Market Power

Conservative Rock Songs

Alex at Marginal Revolution and the fellers at Fraters Libertas have some takes on the top 50 conservative-themed rock songs.  Maybe I missed it, but why hasn't anybody mentioned "We're not Gonna Take It" by Twisted Sister?

we've Got The Right To Choose And
there Ain't No Way We'll Lose It
this Is Our Life, This Is Our Song
we'll Fight The Powers That Be Just
don't Pick Our Destiny 'cause
you Don't Know Us, You Don't Belong

Perhaps that's more libertarian than conservative.

Causation or Correlation?

The Cubs have actually won their last two games.  Now they stand at 7 and 21 for the month of May.  Simply put, the Cubs have been bad - even wretched.  The Cubs' owners, the Tribune company, have also been "naughty:"

Moody's Investors Service downgraded Tribune debt two notches, to Baa3—the last stop before non-investment grade, or "junk," status—and warned that if the company completes the buyback in full, "a non-investment-grade rating is likely."

Tribune officials confirmed that the company expects its debt ratings will fall to junk levels as a result of the buyback.

Like father, like son?

The History of Heavy Metal

VH1 recently aired a series "Heavy:  The Story of Metal."  It traces metal music from its roots in Black Sabbath and Led Zeppelin through the hair metal music of Los Angeles.  While mostly nicely done, it left some things to be desired.

1. In discussing metal music, you simply cannot ignore the German bands, namely the Scorpions and Accept, and artists such as Michael Schenker.  Members of Anthrax (coming to Mankato in July!) have mentioned that their brand of speed metal was influenced by the Accept song Fast as a Shark.
2. In discussing metal music, you simply cannot ignore the Canadian bands such as Rush and Triumph.  Sure, we can certainly discuss whether either of these bands should ever be considered metal (Rush, maybe during their pre-A Farewell to Kings days.  Triumph, no), but they were important influences in metal music, especially Rush.

The most interesting thing I learned:  the members of Judas Priest once wore flowing silk gowns in their concerts.

Was He Listening to Ozzy or the Priest?

Crazy Train is one of my all time favorites and Metal Gods is always a good listen.  But this is just too weird:

In Red Deer, Alberta, in April, Jesse Maggrah, 20, listening through earphones to heavy-metal music while walking on Canadian Pacific Railway tracks, was hit from behind by a train moving at about 30 mph, but he survived. In his hospital bed (broken ribs, punctured lung, other injuries), Maggrah said he remembers the immediate aftermath: "I thought, 'Holy crap, dude, you just got hit by a train.'" "Maybe the metal gods above were smiling on me, and they didn't want one of their true warriors to die on them." (Edmonton Sun, April 18, 2006)

I wonder if he gave his doctors the Dio salute when he came to and was asked his condition.

My guess is that he visited this site and download this blogger's former band's rendition of Crazy Train or Bark at the Moon and was, simply, tranced.

Living Wages for Some?

Chicago may become the first city in the nation to require "big box" retailers like Wal-Mart or Home Depot to pay employees a "living wage" of at least $10 an hour plus $3 an hour in benefits.    

So far, 33 of 50 City Council members have signed on to the proposed ordinance — more than enough to pass it, perhaps as soon as next month.

The bill would affect only stores that have at least 75,000 square feet and are operated by companies with at least $1 billion in annual sales, allowing smaller retailers to continue with the state minimum wage of $6.50 an hour.

That is from this New York Times article.  The usual job loss of low skilled workers and capital-for labor substitution (such as more unmanned checkout counters) will probably occur in the big box stores.  What could be some of the effects of the 75,000 square foot requirement?

1. Smaller stores being opened.  What would the big box retailers do with the larger stores that already exist? Would stores be able to shutter off parts of their stores to get under the 75,000 requirement?
2. More numerous stores.
3. Make such stores more crowded with less space in aisles

Any other ideas?  If this does become legislation, does it much of a chance of being upheld in the court system?

