What’s the Profit (কি লাভ)?

Why do it? I keep thinking about the differences in how people account for value. One dichotomy that comes up is people that want to talk and think about other people, and people that want to talk and think about ideas, without reference to people.

I remember once, on a trip to Italy, I was with a group that had hired a local guide. While the group was taking pictures of themselves and other people in the group, I was mostly taking pictures of the architecture, the sculpture, the paintings and so forth. Generally, I was not taking pictures of people. The guide stopped me and said something like, “If you were to come back, years from now, many of these things will still be here, but the people won’t be.”

He was right. I’ll probably never have that opportunity to take a trip like that with my dad again. This is true of everything, the moment will never return. It’s a variation on the theory of visitors.

It goes deeper than that, though. There’s the phrase: there are people that know the price of everything and the value of nothing. There’s a certain kind of cook who thinks it is a greater virtue to get the best price on ingredients or use all of something rather than have waste than to make food that tastes good and that people will enjoy. We do not live with such scarcity that we need to maximize calories per dollar. Yet, some people insist on it.

Culturally, you can see these kinds of values as well. For example, I make certain recipes, such as spiced maple caramels, caramel-filled butter pecan cake, idli, bread cooked in the kubaneh-style, home-made chili pickles, etc. The maple syrup in the spiced maple caramels alone would make it difficult to sell the caramels at a profit, particularly if much cheaper substitutes will be had. But, most people have never eaten anything like them.

The caramel cake takes about 6 hours to make. Idli requires at least two days of fermentation to develop interesting flavors. Bread cooked in the kubaneh style is slow cooked over 8-12 hours. Chilies can take months, even years, to fully pickle.

Some products that take a long time can make a profit. There are +20 year old ports, cheeses decades old, and so forth. But, I wonder how much is lost in a world that cannot afford to wait, that is more concerned about turning over the product and selling it than the quality, or uniqueness of the product itself.

When you start looking, you can see this everywhere. in cryptocurrency circles, people ask why the price isn’t going up, as if a cryptocurrency developed on a time line of a few years is going to generate value that quickly.

But, it seems the environment has us looking for profit. We know the price of everything and know the value of nothing. And, there is much that has value that is discarded, out of hand. Beauty, value and everything else being in the eye of the beholder.

The ABC of Contemporary Capital by David Harvey

1 of 13 Presentations on the ideas of Marxism.

“As a part of this course, I’m sharing rough drafts of pieces of a manuscript I am working on, a sort of textbook on Marx’s political economy.

I’m experimenting with crowd sourcing the revision process.” 

http://davidharvey.org/2022/01/new-course-the-abc-of-contemporary-capital/

I’ve talked about Hypothes.is for annotating in the past. I haven’t watched this particularly series, but I have read some of Harvey’s books and have found them useful. Bookmarking for later.

Thinking Different About This Rigged Game

040204-N-3122S-004 Davis-Monthan Air Force Base, Tucson, Ariz. (Feb.4, 2004) Ð An aerial image of the Aerospace Maintenance and Regeneration Center (AMARC) located on the Davis-Monthan Air Force Base in Tucson, Ariz. AMARC is responsible for the storage and maintaining of aircraft for future redeployment, parts, or proper disposal following retirement by the military. U.S. Navy photo by PhotographerÕs Mate 3rd Class Shannon R. Smith. (RELEASED)

“We should ask ourselves, our communities, and our government: if a business can’t pay a living wage, should it be a business? If it’s too expensive for businesses to provide healthcare for their workers, maybe we need to decouple it from employment? If childcare is a market failure, but we need childcare for the economy to work, how can the government build that infrastructure? If the pay you provide workers doesn’t allow them to live in the community, what needs to change? Collectively, we should be thinking of different funding models, different ownership scenarios, and different growth imperatives. Failure to do so is simply resigning ourselves to another round of this rigged game.”

-Anne Helen Peterson, “The ‘Capitalism is Broken’ Economy.” annehelen.substack.com. April 21, 2021.

Might be prudent to also ask about the entire lifecycle of what we are doing. Does the above look normal to you?

Geriatric and/or Managerial Socialism

“Letting firms fail, and share prices fall to their market level, also provides younger generations with the same opportunities that we, Gen X and boomers, were given: a chance to buy Amazon at 50x (vs. 100x) earnings and Brooklyn real estate at $300 (vs. $1,000) per square foot. Just as we pretend our service men and women are heroes, and then treat them like chumps, CNBC advertisers and Peter Navarro want to pretend they give a sh[i]t about younger generations so they can protect the wealth of old people and management/advertisers. Enough already.”

