Saturday, October 29, 2022

Economics: Why Does The Biden Administration Hate The Consumers?


 (Drivebycuriosity) - Believe it or not, inflation is read hot but the Biden Administration wants to fight against low prices! Biden protege Lina Khan, who leads the powerful antitrust authority Federal Trade Commission (FTC), wants to
reanimate the Robinson-Patman Act from 1936 (twitter  bloomberglaw americanactionforum.). The initiators aimed to prevent big chains to sell cheap in order to protect small and less efficient competitors (wikipedia   hbr.org). The law was seldomly enforced because it hurts consumers, especially those with low income, fuels inflation and punishes efficiency (slowing economic growth).

FTC chair Kahn & board members Bedoya & Slaughter, who control the FTC, dont`t care about consumers, inflation, efficiency & economy growth ( promarket  fee.org). They want to use Robinson-Patman as an additional weapon in their crusade against big corporations ( drivebycuriosity  bloomberg).  

Khan is a radical who became famous when she - still a law student - published a paper where she lamented that Amazon`s prices are too low (!). She claimed that the company is a monopoly or will become one, ignoring history, economics and the existence of Walmart, Target, Ebay, Shopify and the growing number of other online sellers  (yalelawjournal ).

Alvaro Bedoya, the newest member of the FTC board and Khan supporter, wants to punish stores for providing the lowest possible prices to consumers (CarlSzabo ). The commissioner claims that efficiency is unfair because efficient companies hurt inefficient competitors (ftc.gov ).  

Kahn & Co. declare low prices as harmful for competitors, ignoring their advantage for consumers. Enforcing Robinson-Patman would prevent big retailers — such as Amazon, Target, Walmart and other chain retailers - to force their suppliers to sell to them relatively cheap ( americanaction ).  

When I lived in Germany I bought food and many other things at Aldi which offers very cheap products - and millions of other consumers did so. Aldi has low prices because the retailer is very efficient and forces her suppliers to deliver cheap products. Millions of consumers - including myself - benefited from Aldi´s low prices. This way Aldi, Liedl and similar supermarket chains keep a lid on Germany´s food prices. The suppliers of Aldi, Liedl and similar chains adapted to the requirements and became themselves very efficient and cost conscious in order to keep their prices low. 

If the Biden administration would forbid Amazon, Target, Walmart & Co. to purchase for low costs it would force them to hike their prices - which would pour gasoline into inflation and reduce the standard of living for low income groups who depend on discount stores. The change also would reduce the pressure to produce efficiently and with low costs and would so encourage waste and inefficient behavior. Not of concern for Khan & Co. Apparently they want to extend Big Government - what ever it may cost. Consumers be damned!

Thursday, October 27, 2022

Contemporary Art: Paola Angelini `s Newborn From Ashes & Fire @ Lyles & King New York


  (Drivebycuriosity) -  Contemporary art is full of discoveries. On a recent walk through Manhattan`s Chinatown I spotted an exhibition with the awesome works by Paola Angelini @ gallery Lyles & King. The show is called "Newborn from Ashes & Fire" (lylesandking ).

 


 


I am impressed by Angelini´s strong flamboyant brush strokes which created fierce scenarios. But let the images speak for themselves.

 

 



 

To be continued

 

Wednesday, October 26, 2022

Books: The Antitrust Religion By Edwin Rockefeller

 


(Drivebycuriosity) - It seems that Antitrust is en vogue. Politicians, bureaucrats, journalists, lawyers and social media influencers call for more regulatory oversight of America`s companies. President Joe Biden signed an executive order to sharpen the government controls over private enterprise and increased funding for America´s antitrust agencies Federal Trade Commission (FTC) & the Antitrust Division of the Justice Department. There is a cult of professional followers - opinion makers in journalism and many intellectuals - who feel antipathy toward commercial activity and serve as a priesthood to carry out the ceremonial function of antitrust. Most Americans believe that antitrust laws preserve our free market system, protect consumers from rapacious corporations, and ensure competition in the marketplace. Many believe that antitrust "is the law that protects small business from multinational corporations” ( twitter).

