Quotulatiousness

April 6, 2023

Japan is weird, example MCMLXIII

Filed under: Books, Bureaucracy, Business, Government, History, Japan — Tags: , , — Nicholas @ 03:00

John Psmith reviews MITI and the Japanese Miracle by Chalmers Johnson:

I’ve been interested in East Asian economic planning bureaucracies ever since reading Joe Studwell’s How Asia Works (briefly glossed in my review of Flying Blind). But even among those elite organizations, Japan’s Ministry of International Trade and Industry (MITI) stands out. For starters, Japanese people watch soap operas about the lives of the bureaucrats, and they’re apparently really popular! Not just TV dramas; huge numbers of popular paperback novels are churned out about the men (almost entirely men) who decide what the optimal level of steel production for next year will be. As I understand it, these books are mostly not about economics, and not even about savage interoffice warfare and intraoffice politics, but rather focus on the bureaucrats themselves and their dashing conduct, quick wit, and passionate romances … How did this happen?

It all becomes clearer when you learn that when the Meiji period got rolling, Japan’s rulers had a problem: namely, a vast, unruly army of now-unemployed warrior aristocrats. Samurai demobilization was the hot political problem of the 1870s, and the solution was, well … in many cases it was to give the ex-samurai a sinecure as an economic planning bureaucrat. Since positions in the bureaucracy were often quasi-hereditary, what this means is that in some sense the samurai never really went away, they just hung up their swords — frequently literally hung them up on the walls of their offices — and started attacking the problem of optimal industrial allocation with all the focus and fury that they’d once unleashed on each other. According to Johnson, to this day the internal jargon of many Japanese government agencies is clearly and directly descended from the dialects and battle-codes of the samurai clans that seeded them.

This book is about one such organization, MITI, whose responsibilities originally were limited to wartime rationing and grew to encompass, depending who you ask, the entire functioning of the Japanese government. Because this is the buried lede and the true subject of this book: you thought you were here to read about development economics and a successful implementation of the ideas of Friedrich List, but you’re actually here to read about how the entire modern Japanese political system is a sham. This suggestion is less outrageous than it may sound at first blush. By this point most are familiar with the concept of “managed democracy,” wherein there are notionally competitive popular elections, culminating in the selection of a prime minister or president who’s notionally in charge, but in reality some other locus of power secretly runs things behind the scenes.

There are many flavors of managed democracy. The classic one is the “single-party democracy”, which arises when for whatever reason an electoral constituency becomes uncompetitive and returns the same party to power again and again. Traditional democratic theory holds that in this situation the party will split, or a new party will form which triangulates the electorate in just such a way that the elections are competitive again. But sometimes the dominant party is disciplined enough to prevent schisms and to crush potential rivals before they get started. The key insight is that there’s a natural tipping-point where anybody seeking political change will get a better return from working inside the party than from challenging it. This leads to an interesting situation where political competition remains, but moves up a level in abstraction. Now the only contests that matter are the ones between rival factions of party insiders, or powerful interest groups within the party. The system is still competitive, but it is no longer democratic. This story ought to be familiar to inhabitants of Russia, South Africa, or California.

The trouble with single-party democracies is that it’s pretty clear to everybody what’s going on. Yes, there are still elections happening, there may even be fair elections happening, and inevitably there are journalists who will point to those elections as evidence of the totally-democratic nature of the regime, but nobody is really fooled. The single-party state has a PR problem, and one solution to it is a more postmodern form of managed democracy, the “surface democracy”.

Surface democracies are wildly, raucously competitive. Two or more parties wage an all-out cinematic slugfest over hot-button issues with big, beautiful ratings. There may be a kaleidoscopic cast of quixotic minor parties with unusual obsessions filling the role of comic relief, usually only lasting for a season or two of the hit show Democracy. The spectacle is gripping, everybody is awed by how high the stakes are and agonizes over how to cast their precious vote. Meanwhile, in a bland gray building far away from the action, all of the real decisions are being made by some entirely separate organ of government that rolls onwards largely unaffected by the show.

March 29, 2023

The Grauniad something something glass houses something something throwing stones

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

In UnHerd, Ashley Rindsberg recounts the details we know so far about the Guardian‘s embarassing historical project to find out about the newspaper’s links to the slave trade:

The Guardian prides itself on being one of the most Left-leaning and anti-racist news outlets in the English-speaking world. So imagine its embarrassment when, last month, a number of black podcast producers researching the paper’s historic ties to slavery abruptly resigned, alleging they had been victims of “institutional racism”, “editorial whiteness”, “microaggressions, colourism, bullying, passive-aggressive and obstructive management styles”. All of this might smack of progressive excess, but, in reality, it merely reflects an institution incuriously at odds with itself.

