kottke.org posts about business
Great, long piece from Ronan Farrow for the New Yorker on Elon Musk's considerable influence over the US government. This doesn't seem good:
There is little precedent for a civilian's becoming the arbiter of a war between nations in such a granular way, or for the degree of dependency that the U.S. now has on Musk in a variety of fields, from the future of energy and transportation to the exploration of space. SpaceX is currently the sole means by which nasa transports crew from U.S. soil into space, a situation that will persist for at least another year. The government's plan to move the auto industry toward electric cars requires increasing access to charging stations along America's highways. But this rests on the actions of another Musk enterprise, Tesla. The automaker has seeded so much of the country with its proprietary charging stations that the Biden Administration relaxed an early push for a universal charging standard disliked by Musk. His stations are eligible for billions of dollars in subsidies, so long as Tesla makes them compatible with the other charging standard.
In the past twenty years, against a backdrop of crumbling infrastructure and declining trust in institutions, Musk has sought out business opportunities in crucial areas where, after decades of privatization, the state has receded. The government is now reliant on him, but struggles to respond to his risk-taking, brinkmanship, and caprice. Current and former officials from NASA, the Department of Defense, the Department of Transportation, the Federal Aviation Administration, and the Occupational Safety and Health Administration told me that Musk's influence had become inescapable in their work, and several of them said that they now treat him like a sort of unelected official. One Pentagon spokesman said that he was keeping Musk apprised of my inquiries about his role in Ukraine and would grant an interview with an official about the matter only with Musk's permission. "We'll talk to you if Elon wants us to," he told me.
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In the Scope of Work newsletter, Anna and Kelly Pendergrast look at various trade secrets and secret ingredients — some that are still necessary, and others that are merely legendary.
When Chicago's Vienna Sausage Company moved from its original premises which were "put together in a Rube Goldberg kind of arrangement" to a brand new state-of-the-art facility, the sausages didn't taste as good. For a year and a half, the company tried to work out the problem to no avail. One day, workers were reminiscing about an ex-employee, Irving, who didn't come to work at the new factory due to the long commute required. Irving's job was to move the sausages from the filling room to the smokehouse, taking them on a half hour journey through a maze of rooms where other products were getting produced. After noting this absence, it clicked that Irving's daily trip was the secret ingredient — on his journey the sausages were getting pre-cooked and infused with flavor. The company was eventually able to recreate the sausages' original taste, building a brand new room onto the factory which emulated the properties of Irving's trip.
(via robin sloan)
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Vox talked to four television writers about how streaming and prestige TV have changed the financial picture for writers over the past 15 years, contributing to the writers strike that's been going on since early May.
Companies like Netflix, Hulu, Apple TV+, and more have given consumers an unprecedented array of films and TV shows and opened the door to new voices that don't have to adhere to mainstream network formats. On the other hand, streaming has also changed how television gets produced, the role writers play, and how they get paid. We interviewed four television writers and showrunners about how streaming has changed how they work, how their incomes have taken a hit, and why it has become harder than ever to build a career.
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In a piece from January, Cory Doctorow outlined the enshittification lifecycle of online platforms:
Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.
...
This is enshittification: Surpluses are first directed to users; then, once they're locked in, surpluses go to suppliers; then once they're locked in, the surplus is handed to shareholders and the platform becomes a useless pile of shit. From mobile app stores to Steam, from Facebook to Twitter, this is the enshittification lifecycle.
Taking note of various platforms lighting themselves on fire recently, Mike Masnick offers a list of rules for the leadership of these platforms to follow to avoid turning into dumpster fires. Here's rule #3:
Create more value than you capture. This one is not mine, but Tim O'Reilly's, and it's one that constantly sticks with me. As you're developing a business model, the best way to make sure that you're serving your users best, and not enshittifying everything, is to constantly make sure that you're only capturing some of the value you're creating, and are instead putting much more out into the world, especially for your community. Your investors will push you to capture more and more of that value, but again, when you start chasing that, you're also spiraling down the enshittification curve.
IMO, some of what is going on with Twitter & Reddit is not enshittification per se, but more of a pushback against the power of their users. (I always think of Tron in instances like these. "I fight for the users!") I think these CEOs know on some level that they're making their product worse, but bringing their user bases to heel is worth the short-term headaches.
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On his YouTube channel this week, Phil Edwards explores the question of why all pop music radio stations in the US sound the same. The short answer is consolidation caused by deregulation but the longer answer is worth watching. And if you want more information, Edwards' list of sources in the video description is pretty extensive.
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Whenever I hear someone say "it's just business" in order to magically justify some decision to ignore the humanity of individual people, I remember that it's adapted from a line in The Godfather spoken by Michael Corleone at the precise moment when he decides to become a murderous sociopath. We should maybe stop running businesses like fictional mafia families.
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This year, Kurzgesagt celebrates 10 years of making videos on YouTube and to mark the occasion, they've produced this video about their history, how their business works (their shop accounts for a large chunk of their revenue), and the values that guide their work.
Kurzgesagt's foundation was laid when Philipp, our founder, dropped out of high school as a teenager. Learning seemed daft and useless and he was not interested in anything. Until a very special teacher at a school for dropouts grabbed him by the neck. The way she taught was different. She talked about connections and the big picture. She told a story. For the first time ever, Philipp wanted to learn more without being forced. It was a key life experience.
Kurzgesagt tries to recreate this experience for you. "Nothing is boring if you tell a good story, and we try to tell these stories to spark excitement and make you want to go on and learn more. Because of the one teacher that could do this, Philipp got a high school degree, studied history and design and eventually started Kurzgesagt as a passion project, inspired by Crash Course World history.
