Quotulatiousness

January 20, 2024

Why Tyrian Purple Dye Is So Expensive | So Expensive | Insider Business

Filed under: Africa, Business, History — Tags: , , — Nicholas @ 02:00

Insider Business
Published 21 Jan 2023

Making authentic Tyrian purple dye starts with extracting a murex snail gland. After a series of painstaking steps, Tunisian dye maker Mohamed Ghassen Nouira turns as much as 45 kilograms of snails into a single gram of pure Tyrian purple extract. When he’s done, he can sell it for $2,700. Some retailers sell a gram of the pigment for over $3,000. In comparison, 5 grams of synthetic Tyrian purple costs under $4.

So, why is real Tyrian purple so hard to make? And is that why it’s so expensive?
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January 19, 2024

Music journalism, RIP

Filed under: Business, Media — Tags: , , , — Nicholas @ 05:00

Ted Gioia explains why music journalism is collapsing and who committed the murder:

Just a few weeks ago, Bandcamp laid off 58 (out of 120) employees — including about “half of its core editorial staff“.

And Bandcamp was considered a more profitable, stable employer than most media outlets. The parent company before the recent sale (to Songtradr) and subsequent layoffs, Epic Games, will generate almost a billion dollars in income this year — but they clearly don’t want to waste that cash on music journalism.

Why is everybody hating on music writers?

Many people assume it’s just the same story as elsewhere in legacy media. And I’ve written about that myself — predicting that 2024 will see more implosions of this sort.

Sure, that’s part of the story.

But there’s a larger problem with the music economy that nobody wants to talk about. The layoffs aren’t just happening among lowly record reviewers — but everywhere in the music business.

Meanwhile, almost every music streaming platform is trying to force through price increases (as predicted here). This is an admission that they don’t expect much growth from new users — so they need to squeeze old ones as hard as possible.

As you can see, the problem is more than just music writers — something is rotten at a deeper level.

What’s the real cause of the crisis? Let’s examine it, step by step:

  1. The dominant music companies decided that they could live comfortably off old music and passive listeners. Launching new artists was too hard — much better to keep playing the old songs over and over.
  2. So major labels (and investment groups) started investing huge sums into acquiring old song publishing catalogs.
  3. Meanwhile streaming platforms encouraged passive listening — so people don’t even know the names of songs or artists.
  4. The ideal situation was switching listeners to AI-generated tracks, which could be owned by the streaming platform — so no royalties are ever paid to musicians.
  5. These strategies have worked. Streaming fans don’t pay much attention to new music anymore.

I’ve warned about each of these — but we are now seeing the long-term results.

This is why Pitchfork is in deep trouble. If people don’t listen to new music, they don’t need music reviews.

And they don’t need interviews with rising stars. Or best of year lists. Or any of the other things music writers do for their readers.

But this problem will get much, much worse. Even the people who made these decisions will suffer — because living in the past is never a smart business strategy.

If these execs were albums, they’d deserve a zero score on the Pitchfork scale.

January 16, 2024

Why Real Dijon Mustard Is So Expensive | So Expensive Food | Business Insider

Filed under: Business, Cancon, Food, France — Tags: , , , , — Nicholas @ 02:00

Insider Business
Published 12 Jul 2022

Dijon mustard has a tangier, sharper, and spicier flavor compared to other types of mustard. It takes its name from the town of Dijon in Burgundy, France, where it originated. But despite its name, the majority of Dijon mustard that is sold all over the world doesn’t come from France. The few jars that do will cost you up to six times more than regular Dijon mustard (or double if we want to compare it to Grey Poupon). So how is real Dijon mustard different? And why is it so expensive?

Editor’s Note: In this video, the translations at 2:10 and 3:16 are incorrect. The rind of the mustard seed is wrongly referred to as “sound of mustard”. The correct translation is mustard bran. Insider regrets the error.
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January 13, 2024

The ongoing encrapification of the internet – “When I hear the phrase ‘web platform’ I reach for my gun”

Filed under: Business, Economics, History, Media, Technology — Tags: , , — Nicholas @ 05:00

Ted Gioia used to be a techno-optimist, eagerly looking forward to ever-improving online experiences. He, like so many of us, has reluctantly come to the conclusion that those hopes are fading out of sight:

I once loved new technology. I lived in the heart of Silicon Valley for 25 years, and was bursting with enthusiasm for its free-wheeling mission to transform the world — and have some fun along the way.

