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In the mystical cosmology of economics, "prices" are of transcendental significance, the means by which the living market knows and adapts itself, giving rise to "efficient" production and consumption.
At its most basic level, the metaphysics of pricing goes like this: if there is less of something for sale than people want to buy, the seller will raise the price until enough buyers drop out and demand equals supply. If the disappointed would-be buyers are sufficiently vocal about their plight, other sellers will enter the market (bankrolled by investors who sense an opportunity), causing supplies to increase and prices to fall until the system is in "equilibrium" ā producing things as cheaply as possible in precisely the right quantities to meet demand. In the parlance of neoclassical economists, prices aren't "set": they are discovered.
In antitrust law, there are many sins, but they often boil down to "price setting." That is, if a company has enough "market power" that they can dictate prices to their customers, they are committing a crime and should be punished. This is such a bedrock of neoclassical economics that it's a tautology "market power" exists where companies can "set prices"; and to "set prices," you need "market power."
Prices are the blood cells of the market, shuttling nutrients (in the form of "information") around the sprawling colony organism composed of all the buyers, sellers, producers, consumers, intermediaries and other actors. Together, the components of this colony organism all act on the information contained in the "price signals" to pursue their own self-interest. Each self-interested action puts more information into the system, triggering more action. Together, price signals and the actions they evince eventually "discover" the price, an abstraction that is yanked out of the immaterial plane of pure ideas and into our grubby, physical world, causing mines to re-open, shipping containers and pipelines to spark to life, factories to retool, trucks to fan out across the nation, retailers to place ads and hoist SALE banners over their premises, and consumers to race to those displays and open their wallets.
When prices are "distorted," all of this comes to naught. During the notorious "socialist calculation debate" of 1920s Austria, right-wing archdukes of religious market fundamentalism, like Von Hayek and Von Mises, trounced their leftist opponents, arguing that the market was the only computational system capable of calculating how much of each thing should be made, where it should be sent, and how much it should be sold for.
Attempts to "plan" the economy ā say, by subsidizing industries or limiting prices ā may be well-intentioned, but they broke the market's computations and produced haywire swings of both over- and underproduction. Later, the USSR's planned economy did encounter these swings. These were sometimes very grave (famines that killed millions) and sometimes silly (periods when the only goods available in regional shops were forks, say, creating local bubbles in folk art made from forks).
Unplanned markets do this too. Most notoriously, capitalism has produced a vast oversupply of carbon-intensive goods and processes, and a huge undersupply of low-carbon alternatives, bringing the human civilization to the brink of collapse. Not only have capitalism's price signals failed to address this existential crisis to humans, it has also sown the seeds of its own ruin ā the market computer's not going to be getting any "price signals" from people as they drown in floods or roast to death on sidewalks that deliver second-degree burns to anyone who touches them:
For market true believers, these failures are just evidence that regulation is distorting markets, and that the answer is more unregulated markets to infuse the computer with more price signals. When it comes to carbon, the problem is that producers are "producing negative externalities" (that is, polluting and sticking us with the bill). If we can just get them to "internalize" those costs, they will become "economically rational" and switch to low-carbon alternatives.
That's the theory behind the creation and sale of carbon credits. Rather than ordering companies to stop risking civilizational collapse and mass extinction, we can incentivize them to do so by creating markets that reward clean tech and punish dirty practices. The buying and selling of carbon credits is supposed to create price signals reflecting the existential risk to the human race and the only habitable planet known to our species, which the market will then "bring into equilibrium."
Unfortunately, reality has a distinct and unfair leftist bias. Carbon credits are a market for lemons. The carbon credits you buy to "offset" your car or flight are apt to come from a forest that has already burned down, or that had already been put in a perpetual trust as a wildlife preserve and could never be logged:
Carbon credits produce the most perverse outcomes imaginable. For example, much of Tesla's profitability has been derived from the sale of carbon credits to the manufacturers of the dirtiest, most polluting SUVs on Earth; without those Tesla credits, those SUVs would have been too expensive to sell, and would not have existed:
What's more, carbon credits aren't part of an "all of the above" strategy that incorporates direct action to prevent our species downfall. These market solutions are incompatible with muscular direct action, and if we do credits, we can't do other stuff that would actually work:
Even though price signals have repeatedly proven themselves to be an insufficient mechanism for producing "efficient" or even "survivable," they remain the uppermost spiritual value in the capitalist pantheon. Even through the last 40 years of unrelenting assaults on antitrust and competition law, the one form of corporate power that has remained both formally and practically prohibited is "pricing power."
