Diamonds in the Sewer

Tuesday, January 24, 2006

Cheaper, better Coffee -- Here's the Starbuck's Secret Handshake!

http://www.slate.com/id/2133754/?nav=ais
"Here's a little secret that Starbucks doesn't want you to know: They will serve you a better, stronger cappuccino if you want one, and they willcharge you less for it. Ask for it in any Starbucks and the barista willcomply without batting an eye. The puzzle is to work out why."

What if care of the poor by the government is a really good way to scare the middle class?

It's obviously not set up to directly meet the needs of the poor on the poor's terms -- so why is it the way it is?

I have friends who thought sincerely that the aid given was to help the poor join up with the middle class -- as Social Security was meant to do.

Starbuck's handling of price-sensitive consumers may offer an explanation for why our school systems and welfare systems make the choices they do -- who "the message" is for.

JulieB

Wednesday, January 11, 2006

Countries and People in Debt

World wide pressure for debt relief for third world countries is growing. According to Confessions of an Economic Hitman http://www.pbs.org/now/politics/perkins.html plying leaders with huge debts that they could not repay was done deliberately.

I can't help but compare that model to the student debt system -- if people spend years of their lives paying back money that they never saw -- that got paid right back into the state -- and did not benefit from, their debt can be sold to a third party.

It's big business now, buying and selling debt. Given that U.S. savings rate is now in the negative there are going to be a lot more people who find themselves as part of the trading chips in this system.

Eventually they too aren't going to pay, just like third world countries are doing. Right now there's a bit private industry around it, check it out: http://www.collectionindustry.com

I'm having a really good time finding out about debt in micro and macroeconomics. It's all the company store, when taken down to the mesh holding it up. Don't buy your grocieries where you work, don't pay right back to where you get your money.

JulieB