Category Archives: Economics

Economists Ignore Laws Of Economics

It would appear that a set of economists are willing to ignore reality:

As the three-year mark since the federal minimum wage was last raised approaches, we urge you to once again raise the federal minimum wage. A three-step raise of 85 cents a year for three years—which would mean a minimum wage of $9.80 by 2014—and then indexing to protect against inflation (corresponding to the legislation proposed by Senator Tom Harkin and Representative George Miller) would be a reasonable approach. The increase to $9.80 would mean that minimum wage workers who work full-time, full-year would see a raise from their current salary of roughly $15,000 to roughly $20,000. These proposals also usefully raise the tipped minimum wage to 70% of the regular minimum.

This policy would directly provide higher wages for close to 20 million workers by 2014. Furthermore, another nearly 9 million workers whose wages are just above the new minimum would likely see a wage increase through “spillover” effects, as employers adjust their internal wage ladders. The vast majority of employees who would benefit are adults in working families, disproportionately women, who work at least 20 hours a week and depend on these earnings to make ends meet. At a time when persistent high unemployment is putting enormous downward pressure on wages, such a minimum wage increase would provide a much-needed boost to the earnings of low-wage workers.

These esteemed economists must have forgotten the negative repercussions of raising the minimum wage:

  1. Reduced employment for marginal workers
  2. Reduced hours for minimum wage earners
  3. Restriction of new job market entrants reducing valuable work place skills

The laws of economics are incontrovertible.  You may no more pass legislation that says gravity is discretionary.

Obamacare’s Taxes And The Impact On Jobs

Romney says that he knows why jobs come and why jobs go.  Obama doesn’t.

Barack Obama feels a sense of charity.  And he thinks that government should act on that charity.

Are there people who get sick or hurt and can’t afford their care?  Well, by golly, the government should step in and perform that charity.

But when he realizes that people respond in rational ways, he becomes confused and then angry.  “Why won’t people just DO the right thing?  Why won’t they accept the added burden of Barack’s charity and continue to hire?”

An Indiana-based medical equipment manufacturer says it’s scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama’s health care overhaul law.

Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.

“This is the equivalent of about a plant a year that we’re not going to be able to build,” a company spokesman told FoxNews.com.

He said the original plan was to build factories in “hard-pressed” Midwestern communities, each employing up to 300 people. But those factories cost roughly the same amount as the projected cost of the new tax.

“In reality, we’re not looking at the U.S. to build factories anymore as long as this tax is in place. We can’t, to be competitive,” he said.

This is why companies move jobs overseas.  The government forces the price of labor to the point that such labor isn’t competitive.

By the way, to answer the question above, “Why won’t they accept the added burden of Barack’s charity and continue to hire?”  I suspect that he would say that they are greedy.

Romney: I know Why Jobs Come And Why They Go

Without a doubt the main focus on the election so far has been the economy and the lack of jobs.  On one hand you have Romney claiming that he knows how business works, how the economy works.  On the other hand, you have Obama claiming that Romney simply guts American jobs while making himself wealthy.

I think it’s important to note that Obama never runs any ads claiming that HE knows how to grow jobs.

Anyway, I was going through some Obama commercials and found this one:

The point of the ad is that Romney took companies here in America and sent their jobs to other countries, countries like China and India.  The impression being that Romney doesn’t grow jobs, rather, he outsources American jobs.

It’s effective ’till you think it through, which I grant you, isn’t likely to happen considering the American electorate.

Romney claims, “I know how business works.  I know why jobs come and why they go.”  That claim is entirely truthful as it relates to his owning Bain, his restructuring companies and his sending jobs overseas.  When businessmen look at the state of the company before them, one of the things they look at is labor.  And they make a value based decision on where that labor might be better obtained.  Many many things are considered; ease of transition, cost of shipping, risk of client dissatisfaction due to hard accents, time zone difficulties and education of labor force.  And yes, included in that calculation is the tax and wage burden of the companies.

Romney knows why he sent those jobs overseas.  Because regulations and restrictions here in America make it more expensive than it has to be.  Moving work to another country is a painful and difficult decision to come by.  Making that transition is very difficult.  But no one does it because they WANT to.  They do it because business demands it.

Romney doesn’t say that he’s going to outsource jobs.  Not at all.  What he says is that he knows why people do it.  And that he’s going to change those reasons and incent businesses to keep labor here.

