Category Archives: Economics

Miscellaneous economy stuff

Trust Us

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It seems that Alphabet and Mastercard have hooked up: Mastercard seems to have agreed to share its customers’ shopping habits with Alphabet’s Google in return for Google’s separately accumulated data on those same customers.  The subhead on Bloomberg‘s piece is instructive:

Google found the perfect way to link online ads to store purchases: credit card data

The hookup is this:

For the past year, select Google advertisers have had access to a potent new tool to track whether the ads they ran online led to a sale at a physical store in the US. That insight came thanks in part to a stockpile of Mastercard transactions that Google paid for.

And that Mastercard freely sold.

Who knew the deal had been done?  Almost nobody, especially including the owners (morally if not legally) of those data.

[M]ost of the two billion Mastercard holders aren’t aware of this behind-the-scenes tracking. That’s because the companies never told the public about the arrangement.

Then this:

[T]he deal, which has not been previously reported, could raise broader privacy concerns about how much consumer data technology companies like Google quietly absorb.

Gee.  Ya think?

It also raises the broader privacy concern of how much personal that data primary collectors, like credit card companies, are busily peddling to the Googles of the world behind our backs.

A carefully anonymous Google spokeswoman offered this:

Before we launched this beta product last year, we built a new, double-blind encryption technology that prevents both Google and our partners from viewing our respective users’ personally identifiable information.  We do not have access to any personal information from our partners’ credit and debit cards, nor do we share any personal information with our partners.

Trust us.  Trust us both.

Sure.

Governance by the Left

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It’s only light bulbs, so who cares?  The Know Betters of the EU care, and the subhead on the Deutsche Welle article at the link says it all.

The sale of halogen lightbulbs is being banned across the EU, as LEDs are touted as greener alternatives. Advocates insist the move will save consumers money in the long run and lead to lower carbon emissions.

If that were true, then LEDs would have no trouble competing in a free market and supplanting halogens quite rapidly and freely.

However.

Ordinary citizens are just too grindingly stupid to be trusted to make the correct decisions.  Irmela Colaco, Energy Efficiency Project Leader for the German environmental group BUND:

It’s high time that the planet and consumers were protected from these power guzzlers[.]

Because consumers are just slack-jawed idiots who cannot protect themselves—or who cannot be trusted to protect themselves in the right way.

This is the Europe our own Leftists want us to emulate.

On Keeping the Senate Informed

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…to the level Senators deem appropriate.  In a Wall Street Journal article about the fate of the newly negotiated trade agreement between the US and Mexico, there was this plaint from one Senator among others:

Lawmakers from both parties have complained that the Trump administration has broken with precedent by not regularly briefing with Capitol Hill and leaving them largely in the dark about crucial details of the negotiations. “Who knows what’s happening,” said Sen. Bob Corker (R, TN), the chairman of the Foreign Relations Committee, with a shrug.

That’s all to the good. You guys leak like a sieve, not out of carelessness, but deliberately for personal political gain. And those leaks also often blow up negotiations in progress. But your leaks are more important.

Now the thing will be submitted to you, and you’ll have all the time you need to study it and vote it up or down.

Get over yourselves.

A Minimum Wage

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David Neumark, an Economics Professor at the University of California, Irvine, thinks he has an idea on how to implement “fairly” a minimum wage.  Unfortunately, his idea isn’t even good enough to be bad satire. He wants to

provide a tax credit of 50% of the difference between the prior minimum wage and the new minimum wage for each hour of labor employed. It would phase out at wages above the new minimum wage and, as wage inflation erodes, the value of the new minimum wage.

Thus, taxpayers would pay a significant fraction of each minimum wage—folks in New York would pay into the minimum wage of Seattle’s residents, for instance.  Worse, the employer in question would no longer be fully engaged in the wages of his own work force.

With this, Neumark thinks he can

transform the minimum wage into a more sensible redistributive policy.

This, of course, is a nonsensical oxymoron (excuse the redundancy). The only sensible redistributive policy, the only moral redistributive policy, is a voluntary payment of value for value received. That’s an exchange that can only be determined by the participants.  It’s also an exchange that keeps the employer and his workers fully and solely answerable to each other.

Voters think income inequality is too high, and politicians who want to keep their jobs must respond.

No, we don’t, and politicians who want to keep their jobs must recognize that.  Politicians must stop treating their poorer constituents like inanimate tools whose sole purpose is vote harvesting, and instead them like the human beings they are.