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Stop crying wolf with security theater

The fact that a citizen can take another person or organization to court has been one of the bedrocks of American tradition. Unfortunately, as with any system, there will be some people who take advantage of it and risk ruining things for everyone else.

Spilled coffee
Someone’s coffee was hot. They sued. Now people joke that they could also sue if the coffee was not hot enough, but I bet someone has actually tried that. Cropped from a photo by David Thompson.

The first time I remember hearing about a court case that I found to be ridiculous was the infamous woman who sued McDonald’s due to scalding hot coffee. I have a little more sympathy for her after finding out some of the myths, but she still did spill it herself. In the 20 years since then, we have been increasingly met with legalese wherever we turn from lawyers who attempt to protect their clients from liability. Most disclaimers are common sense labels, e.g. keep plastic bags away from babies, and probably do some good.

Disclaimers really begin to change perceptions when they are spoken, however. Turbulence is a good example of this. Airplanes have had fasten seat belt indicators for decades so they don’t get sued if someone bumps their head.

Fasten Your Seatbelts
You are typically forced to sit down and fasten your seat belt, regardless of other possible consequences. Cropped from a photo by Daniel Williams.

A similar sign like this elsewhere would merely provide advice, but announcements remind passengers that they must obey posted placards on-board (the only time I ever still hear the word, placard). However, flight attendants are stuck with a kind of semi-authority so they vary in their enforcement. I have seen some stand near passengers and shame them into sitting back down. Some delight in their new-found power and threaten people in coach until they submit. Yet as one flight attendant said on my recent United flight to Denver, “We are not police.” Then the other crew members proceeded to remind every other passenger who stood up that they were required to say people should remain seated, though they did not intend to actually stop any passengers from getting up. Flight attendants did the right thing and covered their ass while letting common sense prevail in the air for once.

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Let me pay more for what I want

Two weeks ago, I went looking for a veritable needle in a haystack. I managed to find the pin by some miracle somewhere within my many boxes. I also pulled out a few other items of interest, including two books I had previously started but never finished. One was the Brothers Karamazov. The other was the biography of IKEA founder Ingvar Kamprad.

I just started another massive novel recently, so I chose to alternate between that and Swedish business acumen before digging into Russian literature.

IKEA concept taken to an extreme, image copyright Erik Johannson

(I laugh every time I see this so I had to borrow it; please visit Erik Johansson for more great work!)

I think my favorite part in the entire IKEA book is quite early on, regarding the transition from mail order to showroom. This unlikely reversal of trends was critical for a few reasons. Of course people still yearn for the tactile sensation prior to buying some specific goods such as furniture and clothing. Yet it is the opportunity to compare two levels of product that was the key takeaway. Anyone can race to the bottom in terms of price. Ordering by mail or now online without being able to compare specifications or see the product in person will inevitably lead one to choose the cheapest model. And then you will probably regret it when you receive something that falls apart or stops working.

Kamprad’s insight was to simply let people judge products for themselves. Contrary to what some economists would have you believe, consumers chose to pay slightly more for significantly higher quality.

This reminds me of a famous pricing study of the Economist. The publisher sold more subscriptions when they offered a more expensive plan. I forget the exact details, but it was something like print only: $99, print and online access: $149.

Offering both increased sales more than when there was only one price, because buyers were more satisfied in believing that they got a deal. Plus, the publisher had the opportunity to make even more money than intended. This way, producers sell more and may even be able to raise prices in the face of conventional wisdom.

It amazes me that this seemingly obvious rule of economics has not yet been applied across the board, particularly at the supermarket. Slowly grocers have begun to realize that selling organic and/or locally grown produce can be quite profitable. Yet what about other food and drink?

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The importance of immigration

Yesterday I met Jeffrey Miron, a Harvard economist and author of Libertarianism: A to Z. Some people may not agree with his views on health care, but I think it is important to recognize at least one group of people who are fighting to expand legal immigration.

I mention this because I recently joined the board of a non-profit that provides job placement assistance for immigrants who have entered legally with a college degree and at least two years of experience back home. In other words, smart people who have worked hard to get here and can make an immediate impact in our society with their inspiration and perspiration. Also of importance to me is that the service helps them provide for themselves and their families — rather than giving economic assistance. They never ask for a handout; all they want is a chance.

Why would I get involved in such a cause when my family has been here for over 200 years?

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©2011 Adam Edwards