Quotulatiousness

September 10, 2023

Indigo today … Indigone tomorrow?

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

In the latest SHuSH newsletter, Ken Whyte discusses the financial woes of Canada’s quasi-monopoly book chain, Indigo after a series of misfortunes:

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

As we reported in SHuSH 197 and SHuSH 203, Indigo posted a ruinous 2023 (its fiscal year ends March 30), losing $50 million. That came on the heels of more than $270 million in losses the previous four years. The company’s share price, as high as $20 in 2018, has been floating around $1.30 this summer.

That dismal performance spelled the end of founding CEO Heather Reisman’s leadership at the chain. In June, her husband, Onex billionaire Gerry Schwartz, who has been Indigo’s controlling shareholder and chief financial backstop since the company’s launch in 1997, took the reins and elbowed Heather into the ditch along with almost every member of the board of directors who wasn’t beholden to Gerry personally.

The only non-Gerry director to survive was CEO Peter Ruis.

As I said at the time, Peter Ruis, “a career fashion retailer who landed in this jackpot from England two years ago”, is either “polishing his resume as we speak or negotiating a massive retention bonus to stick around and wield an axe on Gerry’s behalf. My money is on polishing.”

[…]

Meanwhile, I’m hearing that everyone in the publishing industry is being slammed with returns. Publishers usually get a lot of books back from retailers in the first quarter of the year as stores send back unsold inventory from the holiday season. This year, the returns were slower to start, probably because of Indigo’s cyberattack last fall, but they have kept coming right through the second and third quarters. This is coupled with lighter than usual buying for the fall.

The firm’s releases continue to claim that Indigo will keep books at its core, even as it loads its shelves with brass cutlery, dildos, and pizza ovens. According to Google, the core of an apple represents 25 percent of its weight. Books are now less than 50% of Indigone, suggesting more returns and light orders to come.

One final note. I corresponded this morning with a giant of Canadian businessman who has no special insight into the Indigo situation although he’s kept up with the news and, like everyone in Toronto commercial circles, he’s familiar with the Schwartz-Reismans.

He wonders just how involved Gerry is with Indigo these days. Apparently his health is not good. And while he’s still the lead shareholder at Onex, he’s no longer CEO and may not have access to the hordes of ultra-bright hirelings and menials that have long surrounded him.

My friend writes: “My guess is that suppliers are going to start to halt shipping and that a financial crisis is imminent, despite [Gerry’s] line of credit. But I don’t know anything.”

September 7, 2023

QotD: Techno-pessimism

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

Unfortunately, by any objective measure, most new things are bad. People are positively brimming with awful ideas. Ninety percent of startups and 70 percent of small businesses fail. Just 56 percent of patent applications are granted, and over 90 percent of those patents never make any money. Each year, 30,000 new consumer products are brought to market, and 95 percent of them fail. Those innovations that do succeed tend to be the result of an iterative process of trial-and-error involving scores of bad ideas that lead to a single good one, which finally triumphs. Even evolution itself follows this pattern: the vast majority of genetic mutations confer no advantage or are actively harmful. Skepticism towards new ideas turns out to be remarkably well-warranted.

The need for skepticism towards change is just as great when the innovation is social or political. For generations, many progressives embraced Marxism and thought its triumph inevitable. Future generations would view us as foolish for resisting it — just like Thoreau and the telegraph. But it turned out that Marxism was a terrible idea, and resisting it an excellent one. It had that in common with virtually every other utopian ideal in the history of social thought. Humans struggle to identify where precisely the arc of history is pointing.

Nicholas Phillips, “The Fallacy of Techno-Optimism”, Quillette, 2019-06-06.

August 30, 2023

The endless search for the “Easy mode” in military conflict

Filed under: History, Military, Russia, Technology, Weapons — Tags: , , , — Nicholas @ 03:00

CDR Salamander on the search for shortcuts to military excellence, despite literal millennia of evidence that there are no such shortcuts:

As the Russo-Ukrainian War reaches its 20th month, I hope everyone has been sufficiently sobered up to stand firmly against those promoting the “72-hour War” or spin an attractive story about some transformational secret sauce that provides an “easy button” for those tasked to do the very hard work of preparing a nation for war should, and if, it were to come.

See the Battle of Hostomel if you need a recent example of where buying this wishcasting can get you.

