Category Archives: economics

Right to work is a right.

In 26 states you can work in a unionized industry without joining a union. You can even cross a union strike line if you like. It’s called “right to work.” Michigan allowed it up till last month, but no longer. Immediately following the Democrats’ taking majority of the MI legislature, they voted to make non-union membership illegal. The claim was that those who do not want to be represented by the state-acknowledged union is misguided, or worse.

The argument for making union membership mandatory is presented in the poster at right. It notes that states that banned right to work are richer, with workers getting higher pay and benefits. These include California, New York, NJ, Washington, Alaska,.. See the map below. Although these states, on average have higher yearly wages, they also have higher taxes, higher costs of living, and more high-tech jobs. The cause and effect implied by this poster is erroneous, I think: The claim is that if you are forced to join a union you will be paid more with more benefits. I strongly suspect that the reality is that these states have high wages and high benefits and a lot of people working in safe fields, programming for example. They then force workers to work for one union so they’ll be easier managed, not because they want a strong opposition.

Another thing, even if you could guarantee higher wages by forced union membership, and you could avoid the high taxes and high cost of living that you find in NY and California, no person should be forced to accept representation by a group that they don’t get to choose, or who supports social goals that the worker doesn’t support. I don’t believe this is fair, or moral, but that’s how it is. It’s the law in most every state with a Democrat as governor and where Democrats control the legislature.

Right to work as of last month, before Michigan forced unionism.

Union membership had been declining in Michigan for years, but it took a particular nose dive in 2016 when the unions spent heavily for Clinton while blue collar workers supported Trump. It was 14% or workers before the law changed. Workers claimed that their unions were working against them, and complained about how their dues were spent. It also came out that some of the Michigan union bosses had stolen money from their funds to build fancy private houses — using non-union labor to do it. When the union bosses tried to show their muscle by calling strikes, the strikes accomplished little, or went on for months. The results were two-tier salaries, layoffs, and business failures. The working for the local newspapers teamsters struck, and one newspaper collapsed. The other chose non-union drivers. The teamsters are still on strike, 10 years later. I’d think a worker should be able to leave a union like this.

I’m a fan of unions, but think the worker should be able to choose. I’m a particular fan of craft unions that work to improve the quality of their work along with the quality of their workers lives. This helps everyone. I suspect that unions should not be able to support political parties too. See my thoughts on unions, here.

Michigan has a particularly strong history of crooked union bosses. When Jimmy Hoffa challenged the Teamster bosses over how the retirement fund was spent, he vanished. The union’s bosses seem to have had him killed. The last place where he was seen alive is an Andiamo Restaurant near my home. He was picked up by someone he knew, perhaps his nephew. No one’s talking and his remains were never found. In Michigan you used to be able to choose your union just as you chose your political club and your own lawyer, or you could choose none at all. Nowadays, the law says otherwise. Maybe you don’t like this law. Maybe you don’t like the union boss or how he’s spending. Maybe you’d like to visit with Jimmy Hoffa.

Robert Buxbaum May 19, 2023. Aside from everything else, you have a right to have a state that isn’t high-wage, high-tax, even if you could prove people were happier in such states. Freedom is a good, in and of itself.

Hydrogenation, how we’ve already entered the hydrogen economy

The hydrogen economy is generally thought to come in some distant future, where your car (and perhaps your home) runs on hydrogen, and the hydrogen, presumably, is made by clean nuclear or renewable solar or wind power. This is understood to be better than the current state of things where your car runs on dirty gasoline, and your home runs on coal or gas, except when the sun is shining bright and the wind is blowing hard. Our homes and cars can not run on solar or wind alone, although solar cells have become quite cheap, because solar power is only available in the daytime, basically for 6 hours, from about 9AM to 3PM. Hydrogen has been proposed as a good way to store solar and wind energy that you can’t use, but it’s not easy to store hydrogen — or is it? I’d like to suggest that, to a decent extent, we already store green hydrogen and use it to run our trucks. We store this hydrogen in the form of Diesel fuel, so you don’t realize it’s hydrogen.

Much of the oil in the United States these days comes from tar sands and shale. It doesn’t flow well at room temperature, and is too heavy and gooey for normal use. We could distill this crude oil and use only the light parts, but that would involve throwing away a huge majority of the oil. Instead we steam reform it to gasoline, ethylene and other products. The reaction is something like this, presuming an input feed of naphtha, C10H8:

C10H8 + 2 H2O –> C7H8 + C2H4 + CO2.

The C2H4 component is ethylene. We use it to make plastics. The C7H8 is called toluene. It is a component of high octane gasoline (octane rating about 114). The inventor of the process, Eugene Jules Houdry claimed to have won WWII for the allies because his secret process (Houdryflow catalytic cracking) allowed high production of lots of gasoline of very high octane, giving US and British planes and trucks higher mpg than the Germans or Japanese had. It was a great money maker, but companies can make even more by adding hydrogen.

