Once, a driver’s tirade against me included the rant, “I pay road taxes!”
As calmly as I could, I responded, “Well, I do too.” I then pointed out that the only tax he pays, and I don’t, is on gasoline.
Had I been a different sort of person, this might’ve been my response:
One of the local dealers I patronized (until it wasn’t so local for me anymore) said he couldn’t blame people for buying parts from Performance or Bike Nashbar. “Their prices are better than what I can get from my distributor,” he lamented.
Performance and Nashbar are in the tire tracks of history. Now,’it seems, two more recent giants the online bike business may join them.
In 2016, Chain Reaction Cycles, based in Belfast, Northern Ireland and Wiggle, in Portsmouth in England’s south coast, merged. At the time, to join two companies that were already offering good deals on in-demand bikes, parts and related items into one that would have even greater buying power and would therefore offer even better deals to customers.
But another event that same year would contribute to the company’s current situation: the vote to secede from the European Union, a.k.a. Brexit. (Scotland voted to stay.) The “divorce” was finalized, if you will, at 23:00 GMT on 31 January 2020.
One effect has been higher tariffs, not only on imports to, but also exports from, the UK. The latter included, in the years before the “breakup,” many orders from outside the country. They included customers from EU countries—and, on a few occasions, yours truly. American customers didn’t have to pay the Value Added Tax. So, when the exchange rate was favorable to the dollar, I purchases not only Brooks saddles, but also French Mavic rims and Velox rim taped, Swiss DT spokes, German Continental tires and even Japanese Shimano cassettes for considerably less than I could have bought them Stateside.
The UK-EU split came early in the COVID pandemic. So, some of the losses Wiggle-CRC incurred from prices increasing for European customers were offset by the COVID bike boom. That “boom,” however, seems to be going bust. At least, people aren’t buying as many bikes and parts as they were three years ago.
According to industry insiders, Wiggle/CRC’s parents company, Sigma Sports United is “re-structuring” —which includes, among other things, ending its relationships with “underperforming assets” like Wiggle/CRC—and therefore de-listing from the New York Stock Exchange. Those same insiders are saying that Wiggle-CRC has stopped paying its suppliers and intends to file for insolvency.
From what I’ve been reading and hearing, they’re not the only ones who have “buyer’s remorse” over Brexit.
Earl Blumenauer has done, possibly, more than any other politician to encourage cycling in the United States. Representing a district around Portland, Oregon (where else?) since 1996, he is responsible for, among other things, the bike lane on Pennsylvania Avenue—the location of the White House.
His wins include gaining tax benefits for bicycles commuters. On the other hand, a bill that would have provided subsidies for eBikes was yanked from the Inflation Reduction Act at the last minute.
In his interview with David Zipper, Blumenauer revealed that the loss (which he regards as temporary)of the eBike subsidies was a result of lobbyists.
What we in the cycling community often forget is that the largest companies in the bicycle industry are minnows next to the whales and sharks of other industries. Some of those corporations, particularly in the energy, automotive and tech industries, provide financial and other support to alternative-energy sources and electric cars. Of course those corporations are acting in self-interest or, more precisely, their stockholders’ demands.
Perhaps they see the current boom in bikes and eBikes in the same way as the ‘70’s Bike Boom. But, as Blumenauer points out that “Boom” was really just a fad that petered out in part because no meaningful policies came from it.
Perhaps one day soon investors in alternative energy and electric cars will see that those enterprises are related to bicycles and eBikes—and Representative Blumenauer will once again be vindicated.
I, personally and cyclists, collectively have been accused of "taking too much space" on the road--by drivers of SUVs and gaudily painted pickup trucks that have never been besmudged by a tool box in the cargo area or a dirty hand on its steering wheel.
So I wouldn't have been surprised, though I would have been no less upset than Scottish cyclist Alan Gordon was to find this:
Lovely evening in Colinton at the volunteer start up session for the new SW tool library and a wee blether in the Spylaw afterwards. pic.twitter.com/ZxMhtLeP6T
— Alan Gordon (@agordonsalive) May 22, 2023
He locked his bike to a curbside railing in Colinton, an Edinburgh suburb, to attend a volunteer start-up session for the area's new free tool library. I would assume that the library would benefit residents of the complex as well as people in the surrounding community.