"The Antitrust Religion" by Edwin S. Rockefeller, published in 2007, gives a sharp, analytical and sometimes humorous overview of America´s antitrust history ( amazon). The author, a former chairman of the American Bar Association’s Section of Antitrust Law and member of the FTC staff, describes "how blind faith in antitrust has led to confusing and arbitrary enforcement".

America`s antitrust politics started with the Sherman Act of 1890 which aimed to break trusts, meaning very powerful corporations. Since then antitrust enforcement led to the split of Standard Oil and caused long running crusades against General Motors, Microsoft, IBM and many other big corporations. Today´s trustbuster are going against Walmart, Apple, Meta, Google, Amazon and many other corporations who´s success is disliked by less efficient competitors & hated by populist politicians.


              Bad Economics


Below are some of Rockefeller´s statements:

Antitrust is a term which can`t be translated in foreign languages. Antitrust is not a coherent set of rules. Experts are required to interpret it. 

Antitrust is based on "faith that government can protect us from evils". The trustbusters want to fight market power, which is  "an imagined power, like witchcraft". 

Antitrust is "a mystique;  "an intuitive mix of law, economics, and politics, a mystical collection of aspiration, beliefs, suspicions." 

Antitrust is based on bad economics and on false interpretation of the history of American business. It is "a religious faith" and "an intuitive mix of law, economics, and politics; a mystical collection of aspirations, beliefs, suspicions, presumptions, and predictions". 

Lawyers are unable "to distinguish between contracts that promote competition and those that suppress or destroy competition... the result has been to leave to judges, and officials at the Justice Department and FTC power to make arbitrary decisions on a subjective basis". Lacking any coherent, ascertainable rule in the written antitrust statutes, judges and other government officials make arbitrary decisions using antitrust doctrines based on faith not easily overcome by reason, logic, or empirical data. 

"Antitrust is a sort of poetry".


The antitrust history moved like a pendulum. Theodore Roosevelt promoted a public relations image of being a trust buster. During the closing days of the Eisenhower administration the antitrust community was debating how to protect competition without protecting competitors. The Justice Department began an investigation of IBM in 1967 and filed a complaint in 1969, alleging that IBM had monopolized general purpose digital computers. By 1980 the antitrusters aimed to protect small business and tried to prevent concentration.  

Standard Oil went from a 85% Market Share to 60% before Antitrust Legislation was used against them.

 


 

             Based On Quicksand

 

During Reagan´s regency the pendulum swung back and antitrust activity focused more on consumer welfare, like low prices & product quality. The antitrust crowd followed Judge & Law Professor Rober Bork`s  statement that "the only legitimate goal of American antitrust law is maximization of consumer welfare"

It was rumored that one prominent Washington law firm had to borrow money to meet their monthly payroll. The firm that former Justice Department antitrust chief Herbert Bergson had started in the early 1950s began downsizing and eventually disappeared. For a while the "big business chimera" was largely forgotten.

But the chimera came back, leading to a years long crusade against Microsoft. The success of the software company came at the expense of some of her competitors - losers in the marketplace who sought government action against a winner. 

Rockefeller defends mergers: "There is some economic evidence that, where one or two firms dominate a market, the creation of a strong third firm enhances competition." Thus, prohibiting mergers may lessen competition. 

Government harassment of mergers is arbitrary and unpredictable and is done in secret and randomly driven by competitors. Merger regulation is based on "quicksand". It "lacks a firm foundation" because of "the uncertain empirical basis of existing theories for attacking mergers". In the 1960s government attorneys had the "arbitrary power to decide whether a merger will be allowed or prohibited, guided only by an irrational fear of corporate consolidation.

In cases of "predatory pricing" (selling at prices lower than those at which competitors want to sell) or "predatory buying or predatory bidding" (buying at prices higher than those at which competitors wish to buy), nothing predatory is occurring. People are simply making freely-arrived-at contracts of purchase and sale.

The multiple goals of antitrust provide psychic income to all participants by applying sinister-sounding labels to natural business activities.


