Showing posts with label business and economics. Show all posts
Showing posts with label business and economics. Show all posts

Jul 6, 2011

the LED bulb has arrived

As Farhad Manjoo explains, a company called Switch Lighting will soon ramp up production on an LED bulb that looks as warm and inviting as an incandescent--at a fifth of the energy costs.
On average, an incandescent bulb lasts about 1,000 hours—that's about a year, if you keep it on for about three hours a day. Electricity in America also costs about 11 cents per kilowatt hour (that's the average; it varies widely by region). In other words, a 50-cent, 60-watt incandescent bulb will use about $6.60 in electricity every year. Switch's 60-watt-equivalent LED, meanwhile, uses only 13 watts of power, so it will cost only $1.43 per year. The Switch bulb also has an average lifespan of 20,000 hours--20 years. If you count the price of replacing the incandescent bulb every year, the Switch bulb will have saved you money by its fourth year. Over 20 years, you'll have spent a total of about $142 for the incandescent bulbs (for electricity and replacement bulbs) and less than $50 for Switch's 60-watt bulb.
Getting Americans to give up incandescents won't be easy, even with their 2014 phase-out. Migraine sufferers have a reason to be concerned: up until now, the least expensive viable option, compact fluorescents, were a known migraine trigger. As far as we know, though, LEDs are a safer alternative.

Now, if only they could find a way to salvage the Easy-Bake Oven.

Apr 6, 2010

breakfast sandwich piracy


"It's not that original, but it's only a buck."

I haven't decided whether Burger King's winking-but-honest approach is to be jeered or lauded. Maybe it's a form of post-ironic whiplash.

Feb 8, 2010

sanctions, trade, and private actors

Regarding the Jan/Feb economic sanctions resolution, some affirmatives argue that economic sanctions are immoral because they interfere with free trade, punishing not only citizens in sanctioned nations, but entrepreneurs and corporations in the nations levying the sanctions.

At first glance, the argument seems compelling--but how significant is the impact? In "Economic Sanctions: Public Goals and Private Compensation," found in the Fall 2003 issue of the Chicago Journal of International Law, Gary Hufbauer and Barbara Oegg analyze the economic effects of sanctions.

First, the impacts on trade are relatively small:
Over the past decade, the emergence of new senders such as the European Union and the United Nations, coupled with an expanding list of foreign policy goals, has lead [sic] to a proliferation of new sanctions initiatives. Despite these developments, the total amount of trade disrupted by sanctions remains relatively small. Our estimates indicate that US trade loss due to extensive sanctions ranged from 0.7 percent to 1.8 percent of total US merchandise trade. Lost EU trade is probably much smaller. Similarly, average annual costs of economic sanctions to the target countries seldom exceed 3 percent of GDP. Compared to the tremendous expansion of international trade and capital flows in the last decade, the costs of sanctions in terms of national income or bilateral trade flows seem minor.
However, investment impacts are considerably larger; according to Hufbauer and Oegg's calculations, sanctions affect "as much as 10 percent of world [Foreign Direct Investment]," and that this, on average, would decrease target countries' GDP by a "substantial" 6%.

If the economic impacts are mixed, what might represent another approach for the affirmative? First, consider the wording of the resolution--"... to achieve foreign policy objectives," which in most readings applies exclusively to governments. The affirmative might argue that private actors are a more appropriate agent of action--that individuals and corporations, through grassroots direct action, nonviolent revolution, and litigation, can go after rights violators and rogue regimes.

Hufbauer and Oegg note the Free Burma Coalition, which
...claims that it successfully pressured companies such as Eddie Bauer, Columbia Sportswear, Apple Computer, Motorola, Heineken, Eastman Kodak, Amoco, and Pepsi, among others, to withdraw their businesses from Burma. Some 39 major US retailers have also announced their decisions to cut off all business ties with Burma. Grassroots divestment campaigns are not solely a US phenomenon. Under pressure from the Burma Campaign UK, eight UK investment funds launched an initiative highlighting the unique problems for foreign investors in Burma including the threat of international boycotts, corruption, and the loss of shareholder confidence.
Hufbauer and Oegg also foresee a future in which private litigation, enabled by legislation such as the FSIA and the Alien Tort Statute, and by courts with growing international reach, put a much larger crimp in the economic style of state sponsors of terrorism.

