Business Casual
Published 14 Sep 2018Thanks to Cheddar for sponsoring this episode! Check out their video on the iconic ad campaign that saved Old Spice here: https://chdr.tv/youtu8b4a6
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July 15, 2020
When The Dutch Ruled The World: Rise and Fall of the Dutch East India Company
July 8, 2020
QotD: Telecommuting in the post-Wuhan Coronavirus era
People are being stampeded into telecommuting. The thing is, dear media, once that happens, you can’t put it back in the bottle.
For two decades now, telecommuting and distance learning have been perfectly possible and even, frankly, beneficial. What has held it back is managers afraid they don’t know how to manage at a distance, corporations who think mega cubicle farms are a great way to be “important” and a general sense that only us, ne’er do wells, work in our pajamas on the sofa (I’ll have you know I’m wearing a sweatshirt and yoga pants. Never mind.)
If the panic lasts even two months (and the press will ensure it does before it collapses under its own weight) that reluctance to telecommute is going to be blown to hell. For one, once workers taste of THAT fruit, just anecdotally, 90% of them LOVE it. (The other 10% have very annoying children or spouses.)
And in the wake of the financial panic and wobbles, corporations are going to notice that they spend a lot less money when most of the workers work from home. At some point, they’ll also realize that they need much smaller facilities if they need facilities at all. And hey, money.
This will cause all sorts of other things, which I think will lead within two years to an exodus from the big cities everyone has crammed into because it’s where the jobs are. I think in turn this will lead to a world the social engineers really don’t like.
Sarah Hoyt, “Unintended Consequences”, According to Hoyt, 2020-03-12.
July 3, 2020
Birth, rapid growth, profitable stasis, bureausclerosis, decline, death – typical tech firm lifecycle
In the Continental Telegraph, what looks to be a pretty solid characterization of the corporate life-cycle for technology firms:
There are generally, 6 stages in the life of a tech company:
- Inception. A couple of smart kids start something in a garage. Massive innovation.
- Fast growth. The business moves to some good offices, number of staff increases. They take on smart, fast moving people who are innovating big. A few people know them.
- Steady growth. The business is now something of a household name. They get their own small head office. Staff are more like normal business. Innovation continues, but the bureaucracy starts to grow.
- Bureaucracy. The business is a household name. They have multiple offices, or something designed by a smart-ass architect. There’s still staff coming in, but they’re mostly seeing it as a nice warm place to sit and be bureaucrats. The innovators start leaving as it’s just not interesting. They might even be making lots of money, but it’s mostly just living off what was built in earlier phases, or large dumb wasteful projects that go nowhere for years.
- Decline. A new disruptor arrives on the scene. They innovate in a field you’re involved in. You can’t keep up because in the previous phase, you replaced the innovators with bureaucrats. You’re outsmarted.
- Terminal decline and death. You slowly or quickly disappear, maybe holding onto a few customers who habitually use you.
I think there might also be something about when government starts taking an interest in you, and I think it’s quite some time into stage 4. Google are already there. Firing James Damore is very much bureaucracy state behaviour. They wouldn’t have cared when it was a tiny number of staff in an office. And how much have they really innovated in the last decade?
July 1, 2020
June 28, 2020
Why is the British government buying part of OneWeb?
As Tim Worstall points out, the British government’s decision to buy 20% of the satellite company OneWeb doesn’t actually make any economic sense:
… OneWeb – in which the UK will own a 20% stake following the investment – currently operates a completely different type of satellite network from that typically used to run such navigation systems.
“The fundamental starting point is, yes, we’ve bought the wrong satellites,” said Dr Bleddyn Bowen, a space policy expert at the University of Leicester. “OneWeb is working on basically the same idea as Elon Musk’s Starlink: a mega-constellation of satellites in low Earth orbit, which are used to connect people on the ground to the internet.
The actual answer is that we don’t need to buy into anyone’s system at all. Just as we shouldn’t have into [EU satellite system] Galileo in the first place.
For, d’ye see, GPS is a public good. The US allows anyone to use the signals. Not that they can really stop people doing so either. Not unless they take the whole system down.
So, there’s the US system, free for all to use. A global public good – this means it doesn’t matter who provides it, it is there. It also means we don’t need our own. Which, in turn, means we don’t and didn’t need the Galileo system, let alone another one after we’ve left that.
As I said, politics not even asking the right question. They’re asking “which new system should we have?” when the correct questions is “why do we need a new system?” and given that the answer to the second is we don’t therefore the first is entirely moot.
