Champaign-Urbana apartment market

Breaking news in the latest issue of the real estate trade journal Duh! “Apartment landlords call for lower tax assessments!”

I found this whole article especially hilarious because Jackie and I lived very happily in Country Fair Apartments for more than 20 years before these clowns bought it, renamed it Grammercy, and managed to ruin it in less than a year:

Grammercy said its annual net operating income has dropped from more than $1 million in 2014 to a loss of more than $300,00 in 2018. It said its vacancy rate was 41 percent in 2018.

Source: Apartment landlords call for lower tax assessments amid higher vacancy rates

In what is not at all a coincidence, 2014 is the year we moved out—the last year that the old leases were in effect. I wrote a whole post about the preposterous non-lease that they wanted us to sign: Why we moved.

For those incompetents to be losing hundreds of thousands of dollars a year is richly deserved, although I am sorry if it ends up hitting Champaign and Urbana’s tax base.

Getting better at life under late-stage capitalism

I have always been an optimizer. I spend way, way too much time, energy, and attention optimizing things. Which is, you know, fine, even though my net benefit is small or zero, largely because I don’t focus my optimization efforts in places where I get the biggest payoff. (I’d say that I don’t optimize my optimization efforts, but I don’t want to tempt my brain into trying to do that. It would not end well.)

One place where my optimization efforts did end well has been in optimizing things for life under late-stage capitalism.

I was helped by a couple of lucky coincidences and a bit of lucky timing.

Purely because I enjoyed doing software, I became a software engineer at the dawn of the personal computer era, which gave me a chance to earn a good salary straight out of college, a salary that grew faster than my expenses for most of the next 25 years.

Whether because of my upbringing or my genes (my grandfather was a banker), I liked thinking about and playing with money, which meant that I was doing my best to save and invest during a period when ordinary people could easily earn outsized investment returns.

It worked out very well for me. I’m as well positioned as anyone who isn’t in the 1% to do okay in late-stage capitalism. (Frankly, better positioned than a lot of the 1%, who find it easy to imagine that they deserve the lifestyles of the 0.1%, and if they live like they imagine they should will quickly ruin their lives.)

This whole post was prompted by a great article that looks mainly at the efforts women make to optimize themselves under the overlapping constraints of health, fitness, appearance, and financial success in the modern economy. Highly recommended—insightful and daunting, but also funny:

It’s very easy, under conditions of artificial but continually escalating obligation, to find yourself organizing your life around practices you find ridiculous and possibly indefensible…. But today, in an economy defined by precarity, more of what was merely stupid and adaptive has turned stupid and compulsory.

Athleisure, barre and kale: the tyranny of the ideal woman by Jia Tolentino

One focus of that article is on “fitness.” I put fitness in quotes because of the way, especially for women, so much of fitness is actually about appearance. Perhaps because I’m not a woman—also perhaps because I’m already married, and because I’m older—my own perspective on fitness has gotten very literal: I want my body to be fit for purpose—fit for a set of purposes which I have chosen. I want to be able to do certain things because I have found the capability to be useful. (I also want to be able to do certain things that I can’t do, because I imagine that the capability would be useful, and much of the exercise I do now is intended to achieve those capabilities.)

In a sense, optimizing for fitness is really neither here nor there as far as optimizing for late-stage capitalism, which is mostly about money. And yet, really it is. My fitness suffered during the period I was working a regular job. Getting fit and staying fit takes time. To a modest extent, you can substitute money for time—you can pay up for the fancy gym where the equipment you want to use is more available, or take a job that doesn’t pay as much but allows you to squeeze in a midday run. But now we’re right where we started: optimizing for life in late-stage capitalism.

I should say that I’m delighted with how well my life has turned out. If I’d had any idea how little I could spend and still have everything I really want, or how early I’d have saved up enough money to support that modest lifestyle, perhaps I could have avoided a lot of anxiety and unhappiness along the way. But who among us has such luck? And more to the point, maybe some of that anxiety and unhappiness were crucial to my making the choices I did that got me to where I am.

I worry just a bit about my irresistible impulse to optimize, but like everything else about me, it got me to where I am. And, as I say, I’m delighted to be here.

More secure = more not-useful

With no card number, CVV security code, expiration date or signature on the card, Apple Card is more secure than any other physical credit card.

Source: Apple Card launches today for all US customers – Apple

While @jackieLbrewer was working at the bakery there was a cash register glitch. For several days they took credit card payments on paper, writing the number down by hand, and then entering them manually at the end of the day.

Those customers would have been totally secure from being able to buy bread.

