Quotulatiousness

June 4, 2024

How Wall Street billionaires are reacting to the verdict against Trump

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

Under normal circumstances, you might think that Trump would find doors closed to him among the big-money folks on Wall Street after his trial ended with 34 guilty verdicts … yet the opposite is reported to be happening and his campaign is being inundated with big financial donations:

My quite strong suspicion is that Leticia James and Alvin Bragg have caused alarm by targeting business records and real estate valuations in corporate borrowing, things that everyone shares in finance, insurance, and real estate, for criminalization and destructive litigation. My bet is that capital is turning hard against lawfare, seeking to disincentivize and punish an attack on the basics of corporate business. People in business are horrified by a flamethrower of a prosecution over old business records.

So Bloomberg’s interpretation is that Wall Street is standing with Trump despite the verdict, but my bet is that Wall Street, Silicon Valley, and other business interests are turning against Democrats because of the verdict — because Democratic prosecutors in New York (and especially Manhattan), America’s financial capital, are doing things like turning seven year-old business record misdemeanors into a long list of Frankenstein felonies.

That interpretation makes capital’s support for Trump self-interested rather than morally outraged, though not over Bloomberg’s explanation of lower taxes, as people who keep business records turn against the party that bizarrely overcriminalizes the handling of business records when the target becomes politically unfashionable. If capital turns against the Democratic Party — if the ATM machine stops spitting out campaign funding — the moment becomes pretty significant, and Alvin Bragg becomes the dog who caught the car.

June 2, 2024

THIS is how Plastic Model Kits are MADE! I spent a day at the UK Airfix Factory!

Filed under: Britain, Business, China, Technology — Tags: , — Nicholas @ 02:00

Model Minutes
Published Nov 26, 2022

In November 2022 a press day was held at the UK factory which manufactures quickbuild and the NEW Supermarine Spitfire Mk.IXc in 1/24 scale from @OfficialAirfix. During the visit we were given presentations from Luke (researcher) and Chris (designer) on the various elements that go into creating the designs of the tooling.

Join me in this video where I take a look at how plastic model kits are actually manufactured, focusing on the physical creation of the kits through injection moulding and quality control at the Plastech factory in Newhaven.

I’d like to extend my thanks to Airfix and Plastech for putting on this event.

Chapters:
00:00 Intro
00:48 Research & Design
01:36 Plastech Background
02:47 Tooling Prep
03:21 Injection Moulding
06:38 Quality Control
11:31 Boxes & Packaging
13:21 Packing a kit!
16:04 Conclusion
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May 31, 2024

The best that can be said about VIA Rail is that its financials aren’t as dire as Canada Post

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

Chris Selley outlines the financial black holes that are the two Crown Corporations — Canada Post and VIA Rail Canada:

VIA Rail 918, a General Electric model P42DC locomotive, at Belleville, Ontario on 23 December 2008.
Photo by Martin Cathrae via Wikimedia Commons.

If you’re unfamiliar with Via’s financials, I’ll advise you to sit down now.

In 2023, the average passenger on The Canadian line [Toronto/Montreal to Vancouver] was subsidized by the taxpayer to the tune of $1,014.77. Revenues on the route were less than half of expenses. And your average Canadian can’t even hope to ride the bastard thing: A bunk bed for the 34 hours and 35 minutes it takes to get from Toronto to Winnipeg still goes for the bargain price of $895.

It’s a cruise ship. Not only are we lavishly subsidizing a cruise ship, but we own the cruise line, and we’re buying it new ships. It’s absolutely bananas. And among those applauding the expenditure is, somehow, the NDP’s transport critic Taylor Bachrach. Where’s simplistic populism when you need it? No money for cruise ships!

Meanwhile, media are being far too indulgent of Via’s alarming and increasing vagueness as to whether it’s committed to “high-frequency rail” on the Toronto-to-Quebec City corridor, or to “high-speed rail”, or to some combination of both. This could not be a bigger or brighter red flag: Beware of Oncoming Boondoggle.