There is a reason we have continually railed against this Potomac Flotilla mindset for the better part of two decades here — it is the self-delusion of faculty lounge theories running up against the Gods of the Military Copybook Headings reality what we have thousands of years of experience to reference.

We are not smarter than previous generations. There is no secret weapon or war winning technology — or magic beans — that will allow us to skip past the hard work of a viable strategy backed up by a properly resourced industrial capacity to build, maintain, deploy, and sustain a fighting force on the other side of the Pacific for years if needed.

Not 24-hours. Not 72-hours. Think 72-weeks to 72-months and you have your mind right.

[…]

We do no one any good allowing free run towards the national security version of the prosperity gospel, a branch of the transformationalist cult, and their “name it and claim it” attitude towards solving hard problems.

From LCS to DDG-1000, to optimal manning, to six-sigma supply nightmares, to 100-hour workweeks, to 72-hour war CONOPS, to the “Deter by Punishment,” to “1,000 ship navy,” to the offset of this POM cycle, to counter-historical excuses for … again … not doing the hard work that takes so long to bear fruit that someone else will get credit for it.

Every time we have our top leaders — smart hard working professionals with the best intentions — step up to sound more like this guy — the worse we will all be.

Image result for Carpetbagger Josie Wales

It degrades them and endangers everyone.

We don’t need to sell the utility of small drones being used down to the lowest levels of responsibility — it is demonstrated every day.

What we do need sold is Congress’s need to fund a revitalization of our defense industrial capacity and a focus on the naval and aerospace forces that will do most of the fighting in any expected war west of the International Dateline.

Supported by swarms of drones of all shapes and sizes.

August 6, 2023

Chaffee Reece Model 1882: A Good Idea on Paper …

Filed under: History, Military, USA, Weapons — Tags: , , , — Nicholas @ 02:00

Forgotten Weapons
Published 29 Aug 2017

Patented in 1879 by Reuben Chaffee and General James Reece, the Chaffee-Reece rifle is an excellent example of how an idea that seems good on paper can easily become untenable in a fielded rifle. The main design premise of the rifle was to have a tubular magazine in the buttstock which held the cartridges out of contact with each other, as opposed to being pressed together by a magazine spring as in a conventional design. This would notionally prevent any possibility of recoil or other forces causing the bullet of our round to impact the primer of another and cause a detonation in the magazine.

In initial testing by the Army in 1882, the prototypes were appealing, and a field trial of 750 rifles was requested. Chaffee and Reece were unable to find a commercial manufacturer willing to take on the production (except Colt, which offered to make just 200, and at the cost of $150 etc), and they ultimately turned to the government-operated Springfield Arsenal to build the guns. A total of 753 rifles were made by Springfield in 1883 and 1884 (interestingly, not serial numbered) and delivered for testing.

That testing went quite badly. The magazine was a very complex system, using two sets of basically reciprocating racks to shuttle cartridges up the magazine as the bolt was cycled, without allowing them to contact each other. It proved very prone to jamming and breakage, and was both extremely difficult to keep clean and very susceptible to, as they would have called it at the time, “derangement”. It was handily beaten by the Winchester Hotchkiss 1885 pattern rifles (among others) in field trials, and that was the end of its potential for adoption. The rifles were eventually sold as surplus, and bought by the Bannerman company, where they remained in stock and available for purchase until at least 1907.
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July 27, 2023

Instead of a malignant conspiracy, consider the possibility it’s really a society-wide dearth of competence

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

Sarah Hoyt on a topic I’ve been pushing for years in casual conversation:

Recently, in a conversation between friends, the hypothesis was floated: what if all the burning farms, derailed trains, crop failures, etc. etc. etc. etc. ad scary nauseam aren’t really enemy action, but more a competency crisis.

As in these things happen not because big-bad is plotting against us, but because no one knows how to do the things they purportedly do anymore. Some kind of know, but they are hampered, slow, and sometimes hemmed in by counterproductive regulation or the result of previous “strokes of genius” decisions that broke the system.

I’m not going to bore anyone with what I know to be a massive crisis of competency plus inherited factors breaking ability to function in the field. I already did that at Mad Genius Club this morning, and am not unpacking the whole thing again.

But here’s the thing: All of us can live without a functioning fiction writing/selling market. Maybe not as pleasantly/happily, at least for those of us addicted to reading, but we can survive. We have old books to re-read, and if we get really desperate we can write our own fanfic.

It’s another thing when you talk of transportation or medicine, or farming, or – Well, everything else.