Some of you might not be interested in something that seems pretty inside baseball, but I post a lot of Kurzgesagt's videos here and I've always admired the way they go about their business — their commitment to quality, painstaking research, an ability to admit when they got it wrong, non-extractive revenue streams with a heavy emphasis on direct reader support — and it was great to hear them talk about it.
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Now showing on American Experience on PBS: Ruthless: Monopoly's Secret History.
For generations, Monopoly has been America's favorite board game, a love letter to unbridled capitalism and — for better or worse — the impulses that make our free-market society tick. But behind the myth of the game's creation is an untold tale of theft, obsession and corporate double-dealing. Contrary to the folksy legend spread by Parker Brothers, Monopoly's secret history is a surprising saga that features a radical feminist, a community of Quakers in Atlantic City, America's greatest game company, and an unemployed Depression-era engineer. And the real story behind the creation of the game might never have come to light if it weren't for the determination of an economics professor and impassioned anti-monopolist.
You can watch the first ten minutes of the show on YouTube or see the whole thing on the PBS website.
See also The Antimonopolist Origins of Monopoly Differ from Hasbro's Official Story. (via @Kitbuckley)
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In 1955, the Ford Motor Company hired poet Marianne Moore to come up with some names for their revolutionary new car. Moore ended up submitting some amazing names, including "Silver Sword", "Intelligent Whale", "Angel Astro", and "Utopian Turtletop".
What Moore lacked in corporate nomenclature experience, she made up for in enthusiasm and imagination: she submitted over two dozen names for consideration, each one more delightful — and unlikely — than the last. In the end, the poet's suggestions were rejected and the company's chairman himself named the vehicle. Thus was born the notorious car known as the Edsel.
Ford realized perhaps too late that they shouldn't have, in fact, sent a poet — but we're sure glad they did.
Back here in the present day, Pentagram commissioned the legendary Seymour Chwast to turn Moore's amazing collection of names into a booklet of illustrations that imagine what these cars might look like.
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This piece by Cory Doctorow on TikTok's enshittification (also available at Wired) contains some of the best and simplest descriptions of how online platforms like Amazon, Facebook, Uber, TikTok, Twitter, etc. evolve as they grow and then eventually die.
Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.
...
This is enshittification: Surpluses are first directed to users; then, once they're locked in, surpluses go to suppliers; then once they're locked in, the surplus is handed to shareholders and the platform becomes a useless pile of shit. From mobile app stores to Steam, from Facebook to Twitter, this is the enshittification lifecycle.
The Amazon example he uses is really easy to follow. Early in the company's history, the site used to be a great place to shop; their customers loved Amazon. But then Amazon's sellers became their real customers and the user experience started to suffer. And now, much of the value generated by the users and customers goes to the shareholders (which, functionally speaking these days, means several dozen people who run hedge funds or large investment funds).
This strategy meant that it became progressively harder for shoppers to find things anywhere except Amazon, which meant that they only searched on Amazon, which meant that sellers had to sell on Amazon. That's when Amazon started to harvest the surplus from its business customers and send it to Amazon's shareholders. Today, Marketplace sellers are handing more than 45 percent of the sale price to Amazon in junk fees. The company's $31 billion "advertising" program is really a payola scheme that pits sellers against each other, forcing them to bid on the chance to be at the top of your search.
Over at Techdirt, Mike Masnick riffed on Doctorow's piece, arguing that enshittification, this playing of various parties against each other while siphoning off the value, is bad business because it focuses too much on short term gains.
Because maximizing revenue in the short term (i.e., in the 3 month window that Wall Street requires) often means sacrificing long term sustainability and long term profits. That's because if you're only looking at the next quarter (or, perhaps, the next two to four quarters if we're being generous) then you're going to be tempted to squeeze more of the value out of your customers, to "maximize revenue" or "maximize profits for shareholders."
He uses early Amazon as an example of long-term thinking:
Once you go public, and you have that quarterly drumbeat from Wall Street where pretty much all that matters is revenue and profit growth. Indeed, it's long forgotten now, but Jeff Bezos and Amazon actually were a rare company that kind of bucked that trend, and for a while at least, told Wall Street not to expect such things, as it was going to invest more and more deeply in serving its customers, and Wall Street punished Bezos for it. It's long forgotten now, but Wall Street absolutely hated Amazon Prime, which locked in customer loyalty, but which they thought was a huge waste of money. The same was true of Amazon Web Services, which has become a huge revenue driver for the company.
They created a tremendous amount of value for their shareholders by playing the long game, which for whatever reason they aren't willing to do anymore.
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This is something I've heard over and over again, in many cities around the world: putting in bike lanes in place of car parking and/or car lanes results in an increase in humans patronizing local businesses and increased sales.
Five years ago, the city of Queens, New York, announced that it would be putting bike lanes onto a stretch of Skillman Ave-and removing 116 parking spots. Cyclists loved the plan, but local business owners went ballistic. Taking out those parking spots, as they argued at protests and in letters to the city council, would devastate stores and restaurants along Skillman. "Parking here is already a nightmare," one fumed at a protest rally.
But the bike lanes were a done deal, and soon they were in place. Early this year, Jesse Coburn — an investigative writer with Streetsblog New York — wondered whether those predictions of economic collapse came true. So he asked the city's Department of Finance to give him a few years' worth of sales figures for that stretch of Skillman Ave. How had the businesses on that street fared?
