Thursday, August 6, 2009

2. FEEDING THE MAW

Milton Friedman, the Nobel-Prize-winning economist, made a wonderful two-minute video (available here), in which he describes how the magic of the price system makes it possible to produce the pencil he holds in his hand. “No one individual could make this pencil,” he begins. The wood itself is cut in the state of Washington, but before that can happen, there must be a saw and someone has to make that saw from steel, and that steel must come from iron ore, which someone else will mine. Then there’s the eraser, which is made from rubber (probably from Malaysia), and the brass ferrule to hold the eraser, and the yellow paint and the black paint and the graphite from India. Thousands of people, he explains, are involved in the production of the pencil, though they don’t know each other, they speak different languages, they have different religions, and they might hate each other if they were ever to meet. Yet they all cooperate, without any commissar directing them, to produce a pencil that can then be purchased by anyone for a trifling sum.

My own capitalist epiphany occurred as I opened a case containing twelve one-pound bags of frozen brussel sprouts and began to arrange them neatly in a display case. This case had been delivered to our back room less than an hour before, one of dozens of cases of frozen food on a pallet rushed to us in a refrigerated trailer from a warehouse hundreds of miles away. Prior to that, the sprouts had been flash-frozen and bagged at a different facility before being transported, still frozen, to our warehouse. And before any of that happened, someone had to buy the seeds, plant them, water and cultivate the plants, harvest them at the proper time, and arrange for their shipment to the processing plant. There were dozens, perhaps hundreds, of people involved in some tiny way in getting these one-pound bags of brussel sprouts into a freezer case at Argus, where each bag sells for just $1.12.

And I thought it was wonderful. I was amazed, just imagining the process by which all these strangers cooperated in getting these bags into my hands and into the display cases. And we do it, we cooperate, not because any of us have a particular love of brussel sprouts or feeding the masses or serving society, but because each of us is getting a penny or two, or maybe a fraction of a penny, for each bag that someone will voluntarily choose to purchase. For me, it was Milton Friedman’s pencil all over again, only better, because unlike pencils, brussel sprouts can be sautéed with garlic.

These thoughts persist for a while. Then other, darker ones, begin to intrude.

Every big-box store gets products on the shelves in basically the same fashion. There is a computerized inventory system linking the cash registers, the backroom storage areas, managers on the sales floor, and the central (or regional) warehouse. The system tracks every item sold along with goods that are removed from the system because they are damaged or because nobody wants to buy them. When the backroom guys see that a product has been sold, they throw some more in a cart to replenish the shelves. When the warehouse sees the backroom is running low on something, it ships more. Some actual physical counting still occurs, but it is kept to a minimum.

I am a “pusher,” the last link in the chain that may start in a Peruvian mine or a factory in the Philippines. I take carts full of merchandise from the backroom, push them out onto the floor, and place each item in its proper location. When I have finished a cart, I get another one, and then another, and then another. There are always more carts, full of pillows, Milk Duds, bookcases, diapers, can openers and Advil. I am shoving a boulder up the mountain of American consumerism and I will never get to the top.

After a couple of shifts of this, you stop marveling at the magic of Milton Friedman’s pencil and you begin to wonder just how many different types of sippy cups America really needs. I mean, there’s Spongebob and Cars and Thumbelina, and every Sesame Street character you can remember and Mickey and the royal princesses Sleeping Beauty, Belle and Cinderella (either by themselves or shoulder-to-shoulder with the others) and an endless array of unnamed cartoon kitties and puppies and clams and bunnies and monkeys and fish and bears and squid, and each one is available in five or six or seven different colors. About the only thing you can’t get in a sippy cup is PBA because, well, I don’t know why and I don’t know what PBA is, but it’s obviously something you don’t want your baba sucking on because along the entire sippy cup aisle at Argus, you can’t find one that doesn’t say PBA FREE or CONTAINS NO PBA or some variation thereof.

Another thing you wonder about, given current trends, is how long it will be before every commercial food product, including Oscar Mayer Wieners, is flavored with either green tea or pomegranate.

Then there are the deodorants. Now I suppose I’m like most guys where such things are concerned. When the old one runs out, I stroll through the deodorant section and grab a Speed Stick or a Mennen product, figuring that this makes me about as debonair and hygienic as any guy who’s not named George Clooney really needs to be. If you spend an entire afternoon in the deodorant aisle at Argus, however, as I have, you find there are deodorants designed for the darkest corners of the human psyche, though you wonder whether even the most powerful roll-on, applied to the armpit, can penetrate that deeply.

