Joy in a Toy

 

With Christmas past by several days now, many children will be enraptured by a new toy or toys if they were lucky enough to receive them. The trend now is for giving more technologically sophisticated toys even to small children, but a simple toy such as a rubber duck can give a small child many hours of joy through encouraging the use of imagination, while some complicated toys do everything for the child, who quickly becomes bored through passivity.

 

For such a simple toy, the rubber duck has become enormously popular since its introduction in the form we recognize today in the mid-twentieth century. Some rubber ducks squeak when squeezed and others don’t, but all are hollow with a weight in the bottom, so that they always float upright. Of all toys in America, perhaps only the teddy bear is more popular than the rubber duck. A teddy bear does even less on its own than a rubber duck, however, since some won’t float, and it certainly doesn’t know which end is up when it does float.

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The world’s largest floating rubber duck, designed by the Dutch artist Florentijn Hofman, is towed in Los Angeles harbor in August 2014 as part of the Tall Ships Festival. Photo by Eric Garcetti.

The technology employed in making rubber ducks is some of the simplest in manufacturing, involving rotational molds, heat, and some hand painting. The toys are not made of rubber anymore, since that has gotten too expensive. Manufacturers instead use a non-toxic vinyl which will be safe for toddlers, who inevitably will chew on the toy. The paints also are designed for child safety. Like many manufacturing plants in the past half century, the ones for making these simple toys had moved overseas, primarily to China, until one company returned part of its manufacturing to the United States. That company struggled at first to find a factory and skilled workers, evidence of how quickly disused facilities and worker skills melt away without investment.

For all the stories in the news about how Silicon Valley technological companies like Apple and Google are leading the way for the American economy, and how the less educated workers who don’t fill that mold will just have to make do with minimum wage jobs in the service economy, flipping burgers at McDonald’s or driving Ubers, there are millions of workers who are not cut out to be software engineers but who nonetheless could use better paying jobs to help their families not merely stay afloat, but get ahead in the world.

In this clip from an early episode of Sesame Street, Ernie the Muppet sings “Rubber Duckie”, the 1970 song that set off a resurgence in popularity for the toy.
These are people who may never invent the next big thing in computers or smartphones or driverless cars, but whose children possibly could if given a fair chance at a good education without sinking the family into poverty. In the last fifty years, while the rich in their opulent yachts have gotten ever richer, the working class has been cut adrift from the mainstream economy by the loss of good paying manufacturing jobs, and the middle class has been kept busy furiously kicking to keep from drowning. Not everything has to be complicated or technologically sophisticated to work well in the world. Sometimes all it takes to make people happy is a simple toy that knows enough to bob upright in the water and keep afloat with a plucky smile.
― Techly

 

Name Your Price

 

Now that Christmas is past, shoppers will be out looking for bargains as retailers slash prices in an attempt to clear inventory off their books before the end of the year. That brings up the subject of pricing, which beyond the obvious need to cover costs and generate profits, leaves some leeway in the ongoing, never ending psychological games between sellers and buyers.

 

Why $9.99 instead of $10.00? What about the typesetting of that $9.99? Is $9.99 better? How about 9.99, dropping entirely the suggestion that the seller is asking for real money from the buyer? Gas stations price fuel at even finer increments, using tenths of a cent, such as $2.299/10 per gallon. These pricing systems seem like they have been around forever, and it’s surprising to learn they are no older than 150 years, and in the case of gasoline pricing no older than the 1920s or 1930s.

1894 - Koch & Shankweiler Newspaper Ad2 Allentown PA
An 1894 newspaper advertisement for Koch & Shankweiler clothiers in Allentown, Pennsylvania. The fractional pricing is almost all in quarter dollar increments.

Retailers started pricing items at fractions of a dollar rather than rounding the price to the nearest dollar in the late nineteenth century partly in response to inflation which raised their costs past one dollar for many things, and partly to convey to shoppers that they were getting a bargain. When inflation raised the cost of most items in a department store past a dollar, some retailers responded by rounding up the price to the consumer to the next dollar, while others retained fractions in their pricing. Eventually the retailers who retained fractions found they sold more than the retailers who rounded up, and the same principle applied to items within their own stores where they tried the different tactics. For reasons that psychologists and sellers dispute to this day, buyers like fractions of a dollar in pricing, and they respond by purchasing those items over the ones that are priced at rounded dollars, even though those prices may be only one cent higher.

