a really limited imagination I thought the big celeb marketing mishap story of the year would be Michael Vick’s failed attempt to become a spokesperson for PETA. Then along came Tiger who prefers women with bad nose jobs to the Swedish bikini model he is actually married to. The story broke on Nov. 27th, when Mrs. Woods apparently decided to prove her own golfing expertise. This was unfortunate for Accenture which two days earlier had kicked off its annual Tiger campaign. A print ad which ran in the Nov. 30th Wall Street Journal featured Tiger Woods walking in the rough under the headline: “The road to high performance isn’t always paved.” And watch out for the trees and fire hydrants. Accenture has since declawed its Tiger connection.

UPDATE: File this under “Pull the other one, it’s made of wood.”

“We decided several months ago to discontinue Gatorade Tiger Focus, along with some other products to make room for our planned series of innovative products in 2010,” Gatorade spokeswoman Jennifer Schmit said in an e-mailed statement.

3) BANKERS CUT BONUSES, INCREASE SALARY & BLAME JESUS

First the banking industry made a big show of cutting the obscene bonuses it was paying itself for going on the dole. Meanwhile they hoped no one would notice the allegedly eliminated bonuses were now being paid as plain old salary.

But wait … that’s not all!

Apparently still feeling that their efforts to destroys the economy were still underappreciated, bankers started claiming Jesus wanted them to do it.

“The injunc­tion of Jesus to love others as our­selves is an endorse­ment of self-​interest,” Goldman’s [inter­na­tional adviser Brian] Grif­fiths said Oct. 20, his voice echo­ing around the gold-​mosaic walls of St. Paul’s Cathe­dral, whose 365-feet-high dome towers over the City, London’s finan­cial dis­trict. “We have to tol­er­ate the inequal­ity as a way to achiev­ing greater pros­per­ity and oppor­tu­nity for all.”

How much LSD do you have to take to interpret Scripture this way? However much it is, it is certainly being passed out at all the best financial institutions. Two weeks later, Barclays CEO John Varley spoke at the venerable St. Martin-in-the-Fields and tried to wrap the Bible around his bonus.

“There is no conflict between doing business in an ethical and responsible way and making money. We make our biggest contribution to society by being good at what we do. Profit is not satanic.”

I guess it all depends on who gets to determine how we define ethical and responsible. Perhaps Varley could have gotten away with this specious argument had he not added this gloss to the text after the service: “Is Christianity and banking compatible? Yes. And is Christianity and fair reward compatible? Yes.” (Not a good sign when a banker can’t even get his verb and subject numbers to add up.) Hey John, can we parse the word “fair” for a moment?

I believe the renowned 20th century theologian Ray Price put it best when he asked, “Would Jesus wear a Rolex on His television show?”

4: GM EXPLAINS AWAY ITS “LITTLE PROBLEM”

In the face of the greatest single corporate collapse in the history of the world, GM rolled out an ad that inadvertently explains the company’s failure.

It is a veritable symphony of weasel words.

Let’s be completely honest, no company wants to go through this.

By the end of that first sentence it is clear this ad has no intention whatsoever of living up to that initial clause. You can tell because the final pronoun is never made specific. That “this” covers billions of sins. It implies we all know what has happened without saying what that was. It is everything to everyone and thus means nothing. Is “this” an utter failure of leadership? Or is it an inability to have even the vaguest understanding of the needs of the marketplace? Sadly, I suspect “this” is “an economic calamity no one could have foreseen” – the preferred phrase of everyone from Alan Greenspan to, well, the Detroit-based car makers. There is no taking responsibility anywhere in this ad just as there has been no taking responsibility at GM for decades. (Read more here)

5) VOGUE: BLACKFACE IS THE NEW BLACK

Vogue The October issue of French Vogue had a photo spread of the very Caucasian Lara Stone painted head to toe in dark make-up. Vogue went with the old “I’m sorry if you found my words insulting” defense and told the Daily Mail “it was unaware it had caused offence, but said it could not give any further comment.” (Worth noting: Italian Vogue’s issue for the same month was filled with actual Black women.) In a keeping up with the KKK move inflight magazine EasyJet ran a photo spread featuring brooding generic models dressed in black POSING IN FRONT OF BERLIN’S HOLOCAUST MONUMENT.