Committing billions of dollars to a new rail corridor between Toronto and Quebec City without a firm idea as to whether it’s “high-frequency” or “high-speed” is a bit like committing billions to a new housing development without knowing whether it’s bungalows or high-rise condos. A train going 300 kilometres per hour, or more (i.e., high-speed rail) needs vastly more protection (fences, eliminating level crossings) than a train going 200 kilometres per hour. It’s not a minor detail or something to be worked out later.

And it’s painfully obvious why Via’s executives are sowing the confusion: Because the high-frequency rail plan that they actually have simply isn’t that compelling. It may offer no time savings at all between Montreal and Toronto — and anyone who tries to tell you a five-hour trip between Montreal and Toronto is a compelling option for business people is either a deluded railfan or works for Via.

“Canada charts path for high-speed trains, but obstacles loom,” a recent Globe and Mail headline declared, completely incorrectly. But casual news consumers can absolutely be forgiven for thinking Via’s working on a Toronto-to-Quebec City version of France’s TGV. Should the high-frequency rail plan ever get built, I can only imagine the kvetching and disappointment that would follow.

May 29, 2024

Ontario’s long and winding (and subsidy-strewn) road to beer in convenience stores

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

Apparently I’ll have a little bit more to celebrate on my birthday this year as the Ontario government’s glacially slow-to-change alcohol sales rules are being liberalized as of September 5th to allow all the province’s convenience stores to begin selling beer and wine:

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

Premier Doug Ford promised Ontarians beer in corner stores, supermarkets and big-box stores, and by God he has delivered. As of Sept. 5, all Ontario convenience stores meeting eligibility criteria will be allowed to sell beer, wine, cider and pre-mixed drinks. As of Oct. 31, the privilege will be extended to all grocery and big-box stores. The province says it expects as many as 8,500 new booze-procurement sites to come online under the new regime. By Ontario standards, it’s absolutely revolutionary.

The new regime is also, of course, hilariously complicated. And absurdly, offensively expensive.

It is fair to describe the new regime as somewhat more competitive, and certainly more convenient. In addition to offering potentially thousands of new locations, supermarkets (including the roughly 450 already licensed) will be able to offer volume discounts on beer — i.e., a 24-pack will cost less per bottle than a six-pack. This was a privilege hitherto reserved for The Beer Store, the American-, Belgian- and Japanese-owned conglomerate that dominated beer sales in Ontario from the end of Prohibition until fairly recently.

Private retailers will even be able to set their own prices, which until now has been considered blasphemy.

It is not fair to describe the new regime, as the government does, as an “open” market.

Near as I can tell, Ontario will by 2026 have the following retail environments in place:

  • The Beer Store. Smelly, surly, and the best-available value. Only beer — no cider or mixed drinks. It’s in the name.
  • LCBO locations. Government-run liquor stores retain their near-absolute monopoly on hard liquor sales, in addition to selling beer (especially craft beer, in which The Beer Store’s owners aren’t so interested), wine and everything else.
  • LCBO- and/or The Beer Store-branded “agency stores” in rural areas, which sell everything the LCBO does, but operate inside of convenience stores, small supermarkets and other local businesses, and are staffed by non-government employees.
  • The existing supermarkets licensed to sell beer, cider and wine (and in rare cases all three!), plus scores of new outlets — the new 8,500 new locations.

The Beer Store maintains a monopoly (in urban areas) on wholesale for bars and restaurants and on refunding cans and bottles, although its new “master framework agreement” (MFA) doesn’t even oblige it to maintain its current number of locations — which in urban areas have been dwindling rapidly. I’m a 17-minute walk from my nearest Beer Store. The house I grew up in, in the heart of midtown Toronto, is a 45-minute walk. I’m not schlepping a leaky garbage bag full of empty cans either distance.

QotD: Wine

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

“I don’t mean to sound cynical,” [Antonio Terni] said as he tipped the Conero sideways for a moment and eyed the tint. “But I do hate all this pseudo-intellectual mental masturbation about wine. I make two wines: one for Americans and one for myself. They’re both fine.”

Lawrence Osborne, The Accidental Connoisseur, 2004.