Anyway, in the Twitter thread that followed, someone showed a motorcycle and a two garbage bin in another parking spot, taking up more space than two bikes like Alan's would have. No one left a "polite notice" about them.
(As someone else noted, starting the note with "Polite Notice" was a tip-off that what followed would be the exact opposite, just as people who say "I'm not a racist" usually follow it with some stereotype or another. Or the person who, a couple of days ago said, "I'm not a transphobe, but..." to me.)
Oh, and someone made a comment about paying road tax. I don't know about the laws over there, but I've gotten into that exact argument with drivers here. And I have very politely pointed out that I do, in fact, pay road tax. The only tax I don't pay that motorists have to pay is for gasoline.
This may seem strange (of course it won't when I explain it), but recounting Alan's tale reminded me of another part of the conversation I had with the "I'm not a transphobe" dude and other people with similar mindsets. Any time a law is passed to give Blacks, immigrants, women, LBGBTQ+ people or anyone else who is in a "minority" the same rights as white, cisgender, heterosexual Christian men, such people whine that things have "gone too far" or that we're getting "special privileges." Complaints like the one Alan received in the "Polite Notice" have the same feel to them.
As I have pointed out to such folks--including a few relatives of mine--if you have always enjoyed a right or a privilege, you don't notice it until someone else gets it--or you lose it. The latter has happened to me in my affirmation of my female self: I lost some of the assumption of competence, innocence and other things I once could take for granted. Likewise, most drivers, especially if they're not regular cyclists, would never know how much of the landscape and economy are shaped by their driving--which, I grant, is a need for some. Contrary to what some think, though, I am not trying to take anything away from them--or cisgender people. I only want the same rights and protections they take for granted.
When I go for a ride, people--usually non-cyclists--implore me to "be careful." Sometimes I think they've been inculcated, if unwittingly, with the notion that the car reigns supreme and if a driver harms a cyclist, the cyclist was careless.
That said, there are indeed dangers in cycling, as there are in almost any other activity. But there is one that almost no one ever thinks of.
An Italian fellow was riding his bike away from house on the Costa del Sol, the Spanish region that's become Europe's Florida: a warm-weather magnet for vacationers and pensioners.
But he didn't retire from the Carbineri. In fact, the Carbineri and their counterparts in a few other countries were looking for him.
Turns out, he was part of the Calabrian 'Ndrangheta mafia gang and had been on the run from his country's authorities for seven years. In addition to committing the common grifter offenses of money laundering, forging documents and tax evasion, according to said authorities, he was a point man for shipping cocaine from Colombia to Europe.
Someone should have told him to "be careful" when he went out for his ride.
On Sunday, the US Senate passed the Inflation Reduction Act. Perhaps not surprisingly, the vote split along party lines, with the 50 Democrats voting for it and 50 Republicans rejecting it. Vice President Kamala Harris, a Democrat, broke the tie.
As I understand it, the Inflation Reduction Act is a shrink-wrapped, rebranded version of what Biden and other Democrats actually wanted. The fact that some things that were included in the Build Back Better Act, which passed in the House of Representatives, were omitted from the IRA is no more an oversight than calling it the "Inflation Reduction Act" was not an attempt to make the energy- and environmentally-related aspects of it more palatable to the Senate's two most right-leaning Democrats, Kirsten Sinema and Joe Manchin.
One key omission were tax breaks and other subsidies for bicycles and other two-wheeled vehicles that are powered wholly or in part by human energy. The original Build Back Better proposal included a $900 tax credit for the purchase of an electric bicycle and a pre-tax benefit to help commuters with the costs of bicycling to work.
That tax credit was available to cyclists before 2017, when Republicans repealed it as part of the Tax Cuts and Jobs Act. The Build Back Better Act would have essentially restored it but I think Chuck Schumer, the Democratic leader of the Senate, who worked with Manchin on the IRA, realized that he had to take out some of its "greener" parts to get Manchin and Sinema to agree to it.
I say that it's unfortunate, not only because I am a cyclist. As Harvard Kennedy Center visiting fellow David Zipper told Alex Dougherty of POLITICO, "We need not just to shift people from gasoline to electric cars. We need people to shift from cars, period." But, as he points out, there's nothing in IRA that "makes that process easier or faster or more likely to happen."
