Quotulatiousness

January 5, 2019

We may already have passed the peak of High Speed Railways

Filed under: Economics, Japan, Railways, USA — Tags: , , , , — Nicholas @ 03:00

Hans Bader looks at the mass transit mess, including a brief glance at the state of high speed passenger rail:

So-called bullet trains generally turn out to be white elephants. South Korea is abolishing its celebrated high-speed rail line from its capital, Seoul, to a nearby major city because it can’t cover even the marginal costs of keeping the trains running. Most people who ride trains don’t need maximum possible speed, and most of those who do will still take the plane to reach distant destinations.

Despite Japan’s much-vaunted bullet trains, most Japanese don’t take the bullet train either; they take buses because the bullet train is too expensive. Bullet trains do interfere with freight lines, so Japanese freight lines carry much less cargo than in the United States, where railroads—rather than trucks—carry most freight, thereby reducing pollution and greenhouse gas emissions.

California’s so-called bullet train is vastly behind schedule and over budget, and will likely never come close to covering its operating costs once it is built. As Reason magazine noted, transportation officials have warned that California’s misnamed “bullet train” is a disaster in the making. California is drastically understating the costs of its high-speed rail project. Just the first leg of this $77 billion project will cost billions more than budgeted. And the project is already at least 11 years behind schedule.

November 19, 2018

“You call someplace paradise/kiss it goodbye”

Filed under: Environment, USA — Tags: , , , , — Nicholas @ 05:00

The Eagles song “The Last Resort” references a generic paradise, not the California town of that name, yet it fits disturbingly well, as Gerard Vanderleun describes:

Paradise is not a town on some flat land out on the prairies or deep in the desert. Paradise is a series of cleared areas and roads superimposed on an extremely rugged terrain composed of deep, narrow ravines and high and densely wood ridges. The Skyway is fed by hundreds of paved and unpaved roads that twist and turn and rise and dip and then, at their OFFICIAL ends, run deeper still and far off the grid. If you live in Paradise you know there are hundreds of people living back up in those ravines and ridges that would be hard to find before the fire. In those places, the poor are lodged tighter than ticks.

I’ve seen, before the fire this time, people in the outback of Paradise so abidingly poor they were living in trailers from the 70s resting on cinder blocks and at most only two winters away from a pile of rust. These people would have had no warning of a fire, no warning at all. Instead of “sheltering in place” they would have been “incinerated in place.”

In the ravines and forests of Paradise, cell reception was so spotty that AT&T gave me my own personal internet driven cell-phone tower. If those off the grid in Paradise actually owned cell phones they would have been lucky to get an alert. But most of those did not own cell phones, and landlines didn’t run that deep in the woods. When the fire closed over them they would have had no warning. No warning until the trailer melted around them. And then there was, out behind but still close to their trailer, their large propane tank.

November 15, 2018

“… like watching a spontaneous Humanitarian Olympics rise up out of the town itself”

Filed under: Business, Liberty, USA — Tags: , , — Nicholas @ 06:00

Gerard Vanderleun is one of the refugees from the Camp fire that burned out all of the town of Paradise, California. He’s staying in Chico, fortunately with a roof over his head, unlike many of his fellow Paradisians who lost literally everything but what they were wearing:

In the 24-Hour Walgreens Pharmacy on East Avenue, the pharmacists have been working overlapping shifts since the fire swept over Paradise last Thursday. These people and their back up staff work seemingly rock solid for hours on end. They fill and file and dispense medications which people from Paradise do not have with them. This is a demanding and thankless and exhausting task. And yet — I am the witness — they have been doing this without letup. Many have come in from surrounding towns, from Redding, to help and to keep the medications needed by a town of 30,000 displaced into a city of 80,000. Yes, the Walgreens pharmacists are leaving it all on the field.

Today, after the banking holiday of Monday, there was what can only be described as a run on the banks. Not a hostile or panicked run on the banks but just an overwhelming number of people needing to get their money straight in one way or another… such as “My ATM Card and My ID were melted in my wallet when my pants burst into flame.” Please understand that today in Chico that is a reasonable statement. And the bankers all showed up looking cool and formal and professional and competent and moved the vast lines of people through with all hands on deck and cleared up a myriad of money crises. One banker I spoke with came up from Santa Rosa on his day off to help the team. He was a sharp dressed man. He and the other bankers were leaving it all on the field.