Schematic of the hydrocracking process, from the US energy information agency

Over the last 2-3 decades, refineries have been adding catalytic hydrogenation processes. These convert high octane aromatic products, like toluene to low -octane diesel and jet fuel. These products sell for more. Aromatic toluene is exposed to hydrogen at about 500°C and 300 psi (20 bar) to produce heptane, an excellent diesel fuel with about 7% more energy content than toluene per gallon.

C7H8 + 4H2 –> C7H16.

Diesel fuel sell for about 20% more than gasoline per gallon, in part because of the higher energy content, and because Diesel engines are more efficient than gas engines. What’s more, toluene expands as it’s converted to heptane. One gallon of toluene converts to 1.16 gallons of heptane. As a result hydrogenation adds about 40% to the sales price per molecule. Refineries have found that they can make significant money this way if they can buy cheap hydrogen. Over the last few years, several refineries in Norway and Texas (high sun and wind areas) have added hydrogenators along with electrolysis units to produce the cheap hydrogen when no one needs the unwanted electricity generated when supply exceeds demand. Here is an analysis of the thermodynamics of this type of hydrogen generation.

Robert Buxbaum, May 11, 2023

Canada’s doctor-assisted suicide killed 10,064 in 2021

Canada’s healthcare is free to the user. It’s paid for by taxes, and it includes a benefit you can’t get in the US: free, doctor assisted suicide, euthanasia. This is a controversial benefit, forbidden in the Hippocratic oath because it’s close to murder, and includes the strong possibility of misuse of trust. Assistance by a trusted professional can be a bit likes coercion, and that starts to look like murder — especially since the professional often has a financial incentive to see you off.

From Charlie Hebdot (a French, humor magazine): The medical association refuses to participate in euthanasia — Why? People are already dining quite well on their own waiting in the emergency room.

In 2021, according to Statistics Canada, Canada assisted the suicide of 10,064 people, 3.3% of all Canadian deaths. There were about 4,000 more, non-assisted suicides. In Quebec, the Canadian Provence where Medical Assistance in Dying (MAiD) is most popular, 5.1% of deaths result from MAID. The Netherlands has a similar program that results in 4.8% of deaths. In Belgium, it’s 2.3%. These countries’ suicide rates are far higher than in the US, and account for far more deaths, per capita than from guns in the US. My guess is that suicide is common because it is free and professional. It’s called “Dignity in Dying,” in Europe, a title that suggests that old folks who don’t die this way are undignified.

In Canada, about 80% of those who requested MAiD were approved. A lot of the remainder were folks who died or changed their mind before receiving the fatal dose. If you attempt suicide on your own, it’s likely you won’t succeed, and you may not try again. With doctor assisted suicide, you’re sure to succeed (even if you change your mind after you get your lethal shot?)

In Canada you don’t have to be terminally ill to get MAiD, you just have to be in pain, and extreme psychological pain counts. Beginning March 17, 2024, depression will be added as a legitimate reason. According to Canadian TV news, depressives are lining up (read some interviews here). Belgium and Netherlands allows elders to be euthanized for dementia, and children to be euthanized on the recommendation of their parents. France passed similar legislation, but the doctors refused to go along, see cartoon. I applaud the French doctors.

Rodger Foley says he’s being pressured to ask for medical suicide, picture from the NY Post

There have been persistent claims that Canadian doctors and nurses push assisted suicide on poor patients, telling them how much bother they are and how much resources they are using. There has been an outcry in British and American newspapers, e.g. here in the Guardian, and in the NY Post, but not in Canada, so far. Rodger Foley, a patient interviewed by the NY Post, recorded conversations where his doctors and nurses put financial pressure on him. “They asked if I want an assisted death. I don’t. I was told that I would be charged $1,800 per day [for hospital care]. “I have $2 million worth of bills. Nurses here told me that I should end my life.” He claims they went so far as to send a collection agency to further pressure him. In another case, a disabled Canadian veteran asked for a wheelchair ramp, and was told to apply for MAiD.

Even without outside pressure, many people seeking MAiD often cite financial need as part of the reason. A 40 year old writer interviewed by Canadian television said that he can’t work and lives in poverty on a disability payment of just under $1,200 a month. “You know what your life is worth to you. And mine is worthless.”

The center of the argument is the value of a person in a social healthcare state when their economic value is less than the cost of keeping them alive. Here, Sabine Hossenfelder, an excellent physicist, argues that the best thing one could do for global warm and to preserve resources is to have fewer people. Elon Musk says otherwise, but Ms Hossenfelder claims this only shows he is particularly unworthy. There’s a Germanic logic here that gave us forced euthanasia in the 1940s.

I find euthanasia abhorrent, especially when it’s forced on children, the elderly, and depressed folks. I also reject the scary view of global warming, that it is the death of the earth. I’ve argued that a warm earth is good, and that a cold earth is bad. Also, that people are good, that they are the reason for the world, not its misfortune. It seems to me that, if suicide aid must be provided, state-funded hospitals should not provide it. They have a financial incentive to drop non-paying, annoying patients. That seems to be happening in Canada. A patient must be able to trust his or her doctor, and that requires a belief that the doctor’s advice is for his or her good. Unfortunately, Canadian politicians have decided otherwise. I say hurray for the doctors of France for not going along.

