Quotulatiousness

July 5, 2014

The mystic art of going viral – The Putter

Filed under: Britain, Business, Media, Technology — Tags: , — Nicholas @ 13:02

This is Collosal posted a lovely little video a few days ago, showing how one small century-old firm in Sheffield still “puts-together” scissors in the old way:

It’s been a popular video. It’s been a very popular video. In fact, it went viral.

The staff at Ernest Wright and Son Limited have been overwhelmed with interest from people who saw the video and decided they wanted a pair of hand-made scissors. A member of one of my mailing lists says he just got this response from the company about his order (placed before the video went online):

Dear Madam or Sir,

Firstly, may we thank you VERY MUCH for ordering a pair (or more) of our Hand-made in Sheffield England, Ernest Wright and Son Limited scissors.

Secondly, may I please take a moment to explain our current situation.

As you doubtless know, Shaun Bloodworth’s film “The Putter” was uploaded to the internet on Monday 23rdJune. We had been very much looking forward to seeing this film, if purely as an educational exercise documenting the immense skills of the ‘putter-togetherer’.

What we might not have expected was that Shaun’s own amazing skill, coupled with the gorgeous sound work from The Black Dog (wow!), would make such a beautiful and sensory-encompassing experience of something we just see our Cliff and Eric do every day.

And what we REALLY didn’t expect was for this film to go ‘viral’! This was not a ‘commercial launch’ by any means at all; so much as Shaun merely uploading the film for us back here in the factory to see. The power of the internet is truly an incredible and awesome thing.

This has rather caught us at an ‘interesting’ time. We have not been doing particularly well for a number of years as a business and have worryingly dwindled in size. Recently we actually had to make further redundancies and at a few times have thought that the end was truly nigh for Ernest Wright’s altogether. Cheap scissors are ubiquitous; no-one seems (seemed!) particularly interested in how scissors are made any more, and hardly anyone understood paying the price for a good pair – regardless of how we have ever tried to explain it. (Enter Shaun and “The Putter” – and what a benefit, hopefully, to us all!)

There are now just the five of us here in our little business:

Cliff and Eric are our putter-togetherers, although Cliff does the vast majority of the putting whilst Eric is also a skilled hand-grinder and finisher. Eric’s hands are actually those seen working the ‘insider’ machine in The Putter, linishing the inside of the bows (handles) with sparks flying in either direction. These two are both working through retirement years now – purely helping me to keep something we feel is so important, alive.

It would be remiss of me not to mention Ian, who eventually only retired last autumn (2013). All three can be seen here together by the way in a 2012 BBC documentary – http://www.youtube.com/watch?v=IitTC4PqcOI

These chaps have never earned too much – and there honestly hasn’t been too much to earn for a while. But they work hard; so very, very hard. And until around about this Tuesday, they had incredibly little appreciation for their life’s devotion to their craft. I am genuinely so touched that they are finally getting a mention, they so thoroughly deserve it.

We also now have young Jamie and Ryan, who are ‘the young blood’ apprentices and have been with us for around two years now. They began by learning tapping, grinding, then linishing, and are now slowly learning the full art of putting-together themselves – although not at all yet commercially. Practice will one day hopefully make them perfect.

Finally I am the managing director, van driver, salesman, go-fetcher and hopelessly-part-time receptionist. Ernest Wright was my great-grandfather, who formed the company in 1902. I took over when my father almost decided to close the business in 2012, and have since made it my mission in life to save these skills and their type – particularly in Sheffield, the hometown I am so very proud of.

So. Basically after a very long spell of quiet, since around Tuesday morning this week we have been suddenly inundated. With (gratefully) telephone calls, emails, tweets, views, messages, letters and (very gratefully) individual orders. I am honestly struggling to keep up at the moment. The telephone system has crashed and my inbox cannot download fast enough.

Regardless my aim is this: everyone who has ordered a pair of Cliff and Eric’s wonderful-handiwork scissors will receive them; as speedily and safely as is possible.

