Quotulatiousness

February 13, 2014

“Minimize your therbligs”, or Taylor versus Gilbreth

Filed under: Business, History, USA — Tags: , , , — Nicholas @ 09:05

Sippican Cottage makes a strong case for Frank Bunker Gilbreth being the greatest man ever produced by Maine (republishing an older post from 2012):

Frank Gilbreth was born in Fairfield, Maine, in 1868. He never went to college except to teach at Purdue eventually. He’s famous, in a way, and anonymous in another. He’s the father portrayed in the original Cheaper By The Dozen, using a stopwatch to figure out how to make his family more efficient. That was his thing — efficiency.

He was a bricklayer. Built houses. He got to wondering if the repetition of laying one oblong slug of fired clay atop two others in a bed of mortar could be improved by observing the motions of skilled persons, breaking these exertions down into their component movements, and eliminating the wasted motions in the routines. It can, and he did. I’ve been a hod carrier and mason tender, and I can tell you that working off the ground or a platform the same height as your feet would be backbreaking and slow way to assemble masonry. We always used the footing form boards and leftover planks to assemble ad hoc shelves just lower than waist height behind the mason so that they could turn and pick up a brick and some mortar and go back to the next slot in the wall. I had no idea Clifton Webb, er, Frank Gilbreth came up with the idea less than a century before. It would be literally impossible to calculate how much time, money, effort, and how many worker’s backs Frank Gilbreth (and his wife, who was his partner and carried on after his early death) saved anonymously. His method is now universal and uncontroversial. How many people are incalculably useful to their fellow men?

I first heard of Gilbreth in my first college semester, and while the biographical detail is new to me, the basic idea is the same as my (post-strike replacement) instructor described. So who’s the “Taylor” of my title?

Frederick Taylor is the progenitor of so many things that are in the common language today that he deserves to be discussed with the most influential people of his time. That’s not necessarily a good thing. Almost all the fruit of Taylor’s tree is rotten.

Taylor is the guy standing behind dehumanized workers with a stopwatch, keeping track of bathroom breaks, and generally treating all work as a series of unrelated steps that any unskilled human could do, and constantly finding new ways of measuring it and subdividing it to harangue a little more out of the continually less and less skilled worker. “Scientific Management,” they called it. The Soviet Union loved it. They thought all people were just cogs in a big machine anyway. Most of the terms for malingering in dead-end jobs come from Taylorism. Goldbricking. Dogging it. Taylor observed that when normal people are in a group and everyone has the same duties, it is human nature for everyone in the group to devolve and perform at the level of the least capable and energetic member. His solution was a big expansion of management. He is the busted idol of micromanagement, and by extension, big government.

I have a lovely leather-bound copy of Taylor’s The Principles of Scientific Management that I’ve never actually opened … it was on the used book charity fundraising table at my local bank branch, so I paid $1 for it. From Sippican’s description, I may not bother to read it, as I think I’ve encountered most of the content in the working world.

Minimize your therbligs until it becomes automatic; this doubles your effective lifetime — and thereby gives time to enjoy butterflies and kittens and rainbows.

That’s Robert Heinlein in his “Lazarus Long” character voice. What the heck is a therblig, and why is it in this post? Therbligs are Gilbreth’s basic motions of physical work; the essential parts of any manual task. Minimize them to make the work more efficient. The name is derived, as my college instructor put it, by spelling Gilbreth sideways.

February 12, 2014

The Beer Store’s pre-emptive strike against a competitive market in Ontario

Filed under: Business, Cancon, Government, Law — Tags: , , , , — Nicholas @ 11:22

Yesterday I got a robo-call from someone representing The Beer Store (what used to be known as the Brewer’s Retail … for my American readers, think of your local DMV crossed with a Cold War-era Soviet department store). The call was to alert me to the possibility that the Ontario government might do something to destroy the worker’s paradise we live in today and allow the total anarchy of private sales of beer, wine, and liquor. I was invited to take part in some sort of “town hall” meeting where all the interested parties would be represented … if you consider only those who are afraid of this change being introduced as being all of the interested parties.