Questions about The Guardian‘s ties to slavery have been circulating since 2020, when, amid the media’s collective spasm of racial conscience following the murder of George Floyd, the Scott Trust announced it would launch an investigation into its history. “We in the UK need to begin a national debate on reparations for slavery, a crime which heralded the age of capitalism and provided the basis for racism that continues to endanger black life globally,” journalist Amandla Thomas-Johnson wrote in a June 2020 Guardian opinion piece about the toppling of a statue of 17th-century British slaver Edward Colston. A month later, the Scott Trust committed to determining whether the founder of the paper, John Edward Taylor, had profited from slavery. “We have seen no evidence that Taylor was a slave owner, nor involved in any direct way in the slave trade,” the chairman of the Scott Trust, Alex Graham, told Guardian staff by email at the time. “But were such evidence to exist, we would want to be open about it.” (Notably, Graham, in using the terms “slave owner” and “direct way”, set a very specific and very high bar for what would be considered information worthy of disclosure.)

The problem is that the results of the investigation, conducted by historian Sheryllynne Haggerty, an “expert in the history of the transatlantic slave trade”, have never been made public. When contacted with questions about what happened to the promised report, Haggerty referred all inquiries to The Guardian‘s PR, which has remained silent on the matter. (The Guardian was asked for comment and we were given the stock PR response The Guardian gave following the podcaster’s letter.) But what we do know is this: according to Guardian lore, a business tycoon named John Edward Taylor was inspired to agitate for change after witnessing the 1819 Peterloo Massacre, when over a dozen people were killed in Manchester by government forces as they protested for parliamentary representation. Two years later, Taylor, a young cotton merchant, with the backing of a group of local reformers known as the Little Circle, founded the paper.

“Since 1821 the mission of The Guardian has been to use clarity and imagination to build hope,” The Guardian‘s current editor, Katharine Viner, proudly proclaims on the “About us” page of the paper’s website. Part of this founding myth concerns one of the defining social and political issues of the day, slavery, which the Little Circle members, including Taylor, vigorously opposed as a moral affront. “The Guardian had always hated slavery,” Martin Kettle, an associate editor, wrote in a 2011 apologia on why during the Civil War the paper had vociferously condemned the North while equivocating on the South.

That may be true, but it also presents an incomplete picture. The Manchester Guardian, as the paper was then known, was founded by cotton merchants, including Taylor, who were able to pool the money needed to launch the paper by drawing on their respective fortunes. While none of these men, many of whom were Unitarian Christians, is likely to have engaged in slavery, they didn’t just benefit from but depended upon the global slave trade that provided virtually all of the cotton that filled their mills. As Sarah Parker Remond, an African American abolitionist, said upon visiting Manchester in 1859: “When I walk through the streets of Manchester and meet load after load of cotton, I think of those 80,000 cotton plantations on which was grown the $125 million worth of cotton which supply your market, and I remember that not one cent of that money ever reached the hands of the labourers.”

March 21, 2023

The musical anomaly that was 2022 – when classical music suddenly became much more popular

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

Ted Gioia looks at some surprising numbers for the music industry showing that of all genres, classical music suddenly became much more popular in 2022:

Last year, I went viral with an article about the rising popularity of old music. But I focused on old rock songs. Many of these songs are 40 or 50 years old. And in the world of pop culture, that’s like ancient history.

But if you really want old music, you can dig back 200 or 300 years — or even more, if you want. But does anybody really do that?

Conventional wisdom tells us that only around 1% of the public cares about classical music. And it doesn’t change much from year to year.

For proof, just take a look at this chart:

If you love concerts at the philharmonic, you read these figures with much weeping and gnashing of teeth. If classical music were any smaller, it would be a rounding error. Or — even sadder — it would be like jazz.

But that data only covers the period up to 2021. And 2022 was different.

In fact, it was remarkably different.

Over the last 12 months, I’ve started to see surprising signs of a larger audience turning to classical music. Last year, I wrote about the amazing saga of WDAV, the first classical music radio station in US history to take the top spot in its city.