Vintage Radio Advertising - Crosley Radio, "Crosely Again Lowers Prices", "Big Reduction in Famous Trirdyn and Other Radios", From the Literary Digest, January 17, 1925 (9700961943)
A Crosley Radio advertisement in a 1925 edition of The Literary Digest. Prices were at whole dollars or at half dollar fractions, underscoring how even in the early twentieth century fractional pricing was uncommon. Photo from Flickr user Joe Haupt.

At first retailers thought fractional pricing attracted bargain shoppers, and therefore they used the tactic principally for sale items. By the 1920s, however, fractional pricing became commonplace throughout retail marketing, regardless of whether items were on sale or not. The one area where sellers rarely use fractional pricing is for high profile, luxury items, presumably because those shoppers look down on bargain hunting, and because at a certain high dollar amount adding a fraction to the end of the price becomes ludicrous. The only aspect that needed fine tuning was the exact fraction that worked best as a compromise for sellers and buyers. It appears that fractions in the ninetieth percentile have worked best, which is why prices at half dollar fractions, which were once popular, are rarer now than they once were.

As for gas stations’ pricing fuel down to tenths of a cent, that practice dates to the 1920s and 1930s when government entities first started taxing gasoline to raise money for road building and maintenance. The government taxed the fuel sellers, and the sellers passed the cost on to consumers. When gasoline cost ten or fifteen cents per gallon as it did in those times, it made sense to fine tune fractional pricing down to tenths of a cent. The business of selling gasoline retail has always run on slim margins, which is why those businesses have always diversified, first by offering automobile mechanical services, and now more commonly by selling convenience items at a high markup. Gasoline retailers have learned that consumers will drive a mile down the road to save a penny a gallon on fuel, and since the gasoline on offer is essentially a loss leader for the higher priced items the retailer sells, it makes sense even in these times of fuel prices in the range of dollars for retailers to retain the tenth of a cent fractional pricing that could make the difference in their profitability from month to month.

The 1980 comedy Used Cars, directed by Robert Zemeckis, included this television advertisement for one way of dealing with high prices. Note that the Mercedes luxury car price is rounded to $24,000. Warning: foul language.

The latest development in the continuing tug of war between sellers and buyers that deserves mention is the one in which grocers have challenged the math skills of shoppers beyond simply rounding fractions off to the nearest dollar by posing more complicated division skills, such as 4/10.00, 5/12.50, or 10/16.90. These are not terribly difficult math problems, and many people would not need a calculator to figure them out. This pricing ploy is instead an attempt by the retailer to get the consumer to buy more of the item not only by suggesting it is a great value, but also by confusion over what the price is per unit.

Particularly when the consumer has to compare one item priced in such a manner to a similar item priced in the same way, the laziness and confusion of the shopper works to the advantage of the retailer. In that case, even buyers who do not have a calculator with them should take comfort in understanding that by law in most places they do not have to pick up the suggested amount in order to take advantage of the advertised price. A “Buy one, bet one free” promotion, for example, does not necessarily require the shopper to pick up two items in order to receive the benefit of buying only one item at half price. As always, however, caveat emptor – buyer beware – and check with the store manager to be sure of the applicable policy.
― Vita

 

The Proof Is in the Printing

 

When a computer printer works as it should, smoothly turning out page after page and photo after photo, it’s a wonderful thing that is easy to take for granted. But when that printer acts up and doesn’t feed pages or photos properly, or prints unevenly in streaks even though it has full ink cartridges, then a user’s patience can be stretched to the limit of frustration. Unlike the computer a printer is often connected to, a printer has a lot of moving parts, and that is typically the source of their malfunctions.

Since a home user likely has an inexpensive inkjet printer, replacement of the entire unit is usually preferable over any repair that will get time consuming and therefore expensive. The cost of such a printer is subsidized by purchase of proprietary ink cartridges at inflated prices, which is an economic model a bit like cell phone subsidizing through service contract, but not quite. In the case of a cell phone being available at a nominal initial cost while the complete cost is spread out over the term of a two year contract, the user of the phone is the one and only subsidizer. With printers, the artificially low cost of many of them is subsidized by all the users of the ink, and the heaviest ink users do the most to support the cost of printers for everyone.


