Posts tagged ‘game’

Some Blu-Ray Advice

I am a bleeding edge guy when it comes to home theater, so I have had a Blu-Ray high-def disk player for over a year.  I am currently looking for a second player to replace the first, and I thought I might share a couple of thoughts.

The press has declared the high-def DVD format war over, with Toshiba pulling the plug on the HD-DVD format.  This makes it much easier to figure out what software to buy (though it is still really expensive -- some Blu-Ray disks are going for $40!)

However, the hardware issue is still a minefield.  This is related to how the Blu-ray standard is being run, which presents problems and opportunities.  Unlike your CD or DVD player, the Blu-ray standard continues to evolve.  A lot.  It is much more like a computer standard, and I suspect in fact that the computer guys (or at least the game console guys) are running the show here.  This means that new features continue to evolve and be added.  And these are not just add-on features, like additional hardware inputs, but software features that create compatibility issues between versions.   As a result, there are already at least 3 generations of players out there.  The original profile 1.0, and then profile 1.1, and now profile 2.0.  And even within these profiles, individual players may vary in their conformance to them.   Sometimes you can do a firmware upgrade to a newer spec, and sometimes you can't, but such upgrades are not a piece of cake, and involve burning a DVD from the Internet and running certain codes from the Blu-ray remote to make the firmware upload.

The net result is that the features on a certain disk may not work on your player, or the disk may not work in your player at all (Newer movies like Pirates of the Carib. III have multimedia title pages that won't load on my player, and when the title page won't load, there was no way to play the movie.)  My advice is if you have waited this long, hold out until this summer for the newer profile 2.0 machines.  Also, you should confirm the player supports HDMI 1.3, so it can take advantage of the wider color gamut of newer TV's.  Players of this spec will start showing up in the next months -- the Sony BDP-S350 will likely be a good choice available this summer.

By the way, good luck finding anything on the box or in a Best Buy store that says what profile the player conforms to.  Hardware makers have created a really compatibility mess with Blu-ray (its seems to be a very poorly run standard) but they want to hide this fact from consumers because the are only just now recovering from the format war with HD-DVD and don't want consumers to have another reason to wait to purchase.  So there is not way they are going to put the profile number on the box, I guess, so you need to do your research.

As a final thought, and maybe I am just old and out of step here, but I really find the insistence on multimedia content and bitchin-cool menu screens on Blu-ray disks to be tiresome.  I just want to watch the movie in beautiful high-resolution, and having my software not work right because the menu doesn't work is just stupid.  Further, the addition of all these features has caused most blu-ray players to have a boot up cycle longer than Windows.  It can take 45 seconds for a blu-ray player to boot up, and a similar amount of time to get the software to start playing.  Add in the time to plow through stupid menu screens, and it can take several minutes to get a movie started.

Tonight I watched Cloverfield on blu-ray and it was awesome.  I was surprised the reviews on Amazon were so bad for Cloverfield, because I really liked it.  Yea, its different, but unlike movies like Bourne Ultimatum, there is actually a explanable reason for the jerky (and sometimes nauseating, I will admit) camera work. I did not pay much attention to it when it came out in theaters -- is this one of those geek litmus-test videos that only a few of us hard-core nerds like (a la Serenity?)

Some Blu-Ray Advice

I am a bleeding edge guy when it comes to home theater, so I have had a Blu-Ray high-def disk player for over a year.  I am currently looking for a second player to replace the first, and I thought I might share a couple of thoughts.

The press has declared the high-def DVD format war over, with Toshiba pulling the plug on the HD-DVD format.  This makes it much easier to figure out what software to buy (though it is still really expensive -- some Blu-Ray disks are going for $40!)

However, the hardware issue is still a minefield.  This is related to how the Blu-ray standard is being run, which presents problems and opportunities.  Unlike your CD or DVD player, the Blu-ray standard continues to evolve.  A lot.  It is much more like a computer standard, and I suspect in fact that the computer guys (or at least the game console guys) are running the show here.  This means that new features continue to evolve and be added.  And these are not just add-on features, like additional hardware inputs, but software features that create compatibility issues between versions.   As a result, there are already at least 3 generations of players out there.  The original profile 1.0, and then profile 1.1, and now profile 2.0.  And even within these profiles, individual players may vary in their conformance to them.   Sometimes you can do a firmware upgrade to a newer spec, and sometimes you can't, but such upgrades are not a piece of cake, and involve burning a DVD from the Internet and running certain codes from the Blu-ray remote to make the firmware upload.

The net result is that the features on a certain disk may not work on your player, or the disk may not work in your player at all (Newer movies like Pirates of the Carib. III have multimedia title pages that won't load on my player, and when the title page won't load, there was no way to play the movie.)  My advice is if you have waited this long, hold out until this summer for the newer profile 2.0 machines.  Also, you should confirm the player supports HDMI 1.3, so it can take advantage of the wider color gamut of newer TV's.  Players of this spec will start showing up in the next months -- the Sony BDP-S350 will likely be a good choice available this summer.

By the way, good luck finding anything on the box or in a Best Buy store that says what profile the player conforms to.  Hardware makers have created a really compatibility mess with Blu-ray (its seems to be a very poorly run standard) but they want to hide this fact from consumers because the are only just now recovering from the format war with HD-DVD and don't want consumers to have another reason to wait to purchase.  So there is not way they are going to put the profile number on the box, I guess, so you need to do your research.

As a final thought, and maybe I am just old and out of step here, but I really find the insistence on multimedia content and bitchin-cool menu screens on Blu-ray disks to be tiresome.  I just want to watch the movie in beautiful high-resolution, and having my software not work right because the menu doesn't work is just stupid.  Further, the addition of all these features has caused most blu-ray players to have a boot up cycle longer than Windows.  It can take 45 seconds for a blu-ray player to boot up, and a similar amount of time to get the software to start playing.  Add in the time to plow through stupid menu screens, and it can take several minutes to get a movie started.

Tonight I watched Cloverfield on blu-ray and it was awesome.  I was surprised the reviews on Amazon were so bad for Cloverfield, because I really liked it.  Yea, its different, but unlike movies like Bourne Ultimatum, there is actually a explanable reason for the jerky (and sometimes nauseating, I will admit) camera work. I did not pay much attention to it when it came out in theaters -- is this one of those geek litmus-test videos that only a few of us hard-core nerds like (a la Serenity?)

On Corporations and Public Service

I had occasion to think about the term "public service" at about 6AM this Sunday morning.  As I was driving my son to a way-too-early baseball game, I flipped around the FM dial trying to find some music.  There was none.  All I could find were a number of really dull programs on arcane topics presumably on the air to fulfill the radio broadcaster's "public service" requirements of the FCC regulatory regime.  Since almost no one gets excited about this programming except for the leftish public policy types that inhabit regulatory positions, the radio stations broadcast all this garbage on Sunday mornings when no one is listening anyway.  Ironically, in the name of "public service," stations must broadcast material no one in the public actually wants to listen to.

