Great Gig in the Sky

In memory of Richard Wright.

"Gouging for greed"

The top story on the local news today was how North Carolina Attorney General Roy Cooper was issuing subpoenas to seven local gas stations accused of "price gouging" over the weekend. Cooper said that "gouging for greed will not be tolerated in North Carolina." My wife nearly got spaghetti sauce spat upon her face when I heard that comment. It is depressing that an adult in a position of authority could utter such an inane comment. It is even more depressing that there are people out there who buy this inanity and cheer him on.

More importantly, however, was the second story that showed some stations running out of gas over the weekend. The reporter in the story said that the stations had "reasonable" prices. Could there be a correlation between the first story and this one? The stations that ran out of gas tried to limit customers to $20 worth of gas. This form of rationing is apparently legal albeit less effective.

One more thing on "greed." With the recent problems in the financial sector and, of course, the gouging controversy, many pundits are talking about greed as if it is a characteristic solely of businessmen. The late Milton Friedman had the best response to this nonsense.

Who's gouging who?

Wow! I was driving home from work today and noticed that gas prices had jumped dramatically. Apparently people are panicking that Hurricane Ike will cause some serious disruptions in gasoline supplies.

North Carolina Attorney General Roy Cooper was on the news saying that gas stations will be prosecuted if they "gouge." There were people waiting in line for gas being interviewed saying that it wasn't fair that the stations were raising prices. Oh, but it's fair for you idiots to rush out suck up all the gasoline!

Here is a quote from Cooper:

"I encourage gas stations to avoid panic price increases and consumers to avoid panic fill-ups."

Words have no teeth Mr. Cooper - higher prices do. In situations like this raising prices is the best way to stop people from panicking.

What would an episode like this be without the following argument:

"That's not what they paid for it. It just seems to me they shouldn't raise (the price) until they have to pay for it"

That was someone waiting in line complaining that the station shouldn't be allowed to raise the price on gas they bought at a lower price. Oy vey! This is why a knowledge of basic economics is so important.

Stations have to make sure they have a steady supply of gasoline so that they can attract customers. If their tanks are empty they get no business (or reduced business). With the hurricane causing uncertainty around national supply chains, stations need to make sure they have some supply to last during the temporary crisis. The price they paid for a good in the past is irrelevant when it comes to decisions they need to make in the present and near future.

Phil Gramm was right for the wrong reasons - we are a nation of whiners.

Take the "gasoline shortages" quiz at CafeHayek.

Whatever

• If you are reading this then the LHC worked. You might want to keep checking, though.
• 30 nanoseconds?! But I want it now!
• The Darwin Stain
• When markets governments fail the government market must step in. "[I]t was proving increasingly difficult for Britons to get anything beyond basic dental care from Britain's National Health Service." (HT: Carpe Diem)
  
• It is a shame that this question even has to be asked
• Yeah, Google is soooo bad for consumers. Oh wait, antitrust is not about consumers.
• Wow! Is anything legal in Britain? At least you can still vote with your feet.
  

Whatever

• The inhumanity of some people
• Robert Samuelson reports on contrary evidence regarding American living standards. I think there is a lesson to be learned here about drawing conclusions from aggregate numbers in a diverse and dynamic society. (HT: CafeHayek)
• More bureaucracy, more spending, and more crony capitalism all in the name of science. I am still trying to figure out what Obama means by "change."
• When you devalue the currency, people go primitive
• Art by paint ball
• Here's an investment tip for you...stay away from renewable energy companies (Investment tips are for sarcastic purposes only. Blogger is not responsible for your money problems)
• Don't laugh, they think they are dying
• The Libertarian Party - where ex-Republicans go to get mocked
  

Un-Conventional

I didn't watch Barack Obama's acceptance speech last week and I have no intention to watch John McCain's this week. How people can get all giddy about such things is beyond me. What scares me the most is the hagiographic praise that is thrust upon these men (especially Obama). Why does it scare me? I think H.L. Mencken said it best:

"It is the popular theory, at least in America, that monarchism is a curse fastened upon the common people from above - that the monarch saddles it upon them without their consent and against their will. The theory is without support in the facts. Kings are created, not by kings, but by the people. They visualize one of the ineradicable needs of all third-rate men... and that is the need of something to venerate, to bow down to, to follow and obey."