 

             Sheltering Inefficient Firms

In conclusion: Antitrust resulted from Congress`desire to something even though nothing could be done. Antitrust was founded on the desire to solve a basic problem of capitalism: What to do about the losers?

The Sherman Act  reflects a hope of preserving a nation of farmers, craftsmen, and traders in small towns before industrialization  and corporate organizations transformed America ionto factories, offices and cities.

"The antitrust laws provide a vehicle for the antitrust community to carry on a useless, mischievous activity portrait as enforcement . Antitrust is"a subcategory of ideology", "a religion without a cause" and "a hoax". Rockefeller quotes Justice Abe Fortas: "Antitrust is a general sometimes conflicting statement of articles of faith and economic philosophy". A meaningless word game without merit but rewarding to those who play it well .


Antitrust "has often served to shelter inefficient firms from lower prices and innovations". Antitrust is a form of regulation that makes the economy less efficient. Antitrust attorneys, private plaintiffs, consultants, and the antitrust bureaucracy have much to gain from a continuation of antitrust and much to lose from any repeal of or reduction of antitrust enforcement.



Monday, October 24, 2022

Economics: The Law Of Unintended Consequences: When Will China Start Her Manhattan Project For Chips?


 (Drivebycuriosity) - US President Biden declared war to China, at least an economic war. He stopped the exports of advanced American computer chips and blocked the chip exports from Taiwan as well ( wired ). Bad for Baidu, Alibaba, Tencent and the complete Chinese technology sector. All these companies depend on advanced semiconductors from Nvidia, Intel and other US & Taiwanese producers. Biden threw a wrench into China´s economy & progress.

The situation reminds of Germany in WWI. Then the country was cut of from global commodity supplies, including oil. Germany was forced to develop quickly alternative sources. Therefore Germany refined coal, which the country has in abundance, into gasoline, called Leuna Benzin ( wikipedia). Other foreign materials, like rubber, were produced synthetically as well. 

I guess dictator Xi Jinpin is smart enough to see the danger for his economy. I suppose he will try to compensate the choked chip supply as soon as possible. He might get inspirations from America´s Manhattan Project, a high-speed research and development undertaking during World War II that produced the first nuclear weapons. ( wikipedia). From 1942 to 1946 the US government concentrated lots of elite scientists, engineers and immense amounts of material & money to create the nukes as fast as possible. In 2020 happened a similar undertaken: Operation Warp Speed, a federal effort to speed up the development of COVID-19 vaccinesgao.gov ).

I wouldn`t be surprised if China starts a kind of Manhattan Project - or Operation Warp Speed - to create advanced Chinese chips and replace foreign chips as soon as possible. That would need concentrating massive resources - human capital & money - for just one task as the Manhattan Project once did.

China has a lot of human capital, masses of ambitious & well educated people. It is a huge country with more than 3,000 colleges and universities ( wikipedia). The country can concentrate a vast number of physicists, mathematicians, engineers and administrators for the chip project - multiple times more than the relatively small US once did.  

I couldn `t be too difficult to reengineer advanced American & Taiwanese chips. Patent rights? Biden himself declared patent rights for irrelevant (pharmacy, vaccines  nature). It is a (hopefully still cold) war anyway.

Maybe Biden kick-started another leap of China´s rise. The law of unintended consequences.

Saturday, October 22, 2022

Contemporary Art: Graham Durward`s Shadows Luster @ Gallery Peninsula New York



 (Drivebycuriosity) - Gentrification never sleeps. New York`s arts scene is moving all the time. The art galleries are now discovering Manhattan´s Chinatown. Suddenly new art places pop up in before neglected areas. During a walk in Chinatown is discovered the Peninsula gallery (peninsulaartspace ). 

The art dealer had a fascinating show with works by Graham Durward. The exibition is called "Shadows Luster". On top of this post you can see his amazing "Light bruises shadows" (2014 -2020, 50 x 30 1/2 Inches, Oil on linen)

 



Above you follows the powerful "A resistance to the mirror”(2017, 60 x 80 Inches, Oil on linen ( two panels)) plus a detail shot.