When the Worldwide Web made its debut, I thought I’d found Nirvana. It was like tech was turning everything into a game.

But look at me now. When I hear the phrase “web platform” I reach for my gun.

Where did it go wrong? Did I just get old and embittered? Or did something change in the tech world?

Let me share a story that might help us decide.

What kind of business spends hundreds of billions over 10 years — just to get worse?

This is a story about the birth of the search engine.

There were no commercial search engines back in 1993. But a Stanford student named David Filo compiled a list of his 200 favorite websites.

His buddy Jerry Yang helped turn this into an online list. They called it “Jerry’s Guide to the Worldwide Web”. Filo and Yang added new websites every day to their list — and classified them according to categories.

This turned into Yahoo.

Here’s my favorite part of the story: These two students didn’t even know they were running a business.

They did it for fun. They did it out of love. They did it because it was cool. “We wanted to avoid doing our dissertations”, Yang later explained.

But a venture capitalist named Mike Moritz heard about Filo and Yang, and tracked them down. The founders of Yahoo were living in total squalor in a trailer littered with stale food and pizza boxes, strewed alongside sleeping bags and overheating computers. A phone rang constantly — but nobody bothered to pick it up.

Moritz was dismayed by this dorm-room-gone-wild ambiance, but he was impressed with the students’ web searching technology. So he asked them the obvious question: How much did they plan to charge users?

Filo and Yang had no answer for this. They wanted to give their tech away for free.

Yahoo wasn’t even selling ads back then. It wasn’t tracking users and selling their private information. It didn’t even have a bank account.

But it was a community and had millions of users.

That was a word you heard frequently in Silicon Valley in the early days. People didn’t build web platforms — they formed online communities.

It was a FUN community. People enjoyed being a member. Even the absurd name Yahoo was part of the game — although early investors hated it.

Yang’s job title was “Chief Yahoo”. Filo’s position was “Cheap Yahoo”.

Investors always hate those kinds of things.

But a new web business, back then, was expected to have a silly name. Here are some of the websites launched in the mid-1990s.

Moritz wanted to turn Yahoo into a business. And the founders realized that their fun community was growing faster than they could handle in their down-and-out trailer. So they sold out 25% of Yahoo for $1 million.

January 3, 2024

They all spy on you, the FBI, RCMP, MI5 … and apparently your Subaru

Filed under: Business, Liberty, Technology, USA — Tags: , , — Nicholas @ 03:00

JoNova linked to this disturbing little article explaining what legal rights you give away merely by being a passenger in a modern Subaru vehicle:

Subaru is a Japanese car company started back in the 1950s. Their all-wheel drive, sporty SUVs and cars are popular with outdoor types and the LGBT+ community (and your privacy researcher’s Mom … Mom swears by Subaru and has since the 1980s). Popular models in the Outback, Forester, Crosstrek, Impreza, Legacy, the sporty WRX, and the electric Solterra. The MySubaru app and Subaru’s Starlink connected services offer up all the usual connected car things like remote start/stop, lock/unlock, honk your horn and flash your lights from bedroom, automatic collision notification, multimedia services like navigation and news, trip logs, and a way to manage other people who might drive your Subaru with boundary, speed, and curfew alerts. So, do we love Subaru’s privacy? Not really. But hey, they aren’t the worst car company we reviewed, so there’s that.

Here’s something you might not realize. The moment you sit in the passenger seat of a Subaru that uses connected services, you’ve consented to allow them to use — and maybe even sell — your personal information. According to their privacy policy, that means things like your name, location, “Audio recordings of Vehicle Occupants“, and inferences they can draw about things like your “characteristics, predispositions, behavior, or attitudes“. Call us bonkers, but we don’t think that simply sitting in the passenger seat of someone’s Subaru should mean you consent to having any of your personal information use for, well, pretty much anything at all. Let alone potentially sold to data brokers or shared with third party marketers so they can target you with ads about who knows what based on the the inferences they draw about you because you sat in the back seat of a Subaru in the mountains of Colorado. We’re gonna really call out Subaru for this, because they lay it out so clearly in their privacy policy, but please know, Subaru isn’t the only car company doing this sort of icky thing.

