Cafe Hayek - Latest Comments in A New Price Theory

Re: A New Price Theory

dismal — Wed, 07 Dec 2005 13:40:20 -0000

I'm convinced that the reason that Democrats (and others) clamor for investigations when gas prices go up is that they know they are going to come back down and they need to have a reason.

Economics at this basic a level is common sense.

Re: A New Price Theory

dagny — Tue, 06 Dec 2005 15:28:09 -0000

O'Reilly prides himself on ignorance. I used to watch his show and have some respect for him until one night when his story hit a little too close to home.

There was an occurence in Benton Harbor, Michigan, where a (black) Benton Harbor resident died while resisting arrest from a (white) St. Joseph police officer. There was some minor rioting in Benton Harbor following this.

Bill O'Reilly came on the air saying "Look, even in small towns black people can't resist the urge to be violent barbarians" or something to that effect.

One of his guests tried to explain the deep-seated racial tensions than exist in St.Joseph-Benton Harbor, and O'Reilly responds "Well, I don't know anything about this Benton Harbor..."

Hello? You made it your top story? It's kind of, I don't know, your job to at least know something about Benton Harbor.

Re: A New Price Theory

Camilo — Tue, 06 Dec 2005 02:23:13 -0000

He really is that ignorant. And his ignorance is only rivaled by his ego.

Re: A New Price Theory

The Unknown Professor — Mon, 05 Dec 2005 13:25:18 -0000

I think the exchange shows that O'Reilly is extremely rational. He's figured out that being economically ignorant (at least in his public comments) pays better with his target market than being more evenhanded and economically literate.

All it takes is putting a low valuation on being right. That makes selling out easier.

Of course, I could be wrong and he could merely be a fool. But, he appears pretty shrewd at least in terms of marketing, so I doubt he's a fool.

Re: A New Price Theory

Noah Yetter — Mon, 05 Dec 2005 13:07:21 -0000

Yes, yes he is.

Re: A New Price Theory

Wild Pegasus — Mon, 05 Dec 2005 12:11:20 -0000

O'Reilly otherwise appears intelligent and well-educated? He's just another braindead commieservative loudmouth.

- Josh

Re: A New Price Theory

Neal Phenes — Mon, 05 Dec 2005 10:05:28 -0000

O'Reilly invented the laws of supply and demand just before he co-invented the internet with Al Gore. He is working on the hardest project yet: getting women to love football.

Re: A New Price Theory

Don — Mon, 05 Dec 2005 07:22:56 -0000

The answer is Yes. My good friend works for O'Reilly on the show and I put this issue to him. His response (he, btw, respects BO alot) was that BO simply has a blind spot on oil economics and won't be converted. It is a little embarrassing, but we all have blind spots, and we generally net out in the plus column despite them.

Re: A New Price Theory

Christopher Meisenzahl — Mon, 05 Dec 2005 07:22:10 -0000

It's scary that someone that appears otherwise intelligent and very well-educated (much more than I in both cases) just doesn't get it.

Chris

http://amateureconblog.blog...

Re: A New Price Theory

David — Mon, 05 Dec 2005 07:14:54 -0000

"Is Bill O'Reilly really that ignorant?..."

Yes.

Re: A New Price Theory

John P. — Mon, 05 Dec 2005 07:08:56 -0000

"Is Bill O'Reilly really that ignorant of basic economics?"

I think it may be more accurate to say that he's "impervious" to basic economics. He sells himself as the friend of the little guy. That image involves attacking big oil for "gouging" us hard-working Americans.

Re: A New Price Theory

José Carlos Rodríguez — Mon, 05 Dec 2005 06:49:31 -0000

I'm afraid he is. I admire Bill O'Reilly, but he fails in economic theory. Two or three good books on economics would be a lot of help for him.

Re: A New Price Theory

Aaron Krowne — Mon, 05 Dec 2005 06:33:29 -0000

Oil execs looking for ways to jack up prices proves nothing except that they work for corporations driven by a profit motive. Duh, Bill.

And not only do the lower prices now stem from capacity which is back online, I believe there is also some significant reduced consumption (~2.5%) in the wake of the recent contractions. Plummetting SUV sales alone are proof enough of this.

For commodities like oil, where demand is relatively inelastic and supply is limited, small reductions in demand have an enourmous effect on price.

So its consumers that deserve the pat on the back for reducing oil prices by optimizing energy efficiency in their lives, not Bill O'Reilly for blowing wind.

Re: A New Price Theory

Gabriel Mihalache — Mon, 05 Dec 2005 06:31:00 -0000

I disagree. Supply and demand can vary but the price can remain constant as long as one party (group) is willing to lose out on new transactions.

Price adjustments towards equilibrium are necessary if and only if we assume that agents want to maximize their earnings.

If oil execs are pressured by public opinion to incur loses, then it's not the Econ. 101 basics which are in question here.

Re: A New Price Theory

JohnDewey — Mon, 05 Dec 2005 06:30:53 -0000

Randy,

I don't believe this is a case of O'Reilly speaking before thinking. He's been accusing oil companies of price-gouging and collusion for about three months. Cavuto and several guests have patiently tried to explain supply and demand. O'Reilly never lets them finish and never appears to pay any attention to what they say.

I used to admire Bill O'Reilly, but I'll be sending back my "The Spin Stops Here" coffee mug. He's become just another demagogue, except that a daily program increases the potential danger of his influence.

Re: A New Price Theory

dff — Mon, 05 Dec 2005 06:13:37 -0000

Probably not - I think the above is an example of calculated self-aggrandizement. It seems to me that O'Reilly is trying to become more attractive to viewers who are more middle-of-the-road, politically speaking, and his way of accomplishing this is to strike a pose as a some kind of self-appointed tribune.

So while it may be partially about ego, I think it's more about ratings.

Re: A New Price Theory

Randy — Mon, 05 Dec 2005 05:46:59 -0000

Bill does tend to speak before thinking on many issues. One would think that having a public voice would make one more cautious - and yet the opposite is so often the case. I guess being controversial pays better.