Category: Business

Can I steal a MINI if I spend $25,000 on football cards?

I don’t have much to say on Hollywood’s economic assertions about intellectual property piracy, other than to say that I’m sure it’s overstated, it will result in destructive legislation, and it will delay the industry’s entrance into the 21st Century of electronic distribution. In other words, it’s the typical nonsense from a dinosaur. However, this quote countering Hollywood’s nonsense is bogus:

It’s important to remember, however, that even though piracy prevents money from reaching the movie industry, those dollars probably stay in the economy, one intellectual property expert said.

“In other words, let’s say people are forgoing paying for $6 billion in movies by downloading or consuming illegal goods but end up spending that $6 billion on iPods, computers and HDTV sets on which to watch the movies, which leads to $25 billion in job creation in the computer/software/consumer electronics field,” Jason Shultz, staff lawyer at the Electronic Frontier Foundation, wrote in an e-mail.

The net economic effect of piracy is irrelevant to the intellectual property discussion. It does not matter that consumers spend their $350 on an iPod instead of movies. What matters is that $350 is not going to the company that created something of value to the consumer. There are many theories on how best to protect intellectual property and guarantee payment, most of them interesting. But the basic formulation of the problem does not include a community approach to evaluating economic spending. He who takes the risk should reap the reward.

Can you tell I’m going to Blacksburg this weekend?

Looking back at an entry from the archives, I thought I’d update something I said about the Hardee’s Monster Thickburger™:

That’s the effect of consumer choice. If the people don’t like it, they’ll stop buying the burger. No amount of public bitching about corporate responsibility or heart disease or obesity, no matter how tender and earnest, is going to change a consumer’s behavior until the consumer wants to change. The progress might be slow, but it’ll happen. And that change becomes more lasting and permanent when it’s a choice, just like the lasting effect of the quality of Hardee’s food at Squires Student Center. That Hardee’s is now an A&W franchise.

That A&W franchise is now an Au Bon Pain, thanks to the painfully awful food served by that A&W, a fact to which I can unfortunately attest. Despite the obesity “crisis” we’re now facing, I stand by my original assessment that choice is sufficient and essential. People aren’t stupid and do not need the government’s help to make them better. Experience is a much more powerful motivator.

I’ll stick with blackjack

Really? People are getting worked up oer this device?:

Professional gamblers are rushing to buy £1,000 devices that they believe will enable them to win millions of pounds in casinos when the gambling industry is deregulated next year.

Hundreds of the roulette-cheating machines – which consist of a small digital time recorder, a concealed computer and a hidden earpiece – were tested at a government laboratory in 2004 after a gang suspected of using them won £1.3m at the Ritz casino in London.

After the research, which was never made public but has been seen by the Guardian, the government’s gambling watchdog admitted to industry insiders that the technology can offer punters an edge when playing roulette in a casino, and the advantage can be “considerable”.

Again, really? This is a big deal? Obviously the casinos will boot anyone they deem to be winning in excess, but wouldn’t it be easier to disrupt this scheme by not allowing betting after the dealer spins the wheel? I don’t know gambling law, especially in the U.K., but if betting after the spin is required, I’d work to change the laws if I owned a casino. Aside from banning the device, of course. Which seems to be the case in most places that allow gambling:

But rather than ban the devices, which are outlawed in many jurisdictions across the world, the Gambling Commission will require casinos to police themselves. Phill Brear, the commission’s director of operations, admits predictive softwares can work but suggested it might be possible to prosecute someone using them under a new Gambling Act offence of cheating.

Or more to the point, wouldn’t casinos just work to counter this by repairing or replacing their roulette wheels?

The government’s national weights and measures laboratory investigated the technique. It is thought the cheats first identify a “biased” wheel, where the ball appears to commonly drop in roughly the same zone. They also look for signs on the wheel of a “manageable scatter”, which means that when the ball strikes a certain number, it will usually fall into a neighbouring pocket. The unpublished report concluded: “On a wheel with a definite bias and a manageable scatter, a prediction device of this nature, when operated by a ‘skilled’ roulette player, could obtain an advantage when used in a casino.”

I wouldn’t sound the alarm for casinos going bankrupt just yet. They’ll adapt and the majority of people dropping £1,000 on one of these gadgets will find themselves more than £1,000 poorer. Such is life in a casino.