I have friends and fans in a lot of places. And almost everyone’s story is of being caught in the middle of a system where nobody knows or can do much of anything. It’s all the way the cogs and bureaucracy move. And the way they move is completely divorced from what needs done, or what anyone knows how to do.

To give an example: Suppose you were hired to haul buckets from a well. But when you actually get the job, you find out, no. Because of inherited systems, and what your superiors expect, you’re supposed to climb down the wall, hand over hand, and bring up water by the cupfull. And there are regulations in the works to make that by the spoonfull. However, you’ll be fully held to account if you can’t provide the amount of water the company is contracted for. You. Personally.

So, you do what you can. You fudge the books. On paper, you’re getting all this water up. Where the water goes no one knows, every one down stream (pardon the pun) from you does the same.

If this sounds like the soviet system? It is. It’s just that the directives don’t come directly and traceably from the government. (Though under the infestation of Bidentia they increasingly do.) Instead, they come from “experts” “scientists” “Studies” “marketing gurus.” And sometimes they are curtailed or made worse by agencies and regulations.

Yes, the managerial or worse “expert” class is the same that furnishes government. These are not your friends, are not meant to be your friends, and are convinced they know much more than you do.

What they know in fact is “how to manage.” But it’s not how to manage anything. They know theory of management (or whatever) derived from no reality (mostly from the writings of Marx, if you dig a little) and pushed ALL THE WAY DOWN.

It’s like — exactly like — being run by “experts” who memorized the Little Red Book. It might please those in power, but it has nothing to do with accomplishing the actual job in front of you.

Part of this has to do with colleges. Remember all those student demonstrations of the 60s? If you’re like me, and didn’t hit college till the eighties or younger, you might think these are, as the movies show, all anti-war and for civil rights, and all that jazz.

Unspoken to any of us is the fact that half of these demonstrations were to DUMB DOWN THE CURRICULUM. To demand easier grading. And social factors taken into account. And to “update” to “relevant things.”

The idea being that we were in a sort of an year zero and anything else, in the long storied glories of Western civ no longer counted, except for us to declare ourselves superior to it.

July 14, 2023

Bread rationing in the United States during WW2

Filed under: Bureaucracy, Economics, Food, Government, USA, WW2 — Tags: , , , , — Nicholas @ 03:00

I haven’t studied the numbers, but I strongly suspect that most US government food rationing during the war was effectively theatre to encourage more support of the war effort: except in a very few areas, the US was more than self-sufficient in most foodstuffs. At the Foundation for Economic Education, Lawrence W. Reed recounts one of the least effective government moves in food rationing:

According to an old joke from the socialist and frequently underfed Soviet Union, Stalin goes to a local wheat farm to see how things are going. “We have so many bags of wheat that, if piled on top of each other, they could reach God himself!” the farmer told Comrade Stalin.

“But God does not exist,” the dictator angrily replied. “Exactly!” said the farmer. “And neither does the wheat.” Nobody knows what happened to the farmer, but at least Stalin died in 1953.

Soviet socialism, with its forced collectivism and ubiquitous bread lines, gave wheat a bad name. Indeed, it was lousy at agriculture in general. As journalist Hedrick Smith (author of The Russians) and many other authorities noted at the time, small privately owned plots comprised just three percent of the land but produced anywhere from a quarter to a half of all produce. Collectivized agriculture was a joke.

America is not joke-free when it comes to wheat. We are a country in which sliced bread was both invented and banned, and a country in which growing wheat for your own consumption was ruled to be an act of “interstate commerce” that distant bureaucrats could regulate. No kidding.

On this anniversary — July 7 — of both the birth in 1880 of sliced bread’s inventor and of the day in 1928 that the first sliced bread from his machine was sold, it’s fitting to recall these long-forgotten historical facts.

The Iowa-born jeweler and inventor Otto Rohwedder turned 48 on the very day the first consumer bought the product of his new slicing machine. The bread was advertised as “the greatest forward step in the baking industry since bread was wrapped” and it quickly gave rise to the popular phrase, “the greatest thing since sliced bread.” Before 1928, American housewives cut many a finger by having to slice off every piece of bread from the loaves they baked or bought. Sliced bread was an instant sensation.

Rohwedder earned seven patents for his invention. The original is proudly displayed at the Smithsonian Institution in Washington, D.C. He likely made a lot more money from the bread slicing machine than he ever did as a jeweler. He died in 1960 at the age of 80.