They all were leaving it all on the field everywhere in Chico. From Penny’s in the Mall to the Birkenstocks Store downtown on Broadway. In big jobs, and in small jobs, there was a long train of people working at the top of their game no matter what their game was. It has been days of this now in Chico; days of there being no big jobs or small jobs but only the unremitting effort the people to help their fellow citizens no matter what.

And since none of the Acronym Agencies have really shown up yet, this has all been done without any real government organization. Instead, it has been like watching a spontaneous Humanitarian Olympics rise up out of the town itself; and once started it has become as self-organizing and self-sustaining as the fire itself. Today as I moved around Chico I saw a town, untouched itself by the flames, rise up to restore and rebuild the lives of their fellow citizens of Paradise; lives that the fire had stolen. And by the end of the day, you could feel, palpably feel, that Chico knew it would win. Chico was leaving it all on the field.

Tomorrow? Chico will do the same.

October 23, 2018

California (secessionist) dreaming

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

In the latest Libertarian Enterprise, L. Neil Smith suggests that the kindest thing to do to California is to allow it to secede from the Union:

… some Californians bleat that they want to secede from a United States that threatens to make them straighten up and fly right. Superficially, that might be a workable idea: on paper, California has one of the largest, most powerful economies in the world — bigger than that of many independent nations. It has a long, wonderful coastline and a couple of really good natural ports. Its agricultural sector is second to none. There is oil and gas within easy reach. It has no real military defenses, but I’m sure they’d be more than willing to leech off America’s defenses, our Navy, our Air Force, and our nuclear umbrella, like the deadbeat pajama boys they resemble, living in their mothers’ basements.

But wait. On the reasonable assumption that the California secession movement is limited to people in the counties that voted for Hillary Clinton, and that people in the counties who voted for Donald Trump do not want to secede, I consulted a California county-by-county election map for 2016. Blue counties dominate all but a tiny spot on the northern coast, which is too bad; most of the interior — the most productive part of the state — is bright red.

So here’s my brilliant idea. Instead of fighting another bloody, stupid, senseless War of Secession like the one we had in 1865, let’s grandly and magnanimously permit the state of California to secede — even insist on it — one county at a time. Those counties that vote to secede may do so and create the People’s Republic of Californistan, or whatever.

In exchange for defending this dog’s breakfast of a polity, we will keep all of our military bases and installations, somewhat like Guantanamo Bay Naval Air Station in Cuba. I believe the legal term is “adverse possession”. Those counties that do not vote to secede — we wouldn’t want them to become like the captive peoples and nations of Europe during the Cold War — may remain in the Union, joining the adjacent state (mostly Nevada) or forming their own. To paraphrase the Borg, “We will add their productiveness to our own.”

However the trouble (for California, anyway), if you look at the map, is that county-by-county secession leaves the people’s Republic without visible means of support, a vagrant state, as it were, full of pencil-neck politicos and other worthless parasites, guilty of loitering on our Left Coast. They’re already bankrupt, after decades of Leninist-Stalinist policies. Now they will never recover with their productive counties gone — and we get their avocados!

Let them eat software.

August 20, 2018

QotD: Economic refugees wanting to re-create the hell they just escaped from

Filed under: Economics, Politics, Quotations, USA — Tags: , , — Nicholas @ 01:00

I can’t tell you now many people I know here in Arizona that tell horror stories about California and how they had to get out, and then, almost in the same breath, complain that the only problem with Arizona is that it does not have all the laws in place that made California unlivable in the first place. They will say, for example, they left California for Arizona because homes here are so much more affordable, and then complain that Phoenix doesn’t have tight enough zoning, or has no open space requirements, or has no affordability set-asides, or whatever. I am amazed by how many otherwise smart people cannot make connections between policy choices and outcomes, preferring instead to judge regulatory decisions solely on their stated intentions, rather than their actual effects.

Warren Meyer, “When You Come Here, Please Don’t Vote for the Same Sh*t That Ruined the Place You Are Leaving”, Coyote Blog, 2016-11-02.

April 7, 2018

Car rental agencies look to government to quash upstart “personal vehicle sharing” companies

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

Steven Greenhut discusses yet another entrenched industry trying to get the government to protect them from disruptive competitors:

Real capitalism is a tough sport where entrepreneurs risk their capital in hopes of winning customers.

The “crony” version of it involves politicians rigging the rules to assure that the “right” people are winners. We see this ugly process on high-profile national issues, such as when Donald Trump promotes tariffs to boost steel makers at the expense of companies that use steel products. But most of this nonsense proceeds quietly in legislative committees, without garnering any headlines or vocal opposition.

