Quotulatiousness

April 24, 2020

Prizes, patents, and the Society of the Encouragement of Arts, Manufactures and Commerce

In the most recent Age of Invention newsletter, Anton Howes explains why the Society of the Encouragement of Arts, Manufactures and Commerce (now the Royal Society of Arts) wasn’t a fan of the British patent system and preferred to award prizes in areas that were unlikely to generate monopoly situations:

The back of the Royal Society of Arts building in London, 25 August 2005.
Photo by C.G.P. Grey (www.CGPGrey.com) via Wikimedia Commons.

… the Society’s early members had an aversion to monopolies, and patents are, after all, temporary monopolies. But there was actually a more practical reason to not give rewards to patented inventions. In fact, quite a few active members of the Society were themselves patentees, and patents for inventions were not generally lumped together for condemnation with practices like forestalling and engrossing. The practical reason for banning patents was that there was no point giving a prize for something that people were already doing anyway. Patents were expensive in the eighteenth century — depending on how you account for inflation, it could cost about £300,000 in modern terms to obtain one — so the fact that there was a patent for a process was a clear indication that it might be profitable. The Society, by contrast, was supposed to encourage things that would not otherwise have been done.

Thus, when a patent had already been granted for a process the Society had been considering giving a premium for, it purposefully backed down — not because the prize would infringe on the patent, but because its encouragement was no longer necessary. And so the effect of the ban on patented inventions was that the Society received, even unsolicited, exactly the kinds of inventions that there was less monetary incentive to invent. Occasionally, this meant trivial improvements — minor tweaks, here and there, to existing processes. An engineer might patent one invention, but not see it worth their time patenting another — through the Society’s prizes, they might at least get a bit of cash for it, or some recognition. The improvement would also be promoted through the Society’s publications. Or, the Society received inventions that were far from trivial, like the scandiscope for cleaning chimneys [here], but which were not all that profitable: inventions that saved lives, or had other beneficial effects on the health and wellbeing of workers and consumers. And finally, the Society received innovations that could not be patented, such as agricultural practices and the opening of new import trades. In the early nineteenth century the Society awarded its prizes to a whole host of naval officers, including an admiral, who came up with flag-based signalling systems between ships — early forms of semaphore.

Another effect of the ban on patents was that the Society also attracted submissions from different demographics. Many of its submissions came from people who were too poor to afford patents, as well as from those who were too rich — wealthy aristocrats for whom commercial considerations might seem vulgar. The poor would generally go for the cash prizes, and the aristocrats for the honorary medals. And the prizes were used by people who might otherwise be socially excluded from invention. In 1758, for example, the Society instructed its members in the American colonies to accept submissions from Native Americans. It also allowed women to claim premiums (just as it allowed them to be members). My favourite example is Ann Williams, postmistress at Gravesend, in Kent, who won twenty guineas from the Society in 1778 for her observations on the feeding and rearing of silk-worms. She kept them in one of the post-office pigeon-holes, referring to them affectionately as “my little family” of “innocent reptiles”. Unlike other elements of society, the Society of Arts accepted, as she put it to them, that “curiosity is inherent to all the daughters of Eve.”

The Society thus encouraged the kinds of inventions that might not otherwise have been created, and catered to the kinds of inventors who might not otherwise have been recognised. Rather than competing with the patent system, it complemented it, filling in the gaps that it left. The Society operated at the margins, and only at the margins, to the better completion of the whole. It found its niche, to the benefit of innovation overall.

March 3, 2020

QotD: Public service and competitive private enterprise

Anyone who deals with the general UK public (coercive) sector regularly, knows it is a cesspit of laziness, incompetence, arrogance and corruption, riddled with civil servants that are neither civil nor servants.

And I’m not suggesting that the levels of corruption and incompetence are comparable to those found in third world hellholes. A local official in your county council is very unlikely to demand a bribe and then have your daughter raped by his buddies if you decline. He’s especially unlikely to get away with it, and then douse your family in petrol and burn them alive if you complain – those are the levels of corruption found elsewhere in the world, so we need to retain some perspective here.