May 28, 2024

Why a Tire Company Gives Out Food’s Most Famous Award

Filed under: Books, Business, Europe, Food, France, History, WW2 — Tags: , , , , , — Nicholas @ 02:00

Tasting History with Max Miller
Published Feb 20, 2024

Eugénie Brazier, the chef behind today’s recipe, was a culinary force to be reckoned with. She was described as “a formidable woman with a voice like a foghorn, rough language, and strong forearms”. Both of her restaurants won Michelin stars in the early 20th century, making her the first person to have six. No one else would earn six Michelin stars for 64 years.

By modern Michelin standards, this dish is pretty plain, but it’s still really good. The chicken is cooked simply in butter, and the cream sauce is absolutely fantastic. I was afraid the alcohol would overpower it, but it doesn’t. The sauce takes on a kind of floral woodiness instead of each individual alcohol’s flavor, and it’s so good.
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May 27, 2024

“Product recommendations broke Google, and ate the Internet in the process”

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

Ted Gioia says the algorithms are broken and we need a way to get out of the online hellscape our techbro overlords have created for us:

Have you tried to get information on a product or service from Google recently? Good luck with that.

“Product recommendations broke Google,” declares tech journalist John Herrman, “and ate the Internet in the process.”

That sounds like an extreme claim. But it’s painfully true. If you doubt it, just try finding something — anything! — on the dominant search engine.

No matter what you search for, you end up in a polluted swamp of misleading links. The more you scroll, the more garbage you see:

  • Bogus product reviews
  • Fake articles that are really advertisements
  • Consumer guides that are just infomercials in disguise
  • Hucksters pretending to be experts
  • And every scam you can imagine (and some that never existed before) empowered by deepfakes or AI or some other innovative new tech

The Google algorithm deliberately makes it difficult to find reliable information. That’s because there’s more money made from promoting garbage, and forcing users to scroll through oceans of crap.

So why should Google offer a quick, easy answer to anything?

Everybody is now playing the same dirty game.

Even (previously) respected media outlets have launched their own recommendation programs as a way to monetize captured clients (= you and me). Everybody from Associated Press to Rolling Stone is doing it, and who can blame them?

Silicon Valley sets the dirty rules and everybody else just plays the game.

Welcome to the exciting world of algorithms. They were supposed to serve us, but now they control us—for the benefit of companies who impose them on every sphere of our lives.

And you can’t opt out.

For example, when I listen to music on a streaming platform, the algorithm takes over as soon as I stop intervening—insisting I listen to what it imposes on me. Where’s the switch to turn it off?

I can’t find it.

That option should be required by law. At a minimum, I should be allowed to opt out of the algorithm. Even better, they shouldn’t force the algorithm on me unless I opt in to begin with.

If this tech really aimed to serve me, opting in and opting out would be an obvious part of the system. The fact that I don’t get to choose tells you the real situation: These algorithms are not for our benefit.

Do you expect the coming wave of AI to be any different?

[…]

The shills who want us to lick the (virtual) boots of the algorithms keep using the word progress. That’s another warning sign.

I don’t think that word progress means what they think it means.

If it makes our lives worse, it isn’t progress. If it forces me into servitude, it isn’t progress. If it gets worse over time — much worse! — it isn’t progress.

All the spin and lobbying dollars in the world can’t change that.

So that’s why I became a conscientious objector in the world of algorithms. They give more unwanted advice than any person in history, even your mom.

At least mom has your best interests at heart. Can we say the same for Silicon Valley?

May 26, 2024

“Naked ‘gobbledygook sandwiches’ got past peer review, and the expert reviewers didn’t so much as blink”

Jo Nova on the state of play in the (scientifically disastrous) replication crisis and the ethics-free “churnals” that publish junk science:

Proving that unpaid anonymous review is worth every cent, the 217 year old Wiley science publisher “peer reviewed” 11,300 papers that were fake, and didn’t even notice. It’s not just a scam, it’s an industry. Naked “gobbledygook sandwiches” got past peer review, and the expert reviewers didn’t so much as blink.

Big Government and Big Money has captured science and strangled it. The more money they pour in, the worse it gets. John Wiley and Sons is a US $2 billion dollar machine, but they got used by criminal gangs to launder fake “science” as something real.