I analyzed the numbers, and tried to get to the bottom of this unexpected success story. At the time, I wrote:

    Women are the key drivers here. The station boasts a double-digit share in the female 35-44 category. But this probably is tilted heavily toward mothers, at least if we factor in the next bit of evidence — which reveals that WDAV has a mind-boggling 38% share among young children.

But then a few weeks later, this research report was issued:

I need to point out that respondents were allowed to mention multiple genres — but even given that loophole, who would expect classical music to rank ahead of country music, hip-hop, or folk?

This can’t be true. The numbers must be wrong. Or, maybe, people are lying to pollsters.

But then a survey of holiday listening trends in the UK revealed the unprecedented popularity of orchestral music — especially among younger listeners.

March 20, 2023

“It amounts to nothing less than a declaration of all-out war between the government and the Big Tech companies”

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

The editors of The Line have strong opinions on the federal government’s decision to batter Google, Facebook, and other online “giants” over their opposition to the proposed internet legislation in bills C-11 and C-18:

As a result of C-18, both Google and Meta have considered dropping news distribution from their platforms, or have outright promised to do so. To which we have responded: “Well, no shit, Sherlocks.” We have, in fact, warned all of the parties involved with this misguided bill that that’s exactly what was going to happen.

Nonetheless, the dim-witted government officials and corporate media barons who have pinned their hopes of survival to the apparent money spigot of Big Tech didn’t believe us. So when Meta came right out and said it would drop news last week, the ashen-faced Minister of Heritage accused them of using “intimidation and subversion” tactics. And, thus, these demands for private correspondence appear to have been drafted.

It amounts to nothing less than a declaration of all-out war between the government and the Big Tech companies — and, by extension, the many independent media creators like ourselves.

Well. Okey Dokey then.

*cracks knuckles*

Let’s start with two very obvious points: firstly, we at The Line don’t object to forcing these tech companies to disclose funding to third parties for the purpose of opposing C-18 et al. That is perfectly reasonable, in our minds. Further, if these companies are being accused of anything illegal, by all means, investigate away — after you get a warrant.

The rest of these demands are nothing short of banana crackers; it’s an extraordinary interpretation of the committee’s mandate. It’s the kind of overbroad dragnet that will necessarily create privacy breaches for the unknown numbers of ordinary citizens, dissidents and journalists who have corresponded with these companies about these bills.

We will remind the government that private citizens and private companies do not owe the government a full accounting of their private business or communications. The government is subject to this kind of transparency and disclosure because the government works for us. Not the other way around.

We will also point out the irony. The government is demanding years worth of correspondence from private entities within a very short time frame: this is a level of transparency that no government department would subject itself to. Don’t believe us? Just try to draft a similar ATIP request to any ministry; it would take years to get such a request fulfilled, and half if it would come back redacted.

McKinsey, in the backrooms, with a masterplan

Filed under: Business, Cancon, Government, USA — Tags: , , , , — Nicholas @ 04:00

Elizabeth Nickson suggests that the vast disruption of life in western societies, the transformation of governments from barely competent to actively tyrannical, and the economic undermining of middle class prosperity may all be linked to one management consulting firm:

The brutalism of government during the last three years was anomalous in western democracies. First of all, it was irrational, it contravened common sense, which almost everyone possesses, and it destroyed millions of household economies and small businesses. It impoverished and starved a billion people in the developing world. It killed the old, brutally, refusing them affection in their last days. It divided us and is still dividing us. The virus was engineered by the government and paid for by the people it was unleashed upon. And then the fiends forced injections upon anyone with a job and a family to feed, via relentless propaganda, where it too contravened basic reason (acquired immunity, tiny effect on people under 70), and then the shot started to kill. And the deaths were ignored, records hidden, and the press was quiescent.

Who did this? This wasn’t normal government behavior. Government is usually just incompetent. At the very least it pretends compassion, is generally well-meaning, its check the voting booth. But now, it’s full-on Satanic. And the voting booth is essentially gone, corrupted by cartels, the CCP, the international left, the profiting UniParty.

But this niggled at me. Who drew up the plan, instituted it in every country, bullied every citizenry, devised the advertising, instituted the protocols? What operation has that level of power, of discipline?

Only one answer: McKinsey. McKinsey innovated and executed the whole damned thing. Mr Google is quite clear. In France, in Canada, in the U.S., in Australia and New Zealand. The cruelty, the ruthless crushing of millions, it was all them. In Canada alone they made $100 million “transitioning” government’s duty of care into a brutal suppression of anyone without elite status.