Ironically Cliff had gone off a well-earned holiday on Monday, and will be sitting in a deck chair in Filey or somewhere for the next week yet – hopefully wondering why on earth he is being asked for an autograph! He knows nothing about his new-found ‘internet popularity’, although he will be completely shy and modest about it as always when he finds out. Only Shaun’s down-to-earth and inconspicuous approach led him to be even filmed in the first place. Regardless I’m sure he will be pleased he can “learn some more” and get cracking with his hammer upon his return.

I cannot honestly promise how long these scissors are going to take to get to you at the moment! we haven’t yet worked out how many of each type are even required. Then they take a little while to be made – but you might know that now! One thing we won’t do, because Cliff and Eric would refuse every time, is to ‘do a rush job’. Your scissors might not always look quite perfect either, but that’s not what we 100% care about. Every pair might have a tiny mark, a scratch, a blemish or even the odd hammer dent, but that is precisely because they are hand, and not machine, made. They are made to be used, not looked at, is our opinion. What we concentrate on more than anything is that they work. Perfectly, every time. I actually reckon you that you can see that in Cliff’s face though, I’ve seen that a thousand times off-camera too.

We are working on strict order-date basis. I am hoping to keep up with at least broadcast emails for the next week until we see how much of a potential flash-in-the-pan this may be. It would be sadly more ironical than anything if this great new interest hurt us rather than helped, so please give me some time to address this situation properly? Meantime we have managed to send out quite a lot of orders already but the previous held-stock is now very low and new orders are still arriving! The lads are certainly preparing to get busy – apart from poor oblivious Cliff in his deckchair at the moment of course.

If orders are going to take more than one month to arrive, I will try to let you know in the next week? I hope that’s ok, it is honestly the very best we can do for now!

If you would prefer a refund, of course I understand completely. Please email me by reply to nick.wright@ernestwright.co.ukwith the title just “REFUND” and at least your order number (usually 4 digits) in the text. I will then get to it as soon as I also can.

Meantime THANK YOU so much, both to old followers and many new friends, for this amazing and wonderful support. This might be our chance for once to shine again. I will try my level best to reciprocate as much as I possibly can.

Yours with kindest regards,

Nick.

Nick Wright
Director
Ernest Wright and Son Limited
www.ernestwright.co.uk

July 2, 2014

EU publishers want a totally different online model for content – where they can monetize everything

Filed under: Business, Europe, Law, Media — Tags: , , — Nicholas @ 10:19

Glyn Moody reports on the passionate desire of EU publishing organizations to get rid of as much free content as possible and replace it with an explicit licensing regime (with them holding all the rights, of course):

For too many years, the copyright industries fought hard against the changes being wrought by the rise of the Internet and the epochal shift from analog to digital. Somewhat belatedly, most of those working in these sectors have finally accepted that this is not a passing phase, but a new world that requires new thinking in their businesses, as in many other spheres. A recent attempt to codify that thinking can be found in a publication from the European Publishers Council (EPC). “Copyright Enabled on the Network” (pdf) — subtitled “From vision to reality: Copyright, technology and practical solutions enabling the media & publishing ecosystem” — that is refreshingly honest about the group’s aims:

    Since 1991, Members [of the EPC] have worked to review the impact of proposed European legislation on the press, and then express an opinion to legislators, politicians and opinion-formers with a view to influencing the content of final regulations. The objective has always been to encourage good law-making for the media industry.

The new report is part of that, and is equally frank about what lies at the heart of the EPC’s vision — licensing:

    A thread which runs through this paper is the proliferation of ‘direct to user’ licensing by publishers and other rights owners. Powered by ubiquitous data standards, to identify works and those who have rights in those works, licensing will continue to innovate exponentially so that eventually the cost of serving a licence is close to zero. The role of technology is to make this process seamless and effective from the user’s perspective, whether that user is the end consumer or another party in the digital content supply chain.

[…] the EPS vision includes being able to pin down every single “granular” part of a mash-up, so that the rights can be checked and — of course — licensed. Call it the NSA approach to copyright: total control through total surveillance.