One awful but illustrative example popped up recently in the California state Capitol. Assembly Bill 2246, by Assemblywoman Laura Friedman, D-Glendale, apparently is part of a national effort by rental-car companies to snuff out a burgeoning industry that just happens to be threatening its business model. The bill would redefine “personal vehicle sharing” companies as “car rental companies” — and then slam them with reams of new regulations. Similar measures have been proposed in Idaho, New Hampshire, Maryland and Maine.

Rental-car companies are facing the same challenges as other established business models in this internet and app-based age. Capitalism — the real sort — is defined by “creative destruction,” as economist Joseph Schumpeter called it. New companies are free to offer better products and services that appeal to customers. This is creative as new ideas flourish and consumers get a broader choice and lower prices thanks to competition. But it’s also destructive. Complacent old companies suddenly are forced to improve their offerings or shut their doors. The consumer is king.

For example, I recently grabbed a taxicab rather than my usual Uber and noticed the oddest thing. The cabbie had a modern app-based system for taking my credit-card payment. Until recently, paying by credit card was a hassle because cab services didn’t really want to take your card. I’ve also noticed a fleet of nice new cabs around my city. And the cab I took even sent an email with a receipt and a rating system. Sound familiar?

April 5, 2018

Mark Steyn on the YouTube shooting in San Bruno

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

The shooting at the YouTube offices in San Bruno, California may not be in the headlines for long, as the story is so off-beat compared to other recent events that it doesn’t easily fit the model the media prefers for reporting gun crime (or high tech stories). Mark Steyn calls it the “grand convergence”:

The San Bruno attack also underlines a point I’ve been making for over a decade, ever since my troubles with Canada’s “human rights” commissions: “Hate speech” doesn’t lead to violence so much as restraints on so-called “hate speech” do – because, when you tell someone you can’t say that, there’s nothing left for him to do but open fire or plant his bomb. Restricting speech – or even being perceived to be restricting speech – incentivizes violence as the only alternative. As you’ll notice in YouTube comments, I’m often derided as a pansy fag loser by the likes of ShitlordWarrior473 for sitting around talking about immigration policy as opposed to getting out in the street and taking direct action. In a culture ever more inimical to freedom of expression, there’ll be more of that: The less you’re permitted to say, the more violence there will be.

Google/YouTube and Facebook do not, of course, make laws, but their algorithms have more real-world impact than most legislation – and, having started out as more or less even-handed free-for-alls, they somehow thought it was a great idea to give the impression that they’re increasingly happy to assist the likes of Angela Merkel and Theresa May as arbiters of approved public discourse. Facebook, for example, recently adjusted its algorithm, and by that mere tweak deprived Breitbart of 90 per cent of its ad revenue. That’s their right, but it may not have been a prudent idea to reveal how easily they can do that to you.

What happened yesterday is a remarkable convergence of the spirits of the age: mass shootings, immigration, the Big Tech thought-police, the long reach of the Iranian Revolution, animal rights, vegan music videos… But in a more basic sense the horror in San Bruno was a sudden meeting of two worlds hitherto assumed to be hermetically sealed from each other: the cool, dispassionate, dehumanized, algorithmic hum of High Tech – and the raw, primal, murderous rage breaking through from those on the receiving end.

March 6, 2018

Real estate reality may finally be changing minds in Silicon Valley

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

I’ve never lived in Silicon Valley, and my one vist there was over 25 years ago — but even then, I thought the real estate market was far higher than it should have been. The sale of a tiny house in Sunnyvale (for $2 million or $2,358 per square foot) is symbolic of real estate values all around the area, as the stories get told of new employees living in their cars because even on six-figure salaries, they can’t afford to buy or even rent near where they work. Iowahawk linked to a New York Times article which shows that some movers and shakers acknowledge that Silicon Valley has a serious problem:

February 11, 2018

Bay area food entrepreneurs shut down by local health authorities

Filed under: Business, Food, Government, Health, Technology, USA — Tags: , , — Nicholas @ 03:00

In Reason, Baylen Linnekin recounts the rise and fall of Josephine, an online operation intended to connect home cooks with willing buyers:

A dozen or so years ago, as my friend Dave was planning a move from Washington, D.C., to Philadelphia, he used the need to clean out his fridge before the move as an excuse to offer a half-empty jar of homemade kimchi for sale on Craigslist. While I don’t think the kimchi sold, Dave’s effort opened my eyes to the seemingly limitless possibilities of homemade online food sales.