Things are so bad, fake scientists pay professional cheating services who use AI to create papers and torture the words so they look “original”. Thus a paper on “breast cancer” becomes a discovery about “bosom peril” and a “naïve Bayes” classifier became a “gullible Bayes”. An ant colony was labeled an “underground creepy crawly state”.

And what do we make of the flag to clamor ratio? Well, old fashioned scientists might call it “signal to noise”. The nonsense never ends.

A “random forest” is not always the same thing as an “irregular backwoods” or an “arbitrary timberland” — especially if you’re writing a paper on machine learning and decision trees.

The most shocking thing is that no human brain even ran a late-night Friday-eye over the words before they passed the hallowed peer review and entered the sacred halls of scientific literature. Even a wine-soaked third year undergrad on work experience would surely have raised an eyebrow when local average energy became “territorial normal vitality”. And when a random value became an “irregular esteem”. Let me just generate some irregular esteem for you in Python?

If there was such a thing as scientific stand-up comedy, we could get plenty of material, not by asking ChatGPT to be funny, but by asking it to cheat. Where else could you talk about a mean square mistake?

Wiley — a mega publisher of science articles has admitted that 19 journals are so worthless, thanks to potential fraud, that they have to close them down. And the industry is now developing AI tools to catch the AI fakes (makes you feel all warm inside?)

Fake studies have flooded the publishers of top scientific journals, leading to thousands of retractions and millions of dollars in lost revenue. The biggest hit has come to Wiley, a 217-year-old publisher based in Hoboken, N.J., which Tuesday will announce that it is closing 19 journals, some of which were infected by large-scale research fraud.

In the past two years, Wiley has retracted more than 11,300 papers that appeared compromised, according to a spokesperson, and closed four journals. It isn’t alone: At least two other publishers have retracted hundreds of suspect papers each. Several others have pulled smaller clusters of bad papers.

Although this large-scale fraud represents a small percentage of submissions to journals, it threatens the legitimacy of the nearly $30 billion academic publishing industry and the credibility of science as a whole.

May 25, 2024

Justin Trudeau – “a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes”

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

Even before he became Prime Minister, the signs were there that Justin Trudeau was instinctively anti-small-business and that this would inform his approach to taxation and regulation of the private sector:

Changes to capital gains tax in this year’s budget were aimed at the wealthy, said the Trudeau Liberals, but the move has angered small businesses owners who have been snared by the increase.

Maybe that was part of the plan, since Justin Trudeau appears to view small business owners as rich Canadians trying to dodge taxes.

In an illuminating interview with the CBC’s Peter Mansbridge in 2015, Trudeau didn’t directly answer a question about whether he would lower taxes for small businesses.

But he did say, “We have to know that a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes and we want to reward the people that are actually creating jobs and contributing in concrete ways.”

It was a remarkable denigration of small business owners and may have passed unnoticed because Trudeau was still a month away from becoming prime minister.

For the record, businesses with fewer than 100 people employ almost 12 million private workers in this country.

And the government’s own statistics state that in the 20 years up to 2020, the number of small businesses increased every year except for three — 2013, 2016 and 2020 — so a decrease in two of the Trudeau years.

Meanwhile, Trudeau’s apparently tax-dodging wealthy small businesses seem to be having a hard time of it. Businesses that began with four or less employees were only 62 per cent likely to still be operating five years later.

Earlier this year, Reuters news agency warned that a 38 per cent spike in bankruptcies of small businesses in the first 11 months of 2023 could rise even further.

Small businesses are “an integral engine of Canada’s economy,” said the budget, but 72 per cent of the owners fear that the new changes to capital gains tax will harm the climate for investment and growth.

Interestingly, when Trudeau was asked in that 2015 interview how he planned to balance the budget by 2019, because that was what he promised, it was investment and growth that was the answer.

Then prime minister Stephen Harper had tried to cut his way out of the deficit, said Trudeau. “That doesn’t work.”

“He has been unable to create growth. He has the worst record on growth of any prime minister in 80 years.”

But as the Fraser Institute has pointed out, in the last nine years under Trudeau, Canadian living standards have declined.