That's why the DoJ was able to block tech companies and major movie studios from secretly colluding to suppress their employees' wages, and why those employees were able to get huge sums out of their employers:
When it comes to monopoly, even the most Bork-pilled, Manne-poisoned federal judges and agencies have taken a hard line on price-fixing, because "distortions" of prices make the market computer crash.
But despite this horror of price distortions, America's monopolists have found so many ways to manipulate prices. Last month, The American Prospect devoted an entire issue to the many ways that monopolies and cartels have rigged the prices we pay, pushing them higher and higher, even as our wages stagnated and credit became more expensive:
https://prospect.org/pricing
For example, there's the plague of junk fees (AKA "drip pricing," or, if you're competing to be first up against the wall come the revolution, "ancillary revenue"), everything from baggage fees from airlines to resort fees at hotels to the fee your landlord charges if you pay your rent by check, or by card, or in cash:
The "greedflation" that saw grocery prices skyrocketing, which billionaire grocery plutes blamed on covid stimulus checks, even as they boasted to their shareholders about their pricing power:
There's the the tens of billions the banks rake in with usurious interest rates, far in excess of the hikes to the central banks' prime rates (which are, in turn, justified in light of the supposed excesses of covid relief checks):
There are the scams that companies like Amazon pull with their user interfaces, tricking you into signing up for subscriptions or upsells, which they grandiosely term "dark patterns," but which are really just open fraud:
There are "surge fees," which are supposed to tempt more producers (e.g. Uber drivers) into the market when demand is high, but which are really just an excuse to gouge you ā like when Wendy's threatens to surge-price its hamburgers:
And then there's surveillance pricing, the most insidious and profitable way to jack up prices. At its core, surveillance pricing uses nonconsensually harvested private information to inform an algorithm that reprices the things you buy ā from lattes to rent ā in real-time:
Companies like Plexure ā partially owned by McDonald's ā boasts that it can use surveillance data to figure out what your payday is and then hike the price of the breakfast sandwich or after-work soda you buy every day.
Like every bad pricing practice, surveillance pricing has its origins in the aviation industry, which invested early on and heavily in spying on fliers to figure out how much they could each afford for their plane tickets and jacking up prices accordingly. Architects of these systems then went on to found companies like Realpage, a data-brokerage that helps landlords illegally collude to rig rent prices.
Algorithmic middlemen like Realpage and ATPCO ā which coordinates price-fixing among the airlines ā are what Dan Davies calls "accountability sinks." A cartel sends all its data to a separate third party, which then compares those prices and tells everyone how much to jack them up in order to screw us all:
These price-fixing middlemen are everywhere, and they predate the boom in commercial surveillance. For example, Agri-Stats has been helping meatpackers rig the price of meat for 40 years:
Apologists for these meth-gators insist that surveillance pricing's true purpose is to let companies offer discounts. A streaming service can't afford to offer $0.99 subscriptions to the poor because then all the rich people would stop paying $19.99. But with surveillance pricing, every customer gets a different price, titrated to their capacity to pay, and everyone wins.
But that's not how it cashes out in the real world. In the real world, rich people who get ripped off have the wherewithal to shop around, complain effectively to a state AG, or punish companies by taking their business elsewhere. Meanwhile, poor people aren't just cash-poor, they're also time-poor and political influence-poor.
When the dollar store duopoly forces all the mom-and-pop grocers in your town out of business with predatory pricing, and creating food deserts that only they serve, no one cares, because state AGs and politicians don't care about people who shop at dollar stores. Then, the dollar stores can collude with manufacturers to get shrunken "cheater sized" products that sell for a dollar, but cost double or triple the grocery store price by weight or quantity:
Yes, fliers who seem to be flying on business (last-minute purchasers who don't have a Saturday stay) get charged more than people whose purchase makes them seem to be someone flying away for a vacation. But that's only because aviation prices haven't yet fully transitioned to surveillance pricing. If an airline can correctly calculate that you are taking a trip because you're a grad student who must attend a conference in order to secure a job, and if they know precisely how much room you have left on your credit card, they can charge you everything you can afford, to the cent.
