Quotulatiousness

September 9, 2015

When part of your job offends your religious beliefs, you have two choices…

Filed under: Business, Liberty, Religion, USA — Tags: , , , , — Nicholas @ 03:00

… and those choices are either get a different job or accept that your religious objection does not free you from having to perform all of the normal duties of the job. Some people, however, have the fixed notion that their religious beliefs must be respected and deferred to by everyone:

I’ve said it before but religious people really seem to believe that their religion ought to grant them special, legal privileges which are not provided to the rest of us. For some reason, certain people are so entitled that they believe their spiritual beliefs can be used to justify their own idiotic behavior, and if you dare to criticize them for their idiotic, unfair, or immature decisions that is evidence that you are simply an anti-religious bigot. What’s especially bizarre is that no other ideology is treated in the same way. If I were an investment banker and started refusing to do my job on the grounds that I was a socialist or if I were a cop and started refusing to make drug arrests on the grounds that I was a libertarian, no one would ever even attempt to argue that this was justifiable behavior. However, if I refuse to do my job because I’ve decided certain aspects of that job are against my religion, suddenly millions of people will view me as a martyr and I can expect pro bono legal counsel as members of my religious sect rush dutifully to my aid.

This situation is getting frankly ridiculous. The most famous recent example, obviously, is Kim Davis — a woman who was elected to a position that required her to issue marriage licenses and began refusing to do her job after the Supreme Court legalized gay marriage. If she didn’t want to do her job, there was one relatively simple option which was available to her since the very beginning and is still available to her should she choose to exercise that option — she could just quit. That would, in fact, be the adult thing to do if she feels that her religious beliefs do not allow her to meet her current job requirements, but instead she has decided to turn herself into some sort of ridiculous martyr to the religious right … and of course her $80,000 a year government salary, courtesy of the tax payers of Rowan County, Kentucky, probably had something to do with this decision. She deeply and truly loves her God, you see, but doesn’t love him quite enough to forego that sweet-ass government pension plan on his behalf.

Everyone knows the Kim Davis story, but what many people do not know is that at this very instant there is a virtually identical story involving a Muslim employee’s dispute with a Midwestern regional airline called ExpressJet. The woman’s name is Charee Stanley. Three years ago she became a stewardess for ExpressJet and then two years ago, presumably after sustaining some sort of catastrophic brain injury, she decided to convert to Islam. After her conversion, she found that her new faith frowned upon the serving of alcoholic beverages, so she began refusing to serve alcohol to passengers. More recently, she was suspended from her position pending a review because other flight attendants complained that they were being required to do her work in addition to their own. I personally don’t feel this is a particularly unreasonable complaint, and if it had been up to me, Ms. Stanley wouldn’t have simply been suspended, she would have been fired immediately for failure to meet her job requirements.

And just to prove you don’t need to actually be religious to hold this kind of belief, there’s also mention of Canada’s own Christian atheist, Reverend Gretta Vosper of West Hill United Church.

September 5, 2015

Raising the minimum wage also means raising prices for many retailers

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

Louis DeBroux on the plight of some marginal businesses in California who are seeing lower support from their customers as they raise prices to ensure they can keep paying their current employees at the new mandated minimum wage:

Earlier this year, labor unions in Los Angeles whipped up low-wage workers into a frenzy with demands for a minimum “living” wage of $15 per hour. They achieved their goal and the $15/hour wage bill was signed into law. This was supposed to be a huge victory for the workers (though, it should be noted, within days of the law going into effect, the same labor unions that lobbied for the $15/hour minimum wage were lobbying government for an exemption for union companies, so that union companies could pay well below the new minimum wage).

Even so, some California business owners decided to show solidarity with the cause of low-wage workers, significantly increasing their starting wage of their own volition.

Vic Gumper, owner of Lanesplitter Pizza (with stores in Albany, Berkeley, Oakland, and Emeryville, California), voluntarily raised wages for his employees to between $15 to $25 per hour. In order to cover the cost of the higher “living” wage, Gumper began advertising $30 “living wage pizzas” to his customers, which include patrons from the Pixar Animation Studios and biotech companies located near his shops. In doing so he declared these pizzas “sustainably served, really … no tips necessary”.

The result? Sales have dropped by 25% as liberals in these communities have balked at having to pony up more money for the pizzas. The hit has been so significant that Gumper has had to close during lunch hour at several locations (think about that…a restaurant that has to close during LUNCH because it can’t afford to stay open!).