 

 
 




 

Above follow "Screened Door 2” (2020, 36 x 24 Inches, Oil on linen); "Shadow under Summer Lace
(2020, 30 x 24 Inches, Oil on linen) & one more of these wonderful paintings




 







 

To be continued

 

Thursday, October 20, 2022

Economics: Don`t Cry For Me Britannia - Why Prime Minister Truss` Fall Is A Huge Setback

 


(Drivebycuriosity) - Today is a sad day for the UK - and for the global economy. Liz Truss resigned as Prime Minister after just 6 weeks in office. Truss wanted to reform the British economy and kick start new growth. Gone.

Truss announced the biggest tax cuts since 1972, including duties on high incomes, reduced financial regulations & immigration restrictions and wanted to allow fracking for shale gas across the U.K. High taxes reduce the initiative to work, to invest and to safe money; regulations are spreading sand into the gears of the economy and are slowing it further down.  Truss`declared: “What I am about is growing the economy,” she said. “And growing the economy benefits everyone.” She`s right, when you grow the pie then there is more for everyone.


Truss´s agenda created the hope that Great Britain could be an island in a world over over-regulation, cancerous bureaucracy and creeping socialism. 


Unfortunately - but not surprisingly - he agenda was not understood by the majority ( marginalrevolution). Her program was too revolutionary, too revolutionary for many commentators and her incompetent cabinet, which overruled Truss and cancelled her program. Truss`resignation was unavoidable. 

The populist politicians responded to vox populy (tax the Rich!) and to the already highly volatile financial markets. As a reaction to Truss`growth program UK`s interest rates jumped and the Pound Sterling tanked. As usual the financial markets are ruled by short sighted gamblers (managers of hedge funds, pension funds and other big portfolios). Those don`t care about economics and ignore the long horizon, they take short run bets and follow one stampede to another (remember the melt down from 2008?).

Truss fall is a proof that we live in an Ayn Rand world . Truth is highly smart and she understands economics! Her critics do not. But the brilliant are hated by the mediocre majority (Atlas Shrugged & The Fountainhead). The British will have to pay for the populist u-turn.

 


Contemporary Art: David Mellen @ Ivy Brown Gallery New York


 (Drivebycuriosity) - I frequently visit art galleries, museums and inspect New York`s big auctions houses when they display their huge spring & fall auctions. There I see ubiquitous pieces of abstract art and sometimes it is hard to notice any difference between the paintings. Many abstracts look the same. 

But there are some artists who are unique. One of them is David Mellen. I always can recognize a "Mellen" when I spot it (dsmstudio  1stdibs ). I enjoyed his works at Manhattan`s  BOSI Contemporary, Van Der Plaas & Ivy Brown Gallery.

David displays now three new paintings at Ivy Brown Gallery in Manhattan, parts of a group exhibition ( ivybrown). I believe these new works show his evolution. His newer works seem to me less abstract than the paintings I saw a while ago. I recognize now more flesh and subtle erotic ballets.

On top of this post you can see the wonderful wall filling  “Némésis” (2022, Diptych; two panels each 72 x 36 in (182 x 91.5) cm, Combined 74 x 72 in (188 x 182) cm, Oil on linen).





Above this paragraph follows “Taime” (2022, 48 x 48 in 122 x 122 cm, Oil on linen).

 


Above you can see “Blind” (2022, 48 x 48 in 122 x 122 cm, Oil on linen)

I am curious how David`s work will develop in the future.

 

Stay tuned

Saturday, October 15, 2022

Books: The Florentines By Paul Strathern


(Drivebycuriosity) - Florence (Firence in Italian) is a wonderful city. "The Florintines: From Dante to Galileo. The Transformation of Western Civilization" by Paul Strathern is a wonderful book ( amazon).

Strathern not only describes Florence´s struggles, rises & falls, he also narrates why & how the Italian Renaissance evolved and how the famous Florentines influenced history. The book follows the lives of people who had lived and worked in Florence and had not only shaped the development of this place, but also the history of economy & culture and so the spread of the Italian Renaissance and the advance of Western culture. The book is lively written, full with anecdotes, and reads almost like a novel.