If people had to pay the full cost of a printer, they might have a better understanding of the value of these remarkable machines. Like computers, printers that fit on a portion of a desktop now are doing the work that machines in earlier times did while taking up a full room. The inflation adjusted price has also gone down over time, and really the comparison of technological capability does not hold up beyond basic numbers in saying that a modern desktop printer or computer can do the same work as room size machine of fifty years ago. The new machines can do much, much more.

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Peter Small demonstrating the use of the Gutenberg press at the International Printing Museum in Carson, California, in 2009. Photo by Flickr user vlasta2.

What appears to make a printer a special object of loathing when it doesn’t work as it should is the usually mechanical nature of its breakdowns, something that people have a visceral understanding of, rather than the electronic or computing problems of a computer or its hand held cousin, the smartphone, which many people find inaccessibly difficult. When a printer’s paper feed mechanism breaks down and starts chewing up pages, leaving a crumpled mess stuck partway in the printer’s maw, it’s like a willful dog has chewed up our slippers. We can understand that, and it taps into an older, simpler part of our brains than the aloof error message we occasionally see on a computer screen.

In this scene from the 1999 dark comedy Office Space, written and directed by Mike Judge, a few workers take out their frustrations on the temperamental office printer, a stand-in for their frustrations with their workplace generally. Warning: foul language.

This time of year, Christmas, can be especially perilous for an inexpensive home inkjet printer to get glitchy. People are trying to print out photos for their Christmas cards, invitations for parties, and year end summations of their activities and personal growth to include in Christmas cards. In addition to the increased demand on their services in the lead up to Christmas, another danger to marginally useful printers is the frazzled, harried state of mind of their users during the year end holiday season.

No, a printing machine at Christmas that has started to show its age and groan with mysterious mechanical aches and pains is more likely to end up getting recycled by a user whose patience is at an end, rather than get repaired and restored to tip top condition. The latter outcome would be more likely if the printer was valued at its true price. Instead, the home user will replace it with a new printer promising two or three years of trouble free operation. The lesson there for the home user is that inexpensive inkjet printers are a reasonable investment for light use, but people who print a lot are better off with a more expensive machine that reflects its true value, is worth repairing, and relies on a fairer economic model than the highly subsidized market for ink.
― Techly

 

A Spoonful of Honey

 

In 1964 when the Walt Disney Studio made Mary Poppins, a spoonful of sugar may have helped the medicine go down in the most delightful way, but today honey has proven healthier and more effective in treating the symptoms of the common cold. Cough drops made with honey for soothing the throat, and mint or eucalyptus to clear sinuses are popular, as are herbal teas with a spoonful of honey added. Unlike sugar then, honey is a soothing remedy as well as a sweetener.

Linus Pauling
Linus Pauling in 1954.

Vitamin C is for many people another component of fighting off the effects of a cold, despite evidence it has no specific role in the fight. Being otherwise healthy and well nourished, a person with a cold has no need of supplementing their diet with extra vitamin C. Linus Pauling, an American who won two Nobel prizes in the mid twentieth century, the first for chemistry and the second for peace, exerted tremendous influence from the 1960s until his death in 1994 in asserting the value of vitamin C in alleviating cold symptoms or preventing the onset of a cold altogether. Pauling’s influence was so great that he not only boosted sales of vitamin C supplements, but inadvertently set the ball rolling for the entire nutritional supplement industry, resulting in the enormous sales displays at today’s grocery stores and drug stores.

Considering the variety of foods now available year round to consumers in wealthier countries, it’s questionable whether most nutritional supplements are necessary. Many people will nonetheless take a multi-vitamin every day on the grounds that it can’t hurt, as insurance. In addition to the outsized influence wielded by Linus Pauling, it could be that the idea of combating a cold with vitamin C is a holdover from the time when people in colder countries did not have ready access to fresh fruits and vegetables in the winter cold and flu season. Poorer people in particular would have seen their health deteriorate in the winter due to poor nutrition and a consequently weakened immune system.

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A store vitamin supplement sales display. Photo by Raysonho.