McKinsey is the international consultancy that lands everywhere that owners want to maximize their income. It is profoundly efficient. It privileges the predator class and institutes a brutal Darwinian system for everyone else.

“We don’t do policy,” said Richard Elder, DC Mckinsey chief. “We do execution.” Sure, buddy, you aren’t at the meeting where they tabletop ICE budgets, game the Chicago Health bureaucracy by Kaiser or how to sell more opioids to teens?

Trudeau had to have taken McKinsey advice when he set planeloads of anonymous black Kevlar-clad mercenaries on Canadian truckers and their supporters. He simply doesn’t have the nerve to do it alone. That action was unprecedented in Canadian history. Even the poodle press thinks McKinsey runs Canada. It has contracts across ministries, its former CEO, Dominic Barton, is Trudeau’s ambassador to China, and he is likely guiding some of the election theft that has been taking place under Trudeau. Whether McKinsey games immigrant ballot harvesting remains to be seen, but it bears its fingerprint.

March 19, 2023

Disagree with the Canadian government’s attempt to take over significant parts of the internet? Get ready for administrative punishment, citizens!

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

Michael Geist, who often seems like the only person paying close attention to the Canadian government’s growing authoritarian attitudes to Canadians’ internet usage, shows the utter hypocrisy of the feds demanding access to a vast array of private and corporate information on a two-week deadline, when it can take literally years for them to respond to a request for access to government information:

Senator Joe McCarthy would be in awe of the Canadian government’s audacious power grab.
Library of Congress photo via Wikimedia Commons.

The government plans to introduce a motion next week requiring Google and Facebook to turn over years of private third-party communication involving any Canadian regulation. The move represents more than just a remarkable escalation of its battle against the two tech companies for opposing Bill C-18 and considering blocking news sharing or linking in light of demands for hundreds of millions in payments. The motion – to be introduced by the Parliamentary Secretary to the Minister of Canadian Heritage (yes, that guy) – calls for a series of hearings on what it describes as “current and ongoing use of intimidation and subversion tactics to avoid regulation in Canada”. In the context of Bill C-18, those tactics amount to little more than making the business choice that Heritage Minister Pablo Rodriguez made clear was a function of his bill: if you link to content, you fall within the scope of the law and must pay. If you don’t link, you are out of scope.

While the same committee initially blocked Facebook from even appearing on Bill C-18 (Liberal MP Anthony Housefather said he was ready for clause-by-clause review after just four hearings and no Facebook invitation), bringing the companies to committee to investigate the implications of their plans is a reasonable approach. But the motion isn’t just about calling executives before committee to answer questions from what will no doubt be a hostile group of MPs. The same motion sweeps in the private communications of thousands of Canadians, which is a stunning disregard for privacy and which could have a dangerous chilling effect on public participation. Indeed, the intent seems fairly clear: guilt by association for anyone who dares to communicate with these companies with an attempt to undermine critics by casting doubt on their motivations. Note that this approach is only aimed at those that criticize government legislation. There has been a painfully obvious lobbying campaign in support of the bill within some Canadian media outlets, but there are no efforts to uncover potential bias or funding for those that speak out in favour of Bill C-18, Bill C-11, or other digital policy initiatives.

It is hard to overstate the broad scope of the disclosure demands. Canadian digital creators concerned with Bill C-11 who wrote to Youtube would find their correspondence disclosed to the committee. So would researchers who sought access to data from Google or Facebook on issues such as police access to social media records or anti-hate groups who contacted Facebook regarding the government’s online harms proposal for automated reports to law enforcement. Privacy advocates focused on how Google administers the right to be forgotten in Canada would ironically find their correspondence disclosed as would independent media sites that wrote to Facebook about the implications of Bill C-18.

March 18, 2023

Tales of the Metaverse

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

Ted Gioia wonders if Metaverse is doing badly enough to seriously harm Facebook itself:

When Facebook changed it’s name to Meta back in 2021, I made a gloomy prediction:

“Meta is for losers,” I announced. “Mark Zuckerberg is betting his company on a new idea — but this is a wager he will almost certainly regret.”

I revisited the situation in December, and pointed out all the ways Meta wasn’t just dying in the metaverse. It was also ruining its base business, the Facebook platform.

The company kept making the same mistake as so many other aging websites — instead of serving users they want to control them. The end result is a seeming paradox: the more money the company spends, the worse the user experience becomes.