Last year, when the National Post started demanding a paid license to quote any part of their articles (including stories they picked up from other sources), I stopped linking to their site. I suspect most Canadian bloggers did the same, as I see very few links to the newspaper now compared to before the change in their policy. It worked from their point of view: I’m certainly not sending any traffic to their site now, and there was never a chance of me being able to afford their $150 per 100 word licensing rate. Win-win, I guess. The EPS is hoping to avoid that scenario playing out in Europe by mandating that all content use the same kind of licensing, backed up by the power of the courts (and the kind of pervasive surveillance tactics the NSA and its Anglosphere partners have honed to a very fine edge).

“Fixing” soccer games for fun and profit

Filed under: Business, Law, Soccer — Tags: , , , , , — Nicholas @ 08:49

Bill Barnwell discusses what we know (or what we’ve been told) about corruption in soccer matches all the way from Finland to Cameroon to the current World Cup fixtures in Brazil:

Late Monday night, FIFA’s worst nightmare began to break. The Cameroon Football Federation sent out an urgent press release announcing that they were investigating claims that several of Cameroon’s recent matches were fixed, most notably the country’s 4-0 loss to Croatia during the group stage of the World Cup. The allegations come from a story in German newspaper Der Spiegel, which reported that notable alleged Singaporean match fixer Wilson Raj Perumal told the paper in a pre-match Facebook chat that the African side would have a player sent off in the first half before losing 4-0. Both would later occur in the match. Perumal further alleged that the Cameroon team had “seven bad apples” and has been involved, to some extent, with fixing all three of its group stage matches before exiting the tournament.

Perumal has since issued a statement, via the co-authors of his biography, denying that he predicted the result.

Of course, allegations of fixed soccer matches aren’t anything new. What makes this so shocking and so meaningful is the idea that a World Cup match was fixed. It’s one thing for some third-division match under a rock in front of 40 people to be rigged. If a World Cup match can be manipulated with the globe watching, though, is there any match that can’t be fixed?

[…]

Perumal and an associate eventually found their way to Scandinavia, where they would fix matches at a number of clubs in Finland. Most notably, Perumal offered to invest more than a million Euros in struggling Finnish side Tampere United if they allowed him to invite several awful players from outside the country on the take to come play for the club. They took about half of the money and didn’t bother to play the players Perumal brought on; they’re also now banned from Finnish soccer. For some of his fixes, Perumal was actually able to issue instructions during matches to players on the pitch from the team bench.

Perumal suggests that he didn’t need influence over much of a team to fix a match, preferring to focus on the defense. “I prefer back-line players: the two central defenders, the last man stopper and the goalkeeper. If you can get three back-line players on your payroll then you can execute a fix because, when you want to lose, the attackers can’t help you,” he wrote.

[…]

As for Cameroon, well, it’s hard to say what will become of them. If there are seven players on the team who are proven to have fixed matches at the World Cup, their punishment will be severe, with permanent banishment from the sport a likely option. I’ll be intrigued to see what the investigation reveals, even if I’m very skeptical that an investigation conducted by the Cameroon FA and FIFA will be very thorough. They have little to gain from revealing their own corruption. I don’t know that Cameroon necessarily manipulated results during this World Cup, but I would be surprised if the entire tournament actually went untouched by match fixers. There’s simply too much to be gained and too little to stop it from occurring.

June 28, 2014

QotD: The dangers of self-publishing

Filed under: Books, Business, Humour, Quotations — Tags: — Nicholas @ 00:01

Call from the project manager on a big, glossy, high-end coffee-table book I recently proofread …

Project Manager: Oh. My. God! We can’t possibly implement all these changes! There’s just red EVERYwhere.

Me: They’re not changes, they’re corrections.

PM: But it’ll take days.

Me: Yes, and because there are so many I suggest you get someone to read it again.

PM: But we go to print on Friiiiiday *wail*

Me: Maybe the editor should look at it again then. Who’s the editor?

PM: The author. And me.

Me: No, who’s the E-D-I-T-O-R?

PM: No, seriously, the author and me.

Me: No frikkin’ kidding. (Okay, that was under my breath…)

Publish Cape Town, Facebook, 2014-06-26.