Any piece of legislation that ostensibly has anything to do with the environment or energy but omits bicycles is a bit like a bouillabaisse without fish or a caponata without eggplant.
Yesterday, my brother told me he'd spent over $100 to fill his gas tank.
On one hand, I sympathise with him. For one thing, he is my brother. (This is what age does: I didn't say, "in spite of the fact that he's my brother." LOL) For another, he lives in an area that's more car-centric than my hometown of New York. Even if that weren't the case, he'd rely on his car because medical conditions constrain his physical activity, at least somewhat.
On the other hand, I remind myself that petrol prices are only now surpassing levels I saw when I first set foot (actually, bike tires) in Europe, back in 1980. I could get into a rant about how playing nice with Saudi Arabia and giving tax breaks to oil companies wouldn't have continued to keep down the price at the pump forever, but it would be just that--a rant. Others with far more expertise in national and global politics and energy markets can explain it better, or at least in more depth, than I ever could, even if I were to hijack the focus of this blog (really, it exists).
But what my brother told me is nonetheless relevant and can perhaps be best illustrated by something I've just come across. In Electrek, Micah Toll points out that at the current average cost of gasoline in the US--around 5 dollars a gallon (around a euro a liter)--it would take only five fills of an F-150 truck's tank to buy an entry-level electric bike. Or, it would take someone fueling an evil SUV six times, while a sober, sedate sedan would need to be topped off seven to eight times to buy a basic e-bike like Ancheers being sold on Amazon--and driven by many delivery workers here in New York.
Photo from Electrek
The old adage "your mileage may vary" applies in more ways than one. If you live here in New York or in California, where gasoline averages more than $6 a gallon, it would take even fewer fills to equal the cost of an ebike.
Of course, a regular bicycle, especially a used one, can be had for less, even as we enter a third year of COVID pandemic-induced shortages. I don't know whether the gas-bike equation I've described will persuade many people would persuade to give up driving, even for short local trips. But it's certainly food, or fuel, for thought. So is this: Once gas is burned, it's gone. A bike, however, can last for years, or even decades.
As the majority of Americans support equality for LGBTQ people, women, members of racial and ethnic "minorities," the disabled and others who have been marginalized, those on the other side--who see rights they've always enjoyed as "special privileges" when extended to members of the groups of people I've mentioned--become more virulent, vicious and even violent in expressing anger at having to share their privilege.
Among the empowered are motorists who think the roads are theirs, and theirs alone. They accuse us--cyclists, pedestrians and users of mass transportation--as being subsidized by tax dollars (which, too often, the privileged don't even pay). Some among them think they have a "right" to express their umbrage in whatever way they choose--even if it endangers or kills the objects of their rage.
While I still interact, thankfully, with many courteous drivers--especially those who drive trucks--I have also had more charged interactions with aggressive drivers than I can recall in some time. On the return leg of a ride to Connecticut, just as I was crossing the state line at Glenville and King Streets, some guy who looked like his wife hadn't given him any since Obama's first term pulled up alongside me, in his pickup truck, just so he could shout "Fuck you!"
While the temperature has risen, so to speak, since Trump first ran for President, I can't put all of the blame on him (as tempting as that may be). Rather, I've noticed that some celebrities--mostly male, all of them privileged by their wealth and fame-- expressing veiled and not-so-veiled hostility toward those who aren't "the cool kids" in their eyes. A while back, Whoopi Goldberg whined, on The View, about the chauffered drive to her gated community being slowed down by, oh, 7 seconds or so, by a cyclist. Now it seems that "comedian" Paul Costabile, who seems to sneer with the smugness of a bully who knows that nobody will fight him, took a video of himself taunting a cyclist who was riding as far to the right as he could.
The worst part, though, is that Costabile is taking the video while driving. Now, unless he's employing some trick of which I'm not aware, he's leaning as he's driving with one hand. So, he's endangering the cyclist even more than he would have had he simply shouted slurs and curses out his window.
In the meantime, Costablile whined about having to watch that rider "work his glutes." Sounds to me like he's insecure: He looks like he can use some time with his feet on two pedals rather one foot on one pedal.