Quite well, it turns out. In the year after the bike lanes arrived, businesses on Skillman saw sales rise by 12 percent, compared to 3 percent for Queens in general. What's more, that section of road saw new businesses open, while Queens overall had a net loss.
The thing is, the actual merchants along Skillman? They didn't believe it. When Coburn spoke to them and described what he'd found, only a few store owners admitted the lanes had helped. Many still insisted the lanes were killing their part of the city. And emotions ran hot: Someone scattered tacks on the bike lane.
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Ted Gioia is one of the best music writers and critics around but has proved an astute cultural (and even business!) critic as well. In a piece for his excellent The Honest Broker newsletter, Gioia writes about the recent turnaround of Barnes & Noble, which he attributes to the company's new CEO and his love of books. James Daunt, who took the helm of B&N in late 2019, previously saved UK bookshop chain Waterstones, in part by refusing to take promotional money from publishers:
Daunt refused to play this game. He wanted to put the best books in the window. He wanted to display the most exciting books by the front door. Even more amazing, he let the people working in the stores make these decisions.
This is James Daunt's super power: He loves books.
"Staff are now in control of their own shops," he explained. "Hopefully they're enjoying their work more. They're creating something very different in each store."
This crazy strategy proved so successful at Waterstones, that returns fell almost to zero — 97% of the books placed on the shelves were purchased by customers. That's an amazing figure in the book business.
On the basis of this success, Daunt was put in charge of Barnes & Noble in August 2019. But could he really bring that dinosaur, on the brink of extinction, back to life?
The boldface above is mine and it matches up with the bold text from Gioia's conclusion:
Of course, there's a lesson here. And it's not just for books. You could also apply it to music, newspapers, films, and a host of other media.
But I almost hate to say it, because the lesson is so simple.
If you want to sell music, you must love those songs. If you want to succeed in journalism, you must love those newspapers. If you want to succeed in movies, you must love the cinema.
One of the reasons I decided to take a sabbatical last year is that I was not loving what I was doing here and it was starting to show. Oh, I've been doing this long enough that I know how to paper over the cracks. Also, I'm stubborn and will keep at something even if I'm not enjoying it, but the wheels were starting to come off of the wagon. Now that I'm back, I'm trying to figure out which bits of this weird job I'm really into and redirect my efforts there. Gioia's piece is a good reminder to follow the love and the rest will follow.
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Anil Dash writes about the 24 stages of the growth-fueled "broken tech/content culture cycle" that VC-driven Silicon Valley (among other places) has pioneered over the past 15 years. Here's how you begin:
1. Build a platform which relies on cultural creation as its core value, but which only sees itself as a technology platform. Stick to this insistence on being solely a "neutral" tech company in every aspect of decision-making, policy, hiring and operations, except for your public advertising, where the message is entirely about creativity and expression.
2. Hire a team that's rewarded solely on growth goals and winnow out anyone who values creators or culture above expansion and user acquisition. Enforce a monoculture.
And then:
8. Build an algorithm to "surface great content" for your audience. Train it on the behaviors of your existing creators, so you create a rich-get-richer dynamic, effectively cementing the culture of your platform and making it impossible for new creators from underrepresented communities to get a foothold. Make it so the only process for revisiting your algorithm is bad-faith arguments from right-wing goons trying to game the refs because their actual content isn't good enough to get audience on its own. After that, treat the algorithm as some magical sacrosanct god with unknowable whims that everyone is subject to, rather than as a series of intentional business decisions captured in software form.
Eventually:
18. Double down on funding the worst voices on your platform. Call it "free speech", and make sure that nobody internally points out that truly defending free speech would have entailed protecting those early marginalized creators who made your platform credible in the first place.
19. Definitely misuse "free speech" as a rhetorical bludgeon against people who are pointing out that you are both amplifying and sponsoring content, not merely making it available. Resolutely refuse to be intellectually honest about the difference between merely providing a platform to all, vs. making editorial decisions to promote and subsidize content that you have control over.
Spotify, Substack, Google, Twitter, Amazon, Apple, Facebook, Reddit...this predictable script has played out at all of these companies in some form or another over the past decade.
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This video provides a good overview of the difficulty involved in starting a business that grows, sells, or distributes cannabis products, which can include money, federal illegality, state regulations, and structural racism.
Jeannette: So you really got to get your business funded from your personal wealth or from your network wealth.
Nancy: Those situations begin to favor people who’ve traditionally had good access to capital.
Jeremy: And oftentimes that correlate with being white.
Adriana: It is very white male-dominant. And there’s no reason that that is what it should be.
Narrator: Only 2% of cannabis entrepreneurs are Black. Yet Black Americans were most affected by marijuana’s illegal status in the past.
Jeremy: There is kind of a clear throughline from the war on drugs. According to the ACLU, Black people are four times as likely than whites to get arrested for cannabis use, despite using at very similar rates across age groups, across different states.
See also A Post-Legalization Cannabis Reading List.
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For Vox, Emily Stewart writes about the shortcomings of the, er, system we've developed here in America of outsourcing public needs to private industry: Corporations aren't going to save America.
Across various segments of American life, the private sector has begun to take on tasks big and small that one might think should be tackled by the public sector. Domino's filled in potholes. Dawn's dish soap saved ducks. American Express pitched in on historic preservation. Walmart started selling low-priced insulin. A slew of companies help workers pay for school. Much of America's health care system is still handled through private insurers and your job. As people lose faith in government to act on sweeping issues such as climate change and guns, they're increasingly looking to corporate America and asking whether there's something they can do about it. If Congress won't tackle gun violence, maybe Dick's Sporting Goods can try.