If you go read Subaru’s privacy policy (or don’t, we did it for you, you can just read our review here), you’ll see at the very start they say this: “This Privacy Policy applies to each user of the Services, including any ‘Vehicle Occupant’, which includes each driver or passenger in a Subaru vehicle that uses Connected Vehicle Services, such as Subaru Starlink (such vehicle, a ‘Connected Vehicle’), whether or not such driver or passenger is the vehicle owner or a registered user of the Connected Vehicle Services. For the avoidance of doubt, for purposes of this Privacy Policy, ‘using’ the Services includes being a Vehicle Occupant in a Connected Vehicle.” So yeah, they don’t want there to be any doubt that when you sit in a connected Subaru, you’ve entered the world of using their services.

December 15, 2023

Bill S-210 “isn’t just a slippery slope, it is an avalanche”

You sometimes get the impression that the only person in Ottawa who actually pays attention to online privacy issues is Michael Geist:

“2017 Freedom of Expression Awards” by Elina Kansikas for Index on Censorship https://flic.kr/p/Uvmaie (CC BY-SA 2.0)

After years of battles over Bills C-11 and C-18, few Canadians will have the appetite for yet another troubling Internet bill. But given a bill that envisions government-backed censorship, mandates age verification to use search engines or social media sites, and creates a framework for court-ordered website blocking, there is a need to pay attention. Bill S-210, or the Protecting Young Persons from Exposure to Pornography Act, was passed by the Senate in April after Senators were reluctant to reject a bill framed as protecting children from online harm. The same scenario appears to be playing out in the House of Commons, where yesterday a majority of the House voted for the bill at second reading, sending it to the Public Safety committee for review. The bill, which is the brainchild of Senator Julie Miville-Duchêne, is not a government bill. In fact, government ministers voted against it. Instead, the bill is backed by the Conservatives, Bloc and NDP with a smattering of votes from backbench Liberal MPs. Canadians can be forgiven for being confused that after months of championing Internet freedoms, raising fears of censorship, and expressing concern about CRTC overregulation of the Internet, Conservative MPs were quick to call out those who opposed the bill (the House sponsor is Conservative MP Karen Vecchio).

I appeared before the Senate committee that studied the bill in February 2022, where I argued that “by bringing together website blocking, face recognition technologies, and stunning overbreadth that would capture numerous mainstream services, the bill isn’t just a slippery slope, it is an avalanche”. As I did then, I should preface criticism of the bill by making it clear that underage access to inappropriate content is indeed a legitimate concern. I think the best way to deal with the issue includes education, digital skills, and parental oversight of Internet use including the use of personal filters or blocking tools if desired. Moreover, if there are Canadian-based sites that are violating the law in terms of the content they host, they should absolutely face investigation and potential charges.

However, Bill S-210 goes well beyond personal choices to limit underage access to sexually explicit material on Canadian sites. Instead, it envisions government-enforced global website liability for failure to block underage access, backed by website blocking and mandated age verification systems that are likely to include face recognition technologies. The government establishes this regulatory framework and is likely to task the CRTC with providing the necessary administration. While there are surely good intentions with the bill, the risks and potential harms it poses are significant.

The basic framework of Bill S-210 is that it creates an offence for any organization making available sexually explicit material to anyone under the age of 18 for commercial purposes. The penalty for doing so is $250,000 for the first offence and up to $500,000 for any subsequent offences. Organizations (broadly defined under the Criminal Code) can rely on three potential defences:

  1. The organization instituted a “prescribed age-verification method” to limit access. It would be up to the government to determine what methods qualify with due regard for reliability and privacy. There is a major global business of vendors that sell these technologies and who are vocal proponents of this kind of legislation.
  2. The organization can make the case that there is “legitimate purpose related to science, medicine, education or the arts”.
  3. The organization took steps required to limit access after having received a notification from the enforcement agency (likely the CRTC).

The enforcement of the bill is left to the designated regulatory agency, which can issue notifications of violations to websites and services. Those notices can include the steps the agency wants followed to bring the site into compliance. This literally means the government via its regulatory agency will dictate to sites how they must interact with users to ensure no underage access. If the site fails to act as instructed within 20 days, the regulator can apply for a court order mandating that Canadian ISPs block the site from their subscribers. The regulator would be required to identify which ISPs are subject to the blocking order.

December 9, 2023

The coming Micro-Macro culture war … and who’s going to win it

Filed under: Business, Economics, Media, Technology, USA — Tags: , , , , , , , , — Nicholas @ 05:00

Ted Gioia outlines the dismal state of the “macro” culture — television, movies, newspapers, book publishing and all the big corporations that control them — with the dynamism of the “micro” culture:

In the beginning, all culture was microculture.

