No Runny Eggs

Why do we have people like Ben Bernanke, people who study economics, trade and monetary policy, handling the  Nation’s economic affairs  when we could have someone like the latest Governor of New York, David Paterson.

Paterson has come out against the gas tax holiday. A position which I agree with him on. My disagreement with the holiday is based on a fear that any reduction in the price will allow Congress to think they’ve actually accomplished something to solve a long term issue. Governor Paterson’s issue is that he things the gas companies are greedy. For his evidence he points to what happened following Hurricane Katrina:

At a press conference about a personnel matter in his midtown office, Paterson told reporters to go to the oil companies and "ask them why, the week after Katrina"”the Katrina Hurricane"”August 29, 2005, ask them why the gas prices went up in that week.

“It couldn’t have had anything to do with the gas,” Paterson charged. “Because gas delivery took place three weeks before then. They sold you the same gas that was in their tank the week before at"”at some points"”10 to 15 percent higher."

Paterson thinks that because the gas was put into tanks at one price, that should dictate what price the gas should come out of the tanks.

David, have you ever been in an area prior to a hurricane hitting? If you have, you would know that plywood has this nasty habit of increasing in price right before a hurricane. That plywood didn’t cost more coming in just because the hurricane was coming but it did cost more going out. Another thing David, plywood is also rationed when a hurricane is coming. Yup, the day before a hurricane you could have bought every single piece from your local home building supply company but the day the hurricane is announced, rationing starts.

How about another example David? After a hurricane generators get more expensive. Those generators were all sitting there prior to the hurricane at the same cost but lower price than after the hurricane where the cost stayed the same but the purchase price goes up.

The point David, is that increasing prices are the mechanism that free markets use to help manage demand for products that are, or are expected to be, in short supply.

I think we should test all political candidates for their knowledge of Adam Smith’s “The Wealth of Nations.” If they fail the part about supply and demand, they don’t get to run, pure and simple.

Instituting the test may not get us any better politicians but we would at least know that they do know better and not have to wonder whether they were lying to us or just flat out ignorant.

Typical elections, especially Presidential elections, are usually focused on how to get the largest portion of the populations to vote for you.   Yes there are nuances due to the electoral system that makes a Presidential election a bit more like a bunch of individual state elections, but at a macro level, it’s still about getting more votes than your opponent.

The 2008 election, one that now appears likely to be between John McCain and Barack Obama, is shaping up to be nearly the opposite of traditional focus.   Rather than getting the most people to vote for you, the McCain/Obama contest looks to be more about getting the fewest number of people to not not vote at all or to not vote aganist you.

On the Democrat side we’ve been seeing stories for a few weeks about one camp’s voters not voting for the other candidate if they should win the nomination.   The exit polls from Tuesday’s West Virginia primary continued the trend as the AP reported:

Barely a third of Clinton supporters say they’d vote for Obama over John McCain in a November matchup. As many claim they’d vote for Republican John McCain and a quarter said they would not vote for president. If that horse race were Clinton vs. McCain, half of Obama backers say they’d vote for Clinton, about three in 10 say they’d back McCain and the rest would stay home.

On the Republican side while initially rejected, there had been a gradual acceptance of McCain as the nominee.  As various blog sites still had animated discussions about whether McCain was a conservative or if his various cross party endeavors had eliminated him from the use of the “True Conservative” moniker, most who did not originally support McCain had come to a point that they believed the greater good was served by supporting McCain. But then McCain made his environment speech in Oregon. Subsequent to that speech, the conservative blogs have become littered with comments such as:

His speech was the last straw. I am a conservative and John McCain WILL NOT get my vote. His global warming position is down right scary. I’ve tried really hard to get in the he’s “my guy” mindset and it’s just not going to happen. Every time I get close he opens his mouth.

So who will win? Well, it looks like it will be the candidate who gets the fewest of the folks who can’t stand them not to not vote for them.

Ain’t politics great!

On Wednesday, the Chicago City Council reversed its ruling  of two years ago and again allowed foie gras to be served in the city.

The ban two years ago was argued for by animal rights advocates who said the process of creating the foie gras was inhumane.   The vote to ban foie gras was passed 48-1.

Leaving the animal rights folk infuriated, the Council voted this time 37-6 to overturn the ban.

OK, truth be told, I’ve never eaten foie gras, at least that I know, so it’s not like I’m rushing to Chicago or dropping my boycott of Chicago restaurants.   No, the reason I see hope in this story is based on the Alderman’s reason for bringing the vote,

“Supporters of this legislation have accomplished their goal by raising awareness of this issue,” Tunney said in a statement. “And while I respect their viewpoint, this is clearly a matter the council should stay out of and let the educated consumer and chefs make their own menu choices.”

Most elected officials are happy to opine and weigh in on any issue presented to them. It doesn’t seem to matter anymore whether the issue is even within their constitutional purview. In fact, Congress is known for taking on nearly any topic they want by simply swiping it with the “interstate commerce” pen.

When was the last time you heard an elected official say that an issue was none of their business?

How refreshing! There may be hope after all!