It's not a bad thing for brands and companies to try to make the world better. Starting a business often involves identifying a problem to solve, and it's much better for companies to help than to do harm. Corporate social responsibility is fine. There are, however, limits.
"Of course we want businesses to be responsible," said Suzanne Kahn, managing director of research and policy at the Roosevelt Institute. But she emphasized that this does not constitute a plan for how to organize society. "Private companies don't, can't, or won't plan with the same values that we demand and expect the government to."
(via the morning news)
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Anne Helen Peterson noticed a bunch of reports about fast food & retail businesses around the US having trouble finding employees, which difficulty the business owners are blaming on lazy American workers whose unemployment benefits have been extended/expanded during the pandemic. But what if, she writes, those benefits are actually providing a safety net to American workers so that they do not need to take terrible jobs for low wages at terrible companies under terrible management? The 'Capitalism is Broken' Economy:
Stick with me here, but what if people weren't lazy — and instead, for the first time in a long time, were able to say no to exploitative working conditions and poverty-level wages? And what if business owners are scandalized, dismayed, frustrated, or bewildered by this scenario because their pre-pandemic business models were predicated on a steady stream of non-unionized labor with no other options? It's not the labor force that's breaking. It's the economic model.
Unemployment benefits have offered a steady paycheck while you figure out your options. Put differently: a version of the safety net that's been missing from most American employment, and, by extension, the ability to say no. No, I don't have to work for a restaurant that only gives me my hours three days ahead of time, thus making it nearly impossible to find reliable childcare. No, I don't have to work clopen shifts. No, I don't have to expect a job without sick leave or paid time off. No, I don't have to deal with asshole customers or managers who degrade me without consequence. No, I don't have to work in a job with significant, accumulating health risks.
Her question near the end of the piece is worth considering: "If a business can't pay a living wage, should it be a business?"
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Last week, twelve of the biggest, richest, and best European soccer teams announced they were going to form a new midweek competition called The European Super League. The reaction was swift: fans revolted, soccer governing bodies threatened to kick these teams out of other competitions (with immediate effect, including the Champions League which is presently in the semifinal stage), large-scale condemnation from the press, teams started to back out, and 48 hours after the announcement, the league was all but dead.
So what the hell happened? There have been lots of takes and I obviously haven't read them all, but here are two I found especially valuable in wrapping my head about the Super League failure and, more importantly, what it can tell us about how power, wealth, community, and attention interact 21 years into this rapidly aging century. First up, Alex Shephard writing for The New Republic: The Existential Crisis That Led to the European Super League Fiasco.
What all of these cultural dinosaurs are confronting, though rarely head on, is the fact that there is no monoculture anymore. They may occupy tremendous cultural space — and a team like Real Madrid is rivaled only by other European soccer teams in the sports world — but it is not and never will be what it was before. The mass appeal these teams enjoyed until fairly recently is not coming back, and it's not just the fault of Fortnite or FIFA. There are simply too many competitors — and, after all, you can watch the best bits on social media anyways.
And then Ryan O'Hanlon interviewed economist Mark Blyth for his newsletter: How the Spectacular, Comical Failure of the Super League Explains the World.
O'Hanlon: In addition to the various corporate pressures, it really does seem like the fan reaction made a material difference. Do you find that heartening at all?
Blyth: I think it's heartening in the following sense. It's emblematic of broader shifts that are going on right now. Basically we're all struggling to find a capitalism 4.0, and we're all fed up with capitalism 3.0, and this is a huge example of the limits of capitalism 3.0. This "I own it. It's my right. I'll do what I want with it". Except, no you won't because there's such a thing as a public conception of ownership of these assets, even if you formally own them. There are limits to how far you can push this market logic on the social institutions without provoking a reaction. Karl Polanyi, the Hungarian sociologist and historian from the 1940s, wrote that the big fuck-ups of the 19th century and 20th century were attempts to shove markets down people's throats to the point where they revolted.
In a sense, what you're seeing here is a classic Polanyian reaction. So I think it's heartening in that it shows there are limits to how much you can commodify these social goods even if they are nominally private assets. It's heartening in another way in that they're gonna have to have a reckoning with these balance sheets. If you're not Sheikh Mansour and you're not Roman Abramovich, how are you going to fund Paul Pogba's ridiculous salary? And it's just not clear that you are going to, so there may need to be a restructuring, which would be great because the model is there. Look at how the Germans do this. They invest heavily in talent. They invest heavily in youth, they buy, but they buy judiciously. They don't pay ludicrous salaries. And the funds own 51 percent of the companies. It's a perfect model, right? Because they've got cooperative ownership between the people who are the kind of social owners. And then you've got the titular owners who do the investment, and there's a balance of those interests.
Let me know if there are other Super League pieces out there that I should read — I'll add them to this post. (Photo above of Erling Haaland because he is a goofy beast and one of the 12 Super League teams is going to pay an absolutely obscene amount of money for him in a few months.)
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Software developer Rashiq Zahid figured out McDonald's ordering API and built a program that attempts to order ice cream from every single McDonald's in the US to check if their ice cream machine is working. If your McFlurry or McSundae cannot be added to the shopping cart, the program assumes the ice cream machine is broken. The program runs several times a day and the results are displayed on a map. From The Verge:
Initially, he created an API that attempted to add a McSundae from every McDonald's location to its cart once every minute. The app figured out what he was up to and blocked him — "It was like, you can't do this, you look like a bot," he recalled.