June 27, 2014

Indonesia’s SoldatenKaffee re-opens

Filed under: Asia, Business, WW2 — Tags: , — Nicholas @ 07:27

After some minor redecoration, the Nazi-themed SoldatenKaffee has re-opened in Bandung:

Really, there is no reason you should be offended by the SoldatenKaffee, its owner insists.

True, this cafe in Bandung, Indonesia’s third largest city, features a portrait of Adolf Hitler over its fireplace. There are also giant Third Reich iron eagles bearing swastikas on the wall, next to Nazi posters. And yes, some of its customers are wearing military uniforms and Nazi armbands.

But this is definitely NOT a Nazi-themed place. Nope, not at all.

The owner wants to make this very clear, once for all.

A Nazi swastika insignia sign on the floor decorates the interior of the reopened SoldatenKaffee in Bandung city, western Java island on June 21, 2014. The Nazi-theme cafe in Indonesia that sparked international outrage and closed shop has reopened with its walls still bearing swastikas and a large painting of Adolf Hitler. AFP PHOTO / TIMUR MATAHARI

“We have a lot of customers from Europe and they don’t have a problem with the World War II theme, because it is seen here from a historical perspective,” the owner also said at the cafe’s reopening.

But somehow, the Hitler pictures, Hitler quotes on the wall and swastikas suggest otherwise. The fact that the cafe’s Facebook page is full of Nazi propaganda doesn’t help either.

Knowledge of the Holocaust and the Nazi era is not widespread in Indonesia. Winda, who works in Jakarta but studied in Bandung, says she doesn’t really remember studying the topic at school and only heard about concentration camps after she left. “Perhaps the Holocaust was mentioned, but very briefly, we only heard about Adolf Hitler,” she says. “I think we were taught to dislike the Jews more than the Nazis.”

The owner may not understand why this is of such interest to the Western media, but he clearly knows that keeping that attention on his café is good for business.

June 24, 2014

Fairtrade loses the moral high ground

Filed under: Africa, Business, Media — Tags: , — Nicholas @ 11:53

Following up on an article from earlier this month on Fairtrade’s business and ethical problems, Rossa Minogue talks to Professor Christopher Cramer who lead the investigation on which the report was based:

I ask Cramer if he was surprised by the study’s findings. ‘Yes and no’, he says. ‘[Fairtrade] perpetuated this fantasy of rural Africa being full of small, family farmers with roughly the same amount of land as each other. Unless there was an extraordinarily benign trickle-down effect, you wouldn’t really expect things to be much better [on Fairtrade farms]. But to find that the wages were worse and that most of the working conditions were worse, that did surprise me — and it’s a puzzle.’

The study’s findings were certainly disconcerting for Fairtrade’s supporters. They showed that farm labourers often make less on Fairtrade farms than non-Fairtrade farms, while many smallholders live in abject poverty. So, does Fairtrade benefit anyone in Third World agriculture? Cramer tells me that, during his four years of field research, his team realised that what Fairtrade defined as ‘smallholders’ covered everything from owners of farms of half a hectare to 130 hectares. The owners of bigger farms, he tells me, ‘are the ones who capture most of the direct benefits. They also tend to control the leadership of the cooperatives.’ So it seems that the larger farms, the ones that would presumably be doing alright anyway, are the only ones that reap the rewards of Fairtrade — a programme allegedly aimed at helping the poorest of the poor.

Cramer’s report is definitely a damning indictment of Fairtrade, which is why Fairtrade is doing all it can to smear its findings. When I wrote about Cramer’s findings a few weeks ago, I was informed that people who had tweeted my piece received direct tweets from Fairtrade UK, dismissing the article as sensationalist and untrue. Naturally, Cramer has borne the brunt of this hostility: ‘There was a legal threat made against us when [Fairtrade officials] saw the first draft of our press release’, he says. ‘They’ve also sent me hostile letters.’

[…]

In the West, people are often puzzled as to why rural Africans give up what is sometimes perceived to be a poor but idyllic existence in the countryside to live in the slums on the outskirts of cities. However, this puzzlement ignores the harsh realities of rural poverty. For many, moving to the city, where they can at least eke out a living, is the only rational choice. So what is the best path out of poverty for the farmhands of Africa?