Enter Claude Wickard, Secretary of Agriculture under Franklin Roosevelt from 1940 to 1945. On January 18, 1943, he banned the sale of sliced bread. Exactly why seems to be in dispute but the most likely rationale was to save wax paper and other resources for war production. He rescinded the ban two months later, explaining then that “the savings are not as much as we expected.”

I’m sure Hitler and Hirohito were relieved.

July 12, 2023

DOES YOUR FLAG FAIL? Grey Grades The State Flags!

Filed under: History, Humour, USA — Tags: , — Nicholas @ 02:00

CGP Grey
Published 2 Apr 2023
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July 3, 2023

Nuclear power

Filed under: Books, Bureaucracy, Government, History, Science, Technology — Tags: , , , , — Nicholas @ 05:00

One of the readers of Scott Alexander’s Astral Codex Ten has contributed a review of Safe Enough? A History of Nuclear Power and Accident Risk, by Thomas Wellock. This is one of perhaps a dozen or so anonymous reviews that Scott publishes every year with the readers voting for the best review and the names of the contributors withheld until after the voting is finished:

Let me put Wellock and Rasmussen aside for a moment, and try out a metaphor. The process of Probabilistic Risk Assessment is akin to asking a retailer to answer the question “What would happen if we let a flaming cat loose into your furniture store?”

If the retailer took the notion seriously, she might systematically examine each piece of furniture and engineer placement to minimize possible damage. She might search everyone entering the building for cats, and train the staff in emergency cat herding protocols. Perhaps every once in a while she would hold a drill, where a non-flaming cat was covered with ink and let loose in the store, so the furniture store staff could see what path it took, and how many minutes were required to fish it out from under the beds.

“This seems silly — I mean, what are the odds that someone would ignite a cat?”, you ask. Well, here is the story of the Brown’s Ferry Nuclear Plant fire, in March 1975, which occurred slightly more than a year after the Rasmussen Report was released, as later conveyed by the anti-nuclear group Friends of the Earth.

    Just below the plant’s control room, two electricians were trying to seal air leaks in the cable spreading room, where the electrical cables that control the two reactors are separated and routed through different tunnels to the reactor buildings. They were using strips of spongy foam rubber to seal the leaks. They were also using candles to determine whether or not the leaks had been successfully plugged — by observing how the flame was affected by escaping air.

    The electrical engineer put the candle too close to the foam rubber, and it burst into flame.

The fire, of course, began to spread out of control. Among the problems encountered during the thirty minutes between ignition and plant shutdown:

  1. The engineers spent 15 minutes trying to put the fire out themselves, rather than sound the alarm per protocol;
  2. When the engineers decided to call in the alarm, no one could remember the correct telephone number;
  3. Electricians had covered the CO2 fire suppression triggers with metal plates, blocking access; and
  4. Despite the fact that “control board indicating lights were randomly glowing brightly, dimming, and going out; numerous alarms occurring; and smoke coming from beneath panel 9-3, which is the control panel for the emergency core cooling system (ECCS)”, operators tried the equivalent of unplugging the control panel and rebooting it to see if that fixed things. For ten minutes.

This was exactly the sort of Rube Goldberg cascade predicted by Rasmussen’s team. Applied to nuclear power plants, the mathematics of Probabilistic Risk Assessment ultimately showed that “nuclear events” were much more likely to occur than previously believed. But accidents also started small, and with proper planning there were ample opportunities to interrupt the cascade. The computer model of the MIT engineers seemed, in principle, to be an excellent fit to reality.

As a reminder, there are over 20,000 parts in a utility-scale plant. The path to nuclear safety was, to the early nuclear bureaucracy, quite simple: Analyze, inspect, and model the relationship of every single one of them.

June 29, 2023

The End of Nazi Intelligence in 1944 – WW2 Documentary Special

Filed under: Germany, History, Military, WW2 — Tags: , , — Nicholas @ 04:00

World War Two
Published 27 Jun 2023

After years of undermining the Nazi regime and aiding the resistance, Abwehr Chief Wilhelm Canaris finally loses his battle with Heinrich Himmler and the SS. The Abwehr Trojan Horse is no more, and German intelligence is at death’s door at the most crucial moment.
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When “flashy” became “constantly flashing”, the user experience got significantly worse

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

Scott Alexander on the irritating advance of meaningless flashing elements on so many web pages where they serve no real purpose, but successfully generate anger in their users:

Everyone hates flashing banner ads, but maybe they’re a necessary evil. Creators want money, advertisers demand a certain level of visibility for their ad buys, maybe sites are willing to eat the cost in user goodwill. Fine. But what’s everyone else’s excuse?

