# economics

[tobiasdrake]

Fun fact: Laws for which the penalty is a fine aren't laws; They're economic calculations.

If the law would penalize me $5,000 for hiring 15-year-olds to work in my factory but I could save $10,000 in wages by doing so, then the best economic choice I could make would be to hire the child workers and pay out the fine.

In this scenario, the fine isn't a deterrent; It's the price it would cost me for electing to conduct my business that way. If the benefits outweigh the costs then not breaking the law would be fiscally irresponsible of me. Of course I'm going to break the law. Why wouldn't I?

This is how capitalism engages with government.

[catchymemes]

[mostly-funnytwittertweets]

[thoughtportal]

[mysharona1987]

The French really don’t fuck around.

[reasonandempathy]

One of the most personal, saddest things about living in America is the summertime.

There is 0 reason for American adults not to have a summer break. I can only say this with a full throat so loud, but other countries have policies and laws that give adults summertime.

It is not a joke to say France is kind of shutdown for August. There are over a dozen countries that have enough mandatory, legally required leave available to take an entire month off, or more. PLUS mandatory PAID holidays.

It's Brazil and Russia (ooh scary BRIC countries outgrowing the US and coming for us). India AND China give up to 2 weeks mandatory vacation leave, plus sick leave on top.

It's Afghanistan (20 days). It's Angola (22). It's Argentina(25) and Armenia (25) and Australia (20). It's Cambodia (technically unlimited; you can eventually get 15 or 17 days per month vacation).

That us on top of mandatory PAID public holidays. Cambodia can somehow manage 27 mandatory paid holidays plus upwards of 18 vacation days per year and going up from there, and we in the US can't even manage mandatory paid holidays.

We don't even get paid on Christmas and Memorial Day. And even trying to convince some people, let alone politicians, that everyone should get paid on Christmas is unfair to compare to pulling teeth.

Please. Please. I want to have a better life. I want you to have a better life.

I want you to not miss Summer Break. Because France and Cambodia don't.

[queerism1969]

[typhlonectes]

[qsycomplainsalot]

[phoenixyfriend]

I feel like a good shorthand for a lot of economics arguments is "if you want people to work minimum wage jobs in your city, you need to allow minimum wage apartments for them to live in."

"These jobs are just for teenagers on the weekends." Okay, so you'll use minimum wage services only on the weekends and after school. No McDonald's or Starbucks on your lunch break.

"They can get a roommate." For a one bedroom? A roommate for a one bedroom? Or a studio? Do you have a roommate to get a middle-wage apartment for your middle-wage job? No? Why should they?

"They can live farther from city center and just commute." Are there ways for them to commute that don't equate to that rent? Living in an outer borough might work in NYC, where public transport is a flat rate, but a city in Texas requires a car. Does the money saved in rent equal the money spent on the car loan, the insurance, the gas? Remember, if you want people to take the bus or a bike, the bus needs to be reliable and the bike lanes survivable.

If you want minimum wage workers to be around for you to rely on, then those minimum wage workers need a place to stay.

You either raise the minimum wage, or you drop the rent. There's only so long you can keep rents high and wages low before your workforce leaves for cheaper pastures.

"Nobody wants to work anymore" doesn't hold water if the reason nobody applies is because the commute is impossible at the wage you provide.

[charlesoberonn]

[nando161mando]

Gary Stevenson: ‘Economists have been all wrong about almost everything for 15 years now’

[catchymemes]

[thymewayster]

Really good Twitter thread originally about Elon Musk and Twitter, but also applies to Netflix and a lot of other corporations.

Full thread. Text transcription under cut.

John Bull @garius

One of the things I occasionally get paid to do by companies/execs is to tell them why everything seemed to SUDDENLY go wrong, and subs/readers dropped like a stone. So, with everything going on at Twitter rn, time for a thread about the Trust Thermocline /1

So: what's a thermocline?

Well large bodies of water are made of layers of differing temperatures. Like a layer cake. The top bit is where all the the waves happen and has a gradually decreasing temperature. Then SUDDENLY there's a point where it gets super-cold.

That suddenly is important. There's reasons for it (Science!) but it's just a good metaphor. Indeed you may also be interested in the "Thermocline of Truth" which a project management term for how things on a RAG board all suddenly go from amber to red.

But I digress. The Trust Thermocline is something that, over (many) years of digital, I have seen both digital and regular content publishers hit time and time again. Despite warnings (at least when I've worked there). And it has a similar effect. You have lots of users then suddenly... nope. And this does effect print publications as much as trendy digital media companies. They'll be flying along making loads of money, with lots of users/readers, rolling out new products that get bought. Or events. Or Sub-brands.

And then SUDDENLY those people just abandon them. Often it's not even to "new" competitor products, but stuff they thought were already not a threat. Nor is there lots of obvious dissatisfaction reported from sales and marketing (other than general grumbling). Nor is it a general drift away, it's just a sudden big slide. So why does this happen? As I explain to these people and places, it's because they breached the Trust Thermocline.

I ask them if they'd been increasing prices. Changed service offerings. Modified the product.

The answer is normally: "yes, but not much. And everyone still paid" Then I ask if they did that the year before. Did they increase prices last year? Change the offering? Modify the product?

Again: "yes, but not much."

The answer is normally: "yes, but not much. And everyone still paid." "And the year before?"

"Yes but not much. And everyone still paid."

Well, you get the idea. And here is where the Trust Thermocline kicks in. Because too many people see service use as always following an arc. They think that as long as usage is ticking up, they can do what they like to cost and product.

And (critically) that they can just react when the curve flattens But with a lot of CONTENT products (inc social media) that's not actually how it works. Because it doesn't account for sunk-cost lock-in.

Users and readers will stick to what they know, and use, well beyond the point where they START to lose trust in it. And you won't see that. But they'll only MOVE when they hit the Trust Thermocline. The point where their lack of trust in the product to meet their needs, and the emotional investment they'd made in it, have finally been outweighed by the physical and emotional effort required to abandon it. At this point, I normally get asked something like:

"So if we undo the last few changes and drop the price, we get them back?"

And then I have to break the news that nope: that's not how it works.

Because you're past the Thermocline now. You can't make them trust you again.

[incognitopolls]

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[mysharona1987]