Blog

Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large.

A free screwdriver

It’s kind of interesting that when I bought a non-stick fry pan on Amazon, it came with a full-size screwdriver to assemble the handle to the pan. It goes to show just how absurd the profit margins are on these products when they can afford to throw in a screwdriver for free. IKEA furniture at least expects you to have some tools at home. Or you can buy the tool set from them.

Avid watchers of Shark Tank understand how much margin are in the products we buy. It’s fine: that’s just how capitalism works. I needed a fry pan for eggs, another person is smart enough commission a factory in China to make them. I can certainly do it myself, but then I’d have thousands of fry pans that I’ve got to sell. I have a need, someone can fulfill that need, therefore that someone can reap the profits. (There’s a joke about hookers in there somewhere.)

The fact the seller can afford throw in a screwdriver for free with every pan shows how cheaply things can be made in my motherland of China. The country truly is the factory of the world. And with that means a whole spectrum of price and quality. I think it’s way past time to associate “Made in China” with horrible quality. Yes, many things coming out of China are crap (looking at you, Temu), but my brothers and sisters over there are equally capable of making world-class products.

Lest we forget, the Apple iPhone has been made in China for the longest time. The ever popular Fujifilm X100VI camera - a precision photographic device - is manufactured there. I wouldn’t hesitate to buy a Hisense branded TV (if LG weren’t so damn fantastic with OLED).

The equation is simple: same (high) quality, lower labor cost. What corporation beholden to shareholders wouldn’t shift manufacturing to China - or any other country offering the same incentives. Made in U.S.A might only mean you’re overpaying for an American worker’s wage.

The price of protein

I shop at Whole Foods because I’m buying produce for just myself. So what if the stuff there is more expensive than less prestigious(?) grocery chains? I alone can’t possible eat enough food for the extra cost at Whole Food to add up significantly. Besides, as an Amazon Prime member with an Amazon Prime Chase Visa card, I get 5 percent cash back. (Spend money to make money, am I right?)

If I were grocery shopping for a family, that changes everything. No more organic eggs from free-range chickens. No more organic milk from grass-fed cows. Paying for pre-cut fruits would be an insult to the ancestors. Food for the family will be purchased as cheaply per weight as possible.

I recently noticed how vastly more expensive beef and fish is compared to chicken and pork. Pork chops are something like three times less expensive per pound compared to the cheapest cut of steaks. As a frequent lifter of weights, I need to eat a lot of protein. Because I only shop for me - and lucky enough to make decent money - I have no qualms springing for the more pricey steaks and salmon. If this were me 10 years ago (read: much poorer), it would be chicken and pig meats only. Cows are a delicacy.

Same is true if I had a family to feed: fish and cows are very occasional treats only!

While I do lament not starting weightlifting in my twenties, at least in my thirties I don’t have to resort to chicken and rice for my staple nutrition. A gram of protein is a gram of protein for sure, but I much rather eat salmon sashimi than pan-fried chicken thighs (bone out, of course).

This might be it

I think if something unfortunate were to happen to my BMW M2, I would probably replace it with something tame and economical. (The refreshed Tesla Model 3, rear-wheel drive with the long range battery is looking good.) The new enthusiast car market has gotten so expensive that the logical brain side of me doesn’t want to pay for something that largely sits (I don’t have a commute). The new Porsche 911 GT3 starts at $200,000 now - $40,000 more than the previous model - which is absolutely insane. Makes me feel slightly better about paying $126,000 for a 2015 model back in 2019.

Even the cheap end of the continuum is in the mid $30,000s (Toyota GR86, or the venerable Mazda Miata). While that is somewhat affordable for me, what isn’t affordable is the insurance costs for enthusiasts cars. I would know: it’s quite expensive to insure the BMW fully. Again, logical brain is working overtime to convince me that maybe this whole love of cars is getting defeated by monetary mathematics.

But we’re suppose to spend a high proportion of our money on hobbies, right? I can’t be looking at my vehicle situation from the lens of a regular person. In their case, yes, they should limit the spend on what is the second biggest money purchase (first would be the house, if anybody can afford one around here). It makes zero sense to drop extravagantly on a depreciating asset. To do it financially responsibly, people should buy a brand new Toyota Corolla and drive it as long as possible.

Because I like cars, and have liked them since I was a kid, I get to spend more of my adult money on them. But these days the adult brain is cautioning loudly against the inflated costs of vehicle ownership. I actually paid off the M2 earlier this year. I certainly feel more carefree with that monthly car payment now extra cushion in my savings account. It’s a very good feeling. The 10 years ago me would have already used that freed up money to buy another car.

Either I have tremendous self discipline, or it is indeed true that there are seasons to life. Perhaps I’ve outgrown my car enthusiasm…

With what money?

I go the mall sometimes during the weekday lunch hours, and I would see the local high school kids buying lunch at the food court. How on earth do they have the money for it? The allowances they get from parents must be hefty. I make above the American median household income, and I only feel comfortable enough to get Chipotle once in a while. Kids, with no income - how are they doing it?

Especially these days when $10 can’t even buy you a meal at McDonalds. At least back when I was in high school, there was the dollar menu. That’s a lot of McChicken for the $20 my father would give me once in a while. A dollar now can literally buy nothing at the Golden Arches. I understand inflation, but people aren’t making that much more money? A suitable food allowance for a higher schooler of today must be in the hundreds per month.

