Episode Reprise — Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays

[Editor’s Note: Some things are just too good not to share again. While our most ardent listeners are familiar with Episode #22, Scroogenomics, many may not be familiar with this specific show. This Friday is Black Friday in the United States which means it’s time - once again - to talk about why you shouldn’t buy presents. Bah, humbug!!!]

On Black Friday, and right before Cyber Monday—the biggest shopping days of the year—Ed and Ron thought it would be fun to discuss the interesting, funny, and thought-provoking book by Joel Waldfogel: Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays.

The author makes the case that the deadweight loss to the economy from gift giving, in 2007, totaled $12 billion, out of approximately $66.5 Billion spent (about 12%). Citizens Against Government Waste would classify Christmas as a wasteful government program.

Gift giving severs link between buying decision and item’s value to its user—the transaction actually destroys value. To add insult to injury, we are obliged to pretend to be grateful!

His complaint is not the level of spending or the consumption, but the waste.

We discussed the four ways you can spend money in the economy:

Former Congressman Dick Armey pointed out how difficult spending is in Category II (Gift), let alone Category IV (Government):

Every year, I worry and fret select the right birthday gift for my wife, Susan. Every year, try as I might, I manage to choose the wrong thing. If I can’t figure the needs and desires of the one person who is closest to me in the world and who I deeply love and care for, how can we expect the government to do a better job?

Three groups spend other people’s money: children, thieves, politicians. All three need parental supervision.

Hierarchy of value of gift giving

• Aunts & uncles & grandparents = 75%

• Parents = 97%

• Friends =91%

• Siblings =99%

• Significant others = 102%

Further, we spend approximately 2.8 billion hours shopping in December. To put that number in context, the old USSR—before it imploded—spent 35 billion hours annually standing in line for everyday products and services.

Infographic from Deloitte’s 2018 annual holiday survey

Economist Ian Ayres said this about Waldfogel’s book:

Joel Waldfogel is one of the smartest and funniest economists on the planet. I think of him every time I start to unwrap a present. Buy Scroogenomics for your friends and family. It makes the perfect Christmas gift.

Episode #466: Interview with Steve Goreham — The Green Breakdown

Ron and Ed were delighted to welcome Steve Goreham to The Soul of Enterprise. He is the author of four books on climatism and green energy, and we discussed his most recent book: Green Breakdown: The Coming Renewable Energy Failure, published this year. We dove into the physics and engineering issues involved in the transition to renewable energy, and why it won’t be as easy as a lot people claim. This was an enlightening and informative discussion.

Use these show notes to follow along with the audio:

Segment one:

• Steve has an engineering background which likely helps with how he methodically approaches his new book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• Ed referenced this today because Steve alludes to it in his book. Did you know about the great horse manure crisis of 1894? More here: https://en.wikipedia.org/wiki/Great_horse_manure_crisis_of_1894 

• “The wealthy nations of the world are in the midst of an energy transition and trying to force NET ZERO by 2050.” [..] “This is beyond a reach out effort. It’s more like a wish and a prayer.” —Steve Goreham

• Today I learned, the states that have the lowest electricity rates have made significant investments in hydroelectric power.

Segment two:

• Wind, solar, and the energy mountain is a great slide provided by Steve for the show today

• “We have the wealthy nations of the world trying to force the undeveloped nations not to use coal, oil, and gas.” —Steve Goreham

• On carbon capture and storage (CCS): “I attribute [CCS] to unicorn arranging. It’s a completely useless exercise.” —Steve Goreham

• Steve touched on the idea that $5 trillion dollars has been spend on renewable energy from 2004-2021. Here is a slide with key dates.

Sement three:

• Should you ditch your gas stove, oven, water heater, or fireplace? “The recent articles around these topics weren’t written by medical professionals. They were written by climate folks.” —Steve Goreham

• Steve asks audiences this question when speaking: “What fuel source is most responsible for improving air quality across the world? Natural gas and propane.” Here is a quick source https://www.eia.gov/energyexplained/natural-gas/natural-gas-and-the-environment.php

• “We’ve really cleaned up our air in the United States. If you look at EPA data, all of our major air pollutants are down about 80%.” —Steve Goreham

• “Nuclear is very non-polluting from an air quality point of view. Many environmental groups for years and years opposed nuclear power. They’re stepping back from that now a little bit.” —Steve Goreham

Segment four:

• From Steve: Electric vehicles are penetrating world markets. Last year about 14% of new light vehicles sold in the world were electric. But dealer inventories are up. EV pickup trucks are not selling well. Ford loses on every vehicle sold. 