As we all know, the Ontario government isn’t comfortable with the idea of letting go of their own vast-profit-generating booze sales machine (the LCBO), and I doubt that the current Premier and her party are actually going to break the foreign-owned oligopoly that currently controls the sale of beer in the province. In spite of that, the Beer Store and their “stakeholders” are mounting a rather hysterical counter-offensive to preserve the current status quo. As Colby Cosh points out, their success or failure will probably hinge on keeping Ontarians innocent of how a non-monopolized market works in other jurisdictions … particularly in Alberta:

It is encouraging to see so much ridicule being flung at the Beer Store’s “study” defending its role in the Soviet-flavoured Ontario liquor retailing system. The effectiveness of the Beer Store’s white paper depends on its Ontario audience knowing no practical details of freer retail schemes, particularly Alberta’s: yet, by an amusing paradox, the ur-source for the report appears to be Alberta. No one was willing to attach his name to the report itself, but it comes with a foreword by the Parkland Institute’s Greg Flanagan, who deems it a “valuable contribution”—one that, on an unrelated note, makes heavy use of Flanagan’s own past polemics against liquor privatization. What a terrible shame nobody took credit for this excellent document!

What Colby is missing is that Ontario is a unique, precious snowflake of a province, whose residents are unable to handle this so-called “freedom of choice”. Our loving government is protecting our vulnerable, weak-willed selves from the evils of a callous, uncaring, exploitative sector of the economy that ruthlessly wants to sell us more of their intoxicating poisons at lower prices. This is why we must stand firm against “free markets” and rally our shrinking moral forces!

He even admits that the destruction of Alberta’s proud, noble, and much-loved liquor monopoly has brought untold misery and ruin to literally tens, possibly even hundreds, of Albertans:

The effect of liquor-retail privatization in Alberta was to put liquor stores in many small towns that did not have them before and on darn near every block in the big cities. Most, by design, are small stores with large markups. Before privatization you had a handful of stores in the entire province, all offering strongly regulated uniform prices. But you might have to travel a long way to get the advantage of these prices; you might have to leave work early to show up before closing, particularly if you intended to load up for a weekend or a party; and you might have to stand in a queue when you arrived. (Ah, memories.) And if you didn’t compute your needs accurately and you ran out of booze at the wrong moment, you were out of luck.

After privatization, there are stores everywhere, open all the time, on every day but Christmas; and you might be charged an extra buck on a 12-pack. Go on: ask 10 Albertans who are old enough to remember the old system if they would like to go back. I’ve actually performed this exercise, and I usually get ten “hell no”s. But if you make your sample a hundred, you will certainly find a person or two in one of two categories: (1) socialists nostalgic for the days when ALCB employees were duly organized, and could shut down all liquor sales in the province by striking; (2) geriatric grouches who really don’t enjoy alcohol and don’t like its ready availability and what’s with those goddamn kids these days with the reefer and the XBox and the hey hey hey.

See? He even admits that prices went up! Proof that market failure is smeared all over Alberta! And queues are a good thing: they allow you to meet your neighbours and have long, pleasant conversations about all kinds of things! Albertans have been wantonly deprived of this wonderful balm of human contact and interaction!

No, Ontarians are not ready — and may never be ready — for the additional burden of free choice and wider selections at lower prices. We must set our hearts and minds to work against this tradition-destroying innovation and keep our booze prices high and variety minimal!

February 11, 2014

Quebec’s anti-capitalist heritage

Filed under: Business, Cancon, History — Tags: , , , — Nicholas @ 13:15

At The Gods of the Copybook Headings, Richard Anderson looks at the problem Quebec has with entrepreneurial and capitalist tendencies:

The hatred of capitalism in the “Quebec Dark Ages” had little to do with Anglo economic dominance. That most quintessential of Canadian capitalist icons, the coureur de bois, was a black marketer who flouted the authority of the colonial government and the sanctioned merchant class. Official French society, on both sides of the Atlantic, has always despised businessmen, except for those rent seekers who paid homage to the powers that be. In New France these licensed traders were known as voyageurs.

This is a never resolved tension in Quebecois society, between the pure entrepreneur represented by the coureur de bois and the official capitalist represented by the voyageur. There has been no shortage in modern economic history of talented Quebecois entrepreneurs, but their efforts are widely regarded as being some how suspicious. There is something slightly unwholesome about turning a profit and speaking French at the same time.

This is not unique to French society. In most Catholic, or post-Catholic countries this suspicion of capitalism and free markets is endemic. To their credit the French-Canadians, unlike the Portuguese, never burnt businessmen at the stake for displaying “Jewish tendencies.” It was only in some of the Protestant societies that capitalism became somewhat respectable. My own suspicion is that this had less to do with theology and more to do with social dynamics.