Even setting aside the question of what the satellite system will be capable of, as the market is already in the process of developing and deploying the equipment, why does the British government think its investment is necessary?
June 27, 2020
QotD: The cost of military equipment
Major military hardware is produced in only limited quantities and involves a massive amount of research, development, and engineering before the first unit goes into service. Because of this, the companies that build it are rarely willing to take the risk of paying for the development themselves and recovering the cost from the units that they sell. What if the customer suddenly decides to cut their buy in half? To avoid this problem, development is paid for by the customer separately from procurement of each item. Well, more or less. The actual answer varies with each particular system, accounting method, and time of the month. But in general, costs break down that way.
So why does this cause so much confusion? Well, it all has to do with what gets reported. Someone who is trying to make the case that some program is outrageously expensive and should be cancelled is going to lump together development and procurement, divide by the number of systems involved, and then publish the resulting number. But, particularly when we’re discussing the cost of a system about to enter production, that’s very different from the actual numbers. To give a well-known example, the B-2 is generally reputed to have cost about $2 billion/plane in the 90s. However, this is the total program cost divided by the 21 airframes. If we’d decided to buy 22 B-2s instead of the 21 we did buy, the extra plane would have cost only $700 million or so. Admittedly, the B-2 is a rather extreme case, and usually the share of R&D cost is less than the procurement (flyaway) cost, but it’s illustrative of the power of this kind of framing.
“bean”, “Military Procurement – Pricing”, Naval Gazing, 2018-03-09.
June 24, 2020
Trudeau government wants to introduce an Internet “link tax”
Michael Geist on the Trudeau government’s latest indications of support for a tax grab to benefit certain favoured groups and organizations:
Last week, Canadian Heritage Minister Steven Guilbeault called into question his own government’s policies on supporting news media, suggesting that those programs should be replaced by copyright rules that would open the door to payments from internet companies such as Google and Facebook. Mr. Guilbeault indicated that a legislative package was being prepared for the fall that would include new powers for Canada’s communications regulator and what are commonly referred to as Netflix taxes and internet linking taxes.
My Globe and Mail op-ed notes the government’s support for new internet taxes should not come as a surprise. There were strong signals that the spring budget – postponed indefinitely due to the current public health crisis – was going to include expanding sales taxes to capture digital sales such as Netflix or Spotify subscriptions.
[…]
It is Mr. Guilbeault’s plans for a link tax that should spark the most concern, however. The government has long promoted its policies designed to support the Canadian media sector, including direct funding for local journalism as well as labour and subscription tax credits. The taxpayer cost runs into the hundreds of millions of dollars, but is justified on the grounds that journalism is an essential service that requires public support.
Yet Mr. Guilbeault now says that government should not be funding media, characterizing the policies as short term measures aimed at mitigating a media emergency. Instead, Mr. Guilbeault supports a controversial copyright reform measure that would establish a news publisher’s right to demand payment for services that link to their content.
This payment – effectively a tax on linking – raises a host of concerns, not the least of which is that the proposal was not recommended by the government’s own copyright review last year. Copyright reform in Canada is always complicated, particularly given that responsibility for it is shared with Innovation, Science and Economic Development Minister Navdeep Bains, but delving into reforms that sparked protests in Europe could be politically risky for a minority government.
News organizations already benefit from large platforms linking to their content since the links generate visitors that increase advertising revenues and paying subscribers. Organizations that do not want the links can easily opt-out of appearing in services such as Google News or Facebook. In fact, after Google shut down its Google News service in Spain, studies found publisher website traffic dropped by 10 per cent.
June 19, 2020
The economy isn’t all huge corporations and government
Paul Sellers reminds us that the economy is far more than just the big names that get mentioned in the financial pages:
Independents in micro-businesses are few and far between and often hard to discover, despite the internet’s ever-increasing web of enterprises. The backbone of British industry is made up of small, independent people striving to retain a measure of individualism, independence and entrepreneurialism in their lives. Statistics from 2019 show that in Britain there were 5.82 million small businesses responsible for 99.3% of the total business output in the UK.
