Sunday, May 8, 2016

Selling the Nerd Mobile on TV

One of those  successful car commercials.  Opens with a sporty looking little red car zipping down an empty road. (When was the last time you got to drive on a road empty of cars?).  Camera zooms in on the driver's seat and we have the biggest nerd you ever saw driving the car.  That's gonna make me want to buy it.  Then we see a cop car, bubble gum machine flashing blue and red in the rearview mirror.   Commercial ends, mercifully, before we get to the cop writing the nerd a ticket.
   Do they really think this is gonna sell cars?

Thursday, May 5, 2016

Computing Gross National Product (GNP) according to the Economist

Actually, in these PC days they call it Gross Domestic Product (GDP) .  National has become a dirty word in PC circles.  But it was GNP when I went to school and I am not PC.  The statistic began to be computed in the 1930's as a measure of an economy's war potential.  The Americans managed to shift a third of their massive GNP into war production by 1945, and that buried the enemy under an avalanche of ammunition, rations, tanks, jeeps, warplanes, army trucks, aircraft carriers, radar sets, and finally nuclear weapons.
   GNP is defined as the total output of goods and services, expressed in dollars, and figured on a yearly basis.  Goods is easy enough to understand, goods are packed in cartons, stacked on loading docks, shipped to customers.  Services used to be necessary things like transportation (rail, shipping, trucking) or utilities (electricity, water, sewage)  As time went on, service providers of lesser importance wanted the prestige of  being included in GNP figures.  In the UK they now include the services of "sex workers" and there is a push to include housekeeping and child care into GNP figures.
   The Economist did not explore a few issues in GNP computation.  Consider automobile production.  Clearly number of new cars produced times the average sales price of new cars goes into GNP.  But, consider this, Detroit doesn't make everything that goes into a new car.  They buy tires, batteries, spark plugs, wire, fasteners, glass, paint, sheet steel, lotta stuff from other companies.  Think about that spark plug company, Champion say.  They ship a lotta plugs to Detroit, which have an average sales price.  That goes into GNP as well as the new cars do.  In this case the plugs get counted twice, once as the leave the spark plug company, and a second time as they leave the auto plant, securely screwed into the engine of the new car.
   Then how do you handle big construction projects.  Say the World Trade Center.  That took years to build.  Did they estimate the amount done each year and add that into GNP?  Or do they wait until the building is finished and sold?  We are talking of a billion dollar project here.  Lumping years of work into the last year gives you a GNP bump in the year the job finishes.  And what does 9/11 do to GNP?  Do they even count that in GNP? 
   Anyhow the Economist devoted a full page to GNP calculation this week.

Wednesday, May 4, 2016

We is stuck with Trump.

Yesterday's solid Trump win in Indiana got Cruz, and now Kasich to both throw in the towel.  Barring an act of God, The Donald is the Republican nominee. 
   The Donald is not my favorite candidate, but, druther him than Hillary.  Gotta start thinking up things to say to get people to vote Republican. 

Monday, May 2, 2016

Book cooking for fun and profit.

Companies are required to publish periodically their profits or losses.  Computation of profit can be pretty slippery.  In principle, profit is gross sales less legitimate expenses.  Legitimate expenses can vary a lot.  When doing the books, any clever accountant can find various ways to make profit come out higher or lower.  When doing the books to show to the taxman, the accountants work real hard to make profit as low as possible, since the company is taxed on profit.  When doing the books to show Wall St investors and sell the company's stock, the same accountants work real hard to make the profit higher. 
  This is natural, not good, but natural. 
  But, in the United States, we allow companies to keep two sets of books, one to show the taxman, another to show to stock buyers.
   This should not be.  We should insist that companies keep one set of books, and the profit they brag about to investors is the profit upon which they pay taxes.  In fact, the IRS could do investors a favor by merely publishing all the company tax returns.  They are public companies after all, and so their tax returns are public information. 

Sunday, May 1, 2016

Winning World War II, Combined Arms Operations

WWII broke out in September 1939 with Hitler's invasion of Poland.  From there, going on til 1942, the Germans' won every battle.  They crushed Poland, Holland, Belgium, Denmark, Norway, Yugoslavia, Greece,and finally France.  They drove the British into the sea at Dunkirk. 
   What accounts for the amazing German combat power?  Answer: combined arms.  German attacks had tanks as the spearhead, with the infantry right behind them.  They had artillery support and air support.
This is effective as all getout.
   It took the Anglo Americans three years to catch on and launch their own combined arms attacks.  It's tricky.  For something real simple, just order an infantry battalion, about 1000 men, to attack somewhere.  This is straight forward, you pass the word to the colonel of the battalion.  Where, when, and that's it.  Now lets add artillery support.  You have to get the guns moved up into range, get the ammunition (heavy stuff that) moved up and the guns emplaced.  Then you have to coordinate so that the artillery knows where and when the infantry will attack.  You want the enemy's front lines shelled just before the infantry moves up, but not too early, shelling tells the enemy that an attach is coming and all chance of surprise is lost. And you want the barrage lifted just before your troops get there. You want the enemy head quarters shelled, you want enemy artillery batteries shelled, and you DON'T want your infantry shelled as they press the attack. You need to make sure the artillery and the infantry are using the SAME maps, with the same names and numbers for terrain features.  You want to have artillery forward observers, with radios, with the infantry so they can let the artillery know when the infantry falls behind the schedule.  All this is complicated. 
   Then if you have tanks, you want the tanks to lead the attack, at least as long as the terrain allows the tanks to pass.  Tanks are maneuverable, but they cannot climb roadless hills, cross swamps, or climb vertical cliffs. Takes more coordination to get the tanks to show up at the right place and do what is necessary.
   Even trickier is arranging for close air support.   Step one is to avoid fratricide.  Your ground units need to be distinct from the enemy's units lest the Airedales bomb your own men.  More coordination.  Get anything wrong and lots of bad stuff can happen.
   It took the Anglo Americans about a year of fighting Germans in North Africa to get all this straight. 

Friday, April 29, 2016

Retraining for workers whose jobs have fled overseas

NHPR was pushing retraining for the jobless this morning. But if there are no jobs, all the training or retraining in the world won't help.  We gotta do the hard stuff, create new jobs, foster new business formation, drive off the hordes of bloodsucking paper pushers and their job killing regulations, make taxes lighter and fairer.  Keep the NIMBYs and BANANA's from stopping projects. 
    Liberal NHPR isn't going to understand any of this.

Thursday, April 28, 2016

I watched The Donald's foreign policy speech yesterday

It was fairly sanitary, no gratuitous slams on Mexicans, women, Chinese imports and other things that have made the headlines over this campaign.  He used a teleprompter, which means he took this one seriously and didn't want to make off-the-cuff blunders.
   It was pretty vague.  He came out for defending and advocating American interests, with out ever saying what those interests might be.  He said ISIS would be gone, soon, but he never said how, or how far he would go to waste them.  Would he send in the US Army to deal with them? Would he nuke them?  Who knows?  
   He never did really say where he stood on free trade, although he made disparaging remarks about NAFTA.  He is against "nation building" but he never addressed the problem of weak or failed nation states that revert to wildlands, harboring terrorists.  You need to remember that Osama Bin Ladin settled into the wildlands of Afghanistan, where there was no effective national government.  From this safe haven Bin Laden set up the 911 operation.  This would not have happened had the United States done some nation building in Afghanistan after the mujahedin drove out the Soviets in the 1980's.  Go watch the movie "Charlie Wilson's War". 
   The Donald made few to no concrete promises in this speech.  Applause sounded kinda thin, to the point where I wondered how full the room was.