Robert Buxbaum, April 25, 2023. The medical profession is shady even when you pay for services, see Elvis Presley’s prescription. There’s always a financial interest. Even based on old data, the US is not a particularly high-murder country if suicide is considered murder.

Britons did better than Germans since Brexit

Britain and Germany are the two largest economies in Europe. When Britain voted to leave the EU seven years ago, 23 June 2016, economists, royals, and the richer, smarter set predicted disaster. The unemployment rate at the time was 5.2% in the UK; economists guaranteed it would rise with Brexit due to the loss of access to the common market. Unemployment fell to 3.7% today: Embarrassing for economists, a bonus for British workers. Germany unemployment today is 5.6%, basically slightly higher than the 4.3% of 2016. There has been a large influx of Ukrainians into both countries, and of illegal boat people into the UK. These are people coming to get jobs, seeking a better life than available in the rest of the EU. That boat people don’t go the other way suggests that things are better in the UK.

Fromm Bloomberg, October 2022. See full article here. UK unemployment is down to 2.5% in February 2023.

Britain’s GDP was supposed to suffer from Brexit, too. Instead, GDP has grown by 18% since 2016, about 2.5% per year on average, outpacing Germany’s 10.6% total growth, 1.5% per year. Between 2016 and 2022, the British GDP rose to $3.19T from $2.7 T. Germany’s GDP increased to $3.57T, from $3.14T (data from the world bank). Separating from the EU helped, it seems and helped us too something Trump promoted. Germany chose close ties to Russia instead. That does not seem to be a big plus.

German Inflation has traditionally been low. It has increased in the past few months due to rising food and energy costs.

Inflation is higher in the UK than in Germany, 10.4% as of February 2023 versus 8.7% in Germany, or 9.9% in the European Union and a whole. I don’t think that’s Brexit. The UK typically has seen higher inflation rate than Germany, something seen by the steady drop of the pound. They have a tradition of inefficiency and silliness. Part of the problem today is that Britain gets much of its electricity from natural gas, while the French use nuclear power. Nuclear is cheap and clean, compared to natural gas. Coal is cheap and dirty; China uses it extensively and plans to use more. But the real cause of the UK’s higher inflation is inherent in the British and Germans, IMHO. The Germans hate inflation, the Brits don’t mind.

Population growth (green) or decline (orange) in Europe

For high-power, white collar workers, Britain seems to be as good a spot as Germany, maybe better. Maximum tax rates are slightly lower than in Germany (45% vs 47.45%), and the population is growing (slowly). Apparently, people like it enough to come there and have children; children are a good sign, IMHO. It’s harder to get good workers, but population growth suggests that the problems won’t be catastrophic (as they were in Japan, and likely will be in Germany). If you want a developed economy with yet-lower taxes, plus good workers, the US is the place to be, IMHO. Our maximum tax rate is 37%. You get fewer free services (healthcare), but you can earn enough to afford it. Prince Harry moved to the US recently, joining foot-baller David Beckham, and Pele a few years back. Former Python, John Cleese, came here too… They complain that Americans are cheap when it comes to helping others (but that’s out attraction). They claim that we’re violent and crass (true enough!) but say that the UK isn’t what it was. The fact that refugees seem to prefer the UK to Germany, suggests that Britain is a place to go. Britain, I’d say seems to have come out pretty well from Brexit.

Robert Buxbaum, April 11, 2023

Abortion and Childbirth in the US vs China

There are a lot of abortions in China, and not many births. Last year, there were about 9.7 million abortions in the major clinics and almost 12 million live births. That’s about 8.5 live births per 1000 Chinese population and 79.7 abortions per 100 live births. If you include the minor clinics and the abortion pill, it’s likely that there are more abortions than live births in China. It’s the preferred method of birth control. In the US, the ratio of abortions to births has grown but we have only about 1/4 as many abortions as births.

Births and abortions per year in China to 2020, from The Economist, 2023. The biggest change is decreased births, not increased abortions.

The birthrate in China is low and decreasing. China had pushed for one-child families as a cure for overpopulation and a route to a richer China with abortion promoted as a safe, painless way to end an unwanted pregnancy. Billboard ads continue to show happy women who are leading their best life now that they’ve had an abortion. Of course, during the one-child years, if you had that extra baby, the state might take your baby him or her. Condom ads were forbidden, and remain so to this day.

China seems to have succeeded too well. The population has leveled out, and has began to decline this year — likely too fast. Meanwhile the economy has grown by an average of 10% per year for 40 years, so that China is now, likely the second largest economy on the planet, but has such an old population that this is unlikely to continue. One down-side of the heavy reliance on abortion is that it’s produced a severe sex imbalance. The Chinese chose to abort mostly girls. It’s also resulted in an active sex trade. I’ve claimed it will lead to war, famine, or an economic collapse in the next ten years.