A few days ago I needed to look up an obscure point of Jewish law, as you do, and found this Jewish law website:

The background toggles every few seconds between a picture of a rabbi and a picture of … a different rabbi? There’s no conceivable benefit to this and it makes it almost impossible to concentrate on the text.

I used to think I must be the only person who worried about this; maybe it was a weird OCD thing. But I asked about it on the ACX survey …

… and 88% of people find them at least a little annoying! 16% of people go all the way, and say they wouldn’t use a website that has them!

Yet websites have been adding them to more and more parts of the user experience. Most aren’t as blatant as the Jewish law site, but they’re still there.

June 25, 2023

Canada’s DeLorean – Bricklin SV-1

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

Ruairidh MacVeigh
Published 5 Sept 2020

This week, it’s back to cars, and today we look at the history of a motoring scandal that took place 10 years before DeLorean and his DMC-12, but followed nearly the same notes; a rushed design, shady business practices, an inexperienced workforce in an impoverished part of the world, etc.

The Bricklin SV-1 may have looked good on paper, but in reality it was a severely flawed design that was ahead of its time in many aspects, but highly primitive in others.
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June 14, 2023

QotD: In hindsight, calling it “Operation HONOUR” was quite ironic

Filed under: Cancon, Military, Quotations — Tags: , , , , , , — Nicholas @ 01:00

I spent my subaltern years in the light of Operation HONOUR, the signature project of then-Chief of Defence Staff General Jonathan Vance. Operation HONOUR was a massive culture change effort intended to address the findings of the Deschamps Report, which had exposed the “underlying sexualized culture in the CAF that is hostile to women and LGTBQ members, and conducive to more serious incidents of sexual harassment and assault”. General Vance went to great lengths to emphasize that Operation HONOUR was, in fact, a military operation and not a mere policy. Slicing out the tumour of sexualized culture was our mission and the General’s words were our orders. During my first ever round of quarterly performance evaluations, I reported to the company commander that one of my NCOs was non-compliant with the principles of Operation HONOUR.

Loyalty up, remember?

As a young soldier, I had actually worked for this particular NCO. He was an artifact of the Old Army and had a reputation as a hardman. He liked to brag about picking Friday night fights in Native bars out on the Prairies (he wore weighted gloves for extra knock-out power). He described to us in detail what he would do to his wife after a training weekend. He told us she would never say no, followed up with a chuckle and “like she has a choice”. If you were weak in his eyes, he’d belittle you publicly as a “queer” or a “faggot”. The funny thing was that this guy was overweight and never showed up for ruck marches or PT tests. His annual conduct-after-capture briefing was basically forty minutes of “you’re gonna get raped but that doesn’t make you gay”. One of his favourite war stories was about stray dog duty in Bosnia. He’d lure in the strays with peanut butter on the end of shotgun then blow their brains out. Riveting stuff.

Overnight I had gone from from being this man’s subordinate to being his superior, so when the General said we had a duty to report, I did my duty. The next week I was in front of the Regimental Sergeant-Major being asked why I was interfering with a strong NCO’s career prospects. That’s when I learned that loyalty up meant loyalty to the Regiment, and that sensitive matters such as this were handled internally and off the record. That one-way conversation was a major push towards putting in my application for the Regular Force. I didn’t want to be around that type of nonsense (“oh my sweet summer child” says the peanut gallery). Not long after I left, my former supervisor sexually assaulted the mess steward.

[…]

In February 2021, an investigation was opened into General Jonathan Vance, who had just finished his tenure as Chief of Defence Staff. Major Kellie Brennan, a subordinate of Vance at various times, accused him of a preventing her from disclosing their long-running affair. Since their relationship began in 2001, Vance had been married twice. DNA testing confirmed that Vance was the father of one of Brennan’s children, but he had never acknowledged or taken responsibility for the child. Vance plead guilty to obstruction of justice in March 2022 and received a conditional discharge with twelve months of probation.

