Ubiquitous conspicuousity

At a park to weeks ago, a musician started singing “Somewhere Over the Rainbow.” I was talking with an acquaintance, who immediately pulled out his smart phone, clicked on a few buttons and brought up the movie “The Wizard of Oz” to play on his 1 ½” screen. He explained that he loved the movie and that he could watch it wherever he wanted. Impressive technology? Of course, but watching “The Wizard of Oz” (or any movie) is never such an important thing that I'd need to carry it in my pocket. Was my acquaintance really trying to tell me about his love of "The Wizard of Oz," or was he subconsciously trying to communicate something else to me?img_8221 For many years we’ve been trying to convince ourselves that electronics manufacturers were right that we HAD to have their gadgets, including 50" screen HD TVs. For decades, we’ve been convincing ourselves that electronic audio manufacturers were correct that we “needed” to plunk down $2,000 for high-end audio components with thick copper cables lest the sound degradation would piss us off too much to enjoy our music. But here we are in an age where small is cool, and we’re somehow able to enjoy full length movies on tiny lo-res phone and iPod screens. And people are somehow surviving with small low-res youtube videos. And consider that the music almost everyone is enjoying on their mp3 players is sampled at a noticeably lower rate than CD-quality. And consider that CD quality sample rates are severely degraded compared to live music. But somehow we’re now OK with far less than perfect because small and convenient and high tech are cool. I’m in the process of reading Geoffrey Miller’s riveting new book, Spent: Sex, Evolution and Consumer Behavior. We’ve all heard of conspicuous consumption (originally coined by Veblen). Miller refines and extends Veblen's concept, setting out the differences between conspicuous waste, conspicuous precision and conspicuous reputation as signaling principles. Cars exemplifying these three principles would be the Hummer (waste), Lexus (precision) and BMW (reputation). Conspicuous precision “can be achieved only through time, attention, and diligence, while conspicuous reputation (brand names) reflects a “vulnerability to social sanctions.” Most products exhibit each of these three forms of “signal reliability.” Other signaling principles including conspicuous rarity (exotic pets or pink diamonds) and conspicuous antiquity (ancient coins). I find it interesting how much we fool ourselves about how much we “need” products based on these qualities. We “needed” large high-quality electronic audio and visual players until it became a much more impressive display to have extremely small portable electronics. It turns out that our “need” for things isn’t ultimately about need for the product’s qualities. It’s about trying to impress others with our ability to differentiate and afford various types of products. A few years ago, I was looking at stunning images of a coral reef on the big new HD TV sets at Costco. I asked my wife whether we should think about “moving up” to a HD TV set. She asked me: “How often have you been watching a movie on our 25-year old TV set when it occurred to you that you weren’t enjoying the show because the screen was not huge or high definition? I answered truthfully: never. We still have our quarter-century old TV set and I’ve never again been tempted to “move up.” But I also admit that if I were trying to impress people today, I wouldn't be able to do it by showing off my TV. I wouldn’t be signaling that I can notice and afford fine engineering tolerances. I might show off my TV nonetheless, to signal my frugality, but my old TV wouldn’t be impressive to modern-day Americans, given that it is not (today) an expensive signal in any sense—I could buy a TV like mine very cheaply indeed at a garage sale. Miller's book is a powerful reminder that our "need" to buy SO many things is often not about the things themselves, but about the need to tell the world something about ourselves in order to increase our social status or to attract mates. Miller has a lot to say about the differences among the types of conspicuosity. For instance, Aristocrats eschew conspicuous waste. They tend to hone in on conspicuous precision and reputation. For more on Miller’s theory, see this book review at the NYT.

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More clarity Needed on Obama healthcare; Something, Anything Needed from Party of “NO!”

I’m concerned about some lack of clarity on health care issues from the Obama administration but, my concern is nothing compared to my disgust for the despicable declarations of “NO!” and nothing from the Republicans in Washington. Chief among the prevaricators is Republican Roy Blunt who reports there will be no GOP alternative to any Democratic plan for the reform of America’s broken healthcare system. All we’ll hear about is “socialism” and more lies about how you won’t be able to choose your doctors or will lose your current coverage. You can see more about the President’s plan here: First, “socialism” is government control of the means of production. Second, no one is proposing that the entire medical “industry” be taken over by the federal government. The current legislation will allow for options to the current system. The current system is one for which I found an apropos description below [the following well-written post was published under the headline of “Still scary…” in the Letters section at the website of the St. Louis Post-Dispatch is reprinted with permission]:

