Tuesday, June 26, 2012

PROFITEERING

Profit in a market economy is an acceptable and desirable outcome. Profiteering, however, is the ugly abuse of making an inflated profit during an emergency.

Think of a grocery store that doubles prices in the aftermath of a hurricane, while people are desperate, without electrical power, and discarding spoiled food.
We presently have 3 profiteers working the economic crises:
Landlords, Internship Providers, and Colleges.

Curiously, as banks refuse to provide mortgage money, Landlords raise rents in a nearly inflation-free economy. After all, people have to live somewhere. If they can’t buy a house or move in with Mom, the final option is a bulging rent.

The Internship Providers fully understand the employment wasteland where recent graduates desperately hunt for work or resume enhancement. They take full advantage by grinding the ‘lucky’ interns to full sweat, and, in some cases, making them pay for the privilege of being exploited.

Colleges are abusing the drone that the only surviving option for a successful future is the Hobson-choice of college. Since they’ve become the last bridge standing to the land of promise, their tuitions have lapped the inflation rate for the past 30 years.

















186 comments:

An Independent said...

Every tenant's cry is, “Kill the landlord.” But, even in an inflation free economy, the paint still peels, the cesspools back up, an the taxes go everywhere but down. Now, if you can get everyone, and I mean EVERYONE – not just the internship providers and colleges to lighten up.... then you might have a case.

quicksand said...

Dear independent,
Of course a landlord has every right to make a profit beyond expenses. And, in a supply and demand world, the market price will adjust. No argument. But many are suffering through this disfunctional economy, and that difficulty creates opportunity to those who want to benefit from it.
This condition appears to be more prevalent in urban and suburban areas.
Rent is more akin to heating oil than olive oil.
One is essential.

quicksand said...

Please read " fixing college" in June 26 new York times.

rthgrl said...

when I pondered this thought, the first thing that came to mind was the employer's "profiteering" on the economic fear factor.

For the average wage-earner (I'm not talking professionals here), the current situation smacks somewhat to that of an indentured servant. Many businesses have cut back on staff numbers, increased work load to those remaining and all without complaint, because of fear-driven silence. Aware of injustice served, but that little voice says, "but, you're one of the Lucky ones", "be glad at least you have a job", blah, blah, blah. In other words, they have you by the balls and you'll tolerate it because you have bills to pay and maybe mouths to feed.

And, this is for our fair citizens...not even touching on the undocumented worker plight. Profiteering takes on a whole new meaning there...

Phil said...

When demand goes up, the price goes up. It's economics 101 not profiteering.

An Independent said...

Dear Quicksand,
I read the article. Incompetent use of money collected by colleges from the tuition they charge is another example of inappropriate financial spending. Instead of top ten list that rank the colleges by the campus amenities or whether or not it's in a Top-10 party town, perhaps a list of Top-10 colleges that provide students with a Top-10 education is in order. The students may not look at that list, but Mom & Dad might.... before they fork over any $$.
Unfortunately the "lost generation" mentioned in the article, will be the ones distributing funds where they see fit in the future. A poor example has been set, so we can expect it to get worse unless we cry loudly and clearly, and OBJECT when it's clear we're not getting our money's worth. Smart spending, creative spending on both sides of the deal.... is essential to survive in this economy. This is something the Great Generation learned through experience.

JoshuaE73 said...

Well said Bruce. Interestingly, this profiteering by colleges has likely created an "education bubble" where millions of folks can't pay off student loans for educations that gave them degrees that aren't worth enough in the marketplace to pay off those loans. Oh that was a mouthful... I'd have to wordsmith that before putting it on Facebook :) ... but you should post this blog on Facebook.

quicksand said...

Dear rthgrl,
Exactly...all in the name of productivity.
Thanks for the insight

quicksand said...

So Phil, the merchant who raises the price of food in the wake of a hurricane is following economics 101 not profiteering?

To me that would apply to cabbage patch kids...not essentials.
Thanks for the comment

quicksand said...

Drear independent again,

I'd like colleges to provide a list of graduate employment, field by field.
Something they wouldn't want to do.
Note: 60% of classes are taught by TAs or adjuncts.
Some classes have 400 students attending.
Check my facts before digesting as true.

Also...I don't know who you are, but I do know that you're quite bright.

quicksand said...

Josh,
I agree fully with your education bubble.
The society has been sold a product that can't produce.
Hey...nothing wrong with learning for learning...but the equation of learning for earning is saturated.

Thanks

An Independent said...

Dear quicksand again,
Thanks for the kind words. but I thought you knew who I was. Maybe it's better left this way so as not to let friendship or personality interfere with the responses. Besides... you may not appreciate what I have to say next time.

quicksand said...

No idea.
You are at an advantage knowing me...but the mystery suits me fine. I did assume that you might be a landlord though. That cuts it down somewhat.

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