Parasitic Credit Card Companies

David GlasnerA favorite tactic of the credit-card industry is to offer customers zero-interest rate loans on transferred balances. Now you might think that banks were competing hard to drive down the excessive cost of borrowing incurred by many credit card holders for whom borrowing via their credit card is their best way of obtaining unsecured credit. But you would be wrong. Credit-card issuers offer the zero-interest loans because, (a) they typically charge a 3 or 4 percent service charge off the top, and (b) then include a $35 penalty for a late payment, and then (c), under the fine print of the loan agreement, terminate the promotional rate on the transferred balance, increasing the interest rate on the transferred balance to some exorbitant level in the range of 20 to 30 percent. Most customers, especially if they haven’t tried a balance-transfer before, will not even read the fine print to know that a single late payment will result in a penalty and loss of the promotional rate. But even if they are aware of the fine print, they will almost certainly underestimate the likelihood that they will sooner or later miss an installment-payment deadline. I don’t know whether any studies have looked into the profitability of promotional rates for credit card issuers, but I suspect, given how widespread such offers are, that they are very profitable for credit-card issuers. Information asymmetry strikes again.

—David Glasner
Is Finance Parasitic?

What Came First in TPP: the Trade or the Cronyism

Tyler CowenOne interesting thing about the Trans-Pacific Partnership (TPP) is that libertarians are on both sides of it. There are what I would consider the stupid libertarians, who are in favor of the deal because they are for anything that seems like it will make the rich richer. These are the kinds of libertarians who are against unions and for the liberty-destroying “right to work” laws. If we exclude the people who are libertarians simply because it is a presentable form of neo-confederacy (and that is most of them), the majority of libertarians are of this kind: people who just think the rich are super-keen and need to be ever rewarded. This group includes Tyler Cowen — hero of subgeniuses everywhere!

Timothy B. LeeBut there is a small fraction of the libertarian movement that is actually in favor of individual liberty. This group will generally be against the TPP. They understand that this treaty is not much about trade. What it is primarily about is providing handouts to powerful economic interests. So I was pleased to see that, as I had previously noted, Timothy B Lee is one of the better kinds of libertarians. He’s still wrong about exactly what libertarianism would bring, but he is at least trying to create a better world for all, not just for those who are already doing well.

Over the weekend, Lee wrote, Why Killing Obama’s Trade Deal Could Be Good for Free Trade. Cowen had claimed that if the TPP gets shot down, future trade deals could be worse as a result. Why that would be isn’t clear. His followups seemed to be a lot of magic thinking: he believes it because he’s already decided that the TPP must be good. Lee, in refreshing contrast, was clear as could be: it’s the cronyism, stupid!

The US has been using trade deals to push counterproductive copyright and patent policies on the rest of the world since the 1990s. Each time a deal comes up for a vote, supporters play up the trade provisions and downplay the corporate giveaways. If the TPP is approved, we can expect the same kind of terms in the next trade bill the US negotiates.

And conversely, if the failure of the TPP is seen to be due to all of the corporate giveaways in the deal, then future deals would be seen as DOA if they included them. As Lee put it, “When special interest groups started lobbying for another round of goodies, US trade negotiators would be able to say, ‘We’d love to help but we can’t risk having the deal rejected.'” The only question is whether future trade negotiators would see it that way.

But on that issue, Lee is also right: none of the major players arguing against this treaty are doing so out of a sense of protectionism. The number one thing that I hear people talking about is that it strengthens intellectual property rights, which will increase costs everywhere. The second thing I hear most often is the threat that the TPP could cause to democratic governance through the strengthening of investor-state dispute settlement — the unaccountable international legal system that could force countries to pay companies for laws that the court claims are hurting companies’ profits.

On the other hand, so what if future trade negotiators don’t take that lesson away from the defeat of the TPP? Surely after the defeat of the Transatlantic Trade and Investment Partnership (TTIP) for similar reasons, they would learn. And if not for that one, maybe the next. Whatever it takes. Although I have to say: I don’t see us getting more of these treaties if there aren’t major businesses able to get special treatment. The barriers to trade are already low. The TTP (and TTIP) didn’t come about because governments were itching for them. Now, the point of these deals seems to be very little besides the cronyism. I think they start with the cronyism and then come up with other things that will allow them to be sold.

