Macro-economics and Melted Butter

I just picked up a bunch of lobsters for tonights dinner. My oldest son leaves for his Junior year at Quinnipiac University in the morning, so we thought we'd all splurge. But are we really splurging?

This past Monday, August 18, Daniel Gross posted a piece on Slate.com titled "The Great Lobster Mystery." (http://www.slate.com/id/2196990/) On a recent Maine vacation, he discovered that the retail price of lobsters has lowered since last year, while almost everything else is more expensive. Why? According to Mr. Gross, a couple of converging forces are at play.

Lobstering is a local business, with product coming from numerous small, independently owned lobster boats. Most lobsters are consumed locally. Lobster retailers, i.e., restaurants and markets, are facing higher cost-of-goods sold for everything not caught/made/raised locally, due to increased energy costs. Most of this increase is passed on to customers. So, what has this to do with lobsters?

Apparently, local lobstermen have few variable operating costs, other than fuel. They use no fertilizer, and their machinery is relatively simple and requires little maintenance. Retailers know this, and are squeezing the lobstermen for better prices to make up for decreasing margin in other areas; and, some of these savings are passed down to consumers.

Since lobstering is not a global market, the lobstermen predominantly depend upon local buyers for their livelihoods. Sure, some lobsters go to commercial processors, and some end up in lobster tanks in restaurants in Ohio and Colorado, but the main share is distributed locally.

At least this is Gross's thesis. He may be correct, but I can't help but assume that there is a strong market for Maine lobsters in Dubai. On the other hand, I don't feel like researching the economic data on the lobster industry, so I'll take his word for it. And I'll enjoy my lobster this evening, even though it doesn't seem like I've paid less than last year.

Don

Lazy August, Phelps-mania

I haven't posted for a few days, yet I've been nagging my friends to check out my blog. Sorry. I've actually been busy with the job search, spending three days each week, more or less, in New York City doing meetings, enjoying my outplacement perks, eating Korean buffet lunches, etc. The rest of the week is spent at the beach here at the Jersey Shore. Poor me.

Here's something - where the hell is Michael Phelps' father? Every night on NBC we see Michael, we see Michael's sister the Middle School Principal, and we see Michael's mother. Where is Phelps the Elder? A quick Google search yielded the following:

• There was a divorce when Michael was seven - or eight - or eleven years old.
• Phelps the Elder is a State Trooper (note for non-US readers: State Troopers are highway, or "motorway," or "autobahn" enforcers). Speed and you're dead. Or out $300.00.
• OK, this is interesting: Phelps the Elder is in Beijing (allegedly), but Phelps Mere (allegedly) has manipulated the media to excude Officer Phelps (the Elder) from the ubiquitous television coverage.

Why is this important? It's not. I was just curious.

DB

Brave New World

Yesterday, my first non-IDC day, I reported to the Manhattan offices of The Ayers Group, my new outplacement service. Never having experienced this before, I admit that I was pleasantly surprised by the expertise, level of services on offer, and physical facilities.

I was given a private office with phone, PC, printer, and a nice view of Lexington Ave. and 42nd St. I was also given access to an efficient and friendly support staff, a small coffee room, and a number of conference rooms. Best of all, just steps from the building entrance is the best Korean deli and buffet...ever.

Later in the day, I met my outplacement consultant to get a rundown on exactly what this service can offer, aside from the aforementioned, ego-gratifying amenities. I was expecting a psychologically-focused, "think positive thoughts" approach. Not the case. My encounter with my consultant was stimulating, pragmatic, and very helpful. My overall impression of him is that of a senior trusted advisor.

Granted, I think IDC purchased the "platinum" package for me. On my way to the coffee room, I did see a gymnasium-sized room with cubes and a high level of noise and no view, obviously for those whose ex-employers opted for a pared down package.

But even for those not given the full-monty, the outplacement experience, if used properly, can be a blessing; a place to go, phones, PCs, and the support of people who know how to get a job. If you're ever offered this service, don't sniff at it, as I was so inclined.

The link for The Ayers Group is http://www.ayers.com/