Yes, times are tougher than they otherwise could be; however, to claim that the bumps in the road over the last few years show that “capitalism is in crisis” is absurd.
[. . .]
Even with the a few recessions, Real per-capita Gross Domestic Product is a lot higher than it was in 1960, 1970, 1980, 1990, or 2000. The truly unique fact about the world as it has changed in the last few centuries is that, as a number of economic historians have emphasized, we live in a world where economic growth is taken to be the norm. [...]
Indeed, as the economist Joseph Schumpeter pointed out long ago, capitalism has given us the time and energy to criticize capitalism. People content themselves by being outraged at working conditions in Foxconn plants in China. However, it is the economic growth we have achieved in the western world that allows us the comfortable working conditions from which we express horror at working conditions elsewhere in the world. Further, not all the workers are greeting the reformers as saviors (HT: Doug Stuart). If people are willing to trade off longer working hours for higher incomes, I don’t see how it’s my right to stop them.
[. . .] Donald J. Boudreaux points out how we have to be very careful with income data if we are going to get an accurate picture of trends in standards of living.
If we’re going to talk about “stagnation” we also have to be very clear about precisely what we mean. Consider the near-ubiquity of the iconic gizmo of the early 21st century and its technological cousin: the smart phone and social media. My Forbes.com colleague Erik Kain reported in February that “472 million smartphones were sold worldwide in 2011.” In a world of 7 billion people, the top 1% would be 70 million people. If all the gains really went to them, that would be about six and a half smartphones each for the members of the world’s Top 1%. I’m pretty sure that isn’t what’s happening.
Art Carden, “It’s the Final Crisis of Capitalism, Charlie Brown!”, Forbes, 2012-04-10
April 11, 2012
QotD: The silly claims about “capitalism in crisis”
March 30, 2011
For the bacon fans
Restaurants have been known to capitalize on food trends, but few dare go as far as Denny’s:
Denny’s is bringing on the bacon.
The all-American diner is about to begin advertising a new limited-time menu of seven bacon-centric items for breakfast, lunch and dinner dubbed “Baconalia.” While the bacon trend has been several years in the making, the $548 million chain is capitalizing on it now because “we truly believe the bacon trend is here to stay” said John Dillon, VP-marketing and product development at Denny’s. “We’re not on the cutting edge, but, we’re really bringing it mainstream by being the first chain to offer it on a fully dedicated menu. No chain has embraced it like we have.”
Among the items included in Baconalia are Bacon Meatloaf, Ultimate Bacon Breakfast Triple Bacon Sampler — with, you guessed it, three kinds of bacon — as well as items that employ more unconventional uses for bacon, such as Bacon Flapjacks and the Maple Bacon Sundae, an ice-cream sundae with maple-flavored syrup and sprinkling of bacon. Mr. Dillon said that so far, the sundae has generated the most buzz and excitement.
February 3, 2011
Urban China: growth market for luxury goods
The most liberalized areas of China have become a magnet for the purveyors of ostentatious luxury items:
The Chinese may have an age-old reputation as great savers, but China’s young people are now making up for generations of lost spending time.
Compared with the austere youth of China’s older generations, who went through the turmoil of the Cultural Revolution and strove to build savings in a nation without a social safety net, the young, raised in an unprecedentedly wealthy China, are spending freely.
[. . .]
As the world’s fastest growing luxury market, China’s appetite for high-end Western branded goods is fast becoming insatiable, with predictions by Boston Consulting Group suggesting that within five years, 29 percent of global luxury product consumption will come from China. And while European and US luxury sales are making a slow recovery after the global financial crisis, China—relatively untouched and still optimistic—remains the most important market for luxury retailers. Indeed, this was the theme behind last year’s 5th Annual China Luxury Summit, which was given the grandiose subtitle of ‘China Luxury Market: An Oasis of Hope and Possibility’.
China as the deus ex machina of the luxury world is a concept familiar to European retailers. Last Saturday, for example, the Italian luxury brand Prada staged its first fashion show in Beijing. Like French cosmetics and perfume brand L’Occitane, which listed in Hong Kong last year, Prada is expected to have an initial public offering in Hong Kong.
No need to reiterate that this is only a phenomenon in the urbanized areas of China: the vast majority of Chinese consumers are unable to access the fast growing markets and still live to a large extent under the direct control of the party.
December 16, 2010
Wine pricing: the trade-off between quality and prestige
I haven’t actually listened to the Freakonomics podcast on whether expensive wines taste better, but I suspect the answer will be “no”.
I’ve been interested in wines for quite some time now, but I’ve found something that caps the amount of money I’m willing to pay for a bottle of wine to well under $100. Either my palate is insufficiently developed to taste the differences between a $40 wine and a $90 wine, or there really isn’t that much difference.