Marketing image courtesy of Apple

Reply to: The processed food tribe

Cathy Reisenwitz is trying to reconcile her belief in the benefits of free enterprise with her growing realization that many industrial-produced edible substances are not healthy food. See: The processed food tribe.

Personally, I do not find those ideas at odds: Corporations operating in a free market will make maximizing their profits their only goal.

Producing food that’s cheap to make and tastes great is the obvious way to maximize profits. Negative health effects that don’t show up for years (and don’t kill the customer for decades) are entirely consistent with the profit-maximizing goal of a corporation.

The health of their customers will only be prioritized to the extent that poisoning their customers isn’t profitable. (Sometimes not even then: See the multiple scandals related to Chinese companies adulterating milk and baby formula with melamine.)

A free society would make a priority of allowing each individual to choose what to eat based on their own values. One would assume that being as healthy as possible would be a priority for most individuals, but there are many stumbling blocks. (One of the biggest is that getting accurate information is hard in a world where corporations fund studies designed to produce and publish inaccurate results about the harms of eating too much sugar. Another is that food scientifically designed to be hyper-palatable is in fact so tasty as to be hard to resist, especially for children—and the tastes one forms in childhood influence one’s tastes as an adult.)

Free markets are the best mechanism we’ve found for optimal allocation of resources. But the market only allocates resources to achieve one set of goals (maximum profits) and ignores other goals. Maximum public health is one of the goals that a free market does not concern itself with.

As to the topic of the term “processed” food, I have found it useful to include a category of “minimally processed” food when thinking about what’s likely to be healthy.

Book Review: Happy Money

Does money come with new-agey energy flows or emotions attached? For most of my life, I’d have said no (or more likely just rolled my eyes at the question). As you might expect from an economics major, I bought into a free-market model of how money worked.

Experiences over the course of my career, gradually convinced me that those ideas were . . . Well, not wrong exactly, but incomplete. I came to understand that money isn’t the kind of neutral object that it is in economic theory.

Ken Honda’s new book will let you skip over the 25 years of first-hand experience it took me to figure this out.

If you think money is a neutral, transactional artifact, then it just makes sense to earn as much as you can in the easiest ways possible. Because I was a software engineer whose career started in the early 1980s, it was pretty easy to find a job that paid well, and salaries grew rapidly, so I was doing just fine as an employee. There are certain things that come along with being an employee, the main one being that you’re supposed to do what your boss tells you to do.

I was okay with that. More okay than a lot of my coworkers, who objected when the boss wanted them to do something stupid or pointless.

My own attitude was always, “Yes, attending this pointless training class is a waste of time that I could be spending making our products better. But it’s easier than doing my regular work, and if my boss is willing to pay me a software engineer’s salary to do something easier than write software, I’m fine with that.”

The idea that I was fine with that turned out to be wrong. In fact, putting time and effort into doing the wrong thing is a soul-destroying activity. Getting paid a bunch of money for it doesn’t help. That money is, in Ken Honda’s terms, Unhappy Money.

Money that flows into (or out of) your life in a positive way is Happy Money—money that you receive (or give) as a gift, money that you earn by doing something useful (or spend to get something that you want or need). Unhappy Money is money lost or gained by theft or deceit, paid grudgingly by someone who feels cheated or taken advantage of—or, as in my own case, paid willingly, but paid to someone who doesn’t think what he’s doing to earn it is worth doing.

Honda’s thesis is that if you adjust your life around this idea—so that your own money flows are all Happy Money (and that you refrain from receiving or spending Unhappy Money)—your life will improve. My experience is that this is true.

If that insight is the key to the book, probably next most important is understanding that “There’s no peace to be found in always wanting more,” which is one of the points I tried to make when I was writing for Wise Bread.

To be honest, probably one reason I like the book so much is that a lot of the practical advice sounds a lot like what I talked about for years at Wise Bread. (For example that the strategy of just saving more quickly reaches limits in terms of its utility for making your family more secure.)

Much of the book is on the details of how to shift all aspects of your financial life toward Happy Money. There’s a long discourse on what he calls your “money blueprint”: The attitudes and practices passed down from parent to child (or rejections of those attitudes and practices), people’s basic personalities, and simple ignorance about how money works. A crappy money blueprint will predictably lead to people into cycles of Unhappy Money flows.

I’ve been interested in money for a long time, at least since sixth grade. Between studying economics in college, and embarking on an enduring interest in investing, I’m sure I’ve read hundreds of books on money. Among them, Happy Money: The Japanese Art of Making Peace with Your Money stands out.