Source: Boing Boing

Another reason I’m a libertarian

I don’t shop at Wal-Mart because I loathe its overall experience. A few pennies extra is a small price for the (by comparison) more upscale presentation Target offers. Yet, I agree with George Will’s column today demonstrating how stupid the Democratic party is in its anti-economics crusade against Wal-Mart. Here’s a simple highlight:

People who buy their groceries from Wal-Mart — it has one-fifth of the nation’s grocery business — save at least 17 percent. But because unions are strong in many grocery stores trying to compete with Wal-Mart, unions are yanking on the Democratic Party’s leash, demanding laws to force Wal-Mart to pay wages and benefits higher than those that already are high enough to attract 77 times as many applicants than there were jobs at this store.

Demand creates supply, unless politicians get in the way. Demand won’t go away, as the Democrats hope. The supply disappears, or worse, becomes diluted to something that satisfies no one. In this case, Wal-Mart pays more than it should, passing those costs onto customers who don’t want to pay. The only people who get what they want are the politicians.

Yet, I have a disagreement with Mr. Will’s column:

Before they went on their bender of indignation about Wal-Mart (customers per week: 127 million), liberals had drummed McDonald’s (customers per week: 175 million) out of civilized society because it is making us fat, or something. So, what next? Which preferences of ordinary Americans will liberals, in their role as national scolds, next disapprove? Baseball, hot dogs, apple pie and Chevrolet?

It’s a small point, but painting liberals as our national scolds is nowhere near generous enough in placing blame. How liberals treat the Wal-Mart issue is telling, but only of the sense of superiority politicians of all political stripes take in telling others what to do. Mr. Will is trying to make a point, but it’s applicable to every person in political power.

Telling customers Americans they shouldn’t want what they want is a losing long-term strategy.

Employment is not daycare

At my last job, I witnessed management issuing stupid, condescending guidelines on “business casual” attire similar to this dress code offered by the U.S. Office of Special Counsel:

Last month, the agency devoted part of its employee newsletter to “Business Casual” do’s and don’ts. Tight pants, short skirts and long fingernails are out; khaki trousers — for everyone! — are in. Any among the 100-plus staff of lawyers and investigators who have spent their careers blind to the sartorial signals of official Washington were told: “You are not trying to stand out for the cutting edge look, but for your good judgment.”

Next came two pages of tips for achieving the good-judgment, non-cutting-edge look.

Men: Avoid sneakers for receptions, leave earrings at home and strap on a “conservative watch.”

Women: Wear the conservative watch, plus tailored pants, tailored shirts, tailored sweaters, and “a tailored purse . . . that hangs on your shoulder is often advantageous as it frees your hands for greetings (hand shakes) or holding a beverage.” For those who cannot master this, “leaving your purse locked in the trunk is preferable.” Also “make certain you can walk comfortably in your shoes.”

Etc, etc. Now people are either mocking the agency or feeling offended. I’m more dismayed at the message such drivel sends, and more importantly, why employees continue to put up with this.

I certainly mocked the dress code guidance issued by my former employer (sweat pants are not business casual), but that kind of treatment factored heavily into my decision to leave. Pay me to do a job, and I will do it. Like most employees, I am not stupid. I’m more than capable of figuring out how to model the dress code of my superiors. Respect me enough to assume that. If I fail to demonstrate that ability, speak to me separately about it.

Infantilize your entire workforce, and you eventually have a workforce incapable of thinking for itself. Kinda like socialism and its paternalistic form currently spilling out from legislative bodies all across America.

Baseball has no shot clock

So what?

Federal regulators said yesterday that Comcast Corp. may have discriminated against a regional sports television network by refusing to carry the network’s broadcasts of Nationals games.
…

In a 10-page opinion, the FCC said it found that MASN had made a “prima facie showing” that Comcast had discriminated against the network and had “indirectly and improperly demanded a financial interest” in the network in exchange for carrying it. The FCC also said, however, that there were factual disputes on both points that would have to be decided by a judge.

Media lawyers said the FCC’s finding shifted the burden to Comcast to prove that it has not broken any of the agency’s rules. The lawyers said it was possible that the judge could find Comcast had played by the rules and was justified in declining to carry the network.