Fortunately for me marketers just can’t seem to figure out that Nazi = Bad. This years examples:

LATE BREAKING STUPIDITY UPDATE: NYT runs gift guide with special section devoted to:

“Somali fashion, do-it-yourself henna kits, children’s books that draw inspiration from the lives of Barack Obama and Sonia Sotomayor: it’s not hard to find gifts created for and by people of color this holiday season.” (emphasis added)

Why it’s almost like they’re real people!

6) CHOCOLATES SHAPED LIKE PRESIDENT OBAMA & MORE

CandyExpress said its commemorative Barack Obama heads would only be available for a limited time, unfortunately it wasn’t limited enough. Off the top of my head I would say there are three things Mr. Obama should not be used to advertise: Chocolate, fried chicken (a German company did it), watermelon (that’s a yet). However, the Russians came up with a bunch of things I’d never thought of. They used our President to advertise a tanning salon, a dental clinic and pre-packaged ice cream with the slogan “Everyone’s talking about it: dark inside white!” The bars have a chocolate-flavored center embedded in a layer of vanilla.

Obama Daughters DollsHowever these are just idiocy, the sheer stupidity award goes to Beanie Baby maker Ty. First they decided to sell two new dolls named Sweet Sasha and Marvelous Malia. Then they tried to deny they were named after America’s First Kids.

“[We] chose the dolls’ names because “they are beautiful names,” not because of any resemblance to President Obama’s daughters, said spokeswoman Tania Lundeen. “There’s nothing on the dolls that refers to the Obama girls,” Lundeen said. “It would not be fair to say they are exact replications of these girls. They are not.”

Sorry dear, but in order to get away with a lie like that you have to be a bank.

7) STUPIDITY? THERE’S AN APP FOR THAT

The word of the year really should have been app. The ubiquitous iPhone has spawned an industry of companies trying to market their wares by providing allegedly useful and/or humorous apps. To paraphrase Pogo, this confronted Pepsi with an insurmountable opportunity. The company released an app called Before You Score for its Mountain Dew AMP brand. The app gives you 24 different types of women (sorority girl, etc.) and offers “appropriate” pick-up lines for each type and other similar information.

Not to be outdone, LawFirms.com, a legal referral site, decided to get attention with a campaign featuring the (fictitious) app iCoyote. It “packs all of the features of a real immigrant smuggler into the iPhone. Using GPS, navigate through the patrol packed desert without worrying about that pesky Border Patrol.”

The app included a variety of features such as:

  • iWife. It “will take care of finding marriage prospects for you. Aggregating and analyzing data from a variety of online sources [to] match you up with only the most promising US Citizen candidates.”
  • iLawyer. “Homeland Security is Cracking down. Not to worry. With iLawyer, you can find an attorney to convince the immigration court to grant Asylum Protection. A Green Card is a finger swipe away.”
  • Weather Monitors. “The desert can get hot, and trying to cross it when it’s 120 degrees is not fun. Get up-to-date weather forecasts to pick the right time and ensure your trip to the US is comfortable and fun-packed.”
  • City Statistics. “San Antonio? Albuquerque? Tucson? San Diego? Not sure which is best? Get unemployment statistics, current average wages, cost of living expenses and more. Get the job you want, at the right wage, tax free!”

8 AMERICAN GIRL SELLS “HOMELESS GIRL” DOLL

Your child can learn that the homeless are just like real people once you spend $95 to buy her a “less fortunate” playmate for her other American Girl doll(s). The latest addition to the American Girl line of how-do-you-justify-it-ly expensive dolls is Gwen Thompson. Ms. Thompson

wheelchair and her mother Janine fell on hard times when her father lost his job; they later lost the house as they were unable to keep up payments. Soon after, Gwen’s father left them and they became homeless the fall before the start of the book’s events. Initially, Gwen’s mother has them live in their car until the winter comes; she then takes them to Sunrise House, a place for homeless women and children. Sunrise House helps them get on their feet and eventually get a new apartment.