The truth is that while those possibilities are limited theoretically only by imagination, they very often bump up in the real world against — to paraphrase Waylon Jennings — the limits of what the law will allow.

That truth was evident last week, when Bay Area food startup Josephine announced it will close its doors in March.

As I described in a Sacramento Bee op-ed in support of Josephine last year, the company launched nearly four years ago with a mission to provide cooks who are typically underrepresented in restaurant leadership — including women and immigrants — with a platform by which to sell home-cooked meals with their neighbors.

It’s a cool idea. And it worked quite well for a time. That is, as I noted, until local health officials “sent cease-and-desist letters to several Josephine cooks.”

Josephine responded by trying to work with lawmakers and regulators, pushing a bill in the state legislature that would provide some legal avenue for its cooks. Despite the fact that the bill is now moving through the California legislature, the company decided its passage would be too late for Josephine and its funders.

Josephine didn’t have to die. The regulations that have made it impossible for the company to operate should have died instead. But its fate mimics that of other similar home-food startups. A similar New York-based startup, Umi Kitchen, flamed out last year after just four months of operations. I wrote an appreciation of Forage Underground Market, the inventive San Francisco food swap that was shuttered by California state and local health authorities, way back in 2012. And I predicted at the time the food underground movement was just beginning to blossom.

Sriracha Sauce and the Surprisingly Heartwarming Story Behind It

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

Today I Found Out
Published on 18 Jan 2018

In this video:

The genesis of Sriracha hot sauce (pronounced sir-ah-cha, contrary to what many think) becoming the condiment staple it is today can be traced back to 1975 and an unassuming Vietnamese refuge called David Tran – the founder and current CEO of Huy Fong Foods.

Want the text version?: http://www.todayifoundout.com/index.p…

July 11, 2017

QotD: The non-profit scam

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

Oddly, another form of this non-profit scam exists in my industry. As a reminder, my company privately operates public recreation areas. Several folks have tried to set up what I call for-profit non-profits. An individual will create a non-profit, and then pay themselves some salary that is equal to or even greater than the profits they would get as an owner. They are not avoiding taxes — they still have to pay taxes on that salary just like I have to pay taxes (at the same individual tax rates) on my pass-through profits.

What they are seeking are two advantages:

  • They are hoping to avoid some expensive labor law. In most cases, these folks over-estimate how much a non-profit shell shelters them from labor law, but there are certain regulations (like the new regulations by the Obama Administration that force junior managers to be paid by the hour rather than be salaried) that do apply differently or not at all to a non-profit.
  • They are seeking to take advantage of a bias among many government employees, specifically that these government employees are skeptical of, or even despise, for-profit private enterprise. As a result, when seeking to outsource certain operations on public lands, some individual decision-makers in government will have a preference for giving the contract to a nominal non-profit. In California, there is even legislation that gives this bias a force of law, opening certain government contracting opportunities only to non-profits and not for-profits.

The latter can have hilarious results. There is one non-profit I know of that is a total dodge, but the “owner” is really good at piously talking about his organization being “cleaner” because it is a non-profit, while all the while paying himself a salary higher than my last year’s profits.

Warren Meyer, “The New Rich – Living the High Life Through Your Non-Profit”, Coyote Blog, 2015-09-29.

June 20, 2017

“Licensing … is now one of the biggest labor problems facing California”

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

In the Orange County Register, Dick Carpenter outlines how many jobs in California are now closed off to anyone who doesn’t have a license:

Whether it’s brick-and-mortar restaurants fighting to outlaw food trucks, or taxicab associations suing Uber and Lyft, examples abound for this type of anticompetitive lobbying. One of the more blatant instances comes courtesy of the California Landscape Contractors Association. In 2014, the association supported a bill that made it even easier for regulators to crack down on contractors operating without a license. Their stated reasons were revealing: “Unlicensed persons unfairly compete,” because they can “significantly undercut licensed contractors when pricing projects to consumers.” The cost of compliance is quite substantial, as it “typically adds 15 to 20 percent to the cost,” the association estimated. Not only does licensure jack up consumer prices, it also keeps out aspiring entrepreneurs who ask for nothing more than the opportunity to work hard and prove themselves by the sweat of their brow.