Add for a Chinese abortion clinic. See how happy the lady is. Chinese ads have English because it’s cool — it suggests that this clinic serves Americans and British too.

In the US, there were 3,664,000 births in 2022, 12.012 births per 1000 people. That’s 1.5 times the birth rate of China, and a 1% increase from 2020, but significantly below the birthrate of the boomer generation. In the last year, there were 928,000 abortions, see graph below, or 25.3 abortions per 100 live births. Our population is as old as China’s, but the additional children suggests that our society will continue longer.

In America, the case for abortion is that it’s a woman’s right, see ad below. Anti-abortion is presented as slavery and a Republican plot for male domination. Politically, this has been a winning argument for Democrats; helping them win big in elections. They made good on the argument and amended the Michigan constitution to allow abortion till birth with the father having no say. The legal and religious establishment has gone along. They may want some limitations, but there is no consensus on what the limitation should be.

Abortions per year, US, Guttmacher Inst. report, 2022.

It’s been suggested that a good way to lower the abortion rate would be higher taxes to provide more healthcare and child benefits. That may be, though I’m not sure it’s the direct, sure route. China has free healthcare and benefits. I suspect that the preachers should do more personally to deal with the vulnerable. Another thought is to promote is rural living. In the US and China, rural areas have higher birth rates, while the cities have low birth rates and high abortion rates. The highest abortion rate in the US is in Washington DC.

In the US, abortion is presented as a right, and as a Republican anti-woman plot.

My overall sense is that Children are good: Admittedly, they are expensive hobbies, but they are worth it, for the parents, for the nation, and in particular for the child. Children are a beautiful part of life and a beautiful part of any environment, IMHO. They like to grow amid sunshine and fresh air.

Robert Buxbaum, March 14, 2023

Germany is the biggest loser in a long Ukraine war

Early in the Ukraine War with Russia, Poland sent 200 T-72 battle tanks to Ukraine. Most other NATO members joined in, sending tanks, missiles, guns, supplies and technology. Germany sent nothing and have continued to avoid helping Ukraine as much as possible while the war dragged on for a year. Germany seems to have hoped for a quick Russian victory leading to a quick return to the pre-war, state of affairs. That’s not likely. Even early on, the war looked like a slow, long slog. Reluctantly, this month, Germany promised to send 18 Leopard tanks to Ukraine, requesting as replacements, mothballed tanks from Switzerland.

Germany is currently the 4th largest economy in the world, just behind Japan, and ahead of India (for now). They also have the 3rd oldest population. Their place as the leading economic and political power in Europe rests on a close relationship with Russia that is fading, bringing Russian goods west and manufacturing with them. Before the war, Germany imported most of its oil and 65% of its natural gas from Russia. Much of the gas came via two direct pipelines, Nord Stream, that bypassed the rest of Europe. Well into the war, while the rest of Europe disengaged, Germany is still buying from Russia and funneling it west: steel, aluminum, titanium, ammonia and platinum. Germany is still buying some Russian natural gas by way of Poland. The German economy is based on turning these materials into cars, high tech machines, and chemicals for export to the US, the EU, and China. Despite the very old population, Germany counts on cheap labor from low wage EU nations. These transient, long term. workers do not get citizenship or retirement benefits. The current war has presented Germany with more potential workers, Ukrainian refugees, but far fewer Russian supplies. The German economy is shrinking, and so far, the Ukrainian refugees have been mostly left unemployed.

Ex German Chancellor, Gerhard Schroeder, with Putin. He’s now head of Nordstream and Rosneft.

German industrial production is down by about 4% this year leaving its GPD at about $4T/year, about where it was in 2018. The US economy and the rest of Europe has grown. For an explanation, consider Germany’s ex-chancellor, Gerhard Schroeder, shown at left with Putin. Schroder remains a leader in the ruling SDP party, the party of Ms Merkel and of the current chancellor. He is also the chairman of the board for Nord Stream AG and of Rosneft, (Russian aerospace). He also sits on the board for Gasprom (Russia’s energy conglomerate), Rothschild, a prominent International bank, and is chairman of the board of the Hannover 96 football club. He is symbolic of Germany’s attachment to Putin and Russia. But the rest of the EU, along with the rest of the developed world, has come to hate Putin and Russia (they’re not too fond of Rothchild either). Europe is unlikely to tolerate Germany’s Russian imports, including titanium (65% of Airbus titanium comes from Russia) or natural gas. Germany has asked for a titanium exception (and been denied). What’s more, three of the four Nord Stream pipelines have been blown up (by whom?) leaving Germany to buy natural gas from its NATO allies: Norway, Britain, France Holland, and the US. Gas purchases are expensive for Germany while helping its NATO neighbors — Germany has asked to be subsidized for energy too (unlikely, imho). It has also restarted old coal-burning power plants, an insult to the EU given how hard Germany pushed them on climate change.