In the article, I gave a dozen examples — and after it was published many readers shared their own horror stories.

Here’s just one anecdote, out of many:

    Try to sign up for Facebook Dating and then try to leave. They won’t let you. A friend of mine recently used it, and now is unable to remove herself totally from the feature. She was allowed to remove all of her pictures, however, she was not permitted to remove her dating profile and picture, which really distressed her. She didn’t want any record of it.

What a great concept. You can meet somebody special, fall in love, get married, and raise a family — but years later you’re still on the Facebook dating app.

It seems ridiculous. But Meta really, really doesn’t like you to opt out of features. Their dream is to operate a virtual Hotel California, where — as the lyrics warn, “you can check out any time you want, but you can never leave”.

Hey, maybe that’s why Mark Zuckerberg won’t let you have legs in his metaverse.

Why isn’t this bold new strategy working? It certainly isn’t for lack of investment. Meta is reportedly spending one billion dollars per month on the project.

But sometimes you can fail even with the right concept — simply because the technology just isn’t ready for the mass market.

[…]

A year-and-a-half after his corporate makeover, the situation at Meta is more dire than ever. Back in October 2021, Facebook shares were trading above $340, but now they are below $200 — that’s a loss of around $300 billion in market value.

But here again, the real problem is the user experience.

“On my initial visits, the metaverse seems sort of desolate, like an abandoned mall,” writes Paul Murray in New York magazine.

[…]

Mark Zuckerberg seems hellbent on pursuing an even more embarrassing fate. His bet on the metaverse may turn into the biggest cash sinkhole in the history of capitalism. Already the Edsel and New Coke look like tiny peccadilloes by comparison.

Even if he keeps his job, he may want to go hide. Fortunately, he has a huge metaverse at his disposal where that has become surprising easy to do.

March 14, 2023

QotD: Facebook’s entire structure is designed to prevent information “going viral”

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

Imagine that you came up with something amazing to share with people. Let’s pretend that you created the most amusing video in the world. Or came up with the funniest joke anyone has ever heard. Or maybe you have just experienced something remarkable that millions of people would want to know about. Or let’s assume you took a photograph that would blow people’s minds. Or perhaps you have just composed the catchiest tune ever.

You might think that social media is where to go to share this very cool thing, and watch it go viral. And, in fact, that happens on Twitter and a few other platforms. I’m not always right in forecasting which things I post will go viral, but a few times every year I will share something on Twitter that grabs people’s attention so much that it gets tens of thousands of retweets and likes. Millions of people might see it.

That’s what going viral is all about.

Now here’s the kicker. I put up that same item on my Facebook author’s page, and the company will actively work to prevent people from seeing it. And adding insult (a company specialty), they will send me an alert telling me: This post could go viral if you pay us money for promoting it.

At first glance, this just seems another way to maximize profits. And who can blame Mark Zuckerberg for wanting to get a few more dollars in his bank account? Let’s feel some pity for a guy who just lost $100 billion.

But the real devastating part of this story is that Facebook is actually preventing users from sharing the funniest joke in the world. Facebook actually hates seeing some videos go viral, even if they are the most amusing things on the web. Every day they work to prevent folks from seeing a mind-blowing photo — and many other things that can’t be monetized.

This can’t be good for the user experience. This can’t be what users want, or what they would tell the company in a focus group or via market research.

And it certainly can’t be good for business.

So I’m amused when I hear how Facebook is envious of TikTok, which has much superior user engagement. Well, duh. Of course TikTok has greater engagement — that’s because Facebook has put systems in place to prevent entertaining things from going viral. They are now scrambling to work around this tiny detail, but they won’t succeed.

I’ve reduced my Facebook posts by at least 70%, and this was the main reason. I can’t be the only person who has responded in this way.

It’s not in the company’s DNA to promote interesting things on its platform. That’s why I wasn’t surprised when Facebook’s recent attempt to imitate Substack collapsed in total failure. I knew that would happen on day one — because Facebook will never let writers go viral on the platform. Mr. Z. wants to get paid before anything goes viral, and that’s the exact opposite of Substack’s successful formula — which rewards the creator more than the platform.

When Facebook initially launched this touted publishing platform, somebody asked me what I thought about it. “Facebook has the power to give a writer access to millions of readers,” I replied, “but they will never let it happen. The entire internal structure of the company is designed to prevent this.”

The speed of the collapse, however, was surprising. Facebook announced the launch of Bulletin on June 29, 2021. Facebook announced the termination of Bulletin on October 4, 2022.