After a night of trial and error, Zahid figured out the magic time frame. Now, his bot attempts to add a McSundae every 30 minutes. If the bot successfully adds the item, it lets McBroken know that the location's machine is working. If it can't, the location gets a red dot.
From the current map, it looks like almost 10% of McDonald's ice cream machines in the US are not working. In NYC, nearly a quarter of McDonald's restaurants don't have a working ice cream machine. I'm wondering though: is the assumption that the machine is broken a good one? What if ice cream ingredients are out of stock or some franchises don't offer ice cream products at all hours? When The Verge wrote their story last night, they reported only 7.5% of national machines and 15.2% of NYC machines were broken. Did 10% of McDonald's ice cream machines in NYC break in the last 12 hours? Or are they just not selling McSundaes at 10am?
Update: A company started selling a device that helped franchise owners keep the notoriously finicky ice cream machines running — but then McDonald's all but shut them down.
Update: In a 30-minute video, Johnny Harris investigated why the McDonald's ice cream machines are broken so often.
At the heart of this ice cream problem is that McDonald's customers are not actually the people who buy their food but the franchisees that run the restaurants. That and McDonald's is actually a real estate business, not a food service business.
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Marker's David Freedman has a great look at how Vermont's own King Arthur Flour has dealt with a massive increase in demand for their best-in-class flour and other challenges during the pandemic. The piece is a textbook example of what Tim Carmody calls the systemic sublime.
The company knew something weird was going on when they noticed a 600% sales jump almost overnight and started seeing different kinds of questions coming into their consumer call center.
So tricky and specific are some of the bread-baking questions that even though Ely is one of the bread specialists working the hotline, she sometimes puts callers on hold and yells over the cubicle walls to colleagues for second opinions.
But in early March, Ely noticed a change in the questions. Partly it was an increase in the sheer number of calls, a jump that seemed more sudden and pronounced than the normal mild pre-Easter build-up. But even stranger was how many of the callers seemed, well, clueless. How do you tell if bread is done? Do I really need yeast? And strangest of all: What can I use instead of flour?
In a matter of weeks, the employee-owned company transformed several aspects of their business and tripled their flour output in order to keep up with the demand.
As a first step to ramping up the flow of flour to consumers, King Arthur added one to two shifts at all its facilities and contracted with an additional fulfillment center. It shifted most of its long-distance product transportation from rail to trucks, which are more expensive per bag but add speed and flexibility. It stopped international sales to divert all incoming inventory to U.S. customers. To make shipping operations more efficient and get orders out the door faster, the company switched to all "ship-complete" shipping — that is, if one item in a multi-item order was temporarily out of stock, the entire order was held until the item was back in stock.
The company also managed to find a new partner that could mill and bag more flour. The wrinkle was that the partner was only set up to fill three-pound plastic bags, not King Arthur's five- and 10-pound paper bags. So King Arthur quickly whipped up a new three-pound plastic bag and threw it up on the website as a new product. That move alone would add up to a half-million new units a month to the company's shipments.
The company has also done right by their employee-owners:
Altogether, three-quarters of the company's employees were sent home. In many cases, the work went with them, as was the case with the Baker's Hotline, and with most managers. Many of those whose jobs couldn't be performed at home were trained to help out with tasks that could. So far, not a single employee has been furloughed; everyone is being paid — including 12 employees who stay busy sewing masks for other employees.
They've helped out companies they supply as well:
While home baking was taking off, bakeries were being closed down, sharply reducing demand for the big bags of flour. (To help keep some of them afloat, the company has spent $30,000 so far during the pandemic paying some of its bakery customers around the country — including Empire Baking — to bake bread and donate it to local good causes. Its own bakers have been doing the same for essential workers and those in need in Norwich.)
And I love the photos that accompany the article by Stephanie Gonot — that must have been a fun & messy photoshoot to do at home. (via @robinsloan)
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I featured Business Town, an ultra-capitalist spoof of Richard Scarry's Busy Busy Town, on this site a few years ago. Their last few entries have focused on the pandemic and they are devastatingly spot on.
(via waxy)
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When it opened in 1977, Randall Park Mall in Ohio was (briefly) the largest shopping mall in the world. But the place was never a huge success and was finally closed in 2009 in the wake of the financial crisis. For six years it lay abandoned and during that time, photographer Michael Christopher captured the decaying building inside and out for his book, Abandoned America.
Whichard Real Estate, who purchased the mall in 2006 for $6 million, was $200,000 behind on property taxes in 2008 and had multiple mortgages on the mall. The next February, Sears announced it was closing its Randall Park location, and with that the mall's last anchor was gone. The few struggling stores inside the mall, many of which were owned by small business people doing their best to keep the mall afloat, were vacated a month later in March of 2009. The power was shut off in May, and save for the dusty sunbeams streaking through the skylights on sunny afternoons, the mall went dark.
The mall was finally torn down in 2014 and the site is fittingly now home to an Amazon fulfillment center.
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The number one song on the UK singles chart for the last week of 2019 was Ellie Goulding's River, despite it not being available on Spotify, Apple, Google, or anywhere but Amazon (with one important exception). How the heck did that happen? Chart Watch UK has the story.
River was simply a prominent part of just about every "Christmas songs" playlist curated by Amazon themselves, a default choice for everyone muttering "Alexa, play Christmas songs" as they basted the turkey and cursed the sprouts. People have been spoon-fed a contemporary hit single like no other before it, and the result of that has been to propel it almost by accident to the top of the charts.
This is a fitting choice for the final chart topper in the 2010s because it encapsulates a number of trends in media that have played out over the past decade. To wit:
- The song is a remake. Remakes and sequels dominate our viewing and listening.