Germany is now near recession. Much of Europe is close, but Germany is worse-off since they are buying from the rest.

Percent of population over 65, CIA Factbook.

Much of the EU can sell gas and food to Germany, and Russia can export to China, India, and Iran. German inflation averaged 8.5% last year (9.2% in January). That is not hyperinflation, but a shock for a country that’s averaged 1% inflation over the last 25 years. US inflation, by comparison was 7.5% last year — due to excess spending by the Democrats (imho), the so- called “inflation reduction act,” but at least the US economy grew, along with the US population. It seems to me that, without Russian supplies, Germany will continue to slip versus the world and versus the EU.

Excess mortality for European countries has been very high for the last 6 months, especially in Germany. Death rates are up by 25% or so. Much of it is heart-related. Perhaps it’s COVID, or long COVID, or air pollution, or vaccines, or depression.

The German population is dying too. They too among the highest percent population over 65, see map. The death rate has spiked 25% over the last 6 months, too. Europe and much of the EU saw similar spikes earlier in the pandemic, partially from COVID, the rest is alcoholism, drugs, the vaccine, pollution, or a psycho-somatic response to isolation and the war. Sweden has largely avoided these problems so far.

Germany has been propping up its inefficient industries with low cost loans. The idea, presumably, is that things will go back to normal soon, and the companies will make good. So far, the war goes on, and the loans discourage competition and modernization. It becomes ever more likely that these inefficient German companies will default. If so, they could take down their lenders as happened in Japan in the 90s, and as happened to Lehman Bros. in the US. The same seems likely for China.

It becomes ever more likely that these inefficient German companies will default.

Even if the war ended tomorrow, it’s not clear that Germany could go back to its pre-war status. The blown Nord Stream pipelines will need a year or more to repair. And may never restart, as sanctions might remain long after the fighting ends, as with Cuba or North Korea. Russia seems to have recognized this possibility, and has begun sending titanium, gas, and oil elsewhere, mostly to Iran, India, and China. Iran has become a major customer of Russian aluminum, and food, and is a major supplier of drones and consumer goods to Russia. In the last two years, the Iranian GDP has doubled to about $2T/year. It is now nearly half the size of Germany’s GDP and growing while Germany shrinks.

Russia’s trade with India and China has grown too. They are working to improve the Trans-Iranian railroad that would allow easy shipments from Russia to India and China via the port of Tehran. The first direct shipment of this sort was completed in July 2022– Caspian Sea containers to an Iranian train to ship to India and China. If the war goes on, Iran, India, and China will benefit at the expense of Germany, it seems. India, in particular. India’s economy is already approaching the size of Germany’s, and will probably pass it with the help of Russia’s energy and raw materials. Meanwhile, Germany is left with an aging population and aging industries; with few suppliers, and no obvious competitive advantages. Europe is almost as badly positioned, but they can still sell to Germany. As for Ukraine, it seems to be doing well, despite the war — or because of it. They still grow and export food and energy, and they are holding their own in the war, for now. There is destruction in the east, but Ukraine might come out stronger, as happened with South Korea and Vietnam. Russia too seems to have found new customers and might come out OK. It is hard to see how Germany comes out well. This, at least, is how I see things today.

Robert Buxbaum, March 8, 2023.

Birth dearth in China => collapse? war?

China passed us in life-expectancy in 2022, and also in fertility, going the other way. In China lifespan at birth increased to 77.3 years. In the US it dropped an additional 0.9 years, to 76.8. US lifespans suffered from continuing COVID and an increase in accidents, heart disease, suicide, drugs, and alcohol abuse. Black men were hit particularly hard, so that today, a black man in the US has the same life expectancy as he would in Rwanda. China seems to have avoided this, but should expect problems due to declining fertility and birth rates.

China passed us in life expectancy in 2022.

Fertility rates will eventually burden the US too, as US fertility is only slightly greater than in China, 1.78 children per woman, lifetime, compared to 1.702 in China. But China has far fewer people of childbearing ages, relatively, and only 47% are women. Three decades of one child policy resulted in few young adults and a tendency to abort girls. Currently, the birthrate in China is barely more than half ours: 6.77 per 1000, compared to 12.01 per 1000. And the proportion of the aged keeps rising. China will soon face a severe shortage of care-givers, and an excess of housing.

Years of low birthrate preceded the “Lost decades” of financial crisis in Japan and the USSR. Between 1990 and 2011, business stagnated and house prices dropped. China faces the same; few workers and more need for care: it’s not a good recipe.

Beginning about 1991, Japan saw a major financial collapse with banks failing, and home values falling. China seems over-due.

Few children also signals a psychic lack of confidence in the country, and suggests that, going forward, there will be a lack of something to work for. Already Chinese citizens don’t trust the state to allow them to raise healthy children. They have stopped getting married, especially in the cities, and look more to have fun.

