"michael gurstein" <[email protected]> wrote:

> From: [email protected] [mailto:[email protected]] On
>       Behalf Of Charles Brown
> [snip]
> I have three telco lines at my home office (No. Calif.) and just  
> received invoices reflecting price increases of 14%, 17% and 18%,  
> respectively.
>
> [snip]
>
> I called the Calif. CPUC and asked them to explain how it is that they  
> were able to approve such a large percentage rate increase, or any  
> rate increase, in the midst of a "severe recession."  I was blown-off  
> of course.

If lots of people are in deep financial trouble and you sell a service
which is essential to other people who are not (yet) in deep trouble to
stay out of trouble, raise your prices.  The people who are not (yet)
in deep financial trouble still have, by definition, some money or
credit which they could be using to pay you in order to *stay* out of
trouble.

See also the announced Blue Cross premium increase in California. [1]
It's a wonder that they haven't hit on the notion of raising premiums
to, say, $2 billion/year.  Only Warren Buffet and Bill Gates could
afford it but they'd only have to maintain one 2-bed hospital with the
best technology, luxurious amenities and the country's top specialists
on call.


- Mike


[1]
http://www.truthout.org/waxman-launches-probe-into-blue-crosss-massive-california-rate-increases56787

-- 
Michael Spencer                  Nova Scotia, Canada       .~. 
                                                           /V\ 
[email protected]                                     /( )\
http://home.tallships.ca/mspencer/                        ^^-^^
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