Licensing goes well beyond contractors and is now one of the biggest labor problems facing California. In the 1950s, about 5 percent of Americans needed a government-issued license to work. Back then, government-mandated licensing was limited to a handful of trades, such as medicine and the law. But over the years, bottleneckers — often through self-serving professional associations — successfully persuaded governments to adopt new licenses that are difficult or practically impossible to obtain. This restricts opportunities for would-be entrepreneurs trying to break into the marketplace and provide new or better services.

Today, more than one-fifth of California’s workforce is licensed. When it comes to low- and middle-income occupations, which are often a gateway for upward mobility, California is the second-most extensively and onerously licensed state, according to a study by the Institute for Justice. In fact, there are so many licensing bottlenecks that when the bipartisan Little Hoover Commission began examining the issue, it reported that “No one could give the commission a list of all the licensed occupations in California.”

These restrictions are great for the bottleneckers, but they are bad for consumers. A report by the Brookings Institution summarized many of the academic findings on occupational licensing. Licensure can boost wages for licensed workers by as much as 15 percent, while increasing the cost for consumers by anywhere from four to 33 percent. As a result, one study even estimates that pervasive licensing leads to “up to 2.85 million fewer jobs nationwide, with an annual cost to consumers of $203 billion.”

Bottleneckers typically claim the costs of licensing are necessary to protect the public, but the reality is quite different. In California, barbers, cosmetologists, tree trimmers and many construction contractors all must complete far more training for their licenses than is required for emergency medical technicians — who hold people’s lives in their hands. Manicurists need 400 hours of coursework and training for their licenses, which can costs thousands of dollars; EMTs require less than half the amount of training at only a 160 hours.

The introduction of licensing to a previously unregulated field typically benefits the existing workers in that field and severely disadvantages anyone hoping to enter that field — existing workers and businesses restrict competition by keeping out new entrants, and create an artificial shortage which allows them to boost their prices. The consumer generally does not benefit in any measurable way from the introduction of licensing, and ends up paying more for the services offered.

April 25, 2017

Cultural appropriation of “poverty culture” in the Tiny House Movement

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

Ann Althouse linked to this older article by July Westhale on “Poverty Appropriation”:

How many folks, I wonder, who have engaged in the Tiny House Movement have ever actually lived in a tiny, mobile place? Because what those who can afford homes call “living light,” poor folks call “gratitude for what we’ve got.”

And it’s not just the Tiny House Movement that incites my discontent. From dumpster diving to trailer-themed bars to haute cuisine in the form of poor-household staples, it’s become trendy for those with money to appropriate the poverty lifestyle — and it troubles me for one simple reason. Choice.

The Tiny House Movement began in the ’90s, but has only been rising in popularity since the recession. And to be fair, it’s rooted in a very real problem: more and more people being displaced as a result of soaring housing costs, especially in tech-boom areas like the Bay Area.

[…]

It’s likely, from where I sit, that this back-to-nature and boxed-up simplicity is not being marketed to people like me, who come from simplicity and heightened knowledge of poverty, but to people who have not wanted for creature comforts. For them to try on, glamorize, identify with.

Such appropriation isn’t limited to the Tiny House trend, or even to the idea of simplicity. In major cities, people who come from high-income backgrounds flock to bars and restaurants that both appropriate, and mock, low-income communities. Perhaps the most egregious example is San Francisco’s Butter Bar, a trendy outpost that prides itself on being a true-blue, trailer park-themed bar, serving up the best in “trashy” cuisine and cocktails. With tater tots, microwaved food, and deep-fried Twinkies on the menu, the bar also serves cocktails that contain cheap ingredients, such as Welch’s grape soda. The bar has an actual trailer inside, and serves cans in paper bags, so that bar flies can have a paid-for experience of being what the owners of this bar think of when they think of trailer trash.

Butter Bar in San Francisco (Credit: Facebook)

It’s but one example of an entire hipster movement — can it be called a movement when it’s a subculture rooted not in political consciousness, but in capitalism? — that has brought with it an ethos of poor-culture appropriation and the “re-invention” of things that have largely been tools of survival for poor, disabled, working class, and/or communities of color for decades.