Gumper says that “The necessity of paying a living wage in the Bay Area [which has one of the highest costs of living in the nation] is clear, so it’s hard to argue against it, and it’s something I’m really proud to be able to try doing…At the same time, I’m terrified of going out of business after 18 years.”

There really isn’t a free lunch … if you use the power of government to raise the costs of doing business, either the local businesses pass on that increased cost by way of the prices they charge to their customers or they economize by reducing their labour costs (and the number of employees they support). A more drastic solution is going out of business or moving out of the jurisdiction: neither of which is typically considered during the legislative process.

QotD: The existential problem facing Reddit

Filed under: Business, Liberty, Media, Politics, Technology — Tags: , , — Nicholas @ 01:00

Network effects are wonderful for a technology firm when it’s growing. Early movers can gain an advantage that is very hard to displace, because once everyone else is using Microsoft Word or a Playstation, there’s a cost to switching away. On the other hand, investors (and antitrust lawyers) often assume that network effects are more durable than they actually are. In fact, they can be quite fickle. Once your network starts shrinking, the collapse can be sudden, because every node that gets subtracted from your network makes it less valuable to the people who remain. Networks that start growing often start shrinking — and a modest decline can quickly prompt a stampede for the exits. Anyone remember MySpace?

And so the problem that Reddit has is this: Having attracted a bunch of people on the promise that they could say anything they wanted, the company risks alienating those people, shrinking the network and shrinking itself right out of existence. Reddit would probably be a better place if the fat-shaming hobbyists and racist trolls were surgically excised. But they won’t be; they’ll be forced out bluntly, along with others, and that will drive away many of the users Reddit would like to keep.

Deciding what is offensive is inherently a political act, because one man’s deep truth is often another person’s deep offense. To take one obvious example, do you treat conservative Christians who say terrible things about gay rights activists the same as gay rights activists who say terrible things about conservative Christians? Men’s rights activists the same as feminists?

We are all more attuned to the offenses against our own beliefs than we are to what may seem terribly offensive to others. And with the culture war raging hot, it is going to be very hard to make choices that don’t look as if you’re taking sides. Even if you try to be scrupulously fair, chances are that you will miss something, causing one side to understandably point out: “See, they crack down on us, but not on those equally offensive other people!”

Reddit is trying to avoid this by splitting the baby in half: designating much of the worst content as questionable, and then segregating it, but not banning it. It’s far from clear, however, that this compromise will work. I don’t think a lot of people are going to mourn when the racist subreddits are segregated. But those are among the most notorious cases precisely because most people can agree that racist epithets are not okay. The border cases are likely to be more numerous, and the decisions will convince some users that Reddit is not for them.

Megan McArdle, “Policing Reddit Could Kill Reddit”, Bloomberg View, 2015-07-17.

September 1, 2015

Bet you didn’t see this coming – Koch and Sanders working together

Filed under: Business, Economics, Liberty, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

As everyone on the left knows, the Koch brothers are blackest avatars of evil incarnate and any of their works are tainted with pure, unadulterated evil … which might make some heads explode because The Intercept is reporting that the Koch fortune might be put to work to help elect Bernie Sanders:

I have a prediction: Charles and David Koch will soon announce they’re backing Bernie Sanders for president.

Here’s my logic, which is irrefutable:

We know the Koch brothers, and the organizations they fund, hate corporate welfare more than anything. They hate it!

The top priority of Freedom Partners, which oversees the Koch network of donors, is “tackling ‘rent-seeking,’ ‘corporate welfare,’ and other forms of cronyism.”

Charles Koch himself just told Politico’s Mike Allen that “We have to show that this corporate welfare and cronyism is unjust.” Sure, said Koch, it makes their friends unhappy, but “so what? You’ve got to do the right thing.” So as Allen wrote, “Rolling back corporate welfare is one of the top issues Koch is pursuing.”

Similarly, when Koch spoke recently to 450 of his fellow big donors at a recent Koch event in California, he demanded that “they have to start opposing, rather than promoting, corporate welfare.” In the Wall Street Journal, Koch wrote that “I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs.”

It might sound outlandish, but there aren’t many of the four hundred Republican candidates who are as staunch against crony capitalism, corporate welfare, and rent-seeking as good old self-declared socialist Bernie Sanders (aside from Rand Paul, I can’t think of any current Republican candidates who might even hint at biting the corporate hands that feed their campaigns’ insatiable demand for fresh funding…).

August 31, 2015

Newspapers in the 21st century – what are they for?