You knew what was happening in your tribe or village. But your knowledge of the wider world was limited.

So you had your own songs and your own stories. You had your own rituals and traditions. You even had your own language.

But all these familiar things disappeared when you went off into the world. That was dangerous, however. That’s why only heroes, in traditional stories, go on journeys.

You learn on the journey. But you might not survive.

But all that changed long before I was born.

In my childhood, everything was controlled by a monoculture. There were only three national TV networks, but they were pretty much the same.

    When I went to the office, back then, we had all watched the same thing on TV the night before. We had all seen the same movie the previous weekend. We had all heard the same song on the radio while driving to work.

The TV shows were so similar that they sometimes moved from CBS to NBC, and you never noticed a change. The newscasters also looked pretty much the same and always talked the same — with that flat Midwestern accent that broadcasters always adopted in the US.

The same monoculture controlled every other creative idiom. Six major studios dominated the film business. And just as Hollywood controlled movies, New York set the rules in publishing. Everything from Broadway musicals to comic books was similarly concentrated and centralized.

The newspaper business was still local, but most cities had 2 or 3 daily newspapers — and much of the coverage they offered was interchangeable. Radio was a little more freewheeling, but eventually deregulation allowed huge corporations to acquire and standardize what happened over the airwaves. [NR: I suspect the “freewheeling” went away once the government started imposing regulations, and the corporate consolidation was enabled when they “deregulated” the radio licensing regime several decades later.]

When I went to work in an office, back then, we had all watched the same thing on TV the night before. We had all seen the same movie the previous weekend. We had all heard the same song on the radio while driving to work.

And that’s why smart people back then paid attention to the counterculture.

The counterculture might be crazy or foolish or even boring. But it was still your only chance to break out of the monolithic macroculture.

Many of the art films I saw at the indie cinema were awful. But I still kept coming back — because I needed the fresh air these oddball movies provided. For the same reason, I read the alt weekly newspapers and kept tabs on alt music.

In fact, whenever I saw the word alt, I paid attention.

That doesn’t mean that I hated the major TV networks, or the large daily newspaper, or 20th Century Fox. But I craved access to creative and investigative work that hadn’t been approved by people in suits working for large organizations.


The Internet should have changed all this. And it did — but not much. Even now the collapse in the monoculture is still in its early stages.

But that’s about to change.

If you don’t pay close attention, the media landscape seems pretty much the same now as it did in the 1990s. The movie business is still controlled in Hollywood. The publishing business is still controlled in New York. The radio stations are still controlled by a few large companies. And instead of three national TV networks plus PBS, we have four dominant streaming platforms — who control almost 70% of the market.

So we still live in a macro culture. But it feels increasingly claustrophobic. Or even worse, it feels dead.

Meanwhile, a handful of Silicon Valley platforms (Google, Facebook, etc.) have become more powerful than the New York Times or Hollywood studios or even Netflix. It’s not even close — the market capitalization of Google’s parent Alphabet is now almost ten times larger than Disney’s.

But here’s the key point — these huge tech companies rely on the microculture for their dominance.

Where is Facebook without users contributing photos, text and video? Where is Google’s YouTube without individual creators?

In terms of economic growth or audience capture, the microculture has already won the war. But it doesn’t feel that way.

Why not?

First and foremost, Silicon Valley is a reluctant home for the microculture. To some extent Alphabet and Facebook are even going to war with microculture creators — they try to make money with them even while they punish them.

  • So Mark Zuckerberg needs creators, but won’t even let them put a live link on Instagram and limits their visibility on Facebook and Threads.
  • Alphabet needs creators to keep YouTube thriving, but gives better search engine visibility to total garbage that pays for placement.
  • Twitter also claims it wants to support independent journalists — but if you’re truly independent from Elon Musk, your links are brutally punished by the algorithm.

This tension won’t go away, and next year it will get worse. The microculture will increasingly find itself at war with the same platforms they rely on today.

And legacy media and non-profits are even more hostile to emerging media. Go see who wins Pulitzer Prizes, and count how many journalists on alternative platforms get honored.

I’ll save you the trouble. They don’t.

December 8, 2023

The Real Betty Crocker’s Pineapple Upside Down Cake

Filed under: Books, Business, Food, History, Media, USA — Tags: , , , , , — Nicholas @ 02:00

Tasting History with Max Miller
Published 22 Aug 2023
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December 2, 2023

Joe Biden solves the inflation problem, fat!

