Tag Archives: economics

The Jones Act, Podcasts, and Expanding Your Knowledge of the World

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A brief post about how you can learn things every day with podcasts.

Planet Money
Planet Money is just one of the podcasts I listen to regularly.

I’ve been listening to podcasts for more than 10 years now. In fact, I had my own podcast — which was mostly an audio version of some of my blog posts — from 2005 to 2007. I believe that podcasts are a great use of downtime to learn new things.

(If you’re not interested in learning new things, you may as well stop reading now and resume your perusal of cat videos and other entertaining but frivolous nonsense that clogs the Internet’s “pipes.” I’m not even sure why you came to this blog, since it exists primarily to share the things I’ve learned and encourage informed, educated conversation among readers.)

If you’re not sure why you should be interested in learning new things, consider this:

Learning new things helps make you a more rounded person, able to have a good conversation with just about anyone. It helps you make better decisions for yourself, your career, and your family. It keeps you informed about the things that affect the world around you so you can better understand them without relying on someone with an agenda to explain them to you.

Such as the Jones Act, which has been in the news all week.

I’d never heard of the Jones Act before I learned about it on a Planet Money podcast. Originally aired back in 2014, it explains what the Jones Act is and what it means to real people.

What I like about Planet Money is that it covers topics related to economics in plain English. It’s not just informative — its entertaining. When I heard the Jones Act mentioned in the news this morning, I immediately remembered the family that missed their cruise ship departure and how Jones Act penalties cost them money. It was easy to understand how this law from the 1920s, written to create a sort of monopoly for American shippers, could negatively impact Americans in Puerto Rico who lacked basics like drinking water right after Hurricane Maria. Knowing about the Jones Act gave me a sort of leg up on this week’s conversations about it.

That’s just an example, of course. I listen to a handful of podcasts, some for education and others for entertainment. They fill my head with sometimes trivial yet often fascinating information that makes me think. They challenge me with puzzles and word games and news quizzes. They make me laugh and cry. They’re a great use of my downtime, no matter where I am; I can carry them around with me on my phone, along with the music I find myself listening to less and less frequently.

Here’s what’s currently in my preferred podcast app, Downcast:

By “downtime,” I mean the time I spend doing something that requires some but not all of my concentration. Driving is a perfect example. I need to pay attention to the road and signs and other drivers while I’m driving, but that doesn’t prevent me from having a conversation with a companion or listening to music or audio books. Long solo drives — perhaps a daily commute — is a perfect time to listen to podcasts.

I don’t have much of a commute, although I do listen to short podcasts on my drive from home into town (20-30 minutes) to run errands once in a while. I mostly listen when I’m traveling — on a very long drive or stuck in an airplane. Or even flying my helicopter from point A to B. (These are the same times I sometimes listen to audio books, which are available from my library for free.) This is time when I really can’t do anything else. It’s nice to let my mind wander sometimes, but it’s also good to make use of this time to learn.

Do you listen to podcasts? If so, what are your favorites? Use the comments for this post to let readers — and me! — know.

It Takes Money to Make Money

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A simple fact too many folks don’t seem to understand.

The other day, I was at a social gathering with a bunch of friends and neighbors. Conversation turned to a good friend of mine with a very large, underutilized garage. I mentioned that during the winter, he rents out storage space for the season to people with boats, RVs, and other vehicles not likely to be used in the winter. This brings in some extra cash for his winter travels to the south.

“What a great idea!” one of my neighbors said. She turned to another member of the group. “See? There are all kinds of ways people can make money. I don’t see why we should be paying for them.”

I could tell that she’d used my story to continue a conversation she’d had earlier with other people in the group. But she was missing an important point.

“It’s all about assets,” I said. I told the group about how I’m currently being paid to have my helicopter parked in a snug hangar in California in case it’s needed. Yes, I’m bringing in cash without seeming to do anything. But the asset that’s making that possible has cost me more than a half million dollars in the past 13 years to buy, maintain, overhaul, and insure. It’s not as if I’m getting money for nothing.

MoneyThe same goes for my friend. If he didn’t have that big garage, could he rent out space to boat owners? No. What did it cost him to build that garage? Maintain it? Insure it? All that costs money.

The sharing economy has given us all kinds of ways to bring in a little cash on the side. It’s no secret that before I sold my big fifth wheel, I parked on my driveway and rented it out on AirBnB for $89/night with a two-night minimum. I had people in it nearly every weekend that summer. But could I have done that if I didn’t have the fifth wheel? Or acreage with an amazing view and a full RV hookup? What did it cost me to buy the fifth wheel and land? And set up the power, sewer, and water hookups? All that costs money.

And then there’s Uber and Lyft, two ride-sharing companies. Yes, you can drive people around and get paid for it. But to do that, you need a car that meets certain requirements for age and style and that car has to be insured. All that costs money.