I don’t know the specifics of the rules, but shouldn’t we first be asking whether or not the FCC should have rules governing this? Is this regulatory burden in the interest of customers, or is it in the interest of regulators? Let’s all ponder that for a long nanosecond.

Cleaning out the aggregator

My server died last Tuesday, locking me out of my site. My hosting company finally resurrected it late Wednesday, but by then my vacation interfered. Rare access to the Internets, as well as general mental decompression, stood in the way of regular posting. So I disappeared for almost a week. In no particular order, here are a few items filling my news inbox while I was away.

————-

From Reason’s Hit and Run, I think I might be the only person in America who answers Yes and No instead of some other combo.

…, New York Attorney General Eliot Spitzer fielded two questions on marijuana. One: Would he legalize medical marijuana? Two: Had he ever smoked marijuana? The answers: No and yes. The terror of Wall Street has picked up and run with the old Clintonite maxim: Do as I say, not as I did.

Spitzer should’ve been discredited as a candidate for any number of actions he’s taken, but this is just further proof that the people of New York need to see more than (D) when they get in the voting booth. I suppose it should be comforting to know that Virginia isn’t the only state with hack politicians.

————-

Is anyone shocked by this:

The federal government will need to either cut spending or raise taxes down the road to pay for extending President Bush’s recent tax cuts, the Treasury Department said in a report released [last Monday], dismissing the idea popular with many Republicans that such sacrifices can be avoided.

My question should be rhetorical, but there are many people in this town who will probably be genuinely shocked. Okay, actually, the shocked people will be voters. Those who are not shocked, but are bitter that the Treasury Department could be so treasonous as to impugn the American economy this way, will complain among themselves that their secret is revealed.

————-

Maybe I can start a network and force Comcast to air it:

After more than a year of inaction, Federal Communications Commission Chairman Kevin J. Martin yesterday addressed a dispute that has kept Washington Nationals games off the region’s biggest cable network.

The Mid-Atlantic Sports Network (MASN), which carries most of the team’s games, asked the FCC in June 2005 to order Comcast Corp. to begin carrying the games immediately, but the agency took no action.
…

MASN now has the right to seek a resolution to its complaint through the FCC process or take the path of arbitration.

Shouldn’t customers decide whether or not MASN is important to them? Of course, lack of competition due to regulatory monopolies prohibits customers from having a sufficient voice, say to cancel and switch to a cable provider that carries MASN, but I’m certain the answer is not to push the regulatory hand deeper into the industry.

————-

Tomorrow MTV turns 25. Being old enough to remember the early days of MTV, and young enough to enjoy them, the present-day celebration is good for reliving fond memories. But this explanation of why MTV evolved (devolved?) into what it is broke the spell:

“I think we started as an idea with very little content; it was more like a radio station with songs and cheesy, hair-metal videos,” says Van Toffler, president of MTV Networks’ music/film/Logo group. “But we quickly realized the novelty of music videos wore off and was not repeatable with thousands of viewings. So we evolved into being more about TV production — yet still sloppy, live and organic.”

Forget that my musical tastes are stuck more in early MTV than current MTV, which means I don’t watch most new videos. The video has not gotten old. Look at iTunes and its music video sales. There is a market, meaning the novelty didn’t die. MTV killed it with its repetition of the same tiny number of videos.

Early on this was necessary due to the newness of the form. But by the late ’80s, that didn’t hold. MTV abandoned it. Today, when I watch music television, I watch the extra music video channels like VH1 Classic. Even when I’m watching country music videos, I’ll flip to the all video channels rather than the regular channels. When original programming appears on any regular music channel, I almost always pick up the remote. I understand that I’m not MTV’s target audience, but I didn’t age out of that audience. MTV decided my viewership didn’t matter. But that makes sense, because my money is not green, it’s plastic.

I guess they haven’t over-reacted enough

I’ve witnessed the disturbing manner in which many Phillies phans have rushed to convict pitcher Brett Myers. I haven’t changed my mind about how to process his situation as a phan. His reputation is in shambles, most likely due to his own actions, but he does not deserve the rush to judgment. There will be time to condemn Mr. Myers later, should a conviction or guilty plea come. I think that’s still the reasonable view, which is why this story about his scheduled start tomorrow is bizarre to me:

Local groups dedicated to ending domestic violence have no plans to protest tomorrow’s Phillies game. Brett Myers is scheduled to make his first appearance at Citizens Bank Park since being charged with domestic assault and battery on his wife in Boston during the early morning of June 23.