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A bowl of Canja de galinha, or Portuguese chicken soup. Photo by Flickr user Sebástian Freire.

At such a time, the gift of an orange in a sick person’s Christmas stocking would have been most welcome. As long as the difficulties of transport to the north could be overcome, oranges, one of the few fruits available fresh after November, could supplement diets starved for fresh fruit all winter, not just at Christmas. Oranges are higher in vitamin C than other fruits commonly available in temperate countries, and therefore people might naturally jump to the conclusion that it was the lack of vitamin C, rather than poor nutrition generally, that contributed to susceptibility to colds.

An old remedy for cold symptoms that science has found real value in is chicken soup, due to its chemistry and the healthy effects on the respiratory system of steaming liquid both before and after ingestion. Doctors say liquids in all forms except those containing caffeine or alcohol are a good remedy for a cold. Herbal tea, chicken soup, hot chocolate, all are good. An aspirin or other pain reliever now and then for an adult is okay, but not for infants and toddlers, and aspirin not at all for children under 16. Honey also is not recommended for infants. Meanwhile, all the vitamin supplements in the world, vitamin C included, won’t help unless poor nutrition was a problem before the cold came on. The best way to avoid coming down with a cold in the first place? Good hygiene and healthy eating, including when a cold settles in despite everything. Feed a cold, and feed a fever. Starving never helped anyone overcome anything, unless they called the starving fasting, but then that’s a whole other story.
― Izzy

 

Slowed to a Trickle

 

There’s a story of how in eastern Siberia in past centuries, where the people often partook of the fly agaric mushroom, Amanita muscaria, for its mind and mood altering properties, the rich often hoarded the supply and the poor had to do without until the rich threw a party such as a wedding, at which event they could be counted on to ingest some mushrooms and, when they ventured out to urinate, the poor would somehow capture the rich people’s urine, which was still loaded with the psychoactive ingredient, and the poor would drink it for their own trippy experience. The difference between that old story and modern trickle down economics is that in the story, if true at least to some extent, the peasants actually did reap some kind of reward finally. No such evidence exists for the modern economic theory.

Gary Cohn at Regional Media Day (cropped)
Gary “Hands Up” Cohn, Director of the National Economic Council.

 

It’s a good line to trot out as cover for tax cuts for the rich, apparently, and that’s why to sell the latest tax cut package it’s been used again by current presidential administration flacks like Gary Cohn, Director of the National Economic Council and former Goldman Sachs executive. The package passed the U.S. Senate on December 2, and now it awaits reconciliation with a similar package already passed by the House of Representatives. Republican leaders in Congress hope to have the bill ready for the president to sign by Christmas. Happy Holidays! Or Merry Christmas, if you prefer that with your egg nog.

Besides selling the bald-faced lie that the tax package is somehow supposed to benefit any other economic group but the wealthy, through the voodoo of trickling down, Republicans are cramming in several other things before they tie up the package with a nice bow. One is the repeal of the individual mandate from the Affordable Care Act, which will leave 13 million people uninsured. Another is the authorization of oil drilling in the Arctic National Wildlife Refuge in Alaska. And a third is the destruction of the Johnson Amendment, which will be like a Citizens United watershed moment for right wing churches, allowing them to flood political campaigns with money from their congregations without endangering their tax exempt status. Of course, other churches, left wing or neutral, will be able to do the same, but it is the religious right that has long scorned the Johnson Amendment as an impediment to its agenda. Indeed, all three of these additions to the tax package will scratch itches conservatives have been worrying over for years or decades.

 

There are other items added to the basic tax package that will satisfy many conservatives, though surprisingly not all, and not because the tax cuts don’t go far enough, but because they go too far or are misplaced. At a presentation before an auditorium full of CEOs in November, Gary Cohn stressed that the corporate tax cuts in the new package should spur investment, and to prove his point he asked for a show of hands from those present who would increase their company’s investments. A few raised their hands, but not the majority, and certainly not as many as Mr. Cohn apparently expected, because he asked “Why aren’t the other hands up?” before quickly moving on to other business. CEOs elsewhere have also questioned the necessity of the corporate tax cuts, which is to their credit considering how greedily corporate America generally behaves.