As I said in a previous blog post, "creating myths around men who wield the power of government only distorts history and turns us into what John Adams feard - a nation of men, not of laws."

HT: Don Boudreaux for the Mencken quote.

Whatever

• The impedance mismatch between the wishes of planners and the reality on the ground. "The dirty secret of clean energy is that while generating it is getting easier, moving it to market is not."
• Government bailouts work both ways it seems. One of the big problems with this trend is that it won't be true privatization, and in a few years unfettered capitalism will take the blame.
• On Biden
• What's that old line about doing the same thing over and over again and expecting a different result?
• Andy, Fannie, and Freddie
  

Whatever

• The high price of energy is a political, not economic, problem. "Windfall" profit taxes and consumer subsidies, i.e. more politics, will only exacerbate the problem. And along with those economic inefficiencies comes corruption.
  
• Um, whoops?
• Ok, I take back what I said last week about science making Science Fiction boring
• Sometimes you win by just letting your enemies be themselves
  

Whatever

• Yes, let's give a stupid movie that will literaly have 15 minutes of fame more attention that it deserves
• Science is making Science Fiction boring
• Ah, rent seeking at its finest (pun intended, of course). So, is the problem here that businesses are lobbying those who will attain power or the power itself?
• This is why Obama was marginally appealing to me
• Man! If you can't rely on the "Republicans are in the pocket of Big Oil" shibboleth what can you rely on
  

Whatever

• Obama wants to tax (i.e., reduce) the production of and subsidise (i.e., increase) the demand for oil. People, this is not hard: reducing the supply of or increasing the demand for a good, ceteris paribus, means the price will increase. Encouraging both as a plan to ease higher prices should be a sign of insanity (or political prowess).
• What's the big deal? We weren't using the Fourth Amendment anyway.
• Oooh! LHC is sexy (in a sciency sort of way)
• An interesting video explaining why, even if you are 100% innocent, you should never talk to the police (HT: Bruce Schneier)
• I agree with Perry's comment at the end of this blog post, but it won't be long before it is considered anti-social
• More significant than the iPhone?? How dare you say such things!
• The food industry, in an effort to avoid dealing with a problem itself, calls for more regulation. "More important than the financial loss is the loss of consumer confidence," says an industry representative. Well, getting consumers confident in your product is a cost you should have to bear. Calling for government to regulate makes you sound noble, but it has the added "benefit," I'm sure, of pushing out marginal competitors.
• Don't think that raising the minimum wage had no part is bringing this and this about
  

Whatever

• This is all we as libertarians ask. Instead we get this mess. And have I mentioned that markets work?
  
• Radley Balko asks some good questions of McCain and Obama
• A "political air show" (HT: The Agitator)
  
• Cue the conspiracy nuts. First we had the "Face on Mars" now the "Footprint on Titan."
• Sanity in Singapore
• Take a deep breath -- and thank Mt. Everest?
• We need more cow bell

Big Government is Big Oil

I sent the following to the Raleigh News & Observer:

Tuesday's front page story entitled “Big Oil spends to jack up stock” scrutinized international oil companies for business decisions made with their earned revenue. I was wondering if that same scrutiny will be used to examine the expenditures of those entities that control roughly 90% of the world's proven oil reserves. I am, of course, referring to governments around the world. I am not going to hold my breath, however, because we all know that expenditures on socialistic welfare programs are beyond scrutiny, while any form of profit is per se evil.

It is ironic that the term “Big Oil” is applied to entities that are puny in comparison to those that actually control oil. In reality Big Government is Big Oil.

Here are some examples of Big Government mismanagement of oil.

The original article that I am replying to is pretty sensationalist to begin with. It is obviously trying to stir up some controversy around how oil companies disperse their profits.

What is the proper distribution of revenue? Hell if I know. But if the oil companies are making the 'wrong' decisions then profits won't be a problem for them in the future, and idiot reporters won't have to worry about writing sensationalist claptrap.