- It is exclusive to a single platform. The entire media world seems to be headed in this direction.
- The platform is operated by one of the handful of tech behemoths that took control of more and more of the media landscape as the decade wore on.
- Amazon. Arguably the company of the decade. Led by the world's richest man, a symbol of the decade's growth in inequality.
- Ok, the song is exclusive to Amazon but is also on YouTube. YT has simply grown so popular for young people listening to music that media companies can't ignore it, even when they're direct Google competitors (and who isn't these days).
- Voice assistant devices were instrumental in making the song popular. Since Siri was first released in 2011, voice assistants have become increasingly embedded in our homes and pockets.
- Amazon's editorial team added the exclusive song to several of their Christmas playlists. Amazon has access to the song, compiles the playlists, and sells the devices to play them. This sort of BigCo "synergy" became standard operating procedure in the 2010s.
- There was an algorithm involved (Billboard's). They increasingly determine what we read, watch, and listen to.
- And that algorithm was gamed. See also the role of Facebook's algorithms in the 2016 US Presidential election (and many many other examples of "impartial" algos being manipulated).
It is tough to imagine a more perfect example of how media functions (or doesn't) today. (via @tedgioia)
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I love this. Bike retailer Vanmoof noticed that a lot of the bikes they shipped to customers in the US arrived damaged. Figuring that package handlers would be more gentle if they thought they were moving fragile electronics, they started printing an illustration of a flatscreen TV on their packages.
That small tweak had an outsized impact. Overnight our shipping damages dropped by 70-80%. We sell 80% of our bicycles online, which means we still print TVs on our boxes. More than 60,000 of them have now been shipped directly to our riders worldwide.
Super clever. (via why is this interesting?)
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The partnership between China and Western governments & corporations has hit a rough patch recently, namely the Hong Kong protests and how the NBA, Apple, and gaming company Blizzard have handled various responses to them on their platforms. I don't have a lot to add on the matter, but I have read some interesting takes in the past few days that you might also want to take a look at.
Ben Thompson, The Chinese Cultural Clash:
I am not particularly excited to write this article. My instinct is towards free trade, my affinity for Asia generally and Greater China specifically, my welfare enhanced by staying off China's radar. And yet, for all that the idea of being a global citizen is an alluring concept and largely my lived experience, I find in situations like this that I am undoubtedly a child of the West. I do believe in the individual, in free speech, and in democracy, no matter how poorly practiced in the United States or elsewhere. And, in situations like this weekend, when values meet money, I worry just how many companies are capable of choosing the former?
John Gruber riffing on Thompson's piece:
The gist of it is that 25 years ago, when the West opened trade relations with China, we expected our foundational values like freedom of speech, personal liberty, and democracy to spread to China.
Instead, the opposite is happening. China maintains strict control over what its people see on the Internet — the Great Firewall works. They ban our social networks where free speech reigns, but we accept and use their social networks, like TikTok, where content contrary to the Chinese Community Party line is suppressed.
Farhad Manjoo, Dealing With China Isn't Worth the Moral Cost:
The People's Republic of China is the largest, most powerful and arguably most brutal totalitarian state in the world. It denies basic human rights to all of its nearly 1.4 billion citizens. There is no freedom of speech, thought, assembly, religion, movement or any semblance of political liberty in China. Under Xi Jinping, "president for life," the Communist Party of China has built the most technologically sophisticated repression machine the world has ever seen. In Xinjiang, in Western China, the government is using technology to mount a cultural genocide against the Muslim Uighur minority that is even more total than the one it carried out in Tibet. Human rights experts say that more than a million people are being held in detention camps in Xinjiang, two million more are in forced "re-education," and everyone else is invasively surveilled via ubiquitous cameras, artificial intelligence and other high-tech means.
None of this is a secret.
Om Malik, Our Collective Chinese Conundrum:
We in the West should very well know what and who we are dealing with — China might be decked out in Louis Vuitton, but underneath, it is still a single-party, quasi-communist nation. Knowing the Western desperation for growth and the insatiable needs of the stock markets, China also knows it can yank anyone's chain.
Huawei isn't a recent problem. It was a problem a decade ago. The dynamic in this spat between the NBA and China isn't new — China gets what China wants, not the other way around. Why are we being outraged now? The West signed up for this.
Malik quotes from Ian Bremmer's newsletter:
in the west, the past decades have been marked by a view that china would eventually adapt to western norms, institutions, political and economic systems. but from an asian perspective, the opposite appears more likely. after all, of the last 2,000 years, china and india have led the global economy for the first 1800; europe and the united states only flipped the script for the last 200. now that's about to change. and when it does, it's going to happen quickly, powered by 1.4 billion increasingly urban, educated and technologically-connected chinese citizens. take the long view (and an asian perspective) and it's a better bet that the west will adapt to the realities of chinese economic power, not the other way around.
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Waffle House is prepared to make you breakfast at all hours of the day in any kind of weather. The restaurant chain is so widely respected for its severe weather preparedness that a former director of FEMA started using their stores as an indicator of how bad a particular storm or disaster was:
The "Waffle House Index," first coined by Federal Emergency Management Agency Director W. Craig Fugate, is based on the extent of operations and service at the restaurant following a storm and indicates how prepared a business is in case of a natural disaster.
For example, if a Waffle House store is open and offering a full menu, the index is green. If it is open but serving from a limited menu, it's yellow. When the location has been forced to close, the index is red. Because Waffle House is well prepared for disasters, Kouvelis said, it's rare for the index to hit red. For example, the Joplin, Mo., Waffle House survived the tornado and remained open.