That, of course, is what causes the privileged to pick on those who've just won the same rights they've always enjoyed: It's scary for those who've enjoyed power and privilege to realize that other people could actually challenge their place in the social, political and economic heirarchy. We, as cyclists, do that by our presence: It shows motorists that the roads don't "belong" only to them.
Note: The video in this post was deleted from Instagram. However, I was able to post it thanks to a screengrab by @_deeno.
I waited nearly a year for Dee-Lilah, my custom Mercian Vincitore Special. At least I expected as much: When I ordered her, the folks at Mercian were advising customers to anticipate such a lag between the time they placed their deposits and received their frames or bike.
If I recall correctly, I waited about the same amount of time for my first Arielle, my dear, departed first Mercian. For ten or twelve months to pass from the time someone puts down a deposit and takes delivery of has never been unusual when ordering a bespoke frame or builder. But, until the pandemic, the longest I can recall myself or anyone waiting for an off-the-shelf bike was three months, in the heyday of the 1970s North American Bike Boom. That's how long it took for me to get my Schwinn Continental in 1972. To be fair, though, I wanted a color that, I'd heard, Schwinn was offering in limited numbers.
But I don't recall a situation like the one that's developed during the COVID-19 pandemic: People have had to wait a year for a bike. And I'm not talking about a Mercian or a custom frame from someone like Richard Sachs. Rather, folks are standing in line for Murrays and Huffys from big-box stores. That has to do with the supply-chain disruptions you've heard about: Factories closed during lockdowns and ship and dock workers, and truck drivers, either couldn't go to work or quit their jobs.
So it's particularly galling to see this:
To be fair, many other companies have similar policies. They also, like Target, try not to sell merchandise at significant discounts: If Target sells Schwinn or H&M sells a sweater, for example, at 50 percent off, the regular price seems much higher. As for donations, some companies cite the tax and other legal implications of this practice. Call me a cynic, but while I am willing to grant that companies find that it's too difficult or costly to give their stuff to Goodwill or a community bike center, I can't help but to think that tossing brand-new stuff comes down to the only two words I remember from the only economics class I took: supply and demand. Retailers want to keep the former low and the latter high to prop up prices.
I wonder whether the dumpster-diving mom who took the video had been waiting for one of those bikes for herself or her kids.
A few years ago, I taught a "capstone" course, required of graduating students, about the Bronx. It seemed to make sense, as the college is located in the borough--in the heart of the poorest U.S. Congressional District, in the South Bronx--and most students live there. As much as I tried to make it interesting and relevant, students were less than unenthusiastic: They saw the course as one more thing standing between them and graduation.
If they've forgotten me, the projects they did (or didn't do), the class itself and the college, I hope they remember one lesson that, I believe, the course reinforced: Everything they lived with, good and bad, in the Bronx was the result of decisions made by human beings. Sometimes their motives were nefarious, but at other times they were simply misguided.
Fahrad Manjoo makes that point today in a New York Times editorial, "Bike Riding In America Should Not Be This Dangerous." In his essay, he briefly recounts how urban and transportation has prioritized the "speedy movement of vehicles over the safety of everyone else on our streets. He doesn't get much into specifics--whole books have been written about that--but that governing principle took hold well before the high priest of auto-centricity, Robert Moses, started his work.
Manjoo's editorial was motivated by the death of 13-year-old Andre Retana at a Mountain View, California intersection that is an "asphalt-and-concrete love letter to cars." On two corners stand gas stations; America's Tire occupies a third and the fourth is taken up with a BMW dealership. "To keep traffic humming along," he writes, "motorists on all of its corners are allowed to turn right on red lights."
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| The intersectio of El Camino Real and Grant Road, Montain View, CA. The "ghost" bike commemorates Andre Retana, who died here. Photo by Mark Da |
As I have pointed out in other posts, such an arrangement endangers cyclists--when they follow the traffic signals as motorists are required to do. A cyclist at the corner of an intersection is vulnerable to a right-turning vehicle, especially a truck--or an SUV (which I call "trucks for people who don't know how to drive them")--makes a turn.
