Lawrence Ho, who with James Packer set up the City of Dreams casino complex in Macau, made some revealing comments recently.
"Chinese people are very superstitious and they believe, one, that they are luckier than the casino themselves and, two, they are probably luckier than the other casino patrons and that's why they can win."
Of course, the tendency to overrate one's own luck or ability is a universal human trait. But the Chinese cultural heritage is particularly rich in beliefs and customs relating to luck and fortune, and there is no doubt that Chinese people are often strongly drawn to gambling in general, and casino gambling in particular.
Many Chinese are suspicious of the stock market and the big investment banks, and Ho suggests they see the casino as a fairer option. In baccarat, for example, you have a 50-50 chance of winning.
Well, it's not quite as simple as that! But Ho and his fellow casino entrepreneurs are quite happy to exploit the naive ideas of the new Chinese middle class.
In fact, growth in the VIP or 'high roller' sector is flat, whereas the mass market for what casinos have to offer is currently growing at 30% per annum. The focus is now squarely on the new middle class rather than on professional gamblers or the super rich.
I wonder how the likes of Lawrence Ho and James Packer, respected and admired as they are, justify to themselves their exploitation of human weakness and irrationality. Are they hard and cynical Social Darwinists at heart? Or do they believe that they are providing a real service to the community?
I am reminded of a childhood friend whose family ran a corner store which made a significant proportion of its money from cigarettes, many of which were purchased by young people.
My friend's trite observation that it was a dream they were buying, 'not just a packet of fags,' was true enough, but not particularly convincing as a moral defense.
The way I see it is that we humans do all sorts of stupid and self-destructive things. The relatively good business person may exploit some of these activities but provides an honest (and legal) product and refrains from outright deception.
The real reprobate is the purveyor of contaminated goods, counterfeit medical drugs, that sort of thing.
Or am I setting the bar too low?
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Tuesday, December 11, 2012
Saturday, June 23, 2012
A hard God is good for business
In my recent post on the concept of the noble lie I cited (approvingly) David Berlinski's contention (based on intuitions about human nature and on historical evidence) that religious belief - in particular belief in a just, all-seeing god - is conducive to good behavior and so socially beneficial.
I have just come across a report on some research which seems to support this point of view. The researchers found that one particular doctrine - a belief in punishment after death - was the most significant factor in determining whether a society had a low level of crime. Other studies have delivered similar findings, with one even finding that a belief in supernatural punishment promoted productive business activity. (Gross domestic product was found to be higher in developed countries when belief in after-death punishments was widespread.) Old time religion seems to trump the more liberal, postmodern varieties hands down when it comes to being socially useful.
This is an uncomfortable truth for those of us who reject such religious ideas, but it is also useful insofar as it exposes unrealistically optimistic views about human nature and society for what they are: wishful thinking.
I have just come across a report on some research which seems to support this point of view. The researchers found that one particular doctrine - a belief in punishment after death - was the most significant factor in determining whether a society had a low level of crime. Other studies have delivered similar findings, with one even finding that a belief in supernatural punishment promoted productive business activity. (Gross domestic product was found to be higher in developed countries when belief in after-death punishments was widespread.) Old time religion seems to trump the more liberal, postmodern varieties hands down when it comes to being socially useful.
This is an uncomfortable truth for those of us who reject such religious ideas, but it is also useful insofar as it exposes unrealistically optimistic views about human nature and society for what they are: wishful thinking.
Tuesday, April 10, 2012
Sinister influences
In a pluralistic society it seems sensible to let the market decide as far as possible who should be paid for doing what. The market may not itself be moral but ultimately it does reflect the values of market participants and in fact can provide fertile ground for the development and growth of many human virtues, such as prudence and a sense of responsibility.
It's all very well to say that someone should be paid to perform some (presumably worthwhile) activity, but if businesses or individuals are unwilling to fund them then any money must come from the state, from public resources. And - especially in these times of high government indebtedness - a strong case can be made that controversial or ideologically motivated activities or activities which are normally deemed to be inessential or which only benefit a small group should (whenever possible) be paid for directly by those involved.
Take sport and the arts. There is nothing to stop people getting together to play games if they want to. There is nothing to stop people putting on concerts or plays; and, if the product is popular, the audience will pay. Why should I subsidize writers or artists or performers in whom I have no interest and who, in many cases (given the left-leaning tendency of the arts community), are seeking to undermine the values I hold most dear?
I know that sports and the arts constitute only a small fraction of government budgets, but these areas are not discrete or easily defined, and they impinge on and merge into other more significant areas of government concern. For example, the arts merge into the media, advertising and propaganda. And sports funding is associated with community health initiatives. Nanny state, yes, but at least sport (unlike much activity in the arts) is not ideological.
Much arts funding is more about promoting multiculturalism (or, more cynically, about placating certain ethnic minorities) or winning votes from the broader 'arts community' than it is about encouraging artistic excellence (whatever that may be these days). But then, why should the state promote artistic excellence anyway? It is a good and worthwhile thing, but let it be left to artists to excel and to their followers to reward them.
At the elite end of the spectrum, both sport and the arts are used by governments to promote the 'national brand', an unfortunate tendency that appears - at least in respect of the arts in some European countries and in respect of sport just about everywhere - to have popular support.
Although the number of people directly employed by governments may be falling in some Western countries, the number who work for organizations which are dependent on government funding - including international organizations - is growing. And in areas such as health, education and aged care many mainstream churches and previously-independent welfare organizations have become mere 'service providers', following government rules and dependent on government largesse for their continued existence.