Which leads me to coyote's definition of corporate public service:  Make a product or service for which people, without use of force or fraud, are willing to pay the listed price.

Any freaking moron can (or at least should be able to) offer a product or service that people will be willing to use for free.  Is this a public service?  Well, maybe.  If you are out there helping to feed homeless people, power to you.  But is it really a public service that the Miami transit system offers free rides that it can only pay for with deficit spending?  Or $1.50 bus rides that cost taxpayers $30 each to provide?  And this is not to mention the free services, like public service radio broadcasts, that many people would be willing to pay not to receive. 

That's why I say that any moron can give stuff away.   But find me the person who can create enough value that people are willing to pay enough for his product to cover all the material, labor, and capital inputs it took to create it, with surplus left over for both buyer and seller, and that is the person performing a real public service.

And let me listen to some freaking classic rock on Sunday mornings.

Day at Yankee Stadium

My son and I went to see a game today in Yankee Stadium. both because he is a big Yankees fan and to see Yankee Stadium one last time before they tear it down.  While the Yanks lost, with Mariano Rivera giving up a solo home run in the 9th, my son, who is a huge A-Rod fan, got to see A-Rod go yard to tie the game in the 8th.  A couple of observations:

  • There is a whole different seat-ethic going on in Yankee Stadium.  Every single time we got up to get food or go to the bathroom, we found someone in our seats.  Seat numbers on tickets seem to be a recommendation rather than an absolute assignment
  • If you leave aside the history, there are a lot of very good design reasons for blowing up Yankee Stadium.
  • The Yanks showed a nice Rocky-themed film in the 8th, but puh-leeze -- there is not any team in the world that can less wrap itself in the mantle of scrappy underdog.  If any team is Apollo Creed, its the Yankees.
  • Enter the Sandman is great entry music for a closer like Rivera.

The Worst Thing I have Seen From a Major Media Company in Quite a While

The Australian Broadcasting Company (ABC) web site has an absolutely horrible kid's game called "Planet Slayer."  In this game, kids answer lifestyle questions and the program tells them when they should die because they have used up their "fair share" of the world's resources.  The less politically correct kids are, or the wealthier they are, the sooner they are told they should die.  Accepting the default, average choices in the games tells kids they should die when they are 9 years old.

Yeah, I know you think I am exaggerating.  Because this is likely to get pulled down soon, I will show you a series of screenshots from it.  Whether it gets pulled down or not, a major media company (with all of its famed multiple levels of editorial control) thought this was a good game for kids.  I actually delayed publishing this, because I wanted to make sure this was not some kind of hack or joke site.  But you can get there right from the ABC home page by clicking "science" in the top menu and clicking on the planet slayer game icon at the bottom of the science page.  I still wonder whether it's a put on - it's that bad.

Here is the landing page (click on any page to increase the size):

One

Yep, that little sign does indeed say "find out when you should die."  Here the game is explained:

Two

Here is the first question:

Three

With each question, if you choose any answer that might not indicate that you are a subsistence farmer in Africa living on a $1 a day, your pig gets fatter.  I really encourage you to check out the whole thing.  It is one politically correct litmus test after another.  My pig got slightly fatter, until I got to this one:

Four

Answering that you spend any more than $10,000 AUS (about a 1:1 conversion with US dollars), your pig will get really fat.  The wealthier you are, the more evil you are in a direct relationship.  It is a point I have made for a while:  global warming alarmists consider their preferred solution to environmental issues to be universal poverty. 

Five

There is me, really evil, because I earn a good living.  And, as we can see with this question, since I spend my money on ordinary stuff that I actually want, rather than where the authors would like me to spend it, I really suck.  When you hit the final button, you pig is actually exploded in a bloody mess  (yes, the red is blood).  As it turns out, I should have been strangled at birth:

Six

Hat tip to Watts Up With That.  Really, in some ways this is an awesome game.   Never have I seen such a pure combination of Marxist-style zero-sum economics with science-challenged warming alarmism.

I don't think I need to bother refuting any of this.  If you are new to the site, you can find a basic refutation of zero-sum economics here and a series of resources on global warming, from a book to free Youtube videos, here.

Not Surprised

I thought it was kind of funny, as I was paging through my referrer logs, to see this search find me:

+"calling in sick" +blog

The search game from Google.fr

I Was Right -- Superbowl Economic Contribution Numbers Completely Bogus

In this post, I called bullsh*t on this economic contribution number:

A study released today by the Arizona Super Bowl Host Committee
estimates professional football's championship game at University of
Phoenix Stadium in Glendale generated an economic impact of $500.6
million for the state.

I used some quick reality checks to show that the likelihood that this was a truly incremental economic contribution number was zero.  Now, Arizona has released its February sales tax numbers (the data I suggested was the best way to try to do this analysis).  As I suspected the numbers are not even close.  Let's start with this report from the Arizona Republic:

Sales-tax collections at hotels and motels showed the strongest gains
among tourism-related businesses as thousands of out-of-town visitors
booked rooms for the National Football League's Feb. 3 championship
game at University of Phoenix Stadium in Glendale.

The Arizona Department of Revenue said February sales-tax collections
jumped 12.4 percent at hotels and motels. It was the lodging industry's
best showing, as measured by sales-tax collections, since January 2007.

Bars and restaurants also rebounded from two consecutive monthly declines to post a 4 percent gain in tax collections.

Despite the improved showing in those tourism-related categories,
the state's overall collections continued a downward trend, punctuated
by slumping retail sales and the real-estate industry's decline.
Arizona's total tax collections for the month checked in at $444.1
million, a decline of nearly 1.2 percent from the month before.

Well, that sure doesn't sound like $500 millions worth.  Let's look at the hotel number.  From this Arizona DOR source document (Feb 2008 Tax Facts), the taxable hotel/motel sales in February were about $215 million.  A 12.4% jump, if you attributed it all to the Superbowl, would thus be $27 million.  Similarly, a 4% jump in restaurant would be $33 million.  As I predicted, these don't even add up to $50 million and it is unlikely all of this is due to the Superbowl. 

[The above is still substantially correct.  What follows is corrected in the update] But wait, there's more!  I then I started looking closer at the February tax report.  I don't know what copy the reporter was using [probably one "specially annotated" by the Sports Authority], but my copy shows hotel/motel revenues in Arizona going down by 9% in February 2008 vs. Feb 2007.  It shows restaurants and bars going down by 2%. I checked the Feb 2007 report, just to make sure, and sure enough the 2007 numbers were much higher, despite one more day in February in 2008!  One can find ZERO incremental impact from the Superbowl.

Now these are statewide numbers, and it is possible the author of the article mixed in Maricopa County numbers and that is where the increases were seen.  If true, though, this means the dollar increase was much less, because we are using a smaller base (ie just one county, though a very large one).  And it means that the County numbers may be misleading, because the Phoenix area just cannibalized sales from the rest of Arizona, which was way down.  Either way, it means the $500 million number the Republic keeps pushing is total BS  (incredibly, the author reprints the $500 million number in his article, as if it were consistent with the sales tax data he is quoting.)