I'm not sure it's worth building a whole case around, but at least it offers a potential block to Negatives arguing that no realistic peaceful alternatives exist.

Jan 10, 2010

it was the best of jobs, it was the worst of jobs

"Teacher" isn't in the top 50, but "Parole Officer" is. "Teacher" sits at 116, sandwiched between "Office Machine Repairer" and "Sewage Plant Operator." Make your own punchline.

("Philosopher" comes in at number 11, right after "Dental Hygienist," and just before "Meteorologist.")

[via Xeni Jardin]

Dec 16, 2009

alternatives to economic sanctions

Concerning the January/February LD resolution, since the affirmative is charged with claiming that economic sanctions ought not be used, if economic sanctions, then what?

War and other military tactics are, of course, available, but costly. Their advantages: they can be effective in stopping tyrants, and, at least in the modern era, they are normally aimed at military targets, whereas sanctions can be intended to harm civilians. (But see "smart sanctions" for the rebuttal to the latter point.) Their disadvantages: civilians will still suffer or perish; failure is riskier; war is much more costly; the risk of a widening conflict is greater. (I'm sure there are other arguments, too.)

How about non-economic sanctions? Robert P. O'Quinn of the Heritage Foundation details some of the options:
In contrast to economic sanctions, which are intended to penalize a target country financially, non-economic sanctions are aimed at denying legitimacy or prestige. Although the following list is not exhaustive, non-economic sanctions include:

* Canceling ministerial and summit meetings with a target country;

* Denying a target country's government officials visas to enter the sender country;

* Withdrawing a sender country's ambassador or otherwise downgrading diplomatic and military contacts with a target country;

* Blocking a target country from joining international organizations;

* Opposing a target country's bid to host highly visible international events, such as the Olympics;

* Withholding foreign aid; and

* Instructing a sender country's directors to vote against new loans to a target country at the World Bank or other international financial institutions.
Arguably, the last two have an economic impact and thus the Negative might try to claim them as economic sanctions.

The rest of O'Quinn's article is well worth a read; he defines terms important to the debate, deconstructs the oft-cited South Africa example, and points out arguments against sanctions' constitutionality. The only weakness of the article is its date: at a decade old, the arguments might be the same, but the evidence has changed, in utility, scope, and relevance.

Dec 6, 2009

calculating the true costs of economic sanctions

An extremely useful article for both sides of the economic sanctions resolution is "A Prologamena [sic] to Thinking About Economic Sanctions and Free Trade," by David Baldwin, found in the Fall 2003 edition of the Chicago Journal of International Law.

Baldwin's primary aim is to clear away the fallacies that have cluttered up the debate over sanctions. After discussing the inherently political nature of sanctions, he considers their cost.
The logic of choice applies to situations in which policymakers must choose how to allocate scarce resources among competing ends. In such situations policymakers must consider the opportunity costs of their actions. In such situations, choosing a low-cost policy alternative with a low probability of success may not be foolish at all if the likely cost-effectiveness of other policy alternatives is even less attractive. Making that choice may be the rational thing to do. For example, military force may have the highest probability of success with respect to getting a country to change its human rights policy or stop exporting arms. Military force, however, is likely to be more expensive than economic sanctions. In such a situation, it may be rational to choose the less effective and less costly alternative of economic sanctions rather than the more effective but more costly alternative of military force. Herbert Simon explains it as follows:
An administrative choice is incorrectly posed, then, when it is posed as a choice between possibility A, with low costs and small results, and possibility B, with high costs and large results. For A should be substituted a third possibility C, which would include A plus the alternative activities made possible by the cost difference between A and B.
This opens up a potential Negative strategy for cross-examination. Ask, "Is military force justifiable?" If the Aff says "Yes," then you can argue that the cost of sanctions is much less than that of war--and that the other goods that can be instantiated by not engaging militarily, Simon's "C" scenario above, far outweigh the benefits of that engagement--even if the sanctions ultimately fail. (If the Aff says "no," then press hard to determine what sorts of interventions--if any--are justified in response to state aggression or wholesale rights abuses, if sanctions are also off the table.)