Even King Henry VIII’s wives lasted longer than that.

Ted Gioia, “How Web Platforms Collapse”, The Honest Broker, 2022-12-05.

March 12, 2023

“Indigo is no longer a bookseller but a general merchandiser with a sideline in books”

Filed under: Books, Business, Cancon — Tags: , , — Nicholas @ 05:00

In the latest edition of the SHuSH newsletter, Ken Whyte looks at the dismal financial (and technological) picture for Indigo in the Canadian market:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

As you’ve heard, the bookselling chain was hacked, its employment records held for ransom. Indigo (rightly) refused to pay and the hackers are now expected to release the employees’ personal data on the dark web.

This all started a month ago. The company’s website went down along with its in-store credit and debit systems. The payment systems came back after about ten days. A new website was built and launched at the beginning of March. It is a much-reduced site with a much reduced catalog of books.

The repercussions will be enormous for both Indigo and the publishing community.

One of the things overshadowed by the hacks was the release of Indigo’s third-quarter results, covering the crucial holiday season. As we’ve noted before, the company’s finances are unsettling. It lost $37 million in 2019, $185 million in 2020, and $57 million in 2021. Things looked somewhat better in 2022 with a $3 million profit, but the first two quarters of 2023 (Indigo has a March 28 year-end) showed a loss of $41.3 million, about $10 million worse than in the first two quarters of the previous year.

The hope was that a blockbuster holiday season would get Indigo’s year back on track.

It didn’t happen. Revenue for Q3 2022 came in at $423 million, down $8 million from last year, with pre-tax profits of $36 million, down from $45 million last year.

After three quarters, Indigo now stands at an $8 million loss. The company’s fourth quarter, covering the first three months of the calendar year, is usually terrible (all retail suffers in the deep of winter). If this fourth quarter goes like the last, Indigo will be looking at a $30 million loss for its full year. But this fourth won’t go like the last because of the hack. I have no idea what it will cost in terms of lost sales and unexpected expenditures (or what will be covered by insurance). It’s hard to imagine the company not doing worse than $30 million after such a catastrophic event.

Most of Canada’s mid-size to large publishers sell somewhere between 25 percent and 60 percent of their books through the chain. The outage will hurt revenue for both publishers and authors. If there’s a silver lining here, it’s that it occurred in a dead season. But the knock-on effects will be substantial. I’m told Indigo has no visibility into its store sales or current stock levels across the chain. It’s being very cautious about bringing in new books apart from the most in-demand titles. Publishers I’ve spoken to say sales to Indigo are down and they expect returns to be large and late. (Booksellers send unsold inventory back to publishers for full refunds and the bulk of these come in the months after the holidays).

By the way, the latest results showed that Indigo is no longer a bookseller but a general merchandiser with a sideline in books. Blankets and cheeseboards accounted for more than 50 percent of the company’s total revenue over the holidays. Print was 46 percent, down from 54 percent earlier in 2022 and 67.4 percent eight years ago. The movement away from bookselling is picking up steam. I hope you like Amazon because it and the few independent bookstores Chapters/Indigo hasn’t manage to kill will be all that’s left of Canadian bookselling before very long.

March 6, 2023

The Rise and Fall of Fast Food Architecture

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

Stewart Hicks
Published 3 Nov 2022

What happened to McDonald’s? Their restaurants used to be so iconic. It was impossible to mistake one, for say, a Wendy’s. Distinguished architecture used to be an important part of a brand’s identity. But today, fast food restaurant’s all look the same. Bland grey boxes. The great convergence toward this standard has been called “Chipotle-ification”. In this video, we trace the changing restaurant designs of McDonald’s, from the iconic golden arch era to the soulless boxes of today. We break down the architecture and the forces at play in the great homogenization of fast food architecture.
(more…)

March 4, 2023

QotD: Profit margins in the restaurant trade

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

This is an old rule of thumb, no more, from an experienced waitron unit.

The table that orders a starter, main and a bottle of wine – that just about breaks even for the restaurant. You can mix and match this a bit. Dessert instead of the starter, that sorta thing. But the costs of the building, the staff, the electricity, the stock that goes off, the cost of capital itself, all those things, mean that the basic restaurant experience just about covers its costs.