Your ability to resist pricing power isn't merely a function of a company's market power ā it's also a function of your political power. Poor people may have less to steal, but no one cares when they get robbed:
So surveillance pricing, supercharged by algorithms, represent a serious threat to "prices," which is the one thing that the econo-religious fundamentalists of the capitalist class value above all else. That makes surveillance pricing low-hanging fruit for regulatory enforcement: a bipartisan crime that has few champions on either side of the aisle.
Cannily, the FTC has just declared war on surveillance pricing, ordering eight key players in the industry (including capitalism's arch-villains, McKinsey and Jpmorgan Chase) to turn over data that can be used to prosecute them for price-fixing within 45 days:
As American Prospect editor-in-chief David Dayen notes in his article on the order, the FTC is doing what he and his journalistic partners couldn't: forcing these companies to cough up internal data:
This is important, and not just because of the wriggly critters the FTC will reveal as they use their powers to turn over this rock. Administrative agencies can't just do whatever they want. Long before the agencies were neutered by the Supreme Court, they had strict rules requiring them to gather evidence, solicit comment and counter-comment, and so on, before enacting any rules:
Doubtless, the Supreme Court's Loper decision (which overturned "Chevron deference" and cut off the agencies' power to take actions that they don't have detailed, specific authorization to take) will embolden the surveillance pricing industry to take the FTC to court on this. It's hard to say whether the courts will find in the FTC's favor. Section 6(b) of the FTC Act clearly lets the FTC compel these disclosures as part of an enforcement action, but they can't start an enforcement action until they have evidence, and through the whole history of the FTC, these kinds of orders have been a common prelude to enforcement.
One thing this has going for it is that it is bipartisan: all five FTC commissioners, including both Republicans (including the Republican who votes against everything) voted in favor of it. Price gouging is the kind of easy-to-grasp corporate crime that everyone hates, irrespective of political tendency.
In the Prospect piece on Ticketmaster's pricing scam, Dayen and Groundwork's Lindsay Owens called this the "Age of Recoupment":
For 40 years, neoclassical economics' focus on "consumer welfare" meant that companies could cheat and squeeze their workers and suppliers as hard as they wanted, so long as prices didn't go up. But after 40 years, there's nothing more to squeeze out of workers or suppliers, so it's time for the cartels to recoup by turning on us, their customers.
They believe ā perhaps correctly ā that they have amassed so much market power through mergers and lobbying that they can cross the single bright line in neoliberal economics' theory of antitrust: price-gouging. No matter how sincere the economics profession's worship of prices might be, it still might not trump companies that are too big to fail and thus too big to jail.
The FTC just took an important step in defense of all of our economic wellbeing, and it's a step that even the most right-wing economist should applaud. They're calling the question: "Do you really think that price-distortion is a cardinal sin? If so, you must back our play."
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From āThe Day Loki Stole Thorās Magic Hammerā in Journey into Mystery #92, May 1963. Stan Lee plot, Robert Bernstein script, Joe Sinnott pencils & inks, Stan Goldberg (?) colors, Marty Epp letters.
Whumptober 7. Lab whump with extra dehumanisation and gore, this time!
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Thereās a taste in his mouth that he canāt get out.
The first experiment is simple. The muzzle is removed, and the body is fed water for the first time in days. It is helped to drink until it can drink no more, turning its head away from the feeding tube. Then, for the next twenty minutes, some mild acid forces the body to produce saliva, which is collected in test tubes on ice.
The body endures this placidly. It is cooperative with the cotton swabs placed inside its mouth. It holds still with its jaw wide, not needing to be forced. Maybe it is grateful to have been given water. Maybe it hopes, as the doctors do, that saliva will substitute blood in their treatments.
But the testing is done quickly and the results are clear. If there is power in the saliva, it is so diluted as to be useless.
And thereās a taste in his mouth that he canāt get out.
The second experiment is nails and hair. The body is unresponsive when the hair is trimmed. It looks to be sleeping, though nobody is sure whether it truly sleeps like humans do. It wakes up, as best they can tell, with no idea of what was done. But later that day, they trim its nails. The clippings are stored in another sample container and taken away for testing.