May 24, 2024

“Great Britain is not yet a basket case. But we do a rather good impression of a failing state.”

Christopher Gage considers the plight of modern day Britain in the context of Rishi Sunak’s political suicide note election call:

Rishi Sunak shortly after becoming Chancellor of the Exchequer in 2020.

The ambition for things to get better is a bar so low it’s a carpet. A favoured genre of meme here centres on the dysfunction and general farce of a country with “Great” in its name. That lofty adjective edges perilously close to hilarity, akin to those countries prefixed by “People’s Democratic Republic”. The excitable kind with an AK-47 printed on its flag.

Call the doctor’s surgery at 8 a.m. An automated voice will reveal you are number 49 in the queue. When you eventually wade through, a soft-centred receptionist assures you in therapeutic tones that there’re no appointments left today. Sorry.

Book a same-day train ticket from London to Newcastle. Without a hint of contrition, the train company demands £786.80. That’s a week or two in warmer, healthier, saner Sevilla or three hours and eleven minutes on a train in Great Britain.

House prices and rents are akin to the board game Monopoly, in which your coked-up crypto-addled mate has lined up hotels on Mayfair.

Go to the supermarket. Olive oil, a civilising elixir which once threatened to heave the primitive British palate out of the Mesolithic era, is prohibitively expensive. If modern Britain were a film scene, it would be that of Ray Liotta in Goodfellas: Fuck you. Pay me.

This all-encompassing one-footed waltz feels like the finale of a political satire. Since the 1980s, we’ve parodied America. We’ve nailed the social pathology but not the prosperity. Essentially, Great Britain is an advertising agency with a nuclear submarine.


This election pits two tribes against each other. One tribe pines for 1997. The other yearns for 1979.

For a sizeable swathe of the population, everything is awful, and nothing will ever change. And thank God for that.

Here, a natural law dictates that anyone under 45 who dares suggest things could be better is to be consumed by a radioactive flood of sadistic nostalgia. The mere whiff of dissent conjures through the pavement a battalion of nostalgians who lament the end of Polio.

“You don’t remember the Seventies!” warn those who yearn for the Seventies. ‘Bodies uncollected! Rubbish piled up in the streets!’. In that fateful decade, striking union workers allowed garbage to pile up in the streets. To this hazy memory, the rest of us are serfs to economic juju.


Whenever I point out that a first-time buyer in London must save for 31 years just for a house deposit, a familiar chorus of denial debunks the theory of free will. “You waste your money on flat whites and trips to Rome!” goes the wearisome riposte.

During the 1970s, that prelapsarian idyll when rubbish piled in the streets, when adults caned children at random, and when Bullseye was on the telly, the average house cost four times the average wage. Today, it’s twelve to one.

To point out mathematical reality invokes spasms of uniquely British nostalgia. It’s a negative nostalgia which glories in just how bad everything was.

Churchill was right. The British people are the only people who like to be told how bad things are, who like to be told the worst. Memory-mongers paint postcards of perfect penury. Back then, children didn’t talk back. There were no phones or elbows on the table. Back then, that famed sense of community slapped any ribbon of dissent out of those who dared dream bigger than the suffocating confines of community life. The past is a foreign country in which children could count their ribs but they was happy.

Such nostalgia serves two purposes. The first indulges one’s triumph over wistfully disfigured adversity. The other bleaches the parlous state of modern Britain with a mop soaked in a very British version of nostalgie de la boue. Nostalgia, truth be told, is a polite form of dementia.

Bernie Sanders finally finds a group of rich people who he thinks shouldn’t have to pay

Filed under: Business, Europe, Government, Health, Politics, USA — Tags: , , , , , , — Nicholas @ 04:00

As Tim Worstall points out, Bernie Sanders’ latest campaign is starkly at odds with his usual “make the rich pay” schtick:

“Bernie Sanders” by Gage Skidmore is licensed under CC BY-SA 2.0 .

It’s possible to think that Bernie Sanders, Senator that he is, is more than a little confused. Well, he’d not be the first elderly politician to suffer that fate. Nor the first socialist. It is necessary for me to be fair here though — one of his honeymoons he took in the Soviet Union. Which makes perfect sense to me — after all, there was bugger all else to do there other than your own wife.