It’s the having the one thing extra that makes the money, the profit. A drink before the meal, having both a starter and a dessert to add to the main. The second bottle of wine, or the digestif with the coffee. This is why the waiter is so eager for you to have any one or more of these “extras”. The margin over food costs – food costs usually being around 30% of menu price – on those additions is exactly what provides a profit to the business that is the restaurant.

As to why, well, it’s the same reason that the menu prices of some well known item are going to be roughly the same across restaurants. Competition is fierce in the business. That means headline prices are pushed down to where they only just, if even that, cover costs. On exactly the same basis as Ryanair charging you spit for the seat and then a fortune for the air you breathe onboard. You get the punter in with the £20 for two steak dinners then hope like Hell they order the vanilla soup and also the vegetable ice cream in order to make your nut.

Tim Worstall, “Bar Owner Complains Of People Drinking Tap Water – Oi! Where’s My Profits?”, Continental Telegraph, 2019-05-27.

March 2, 2023

QotD: The rise of the overeducated mediocrity

Filed under: Bureaucracy, Business, Education, Quotations — Tags: , , , — Nicholas @ 01:00

Of recent months, several children of friends of mine have asked my help in preparing what they call a personal statement in their application for a job or place at university. Why they should ask me to help them is a bit of a mystery; I am glad to say that I made my career, such as it was, before these invitations to unctuous self-advertisement were even heard of.

The son of a friend of mine applied for a place at medical school and was turned down on the grounds that his personal statement was inadequate. I don’t know what was wrong with it; perhaps he employed incorrect old clichés rather than the correct new ones. Having the means to do so, my friend sent his son to a tutor who specialized in personal statements (every bureaucratic requirement is an economic opportunity for an ex-bureaucrat wanting to strike out for himself). No doubt the tutor in personal statements advised him to put in more about his passion for social justice and equality. At any rate, it worked and he was accepted.

In these statements — apparently as much a requirement in the private sector as in the public — you have to not only explain why you have dreamt all your life of this position in the marketing department (selling the unnecessary to the insolvent) and why you, of all the 7,000,000,000 people in the world, are the most suited to it, but also proclaim your deep sense of social responsibility, which you will bring to whatever task you are told to perform. People have never been entirely straightforward, thank goodness (what need of art and literature if they had been?), but we do seem to be breeding up a generation of Pecksniffs and Uriah Heeps.

I don’t want to indulge in what has been called the hermeneutics of suspicion, the habit of finding the supposedly real, occult, and sinister explanation behind perfectly straightforward social phenomena, but nevertheless I cannot help but wonder what the true purpose is of mission statements and their cognates, such as annual declarations of probity and the like. I think (though of course I cannot indubitably prove) that it is to make the world safe for overeducated mediocrities.

Theodore Dalrymple, “In Defense of Mediocrity”, Taki’s Magazine, 2018-02-17.

February 26, 2023

Politicians who ignored warnings now demanding to know why nobody warned them

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

The Canadian government is moving to pass a new law to force “Big Tech” companies like Google and Facebook to pay Canadian broadcasters and newspapers whenever they post a link to one of those sites. The government was told many times that this law wouldn’t produce a cornucopia of new funding for Canadian companies, but would instead get them nothing — in fact, worse than nothing — as Big Tech firms would just ignore Canadian news altogether (possibly even blocking their own users from posting those links). Despite that, now that Google announced they were testing their ability to shut off linking to Canadian sites, the PM and the minister responsible for the new bill are acting as though it’s Google and the other tech firms making threats:

The report that Google is conducting a national test that removes links to Canadian news sites for a small percentage of users sparked a predictable reaction as politicians who were warned that Bill C-18 could lead to this, now want to know how it could happen. None of this week’s developments should come as a surprise. Bill C-18 presents Google and Facebook with a choice: pay hundreds of millions of dollars primarily to Canadian broadcasters for links to news articles or stop linking. Both companies are doing precisely what they said they would do, namely considering stopping linking (Google conducted the same tests in Australia several years ago). Indeed, strip away the hyperbole and the bottom line is this: the costs of Bill C-18 are enormous (the government’s Senate representative suggesting the bill could result in revenues to cover 35% of news expenditures of every news outlet in Canada) and the revenues from news for the platforms are not (Facebook says news only constitutes 3 percent of posts and Google does not even run ads on its Google News product). As some have noted, the government says the companies are stealing content if they link and blocking content if they don’t.

