More “Magic Thinking”

“Magic Thinking” is the idea that belief can change the physical world.  Now, I’d be the first to admit that someone’s beliefs can motivate them to accomplish great things, but in the end it is the accomplishments that can change the world, not the beliefs.  Belief is the first step, and at least in my experience, often the easiest.

Yet today, all over the United States, we’ve had a resurgence of “magic thinking” totally divorced from reality.

How can a culture that promotes Viagra, movies and television with intense sexual content, that supplies its young people with private transportation and funds, and that now has the largest gap between the age of physical maturity and financial and social maturity honestly believe that abstinence is going to be practiced for ten years or more by a significant fraction of the young population?  It isn’t; and the facts show it, but legislators across the country continue to push abstinence as the solution and to reject any form of realistic sex education.

Here in Utah, as well as in other states, legislators are busy passing laws that are clearly unconstitutional, laws that their own legal counsels have advised them against.  The latest here is a proposal to “reclaim” all federal lands and declare them state lands.  And at a time when state finances are is short supply, they’ve even declared themselves willing to spend $3 million on a futile lawsuit – while “boasting” the worst-funded primary and secondary education system in the state.  They’re going to send a message to Washington – and to anyone who doesn’t believe as they do – and they believe such messages will change things, even as they reject the messages of others who don’t share their beliefs.

We even see magic thinking in sports, with the recent episodes of Tim Tebow and the Denver Broncos [although Tebow is now a New York Jet], the feeling that belief will overcome a less than stellar passing capability – and for a time, given the impact of belief on performance, it did, but belief has a tendency to fall short over time when confronted with superior abilities and equal determination.

When manifested in international relations, magic thinking can be deadly.  Too many American politicians have shown this over the past fifty years by actions supporting their belief that all that’s needed in the Middle East and elsewhere is “democratic government.”  But they tend to ignore the practical fact that democracy doesn’t work well in cultures that have enshrined bribery and corruption as social necessities, or that continue to regard women as property, or the possibility that people in other cultures, even with more representative and honest governments, may still oppose U.S. policies and aims both politically and militarily.

In the end, there’s a simple fact that all too many “magic thinkers” don’t understand:  The strength of one’s beliefs does not make something so. All the denying in the world isn’t going to stop global warming.  All the religion in the world isn’t going to overturn the fact of evolution, and all the belief in abstinence isn’t going to stop hot-blooded young people from having sex.  Nor is all the belief in the supremacy of American “ideals” unsupported by a massive commitment of physical power going to ensure that American policies and beliefs spread and triumph, although it’s likely to get thousands more American soldiers killed.

 

It’s the Economics, Stupid!

Recent news reports have noted that as gasoline prices have risen, the President’s popularity has declined commensurately. From a practical point of view this makes no sense, because the President has absolutely no control over energy prices.  He can’t even reduce or increase taxes on gasoline unless the Congress passes legislation, and he certainly can’t set gasoline prices.

In economic terms, crude oil and gasoline are what are known as fungible commodities, that is, there’s no price distinction between light crude from the United States, Saudi Arabia, or elsewhere.  The only price differential in the marketplace is the transport cost from the point of production, and since Middle East oil has a lower cost of production, in most cases, transportation costs don’t affect the price of crude, only the price of refined gasoline. What that means, among other things, is that “Drill, Baby, drill!” isn’t going to make a measurable difference in gasoline prices. In fact, as U.S. production of oil has increased over the last few years, it’s made no appreciable impact on gasoline prices because world-wide demand has increased and will continue to increase as countries such as India and China build and use more cars and trucks.

The only time in the last 60 years when a President attempted to control gasoline prices was during the Nixon administration when Nixon imposed price controls [through legislation he requested and Congress passed].  The result was a disaster.  Because oil companies could not pass on the costs of higher-priced crude oil, they stopped buying and producing it because to do so meant losing money on every barrel of higher-priced oil.  The result was gasoline lines blocks long all over the nation and fuel shortages.

On the other hand, North America is literally awash in natural gas at present.  Interestingly enough, even though natural gas prices are close to all-time lows, which means that most homes heated by natural gas have seen real heating costs decline, this doesn’t seem to translate into greater political approval for the President or anyone else.