Filed under: Business, Economics, Government, Media, Politics, USA — Tags: , — Nicholas @ 04:00

Like any lying dog-faced pony soldier would know, it’s as easy as saying “Trunalimunumaprzure“:

Inflation is kicking just about everyone in the junk here lately, regardless of whether that junk is an innie or an outie. It’s been rough on a lot of us, but I know just how hard it’s been on me and mine.

Prices are up significantly over the last few years and my income isn’t up nearly as much. This creates issues with our finances. The upside is that it’s forced me to be better with money.

But prices are still higher than Willie Nelson on a SpaceX flight.

Luckily, President Joe Biden has figured out the solution to all our problems. He’s going to just tell companies to drop prices.

Yes, seriously.

    This week, the White House announced the launch of a Council on Supply Chain Resilience, created with the hope to “strengthen America’s supply chains” and “lower costs for families.”

    President Joe Biden delivered remarks from the White House on Monday to announce the new council’s creation. He touted the lower inflation rate and falling grocery prices but admonished American companies for, in his view, not going far enough.

    “Let me be clear: To any corporation that has not brought their prices back down — even as inflation has come down, even as supply chains have been rebuilt — it’s time to stop the price gouging,” Biden warned, imploring them to “giv[e] the American consumer a break.”

Here’s the issue, at least as I see it.

At Thanksgiving, it was noted here that prices are nearly 20 percent higher than in 2019. This while inflation has supposedly decreased. Prices are still high because it’s not so much that inflation has fallen but that the rate of inflation’s increase has fallen. It doesn’t mean prices should drop, only that they should increase at a slower rate.

December 1, 2023

QotD: The OODA loop

Filed under: Business, Military, Politics, Quotations — Tags: , — Nicholas @ 01:00

There was a fighter pilot named John Boyd who became the most important strategic theorist writing in English during the 20th century. He began with E/M (energy-maneuverability theory), which became the basis on which modern fighter aircraft are designed and modern fighter tactics taught. He ended his career as one of the architects of the winning “left-hook” strategy in the 1991 Gulf War. Connecting these was a general theory of military effectiveness (and more generally, organizational effectiveness) centered around what he called the OODA loop.

OODA theory is worth reading about in more depth for anyone interested in … well, any kind of competitive dynamics, actually – military, commercial, individual, anything. The Wikipedia article is a good start. Stripped to its essentials, the theory is that competing entities have to go through repeated iterations of observing conditions, relating observation to a generative theory, deciding what option to pursue, and acting. Victory tends to go to the competitor who can run this cycle the fastest.

OODA theory was originally generalized from the observation that in fighter design, maneuverability (especially a shorter turning radius) beats straight-line speed. When you get inside your opponent’s OODA loop, either physically or conceptually, you can attack him from unexpected angles. You can be where he isn’t. You have the initiative; he is reduced to reacting, often with too little and too late.

Eric S. Raymond, “The Smartphone Wars: Tightening the OODA Loop”, Armed and Dangerous, 2011-02-18.

November 30, 2023

Canadian government declares victory over Google, then lays down its arms and marches into captivity

Filed under: Business, Cancon, Media, Politics, Technology — Tags: , , , — Nicholas @ 05:00

The Trudeau government has won a glorious, historic victory over the evil capitalistic powers of Google in the war of Bill C-18. Let all patriotic Canadians raise their hands to cheer our victorious politicians before they have to admit out loud that they fucked up real good:

Heritage Minister Pascale St. Onge has surrendered to Google and Canadian media have avoided what would have been a catastrophic exclusion from the web giant’s search engine.

In the short term, this is very good news. The bureaucrats at Heritage must have performed many administrative contortions to find the words needed in the Online News Act‘s final regulations to satisfy Google, a beast which isn’t easily soothed. In doing so, they have managed to avoid what Google was threatening — to de-index news links from its search engine and other platforms in Canada. Given that Meta had already dropped the carriage of news on Facebook and Instagram in response to the same legislation, Google’s departure would have constituted a kill shot to the industry.

Instead, the news business will get $100 million in Google cash. For this, all its members will now fight like so many pigeons swarming an errant crust of bread.

The agreement will also allow the government, while surrounded by an industry whose reputation and economics have been devastated by this policy debacle, to attempt to declare victory. Signs of that are already evident.