And THAT is something that Obama hasn’t clue one about.

Parenting: SES Impact – The Bell Curve

I’m continuing my series on the chapters of “The Bell Curve”, by Herrnstein and Murray.  If you are interested in the posts so far, just go to the category selections on the right sidebar, I’ve grouped them together under The Bell Curve.

The other day we dealt with welfare and the impact that socioeconomic status has on:

  1. Going on it
  2. Staying on it

The results were mixed.  The answer, it depends.

Today we’re gonna look at parenting and the impact of the SES of the mother on her children.

Even before the life of the child has a chance to take off, a critical component of parenting is the birth weight of that child.    By examining the socioeconomic status of the mother we might catch a glimpse of it’s impact on her children:

As you can see from the chart the impact of the socioeconomic status of the mother is small or meaningless.

Moving to the early life of the child, the authors explore childhood poverty in the first three years of the child’s life.  Again, holding other variables constant, the impact of the SES of the mother:

That impact is dramatic.  Poor women raises poor kids while the wealthy mothers raise children above the poverty line.  As soon as the mother’s wealth dropped below the average, the probability of childhood poverty rises very steeply.

The next set of data describes the impact of the SES of the mother on the HOME index.

 The Home Observation for Measurement of the Environment (HOME) Inventory is designed to measure the quality and extent of stimulation available to a child in the home environment. The Infant/Toddler HOME Inventory (IT-HOME) comprises 45 items that provide information from the child’s perspective on stimuli found to affect children’s cognitive development. Assessors make observations during home visits when the child is awake and engaged in activities typical for that time of the day and conduct an interview with a parent or guardian. The IT-HOME is organized into six subscales: (1) Responsivity: the extent of responsiveness of the parent to the child; (2) Acceptance: parental acceptance of suboptimal behavior and avoidance of restriction and punishment; (3) Organization: including regularity and predictability of the environment; (4) Learning Materials: provision of appropriate play and learning materials; (5) Involvement: extent of parental involvement; and (6) Variety in daily stimulation. For the IT-HOME, 18 items are based on observation, 15 on interview, and 12 on either observation or interview.

In 1986, 1988 and 1990, the NLSY conducted surveys of the children and mothers using the HOME observations.  From that data, the authors build a probability of scoring in the lowest decile of that index based on the SES of the mother:

Again we see the pattern.  As the wealth of the mother decline, the HOME index score of the family unit becomes worse.  Only 3 in 100 of the wealthiest women have children in the lowest decile in the index while the poorest women have 10 in 100.

The next topic in the chapter deals with developmental outcomes of the children of moms in the NLSY.  The study administered a host of tests regrading those outcomes.  In short, the book is looking at measuring those children who scored in the bottom decile of the 4 indicators of a given test year.  If they answered “yes” for any of the four tests being in that bottom decile or “no” if they did not.

The results holding all variables equal but SES of the mother:

The data is relatively modest; 5 points separate the top from the bottom.

Finally, the last factor studied in the chapter – the IQ of the child.  Here the authors again decided to look at the probability of the child ranking in the bottom DECILE of IQ based on the SES of the mother.  Again, the data:

Again, the impact of the mother’s SES status is mild; moving the ranking from 10% to 4%, highest to lowest.

In conclusion, with the notable exception of living in poverty for the first 3 years of life, the SES of the child’s mother has only mild predictive value in the studied outcomes.

The Science Behind Fracking

The science behind energy has always been progressing.  hat started out as campfires has turned into nuclear reactions and laser shots.  We’ve gone from wood to whole oil.  Whale oil to kerosene.  Kerosene to coal and gas.  Mix in some windmills and solar panels, we’ve come a long way.

Each new advancement seems to come to as the matrix of inputs, and outputs, change.  We have oil today because we were running out of whales yesterday a delicious fact of life to present to your favorite neighborhood environmentalist].  We’ve gone from totally dependent on fossil fuels to nuclear options.  And today we’re taking advantage of natural gas through fracking procedures.

We change and adapt for several reasons.  Sometimes it’s because we develop technology.  We gave up on whales because the technology of oil extraction produced more value through oil than did hunting whales.  We’re able to tap into reserves of oil previously unreachable through new technologies and due to a changing demand for oil; the price of oil now makes new drilling economically sound.  And sometimes we have impacts to the environment that cause us to change.  As we throw soot into the air from our coal plants we discover that those effects are undesirable.  So we try to clean the exhaust.  That cleaning adds costs and those costs drive new technology.

