Monthly Archives: August 2019

Why does water cost what it does?

Water costs vary greatly about Oakland county, and around the US, and I have struggled in vain to find out why. In part the problem is that each city gets to add as much maintenance and management costs as the city government thinks appropriate. High management and infrastructure fees can increase to the cost of water, but I also not that different cities about Oakland County Michigan get their water at different rates from the multi-county organization that oversees water in South East Michigan: GLWA, The Great Lakes Water Authority.

$112 water bill for zero usage. The base charge is so large that prices are essentially independent of useage.

I’ve attended meetings, both local and multi county and have tried to find out why one town gets its water at a far lower rate than another, near by. Towns get lower rates if they have a water tower, but it is not at all clear what the formula is. It also helps to separate the storm sewage from the sanitary sewage — something that I have proposed for all of Oakland county, but if there is fixed formula of how that affects rates, I’ve not seen it. And I wonder how well communities monitor the amount of storm sewage they generate.

The water itself is free. For the most part, in this county, we pump it from the Detroit river. Some of the rest of the water is pumped from wells. None of this costs anything. There is a pump cost, but it is manicure. Pumping 1 gallon of water up 75 feet, costs about 0.002¢ in pumping cost. The rest of the cost is infrastructure: the cost of the pumps, the pipes, the treatment, the billing and sewage. Among the sewage fees is a pollution penalty, and Oakland county pays plenty of pollution penalties. When it rains, we generate more sewage than the system will handle, and we dump the rest into the rivers and lakes. This results in closed beaches and poisoned fish, and fines too. The county pays the EPA when we do this, and the county passes the cost to the cities. I don’t know what the formula for fee distribution is, and don’t even know what it should be. What I do know is that we do this vastly too often.

Another oddity is that we bill on a per gallon basis. For my home, the bill is about 2¢/ gallon — 100 times the pumping cost. Though the city can claim that we are paying for infrastructure, both clean water infrastructure and sewage infrastructure, it seems odd to bill on a per-gallon used basis, and 1000 times the true per-gallon price. Since most of the price of water is the infrastructure and management cost, it seems like a regressive tax to charge people on the basis of per-gallon used. I also find it odd that cities do a propaganda campaign to tell folks to use less water. Why? I’d much prefer to charge a far lower base charge, and then bill significantly per-gallon. As with much that is socialist, the current system is inefficient, but pleasant for the management.

August 21, 20019, Robert Buxbaum

The Brexit, Trump, Johnson anti-crash

Before Brexit, I opined, against all respectable economists, that a vote for Bexit would not sink the British economy. Switzerland, I argued, was outside the EU, and their economy was doing fine. Similarly, Norway, Iceland, and Israel — all were outside the EU and showed no obvious signs of riots, food shortages, or any of the other disasters predicted for an exited Britain. Pollsters were sure that Britain would vote “No” but, as it happened, they voted yes. The experts despaired, but the London stock market surged. It’s up 250% since the Brexit vote.

Lodon stock market prices from January 2016 through the Brexit vote, August 2016, to the Boris Johnson election, August 2019. The price has risen by more than 250%.

A very similar thing happened with the election of Trump and of Boris Johnson. In 2016 virtually every news paper supported Ms Clinton, and every respectable economic expert predicted financial disaster if he should, somehow win. As with Brexit, the experts were calmed by polls showing that Trump would, almost certainly lose. He won, and as with Brexit, the stock market took off. Today, after a correction that I over-worried about, the S+P index remains up 35% from when Trump was elected. As of today, it’s 2872, not far from the historic high of 3049. Better yet, unemployment is down to record levels, especially for black and hispanic workers, and employment is way up, We’ve added about 1% of adult workers to the US workforce, since 2017, see Federal Reserve chart below.