But those countries have not benefited from a thousand years of sacrifice to earn us a culture that has learned through bitter experience how to run a country. Our civil servants should be performing at the highest standard and be the best in the world, because what they inherited was a culture that conquered that world, and brought civilisation and progress (often at great cost) to every corner of it.

That they have fallen from these heights and now occupy such low places should be a matter for great national shame. And yet they continue to lord it over those they pretend to serve – try calling your local planning department if you want instruction in how supercilious a local functionary feels able to be when speaking to those he claims to serve. If you just want them to do their job, you better be prepared to beg.

Whereas on the flip side, we might agree that the private (voluntary) sector is largely filled with honest and hardworking people and entrepreneurs, but there are crony capitalists out there too.

Your local butcher and baker (those that have survived the regulatory avalanches under which the crony capitalists have begged their pet politicians to bury them) remain staunch servants of their customers (through regard to their own interests), whereas oligoplists (supermarkets, telcos, insurance companies, banks, energy suppliers or transport companies) deliver to us just what the monopolists of government do – an icy contempt that would soon turn to withering small arms fire if the laws allowed it.

Alex Noble, “Corruption In The Coercive And Voluntary Sectors: Rotten Apples? Or The Tips of Icebergs?”, Continental Telegraph, 2019-12-02.

March 2, 2020

Downfall of the Superpower China – Ming and Qing Dynasty l HISTORY OF CHINA

Filed under: China, Economics, History — Tags: , , , — Nicholas @ 02:00

IT’S HISTORY
Published 17 Aug 2015

With the dynasties of the Ming and the Qing came social security and flourishing international trade. The White Lotus Movement advocated progressive thinking in the time of the conservative Ming dynasty. In 1616 the Qing dynasty came to power. Also known as the Manchu dynasty, the Qing refused to open their borders to limitless trade which led to frustrated European merchants. This caused hostility and mistrust of the “barbaric Chinese”. Shortly thereafter China’s economy lost its race against European Colonialism and would lose military influence after gunpowder reached Europe. All about the fall of the former Chinese superpower in this episode on IT’S HISTORY!

» SOURCES
Videos: British Pathé (https://www.youtube.com/user/britishp…)
Pictures: mainly Picture Alliance
Content:
Twitchett, Denis and Loewe, Michael. The Cambridge History of China. Cambridge University Press.
Wilkinson, Endymion, Chinese History: A New Manual. Harvard University, Asia Center
Loewe, Michael; Shaughnessy, Edward L. The Cambridge History of Ancient China. Cambridge University Press
John M. Roberts A Short History of the World. Oxford University Press
Xu, Pingfang The Formation of Chinese Civilization: An Archaeological Perspective. Yale University Press.
Fairbank, J. K.; Goldman, M. China: A New History. Harvard University Press. ”

» ABOUT US
IT’S HISTORY is a ride through history – Join us discovering the world’s most important eras in IN TIME, BIOGRAPHIES of the GREATEST MINDS and the most important INVENTIONS.

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» CAN I SHOW YOUR VIDEOS IN CLASS?
Of course! Tell your teachers or professors about our channel and our videos. We’re happy if we can contribute with our videos.

» CREDITS
Presented by: Guy Kiddey
Script by: Guy Kiddey
Directed by: Daniel Czepelczauer
Director of Photography: Markus Kretzschmar
Music: Markus Kretzschmar
Sound Design: Bojan Novic
Editing: Markus Kretzschmar

A Mediakraft Networks original channel
Based on a concept by Florian Wittig and Daniel Czepelczauer
Executive Producers: Astrid Deinhard-Olsson, Spartacus Olsson
Head of Production: Michael Wendt
Producer: Daniel Czepelczauer
Social Media Manager: Laura Pagan and Florian Wittig

Contains material licensed from British Pathé
All rights reserved – © Mediakraft Networks GmbH, 2015

February 29, 2020

The metallic nickname of Henry VIII

Filed under: Britain, Germany, Government, History, Technology — Tags: , , , , — Nicholas @ 03:00

In the most recent Age of Invention newsletter, Anton Howes outlines the rocky investment history for German mining firms in England during the Tudor period:

Cropped image of a Hans Holbein the Younger portrait of King Henry VIII at Petworth House.
Photo by Hans Bernhard via Wikimedia Commons.