Annie Blanks recently visited the "Waffle House Storm Center" in advance of Hurricane Dorian's predicted landfall in Florida.
When any of the stores are in danger of being hit by severe weather, so-called "jump teams" are activated to be ready to deploy wherever needed.
Jump teams are made up of Waffle House contractors, construction workers, gas line experts, restaurant operators, food providers and other associates who are assembled and ready to go wherever needed at a moment's notice. Their purpose is to help relieve local Waffle House operators and employees who need to evacuate, be with their families or tend to their homes when a storm hits, and help make sure restaurants are able to open quickly after a storm or stay open during a storm.
On Twitter, Blanks shared a photo of the four different pared-down menus that Waffle House prepares for disasters.
(via @LauraVW)
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In the 1960s, Haddon Salt built up a small empire of fish & chips shops in North America — they eventually had more than 500 stores. That attracted the attention of Kentucky Fried Chicken, then flush with cash after their IPO. And then...
An initial Google search revealed that this shop was the last gasp of a once-sprawling fish-and-chips empire with hundreds of locations that started with an immigrant's secret family recipe, flourished into an eight-figure deal with Colonel Sanders and ended in collapse.
It took several years and the research help of friends to track down Mr. Salt. We found him in a remote retirement community in Southern California's desert. The rest you can see in the film before you.
For every icon there are those who were almost famous. And perhaps they, even more than their conqueror, have the lessons we need to hear.
See also when Colonel Sanders badmouthing KFC: For the Colonel, It Was Finger-Lickin' Bad.
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Hubert Horan's broadside of Uber for American Affairs starts out like this and doesn't let up:
Since it began operations in 2010, Uber has grown to the point where it now collects over $45 billion in gross passenger revenue, and it has seized a major share of the urban car service market. But the widespread belief that it is a highly innovative and successful company has no basis in economic reality.
An examination of Uber's economics suggests that it has no hope of ever earning sustainable urban car service profits in competitive markets. Its costs are simply much higher than the market is willing to pay, as its nine years of massive losses indicate. Uber not only lacks powerful competitive advantages, but it is actually less efficient than the competitors it has been driving out of business.
This is one of those articles where I want to excerpt the entire thing; it's just so jammed packed with goodies about a company that represents everything I hate about "tech" and Silicon Valley.
In reality, Uber's platform does not include any technological breakthroughs, and Uber has done nothing to "disrupt" the economics of providing urban car services. What Uber has disrupted is the idea that competitive consumer and capital markets will maximize overall economic welfare by rewarding companies with superior efficiency. Its multibillion dollar subsidies completely distorted marketplace price and service signals, leading to a massive misallocation of resources. Uber's most important innovation has been to produce staggering levels of private wealth without creating any sustainable benefits for consumers, workers, the cities they serve, or anyone else.
A later section is titled "Uber's Narratives Directly Copied Libertarian Propaganda".
In the early 1990s, a coordinated campaign advocating taxi deregulation was conducted by a variety of pro-corporate/libertarian think tanks that all received funding from Charles and David Koch. This campaign pursued the same deregulation that Uber's investors needed, and used classic political propaganda techniques. It emphasized emotive themes designed to engage tribal loyalties and convert complex issues into black-and-white moral battles where compromise was impossible. There was an emphasis on simple, attractive conclusions designed to obscure the actual objectives of the campaigners, and their lack of sound supporting evidence.
This campaign's narratives, repeated across dozens of publications, included framing taxi deregulation as a heroic battle for progress, innovation, and economic freedom. Its main claims were that thousands of struggling entrepreneurial drivers had been blocked from job opportunities by the "cab cartel" and the corrupt regulators beholden to them, and that consumers would enjoy the same benefits that airline deregulation had produced. In a word, consumers were promised a free lunch. Taxi deregulation would lead to lower fares, solve the problems of long waits, provide much greater service (especially in neighborhoods where service was poor), and increase jobs and wages for drivers. Of course, no data or analysis of actual taxi economics showing how these wondrous benefits could be produced was included.
Horan reserves a healthy chunk of his criticism for the media, whose unwillingness to critically cover the company — "the press refuses to reconsider its narrative valorizing Uber as a heroic innovator that has created huge benefits for consumers and cities" — has provided a playbook for future investors to exploit for years to come. Blech. What a shitshow.
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Design firm Pentagram has brought in a new partner to their New York office, information designer Giorgia Lupi, who joins heavy hitters like Michael Bierut, Paula Scher, and Eddie Opera. I remain fascinated with how Pentagram operates:
Established in 1972, the firm has a collectivist attitude and adheres to a longstanding constitution, which exists in its original form with only small modifications. It spreads profits and decision-making power equally among its self-governed partners — all designers — irrespective of seniority or how much business they brought in during a given year. There's no CEO. The partners do collaborate with one another, often across disciplines, but essentially operate their own studios, though the local offices meet on a weekly basis and the entire group convenes twice a year. These all-partner meetings, chaired by one of the partners on a rotating basis, are about sharing work with the group and discussing business dynamics, Pentagram's publishing program, its website, and trends in the industry.
The process for bringing in a new partner can take years from start to finish and requires the unanimous consent of the rest of the partners:
"One vote against and it's over, truly," says Miller. "We've seen it happen."
