Obama Rodeo Clown Could be Man of Year in Sedalia, MO
RUSH: Do you remember the guy in Sedalia at the state fair, the clown who wore the Obama face and the media drummed to death?
"Inspired by Time Magazine’s well-known list, Sedalia, Missouri now has its own Person of the Year Award and the 2013 competition isn’t even close. There are seven nominees but the man who brought national attention to the Missouri State Fair this summer is running away with more than half of the votes. Tuffy Gessling, better known as Tuffy the Clown, is a rodeo clown who wore a mask of President Obama at the fair, asking those in the crowd if they wanted to see the president gored by a bull," is going to be the Man of the Year for 2013 in Sedalia, Missouri.
It's these little things out there, ladies and gentlemen, where you see people rising up in their own way in opposition to the daily media soap opera, status quo, narrative, or what have you.
AT&T Chief: We Have to Change the Way We Sell Cell Phones
RUSH:The CEO of AT&T, a man by the name of Randall Stephenson, said the other day that the model for cell phone purchasing has got to change. That the major carriers can no longer continue to subsidize the purchase of cell phones because the market has become too saturated, and they just can't any longer continue the practice.
Do you know what the practice is? Do you know what subsidies for telephones, cell phones are, Snerdley? 'Splain it to me, see if you do actually know what it is. (pause) No. That's close. Let's say an iPhone, 'cause that's what I know, a top line iPhone, if you go out and buy one unlocked, not tied to a carrier, state-of-the-art, will run you about 900 bucks. If you go get the same phone locked to AT&T, you can get it for $199. AT&T says that they are subsidizing the remaining price that they're not charging you. So they charge you $199 plus your two-year contract. And they claim that they are subsidizing everybody's purchase of a phone, and they can't continue this.
Well, what's the flaw in this? This is Economics 101, by the way. That's the reason I'm talking about this, not because it's cell phones. I'm talking about it 'cause it's Economics 101. There is no subsidy here. You're paying for every bit of that phone and then some. AT&T's not spending -- or no cell carrier, I don't mean to harp on AT&T. It's just their CEO who said it. You've got a phone that costs let's say 700 bucks and your price is $199 plus you promise to use it for two years on that carrier.
So you sign a two-year contract. You've gotta stay on that phone, otherwise there's a penalty. You gotta stay with that carrier, otherwise there is a penalty. And the price of the contract is whatever your monthly service is plus whatever they add on. They're not subsidizing anything. They're extending you a loan, in essence, and they're getting every dollar of it back and then some. They wanted to make it look like the cell phone carriers, the cell company can no longer afford to pay part of the purchase price, but they're not. It's just classic econ 101.
Now, they may not like the model, but it isn't a subsidy. And nobody ever says this. The fact that it's a subsidy is allowed to stand, but this is not a subsidy. Not like there are subsidies in the Obamacare market where as somebody else is paying for your health care. That's not what this is. If you go buy a cell phone for 200 bucks that normally if you bought it without a contract, without a carrier, would cost you $700, you're still spending $700 on that phone plus whatever usage you're charged. They build the price back in. They're just loaning you the money up front to buy the phone.
T-Mobile's being honest about it. The others are hiding behind the term "subsidy." But it's still interesting to me because what are they gonna do to replace it, then, if they say they can't continue the subsidies? They're not subsidies. They're loans. So if they don't want to loan customers any more, they don't want to front the money for people to buy phones, they got to change the model somehow, which may not be all bad. Maybe you go out and buy the phone at full price and go out and make the best deal you can with a carrier and do it by the month, by the year, get a bunch of different SIM cards for different carriers and do it however you wish.
You know, econ 101 and the way people get persuaded, convinced into believing things which aren't the case, particularly when they're made to believe they're being given something when they're not, that's classic. It's really so much of the welfare system, all these people think they're getting freebies, whether it's health insurance or food stamps. Somebody is always paying for it, and in most cases the recipients themselves are paying far more than they think. But they think they're getting charity, and then a political party benefits from this.
Yesterday was 240th Anniversary of the First Tea Party
RUSH: Speaking of histoire, ladies and gentlemen, do you know what yesterday was? There's no way you'll guess. I'll have to tell you. Yesterday was the 240th anniversary of the first Tea Party where the colonists, disguised as Indians, threw all of that tea into Boston Harbor. I wonder if Rush Revere will ever visit that time and place. Hmm... I wonder if that would ever happen. Rush Revere and Liberty back to the Boston Tea Party. Hmm... You know, Rush Revere was one of the Tea Party Indians. You didn't know that, did you? Interesting.