-Scott Galloway, “I’m not Done Yet!profgalloway.com. March 19, 2021.

While I don’t subscribe to free market fundamentalism, the strength of capitalism is supposed to come from the creative destruction that comes from driving underperforming firms out of business. If you save those firms, then you have a form of socialism, and if you are going to have socialism, the question is who is the socialism for? If it’s geriatric and management socialism, one has to wonder why that’s the value.

The Limits of Growth

“Whether we find ourselves amidst the vast terrain of the commercial internet; in our libraries, archives and museums; or between the parks, public housing facilities and utility infrastructures of our cities, thinking beyond growth as an end in itself requires attending to maintenance and care: who deserves it, who performs it, and to what end. This new world is one that we can choose to build deliberately and in incremental steps—at a Triennale or a brainstorm at a conference–or it could be forced upon us, necessitating triage and reactionary care. We should start planning for the former.”

—Shannon Mattern, “Minimal Maintenance.” Lapsus Lima. October 2, 2019.

Conversations on Political Economy

Capitalist: Capitalism provides for the most efficient allocation of resources, wealth creation and individual choice. It’s the best economic system we’ve got.

State Socialist: There are other values than efficiency, prosperity and choice. Capitalism tends toward oligarchy and monopoly. As industries concentrate and gain economies of scale, wealth creation is concentrated for the benefit of society’s elite, and non-elite individual choice declines, and over a long enough time period, with limited or no competition, resources are not allocated efficiently. State socialism solves these problems.

Capitalist: State socialism is inefficient. There are few incentives and options to create wealth, and it limits individual choice. State socialism tends toward dictatorships and state monopolies. When the state takes over an industry, it benefits elite government officials rather than society as a whole. Bureaucracy and corruption lead to a squandering of resources, and kills individual initiative.

Small Socialist: Small socialist enterprises — such as employee ownership, cooperatives, and collective ownership — solve both the problems of Capitalism and State Socialism at the cost of economies of scale. Decision-making is distributed across the industry or enterprise. Employees and/or customers are also owners and have incentives aligned with the business. What’s not to like?

Capitalist: Without economies of scale, small socialists remain small. Some industries cannot exist without economies of scale. In others, it is impossible to compete with capitalist or state enterprises without them. Small socialists will stay small, with all the poverty that entails. Capitalism solves this problem.

State Socialist: Small socialists also have the problem of capitalists, except it concentrates power into decision-makers hands. They, in-turn, have incentives to collude to extract benefits for themselves or for their industry at the expense of the enterprise or society as a whole. Good stewards and state ownership solves this problem.

[Continue, ad infinitum and adding in small capitalist, communist, anarchist, fascist, etc.]

Discussions of political economy are ultimately discussions of what you value and which system you believe is most likely to give it to you. See also: Revolution for One.

Capitalism vs. Price Gouging

Open Question: When does capitalism become price gouging?

Strikes me that price gouging is during acute events where people with means cannot buy what they want, i.e., the price mechanism breaks badly enough that it impacts society-at-large rather than a minority. But, so long as it’s impacts a minority or is an plausibly deniable externality, it’s merely capitalism as designed.

Against Hustle

“Even Thomas Merton — a mid-twentieth century activist monk who lived at the Abbey of Gethsemani in Kentucky, and whom Odell holds up as a model of informed, participatory refusal — might have difficulty following the same path today. My mom lives a couple hours away from the Abbey of Gethsemani and when we went there a few months ago there were barely any monks left. Reading a flyer I realized that not only do you have to renounce all worldly belongings to join the Abbey, you can’t bring any debt with you. Charities can alleviate some of the burden, but even becoming a monk won’t necessarily help you escape student loans.”

—Rebecca McCarthy, “Against Hustle: Jenny Odell Is Taking Her Time at the End of the World.” Longreads.com. April 2019.

Walgreens Tests New Smart Coolers

“Walgreens is piloting a new line of “smart coolers”—fridges equipped with cameras that scan shoppers’ faces and make inferences on their age and gender. On January 14, the company announced its first trial at a store in Chicago in January, and plans to equip stores in New York and San Francisco with the tech.

Demographic information is key to retail shopping. Retailers want to know what people are buying, segmenting shoppers by gender, age, and income (to name a few characteristics) and then targeting them precisely.”

—Sidney Fussel, “Now Your Groceries See You, Too.” The Atlantic. January 25, 2019.

Another technology that sounds creepy, but will be everywhere in 10 years and no one will think twice about. It reminds me of the good old days when movie theaters started on time and didn’t show 20 minutes of ads first.