And should you also want to teach the kid that the disabled are people too, American Girl also sells a wheelchair for $30.

9) KFC UNDERESTIMATES OPRAH’S POPULARITY

Why would you pay to have Oprah endorse your product if you didn’t know what the result be? In May the chain formerly known as Kentucky Fried Chicken paid Ms. Winfrey to discuss its new grilled chicken on her show. (This is part of an ongoing effort to rebrand KFC as someplace that serves something besides FC. By the time it’s over KFC will be Rhode Island Clam Shack. But I digress.) In addition to giving product to her audience — and how pissed were they? Other folks got a new car and they get a food experiment – viewers could go to a website and download a coupon for up to four free two-piece chicken meals with two sides and a biscuit. If there’s one thing the US loves more than Oprah, it’s Oprah and free food.

You’ll never guess what happened. OK, so maybe you will.

Several bajillion people downloaded the coupon and sprinted to the nearest KFC. Well, the food disappeared faster than a dollar bill on the floor of the Senate. As a result somefranchisees started refusing to accept the coupon, some told people the promotion was over for the day, some quickly pointed to the “while supplies last” clause, the more creative said that coupons with barcode numbers ending in “1234” are not valid. Look closely at the barcode below to see what that meant.

All this brought new meaning to the chain’s horrible new tagline: “Unthink What You Thought About KFC.”

Another chain, El Pollo Loco, moved smart and fast and sent out a twitter saying they’d accept the coupons on Mother’s Day. Soon Oprah was having to apologize for the stupidity and KFC issued rain checks to the disgruntled.

All of which goes to prove that whatever you have to pay Oprah, the ROI is REAL!

10) (tie) BLACKWATER, NIGERIA & SWINE INDUSTRY LAUNCH REBRANDING EFFORTS

  • In an attempt to change all the nasty connotations that go along with being mercenaries, Blackwater Worldwide changed its name to Xe. That’s pronounced zee, as in “zee idiots in marketing thought of it.”

Blackwater president Gary Jackson said in a memo to employees the new name reflects the change in company focus away from the business of providing private security. “The volume of changes over the past half-year have taken the company to an exciting place and we are now ready for two of the final, and most obvious changes,” Jackson said in the note.

That exciting place seems to include a lot of lawsuits.

“At international airports, in trains, in shopping malls, and almost everywhere, every Nigerian is a marked person,” Dora Akunyili, information minister and self-styled chief image maker said at the launch of the re-branding campaign this week. “We are pulled aside for questioning. We are seen as potential drug pushers or fraudsters. We are unfortunately denied the benefit of the doubt.”

  • Swine flu is no laughing matter. Especially if you’re the American Pork Association. They went into overdrive screaming about how it was hurting their sales and enlisted Iowa Sen. Tom Harkin who constantly referred to the “so-called swine flu.” Unfortunately humor trumps branding every time. Thus we got headlines like:

“We will call it Mexico flu. We won’t call it swine flu,” Deputy Health Minister Yakov Litzman, a black-garbed Orthodox Jew, told a news conference Monday, assuring the Israeli public that authorities were prepared to handle any cases.

CIO writer and friend Al Sacco came up with this: Swine flu isn’t a scary enough name. It needs a slogan, too: “Pork Plague, the (Other) White Death,” for example.

DISHONORABLE MENTIONS

AMAZON DELISTS GAY AND LESBIAN BOOKS

The online retailer blamed an “employee in France” for a “software glitch” which oddly delisted gay and lesbian themed books from its search listings. (Example: Annie Proulx’s Brokeback Mountain vanished, but not her book The Shipping News in which all the sex is hetero.)

Amazon managers found that an employee who happened to work in France had filled out a field incorrectly and more than 50,000 items got flipped over to be flagged as “adult,” the source said.

