Posted on by mikecronin2013

Stop The Hurricane Blame Game

By Mike Cronin

“You never let a serious crisis go to waste.” Those are the words of Rahm Emanuel, Mayor of Chicago and former Chief of Staff under President Obama. Plenty of people are taking him up on that advice by exploiting notable natural disasters (presently, Hurricane Irma is their wellspring) to further their own agendas. Curiously, people on (supposedly) opposite spans of the ideological spectrum are finding ways to blame Irma (and Harvey before her, and Katrina before both) on human activity they don’t like:

The first variety are stories that repeat the oft-heard statistic that Hurricane Irma is the most powerful Atlantic hurricane in recorded history and that she is a result of human-caused global warming. Let’s break this down.  First, whether or not a given natural phenomenon is the “most powerful” in recorded history makes good headlines, but it’s almost irrelevant – because recorded history is a vanishingly small slice of time on the geologic clock. If we scale the lifetime of the earth to be represented by a human lifespan – say eighty years, then all of recorded human history represents the span of an eyeblink or two.   Indeed, reliable recordings of meteorological phenomena such as hurricanes have only been commonplace for perhaps the last 150 years or so.

Another angle: Right now, there are three hurricanes: Katia in the western Gulf of Mexico, Irma, and Jose east of the Caribbean. Some articles are noting this as another bit of evidence that global warming is to blame – but there have been at least two recorded occasions when four hurricanes existed at one time, and the earliest of those dates to 1893.

Then there are the religious extremists who claim that natural disasters are God’s punishment for our sins, especially homosexuality and abortion. This pastor claims Hurricane Harvey is God’s punishment of Texas for failing to pass an anti-LGBT law. Actor Kirk Cameron claims Harvey and Irma have been sent by God to teach us humility and to make sinners repent. The same tone was on offer from some of the more extreme branches of the religious right for Hurricane Katrina over a decade ago.

Bottom line: We have no way to know whether Irma is in fact the most powerful hurricane in Atlantic history, ergo we can’t possibly know if her notable strength is truly the result of human-caused global warming, or of natural climate change, or if she is merely a “normal” large hurricane among the millions that have crossed the Atlantic over the eons. Since the conditions that cause hurricanes pre-date human industrial activity, we can safely assume the sin of emitting too much carbon dioxide is not the cause of Irma. What about biblical sin?  As the late Christopher Hitchens once pointedly observed, Hurricane Katrina, allegedly sent to punish us for the sins of homosexuality and fornication, destroyed almost every part of New Orleans except the French Quarter, wherein lies the red-light district!

The jury is out on the effects of humans on climate change, but the fact that the climate is changing is irrefutable – it is always changing. Likewise, the idea that God punishes us through disasters is ancient, but “disasters” only result when humans are affected by specific incidents of naturally occurring phenomena that have been occurring since before the rise of humanity.  The real tragedy of disasters is that we continue to put faith ahead of reason. Reason tells us that if you occupy a place that is in a hurricane zone, you are at risk. You can either mitigate that risk by being well-prepared to evacuate or to survive, or you can deal with the consequences of failing to make such preparations. Neither God nor global warming are responsible for that, you are.

Posted on by mikecronin2013

The Gouge on Price Gouging

By Mike Cronin

In military slang, the word gouge can mean information or intelligence. For example: One person tells another a trick or hack for getting a task done quicker. The second person might say “thanks for the gouge.”

On the other hand, people are very much not thankful for what they perceive to be the price gouging happening in Houston and the rest of the Hurricane Harvey impact zone.  Loosely defined, price gouging is when a vendor radically raises their prices, as often occurs in and near disaster zones. Potential customers believe such vendors to be vultures, capitalizing on the misery of others.

But is that what is really going on?

In a recent Facebook post, A group called  “Educate the People” shared pictures of a convenience store billboard showing gas prices over $8.00 per gallon, and a case of bottled water going for nearly $45.00.  The caption beloe the pictures read “Heartless Capitalist Texas Store Owners.”

“Educate the Public” indeed! It’s not heartless. If millions of people are trying to “get out of Dodge,”(or stockpile at the last minute) because a disaster is imminent or in-progress, then supply trucks aren’t going into Dodge. When that happens, the things we normally take for granted are suddenly in much more demand, soon to be much scarcer, and thus suddenly much more valuable. When the demand for something skyrockets, but the supply is shrinking, the price must skyrocket as well. It sucks if you want to buy the thing that has quadrupled in price (so you have some to spare), but if you genuinely need it for survival, there just might still be some available because the people who merely wanted it weren’t willing to fork over the cash. It may seem like the store owner is profiteering, but consider: The store is still open and doing business when everyone else is trying to flee or hole-up!

If the store owner left his prices at the normal level (or was forced by the government to do so), he’d be out of stock in hours – or even minutes, with no routine resupply on the calendar. What is he, or his customers most in need, to do then?

The purveyors of “Educate the Public” should consider taking some remedial economics lessons instead of pandering to a generation of Americans who are being taught that they are entitled to something just because they think they need it.

To save them some time, here are the applicable points:

Price, cost, and value are not the same thing; however, in a functional system of mutual trade to mutual benefit, they are closely related. If the thing is becoming scarcer because the gap between supply and demand is increasing, the price will go up as a message to the consumer that the scarcity of the thing has increased.

When some force, usually in the form of government, compels a vendor to ration items, or to limit prices, the system is no longer about mutual exchange to mutual benefit. It has become dysfunctional, shredding the relationship between price, cost, and value. The price of an item no longer communicates the scarcity to the consumer. This increases the risk that hoarders and black-marketeers will buy up all the stock in a short amount of time, leaving the shelves bare, and leaving people in crisis with far fewer options. This will in turn lead to more desperation and lawlessness, not less.

In short: price gouging is not evil, though radically increased prices may shock and offend our sensibilities during a crisis, lulled as we are by generations of living in the stability of the largest economy in the world. On the other hand, anti-price gouging and rationing laws just might be evil, because they create more harm than they cure – by causing or exacerbating  shortages in the guise of mollifying the unthinking and easily offended.