 

Spoiler Warning: This is usually a spoiler free blog. But this about history, many facts are already well known. So below you could find some tidbits from the book. If you want to read it soon you may stop at this point.  


The author covers approximately the time span between the birth of Dante 1265 and the death of Galileo in 1642. Florence was a republic, one of the independent Italian cities which were not ruled by kings or dukes. The city competed - often military - with other powerful city states like Venice, Milan, Genoa or Naples (Napoli) and the Pope ruled Rome. Over the reported time span Florence was involved in frequent wars and often had the risk to be sacked and destroyed.

In the 13th century Florence had a population of approaching 80,000 - compared with 80,000 in London and 200,000 in Paris. The city was nominally a democracy but only a select number of its citizens had the right to vote - only males and members of the city`s guilds.

By around 1200, Florence was known as "the city of a hundred towers". Some of these where as much as 150 feet high (50 m) and contained occasional apertures in the upper stories. These towers were the home of family clans "who locked themselves as dusk felled and the streets were occupied by young hotheads". In the morning "the heavy doors at the foot of each tower would be unbarred, and the inhabitants  would emerge to go about their business". Butchers, bakers and others set up their stalls. Similarly, in later years, the money lenders would set up their benches in front of their palazzi, which were attached to their towers (They were the first bankers, and took their name from the banca, or bench, at which they conducted their business).

Over the reported time span Florence was prone to civil war. In the 13th century, if one group took a shortcut, trespassing on another´s territory, they were liable to be confronted. Fights between rival gangs were frequent, scores settled and resettled. A contemporary chronicler reported: "Citizens fought against one another, from district to district, according as the factions were, and as they had fortified their towers, whereof there was a great number in the city". By the year 1200 Florence had a chilling rate of murder, followed by revenge, with feuds frequently persisting through generations. Florence also plunged "into the larger conflict which was raging throughout northern Italy and beyond". Some aristocratic families formed an alliance with those who followed the Holy Roman Emperors, others took side with the Popes, who weren`t on good terms with the Emperor. This led to large rival groups, which tore the city apart and caused continuing military conflicts.

 

             Wealth, Freedom & Talent

 

In the 13th century Florence benefited from wool trade and manufacturing and entered an era of prosperity; and its banks began establishing branches in northern Europe to assist in financing the wool trade. The city´s currency, the fiorino dòro, began to establish itself as a reliable Europe wide currenca, further adding to Florence`s commercial success. 

Florence`s rise to an epicenter of the Renaissance was based on wealth, freedom and talent, contrary to places which were ruled by autocratic rulers like kings & dukes.  In the decade after Dante´s death (in 1321) "Florence has no less than six primary schools and foiur high schools, educating 600 pupils (including girls)". 

Florence´s economical advance benefited from a man known as Fibonacci (born in 1170 in Pisa). In the age of 15 - while traveling to the East - he discovered the Arabian decimal system, which is used today, instead of the Roman system with I,II, III, IV, V, X, XX, XL .......... The decimal system proved to be superior for calculating, making financial transactions, accounting and made banking much more easier - and helped so the rise of banks in Florence and elsewhere (nicely and elaborately explained by Strathern - one of the many advantages of this book). Today Fibonacci is known for the Fibonacci sequence - 1,1,2,3,5,8,13 - where the next number in the series is generated by adding the tow previous numbers.

Florence gained a lot from the rise of her banks which transferred money to distant cities to finance the wool trade between Florence and Bruges. The banks also managed the huge tax payments to the Popes in Rome and they later financed Europe`s kings & cardinals, often with great losses when the mighty aristocrats did not repay.

In the 16th century the Medici became the most famous banking family, of course, but surprisingly, "they never attained the size of the Bardi or the Peruzzi, the giants of the fourteenth century". Anyway the Medici bank would be founded by the 37 year old Giovanni di Bicci de`Medici in the year 1397. Giovanni was a cautious banker, anxious to consolidate rather than indulge in risk. He had learned his caution when he had worked for a bank in Rome, which lend a lot money to cardinals. "The extravagant living of these cardinals meant that many of them ran up debts they could not repay".