Small businesses here comprise those with 0-49 employees and digging deeper still into what might at first seem more irrelevant than relevant is that the niche that small businesses fill in the real world of enterprise. Over 76% of businesses are operated by one-man bands; single-person enterprises who operate alone comprise almost 4.5 million men and women. With an additional 1.15 million micro-business (1-9 employees) around 95% of businesses here operate on a strength of under just 10 people. So over 99% of small to medium business enterprises, that’s zero to 249 employees, but only 0.6% have a workforce of 50-249 employees. Less than 4% are small businesses with 10-49 staff members and get this, over 95% operate as micro-businesses with 0-9 employees. What does this tell you about businesses output? What it tells me is how little of this is newsworthy by the mass media manufacturing companies (Like BBC News and ITV, Sky and so on) who constantly tell us about how many this massive company or that massive company is laying off and how little this really affects our economy because the little guys still get out into their little micro-shops and make what cannot work work.
June 11, 2020
June 8, 2020
Andrew Sullivan can’t write about the riots or he’ll lose his job
I’d wondered why he hadn’t directly addressed the biggest news item in the United States over the last week:
What has happened to New York media? Just as the New York Times was experiencing its own Inner Mongolia Moment over the now notorious Sen. Tom Cotton “Send in the Troops” op-ed, the Maoists at New York magazine were going after their best columnist, Andrew Sullivan.
Sullivan revealed on Twitter yesterday that his column wouldn’t be appearing. The reason? His editors are not allowing him to write about the riots.
Presumably Sullivan’s editors are frightened that he might make the radically bourgeois point that looting and violence are wrong.
Cockburn understands that Sullivan is not just forbidden from writing for the New York magazine about the riots; his contract means he cannot write on the topic for another publication. He is therefore legally unable to write anything about the protests without losing his job — at the magazine that, in 1970, published Radical Chic, Tom Wolfe’s brilliant and controversial excoriation of progressive piety. It’s the bonfire of the liberals!
June 4, 2020
Fallen flag — the Texas & Pacific Railway
This month’s fallen flag article for Classic Trains is the story of the Texas & Pacific Railway by J. Parker Lamb:

Decorative ticket cover for a Texas & Pacific passenger train. T&P passenger trains were called “Eagles”, as in the Texas Eagle.
Image via Wikimedia Commons.
What grew to become the 20th century’s Texas & Pacific Railway sprouted from some of Texas’s earliest railroads. The Lone Star State’s pre-Civil War network included 11 operating companies. One of the earliest was the Texas Western Railroad, chartered in 1850 and soon renamed Vicksburg & El Paso. In 1856 its name changed again, to Southern Pacific Railroad Company. Of course, this SP had no relation to the Southern Pacific incorporated in 1865 in California, although the convoluted histories of their successors later would intersect.
Backers of this railroad envisioned it as part of a southern transcontinental route from the Mississippi River to San Diego. By 1860, construction of 27 miles was completed between Waskom, on the Louisiana border, and Marshall. The eastern connection was planned as the Vicksburg, Shreveport & Pacific, which already stretched from Waskom across Louisiana to the west bank of the Mississippi at Vicksburg (later part of Illinois Central, it is now part of Kansas City Southern’s “Meridian Speedway”).
The Memphis, El Paso & Pacific, chartered in 1856, planned to start at the Red River near Texarkana and build to a connection with the SP near Dallas, thereby bringing Midwestern traffic into the transcontinental route. Little progress was made before the Civil War, however, with only 5 miles of track built, near Jefferson.Within a decade after the war, these two lines would be fused into one company. In 1870 the Memphis road was renamed Southern Transcontinental Railroad, and in 1872 Congress issued a charter for the Texas & Pacific Railway, which soon acquired both the ST and SP. The new charter approved a route from Marshall to El Paso and San Diego, and required 100 consecutive miles of construction by 1882. Backers hired Gen. Grenville Dodge, who had been chief engineer of Union Pacific’s recently completed transcontinental line to Utah.
In 1880, the infamous “Robber Baron” Jay Gould joined the board and quickly became the president, and the T&P became a key part of his corporate empire (he already controlled the Union Pacific after 1873 and the Missouri Pacific from 1879):

“Jay Gould’s Private Bowling Alley.” Financier and stock speculator Jay Gould is depicted on Wall Street, using bowling balls titled “trickery,” “false reports,” “private press” and “general unscrupulousness” to knock down bowling pins labeled as “operator,” “broker,” “banker,” “inexperienced investor,” etc. A slate shows Gould’s controlling holdings in various corporations, including Western Union, Missouri Pacific Railroad, and the Wabash Railroad.
From the cover of Puck magazine Vol. XI, No 264 via Wikimedia Commons.
