The Supreme Court Flips off America

Boy, this Supreme Court is bad. KELO was a disgrace. This is almost as bad.

Manufacturers may set a fixed price for their products and forbid retailers from offering discounts, the Supreme Court said today, overturning a nearly century-old rule of antitrust law that prohibited retail price fixing.

The 5-4 ruling may be felt by shoppers, including those who buy on the Internet. It permits manufacturers to adopt and enforce what lawyers called “resale price maintenance agreements” that forbid discounting.

Until today, the nation has had an unusually competitive retail market, in part because antitrust laws made it illegal for sellers or manufacturers to agree on fixed prices. The Supreme Court, in a 1911 case involving Dr. Miles and his patented medicines, had said that price-fixing agreements between manufacturers and retail sellers were flatly illegal.

The rule’s practical effect was to discourage a manufacturer from setting a price, leading, for instance, to stickers on the windows of new cars that list the “manufacturer’s suggested retail price.”

However, in today’s opinion, the high court described this rule as outdated and out of step with modern economics.

Watch prices go up dramatically as greedy companies ram price fixing down everyones throats. 

1. Hmm… possibly, but I think I’d take a bet now (sort of like the infamous Malthus bet) on the inflation-adjusted cost of any five consumer items you like: in five years, I bet the sum is cheaper later than now.

   Why? In theory, folks could price fix, but there’s always an alternative (not necessarily a *good* alternative, but an alternative). Plus, fixing your price at a high, non-discountable rate, makes entry to competitors easier. So yes, in theory they could stick it to the consumer, but I think the reality is that anyone who did would find their customer base moving away to alternatives.

   -Pete

   Posted by  on  06/28  at  11:16 PM

2. I think the internet stores is where we will see this put to the test. That’s hat I am worried about. I do a lot of my shopping online.

   Posted by  on  06/28  at  11:29 PM

3. I’m afraid that those in power never learn from past mistakes.  After yesterday you would think D.C. would become more cautious.  Bad decisions by this Supreme Court could cost Conservatives in next year’s election because the next president will probably be the one to select a new Justice.

   From:  Immigration Reform Dead by Mike Madden for Republic Washington Bureau

   Jon Kyl, a chief architect of the immigration reform bill, said the harsh response from conservatives taught him that many constituents have lost faith in the government . He said he got an angry phone call at home at 2 a.m. the night before the vote on top of the thousands to his offices…[T]hey ask, ‘Why should we give more power to the government to do things it hasn’t been able to do in the past?’”

   Opponents to the bill were buoyed by weeks of organized phone calls, e-mails and faxes by groups that saw the bill as amnesty for people who broke the law to live here.

   “The only victory here is for the American people,” said Sen. Jim DeMint, R-S.C., one of a small bloc of conservatives who labeled the bill as amnesty for lawbreakers and fought it furiously. “The people responded to this issue in a very emotional and just a very engaged way, which changed the minds of many people here in the Senate.”

   Though the bill’s supporters blamed talk radio for whipping up anti-immigrant sentiment, opponents said they weren’t motivated by any such thing.  In my opinion people are becoming tired of trusting government to protect their interests.  I would like thank talk radio, or anyone else for that matter found responsible for highlighting bad governmental decisions.  I just wish people expressed strong interests over more issues.

   In Alabama, Rick and Bubba did a great job on their radio show discussing the immigration reform bill.  They are very conservative Republicans with a syndicated radio program.  When they are too over the top for me I change stations and come back in about 15min. when a new topic has been introduced.  You can check them out at http://www.rickandbubba.com/
   I wouldn’t be suprised if they didn’t have something to say about this new ruling after their week of vacation is over.

   Posted by  on  06/29  at  08:16 AM

4. I remember Rick and Bubba from when they interviewed Taylor Hicks. They were supporters.

   But anyway, people really need to get rid of politicians who go against the citizens like this. Too many politicians are corrupt. Kennedy, Pelosi and Reid are terrible. And just about all the supporters of this bill.

   Bush has pretty much driven away everyone with his support. I can’t believe how tone deaf he is.

   Posted by James Hudnall  on  06/29  at  09:38 AM
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