Dear Mr. President: I am writing you today because I am outraged at the notion of involving government in healthcare decisions like they do in other countries. I believe healthcare decisions should be between myself and my doctor. Well, that is not strictly true. I believe healthcare decisions should be between myself, my doctor, and my insurance company, which provides me a list of which doctors I can see, which specialists I can see, and has a strict policy outlining when I can and can’t see those specialists, for what symptoms, and what tests my doctors can or cannot perform for a given set of symptoms. That seems fair, because the insurance company needs to make a profit; they’re not in the business of just keeping people alive for free. Oh, and also my employer. My employer decides what health insurance company and plans will be available to me in the first place. If I quit that job and find another, my heath insurance will be different, and I may or may not be able to see the same doctor as I had been seeing before, or receive the same treatments, or obtain the same medicines. So I believe my healthcare decisions should be between myself, the company I work for, my insurance company, and my doctor. And the separate claims review team that will be looking over my treatment. My health insurer might have flagged me as someone who needs a lot of healthcare, and who is therefore costing the company money. Needing to use the insurance you paid for is naturally a suspicious activity: that means that a special review team will look over my paperwork, seeing if there is any vaguely plausible reason for the company to be rid of me. They will look for loopholes in my application, irregularities in the paperwork my doctor filled out or any other situations which, like magic, mean that all the money I have paid for health insurance premiums was in fact irrelevant, null and void, and they don’t have to pay a single cent of claims because I defrauded them by neglecting to remember that I had chicken pox in sixth grade, not fifth, or that what I presumed was a bad cold in 1997 was in fact maybe-possibly-bronchitis, and I can’t possibly expect to be covered for any lung-related complaints since then. I suppose I cannot complain too much; after all, this is a crack squadron of employees whose pay is determined by how much they can reduce the healthcare costs incurred by the company. It would be irresponsible for them to not look for such loopholes. So, Mr. President, I write to you with this demand: we are not a socialist country, one which believes the health of its citizens should come without the proper profit-loss determinations. I believe that my healthcare decisions should be between me, my insurance company plan, my insurance company’s list of approved doctors I am allowed to see and treatments I am allowed to get, my insurance company’s claims department, the insurance company doctors who have never met me, spoken to me or even personally looked at my files, my own preexisting conditions, my insurance company’s crack cost-review and retroactive cancellation and denial squads, my insurance company’s executives and board of directors, my insurance company’s profit requirements, the shareholders, my employer, and my doctor. Anything else would be insulting. — The Libtard 1:29 am July 26th, 2009
America needs to take better care of its citizens in critical times of need, like when we are ill. It is not any government scheme to take over the means of production to provide some basic health care for all of us. The status quo is unacceptable. If the Republicans can do no better than “NO,” it’s time for them to get out of the way. People are dying, and we can’t yet all rise from the dead.

Continue ReadingMore clarity Needed on Obama healthcare; Something, Anything Needed from Party of “NO!”

Obama’s birth certificate “dispute,” redux

Many conservatives are still yapping that Barack Obama was not born in the U.S. when an official Hawaiian birth certificate and a Hawaiian newspaper birth announcement clearly prove otherwise. The believers are ignoring evidence that disproves their claim, and bonding over what is thus an absurd claim. Maybe they'll be soon start building a new church dedicated to their article of faith that Obama wasn't born in the U.S. I do wonder whether we are seeing the mechanism by which religions are born? Check out the video below for some especially surreal moments by some desperate fringe conservatives who are clearly annoying the hell out of conservatives that still have their brains engaged. Rick Sanchez calls it right. And check out the need to recite the Pledge of Allegiance. Creepy. I really don't get it. Is there buried racism at work?

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Fat Tire’s first prize: an obsolete bike. The rationality of costly signaling.

Fat Tire Beer is holding a contest, and first prize is an old-fashioned bicycle. It is a cumbersome and heavy one-speed bike that lacks most of the useful features found on modern bicycles. What does it have going for it? Nothing much worth my while. I buy my bicycles for performance, features and functionality, not looks. Others would say that the Fat Tire bicycle has an unique style worth coveting. I know a woman who recently paid a large amount of money for a "retro" bicycle much like the one in the photo. She bragged about her bicycle only in terms of what it looked like, and seemed to get irritated when I asked her whether she would miss some of the useful features found in most modern bicycles, features such as multiple gears, high-tech gear-shifting, feather-light frame, and front or rear suspension. It appears that Fat Tire Beer is looking for customers like the woman I just described, people who are obsessed with the looks of a bicycle rather than its functionality. I recently posted on Geoffrey Miller's terrific new book, Spent. At page 97, Miller discusses the "signaling value" of many modern products. Miller points out that modern corporations work hard to avoid competition based upon objective features that can be compared. Fat Tire Beer, for example, did not choose to offer a modern bicycle that could easily be compared to the many other bicycles currently being sold. Instead, the company chose to offer an old-fashioned bike that would signal a certain trait for the owner and his/her friends/acquaintances. Modern corporations

Use advertising to create signaling systems--psychological links between brands and the aspirational traits that consumers would like to display. Although these signaling links must be commonly understood by the consumer's socially relevant peer group, they need not involve the actual product at all. The typical Vogue magazine ad shows just two things: a brand name and an attractive person . . . there is a hidden rationality at work--the rationality of costly signaling. What matters in most advertising is the learned association between the consumer's aspirational traits and the company's trademarked brand name--the fountainhead of all profitability.
Therefore, don't waste your time trying to figure out what obsolete styles of bicycles have to do with beer. The bicycle featured on the label of Fat Tire Beer has nothing to do with the taste or quality of the liquid in the bottle. Rather, buying Fat Tire Beer is an opportunity for a consumer to display to others that the consumer can afford a premium beer. The bicycle on the label gives consumers a further opportunity to suggest that tradition is more important than functionality. Those who buy Fat Tire Beer let the beer do their talking for them: "I'm a person who values tradition over functionality." That's my guess. I wouldn't accept that cumbersome and sparsely-featured contest bicycle even if someone offered it to me for free, because I know less-costly, less wasteful and more effective ways of convincing others that I often value tradition. It involves hard work and no gimmicks. It requires that you willingly put your life under a microscope, that you repeatedly show rather than tell, and that you show your values in ways other than through conspicuous consumption.

Continue ReadingFat Tire’s first prize: an obsolete bike. The rationality of costly signaling.