To be fair, most truck drivers, especially the long-distance variety, courteous and conscientious. On the other hand, their vehicles are particurly hazardous for two reasons. One is that because their vehicles are so large, they sometimes veer into pedestrian and cyclists' paths, or even onto sidewalks, especially on narrow streets in dense urban areas. The other is sight lines, or lack thereof: Drivers sit so far away from everything else on the street that they simply can't see someone crossing a street.
Those factors, and the right to turn right on red, contributed to Andre Retana's death. The truck driver came to a complete stop at the instruction. Andre pulled up alongside him. In an unfortunate twist, he fell off his bike in the crosswalk near the front of the truck--at the very moment the driver, who didn't see him, decided it was safe turn.
The driver didn't realize he'd struck the boy until bystanders flagged him down. Andre suffered severe injuries and died a short time later in the hospital.
Manjoo points out that the intersection, not surprisingly, doesn't have a "box" or safe area where cyclists and pedestrians can wait, and neither of the streets leading to it--El Camino Real and Grant Road--has a protected bike lanes. But, as much as I respect him for pointing out the dangers-by-design, he seems to share the same misguided thinking behind too many schemes to make cycling safer: That more bike lanes and other "infrastructure" will do the job and that planning future roads with built-in bike lanes will help.
As I've pointed out in other posts, too many bike lanes are poorly conceived, planned and constructed: They go from nowhere to nowhere and actually put cyclists in more danger. Staggered signals, which Manjoo also recommends, could also help. Moreover, he says that while transitioning from gasoline- to renewable energy-powered vehicles will help for health and environmental reasons, we really need to find ways to get people out of SUVs and into smaller cars. And, while he doesn't say as much, it could also help to re-design trucks with better sight lines.
But, as I've pointed out in other posts, other changes, like legalizing some form of the "Idaho Stop," are also needed. Most of all, though, I believe--as Manjoo seems to--that the way transportation is conceived has to change. Not only are new street and vehicle designs and regulations needed, things like the tax structure, have to change. Most people don't realize just how much driving is subsidized--yes, in the US to the point that the worst car choices and driving habits are rewarded.
None of the needed changes will bring back Andre Retana. But they might prevent future tragedies like his--and make cities and societies more livable. Such changes can only come about by choice--just as all of the mistakes that led to a 13-year-old boy's death were.
You've heard the expression that something is "like herding cats."
Well, have you ever tried to teach a cat to ride a bike?
You'd think that with all of my experience as a cyclist, teacher and professor, I could teach anyone anything when it comes to cycling. Well, some things tax even my wealth of experience!
I'm going to try visualization. Maybe if she sees enough images like this one, she'll accompany me on a ride:
There's still time!
When I ended up back on Boston Post Road in Mamaroneck, I stopped to eat the bagel and small wedge of cheese I packed in the bag of Zebbie, my Mercian King of Mercia with the striped seat tube.
Honestly, I rode her for one reason: She looks autumnal. So did the scene at Mamaroneck harbor, at least somewhat.
If you look closely or enlarge the image, you can see budding Fall foliage on the right. Actually, it looks (to me, anyway) like someone lightly brushed red and orange across a cluster of leaves.
Mind you, that was when few bikes had four-figure price tags, let alone the five-figure tags attached to some of today’s machines.
I would try to explain that small local shops didn’t make much profit—and, as often as not, none at all on bikes themselves, especially high-end bikes. For one thing, it’s expensive to run a shop: To do it, you need a lot of space, which is pricey in any good location for a shop. Then, a shop needs fixtures specifically for displaying and working on bikes, as well as tools and machines. And a shop owner has to pay to keep the lights on—and keep the tax authorities happy.*
On top of all of that, the shop has to have inventory, as some shop owners learned the hard way during the pandemic. In pre-pandemic times, some bikes could sit in display racks for months, or even years. That wasn’t as much of a problem back when, say, one year’s Peugeot or Raleigh wasn’t so different from the previous or following year’s models, and component manufacturers stuck with the same designs for decades. But the bicycle industry now follows the planned-obsolescence business model that prevails in other industries, like the automotive. That means a bike that doesn’t sell at full retail price by the end of the season has to be significantly marked down if it is to sell at all. Because of the planned-obsolescence model, some manufacturers don’t allow retailers to return bikes, and penalize dealers for not meeting sales quotas.