The advance of banking gained from the introduction double-entry bookkeeping, which was widely practised before Luca Pacioli in the year 1494 set down his explanation of how this accounting method worked. Other financial innovations included bills of exchange & letters of credit.

 

       Piracy, Rape, Sodomy, Murder & Incest


The Medici bank began benefiting from the new overseas trade from the new overseas trade links, opening branches or establishing agents as far afield as Brugen and even London, in Lyon and Avignon (for the big trade fairs), in Ancona (for enabling the shipment of fine Florentine cloth to the Levant), and in Naples and Gaeta for western Mediterranean trade. Giovanni`s years of running an international bank had led him to a deep understanding of the larger world of Italian and European politics. The Medici bailed out Pope John XXIII from charges of piracy, rape, sodomy, murder and incest - accused by would-by Popes. The grateful Pope made the Medici Papal`s bankers, so they could manage the immense wealth the Popes amassed, who were as least as powerful as the Holy Emperors. Not only could Goivanny run the most lucrative and extensive banking network in Christendom, he could also take on as many accounts of cardinals and senior members of the Church in Rome as he wishes.

 

 

         Whalebones & Sealskins

 

Early in the 15th century Cosimo de´ Medici, son of Giovanni, run the richest bank in Europe. Much of her profits came from facilitating the transfers  of Papal dues (taxes payed to the Popes) to Rome from places as far afield as Greenland and Sicily. Such transfers often involved convoluted barter, as well as exchange between currencies. Greenland paid for instance with whalebones or sealskins.

The rise of the Medici gave them political power and finally the control over Florence which they sometimes abused and meddled their finances with the city finances. Their power and ruthlessness behavior caused of course backlashes and in some periods the Medici got exiled. But early in the 16th century "by means of a series of strategic marriages", the Medici family were recognized as a leading European aristocracy. In the early 1530s, Pope clement VII arranged for his young cousin Caterina de`Medici to marry the heir to the French throne, the leading power in Europe. Caterina`s husband would eventually become his queen. When Henry II died, Catherine de Medici`s (as she was now know) effectively become the ruler of France, a position she would hold for the next forty years. 





According to Strathern Florence´s reputation also benefited from her culture: poets, sculptors, painters, scientists, writers & architects. I name here just a small selection of the many influential Florentines mentioned in the book, just the most famous of them. 

Dante, a son of Florence, who became almost immortal by writing  "The Divine Comedy", got exiled because he was involved into the notorious Emperors versus Popes conflicts.

Giotto di Bondone, known as Giotto, born around 1267, developed the art of painting by a "more measured and rational view of reality". 

Boccacaccio `s erotical Decammarone became the counterpart to Dante´s spirituell "Divine Comedy".

 

 


 

It`s  a pleasure to read Strathern´s description of how the architect Filippo Brunelleschi mastered the almost insolvable task to construct the dome for the cathedral of Santa Maria del Fiore, today a landmark of Florcence (inspired by the Roman Pantheon). Brunelleschi also was a skilled mathematician and integrated the art of painting by introducing perspective, which had been neglected by the classics and their followers. "Early Renaissance artists such as Brunellschi were expected to be well practised in a wide range of skills. Their art could extend to everything from the cutting and setting of jewels, to painting and sculpture and architecture, as well as military and civil engineering. Spezialization in such matters hat not yet fully developed, and the rebirth of classical knowledge involved the heritage of an entire culture".  

Amerigo Vespucci wasn`t an artist, but as explorer &  writer he traveled south along the coast of South America and gave the Europeans a first impression of an unknown continent, which would be named after him. Before his travels he had worked as a clerk in a Medici bank.

Sandro Boticelly, today famous for his "Birth of Venus" and "Primavera", which became central images of the early Renaissance, got sponsored by the Medici family but fell in disgrace later, got  neglected and became "grown old and useless".