• The problem with electric vehicles is that governments are trying to force a change. Steve rattled off a list of about 10 states that have a law similar to California. 

• After electric vehicles, Steve shifted his attention to ships on our show today. And aviation. There are similar “green” regulations in both industries that he addresses in his book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• A big THANK YOU to Steve Goreham for joining us today. We highly recommend his newest book, Green Breakdown: The Coming Renewable Energy Failure https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• We have GREAT NEWS! Ron will be presenting at The Successful Bookkeeper Summit on December 7th - 8th. Early bird registration is available now. https://www.thesuccessfulbookkeeper.com/virtual-summit-2023  

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Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #465: Goldratt's Rules of Flow

This week Ron and Ed explored Goldratt's Rules of Flow by Efrat Goldratt-Ashlag, daughter of Eliyahu M. Goldratt whose seminal work, The Goal has been read by millions. Interestingly enough, this topic was suggested by Ron who usually falls asleep when Ed gets rolling on project management topic, so you know this episode is one to remember.

Use these show notes to follow along with the audio:

Segment one:

• This is the quote Ron and Ed started the show with. You can probably tell they had fun with it. “The common belief is that if every machine is fully utilized the entire operation will be efficient.”

• “I have been advocating for years that people who do software implementations should sell the project plan up front as a separate engagement.” —Ed Kless

• “External customers are the ones footing the bill for everything. Not internal customers.” —Ron Baker

Segment two:

• When you think about the work you can do, remember this. The more projects in the mix, the longer the lead time, which means we need to control our width. 

• “Multitasking is not true. You don’t multitask. You deal with multiple tasks in a serial fashion. You can’t possibly do more than one thing at the same time.” —Ed Kless

• One of the rules from the Rules of Flow: “If you don’t want to get stuck, verify full kit before you get going.”

• How many of you does this resonate with? From Rules of Flow: “We attempt too many projects at the same time and we pay too little attention to each project.”

Segment three:

• “If you can increase the amount of time you are spending on a particular project, you are far better off.” —Ed Kless

• Related to the Rules of Flow and project management… “Customer: I don’t have time to test. Ed Kless: Well, do you have time to fix it when it’s not working?” 

• “You always fix a problem twice. Once for the time it happens and then by thinking about what you are going to do to stop the problem from happening in the future.” —Ed Kless

• “Managers and leaders shouldn’t be scheduling what people work on when. You should give them a due date, estimated effort, and let the individual decide when they are going to complete that task.” —Ed Kless

• Ron and Ed mentioned Parkinson’s law on the show today. More here: https://en.wikipedia.org/wiki/Parkinson%27s_law

Segment four:

• Buffer time, in project management, is the extra time added into a time estimate to keep a project on track. https://www.velaction.com/buffer-time/

• The Fever Chart explained in four minutes: https://www.marris-consulting.com/en/videos/critical-chain-project-management/the-fever-chart-explained-in-4-minutes 

• “Queuing theory was mind numbing” —Ron Baker, more information here: https://en.wikipedia.org/wiki/Queueing_theory 

• “It’s all about how you arrange the work.” —the late, great Dr. Reginald Lee

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #464: On Mark Andreessen's The Techo-Optimist Manifesto - Part 2

This week Ron and Ed continued their conversation on Mark Andreessen's The Techo-Optimist Manifesto. In addition to finishing their analysis, they talked through some responses that others have had to the document. In addition, Ron and Ed were joined in the conversation by Greg Tirico of TSOE Bonus episode fame and knower-of-many-techno-things himself.

[Editor’s note: Part 1 of Ron and Ed’s discussion is episode number 462 at this link]

This show’s guest was Greg Tirico, the dude who normally takes notes for us and sits quietly in the background of each show. Since no one was sitting in the corner taking notes, we give you the best AI can provide.

AI Generated Show Notes:

• Tech optimism and the future of enterprise.
  Ed Kless and Ron Baker discuss Marc Andreessen's techno-optimist manifesto with guest Greg Tirico, who has knowledge of technical things and has previously appeared on the show. Greg Tirico shares insights on Andreessen's ideas and participates in a bonus episode for Patreon members.

• Techno optimism and fear of failure in the accounting industry.
  Greg Tirico and Ron Baker discuss Mary Meeker's former Internet Trends report and how it's no longer being produced. Joe Woodard and Heather Satterlee host a podcast on techno optimism, including an episode on the fear of failure.