HT to Bill Sjostrom at Atlantic Blog

Congratulation, Carl

Former student Carl Edwards finally got his first win of the year by taking the checkered flag at the Carquest Auto Parts 300.  It's his first victory in either a Busch Series or Nextel Series Cup race this year.

The Charcoal Market

The charcoal industry is dominated by two companies, Kingsford and Royal Oak.  Correct me if I'm wrong, but it seems the industry also has a competitive fringe, at least at the retail level, with many producers of hardwood (lump) charcoal and many stores carrying their own brand.  According to this article, environmental regulations have caused the industry to consolidate.

He is one of the few small, independent charcoal producers left. The charcoal industry has consolidated to the point that nearly the entire market is split between two names: Kingsford and Royal Oak. Recent tighter rules on smoke mean charcoal kilns are no longer Missouri's environmental embarrassment. But the new rules have forced many smaller operators out of business.

Grilling and Chilling

It's Memorial Day weekend here in the states, the unofficial start to the grilling season here in Minnesota.  So, in celebration I share with you, PowerReaders, my grill, my fuel, and a NY Times column entitled "Pimp my Grill."  I love the pciture in the New York Times article.

The Lack of Pricing for Bird Flu Treatments

Why aren't market prices being used as a solution to the avian flu vaccine problem?

Neither one recommends any use of the price system to discriminate and determine who should receive the vaccine. I must say, I really doubt that using the price system to allocate tamilflu vaccines to their most highly valued use would be acceptable politically. But I don't understand why it isn't being incorporated somehow.

My guess is that there is a deep feeling that people have a right to health care.  But what is health care?  Does this mean we have a right to get a multivitamin and a supply of bandaids?  Does it mean we have a right to have the most, um, cutting-edge surgical techniques employed on us if we wish/choose?  If we say that we have a right to health care, does that mean that somebody has to be forced to give it to us if nobody is willing, freely and voluntarily, to give it to us?

There almost seems to be a dirtiness associated with charging people for things that they think they have a right to.  But health care, like education, is not a public good.  No doubt externalities are present in some forms of health care, but health care is neither non-rival nor non-excludable. 

Prices are compensation to resources that have alternative uses.  They are also extremely powerful information transmitters that helps steer resources to their most-valued use.  The lack of a functioning price system for avian flu vaccine just ensures that there won't be enough to go around if a nasty epidemic does occur.

Why I'm Often Extremely Dismissive of Any Price Gouging Claims

When I hear politicians and others claim that refiners, oil companies, etc. are gouging consumers, I am normally very suspicious of these claims.  My guess is that consumers have too many options at their disposal for any of these producers to engage in gouging, whatever gouging is.  The Washington Post has an article that backs up my guess:

Like a general mapping out a plan of attack, Andy Barlow of Germantown checks out an online service to scrutinize where the cheap gasoline can be found before getting behind the wheel.

Aman Amin, a gas station owner in Fairfax City, makes a daily assessment of his competition to ensure his gas prices are among the lowest in the area. And in the mountains of Western Maryland, the Stonebow Inn has launched a campaign to lure guests with the promise of free gas.

Drivers are trading tips in chat rooms and signing up for gas rebate cards. Amusement parks and museums are offering discounted admission to customers showing gas receipts. An oil company is rolling out "bulk-buy" programs that will let consumers hedge against future price spikes. Even an online poker site is joining in the movement.

The end of the next paragraph caught my eye.

"When prices go up, you're going to see some interesting things," said Tom Kloza, chief analyst for the Oil Price Information Service in New Jersey. "Saving money on gas is something that's just magical in this country. Rational thought just doesn't apply to gas."

I don't get this last statement, especially within the context of the article.  What's irrational about shopping around, checking websites like minnesotagasprices.com as a customer to find the cheapest gas and as a gas station owner to make sure you are competitive?  That sounds pretty rational to me.

Here, here, here, here, here, and here are just a few of my posts on the subject.  Here is the Oil Price Information Service website.