Filed under: Business, Media, USA — Tags: , — Nicholas @ 03:00

Colby Cosh on the confusion even among newspaper folks themselves on their real role in today’s society:

But the newspaper is part of a different ecosystem now. A front page is a late contribution to an ongoing conversation in a way it was not in 1963, or even 2003. Editors making decisions about what images to use had heard Alison Parker’s screams; they knew many readers had heard them. That non-graphic touch made the photo of Parker with the killer’s weapon in the foreground “graphic” — too graphic for the proverbial breakfast table. (Although I would remind sensitive editors and media critics that the “breakfast table” is an incredibly outmoded way of thinking about our jobs, much like the idea that we are presenting news in a utilitarian, isolated way to readers who haven’t heard it.)

The truth is that the minds of most newspaper creators and editors are not completely clear about what these strange flat objects are good for in the year 2015. The New York Daily News, which does know what it is for, was unflinching in its front-page treatment of the WDBJ shooting. It caught immediate hell, but its confidence in its mission is a virtue. The paper knows that it exists partly because when something happens, New Yorkers can’t wait to see what those crazy-ass bastards in the tabloids will do with it.

Does the newspaper do harm with its relative sensationalism? It seems impossible to know. But it is certainly not the infliction of harm that critics and second-guessers fear most: it is the giving of offence.

August 27, 2015

Incentives matter … but in a perverse manner for public employees

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

On the Property and Environmental Research Center website, Warren Meyer explains why the US Forest Service is cutting ties with private organizations that have been running federally owned facilities for less than the Forest Service is able to do … despite the private company’s proven higher levels of service:

Private concessionaires pay all operations costs out of the entrance fees paid by the public — and without further taxpayer subsidies. In addition, the concessionaire pays the public agency a concession fee. The resulting savings to taxpayers can be quite compelling. In a recent PERC case study, I showed how a parks agency had to supplement every dollar in visitor fees with an equal amount of tax dollars to keep a park open. By privatizing the park’s operations, the need for tax revenues could be eliminated. And in fact, the park could be turned into a money maker for the agency.

While this may resonate with the public, it’s a hard sell to the agencies themselves. The National Park Service uses concessionaires to provide some visitor services, but it has not considered private operation of entire parks. Even the Forest Service — which does allow some private park management — often seems eager to go back to running the parks themselves.

[…]

No private company would behave like this. So why does the government? Over the years, I have observed three possible explanations:

1. Government employees have incentives that go beyond “public service.” For most agency managers, their pay and prestige and future job prospects are tied to the size of their agency’s headcount and budget. Privatization savings that look like a boon to taxpayers may look like a demotion to agency managers.

2. People who are skeptical of private enterprise and more confident in government-led solutions tend to self-select for government jobs. Even in the Forest Service, concessionaires frequently experience outright hostility from the agency’s rank and file. “It’s wrong to make a profit on public lands” is one common statement.

3. Government accounting is not set up to make these sorts of decisions well. Few agencies have reports that tell them whether an individual park’s revenues are covering its full operational costs. Costs can be spread over multiple budgets, making it seem as though public park operation is less expensive than it really is.

To overcome these obstacles, we’ve learned that progress generally has to start above the agency. Some sort of legislative push is necessary. And we try to find ways to pitch our solutions as a way for agencies to free up money to address other problems, such as fixing rotting infrastructure.

August 26, 2015

Organic food recalls on the rise

Filed under: Bureaucracy, Business, Food, Health, USA — Tags: — Nicholas @ 05:00

It must be a trend if even the New York Times is reporting on the increasing number of food safety recalls involving organic food:

New data collected by Stericycle, a company that handles recalls for businesses, shows a sharp jump in the number of recalls of organic food products.

Organic food products accounted for 7 percent of all food units recalled so far this year, compared with 2 percent of those recalled last year, according to data from the Food and Drug Administration and the Department of Agriculture that Stericycle uses to compile its quarterly report on recalls.

In 2012 and 2013, only 1 percent of total units of food recalled were organic.

Kevin Pollack, a vice president at Stericycle, said the growing consumer and corporate demand for organic ingredients was at least partly responsible for the increase.

“What’s striking is that since 2012, all organic recalls have been driven by bacterial contamination, like salmonella, listeria and hepatitis A, rather than a problem with a label,” Mr. Pollack said. “This is a fairly serious and really important issue because a lot of consumers just aren’t aware of it.”