Meantime, Gould directed Chief Engineer Dodge to begin an all-out effort to lay rails through the vast and nearly uninhabited desert of west Texas. Construction crews reached Big Spring, 267 miles, in April 1881 and Sierra Blanca (522) on December 16, 1881. However, it was at Sierra Blanca where Gould’s dream of a transcontinental railroad evaporated. He had been bested by Collis P. Huntington, another determined and ruthless railroad tycoon. Huntington’s eastward construction crews had passed through Sierra Blanca three weeks earlier, on November 25, en route to their own “last spike” ceremony of the Sunset Route at the Pecos River (west of Del Rio) in January 1883.
Under the banner of the Galveston, Harrisburg & San Antonio, controlled by Huntington and T. W. Pierce, construction crews had left El Paso in June 1881. When it was clear that Huntington was winning the race for a transcontinental line, a series of court battles ensued, followed by nefarious delaying tactics (including sabotage) by each construction crew, and finally by personal negotiation between the two principals. Gould’s legal case was based on T&P’s 1870 charter to build to San Diego, whereas Huntington’s Southern Pacific charter allowed him to meet the T&P at the Colorado River (between California and Arizona).
Wikipedia provides this sketch of Gould’s railway activities after his involvement in the Erie War:
After being forced out of the Erie Railroad, Gould started to build up a system of railroads in the midwest and west. He took control of the Union Pacific in 1873 when its stock was depressed by the Panic of 1873, and he built a viable railroad that depended on shipments from farmers and ranchers. He immersed himself in every operational and financial detail of the Union Pacific system, building an encyclopedic knowledge and acting decisively to shape its destiny. Biographer Maury Klein states that “he revised its financial structure, waged its competitive struggles, captained its political battles, revamped its administration, formulated its rate policies, and promoted the development of resources along its lines.”
By 1879, Gould gained control of three more important western railroads, including the Missouri Pacific Railroad. He controlled 10,000 miles (16,000 km) of railway, about one-ninth of the rail in the United States at that time, and he had controlling interest in 15 percent of the country’s railway tracks by 1882. The railroads were making profits and set their own rates, and his wealth increased dramatically. He withdrew from management of the Union Pacific in 1883 amid political controversy over its debts to the federal government, but he realized a large profit for himself. He obtained a controlling interest in the Western Union telegraph company and in the elevated railways in New York City after 1881. In 1889, he organized the Terminal Railroad Association of St. Louis which acquired a bottleneck in east–west railroad traffic at St. Louis, but the government brought an antitrust suit to eliminate the bottleneck control after Gould died.
June 3, 2020
How to be a Pirate: Quartermaster Edition 📙📈
CGP Grey
Published 2 Jun 2020‣ Adapted largely from The Invisible Hook. It’s great, go read it: https://amzn.to/36PLKSE
‣ Director’s Commentary later today: https://www.patreon.com/cgpgrey## Special Thanks
Peter T. Leeson for reviewing a draft of the script. Check out his newest book, WTF?!: An Economic Tour of the Weird: https://amzn.to/3eEMm09
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QotD: From “the media’s” point of view
But what if they’re right? The media are most often accused of three things: bias, sensationalism and negativity.
Bias. Everyone leans a certain way politically. Ideally, that wouldn’t affect the way a reporter covered a city council meeting or a police news conference. But to tell the truth, I’ve probably worked with 10 times more liberal-leaning journalists than conservative-leaning journalists over the past three decades. The profession attracts people with an affinity for underdogs. That has to have some impact on the stories we choose to do and the ones we don’t.
Sensationalism. It depends how you define it. If we talk to the relatives of a murder victim, are we doing it to make money? I hope we’re there because we’re trying help the community grieve together. But let’s face it, that story is going to be well-read so maybe it will make more money in some click-based, page-view algorithm that I’ll never understand.
Negativity. We don’t make cars crash. We don’t bomb civilians. The world can be an ugly place and these things won’t stop if we ignore them. On the other hand, I haven’t met many reporters who would rather cover a parade than a murder trial. Darker stories seem, by their nature, more important. So maybe we are negative.
But I’ve already fallen into the trap of thinking in terms of “us” and “them.” There should be no distinction. It’s here where the media are their own worst enemies. We tend to think we’re infallible because we’re doing God’s work. But if we want more people on our side, we could do a much better job of showing the public what we do, why we do it and how we do it. We like to crow about open courts, but what about open newsrooms?
Maybe we should trust people enough to let them in on the process. To boil it down to one example, if the police shoot an Indigenous man and we decide to mention his race in coverage, we should tell people why we thought it was relevant and maybe admit that we agonize over such decisions. It might not stop the haters but it would at least give “them” a chance to understand “us.”