However, here we’ve got him complaining about the cost of the new miracle drugs:

    Bernie Sanders has urged Denmark to rein in its most valuable company, Novo Nordisk, and force it to slash prices on popular weight loss and diabetes treatments Ozempic and Wegovy, taking his fight to lower “outrageously high” drug prices in the United States to the company’s doorstep as its profits soar amid ongoing struggles to meet booming appetite for the revolutionary drugs.

Hmm, dunno how well that’s going to work with the Danes really. Yes, to some extent they’re milder than when they tried to rape and pillage the entirety of Europe but not wholly. My brother worked out in Afghanistan (feeding the troops) and he had a Danish unit rotate through. So he tells me their senior sergeant type carried a double bladed axe on his backpack — it didn’t come back clean from every patrol either. They’re not all equality and gender rights these days, you know?

So, we can imagine a certain portion at least of the Danish population celebrating this rapine of Medicare’s pockets by the simple expedient of selling a weight loss drug that actually works — which is, when we come to think of it, something of an innovation. Fen-Fen didn’t work after all. Hey, you know, Vinland failed but we’ll get ’em this time? We’re charging high prices because we can?

A second pass at the argument would be that the drugs are in fact incredibly cheap. When it was shown that the same drug — semaglutide — works in stopping (that’s “stopping” as in ceased, stopped, dead, like Bernie’s career would if it were ever proven he had taken part in an act of voluntary capitalism) chronic kidney disease. So much so that the very day they announced the trials on the drug were being stopped a year early, so obvious was the success, the share prices of all the dialysis provision companies dropped 20 and 30%. That is, at near whatever price, this drug is a money saver. Which is, you know, good. J Foreigner turns up with this thing that saves America, Americans, lives and money and yet Bernie whines — so like a socialist, eh? Capitalism with markets makes us the humans who are living highest on the hog, ever, but they really never do stop whining about it, do they?

But Bernie’s real complaint is that Americans are paying more to burn off the cheeseburgers than everyone else has to. But from everything else Bernie says about anything at all this is at it should be — the rich should pay.

Back to our basics. The basic drug development problem is that the development of a drug is a public goods problem. It costs $2 billion to get a drug through the FDA and gain approval to actually sell it. Yes, of course we should slaughter much of the regulation that makes it cost that much (personally, against character type, I only recommend capture and humane release for the actual bureaucrats) but that’s another matter. It does. But if everyone can just copy the drug at that point then no one will spend $2 billion. So, OK, patents, so the developers have a decade (the patent is two decades, it takes a decade to gain approval) to make their $2 billion back then anyone can copy it. The price falls to manufacturing cost plus normal profit level and we’re about as good as we can get. This is not a perfect system but for mass market drugs it’s about as good as we’re going to get.

May 20, 2024

The economic distortions of government subsidies

The Canadian federal and provincial governments are no strangers to the (political) attractions of picking winners and losers in the market by providing subsidies to some favoured companies at the expense not only of their competitors but almost always of the economy as a whole, because the subsidies almost never produce the kind of economic return promised. The current British government has also been seduced by the subsidies game, as Tim Congdon writes:

Former British Conservative Prime Minister Margaret Thatcher in 1983. She was in office from May 1979 to November 1990.
Photo via Wikimedia Commons.

Why do so many economists support a free market? By the phrase they mean a market, or even an economy dominated by such markets, where the government leaves companies and industries alone, and does not try to interfere by “picking winners” and subsidising them. Two of the economists’ arguments deserve to be highlighted.

The first is about the good use — the productivity — of resources. To earn a decent profit, most companies have to achieve a certain level of output to attract enough customers and to secure high enough revenue per worker.

If the government decides to give money to a favoured group of companies, these companies can survive even if they produce less, and obtain lower revenue per worker, than the others. The subsidisation of a favoured group of companies therefore lowers aggregate productivity relative to a free market situation.