And, as Baldwin argues, those who claim that sanctions fail often commit any of three fallacies in thinking. The first is that sanctions must be evaluated against a single objective: for instance, whether Castro is still in power. (As Baldwin notes, this was not one of the four original stated objectives of the sanctions.) The second is the fallacy that sanctions can't be successful in degrees--that it's an all-or-nothing measure of success or failure. Baldwin calls this the "fallacy of misplaced dichotomies." The third and final fallacy is the idea that symbolic actions are functionless. As Baldwin writes,
Symbolic behavior is not unique to economic sanctions. James N. Rosenau contends that foreign policy "involves a degree of manipulation of symbols that is unmatched in any other political situation." And Robert Jervis reminds us that "[a] desired image... can often be of greater use than a significant increment of military or economic power. An undesired image can involve costs for which almost no amount of the usual kinds of power can compensate and can be a handicap almost impossible to overcome."

Economic sanctions are sometimes viewed as so useless and counterproductive that they can be worse than "doing nothing." Even putting aside the rather tricky question of what it means for a nation state to "do nothing," this is misleading. As a practical matter, "doing nothing" means doing what one would have done if the event provoking consideration of sanctions had not occurred. In other words, it means carrying on "business as usual." And countries that carry on business as usual when confronted by aggression (Iraq's invasion of Kuwait), racism (apartheid in South Africa), nuclear proliferation (India and Pakistan), or other violations of international norms are likely to acquire an image as being indifferent to such behavior. If they take action to avoid the acquisition of such an image, they are not necessarily behaving in a frivolous or expressive manner.
Combine this with the evidence that economic sanctions are more effective as a deterrent, and the Negative has a multi-pronged justification for their use.

Dec 1, 2009

Resolved: Economic sanctions ought not be used to achieve foreign policy objectives.

The January / February NFL Lincoln-Douglas debate topic has been released:
Resolved: Economic sanctions ought not be used to achieve foreign policy objectives.
The "ought" ostensibly makes this a matter of morality, which leads to the Affirmative's main question: why might economic sanctions be immoral? There are many reasons; perhaps the most common would be because they harm innocents, concomitant with the argument that they don't actually work, or, worse, are counterproductive, increasing the power of those they're meant to weaken. (Cuba and North Korea spring to mind.)

In essence, this is at least a two-layered debate, since the Negative will likely have to argue that not only are sanctions morally good, but good for something.

A deeper question concerns the role of morality in foreign policy. Idealists will value human rights (and any binding obligations to upholding them), while realists will call for prudence. Moral cosmopolitanism might come into play, as might international law and the role / effectiveness of the United Nations in enforcing sanctions.

Links and Further Analysis
As a kick-starter, an oldie but goodie from Franklin Foer, distinguishing trade from economic sanctions, determining whether they work (the upshot: hard to say), and summing up the costs.

Iraq and the "terrible price" of sanctions.

Looking at some empirical research to answer the question, Do sanctions even work?

Can the Neg justify the use of sanctions even if they largely aren't successful? And what's the cost/benefit analysis of the alternatives? A consequentialist take on the resolution.

Added 12/13: A nascent list of value/criterion pairs.

Added 12/15: Some alternatives to economic sanctions are considered.

Added 1/3: The Negative's use of "targeted sanctions" is considered.