It’s an especially interesting case of England’s technological backwardness, given that copper was a material of major strategic importance: a necessary ingredient for the casting of bronze cannon. And it was useful for other industries, especially when mixed with zinc to form brass. Brass was the material of choice for accurate navigational instruments, as well as for ordinary pots and kettles. Most importantly, brass wire was needed for wool cards, used to straighten the fibres ready for spinning into thread. A cheaper and more secure supply of copper might thus potentially make England’s principal export, woollen cloth, even more competitive — if only the English could also work out how to produce brass.

The opportunity to introduce a copper industry appeared in 1560, when German bankers became involved in restoring the gold and silver content of England’s currency. The expensive wars of Henry VIII and Edward VI in the 1540s had prompted debasements of the coinage, to the short-term benefit of the crown, but to the long-term cost of both crown and country. By the end of Henry VIII’s reign, the ostensibly silver coins were actually mostly made of copper (as the coins were used, Henry’s nose on the faces of the coins wore down, revealing the base metal underneath and earning him the nickname Old Coppernose). The debased money continued to circulate for over a decade, driving the good money out of circulation. People preferred to hoard the higher-value currency, to send it abroad to pay for imports, or even to melt it down for the bullion. The weakness of the pound was an especial problem for Thomas Gresham, Queen Elizabeth’s financier, in that government loans from bankers in London and Antwerp had to be repaid in currency that was assessed for its gold and silver content, rather than its face value. Ever short of cash, the government was constantly resorting to such loans, made more expensive by the lack of bullion.

Restoring the currency — calling in the debased coins, melting them down, and then re-minting them at a higher fineness — required expertise that the English did not have. From France, the mint hired Eloy Mestrelle to strike the new coins by machine rather than by hand. (He was likely available because the French authorities suspected him of counterfeiting — the first mention of him in English records is a pardon for forgery, a habit that apparently died hard as he was eventually hanged for the offence). And to do the refining, Gresham hired German metallurgists: Johannes Loner and Daniel Ulstätt got the job, taking payment in the form of the copper they extracted from the debased coinage (along with a little of the silver). It turned out to be a dangerous assignment: some of the copper may have been mixed with arsenic, which was released in fumes during the refining process, thus poisoning the workers. They were prescribed milk, to be drunk from human skulls, for which the government even gave permission to use the traitors’ heads that were displayed on spikes on London Bridge — but to little avail, unfortunately, as some of them still died.

Loner and Ulstätt’s payment in copper appears to be no accident. They were agents of the Augsburg banking firm of Haug, Langnauer and Company, who controlled the major copper mines in Tirol. Having obtained the English government as a client, they now proposed the creation of English copper mines. They saw a chance to use England as a source of cheap copper, with which they could supply the German brass industry. It turns out that the tale of the multinational firm seeking to take advantage of a developing country for its raw materials is an extremely old one: in the 1560s, the developing country was England.

Yet the investment did not quite go according to plan. Although the Germans possessed all of the metallurgical expertise, the English insisted that the endeavour be organised on their own terms: the Company of Mines Royal. Only a third of the company’s twenty-four shares were to be held by the Germans, with the rest purchased by England’s political and mercantile elite: people like William Cecil (the Secretary of State) and the Earl of Leicester, Robert Dudley (the Queen’s crush). It was an attractive investment, protected from competition by a patent monopoly for mines of gold, silver, copper, and mercury in many of the relevant counties, as well as a life-time exemption for the investors from all taxes raised by parliament (in those days, parliament was pretty much only assembled to legitimise the raising of new taxes).

January 11, 2020

The bubbly 1720s

Filed under: Americas, Britain, Business, Economics, France, Government, History — Tags: , , , , , — Nicholas @ 03:00

In the latest Age of Invention newsletter, Anton Howes looks at Britain’s volatile financial scene in the 1720s:

William Hogarth – The South Sea Scheme, 1721. In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is “Who’l Ride”. The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else.
Scanned from The genius of William Hogarth or Hogarth’s Graphical Works via Wikimedia Commons.