Whatever

• Just avoid smalltalk all together
• It's always fun to watch central banks blame their ineptitude on businesses
• How to stop a sequel
• Servitude is coming back into fashion. "I solemnly swear that I will never take part in any involuntary civilian service at the behest of the federal government, regardless of the consequences."
• Maybe this technology would be cost effective (i.e., profitable) if water prices were allowed to reflect reality
• A Nudge to fix the wrong problem
  

Whatever

• This is sarcasm, but the way monetary and fiscal policy in this country are run it could easily be reality
• I'm hungry for some watermelon. Could I borrow your umbrella?
• I can't wait to see the games that use these Wii attachments
• While Congress fumes about oil prices, those prices are trying to tell us something. Maybe what they are trying to tell us is that governments around the world are mismanaging oil production. Yes, I said governments. After all, 77% of proven oil reserves are controlled by a nationalized entity.
  

Whatever

• Check out the new use for the Segway (scroll down about halfway)
• Some good quotes from P.J. O'Rourke
• Ahh! So it ain't so!
• Reverse Graffiti
• And you thought a night at the opera seemed to last forever
• I knew playing Dig Dug would benefit humanity
• So, does this mean that if you vote for McCain you hate people?
• "The stimulus check was a way for some people to entertain themselves."

Money and Power

Robert Frank, in a New York Times piece (free, annoying registration may be required), spews the typical liberal pabulum regarding campaign finance reform. I won't comment on the entire piece, but I want to say something about the general theme: money corrupting politics.

Just because our representatives are elected by a majority of the population and sit in the seats of power in Washington, doesn’t make them omniscient. It is silly to believe that just because they are not influenced by money that their decisions would be more just and wise. Sure, the policies would be different, but we are still dealing with mere mortals. They would have to be experts in economics, science, law, history, medicine, technology, etc. to govern as they do now. Only if we scale down the size of government dramatically will this arrangement even be remotely possible. But, at that point there would be no need for campaign finance legislation because government would not have the heavy hand it does now nor would it have anything to sell.

But why do we need to limit contributions anyway? If we are assuming that these people we send to Washington are wise enough to determine the ‘right’ legislation if they were only free from the corrupting influence of money, why are they not wise enough now to just not be corrupted by the money in the first place? In other words, if they are so easily corrupted now, maybe they aren't fit govern at any time.

It could be said that we would want politicians to only get influence from the experts in the respective fields. But who are the experts? Do all experts agree? Who will be the arbiter if they don’t? Again, with a small government limited to a specific set of tasks, this could possibly work (I still have my doubts, however).

The other question we need to ask is how is it possible to prevent conflicts of interest? We are a nation of 300 million and we have different interests and wants. If government is reduced to a fraction of its current size this might be possible, but when government spends $3 trillion and has its tentacles in every aspect of our lives there are going to be conflicts of interest when it comes to how to spend that money and wield that power.

Lastly, I would like to comment on a specific quote in the article. After begrudgingly admitting that money can't be completely eliminated from the political process, Frank writes this: "The harsh reality is that free speech and good government are conflicting goals." When I first read that statement I had to stop and say "Wow!" Free speech is now a "goal" - not an inalienable right of the individual, mind you - a goal that can be negotiated like all other issues in government. Maybe this is why so many people want to buy influence. Maybe this is why so many people need to buy influence.

Let me use Mr. Frank's language to close: free speech and big government are conflicting goals. In fact, any individual right and big government are conflicting goals.

Solutions?

Thomas Sowell once said that "there are no solutions...there only trade-offs." We are learning that lesson good and hard today.

Little Brother

I just finished reading Cory Doctorow's Little Brother. I highly recommend it to those who like stories about technology and using technology in a clandestine manner. It reminded me a lot of a book I read a long time ago by Clifford Stoll called The Cuckoo's Egg. The books have different plots (in Stoll's book the hacker is the bad guy), but in both you get a small glimpse into the hacker culture.

Even if you don't like stories about technology, however, you should read Little Brother. It's an inspiring tale about a young man not willing to let the government get away with tyranny even if it means his own freedom.

One interesting aspect in my experience reading this book was following along with Google Maps Street View. I was able to follow the action in the streets of San Francisco (a city that I've been to twice but really didn't get to see). Try it, it's fun.

Obama on Iraq...for now

I guess I should have seen this coming. Oh wait, I did. So, for those of you who were worried that I might vote for Obama (if I was really, really forced to), don't worry.

Whatever

• All new technologies should have a Star Wars demo
• If this is a joke it sure the hell ain't funny (HT: Dispatches)
• Some sanity on 'cap-and-trade' schemes
• #51. They don't sit around reading lists about how to be successful
• Obama panders and panders and panders
  
• What can onions teach us about oil prices?