Showing posts with label Division of Labor. Show all posts
Showing posts with label Division of Labor. Show all posts

Tuesday, January 13, 2015

The shadow work behind your supper

Mother Jones printed an article I agree with that wasn't written by Kevin Drum.

This doesn't happen very often, so let's go into more detail. It's a few years old, but it's new to me. In the piece, Tom Philpott challenges the idea that cooking at home is cheaper than eating fast food.

First, a little background information. Poor Americans are more likely to be overweight, and one explanation is that they lack access to healthy foods and buy fast food because it is easier to get and costs less money. I don't buy that explanation, but I've never found the counter-argument compelling either; that it's cheaper to cook at home than to eat fast food.

The New York Times printed a column and infographic by Mark Bittman showing a hypothetical McDonald's meal and contrasting it to a meat and potatoes meal at home. According to Bittman, the home-cooked meal is both cheaper and healthier.

But Philpott noticed a key difference: One is a prepared meal, ready to eat, while the other is just the raw ingredients.

But what about the time it takes to plan the dinner, shop for the ingredients, transform them into a meal, and then clean up the resulting mess? 
The Bureau of Labor Statistics (BLS) tells us that the median hourly income in the United States is $16.27. Let's say it takes two hours to put the Times' meal together and clean up afterward—for the median US worker, that's about $32 worth of labor. VoilĂ ! Our chicken dinner now costs around $46. Suddenly, that $28 Mickey D's excursion looks like quite the bargain. 

Here's what I saw as Philpott's first flaw in the article: His $16.27 an hour figure is for a median hourly worker, but that's not a valid figure for a poor person. Their time will be worth significantly less. Let's forgive his poor choice of numbers and instead look at this as an opportunity cost issue.

Cooking for one's family is an example of shadow work, or unpaid labor that could otherwise be performed by a middleman. Without trying to put a specific dollar amount on it, people's time does indeed have value. They may be extremely busy and lack the time to cook a full meal, or see it as wasteful. There may be other things they want to do with their time.

Despite what Philpott says, the family who gets take -out is not leveraging "the fast-food industry's cheap labor pool for a fuss-free meal." No, they are leveraging the economies of scale that comes from purchased food, as opposed to cooking it at home in a small-scale operation that frequently ends with extra perishable ingredients and may have to throw them out.

While I don't agree with the details Philpott used, his overall idea is correct that preparing cooked foods and raw ingredients will always be an apples and oranges comparison.

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Wednesday, September 24, 2014

Being lazy is not a virtue

A German writer, Patrick Spaet, is convinced that hard work is a fetish and we should be more open to financing the lives of everyone else. In part because modern technology replaces a lot of physical labor and also because rewarding people who work is a mistake. For example, Spaet writes:

This situation is all the more schizophrenic in that we take every opportunity every day to escape toil and work: who voluntarily uses a washboard, if he has a washing machine? Who copies out a text by hand, if he can use a photocopier instead? And who mentally calculates the miserable columns of figures on his tax return, if he has a calculator? We are bone idle, and yet we glorify work.

But his entire premise suffers rests on the fatal assumption that jobs exist to keep people busy, something I have pilloried here for years. No, the point of work is to be productive, and people who are capable of being productive but opt not to are looked down for leeching off the labors of others.

That's not just right wing resentment of people on the social safety net, but also left-wing hatred of rich kids and workers in the finance industry, who they do not see as making any real contribution. These resentments have flaws - there really are people on the social safety net who are unable to work, and finance does have an important role in society that requires long hours of office work - but even with those flaws the resenters have a fair point in principle.

Spaet is right that technology makes people more productive, but his flaw is in thinking that it would be acceptable to compensate for technological advances by reducing labor until productivity breaks even with the past. That would leave several billion people in avoidable poverty so that nose-crinkling anti-capitalists like himself can get more leisure time. It's easy to look down on growth when you're not poor.

People want a higher standard of living, including people who already live comfortably. I can respect someone wanting to work less and live a simpler lifestyle, such as a European household compared to an American one, but that's different from Spaet's sci-fi utopian fantasy where work is entirely optional. We all benefit from productivity, not mindless toil, and the distinction is important.
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Sunday, December 22, 2013

The 6 hour workday is still a bad idea

I saw this posted as a serious argument today by an adult who should really know better.