Over in France, a Scottish banker named John Law had in the late 1710s overseen an ambitious scheme to reorganise the government’s finances. He ran the Mississippi Company, one of the many companies with monopolies on France’s international trade. His scheme was for the company to acquire all of the other similar monopolies, so that it could have a monopoly on all of the country’s intercontinental trade routes. By 1719, the Mississippi Company had swelled into a Company of the Indies, which in turn had purchased the right to collect French taxes, from which it took took its own cut. In exchange for acquiring these monopolies, Law’s new super-monopoly would buy up the French government’s accumulated war debts, allowing repayment on more generous terms. By allowing the state to borrow more cheaply, the scheme was to be a key plank in improving French military might.

Meanwhile, in Britain, a very similar project was afoot. Following the War of the Spanish Succession, one of the things Britain won from France was the asiento – the monopoly on supplying African slaves to Spain’s colonies in America. The asiento was given to the South Sea Company, which had the monopoly on British trade with South America, and which in 1720 began to follow a scheme similar to Law’s. Given developments in France, it would not do for the British state to be left behind in terms of its capacity to take on more debt for war. Thus, with political support, the South Sea Company began to buy up the government’s debt, persuading its creditors to exchange that debt for increasingly valuable company shares.

In 1720, both schemes came crashing down. In the case of Law’s scheme, he had printed paper currency with which people could buy his company’s shares, but in 1720 discovered he had printed too much. When he prudently tried to devalue the company’s shares to match the quantity of paper notes, the devaluation spun out of control. In the case of the South Sea Company, the causes of the crash were a little more mysterious, perhaps even verging on the mundane. One explanation is that too many wealthy investors simply tried to sell their shares so that they would have ready cash to spend on holidaying in Europe, precipitating a minor fall in the share price which then led to a more widespread panic. Regardless, it did not end well. The company itself continued for many years thereafter — it even got involved with whaling off the coast of Greenland — but the collapse of its share price ended its chance to restructure the government’s debts.

November 18, 2019

The Opium War – Lost in Compensation l HISTORY OF CHINA

Filed under: Britain, China, Economics, History, Military — Tags: , , , , — Nicholas @ 06:00

IT’S HISTORY
Published 22 Aug 2015

The Opium War started as a dispute over trading rights between China and Great Britain. Regular trade between Europe and the Chinese had been ongoing for centuries. But China’s trading restrictions frustrated the British who were eager to supply the Chinese people with the increasingly popular narcotic opium. Circumventing the government’s attempts to ban opium trade by smuggling and bribery, China declared the death sentence on Opium smuggling and refused to compensate British tradesmen for any losses. Furiously, the Brits sent out a fleet to demand compensation and end the Cohong trading monopoly. Fierce battles and attacks on the Chinese coast were followed. Find out all about the First Opium War from Indy in our new episode of Battlefields!

» SOURCES
Videos: British Pathé (https://www.youtube.com/user/britishp…)
Pictures: mainly Picture Alliance
Content:
Lovell, Julia: The Opium War: Drugs, Dreams and the Making of China
Wei, Yuan: Chinese Account of the Opium War
McPherson, Duncan: The First Opium War – The Chinese Expedition 1840-1842
Merwin, Samuel: Drugging a Nation – The Story of China and the Opium Curse
Bernard, William Dallas; Hall, Sir William Hutcheon: Narrative of the Voyages and Services of the Nemesis, from 1840 to 1843.
Isabel Hilton (The Guardian): “The Opium War by Julia Lovell – review”
Perdue, Peter C. (MIT): The First Opium War http://ocw.mit.edu/ans7870/21f/21f.02…

» ABOUT US
IT’S HISTORY is a ride through history – Join us discovering the world’s most important eras in IN TIME, BIOGRAPHIES of the GREATEST MINDS and the most important INVENTIONS.

» HOW CAN I SUPPORT YOUR CHANNEL?
You can support us by sharing our videos with your friends and spreading the word about our work.

» CAN I EMBED YOUR VIDEOS ON MY WEBSITE?
Of course, you can embed our videos on your website. We are happy if you show our channel to your friends, fellow students, classmates, professors, teachers or neighbors. Or just share our videos on Facebook, Twitter, Reddit etc. Subscribe to our channel and like our videos with a thumbs up.

