Thursday morning links

Thanks for the HEB story. I started working at my hometown HEB as a sacker when I was 16 yr old. About a year later I was a manager.

Great prices. Great customer service. Clean stores. I still buy all my groceries at my local HEB.

Unlike the government, HEB will fail and go out of business if it doesn't make wise decisions on what to buy, who to hire and who to promote. Because of that good leadership, it is prospering in a viciously competitive market.

#2 Dangerous Dean on 2017-09-07 10:19 (Reply)

Di Fi questions a catholic judge: See it is always okay for lefties to put thier ideology above the law. Most of their political gains have come from judges who freely do what Di Fi thinks the Roman Catholic would do; change the constitution through judicial fiat. In Di Fi's mind, being a Christian, automatically disqualifies you from serving on the court.

#3 B. Hammer on 2017-09-07 10:35 (Reply)

Re: Howie Carr: when does the SPLC's food drive begin?

You'd think that the SPLC could spare a few bucks from the $69M stashed in tax shelters like the Caymans to ease the suffering of those in poverty in the Houston and western Louisiana area.

But isn't the SPLC a tax exempt organization? Why do they need tax shelters?

#4 mudbug on 2017-09-07 12:33 (Reply)

Five'll git ya' ten the $69M is stashed in a way that it doesn't show up on the balance sheet. That way SPLC can continue to poor-mouth the suckers.

#4.1 BillH on 2017-09-07 12:41 (Reply)

You'd think that the SPLC could spare a few bucks from the $69M stashed in tax shelters like the Caymans to ease the suffering of those in poverty in the Houston and western Louisiana area.

Get a copy of the SPLC mailing list and send those on the mailing list a record of SPLC cash and where it is being held.

#4.2 AnnoyedCommenter on 2017-09-08 09:05 (Reply)

It's my view that most price gouging is defensible, morally.

Let's put it in 2 different perspectives:
1. The storm is coming. The store raises the price of water from $2 to $5. I look at the bottles, I take what I need. Why pay more than I have to? The gas station raises the price from $2.50 to $4. I see the prices, realize I can take 10 gallons, get out of town, and pay a lower price further away. I take what I need and skedaddle. In each case, the price increase has forced me to ONLY take what I need and leave more for others. This is the standard effect of "gouging" - it ACTUALLY HELPS more people.

2. (this I just experienced) Gas prices rise, thousands of miles from the hurricane. We see the price go from $2.35 to $2.90. People scream about "increased profits for oil companies" and "gouging because of others' misfortunes". I calmly explain something simple.
10% of the refineries were shut down, as was 15% of the CAPACITY to refine (2 were the largest in the US). The pipeline (named Colonial) from Houston to the Northeast ends 2 towns from me in Rahway, NJ. Very little gas flowing. The Northeast still needs its gas. So it is brought in from elsewhere, typically by truck or other means. This costs money.
So refineries closing represent 10-15% increase in costs due to reduction of supply, and the revised methods of delivery increase costs further. There is very little "profit" for anyone taking place. After all, even the oil companies have to pay to fix and reopen damaged refineries. So any additional 'profit' above the normal $.05 per gallon they make is re-invested in fixing what was busted up.
Morally defensible? Absolutely.

A final example is in order, though. After the storm, a house ravaged, a family in disarray, incapable of coping. The builder arrives and charges 3X the normal rate to fix the roof. This poor family can't afford it, let alone determine where to start to fix anything. The builder moves on. Morally defensible? No.
HOWEVER, when he gets his 3X rate, he calls his buddies and they come down and work because the increased pay covers their travel and lodging. Lots of these people arrive, and the clean up goes into high gear. In short order, prices fall again, and they leave.
An interesting side note - that example is from a friend of mine who went to Florida after Andrew and made quite a bit of money rebuilding. He also pointed out something. He and his friends were able to identify families in physical and financial stress. While they made their money on the jobs they got, they all took time to help out families who couldn't afford to pay. That's why, after Andrew, many areas in Florida (even those that couldn't pay the 'gouging' rates) were fixed so rapidly. Since the 'gouging' laws went into effect, Florida has had a much more difficult time fixing homes and infrastructure after hurricanes. There is no incentive for anyone to travel there to work.