February 10, 2014

A “Dumb” parody that Starbucks finds unamusing

Filed under: Business, Law, USA — Tags: , , , — Nicholas @ 09:23

I am not a lawyer, but it seems to me that this “parody” of a Starbucks shop is too similar to the real thing and that it would be easy for someone to think they were buying “the real thing” at this store:

A store labeled as “Dumb Starbucks,” using the Starbucks corporate logo and bearing an almost identical look to an actual Starbucks, opened up in Los Feliz on Friday, according to employees.

It was open until about 6 p.m. Saturday and drinks were free as part of what a barista called a “grand opening.”

The coffee shop reopened again Sunday morning and coffee was again free. Dozens of people could be seen waiting in line to get in.

Messages left with people associated with “Dumb Starbucks” seeking comment have not been returned. Messages left with Starbucks Corporation have also not been returned.

The menu was limited.

On Sunday, there still was no business license or health code rating posted in the establishment. The baristas said they were hired from Craigslist.

Despite the popularity, customers seemed confused about what exactly was going on.

“I saw online that there was a Dumb Starbucks sign. One of my friends posted about it, and I live across the street, so I just walked over,” Jonathan Brown told KPCC. He described it as “weirdly off-kilter,” with everything looking like a regular Starbucks except for the word “dumb” in front of it.

Their “FAQ” posting shows that they’re aware that this ploy may not be lawyer-proof:

Dumb Starbucks FAQ

Update, 11 February: The prank is revealed to be the work of Nathan Fielder.

Mr Fielder appeared in person at the store to make the announcement, where he said there are plans to open a second outlet in Brooklyn, New York.

There had been widespread speculation that the store, which uses Starbucks’ trademarks, was a publicity stunt.

Starbucks said they were aware of the store but denied any affiliation.

“We are evaluating next steps and while we appreciate the humour, they cannot use our name, which is a protected trademark,” a Starbucks spokesperson said in a statement.

February 6, 2014

E-cigarettes – growth industry or doomed by regulatory overstretch

Filed under: Business, Health, Technology — Tags: , , , — Nicholas @ 09:03

Megan McArdle discusses the past, present, and potential future for the e-cigarette industry:

In its simplest form, an e-cigarette is a cartridge filled with a nicotine solution and a battery powering a coil that heats the solution into vapor, which one sucks in and exhales like smoke. Typically, it looks like a regular cigarette, except the tip, embedded with an LED, often glows blue instead of red. The active ingredient in e-cigarettes is the same nicotine found in cigarettes and nicotine patches.

The effects of inhaling nicotine vapor are not totally understood, but there is no evidence to date that it causes cancer. Experts and logic seem to agree that it’s a lot better than setting chopped-up tobacco leaves on fire and inhaling the nicotine along with thousands of combustion byproducts, some of which are definitely carcinogenic. Because cancer is the main drawback of smoking for a lot of people, the delivery of nicotine without lighting a cigarette is very attractive. And because it produces a wispy vapor instead of acrid smoke, an e-cigarette lets you bring your smoking back indoors, where lighting up in an enclosed space is no longer socially, or legally, acceptable.

[…]

A primitive, battery-operated “smokeless non-tobacco cigarette” was patented as early as 1963 and described in Popular Mechanics in 1965. Thomas Schelling, a Nobel prize-winning economist who helped start the Institute for the Study of Smoking Behavior and Policy at Harvard University’s Kennedy School in the 1980s, recalls that people in the 1960s were talking about a charcoal-based vaporizer that would heat some sort of nicotine solution. While those early versions might have been safer than a regular cigarette, they were too expensive and cumbersome to become a substitute for a pack of Camels in a country where, as Schelling notes, “you’re never more than 5 or 10 minutes away from a smoke.”

In a way, electronic cigarettes were made possible by cell phones. The drive to make phones smaller and lengthen their battery life led to the development of batteries and equipment small enough to fit in a container the size and shape of a cigarette. There’s some dispute over who invented the modern e-cigarette, but the first commercially marketed device was created by a Chinese pharmacist, Hon Lik, and introduced to the Chinese market as a smoking cessation device in 2004.

In the same way that alcohol comes in various guises (many carefully crafted to appeal to beginners: sweet as soda pop, for example), e-cigarettes are available in many different flavours:

E-cigarette cartridges come in classic tobacco and menthol flavors — Verleur’s company even offers V2 Red, Sahara, and Congress, clearly aimed at loyal smokers of Marlboros, Camels, and Parliaments. But most companies also have less conventional flavors. Blu offers Peach Schnapps, Java Jolt, Vivid Vanilla, Cherry Crush, and Piña Colada, presumably for people who don’t just like a drink with a cigarette, but in one.

