Nothing puts me in a right, Republican rage, than McDonnell's ABC privatization plans! Governor McDonnell is pushing for the ABC stores to be privatized so that the state of virginia can make beaucoup bucks for one fiscal year and fix the transportation crisis. Don't let him do it Virginia citizens! I am all about free markets, but privatizing the ABC stores is a bad idea during difficult economic times.
The ABC stores are cash cows. In 2009, they generated about 111 million in profits which were allocated to education and the Virginia General Fund. If the government Privatizes ABC stores, they estimate that they will get a ONE TIME 500 million dollar revenue bump from selling but it is unclear how much revenue will be generated over time. So basically, Government McDonnell looks great in 2011 and is out of office before the revenue hangover hits.
I haven't seen the state publish an analysis of this issue which makes it fishy as hell. Why would you mess around with something that actually works?! And in the most difficult economic climate since the 2001 recession?
Question authority! It needs to be decided by the citizens as a referendum, not this governor.
Showing posts with label Free Market Heebie Jeebies. Show all posts
Showing posts with label Free Market Heebie Jeebies. Show all posts
Monday, August 16, 2010
Tuesday, May 06, 2008
Irrational Consumer Behavior
Today I would like to rant about irrational consumers and the economists who love them.
1. I think that mortgage firms and borrowers are equally to blame for the crisis. On one hand, you have mortgage companies that makes money off of lending money to as many customers as possible. Then you have borrowers who want to pay as little as possible and who opted for adjustable rate mortgages or subprime loans which are very high risk. You have consumers that can barely pay and little or no penalites to the mortgage companies that finance these loans. Now you have state governments trying to intervene in real estate markets to reduce the number of foreclosures. Stupid consumers! Stop buying crap you can't afford! Stupid greedy mortgage firms, you should have done your due diligence! Dumb state governments, let them eat cake!
2. I don't understand consumer behavior at all you can eat breakfast buffet lines. I don't understand why people pile a ton of food on one plate. I mean they can theoretically go back for more. Why do consumers insist on piling eggs, bacon, pancakes, fruit, syrup, toast, oatmeal, more pancakes and crab legs (just kidding) all on one plate. Are they that lazy they can't walk up to the buffet to reload? I have a pet theory. They think if they don't get it now, it could be gone, so why don't they take it ASAP. They are inherently selfish and don't want to share the syrup. Thats my unscientific opinion.
If I got into the PHD Econ program, I planned to test my crazy ass theories in the experimental economics lab. But alas, perhaps it was not meant to be. Well, I will eventually apply to a higher ranked program so there! Hah!
1. I think that mortgage firms and borrowers are equally to blame for the crisis. On one hand, you have mortgage companies that makes money off of lending money to as many customers as possible. Then you have borrowers who want to pay as little as possible and who opted for adjustable rate mortgages or subprime loans which are very high risk. You have consumers that can barely pay and little or no penalites to the mortgage companies that finance these loans. Now you have state governments trying to intervene in real estate markets to reduce the number of foreclosures. Stupid consumers! Stop buying crap you can't afford! Stupid greedy mortgage firms, you should have done your due diligence! Dumb state governments, let them eat cake!
2. I don't understand consumer behavior at all you can eat breakfast buffet lines. I don't understand why people pile a ton of food on one plate. I mean they can theoretically go back for more. Why do consumers insist on piling eggs, bacon, pancakes, fruit, syrup, toast, oatmeal, more pancakes and crab legs (just kidding) all on one plate. Are they that lazy they can't walk up to the buffet to reload? I have a pet theory. They think if they don't get it now, it could be gone, so why don't they take it ASAP. They are inherently selfish and don't want to share the syrup. Thats my unscientific opinion.
If I got into the PHD Econ program, I planned to test my crazy ass theories in the experimental economics lab. But alas, perhaps it was not meant to be. Well, I will eventually apply to a higher ranked program so there! Hah!
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