» CAN I SHOW YOUR VIDEOS IN CLASS?
Of course! Tell your teachers or professors about our channel and our videos. We’re happy if we can contribute with our videos.

» CREDITS
Presented by: Guy Kiddey
Script by: Dan Hungerford
Directed by: Daniel Czepelczauer
Director of Photography: Markus Kretzschmar
Music: Markus Kretzschmar
Sound Design: Bojan Novic
Editing: Markus Kretzschmar

A Mediakraft Networks original channel
Based on a concept by Florian Wittig and Daniel Czepelczauer
Executive Producers: Astrid Deinhard-Olsson, Spartacus Olsson
Head of Production: Michael Wendt
Producer: Daniel Czepelczauer
Social Media Manager: Laura Pagan and Florian Wittig

Contains material licensed from British Pathé
All rights reserved – © Mediakraft Networks GmbH, 2015

August 16, 2019

Rule Britannia, Britannia Rules the Salt | BETWEEN 2 WARS I 1930 Part 1 of 1

Filed under: Britain, History, India — Tags: , , , , , , , — Nicholas @ 06:00

TimeGhost History
Published on 15 Aug 2019

After the Great War, the British empire is at its peak in terms of population and size. However, resistance against colonialism is starting to brew in the British colonies and dominions.

Join us on Patreon: https://www.patreon.com/TimeGhostHistory

Hosted by: Indy Neidell
Written by: Spartacus Olsson and Francis van Berkel
Directed by: Spartacus Olsson and Astrid Deinhard
Executive Producers: Bodo Rittenauer, Astrid Deinhard, Indy Neidell, Spartacus Olsson
Creative Producer: Joram Appel
Post-Production Director: Wieke Kapteijns
Research by: Francis van Berkel
Edited by: Wieke Kapteijns
Sound design: Iryna Dulka

Portrait Colorizations by Daniel Weiss.

Sources: National Portrait Gallery, Library and Archives Canada, Jenny Scott

A TimeGhost chronological documentary produced by OnLion Entertainment GmbH.

June 1, 2019

QotD: Orwell’s fear of private monopolies

Filed under: Britain, Economics, Government, Quotations — Tags: , , — Nicholas @ 01:00

Professor Hayek is also probably right in saying that in this country the intellectuals are more totalitarian-minded than the common people. But he does not see, or will not admit, that a return to “free” competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the State. The trouble with competitions is that somebody wins them. Professor Hayek denies that free capitalism necessarily leads to monopoly, but in practice that is where it has led, and since the vast majority of people would far rather have State regimentation than slumps and unemployment, the drift towards collectivism is bound to continue if popular opinion has any say in the matter.

George Orwell, “The Road to Serfdom by F.A. Hayek / The Mirror of the Past by K. Zilliacus”, Observer, 1944-04-09.

May 22, 2019

QotD: A “conservative” argument for regulating social media companies

There should be a high barrier for any company seeking to interfere with the marketplace of ideas in which the right of free correspondence is practiced.

Critics of regulating dot com monopolies have made valid points.

Regulating Google or Facebook as a public utility is dangerous. And their argument that giving government the power to control content on these platforms would backfire is sensible.

Any solution to the problem should not be based on expanding government control.

But there are two answers.

First, companies that engage in viewpoint discrimination in response to government pressure are acting as government agents. When a pattern of viewpoint discrimination manifests itself on the platform controlled by a monopoly, a civil rights investigation should examine what role government officials played in instigating the suppression of a particular point of view.

Liberals have abandoned the Public Forum Doctrine, once a popular ACLU theme, while embracing censorship. But if the Doctrine could apply to a shopping mall, it certainly applies to the internet.

In Packingham v. North Carolina, the Supreme Court’s decision found that, “A fundamental principle of the First Amendment is that all persons have access to places where they can speak and listen.”

The Packingham case dealt with government interference, but when monopolies silence conservatives on behalf of government actors, they are fulfilling the same role as an ISP that suspends a customer in response to a law.