Update:  OK, I was right and wrong.  Apparently, when the state of Arizona says "February 2008 Taxable Sales" they mean Taxable sales on reports that they receive in February.  Because reports come in after the tax month is closed, by February 2008 taxable sales they actually mean sales that occurred in January, 2008.  Many apologies to Arizona Republic writer Ken Alltucker who was kind enough to set me straight.  The Arizona DOR report for March 2008 sales, which we now know is actually February 2008 sales, has not been posted online but I am willing to take his word on it.  This is not the first time, alas, that I have been fooled by the fact that the government uses cash rather than accrual accounting.

The wasted effort I expended on the February report which is actually January is not wasted:  From it, we do know that from studying what is actually the sales for January, the Superbowl had no discernible effect on hotel or restaurant revenues in the weeks leading up to the game, since these numbers were down substantially.  I am sure that you will find a few people singing the praises of the Superbowl.  I have not doubt that a few exclusive Scottsdale clubs benefited from having a series of celebrity parties during the run-up to the Superbowl, but overall the impact is low for exactly the reason I already stated:  Superbowl week, due to the nice weather and the Phoenix Open golf tournament, is already a big one for Phoenix area hotels and restaurants.

The point still stands.  I got diverted off on the report discrepancy, but using what I now understand to be correct numbers in the article shows that the ASU B-school study seems to have exaggerated the Superbowl's financial impact by as much as an order of magnitude.

So maybe in the future I will show more respect for reporters who make dumb numerical errors.  Or maybe I won't, since I don't get paid to do this nor do I have 2 or 3 layers of editors looking over my shoulder.

Big Flashing Red Bullsh*t Alarm Going Off

Huge alarm bells are going off as I read this headline in the Arizona Republic, whose motto should be "Happy to credulously print any crazy number your lobbying group puts in a press release."  In this case, the headline reads:

Ariz. economy reaped $500M from Super Bowl

Uh, sure.  Right.  Bet that is a quality number.  Lets first vet the source.  Who provided the paper with this number?

A study released today by the Arizona Super Bowl Host Committee
estimates professional football's championship game at University of
Phoenix Stadium in Glendale generated an economic impact of $500.6
million for the state.

Oh, I see.  Certainly a disinterested party.  And how was this number arrived at?

Arizona State University's W.P. Carey School of Business
completed the economic-impact report based on surveys of more than
1,500 visitors who came to the Valley to attend the game or take part
in festivities.

The survey revealed that visitors stayed in Arizona for an average of
3.9 nights and spent an average of $617 each day on hotels, food,
alcohol, transportation, recreation, shopping and other categories. The
report also calculated the amount that organizations dropped during
Super Bowl week.

Well, its good to see the business school at America's #1 party college on the case.  I would have thought this would be a very challenging study to conduct.  In my naiveté, I might have assumed that these Superbowl visitors might have displaced other potential visitors who would have been there anyway.  I would have fixated on the fact that Superbowl week is also Phoenix Open week and, given the beautiful winter weather here, one of the prime tourist weeks of the year even without the Superbowl.  I might have wondered how hotel stays during a week when most local resort hotels are full anyway could have been credited to the Superbowl, particularly when many locals left town to avoid the scene.   I might have been worried that I was not counting truly incremental revenues, but the folks in the business school at the university with Americas hottest coeds must be smarter than I am.

So apparently, these geniuses have found a way to assume that 100% of this $617 per day times 3.9 days is incremental and that there is no substitution effect.  However, they have also managed to somehow assume that University of Phoenix Stadium is even larger than I thought.  Because using these numbers, the only way to get to $500 million is if there were nearly 210,000 visitors.  Wow.  This does not even include the thousands of us from Phoenix who were also in the stadium. 

Look, the way to do this study is simple.  You look at sales tax receipts in Maricopa county over the period of January 2007-February 2008.  You calculate an underlying growth rate.  Then you compare the sales tax receipts for the Superbowl months (Jan-Feb 2008) with the same months a year previously, and see how much growth there is, if any, above the underlying growth rate.  I will tell you the answer right now:  It ain't anywhere close to $500 million.  I will eat my hat if its over $50 million.

Here is a reality check:  In 2004 the entire retail trade, from restaurants to stores to hotels, was $16.4 billion for all of Arizona.  This is $315 million per week.  Basically the study is saying that the entire retail trade for the whole state of Arizona was more than doubled in Superbowl week. 

Bullshit.

And the Winner Is...

Jeff Charleston, who went nearly wire to wire to win.  Here is the top ten, which yours truly finally managed to crack for the first time.  I picked the fewest correct games, by far, of anyone in the top 10 but got a lot of upset correct and thus scored a bunch of bonus points.  Memphis fans have to be squirming today.  I almost didn't watch the last 2 minutes of the game -- Memphis seemed to have it totally in hand.

Bracket Rank Points Correct Games Upset Risk % Tiebreaker Total Points (diff) Possible Games
Jeff Charleston 1 127 46 16.7 157 (14) 46
Bennett Johnsen 2 126 47 9.5 150 (7) 47
Keith Ehlers 3 115 44 16.7 188 (45) 44
Kevin Clary #2 4 115 42 13.8 176 (33) 42
Warren Meyer #2 5 115 41 21.4 125 (18) 41
Kelly McLean 6 114 47 6.0 135 (8) 47
Kevin Clary 7 113 42 13.7 174 (31) 42
Aj Dote 8 112 42 2.5 145 (2) 42
Steve Jones 9 109 45 11.4 157 (14) 45
Tom Kirkendall 10 108 45 5.2 142 (1) 45

The whole thing here.

Congrats to Jeff, and he can send me an email if he would like a free copy of either of my books.  And no, Bennett doesn't win 2 copies for being in second. 

Presidents and the Economy

There is very little that can make me go non-linear faster than when someone attributes economic growth to a politician, e.g. Reagan's economy or Clinton's economy.  So this post from Kevin Drum on the correlation between economic growth and the flavor of president in the Oval Office is just the kind of thing to make me lose it.  And not because I really care whether Team Coke or Team Pepsi looks better.

Larry Bartels says that Democratic presidents produce higher economic
growth than Republican presidents, and that the differences in average
growth rates for middle-class and poor families (but not affluent
families, apparently, who do well under both parties) are statistically
significant by conventional social-scientific standards.

OK, I have seen the analysis done different ways and accept the statistical conclusion.  You used to be able to get a really tight correlation between Washington Redskin football team performance and presidential election outcomes (via Snopes):

Sometimes one natural phenomenon supposedly
forecasts another, as in the belief that a groundhog's
seeing his shadow on February 2 portends another six weeks of
winter. In other instances the linkage is between affairs of mankind, as in the
superstition that the winner of football's Super
Bowl
augurs that year's stock market performance (or vice-versa).