Canadian Heritage Minister Pablo Rodriguez has blithely ignored the risks associated with Bill C-18 for months. By mandating payments for links, the bill creates a real threat to the free flow of information online. It also raises press independence concerns, may violate Canada’s international copyright obligations, harm the competitiveness of independent media, and open the door to trade retaliation by the United States. But as the Google test demonstrates, everyone loses with the current bill. Trust in Google is undermined when it secretly degrades its own service, news organizations won’t see new revenues if the companies stop linking and they will also lose the benefits of the links, and Canadians will find that the bill is an own-goal by the government that undermines the foundation of the Internet.

No one likes to get called on their assertions that Google and Facebook were bluffing when they warned that the prospect of removing news sharing or search results was real, but it is telling that Rodriguez and the bill’s supporters continue to rely on misleading claims about the bill instead of making the case for its actual impact. For example, consider yesterday’s Rodriguez’s tweet:

Leaving aside the fact that Google is blocking links to news sites, not the news sites themselves, Rodriguez continues to falsely claim that the premise of the bill is for the tech companies to “compensate journalists when they use their work.” This just isn’t what the bill does. First, it now includes hundreds of broadcasters that do not even produce news, yet still qualify for compensation. That isn’t compensating for use, it is payment based on holding a CRTC licence. Second, the bill does not require compensation based on use. The standard in Bill C-18 is making news content available, which is defined as:

    For the purposes of this Act, news content is made available if

    (a) the news content, or any portion of it, is reproduced; or
    (b) access to the news content, or any portion of it, is facilitated by any means, including an index, aggregation or ranking of news content.

Google and Facebook don’t typically reproduce the news. Rather, they link to it and thereby send the user to the publisher’s own platform where the publisher benefits from increased traffic and potential ad revenue. Therefore, the key provision is (b), which covers facilitating access to the news, better known as linking to it. That is not how most Canadians would conceive of use and why officials typically avoid acknowledging that the bill is about payment for links.

I tapered off linking to Canadian newspapers the last time this idea was being tossed around, and clearly I’ll need to omit ever linking to Canadian broadcasters and newspapers in future … but given that easily 90% of my readers aren’t Canadian, it’s not going to be too much of a sacrifice.

Ortgies Automatic Pistols: Not as Boring as You Think!

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

Forgotten Weapons
Published 16 Jun 2016

The Ortgies is a pistol whose interesting aspects are often overlooked on the assumption that it is just another identical .32 ACP blowback pistol. Well, it is that — but it is also more.

Mechanically, the Ortgies has a rather unusual grip safety mechanism that is quite different from what we expect to see today. It is also interesting in that the .32 and .380 versions differ only in the easily-interchanged barrel — even the magazines are marked for both calibers.

However, the most interesting part of the Ortgies story (in my opinion) is its production. In less than 5 full years (1919-1923), close to a half million of these guns were made, primarily by an industrial subsidiary of the German government. The guns were in large part a work program, creating export goods which could bring desperately needed hard currency into Germany to counteract the economic devastation of the Versailles treaty.

Have a look at the video and you may come away with a newfound appreciation for the humble Ortgies, like I did!
(more…)

February 19, 2023

QotD: “… doesn’t play well with others”

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

The incorrigible ye have always with you, as somebody must’ve said. Social science types slice it different ways, call it different things — the free rider problem, the tragedy of the commons, etc. — but they all amount to the easily-observed fact that some folks just can’t play well with others. Not “won’t play well with others”; can’t play well with others. Any given population of sufficient size is going to have its unmanageable knuckleheads who are always working at cross-purposes against everyone else, who seem to just get off on causing chaos.

Even purpose-built groups of highly trained specialists fall victim to it, once a certain critical mass is reached. Sports teams call that kind of guy “the locker room cancer”, but it applies to any group. Get a team of five aeronautical engineers together and you’ll get a cool plane. Get a group of fifty together, and you’ll get nothing but a giant nerd slap fight.

There are three plausible explanations for this:

  1. Social
  2. Biological
  3. or some combo of the two.

The Left (by which I also mean the Right) will, of course, go all in on {1}. It’s an article of faith for them, but it’s not necessarily wrong because of that. See above: Every one of those aeronautical engineers engaged in the giant 50-nerd slap fight is, on his lonesome and in every other context, the definition of a solid citizen. Certainly nobody groans “There goes the neighborhood!” when someone from Lockheed Martin buys a house down the block. There must be something to the idea that social conditions cause knuckleheadery.

Severian, “The Scientific Management of Populations”, Rotten Chestnuts, 2020-02-15.

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