In this column last month I compared the economically successful 1979–97 Conservative government with the economically unsuccessful 2010–2024 Conservative government, which is now coming to an end. In the context it is worth mentioning that Margaret Thatcher and her economic ministers had a strong aversion to government subsidies of any kind.

According to Professor Colin Wren of Newcastle University’s 1996 study, Industrial Subsidies: the UK Experience, subsidies were slashed from £5 billion (in 1980 prices) in 1979 to £0.3 billion in 1990. (In today’s prices that is from £23 billion to under £1.5 billion.)

Thatcher is controversial, and she always will be. All the same, the improvement in manufacturing productivity in the 1980s was faster than before in the post-war period and much higher than it has been since 2010. Further, one of Thatcher’s beliefs was that if the private sector refuses to pursue a supposed commercial opportunity, the public sector most certainly should not try to do so.

Such schemes as HS2 and the Hinkley Point nuclear boondoggle could not have happened in the 1980s or 1990s. They will result in pure social loss into the tens of billions of pounds and will undoubtedly reduce the UK’s productivity.

But there is a second, and also persuasive, general argument against subsidies and government intervention in industry. An attractive feature of a free market policy is its political neutrality. Because market forces are to determine commercial outcomes, businessmen are wasting their time if they lobby ministers and parliamentarians for financial aid.

Honest and straightforward tax-paying companies with British shareholders are rightly furious if they see the government channelling revenues towards other companies who have access to the right politicians and friendly civil servants. By definition, the damage to the UK’s interests is greatest if the recipients of government largesse are foreign.

May 17, 2024

Canada Post is in deep, deep trouble

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

I was vaguely aware that Canada Post has been in financial difficulties for a while, but I had no idea things were quite this dire:

You’d better believe that the Canada Post Corporation is in very deep trouble. Here’s how they phrased it in their 2023 annual report:

    Canada Post’s financial situation is unsustainable.

“Unsustainable”. Well that doesn’t sound good. Think they’re just putting on a show to carve out a better negotiating position? Well, besides for the fact that they’re not currently negotiating with anyone, the numbers do bear out the concern:

    For 2023, the Corporation recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022. From 2018 to 2023, Canada Post lost $3 billion before taxes. Without changes and new operating parameters to address our challenges, we forecast larger and increasingly unsustainable losses in future years.

In other words, it’s madly-off-in-all-directions panic time.

Hey! You know I can hear your condescending sniff: “I’m sure this is just a temporary disruption. They’ll figure out how to fix the leak and get themselves back on the road like always. They’re too big to fail.”

Yeah … not this time. The competition from digital communications (i.e., the internet), FedEx, and UPS isn’t going anywhere. Letter delivery nosedived from nearly 5.5 billion pieces in 2006 to just 2.2 billion in 2022. And vague references to “major strategic changes to transform our information technology model” don’t sound much like magic bullets for reversing the decline.

But Canada Post’s labour and pension costs sure are marching bravely forward. In fact, if it wasn’t for Parliamentary relief in the form of Canada Post Corporation Pension Plan Funding Regulations, the Corporation would have had to pay $354 million into the pension plan in 2023 alone. But that $354 million — plus whatever additional amounts show up in 2024 and besides the $998 million in existing general debt — are still liabilities that’ll eventually need paying.

May 15, 2024

Disintermediation Now! “Even the gatekeepers are sick of dealing with gatekeepers”

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

Ted Gioia on the trend for even people at the top of the distribution chain trying to find ways to get around the distribution chain they inhabit:

The Emoji Movie premiere at the Fox Theatre, Westwood Village, 23 July 2017.
Photo by Kristofer Gonzalez-DeWhitt via Wikimedia Commons.

A few weeks ago, 35 of the biggest names in Hollywood collaborated on a business venture. Can you guess what it is?