CRAIGSLIST CEO SAYS SITE HAS NO SEX RELATED ADS

“I would not describe any section of our site as ’sex related,’ ” [Craigslist CEO Jim] Buckmaster wrote in response to a series of e-mailed questions from the Globe. He acknowledged that Craigslist offers an “erotic services” section that should not include more than “legitimate escort services, sensual massage, exotic dancers, etc.,” but said that offers to exchange sexual favors for money are “strictly prohibited” and removed from the site.

SPECIAL PENGUIN OF IRONY CITATION:

THE WISCONSIN TOURISM FOUNDATION
had to change its name to the Tourism Federation of Wisconsin

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BONUS: A few other totally wrong products from the year

Congress waffles in face of national Eggo shortage

eggohide1Speaker of the House Nancy Pelosi  is calling for swift action in response to a national Eggo frozen waffle shortage. In a speech today at the International House of Pancakes, Pelosi (DNot Amused) said the nation could not wait while the nation’s children were forced to pick something else for breakfast.

“This poses a threat to the entire educational system,” she said. “The time lost to choosing another breakfast food will cause massive delays of school start times which could snowball through the entire school day.”

The issue of how to handle the shortage, expected to last until at least next summer, has further polarized an already divided, split, segmented and bisected Capital Hill.

Senate Minority Leader Mitch McConnell, (R-Cranky), accused the Obama administration of having a socialist Eggo agenda that posed a threat to national security and the economy. “Eggo! Al Qaeda! Dow Jones! Eggo! Al Qaeda! Dow Jones! Eggo! Al Qaeda! Dow Jones!” he said, until Senate Minority Whip Jon Kyl (R-To The Right Of You No Matter What) whacked the back of his head.

Earlier in the day, McConnell addressed the issue on a Fox News special, French Toast Sticks: Threat or Menace? At that time McConnell blamed the liberal media before offering to wipe some syrup off the chin of host Glenn Beck.

Pelosi said she would consider a bailout for the waffle industry and a public option for either butter or margarine. In a move widely seen as an attempt to placate moderate Democrats she promised there would be no government mandate for syrup.

Pelosi shattered any possibility of bipartisanship when she decried Republican attempts to link the crisis to Rep. Barney Frank’s waistline. Frank (D-“Those” People) defended himself by saying he owed his chubbiness to Dunkin’ Donuts. “The Massachusetts’ state constitution requires every resident to start the day with an extra huge coffee, regulah, and the donut of his or her choice.” Frank, who has an aide bring him his daily serving,  acknowledged that he may have a donut problem. “I don’t care if it’s sprinkles or coconut or icing,” he said. “But it BETTER HAVE SOMETHING!”

In an unprecedented move, the Obama administration offered a straight-forward opinion on the issue. When asked about the shortage First Lady Michelle Obama sighed, rolled her eyes and made us all feel silly for bringing up the issue in the first place. Later, she was crowned queen of Europe. Her husband is reported to have done something, too.

The shortage is a result of problems at Kellog’s Atlanta and Rossville, Tenn., plants. Eggo production won’t return to normal until it until the middle of 2010, said company spokeswoman Kris Charles. Already customers are noticing near-empty Eggo shelves on the freezer aisle at many grocery stores. This has scared many shoppers until they noticed the store brand frozen waffles.

If Obama can win a Nobel for not being Bush, why can’t I?

What did this year’s Nobel Peace Prize winner spend today doing? Deciding how many troops to send into combat.

Mrs. CollateralDamage called it this morning: Obama got the Peace Prize for being anyone but GW. It is an absurd award. The President, as he himself would probably point out, has yet to do anything to deserve it. This one is even sillier than the one they gave to Al Gore. Or, as Mrs CD put it, “I wasn’t George Bush last year, why didn’t I win?

I do not mean to blame my President for this. It is entirely the Nobel committee’s silliness.

Tom Lehrer once said that irony died when Henry Kissinger won the 1973 Nobel Peace Prize.  This one is light years better than that.