What continues to be overlooked in the debate over Romneycare/Obamacare [The Affordable Health Care Act] is the issue of “transferred costs.”  Because hospitals are essentially required to provide health care for those who need it, the costs involved in providing such care to those unable to pay have to be “transferred” to someone else – or the hospitals would go broke. Because doctors can refuse to provide services to those who cannot pay, the uninsured overuse hospital health care, especially at hospital emergency rooms, and that drives up health care costs. Because they cannot pay, the hospitals transfer costs to other paying patients, or their insurance companies, or governments. There are two classes of uninsured – those who could afford insurance and choose not to pay for it and those who either cannot get it or cannot afford it.  The thought behind the Affordable Health Care Act was to provide insurance to those who could not afford it and require those who could to purchase insurance or pay penalties, thus addressing the cost issue and theoretically redistributing health care away from overuse of expensive hospital facilities.  Regardless of whether one agrees with the Act or not, the driving force was the accelerating cost of health care and the economics behind it – and, so far as I can see, none of the opponents of the Act have come up with a viable and workable way of addressing those economics.  They don’t want to require universal insurance; they don’t want a single payer system; they oppose any cost-cutting measures that will make a real difference; and they don’t want to deny health care to anyone. Under those parameters, health care costs in the U.S. will continue to rise, even though they’re the highest of any developed nation… and our health is below average.  The issue is economics, and no one wants to confront that reality.

Whether it’s gasoline or health care prices…it’s so much easier to cast stones… especially at politicians, and especially when they deserve blame for other things.  But right now, on too many economic issues, people are blaming politicians, and politicians are trying to blame anyone else… and none of them want to look at the economics.

 

 

 

Real Spending, Real Dollars

The “Money Report” section of the April issue of The Atlantic Monthly contains a fascinating comparison between what Americans spent as a society in 1967 and what we spent in 2007.  The facts are sometimes in agreement with popular perception… and sometimes rather wildly at variance with them.

The area where spending has gone up the most is, unsurprisingly, that of health care, and few would dispute that.  In constant dollars, adjusted for inflation, health care costs have gone from 8.1% of spending to 18.0% – more than doubling.  Likewise, the percentage we spend on business services, things like advertising, accounting, legal services, insurance other than for health care, real estate fees, and consulting, has also more than doubled (this is also where those billions in financiers’ bonuses fit in, as well as the  additional costs of such services as tax preparation, various attorney’s fees, and all the money management fees).  Recreation and entertainment spending have also increased by 80%, so whether we want to admit it or not, we’re either pampering ourselves more than we did forty years ago or the entertainment and recreation moguls are charging more for the same things.

In some areas, such as education, housing, and transportation, there’s been little change in the proportion of income we spend.  With the high increase in the cost of higher education, that suggests that spending on primary and secondary education, in real dollar terms, has dropped, and from what I’ve seen in state and local education budgets that’s definitely been the case.

On the other hand, the percentage of our spending going to food and drink has dropped by 40%, even though proportion spent at restaurants has increased by 75%. And the percentage we spend on clothing has dropped by more than 35%, no surprise to me, given the way most people look in public.

But, most surprising to me were the numbers spent on government/taxes.  In 1967, over 18% of income went to government through fees and taxes.  By 2007, that had dropped to 13.2% – a decrease of over 25%.  So… in real dollar terms, government is costing us less of our income today than it did forty years ago.  Somehow… this message hasn’t gotten across to anyone.

Admittedly, most people just look at the dollars, and in nominal dollars, the figures show that government budgets increase every year, but over time, those budgets haven’t increased as much as inflation.  Of course, neither have the earnings of the middle class, but even their earnings have only declined, in real dollars, very slightly – not the 25% real decrease we’ve seen in government spending. Is it any wonder we’re facing a crumbling infrastructure in areas such as highways and bridges, especially when a larger fraction of declining real federal revenues has been devoted to fighting overseas wars?

Of course, I doubt that these numbers, or anything resembling them, will ever show up in the political arena. But I thought some of you ought to know.

 

 

Brave New [Publishing] World

A recent internet review of  Empress of Eternity claimed that it was “the least inspiring” of any of my recent books.  I cringed when I read those words, not because the reviewer didn’t like the book – Empress tends to polarize readers; they either like it or hate it, and I understand that – by what the “reviewer” wrote wasn’t what he meant to sat.  The book was inspired.  I had to be inspired to write such an intricate and involved weaving of timelines across millions of years and make it all come together. But what the reviewer meant was that he didn’t find it inspiring.  He wasn’t inspired.

In a nutshell, this is a small example of one problem with the whole gamut of internet publishing, reviewing, and commentary.  Too many people are using words and grammatical constructions, not to mention facts, that they don’t understand… and setting themselves up as authorities.  All it takes is some eye-catching graphics, a catchy and/or pretentious title and… voila!  Another sage is born.

