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.

 

The Iraq War: 10 Lessons Learned During My Brother’s Deployment

1: I can hold my breath for six months. It’s not that hard, really. I just inhaled when my brother shipped out and exhaled again when he returned for R&R. I did it again when he went back until he returned from his tour. This is a convenient literary description of what it felt like – but in my memory it is the literal truth. I know people who’ve done it for 15 months, several times.

2: How to listen to the news. A mental flow chart I followed whenever I encountered any reports about Iraq. An answer of “that’s not my brother” at any step allowed me to return to my daily life.

  • Has somebody died?
  • Iraqi or American?
  • Civilian or military?
  • Was it someone in the Army?
  • What part of the country?
  • Is this near Fallujah?
  • Is it my brother?

When I reached that final question, I felt relieved and then horrible. I knew my reprieve was someone else’s loss.

3: What to send. Batteries. Hot sauce – MRE’s are bland. Hard candy. Chewing tobacco – it’s a form of currency. DVDs. Baby wipes – help people clean off when they’re in the field. My son sent some of his toys and stuffed animals to give to Iraqi kids.

4: What not to send. Don’t send chocolate. It will likely melt during shipping because of the temperatures in Iraq. There have been many reports that the military is trying to develop a chocolate with a higher melting point. Officially you’re not supposed to ship porn, alcohol, and/or anything with pork in it. While there are serious doubts as to whether or not anyone actually checks for these things, people at home disguise them anyway. A friend of my brother’s got some mouthwash in a box from home, screwed the top off and took a swig out of it. He spit it out and said in total surprise, “It’s mouthwash!”

5: Nothing bigger than a shoe box. That’s the optimum size for shipping. Anything bigger than that will take forever to get there. For some reason speed of delivery mattered even when he was going to be there for a year.*

6: The USPS is very helpful. When shipping overseas you have to fill out one of two different customs forms depending on the weight of the package. I was always filling out the wrong one. No matter how long the line behind me, when the clerk saw the address on the package he or she invariably said something kind and didn’t mind waiting while I filled out the right one.

7: People are very kind. You send things because there’s nothing else you can do. I asked other people to send things, too. And they did. Lots of things: packages and dozens of birthday and Christmas cards and prayers. Always prayers. You send those, too, because there’s nothing else you can do.

8: I don’t care what you think about the war. Before you tell me that, tell me if you’ve had someone over there. If you know what that constant dread is like or what it’s like to be terrified when the phone rings late at night, then I’ll listen to what you have to say. I’ve disagreed with people who’ve been through this, but I’ve never argued. We have too much in common. It’s irrational, but I think we are the only people who should get to discuss the topic. Anyone else – even the ones who agree with me – I tend to view as a clueless fool.

9: Many people have it worse. And it’s not just the families that have had someone killed or injured. He is my brother but he is Stacy’s husband and my parent’s child. The times they were awake at 3 AM were much darker than the times I was.

10: I am a hypocrite. If truth is the first casualty of war, then the first truth to die is the fact that your opponent is human, too. I passionately believe that all human lives are equal. For the entire year my brother was over there I didn’t care how many Iraqis died or what else happened to them. Now that he is back, I am compassionate again.

 

*This was written in 2005. This size restriction is no longer accurate.

Rebranding America

A post from Marketing 2.0 where I am also a contributor:

I cannot think of another brand that has had the total image change the US is attempting. It’s like trying to turn the Pinto into a Volvo. There’s no doubt that we need a rebranding. While there are no world-wide poll numbers on dissatisfaction with George W., it is safe to say they are at least as low as they are here at home.

Cynics will tell you — not incorrectly — that branding is all about image: New chrome, new font, new scent, new claims. The cynics are correct because they have seen this happen with repeatedly. (My favorite example: Anyone actually believe BP as an environmentally friendly oil company?)  (Read the rest by clicking here)

IRAQ: My 10 Lessons Learned

1: I can hold my breath for six months. It’s not that hard, really. I just inhaled when my brother shipped out and exhaled again when he returned for R&R. I did it again when he went back until he returned from his tour. This is a convenient literary description of what it felt like – but in my memory it is the literal truth. I know people who’ve done it for 15 months, several times.