Added 1/3: I answer a bushel of questions about the resolution.

Added 1/10: Some strategic considerations about the definition of economic sanctions.

Added 1/24: A critical view of sanctions, slanted toward the Aff.

Added 2/8: Some economic analysis, plus an alternative approach for the Aff.

As always, more--much more!--analysis and links will follow. And, of course, your questions and comments are what really make this website worthwhile.

Nov 1, 2009

of one Accord

The wife and I have been car shopping. Because it was for "my" car, I'd estimate I had about 70% of the say in the final decision. Here's how I convinced myself--and my wife--that I should drive a Honda.

For the last six years, I've driven a Malibu, a cheap V6. Despite its numerous flaws, I've apparently gotten too used to having the extra horses in the barn when I need them, too used to the feel of a midsize sedan. Goodbye, Elantra Touring. Goodbye, Honda Civic. Goodbye, Mazda5. Six cylinders in a flying V.

In the end, I was torn between a Sonata ('09 Limited) and an Accord ('07 LX). Torn because of the crazy features available on the Sonata, but because I really liked driving the Accord--and I got a great price on a high-demand model.

The Accord won.

Why?

Responsiveness. The Hyundai's stability control, touted as a safety feature, made me feel like it wanted to go where it wanted. Steering and handling felt mushy. The Honda, on the other hand, would do whatever I wanted it to, whether that meant cornering, accelerating on a short onramp, passing uphill, or navigating a parking spot. (The salesman pumped the Accord's "grade logic," but I didn't really notice it too much--our steepest grades are hills, not mountains. But it might be nice for road trips to see the folks in Wyoming.)

Reliability. Hyundai has vastly improved in this regard, but the car in my price range, the '09, was the first of a redesign, whereas the '07 Honda was the last. Hyundai has released 14 service bulletins for the '09 Sonata, versus 5 for the Accord (in two more years). Honda also offered the Certified Used program, with a powertrain warranty out to 7/100,000, while Hyundai clipped short its normal powertrain warranty, from 7/100,000 down to 5/60,0000 on a used Sonata.

Resale value. The edge here goes to Honda, and my informal assessment of the glut of '09 Sonatas on the lot, in 4- and 6-cylinder editions, versus the hard-to-find Accords with higher MSRPs, is that this trend will continue.

It wasn't a huge factor, but styling went to the Accord. I actually prefer the '07 edition to the '08 redesign, which looks chunkier. The Sonata is clean, but bland. Trim, even in the Limited, looked and felt cheaper. (One car I initially considered, the Camry, really surprised me with its cheap plastic components. And the nose on that thing--looks like it swallowed a warthog.)

I spent about 1900 less on the '07 than the best price on the Sonata, opting for cloth over leather and fewer powered accessories. (The more knickknacks, the more potential longterm failures.) I pressed hard for the Hyundai dealer to make a better offer, but they wouldn't budge, and I have a feeling they're going to regret it in a month, when the '11s roll in and the V6 is still sitting on the lot.

If I'm wrong, no matter. I'm a happy Honda owner, and glad to put the ol' Malibu behind me for good.

Oct 27, 2009

car shopping

Today, while discussing argumentation structure and strategies with a group of rookie debaters, I used a sample claim: The Ford Focus is a reliable car. "What kind of evidence might you use to support that claim?" I asked.

"None," one shot back. "There isn't any."

"As debaters, we can always do better," I said, then gave my own (admittedly very fake) example of repair statistics. What if, for example, 86% of Ford Focuses (Foci?) are trouble-free after five years? And what if this compared favorably to the latest imports? And what's the best measure of reliability, anyway?

The discussion was cut short by the end of practice, but it continued in my mind throughout the rest of the evening, as I sat in the living room, watching college football on mute and surfing Edmunds.com and the NHSTA's recall / defect investigation database. The wife and I are about ready to replace my poor ol' Chevy Malibu, and we'd like something that's going to run for a long, long time--hopefully with fewer mishaps and brake jobs.