When dot com monopolies get so big that being banned from their platforms effectively neutralizes political activity, press activity and political speech, then they’re public forums.

Second, rights are threatened by any sufficiently large organization or entity, not just government. Government has traditionally been the most powerful such organization, but the natural rights that our country was founded on are equally immune to every organization. Governments, as the Declaration of Independence asserts, exist as part of a social contract to secure these rights for its citizens.

Government secures these rights, first and foremost, against itself. (Our system effectively exists to answer the question of who watches the watchers.) But it also secures them against foreign powers, a crisis that the Declaration of Independence was written to meet, and against domestic organizations, criminal or political, whether it’s the Communist Party or ISIS, that seek to rob Americans of their rights.

A country in which freedom of speech effectively did not exist, even though it remained a technical right, would not be America. A government that allowed such a thing would have no right to exist.

Only a government whose citizens enjoy the rights of free men legally justifies is existence.

If a private company took control of all the roads and closed them to conservatives every Election Day, elections would become a mockery and the resulting government would be an illegitimate tyranny.

That’s the crisis that conservatives face with the internet.

Daniel Greenfield, “Americans Paid for the Internet, We Deserve Free Speech On It”, Sultan Knish, 2019-05-16.

May 1, 2019

To the surprise of nobody, Ontario’s cannabis stores are still struggling

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

The Ontario government created a tightly restricted retail market regime for newly legal cannabis sellers, with a tiny number of licenses issued and highly bureaucratic “safeguards” for the retailers’ guidance and control. The city of Toronto, for example, with a population in the 2.7 million range, was allocated a whopping five stores. Only one of those stores was allowed to open on the first day of legal retail sales, and today there are three in operation, despite penalties and potential loss of licenses at stake for those who haven’t opened yet. The chorus of complaints from would-be customers has not diminished much, if at all since day one:

With legalization day long come and gone (and the euphoria of being able to spark a joint in public gone with it), the turtle-paced roll-out of Toronto’s weed retail scene goes to show the government and the OCS have some work to do before purchasing legal weed can be completely glitch-free (and lineup free, too).

Here are a few of the lows of getting high, courtesy of Toronto weed stores since buying pot became legal.

Weed prices are up
According to Statistics Canada, prices for weed have steadily been on the up and up since legalization last year.

While Nova Cannabis is trying to tackle its biggest competitor (illicit weed stores) with Black Market Buster deals, people who are buying their cannabis from the OCS are now paying an average of about $9.99 per gram—that’s roughly $3 more than those buying their bud from illegal stores.

Black market weed is still thriving
There’s still around 20 illegal dispensaries operating in the city, and at least 100 illegal marijuana delivery services. Why? See above: unlicensed weed stores are significantly cheaper than the legal ones, and loopholes in the city’s laws allow them to operate pretty much undisturbed, save for the occasional raids.

[…]

OCS packaging
Aside from the fact every product coming out of the OCS comes triple-wrapped in excessive, sometimes non-recyclable polypropylene packaging, the containers are just plain confusing.

Lack of packaging standards means your order comes in all shapes and sizes, regardless of whether you’re getting bud or pre-rolled joints, which is as confusing for buyers as it is for those behind the counter.

And that doesn’t even include the even louder chorus of complaints about the quality of the legal product…

April 29, 2019

Cannabis stores struggling against cheaper black market weed outlets

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

In a rational world, a license to sell legal cannabis from a storefront where you have almost a legal monopoly would be a license to print money — the market demand is very clearly real and widespread. Yet Toronto’s legal cannabis stores are still suffering:

How much would it suck to go through all the trouble of opening a legal weed store, only to have dozens of people do the exact same thing without paying for permits, inspections or meeting any sort of government regulations?

How much would it suck to then watch these people not only get away with their illegal operations, but do so while luring your customers away with cheaper prices?

Probably as much as it would suck to sink years of your life into building a retail cannabis business and then learning that only 25 of such stores could exist in all of Ontario — and that the owners of those stores would be chosen at random.