And all of that, if done correctly, is a good thing.  It’s when the dogma surrounding the “Ought” get’s in the way when things go off track.

We forget to track the value.

Is burning the coal and sending the pollution into the air worth the benefit?  Is mining the coal and hurting/killing the miners worth the benefit?  Is the risk of a meltdown in a reactor worth the energy.  is it worth the cleaner energy that coal provides?  The comparisons can go on and on.

folks aren’t being honest if they don’t acknowledge that there are downsides to today’s energy.  And others aren’t being honest if they don’t acknowledge the benefits we enjoy due to that energy.  If reducing coal emissions meant a slow down in medical research, would that be worth it?  if we reduced the deep sea drilling and added to the cost of crude oil, would the economic impacts of higher cost of energy be worth it?

No one should deny that drilling, deep sea or shallow land, doesn’t impact the environment.  However, there shouldn’t be any doubt to the benefits that drilling provides either.

All this brings me to fracking.  This form of energy extraction isn’t any different than the ones we’ve already discussed.  There are puts and there are takes.  The rub comes in the value.  And this is where I think today’s ‘Green Energy” folks are getting it wrong.

I get that wind and solar are easier on mother Earth.  But they don’t have the economic ability to make themselves viable.  The benefit ain’t worth the downside; dramatically more expensive power.  And those same “Green Energy” folk’s hatred of fracking follows the same blindness to the value proposition that they exhibit in solar and wind.

Fracking gives us access to substantially cheaper gas than we’ve had in the past.  AND we have massive amounts of it.  Are there downsides?  Sure.  But they may not be as bad as they say:

PITTSBURGH — In the debate over natural gas drilling, the companies are often the ones accused of twisting the facts. But scientists say opponents sometimes mislead the public, too.

Critics of fracking often raise alarms about groundwater pollution, air pollution, and cancer risks, and there are still many uncertainties. But some of the claims have little — or nothing— to back them.

Examples?

…reports that breast cancer rates rose in a region with heavy gas drilling are false, researchers told The Associated Press.

Fears that natural radioactivity in drilling waste could contaminate drinking water aren’t being confirmed by monitoring, either.

And concerns about air pollution from the industry often don’t acknowledge that natural gas is a far cleaner burning fuel than coal.

Ironically, the same groups that accuse the right of ignoring the science of global warming*, are the same folks who might be ignoring science themselves.

“The debate is becoming very emotional. And basically not using science” on either side, said Avner Vengosh, a Duke University professor studying groundwater contamination who has been praised and criticized by both sides.

More on the science:

Opponents of fracking say breast cancer rates have spiked exactly where intensive drilling is taking place — and nowhere else in the state. The claim is used in a letter that was sent to New York’s Gov. Andrew Cuomo by environmental groups and by Josh Fox, the Oscar-nominated director of “Gasland,” a film that criticizes the industry. Fox, who lives in Brooklyn, has a new short film called “The Sky is Pink.”

But researchers haven’t seen a spike in breast cancer rates in the area, said Simon Craddock Lee, a professor of medical anthropology at the University of Texas Southwestern Medical Center in Dallas.

David Risser, an epidemiologist with the Texas Cancer Registry, said in an email that researchers checked state health data and found no evidence of an increase in the counties where the spike supposedly occurred.

And Susan G. Komen for the Cure, a major cancer advocacy group based in Dallas, said it sees no evidence of a spike, either.

“We don’t,” said Chandini Portteus, Komen’s vice president of research, adding that they sympathize with people’s fears and concerns, but “what we do know is a little bit, and what we don’t know is a lot” about breast cancer and the environment.

And back to the radioactive water:

Another instance where fears haven’t been confirmed by science is the concern that radioactivity in drilling fluids could threaten drinking water supplies.

Critics of fracking note the deep underground water that comes up along with gas has high levels of natural radioactivity. Since much of that water, called flowback, was once being discharged into municipal sewage treatment plants and then rivers in Pennsylvania, there was concern about public water supplies.