 

             Career As Military Engineer

Leonardo da Vinci was born illegitimate and spoke with a common rural accent. At the height of his artistic abilities, he would choose to give up paintings altogether, in order to pursue a career as a military engineer. In an era when the dissection of human bodies was forbidden, he would explore human anatomy at a level of detail unknown to his predecessors. All of his findings were hidden in his private notebooks, like flying machines, an underwater breathing apparatus, tanks, sluice gates, time and motion studies, a machine gun and so on and on. 

Leonardo was well known in his time as both as a sculptor and an architect, though none of his sculptor has survived and no actual building can be attributed to him. When he applied for the job of a military engineer for the ruler of Milan he offered to create "mobile bridges, siege engines, cannons capable of raining a hail of stones on the enemy, tunneling devices, armoured vehicles, catapults...." At the time, Leonardo had a little more than a few speculative drawings in his notebooks. He had been commissioned by one ruler to waste his talent creating ephemera to entertain the court and its guests at various celebrations, banquets and other entertainments. These included elaborate ice sculptures, wondrous firework displays and ingenious theatrical devices. But apart from that he had largely been left to follow his own pursuits. 

Niccolo Machiavelli was born in Florence on 3 May 1469 and grew up in troubled times for Florence. With the help of sponsors he started a career as a diplomat. Apparently his diplomatic missions in war times, especially a long stay at the French court, sharpened his analytic skills and gave him political insights - the basis for his famous publications like "The Prince". His services were soon neglected and Machiavelli was thrown into prison and died as an impoverished and disappointed man.

Michelangelo Buonarroti, today known just as Michelangelo, was born in 1475. He became early member of Medici household, dining at the table with Lorenzo di Medici (the Magnificent), then the leader of the Medici family. The artist needed 3m three years to complete his famous David.     

Galileo Galilei, the first scientist of the modern era, promoted Kopernikus`s insight that the earth moves around the sun - challenging the orthodoxy - which got him the attention of Inquisition. When the brilliant mathematician was employed by universities his colleagues earned at least twice as much.

 

                   Valuable Help

 

The book has an index which spreads over 13 pages. When I click on one of the numbers behind the indexed names the Kindle version jumps to the respective chapter in the book. A very valuable help.


On takeaway is that geniuses like Dante, Boticelli, Machiavelli or Galileo where way underrated at their times and earned much less than contemporaries who are forgotten today. Often today´s celebrities finished their lives in poverty, a message I also got from a Mozart biography I read recently.

 


Thursday, October 13, 2022

Contemporary Art: Xiao Hanqiu @ Lyles & King New York


(Drivebycuriosity) - 
Contemporary art is full of discoveries. On a walk through Manhattan`s Chinatown I spotted an exhibition with the wonderful works by Chinese artist Xiao Hanqi at gallery Lyles & King. The show is called "Love stories and horror stories" ( lylesandking).

 

 


 

Above this paragraph you can see "Marching in a rainstorm of cherries and roses" (2022, oil on canvas, 35 3/8 x 47 1/4 inches, 90 x 120 cm) followed by "Swan or what else do you think it is" (2022, oil on canvas, 27 1/2 x 35 3/8 inches, 70 x 90 cm). Bellow follow more her paintings 

 

 
 


 

 

To be continued

Sunday, October 9, 2022

Economics: Does Big Tech Really Have Monopoly Power?


(
Drivebycuriosity) - Big Tech stands in the pillory. President Biden, Elizabeth Warren, Bernie Sanders and many others claim that Big Tech has monopoly power and is using it against the society. Really?

 


 

 (POTUS )

 

Governments have state authority and they use armies and their police force to enforce their authority. Corporations don´t. Governments are collecting taxes and imposing penalties. Big Tech doesn`t. Government are passing laws and are setting rules for many things in life (regulations). Big Tech doesn`t. Governments can legally imprison people. Big Tech doesn`t.  Government authorities like the IRS can force you & me to give them your data, Big Tech can not! 

Amazon cannot force you to buy with Prime. Google cannot force you to use their search machine or their maps. Apple cannot force you to use iPhones or MacBooks. Some years ago I gave up on Facebook and cancelled their service. Did I get into prison for that? Nope. There war no punishment at all.