The heat and light generated by an investigation of the outgoing Chief of Defence Staff led to an unprecedente level of scrutiny on the CAF’s senior leadership. In 2021 alone, the Governor General of Canada, the Minister of National Defence, the incoming Chief of Defence Staff, the Vice Chief of Defence Staff, Commander Canadian Special Operations Command, and Commander Military Personnel Command, amongst others, would resign, retire, or be re-assigned amidst allegations of impropriety. Since 2021, recruiting and retention levels have continued to free fall and the federal government has set aside $900 million in class-action lawsuit compensation for current and former CAF members who experienced sexual harassment, assualt, or discrimination. The social trap has been sprung.

“Shady Maples”, “A Question of Loyalty”, The Powder Horn, 2023-03-12.

June 11, 2023

Minimum alcohol pricing fails utterly in reducing “problem” drinking, but it’s aces for padding the state’s coffers

Filed under: Britain, Economics, Government — Tags: , , , , — Nicholas @ 03:00

Christopher Snowden counts coup on Scotland’s utterly failed “minimum pricing model” for alcohol which has cost Scots additional hundreds of millions of pounds for no discernable improvement in any measurable:

This study was published yesterday and got no attention whatsoever from the media despite it being written by a team in Sheffield who used to get blanket coverage for their every pronouncement. What changed? Well, they used to produce models showing that minimum alcohol pricing would work and now they’ve produced a study showing that their model didn’t work.

    The results above suggest the introduction of MUP in Scotland did not lead to a decline in the proportion of adult drinkers consuming alcohol at harmful levels. It also did not lead to any change in the types of alcoholic beverage consumed by this group, their drinking patterns, the extent to which they consumed alcohol while on their own or the prevalence of harmful drinking in key subgroups.

Oof! So much for the “exquisitely targeted” policy of minimum pricing being an “almost perfect alcohol policy because it targets cheap booze bought by very heavy drinkers“.

After building your entire reputation on modelling minimum pricing, it must have been painful for them to write this …

    … the lack of evidence for a decline in the prevalence of harmful drinking arising from MUP is contrary to model-based evidence that informed the introduction of the policy.

Hey-ho. I guess the model was garbage, as I said from the start. Never mind. It’s only cost drinkers in Scotland a few hundred million pounds. Will the Supreme Court be taking another look at that court case that was won off the back of an incorrect model?

    The lack of change in the prevalence of harmful drinking may arise for several reasons. First, people drinking at harmful levels may be less responsive to price changes than lighter drinkers.

You don’t say! If only someone had mentioned this earlier!

    Previous qualitative research and studies of purchasing behaviour among people with alcohol dependence (i.e. a group that comprises approximately 20% of those drinking harmfully in the United Kingdom and thus 1% of the overall population) supports this view. However, the very large price increases imposed by MUP on people drinking harmfully, their inability to switch to cheaper products and clear evidence of successful policy implementation and compliance, mean their price responsiveness would need to be extremely low to negate any impact on consumption.

But it is extremely low! I explained this over a decade ago when I took the model to task for making the plainly daft assumption that heavy drinkers are more price sensitive than moderate drinkers. I wrote:

    “The model assumes that minimum pricing will have more effect on the consumption patterns of heavy drinkers than on moderate drinkers because heavy drinkers are more price-sensitive. This is a convenient belief since it is heavy drinkers who cause and suffer the most alcohol-related harm, but can we really assume that someone with an alcohol dependency is more likely to be deterred by price rises than a more casual consumer? The SAPM model says that they are, and yet there is ample evidence to support the common sense view that heavy drinkers and alcoholics are less price-sensitive than the general population (eg. Gallet, 2007; Wagenaar, 2009). Indeed, research has shown that price elasticity for the heaviest drinkers is ‘not significantly different from zero’ — they will, in other words, purchase alcohol at almost any cost.”

You don’t need an encyclopaedic knowledge of the price elasticity literature to work this out. For most people, it falls under the umbrella of the bleeding obvious. Here we are 11 years later and the penny still hasn’t quite dropped at Sheffield, but we’re getting closer.

May 9, 2023

How to destroy an industry with one simple trick

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

Ted Gioia on the precipitous rise and calamitous decline of the clickbait journalism model:

I was going to call this story the “tragedy of American journalism”. But when you dig into the details, it’s more a farce.

Let’s start with act one of this comedy. I could almost begin anywhere, but I picked an especially ridiculous case study — just wait until you learn the reason why.

Did that catch your attention?