It’s been nearly one month since Doug Ford’s PC government allowed the first wave of brick and mortar retail cannabis stores to open across Ontario. Three have launched so far in Toronto, where five licenses were issued in total, but many consumers aren’t pleased with consistently long lines and higher (than pre-legalization) prices.

So, like the rest of Canada, Toronto continues to buy black market weed.

Roughly 20 unlicensed dispensary storefronts are still up and running across the city as of April 25, in addition to more than 100 illegal marijuana delivery services.

You can find them all on WeedMaps, a popular online cannabis community that’s been listing these types of businesses for adult consumers in North America since 2008.

It’s not that police and bylaw enforcement officers can’t find these illicit dispensaries — I mean, operators are advertising their locations and menus online for all to see.

The problem is that no level of government can (or will) shut them down for very long.

“Why not?” you ask? Well, it’s complicated.

April 11, 2019

What happens if you block access to all of Google’s IP addresses?

Filed under: Business, Technology — Tags: , , — Nicholas @ 04:00

The answer is … not a lot, or at least not quickly. So many companies use Google’s services in the background that even if you can get a particular site to work for you, it’ll very likely be as slow as a mid-90’s dial-up connection. Stephen Green reports on someone’s live experiment with a Google-less internet:

Behind the scenes, [Gizmodo’s Kashmir] Hill’s specialty VPN blocked her devices from trying to ping Google’s servers more than 15,000 times — in just the first few hours. After a week, it had stopped more than 100,000 attempts to share data with Google. And to repeat, this is after Hill had stopped using any of Google’s apps or services. The company has its tendrils all throughout the internet.

As Hill describes the process in her report to Gizmodo:

    I migrate my browser bookmarks over to Firefox (made by Mozilla).

    I change the default search engine on Firefox and my iPhone from Google — a privilege for which Google reportedly pays Apple up to $9 billion per year — to privacy-respecting DuckDuckGo, a search engine that also makes money off ads but doesn’t keep track of users’ searches.

    I download Apple Maps and the Mapquest app to my phone…

    I switch to Apple’s calendar app.

    I create new email addresses on Protonmail and Riseup.net (for work and personal email, respectively) and direct people to them via autoreplies in Gmail.

Hill did literally everything an internet-connected human being can do to disconnect themselves from Google. But you don’t have to be a Google customer in order to have the company garner 100,000 little bits of data about you every single week. Or as Hill herself says, “Google, like Amazon, is woven deeply into the infrastructure of online services and other companies’ offerings, which is frustrating to all the connected devices in my house.”

The fact is, you aren’t Google’s customer: You and your data are Google’s product, served up on an electronic platter to advertisers and God-Only-Knows-Who-Else… even if, like me, you’ve boycotted all of the company’s little data-sniffing products.

As a libertarian, I have philosophical issues with the whole idea of antitrust. But when a company grows so big and so pervasive that you can’t avoid becoming its tool — even when going to the extreme lengths Hill went through — then I can draw only one conclusion, expressed in three words.

Break. Them. Up.

March 3, 2019

QotD: Four ways to corporate monopoly

1. Proprietary technology. This one is straightforward. If you invent the best technology, and then you patent it, nobody else can compete with you. Thiel provocatively says that your technology must be 10x better than anyone else’s to have a chance of working. If you’re only twice as good, you’re still competing. You may have a slight competitive advantage, but you’re still competing and your life will be nasty and brutish and so on just like every other company’s. Nobody has any memory of whether Lycos’ search engine was a little better than AltaVista’s or vice versa; everybody remembers that Google’s search engine was orders of magnitude above either. Lycos and AltaVista competed; Google took over the space and became a monopoly.

2. Network effects. Immortalized by Facebook. It doesn’t matter if someone invents a social network with more features than Facebook. Facebook will be better than their just by having all your friends on it. Network effects are hard because no business will have them when it first starts. Thiel answers that businesses should aim to be monopolies from the very beginning – they should start by monopolizing a tiny market, then moving up. Facebook started by monopolizing the pool of Harvard students. Then it scaled up to the pool of all college students. Now it’s scaled up to the whole world, and everyone suspects Zuckerberg has somebody working on ansible technology so he can monopolize the Virgo Supercluster. Similarly, Amazon started out as a bookstore, gained a near-monopoly on books, and used all of the money and infrastructure and distribution it won from that effort to feed its effort to monopolize everything else. Thiel describes how his own company PayPal identified eBay power sellers as its first market, became indispensible in that tiny pool, and spread from there.