Milton Friedman said once: "There is no way in which General Motors can get a dollar from you unless you agree to give it to the company. That’s a voluntary exchange. It can only get money from you by providing you with something you value more than the money you give it. If it tries to force something on you that you don’t want, ask Mr. Henry Ford what happened when Ford tried to introduce the Edsel. On the other hand the government can get money from you without your consent. They can send policemen to take it out of your pocket. General Motors doesn’t have that power. And that is all the difference in the world. It is the difference between a society in which exchange is voluntary and a society in which exchange is not voluntary. It’s the reason why the government, when it is in the saddle, produces poor quality at high cost, while industry, when it’s in the saddle, produces quality at low cost. The one has to satisfy its customers and the other does not" (hoover).


Biden & Co. ignore, maybe even don`t understand, that the power of corporations is always constrained by existing or potential competition (except competition is forbidden by patents or other laws. Don´t print US Dollars!). The greatest force against corporation power comes from other corporations. When a corporation has success, her rising profits attract automatically others (copycats) who want a share from the pie. There are myriads of investors, including big funds, who are happy to put their money on the next Amazon, Google, Facebook etc. It is very easy to finance to new ideas. 

 Let`s take a look on Amazon. In the year 1995, when Jeff Bezos started Amazon, he was the only one who sells online. Amazon was a monopoly. Soon copy cats appeared - animated by Amazon´s success. They all want a piece of Amazon`s pie.  

Over the years the number of other online sellers, the competitors, has been swiftly climbing. Amazon`s success story inspired myriads of copycats to offer similar services. Today Amazon is competing against hundreds of companies selling online, including giants like Walmart, Target, Best Buy & Costco, who all developed large online departments, and there are also a lot online platforms like Overstock, Shopify, Wayfair, Etsy & Ebay, who all are copying Amazon`s success. A former Amazon employee used his knowledge to start in 2012 Instacart, an online grocery with annual revenues around $1.8 billion. The online giants Facebook & Google also want a piece from Amazon´s pie and provide online shopping on their websites. And globally Amazon competes against Alibaba, Tencent (both China), Rakuten (Japan), MercadoLibre (Latin America) and others. Amazon is far away from being a monopoly.

 

 

 

 


 ( source)

 

When Steve Jobs sold the first iPhone on January 9, 2007, Apple was the only seller of smart phones, it had a monopoly. Soon others followed. Today Apple gets a lot competition for their iPhones, iPads, iMacs, MacBooks and services. Customers can purchase similar products & services from Microsoft, Google, Samsung, Huawei and a lot of other technology companies. And customers can choose between Apple´s iOS, Google`s Android, Windows other mobile operating systems.


Elizabeth Warren & Co. call Meta (mother of Facebook & Instagram) a monopoly. But the media company competes against media services like Tiktok, Snap and many others. The recent quarterly numbers from Meta show that the competitors of Facebook & Instagram are catching up (chart above). Google may look like a monopoly, by the company`s search engines are competing against similar services like Microsoft`s Bing, DuckDuck Go, Yandex & WolframAlpha. Google Maps are competing against Apple Maps, MapQuest & TomTom. And YouTube competes with Rumble and other video platforms.

And Google & Facebook offer most of their services for free. Their business models are based on advertisement. Both are fiercely competing against each against other and against myriads other ad-based companies for user numbers & advertiser billions.

 

The Internet makes it very easy to compare prices and to switch to other shops, news providers & entertainers, sharpening the competition. Customers can choose the company which has the best quality, the best service and/or the lowest prices which gives the consumers a lot power. As a result, customers have more power than the corporations.

 

Big Tech doesn`t need to be our friend, but the tech giants have to behave customer friendly otherwise they would go out of business. Adam Smith declared “it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest”. That is also true for Big Tech. If Amazon would treat their customers unfriendly, if they would sell too expensive, deliver too slow & too unreliable, then customers would buy at Walmart, Ebay or elsewhere. That is the magic of competition. Because Big Tech has to compete against others they have to behave like friends. And competition is fierce as the sharp online revenue growth @ Walmart, Shopify & Target demonstrate.

 

Biden, Warren & Co. ignore history and the facts. Customers have more power than the corporations.