Showing posts with label adam smith. Show all posts
Showing posts with label adam smith. Show all posts

Saturday, September 14, 2024

EV Public Charging

One evening over 20 years ago, I happened to surf onto "Nightly Business Report." Not the sort of thing which ordinarily held my interest for more than a few seconds, but this time I ended up watching an entire guest commentary or editorial by a columnist from Forbes, a crusty, white bearded curmudgeon who asked, "When are one of you billionaire geniuses going to design a computer I can turn on and off like a TV?"

A darn good question! And all these years later, it still is. The commentator went on to say that computer guys made computers for computer guys, and not for the public. Computers are inconvenient and difficult to use for the general public, because computer guys don't care.

I was reminded of this just a couple of days ago, reading a social media conversation about public EV charging. Someone had started a thread because they were new at using public chargers, and having some difficulty. 

Something lots and lots of people can relate to. And thankfully, they were getting lots of advice, and hopefully, enough of it helped and they can use public chargers now.

But one participant was not helpful, was not friendly. They called the original poster stupid, and had harsh words for people who were "too lazy to learn" how to operate public chargers. 

Personal computers all over again: tech guys know how to do things like public charging, and, basically, screw you if you don't.

I know there are reasons for everything. I know tech guys got wedgies growing up and it made them angry at the whole world.

But there's a difference this time around: computers have never had to compete with any older, more familiar technology. They were new and unique, and they remain unique. EV's are competing with ICE vehicles, and public charging is competing with gas stations. 

And so, many of you may be very relieved to learn, the days when you can just go up to a public charger and swipe a credit card as if you were at a gas station -- no apps -- are already here in parts of Europe and California, which means they will be everywhere soon.

Competition between merchants, between old and new ways of doing things, leading to innovation which directly benefits the consumer. I hate to say it, but maybe Adam Smith wasn't completely wrong about everything.

Buy books about electric vehicles on Amazon:  https://amzn.to/4gPzFQw

Monday, September 23, 2019

Economics: Beyond Quantity

As I've mentioned several times already on this blog, there appear to me to be (at least) two different kinds of socialists: those whose primary enemy are wealthy people, who want to eradicate great personal fortunes; and then those like me, who would much rather eliminate poverty, and do not believe that eliminating wealth and eliminating poverty are one and the same thing.

It also occurs to me that there are (at least) two different kinds of entrepreneurs: those who feel that the way to become rich is to squeeze whatever money is left in the possession of poor people out of them; and those who do not. It could well be that the first kind of socialist is only able, for some reason, to perceive the first kind of entrepreneur. Michael Brooks, for example,



a left-wing American radio news-talk guy who often and flatly states his belief that billionaires are evil, and that the quantitative category of billionaire must be eradicated, may, for some reason, only be able to perceive billionaires to the extent that they resemble Donald Trump. Brooks lives in New York City, so if he wanted to, he could look around himself and see rich people doing all sorts of un-Trump-like things, from leaving decent tips to giving to charity to raising money for the Democratic Party... Maybe Brooks sees all of this every day, and he doesn't consider those people to be actually rich unless they're actually billionaires. I don't know, I don't know how Brooks thinks, except that I suspect he doesn't think very deeply or in great detail, at least not when it might contradict certain flatly-held beliefs. (You gotta hold those flatly-held beliefs way down low, out of the wind, they might get knocked over and you'd actually notice something for once.)

Conversely, some people, some of whom have studied Adam Smith and then ceased to think about economics (although in many cases continuing to write about it and win Nobel Prizes in economics), believe that rich people are morally better than poor people, and that everything entrepreneurs do is a blessing for mankind in general. It's hard for me to imagine how anyone can read Smith and not perceive that the world has changed beyond all recognition since he published The Wealth of Nations in 1776, but, quite obviously, for many businesspeople, Smith is still quite literally the last word. Just as, for many Medieval people, beyond a few miles from the coasts the oceans were full of dragons and death, so, for many economists right up to the present day, beyond Smith lies Marx, who is pure evil and has nothing to give to mankind except agony.

Although I believe it is possible for someone to become wealthy and to benefit mankind at the same time, ironically, the economics of Smith, who believed that to become wealthy was to benefit mankind and vice versa, have given ideological cover to entrepreneurs who thrive while behaving in ways which are utterly predatory, and much worse than useless for the common good.