Returning to Britain, the economic establishment have been predicting food shortages, job losses and a strong stock market correction unless Brexit was re-voted and rejected. Instead, the ruling Conservative party elected Boris Johnson to prime-minister, “no deal” Brexiter. The stock market responded with a tremendous single day leap. See above

Ratio of Civilian Employment to US Population. Since Trump’s election, we’ve added about 1% of the working age US population to the ranks of the employed.

You’d think the experts would show embarrassment for their string of errors. Perhaps they would save some face by saying they were blinded by prejudice, or that their models had a minor flaw that they’ve now corrected, but they have not said anything of the sort. Paul Krugman of the New York Times, for example, had predicted a recession that would last as long as Trump did, and has kept up his predictions. He’s claimed a bone rattling stock crash continuously for nearly three years now, predicting historic unemployment. He has been rewarded with being wrong every week, but he’s also increased the readership of the New York Times. So perhaps he’s doing his job.

I credit our low un-employment rate to Trump’s tariffs and to immigration control. When you make imports expensive, folks tend to make more at home. Similarly, with immigration, when you keep out illegal workers, folks hire more legal ones. I suspect the same forces are working in Britain. Immigration is a good thing, but I think you want to bring in hard-working, skilled, honest folks to the extent possible. I’m happy to have fruit pickers, but would like to avoid drug runners and revolutionaries, even if they have problems at home.

I still see no immediate stock collapse, by the way. One reason is P/E analysis, in particular Schiller’s P/E analysis (he won a Nobel prize for this). Normal P/E analysis compares the profitability of companies to their price and to the bond rate. The inverse of the P/E is called the earnings yield. As of today, it’s 4.7%. This is to say, every dollar worth of the average S+P 500 stock generates 4.7¢ in profits. Not great, but it’s a lot better than the 10-year bond return, today about 1.5%.

The Schiller P/E is an improved version of this classic analysis. It compares stock prices to each company’s historic profitability, inflation adjusted for 10 years. Schiller showed that this historic data is a better measure of profitability than this year’s profitability. As of today, the Schiller P/E is 29.5, suggesting an average corporate profitability of 3.5%. This is still higher than the ten-year bond rate. The difference between them is 2%, and that is about the historic norm. Meanwhile, in the EU, interest rates are negative. The ten year in Germany is -0.7%. This suggests to me that folks are desperate to avoid German bank vaults, and German stocks. From my perspective, Trump, Johnson, and the Fed seem to be doing much better jobs than the EU bankers and pendents.

Robert E. Buxbaum, August 16, 2019.

The psychology of Archie comics and Riverdale; then, now, and in the socialist future

I learned a lot about social interactions from a comic of my youth called “Archie“. A very popular comic for 65 years, from 1941 through the 2010s, the social structure of Archie remained remarkably constant from when I first read it, in the early 60’s to when I read it to my children in the late 90’s. The comic mostly follows the title character, a love struck teenager with two (or more) gorgeous girlfriends, shown below, and his various relationships. I find the original stories to have been hyper-true, that is more true than truth. There are also several spin-offs, including a TV series, “Riverdale“, and an underground comic “Anarchie“. Both have a degree of charm, but the original stands out for it’s wide readership and long run; clearly, it resonated. Riverdale is a far grittier take, further from hyper-reality. 

Archie enjoys a malt with Veronica left and Betty right. Archie prefers Veronica. Betty is a doormat. Though Veronica is rich, she never pays.

In Archie comics, the poorer folks worked, as in real life, at relatively dull jobs. Their parents do too, and the poorer kids are visible poorer. Archie always wore the same clothes and drives (or drove) a junker car. The few rich folks do not work in the same way, as one might expect. In the TV series, and in most TV series’s, everyone has food, friends and a car, without any serious jobs, and little social hierarchy. It’s an ideal world of sorts, but somehow everyone’s messed up.

In the old time comic, one rich character in particular, Reggie Mantle, like to flaunt his wealth and make fun of Archie and his proletarian friend, Jughead. The comic book Veronica was also something of a bitch. Her dad, while occasionally charming, could be a bully as well. He certainly displayed, and benefitted from his exceptional wealth. Meanwhile, in the comic at least, while all the poorer folks worked (except Jughead), not all of them did a good job, most of those who worked did not enjoy it. There was humor in this engaging, realistic take on life.

