Boring but important: getting rich and staying rich through government regulation in Mexico

As more sectors of the economy become subject to government regulation, young people especially should know about the economic opportunities and hazards that are presented. “Mexico’s Richest Man Confronts a New Foe: The State That Helped Make Him Rich” (New York Times) is about Carlos Slim, one of the world’s richest people.

[Separately, I’m recently back from some of the world’s most competitive markets for telecommunications. In Denmark, if a neighborhood is served with fiber optics it is possible to get a symmetric 1 Gbit/second service for about $80/month (100 Mbit/second service at $50/month is available without fiber). See also this ranking for how countries around the Baltic Sea clutter the top-10 for average connection speed (see also this article on Baltic Internet connection throughput).]

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Stupid EU question: Why is it European?

One of the folks I talked to in Paris is a science writer who lives in Oxford. He bemoaned the stupidity of his Brexiting countrymen (and women). His main argument was that the UK transferred much less to poorer EU states than rich US states did to poorer US states. Thus he couldn’t understand why Brits whined about contributing to, say, the Greeks.

This raises a simple question: why was the EU set up as an inter-country welfare system to begin with? If getting together in a union makes everyone richer wouldn’t the poorer states be happy to join without handouts?

The harder question for me to understand is why the union is fundamentally tied to geography. With container shipping it costs less to send a product from Korea to England than from England to Italy by rail. Did someone in England actually decide that it would be better to be clustered with no-growth high-debt Italy than with high-growth low-debt Korea?

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Biking around Paris as a tourist

Paris is mostly flat and home to a public bike sharing system (Velib). Does it work to join Velib for a day or a week and use the service? Given the fearsome reputation of Parisian drivers, I was pleasantly surprised at how easy it is to get around Paris by bike. Although the city is nothing like Copenhagen (see “Danish happiness: bicycle infrastructure”) there are marked-off bike lanes on a lot of streets. Sometimes cars waiting for a red light block these lanes but usually it is possible to weave around. Thus at rush hour a bike is actually somewhat faster than an Uber.

The Velib kiosks have instructions in English.

One nit is that if you’re over about 5’9″ tall it is likely that the seat can’t be raised high enough for long-term biking comfort and efficiency.

2016-07-22 18.35.56

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Can you call others racist and/or sexist while concentrating on the skin color of Olympic athletes?

One of my Facebook friends is a Boston-area business manager. A staple of his postings is decrying the racism, ignorance, and stupidity of Donald Trump supporters (none of whom, presumably, he has met in person). Here are a few examples:

At this point I have nothing more to say about Trump. The man is deranged and his views despicable and morally reprehensible. The open question now is whether Republicans, especially the leadership, will explicitly repudiate him or go down in history as moral cowards. [After this posting announcing “I have nothing more to say about Trump” the rate of postings regarding Donald Trump was unchanged.]

Not being complacent but I don’t think Trump will win. There are far far more stupid white males in the US than I had thought, but there are not enough.

Male Airhead. There are actually more of them. [reference to an article about Clint Eastwood]

It still amazes me that Trump is a serious contender for President. He has to be the most morally vile and disgusting human being I have come across in public or private life. [After this one I verified that he has not actually ever met Donald Trump.]

Hillary. You go Girl. [how does he know that Hillary Clinton continues to identify as female, much less as a “girl”?]

I Michelle Obama am very proud of ObamaCare. We are able to provide health care to everyone who needs it, including Donald Trump who is seriously mentally ill. [after changing his profile picture to one of a young-looking Michelle Obama.]

It is not enough to defeat Trump. He must be defeated resoundingly. Let this be our first and last flirtation with fascism. We have to show ourselves and the world that we have not forgotten the ideals that make us a great country and the envy of the world.

The Fuhrer appears. Sieg Heil. [during the Republican National Convention]

… When we have a cancer in our midst, pointing it out is not saying that all cells in our body are cancerous. ‪#‎BlackLivesMatter‬ protesters are not anti-cop. They are anti-cancer. Americans we have a serious problem. Let’s wake up and own it.

Why the strong reaction against Hillary? Is it because she is smart, eloquent, and tough as nails? We don’t like strong women, do we? [i.e., people who disagree with him regarding the merits of an Argentina-style election of the former leader’s spouse are sexist]

In other words, pretty much standard fare for any Facebook member with a Massachusetts academic connection (see “Haiku contest: Summarize your Facebook feed”). Yet here is a recent one that confused me:

Blacks are not supposed to be ballerinas: Misty Copeland. Blacks are not supposed to be swimmers: Simone Manuel. Blacks are not supposed to be gymnasts: Simone Biles. Amazing, Amazing Ladies.