“We are not planning a protest and I’m not aware of anyone who is,” Heather Keafer of Women Against Abuse said yesterday. “I think the fans have had great response in the past, and I’m hopeful they’ll continue their pressure to make sure that he’s held accountable for his actions.”

If they were planning to protest a man who is innocent until proven guilty, I’d be among those (maybe a party of one) protesting the protest. But to the point raised in this initial excerpt, that last sentence doesn’t bode well. I shouldn’t have to stop momentarily to point out that Mr. Myers’s actions are still alleged. Ms. Keafer’s call for the continued abandonment of American legal principles by the public is disturbing. Is she so unsure of the public’s acceptance that she’s on the correct side that she must encourage the mob’s mentality?

Continuing:

Keafer said the Phillies met last week with the Pennsylvania Coalition Against Domestic Violence in an effort to develop a domestic violence policy. Women Against Abuse and three other domestic violence agencies in the city are members of the Pennsylvania Coalition Against Domestic Violence.

“They’ve had one meeting so far, and part of that proposal is also to help support the Philadelphia domestic violence hotline, which is run by Women Against Abuse and three other domestic violence providers in Philadelphia,” Keafer said. “What we’re trying to do now is work with our state coalition to help the Phillies come up with a domestic violence policy and possible inclusion in their code of conduct.

It’s not a stretch to say that domestic violence is unacceptable. I doubt the Phillies disagreed before the alleged incident involving Brett Myers and his wife. Given their actions since his arrest, however belated (and over-reactionary) they may have been, it’s reasonable to assume the team understands the seriousness of this issue. They get the message, like everyone else. No surprise there. So why is this (alleged) incident by a player sufficient to encourage what appears to be nothing more than a shakedown of the Phillies?

I hope Tom Clancy is not a prophet

If Las Vegas Mayor Oscar Goodman paid any attention to national politics, he’d know that Gambling Is Bad and Americans Hate Gambling. But, until the House gets around to outlawing Las Vegas, Mayor Goodman is in charge. And Tom Clancy has him working feverishly to protect Las Vegas from its no doubt imminent economic collapse, thanks to his new “terrorists invade Las Vegas” edition of Rainbow Six:

“It could be harmful economically, and it may be something that’s not entitled to free speech (protection),” Las Vegas Mayor Oscar Goodman said of the game’s realistic scenes, which he had not personally viewed.

“It’s based on a false premise,” Goodman said, adding federal and state leaders have repeatedly assured him that Las Vegas is “the safest place imaginable” nearly five years after the Sept. 11, 2001, terror attacks on the East Coast.

“I will ask … whether or not we can stop it,” Goodman said of the game’s planned November release.

In other news Destroy All Humans has completely turned me off the idea of visiting strange towns filled with stereotypical bumpkins. I might end up dead with my brain stem extracted through mental powers. Or worse, I might end up the victim of mind control and be forced to sing and run around in circles. And I definitely fear being in a hotel when a UFO launches a sonic boom or two at the structure’s foundation, thereby causing it to collapse. Why didn’t someone acknowledge that the game’s makers don’t deserve free speech because the resulting fictitious game might scare me?

As stupid as Mayor Goodman’s comment is, I’m going to happily give (hopefully legally take from, of course) Las Vegas some of my money next month when I’m there on vacation. He’s worrying for nothing.

Source: John Dvorak

More than what you need is too much

Do I need to read beyond this drivel from yesterday’s Washington Post?

Wages are rising more than twice as fast for highly paid workers in the Washington area as they are for low-paid workers, an analysis of federal data by The Washington Post shows.

That means the spoils of the region’s economic expansion are going disproportionately to workers who are already well-paid, widening a gap between rich and poor in a place where it is already wider than in most of the country.

Businesspeople cite shifts in the world economy that give educated workers leverage to negotiate for higher wages but make low-paid workers replaceable — a disparity that is especially pronounced in a service economy like Washington’s.

Spoils. Disproportionately. Already well-paid. Capitalism sure is evil, what with the rewards that go to people who make themselves economically attractive to the marketplace. It’s not fair. There should be a law against that.

I won’t be reading beyond those opening paragraphs.