I’ll help by providing a list of the participants. Here they are in alphabetical order, to avoid wounding any of the huge egos involved:

    J.J. Abrams, Judd Apatow, Damien Chazelle, Chris Columbus, Ryan Coogler, Bradley Cooper, Alfonso Cuarón, Jonathan Dayton, Guillermo del Toro, Valerie Faris, Hannah Fidell, Alejandro González Iñárritu, James Gunn, Sian Heder, Rian Johnson, Gil Kenan, Karyn Kusama, Justin Lin, Phil Lord, David Lowery, Christopher McQuarrie, Chris Miller, Christopher Nolan, Alexander Payne, Todd Phillips, Gina Prince-Bythewood, Jason Reitman, Jay Roach, Seth Rogen, Emma Seligman, Brad Silberling, Steven Spielberg, Emma Thomas, Denis Villeneuve, Lulu Wang and Chloé Zhao.

What are these movie titans up to?

Maybe they want to make a film together? Or perhaps they’re thinking bigger — planning to launch their own production company or even a movie studio?

Nope. They weren’t thinking big. They were thinking small — very small.

These heavy hitters got together to buy a 93-year-old building.

They now own the Westwood Village theater at 945 Boxton near the UCLA campus. I went there to see films when I was in high school and it was old even back then. At some point it stopped being old, and became historic and vintage. (Maybe if I live long enough this will happen to me too.)

But these 35 investors aren’t just interested in preserving a quaint old building. They want to own a place where they can show quality movies to a flesh-and-blood audience without anybody getting in their way.

We’ve reached a point where even the people in power at the top of the industry want to bypass the system. Even the gatekeepers are sick of dealing with gatekeepers.

That’s how bad it’s gotten.

May 14, 2024

Tesla versus the German green activists

Filed under: Business, Environment, Germany, Politics — Tags: , , , , — Nicholas @ 03:00

It’s not surprising that environmental activists would dislike a large factory, but this weekend’s attempted storming of Tesla’s Gigafactory in Germany must have raised a few eyebrows:

Tesla Gigafactory Berlin-Brandenburg, 28 July 2023.
Photo by Michael Wolf via Wikimedia Commons.

Grünheide is a small town in Brandenburg and the site of Europe’s only Tesla factory. It is a rare bright point in a German economy that is otherwise rapidly deindustrialising thanks to fruitless Green environmental policies, and so it has become a flashpoint for leftist activism. You might think that the German left would have no problem with Tesla, as e-vehicles are an important pillar of the energy transition, but here you would be very wrong. Happy fairy tales about the bright future of electromobility emanate primarily from the leftist political establishment; their activist militias have different ideas, often preferring broad crusades against everything related to industry, capitalism and profit.

The Grünheide factory employs 12,000 people and contributes millions of Euros every year in taxes, which is bad enough from the activists’ point of view. Still worse, production has caused some water pollution, and Tesla plans to expand the factory, which will entail cutting down some trees. A bunch of “water justice” advocates and forest saviours have therefore crawled out of their Berlin squats and made their way to Grünheide to defend humanity from the scourge of car production.

One of them is a 25 year-old named Luis, who we read “has been committed to climate protection since 2019” and who is “concerned about drinking water”. He also doesn’t like the fact that Brandenburg has moved heaven and earth to stimulate the local economy by incentivising Tesla to set up their factory:

    Luis is bothered that many special permits were granted for the construction of the electric car factory. Tesla sometimes constructed its factory on the basis of premature approvals: “You can just tell how interested the state of Brandenburg was in having Tesla set up shop here.”

It is terrifying indeed, the extent to which regional politicians will go to attract industry and employment to their states. Somebody must put a stop to this.

Back in March, when we were all reading long think-pieces about the grave threat posed by the “extreme right” and hundreds of thousands of dim idiots were taking to the streets to denounce non-existent Nazis, a gaggle of arsonists (or, in media patois, “activists”) calling themselves the “Volcano Group” burned down an electricity pole, stopping production at the Grünheide facility for days and cutting off power to various nearby villages. Because the Volcano Group are on the left, this was not an example of escalating political violence or the fruit of brutalised social media discourse.

Yesterday, our activist heroes returned to further their bold stance against industrial production, which is something nobody has ever thought of doing before. Some of them hail from a group called “Turn off Tesla’s tap.” They have partnered with “Disrupt,” which the Süddeutsche Zeitung calls a “platform” but which appears to be little more than a Twitter account with 1,784 followers, which is so deeply reviled they have had to turn off comments on all of their posts.

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