The idea is to change the standard workday from eight hours to six. This is a pretty old, dead idea once championed by labor unions to "spread the work." The idea is to make people work 30 hours a week and hire more workers to fill the gap, and increase everyone's pay 33 percent so they don't lose any income.

Henry Hazlitt demolished this argument about 70 years ago, reminding people that if we increase the labor cost by that much, the products and services will get more expensive as well. Once again, there is no free lunch.

But this author tries to dazzle the reader with new scientific-sounding idea, but they all fall flat when one tries to take them serious. We're told that workers are the most productive two to four hours after they wake up, so starting the workday later will make them more productive.

I wonder if the author has ever interacted with college students. When you start later in the day, you tend to go to sleep later and wake up later. There goes that idea.

That wasn't the only productivity-increasing argument.

A shorter workday works particularly well for knowledge workers - people in creative or professional jobs - who can work productively for about six hours a day, compared to the eight hours manual laborers can churn out, according to Salon. Unlike machines, humans operate on a cyclical basis, which means our energy and motivation fluctuate in peaks and troughs. Cognitive workers tend to be more focused in the late morning, getting another energy boost in the late afternoon when lung efficiency peaks.

The unstated major premise here is that productivity will more than compensate the loss of one-quarter of the workday. There's no evidence that this difference in productivity per hour is particularly large. It would need to be 33 percent just to break even. The differences in productivity- if they actually exist - might be so small to the point that they are unnoticeable, and even then they only apply to a limited number of jobs. Productivity would fall, not rise, under this scheme.

Losses to productivity and/or higher prices equal a fall in real wages. That doesn't help anyone.

Another benefit of the shorter workday, Kellogg’s discovered, was that employees were happy to work less when they were paid 12.5% more per hour, meaning the company was able to offer more jobs. Maybe the six-hour workday could be a solution to the US’s current minimum wage debate.

Maybe not, as this last paragraph practically proves the scheme will make workers poorer. The union activists from a century ago had the good sense to demand a 33 percent increase in wages so their paychecks don't change. This scheme is asking for the same reduction in hours, but a pay increase of only 12.5 percent. That's nearly a third less.

Cutting supplies, increase the cost of goods and services and reducing how much each worker receives is not only a bad idea, it's an unoriginal one.
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Sunday, January 20, 2013

Keep the middle man

This weekend I've been reading The Locavore's Dilemma by Pierre Desrochers and Hiroko Shimizu and several passages about the role of intermediaries reminded me that I have been meaning to write about the importance of middle men.

Intermediaries, they write, complete important tasks like assembling, grading, packaging, processing, storing, transporting, financing, distributing and adverting products. The uninformed public, especially Marxists, have seen these middle men as redundant parasites who stand between the customer and the craftsman or farmer. They insist this makes buying and selling impersonal and the process needs to be changed.

This mentality is just a knee-jerk reaction to the division of labor, something Henry David Thoreau compared to letting another man do his thinking for him. What they gloss over is that when you don't hire a middle man that labor has to be performed by someone else, often the customer.

This is called shadow work, unpaid labor that the customer picks up from an eliminated middle man. When you spend an hour on the Internet searching for cheap airline tickets instead of hiring a travel agent, you are doing shadow work. The money you save is the shadow work payment. For some people, that's worth it. If you are a corporate attorney, it probably isn't and you'd rather have the free time.

In 2011 Craig Lambert wrote a New York Times article on the growing problem of shadow work. That is to say, the problems that have come from eliminating middle men.



To be sure, shadow work has its benefits. Bagging one’s own groceries or pumping one’s own gas can save time. Shadow work can increase autonomy and enlarge our repertoire of skills and knowledge. Research on the “Ikea effect,” named for the Swedish furniture manufacturer whose products often require home assembly, indicates that customers value a product more highly when they play a role in constructing it. 
Still, doctors routinely observe that one of the most common complaints today is fatigue; a 2007 study pegged its prevalence in the American work force at 38 percent. This should not be surprising. Much of this fatigue may result from the steady, surreptitious accumulation of shadow work in modern life. People are simply doing a huge number of tasks that were once done for them by others. 
Doing things for one another is, in fact, an essential characteristic of a human community. Various mundane jobs were once spread around among us, and performing such small services for one another was even an aspect of civility. Those days are over. The robots are in charge now, pushing a thousand routine tasks onto each of our backs.

The beauty of middle men is that they perform tasks that would otherwise end up as shadow work. There's nothing redundant or parasitical about that.

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