The conversation didn’t go this far. It moved on to other things before I could make this point. It didn’t matter. I like my neighbors, even though I think some of them are politically misguided, and didn’t want to ruin the evening with a possibly heated debate. We’re among the fortunate Americans. Neither rich nor poor, we are homeowners on the downhill slope of life, able to take care of all of our needs with a little left over for extras. Life’s not easy, but it certainly isn’t hard.

Yet some of us understand what it’s like for the people who struggle to get by. We empathize, possibly because we’ve been in their shoes in the past. We don’t expect them to produce money out of thin air with creative use of assets they couldn’t possibly afford when they’re having enough trouble putting a roof over their head and food on the table. We don’t mind paying a little extra in our taxes to help them with social services programs or, even more importantly, to fully fund our school systems to help their kids get a path out of poverty through education.

But it’s the mindset of my friend — the complete lack of understanding of how difficult it can be for certain people to earn a decent living — that bothers me. It’s an almost “let them eat cake” moment. And sadly, it’s shared by far too many Americans these days.

How the U.S. Postal Service Can Save Itself

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Five tips for avoiding bankruptcy/bailout.

USPS LogoIt’s pretty big news, every once in a while, that the U.S. Postal Service (USPS) — which is not funded by tax dollars — is on the verge of going broke. Then they raise rates by a few pennies and the hubbub dies down.

Until next time.

I think the big problem with the USPS is that it’s unable to keep up with changes in technology that make its core business model nearly obsolete. After all, the main business of the post office is to provide mail delivery service. In the past, this included personal and business letters, bills and bill payments by check, postcards, and other bits of correspondence. Letters have been mostly replaced by fax and email. Bills and bill payments are being replaced by online billing and bill payments. And who sends postcards in the age of smartphones when you can share vacation pictures as you take them via MMS or email?

As technology moves on, the USPS’s services are less and less needed. But does that mean they’re not needed at all? Of course not. (Not yet, anyway.)

Bad management and spending practices by the USPS are what’s putting it in peril these days. Simply said, the USPS needs to cut costs and raise revenues. Here’s what I propose:

  • Raise prices on bulk mail. It’s widely known that the USPS gives huge discounts to big customers — the same people who fill your mail box with what most of us consider “junk mail.” Not only is this extremely wasteful, but the USPS isn’t making nearly as much money delivering it as it could. I propose that they raise the rates on bulk mail — possibly even making it just as costly as first class mail. The result: fewer organizations will find it cost effective to mail their marketing materials to people who likely don’t want it anyway. The USPS will carry less of this material, thus reducing its costs. And for the remaining organizations that continue to utilize the service, the USPS will likely generate the same (or more?) revenue.
  • Stop trying to compete with FedEx or UPS. Let’s face it: for sending something overnight, FedEx is not only the best deal, but it’s got the most reliable service. Not long ago, the USPS couldn’t even guarantee overnight delivery from Wickenburg, AZ to a major city like Berkeley. FedEx could. As for shipping parcels, I recently shipped a 33-pound computer that I sold on eBay; UPS was half the price of USPS. Yet every time I go into the post office, I see advertisements pushing their services. The USPS should focus on what it does best: deliver small pieces of mail quickly and efficiently throughout the US. That means concentrating on its affordable Media Mail, First Class, and Priority Mail services.
  • Stop advertising. Come on — we all know that the post office exists. We all know what it does. You don’t need massive advertising campaigns to get customers. If I have to mail a letter or document and it doesn’t need to get there overnight, I’ll use USPS. And about those big color posters in the post office pushing your overnight services — see my previous point.
  • Stop giving away free packing materials. I’m talking about those priority mail envelopes and boxes. I know someone who used USPS priority mail boxes to pack when she moved. And no, I’m not kidding. She kept going to the post office and taking boxes. Not a single thing was mailed. I’m not saying that the USPS should stop providing them; I’m saying that they should charge a fee — even something small, like 50¢. It’s worth the money to customers — I’d definitely pay it — and it will generate more revenue while reducing waste.
  • Reduce mail delivery to three times a week. This is the ultimate in cost cutting measures. Unfortunately, it also causes job losses. But guess what? Real companies reduce their workforce to save money; why shouldn’t the USPS? The way I see it, they could deliver to business and commercial addresses on Monday, Wednesday, and Friday and use the same carriers to deliver to homes and residential addresses on Tuesday, Thursday, and Saturday. People who think they really need daily mail delivery can get a post office box, which would receive mail every day as it’s sorted at the post office. Not only does this reduce the cost of delivery, but it could increase revenues from post office box rentals.

So that’s five tips that will help reduce costs while increasing revenues. Why can’t the USPS utilize some combination of these? I think the results will make a huge difference in the continued operation of the USPS as a solvent business.

Comments? Have your say.