That’s the good news.

The bad news is that while 100 million bucks is nothing to sneeze at, in the grand scheme of things it is a drop in the bucket for an industry in need of at least a billion dollars if it is to recover any sense of stability. Indeed, when News Media Canada first began begging the government to go after Google and Meta for cash, some involved were selling the idea that sort of loot was possible.

This did not turn out to be so.

Instead of the $100,000 per journo cashapalooza that was once hoped for, the final tally will be more like $6,666.00 per ink-stained wretch.

That figure is based on two assumptions. The first is that the government has agreed to satisfy Google’s desire to pay a single sum to a single defined industry “collective” that would then divide the loot on a per-FTE (full-time employee) basis to everyone granted membership in the industry’s bargaining group. Google had made it clear it had no interest in conducting multiple negotiations and exposing itself to endless and costly arbitrations. So, as we have a deal and Google held all the cards, it’s fair to assume it got what it wanted — a single collective with a single agreement and a single cheque.

November 27, 2023

The slackening pace of technological innovation

Filed under: Business, Economics, Media, Technology, USA — Tags: , , , , — Nicholas @ 04:00

Freddie deBoer thinks we’re living off the diminishing fumes of a much more innovative and dynamic era:

I gave a talk to a class at Northeastern University earlier this month, concerning technology, journalism, and the cultural professions. The students were bright and inquisitive, though they also reflected the current dynamic in higher ed overall – three quarters of the students who showed up were women, and the men who were there almost all sat moodily in the back and didn’t engage at all while their female peers took notes and asked questions. I know there’s a lot of criticism of the “crisis for boys” narrative, but it’s often hard not to believe in it.

At one point, I was giving my little spiel about how we’re actually living in a period of serious technological stagnation – that despite our vague assumption that we’re entitled to constant remarkable scientific progress, humanity has been living with real and valuable but decidedly small-scale technological growth for the past 50 or 60 or 70 years, after a hundred or so years of incredible growth from 1860ish to 1960ish, give or take a decade or two on either side. You’ve heard this from me before, and as before I will recommend Robert J. Gordon’s The Rise & Fall of American Growth for an exhaustive academic (and primarily economic) argument to this effect. Gordon persuasively demonstrates that from the mid-19th to mid-20th century, humanity leveraged several unique advancements that had remarkably outsized consequences for how we live and changed our basic existence in a way that never happened before and hasn’t since. Principal among these advances were the process of refining fossil fuels and using them to power all manner of devices and vehicles, the ability to harness electricity and use it to safely provide energy to homes (which practically speaking required the first development), and a revolution in medicine that came from the confluence of long-overdue acceptance of germ theory and basic hygienic principles, the discovery and refinement of antibiotics, and the modernization of vaccines.

Of course definitional issues are paramount here, and we can always debate what constitutes major or revolutionary change. Certainly the improvements in medical care in the past half-century feel very important to me as someone living now, and one saved life has immensely emotional and practical importance for many people. What’s more, advances in communication sciences and computer technology genuinely have been revolutionary; going from the Apple II to the iPhone in 30 years is remarkable. The complication that Gordon and other internet-skeptical researchers like Ha-Joon Chang have introduced is to question just how meaningful those digital technologies have been for a) economic growth and b) the daily experience of human life. It can be hard for people who stare at their phones all day to consider the possibility that digital technology just isn’t that important. But ask yourself: if you were forced to live either without your iPhone or without indoor plumbing, could you really choose the latter? I think a few weeks of pooping in the backyard and having no running water to wash your hands or take a shower would probably change your tune. And as impressive as some new development in medicine has been, there’s no question that in simple terms of reducing preventable deaths, the advances seen from 1900 to 1950 dwarf those seen since. To a remarkable extent, continued improvements in worldwide mortality in the past 75 years have been a matter of spreading existing treatments and practices to the developing world, rather than the result of new science.

ANYWAY. You’re probably bored of this line from me by now. But I was talking about this to these college kids, none of whom were alive in a world without widespread internet usage. We were talking about how companies market the future, particularly to people of their age group. I was making fun of the new iPhone and Apple’s marketing fixation on the fact that it’s TITANIUM. A few of the students pushed back; their old iPhones kept developing cracks in their casings, which TITANIUM would presumably fix. And, you know, if it works, that’s progress. (Only time and wear and tear will tell; the number of top-of-the-line phones I’ve gone through with fragile power ports leaves me rather cynical about such things.) Still, I tried to get the students to put that in context with the sense of promise and excitement of the recent past. I’m of a generation that was able to access the primitive internet in childhood but otherwise experienced the transition from the pre-internet world to now. I suspect this is all rather underwhelming for us. When you got your first smartphone, and you thought about what the future would hold, were your first thoughts about more durable casing? I doubt it. I know mine weren’t.