3. Economies of scale. Also pretty straightforward, and especially obvious for software companies. Since the marginal cost of a unit of software is near-zero, your cost per unit is the cost of building the software divided by the number of customers. If you have twice as many customers as your nearest competitor, you can charge half as much money (or make twice as much profit), and so keep gathering more customers in a virtuous cycle.

4. Branding. Apple is famous enough that it can charge more for its phones than Amalgamated Cell Phones Inc, even for comparable products. Partly this is because non-experts don’t know how to compare cell phones, and might not trust Consumer Reports style evaluations; Apple’s reputation is an unfakeable sign that their products are pretty good. And partly it’s just people paying extra for the right to say “I have an iPhone, so I’m cooler than you”. Another company that wants Apple’s reputation would need years of successful advertising and immense good luck, so Apple’s brand separates it from the competition and from the economic state of nature.

Scott Alexander, “Book Review: Zero to One”, Slate Star Codex, 2019-01-31.

January 14, 2019

Lysander Spooner and the US postal system

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

Naomi Mathew recounts the battle between anarchist Lysander Spooner and the United States Post Office:

This is a story about a philosopher, entrepreneur, lawyer, economist, abolitionist, anarchist — the list goes on. As his obituary summarizes, “To destroy tyranny, root and branch, was the great object of his life.” Although he is rarely included in mainstream history, Lysander Spooner was an anarchist who didn’t merely preach about his ideas: He lived them. No example illustrates this better than Spooner’s legal battle against the US postal monopoly.

Born in 1808 in Athol, Massachusetts, Lysander Spooner was raised on his parent’s farm and later moved to Worcester to practice law. Eventually, he found himself in New York City, where business was booming — but not for the Post Office.

The Postal System of the 1840s

In Spooner’s day, government subsidized the cost of building infrastructure used for mail routes. Postage rates paid for these subsidies, which in turn made the rates expensive. For example, in 1840 it cost 18.75 cents, over a quarter of a day’s wages, to send a letter from Baltimore to New York.

Corruption was another issue facing the post office. Positions appeared to change after each election cycle, indicating political cronyism. Congress was also under pressure from the coach contractor lobby, and favorable postage routes were often given to contractors with political connections. Thanks to a legal monopoly it had enjoyed since the Confederation, the Post Office remained the sole legal mail business despite its skyrocketing costs and corruption.

In his book Uncle Sam, The Monopoly Man, William Wooldridge describes how high postal costs led some to defy postal laws: Traveling individuals doubled as temporary, private postmen. By the 1840s, these illicit services were chipping into government revenues. Eventually, a court ruled it legal for individuals (but not companies) to carry mail. As a result, underground mail enterprises sprung up. Agents covertly used the existing rails, coaches, and steamboats to transport letters. It is estimated that in 1845, a third of all letters were transported by private mail firms.

November 26, 2018

England: South Sea Bubble – Too Big to Fail – Extra History – #2

Filed under: Americas, Britain, Business, Economics, Government, History — Tags: , , , — Nicholas @ 02:00

Extra Credits
Published on 14 Mar 2015

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Frustrated at every turn by the Whig-controlled Bank of England, Harley and Blunt decide to start their own institution: a trading company that will exchange government debt for stock shares. This new South Sea Company will have a monopoly on trade in the rich new lands of South America, but all the ports there are controlled by Spain, with whom Britain is at war. So Blunt pushes the country into a premature and unfavorable peace with Spain, enlisting famous authors to write his propaganda and convincing Queen Anne herself to tip the balance of Parliament in his favor. After the queen dies and the government changes hands, Blunt kicks Harley and his Tory leaders out of the company. He manages to bring King George I himself on board as a ceremonial leader, linking the success of the South Sea Company with the reputation of the monarchy. But while his maneuvering inflates the value of his company’s stock, it’s never produced anything close to the amount of money he’s convinced people to invest in it.

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