And if no publisher will take on a book?  Then e-publish it!  List it for sale on Amazon, and Jeff Bezos will be happy to try to sell it and take his cut.  It costs him next to nothing.  List it for $1.99 or even $.99, and maybe it will become a Kindle bestseller.  But does that tell any reader whether it’s any good?  Over the years, I’ve had reader after reader tell me that they buy books from certain publishers because they know exactly what they’re getting and what the quality is.

Established publishing firms – and magazines – tend to have standards, although I will admit that sometimes those standards and procedures do keep a good book from being published, but after 40 years in the field I can say that, for every good work that didn’t get published by a major publisher, there were thousands they didn’t publish that never should have been published… not because of censorship or anything so sinister, but because those unpublished books were just plain bad.  Such standards don’t exist on the internet, and I have doubts that they ever will.

That is what publishing firms have been for – to find, refine, and publisher works of a minimum acceptable literary quality (and hopefully much better) that appeal to the tastes of readers.  Especially in today’s fast-paced world, very few people have the time or the inclination to sift through manuscript after manuscript (or self-published e-book after e-book) in hopes of finding passable, or quality or thought-provoking entertainment.  Yet the combination of e-publishing and Amazon may very well create a huge gulf in writing/literature, with, on the one hand, the mainstream publishers only able to publish “super-titles” and a handful of other “literature” titles, while leaving readers to struggle through a sprawling mish-mash of e-novels, ranging from a comparatively few well-edited and coherent works at the top down through a vast plethora of sub-mediocrity to an even vaster array of abysmal attempts at fiction.

Welcome to the post-literate e-world!

Hardcover, E-Book Pricing… and Irritated Readers

Over the past several months, I’ve had blog comments, emails, and questions at appearances about why my publisher insists on demanding a higher price for an ebook than a hardcover. The simple answer is that my publisher doesn’t, no matter what it may seem to readers, but… obviously some explanation is in order.

So… I’ll give some examples, but please note that the prices I’m giving are those in force as I’m writing this… and they could change.

My last two published books are currently Scholar and Lady-Protector.  The book immediately published before Lady-Protector was Empress of Eternity.  At present, the hardcover of Scholar on Amazon or Barnes and Noble costs more than the Kindle or Nook version.

The hardcover version of Lady-Protector sells for $.32 less on Amazon than does the Kindle, although the Kindle price will drop on March 27th, when the paperback is released.  The hardcover price of Lady-Protector at Barnes & Noble remains above the Nook price.

The hardcover version of Empress of Eternity currently sells on Amazon at something like $6.67, less than the Kindle version, as an irate reader noted.  Amazon purchased that book from Tor for around $12.00 and has chosen to sell it at the discounted price, in all probability, in order to unload it, because the hardcover was published roughly 16 months ago, and very few hardcovers of any book sell that long after publication. Barnes and Noble has kept the hardcover price at the original level.

The reason for these disparate prices is that hardcover books are sold at wholesale to Amazon and other retailers or distributors, usually at slightly more than 50% of the cover price, and retailers and/or distributors can sell them at any price they wish.  The prices on electronic books, on the other hand, are set by the publishers, as a result of the nasty fight between all the publishers and Amazon several years ago, when Amazon insisted on selling all ebooks at a loss, subsidized by its profits in other areas, thus attempting to fix prices at a lower level and gain control of the market.

Some readers have claimed that ebooks should be far cheaper than either hardcovers or paperbacks because the ebook does not require paper, ink, printing, and physical distribution.  That’s true, but an ebook does require all the other costs of production, and at present, the “difference in cost” between ebooks and hardcovers, on average, it runs from about $2.50 to $4.00 per hardcover, depending on the number of pages and the print run, which is roughly the price differential between the price Amazon or B&N initially charges for a hardcover and the initial Kindle/Nook price.

The bottom line is that, at present, subject to an on-going legal battle and a Department of Justice proceeding, the publishers have control over the retail ebook price, but not over the retail hardcover price, and Amazon has a practice of playing games with hardcover prices as part of their on-going fight with traditional publishing… and letting readers place the blame for the “high” ebook price on the publishers, which, in fact, is half-true.  The publishers do set those prices, but selective use of low hardcover prices is totally under the control of the retailer.  Macmillan, the parent company of Tor, has a policy of dropping the ebook price to match the paperback price on the day the paperback is released.  Amazon is usually reliable in doing so… but not always, but, again, failure to drop the ebook price is not necessarily the fault of the publisher and has to be assessed, unhappily, on a case by case basis.

As an author, fortunately or unfortunately, I have no control over any of the retail prices charged for my books that are published by Tor. Nor does any author whose books are issued by a major publisher.