‘That’s a big question. The focus must be on increasing agricultural productivity and that involves a lot of things, including infrastructure and investment. I don’t buy into the small-is-beautiful paradigm. My research shows that if you’re interested in driving up quality and enhancing productivity, as well as the lives and prospects of the poorest people, large-scale production has its advantages. Betting on the strong can also be betting on the weak.’

June 22, 2014

“Draw Play” Dave on how Minnesota got the Super Bowl in 2018

Filed under: Business, Football, Humour — Tags: , , — Nicholas @ 10:20

I probably don’t need to say that the Super Bowl is a big ticket item … that much must be clear even to people who don’t have any conscious awareness of the NFL. Part of the push for a new football stadium in Minnesota was the hope that the new stadium would allow Minneapolis/St. Paul to bid on (and hope to win) the competition to host the Super Bowl in the newly completed stadium. The NFL being what it is, this meant a lot of “sweeteners” had to be offered to entice the league up to the deep freeze of Minnesota in the middle of winter. (Full disclosure: I’ve never been to Minnesota in winter, so maybe I’m just being swayed by pro-winter propaganda, but I believe it gets a tad cooler in the land of the ten thousand frozen lakes than it does in, say, Miami.)

“Draw Play” Dave Rappoccio admits he’s a bit late to this story, but I rather liked it anyway:

Click to see the full cartoon

Click to see the full cartoon

Again, older news that I never got to, but deserved a joke.

Has anyone actually looked up the requirements for cities to host the Super Bowl? The NFL is shameless in how is screws cities over and I can’t believe cities sign up for it.

June 20, 2014

QotD: Whiskey and bourbon

Filed under: Business, History, Humour, Quotations, USA — Tags: , , , — Nicholas @ 00:02

Whiskey in the USA has a long, colourful history. (Note that it is indeed spelt with an “e”, along with Irish whiskey — the Scotch and Canadian varieties are both plain whisky.)

One of the most illustrious early American distillers was George Washington, who manufactured the stuff commercially at his place near Mount Vernon in Virginia, and was very proud of the high reputation of his merchandise. I’m sure it was great for its time, but then and for long afterwards the general run of whiskey must have been pretty rough. I’ve often thought that the really amazing achievement of the Western hero wasn’t his ability to shoot a pip out of a playing card at fifty paces, nor even his knack of dropping crotch first into his saddle from an upstairs window, but the way he could stride into the saloon, call for whiskey, knock it back neat and warm in one and not so much as blink, let alone burst into paroxysms of uncontrollable coughing.

All that, of course, is changed now. American whiskeys are second to none in smoothness, blandness, everything that goes to make a fine spirit. Some of them, like Washington’s product and many since, are based on rye, but nearly all the brands we see in the UK belong in the bourbon category. Bourbon (rhymes with turban) gets its name from Bourbon County, Kentucky, where the first stills of this type were set up, though it’s long been regularly made in several other states besides. Federal law requires bourbon whiskey to be derived from a cereal mash of at least 51 per cent corn, which is to say Indian corn, often called maize over here, though it’s the identical vegetable that makes you, or me, so tremendously fat eaten off the cob.

The manufacturing process is carried out by means of large stills that operate on exactly the same principle as the patent or Coffey stills used in the production of grain whisky in Scotland. The young spirit is then drawn off to mature in specially charred oak barrels. Until recently, these were required to be new, but it seems that nowadays used casks are permitted. This is bad news for some distillers in Scotland, who formerly imported the secondhand casks to age their own whisky in.

Prominent brands of bourbon available in the UK include Jim Beam, Old Grandad, Wild Turkey, and Jack Daniel’s. Wild Turkey is a newcomer, to this country at any rate, and increasingly tipped as the best. Jack Daniel’s is the established quality leader. Strictly it isn’t a bourbon at all, but a Tennessee whiskey made at Lynchburg in Moore County, no less.

Don’t go there, as I once did. Moore County turned out to be dry and all I got to drink all day was a glass of cold tea at Madame Bobo’s Boarding House. I doubt if things have changed much.

