Bouncehouse Done Wrong (Know Your Market!)

Bounce HouseI’m pissed.

I just had to explain to my three-year-old girl that she had to leave the bounce house because “that man says her time was up”, putting her in tears. My five-year-old was more compliant with the instruction.

“That man” was the operator / staffer who also, moments ago, offered to let me pony up another 3 tickets (at $1 / ticket) for another 3 minutes in the bouncehouse. (3 tickets is the gate-fee for using the bounce house)

If you don’t understand why this is a problem, it is likely that you have never taken a young child to a bounce house, which I suspect is most likely the case for the teen-aged operator. The festival, as a whole, was organized by a large group of other youth in his age-group, and for the most part, was done well. But the bouncehouse was clearly not planned by someone who had done proper market research into what their consumers (children ages 2-7, typically, and the parents who bring them) are expecting.

Let me explain: Continue reading

The MPC (Marginal Propensity for Consumption) and Economic Stimulus

The other day, I saw a recent video in Khan Academy’s Microeconomics series entitled “MPC and Multiplier” which is about the Marginal Propensity for Consumption (at its most basic level: if you received a windfall of $100 how much would of it would you spend). It’s only a few minutes, and I would suggest watching it before reading the rest of the post:

Ok, with that out of the way, I have a few ideas that I would like to put out there. IANAE (I am not an economist) and I welcome any critique of these ideas, but they seem pretty sensible.

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Perfectly Legal [Book Review]

David Cay Johnston has the ability to write books that are like watching a train wreck in slow motion; except the train wreck involves everyone you’ve ever known, so you keep watching out of a combination of morbid interest and the faint hope that maybe things will come out okay.

I have previously reviewed another of his books, Free Lunch, and expressed similar sentiments.

Make no mistake, he is a very skilled writer, weaves a very tight narrative, and the subject matter is of utmost importance, particularly in today’s charged dialogue concerning taxes, classism, and corporate personhood.

The books central drive is this:

  1. Most of us are not rich: There is an aggravated disparity in the distribution of wealth in this country, particularly in the top 1/10th of the top 1% (the top 0.001th overall), and this disparity has grown over the past 30 years.
  2. The rich know how to cheat at our expense: The wealthiest individuals in this country (which Johnston refers to as the “political donor class”) are have the time and financial resources to find and exploit various loopholes and legal-fu to further expand (or protect) their wealth, often at the expense of the the common taxpayers (since the money for governmental programs has to come from somewhere)
  3. This cheating is subsisted by you and I: While some of the wealthy do pay some of their taxes, and that sum is a significant amount of the total taxes paid (though not a proportional amount, given how much wealth they wield), the difference between what they should pay and what they do pay is comes from either the tax dollars of the average taxpayer or from additional debt — either way, we foot the bill.
  4. The rich can sustain and protect their cheating: The “political donor class” also uses their influence and wealth to sway legislation and judgements in favor of their existing exploitations, or to generate new exploits.

It makes me hopeful to see the Occupy Wallstreet protests, which are essentially all about these issues, happening as I am reading this book. It always catches me by surprise when I encounter someone who doesn’t understand how much wealth disparity there is, or who thinks that a six figure salary is “rich.”

I highly recommend this book for everyone to read, especially right now. “Nickel & Dimed“, and “Free Lunch” are both also good reads that are appropriate for the present as well.

There is so much injustice, so much complexity, that I would have to recap the entire book to cover it all, but for the sake of illustration, here are some examples of the premises mentioned above. Continue reading

Climbing Wall Street

The train was moving at a brisk pace; the New York countryside whizzing by as we made our way down the eastern side of the upstate portion. I sat in a seat row by myself, phone plugged in to the convenience outlet, alternating between reading pages from the latest book in progress (“The Trap“) and chatting on my phone. With a 2.5 hour ride from Albany to Manhattan, I was pretty sure that my phone would be fully charged by the time I got there, but I was somewhat anxious it wouldn’t be, since there was a good possibility I might not have access to a power outlet for over a day.