I've often thought about if a collective structure could work for independent content sites. I wouldn't want to sell kottke.org to anyone, but the idea of sharing resources and infrastructure with a couple dozen similar sites is appealing. You could collect the sites into a membership bundle; hire dedicated staff for customer support, ad sales, & devops; do cross-promotion, syndicate the content via a meta-site, and generally help small indie sites punch above their weight. This is what The Deck could have evolved into, I suppose. Aw well.
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John Driscoll is the CEO of a healthcare company called CareCentrix. In an opinion piece in The Guardian, he wrote about the success of a plan his company implemented where they froze the salaries of the top 20 executives and gave significant raises to entry-level workers, from the federal minimum wage of $7.25/hr to $15/hr. Driscoll explains why the company decided to do this:
Assuming nothing went wrong, and assuming that our employees were living with another wage earner or working another part-time job, $7.25 hourly wage might be sufficient.
The reality is that for many of us, things do go wrong, and I had emails from my new teammates to prove it.
One was from a customer service representative — a young mother with a family, who had lost her apartment in a fire and did not have enough money for diapers. Another email soon followed — this employee had missed a few bills and was living out of her car with her child.
This drove me crazy: how did we get to the point where one of our employees had to apologetically ask for financial support so she and her family could put a roof over their heads?
While some of our elected officials congratulated us for creating jobs, I felt that we were failing some of our employees, and the communities we were based in. The more our executive team parsed through the requests for assistance, the more we all became uncomfortable with the mismatch between what we asked of our employees and what we provided to them in turn.
And the real kick in the groin about the plan? It wasn't even that tough to implement!
I challenged the chief financial officer to see how deeply we would have to freeze wages in order to reach our goal of a base rate of $15 per hour.
The answer was that we did not have to go very deep. Over the last few decades executive salaries have skyrocketed. That translates into accelerated wage growth in the highest tiers of executives throughout American business, and it affects every company.
What that meant for our company was that if we just froze the wages of our most senior team — less than 20 executives - we could radically increase the wages and improve the lives of nearly 500 of our teammates.
The conversation with our executives was straightforward. We were in the midst of a turnaround. We were demanding much from every corner of the company. Small financial sacrifices from those at the top could be life changing for those at the bottom of our wage scale. We needed to do it to build a real sense of Team CareCentrix. They agreed.
And it worked really well. Duh. It drives me bananas that more companies don't see the benefit of doing this versus implementing compensation policies that serve only to line the pockets of the people in char— oh waaaaait, it actually makes perfect sense why this is happening. The shareholders of these companies should start calling bullshit on that sort of behavior with more regularity though.
See also the founder of Richer Sounds retiring and transferring 60% of his company to its employees, with workers also receiving £1,000 for every year they've worked for the company.
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With its recent use by the participants in the Extinction Rebellion, the extinction symbol has become much more widely known, on its way to becoming the peace symbol of the climate movement.
The symbol above represents extinction. The circle signifies the planet, while the hourglass inside serves as a warning that time is rapidly running out for many species. The world is currently undergoing a mass extinction event, and this symbol is intended to help raise awareness of the urgent need for change in order to address this crisis. Estimates are that somewhere between 30,000 and 140,000 species are becoming extinct every year in what scientists have named the Holocene, or Sixth Mass Extinction. This ongoing process of destruction is being caused by the impact of human activity. Within the next few decades approximately 50% of all species that now exist will have become extinct. Such a catastrophic loss of biodiversity is highly likely to cause widespread ecosystem collapse and consequently render the planet uninhabitable for humans.
The symbol and a stencil template are available for download "for non-commercial purposes".
There's a disclaimer at the bottom of the page about merchandise, which reads in part:
No extinction symbol merchandise exists, and it never will do. The free use of the extinction symbol by individuals in their personal artwork or other forms of expression is strongly welcomed and encouraged, but any form of commercial use of the symbol is completely against its ethos and should therefore be refrained from. To reiterate, please do not use the symbol on any items that will be sold, or for any other fundraising purposes. There are no exceptions to this policy.
Here's the thing: I want a t-shirt with the extinction symbol on it so I can signify my support (in a small way) for climate justice. If I'm reading this correctly, I can make a t-shirt for myself but not have one made for me? Or can I have a single print-on-demand shirt made for me at cost? Making my own shirt (I'd need to buy a bunch of single-use supplies) or getting a one-off printed doesn't seem very climate-friendly at all. How about taking orders from other interested folks (like you all) and selling the shirts at cost? That seems much more climate-friendly but also firmly against the symbol maker's strict policy.
I think we're bumping up against an inconvenient truth about capitalism here: it is sometimes (or perhaps even often) the most efficient and least wasteful way to produce something because it's actually a deeply collectivist endeavor. Let's say you're holding a climate protest, 100,000 people are coming, and those people want to bring shirts or signs or other protest equipment to the protest to "advertise" their displeasure to those watching, near and far. Is it more climate friendly for all those people to individually buy supplies and each produce their own things or would it be better to rely on a organization whose sole purpose is to produce protest supplies (using carbon-free energy and materials) and pay them more than the cost of the supplies so they can provide their employees a living wage and even advertise their services a little so they can actually remain in the protest supplies business and take even more advantage of economies of scale to keep prices down? Run it as a non-profit if you'd like. That seems far less wasteful to me than people buying one-off supplies, even on a group basis.
You might interject here that producing anything that uses any natural resources for such a protest is wasteful and unethical. I think that's a fair point! What's the ROI for protest materials? Is it wasteful to spend a little CO2 now to possibly save a bunch of CO2 in the future or is it smart? Gah, all I want is a shirt to express myself! Are there any simple and ethical solutions in a world that's so densely networked and interconnected?
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