February 5, 2014

Battlefield mobility for Canadian infantry in the Cold War

Filed under: Business, Cancon, Military — Tags: , , , , , , — Nicholas @ 12:43

An interesting post by Frank Maas at the LCMSDS website looks at the story of the Canadian army’s attempts during the 1980s to get modern armoured vehicles for infantry support and battlefield mobility:

The Militia, the traditional mobilization base for the Canadian army, withered during the Cold War. Its ranks were flushed with Second World War veterans in the 1950s and there was money for new tanks and vehicles, but morale declined as the Militia’s role became civil defence in the late 1950s, and it languished in the 1960s and 1970s as defence budgets shrank. The Militia reached a nadir of 15,000 by the late 1970s, but ironically, there was a false dawn at the end of the Cold War. In the 1987 Defence White Paper, Challenge and Commitment, the Mulroney government announced that the strength of the Reserves would skyrocket to 90,000, and would complement Regular units and allow Canada to better meet commitments to NATO and continental defence. This increase in strength would be complemented by a package of improvements to bases and new equipment purchases. One of these was for a purchase of 200 armoured personnel carriers, and here the story begins.

Back then, Colonel Romeo Dallaire was head of the army’s department for assessing armoured vehicles. Dallaire was intent on purchasing the venerable and ubiquitous M113, which first entered service in the 1960s, and is one of the most numerous armoured vehicles in the world. (The Canadian army had purchased more than 900 in the 1960s, and fielded up-armoured M113s in Afghanistan). The original plan was to buy 200 M113s from the American manufacturer and have some components licence-built in Canada to fulfill requirements for Canadian content.

At the same time, however, Canada’s only manufacturer of armoured vehicles, Diesel Division General Motors (DDGM), in London Ontario, was nearly out of work. It was approaching completion of a United States Marine Corps order for 758 vehicles, and although some sales to Saudi Arabia were on the horizon for the early 1990s, the company was facing a year with empty production lines. Some salesmen and engineers at DDGM began to think they could scoop up the contract for two hundred APCs by substituting their vehicle, the Piranha Light Armoured Vehicle (LAV), and bridge the gap between the contracts.

Comparing the interiors of the LAV-25 (left) and M113 (right)

Comparing the interiors of the LAV-25 (left) and M113 (right)

There were some significant differences between the Piranha LAV and the M113 that would complicate DDGM’s plan. First, the LAV was wheeled, and the M113 was tracked. Wheeled vehicles were easier to maintain, but tracked vehicles had better off-road mobility. Second, the sides of the LAV’s troop compartment sloped sharply inward, which improved ballistic protection, but reduced internal space. Finally, the LAV had doors at the back for soldiers to deploy from, while the M113 had a ramp which made it much easier for soldiers to run out of the back of the vehicle. DDGM’s engineers could not do much about putting tracks on the LAV-25, although a wheeled vehicle would be better-suited for service with the Reserves because it would be cheaper to operate and soldiers could drive it on roads. (There are prohibitions against driving tracked vehicles on roads). DDGM could reconfigure its vehicle to look more like a M113 from the back to convince the army to accept the LAV-25 as a substitute, but this would require a significant reconfiguration of the vehicle.

Back in the late 1970s, my militia unit got some familiarization training with the then-new Grizzly AVGP, which was based on an earlier model than the LAV. While it was neat to be given the chance to try working with (and in) new equipment, we found that getting in and out of the back of the vehicle was awkward and much slower than we (well, actually our NCOs) had hoped. Practicing a dismount with a full infantry section on board was … less than tactically brilliant. The small doors tended to snag any of our equipment as we squeezed through, so you had to move more slowly to get through successfully.

Here’s a look at the rear of the Cougar AVGP from the same vehicle family as the Grizzly:

A right rear view of a Canadian army Cougar wheeled fire support vehicle that is being used as an observation post by soldiers standing watch during the combined U.S./Canadian NATO Exercise Rendezvous '83. Location: Camp Wainright, AB

A right rear view of a Canadian army Cougar wheeled fire support vehicle that is being used as an observation post by soldiers standing watch during the combined U.S./Canadian NATO Exercise Rendezvous ’83. Location: Camp Wainright, AB

NYT – reducing full-time employment by 2.5 million is a good thing

Filed under: Business, Economics, USA — Tags: , , — Nicholas @ 09:33

This New York Times editorial tries valiantly to make the case that the recent prediction by the Congressional Budget Office of 2.5 million full-time job losses is a good thing for the affected workers and the economy as a whole:

The Congressional Budget Office estimated on Tuesday that the Affordable Care Act will reduce the number of full-time workers by 2.5 million over the next decade. That is mostly a good thing, a liberating result of the law. Of course, Republicans immediately tried to brand the findings as “devastating” and stark evidence of President Obama’s health care reform as a failure and a job killer. It is no such thing.

