• Blogging for the Holidays: Wrap-up

    The ninth and final post in my Blogging for the Holidays project. Just a little wrap-up post to tie a bow around the whole thing.

    Well, it’s hard to believe but my two weeks of vacation are coming to a close and tomorrow morning I return to the grind. It says a lot about my mental state before my break that I feel like another two weeks would be welcome, but alas, until I manage to earn myself a sabbatical or, some day, retirement, I suppose this will have to do.

    As for this blogging project, I’m really glad I set myself this writing goal! For folks who have their own blog but struggle to get motivated to write, this approach–setting a queue of topics over a fixed period of time and then tackling them steadily–was very motivating and rewarding! I definitely recommend it as a fun way to get inspired.

    I was particularly happy with how a theme emerged across the various posts. And I felt pretty darn smug when, in the January 1st episode of Slate Money, Stacey-Marie Ishmael, a writer and journalist who’s much smarter and articulate than me, summarized the theme of this blog series: the pandemic is making the invisible visible. I have to admit, when I heard her say that, I felt a rush of validation that maybe I was onto something!

    So, where did I end up clocking in? Well, over the course of the last two weeks, counting short posts, I wrote a grand total of approximately 13700 words. Counting only long form posts, roughly 12900 or about 800 words a day. Not bad at all! And I know of at least one person who actually read most of them!1

    Anyway, for folks who weren’t following this project as it was being published and want to check it out, here’s a list of the long form posts in the order in which they were written:

    For those few people who actually stuck it out and read these posts, either as they were written or afterward, thank you! I hope they were interesting and worth the time.

    And for those folks who’ve heard me going on about these topics throughout 2021 and still read these posts, a special shout out! You’re a trooper!2

    Finally, I hope everyone had a happy holidays in spite of all the difficulties of the past two years, and I truly believe this next year we’ll see things start to get better.

    Have a fantastic 2022!

    1. Thanks love! You are nothing if not patient, supportive, and a glutton for punishment. Then again, considering who you’re married to, this shouldn’t be that surprising. 

    2. Thanks again, love! 

  • Grappling with Labour Markets

    The sixth post in my Blogging for the Holidays series, some thoughts on labour and market forces, and what COVID has done to upend an old dynamic.

    In my introductory post for this series I rattled off a number of topics that seemed especially interesting to me in light of the last two years of COVID, one of which being the relationship between capital and labour. A light and simple topic, obviously, but it seemed worth a post.

    Standing in the shower I was thinking about my way into this subject, and then it dawned on me that my post on supply chains, and in particular the topic of supply-demand dynamics, made for a very nice segue into this topic, particularly given the conversations I’ve been having this year regarding the labour market.

    I’m going to start off with a basic thesis that I suspect some might find a bit controversial, maybe even mildly offensive, but that (as I understand it) is pretty well understood in the world of economics: Labour is a market, and salaries are our price for our labour. This means that, absent government intervention, salaries are a function of supply and demand, along with all the other forces that make a market function.

    This is not what anyone deep down wants to believe!

    Naively, I think we’d all like to believe that the value we pay for something reflects what that thing is, in some way, intrinsically worth.

    But what makes an iPhone valuable? We know from Apple’s filings that they’re achieving something like 30% gross profit margins on their consumer devices. That means we’re paying over a third more for the device than is reflected in the total costs of raw materials, labour, shipping, and so forth. And yet people still buy those devices, believing them to be worth the additional cost.

    What about, say, a collectible baseball card? Intrinsically, the card is worth pennies in paper and ink. And yet there is a market in which such a thing could sell for hundreds or thousands of dollars.

    The reality is that prices reflect not just pure utility, but rather something more intangible.

    To offer just a little taste of just how intangible, consider the idea of the Keynesian beauty contest:

    This would have investors pricing shares not based on what they think an asset’s fundamental value is, or even on what investors think other investors believe about the asset’s value, but on what they think other investors believe is the average opinion about the value of the asset, or even higher-order assessments.

    In other words, our estimate of the value of a good isn’t necessarily even based on our own idea of its intrinsic value, but rather our idea of what other people believe to be its intrinsic value.

    Meta!

    Well, the same is true of labour, and the forces unleashed by COVID that have turned markets for goods and services upside down have had similar impacts on the labour market as well.

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