Kingsley Amis, Everyday Drinking: The Distilled Kingsley Amis, 2008.

June 12, 2014

Winnipeg Grade 9 students successfully hack Bank of Montreal ATM

Filed under: Business, Cancon, Technology — Tags: , , , , — Nicholas @ 08:00

“Hack” is the wrong word here, as it implies they did something highly technical and unusual. What they did was to use the formal documentation for the ATM and demonstrate that the installer had failed to change the default administrator password:

Matthew Hewlett and Caleb Turon, both Grade 9 students, found an old ATM operators manual online that showed how to get into the machine’s operator mode. On Wednesday over their lunch hour, they went to the BMO’s ATM at the Safeway on Grant Avenue to see if they could get into the system.

“We thought it would be fun to try it, but we were not expecting it to work,” Hewlett said. “When it did, it asked for a password.”

Hewlett and Turon were even more shocked when their first random guess at the six-digit password worked. They used a common default password. The boys then immediately went to the BMO Charleswood Centre branch on Grant Avenue to notify them.

When they told staff about a security problem with an ATM, they assumed one of their PIN numbers had been stolen, Hewlett said.

“I said: ‘No, no, no. We hacked your ATM. We got into the operator mode,'” Hewlett said.

“He said that wasn’t really possible and we don’t have any proof that we did it.

“I asked them: ‘Is it all right for us to get proof?’

“He said: ‘Yeah, sure, but you’ll never be able to get anything out of it.’

“So we both went back to the ATM and I got into the operator mode again. Then I started printing off documentation like how much money is currently in the machine, how many withdrawals have happened that day, how much it’s made off surcharges.

“Then I found a way to change the surcharge amount, so I changed the surcharge amount to one cent.”

As further proof, Hewlett playfully changed the ATM’s greeting from “Welcome to the BMO ATM” to “Go away. This ATM has been hacked.”

They returned to BMO with six printed documents. This time, staff took them seriously.

A lot of hardware is shipped with certain default security arrangements (known admin accounts with pre-set passwords, for example), and it’s part of the normal installation/configuration process to change them. A lazy installer may skip this, leaving the system open to inquisitive teens or more technically adept criminals. These two students were probably lucky not to be scapegoated by the bank’s security officers.

June 11, 2014

Winter damage to vineyards in Niagara and on the Bench

Filed under: Business, Cancon, Wine — Tags: , , — Nicholas @ 08:20

The first — and probably not the last — definite sign of how bad this winter was for the wineries comes from today’s newsletter from Featherstone, where Louise Engel says they’ve suffered severe damage to some of the vines:

Every season is an adventure in weather here in Niagara. Every year since we bought the vineyard fifteen years ago, Dave and I have looked at each other at some point during the grape growing season, sighed deeply, and said:

“Hmm … well, never seen that before.”

This past year we added ‘polar vortex’ to our table talk. However, we were optimistic that the vines would come through relatively unscathed from the punishing winter temperatures. Our optimism was misplaced. Both the Merlot and Sauvignon Blanc vines have been badly damaged and will need extensive re-planting.

The Gewürztraminer has been virtually wiped out. We are considering replanting that entire field with a hardier variety, like Riesling. The Riesling field that was planted in 1998 is sixteen, going on seventeen, and still thrives. So it may be so long, farewell, auf Wiedersehen, goodbye Gewürztraminer.

Does this mean that prices will increase? No, it doesn’t. But if you are a fan of our Gewürztraminer, I suggest you climb ev’ry mountain to get here before it’s all gone. Forever.

If you’re not familiar with the Niagara Escarpment sub-appellations, Featherstone is in the Twenty Mile Bench: most of my favourite wineries are in this sub-appellation.

June 8, 2014

Regulating cosmetics

Filed under: Business, Government, Health — Tags: , , — Nicholas @ 11:43

Jeffrey Tucker discusses the coming crash in the world of make-up:

The organization Campaign for Safe Cosmetics doesn’t just want you to be able to have new choices about the makeup or other products you buy. It wants the FDA to be able to ban and recall products. It will decide for you what is and isn’t safe.