The report estimated that — thanks to an increase in insurance coverage under the act and the availability of subsidies to help pay the premiums — many workers who felt obliged to stay in a job that provided health benefits would now be able to leave those jobs or choose to work fewer hours than they otherwise would have. In other words, the report is about the choices workers can make when they are no longer tethered to an employer because of health benefits. The cumulative effect on the labor supply is the equivalent of 2.5 million fewer full-time workers by 2024.

[…]

The new law will free people, young and old, to pursue careers or retirement without having to worry about health coverage. Workers can seek positions they are most qualified for and will no longer need to feel locked into a job they don’t like because they need insurance for themselves or their families. It is hard to view this as any kind of disaster.

Despite all the whistling as we stroll along the cemetery fence, the editorial does correctly point out that insurance benefits that are tied to particular employers do limit choices for many workers. I’ve made the argument a few times that this is something that unions should be pushing very hard for: to make benefits more portable for both unionized and non-unionized workers. The rest of the editorial isn’t quite as helpful … two and a half million current workers no longer working (and not through a voluntary switch to self-employment or retirement) isn’t the wonderful thing they claim it is. Those people and their families will still need income to provide themselves with food, shelter, and all the other necessities of modern life. Tough to do that without visible means of support.

Update: At the National Journal, James Oliphant rallies to the White House’s defence during what he calls “the worst day that Obamacare has had in weeks — and that’s saying something.”

To debate that point, the White House supplied as its first responder Jason Furman, the chairman of the Council of Economic Advisers, an academic and policymaker schooled in the intricacies of the labor market. Furman disputed any reading of the report that said the ACA was a net drag on the economy — but often doing so in head-scratching language of a Washington insider.

At one point, a reporter at Tuesday’s briefing asked Furman in frustration, “What the heck do you mean?”

Furman’s presence, however, outlined in neon the problem the Obama administration has been having since the ACA became law: a persistent inability to detail its benefits in language that resonates with the public. And in its defense, the ACA’s multiple mechanisms are not the easiest to explain. To that end, its critics, who often have relied upon hyperbole and scare tactics, have always held the political advantage.

But sometimes you just have to punch the bully in the nose — and Furman wasn’t the person for the job. That was the case Tuesday. The first takeaway from a complex CBO report was that the office had concluded that Obamacare is going to be a job-killer. Period. Full stop. It fell upon Furman — along with liberal bloggers — to attempt to explain that, no, it’s more complicated than that.

Follow along: The report doesn’t say that the ACA will result in 2 million jobs lost by 2017, but projects there will be 2 million fewer workers in the workforce, the White House says (a number it doesn’t necessarily agree with). It’s the difference, Furman underscored, between labor supply and labor demand. And they aren’t “jobs,” he reiterated, they are “FTEs.” (Full-time equivalents, if you are scoring at home.)

In other words, he explained, businesses will still want as many workers as ever, but the ACA will result in an increasing number of workers deciding to take themselves either entirely out of the job market or working fewer hours. Why? Because they may decide to keep their income below a certain level in order to qualify for government help to buy health insurance on the exchanges.

This is a good thing, Furman said, because the ACA will give workers more flexibility, whether they want to become entrepreneurs or take another, lower-paying job. And again, the press corps had some trouble with this concept. It’s good for someone to take a lower-paying job? And it’s good that the law encourages them to take it?

February 3, 2014

Corruption in the EU

Filed under: Bureaucracy, Business, Europe, Law — Tags: , , — Nicholas @ 08:46

BBC News discusses a recent EU report on bribery and corruption in Europe:

The extent of corruption in Europe is “breathtaking” and it costs the EU economy at least 120bn euros (£99bn) annually, the European Commission says.

EU Home Affairs Commissioner Cecilia Malmstroem has presented a full report on the problem.

She said the true cost of corruption was “probably much higher” than 120bn.

Three-quarters of Europeans surveyed for the Commission study said that corruption was widespread, and more than half said the level had increased.

Interestingly, the perception of corruption is significantly higher than the (self-reported) incidence:

In the UK only five people out of 1,115 — less than 1% — said they had been expected to pay a bribe. It was “the best result in all Europe”, the report said.

