Big Is Beautiful – The New Yorker

American politicians may not agree on much these days. But they are unanimous in their veneration of small business.

Meanwhile, the countries with the lowest percentage of workers employed by small businesses are Germany, Sweden, Denmark, and the U.S.—some of the strongest economies in the world.

This correlation is not a coincidence. It reflects a simple reality: small businesses are, on the whole, less productive than big businesses, and though they do create most jobs, they also destroy most jobs, since, while starting a business is easy, keeping it going is hard. This is true around the world.

Small may be beautiful. It’s just not all that prosperous.

Source: Big Is Beautiful – The New Yorker

 

Small business is not that prosperous for *society*. We would all be collectively worse off if we had to rely on 100,000 general stores each owned by a sole proprietor and fed by its own piddling supply chain rather than mostly rely on big box retailers, department stores, and supermarkets for most of our shopping while relegating the sole proprietorship businesses to remote locales or niche markets. It is ridiculous that the in-city corner store charges $2.50 for the same bottle of seltzer that costs $0.49 at the suburban grocery store, and I doubt that the grocery store is using seltzer water as a loss leader or that the in-city store is making a killing with an 80% profit margin. The costs really are that different and collectively everyone in the economy generates (through higher productivity) and receives (through higher wages and lower prices) more material value with the former than the latter in every case where the scale of the enterprise is available.

That said, I’ll agree that it is really hard to beat the work atmosphere and lack of corporate bureaucracy of a small business. Still, the pay is lower and I’m sure I am a less productive employee/member of society (if for no other reason than my work is going to help fewer customers, though I am sure that financing and leverage also play into that). Thus, I agree with the article and the quote:
“Small may be beautiful. It’s just not all that prosperous.”
— Small is more likely to be fun, friendly, inspirational, exciting, etc. but it is also an expensive way to conduct an enterprise and collectively society is materially richer and more productive with larger companies in many if not most cases.

Debt By Degrees – The New Yorker

In the past decade, Americans took out close to five hundred billion dollars in student loans, and now collectively owe close to a trillion dollars in …

Source: Debt By Degrees – The New Yorker

 

I would add that the rising cost of college combined with the rising wage premium of that education/piece of paper is probably helping to decrease American’s wage and class mobility, as well as seriously hampering the finances of those still under the burden of tens of thousands of dollars in student loan debt.

Dentist charges patient for negative Yelp reviews, suit says – CNET

A New York dentist is accused of making patients sign away their copyright to negative reviews and then billing a patient $100 a day for posting unhappy reviews on Yelp. The dentist is now being taken to court.

Source: Dentist charges patient for negative Yelp reviews, suit says – CNET

 

This brings up some interesting questions about what it is okay to post online, where you may post it, and what other people (especially companies) may be allowed to do about it.

It’s Not About Cookies: Privacy Debate Happening At Wrong Level

Some form of digital privacy regulation in the US is about 90 percent certain in the coming year. In Europe, where privacy rules are much more stringent, the details of new consumer protections are currently being worked out on a practical level.

Source: It’s Not About Cookies: Privacy Debate Happening At Wrong Level

 

I think the outlook for digital privacy laws in the U.S. is much more dismal than the hope portrayed, but the title and idea are correct and important. I think relatively few people are bothered by businesses installing security cameras and taping events on their premises. Everyone should be upset if the security camera companies collated their tapes, used facial recognition technology to track everyone, and then ran data mining algorithms on the results.

The due-process-free assassination of U.S. citizens is now reality – Salon.com

Without a shred of due process, far from any battlefield, President Obama succeeds in killing Anwar al-Awlaki

Source: The due-process-free assassination of U.S. citizens is now reality – Salon.com

 

The thing that bothers me about it is that, well, how do I know he was bad? The media? We know that governments have historically been able to bend/manipulate media reporting. I feel that is why we have a judicial system; my fellow citizens are only bad if they have charges brought against them and those charges are upheld in court, which frees me to assume that the average American I encounter on the street is a good person that I can trust more than distrust (e.g. for directions to a parking structure or major thoroughfare). That is, of course, idyllic and we live in an imperfect world where this is not always the case, but that doesn’t mean we should discard or overrule the system even when we think it is good to do so, because eventually it won’t always be the case that we were right to demonize and extra-judicially hunt down a fellow citizen. I’m not even sure that we as a nation can afford much more distrust of each other given that there are good statistics correlating honesty, trustworthiness, and trust with productivity, happiness, and safety, and I for one believe that there is almost certainly a directional causality from the former to the latter.