Why is Apple going so hard on TITANIUM? Well, where else does smartphone development have to go? In the early days there was this boundless optimism about what these things might someday do. The cameras, obviously, were a big point of emphasis, and they have developed to a remarkable degree, with even midrange phones now featuring very high-resolution sensors, often with multiple lenses. The addition of the ability to take video that was anything like high-quality, which became widespread a couple years into the smartphone era, was a big advantage. (There’s also all manner of “smart” filtering and adjustments now, which are of more subjective value.) The question is, who in 2023 ever says to themselves “smartphone cameras just aren’t good enough”? I’m sure the cameras will continue to get refined, forever. And maybe that marginal value will mean something, anything at all, in five or ten or twenty years. Maybe it won’t. But no one even pretends that it’s going to be a really big deal. Screens are going to get even more high-resolution, I guess, but again – is there a single person in the world who buys the latest flagship Samsung or iPhone and says, “Christ, I need a higher resolution screen”? They’ll get a little brighter. They’ll get a little more vivid. But so what? So what. Phones have gotten smaller and they’ve gotten bigger. Some gimmicks like built-in projectors were attempted and failed. Some advances like wireless charging have become mainstays. And the value of some things, like foldable screens, remains to be seen. But even the biggest partisans for that technology won’t try to convince you that it’s life-altering.

November 26, 2023

Ontario’s beer market may see radical changes soon

Filed under: Business, Cancon, Government, Wine — Tags: , , , , , — Nicholas @ 03:00

For beer drinkers outside Ontario, the province’s weird beer retailing rules may seem to be from a different time, but that’s only because they are. Until fairly recently, the only place to buy beer was from one of two quasi-monopoly entities: the provincially owned and operated LCBO or the foreign brewery owned Beer Store. LCBO outlets were limited to single containers and six-packs, while Beer Stores sold larger multipacks and also handled bottle deposits and returns. In the last few weeks, the Ontario government has indicated that long overdue changes are coming:

“The Beer Store” by Like_the_Grand_Canyon is licensed under CC BY-NC 2.0

The only thing we really know at this point (and it’s been reported by the Toronto Star and now CBC, and earlier by this website, all from sources) is the horribly unfair deal The Beer Store has had since 1927 in Ontario is about to come to an end. It’s expected that The Beer Store will be given notice by the end of December under the Master Framework Agreement (MFA) that the deal will be all but dead. They will have two years to wrap things up while a more modern system of booze retailing is fine-tuned and prepared for implementation. There’s a new era dawning in Ontario, one that would seemingly benefit grocery and convenience stores, local brewers, Ontario wineries, and obviously consumers who will get wider selection, more convenience and competitive pricing.

“The MFA has never been about choice, convenience or prices for customers, it has always been about serving the interests of the big brewing conglomerates, and that’s what needs to be addressed,” Michelle Wasylyshen, spokesperson for the Retail Council of Canada, whose board of directors includes members from Loblaw, Sobeys, Metro, Walmart, and Costco, told Mike Crawley of the CBC.

The end of The Beer Store MFA in whatever iteration it will look like will have a cascading impact on local VQA wine. Ontario wineries hope that it’s a positive impact and are cautiously optimistic that wide open beer and wine sales at grocery and convenience stores means more sales and less levies for their products.

As the CBC pointed out in its story, the looming reforms “pit a range of interests against each other, as big supermarket companies, convenience store chains, the giant beer and wine producers, craft brewers and small wineries all vie for the best deal possible when Ontario’s almost $10-billion-a-year retail landscape shifts. And — this is a biggie — the LCBO lobbying efforts to keep its antiquated system of monopoly retailing intact, which seems to be a big ask with what we now know from sources. Something must give.

Some key bullet points from the CBC report:

  • Will the government shrink the LCBO’s profit margins, including its take from products that other retailers sell?
  • Will retailers such as grocery and convenience stores be required to devote a certain amount of shelf space to Ontario-made beer and wine, or will they have total control over the inventory they stock?
  • Will small Ontario wineries get any help in competing against big Ontario wineries whose products can contain as much as 75% imported wine?