The school lunch lady, Miss Beasley, was relatable in her extreme dislike for her job. What pleasure she gets, seems to come from making and serving bad food. Though the details of her employment are scarce, my guess was that she was unionized. Otherwise, she would have been fired years ago. There is no similar character in TV’s Riverdale.

Weatherbee and Flootsnoot

The principal, Mr. Weatherbee, also seemed to have trouble with his job, though his relationships were more nuanced. He takes his job seriously and runs an effective school, but he’s overweight, and over-stressed — a walking heart attack. Unlike most of the people at the school, “the bee” does not take out his anger on the kids, or on his fellow faculty. He keeps it in, while tormented by the students, by the parents, by the janitor, Svenson, and in particular by Mr. Flootsnoot, the science teacher. Flootsnoot seems to delight in causing trouble, giving Archie explosives, acid, and animals. My guess is that Flootsnoot is angling for Weatherby’s job, and is not patient enough to wait for Weatherbee’s heart to give out on its own. He’s a character right out of Hitchcock, IMHO.

Ms Grundy, Archie’s teacher was also drawn a victim of playing by the rules in a crooked game. In the original comic, as i read it in the mid 60s, she’s a puritan spinster in a black dress with a tall, laced collar. She seems to dislike Archie and Jughead, but not the other kids, nor her job as such. It makes sense that she’d dislike Archie and Jughead, since Jughead is lazy, and Archie is a skirt chasing cad. By the 90’s when I read Archie with my daughters, Miss Grundy had become a Ms, and was more at peace with her position, and a lot of the humor is gone. In the TV version, Riverdale, Ms Grundy, is in a sexual relationship with Archie. It’s a lot less healthy, and not very humorous.

The main focus, of course is Archie, a workin-class teen, and straight D student. How does he have two (or more) gorgeous girlfriends? After a few years of reading, the explanation becomes obvious, and fairly depressing. Each of his many girlfriends are motivated by jealousy for the others. His first girl is Betty. She’s pretty, poor, hard-working, and a doormat. She’s always there to help out. She is treated like dirt by her richer, “best friend,” Veronica. As best I can tell, Veronica and the others mostly like Archie because Betty does. To some extent Veronica also likes to annoy her rich dad, who is portrayed as confident and proud, except when dealing with his spoiled daughter. This is old-time humor that you’ll also see in Spongebob, or (going further back) Balzac’s “Pere Goriot“.

Veronica bosses her dad around but also makes his life worthwhile, it seems. I assume he once had a wife that he loved. Now he’s got a white-haired companion, a butler, and some rich friends. The love-of-his-life is his daughter, it seems, and she is dating a free-loading cad. Veronica’s rival Betty comes from the same stable, modest backroad as Archie, but. Archie prefers life at Veronica’s house. The food is better, and there is a pool. Mr Lodge barely tolerates Archie and friends. The butler, Smithers, is less excitable, but not as tolerant.

The school also has two psychopaths, Midge and Moose, a dangerous pair. Moose Mason is a football player, dumb or brain damaged, and violently jealous of Midge. Midge, of course, flirts with everyone, and does it in front of Moose. The result is that Moose beats up any boys who respond, much to Midge’s delight. They are a sick and dangerous pair, but very realistic. Jughead, the only normal person in the comic, dislikes the pair, and dislikes both Veronica and Reggie. Jughead has a dog, and a little sister “Jellybean,” who he adores. he also has, to his chagrin, a female stalker, “Big” Ethel. She’s ugly and chases Jughead; Jughead avoids her. Jughead seems to like Archie, though, and is always loyal to him; it’s another of Jughead’s good traits. He’s always pointing Archie to Betty, as a good friend would. Meanwhile, Moose-the-homicidal is protected by “Coach Kleats,” a highly flawed character who’s obsessed with winning, and seems to have been hit in the head one time too many.