February 3, 2017

Here are some tax cuts that would actually hurt the wealthy

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

Last week, Kevin Williamson outlined a couple of tax reforms that really would make a difference, being both more fair to all taxpayers and appealing (in theory) to both left and right:

Congressional Republicans and the Trump administration will disagree about many things, but it is rare to find a Republican of almost any description who will turn his nose up at a tax cut of almost any description. As Robert Novak put it: “God put the Republican Party on earth to cut taxes. If they don’t do that, they have no useful function.” And tax cuts are coming. But there are two proposals in circulation that would constitute significant tax increases — tax increases that would fall most heavily on upper-income Americans in high-tax progressive states such as California and New York. The first is a proposal to reduce or eliminate the mortgage-interest deduction, a tax subsidy that makes having a big mortgage on an expensive house relatively attractive to affluent households; the second is to reduce or eliminate the deduction for state income taxes, a provision that takes some of the sting out of living in a high-tax jurisdiction such as New York City (which has both state and local income taxes) or California, home to the nation’s highest state-tax burden.

Do not hold your breath waiting for the inequality warriors to congratulate Republicans for proposing these significant tax increases on the rich. Expect lamentations and the rending of garments, instead.

Slate economics editor Jordan Weissmann, who is not exactly Grover Norquist on the question of taxes, describes the mortgage-interest deduction as “an objectively horrible piece of public policy that should be reformed,” and it is difficult to disagree with him. It distorts the housing market in favor of higher prices, which is great if you are old and rich and own a house or three like Bernie Sanders but stinks if you are young and strapped and looking to buy a house. It encourages buyers to take on more debt at higher interest rates than they probably would without the deduction, and almost all of the benefits go to well-off households in the top income quintile. It is the classic example of upper-class welfare. And it has a nasty side, too: Those sky-high housing prices in California’s most desirable communities serve roughly the same function as the walls of a gated community or the tuition at Choate: keeping the riff-raff out. Pacific Heights is famous for its diversity: They have all kinds of multimillionaires there.

July 17, 2016

QotD: Regulating Napa County

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

… at each tour we typically got the whole backstory of the business. And the consistent theme that ran through all of these discussions was the simply incredible level of regulation of the wine business that goes on in Napa. I have no idea what the public justification of all these rules and laws are, but the consistent theme of them is that they all serve to make it very hard for small competitors or new entrants to do business in the county. There is a board, likely populated by the largest and most powerful entrenched wine makers, that seems to control the whole regulatory structure, making this a classic case of an industry where you have to ask permission of your competitors to compete against them. There are minimum sizes, in acres, one must have to start a new winery, and this size keeps increasing. Recently, large winemakers have started trying to substantially raise this number again to a size greater than the acreage of any possible available parcel of land, effectively ending all new entrants for good. I forget the exact numbers, but one has to have something like 40 acres of land as a minimum to build a structure on the land, and one must have over 300 acres to build a second structure. You want to buy ten acres and build a small house and winery to try your hand at winemaking? — forget it in Napa.

It took a couple of days and a bunch of questions to put this together. Time and again the guide would say that the (wealthy) owners had to look and wait for a long time to find a piece of land with a house on it. I couldn’t figure out why the hell this was a criteria — if you are paying millions for the land, why are you scared to build a house? But it turned out that they couldn’t build a house. We were at this beautiful little place called Gargiulo and they said they bought their land sight-unseen on 3 hours notice for millions of dollars because it had a house AND a separate barn on it grandfathered. Today, it was impossible to get acreage of the size they have and build two structures on it, but since they had the barn, they could add on to it (about 10x the original size of the barn) to build the winery and still have a separate house to live in.

This is why the Napa Valley, to my eye, has become a weird museum of rich people. It seems to be dominated by billionaires who create just fantastically lovely showplaces that produce a few thousand cases of wine that is sold on allocation for 100+ dollars a bottle to other rich people. It is spectacularly beautiful to visit — seriously, each tasting room and vineyard is like a post card, in large part because the owners are rich enough to care nothing about return on capital invested in their vineyards. The vineyards in Napa seem to have some sort of social signalling value which I don’t fully understand, but it is fun to visit for a few days. But in this set-piece, the last thing the folks who control the county want is for grubby little middle-class startups to mess up their carefully crafted stage, so they are effectively excluded.

I know zero about wines, but from other industries this seems to be a recipe for senescence. It would surprise me not at all to see articles get written 10 years from now about how Napa wines have fallen behind other, more innovative areas. I have never been there, but my friends say newer areas like Paso Robles has an entirely different vibe, with working owners on small plots trying to a) actually make a viable business of it and b) innovate and try new approaches.

Warren Meyer, “My Nomination for Corporate State of the Year: Napa County, California”, Coyote Blog, 2016-07-08.

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