mm166: Economic Miscellanea

MUDGE’S Musings

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Short attention span blogging: Item 1:

Three totally different, but intriguing takes on financial and economics news found over the past few days caught our interest.

The first from an interesting business blog long since added to our blogroll, The Cenek Report.

cenekreport

A Modern Parable

Tuesday, June 12, 2007 at 08:16PM
Robert Cenek

A Japanese company ( Toyota ) and an American company (General Motors) decided to have a canoe race on the Missouri River.  Both teams practiced long and hard to reach their peak performance before the race.  On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat.  A management team composed of senior management was formed to investigate and recommend appropriate action. Their conclusion:  The Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

The lesson is short, but telling, and I dare not quote more of it than I have, so please read it for yourself.

[Please click the link below for the complete article — but then please come on back!]

The Cenek Report – Journal

MUDGE wants to support the U.S. automobile industry. Instead, for many years, his family has supported U.S. automobile workers, as well as Japanese automobile workers, as he and his loved ones haven’t found a suitable Big 3 product for more than 20 years, yet we certainly haven’t stopped buying cars. Just Big 3 cars.

The ongoing arguments in the MUDGE family aren’t Ford vs. Chevy vs. Dodge, it’s Honda vs. Toyota, and throughout the MUDGE and MUDGElet families, a pretty even split between the two maintains.

Short attention span blogging: Item 2:

From Slate, the always approachable and most readable Daniel Gross writes about an increasingly pervasive trend:

slate

How Wal-Mart and the government are killing the incandescent light bulb.

By Daniel Gross
Posted Saturday, Oct. 6, 2007, at 6:53 AM ET

Light bulb. Click image to expand.Is the incandescent light bulb on its way out?

Compact fluorescent bulbs cost more than regular incandescent bulbs. But according to the U.S. Department of Energy, they last up to 10 times longer, use about one-fourth the energy, and produce 90 percent less heat. Over its life span of four and a half years, a CFL more than repays its higher cost in energy savings: $62.95 per light bulb. Oh, and they’re good for the planet, since they produce fewer emissions. But while they’ve grown in popularity, CFLs have yet to emerge as a household staple, in part because consumers can’t see beyond the shock of the sticker price to the long-term savings. “When you buy a compact fluorescent bulb at the cash register, you experience the higher cost vividly and all at once,” says Robert Frank, a Cornell economist and author of The Economic Naturalist. “But when your electric bill goes down as a result, the savings are not as evident.” Consumers routinely make such short-term economically irrational decisions.

As it aims to vanquish Thomas Edison’s filament bulb—and save the Earth—the CFL is running into the brick wall of human nature. But the CFL is getting a lift from two of the globe’s most powerful forces: image-conscious Western governments and Wal-Mart.

MUDGE remembers the days, now long past, and in the same classification of even earlier cultural artifacts as twice daily (and once on Sunday!) home postal deliveries (it’s true, but not since the ’50s in Chicago), when light bulbs were free, provided by your friendly electric company (“Little Bill”).

You went to some unlikely place (our local bank I think I remember) and traded a copy of that month’s electric bill for 10 bulbs. One only purchased bulbs, at the ma and pa hardware store or maybe an Ace or True Value store, when something unusual was necessary, like a 4-foot long fluorescent tube for a kitchen or garage.

So the first displacement occurred when everyday bulbs needed to be purchased, as the electric monopoly’s free bulb policy went the way of 29¢/gallon ethyl.

And now, the newest displacement, when instead of the familiar globular bulbs, the odd, curly CFLs, so much more  expensive, and still not providing quite white illumination, seem to be the purchase of choice when replacing lighting.

OF course, bleeding edge as always (ha!), we’ve been replacing incandescents with CFLs here in MUDGEland for many years.

We will never go vegan (don’t get me started!); we recycle but haven’t graduated to reusable grocery bags*; and sorry, the economics of hybrid cars just don’t compute for this family. But compact fluorescent lighting — we’re there (but never, ever to be purchased at Wal-Mart!).

[Please click the link below for the complete article — but then please come on back!]

How Wal-Mart and the government are killing the incandescent light bulb. – By Daniel Gross – Slate Magazine

And did you catch the WIWICWLT moment?

It takes more than one market force to change a light bulb.

Short attention span blogging: Item 3:

Finally this, from Paul Krugman of the NYTimes, unshackled from the newly abandoned pay per view policy, and whose blog has also recently joined the L-HC blogroll.

Here, he illuminates yet another instance of the distorting spin that the perfidious administration of George III has used when announcing economic statistics.

nytimes

Pathetic — Paul Krugman — The Conscience of a Liberal

The new White House “fact sheet” on the economy declares that job growth since August 2003 is the “longest continuous months of job growth on record.”

That’s literally true – the Bureau of Labor Statistics data from the great jobs boom of the 1990s do show a couple of scattered months of job decline, although these are probably statistical blips. But by any reasonable standard, job growth in the Bush years has fallen way short of growth in the Clinton years.

All the data are available at the BLS web site.

Over the whole of the Clinton administration, the economy added 22.7 million jobs – 237,000 per month.

Over the whole of the Bush administration to date, the economy added only 5.8 million jobs – 72,000 per month.

Pathetic – Paul Krugman – Op-Ed Columnist – New York Times Blog

One no longer is surprised, or even disappointed. Just incrementally more angry.

January 20, 2009

Bush’s last day

It’s it for now. Thanks,

–MUDGE

*Non-commercial Note!: the link to greensak.com used above is for the convenience of faithful reader and represents no commercial relationship whatsoever. Left-Handed Complement should be so fortunate as to ever collect remuneration of any kind for this endeavor. I can link, so I link. It’s technology. It’s cool. Deal with it.

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3 Responses to mm166: Economic Miscellanea

  1. […] Compact fluorescent bulbs, which as it happens, are an interim technology (and I don’t know why this nanocorner of the ‘Sphere© didn’t give Philips Electronics LED lighting a story of its own!), are gradually replacing every conventional light bulb casa MUDGE, and in households nationwide. What did it take? […]

  2. […] look at rising prices in China, Wal-Mart’s sweatshop of choice; Wal-Mart’s key role in the rise of the compact fluorescent bulb; and most recently, a casual backhand at Wal-Mart in the context of another (supposed) 800-lb. […]

  3. Hey there, You’ve done an incredible job. I will definitely digg it and personally recommend to my friends. I am sure they will be benefited from this site.

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