A recent item of this ilk maintains that the results of the last game
played at home by the NFL's Washington Redskins (a football team based in
the national capital, Washington, D.C.) before the U.S.
presidential
elections has accurately foretold the winner of the last
fifteen of those political contests, going back to 1944. If the Redskins win
their last home game before the election, the party that occupies the White
House continues to hold it; if the Redskins lose that last home game, the
challenging party's candidate unseats the incumbent president. While we don't
presume there is anything more than a random correlation between these factors,
it is the case that the pattern held true even longer than claimed, stretching
back over seventeen presidential elections since 1936

What gets me is not the existence of a correlation, but the explanation:

In recent decades taxes and transfers have probably been more
important. Social spending. Business regulation or lack thereof. And
don't forget the minimum wage. Over the past 60 years, the real value
of the minimum wage has increased by 16 cents per year under Democratic
presidents and declined by 6 cents per year under Republican
presidents; that's a 3% difference in average income growth for minimum
wage workers, with ramifications for many more workers higher up the
wage scale. So, while I don't pretend to understand all the ways in
which presidents' policy choices shape the income distribution, I see
little reason to doubt that the effects are real and substantial.

I have three thoughts, of which the third is what really gets me:

  • It is funny that no one considers that this correlation may work in reverse.  Everyone assumes government drives short-term economic performance.  What if, to some extent, short-term economic performance drives changes in government?  If one assumes that, even without the public spirited and Herculean efforts of our presidents, economies are naturally cyclical, then why try to explain cycles on politics when we know cycles are going to exist anyway.  Why wouldn't a perfectly valid alternate explanation be that one political party tends to be elected if the economy is in one part of the cycle and the other gets elected if the economy is in another place?
  • The political brand names "Republican" and "Democrat" shift in meaning over time vis a vis economic policy recommendations, and individual presidents can diverge quite a ways from their party center line.  One can easily argue that Nixon was the most interventionist and economically ignorant president (think:  wage and price controls), despite the "Republican" brand name.  John Kennedy was more laissez faire than most Republicans are today.   Regulation, as measured by pages added to Federal Register, increased at a far faster pace under George Bush (I) than Bill Clinton.  Bill Clinton passed free market legislation, including NAFTA, that John McCain shys away from today, while George Bush passed an expansion of Medicare that Bill Clinton did not consider.  Oh, and when we discuss regulation and such, Congress sortof matter too.
  • The author's argument boils down to "the more governors and useless loads we add to an engine, the more strongly the engine will run."  It is just absurd.  None of these guys have the first clue what it takes to run a business day to day, nor how much of a business owner's time and effort is aimed not at service customers better, and not at being more productive, and not at making employees happier or better trainined, but at responding to the latest mass of government regulation, paperwork, liscensing, taxes, and other total crap.  Here is just one example I wrote up about what sits on my desk.

To this last point, take just two things on my desk this morning.  The first is a pile of tax returns and some licensing paperwork.  Last year, our company's total tax bill was not that large.  But the problem is that the government takes the taxes in so many bites, and every bite costs time on our part learning the process and filling out paperwork.  For example, if I take all the taxes and licensing fees we pay to federal, local, and state governments, and multiply times the number of months or quarters each requires a report, I get a number of over 400.  Four hundred individual bites, each with its own paperwork and overhead.

The other problem sitting on my desk is a snack bar I inherited on a lease in California at Lake Piru.  The snack bar is a dump.  It is designed wrong, it is set up to cook the wrong kinds of foods, and uses space in the building very inefficiently.  I want to lay the whole thing out differently, as a win-win for everyone.  We could sell more with fewer workers.  The customers would get more selection, including much healthier choices.  The operation would be safer, because we would eliminate most of the heavy cooking  (e.g. deep fat fryers).  And it would be cleaner, with less wastewater and cleaner wastewater because there would be less grease and oil.

Unfortunately, it is very clear that Ventura County, California is not going to allow me to make these changes, at least at any cost I can afford.  First, apparently I need to build a new wastewater treatment plant for the snack bar!  But I am reducing the waste water load, I argue.  Does not matter.  New code requires a plant.  So because of this environmental code, I am pushed to continue the current operation which is environmentally worse than my proposed alternative.  We have the exact same problem on fire suppression.  But I am removing the ovens and most of the cooking equipment!  It's safer!  Doesn't matter, if I make any change at all, I have to install a new fire suppression system.  And on and on.  this is the true face of government regulation.  We face this kind of thing ten times a day.   

Anyway, I could go on and on about this stuff, but that is what the blog is about, so I will refer you to my past (and future) posts.

Whew

I just got a 15,000 page bid package (yes your read that right) to the shipper, and so my hell period of the last week is pretty much behind me.  In my business, I bid to be a private operator of public and private recreation facilities, usually on a concession basis ().  In this case, the government body we were bidding with required 16 copies of the bid, so really the bid was only about 900 pages long copied 16 times, but even generating 900 pages of business strategy and operations plans is tiring.  Not to mention the logistics of making 14,000 copies.

While this may seem to be surprising, it is exactly this type of sales process that attracted me, in part, to this business.  Yes, I know, most of you want to barf just thinking about preparing such a document.  However, I knew myself well enough at the age of forty when I got into this to know that I am really, really good at this type of complicated written presentation and that I am really, really bad at face-to-face cold-call selling. 

Postscript:
So far, the business has been fun to run and we have had some real victories in privatizing public recreation, and new opportunities open up every day, as California threatens to close its parks.  We do a fair amount of private work now, as well.  I can't say that dealing with the government, particularly as a libertarian, is always fun, but so far the business has continued to be a pretty fair straight-up bid process with the best bid winning.  However, the moment I start seeing evidence that the bid process is shifting to lobbying and rent-seeking, I'm out of here.  I can't even muster up even the smallest desire to play that game.

Update: TJIC writes:

It's fascinating how modern technologies let introverts (or, at least,
people who aren't skilled or interested in traditional glad-handing)
thrive in fields that are thought to require exactly that sort of thing.

He was right the first time.  I am an introvert.   And this very blog is another great example of his point.

Open Your Wallets Again, Arizona

From a reader comes this story of Arizona looking to the public trough to get funds to lure another SuperBowl.  I can say from experience now that Superbowl week is made up mostly of private corporate and celebrity parties that the unwashed locals like myself are either a) not allowed to attend at all or b) can attend only by ponying up $1000 or more.  Not being resentful or a leftist, I couldn't really care less about the parties being near by.  However, my opinion changes real fast if my tax dollars are required to pay for them:

Super Bowl organizers will try to nail down another big game for Arizona, possibly as early as 2012.

But for the state to stay competitive, taxpayers need to shoulder the
majority of game costs, organizers say. And the organizers plan to
lobby for legislation to accomplish that.

The weeklong celebration culminating with Sunday's Super Bowl XLII cost
the local Host Committee about $17 million. The private sector,
including such big contributors as the Fort McDowell Yavapai Nation and
the Thunderbirds, bankrolled more than 80 percent, while state and
local agencies chipped in the balance.

But with a slumping economy making fundraising a challenge, the Arizona
Super Bowl Host Committee, the Arizona Cardinals organization and
Valley business leaders want see that ratio reversed, with public
dollars financing the bulk of the effort.