Dealing With Inequality Requires Progressive Taxes

Family Legacy

This cartoon sums up a fact of our economic system. And it provides all the information you need to appraise the claim so loved by conservatives, “We don’t care about equality of outcomesopportunity.” What they mean is that they don’t care about either. It’s really quite simple: equality of opportunity — or even anything in the same ballpark — is a lie if equality itself is too far out of kilter. The conservatives who don’t care about inequality are just the modern day royalists. They want to enforce the current class makeup of society, but rather than use the idea of “blood” they use the far less reasonable idea of “meritocracy.”

The great cure-all for inequality is “education.” I’ve written about this a lot over the years. It is based on a correlation. Not surprisingly, people with college degrees make more money than people without college degrees. Of course, I’m highly skeptical of the mechanism here. For one thing, it is easier to get a college degree if you are stupid with rich parents than it is if you are smart with poor parents. So to some extent, a college degree is simply an indication of class. But the real reason that people push education is because it is a way of saying, “We can’t do anything right now!” And then they have another couple of decades to come up with a new reason why the rich should never be taxed.

Matt BruenigSo when Bernie Sanders (or Barack Obama) suggest that college be free, I’m not exactly inspired. That’s not to say that I don’t think it is a good idea. But it is not the panacea that many people think it is. As a result, I was very interested to read a recent article by Matt Bruenig, Wealth Inequality and Student Debt. In it, he provided a very useful thought experiment.

First, consider our current system for funding higher education. Two students — one rich and the other poor — go to a college that costs $100,000 for four years. The rich student gets no government assistance, but her parents pay the $100,000 and she ends up with no debt. The poor student gets $50,000 from the state, and nothing from her parents. She ends up with $50,000 in debt. Thus, the rich student is $50,000 ahead of the poor student.

Bernie SandersSecond, consider the Sanders system for funding higher education. Both students pay nothing for college. But the rich student’s family still gives her $100,000 — perhaps as a down-payment for her first house. So she ends up $100,000 ahead and the poor student ends up even. In the first case, the poor student ends up $50,000 worse off. In the second case, the poor student ends up $100,00 worse off. This means that the more progressive system actually increases inequality more than the current system.

Note that this is true whether we are looking at the student alone, or the student’s family. And it is worse than even this makes out. Because a college degree for the rich student is going to be worth more than the college degree of the poor student. The rich student will simply have more opportunities based upon her connections. So the reward for that $100,000 investment is almost certainly far greater than the reward that the poor student gets from her $50,000 investment.

All of this highlights the fact that we need a highly progressive tax system. This, of course, is why the rich are so stuck on the idea of a flat tax. It is considered by them to be “fair.” But, of course, in the case above, it clearly isn’t. The tax system folds back on itself, because it doesn’t benefit the poor as much as it ought to. In the most basic sense, the rich student’s parents should be paying at least $50,000 more in taxes than the poor student’s parents pay. And when it comes to the upper middle class, that may well be the case. But when it comes to the truly wealthy, that isn’t the case at all. As I noted during the 2012 election, in Mitt Romney’s most recent tax year (2011), he had paid almost exactly the same tax rate that I did, even though I had made about $20,000 that year and he had made more than $13 million.

Clearly, there are more specific solutions to this problem. For example, we could just pay the tuition of poor students and not leave them in debt, even as we did nothing for rich students. But ultimately, the “free college” solution is the best. We just have to figure out how to tax everyone fairly. Until we do that, all is lost.

Capitalists Hire Managers

Karl MarxOur [capitalist] friend, up to this time so purse-proud, suddenly assumes the modest demeanor of his own workman, and exclaims: “Have I myself not worked? Have I not performed the labor of superintendence and of overlooking the spinner? And does not this labor, too, create value?” His overlooker and his manager try to hide their smiles. Meanwhile, after a hearty laugh, he re-assumes his usual mien.