Affluent women claim they can’t find a good man to marry: one who’s manly, who will love them, and who will reliably raise their standard of life. Women seem less picky in China’s rural areas, or perhaps they find better men there. However it goes, urban women get married late and have few children, both in China and here. China produces great, sappy, soap operas though: a country girl or secretary in a high-power job meets a manly, urban manager who lovers her intensely. A fine example is “The Eternal Love” (watch it here). It involves time travel, and a noble romance from the past. Japan produced similar fiction before the crisis. And a crisis seems to be coming.

While Japan and Korea responded quietly to crisis and “the lost decades,” allowing banks to fail and home values to fall, Russia’s response was more violent. It went to war with Chechnya, then with Belarus and Ukraine, and now with NATO. I fear that China will go to war too — with Taiwan, Japan, and the US. It’s a scary thought; China is a much tougher enemy than Russia. There is already trouble brewing over new islands that they are building.

Robert Buxbaum January 25, 2023. If you want to see a Korean soap opera on the Secretary – manager theme, watch: “What’s wrong with Secretary Kim”. (I credit my wife with the research here.) I suspect that Americans too would like sappy shows like this.

My hero, Peter Cooper of New York, 1791-1883.

Peter Cooper

It’s good to have hero, someone whose approach to life, family and business you admire that you might reasonably be able to follow. As an engineer, inventor, I came to regard Peter Cooper of New York as a hero. He made his own business and was a success, in business and with his family without being crooked. This is something that is not as common as you might think. When I was in 4th grade, we got weekly assignments to read a biography and write about it. I tended to read about scientists and inventors then and after. I quickly discovered that successful inventors tended to die broke, estranged from their family and friends. Edison, Tesla, Salk, Goodyear, and Ford are examples. Tesla didn’t marry. Henry Ford’s children were messed up. Salk had a miserable marriage. Almost everyone working on the Atom Bomb had issues with the government. Most didn’t benefit financially. They died hated by the press as mass-murderers, and pursued by the FBI as potential spies. It was a sad pattern for someone who hoped to be an inventor -engineer.

The one major exception I found was Peter Cooper, an inventor, industrialist, and New York politician who was honest, and who died wealthy and liked with a good family. One result of reading about him was to conclude that some engineering areas are better than others; generally making weapons is not a path to personal success.

Tom Thumb, the blower at right is the secret to its light weight per power.

Peter Cooper was different, both in operation and outcome. Though he made some weapons (gun barrels) and inverted a remote control torpedo, these were not weapons of mass killing. Besides he but thee for “the good side” of the Civil War. And, when Cooper made an invention or a product, he made sure to have the capital available to make a profit on it too. He worked hard to make sure his products were monopolies, using a combination of patents and publicity to secure their position.

Brand management helps.

Cooper was a strong family man who made sure to own his own business, and made sure to control the sources of key materials too. He liked to invest in other businesses, but only as the controlling share-holder, or as a bond holder, believing that minor share-holders tend to be cheated. He was pro monopoly, pro trusts, and a big proponet of detailed contracts, so everyone knew where they stood. A famous invention of Cooper’s was Jello, a flavored, light version of his hide-glue, see the patent here. Besides patenting it, he sold the product with his brand, thus helping to maintain the monopoly.

Cooper was generous with donations to the poor, but not to everyone, and not with loans. And he would not sign anyone’s note as a guarantor. Borrowers tended to renege, he found, and they resent you besides. You lose your money, and lost them as a friend. He founded two free colleges, Cooper Union, and the Cooper-Limestone Institute, plus an inventor’s institute. (I got my education, free from Cooper Union.) Cooper ran these institutions in his lifetime, not waiting till he was dead to part with his money. Many do this in the vain hope that others will run the institution as they would.

Peter Cooper always sought a monopoly, or a near monopoly, patenting his own inventions, or buying the rights to others’ patents to help make it so. He believed that monopolies were good, saying they were the only sort of business that made money while allowing him to treat his workers well. If an invention would not result in a monopoly, Peter Cooper gave the rights away.

The list of inventions he didn’t patent include the instruments to test the quality of glue and steel (quality control is important), and a tide-powered ferry in New York. Perhaps his most famous unpainted invention was a lightweight, high power steam locomotive, “The Tom Thumb”, made in 1840. Innovations included beveled wheels to center the carriage on its rails, and a blower on the boiler fire, see photo above. The blower meant he could generate high-power in a small space at light weight. These are significant innovations, but Cooper did not foresee having a monopoly, so he didn’t pursue these ideas. Instead, he focussed on making rails and wire rope; he patented the process to roll steel, and the process for making coke from coal. Also on his glue/jello business. Since he made these items from dead cows and horses, he found he could also sell “foot oil” and steam-pounded leather, “Chamois”. He also pursued a telephone/ telegraph business across the Atlantic, more on that below, but only after getting monopoly rights for 50 years.

Cooper managed to stay friends with those he competed with by paying license fees for any patents he used (he tried to negotiate low rates), or buying or selling the patent rights as seemed appropriate. He also licensed his patents, and rented out buildings he didn’t need. He rented at a rate of 7% of the sale price, a metric I’ve used myself, considering rental to be like buying on loan. There is a theory of stock-buying that matches this.