Don't you love the last sentence?  An exactly equivalent way to state this is "people have other priorities for their own money and refuse to give it up voluntarily, particularly in difficult economic times, so we need the state to take it by force."

No one yet knows how much this year's Super Bowl will fatten state
coffers, though organizers project the game created more than $400
million in spending. An economic-impact study won't be out for at least
a couple of months.

Bullshit.  Every major economic study not conducted by the management of a professional sports team has shown nearly zero impact from such events.  Here is the Seattle NBA team admitting they have no economic impactHere is yet another economic study to the same effect.

Here is my challenge:  Take the Phoenix-area GDP for this Jan-Feb, take out the growth trend line (which can be found in year-over-year comparisons of previous months) and then compare it to the GDP for Jan-Feb 2007.  I bet you whatever you care to bet you cannot find an additional $400 million. 

At the Superbowl

Yesterday, I had what will likely (given ticket prices) be a once in a lifetime experience for me -- I got to take my son to the Superbowl.  Our ability to afford this event really was a result of our living in the same city as the Superbowl.  The obvious reason for this is that we did not incur any significant travel costs and did not have to pay peak demand level hotel pricing.  The less obvious, but ultimately more important, reason was because we could afford to watch the ticket prices on the secondary market up until the absolute last minute.  If your were bringing a group from New York, waiting until Friday or Saturday to buy tickets might have been a bit uncomfortable, given other sunk costs. 

As it turned out, Superbowl ticket prices this year on the secondary market  (e.g. TickCo, Stubhub, et al) followed a parabola.  They were below their peak early-on, particularly since sellers did not have the tickets in hand.  You can buy tickets weeks before the Superbowl, but they will be listed as "for this general area."  You could end up in the front row or the back -- it is a bit of a crap shoot.  So they are cheaper because of this.  The peak pricing came the week before the AFC and NFC championship games when many sellers had tickets in hand and could advertise specific seats.  All along, I was looking for a ticket to just get in the door, so I was looking for the cheapest seats (likely upper deck end zone).  At their peak, there was nothing gong for less than about $3800 (when you included the seller commission or transaction fees, typically 10-20% for this type of ticket).  Beginning the Monday before the game, prices started falling  -first 10%, then 20-30%, and finally as much as 50%.  I jumped in towards the end of the week because a pretty good (or at least better than the worst) seat came up for a good price.  I am told by a friend who showed up on game day at the ticket company office that he got in for less than $1500.

Anyway, here is the stadium - yes it is kind of odd looking.  This was taken about halfway through our walk from the car to the stadium.  We just barely parked in the same county.  We showed up about 6 hours before game time and were in the last half of arrivals:
Sb8_2

The stadium is a taxpayer-funded boondoggle that is a good hour away (on the complete opposite side of a very large city) from old Scottsdale where most of the parties and social activities and player hotels were. 

The security included a ban on any bag over 12x12x12 inches, a pat down, and a metal detector.  And the NFL did a MUCH better job than the TSA.  MUCH.  It is hard to see, but the tent on the left is about 1/4 of the length of the full security screening area.   They had  at least 25 lanes open in parallel.  Despite thousands of people, we had no wait at all (the lines below are all moving briskly and continuously).
Sb7

And look!  We must be in the front row!  Well, of the upper deck, but these turned out to be great seats and, having watched prices for weeks, a very good price-value point (in context).  My son braves the wrath of all the surrounding Giants fans by wearing his Cowboys jersey.
Sb6

I thought the fast set up and takedown of the stages was pretty amazing, and something you miss on TV.  Here is Tom Petty's stage going out (or in, I can't remember).  The funniest part was the crew of NFL guys who followed along with rags and buckets to dust off the grass after the equipment passed to make sure it looked good for TV.
Sb2

Sb10

We had a decent view of Tom Petty's back, which once I saw his scraggly beard was probably a good thing.  The crew of screaming fans at the stage was pretty funny.  They ran these folks out for Alicia Keyes, then kicked them out of the stadium, then ran them back in for Tom Petty, and then back out again.  I saw one show on TV last night, and the audience looked young, but to my eye the great mass of the crowd was middle aged women, which I thought was kind of funny.
Sb3

And here is the last play and confetti burst:

It was a great, perhaps historic game, and we loved the whole experience.  Now back to work to pay those bills.

So, here are the [sports-related] events on my must-see list I have tackled:

Baseball all-star game, Superbowl, game at Fenway, game at Yankee stadium, 16th hole at the Phoenix Open, center court at Wimbledon, BCS Championship game, Daytona 500, personally playing golf at St. Andrews, Big 10 home football game, Rose Bowl, Cowboys home game [update: and an original 90s-vintage American Gladiators filming live]

Yet to be tackled:

the Masters, Packers home game, game at Wrigley, NCAA final four, SEC home football game (maybe Tennessee or the cocktail party), maybe at World Series, maybe a World Cup

What else?

Notice: All the World's Major Problems Have Been Solved

Clearly, all the major problems of the world have been solved, because Arlen Specter wants to focus the Senate's time on the New England Patriots' violation of NFL rules for which they were severely punished and which violations in no way tread on any law, just NFL rules.

In a telephone interview Thursday morning, Senator Arlen Specter,
Republican of Pennsylvania and ranking member of the committee, said
that Goodell would eventually be called before the committee to address
two issues: the league's antitrust exemption in relation to its
television contract and the destruction of the tapes that revealed
spying by the Patriots.

"That requires an explanation," Specter
said. "The N.F.L. has a very preferred status in our country with their
antitrust exemption. The American people are entitled to be sure about
the integrity of the game. It's analogous to the C.I.A. destruction of
tapes. Or any time you have records destroyed."

Please, to the friends of Arlen Specter:  It is time for an intervention, before the man hurts himself any more. 

Next Up:  Kay Bailey Hutchison calls Jerry Jones in front of Congress to explain why the Cowboys gave up on the running game in the fourth quarter of this year's playoff game against the Giants.

The New Stadium Lie

This week, we in Phoenix are supposedly getting our payoff for subsidizing the hapless Arizona Cardinals with a billion dollar football stadium that is used for its intended purpose (football games) for 33 hours per year  (3 hours per game times 11 games:  2 Cardinals pre-season, 8 home regular season, Fiesta Bowl).  In exchange we get a nicer stadium (if I were to want to see a Cardinals game live) but worse TV options (because instead of the best game of the week, we have to see our home team).

The big selling point, the cherry on top of the sundae the NFL uses to push new stadiums, is a Superbowl.  Which is in town this week.  So far, the huge economic stimulus has not really poured into our household, but I guess I need to be patient.  Anyway, the timing seems good to link this article, which comes via the Sports Economist:

If you build it, they will come. This is usually the mantra of those in
favor of publicly financed sports stadiums, including the current
proposal for a new soccer stadium in Chester. In this case they
are visitors whose spending would turn devastated cities and
neighborhoods into exciting destination points. Local schools,
merchants, and residents all would benefit as municipal coffers swelled.

