Let Them Use Change

Something interesting. Perhaps.

I heard recently on the old radio that new studies in economics could suggest alternative ways to tackle the recession. Briefly detailed, the first study consisted of paying gas station customers $5 for filling out a brief survey before they went in to pay for their gas. Depending on how they were given those $5 determined how they spent it. More specifically, those given the cash in the form of a five dollar bill typically ended up placing the cash in their wallet and moved on with their lives; while those given five individual one dollar bills typically spent a small portion on drinks, candy, and corn nuts; while those given five one dollar coins typically spent the most leaving the store with nothing but Big Gulps, a handful of lotto tickets, and a receipt for their short sightedness. The lesson: either people just really hate one dollar coins and strive to relieve themselves of them as quickly as possible, or smaller denominations of currency leads to increased spending.

To further push this point home a second study was cited. In this study, women house cleaners in China were given a week’s worth of their salary in varying denominations. Those given larger bills tended to save while those given a giant wad of small bills tends to splurge frivolously.

So the practical recommendation? If Obama wants to stimulate the economy, or if Bush wanted to back in the day with his tax rebates, he should refrain from sending out bulk sum checks. Instead give everyone change. Flood the nation with Sacajawea dollars and people will be consuming again in no time.

And I agree. Although likely not terribly practical to dispense sackfuls of coinage, it does make sense that if people feel that they have a lot of something of little value, say a handful of small bills, they will spend it more freely than if they feel they have a few of something of great value, say one or two Grover Clevelands. I can even say I have consciously experienced this effect myself, which is why I propose we go one step further. Let’s join with our transatlantic, Western brethren and adopt the euro! If economists thought people spent one dollar coins fast, they haven’t seen tourists go through shiny silver and gold two euro coins. Not only do they pack greater value into a single coin, but with exchange rates as they are we get even more bang for our buck. Hand a man a handful of euro change, and he will be poor and penniless again in no time. That, my friends, is some serious stimulus spending.

A Bit of a Cat Problem

I wade through cats when leaving the house towards work in the mornings. Cats waist high, fifty felines deep; it's a bit of a problem. Thanks to the generous daily donations of food and water by our next door neighbors the local tabby population is expanding rapidly and will likely soon blot out the sun. With cats in such tonnage also comes kitty waste, and that's also becoming something of a problem. For my roommate at least. Although I am not so fond of our not dog friends I do not terribly mind their presence all too much. Laura, on the other hand, seems to have a far more sensitive nose and far less patience. Generally speaking she's a fairly calm and collected person, but under the guidance of her parents who visited recently she has begun a war of attrition aimed at ending the scourge that is stupid, skittish, feral cats.

The solution, initially, consisted mostly of bleach. Lots of cleanser to cleanse the urine smell and burn the lungs of any animal lingering too long on the porch. Our front door briefly no longer smelled of tom cat tinkle but instead like a very heavily chlorinated pool. This was only the opening volley, however, in what was to be a bleach, moth ball, and ground black pepper triple offensive, and the very next day I arrived home from work to find a generous scattering of little white spheres throughout the front yard planters. It kind of looked like it had recently hailed had it hailed only quarter inch sized balls of ice, but the pungent smell of ammonia replaced the chlorinated pool smell making it obvious it was the moth balls. Is it working? I am not sure; I have been headed to work later the last few days and generally speaking the cats scatter to go about their cat business shortly after sunrise, but I believe the Gallos are stockpiling mustard gas just in case.

Unrelated to the current arms race, I took the USMLE Step 3 yesterday and the day before. That's all I got to say about that. If there's any secret police more feared than the HIPAA brown shirts its the Federation of State Medical Boards Stasi, and I fear I have already said to much.

Doubly unrelated, I bought myself a new mountain bike with my economic stimulus check. A 2008 Specialized Rockhopper! Yeah. Awesome. Basically it's a bike, and it's blue. The rest is all kind of muddled. There are apparently about 2100 different mountain bikes produced with varying ill-defined features, and I am pretty sure I purchased the Rockhopper mostly because I just subconsciously thought the name was outstanding. Anyways, consider the economy stimulated! I've done my part Mr. President!