Steven Mnuchin official portrait (cropped)
Steven “Mr. Cruella De Vil” Mnuchin, Secretary of the Treasury.

No, the corporate tax cuts in the latest bill are intended to benefit the financial sector, Wall Street. That’s why people like Treasury Secretary Steven Mnuchin and Gary Cohn, creatures of Wall Street, like the bill and defend it. They understand it. It means more money for themselves and their colleagues. They talk about how it will help producers of things produce more and better things, and how it will improve life for the lower orders. They believe none of that, nor do they understand it. They never produced anything. They have no interest in producing anything. They can barely conceal their contempt for people who produce things, and particularly the ones who get their hands dirty doing it.

From the 1940 Disney film Fantasia, the Chinese dancers of Tchaikovsky’s The Nutcracker ballet envisioned as mushrooms very much like the fly agaric kind.

People like Mnuchin and Cohn and the Supreme Leader who appointed them understand only money, meaning the more of it for themselves the better, especially if it means less for everyone else. To move economic metaphors from the latrine to the marina, from trickle down to a rising tide lifts all boats, the Wall Street Greed Heads could follow a better model than trickle down by investing in the bottom, the rising tide. They don’t understand that, however, nor can they spare what little empathy they have for it, and that leaves 99 percent of the country coping with the trickled down policies the Greed Heads do understand, which is all for the few, the one percent.
― Ed.

 

A Corny Time of Year

 

October is corn harvest time in much of the United States, and popcorn has this month dedicated to it in all its glory. The sweet corn harvest was earlier, in August and September, but for field corn and popcorn, October is typically the month when farmers cut the stalks. The Harvest Moon was on October 5th, and at the end of the month corn and corn stalks figure in Halloween decorations and celebrations. Corn will have a part in the celebrations of Thanksgiving and Christmas, too, though for Christmas its part will fall mostly to strings of popcorn for garlanding Christmas trees.

 

Popcorn is made from a special variety of maize, called Zea mays everta, the special popping characteristic of which Native Americans may have discovered long ago when some kernels fell near a cooking fire. It was a long time between that discovery and the one in the 1960s by Orville Redenbacher and his business partner, Charlie Bowman, of a hybrid strain that popped more reliably and twice as large as earlier popcorns. The “gourmet” description added to the packaging of their product was purely marketing. In the meantime, popcorn had become a favorite snack food in America by the early twentieth century and had even become ingrained in popular culture, with the merchandising of Cracker Jack caramel corn and peanuts in a box with a prize, and the baseball song “Take Me Out to the Ballgame”, which included a reference to Cracker Jack.

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“Shine On, Harvest Moon” sheet music cover from 1908, with corn shocks included in the artwork. This songbook standard was written by Nora Bayes and Jack Norworth. Norworth also co-wrote “Take Me Out to the Ball Game” in the same year, with Albert Von Tilzer.

The biggest boost to popcorn sales came from movie theaters, even though theater owners initially resisted selling popcorn in house because of the low brow connotations of the snack. Popcorn was cheap, and movie theater owners in the first few decades of the twentieth century sought a slightly higher class clientele. That changed during the Great Depression when theater owners took concession sales away from independent vendors out on the sidewalk and brought the selling of high profit items like popcorn under their own wing in the lobby. It wouldn’t be far fetched to say that popcorn sales saved many a movie theater from bankruptcy during the darkest years of the Great Depression.

 

The next big boost to popcorn sales came in the 1980s with the simultaneous advent of home video rentals and the widespread appearance of microwave ovens in homes and, with them, microwaveable popcorn. Suddenly people could save money on a trip to the movie theater and still enjoy a facsimile of their favorite movie theater snack at home. There have been health concerns about both movie theater popcorn and microwaveable popcorn, each for different reasons. Lately there have also been alarms about the use of neonicotinoids, implicated in honey bee deaths and colony decline, as a seed coating for planted popcorn. The good news is that popcorn has not been swept up in the GMO madness.

Cracker jack newspaper ad 1916
1916 newspaper advertisement for Cracker Jack.


The Swedish Chef grooves to the tune “Popcorn”. For an added treat, turn on the captions.