There's only one problem with this scenario. It's not true. Never has been. They
do come, but cities are not saved. Over the past two decades, academic
research has generated literally hundreds of articles and books
empirically challenging the alleged economic wonders of new stadiums,
even when they're part of larger development schemes. I have been
studying and writing about publicly financed stadiums for more than 10
years and cannot name a single stadium project that has delivered on
its original grandiose economic promises, although they do bring
benefits to team owners, sports leagues and sometimes players....

Why, then, given the overwhelming academic research challenging
stadium-centered economic development do political leaders (if not
average citizens) still support such projects? In a just-released
article in the Journal of Sport and Social Issues, my colleagues and I
studied media coverage of 23 publicly financed stadium initiatives in
16 different cities, including Philadelphia. We found that the
mainstream media in most of these cities is noticeably biased toward
supporting publicly financed stadiums, which has a significant impact
on the initiatives' success.

This bias usually takes the form of uncritically parroting stadium
proponents' economic and social promises, quoting stadium supporters
far more frequently than stadium opponents, overlooking the numerous
objective academic studies on the topic, and failing to independently
examine the multitude of failed stadium-centered promises throughout
the country, especially those in oft-cited "success cities" such as
Denver and Cleveland.

I can attest to the latter.  During the run up to various stadium-related referenda, the media was quite rah-rah for the stadium subsidies.  In fact, on radio, several talk show hosts denigrated voters who opposed the stadium subsidies as "stupid old retired people."  I remember calling in to a couple of talk shows opposing the stadium bills and being treated like a Luddite.

My article on sports team relocations and stadium subsidies as a prisoners dilemma game is here.

Thanks, Trial Lawyers

Because of the all-to-prevalent theory (which may become even more common if Jon Edwards becomes our next AG) that every accident must be the fault of the nearest person with deep pockets, I wasted an hour today.

I visited the NFL experience today with my son.  The NFLX is a kind of football-themed fair or amusement park that the NFL sets up near the site of each Superbowl  (HA HA NFL -- I said it.  I said "Superbowl" and not "the big game."  Come and get me).  After waiting in a reasonable line to enter, we found that to play the games (e.g. throw the football through a hoop) every participant (read 10,000+ people) had to individually fill out and sign a liability waiver and get a wristband attesting to the fact.  There were about 16 clerks at work, but it still was about an hour-long wait. 

It struck me that the NFL could have come up with a much better process.  Why not have people with Internet access (about everyone, since almost 98% seemed to be there with tickets they bought on the internet) print out the waiver and bring it with them already filled out?  The manager on-site claimed that Arizona state law and the Arizona AG required that the process proceed the way it did.  I give that explanation about a 50-50 between being correct and just covering their butt for something stupid.

Anyway, once signed, we had a good time at the event, and it was well worth the effort.

Admission That Was A Long Time in Coming

The Seattle Supersonics have finally admitted what rational folks have known for a long time:  Billion dollar municipal stadiums are just taxpayer subsidies for already-rich players and owners, and do nothing for local economic development. Here is what the Sonics ownership stated in court papers (part of a case where they are trying to break their lease in Seattle):

"The financial issue is simple, and the city's analysts agree,
there will be no net economic loss if the Sonics leave Seattle.
Entertainment dollars not spent on the Sonics will be spent on
Seattle's many other sports and entertainment options. Seattleites will
not reduce their entertainment budget simply because the Sonics leave,"
the Sonics said in the court brief.

...Rodney Fort, a
professor of sports management at the University of Michigan, who has
criticized the economic-impact claims made by pro-sports teams, called
the Sonics' latest argument "the best chuckle" he's had in a long time.

Municipal stadium funding and team relocation blackmail as a prisoners dilemma game here.

My son learned of one additional downside this year to subsidizing an expensive stadium for the hapless Cardinals.  He is a huge Cowboys fan, and there was to be a really good matchup in regular season this year that would be televised nationally (I can't remember which game, maybe the Packers regular season game).  We did not get to see the game, because the local network was obligated to show the Cardinals game instead.  If you have no team, you always get the best game on TV.

Nothing New Under the [Rising] Sun

Sixty-six years ago today, the Japanese attacked Pearl Harbor, which turned out to be about as smart of a strategic move as taunting the New England Patriots just before the game.  During subsequent years, there was an inevitable investigation into why and how the US got caught so flat-footed, and who, if anyone, was to blame.

Decades later, revisionist historians reopened this debate.  In the 1970's, not coincidently in the time of Watergate and lingering questions about the Kennedy assassination and the Gulf of Tonkin, it was fairly popular to blame Pearl Harbor on ... FDR.  The logic was (and still is, among a number of historians) that FDR was anxious to bring the US into the war, but was having trouble doing so given the country's incredibly isolationist outlook during the 1920's and 1930's.  These historians argue that FDR knew about the Pearl Harbor attack but did nothing (or in the most aggressive theories, actually maneuvered to encourage the attack) in order to give FDR an excuse to bring America into the war.  The evidence is basically in three parts:

  • The abjectly unprepared state of the Pearl Harbor base, when there were so many good reasons at the time to be on one's toes (after all, the Japanese were marching all over China, Germany was at the gates of Moscow, and France had fallen) could only be evidence of conspiracy.
  • The most valuable fleet components, the carriers, had at the last minute been called away from Pearl Harbor.  Historians argue that they were moved to protect them from an attack known to be coming to Pearl.  They argue that FDR wanted Pearl to be attacked, but did not want to lose the carriers.
  • Historians have found a number of captured Japanese signals and US intelligence warnings that should have been clear warming of a Pearl Harbor attack.

I have always been pretty skeptical of this theory, for several reasons:

  • First, I always default to Coyote's Law, which says

When the same set of facts can be explained equally well by

  1. A massive conspiracy coordinated without a single leak between hundreds or even thousands of people    -OR -
  2. Sustained stupidity, confusion and/or incompetence

Assume stupidity.

I think it is more than consistent with human history to assume that if Pearl Harbor was stupidly unprepared, that the reason was in fact stupidity, and not a clever conspiracy

  • The carrier argument is absurd, and is highly influenced by what we know now rather than what we knew in December of 1941.  We know now that the carriers were the most valuable fleet component, but no one really knew it then (except for a few mavericks).  Certainly, if FDR and his top brass knew about the attack, no one would have been of the mindset that the carriers were the most important fleet elements to save.
  • I find it to be fairly unproductive to try to sort through intelligence warnings thirty years after the fact.  One can almost ALWAYS find that some warning or indicator existed for every such event in history.  The problem occurs in real-time, when such warnings are buried in the midst of hundreds of other indicators, and are preceded by years of false warnings of the same event.
  • I don't really deny that FDR probably wanted an excuse to get the country in the war.  However, I have never understood why a wildly succesful Japanese attack on Pearl Harbor was more necessary than, say, an attack met strongly at the beach.  I can understand why FDR might have allowed the attack to happen, but why would he leave the base undefended.  The country would have gotten wound up about the attack whether 5 ships or 10 were destroyed.