—Karl Marx
“Have I Myself Not Worked?”

If Court Harms Obamacare Reps Will Be Blamed

Jeffrey ToobinLast week, Jeffrey Toobin pushed back against the idea that if the Supreme Court find for the plaintiffs in King v Burwell, it is a problem for the Republicans, Obama’s Game of Chicken With the Supreme Court. In fact, he used Colin Powell’s old Pottery Barn rule to make the case. According to him, if Obamacare is broken, it will be the president’s problem because it is the president’s law. Toobin is a smart guy, but I don’t think he has a clue about political science.

Think about government shutdowns: why is it that the people always side with the president? Well, part of it is because the president is always a Democrat. Dig down a little deeper and you will see that the public’s reaction is almost axiomatic. Democrats are seen as being in favor of the government. Republicans are seen as hating the government. (I don’t think either of those perceptions are right, but they are what people think.) So when the government is shut down, it must be because the Republicans wanted it. If the proximate cause is the Democrats, it must be because the Republicans forced them into it.

The case here is even more on the Democrats’ side. The whole point of the Pottery Barn analogy was that if Bush went into Iraq and broke it, he bought it. In this case, it isn’t Obama who’s screwed things up. You’d have to use some pretty twisted logic to get there: people are getting subsidies because of Obamacare, and now they aren’t because of the continued Republican War on Obamacare, and so it is Obama’s fault for people not getting something that Obama gave them to start with. No. This is much simpler: Republicans hate Obamacare and this is their fault. This one isn’t hard. This is how it will play. Whether the Republicans will care or not is another matter.

Another aspect of this is how media shape perceptions. Clearly, the media cannot push a narrative that is totally at odds with what people are inclined to believe. But the media can certainly push a narrative that goes slightly against what the public is inclined to believe. And there isn’t even a question in this case. The media will push the narrative that the public already accepts. The only thing that will push against this is Fox News and hate radio. And the people who tune into those “news” sources will already believe the narrative that they are hearing. In terms of overall perception, we are talking about the people who listen to NBC Nightly News.

Clearly, everyone should hope that King v Burwell goes down in flames — with none of the justices siding with the plaintiffs. If that happened, maybe we could put an end to these frivolous anti-Obamacare lawsuits. If we get another 5-4 decision, I fear they will continue on. It’s like playing craps: the conservatives just keep rolling the dice hoping to get lucky. Regardless, this will be a problem for the Republicans and they will be forced to deal with it — even if they do it in a piecemeal way just until the next president’s term.

Memorial Day 2015

Memorial DayHappy Memorial Day. I used to really hate holidays — unless they were ones when people called me over to cook. To me, they were just days when the library wasn’t open and there wasn’t much news. But now, all days are pretty much the same for me. So it’s Memorial Day and that doesn’t really change anything. But Memorial Day has always been an exception in the sense that it is a serious holiday. As much as I may question the American war machine, I don’t question the sacrifice that people have made in the name of official government policy.

I’ve twice written about Memorial Day. The first time was, Remembering on Memorial Day. At that time, I said:

In general, the military is used by countries for immoral purposes, like accumulating resources and providing leaders with glory. Thus, it isn’t the military who we should despise but the country’s generally vile leaders. At the same time, I think it is a major mistake to pretend that we owe the military any greater acknowledgement than other public servants.

But this isn’t Veterans Day, it is Memorial Day. It is the day to honor those who died in our wars. Most of these people (one way or another) had no choice about serving. Regardless, they were all doing what our leaders said was the right thing to do. These people should be honored. My only wish is that we honored them by not thinking that every new war is a great idea. We should honor the dead by limited who we send to die in the future.

Last year, I wrote, Try to Be Better on Memorial Day. I think that it is worth quoting in total, because it sums up what I feel about this holiday — both good and bad:

It is the way of my people. We are not barbecuers. We do not like the Monday holidays. But if it is for a good cause, we bear it. The labor struggle is a good cause. The civil rights struggle is a good cause. And today is Memorial Day, and remembering the men and women we sent to their deaths, is a good cause. I like to think of Memorial Day as a day of remembrance of all who have died pointlessly. And before people jump on me, war is a pointless activity. It doesn’t matter that there are times when good people are forced to fight wars. World War II was a righteous war because of the Nazis and others, but certainly it would have been better if the Nazis had not risen and forced the world into war.