But 64% of British respondents said they believed corruption to be widespread in the UK, while the EU average was 74% on that question.

In some countries there was a relatively high number reporting personal experience of bribery,

In Croatia, the Czech Republic, Lithuania, Bulgaria, Romania and Greece, between 6% and 29% of respondents said they had been asked for a bribe, or had been expected to pay one, in the past 12 months.

There were also high levels of bribery in Poland (15%), Slovakia (14%) and Hungary (13%), where the most prevalent instances were in healthcare.

Ms Malmstroem said corruption was eroding trust in democracy and draining resources from the legal economy.

February 2, 2014

Some of the Super Bowl commercials Canadians won’t see on TV

Filed under: Business, Football, Humour, Media — Tags: , , , , , — Nicholas @ 11:13

The audience for the Super Bowl is split between fans of the game (who actually care about the outcome) and fans of the ads (because this is the biggest TV audience, advertisers pull out all the stops and generally try to be genuinely funny). In Canada, thanks to our TV regulations, most of us will see the broadcast of the game itself, but we won’t see the same commercials as our US neighbours … we’ll get the same assortment of crummy ads they’ve been showing since the start of the season, with a few of the US ads as a “teaser”.

Fortunately for those who aren’t interested in the game itself, but like the commercials, the lead-up to the Super Bowl usually includes web release of many of the ads that will air during the broadcast. Here’s a selection put together by the Guardian, including a “behind the scenes” of an ad that won’t get shown … because it was never made:

Go behind the scenes of the Mega Huge Football Ad Newcastle Brown Ale almost made with the mega huge celebrity who almost starred in it. See more at http://www.IfWeMadeIt.com

The VW ad is rather amusing, too:

January 27, 2014

HSBC now requires “Mother, May I” letters from British customers for large withdrawals

Filed under: Britain, Business — Tags: , — Nicholas @ 09:32

HSBC has irritated some of their British customers with a new requirement for justifying why large cash withdrawals are necessary before authorizing them:

Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.

A year before, he had withdrawn a larger sum in cash from HSBC without a problem.

But this time it was different, as he told Money Box: “When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”

Mr Cotton says the staff refused to tell him how much he could have: “So I wrote out a few slips. I said, ‘Can I have £5,000?’ They said no. I said, ‘Can I have £4,000?’ They said no. And then I wrote one out for £3,000 and they said, ‘OK, we’ll give you that.’ ”

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

The bank said it did not have to tell him. “As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change,” HSBC wrote.

As you might imagine, this new policy drew strong criticism, so the bank issued the following statement yesterday:

As a responsible bank we must track all financial transactions. Cash presents more risk, and in particular financial crime risk, than other payment methods. It also leaves customers with very little protection if things go wrong. Therefore, we need to monitor particularly closely movements of cash in and out of the banking system. This is why we ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account.

Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for. However, it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We apologise to any customer who has been given incorrect information and inconvenienced.

H/T to BenK for the links.

January 23, 2014

Machinima falls for the old “novelty death warrant” trick

Filed under: Business, Media, Technology — Tags: , , , — Nicholas @ 11:10

At Techdirt, Timothy Geigner recounts the potential PR disaster facing Machinima after they attempted to buy positive coverage from their own contributors for the Xbox One:

It began with a thread on NeoGAF that included text from an email Machinima was sending out to their partners which offered bonus CPM (cost per thousand views, the standard way advertising is priced) payments on videos covering Microsoft’s new console. Their requirements for this “promotion” in the email were already problematic, including gameplay footage from an Xbox One game, a mention of playing the game on the Xbox One console in the video, and a vague reference to following the “guidelines listed in the assignment.” Just in those lines, most journalists would find deal-killers. While the line on whether or not YouTube video makers covering games like this being journalists may be a bit blurry, there’s little doubt that thousands of YouTubers look to these folks for help on their purchasing decisions. In other words, they’re fame rests squarely on their reputations for honest reviews. Minus those reputations, these people have no following.

Which is what makes the details in those “guidelines” mentioned above so misguided.

    Now here’s where we enter really sketchy territory: Ars Technica tracked down a copy of Machinima‘s contract for the promotion, and there’s one line that stands out: “You may not say anything negative or disparaging about Machinima, Xbox One or any of its Games in your Campaign Video.” What’s more, these YouTubers can’t even be transparent about this arrangement, according to the contract:

    “You agree to keep confidential at all times all matters relating to this Agreement, including, without limitation, the Promotional Requirements, and the CPM Compensation, listed above. You understand that You may not post a copy of this Agreement or any terms thereof online or share them with any third party (other than a legal or financial representative). You agree that You have read the Nondisclosure Agreement (attached hereto and marked as Exhibit “A”) and You understand and agree to all of terms of the Nondisclosure Agreement, which is incorporated as part of this Agreement.”