It is interesting how so much of this parallels the logic of the 9/11 conspiracists.  And, in fact, I have the same answer for both:  I don't trust the government.  I don't put such actions and motivations past our leaders.  But I don't think the facts support either conspiracy.  And I don't think the government is capable of maintaining such a conspiracy for so long. 

There Goes the Killer App. for Vista

We are rapidly coming up on the first anniversary of Vista, and it has been a very rocky year for Microsoft.  New releases of an OS are always difficult, but many users have really turned up their nose on Vista.  My experience has been much the same as everyone else's:  Applications run slower in Vista (I know because I had a system set up to dual boot and A/B tested a number of applications).  Networking, particularly wireless networking, is much less stable than in XP.  Good drivers STILL don't exist for many legacy hardware devices, including may graphics cards.  I ran into any number of quirks.  The most irritating for me was that a laptop communicating with a printer via wireless network would lose connection with the printer every time the laptop was shut down in a way that could only be rectified (as confirmed by MS customer support) by reinstalling the print driver every time I wanted to use it.

Most computer NOOBs probably never noticed, not having anything to compare Vista with and only using their computers for a narrow range of functionality (ie email and internet browsing).  However, many of us who are more comfortable with computers and who rely on our computers as an important tool have either avoided buying Vista computers (Dell, for example, still sells a lot of XP computers) and/or have taken the time to roll back their Vista to a dual boot system or even XP only  (which I explain here).  Which may explain why standalone XP packages are better sellers on Amazon than Vista.

For gamers, most of whom tend to be power users, Vista has been nothing but a negative, slowing games down and requiring use of buggy graphics card drivers (Microsoft crows that they get fewer customer service calls on Vista than XP, which may be, but I can gaurantee, from browsing gaming boards, that gaming companies get swamped with Vista calls from gamers who can't get the game to run on Vista). 

Looming over all of this, though, has been one word:  Crysis.  Gamers have been lusting after this game for over a year, with its promise of knock-out graphics and game-play.  To this end, Microsoft did something clever.  It updated its DirectX graphics engine in Vista to revision 10, and included in it all kinds of new capabilities that would really make a game look fantastic.  MS decided, either for technical or marketing issues, not to ever release these features on XP.  If you wanted DirectX 10 games, you had to upgrade to Vista.  Over the last year, graphics card makers have been releasing hardware to support DirectX 10.  Crysis was set to be the first game that would really take advantage of DirectX 10, and many hardcore gamers upraded to Vista solely on the promise of running Crysis maxed out with the new DirectX 10 features.

Well, Crysis was released a few weeks ago.  You may think I am building up to say it sucked, but just the opposite is true.  It is absolutely fantastic.  Easily the most visually stunning thing I have ever seen running on my PC.  First-person shooter games are not really my favorite, but I have thoroughly enjoyed the game.  (here is a trailer, but unlike most trailers, the game really looks like this in gameplay, maybe better due to limited resolution on YouTube.)  Click below for larger screenshots:
264396_full_2

266410_full_3

But here is the interesting part.  I keep my system state of the art.  I have close to the fastest Intel multi-core processor currently made running with two of the newest Nvidia graphics cards (8800GT's) running ganged together in SLI mode (don't worry if you don't know what all that means, just take my word for it that it is about as fast as you can get with stock components and air cooling). Crysis, like most graphics games, can have its settings changed from "low", meaning there is less graphics detail but the game runs faster, through "med" to "high" and "very high".   Only in the latter modes do the new features of DirectX10 really come into play.  So I ran the calibration procedure the game provides and it told me that I needed to set the game to "medium!"  That's not an error - apparently everyone else in my position who have a large monitor with high resolutions had about this experience.  I can set the game to higher modes, but things really slow down.  By the way, it still looks unbelievably awesome on Medium.

The designers of Crysis actually did something kind of cool.   They designed with Moore's law in mind, and designed the highest game modes for computers that don't exist today, but likely will in a few years.  So the game (and more importantly the engine, since they will likely sell the engine as a platform for other game makers to build their games atop) has some built-in obsolescence-proofing.

But lets return to Vista and Crysis being billed as a killer app.  As it turns out, none of the directX10 features are really usable, because no one can turn the graphics engine up high enough with their current hardware.  Worse, in a game where users are trying to eek out any tweek they can to improve frame rates and graphics speed, Crysis runs demonstrably slower on Vista than XP.  Finally, those who have run the game in its higher modes withe DirectX 10 features (presumably at the cost of low frame rates) have found the actual visual differences in the DirectX 10 graphics to be subtle.  The game boards are a total hoot, as folks who upgraded to Vista solely for Crysis are wailing that their experience on Vista is actually worse than on XP.

Wow, Media Sees Dumb Lawsuit for What it Is

In the earlier days of this blog, I used to post links to a lot of insane lawsuits.  The lawsuits just keep coming, but I have lost the energy to keep posting such stupidity.  And besides, Overlawyered does such a good job and seems to have infinite patience. 

But it was worth noting a silly shareholder suit that the media actually seems to have sniffed out for what it is:  Pure garbage.  For those who are not aware, there are a group of law firms who immediately file suit against any company whose stock drops by more than a few percent.  Bill Lerach, soon to be taking up residence in jail, used to keep a whole bullpen of folks on a sort of retainer to hold shares in numerous companies, so he instantly had someone close at hand who could file suit when any stock drops.  And since stocks go up and down, often in ways that the company itself has no control over, this leads to a lot of lawsuits.

Recently, the maker of Crocs sandles apparently had an IPO, had its stock price shoot up, and then had its stock price fall back when the company could not sustain its previous torrid growth pace.  Al Lewis of the Denver Post takes it from there:  (HT Overlawyered, of course)

Anybody who purchased stock in
Niwot-based Crocs Inc. between July 27 and Oct. 31 should not join the
class-action shareholders lawsuit that was recently filed against the
company and its stock-dumping executives.

Instead, they should look themselves in the mirror and admit two things:

      

I look ridiculous in these plastic shoes.

      

Anybody
who would pay an average of more than $60 a share for a company that
makes ugly plastic shoes deserves to take a hit in the stock market.

He continues:

Crocs and its officers also allegedly
misrepresented or failed to disclose their distribution problems in
Europe and their rising inventory levels, the lawsuit alleges. They
also failed to disclose that sales of their hole-riddled plastic clogs
were suddenly becoming more of a seasonal item. Imagine that! Sandals
seasonal? Who knew?

By the way, if you really want your head to explode, take a minute a think about shareholder lawsuits.  A group of shareholders are suing the company for a fall in the stock price.  Who do you think pays?  Why, current shareholders!  Though I do not accept the "logic" of these suits, if one were to accept their logic, then the most guilty party is the stockholder who sold the plaintiffs their stock just before the drop.  But these folks are exactly who will NOT owe any money on the suit.  They are no longer owners.  The people who will pay will be the owners of the stock at whatever time the suit settles, likely many people who bought in after the plaintiffs did.  The only real winner when the shareholders pay themselves such a verdict are the lawyers, who rake off 30%.  More on this bizarre situation here.