For most people, most of the time, once you get above the bargain-basement level of wine, you can usually find good, flavourful wine for between $15 and $20. What you may not be able to find is a wine in that price range that will impress your date or your guests. If you’re trying to impress, price will have to be one of the most important part of your decision: fewer people will be as impressed by your really good bargain as will be impressed by the big ticket bottle of “Chateau de Fancy French Name” . . . even if they taste the same.
Believe it or not, the most dominant flavor may be the dollars. Thanks to the work of some intrepid and wine-obsessed economists (yes, there is an American Association of Wine Economists), we are starting to gain a new understanding of the relationship between wine, critics and consumers.
One of these researchers is Robin Goldstein, whose paper detailing more than 6,000 blind tastings reaches the conclusion that “individuals who are unaware of the price do not derive more enjoyment from more expensive wine.”
So why do we pay so much attention to critics and connoisseurs who tell us otherwise?
That’s the question we set out to answer in this podcast.
June 7, 2010
The worst drink in America is “Masochistic, but cheerful!”
Remember when I posted a short item about the worst beverage in America saying “Thank goodness this chain isn’t in operation anywhere near here”? According to Drew Halfnight, I’m not keeping up with the times — it’s apparently available in Canada.
But how does it feel to drink one? A spokesman for Tim Horton’s, which sells Cold Stone products in 40 locations across Canada, told me: “It’s apparently delicious.” But I know a thing or two about ice cream — I inherited a mean sweet tooth — I wanted to experience it for myself.
So, I zipped down to the nearest Cold Stone Creamery location — #2533 at Yonge and Eglinton in Toronto — and handed over $5.19 plus tax for a taste of death. The “Gotta Have It” size — 24.5 ounces — is not available in Canada, so I ordered the next best thing, a 20-ouncer.
The things people will do just to get a story . . .
The taste is intense: a saccharine blast of sugary chocolate, sugary peanut butter and just plain sugar, which engenders a third, chalky undertaste. But it only takes a few sips of the stuff before the sugar totally numbs my palate and I can’t really taste anything except richness. I’d liken the overall drinking experience to slurping up melted Ben & Jerry’s ice cream with a little homo milk thrown in. Masochistic, but cheerful!
May 22, 2010
The worst beverage in America
Thank goodness this chain isn’t in operation anywhere near here:
April 13, 2010
Expect to read more stories like this
Britain’s welfare support system was originally designed to provide temporary assistance — at barely-above-survival-levels — to workers and their families until the primary wage-earner could find new work. It wasn’t intended to provide this kind of support:
The Davey family’s £815-a-week state handouts pay for a four-bedroom home, top-of-the-range mod cons and two vehicles including a Mercedes people carrier.
Father-of-seven Peter gave up work because he could make more living on benefits.
Yet he and his wife Claire are still not happy with their lot.
With an eighth child on the way, they are demanding a bigger house, courtesy of the taxpayer.
Hard to blame ‘em, really: if you can get substantially more through welfare support than you can by working, what’s the incentive to keep that job? Once upon a time, it was shame that would provide that extra spur to keep people in marginal economic circumstances from claiming welfare or other social benefits, as friends and neighbours would disdain them. These days? They’re probably envied by the next-door and down-the-street folks still dumb enough to get jobs.
At their semi on the Isle of Anglesey, the family have a 42in flatscreen television in the living room with Sky TV at £50 a month, a Wii games console, three Nintendo DS machines and a computer — not to mention four mobile phones.
With their income of more than £42,000 a year, they run an 11-seater minibus and the seven-seat automatic Mercedes.
But proof that material wealth does not translate directly into happiness, the Daveys still yearn for things they can’t yet have. But at least they’re not feeling burdened by feelings of guilt or shame:
She added: ‘I don’t feel bad about being subsidised by people who are working. I’m just working with the system that’s there.
‘If the government wants to give me money, I’m happy to take it. We get what we’re entitled to. I don’t put in anything because I don’t pay taxes, but if I could work I would.’
[. . .]
Mrs Davey, who spends £160 a week at Tesco, says she does not intend to stop at eight children. Her target is 14.
And she adds: ‘I’ve always wanted a big family — no one can tell me how many kids I can have whether I’m working or not.’
It’s true: in spite of all the other intrusions into everyday life by the British and European bureaucracies, there are still things they can’t tell you.
H/T to Jon (my former virtual landlord) for the link.
October 30, 2009
Tweet of the day: Expensive food
Stephen Fry: A spoonful of paté de campagne Ardéchois à l’ancienne is not really that far distant from a spoonful of catfood. Just notably more expensive
