The Daily Parker

Politics, Weather, Photography, and the Dog

Sure Happy It's Tuesday

Actually, I'm ecstatic that a cold front blew in off the lake yesterday afternoon, dropping the temperature from 30°C to 20°C in about two hours. We went from teh warmest September 27th in 34 years to...autumn. Finally, some decent sleepin' weather!

Meanwhile:

And though the article could use an editor, Whisky Advocate has a short bit on Aaron Sorkin's love of whisky in his movies.

Monday lunchtime reading

Just a couple today, but they seem interesting:

And wow, did the Chicago Bears have a bad game yesterday.

The debt limit "disagreement"

James Fallows destroys any idea you may have that "reasonable people on both sides" have a disagreement about raising the Federal debt ceiling:

In reality, as nearly everyone reporting on this issue understands, this is not a “showdown.” It is not even a “disagreement.” Those terms might apply to questions like the size of the infrastructure-spending bill, or prospective judicial nominees, or what to do about Haitian refugees.

Instead, this is a naked threat. It has exactly zero legitimacy as a “policy” for either party to espouse. I’ll explain why in a moment—in the course of arguing that reporting that fails to convey the fraudulence of the issue, is diminishing rather than increasing our awareness of the truth.

  • The annual U.S. government deficit, and the cumulative U.S. debt, are the results of decisions Congress and an Administration make, not independent variables.Congress votes to authorize spending, and to raise or reduce taxes. The debt and deficit reflect these decisions, rather than controlling them, or being subject to outside dictates about their size.The check you get at the end of a restaurant meal reflects what you have ordered and eaten. The number you see on a bathroom scale reflects calories in, versus energy out. The reading on a thermometer reflects outside heat.In just the same way, the annual deficit-and-debt totals indicate what Congress has already decided on. They’re a measure, not a control. Putting limits on them is like limiting what the bathroom scale can show.
  • [S]tarting in the 1990s, then-Speaker of the House Newt Gingrich began “weaponizing” the debt limit as a political tool. He recognized that there was no “rational” reason to refuse to raise the limit, for spending Congress had already approved. But the threat of doing so would be a serious problem for whatever president was in power—because in practice it would mean that for some time the Treasury would have to stop issuing bonds and notes, which are the backbone of international finance.
  • Final point: Why is a refusal to raise the debt limit a problem? It is not because anyone thinks the U.S. will ultimately default on its Treasury bonds, bills, and notes. It is because, as a technical matter, the Treasury would have to suspend issuing these financial instruments—which are a backbone of international finance.

In short, no one can make a rational policy argument about failing to raise the debt limit. And yet, here we are, with one party trying to govern and the other trying not to.

And the band played on...

A pot of pot money

After years of legal marijuana sales at the state level, the House of Representatives has finally proposed a solution to the problem of what to do with the money:

The U.S. House of Representatives will vote this week on a bill that would let banks do business with cannabis companies without fear of penalty. 

The so-called SAFE Banking Act, which is the least disputed reform sought by the growing industry, got picked up as part of broader legislation, and its inclusion in the National Defense Authorization Act was approved by voice vote late Tuesday. It remains to be seen whether the bill will pass the Senate, but the House action gives it a better shot.

The act would be a boon for marijuana companies, which have so far been stymied by the need to deal in cash because of federal restrictions. That has meant they have extra security costs and logistical problems, even as marijuana increasingly becomes legal. Some three dozen states now allow medical or recreational use, according to New Frontier Data, a cannabis research firm. 

For the first time, it looks like the rule change will pass. This means, among other things, consumers will finally be able to pay for their pot with credit cards.

Fun times with non-profit contracts

Local restaurant review show "Check Please," which was to begin its 20th season on the local public-television station WTTW, will instead end its run after the station proposed contract terms that the producers couldn't accept:

I'd like to say our upcoming 20th milestone season will be our best one ever!  However, WTTW/11 and I want to go in different directions and pursue other opportunities, so it's just not to be.

Crain's has more:

The show's last contract ended in the spring of 2020, just as the pandemic forced restaurants to close. Manilow said they started new discussions about a month ago and in the last week, WTTW presented him with a new contract and he said it was so different, it didn't make sense for him to continue the relationship.

"We talked about some different ideas they had. They were so drastically different that I'm not going to get into the details," Manilow said. "There wasn't much room for negotiation. We tried but it didn't work out. If they had done what we've done the last 19 years, we'd be in production now. That's just a fact and that's their prerogative. From a fundamental standpoint, every other renewal was kind of pro forma and they'd renew."

My guess, informed by years of dealing with non-profit arts organizations, is that WTTW misunderstood how pricing and microeconomics work.