Some of the cars on my radar include the Honda Accord, the Ford Fusion / Mercury Milan, the Hyundai Sonata, the Hyundai Elantra Touring, and the Mazda5. (If you have strong feelings about any of 'em, feel free to share in the comments.) I've read every review and road test and recommendation, and driven all of them, so it doesn't surprise me that today, KOMO would offer the highlights of Consumer Reports' upcoming reliability ratings, and the makes and models I'm seriously considering are the makes and models that owners recommend.

I've had bad experiences with Chrysler and GM products, so I was curious to see if they've recently turned things around. Nope:
Chrysler had only one model that Consumer Reports recommended based on reliability and its staff test, and the Chrysler brand finished last out of 33 brands sold in the U.S. One third of Chrysler's models were much worse than average in reliability.

Six models from GM were recommended by the magazine, but it's still inconsistent. Only 21 of 48 models the magazine studied scored average or better in reliability.
Even fewer surprises if you compare it with CR's overall assessment published in April.

I'm finding that the surfeit of available information doesn't make our choice any easier. But at least we have five good choices. And none of them is a Malibu.

Aug 31, 2009

Burgerville even does health care right

My brother sends along a link: the Wall Street Journal explaining how Burgerville's health care coverage has improved employee retention--and the bottom line.
In absorbing more of the costs, Burgerville's annual health-care bill nearly doubled, to $4.1 million from $2.1 million. But company leaders figured the move would boost recruiting and retention.

Under Burgerville's plan, individual hourly workers can enroll in a health-maintenance organization for $15 a month, with no deductible. A worker and spouse pay $30 monthly; family plans cost $90. Salaried employees, whose plans didn't change significantly, pay $84 a month for individual and $240 monthly for family coverage, and have an annual deductible of $500.

Executives say the plan paid for itself, and more. Turnover in 2006 plunged to 54%, from 128% in 2005. That's a big deal when it costs an average of $1,700 to replace and train a restaurant worker, according to People Report.
No word on whether the HMO actively encourages its members to abstain from their own products.

Burgerville's overall approach shows how corporate social responsibility doesn't have to hurt profits. Once they enter the South Sound (or at very least send a Nomad our way), they'll be the perfect fast food company.

Jul 23, 2009

breaking: Trader Joe's responds!

From the too little, too late department:
Hi Jim,

We do not have a confirmed opening date on our neighborhood Olympia, WA Trader Joe's store. Keep checking the Trader Joe's website for the exact date.

Thank you,

[name redacted]
Customer Relations
Trader Joe's
Proof positive that Trader Joe's email system is irreparably broken: the email that took a week to come is factually inaccurate. The Olympia location opens August 21st.

Trader Joe's in Olympia opens August 21st

The Olympian has the official story. That is all.

Jul 21, 2009

an open letter to Trader Joe's

Dear Trader Joe's,

It pains to write this, but I feel spurned and neglected by your corporation. Not because it's taken you so long to come to Olympia--I, too, will celebrate your store's opening next month--but because I had to learn the good news fourthhand.

Seriously: I heard about it on Twitter from someone who posted on Facebook a conversation they'd had with an employee at another store in the region. Heard that the Olympia location will open its doors to an adoring public on August 22nd, 2009.

But I can't vouch for the accuracy of the date. Believe me, I'd love to, but heard-it-from-a-friend is trouble enough, journalistically speaking, never mind heard-it-from-a-multilayered-social-network-of-acquaintances-and-strangers.

What's my beef, specifically? Well, take a look at this sirloin. A week ago I posted on this very blog an update to the news from February that a store would be opening this year. Seeking more specific information, I dutifully filled out the email form on your website, and got the automatic repsonse saying hey, we're busy, but we check all our emails, and yours is in the queue.

A week later, nothing.