Earlier that day, my friend Jon and I drove from his brother’s house in Latham, NY (a suburb of Albany) to Buck Mountain, a hiking trail near Lake George in the Adirondack mountains. We had been planning a hiking outing for a couple months, and his brother knew of a good trail that we could do. The plan was to do the trail in the morning, finish by the afternoon and then I would take a train down to Manhattan and go to the Occupy Wallstreet protests in Zuccotti park (1 Liberty Plaza, downtown). Continue reading

Bait and Switch [Book Review]

Bait & Switch, is a natural successor to Ehrenreich’s earlier book: Nickel & Dimed (reviewed on this blog in part 1 and part 2). As an author I find her to be both honest and thorough in her research, and her topic area in both this book and its precursor have been particularly relevant to me. When I saw the book sitting on the shelves of Autumn Leaves, it was a must-grab.

The title eponymously refers to a con-artist tactic wherein the victim is led into the con with the promises of something alluring, only to find out that their hopes were deliberately misguided by the con-artist, who has replaced their desired object with something inferior that would not have drawn in the victim otherwise.

In this case, Ehrenreich explains, the “bait” is the prosperity of the American dream: pay your dues to society, study hard, forgo youthful indiscretions (or be quick to learn from them) and ye shall find your way to success and prosperity. The “switch” is the cold reality that white-collar middle-classed jobs have been commoditized to the point where “human resources” may as well mean “human chattel”. Gone are the days of 1950s-era pensions, single-company devotion, and long-term employment followed by autumn-year retirement.

In Nickel & Dimed, Ehrenreich explores the class of people (blue-collar workers) that are often marginalized because it is believed that they are in their predicament due to bad choices: impulsivity, laziness, irresponsibility. As a society, we have sold ourselves into the “work hard and you’ll be successful” idea as if it was a pure function: that the only thing holding you back from success is that you aren’t working hard enough. But in Bait & Switch, we see a class of people that did everything right: well-educated, hard-working people that rose through the ranks and suddenly had their career balloon popped through downsizing, streamlining, or whatever the current buzz word is for lay-offs.

Ehrenreich, adopting her maiden name Alexander, goes undercover as a middle-aged job-seeker wishing to join into the corporate world after freelancing for several years. Her ultimate goal is to secure a middle-class income ($50k-100k) at a private sector, regardless of who the employer is. At the risk of spoiling, she summarizes her journey best:

So, after almost seven months of job searching, an image makeover, an expensively refined and later upgraded resume, and networking in four cities, I have gotten exactly two offers: from AFLAC and Mary Kay. But these are not jobs, not in the way I defined a job when I started this project, in that no salary, benefits, or workplace is provided. … No one, apparently, is willing to take a risk on me. Is the fear that, if given health insurance for even a month, I will go on an orgy of body scans and elective surgery? The most any corporation seems willing to give me is the right to wear its logo on my chest and go about pushing its products. (p. 189)

But it would be completely unfair to say she was unsuccessful in her research; her journey of job exploration shines a high-powered spotlight on the trials and tribulations of the 8 million unemployed workers in America.

Discussion after the jump.

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Nickel & Dimed (part 2 of 2) [Book Reviews]

This is a continuation of my book review of Barbara Ehrenreich’s Nickel & Dimed. Part 1 posted yesterday.

Housing costs post the greatest obstacle for low-wage workers. Why does our society seem to resist rectifying this situation? Do you believe that there are realistic solutions to the lack of affordable housing?

In Nickel & Dimed, Ehrenreich’s first job (near Key West, Florida) as a food server does not pay enough for her to even get a modest apartment. She eventually upgrades to a better paying food service job, and is able to rent a half-size trailer so narrow you can touch both walls while standing in the middle, but only after having a $600 deposit. Most of the people she worked with, living paycheck to paycheck in a hotel room somewhere, do not have even that much starting capital, even though it would ultimately be cheaper in the long run for them to live in an apartment or trailer. Continue reading