Also, and this is very important in any meaningful discussion of economics: there are (at least) two different ways of measuring someone's well-being: the first simply adds up the monetary value of everything that person owns; and the second one, the one I use, recognizes that life is not nearly that simple: well-being is a matter of your health, where you live, the air you breathe, what you eat, what opportunities you have, and so forth. And these things are not always strictly measurable in monetary terms. Comparable good things can cost much more for one person than for another; or they can be free in some cases; or, in other cases, they may not be available for any amount of money. (I just mentioned the common good: quick now, what is the common good worth in dollars and cents?)

Economic discussions often focus much too narrowly on quantities of currency, and not nearly enough on qualities of existence. The latter, the quality, is really the only thing that matters. The only reason that the quantities of currency matter is that they can sometimes affect those qualities.

Quantities of currency can affect people's lives very much. You can improve people's lives very much by giving them cash, and, there's no doubt at all, you can kill a lot of people by depriving them of cash. But it isn't the actual cash or lack of it which helps or hurts someone, it's the things which cash can buy. And cash can't buy everything. It can buy exactly what a buyer and seller agree that it can buy. That's exactly how much it has always been able to buy. If someone owns a house and is calculating how much they might save buy installing solar panels, and they're really not thinking about saving human life on Earth, then their economic calculations are appallingly primitive. So, how much would you pay to save human life? Hopefully you can see how absurd the question is. We can't buy a clean atmosphere. We're going to have to actually clean it up, and cleaning it up may well involve putting much less emphasis and worth on quantities of cash, and much more on things like qualities of substances and of behaviors. It may be environmentalism which will finally force many people to confront the fact that money isn't really reality, it's just a tool we've been using for a while, which we can set down whenever we choose, and pick up a new one.

So, to Michael Brooks, I say (ha ha, just kidding, I know damn well Michael Brooks isn't listening to anyone saying anything resembling any of this), focus on the effect people have, and not on the size of their stack. No doubt, in many cases, billionaires actually are complete bastards, just like you say they are. So, in those cases, tell us, news-talk guy, tell us specifically, what bad things they are doing. If you happen to know what those bad things are. If not, maybe you should do some research before the next time you open your mouth. Be careful, though! Research, when diligently and earnestly done, has been known to upset long-cherished beliefs!

Saturday, January 7, 2017

Trump And Alternative Energy

Bloomberg News, Nov 9, 2016: "Trump's Win 'A Disaster' for Plunging Renewable Energy Sector"

Bloomberg News, Nov 23, 2016: "Economics to Keep Wind and Solar Energy Thriving With Trump"

More headlines seem to agree with the second headline than with the first. A third headline, from fiverthirtyeight.com on Nov 14, seems to cover the prevailing opinion pretty well: "It's Hard To Tell Whether Trump Supports Renewable Energy — And That May not Matter Much"

It may not matter much, because wind and solar and other green energy options may very soon be so much more attractive economically than oil and coal that Trump and the petrochemical sector won't be able to kill them. The technology just keeps getting more efficient and cheaper. The tech geniuses just keep thinking stuff up, as Bruce Willis put it in Armageddon. Transparent solar panels, which can cover the entire exterior of a building because they double as windows. Rotating solar panels.

When I said "more attractive economically" above, I was referring to conventional economics, and to the kind of investor whose biggest hero is Adam Smith. Conventional economics or paleoeconomic theory, exemplified by Trump and Big Oil, create a theoretical model of the entire world in which things such as the environment are treated as "externals," as secondary factors, not to be treated as the primary things under consideration when investing. Of course, this is completely insane: conventional economics is an arbitrary way of doing things which functions only because enough people have agreed to do things that way. It can be completely scrapped and replaced by a totally different economic model whenever people agree to do so, and such a change will not harm the atmosphere or the oceans one bit. On the other hand, if the oceans die or the atmosphere becomes too polluted or temperatures rise too much, all of the people will die, and every form of economics on Earth will die with them. Conventional economic theory regards buying and selling and currencies and loans and interest and so forth as essential things, and environment and health as secondary. The plain and obvious truth is that conventional economics has this completely backwards.

It's dawning on more and more people that conventional economics has this completely backwards. Nevertheless, it continues to function in terms of rewarding those who follow its rules with greater accumulations of money than those who don't. It's either dawned on Democrats much more often than on Republicans, or Republicans pretend that it hasn't dawned on them because they're making money with that pretense. "We are what we pretend to be," as Kurt Vonnegut pointed out.

The ironic thing is that solar and wind energy and other clean energies are beginning to win, not because of their ecological benefit, but because of their appeal to those who continue to follow conventional economics and to treat the environment as if it were secondary to buying and selling and loaning and interest rates and wages and so forth. These clean energies are rapidly growing in appeal to those who seem to believe that conventional economics consists of laws of nature rather than completely arbitrary agreements between people, agreements which can be, and are, modified, re-invented or scrapped whenever people agree to do so. Green energy is growing in appeal to those appeal because it's making money and not because of anything to do with the environment or with the health of living things.