I could have mailed a letter and gotten a faster response. I could have resurrected the Pony Express and gotten a faster response. Heck, I could have built a time machine, gone back in time to snatch a Pony Express driver from the Old West, sent him galloping to your headquarters, and still gotten a faster response.

And it's not just me: my wife reports that when she tried to email a concern about a faulty product, she never heard back.

Your email system is broken, Trader Joe's.

And now, so is my heart.

Love,

Me

Jun 30, 2009

Mar 24, 2009

Discover Card is making me angry

I've been a Discover Card holder for a decade now, mostly happy with the service. All my gas purchases go on the card, for a hefty 5% rebate each month. Five percent is nice. (Spend it on a Borders gift certificate and it's 6%. Even nicer.)

Tonight I call to activate two "new" cards. The automated system takes all my info, and I reach the final choice: "Press 1 to activate another card; press 2 to finish." Can't I just hang up? Weird... But I press 2 and hold my breath.

After a couple rings, a voice. "First and last name please.... thank you... 3-digit number on the back of the card... thank you." Great. So now I'm verifying the information I already entered. Second red flag.

"Okay, Mr. Anderson. I see you've been with Discover for ten years--thank you for your business. I also see you have a large reward headed your way. Do you understand how to request it?" After ten years, I'd better, I think, but only say "Yes."

"Excellent. You're also eligible for a double Cashback bonus on all home improvement purchases in April, Mr. Anderson, and I'll send you a letter with the details." Whatever, it's your stamp. "And I'll also send you a packet of information about our Identity Theft Protection--with enrollment it's only $9.99."

Oh, no. Not again. A couple months ago I had to deal with this nonsense: Discover employee talks about the program, says they will send info, adding some ambiguous phrase about enrollment costs, only on the next month's statement, you discover--that, my friends, is a world-class pun--that you've been charged ten bucks for merely acquiescing to what you thought was just an information packet.

I cut off the rep. "No thanks--I'm not happy with the fact that you're preemptively enrolling me in something I don't want."

Though she doesn't dispute the claim, she fights back anyway. "But it's a great service that--"

"It may well be. But I've been a member for a decade and I think I'd know if I wanted that service by now."

"But a lot of people don't know about the option--"

Boy, is she persistent. So am I. "That's nice. I do. And all I wanted from this phone call was to activate my new cards."

That shuts her down, and the call ends after fifteen seconds of formal non-conversation. As I set down the receiver, I imagine her sighing and muttering about how she's just doing her job and reading some stupid script, or maybe she's being chewed out by some smarmy middle manager for failing to hook another customer, or maybe she's blithely on to the next sales pitch, just another cog in the factory churning out canned bullshit.

Discover Card folks, if you're out there, care to tell me why you're treating long-time customers this way?

Mar 23, 2009

419 for the 411

Teaching a little lesson on critical thinking and reading for information, I had students skim over a 419 scam email, without telling them its nature, and had them highlight the passages that would help them answer the question, "Is this a good deal?" We discussed what we'd highlighted, and then I told them to use a different color to mark any "red flags." (I was amazed at how many had never heard the idiom.)

Finally, the jig was up, and I told them that I'd received the spam in my email that morning, and that it was a complete and total fraud. Some of them were glad to have their suspicions confirmed, while others were totally shocked that someone could lie so blatantly in an email. In the end, the lesson worked on two levels: as a way to focus their reading, and as a way to keep them from losing big bucks to a crafty sleazeball.

If only this U.S. attorney had taken my class.

Mar 11, 2009

your lying shoulders

I've been teaching my students about the value of posture, eye contact, gestures, and other nonverbal signals. About four minutes into this hilariously tragic segment by Jon Stewart and the crack research team* at The Daily Show, Jim Cramer (he of "Mad Money") begs viewers to buy Bear Stearns. Watch his body language. Cramer's slumping shoulders and wayward irises are hallmark symptoms of a bullshitter dubious of his own bullshit.








*You've been warned.