And it is prevailing against the industry itself, which has no interest whatsoever in selling unsafe products, but precisely the opposite. The industry is already ridiculously overregulated.

What’s the excuse? The usual nonsense about safety and security and health, along with predictable headlines about how your shampoo is giving you cancer. There is a crowd of lobbyists backed by regulators who seem to believe that all of modernity is corrupting and horrible and must be reversed until we are living in the most-primitive state of being, sans makeup, of course.

In other words, cosmetics are going the way of everything else. The quality of the product will be depleted by regulations, just as with indoor plumbing, electricity, cars, light bulbs, soaps and gas-powered tools. Entrepreneurship will be hindered and truncated. Innovation will stop. In a few years, you will wonder: Whatever happened to makeup and deodorant and hair spray that actually works? Prepare: The end is near!

Already, I’ve heard many women complain that cosmetics today are far worse than they were 10 years ago. The colors don’t behave they way they should, and color is mainly what the FDA currently controls. I don’t doubt that whatever problems exist are due to government regulations. Whenever you see consumer products that decline in quality to the point that you have to pay vastly more for something of good quality, or that high quality suddenly becomes completely unavailable, you will find the hand of government if you look hard enough.

June 7, 2014

“30, 40 or 50 years ago, a year the quality of 2013 Bordeaux would have been a complete disaster”

Filed under: Business, Europe, France, Wine — Tags: — Nicholas @ 00:01

Even in a good year, I don’t have the money to invest in Bordeaux futures, so I rarely bother to read much about them. Even so, I’d heard that the 2013 vintage was not going to be a good one given the weather that year in the region. The price for Bordeaux wines, however, didn’t do the rational thing and drop below previous (good) years: prices went up. The Wine Cellar Insider explains what happened next:

2013 Bordeaux is not the vintage of the century. The growing season, with its cold, damp character made sure of that. 30, 40 or 50 years ago, a year the quality of 2013 Bordeaux would have been a complete disaster.

But that is not what took place with 2013 Bordeaux. With the willingness to sacrifice quantity for quality, the best producers, with the financial ability to do what needed to be done made some fine wine. 2013 Bordeaux is not an exciting, sexy vintage. But having tasted close to 400 different 2013 Bordeaux wines, clearly, there are some nice wines worth drinking.

So, what’s the problem? When it comes to the wine, none. The average scores from the majority of wine writers and critics show the wines at an average of 89/90 Pts for perhaps the top 100 – 200 wines. Clearly, those are the not the scores for a bad vintage.

[…]

Had the wines been priced in proportion to consumer demand, while 2013 Bordeaux was never going to be an easy sell, it would not have been an impossible sale. I am all for the open, free market when it comes to pricing. Producers can and should price their wine for what they think the market will bear. But 2013 Bordeaux wines remain unsold. Selling the wines to a negociant is not selling the wine. Merchants need to buy and consumers need to purchase as well for it to be a true sale. For some odd reason, in the great vintages, Bordeaux has a knack for pricing the wines correctly. They might seem expensive to mature collectors that are used to paying lower prices, but for the next generation of wine lovers, the wines seem fairly priced.

I get it. On the one hand, due to the excessive unflattering and at times, unfair press, 2013 Bordeaux was never going to receive a warm reception in the marketplace. Perhaps the price the market was actually willing to pay was unappetizing to the chateau owners. But it would have been nice to see an effort. It is difficult for 2013 Bordeaux to sell through to consumers when other recent, and more successful vintages are available in the market for less money.

Bordeaux map

H/T to Brendan for the link.

June 4, 2014

A real-life experiment – does a higher minimum wage cause job losses?

Filed under: Business, Economics, USA — Tags: , , , — Nicholas @ 00:01

Seattle just changed their minimum wage to $15 per hour (that’s the city, but not the surrounding suburbs). Tim Worstall outlines what we may see in this handy real world economic experiment:

The first and most obvious effect of a $15 an hour minimum is that there are going to be job losses. Don’t forget that the message from the academic literature is that “modest” increases in the minimum don’t seem to have “much” effect on employment levels. And we’d all agree that a $100 minimum would have rather large effects. So our puzzle here is to try to decide what is the definition of “modest”. Clearly $100 an hour isn’t. But also we can dismiss something like $1 an hour as being problematic. Since no one at all gets paid a sum that small making the minimum $1, or $1.50, has no effect on anything whatsoever.