More insidious - if not sinister - is the way many groups espousing and promoting so-called progressive causes have inserted themselves, formally or informally, into the bureaucracy of national and local governments, redirecting resources and effectively reshaping the ethos of these bodies. Institutions and bureaucracies devoted to education are particularly culpable in this regard.
More broadly, laws and government regulations - promoted and encouraged by unions and other left-wing pressure groups - are making it increasingly difficult in many countries for businesses to make decisions about their own operations, including hiring and firing.
Similar constraints are being placed on professionals of all kinds. Once the professional-client relationship was, though essentially market-based, associated with well-understood and respected ethical standards. Direct and indirect government intrusions on this relationship are effectively undermining the very concept of the independent professional who maintains a direct relationship with clients based on trust and a sense of responsibility.
Freedom does not guarantee morality, but morality will only develop in the context of freedom, and withers in a highly regulated environment.
It's all very well to say that someone should be paid to perform some (presumably worthwhile) activity, but if businesses or individuals are unwilling to fund them then any money must come from the state, from public resources. And - especially in these times of high government indebtedness - a strong case can be made that controversial or ideologically motivated activities or activities which are normally deemed to be inessential or which only benefit a small group should (whenever possible) be paid for directly by those involved.
Take sport and the arts. There is nothing to stop people getting together to play games if they want to. There is nothing to stop people putting on concerts or plays; and, if the product is popular, the audience will pay. Why should I subsidize writers or artists or performers in whom I have no interest and who, in many cases (given the left-leaning tendency of the arts community), are seeking to undermine the values I hold most dear?
I know that sports and the arts constitute only a small fraction of government budgets, but these areas are not discrete or easily defined, and they impinge on and merge into other more significant areas of government concern. For example, the arts merge into the media, advertising and propaganda. And sports funding is associated with community health initiatives. Nanny state, yes, but at least sport (unlike much activity in the arts) is not ideological.
Much arts funding is more about promoting multiculturalism (or, more cynically, about placating certain ethnic minorities) or winning votes from the broader 'arts community' than it is about encouraging artistic excellence (whatever that may be these days). But then, why should the state promote artistic excellence anyway? It is a good and worthwhile thing, but let it be left to artists to excel and to their followers to reward them.
At the elite end of the spectrum, both sport and the arts are used by governments to promote the 'national brand', an unfortunate tendency that appears - at least in respect of the arts in some European countries and in respect of sport just about everywhere - to have popular support.
Although the number of people directly employed by governments may be falling in some Western countries, the number who work for organizations which are dependent on government funding - including international organizations - is growing. And in areas such as health, education and aged care many mainstream churches and previously-independent welfare organizations have become mere 'service providers', following government rules and dependent on government largesse for their continued existence.
More insidious - if not sinister - is the way many groups espousing and promoting so-called progressive causes have inserted themselves, formally or informally, into the bureaucracy of national and local governments, redirecting resources and effectively reshaping the ethos of these bodies. Institutions and bureaucracies devoted to education are particularly culpable in this regard.
More broadly, laws and government regulations - promoted and encouraged by unions and other left-wing pressure groups - are making it increasingly difficult in many countries for businesses to make decisions about their own operations, including hiring and firing.
Similar constraints are being placed on professionals of all kinds. Once the professional-client relationship was, though essentially market-based, associated with well-understood and respected ethical standards. Direct and indirect government intrusions on this relationship are effectively undermining the very concept of the independent professional who maintains a direct relationship with clients based on trust and a sense of responsibility.
Freedom does not guarantee morality, but morality will only develop in the context of freedom, and withers in a highly regulated environment.
Saturday, February 4, 2012
Ten ways to enhance your economic security
1. Education and professional training is the single most important factor in determining one's level of income, so obviously a lot of attention has to be given to making good choices in this regard. Unfortunately, choices need to be made before most of us are capable of choosing wisely, and bad early choices usually have a negative impact which lasts a lifetime. But such is the price of freedom.
2. Cultivate a taste for frugality and saving. See saving in a positive light - as deferred gratification, for example.
3. Aim to pay half of what your spendthrift twin would pay for anything you do buy, from food to clothes to larger items.
4. Pay off loans. The fashion for living on credit is solely for the benefit of lenders. So lend.
5. If you don't have capital or a satisfactory job, use all your spare time and brainpower to figure out what kind of paid work would be acceptable to you; and then try to find it. If you fail to find it, adjust your expectations and try again. Simply and steadfastly 'following your dream' is, more often than not, a recipe for disaster.
6. Beware of business partners.
7. Don't go into business at all unless you have extensive experience. Work for someone else.
8. Don't keep pets, and especially not a horse.
9. The rewards of having and raising children should be balanced against the fact that the fewer children you have, the more prosperous you (and they) will be.
10. Distrust all financial advice which is not blindingly obvious.
2. Cultivate a taste for frugality and saving. See saving in a positive light - as deferred gratification, for example.
3. Aim to pay half of what your spendthrift twin would pay for anything you do buy, from food to clothes to larger items.
4. Pay off loans. The fashion for living on credit is solely for the benefit of lenders. So lend.
5. If you don't have capital or a satisfactory job, use all your spare time and brainpower to figure out what kind of paid work would be acceptable to you; and then try to find it. If you fail to find it, adjust your expectations and try again. Simply and steadfastly 'following your dream' is, more often than not, a recipe for disaster.
6. Beware of business partners.
7. Don't go into business at all unless you have extensive experience. Work for someone else.
8. Don't keep pets, and especially not a horse.
9. The rewards of having and raising children should be balanced against the fact that the fewer children you have, the more prosperous you (and they) will be.
10. Distrust all financial advice which is not blindingly obvious.
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