Let’s think about the “Good War” for a moment. As many as 25 million soldiers died during it. Of those, 5 million died while in POW camps. As many as 55 million civilians died, roughly half of them from disease and famine. What a waste. I can’t help but think of us as two colonies of ants, because the individuals on either side are pretty much indistinguishable. The treatment of Jews and other “undesirables” by the Nazis was inhuman, but other than being more concentrated it was no different than what we did to the native peoples of America. The Japanese treatment of the Chinese was terrible, but did it really justify our systematic destruction of the Japanese civilian population? Did it justify dropping two atomic bombs on them?

Again and again, I come back to 95/5 principle: 95% of the population just wants to live their lives and have their Memorial Day barbecues (or in the case of my people, write maudlin essays about the tragedy of war); and 5% of the people want something else — I don’t even know what it is anymore. It’s mostly power, I suppose. But once these things are set in motion, there seems no way to stop it. Everyone has pitchforks and torches, and in the end no one is quite sure why.

Simpsons' Mob

Unlike Memorial Day that I rather like, I really dislike Veteran’s Day. The whole thing reminds me of the bumper sticker, “If You Like Your Freedom Thank a Vet.” Sadly, the military is necessary. But the last even remotely existential threat we faced was 75 years ago. And sure, we should thank those vets. But just as much, we should thank the vets of the Soviet Union — over 11 million of whom died to protect our freedom.

But if people want to see Memorial Day as a nationalist holiday, I’m against that. The last thing we need is to expand the holiday — to make it about even more dead soldiers. The sacrifice that these men and women gave is not “cool.” It is not something to be celebrated. It is something to be honored, because as a species, we are extremely flawed. Above all, it should be a day that we, as a species, ask forgiveness from those we’ve murdered in what were almost always fights over natural resources. Very much like this:

On this Memorial Day, let’s try to be better than the chimpanzees.

So there you go. Let’s honor and remember our military dead. And let’s try to do better from now on. It is not a matter of better technology. It is a matter of better morality. Happy Memorial Day.

Liberalism and Conservatism in America on TPP

Timothy B. LeeOver at Vox on Friday, Timothy B Lee wrote a surprisingly thin article based on a single source, These House Republicans Are Bucking Their Party Leaders — and Obama — on Trade. Mostly, it is just, “This is what my Cato friend, Bill Watson, thinks is going on in the House.” Watson is just your typical Cato ideologue who thinks that the Trans-Pacific Partnership (TPP) is going to be like fairy dust on partner countries. That’s because he, like most proponents, claims, without proof, that the TPP is about “free trade.” Well, at least in Lee’s article, we don’t have to listen to such nonsense. But I do wonder if the Republican vote totals that he presents are any more grounded in reality than his arguments for the TPP.

He claims that there are between 15 and 50 Republicans in the House who will vote against fast track authority. If it is 50, bye-bye TPP! If it is only 15, then the president gets his “legacy” bill and we get another “trade” agreement that will cost American jobs and put more money into the pockets of the already rich. Given that this is is the raison d’être for the American government, the people will probably not even notice. The modern American is used to slipping further and further behind. She might have a heart attack if our long slide down were interrupted.

But what I found really interesting in the article was Lee’s comparison of the Democrats’ reasons for being against the deal and the Republicans’ reasons. The Democrats oppose the treaty on the basis of practical concerns. For example, one of my biggest complaints is that greater enforcement of intellectual property rights in other countries will crowd out actual goods that Americans make. For example: Hollywood is just going to take this money and run; it isn’t going to produce more and better films. So money that was once available to Vietnamese consumers to buy our stuff will instead go straight to the power elite in Hollywood. This is one of the mechanisms in the TPP that will redistribute income upward.