• The meaning of life and materialism in techno philosophy.
  Ron Baker questions the distinction between techno optimism as a material philosophy vs. a management philosophy. Ron Baker and Ed Kless discuss how technology opens up possibilities for human existence, with Ron acknowledging the line between materialism and spirituality.

• The future of technology and society.
  Greg Tirico and Ed Kless share their excitement about the potential of the internet and its impact on society. Ron Friedman is critical of the mass demoralization of society and the undervaluing of existential risks, sustainability, and ethics.

• Enemies, ideas, and consequences.
  Ron Baker and Ed Kless discuss the dangers of "zombie ideas" and the importance of holding experts accountable for their actions. Ron Baker and others criticize Andreessen's blanket statements on trust and safety without sufficient explanation.

• Technology, ethics, and the future.
  Ed Kless and Ron Baker discuss the precautionary principle and its connection to civilian nuclear power. Asimov's Foundation Series features miniaturized civilian nuclear power.

• Techno-optimism and its limitations.
  Greg Tirico and Ron Baker discuss Marc Andreessen's techno-optimist manifesto, focusing on the section on the enemy and the idea that bad ideas are more harmful than bad people.
  They also discuss how the population has voluntarily adopted monitoring devices like iPhones, which could be seen as a form of 1984-style thought control.

• Techno-optimism and the future of humanity.
  Ron Baker and Ed Kless discuss the importance of being optimistic about the future and fighting for a better world, citing David Deutsch's idea that we have a duty to be optimistic because the future is open and not predetermined. Alex Epstein is mentioned as someone who is talking about the importance of developing countries and reducing poverty, and Ron Baker finds his message compelling. Ron Baker and Ed Kless discuss techno optimism and the importance of builders in society, citing various influential thinkers.

• Influential authors and the challenges of creating a comprehensive list.
  Greg Tirico and Ron Baker discuss the difficulty of creating a comprehensive list of well-read individuals, as it inevitably excludes others.

• Twitter accounts and their humor.
  Based Bev Jesus is a hilarious Twitter account poking fun at cutting-edge technology, including large language models from Facebook. Ed Kless and Ron Baker discuss sponsors, ratings, and shoutouts on their podcast.

• A Wired article criticizing Marc Andreessen's techno optimist manifesto.
  Steven Levy, well-known tech author, critiques Marc Andreessen's manifesto in Wired article.
  Steven Levy, technology journalist and author, has been involved with Wired magazine since its inception and has written several books on tech companies, including Google and Facebook.
  Greg Tirico expresses disappointment with Steven Levy's attacking tone in an article about Andreessen Horowitz.

• Late stage capitalism and wealth inequality.
  Ron Baker and Ed Kless discuss the use of the term "late stage capitalism" in a recent article, with Baker finding it grating and Kless pointing out its repetition. The speakers debate the effectiveness of addressing income inequality through wealth creation, with Baker arguing that it's a separate issue and Kless suggesting that it's intertwined. Greg Tirico expresses techno-optimism, while Ed Kless and Ron Baker criticize Andreessen's essay for lacking solutions to wealth creation and distribution issues. Baker and Kless argue that Andreessen's manifesto is overly critical and cherry-picks information, while Tirico's response is more constructive and focused on providing solutions. Ron Baker and Ed Kless analyze Marc Andreessen's article, criticizing his views on healthcare and entrepreneurship. They argue that Andreessen's success may be due to jealousy and envy from those who are less wealthy and successful.

• Techno optimist manifesto with rebuttals.
  Greg Tirico and Ron Baker discuss the techno optimist manifesto with a few rebuttals from listeners. Greg Tirico highlights Marc Andreessen's effort to elevate the conversation on technology and its impact. Critics dismiss Andreessen's manifesto as a "word salad" with no substance.

• AI regulation and its potential impact.
  Ed Kless and Ron Baker discuss the potential dangers of artificial intelligence and the importance of responsible policymaking. Biden's executive order on AI is inspired by Tom Cruise's movie "Mission Impossible," with a focus on government standards and monitoring.
  Ed Kless and Ron Baker are skeptical of fears about AI, with Kless calling it "fear mongering" and Baker saying there's no evidence it contradicts human flourishing and progress.
  Greg Tirico notes the potential for AI regulation to harm the US and lead to a "slippery slope" of regulation, while Adam Firor expresses concern that the EO could lead to a backdoor regulatory regime. Optimists face backlash for their positive views, while pessimists are more likely to be recognized and rewarded.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.