If it is in fact other Americans who are racist, why is this righteous Hillary Clinton supporter even noticing the skin color of the Olympic athletes that he has seen on television? Have any of the athletes cited skin color as a factor in their training, performance, or competition? (This story says that “[Biles when questioned about her skin color] was kind of visibly annoyed” and “Biles resisted being tokenized for her race.”)

[And, separately, why the cisgender-normative assumption that “Misty”, “Simone”, and “Simone” continue to identify as “ladies”?]

Finally, why are we so thrilled when Americans win Olympic medals? So far in this summer’s games it looks like Australians are the best athletes. With a population of 23 million they’ve earned 17 medals. With a population of 320 million, Americans have earned 40 medals. In other words, per million population, we’ve collected medals at a rate of 0.125 while the Australians are at 0.74.

Readers: Have you watched the games? What have been the best parts as far as you’re concerned and is there any way to watch these parts online or on demand somehow? (In our household we decided to take an 18-year break from all of the television programs that we used to love…)

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Albert Marquet and the price of non-collaboration with prevailing politics

If you’re in Paris between now and August 21, be sure to visit the Albert Marquet exhibit at the city’s modern art museum. My Facebook feed is heavily populated by comparisons of Donald Trump to Adolf Hitler. The biography of Marquet (Wikipedia) presented by the museum shows a heavy price paid by the artist for dissociating himself from the Nazi movement. In 1941 Marquet withdrew from a show because of the government’s requirement to provide a certificate of “non-membership of the Jewish race.” Apparently disgusted with his fellow French citizens for their collaboration with the German during World War II, in 1946 Marquet refused the Legion of Honour. Though not Jewish, that same year he contributed work to a benefit sale for Jewish children. Partly as a result of these protests, Marquet never achieved the success that his quality of painting would have justified.

If Donald Trump actually does prove to be just like Hitler, how many of us will have the courage to reject Trumpism(?) and pay the career consequences? [And, separately, what would be the tenets of Trumpism to which Americans would have to pledge fealty?]

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French broadband service

When it comes to Internet service to the home, as with health care, it seems that the U.S. has found a way to do it less efficiently than the French.

In some of the ancient buildings of Paris it is tough to get a good “last mile” wire into apartments and therefore symmetric speeds of roughly 15 Mbits are the limit (I measured this with the Ookla Speedtest app on my phone at a private apartment in a classic building). For newer buildings it is generally possible to get fiber optic service of 50/50 Mbits for roughly $40 per month (compare to $80 in the U.S.?).

One area where life in France takes a painful and inconvenient turn is Internet service for visitors. A Verizon iPhone somehow cannot get onto the LTE/4G networks in France. One pays $10/day on top of the ordinary monthly bill and then is subjected to 3G cellular data. The French apparently don’t trust some portion of their citoyens because it is illegal to run an open WiFi network. Coffee shops, restaurants, and hotels are required to set up a WiFi system such that people register and such that device-URL logs are kept for at least six months. Generally the device is identified in the log by MAC address. A Starbucks near Rue Cler was using Q-Spot by SpotCoffee to collect the required data and the service was throttled to 5 Mbits down and a painful 0.5 Mbits up. Our hotel, the Cler Hotel, used the same service and the result was even more painful: 5 Mbits down and 0.2 to 0.3 Mbits up (not enough for reliable Skype or FaceTime).

[What do people make of the failure of U.S. Verizon iPhones to connect to 4G networks in France? People say that it is due to a difference in the frequencies allocated for LTE in the different countries. However, I thought that all iPhones were now created equal and that it was essentially one worldwide product.]

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Human Resources and Labor Law on the High Seas and the best jobs on a cruise ship

In Paris we ate dinner next to a “worldwide HR” executive for a cruise line conglomerate. I had thought that for non-U.S.-flagged cruise ships the companies were free to hire workers from anywhere in the world on any terms that were mutually agreeable. It turns out that this labor market is one of the most heavily unionized and regulated. Essentially every class of worker has its own union, including the predominantly Indonesians and Filipinos who work as part of the “hotel” staff. On top of this are UN regulations that are roughly 10 years old. A company that doesn’t adhere to these, which were introduced primarily to prevent abuses in the freight shipping world, will be a pariah. Compensation, benefits, and working conditions for essentially every job on a big cruise line are negotiated with a union. There is only one set of rules that the cruise line can’t navigate, however: “We try not to hire any Americans to work on-board because of all of the legal and regulatory headaches,” she explained.