The Republicans, not surprisingly, don’t need no stinking practical concerns. Instead, they are concerned about the “Constitution” and “executive power.” But most of all, they are focused on the fact that they hate the current President of the United States. In addition, of course, Republicans are concerned about things that aren’t real. Lee mentioned, “And when Republican do complain about the contents of the TPP, they sometimes focus on topics that almost certainly won’t be part of the trade deal.” That includes the fear that the TPP will allow more brown people in the country.

This is, sadly, the great divide in American politics. And it is amusing that a libertarian like Lee would highlight it, even if he doesn’t frame it as systemic. “Liberalism” in America is just the practical business of governing. It is largely devoid of ideology. “Conservatism” in America is just the business of attaining ideological purity. But the ideology of the conservative movement is vague at best — having something to do with American exceptionalism: small government when it comes to the least dangerous aspects of public policy and large government when it comes to the most dangerous aspects of public policy. This is why most liberals can at least have a decent political discussion with libertarians. They may be lost in the ideological vapor, but at least their ideology is relatively coherent.


See also: TPP Could Create 4,000+ Minimum Wage Jobs.

Empty Educational Crazes

HL MenckenEvery year sees a craze for some new solution to the teaching enigma, an endless series of flamboyant arcana. The worst extravagances of privatdozent experimental psychology are gravely seized upon; the uplift pours in its ineffable principles and discoveries; mathematical formulae are marked out for every emergency; there is no sure-cure so idiotic that some superintendent of schools will not swallow it. The aim seems to be to reduce the whole teaching process to a sort of automatic reaction, to discover some master formula that will not only take the place of competence and resourcefulness in the teacher but that will also create an artificial receptivity in the child.

—HL Mencken
“The Educational Process” in A Mencken Chrestomathy — Originally in The New York Evening Mail, 23 January 1918

Centrist Pundits Pushing Hopeless Candidates

Josh MarshallJosh Marshall at Talking Points Memo wrote an insightful article last week, Chris Christie and the Distorting Lens of New York Media Dominance. It answers the question, “Why is so much made of these northeastern Republicans when they never have any hope in a national primary?” There is a lot to his answer. Basically: so much of the media establishment — including conservative flagships — is located in the northeast. He also noted that this is where most of the moneyed Republican base is. But, “It’s just not where the voters come from.”

As everyone should know, this is the standard problem for the Republican Party. It is committed to the interests of Wall Street. But that doesn’t win elections. The Republican base voter is mostly interested in social issues. The truth is that Chris Christie and Rudy Giuliani are extremely conservative. “But they are usually not terribly focused on the evangelicalism-tinged social issues that drive Republican party identification in its heartlands.” So these guys might be loved by Wall Street, but they are like the Southern Strategy without the south: they aren’t going to win elections, even if northern Republican voters rather like them.

I agree with all of this. But I think there is another aspect to it. It has to do with the Professional Centrists. These are the people, who represent the foundation of the commentariat, who are always and forever looking for a “third way.” By definition, the Republicans are too conservative and the Democrats are too liberal. And we know it is definitional, because these people so often call on the two parties to compromise on what turns out to already be Democratic policy. But even if it weren’t for this, how can someone look at both the Democratic and Republican Parties and how much more conservative they’ve become over the last 50 years and think, “Sure, the Republicans are too conservative, but the Democrats are too liberal!”?

For these kinds of pundits, the Republicans from blue states will always have a special glow. It’s simply because those Republicans can’t afford to look like rattle snake handlers. But since the pundits don’t care about actual policy, they can focus on the way that people like Christie and Giuliani seem like regular people (in the sense of “like people who upper class pundits know”). What’s more, they seem less conservative than the likes of Ted Cruz — even though they aren’t. So it allows these Professional Centrists to claim that these Republicans are centrists. It’s axiomatic: given that Democrats are too liberal and Republicans are too conservative, any Republican who they decide is less conservative than the Republican Party generally must be a centrist or moderate. QED.

