Archive for August 20th, 2008

About pay grades …

August 20, 2008

Excerpted from the Boston Herald, “Pay grade — an unartful dodge”, by Michael Graham,  August 20, 2008 

“Well, uh, you know, I think that whether you’re looking at it from a theological perspective or, uh, a scientific perspective, uh, answering that question with specificity, uh, you know, is, is, uh, above my pay grade.” – Sen. Barack Obama, on “When does a baby get human rights?”

In 1948, they had Harry Truman and “The buck stops here!”

(In 2004 the got John Kerry and “I voted for it before I voted against it”.)

In 2008, they’ve got Barack Obama and it’s “above my pay grade.”

This is definitely not your grandfather’s Democratic Party.

My grandfather helped push Patton’s tanks across Europe, and one reason for my grandfather’s unshakable party loyalty was his belief that Harry Truman saved his life by dropping the A-bombs on Japan.

If Truman hadn’t made the call – if he’d demurred that such a profound life-and-death decision was “above my pay grade” – my grandfather believed that he and untold thousands of Americans would have died invading the Japanese mainland.

When Obama got the invitation to an evangelical forum hosted by a pro-life pastor, he had to know that issues regarding life and the law were going to come up.

And his prepared answer to the most fundamental question about public policy and abortion (“is the fetus a human being?”) is that it’s “above my pay grade?”

Among phrases that should never be spoken by a guy whose job it is to sit next to the Big, Red Button is “That’s above my pay grade.”

Leaders don’t pass tough questions to the next “pay grade.” They don’t need five minutes to answer yes-or-no questions.

That’s not leadership, that’s politics.

Full editorial:
http://www.bostonherald.com/news/opinion/op_ed/view.bg?articleid=1113869&format=&page=2&listingType=opi#articleFull

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OTP – Singing the blue state blues …

August 20, 2008

 OTP = Obama Tax Plan

An irony of Senator Obama’s tax plan is that folks in Democratic-leaning Blue electoral states will take the brunt of  proposed tax hikes. 

High-earners are concentrated   in big Democratic strongholds: DC, New Jersey, Maryland, Massachusetts, Connecticut, New York, California, and Illinois. 

Here are a couple of indicators of the level of concentration:

First, the average income of tax filers falling into the top 5% in each state.  As a rough measure, if the average is higher than Obama’s $200,000 – $250,000 income thresholds, then most (or all) of the state’s top 5% will be hit by the Senator’s increased tax rates.

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A second view is the proportion of top 5% income represented by each state’s top 5%.  The top 10 states — 7 of which are Blue states –account for over 55% of the total.

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Bottom line:  More Blue state filers than Red state filers will get hit by Obama’s tax increases.  And, there’s nothing they can do about it since their states are unwaveringly Democratic states.

Maybe there is justice in the world.

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Source : http://www.electoral-vote.com/

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Pricing – Airlines bring back "structural" price discrimination …

August 20, 2008

Excerpted from WSJ: “Airlines Revive Minimum Stays On Cheap Fares”, August 19, 2008

One of the craziest aspects of the airline business is that two passengers sitting side-by-side can pay vastly different fares for the same seat — sometimes hundreds of dollars.

Airlines contend business travelers buy a different product.

A business traveler pays more for a seat purchased close to departure because the airline has taken an economic risk to hold that inventory back. And business travelers pay more for tickets with fewer restrictions — you pay a lot for the ability to change or cancel.

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Now, get ready for a wave of annoying airline rules requiring you to stay at your destination a minimum number of days or over a Saturday night — if you want the cheapest tickets.

The move is an effort to force (price insensitive) business travelers, who usually need the most flexibility and want to be home on the weekends, to pay more for their flights.

Airlines have increased restrictions on cheap fares by raising overnight requirements, upping what had commonly been only a one-night stay requirement to two and three nights.

Airlines tried to bring back Saturday-night stay requirements earlier this year.  For many years the Saturday-night requirement was a prime tactic airlines used to separate business travelers from leisure customers. The Saturday-night stay forced many business travelers to either pay hundreds of dollars more for each ticket, or to spend an extra night or two on the road to save money. If the choice was a $300 ticket or a $2,000 ticket, many companies would ask travelers to stay over Saturday night at a nice hotel, have a nice meal and still save hundreds.

But the change didn’t stick, mostly because discounters compete on so many routes these days … without onerous restrictions.

(So) business travelers see them as a more-viable alternative as the price gap widens in fares. If big airlines run their prices up too high by making discounted tickets unavailable to business travelers, they risk losing customers. That’s been the history, likely to repeat this fall.

Full article:
http://online.wsj.com/article_print/SB121909457563650833.html

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Thanks to Justin Bates, MSB MBA for the heads-up.

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