Presumably, if clean energies grow by several hundred percent in the next few years, resulting in petrochemical shrinking to a small fraction of the market share they now enjoy, Trump will take credit for the bluer skies and gentler weather and our greater ability to see the stars at night, and claim it was all his idea right from the start, whether he's still president or whether he was impeached and removed from office early in 2017.

Thursday, November 20, 2014

Does Democratic Rule Equal Social Justice?

The question cannot be meaningfully answered as posed in the title of this piece, because "democratic" and "justice" are both subjective terms.

The influence of the laissez-faire economics of Adam Smith is still very strong in the US, with its notion that everything will be wonderful and all will live in abundance if only businesses are left alone to do as they see fit. "Laissez-faire" translates pretty much to "leave it alone," and "it" is business. Smith argues that if businessmen were just left alone to do what they do, an "invisible hand" will guide them to act to the benefit of mankind. Making their businesses more economically successful and creating a more just world with less squalor and poverty will be one and the same.



Amazingly, nearly two and a half centuries after Smith began to spread his ideas of the all-beneficent, all-curing invisible hand, people still behave as if it actually made sense, despite massive evidence to the contrary having accumulated in the meantime. In this as in so many things, it's impossible to know how many people really think it makes sense and how many say they do because they see a chance for personal gain. Ronald Reagan's plan of "trickle-down economics" is very Smithian: cut taxes, and cut social programs paid for by those taxes, and poor people will not suffer, because the resulting growth of the economy will benefit them more than the social programs did. In 1980, running against Reagan for President, George Bush Sr referred to the trickle-down idea as "voodoo economics;" later in 1980 he became Reagan's running mate and got on board with the Gipper's economic plan. People naturally assumed that Bush's criticism of trickle-down economics had been sincere, and that his apparent change of heart was a matter of political calculation, but in politics as in economics, who knows who's being sincere when, and for what what reason? Maybe Bush was in favor on trickle-down all along, and only criticized it in order to attack Reagan and try to win the nomination. Who knows.

For advocates of laissez-faire, trickle-down, liberatarian economics, taxes and government regulations concerning business are tyranny, they are un-democratic. For others -- let's call ourselves what we are: socialists. Let's stop being afraid of that word -- unrestricted businesses can be a prime source of tyranny, driving down wages, forming monopolies, fixing prices, profiteering from pollution and wars and other man-made catastrophes.

I'm a socialist, but I'm not asserting that every corporation is unmitigated evil. Mitt Romney was wrong, of course, when he said that corporations are people, but if what he meant to say was that individual people make up, control and operate businesses, and that these individual people can choose different ways of going about their business, and that therefore every business should be regarded as an individual case, just as every individual human being should be, then of course he was right. Still, by and large, over the course of the 2 and a half centuries since Smith, corporations have provided an immense amount of evidence that they should be watched carefully by governments, and regulated when necessary, because if Smith's invisible hand really does exist, if it's unregulated, much of the time it's giving most of us the finger, not looking out for us.

I say that many of us are socialists and should stop running from the term. That's because minimum wages, universal health insurance, regulations against pollution and against monopolies, universal education, universal nutrition and so forth are all socialistic. Like most of the rest of the countries on Earth since the US was founded, the US follows a combination of laissez-faire and socialistic policies, and there's a constant debate and power struggle between the 2 tendencies, which we also call conservative and liberal. Same thing. As long as you keep in mind that in most countries, "liberal" doesn't mean what it means in the US, it means "libertarian." One of many good reasons to call ourselves what we are, socialists, is to help Americans and non-Americans each understand what the other group is talking about.

To return to the title of this post: does democratic rule equal social justice? We will make more sense in our political debates, we will have a greater chance of getting along with each other, if we realize that we don't all define terms like "democratic" and "justice" in anywhere near the same way. And the example of how businesses are treated is just one way in which those terms are defined differently by different people. They're also applied in very different ways to issues of gender, ethnicity, freedom of speech, education, etc, etc. Some would say that I'm a moral relativist and that I'm attempting to thrown open a door to social, political, economic and other kinds of chaos. I would reply that, yes indeed, I am a moral relativist, and that all I'm trying to do is draw attention to the vast levels of chaos which already exist, chaos to which most people's eyes are stubbornly shut. Which is not surprising, it's a scary sight. Still I draw attention to it in the hope that seeing the chaos somewhat more clearly will be a beginning of a chance of reacting to it somewhat more effectively.