Charles Murray Finally Realizes He Isn’t Winning

Charles MurrayCharles Murray is out with another book, By the People: Rebuilding Liberty Without Permission. I haven’t read it because no one is paying me to. There are too many great books that I will never have time to read. I’m not going to waste my time reading yet another of his screeds. Let’s be clear what he’s all about. Most people know him from, The Bell Curve. As a result, most people think of him as a racist. Indeed, I’m pretty sure I have called him that myself. But it isn’t quite appropriate. Murray doesn’t care about race. Like all of his books, The Bell Curve was making a social argument for conservative policy. In that particular case, he was arguing for an end to affirmative action.

This new book is more practical. He argues for a kind of civil disobedience. He wants some billionaires to pony up some money for a legal defense fund that will allow companies everywhere to break the law. This act of widespread law breaking will thus paralyze the system and the long promised libertarian utopia will at least be at hand! Some people seem genuinely concerned about it. Sam Seder and Digby spoke about it at some length on The Majority Report on Tuesday. But I don’t think there is much to worry about here.

Matt Bruenig tackled the issue last week with his usual finely tuned analysis, Charles Murray’s Abracadabra State. He noted that Murray’s legal defense fund would constitute insurance. And in most areas, the courts have already made insurance against law breaking illegal. Now it is possible that the court system would allow conservatives to get away with such a scheme. But that would be because the courts wanted the same thing that the conservatives wanted. That, of course, does not seem likely. Even conservatives judges bristle when conservative activists try to mess with their power.

To me, Murray’s idea is just a systematic approach to what conservatives have long been doing. We have seen two major challenges against Obamacare. But the truth is that conservatives have filed hundreds if not thousands of similarly frivolous lawsuits. And they were all taken care of very quickly. And it goes back much further than that. Conservatives love to rail against “activist judges,” but for the last 30 years, it has been the conservatives on the bench who have been activists. There are very few people in the federal courts who would be seen as liberal outside our own skewed definition of the term.

I think that Brian Beutler is exactly right, Charles Murray and the Right’s Plan to Subvert Democracy. But even that gives the conservative movement too much credit. Despite their constant claims to the popularity of their cause, conservatives gave up on democracy over two centuries ago. This is one of the great burdens of being a conservative. If you are serious, you have to admit that the people are not on your side. And that means abandoning the idea of democracy. And that means you want something like a philosopher-king. Of course, that’s not going to happen. Instead, it would just be a king — some better than others. But most conservatives are fine with that — just as long as they are part of the aristocracy, and they are allowed to keep stealing from the poor.

Murray’s subtitle is telling, “Rebuilding Liberty Without Permission.” It’s interesting how conservatives see liberty as being whatever it is that they want. It’s never thought out. I would like the liberty to live anywhere that I want and to hunt and gather. But Murray would say: no, no, no! That’s because the kind of liberty I’m talking about interferes with the kind of authority (property rights) that he believes in. Murray doesn’t believe in liberty, though; he believes in a system of government that is more attentive to the interests of his class. Of course, he’s living in a dream land. There is no government that could be more attentive to the interest of his class than the one we have in the United States — at least one that wouldn’t cause a revolution.


See also: David Frum Summarizes Charles Murray

Anniversary Post: “Mary Had a Little Lamb”

Sarah Josepha HaleOn this day in 1830, the nursery rhyme “Mary Had a Little Lamb” was first published. I’ll provide some discussion of it in a moment, but first I want to talk about it in the context of copyright law. If the law had been then as it is now, “Mary Had a Little Lamb” would have still be under copyright at the beginning of 1949. Think about that. The first American steam train was produced in 1830. That was the cutting edge of transportation. And we would have had to wait until the dawn of the Space Age before this little rhyme was considered part of the public domain. After it was written, we lived through the Civil War and then World War I and then World War II. But according to current American law, the country had only then moved on enough for the rhyme to be considered part of our shared culture. Until then, it was simply property for some corporation to use to extract rents.

It was written — to one extent or another — by Sarah Josepha Hale. Born in 1788, she lived all the way to 1879, which is one of the reasons that the length of the copyright would have been so long. It was published as part of her book, Poems for Our Children. You can find out more about her in the birthday post I wrote about her, Sarah Josepha Hale Had a Little Lamb.