Hear that sound? That’s the sound of this entire promotion exploding with enough payload-force to also take out both the guilty and innocent Machinima video-producers. What this does is put everyone under suspicion. Given what we said about the importance of reputations above, this could be the meteor that destroys Machinima‘s world.

Yes, if you’re following along a home, the post title is a Blackadder reference.

January 22, 2014

Private prisons – crony capitalist palaces of injustice

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

The United States has seen a vast increase in the number of drug offenders (the majority of them non-violent) and a corresponding increase in the private prison industry. As Wendy McElroy explains, these are not free-market solutions to a government problem: they’re monuments to crony capitalism:

The United States leads the world, by a large margin, in the production of at least one thing: prisoners. We have 25 percent of the world’s inmates, but just 5 percent of the world’s population.

Where do they come from? Well, since the Anti-Drug Abuse Act of 1986, the number of American inmates has risen from approximately 300,000 to a currently estimated 2.3 million. This statistic points to the role of drug-related victimless “crime” in creating prisoners.

There are other sources. The “private prison complex” is a creation of crony capitalism through which privileged corporations are paid well for the “care” of inmates and for leasing out prison labor to other businesses.

Ten percent of American prisons are now “privately” operated, for-profit businesses. Between 1990 and 2010, the number of for-profit prisons rose 1600 percent, far outpacing the growth of public ones or the population at large. The likelihood of being arrested is already higher in America than anywhere else in the world. That likelihood will rise if the financial incentives to imprison more people continue or increase.

[…]

“Private” prisons are run by corporations to which government outsources the care of inmates. The corporation receives X tax dollars for each prisoner, quite apart from the actual cost of care. This builds in an incentive to skimp on services such as food and medical care. And, indeed, most prison contracts include a “low-crime tax” or “lock-up quota.” This system means taxpayers compensate the corporation for empty cells if the number of prisoners falls below a set quota. A recent report, “Criminal: How Lockup Quotas and ‘Low-Crime Taxes’ Guarantee Profits for Private Prison Corporations,” found the average “occupancy guarantee” to be 90 percent; in four states, it is between 95 percent and 100 percent. Thus the “private” prison is guaranteed a tax-funded profit.

[…]

The “private” prison industry is private in the same sense that crony capitalism is capitalist. Namely, not at all. It is the antithesis of a truly private industry that competes in the free market, does not accept tax funds, and cannot compel labor. By contrast, the “private” prisons enjoy a monopoly over a service that is created by laws and sentencing policies. They receive tax money and preferential treatment. They exploit captive labor through circumstances similar to plantation slavery.

January 16, 2014

Facebook‘s business model and why your status isn’t gathering “Likes” anymore

Filed under: Business, Media — Tags: , , , — Nicholas @ 13:36

Derek Muller has an interesting analysis of the different business models of Facebook, YouTube, and other social media sites:

Published on 14 Jan 2014

Share this on Facebook 😉

Facebook is a complex ecosystem of individuals, creators, brands and advertisers, but I don’t think it serves any of these groups particularly well because its top priority is to make money. Now, I don’t think making money is a bad thing, in fact I hope to make some myself. The problem is the only way Facebook has found to make money is by treating all entities on the site as advertisers and charging them to share their content.

This business plan backfires because 1) not all entities ARE advertisers and 2) it was the content from these people, specifically friends, family, and creators that made the site worth visiting in the first place. Now the incentives are misaligned:
– individuals want to see great content, but they are now seeing more paid content and organically shared content which appeals to the lowest common denominator (babies, weddings, and banal memes)
– creators want to reach fans but their posts are being throttled to force them to pay to be seen
– brands and advertisers have to pay once to advertise their page on Facebook, and then pay again to reach the people who have already liked their page. Plus Facebook is not a place where people generally go to buy things.

Facebook stands in contrast to other social media like Twitter, YouTube, and Instagram where all content is shared with all followers.

I don’t spend much time on Facebook, even though I have my blog posts automatically posted to my timeline. When the video ads start to arrive, it will provide me with even more of an incentive to avoid spending time there.

H/T to Cate Matthews for the link.