A 1.7 ounce stick of Dove Clinical Protection, for example, sells for $8.39, as does the 1.6 ounce size of Secret Clinical Strength. I paused as I loaded them into their slots. Who buys these? Who would spend that kind of money, I wondered. The word “clinical,” though, is what really scared me, since it suggests there are people so smelly they require a doctor’s care rather than, say, a bath. Are there such people, with a stink rooted in pathology? Or Satan? And do they shop at Argus? Without orders from a physician, I think I would be afraid to use these products. I mean, what happens when Dove Clinical Protection gets applied to a normal sort of armpit? Is there an explosion?

Degree Absolute Protection is another high-end item, though since it is for men, and men will not spend eight bucks on deodorant, it was a bit cheaper. Again, the name seems unnecessarily intimidating, though I guess the “absolute” is really just a bit of sales puffery. It won’t protect you from an asteroid, for example. What troubled me more was the claim under the brand name; there, the customer is informed that Degree Absolute Protection “RESPONDS TO ADRENALIN.” Well, OK, I thought. Fine. It’s a scientific breakthrough and all. But to what end? Are there really people who are concerned that their deodorant will fail them as they are pursued by a lion across the veldt? Or, closer to home, when the mugger puts the barrel of a .38 behind your ear and cocks the hammer, is your first thought going to be, “Gosh, I wonder if my Right Guard can handle this.”?

And finally, let’s discuss Hannah Montana for a moment, because if you ever hear this humble, right-wing, free-market narrator say, “You know, that Noam Chomsky guy has some interesting ideas,” or “Maybe we should pay more attention to what Fidel has to say,” it will be because pushing Hannah Montana products (which I do every single day of my working life) has finally turned me into a communist. The last time I looked, there were over 200 Hannah Montana items at Argus, and there were more than 500 around Christmastime. Hannah Montana, the character played by Miley Cyrus on the most valuable TV show Disney has ever produced, is on shoes, drapes, chewing gum, tents, skateboards, TVs, guitar picks, fishing rods, shower curtains, waffles, washcloths, sleeping bags, chairs, DVD players, hats, toothbrush holders, body mist, folding stools, backpacks, dolls, dinnerware, video games, shirts, soap dishes, roller skates, dollhouses, sheets, handbags, camcorders, rain slickers, cosmetics, dance mats, board games, band-aids, towels, hair accessories, MP3 players, lunchboxes, karaoke machines, thermos bottles, white boards, bath gel, comforters, sandals, digital cameras, photo cubes, chairs, and swim floats, just to name a few. A pusher like me works alone, interrupted only by the occasional inquiry regarding the whereabouts of ironing board covers (answer: section B24), and there is plenty of time for an initial amusement and wonder at the Hannah phenomenon to morph into a spiritual malaise, and eventually into a festering madness and a world of fantasy in which Hannah, I, and a case of her signature Eggo frozen waffles are locked in a room from which only I, ultimately, emerge.

One entertains these thoughts and asks these questions as one feeds, endlessly, the gaping maw of the American consumer.

But of course, when the shift is over and sanity returns, I realize I wouldn’t have it any other way. The one thing we all must admit about Hannah Montana products and sippy cups and deodorants is that people want them. They really want them. They may not say they want them, they may even say they don’t want them, but in fact, they want them so much they drive to Argus, grab them, and take money out of their pockets to pay for them. If people did not want them, they would not be on the shelves because Argus is utterly heartless where non-selling products are concerned. We don’t sell lima beans, for example. I wondered about that for a while, suspecting that some Argus executive had a secret hatred of lima beans based in some horrific childhood incident. (We do sell brussel sprouts, which are far less popular, generally, than lima beans.) But when I asked about it, I was told we used to offer lima beans but they were pulled when nobody bought them. Other Argus stores sell lima beans. Philadelphians, however, don’t like lima beans very much. So they’re not on our shelves.

But we do sell dozens of sippy cups and dozens of deodorants and hundreds of Hannah products, and the only reason we do is that people want them. Don’t ask me why, but they do. They could spend their money on shrimp cocktails or tank tops or a high-priced prostitute, but instead they spend it on a Dora the Explorer sippy cup. And I say God bless them, and long may they wave. Because the alternative to having individuals choose what they buy is to have somebody else choose what they buy. Those are the only two alternatives, and I come down strongly in favor of the former.

People in our government are now engaged in deciding what kind of car you can drive, and they are using your money and mine to implement their choices. Why? Why can’t I pick the car I want, as I always have? And why, if somebody else is going to choose the car I drive, is it always the last person I would choose to make that decision? In the Soviet Union, it was some anonymous apparatchik in a gray suit who didn’t know much about cars and what people liked to do in them, and who didn’t care what anybody else thought. Here, it’s people like Joe Biden, who thinks we all watched TV in the 1920’s, and Nancy Pelosi, who thinks natural gas is a renewable resource, like wind. Or it’s Barney Frank, who---well, never mind. Even left-wingers view these people as little more than clowns. They don’t even drive cars very often; they usually get driven around by others.