The business model I’ve described gives bike companies a lot of power over shops, especially small ones. Among other things, it gives companies like Specialized and Giant the ability to mandate the amount of merchandise shops must purchase, and at what price. It also gives those companies the ability to control retail prices. That is why you won’t find much price variation from shop to shop among models from the major brands—except, perhaps, during end-of-season sales, which usually involve the extreme sizes and colors that weren’t popular.
What all of this means is that when dealers have to pay high prices and are told they can sell at a price that yields a relatively small margin—from which they have to pay the costs of running a shop—they have to keep those costs down wherever they can. As often as not, that means low wages for shop employees.
In times past, shops made most of their money from repairs or accessories, helmets, clothing, shoes and gloves and, to a lesser degree, from parts. Now, though, most of those items are available at significantly lower prices from online retailers. One shop owner lamented that people came to his shop to try on shoes and helmets they later bought online.
According to Ray Keener, who’s been in the bike industry for about as long as I’ve been alive, one bike manufacturer had much to do with making the current situation.
To people under 40, Schwinn is just another bike brand sold in Target and Wal-Mart. But, for three decades or so after World War II, it was the only American bike marque with even a pretense of quality. This gave it the power—upheld in several court cases—to control, not only prices, but what shops could and couldn’t sell. This, he argues, also effectively gave Schwinn the ability to depress bike shop wages.
And that is why the Bicycle Industry Employers Association’s guarantee of a $32K annual income to mechanics who complete their training can be touted as progress, even if it’s not a living wage in most American cities!
*—Sometimes, there are also “unofficial” taxes—like the one by a waste-hauler who told the owner of a shop I patronized, “You will use our services.”
If you've been reading this blog for a while, you know that I'm critical, sometimes even cynical, about bicycle-related laws--especially when they are presented as being in the interest of "safety."
So when I heard that a new law is to take effect 1 July in Virginia, I thought, "What now?"
According to the new law in Old Dominion, drivers are required to change lanes when passing cyclists unless the lane is "very wide." It also stipulates that two cyclists are allowed to ride abreast of each other if a single is approaching. These rules apply only to regular streets and roads; when cyclists are in a designated bike lane, neither they nor drivers will need to do anything different from what they do now.
It will be interesting to see the effects of this new law. I think requiring cars to move over makes sense, but I wonder about cyclists riding next to each other with trucks passing at 50 or more MPH. If cycling in Virginia (which I haven't done) is anything like cycling in Florida (of which I've done a fair amount), the scenario I described wouldn't be uncommon, especially in rural and other remote areas, where the only road might be a county or state road.
What those commenters don't seem to realize is that today, a greater number of cyclists than ever are pedaling for transportation, and not solely for recreation. The new law--at least part of it--seems to show some cognizance of that fact.
Today is May Day.
This day was, and continues to be, a celebration of Spring, especially in northern European cultures. Some believe it's rooted in a Roman festival for Flora, the goddess of flowers.
To this day, throughout Italy, Calendimaggio is celebrated with performances, rituals and gifts that are believed to have their roots in Roman celebratory customs. And, in France, individuals and workers' are allowed to sell lily of the valley flowers--which Charles IX received as a lucky charm and he, in turn, offered every year to the ladies of the court--tax-free. Perhaps the most elaborate celebrations of this day are found in England and Scotland, where children still perform Maypole dances, a "May Queen" is crowned and traditional poems are recited and songs sung.
In 1889, this day became International Workers' Day, celebrated in some countries as Labor Day. This date was chosen for its proximity to the anniversary of the Haymarket Massacre, in which a Chicago labor protest rally turned into a riot. The protestors were calling for, among other things, an eight-hour workday.
The protestors, and those on whose behalf they were protesting, were mainly blue-collar workers: factory laborers, longshoremen, construction workers and the like. Many of those workers--and demonstrators--were immigrants.
Most of those jobs have since disappeared. And the, ahem, complexions of the immigrants have changed*. So the sorts of people who would have been working in the factories and on the docks are now making deliveries, whether of building materials on Amazon vans, dinner via electric bikes or documents from a Wall Street brokerage to a midtown legal firm via bicycle. Dmitry Bondrenko seemed to understand as much when he created this poster:
The "alley cat" race announced in the poster was a benefit for Emily Glos, a Toronto bike messenger who was struck by a car. She survived, but a broken wrist and elbow kept her off her bike, and from making a living, for two months.
