In This Issue:
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1. Minimum Markup
2. Global Hot Air
3. Fisher Nuts
4. Give us Your Money
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Minimum Markup
 Last week, the Wisconsin Policy Research Institute released a study regarding the state’s “minimum markup” law, which essentially makes it illegal for consumers to get a good deal on gas. The law requires gas stations to mark up the gas they sell at 9.18% over the wholesale price. Naturally, as the wholesale price increases, so does the markup, which hits motorists in the pocketbook twice. The report found that in the past decade, the per-gallon minimum markup has increased 400%, from 6 cents per gallon in 1998 to 30.2 cents per gallon in 2008.
Furthermore, the report calculated that Wisconsin motorists were paying up to $278 million extra statewide for gas because of the minimum markup law. The report compared gas prices in Wisconsin to markets without a mandatory markup law. Currently, 18 states have laws that prevent so-called “predatory” pricing (selling goods for below cost), but only two, Wisconsin and Minnesota, actually mandate a specific markup. Somehow, 48 other states have been able make do without mandating higher gas prices, as is done in Wisconsin.
Supporters of the law say the mandated markup is necessary to keep big companies from undercutting the prices of smaller gas stations, driving them out of business, and then raising prices when all their competition is gone. While it sounds good, no economist would take such a theory seriously. In order for a big company to take over, it would have to put all of its competitors out of business (unlikely to begin with), then keep those competitors out of business while it raised prices on consumers. Naturally, when their prices began to rise, other companies would emerge to offer competition, and prices would remain low. Compare that to the current system, where high gas prices are mandated now, in order to save us from high gas prices later.
In a time of $4.00 per gallon gas, the minimum markup law is indefensible. Instead of trying to boost the state’s economy by sending fat cat bureaucrats on “trade missions” overseas, the Doyle administration should push to repeal this tax on the state’s motorists.
Global Hot Air
 The “hot air” metaphor with regard to bogus global warming reports has been beat to death. But after Governor Doyle’s Task Force on Global Warming issued their final report last week, the State of Wisconsin is seriously at risk of floating away like a hot air balloon.
The task force did what task forces usually do – issued recommendations that could never actually become law, and will likely be ignored. In fact, their remedies, if enacted, would actually send Wisconsin back to the Stone Age. You might have a pterodactyl delivering your mail by the end of the year.
Among the task force’s recommendations is a plan to reduce greenhouse gas emissions by 22% by 2022. (Cute, why not make it 33% by 2033, or 44% by 2044?) If such a plan were enacted, we could expect a delightful gift basket from Illinois and Minnesota, as we would have sent them virtually all of our manufacturing jobs in return. Former weatherman and current State Representative Jim Ott has issued a laundry list of reasons the task force report is detrimental to our long-term economic plan.
The report also served as a backdoor way to get what liberals have been fighting for all along, but have never been able to garner public support for – commuter rail from Kenosha to Milwaukee. So at the same time all our manufacturing jobs would be leaving, our taxes would have to increase to pay for a choo-choo train that would go virtually unused.
Naturally, the Milwaukee Journal Sentinel bought the task force’s recommendations without hesitation. In fact, the Journal Sentinel recently announced plans to lay off 10% of its work force, due in part to “high fuel costs.” If they get their way and fuel costs spike even more as a result of this report, they can probably look forward to even more layoffs. Of course, all the cuts are blamed on things out of the Journal-Sentinel’s control – their declining revenues couldn’t be because they routinely embrace moon bat task force reports like this one.
Fisher Nuts
 Earlier this month, we examined the travel habits of former Wisconsin Commerce Secretary Jack Fischer, who had been traveling the globe with his female aide at taxpayer expense. On these trips, Fischer exhibited expensive tastes, staying in five star hotels and eating $80 meals – all on your dime.
The negative press generated by Fischer’s escapades forced him out the door last week. Yet while he is gone as Commerce Secretary, the stories of his lavish spending keep rolling in. According to the Milwaukee Journal Sentinel, Fischer hired a limousine to get him from meeting to meeting in the Twin Cities on a recent trip to Minnesota. (Maybe he was trying to broker a deal – they get Brett Favre, and we get a five year supply of lutefisk.)
So despite his demise, the tally of taxpayer funds Fischer lit on fire as Commerce Secretary continues to grow. On top of his $120,000 annual salary, which yielded nothing for the state’s economy, Fischer is reported to have blown $21,000 on his overseas trips. And his limousine excursion cost $561 – an extravagance usually granted heads of state, prom dates, and rappers.
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