A bit more about Jughead (he got his own spinoff comic for a while). Jughead is a classic humor character from antiquity. He’s the Harlequin, the semi-loyal servant: poor, clever, resourceful, and always hungry. He’s the bird man of The Magic Flute. He’s Figaro, and the servant in Don Giovani. He’s Harlie Quinn in Batman. A harlequin makes his own clothes from patchwork, and true to type, Jughead is seen, virtually always wearing a sort-of crown, a “whoopee cap” of his own construction. Because Jughead is poor and lazy, everyone thinks him stupid, but he’s the only one clever enough to size up Midge and Veronica. Jughead’s crown is appropriate since he’s his own master. Archie comics were banned in Saudi Arabia because the Saudis took offense at the concept of a self-crowned king. It’s an unusual concept. In Riverdale, Jughead is a tortured poet who still wears a handmade crown for no obvious reason.

All these relationships had a surreal character. The relationships are funny because they are more real than reality. They also presented a simpler form of humor in that the lowly usually win, while the high and talented usually lose. Reggie commonly loses, as does Weatherbee. Then things began to change in the 2000’s when two token black characters were added: a top scholar/athlete, Chuck Clayton, and his dad, Floyd (or Harry) a wise, athletic, co-coach. These are characters without major flaws, and as such they are not funny. If a writer feels he must include a character like this, a writer should use him as a straight-man, Zeppo Marx for example. And even Zeppo Marx is presented as having a horrible flaw. In Marx Bros. movies, Zeppo is presented as being Groucho’s son. Comedy is built on flawed characters like this, who succeed, and on arrogant ones who fail. With the Claytons, you’re left wondering what comedy do they bring to the situation. Also, why do these individuals tolerate crazy Moose on the team?

In 2010, the writers added an openly gay character, Kevin Keller. A nice fellow, with no flaws who everyone likes. Really? Is there a teenager so comfortable with himself? Are there no homophobes anywhere in this school? By 2012, Kevin has grown up and is an anti-gun senator. Archie dies taking an assassin’s bullet for him. That’s heroic, and it solves some other ugly problems, but it killed the series. You don’t want an unhappy ending for a comedy. For a hint of what to do, consult Shakespeare.

Anarchy Andrews deals with his cool, pot-smoking father, Fred.

Turning now to my favorite spin-off, the underground comic, Anarchie. It’s the same batch of teenagers, more or less, navigating the same issues, but theirs is an ideal, socialist world where the revolution has won. In this world, everyone has plenty, drugs are legal, and there is no sexism, agism, racism, or shape-ism. This is a color-blind world where black and white live together, and where the gay fellow would fit right in, if anyone thought to draw them in. There is no work, but even without that pressure, and the old problems, everything isn’t great for the kids. There is still school, and Weatherby still hates Archie. The kids still have to deal with parents, even when the parents have turned-on to drugs and act cool. It’s good comedy, an up-ending of the social expectations. Most teens of my day seemed to think that socialism would solve all their problems.

noexit2
Jughead in the socialist future is a broken druggie, but still something of his own man.

For those who have not seen it, how would you expect the Archie to relate to a perfect socialist world. The answer is not well. His father smokes dope, but that doesn’t help. He’s also into recycling and yoga (yuck). Archie remains the same love stuck, philanderer disinterested in most everything else but girls. His friend, Jughead fares far worse, he’s a pock-marked, druggie, a far more likely outcome than Riverdale’s where Jughead is a tortured poet. Without societal pressures and a normal family, Jughead becomes an anarchis’s anarchist. A ruined misfit surrounded in the workers’ paradise. Jughead (now called “Ludehead” still has his crown, and is still his own person, after a fashion, but there is little room for that in a socialist utopia where all are equal.

Robert Buxbaum, August 6, 2019. In previous essays I talked about the humor of superman, and about the practical wisdom of Gomez Adams.