*-I recently learned that when Franklin D. Roosevelt signed the first minimum-wage legislation into law, he got Southern Democrats--at that time, the largest bloc in the party--to agree to it by excluding farm and domestic workers--who, in the South, were mainly black. Also, that exclusion garnered support from the large corporate growers in places like California's Central Valley, where most workers were Mexican migrants.
I also learned, not too long ago, that the roots of South Africa's Aprartheid laws were sown by the gold and mining industries, and were designed, in part, that workers in those industries--most of whom were Black--would be virtual slaves.
When I was an undergraduate, I knew a few business majors. Some started off that way; others swtiched from fields ranging from biology to fine art because, well, they saw the starting salaries for folks with business degrees. One thing I couldn't help but to notice was that the "B" majors--at least the ones I knew--hated Economics, which was a required course.
I could understand: As bad as I was at math, I was worse at economics. Math by its nature is abstract, which is part of the reason I wished I could understand it better. On the other hand, it seemed that economics was abstract because, well, it could be, if that was how economists wanted it. Perhaps the business majors felt the same way.
After seeing those fellow students, it really came as no surprise, some years later, when some pundit--I forget whom--declared, "Most business people don't know a damned thing about economics, and most economists don't have a clue about business." The first part of that statement, I think, could apply to six of the seven US Presidents who were businessmen before they ran for office. (The exception, Harry Truman, failed at business but is generally regarded as a successful President, his decision to drop atom bombs on Japan notwithstanding.) They showed the world that the United States (or any other nation, for that matter) can't be run as a business in part because it's an economy.
One of those Presidents is, of course, Donald Trump. His tax cuts benefited people who didn't need them, and some would argue that they would have led to economic woes even if COVID-19 hadn't brought so much enterprise to a standstill.
Another of Trump's economic policies that probably exacerbated the problems wrought by the pandemic were the tariffs he imposed. He, like Herbert Hoover (one of the other businessmen who occupied the White House) passed them in the belief that making foreign goods more expensive would lead to more production in the US and "bring back American jobs." That didn't happen in either case. Nearly every economist and historian now says that the import taxes passed under Hoover’s watch (known as the Smoot-Harley Tariffs) helped to tip the stock market crash of 1929 into a full-blown depression just as, I believe, Trump's tariffs will be see as an accelerant of the current economic crisis.
What Trump didn't seem to understand is that no matter what economic theories you follow, simply making steel from China or India more expensive isn't going to cause new mills to appear, or for shuttered plants to re-open or abandoned or demolished factories to be re-built in Pittsburgh or Youngstown or Gary or Lackawana--or anywhere else in this country. Or, to put it in more technical terms, cutting off foreign supply does not lead to an increase in domestic capacity.
| Photo by An Rong Xu, for the New York Times |
I mention all of this because two leaders of the bike industry are showing that they are as ignorant of economics as Trump or Hoover. At the Taipei Cycle Online Expo, Bob Margevicius said, "There's a gold mine today in the bike industry, but you have to invest." Component makers, according to Specialized Bicycles' Executive Vice-President, are "very reluctant to invest in additional capacity."
His belief was echoed by Ton Anbeek, the CEO of Accell Group, which owns, among other brands, Batavus, Koga, Lapierre and Raleigh. Like Margevicius, he blamed the current shortage of bikes, parts and accessories on manufacturers' unwillingness to make more of them. "To meet the growing demand in the coming years, we need component suppliers to invest in extra capacity to produce more critical components and parts," he urged.
While both of them are right, at least in one sense--that more products won't be available if more of them aren't made--they are missing a point: Simply investing money isn't going to lead to more manufacturing capacity overnight, especially if new facilities need to be built. Their exhortations will no more bring more bikes, helmets, tires or locks to bike shops or online retailers than Trump's tariffs will cause steel to be made in the US. That might be the extent of my understanding of economics, but according to the old pundit, it's still more than what some businessmen seem to know!
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| Restored 1938 Shelby. Photo by Aaron W. Legand |