But in western Pennsylvania, the Pittsburgh Water and Sewer Authority did extensive tests and didn’t find a problem in area rivers. State environmental officials said monitoring at public water supply intakes across the state showed non-detectable levels of radiation, and the two cases that showed anything were at background levels.

And finally the irony:

Critics of fracking also repeat claims of extreme air pollution threats, even as evidence mounts that the natural gas boom is in some ways contributing to cleaner air.

Marcellus air pollution “will cause a massive public health crisis,” claims a section of the Marcellus Shale Protest website.

Yet data from the U.S. Energy Information Administration show that the shale gas boom is helping to turn many large power plants away from coal, which emits far more pollution. And the U.S. Environmental Protection Agency passed new rules to force drillers to limit releases of methane from wells and pumping stations.

Some environmental groups now say that natural gas is having a positive effect on air quality.

Earlier this year, the group PennFuture said gas is a much cleaner burning fuel, and it called gas-fired power plants “orders of magnitude cleaner” than coal plants.

Does burning gas impact air quality and the environment around it?  Sure.  To a degree.  But is it worth it?  Is it worth burning gas in order to bring to our doorsteps life saving medications, educational advancements, new advancements in cancer research?  Also, sure.

We need to watch and make sure that we’re taking care to increase our value.  We don’t kill whales for whale oil just because there’s whale oil in the ocean.  And maybe one day, when we can more effectively split the atom, we’ll stop drilling for oil.  But until then, please, run through the value proposition.

*It’s important to point out that there is a difference in accepting man made warming and accepting catastrophic global climate change.  And much of the emotional back and forth in this debates comes from ignoring this fact.

 

Welfare: SES Impact – The Bell Curve

I’m continuing my series on the chapters of “The Bell Curve”, by Herrnstein and Murray.  If you are interested in the posts so far, just go to the category selections on the right sidebar, I’ve grouped them together under The Bell Curve.

So far we’ve taken a look at the impacts that the socioeconomic status of the parents of white women in the NLSY have on various life outcomes.  Included in those outcomes so far is poverty, education, Employment and the family.  This post deals with welfare and the dependency on welfare.

The first look at the impact of SES has welfare is what the probablity is of a white woman going on welfare within a year of her first birth.  The data presented below shows that probability with poverty and marital status  taken into account:

As probability of going on welfare moved from the poorest, about 28%, to the wealthiest, about 19%, the trend is down.  However, the authors report that the results are not statistically significant.

But another picture arises altogether when we look at chronic welfare recipients:


Here the results are dramatic.    The probability of a white woman in the NLSy study is greatly influenced by the socioeconomic status of her parents.  The authors don’t explain what might cause the change in the mild predictive value of SES in welfare at all vs. the highly predictive value that it plays in chronic welfare dependency.  However, they do hint that education plays a role somehow.

The Nature Of Health Insurance

The nature of health insurance is to protect us against the risk of requiring medical care.  If we get hurt or sick, we have the mechanism of insurance to protect us.  Depending on our individual circumstances, we purchase different kinds of policies.  The very young may choose a simple plan that protects against only the most extreme costs.  Those of us who are more likely to require care may purchase a plan that accommodates those contingencies.

But it’s all about managing risk.

After the supreme court upheld Obamacare, we have moved from insurance protecting us from risk to insurance offering prepaid medical care.  When an “insurance plan” covers office visits, routine tests and other incidentals, we are nt paying someone to take the risk from us, we’re paying someone to give us medical care.

And what happens when that happens?

Raleigh, N.C. — The University of North Carolina system requires all students to have health insurance coverage, but the cost of a plan the system offers has more than doubled in two years.

The insurance requirement started in 2010, and about one-third of students on the system’s 16 university campuses buy their policy through UNC’s provider, New York-based insurer Chartis. The rest of the students have other coverage, usually through their parents.

The average cost of the Chartis policy started at $695 a year, but it rose to $847 last year. Tuition bills that are now arriving in student mailboxes for the 2012-13 school year include a $1,418 health insurance premium.

Why the rise in prices?  Greedy insurance companies?

Bruce Mallette, the UNC system’s vice president for academic and student affairs, blamed the increase on a high number of claims by students on the policy.

“It was a very affordable plan,” Mallette said. “If you look nationally, the pricing we had in the first two years was very, very competitive, and students utilized it and utilized it and utilized it.”

Right.