#5 Bulldog on 2017-09-07 13:21 (Reply)

re gouging vs. hoarding vs. supply regulations:

Is there anything less productive to society than standing in line? Plus when you prevent prices from rising in the face of increasing demand, you send a tacit signal that supply will be available at a later date at the same price. So really what you're doing is de-incentivizing early preparation; i.e. you don't need to buy up a stock of bottled water for the season in June, that you may or may not need, since the government will "guarantee" that if it is needed, it will be available at the same price the day before the storm hits.

Same dynamic in healthcare: would you rather not get your surgery because you can't afford it or because there are no surgeons/operating rooms available?

#6 Another guy named Dan on 2017-09-07 14:57 (Reply)

re: Deforestation long overlooked as contributor to climate change

This isn't exactly new news, but it is certainly not appreciated enough. Further links on the topic:

How to fight desertification and reverse climate change - TED talk by Allan Savory in 2013

Heretical Thoughts About Science and Society - an essay by Freeman Dyson in 2007

QUOTE:

To stop the carbon in the atmosphere from increasing, we only need to grow the biomass in the soil… I conclude from this calculation that the problem of carbon dioxide in the atmosphere is a problem of land management, not a problem of meteorology. No computer model of atmosphere and ocean can hope to predict the way we shall manage our land.

George Perkins Marsh (1801-1882). He was a remarkable man. While a diplomat overseas, he traveled in areas near the Mediterranean. He saw desert areas that he knew from reading classical literature had been flourishing agricultural areas in ancient times. He wondered why, and concluded it was because humans had cut down all the trees. His inquiries led to the book Man and Nature (1864), which helped launch the modern conservation movement.

#7 The Switchel Philosopher (Link) on 2017-09-07 19:41 (Reply)

Another book about the importance of trees:

Trees are the Answer by Patrick Moore (2010, 10th anniversary edition). Dr. Moore (PhD in ecology) was a founding member of Greenpeace who later became disillusioned with the organization.

#7.1 The Switchel Philosopher (Link) on 2017-09-07 20:39 (Reply)

We hired a well-equipped company who drove 100+ miles to get here right after Harvey went over. A third of the huge live oaks in this county are down, it's a big mess. We were completely cleaned up in less than a week after the storm. A week later, there's still a long line of people waiting to get cleaned up by volunteers or cheaper local guys. There's been a controversy brewing in my little neighborhood over the "price gougers" that we hired. I notice that the 8-10 families who actually hired them were completely satisfied with the service and the price; it's only the bystanders who are shocked and dismayed. All I know is, my trees are cleaned up and I'm not burdening the severely overextended volunteer network. I'm still trying to find volunteers to bail out the frail, elderly impoverished residents who have no resources to cope with a natural disaster. The volunteers have no decent equipment, keep breaking their chainsaws, and fall out in the heat after a short while. The "gouging" professionals work like dogs and get the job done. They charge enough to buy and maintain the equipment needed to move stumps as big as golfcarts. They are motivated by profit to get here from far away on the day after the storm. The whole "gouging" argument makes me ill.

My gouging guys are finishing up here this weekend and on their way to Florida to do post-Irma cleanup.

#8 Texan99 on 2017-09-07 20:34 (Reply)

This is pretty standard experience.
People will say it's morally indefensible. There are (rare) cases where it is indefensible. Mostly, "gouging" makes perfect sense.

Above, another comment points out standing in line (rationing) is not productive. The Soviet Union kept gougers at bay in everything. The lines were awesome!

#8.1 Bulldog on 2017-09-08 13:26 (Reply)

I saw that HEB article on Facebook. They did a fabulous job here. They re-opened in Rockport less than a week after the storm, just about the first local business to open. They were the sole source of food and just about everything else here. I was extremely impressed by what the article showed about their flexible attitude to logistics in an emergency.

#9 Texan99 on 2017-09-07 20:36 (Reply)

Modernizing Saudi Arabia

The article discusses the privatization of various entities in Saudi Arabia. Privatization does not directly address the main problem facing Saudi Arabia: most Saudi citizens have a rentier ethic, not a work ethic.

Gringo's comments stopped by spam filter.

#10 AnnoyedCommenter on 2017-09-08 08:41 (Reply)

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Thursday, September 7. 2017

Thursday morning links