If somebody gets to decide what kind of car we all have to drive, why can’t it be somebody cool? Why can’t it be Charles Barkley, or Eminem, or Sean Connery? I could accept any of them because all of them are way cooler than I am. Not that any of them would get it right, of course---nobody on earth can come up with a car that would satisfy everybody---but at least they drive cars and have probably used them for a variety of fun activities that do NOT include transport to the Select Subcommittee On Pacific Salmon Fisheries And Global Warming. But we never get cool people to make these decisions, do we? We never get Sean Connery. No, it’s always a bunch of power-drunk dullards who have never had a regular job and wouldn’t know how to fornicate in the back seat of a Malibu if you planted Pamela Anderson there with a bottle of tequila.

There are many theories about the fall of the Soviet communism, but I’ve always thought that, unlike at Argus, there just weren’t enough sippy cups. In a centrally-planned economy, there is simply no mechanism to determine what people want, and therefore, people never get what they want, and eventually they grow bitter about it. In a market economy that depends on a price system, the only things that are offered for sale are things that people seek and are willing to pay for. At Argus, if something sells, I put more of that item on the shelf; if it doesn’t, we throw that item in the dumpster. The information contained in the choices of consumers is what makes Argus money and gives me a job (and satisfies consumers). Without that information, there is no way to find out what people want.

The example I like to use comes from Bill James, noted sabermetrician and consultant to the Boston Red Sox. James points out that many people criticize the practice of paying millions or tens of millions to baseball players. Think what we could do with that money if we could devote it to cancer research instead, say the critics. All of us have heard some form of this argument at one time or another.

If you’re honest about it, there’s really only one explanation for this use of society’s resources---we want good baseball players more than we want a cure for cancer. It’s simply a fact. Personally, I think about cancer about once a month, or maybe a bit more frequently if I have some unexplained pain in my gut. But I think about the Phillies every day of my life. I think about them on January 8th and I think about them on Superbowl Sunday. I think about the Phillies on Christmas morning and on Cinco de Mayo, and I think about them constantly in late September. And there is nothing unusual about me. Overall, America wants good baseball more than it wants a cure for cancer, and we know that because baseball is where America spends its money.

This autonomic, amoral aspect of free markets is the central feature of capitalism. It gives people what they want, what they really want, rather than what they say they want or what they feel they should want or what some political group thinks would be best for all of us. And it is this feature, more than any other, that separates liberals from conservatives. For a right-winger like me, the price system is a wonder of nature in its ability, without any outside supervision, to provide happiness for millions of individuals who want millions of different things. This is especially so when you look at alternative systems, like communism, which fail so miserably to provide even the most basic goods. But what I love about it, that it gives people what they want, is exactly the same thing the left hates. For collectivists, a system that satisfies the multitudinous desires of individuals is wasteful, and selfish, and inefficient. They would prefer to settle on something that’s good for everybody and not worry so much about whether a particular individual gets exactly the sippy cup he wants.

And of course, I can’t make an argument that America needs all its sippy cups or deodorants or Hannah products. Nobody can make that argument. I don’t even know what “need” means in this context. What I can say is that if Sally really wants a box of Hannah Montana frozen waffles, I want Sally to get those waffles because I want a lot of things that other people disapprove of too, but I want them anyway. If Sally doesn’t get her Hannah waffles, I may not get my beer or my potato chips, and Barney Frank will certainly decide, in all his wisdom, that my 1992 Tercel just isn’t green enough to stay on the streets.

Copyright2009MichaelKubacki

3 comments:

  1. Fascinating details. I'd like more quotes and stuff about fellow employees. By the way, you are NOT a loser. The closest you have ever come to being a loser is loving the Phillies, and who are the current world champs? Huh?

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  2. I am a reformed capitalist.

    Look no further than the issue of health care reform to see the folly of capitalism. We have the system that obtains if government does nothing. A bunch of price gouging pharmaceutical companies and unbridled insurance lobbyists running it all. That got us to a rank of 39th in world ratings of the care system at top dollar pricing.

    I don't know the "BEST" system, but lassaize-faire is NOT it.

    You may argue that we are a long way from Lassaize-faire. True. The economic force- "price-gouging breeds ruthless competition" has not been allowed to play out. The government protects those that pay their re-election funds and serve only themselves.

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  3. Objection to communism is no longer a valid reason to support capitalism.
    F*ck all the sippy cups. Peak oil will see to that.

    ReplyDelete