Category: Economics

Yellowed catalog page with photos of 5 portable typewriters labeled A-E with blocks of corresponding text below to describe them all and provide their list prices. The headline over the description reads: PORTABLE TYPEWRITERS.. NEW post-war models

Digging into some typewriter pricing history, I found a copy of the 1949 Sears Spring/Summer Catalog, which lists a version of my 1949 Royal Quiet De Luxe typewriter (Sears SKU: 3 NM 4584T with Pica Type) for $95.08 on page 285. 

Converting 1949 dollars to 2024 using an inflation calculator indicates this is now worth $1,247.75. Considering that I got it for less than the original sale price in 2024 (including shipping) and that it works as well now as it did then, I feel like I got a pretty solid deal.

For comparison the competing portable models in the catalog included:

  • Royal Arrow $84.48
  • Smith-Corona Clipper $84.27
  • Smith-Corona Sterling $89.57
  • Remington Portable $84.27
  • Remington Portable with Tabulator $89.57
  • Underwood Leader $63.40

They also listed the Tower, a standard size desk typewriter, for $99.00 saying it was just a few dollars more than the portables.

For further comparison, the prior year, the 1948 Smith-Corona Clipper, a model of which I also own, was listed for $76.85. Adjusted for inflation this would be $995.96.

The Growth of Credit Card Transaction Fee Chargebacks

I saw a sign on April 2nd next to a cash register at local mom and pop restaurant El Matador in Pasadena, CA that read, “$0.75 per (credit) card transaction”.

It reminded me of the growing number of stores, vendors, and service providers that are passing credit and debit card transaction fees back to the consumer. In my past experience credit card companies like Visa, American Express, and AmEx all vehemently insisted that their credit card fees, usually amounting to 2.0-3.9+% of a transaction would be borne by the company accepting their cards. The fine print in their agreements all indicated that their agreements would end and companies would be cut off if they didn’t swallow the fees themselves as a basic cost of doing business.

But it would seem that sometime during the pandemic and the financial turmoil that has ensued that a growing number of businesses, presumably feeling the squeeze of the economy, have begun passing these fees directly back to the consumer. 

I first began noticing it when paying for our daughter’s ballet school tuition which charged us an extra 3% credit card fee for using our credit card instead of paying by cash or check. Then her private school tuition processor began charging a 3% credit card fee. Now it seems like every small company is taking the cue and passing along credit card fees to the consumer, including the local Mexican food restaurant.

What effects does this seemingly small, yet somehow massive shift in the economy have on consumers, businesses, and the country? How does it effect inflation and its impact on consumers? How does it effect the overall banking sector?  Much the same way austerity measures within the economy ordinarily have an outsized, but “unseen” impact on women, does this additional tax on consumers hit everyone equally? What effects does this have on an increasingly cashless society that has normalized credit cards? What will potential long term changes in credit card processing will this foment? Will the tide change as interest rates decrease?

A common outlier to this pattern before the pandemic was gasoline chain ARCO which only accepted debit cards or cash and charged an automatic $0.35 fee for any debit card transactions to cover the single use banking fee that the bank charged them (though generally the debit card fee most banks charge companies has been in the $0.22 – $0.30 range; research should confirm the specific number). Sometime during the pandemic, the shift in competition/pricing apparently led ARCO to begin accepting major credit cards. However, in their case, they post different gas pricing for cash/debit transactions versus credit card transactions, typically an extra $0.10/gallon, which at about 2.0% of $4.80/gallon of regular gas at my local station in Pasadena represents a rough breakeven point for charging back the overall credit card fee, presuming they’re operating at high enough volume to get a 2% fee. What happens when gas prices go up though? Will their per gallon fee also go up to cover the credit card differential? 

I’d love to see some on-the-ground economics reportage on this growing trend. Perhaps it’s something that Marketplace might take up? 

Featured photo by Clay Banks on Unsplash

Acquired Pirate Enlightenment, or the Real Libertalia by David Graeber (Farrar, Straus and Giroux)
The final posthumous work by the coauthor of the major New York Times bestseller The Dawn of Everything. Pirates have long lived in the realm of romance and fantasy, symbolizing risk, lawlessness, and radical visions of freedom. But at the root of this mythology is a rich history of pirate societies―vibrant, imaginative experiments in self-governance and alternative social formations at the edges of the European empire. In graduate school, David Graeber conducted ethnographic field research in Madagascar for his doctoral thesis on the island’s politics and history of slavery and magic. During this time, he encountered the Zana-Malata, an ethnic group of mixed descendants of the many pirates who settled on the island at the beginning of the eighteenth century. Pirate Enlightenment, or the Real Libertalia, Graeber’s final posthumous book, is the outgrowth of this early research and the culmination of ideas that he developed in his classic, bestselling works Debt and The Dawn of Everything (written with the archaeologist David Wengrow). In this lively, incisive exploration, Graeber considers how the protodemocratic, even libertarian practices of the Zana-Malata came to shape the Enlightenment project defined for too long as distinctly European. He illuminates the non-European origins of what we consider to be “Western” thought and endeavors to recover forgotten forms of social and political order that gesture toward new, hopeful possibilities for the future.
Picking up a copy for Dan Allosso’s next book club read.
Read Matt Mullenweg Identifies GoDaddy as a “Parasitic Company” and an “Existential Threat to WordPress’ Future” by Sarah Gooding (WP Tavern)
On Thursday Matt Mullenweg responded to an inquiry on Twitter from Jeff Matson, a Pagely employee, about whether Automattic’s Newspack platform had all open open source components or some pro…
WordPress open source or WordPress.com? Recall that Automattic is a VC backed company now and Matt has a big dog in the hunt.
Read The Other Invisible Hand (NOEMA)
Economics and evolution are basically in the same business: Both are all about productivity selection, though one has been at it for billions of years longer than the other. Both involve “invisible hand” magic — intricate, unplanned, “self-or...
Folks who have been reading David Wengrow and David Graeber’s The Dawn of Everything are sure to appreciate the sentiment here which pulls in the ideas of biology and evolution to expand on their account and makes it a much more big history sort of thesis.
 