August 25, 2015

Roger Kimball says Elon Musk is crazy

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

Oh, sorry, he actually said Musk is “crazy like a visionary“:

I am an unlikely fan of Elon Musk, the flamboyant, Steve Jobs-like (some would say Tony Stark-like) entrepreneur behind SpaceX, SolarCity, Tesla Motors, and other enterprises that seemed like starry-eyed impossibilities a scant decade ago. Musk’s two governing passions, he has said repeatedly, are “sustainable transport” to battle “global warming” and finding a way to make mankind an interplanetary species, beginning with a space colony on Mars.

For my part, the word “sustainable” has me reaching, if not for my revolver, then at least for an air-sickness bag. I regard the whole Green Lobby as a cocktail composed of three parts moralistic hysteria mixed with a jigger of high-proof cynical opportunism (take a look at Al Gore’s winnings from the industry) fortified with a dash of beady-eyed left-wing redistributionist passion. You can never be Green enough, Comrade, and if the data show a 20-year “hiatus” in global warming (so much for Michael Mann’s infamous hockey stick), that’s no reason not to insist that capitalist powerhouses like the United States drastically curtail their CO2 emissions right now, today, while giving egregious polluters like China a decade or more to meet its quotas.

No, when it comes to energy, I often quote, sometimes with attribution, the Manhattan Institute’s Robert Bryce: what the world needs now is cheap, abundant energy, period, full stop, end of discussion. My motto is: frack early, frack often. Do you want to help the poor/clean up the environment/save the spotted wildebeest? Then you need economic growth, and to achieve that you need energy, which at the moment means you need fracking. Q.E.D.

When it comes to interplanetary travel, I suspect that Musk’s passion for transforming us into “space-faring” creatures was heavily influenced by his youthful reading of Isaac Asimov, Robert Heinlein, and (one of his favorites) The Hitchhiker’s Guide to the Galaxy. Not that those adolescent chestnuts necessarily argue against the plausibility of his ambitions. Behind Musk’s enthusiasm for space colonization is a worry that a future “extinction event” might delete human consciousness from the emporium of the universe.

For what it’s worth, I’m very much split on Musk and his works: I generally agree with his desire to help get humanity expanding beyond our single, frail planet … I just wish he wasn’t guzzling down government subsidies to get there. I’ve read the book Kimball is reviewing (Ashlee Vance’s Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future), and I certainly feel I got my money’s worth from the purchase … Musk is potentially a very great man. Right now, he’s a pretty good man who still takes everything he can get from the government.

August 24, 2015

Billionaires, good and bad

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

In the Washington Post, Ana Swanson examines the good and bad (for economic growth) of the billionaire class:

Over the past few decades, wealth has become more concentrated in the hands of a few global elite. Billionaires like Microsoft founder Bill Gates, Mexican business magnate Carlos Slim Helú and investing phenomenon Warren Buffett play an outsized role in the global economy.

But what does that mean for everyone else? Is the concentration of wealth in the hands of a select group a good thing or a bad thing for the rest of us?

You might be used to hearing criticisms of inequality, but economists actually debate this point. Some argue that inequality can propel growth: They say that since the rich are able to save the most, they can actually afford to finance more business activity, or that the kinds of taxes and redistributive programs that are typically used to spread out wealth are inefficient.

Other economists argue that inequality is a drag on growth. They say it prevents the poor from acquiring the collateral necessary to take out loans to start businesses, or get the education and training necessary for a dynamic economy. Others say inequality leads to political instability that can be economically damaging.

A new study that has been accepted by the Journal of Comparative Economics helps resolve this debate. Using an inventive new way to measure billionaire wealth, Sutirtha Bagchi of Villanova University and Jan Svejnar of Columbia University find that it’s not the level of inequality that matters for growth so much as the reason that inequality happened in the first place.

Specifically, when billionaires get their wealth because of political connections, that wealth inequality tends to drag on the broader economy, the study finds. But when billionaires get their wealth through the market — through business activities that are not related to the government — it does not.

August 11, 2015

The range and striking power of the Card and Krueger study

Filed under: Business, Economics, Food, Politics — Tags: , , , , — Nicholas @ 05:00

At Coyote Blog, Warren Meyer explains how one particular economic study wields far more influence in the fast food/minimum wage debate than any other similar study:

Pick a progressive on the street, and in the unlikely event they can name any economic study, that study will probably be Card and Krueger’s study of the effect of a minimum wage increase in New Jersey. Sixty bazillion studies have confirmed what most of us know in our bones to be true, that raising the price of labor decreases demand for that labor. Card and Krueger said it did not — and that a minimum wage increase may have even increased demand for labor — which pretty much has made it the economic bible of the Progressive Left.