I guess there’s a lot of rich parents out there in San Francisco.

No wonder it’s said that child rearing is so expensive. With the recent inflation it’s got to be more than the quarter million to raise a child from baby to 18 years of age.

My parents most certainly did not spend a quarter million dollars to raise me. They didn’t have to money to. Not even close. I think it’s people’s expectations of what entails child-rearing that drives up the costs. Childcare, birthday parties, toys, trips to Disneyland (allowance when they reach teenage years); a lot of it is more wants than needs.

I read an article about parents getting into debt to bring their kids to Disneyland. News flash: if you cannot cash flow a Disneyland trip, you cannot afford it. There’s no rule that a child must experience Disneyland. For sure they will be sad when they hear from their school friends who went, but I didn’t have Nike shoes growing up, and I turned out just fine (allegedly). No emotional damage at all.

Unforgiven

As a person employed by a university, I am perhaps not the most unbiased opinion in this whole student loans forgiveness issue. My job depends on the college system continuing on to be a revolving door of incoming students turning into graduates. Should the value of a college degree crater into oblivion, well, I better go find something else to do.

The students are the paying customer, that is of no doubt. And in grand American tradition, they pay in credit. How else can anyone afford to attend college when room and board for a year is the equivalent of a used car. I managed to avoid student loans because one, my family was poor enough to get me all sorts of State and Federal grants, and two, I lived at home.

I’d have signed loan papers too had I needed to pay $900 per month just to share a tiny dorm room with a complete stranger. Probably a guy named Mike from Souther California.

Students graduate with a tremendous amount of debt weighing down their financial future. Unlike other debts, students loans do not get wiped off in a bankruptcy. I wonder what were they trying to prevent when that was implemented. Seems to me they don’t want people to declare bankruptcy upon graduation to shed the school debt. The graduates can take the credit hit because they’re just starting their adult career anyways.

Piggybacking off that, I think student loan forgiveness will create negative incentive for universities. There would be no motivation to control costs (like building a lot more student housing) if there are no consequences for the students down the road. Don’t worry about the tuition increase! Borrow all you want from the government! Uncle Sam will wipe it away eventually!

We need to look at the whole thing holistically: how to lower the total cost of college, so that whatever students has to borrow can be repaid timely and responsibly. Numbers getting too large (and inescapable) is how we got into our current mess.

Waning enthusiasm

I guess gas prices (in the San Francisco Bay Area) is just going to stay in the five dollars per gallon threshold? We’re never going to see the number 3 again in front of the decimal point are we? Unless of course we move to other parts of the country where not only do they have cheaper gas than California, but they also have higher octane! (93 versus 91.) If I’m getting reamed in the butt on petrol price, at least give me the best gasoline possible.

It’s a good thing then that I’ve only driven 4,000 miles since the previous September. Paying over $70 to fill up the BMW M2 is so not the business. As much as I like driving, the cost of gas adds up very quickly. At least that is something I can control. The higher insurance premiums that we all received in our last renewals? Nothing I can do about that.

Perhaps my car enthusiasm is waning? I don’t know. I took the M2 in to the dealership for service last week, and I keep thinking what a hassle it is. Even though I’m not removing a single bolt myself, it’s still time out of my day to drive it to the dealership (on the other side of the city). Imagine if I didn’t own a car at all - how much simpler it would be. No gas price shocks, no insurance premiums, no maintenance costs, no worries about parking it somewhere and risking some asshole damaging the car.

Of course, it’s not tenable to not have a car. I rely too much on Costco trips to fight the ongoing inflation. But I’m thinking maybe I don’t need to own a high-strung sports car. It would be cheaper and less stressful to instead own a car an old man would drive. Something boring, something dead nuts reliable. That can only mean one thing: a Toyota.

Change is the only constant, right? I’ve like cars since I was a kid. Who knows, maybe that enthusiasm does come to an end.

For a rainy day

In a pleasant surprise, my health insurance premiums - subsidized by my employer - will not be going up in 2025! I was fully expecting it to, because one, inflation is causing everything to be more expensive these days. And two, Kaiser Permanente had to pay its workers more after their strike last year. Did you think a corporation is going to eat into its profit margins? You’re hilarious.

Just as well, then. Whatever difference I thought I’d had to pay more in the coming year will go right into the savings account.

Towards what end? I’m not sure. I am seeing a lot of people my age (mid 30s) having babies these days. Personally, I have no interest (or prospects) to be doing so myself. Not that I don’t think I wouldn’t be great at parenting. If anything, I am leaving positives on the proverbial table. Word on the street is that people who have kids tend to happier and live longer. As a person who is deathly afraid of dying, and has always strived to maximized longevity, why haven’t I made any babies already?

One things for sure: it is not too expensive to raise children. Our expectations toward what goes into child rearing have simply inflated. Baby showers, birthdays, the best diapers, humidifiers, bottle warmers, etc: I was raised with none of that stuff! My working-class parents could not afford it. And I turned out okay, if I do say so myself. Daycare? In Chinese culture, that would be the grandparents. No need to spend thousand(s) dollar per month.

Social media can make it difficult, I reckon. It’s like an arms race to show who can provide the “best” childhood for their kids. Don’t complain to us about how expensive it to raise kids when you go into debt for Disneyland. Public parks are free.