2: How to listen to the news. A mental flow chart I followed whenever I encountered any reports about Iraq. An answer of “that’s not my brother” at any step allowed me to return to my daily life.

  • Has somebody died?
  • Iraqi or American?
  • Civilian or military?
  • Was it someone in the Army?
  • What part of the country?
  • Is this near Fallujah?
  • Is it my brother?

When I reached that final question, I felt relieved and then horrible. I knew my reprieve was someone else’s loss.

3: What to send. Batteries. Hot sauce – MRE’s are bland. Hard candy. Chewing tobacco – it’s a form of currency. DVDs. Baby wipes – help people clean off when they’re in the field. My son sent some of his toys and stuffed animals to give to Iraqi kids.

4: What not to send. Don’t send chocolate. It will likely melt during shipping because of the temperatures in Iraq. There have been many reports that the military is trying to develop a chocolate with a higher melting point. Officially you’re not supposed to ship porn, alcohol, and/or anything with pork in it. While there are serious doubts as to whether or not anyone actually checks for these things, people at home disguise them anyway. A friend of my brother’s got some mouthwash in a box from home, screwed the top off and took a swig out of it. He spit it out and said in total surprise, “It’s mouthwash!”

5: Nothing bigger than a shoe box. That’s the optimum size for shipping. Anything bigger than that will take forever to get there. For some reason speed of delivery mattered even when he was going to be there for a year.

6: The USPS is very helpful. When shipping overseas you have to fill out one of two different customs forms depending on the weight of the package. I was always filling out the wrong one. No matter how long the line behind me, when the clerk saw the address on the package he or she invariably said something kind and didn’t mind waiting while I filled out the right one.

7: People are very kind. You send things because there’s nothing else you can do. I asked other people to send things, too. And they did. Lots of things: packages and dozens of birthday and Christmas cards and prayers. Always prayers. You send those, too, because there’s nothing else you can do.

8: I don’t care what you think about the war. Before you tell me that, tell me if you’ve had someone over there. If you know what that constant dread is like or what it’s like to be terrified when the phone rings late at night, then I’ll listen to what you have to say. I’ve disagreed with people who’ve been through this, but I’ve never argued. We have too much in common. It’s irrational, but I think we are the only people who should get to discuss the topic. Anyone else – even the ones who agree with me – I tend to view as a clueless fool.

9: Many people have it worse. And it’s not just the families that have had someone killed or injured. He is my brother but he is Stacy’s husband and my parent’s child. The times they were awake at 3 AM were much darker than the times I was.

10: I am a hypocrite. If truth is the first casualty of war, then the first truth to die is the fact that your opponent is human, too. I passionately believe that all human lives are equal. For the entire year my brother was over there I didn’t care how many Iraqis died or what else happened to them. Now that he is back, I am compassionate again.

Actor’s death makes White House postpone launch of PR campaign about prescription drug abuse

The death of actor Heath Ledger prompted the White House to postpone President Bush‘s event on Wednesday promoting an ad campaign aimed at preventing prescription drug abuse.

Notable because it may be the only time in seven years the president passed on getting PR mileage from a tragedy.

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War On Terror brand suffers major setback as UK ends partnership

File under: Declare victory and go home.

The words “war on terror” will no longer be used by the British government to describe attacks on the public, the country’s chief prosecutor said Dec. 27. Sir Ken Macdonald said terrorist fanatics were not soldiers fighting a war but simply members of an aimless “death cult.” The Director of Public Prosecutions said: ‘We resist the language of warfare, and I think the government has moved on this. It no longer uses this sort of language.” … His remarks signal a change in emphasis across Whitehall, where the “war on terror” language has officially been ditched. Officials were concerned it could act as a recruiting tool for Al Qaeda, which is determined to manufacture a battle between Islam and the West.

NO WAR ON TERROR? But what brand will you use to scare the electorate with????

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