What intrigues me is that Card and Krueger specifically looked at the effect of the minimum wage on large chain fast food stores. In this study (I will explain the likely reason in a moment) they found that when the minimum wage increased for all businesses in New Jersey, the employment at large chain fast food restaurants went up.

So I wonder if the Progressives making this ruling in New York thought to themselves — “we want to raise the minimum wage. Well, the one place where we KNOW it will have no negative effect from Card and Krueger is on large fast food chains, so…”

By the way, there are a lot of critiques of Card & Krueger’s study. The most powerful in my mind is that when a minimum wage is raised, often the largest volume and highest productivity companies in any given business will absorb it the best. One explanation of the Card & Krueger result is that the minimum wage slammed employment in small ma and pa restaurants, driving business to the larger volume restaurants and chains. As a whole, in this theory, the industry saw a net loss in employment and a shift in employment from smaller to larger firms. By measuring only the effect on larger firms, Card and Krueger completely missed what was going on.

August 10, 2015

Toronto craft brewers and beer cans

Filed under: Business, Cancon — Tags: , — Nicholas @ 02:00

Ben Johnson explains the rising popularity of beer cans even among microbreweries in the Toronto area:

Whether it be memories of your dad’s garage fridge filled with industrial lager in little tins or visions of shotgunning affordable lagers at college parties, beer cans have, for the most part, gotten a bad rap as something like the poor-man’s beverage container.

But that’s quickly changing.

Increasingly, as Toronto’s craft beer scene booms and the city’s brewers seek out the best ways to sell their beer, cans are becoming the preferred option. But why?

Jeff Rogowsky, the co-founder of Session Craft Canning, has seen the popularity of cans grow in the last few years. Rogowsky’s company is a mobile operation that brings canning capabilities to craft brewers who often can’t afford their own expensive canning lines.

I spoke with Rogowsky via email and he told me that he thinks the increased popularity of cans is largely being driven by consumer demand. “Canning gained popularity,” he says, “because it allowed people to take beer to more places–golf courses, beaches, in a backpack, to a movie theatre–cans are infinitely more portable and easier to travel with.”

August 9, 2015

Toronto-area supermarkets of the past

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

At BlogTO, Chris Bateman digs up some old photos of some Toronto-area supermarket chains that have faded from the scene over the years:

Today, a trip to the supermarket in Toronto more than likely means shopping at a brand belonging to one of a small number of corporations. Loblaws owns No Frills, Valu-mart, and T&T; Metro owns Food Basics, while FreshCo, Sobeys, Price Chopper are part of the Canadian conglomerate Empire Company Limited.

In the mid 20th century, before the first of several major acquisitions and mergers, shoppers had more of a say where their grocery dollars ended up. In those days, independent chains like Power, Dominion, and Steinberg wowed customers with gleaming self-serve supermarkets, ample parking, and space age foods.

Here’s a look back at five supermarket chains that have vanished from Toronto.

My family moved to the Toronto area in 1968, but I didn’t know about some of the chains (but I recognized the distinctive architecture of this one):

Grand Union

Toronto Supermarkets-GrandUnion

Grand Union’s most famous Toronto store was at the Parkway Mall at Victoria Park and Ellesmere in Scarborough.

Toronto Supermarkets-GrandUnion-Ad

The U.S.-based company built the store with its distinctive arched roof in 1958, just five years after entering the Canadian market with the purchase of Carroll’s, a grocery chain based out of Hamilton.

Toronto Supermarkets-GrandUnion-Miracle

Just months after opening its flagship Scarborough location, Quebec-based Steinberg’s […] bought the company’s Canadian stores and rebranded the Parkway Mall location. It was later a Miracle Food Mart and a Dominion. Today, it’s a Metro. In 2009, the store became the first supermarket to be listed on the City of Toronto’s Inventory of Heritage Properties.

August 8, 2015

Election issue – the Netflix tax, “much ado about nothing?”

Filed under: Business, Cancon, Media, Politics — Tags: , , , , , — Nicholas @ 04:00

Michael Geist looks at the major federal party leaders’ reactions to discussion of a “Netflix tax”:

As part of the digital strategy discussion, I stated that questions abound, including “are new regulations over services such as Netflix on the horizon?”