Cam Fuller, “Do people really hate us and if so, why?”, Saskatoon StarPhoenix, 2018-03-03.
May 30, 2020
David Warren reports from “the High Doganate” (Parkdale, Toronto)
I haven’t lived in Toronto for many years now, but as David Warren highlights in his Essays in Idleness posts, things haven’t changed much in all that time:
We continue to be well-as-can-be-expected, up here in the High Doganate, though stir-crazy, and over-informed about the Batflu (also known as the Kung Flu, or Peking Pox). The housefinches on our balconata persist in their social distancing, and at street level, the dogs continue to walk their masters. The brave, without a dog, may go out, without a mask, if they can stand up to the Virtue Signallers (or as I prefer to call them, the Smugly Foocklings). But that is in the respectable parts of town, at least three miles away, where designer masks are now de rigueur. There are plenty of trolleys, but they travel mostly empty. This is because the transit authorities are “committed to keeping customers and staff safe.” Knowing that most of the public health measures are fraudulent, and/or counter-productive, is not helpful to one’s peace of mind.
These measures would include the vast public doles which our guvmints have been generating, electronically. It could be taken as pay, for those who’d otherwise riot. Eventually, the guvmints hope to electronically rake it back, both from those who were paid and those who were not, in the form of much extended taxes. To understand the Batflu response, is to understand the welcome it gave to bureaucrats and their patrons, wherever the Left won the last election. They do not surrender such powers lightly.
Most of the people I hang out with are their particular targets — from freelance giguers to flea marketeers to those with religious vocations. Such people naturally resist the Kafkaesque arrangements our progressives relish and demand. The Batflu “crisis” put as many as possible of these statistically inconvenient people out of work. (Many are compulsive tax-evaders, after all!) These “little people,” especially those trying to support uncool, old-fashioned, frankly heterosexual families, are the ones for whom I most pray, as they and their children face the “green” future, which will exclude them in the name of “diversity.”
But also I think of the vast slave armies, in the “service economy,” with their idiotizing jobs, from flipping hamburgers to humping boxes in the Amazon warehouse — pinned to their minimum wages until their functions can be mechanized. (When they unionize, this happens faster.)
The “professional classes,” who can work from home, because they do nothing of value, needn’t go months without revenue, while their debts are piling up. They sneer at those who oppose a lockdown, that is perfectly comfortable for the professional classes, who at worst save money by dining in, or must order what they want through Amazon.
May 27, 2020
American passenger trains before Amtrak
George Hamlin reflects on the state of the US passenger rail system before the formation of Amtrak in 1971:
… non-commuter U.S. passenger trains can be said to have been under siege essentially for my entire lifetime, beginning not long after the end of World War II. Many railroads spent large sums to re-equip with streamlined lightweight equipment after the war, only to see what was originally couched as an investment turn into essentially a drain on their companies’ treasuries.
And the “rewards” for this? Passengers decamped to the rapidly-expanding airlines, and their personal automobiles. The decisive blow came in 1956, with the passage of the Federal Aid Highway Act, which led to the Interstate Highway System.
Quoting from Joe Welsh’s Pennsy Streamliners, The Blue Ribbon Fleet (page 138), “Referring to the challenge, [PRR President] Symes wrote ‘There is such a thing as planning an orderly retreat in the face of superior forces.’ Clearly, the bugle had been sounded.”
In 1958, an Interstate Commerce Commission Hearing Examiner predicted that there would be no intercity passenger trains by 1970; he only missed by four months, effectively (and didn’t count on the Southern Railway, Rio Grande and Rock Island shying away from the government’s largesse). In 1959, TRAINS magazine devoted an entire issue to what was now clearly a crisis; the cover bore the legend “Who Shot the Passenger Train?”, complete with simulated bullet hole.
The 1960s in the U.S. could well be described as the “train-off” decade from a transportation history perspective; get, and read, Fred Frailey’s Twilight of the Great Trains, for a blow-by-blow analysis. The 1970s quickly produced the Penn Central bankruptcy, which proved to be the catalyst for government intervention; less than a year later, Amtrak was on the scene.
And since, it has frequently found itself in a “Perils of Pauline” existence, ranging from lack of funding to buy equipment, in many cases, to several bouts of route eliminations, to micro-management by politicians that don’t seem to be willing to provide consistent operational funding so that the company can make reasonable plans.

