I’m reminded of Kate Raworth’s excellent Donut Economics as a potential remedy.
 

Raw capitalism mimics the logic of cancer within our body politic.

Western Culture and Capitalism

Good job Western culture and capitalism!

How it started and How it's going meme set up with image of a page from a 14th century book of hours featuring St. Christopher juxtaposed with the book cover of Timothy Ferriss's "The 4-Hour Workweek" featuring a silhouette of a person relaxing on a hammock between two palm trees.

Image credits:
Left: Handwritten, drawn and illuminated leaf from a 14th Century French Book of Hours (Lewis E M 4:9) in Latin written in Gothic bookhand (License: CCO)
Right: Book cover of The 4-Hour Work Week from Amazon

Liked a tweet (Twitter)
I’ve downloaded my copy of The Dawn of Everything by David Graeber and David Wengrow for Dan Allosso’s forthcoming Obsidian-based book club. https://danallosso.substack.com/p/obsidian-book-club-the-dawn-of-everything

Curious to see how these tools can be communally used for collaborative note taking, knowledge creation, and discussion.

I’m curious if anyone has created lists of graduate programs in education that are actively teaching/researching pedagogy described in @CathyNDavidson‘s ? I’m considering tying some of my interests into a potential new career path.

We’re Not All That: High School is America in miniature

High school is just a bunch of scared people pretending they’re not.
—Cameron Kweller portrayed by Tanner Buchanan in He’s All That (Netflix, 2021)

While not exact, this quote is incredibly similar in tone to a quote from a columnist in June 1928, which has been oft repeated and slightly modified since including versions by Will Rogers and in Fight Club.

Americanism: Using money you haven’t earned to buy things you don’t need to impress people you don’t like.
—Robert Quillen, The Detroit Free Press, Page 6, Column 4, Detroit, Michigan. June 4, 1928

It’s all about image and being what we’re not.

Apparently the message of the original film She’s All That was completely lost. I’m not sure the current incarnation of this remake will be an inflection point either.

Social Media, Fast and Slow

I like the differentiation that Jared has made here on his homepage with categories for “fast” and “slow” posts.

It’s reminiscent of the system 1 (fast) and system2 (slow) ideas behind Kahneman and Tversky’s work in behavioral economics. (See Thinking, Fast and Slow)

It’s also interesting in light of this tweet which came up recently:

Because the Tweet was shared out of context several years later, someone (accidentally?) replied to it as if it were contemporaneous. When called out for not watching the date of the post, their reply was “you do slow web your way…”#

This gets one thinking. Perhaps it would help more people’s contextual thinking if more sites specifically labeled their posts as fast and slow (or gave a 1-10 rating)? Sometimes the length of a response is an indicator of the thought put into it, thought not always as there’s also the oft-quoted aphorism: “If I Had More Time, I Would Have Written a Shorter Letter”.

The ease of use of the UI on Twitter seems to broadly make it a platform for “fast” posting which can too often cause ruffled feathers, sour feelings, anger, and poor communication.

What if there were posting UIs (or micropub clients) that would hold onto your responses for a few hours, days, or even a week and then remind you about them after that time had past to see if they were still worth posting? This is a feature based on Abraham Lincoln’s idea of a “hot letter” or angry letter, which he advised people to write often, but never send.

Where is the social media service for hot posts that save all your vituperation, but don’t show them to anyone? Or which maybe posts them anonymously?

The opposite of some of this are the partially baked or even fully thought out posts that one hears about anecdotally, but which the authors say they felt weren’t finish and thus didn’t publish them. Wouldn’t it be better to hit publish on these than those nasty quick replies? How can we create better UI to solve for this?

I saw a sitcom a few years ago where a girl admonished her friend (an oblivious boy) for liking really old Instagram posts of a girl he was interested in. She said that deep-liking old photos was an obvious and overt sign of flirting.

If this is the case then there’s obviously a social standard of sorts for this, so why not hold your tongue in the meanwhile, and come up with something more thought out to send your digital love to someone instead of providing a (knee-)jerk reaction?

Of course now I can’t help but think of the annotations I’ve been making in my copy of Lucretius’ On the Nature of Things. Do you suppose that Lucretius knows I’m in love?