This is equally unimpressive. There was already significant doubt that such expendable parts of the body would contain anything of value. But it was proof of the previous experiment. Only things integral would be useful to gather.
And thereās a taste in his mouth that he canāt get out.
By the end of the week, Caroline has allowed another experiment, more invasive now there have been no ill effects from the others. The body still bleeds through the needle in its arm, and nothing else matters. So Caroline authorises a tissue sample.
The first one is small, just a scraping of dead skin from under their trimmed fingernails. The body barely responds to the dull shear on their fingers. The flakes are taken away in a petri dish.
Next is a slice of fresh skin. One hand is taken into a bowl of water to be thoroughly cleaned. This, unlike the rest, gets a response, tears leaking down its cheeks as if touched by the gesture. But it is done by uncaring hands, who only want to make sure the site of their sample is sterile.
Gloved hands press the knuckles flat on a rolling steel side table. Caroline does the incision herself, peeling back mere millimetres of skin with her sharpest scalpel. The blood, which cannot be wasted, is allowed to flow openly until it clots on its own. Caroline takes the sample off herself for immediate testing, while one of the acolyte doctors is responsible for soaking up every drop of blood.
Lachlan doesnāt know if the skin sample works or not. All he knows is that, the very next day, Caroline returns for more. As the body heals, and does not scar, she grows less and less worried that she will do something irreversible.
Kurt used to speak up. He is supposed to, if she risks permanent damage to the body, but he doesnāt say a word. Heās barely present anymore. Heās here because he was told to be here, and outside of working hours, he is gone.
Caroline stays. Caroline sharpens and sterilises her scalpels. She gathers her two favourite students, the brightest and most loyal. They cleanse the site of her next incision. She has chosen the thigh, and they make sure every strand of hair and speck of dirt is gone from the area she designs. No contaminants. Why stop at blood when flesh could yield better results?
The body knows it is coming already. Even as Caroline only prepares, it has clearly worked out the pattern. It keens in pain at the first touch of metal and doesnāt stop when it comes in earnest. She presses the scalpel into flesh, barely needing to push with as sharp as she has the blade. Blood wells up around it, and she cuts with confidence.
The body ā Northlight ā cries out through the muzzle, legs jerking and arms pulling at the restraints. The pain is audible in their voice. The tears flow from their eyes again, backwards down their face as their head is thrown back. Caroline is immune, extracting the gouged flesh and having it conveyed to be chilled and preserved for testing. One of her students is already stifling the bleeding. The other conveys the sample away.
Lachlan tries not to look at the blob of flesh on the tray, nor at the bleeding hole in Northlightās leg. He looks at the bodyās tormented expression, and tries not to listen to the whimpers low in its throat. Itās a sensible thing to do with the experiments, to build up like this. It makes sense. Itās scientific. The body was always going to respond like this. Simulating feelings. Like how trees bleed sap.
Theā¦
Northlight cries in hopeless pain as the wound is tightly bandaged. Northlight shakes their head in plea when the doctor leaves. Northlight endures without painkillers, without even food. Northlight turns their eyes to him.
Thereās a taste in Lachlanās mouth that he canāt get out. Metallic and sour. He knows it canāt be real, but he can taste it all the same. He drinks it in his dreams and it makes him ache and shiver.
Every morning he goes to wash his face in the laboratory toilets, and he bares his teeth the mirror, to check them for sharper edges.
Aloha kÄkou. Over four years ago, inflation was 2.1%. The gas average was $1.90 a gallon. Food prices were affordable. Since the Marxist democrats used Covid to rig the 2020 election and installed Pedo-Joe Biden and Kommunist Karmela Harris, the economy has collapse into chaos. The cost of living has risen under Bidenomics to record levels. Inflation climbed over 9%, but thatās just the Consumerā¦
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Why Is the Pentagon Barring Military Weapons Repair?
Corporate contracts make it illegal for the military to do any weapons repair, putting their profits over soldier safety.
The U.S. military has long been an easy mark ā for our own avaricious corporate contractors, that is.
During the Civil War, for example, J.P. Morgan sold rifles to the Union army, which cost him only $3.50 each, but he charged the military $22 each. Worse, his rifles wereā¦