The best result we have from the academic literature is that a minimum wage in the 40-45% region of the median wage has little to no effect on unemployment. The reason being similar to that of a $1 one. So few people get paid so little that it just doesn’t affect the wages of anyone very much. The same research tells us that once we get to 45-50% of the median wage then we do start to see significant unemployment effects.

This $15 an hour in Seattle will be around 60% of the local median wage. We would therefore expect to see reasonably large unemployment effects.

We would also expect to see unemployment among high school graduates rise very much more than the rate in general. For this minimum applies only inside the City of Seattle: it doesn’t apply to the surrounding counties or suburbs that aren’t part of that political jurisdiction. Imagine that you were a college graduate having to do some basic work to make ends meet while you were waiting for that career opening. If you’re going to get $7.25 outside Seattle and $15 inside it you’d probably be willing to make the trip each day to earn that extra. Of course, as a high school graduate you would too. But now think of yourself as the employer. You’ve got the choice of a college graduate or a high school graduate, both willing to do the same job at the same price. Who are you going to hire? Logically, the higher grade worker, that college grad.

So we would expect minimum wage jobs within Seattle to be colonised by those college grads at the expense of those high school ones. We would therefore expect to see a much larger rise in the unemployment rate of those high school grads as against the general unemployment rate. In fact, we’d expect to see this happening so strongly that we’d take the empirical evidence of that widening unemployment gap to be evidence that it was this minimum wage rise causing it.

June 3, 2014

QotD: Parkinson’s Law

Filed under: Bureaucracy, Business, Humour, Quotations — Tags: , — Nicholas @ 19:32

Work expands so as to fill the time available for its completion. General recognition of this fact is shown in the proverbial phrase “It is the busiest man who has time to spare.” Thus, an elderly lady of leisure can spend the entire day in writing and dispatching a postcard to her niece at Bognor Regis. An hour will be spent in finding the postcard, another in hunting for spectacles, half an hour in a search for the address, an hour and a quarter in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the mailbox in the next street. The total effort that would occupy a busy man for three minutes all told may in this fashion leave another person prostrate after a day of doubt, anxiety, and toil.

C. Northcote Parkinson, “Parkinson’s Law, or the rising pyramid”, Parkinson’s Law (and other studies in administration), 1957.

“Fairtrade [is] a Western vanity project that impoverishes those it’s meant to benefit”

Filed under: Africa, Business, Media — Tags: , , , , , — Nicholas @ 00:01

Rossa Minogue on the image and reality of Fairtrade:

The world’s ethical shoppers are still reeling this week after a report revealed that Fairtrade programmes are of little benefit to those working on farms in the developing world.

The government-funded study published by SOAS, a part of the University of London, was conducted over a four-year period in Uganda and Ethiopia. It showed that labourers on farms that are part of Fairtrade programmes are usually paid less and are subject to worse working conditions than their peers on large commercial farms, and even other small farms that are not part of Fairtrade programmes. Professor Christopher Cramer, the study’s main author, said: ‘Fairtrade has not been an effective mechanism for improving the lives of wage workers, the poorest rural people.’

The study also found that the ‘social premium’ incorporated into the price of Fairtrade products, which is meant to be used to improve infrastructure in poor communities, is often misspent. In one instance, researchers found that modern toilets built with this premium were in fact for the use of senior farm managers only. The report also documented examples of health clinics and schools set up with social-premium funds that charged fees that were too high for the labourers they were intended to benefit.

Of course, nobody needed the clever people at SOAS to tell us all this. From its very inception, the concept of Fairtrade was rooted in maintaining low ‘sustainable’ horizons for the poor by those who consider people in Africa and other parts of the Third World to be intrinsically different to the rest of us. The movement did not originate with the poor farmers of the developing world, but with Western NGOs and their army of gap-year do-gooders intent on imposing their reactionary ‘small is beautiful’ values on an Africa desperate for change.

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