People demand value.  When they’re forced to buy something they don’t want, they’re gonna use it.  And by using it they raise the price.  The next guy, not wanting to be left behind, uses HIS policy.  It’s a spiral.

Consider a table of 10 people having dinner.  They agree to just “split the bill 10 ways.”  The first guy orders a BLT.  The second a steak, the third wants a bowl of chili but senses that he’s paying for the prior two guy’s high priced meal – so he too orders steak.  And so on.

Prices are going up folks, not down.

 

Building Codes: Free Market vs. Regulation

So many times you hear the right rail against government regulations as being too tight, too restrictive and representing too large a burden.  We complain that over regulation leads to less risk taking and can dampen growth and creating of companies, products and jobs.

On the other hand, the left will jump up and point out that we all love clean water, fresh air and safe cars, medicines and food.  Without regulation, the saying goes, evil greedy corporations will just do whatever they want in the name of profit.

I suspect that there’s validity in  not just one side, but both.

Take, for example, the case of the BP oil spill in the gulf a number of years ago.  The government regulates oil rigs and mandates certain safety equipment in order to eliminate or reduce the chance of spills.  However, the government isn’t in a place to be experts in oil rig or deep water drilling technology.  Further, the government agencies are subject to politics, lobbying efforts and corruption.

We saw that very problem with the agency charged with developing those safety standards.

Next, take California.  California requires that every house constructed have a sprinkler system installed.  The argument, “certainly homes are safer.”  But no one knows by how much and if the cost of building more expensive homes is worth the gain.  If taken far enough, government regulations can rise the cost of housing far above what an average person can afford.  The very real world examples of this are the land use restrictions found in cities around the country.

But, back to regulating safety.  Is it radical to suggest that people should decide how safe they want to be?  Or, put another way, can we trust individuals to conduct their own cost/benefit analysis?

If so, I would suggest that private industry competing for customers and profit, would solve the solution the best way.  And that method?

Insurance:

CHESTER COUNTY, S.C. —

Hurricane-force winds hit 136 miles an hour inside a massive wind tunnel in Chester County.

105 powerful fans were aimed at two masonry buildings set up to look like small businesses, or a strip mall. The two buildings took a tremendous beating Tuesday.

The two cinder block buildings look identical on the outside, except for their color.

One building is built with a better roof, including reinforced flashing and stronger materials. It also has more rebar running down the block walls and tied together in the corners.

The other building is constructed in the common way most similar structures are built.

During the first test, 95 mile an hour winds pound both buildings. The commonly built structure loses the flashing and part of the roof.   A second test pumps the winds to above 130 miles an hour.  Within minutes, the outer wall of the common building buckles and falls outward, sending pieces of concrete block everywhere. At the same time, the roof shifts as well.

The reinforced building has no visible damage except for a broken front picture window where a two-by-four was shot out of a cannon to simulate flying debris in a storm.

Advanced techniques, both in building and then in testing were undertaken to determine how best to design and construct a stronger more tolerant building in the face of severe weather.

And who conducted this test?  Government regulators?  Not at all:

Julie Rochman heads the Insurance Institute for Business and Home Safety.  Funded by a large group of insurance companies, the group runs a test facility unlike any other in the world.

The implications of this test?

A large crowd of reporters, photographers and insurance and building executives were on hand to watch the power-packed artificial storm.

One of them, Mark Pizzi, is president of Nationwide Insurance.  He flew in from Ohio for the event.  Pizzi said twenty-five percent of small businesses destroyed in a disaster never reopen.

He hopes this test can change that down the road.

“I look at it this way. This test today is about business, staying in business,” he said.

And as a result, the industry advanced the methods of construction and did so in a way that makes sense:

Rochman said the better roofing materials on one of the test buildings only cost about $150. The whole building, which survived the powerful winds virtually intact, cost only $3,000 more to build.

And the whole reason is profit.  The endless desire to make more money.  On one hand, insurance companies now have a better way to conduct risk analysis on the buildings they insure.  Those that are unsafe will be charged a higher rate, those that are built to the new suggestions; a cheaper rate.  But more than that, the insurance companies hope to save money directly:

Rochman told Channel 9 that the education coming out of these tests is having a strong influence on the construction and insurance industry.  The goal, she said, is to prevent loss.