The story the telegraph cable across the Atlantic is instructive to seeing how the pieces fit together. The first significant underwater cable was not laid by Cooper, by a Canadian inventor, Frederick Gisborne. It was laid in 1852 between Prince Edward Island and New Brunswick. Through personal connections, Gisborne’s company got exclusive rights for 30 years, for this and for a cable that would go to Newfoundland, but he didn’t have the money or baking to make it happen. The first cable failed, and Gisborne ran out of money and support. Only his exclusive rights remained. This is the typical story of an inventor/ engineer/businessman who has to rely on other peoples’ money and patience.

A few months after the failure, a friend of Cooper’s, Cyrus Field, convinced Cooper that good money could be made, and public good could be done, if Cooper could lay such a cable all the way to London. One thing that attracted Cooper to the project was that the cable could be made as an insulated iron-copper rope in Cooper’s own factory. Cooper, Field, and some partners (see painting below) bought Gisborne’s company, along with their exclusive rights, and formed a new company, The New York, Newfoundland & London Telegraph Company, see charter here. The founders are imagined* with a globe and a section of cable sitting on their table. Gisborne, though not shown in the painting, was a charter member, and made chief engineer. Cooper was president. He also traveled on the boat with Gisborne to lay the cable across the St. Lawrence – just to be sure he knew what was going on. This cable provided a trial for The Trans Atlantic cable.

The founding individuals to lay a transatlantic cable. Peter Cooper at left is the chairman, Cyrus Field is standing, Samuel Morse is at the back. Frederic Gisborne, a founder, does not appear in the paining. Typical.

Samuel Morse was hired as an electrician; he is pictured in the painting, but was not a charter member. Part of the problem with Morse was that he owned the patent on Morse-telegraphy, and Cooper didn’t want to pay his “exorbitant” fees. So Cooper and Field bought an alternative telegraph patent from David Hughes, a Kentucky school teacher. This telegraph system used tones instead of clicks and printed whole letters at a time. By hiring Morse, but not his patents, Cooper saved money, while retaining Morse’s friendship and expertise. The alternative could have been a nasty spat. Their telegraph company sub-licensed Hughes’s tone-method a group of western telegraph owners, “The Western Union,” who used it for many years, producing the distinctive Western Union Telegrams. With enough money in hand and credibility from the Canadian trial, the group secured 50 years monopoly rights for a telegraph line across the Atlantic. Laying the cable took many years, with semi-failed attempts in 1857, 1858, and 1865. When the eventual success came in 1866, the 50 years’ monopoly rights they’d secured meant that they made money from the start. They could treat workers fairly. Marconi would discover that Cooper wrote a good contract; his wireless telegraph required a widely different route.

I should also note that Peter Cooper was politically active: he started as a Democrat, helped form the Republican Party, bringing Lincoln to speak in NY for the first time, and ended up founding the Greenback-Labor Party, running for president as a Greenback. He was strongly for tariffs, and strongly against inflation. He said that the dollar should have the same value for all time for the same reason that the foot should have the same length and the pound the same weight. I have written in favor of tariffs off and on. They help keep manufacturing in America, and help insure that those who require French wine or German cars pay the majority of US taxes. They are also a non-violent vehicle for foreign policy.

Operating under these principles, through patents and taxed monopolies, Peter Cooper died wealthy, and liked. Liked by his workers, liked by much of the press, and by his family too, with children who turned out well. The children of rich people often turn out poorly. Carnegie’s children fought each other in court, Ford’s were miserable. Cooper’s children continued in business and politics, successfully and honorably, and in science/ engineering (Peter Coper Hewitt invented the power rectifier, sold to Westinghouse). The success of Peter Cooper’s free college, Cooper Union, influenced many of his friends to open similar institutions. Among his friends who did this were Carnegie, Pratt, Stevens, Rensselaer, and Vanderbilt. He stayed friends with them and with other inventors of the day, despite competing in business and politics. Most rich folks can not do this; they tend to develop big egos, and few principles.

Robert Buxbaum, November 30, 2022. I find the painting interesting. Why was it painted? Why is Gisborne not in it and Morse in the painting — sometimes described as vice President? The charter lists Morse as “electrician”, an employee. Chandler White, holding papers next to Cooper, was Vice President. My guess is that the painting was made to help promote the company and sell stock. They made special cigars with this image too. This essay started as a 5th grade project with my son. See a much earlier version here.

A new, higher efficiency propeller

Elytron biplane, perhaps an inspiration.

Sharrow Marine introduced a new ship propeller design two years ago, at the Miami International Boat show. Unlike traditional propellers, there are no ends on the blades. Instead, each blade is a connecting ribbon with the outer edge behaving like a connecting winglet. The blade pairs provide low-speed lift-efficiency gains, as seen on a biplane, while the winglets provide high speed gains. The efficiency gain is 9-30% over a wide range of speeds, as shown below, a tremendous improvement. I suspect that this design will become standard over the next 10-20 years, as winglets have become standard on airplanes today.