I did meet a few Americans onboard our Royal Caribbean cruise around the Baltic Sea. One was in the IT department and works 6-8 months. How many days off does he get during this period? “None. It is 7 days a week, two 5-hour shifts per day,” he replied. He shares a room (porthole on deck 2) with one other crew member. Isn’t that a tough schedule? “People from India and China can do it.”

Waiters and hotel staff also talked about working 6-8 months in a row and then having 2 months off. Senior officers, on the other hand, work 10 weeks on then have 10 weeks off. Cruise ship jobs appeal to people from at least 64 countries, the number of nationalities we had on board the Serenade of the Seas (compare to 52 nationalities for the passengers). Workers seemed generally satisfied and cheerful, e.g., when encountered during their off-duty hours in the Deck 12 gym (huge and with fantastic views of the sea).

[Note that some jobs on the ship are done by employees of contractors, e.g., shipboard photography is handled by a vendor. These folks don’t seem to be in a union.

One caveat: Cruise ship employees who are married and/or have children should be careful about choosing a home base. In states or countries that like to have a primary parent/second parent (a.k.a. “winner parent” and “loser parent”) outcome and use a “primary historical caregiver” standard for deciding which parent wins, the cruise ship job can lead to a guaranteed loss of a divorce, custody, and/or child support lawsuit. Even if the cruise ship job is abandoned after a divorce, the loss of custody will be permanent in most places (see Real World Divorce for which states set up a winner-take-all battle for the house, kids, and cash and also for which states cement a winner parent’s status permanently).

I chatted one evening with an officer who asked what I had learned on the cruise and I responded with “I’ve learned about divorce litigation in Kuwait.” (I’ll cover that in a future posting!) This officer made the cataclysmic mistake of moving from his native Civil law country to settle in the U.S. The American wife decided to sue him for divorce, custody, child support, and alimony. She automatically wins the divorce part of the lawsuit due to the fact that every U.S. state is essentially a “no-fault” or “unilateral divorce” jurisdiction. She also more or less automatically won everything else. Because he’d been away for those 10-week blocks of time there was no possibility of him being determined to be the “historical primary caregiver” and therefore entitled to be the “primary parent” going forward. So she got a house, the child, child support, and alimony. Via court order he will now be doing involuntarily what he used to do voluntarily (i.e., working for 10-week blocks, sometimes so intensively that he doesn’t get off the ship for weeks at a stretch). “I don’t mind supporting my child,” he said, “but why do I have to keep working to support an adult simply because she wasn’t working during part of the marriage?” Had he been married with children in his original homeland, he would have had a statistically smaller chance of being sued (with no alimony and limited child support, the wife would have had to get a job after divorcing him). He would have paid legal fees at a fixed percentage of assets (in his particular case the legal fees are on track to consume 100% of the couple’s savings, though not the home equity). See the section on Germany, for example. [See also the “Practical Tips” chapter, in which there is a section regarding the tendency of active duty military personnel to lose the winner-take-all battle in a U.S. family court.]

As far as I can tell, the best job on the ship seems to be working in the shop (e.g., selling Advil for 50 cents per pill). I talked to a young Chilean and he explained that the shop is always closed whenever the ship is in “territorial waters or in port.” Thus he is free to enjoy the ports in the same way that a paying passenger would. The company lets him jump onto shore excursions if they aren’t full. He doesn’t get free Internet, though, which he considers to be a good thing for productivity: “Whenever we can get Internet we are always texting instead of doing our jobs.” He said that pay is about the same as it would be if he were to work in a shop in Chile, though obviously without the free room and board as well as travel.

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The world’s richest people do not have a growing share of wealth

Thomas Piketty (see “Book review: Piketty’s Capital”) predicted that, absent a wealth tax administered by a powerful world government, the world’s richest bastards would run away with all of the wealth on the planet. This is partly because, he claims, rich people can earn a higher return on investment than average people. This Wall Street Journal article summarizing research by “Wealth-X” shows the opposite trend, however:

Billionaires controlled 3.9% of the world’s total household wealth in 2015, slightly down from 4% in 2014, according to Wealth-X, a consulting group that uses public records and research staff to manually track the habits of ultra-high-net-worth individuals, or people valued at more than $30 million.

The article also contains some fun stuff on the evolution of language:

For most billionaires, however, it takes more than an inheritance to join the so-called three-comma club, according to the census; 87% of billionaires, up from 81% in 2014, made the majority of their fortunes themselves.

(Note that the latter part of the above quote also tends to discredit Piketty; if it is all about inheritance why is a growing percentage of the richest bastards self-made?)

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