It turns out that insurance companies don’t like the buildings they insure to blow away in the wind.

Problem solved.  And Obama didn’t build that.

 

The Family: SES Impact – The Bell Curve

I’m continuing my way through the book, “The Bell Curve” by Herrnstein and Murray.  I’ve posted already on several of the chapters describing the impact of the socioeconomic status of the families people come from.  Fascinating stuff.

The chapter next on the list deals with the family; specifically the family structure.  The chapter takes a look into what impacts how the family is formed and remains together, or not.

First, let’s take a look at marriage.  Specifically, marriage by the age of 30.  Marriage is very important in society and is critical in creating the building blocks that form successful family units.

So, how does the socioeconomic status of the parents impact the chance of marriage of the child?

The chart above shows data for white individuals in the study.

Because of the impact of education and its suppression on marriage, it’s useful to separate folks who have a high school diploma only from those who have a college diploma.  As you can see, socioeconomic status of the family of the individual has little impact on marriage.  Most people are married by 30 with an even higher percentage married by 40.

If marriage is important, then divorce is important as well.  After all, it’s the two parent home that’s critical to the success of ensuring kids gain a strong foothold in life.  And the data?

An interesting trend to be sure.  As family wealth increases, the rate of divorce increases as well.  Indeed, by the time we reach 2 standard deviations from the mean SES, the individuals are divorcing at 17 points higher than those on the lower SES end.  This represents a greater than 100% increase.

Here the conversation shifts from marriage and divorce without reference to children to those families formed outside of marriage.  And so enters the illegitimate child.  I tend to agree with the authors that the old-fashioned view of illegitimacy was that it occurred mostly at the lower ends of the socioeconomic scale.  It was “the poor girls” having babies out of wedlock, not the wealthy.

But does the data support that view?  The answer is kinda.

 

The women at the very end of the socioeconomic scale have illegitimate births at a 19% rate while the richest of women are giving birth about 8-9% before marriage.  The 10 points or so isn’t much, but again, does represent nearly a 100% increase in the rate comparing the very wealthy to the very poor.

Here the authors move into an interesting question.  Does poverty cause illegitimacy or does the welfare system cause illegitimacy?  The idea, or the argument, being is that the welfare system enables the single mom to refrain from taking precautions that she might otherwise take if she were to bear the cost of raising the child.

To tease out an answer to this, an interesting question is asked:

Among NLSY white mothers who were at or below the poverty line in the year prior to giving birth, what proportion of the babies were born out of wedlock?  The answer is 44%.  For women above the poverty line?  6%.

What does the data, shown in the usual format, show us?

A pretty compelling argument that the wealth of the mother’s family plays a role.

More Free Market Airline Style

I’ve mentioned in the past that the airlines are employing some unique methods in order to raise additional revenues while protecting passengers who may not wanna take part in higher fares.

One of those examples is paying extra for prime seats.  For example, I’ve pointed out that some airlines are experimenting with charging folks extra for aisle and window seats.

Personally, this makes great sense to me.  I absolutely LOVE not sitting in the middle seat and am willing to pay money not too.  Others, however, are not willing to pay additional fees in order to travel and are thus more than happy to trade a middle seat for money.

We all win.

Well, here’s another example:

…according to a survey by Airfarewatchdog.com, a fare-tracking site that found 16% of respondents were willing to pay to be at the front of the line when their flight lands. Of that group, 10% would pay $10 and 3% would pay as much as $20.

I’m traveling again this week and the example below really happened to me:

An early exit can also give fliers more time to make their connections. Airlines have gotten better at getting passengers to their destinations on time. In the first four months of this year, major U.S. carriers had an on-time arrival rate of 84.54%, their best performance for that period in 18 years, according to the Transportation Department’s Bureau of Transportation Statistics.

But even if their flight’s not delayed, passengers often have little cushion to make a connecting flight. Paying a few more dollars to be first off the plane could be an advantage, Hobica says.

I had one hour to get from my flight to my connection.  It appeared we were gonna be late and I’d rather have the extra time by being in front of the plane rather than in the back.  In this case, I didn’t have to pay extra [I would have], but I DID have to trade an aisle seat for a middle seat.  But I saved 17 rows.  And at 6 people per row, that’s a  lot of time.

Personally, I’m all for these free market measures that airlines use to spread the cost of flying to those who want the extras.