Update: Apparently the folks who “Like” their own posts are not egomaniacs (well, not all of them) … they’re rationally responding to how Facebook‘s algorithms rank posts for deciding what will appear to your friends. A post with a “Like” is much more likely to be shared than one that hasn’t been “Liked”.

January 9, 2014

Selling Ontario wine at a farmer’s market? Must be a by-election in wine country coming up

Filed under: Business, Cancon, Wine — Tags: , , , , — Nicholas @ 10:34

Michael Pinkus on the Ontario government’s latest cynical ploy to shore up electoral support in a wine-producing riding just in time for a by-election:

There was a certain amount of optimism over the holidays coming out of the wineries of Ontario as the Wynne Liberals, who lead this province, announced a new initiative to get Ontario wines into the hands of more Ontarians … or at least that’s how they are selling it.

In case you missed it, Kathleen Wynne and the Corrupt Liberals (sounds like a great 90’s band) have released their latest McGuffin on the land, an announcement that Ontario VQA wine is to be sold at farmer’s markets throughout the province. It’s all part of their 75 million dollar plan to support the local wineries and help them grow. The timing couldn’t be better, for them anyway; this announcement comes just before a soon-to-be scheduled by-election in Niagara. Funny, how it is only now the Premier and her troops have decided to finally help the wineries of Ontario … seems rather convenient. I starting to experience a little déjà vu about this though; didn’t they use this same technique to grab a couple of seats in the last election?

Now, before you accuse me of being anti-Liberal, I’m not. Before this government completely let me down I would have counted myself among them, but my personal politics aside, I’m not anti-Liberal, I’m pro-Ontario Winery — and anything that can help these hard working, passionate folks get their wines into more hands of the Ontario populace, the happier I am.

[…]

If they truly want to help the wine industry in this province stop handcuffing them as to where they can sell their wines. Give them actual retail space like the Wine Shoppes and Wine Rack stores that Peller and Vincor hold onto like gold (because they are). Let them sell their wines not just at Farmers’ Markets but at festivals and events where you can sample the wine before you buy. Nothing makes attendees of festivals more annoyed than our prohibition era laws, that keep them from buying bottles of their favourite wines tasted at expos, festivals or events. It’s mind boggling and baffling to any who have attended wine shows in other countries. Let wineries actually sell their wines at these events … I promise, no one is going to open the bottle in their car on the way home; no more so than they would after purchasing it at an LCBO store.

And so that it’s not just my voice of dissension you hear, allow me to bring winery owner Daniel Lenko into the conversation, as he posted his thoughts on Facebook: “Ok, this could get long winded. I think in general wine producers in Niagara are supportive of this olive branch being offered. Why not? This is the start of something, and anything is better than nothing. Here are the pitfalls: 1) You can’t sample wine before 11am legally, and farmers markets primarily occur in the early morning hours. 2) Can I have a stand-alone store in the “PATH” and call it “The Farmers Market”. I will offer produce as well. Or is this too civil? 3) I can’t warehouse anything offsite so that means that I must drive pallets of wine back and forth daily to Niagara, how environmentally irresponsible. 4) And hold on a second … Why is it that [Cellared in Canada] wines can be sold ANYWHERE in private stores and wines grown and vinified in Ontario can only now, 25 years later, be available at farmers markets. It really feels like I am a second class citizen here”.

January 6, 2014

QotD: The illusion of a rational world

Filed under: Bureaucracy, Business, Government, Humour, Quotations — Tags: , , — Nicholas @ 17:28

To the very young, to schoolteachers, as also to those who compile textbooks about constitutional history, politics, and current affairs, the world is a more or less rational place. They visualize the election of representatives, freely chosen from among those the people trust. They picture the process by which the wisest and best of these become ministers of state. They imagine how captains of industry, freely elected by shareholders, choose for managerial responsibility those who have proved their ability in a humbler role. Books exist in which assumptions such as these are boldly stated or tacitly implied. To those, on the other hand, with any experience of affairs, these assumptions are merely ludicrous. Solemn conclaves of the wise and good are mere figments of the teacher’s mind. It is salutary, therefore, if an occasional warning is uttered on this subject. Heaven forbid that students should cease to read books on the science of public or business administration — provided only that these works are classified as fiction. Placed between the novels of Rider Haggard and H.G. Wells, intermingled with volumes about ape men and space ships, these textbooks could harm no one. Placed elsewhere, among works of reference, they can do more damage than might at first sight seem possible.

C. Northcote Parkinson, “Preface”, Parkinson’s Law (and other studies in administration), 1957.

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