Prime Minister Stephen Harper addressed that question yesterday with a video and tweet in which he pledged that the Conservatives will never tax digital streaming services like Netflix and Youtube. Harper added that the Liberals and NDP have left the door open to a Netflix tax, but that he is 100% opposed, “always has been, always will be.” Both opposition parties quickly responded with the NDP saying they have not proposed a Netflix tax and the Liberals saying they have never supported a Netflix tax and do not support a Netflix tax.

So is this much ado about nothing?

Not exactly. First, there are groups and provincial governments that support a Netflix tax or mandated contribution to fund the creation of Canadian content. These include the Ontario and Quebec governments along with many creator groups. Earlier this year, I obtained documents under the Ontario Freedom of Information and Protection of Privacy Act that showed that the Ontario government spent months working toward a recommendation to expand the regulation of new media, including Canadian content requirements and increased regulation of foreign online video providers.

Second, while the Liberals and NDP have not proposed a Netflix tax, they have called for requirements that online video providers disclose revenues, Canadian content availability, and subscriber numbers to Canadian regulators. This is a very soft form of regulation that Netflix and Google have rejected as beyond the power of the Broadcasting Act. Providing information to allow for more informed regulatory analysis does not seem particularly unreasonable, but the companies unsurprisingly fear that that analysis could ultimately lead to calls for more regulation or payments.

Third, the real Netflix tax is the prospect of a levying sales taxes on digital products such as music downloads or online video services. It was the Conservatives that raised this possibility in the 2014 budget, launching a consultation on the issue that garnered supportive comments from companies such as Rogers, which noted that Canadian-based online video services such as Shomi operate at a disadvantage since they collect GST/HST, but Netflix does not. With many countries moving toward some form of digital taxation (as I noted in a January 2015 column on the issue, the real challenge lies in the cost of implementation), it seems inevitable that Canada will do the same in order to level the playing field and recoup a growing source of revenue. The Conservatives would presumably seek to differentiate between a generally applicable sales tax and a tax or fee targeting online streaming services, though many may feel it is a distinction without a difference.

August 4, 2015

Alex Tabarrok explains the “Happy Meal fallacy”

Filed under: Business, Economics, Food, Law — Tags: , — Nicholas @ 04:00

Another post from last month that I’m just getting around to linking:

Some restaurants offer burgers without fries and a drink. These restaurants cater to low-income people who enjoy fries and drinks but can’t always afford them. To rectify this sad situation a presidential candidate proposes The Happy Meal Act. Under the Act, burgers must be sold with fries and a drink. “Burgers by themselves are not a complete, nutritious meal,” the politician argues, concluding with the uplifting campaign slogan, “Everyone deserves a Happy Meal!”

But will the Happy Meal Act make people happy? If burgers must come with fries and a drink, restaurants will increase the price of a “burger.” Even though everyone likes fries and a drink they may not like the added benefits by as much as the increase in the price of the meal. Indeed, this must the case since consumers could have bought the meal before the Act but chose not to. Requiring firms to sell benefits that customers value less than their cost makes both firms and customers worse off.

The Happy Meal Fallacy is fairly obvious when it comes to happy meals but now let’s consider the debate over the gig economy and the hiring of employees versus contractors. Employees are entitled to benefits that contractors are not. Thus the standard conclusion is that classifying workers as contractors “is great for employers but potentially terrible for workers.” Wrong. Employees get their wages with fries and a drink while contractors get wages only. Would a law requiring firms to provide all workers with fries and a drink help workers?

If firms are required to provide benefits to contractors they will lower the contractor wage. But how do we know the extra benefits aren’t worth the reduction in wages? If the extra benefits were worth more to workers than they cost firms, firms would have eagerly provided these benefits as a way of increasing profits. Firms can profit whenever buyers are willing to pay more for a product than its cost. Benefits are a product that workers buy from firms.

July 30, 2015

If you listen to their music, why not drink their hooch?

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

At Boing Boing, David Pescovitz alerts us that The Pogues have lent their name to a new irish whiskey:

Pogues Irish WhiskeyCeltic punk bank The Pogues have launched a signature brand of Irish whiskey. Made by West Cork Distillers, “it’s said to be Ireland’s highest malt-containing blended Irish whiskey, with 50% grain and 50% single malt liquid.”

The Pogues’ singer Shane MacGowan is well known for his adoration of alcohol. According to his memoir, A Drink With Shane MacGowan, he started at age five with two nightly pints of Guinness given to him by his parents, and never really stopped.

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