The government has been listening to all stakeholders in the booze industry in Ontario for over a year now. Three key associations — Ontario Craft Wineries, Tourism Partnership Niagara, and Wine Growers Ontario — joined together to commission a report titled Uncork Ontario. That report, which concludes that the Ontario wine sector is well positioned to drive sustainable economic growth for the region, the province, and the country and has the potential to drive at least $8 billion in additional real GDP over the next 25 years, launched a campaign to lobby the government for radical changes to reach those lofty goals, or at least put the wheels in motion.

One of the big issues for Ontario wineries is a punishing 6.1% “sin” tax charged on every wine made in Ontario but not foreign wines. It’s a tax that’s been hurting Ontario wineries for years even though a grant was issued to wineries to help pay that tax back. To this date, the tax has not been cancelled and wineries keep remitting the tax owed monthly and can only hope the grant keeps getting extended. Ontario wines are among the highest taxed in the world with up to 73% of every bottle sold going to taxes and severe levies at the LCBO.

November 24, 2023

More than 1,500 new jobs thanks to federal and provincial subsidies … except the jobs are for South Koreans

Filed under: Asia, Business, Cancon, Government — Tags: , , , , , — Nicholas @ 03:00

Tristin Hopper applauds the great job creation scheme that the federal and Ontario governments have put in place … if you ignore the inconvenient fact that most of the newly created jobs aren’t even going to Canadians:

When the Ontario and federal governments greenlit one of the biggest corporate subsidy payouts in Canadian history last summer, their main pitch was the deal would create jobs.

“The governments of Canada and Ontario are partnering to attract once-in-a-generation projects that will anchor our auto manufacturing sector and keep good jobs in Canada,” reads the opening line of a July 6 joint statement announcing a record-breaking $28 billion in government “performance incentives” to secure two foreign-owned EV battery factories in Southern Ontario.

The subsidy-per-job ratio was never great. Even according to the most optimistic estimates of government spokespeople, the two factories — one operated by Volkswagen, the other by Stellantis — would create about 5,500 jobs. Per job, that’s roughly $5 million in lifetime subsidies and tax credits.

But now, it appears that many of those jobs may not even go to Canadians.

Last week, during a visit by South Korean Ambassador Woongsoon Lim to Windsor, Ont., a social media post by the Windsor Police casually mentioned that “1,600 South Koreans” would soon be arriving in the community to staff the Stellantis plant, which is set to open next year.

    With the new LGEngergy Solutions battery plant being built, we expect approximately 1,600 South Koreans traveling to work and live in our community in 2024.

    — Windsor Police (@WindsorPolice) November 16, 2023

The CEO of NextStar — the Stellantis joint venture operating the factory — hasn’t confirmed the 1,600 figure, but said in a statement that the “equipment installation phase of the project requires additional temporary specialized global supplier staff”. He added that the company was “committed” to hiring Canadians to fill the 2,500 full-time jobs at the completed plant

The revelation has sparked a wave of confusion and finger-pointing among the very officials who, mere months ago, were championing the plant as an unalloyed triumph for Canadian manufacturing jobs.

When the subsidy arrangement was first announced in July, Ontario Economic Development Minister Vic Fedeli called it a “historic deal” and “a great agreement” that “protects the thousands of jobs quite frankly that were at stake”.

November 22, 2023

Marginal Thinking and the Sunk Cost Fallacy

Filed under: Business, Education — Tags: — Nicholas @ 02:00

Marginal Revolution University
Published 1 Aug 2023

Thinking on the margin is one of the most fundamental concepts in economics – and a valuable everyday tool for making optimal decisions.

For such an important idea, the meaning of marginal thinking is surprisingly simple: when faced with a decision, you should compare the marginal benefit of a possible action to its marginal cost. If the marginal benefit is greater than the marginal cost, do it!

Marginal thinking is best illustrated by some examples of everyday decisions. The volume you choose when you watch TV, the pricing strategy of a clothing shop, or even the decision to walk out of a boring film are all informed by marginal thinking.

The “Sunk Cost Fallacy” is a common failure to apply marginal thinking. Focusing on past decisions – the price we paid for an item, the time we’ve already invested in a relationship – can lead us astray. We can’t change the past, so only the potential marginal benefit and marginal cost of the next possible action are relevant to decision-making.
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