It was supposed to. And I learned that from a now (mostly) forgotten website called Upworthy.

Almost exactly 10 years ago, Upworthy was “the fastest growing media site of all time”, according to Fast Company. They had turned news into a science. Upworthy was the future of journalism.

Upworthy is known for its use of data to drive growth, testing up to 16 different headlines for a single story,” enthused that bright-eyed reporter for Fast Company. The end result was headlines so irresistible, millions of people clicked on them.

Here are some examples:

You get the idea. The headline is in two parts — and it’s just a come-on. You have no idea what the article is about until you click on the link.

That was the whole point. But just wait until you learn the problem with this.

Facebook and other social media sites eventually discovered that people clicked on these links, but didn’t spent much time with the Upworthy articles — and rarely gave them likes and shares.

The stories just weren’t very good — and certainly not as interesting as the headlines. So the algorithms started to punish clickbait articles of this sort.

The Upworthy empire collapsed as quickly as it had risen.

In retrospect, the problem with this gimmicky strategy is obvious. If you trick people into clicking on garbage, your metrics are impressive for a few months. But eventually people can smell the garbage without even clicking on it.

There’s also a deeper reason for this collapse — which I’ll get to in a moment. And it helps us understand the current problems with journalism. But first we need to look at a couple more case studies.

May 4, 2023

Despite all the evidence, Canada’s official motto doesn’t translate as “we broke it”

In The Line, Justin Ling adds more to the towering pile of evidence that “Canada is broken”:

If The Line has an editorial position, it is probably thus: Everything is broken.

This newsletter, of course, comes at the idea more earnestly than, say, the leader of the Conservative party. When my friend Matt Gurney advances that proposition, it is a lament. When Pierre Poilievre does: It’s wishful thinking.

While citizens of this country can’t always agree on what, exactly, is busted in our country, or why, or who is responsible — we can all agree, I hope, that things in this country could use a tune-up, at the very least. Canadians, after all, are imbued with a cloying optimism. An insufferable belief that things can be fixed. It’s a good thing.

Lucky for us, we have plenty of words written about how to fix much of what ails us. Because we, as a country, have a compulsive need to inquire about those problems. Our national pastime isn’t hockey, it’s the royal commission.

And we’ve got a government in office that loves to study the nature of the problem. There’s good work, these days, for the special rapporteurs and retired judges amongst us. And if you’re a Canadian that loves a good public consultation, you must be run ragged.

Yet we also have a government in office that has a pathological inability to take advice. And this problem may help explain why it feels like we’re sliding backwards.

[…]

When the government tapped an expert panel to study the use of solitary confinement in Canada’s prisons — literally torture — Correctional Services Canada blocked them from doing their job, and the public safety minister ignored their cries for help and then let their contracts lapse. Thanks to some scrutiny, the government renewed the study, then ignored it when the numbers showed they were still torturing people. Oops!

The National Security and Intelligence Committee of Parliamentarians — a body Trudeau created — warned in 2019 that Ottawa wasn’t taking foreign interference seriously, particularly when it came to China. “In short, government responses were piecemeal, responding to specific instances of foreign interference but leaving unaddressed the many other areas where Canadian institutions and fundamental rights and freedoms continue to be undermined by hostile states.” Prescient!

One of the most absurd examples is the sexual misconduct crisis in the Canadian Armed Forces. When Trudeau came into office in 2015, he had an external review on his desk from Marie Deschamps. One good external review deserves another, so the Liberals ordered one from Louise Arbour in 2022. What she found was harrowing: “We have been here before. Little seems to change.” Not only had the government failed to implement the Deschamps report, it was still failing to live up to the recommendations from the 1997 Somalia Inquiry. Fuck!

[…]

At the very centre of this tootsie-pop is, surprise, elitism. This Liberal government, armed with its paper-thin mandate, is convinced that they — and only they — are the verifiers of good ideas. And we should be grateful for whatever decision they deign to make.

If they farm out an idea to the public service, and the idea doesn’t come back in the form they envisioned, no matter: Send out the McKinsey signal. For just a few million dollars, their crack team of subject matter non-experts can prepare a PowerPoint presentation laying out the exact policy the political staff wanted in the first place.

The Liberals take a similar approach to consulting with the unwashed masses. When the government consulted the public on their plan to police “online harms,” they published a “what we heard” report that was broadly supportive of their plan.

Can we see the submissions? Journalists and academics asked. No. Came the reply.

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