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Invasive mussel confirmed in Utahs Electric Lake
Southern Ledger - November 21, 2008
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Microsoft lets Zune music subscribers keep tunes
Southern Ledger - November 21, 2008
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Astronauts end spacewalk to repair gummed-up joint
Southern Ledger - November 21, 2008
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Dubai parties at hotel gala despite economic gloom
Southern Ledger - November 21, 2008
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Warsaw marks borders of former ghetto
Southern Ledger - November 21, 2008
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Pakistan protests to US over deep missile strike
Southern Ledger - November 21, 2008
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Afghanistan markets its brand of pomegranates
Southern Ledger - November 21, 2008
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China says 19,000 students died in May earthquake
Southern Ledger - November 21, 2008
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Dems delay auto bailout vote, seek plan from Big 3
Southern Ledger - November 21, 2008
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IS RUSH WORTH $400 MILLION?
July 7, 2008 -
July 14, 2008
News reports that talk radio giant Rush Limbaugh had inked a new eight year contract with his syndicator, Premier Radio Networks, for a reported $400 million payout immediately produced breathless outrage from some in the media ranks. “Is he worth that,” they asked with derision dripping from their lips. “Is ANYBODY worth that amount of money?” The short answer is “yes.”
Rush (who is among a tiny group of super celebrities who have achieved one name status) is not stealing this money, nor is he obtaining it through fraud or deceit. Premier clearly believes that they can pay him that huge sum and still make a boatload of money themselves. That is how business in free markets works.
Unlike superstar college athletes who sign big contracts with massive signing bonuses before ever throwing their first NFL touchdown or slamming down their first NBA dunk, Rush has already proven himself to be a moneymaker of epic proportions. NY Yankee superstar Alex Rodriquez set a professional sports record when he signed a ten year $275 million contract last year, but Rush has a bigger fan base, plays a longer “season” than the 162 game stint expected of Rodriquez, and is, without a doubt, the dominant force in his “sport.”
Rush did not marry into his wealth, like Senator John Kerry. He didn’t inherit it like Senator Ted Kennedy. And he hasn’t generated it by profiteering from a mass hysteria that he himself created, like Al Gore through his global warming and carbon credit scams. No, Rush has earned his payday the old-fashioned way - being the very best at what he does. He is, quite simply, the Tiger Woods of talk – who pulls down about $20 million a year himself from just one of his sponsors, Nike. Is Tiger worth it? You bet; just like Rush.
Rush Limbaugh has between fifteen and twenty million listeners, most of whom tune in daily. That means Rush’s new contract translates into about $2.50 per listener per year. He is on the air roughly 250 days a year, so that comes to about a penny per listener per day. One cent for each listener each day. “A penny for your thoughts” certainly applies to the millions who tune in each day to hear Rush’s thoughts on a myriad of issues.
A nice direct mail piece to Rush’s fifteen to twenty million listeners would easily cost $2.50, or less, with design, printing and postage. An advertiser could send out one such piece a year, or have Rush talk about them daily, for roughly the same cost as his “exorbitant” contract. Which would have more impact? Which one is a better value?
Premier is betting that a lot of advertisers will (and many already have) see the value in paying large sums of money to be heard on Rush’s show by his millions of loyal listeners. Some will pay extra to receive his direct endorsement. Those marketing products and services regularly pay a premium in order to reach motivated and loyal shoppers. Auto racing relies on that sort of loyalty in selling advertising space on NASCAR race cars by the inch! If advertisers could pay to put their logos on Rush they would do so in a heartbeat.
Those who are most disturbed by Rush’s new contract are clearly motivated by envy and political animus. Their criticism of Rush’s compensation also reveals a complete ignorance of the relatively simple economics that underlie the deal. Is anybody worth a $400 million contract. No, but Rush Limbaugh is not just “anybody.” |
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THE VEEPSTAKES BEGINS. -
July 2, 2008 -
July 9, 2008
Barack Obama and John McCain will soon intensify the process of selecting their Vice Presidential nominees. Pundits will earnestly debate the merits of each prospective candidate in exhaustive detail. But ultimately the test that will determine each man’s choice is relatively simple: “Who best helps me win the White House?”
The most important factor in picking a Vice Presidential nominee should be whether or not the person is ready and able to serve as President. In reality the selectio... |
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THE BATTLE OVER GUNS WILL CONTINUE. -
June 26, 2008 -
July 3, 2008
The ink was barely dry on the historic Supreme Court decision in Heller when the anti-gun crowd started a new assault on gun rights. In Heller the Court struck down a 32 year old gun ban in Washington, D.C. and specifically recognized the Second Amendment as an individual right rather than a collective right.
The Court, in a 5-4 decision written by Justice Antonin Scalia, also found a Constitutional right to possess a handgun as a matter of personal self defense: “There are many reason... |
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JUDGES GONE WILD! -
June 19, 2008 -
June 26, 2008
In recent years many black-robed judges have shown themselves to be legislators at heart, as they impose their political ideology and agendas from the bench. Though they apparently lack the willingness, or ability, to win such legislative battles at the ballot box they are able to succeed in both writing the laws AND interpreting them thanks to the weak-kneed acquiescence of the Legislative and Executive branches of government. But having achieved the ability to dictate their will to society at... |
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WILL NEW NASHVILLE CONVENTION CENTER BE NAMED FOR TAXPAYERS? -
June 12, 2008 -
June 19, 2008
The planned new convention center for downtown Nashville is back in the news with the selection of a Maryland-based Clark Construction Group as construction manager. The costs for the project have already risen from a “mere” $455 million when first announced two years ago to what is expected to be an amount in excess of $635 million. The ultimate cost is almost certain to be much higher than that, since public projects seldom come in at the promotional “sticker price.”
In fact, the cost... |
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ECONOMICS 101 REVEALS THE TRUTH ABOUT HIGH GAS PRICES -
June 5, 2008 -
June 12, 2008
As gasoline prices nudge closer and closer to an average of $4 a gallon there is a lot of hue and cry in Washington about who to blame. The blame game makes for interesting political banter, but it is highly unlikely that drivers will see any relief at the pump coming from the posturing and posing bureaucrats and political hacks in D.C.
The Democrats blame Big Oil, despite the fact that Big Government actually takes a much larger share from the price of a gallon of gas in the form of l... |
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