The law of demand is one of the most widely understood laws of economics: if you raise the price of something, fewer people will buy it; if conversely, if you reduce its price, more people will buy it.
The law generally holds true as long as the goods in question don’t have any special properties or constraints. However, there are a number of known exceptions, for example:
- Veblen goods – expensive goods which are desirable for the status they confer on anyone rich enough to buy them. Contrary to the law of demand, demand for a Veblen good will rise as its price increases.
- Giffen goods – a cheap but essential good which counter-intuitively increases in demand as its price rises. This is because, if a staple food (e.g. bread) rises in price, the poorest consumers have to stop buying more expensive foods (e.g. meat), and spend the savings on more of the cheapest good.
I hypothesise the existence of another type of good which behaves as an exception to the law of demand: a meal deal good.
US liberals and leftists who won’t vote for Clinton, even though that decision will help Trump, who is even worse, are an interesting case study. It reveals a deep difference, not between liberals and conservatives, but between “principlists” and “consequentialists”.
Consequentialists do what they have to do to get the best available outcome, even if the means – and the end – fall short of their ideal.
Principlists feel an inherent wrongness in doing anything against principle, even if the result is an outcome even further from their ideal.
They’re two totally opposed mindsets – ways of thinking about how to choose action – with little scope for persuasion between them.
In 1999, American foreign policy academic Walter Russell Mead wrote an influential essay, The Jacksonian Tradition. In it, he identified a strand of US political thought associated with its conservative and anti-intellectual middle and working classes.
The article was highly prescient in anticipating the appeal of George W Bush as president. Now, as the US teeters on the brink of electing an unimaginably worse candidate, it’s worth reading again. Mead’s analysis turns out to be just as perceptive an insight into Donald Trump’s supporters and their political attitudes.
It is not fashionable today to think of the American nation as a folk community bound together by deep cultural and ethnic ties.
However, the seventh President, Andrew Jackson, built his political career on identifying and mobilising that community – white, Anglo-Saxon/Celtic, working and middle class – which Mead terms the “Jacksonians”.
His political movement—or, more accurately, the community of political feeling that he wielded into an instrument of power—remains in many ways the most important in American politics.
Jacksonian America has produced—and looks set to continue to produce—one political leader and movement after another.
The future of Jacksonian political allegiance will be one of the keys to the politics of the twenty-first century.
I propose the following definition:
Temper-trapped past participle verb tricked into a buying a music album on the strength of one song, to discover that it’s the only decent one on the whole album.
It’s derived from the band The Temper Trap: I bought their debut album Conditions after hearing the song Sweet Disposition, but was disappointed to find that the rest of the album is utterly mediocre and forgettable.
I’ve recently been temper-trapped again by John Grant. His song Down Here, an infectious indie pop ballad, was stuck in my head for weeks, so I bought the album, Grey Tickles, Black Pressure, which turned out to be weird electro nonsense: not even the same style of music as the one song I’d enjoyed.
What albums have you been temper-trapped by?
I finally completed Manufactoria.
Manufactoria is an online puzzle game, which is deceptively simple and surprisingly deep. Your task is to build a factory machine from simple components which takes an object, inspects it and moves it around the factory floor accordingly. In later stages, you get to modify the object as well.
At first you think you’re just moving objects around and printing patterns of coloured dots on them, but later, when you’re thinking of blue dots as 1s and red dots as 0s, and the patterns as binary numbers, you realise that the system is Turing complete and the game’s progressively harder puzzles are teaching you how to build a binary adding machine. It’s a beautiful, powerful way to demonstrate the principles behind mechanical/electronic computation.
While some games, like Angry Birds and Candy Crush, are meant to numb your brain with repetitive tasks, the best ones expand your brain with new skills and knowledge: Manufactoria is in the latter class.
Play the game online here: Manufactoria at PleasingFungus Games
Whenever people discuss regulation, whether for or against, it’s always treated as basically one type of thing. Opponents might say, “regulation is bad for business,” or, “we need to cut red tape,” while advocates might argue, “regulation makes us safer,” or, less positively, “regulation is a necessary evil.”
Occasionally, someone will distinguish between good and bad regulation, but it’s still talked about as one thing, with one purpose; the debate is whether it achieves that purpose to a better or worse extent.
Visiting India helped crystallise in my mind that there are two very different things, both called “regulation”. They have different aims, and different effects on business. We shouldn’t confuse one for the other. We should also be aware that it’s a deliberate policy of business lobby groups to try to make us do just that.
We’re moving to Manchester next week, but for the last two years we’ve lived in London. Trying to pin down the exact bit is tricky. It’s near Finsbury Park, which for non-Londoners means north and a medium distance out from the centre, and for practical purposes, “near Finsbury Park” is what I’ve always described it as. But Finsbury Park is quite large and there are lots of places near it which aren’t particularly near each other.
We’ve lived in the area immediately to the west of the park, not south enough to be Holloway, west enough to be Archway (which isn’t really an area anyway), nor north enough to be Crouch End. The main feature of the area is Stroud Green Road, which runs from Finsbury Park station north west until it becomes Crouch Hill and continues into Crouch End. This road also forms part of the boundary between the London Boroughs of Islington (of wealthy “new” Labour fame) and Haringey (of Baby P fame).
Stroud Green itself was a hamlet a little further north which got swallowed up by nineteenth century suburban expansion; apart from Holy Trinity Church, the site it occupied is mostly residential now and not a distinctive area. Stroud Green Road to the south, however, is the economic focal point, and something of a gem for the diversity and quality of independent shops and restaurants along and around it.
I know this is a bit late, but it’s worth following up on.
In a previous post, I pondered whether David Cameron’s tub-thumping over the EU’s bill for £1.7bn extra in UK payments was a very clever conspiracy to boost his image as a statesman, or a very stupid tantrum which played into his opponents’ hands.
The answer would be revealed when the UK either paid, or didn’t pay, the bill. And, as it turned out, we payed:
As I said at the time, this could have been played as a triumph: our extra payments were due to better economic performance. Like a recalculation by HMRC which tells you that you owe extra income tax because you earned more than expected, it was annoying, but a consequence of being better off.
Instead, Cameron and Osborne’s handling of the issue was typical of their clueless approach, and has helped to get us where we are now: with Vote Leave ahead in the polls and in control of the debate, looking likely to win the referendum on 23rd June.
Two years ago, I made a resolution to boycott Amazon.
Yesterday, I received two parcels from Amazon. But as far as I knew, I hadn’t broken my resolution. I hadn’t ordered anything from Amazon.
What I had ordered was two items from Ebay, from two separate sellers. But both items arrived packaged in Amazon-style cardboard boxes, sealed with Amazon Prime tape and addressed with Amazon postage stickers.
So what’s happened? Are both the sellers actually Amazon in disguise? Is Amazon’s new strategy to set up front operations on Ebay to sell to boycotters like me?
Or is it something less conspiratorial? Large Ebay sellers running their operations through Amazon Web Services? Or is is a feasible business model just to pay for Amazon Prime and trade as a middleman, sending deliveries directly to your Ebay customers?
I contacted both sellers and asked. Apparently, Amazon’s nationwide warehouse operations are so extensive, they have huge unused capacity which they rent out to other businesses. Both of the Ebay sellers were running sizeable businesses on top of the Amazon platform, using it as a managed service providing storage, packaging and distribution for their products.
Through its warehouse network and AWS, Amazon is turning itself into a foundational component of our economic infrastructure.
Boycotting it is becoming harder.
I am undeterred.