So happy 185th birthday to “Mary Had a Little Lamb.” Now let’s go fix our broken copyright system!

Brilliant Onion Video Explains Copyright Dysfunction

CopyrightI think people are often confused as to exactly what I am talking about with regard to intellectual property (IP) laws and how they are out of control. They also often think that it is strange that someone who actually makes (very little) money from royalties would feel this way. On a personal level, it is just because the IP laws are not set up for creative workers; they are set up to ensure corporate profits. And there are far better ways to encourage creative work besides copyrights and patents. One is Dean Baker’s idea for Artist Freedom Vouchers.

But rather than get into such details, I’d like to share with you a two and a half minute video. The Onion produced it, How To Successfully Sue Other Moms Who Steal Your Parenting Tricks. It is part of a series by a character, Grace Manning-Devlin. She is a vblogger who produces a show called, “Mothers Should.” In it, she provides parenting advice to other upper class mothers. Perhaps the best is, Baby-Naming Tips For New Moms. In it, she explains that the hottest trend in baby naming is, “Naming your baby after jobs that no longer exist.” For boys, these include names like, “Cooper, Tanner, Milkman, Serf…” And for girls, “Lector, Bluestocking, and Town-Hag.” She also recommends names from the Bible, like “Daniel” and “Shan’t.”

The video on copyright and patents gets the tone completely right. Check it out:

I’m not a parent, so I probably don’t get all the jokes here. But the main thing seems to be that she is copyrighting trivial things. But even more than that, she’s copyrighting things that clearly didn’t originate with her like the smiley face bubble bath. This is quite common. The most infamous example is the song, Happy Birthday to You. The song dates back to the mid-19th century. But some company got the idea of copyrighting it in 1935, and people have been paying for it ever since.

The video also highlights the use of legal harassment by copyright holders. That gets back to “Happy Birthday to You.” In most cases, it isn’t worth the expense to to fight against frivolous IP claims; it’s cheaper just to pay. So when Manning-Devlin was in Whole Foods (Of course!) and saw another woman using the copyrighted “craisens tip,” she gets her lawyer to send out a cease and desist letter. This is standard behavior in the corporate world. Apple computer has been doing this with “look and feel” lawsuits for 25 years, despite the fact that Apple also “stole” the same ideas from people before them.

Also really interesting is how parents are supposed to gain access to all these exciting parenting tips. For $24.99 per month, mothers can use up to 20 of Manning-Devlin’s “hottest tips.” This is similar to software and videos, which are never sold but rather licensed. (It makes you wonder: how did she know the Whole Foods woman wasn’t a subscriber?) But even more funny is “Grace’s Public Domain Tricks,” which are, like all of her ideas, things that were already around, but have clearly been around a lot longer. For example, there is the “Easy Couch Fort.” I’m sure these public domain ideas she’s claimed and “given back” are being written off as lost revenue.

The argument in favor of IP laws has always been that it encourages creative work. But it is clear at this point that they do just the opposite. No one, for example, can write a Harry Potter novel without licensing it (which means no one will be allowed to except for JK Rowling). But if that weren’t the case, I’m sure that other people would have written Harry Potter novels that were as good or better than the original ones. I don’t begrudge Rowling her money — in fact, she seems like a thoroughly decent person. But she didn’t write those books because she thought she would become a billionaire. I have little doubt she would have been thrilled with the thought of simply making a living as a writer.

So none of this stuff is about what creative workers do. What’s funny about The Onion video is that the (supposed) creative worker is acting the way that the corporatocracy does. Remember: “An idea is like a seed: it can only turn into a tree if you kill all the birds trying to eat it.”

Afterword

One thing that I really liked in the video was the use of jump cuts which are so vblog. I find it annoying. These people can buy nice cameras, lighting, and editing software. But to shoot with an extra camera or otherwise provide cutaways is asking too much. But note: I’m not against jump cuts. But if someone is going to the trouble of making something look professional, why not do that? It’s all about time, of course. It is easy to automate all the rest. Proper editing takes time. And talent.


See also: Copyright: Forever Less One Day.