Morning, Airheads.
I hope one of you is enjoying a celebratory GS vape for having won the contest of the week. I'm wearing my retired erstwhile economist hat, and celebrating the doubly good news from Asia.
Beijing public smoking ban begins - BBC News
For those who don't like the BBC, it says that China has done some serious things to restrict cigarette smoking. I like this, first because it will improve the health of hundreds of millions of Chinese smokers, eventually. Next, said the self-interested once and future economist, because this will inevitably lead to higher domestic consumption of
vapegear.
Why, you ask, does this strange fellow in Maine care about Chinese domestic consumption of products manufactured in China? So glad you asked. It is about
economies of scale...a fancy term from the aircraft builders of WW II. Generally,
the more you make a thing, the better you get at making it (efficiency, learning curve, and other buzzwords), so unit costs go down. Also, you use more raw materials when you build more, so you can squeeze your suppliers for better (lower) materials prices.
Because your manufacturing costs go down, you can lower prices to your customers ...
including us Tootle Puffers. And they all vaped happily ever after the end---pass the popcorn.
So the Chinese smoking public gets healthier, and in time we get more shiny toys for our dollars, be they Canadian, 'Murkin, or Alph-Centaurian.