A Tax on Christmas Trees?
The Obama administration has imposed a 15-cent tax on Christmas trees in order to pay for a new board tasked with promoting the Christmas tree industry.
In classic media reporting bias, Fox released this non-news article in faux outrage. The author trips over himself trying to position this as a slam on the Obama administration.
Nonetheless, the article has intermingled with tid-bits of facts a heaping dose of subterfuge. The bottom line is this, economically, the tax incidence is likely to be shared between suppliers and consumers. I don’t presume Christmas trees to be particularly inelastic, so there may not be a lot of leeway anyway.
Of course, Fox and its Conservative ilk, go on at length to marginalise government involvement in private affairs, and so when a private industry group effectively requests assistance and government agrees (and wants to do the sensible thing, which is to ensure the programme costs are covered), we hear complaints about government meddling.
Moreover, whether government assessed the fee or not, the industry would still have to pay for the campaign, in which case the costs still need to be covered.
Finally as with any advertising or PR campaign, the goal is to increase demand in order to diminish the marginal costs of operation. So, sorry, Judson Burger, you are the Grinch here.
via Merry Christmas? Agriculture Department Imposes Christmas Tree Tax | Fox News.
Eliminating Minimum Wages as a Jobs Plan?
Fox News said Cain’s opportunity zone plan risks angering unions because it would enact policies they consider bad policy, such as the elimination of the U.S. minimum wage.
Eliminating unemployment is a necessary yet not sufficient solution. We need living wages. At issue here is not whether eliminating minimum wages would diminish joblessness (increase employment); rather it is to question living standards. Implementing a policy as this would create a larger poverty class. Even currently employed workers in affected areas would suffer as they would now be competing in a race to the bottom.
via Cain to scrap minimum wage in poor areas? – politics – Decision 2012 – msnbc.com.
Skip the Lottery and Save for Retirement?
One study in Texas found that a person without a college degree spent an average of $250 per year purchasing lottery tickets. If that same person were to start an IRA or other retirement vehicle that earned a conservative average 4 percent annual return and they contributed $250 per year for 30 years, they would have $15,392 once they reached retirement age. If they did the same thing for 40 years, that number would jump to more than $25,000. If it were possible to know the rate of future inflation, the number would be much higher.
Supply and Demand?
A humourous commentary on supply and demand economics…
- Customer: $15 bucks a glass?
- Calvin: That’s right! Want some?
- Customer: How do you justify charging 15 dollars?
- Calvin: Supply and demand.
- Customer: Where’s the demand?! I don’t see any demand!
- Calvin: There’s lots of demand!
- Customer: Yeah?
- Calvin: Sure! As the sole stockholder in this enterprise, I demand monstrous profit on my investment!
- Calvin: And as president and CEO of the company, I demand an exorbitant annual salary!
- Calvin: And as my own employee, I demand a high hourly wage and all sorts of company benefits! And then there’s overhead and actual production costs!
- Customer: But it looks like you just threw a lemon in some sludge water!
- Calvin: Well, I have to cut expenses somewhere if I want to stay competitive.
- Customer: What if I got sick from that?
- Calvin: ”Caveat emptor” is the motto we stand behind. I’d have to charge more if we followed health and environmental regulations.
- Customer: You’re out of your mind. I’m going home to drink something else.
- Calvin: Sure! Put me out of a job! It’s you anti-business types who ruin the economy!
- Calvin: I need to be subsidized.
Peanut butter prices are going up
The price of peanut butter, that American lunch bag staple, is going up, The Wall Street Journal reported Tuesday. The reason: peanut prices have skyrocketed after a hot, dry summer decimated the crop.
via Life Inc. – Holy Peter Pan! Peanut butter prices are going up.
Yes, Johnny Depp will take those millions, thanks
“Basically, if they’re going to pay me the stupid money right now, I’m going to take it,” the 48-year-old star told Vanity Fair in the magazines November issue. “I have to.”
via Yes, Johnny Depp will take those millions, thanks – The Marquee Blog – CNN.com Blogs.
Netflix’ Days of Monopoly Price Premiums Are Over
“Netflix was basically a monopoly in the streaming business until about six months ago, and the effect was that content providers were underpricing their products,” said Charlie Wolf, an analyst who covers the company at Needham. On February 22nd, Amazon announced that it would stream 5,000 movies and television shows at no additional charge to customers who signed up for a Prime membership, which costs $79 a year.
via NFLX Tumbles On Qwikster Announcement; Are Netflixs Best Days Behind It?.
Abercrombie and Fitch Offers to Pay ‘The Situation’ To Stop Wearing Its Clothes
Talk about brand management: Teen apparel retailer Abercrombie & Fitch Co. is offering to pay Michael “The Situation” Sorrentino not to wear its merchandise.
Price-Gougers Hike Drug Costs During Shortage
Amid growing shortages of life-saving drugs, some back-door suppliers are capitalizing on the problem, jacking up prices for medications for cancer, high blood pressure and other serious problems by as much as 4,500 percent, a new hospital survey shows.
via Price-gougers hike drug costs during shortage – Health – Health care – msnbc.com.
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