Spitzer and Small Business

Last December, your humble online editor had a chance to hear Eliot Spitzer give his view for New York. In a nutshell, his prescription for the state's economic woes--particularly upstate--was to increase government intervention in education and regulation. Pouring gasoline on a flame is generally a bad firefighting strategy.

Indeed, if small business owners across the state want a sneak preview into their future under a Spitzer regime, the ghost of Spitzer future would like to show you his current "price gouging" witchhunt:

When gasoline prices spiked in Katrina's wake, Spitzer invoked the ['70s price gouging] statute against stations across the state.

Last September, the AG's office subpoenaed sales information from dozens of gas stations across the state, subsequently offering settlements to those it determined had gouged. Most chose to pay a fine rather than fight. But three refused; Spitzer is now pursuing civil cases against all three.

"[Spitzer's] ruined my reputation in [Oswego County] forever," fumes Joe Wiedenbeck Jr., who owned the Penn-Can Truck Stop Mobil in Center Square (Oswego County) at the time of the alleged gouging (he's since sold his business and retired to Florida). "We were in business for 31 years; we donated to every cause in the area.

"Why is he coming after me?" asks Danny Cianciulli, owner and manager of My Service Center in New Rochelle - who says that his station lost money in the post-Katrina weeks, and on the year. In fact, he put up $50,000 of his savings just to keep the station afloat.

"Price gouging?" asks Cianciulli. "I haven't taken a vacation since 1985. I work from 7 a.m. until 7 p.m., six days a week. . . . It's my obligation to sell as low as I can. When gas prices go up, I lose money. If people think they're being mistreated, they go elsewhere."

That's Spitzer's regulatory framework: if you are in business, you will be tied to a heavy chair and thrown into a lake. If you sink, you were an honest businessman. If you float, you're a profiteer and will be burned at the stake.

by Nikhil Bhat, Monday, Jun. 5 | Permalink