A Sharrow propeller, MX-1

The high speed efficiency advantage of the closed ends of the blades, and of the curved up winglets on modern airplanes is based on avoiding losses from air (or water) going around the end from the high pressure bottom to the low-pressure top. Between the biplane advantage and the wingtip advantage, Sharrow propellers provide improved miles per gallon at every speed except the highest, 32+ mph, plus a drastic decrease in vibration and noise, see photo.

The propeller design was developed with paid research at the University of Michigan. It was clearly innovative and granted design patent protection in most of the developed world. To the extent that the patents are respected and protected by law, Sharrow should be able to recoup the cost of their research and development. They should make a profit too. As an inventor myself, I believe they deserve to recoup their costs and make a profit. Not all inventions lead to a great product. Besides, I don’t think they charge too much. The current price is $2000-$5000 per propeller for standard sizes, a price that seems reasonable, based on the price of a boat and the advantage of more speed, more range, plus less fuel use and less vibration. This year Sharrow formed an agreement with Yamaha to manufacture the propellers under license, so supply should not be an issue.

Vastly less turbulence follows the Sharrow propeller.

China tends to copy our best products, and often steals the technology to make them, employing engineers and academics as spys. Obama/Biden have typically allowed China to benefit for the sales of copies and the theft of intellectual property, allowing the import of fakes to the US with little or no interference. Would you like a fake Rolex or Fendi, you can buy on-line from China. Would you like fake Disney, ditto. So far, I have not seen Chinese copies of the Sharrow in the US, but I expect to see them soon. Perhaps Biden’s Justice Department will do something this time, but I doubt it. By our justice department turning a blind eye to copies, they rob our innovators, and rob American workers. His protectionism is one thing I liked about Donald Trump.

The Sharrow Propeller gives improved mpg values at every speed except the very highest.

Robert Buxbaum, September 30, 2022

Biden stops fracking and gas prices go up 300% — Surprise!

Natural gas prices for June 2022 as of May 6, 2022.

Natural gas prices have quadrupled in the last 17 months. It’s gone from $2.07 per million BTU in mid January 2021 when Joe Biden took office, to nearly $9 today. It’s a huge increase in the cost to heat your home, and adds to the cost of any manufactured product you buy. Gasoline prices have risen too, going from $2/gallon when Biden took office to about $4.40 today. Biden blames the war with Russia, but the rise began almost as soon as he took office, and it far outstrips the rise in the price of wheat shown below (wheat is grown in Ukraine — it’s their major export). The likely cause is Biden’s moratorium on fracking, including his decision to stop permitting oil exploration and drilling on federal land. In recent weeks Biden has walked back some of this, to the consternation of the environmentalists. On April 15, 2022, the Interior Department announced this significant change including its first onshore lease sale since the moratorium.

Biden also cancelled the Keystone XL oil pipeline that would have brought tar-sands oil from Canada and North Dakota to Texas for refining. Blocking the pipeline helped increase gas prices here and helped cause a recession in Alberta and North Dakota. The protesters who claimed to speak for the natives are not affected.

Another issue fueling price increases is that Biden is printing money. Bidenflation is running at 8%/year. It’s not hyperinflation, but it’s getting close. It’s money taken from your pocket and from your savings. Much of the money is given to friends: to groups that Biden thinks will use it virtuously, but inflation is money taken from us, from our pockets and savings. Another beneficiary are those who are rich enough to take no salary, but live by borrowing against their real estate and corporate equity. The richest people in the US do this, earning $1 per year or less, (here’s a list compiled by Bloomberg, it’s basically every rich person). They pay no taxes, as they have no income. The only way to tax them is by tariffs, taxing what they import, but the government is against tariffs.

What you can do, personally about energy-cost inflation is not much. I would recommend insulating your home. I plan to repaint the roof white, and put in a layer of roof insulation. I also have fruit trees: an apple tree and a peach tree, grapes and a juneberry. They provide summer shade, and you get a lot of fruit with minimal work. Curtains are a good investment. Another thought is to buy solar cells. A vegetable garden is fun too, but it’s unlikely to pay you back.

Winter wheat prices are up by about 40%, likely due to the loss of supply from Ukraine and Russia

Speaking of wheat prices, they are up. They increased 40% when Russian troops invaded Ukraine, and have held steady at that level since. This is far less increase than for natural gas. Corn and rice prices are up too, but nowhere near as much. Fertilizer prices are up 300%, though, and Biden has indicated he’d like to push for a sustainable alternative; is that poop? There is a baby formula shortage too. We can handle it, I think, unless Biden get involved, or starts a hot war with Russia.

Robert Buxbaum May 10, 2022. As a fun sidelight, here is Biden answering questions about Pakistan when someone in a Bunny costume grabs him and walks him away from the reporters. Who is that masked handler? What’s going on in Pakistan?