Arts organizations have a tough time making money, because (let's face it) most people don't value them highly. So there's a large supply of arts organizations and small demand. If you graph supply and demand, where they meet is the equilibrium price (where curve D1 and S meet):

If you charge more than P1, you will sell less, and probably make less money. In order to sell more (move from Q1 to Q2), demand has to move first (D1 to D2).

Unfortunately, many arts organizations try to balance their budgets by increasing prices, believing demand to be constant. Someone whips out Excel and plugs in some numbers, and voilà! Instant revenue!

But that doesn't work, and it's easy to see why.

We sell tickets to Händel's Messiah for $35 to $70, depending on the section. We have a good idea how many we sell every year in each section, so we have some confidence in our budgeting. But imagine we found out that, say, a deadly disease would require us to have an empty seat between each person in the audience, meaning we could only sell half the number of seats.

So we plug everything into Excel and figure that we can sell half as many seats for twice as much money. Cool!

Except no one wants to pay $140 for a seat at our performance. They might pay $75, but at that price would many other people would shift from the orchestra level to the balcony, so we'd wind up with even less money.

I imagine that WTTW looked at their budget and figured that they needed to pay "Check, Please!" a lot less in order to keep their books in balance. And the producers of "Check, Please!" said no, we're not adjusting our prices to help you balance your books; we can take our product elsewhere.

We'll see. It's sad when this sort of thing happens, and I wish more arts organizations would recognize that they need people with business skills in management. I expect "Check, Please!" will do just fine online.

Lunchtime roundup

Stories from the usual suspects:

Finally, Whisky Advocate calls out a few lesser-known distilleries in Scotland worth visiting—or at least sampling.

Consumers really have gotten worse to service workers

Amanda Mull examines why.

Because consumer identities are constructed by external forces, [historian Susan Strasser, the author of Satisfaction Guaranteed: The Making of the American Mass Market] said, they are uniquely vulnerable, and the people who hold them are uniquely insecure. If your self-perception is predicated on how you spend your money, then you have to keep spending it, especially if your overall class status has become precarious, as it has for millions of middle-class people in the past few decades. At some point, one of those transactions will be acutely unsatisfying. Those instances, instead of being minor and routine inconveniences, destabilize something inside people, Strasser told me. Although Americans at pretty much every income level have now been socialized into this behavior by the pervasiveness of consumer life, its breakdown can be a reminder of the psychological trap of middle-classness, the one that service-worker deference to consumers allows people to forget temporarily: You know, deep down, that you’re not as rich or as powerful as you’ve been made to feel by the people who want something from you. Your station in life is much more similar to that of the cashier or the receptionist than to the person who signs their paychecks.

There are endless ways to make sense of the situation America is in now, in which new horror stories from retail hell make national news every few days, and stores and restaurants all over the country complain that no one wants to work for them. Perhaps the most obvious one is simply how damaging this whole arrangement is for service workers. Although underpaid, poorly treated service workers certainly exist around the world, American expectations on their behavior are particularly extreme and widespread, according to Nancy Wong, a consumer psychologist and the chair of the consumer-science department at the University of Wisconsin. “Business is at fault here,” Wong told me. “This whole industry has profited from exploitation of a class of workers that clearly should not be sustainable.”

When I was a kid, I read Robert Heinlein's novel Friday, which contained this observation: “Sick cultures show a complex of symptoms such as you have named...but a dying culture invariably exhibits personal rudeness. Bad manners. Lack of consideration for others in minor matters. A loss of politeness, of gentle manners, is more significant than is a riot.”

Relaxing weekend

Cassie and I headed up to Tyranena Brewing in Lake Mills, Wis., yesterday to hang out with family. Today, other than a trip to the grocery and adjacent pet store where Cassie picked out an "indestructible" toy that now lies in tatters on the couch, we've had a pretty relaxing Sunday. I thought I'd take a break from Hard Times to queue up some stuff to read tomorrow at lunch:

I will now return to Dickens, because it's funny and sad.

Wednesday afternoon

I spent the morning unsuccessfully trying to get a .NET 5 Blazor WebAssembly app to behave with an Azure App Registration, and part of the afternoon doing a friend's taxes. Yes, I preferred doing the taxes, because I got my friend a pile of good news without having to read sixty contradictory pages of documentation.

I also became aware of the following:

Tomorrow morning, I promise to make my WebAssembly app talk to our Azure Active Directory. Right now, I think someone needs a walk.

Wednesday evening roundup

Happy Wednesday! Here's what I'm reading before my 8pm meeting, now that my 6:30pm meeting just ended:

And finally, the New Yorker's Tom Papa introduces you to "asshole cat behaviors."