The best tasting popcorn and the healthiest might have been the batches people cooked up themselves on their stove tops at home in the days before they gave in to the tempting convenience of microwaveable popcorn. It’s still possible to make it that way, of course, and it is really not that difficult. The home cook also has the advantage of controlling the amount of butter and salt added, the two ingredients that turn popcorn from a relatively healthy snack into a not entirely healthy one. What makes the concept of home cooked popcorn even more attractive and plausible is the addition to the home entertainment system since the 1970s of video recorders and DVDs, all with associated remote controls featuring pause buttons. No more rushing to pop up a snack during a commercial break! Take some time to relax and do it right.
― Izzy

 

How the Mighty Have Fallen

 

Sears, once the largest retailer by sales volume in the country, has been in decline for the last twenty years and is on its way out of business. Some of its competitors in the brick and mortar and catalog sides of retail merchandising have either already gone out of business or are also on their way out. Sears failed to keep up with the online retail revolution, and a look around its sales website indicates that the company still doesn’t have a handle on it. Sears closed up its famous catalog in 1993, and since it never established itself online, it was left with brick and mortar stores which are not doing well.

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The Amtrak train The Cardinal departs Chicago in May, 2009, for points east. The Sears Tower, the tallest building in the skyline, was renamed the Willis Tower in 2009 by the Willis Group as part of its lease agreement. Photo by Russell Sekeet.

 

Throughout the first two thirds of the twentieth century, Sears was such a huge merchandiser that it accounted for about one percent of all retail sales nationwide. It was the Amazon.com of that time, which was no small feat considering the supply chain difficulties imposed by an infrastructure that would not become truly nationwide until the 1950s with the building of the interstate highway system. Sears made its name by using its catalogs to reach under served rural customers at a time when the majority of people lived outside of cities. Now online retailers can reach anyone with an internet connection, and shippers deliver directly to the consumer’s doorstep.

It was at this time of year, late summer or early autumn, that Sears used to issue its Wish Book, a shortened version of its catalog, with an emphasis on Christmas gift items. One of Sears’ competitors, Macy’s, still kicks off the Christmas shopping season by sponsoring a Thanksgiving Day parade in New York City, though it has also been closing stores around the country. The 2008 recession accelerated the decline of the big nationwide department stores after a slow slip in sales since the 1990s. Specialty stores with a national or regional presence, like Radio Shack and Circuit City, have also either shut down or are close to doing so. What’s most often left then for Christmas shoppers visiting a physical store are the big box retailers like Walmart and Target.

 

Or people could patronize locally owned shops. The prices may be higher because the small shops don’t have the supply chain advantages of their much larger competitors, but the local small business gives back to its community. In that sense, the two types of stores should not even be considered competitors. Over there are the big box retailers selling goods cheaply, but also taking advantage of communities with unethical employment and supply chain practices. And over here are small businesses that are answerable to the community, because without local support and good word of mouth they are doomed to fail.

Gimbels with Hearst antique NYWTS
Left to right: Adam Gimbel, Frederic Gimbel, and Bernard Gimbel looking at a Luca della Robbia (1400-1482) statue of Madonna and Child, from the art collection of William Randolph Hearst. Parts of Hearst’s collection were sold at the Gimbels department store in 1939-1940. Gimbels had stores in the northeast and the midwest, and a prized location next door to Macy’s in Herald Square in New York City. Photo by Edward Lynch of the New York World Telegram & Sun.


Edmund Gwenn stars as Santa Claus in the 1947 version of Miracle on 34th Street. The film’s setting is Macy’s department store in New York City.

It could be that the failure of the old retail giants like Sears will prompt renewed interest in shopping at local stores. Online retailers and a few big box retailers have already usurped much of Sears’ more than one century old business model. Sears and J.C. Penney and a few other large department stores have anchored enclosed suburban shopping malls since they first started appearing in the 1950s and 1960s. Now that those stores are declining, perhaps small, locally owned shops will pick up more business. That would be a welcome development, and it might eventually boost Small Business Saturday to a level competitive with Black Friday (it’s antithesis is Buy Nothing Day) and Cyber Monday. Like it or not, Christmas has been a commercial proposition in America for a long time now, and if small businesses can bloom from the ashes of the old retail giants, then at least some good will have come from that mercantile aspect of the year end holidays.
― Vita