Update:  I will have to think about this more, but it kind of reminds me of a prisoners dilemma game in which the prosecutor gets a monetary bonus that increases with longer prison terms.

Maybe They Should Have Tried Fox After All

Though I did not pay any attention to it, apparently the Clinton camp managed to stack the CNN Las Vegas debate doubly or triply in their favor, including having most all the talking head on CNN analyzing the debate be folks who are currently or have in the past been on the Clinton payroll.

Whatever.  I don't think it is any news that the Clintons play the politics game hard and well, though its amazing to me that she is embraced by those who complain about Bush being secretive and power-hungry.

Anyway, this did make me wonder.  The Democratic candidates were up-in-arms earlier this year that a debate (I think this one) was to be hosted by Fox, presumably because Fox is seen as part of the vast right-wing conspiracy.  But given that there were no Republicans at the debate, I wonder if Obama and company now regret this decision.  Because it is almost certain that whatever problems Fox might have, Fox would certainly not have stacked a debate in Hillary's favor.

Gun to the Head in Seattle

David Stern is putting a gun to the head of Seattle taxpayers:

NBA commissioner David Stern is putting the screws to Seattle
in his attempts to get the community to provide taxpayer subsidies that
are lucrative enough to keep the team from departing the "Emerald City"
to even greener fields in Oklahoma.

Stern blasts city officials
and the overwhelming majority of voters in the city for passing a law
requiring (gasp!) that any funds used to help build an arena earn the
same rate of return as a treasury bill. "That measure simply means
there is no way city money would ever be used on an arena project,"
Stern said. Effectively, Stern has just confirmed what sports
economists have known all along: taxpayer spending on sports
infrastructure is unlikely to provide significant returns on the
investment.

We went through the exact same thing here in Phoenix, with various outsiders and city politicians chiding the voters to voting down taxpayer funded palaces for the Cardinals and Coyotes  (eventually, they found a sucker in the local city of Glendale).  In the past, I have written about sports team and corporate relocations as a prisoners dilemma game.

To see this clearer, lets take the example of Major League Baseball
(MLB).  We all know that cities and states have been massively
subsidizing new baseball stadiums for billionaire team owners.  Lets
for a minute say this never happened - that somehow, the mayors of the
50 largest cities got together in 1960 and made a no-stadium-subsidy
pledge.  First, would MLB still exist?  Sure!  Teams like the Giants
have proven that baseball can work financially in a private park, and
baseball thrived for years with private parks.  OK, would baseball be
in the same cities?  Well, without subsidies, baseball would be in the
largest cities, like New York and LA and Chicago, which is exactly
where they are now.  The odd city here or there might be different,
e.g. Tampa Bay might never have gotten a team, but that would in
retrospect have been a good thing.

The net effect in baseball is the same as it is in every other
industry:  Relocation subsidies, when everyone is playing the game, do
nothing to substantially affect the location of jobs and businesses,
but rather just transfer taxpayer money to business owners and workers.

   

The Sports Economist writes about this move in the context of another economic game:

Indeed this is a classic example of the time inconsistency problem for
which Finn Kydland and Ed Prescott (my graduate school macro
professor!) won the Nobel Prize in 2004. Stern would like to threaten
Seattle with the permanent loss of their NBA team in order to secure
taxpayer concessions now. But should the team move, the NBA has every
reason to want to back off its previous threats and relocate a team
back into to the area due to the size, location, and income levels of
the city. Even having lost a team, Seattle will likely remain a better
candidate for a successful franchise than smaller and poorer cities
such as New Orleans or Memphis. Certainly Seattle should not fall for
Stern's bluster.

Freaking Finally

We have a strict no-console-game policy in the household.  Generally, when I see how other people's kids spend their time, I am pretty happy that we have stuck to this.  However, it has meant no Guitar Hero in the house. 

Well, finally, Guitar Hero III is out and is available in a PC version, though of course Amazon is back-ordered right now.

Chanelling Milton Friedman

For years I have tried to find the right words to express my frustration with the notion that the problems encountered with government planning and technocratic meddling was merely the fault of having the wrong humans in charge, rather than of the system itself.  For example. I wrote:

Today, via Instapundit, comes this story about the GAO audit of the decision by the FDA to not allow the plan B morning after pill to be sold over the counter.
And, knock me over with a feather, it appears that the decision was
political, based on a conservative administration's opposition to
abortion.  And again the technocrats on the left are freaked.  Well,
what did you expect?  You applauded the Clinton FDA's politically
motivated ban on breast implants as a sop to NOW and the trial
lawyers.  In
establishing the FDA, it was you on the left that established the
principal, contradictory to the left's own stand on abortion, that the
government does indeed trump the individual on decision making for
their own body
  (other thoughts here).
Again we hear the lament that the game was great until these
conservative yahoos took over.  No, it wasn't.  It was unjust to scheme
to control other people's lives, and just plain stupid to expect that
the machinery of control you created would never fall into your
political enemy's hands.

Well, it turns out that Milton Friedman said it better decades ago.  Megan Mcardle reminded me of this passage from Free to Choose:

The error of believing that the behavior of the social organism can be
shaped at will is widespread. It is the fundamental error of most
so-called reformers. It explains why they so often feel that the fault
lies in the man, not the "system"; that the way to solve problems is to
"turn the rascals out" and put well-meaning people in charge. It
explains why their reforms, when ostensibly achieved, so often go
astray.

The Long Drain

The long drain begins:

When Kathleen Casey-Kirschling signs up for
Social Security benefits Monday, it will represent one small step for
her, one giant leap for her baby boom generation "” and a symbolic jump
toward the retirement system's looming bankruptcy.

Casey-Kirschling "” generally recognized as the
nation's first boomer (born in Philadelphia on Jan. 1, 1946, at
12:00:01 a.m.) "” won't bankrupt the Social Security system by taking
early retirement at 62. But after her, the deluge: 80 million Americans
born from 1946 to 1964 who could qualify for Social Security and
Medicare during the next 22 years.

The first wave of 3.2 million baby boomers turns
62 next year "” 365 an hour. About 49% of the men and 53% of the women
are projected to choose early retirement and begin drawing monthly
Social Security checks representing 75% of the benefit they'd be
entitled to receive if they waited four more years to retire.

If Social Security were a well-managed private insurance program, this would be a non-event.  The returns on investments over the last 40 years have been tremendous, such that a private fund could easily start paying out benefits based on boomers' premiums.

Unfortunately, as a government program, the funds in the program are subject to the whims of politicians.  And it turns out that boomers have elected politicians who have spent all the money that has been contributed to Social Security (despite USA Today in their graphics trying to continue the myth that a meaningful "trust fund" actually exists as anything but a bunch of government IOU's to itself.)  So, because Congress has spent all the past contributions, an action that would have had any private manager jailed decades ago, Social Security must now run itself as a Ponzi scheme, where current contributions pay off retiree benefits.  This game runs out somewhere in the 2020's.  And this all despite the fact that Social Security pays out a negative rate of return.