The Real Cost of Maple Syrup
Posted in Delicious Ideas, Pontificating on December 30th, 2008Sitting my own little slice of heaven on board this MD-80, I’m still dwelling on an event that happened earlier today. Maybe this is an indicator of how little I fly (or how I usually fly), but I had to check a bag today (due to the TSA’s fear of syrup in large quantities), and in doing so I had to pay Delta Airlines $15.
Now, I’m not really miffed about having to pay the fee, I’m miffed about why I’m paying the fee in the first place. In forking over 15 bucks I’m supporting Delta’s bad business model.
Yes, I just passed judgement on something I know nothing about, but there is ample evidence all around me. Like I said before, I’m on an MD-88, as in MacDonald Douglass, as in a company that hasn’t existed for years, as in a fuel-guzzling jet that is subject to the binge-and-purge oil market much more so than other, newer jets.
Delta decision-makers, with their vast resources must have had the opportunity to phase in a newer jet fleet at somepoint. Of course, the economics of jet-buying may make it much cheaper to service old planes than buy newer, more efficient ones, so the blame may reach past Delta, but in the long run, it is never smart to allow a large part of your business to be dictated by forces that you cannot control.
But is their model really that bad? Or is Delta just another victim of past success. This is a capitalist expand-or-perish society we live in, isn’t it? So Delta’s once tiny fleet had to go farther, fly more, and price lower, right? Different planes, different mechanics, different pilots–more money. And just by being around all these years, the company put itself at risk to supporting retirees some day, didn’t it? (Another reason why government-sponsored healthcare would be the best way to bail out our troubled businesses while passing on benefits to ordinary Americans at the same time, but I digress.)
Back to bags. I want to make it clear that I have no problem paying for the real cost of something. If the airline industry got together as a whole a while before fuel spiked and told us that a bag charge was necessary, I would have supported that. Bags are heavy, after all, and planes have weight restrictions. Charging by weight or by the number of bags is a great way to have consumers pay the real cost of the service that Delta is providing. But tacking these charges on as a way to deflect irresponsible energy consumption is like a cabby charging me a few extra bucks because he drove me downtown in a Tahoe.
Another example of not paying the real cost can be seen on most streets in the nation. I’m talking about parking meters. Even in areas where the charges are considered high the amount motorists pay is nowhere near the actual cost of maintaining that spot in the city. The rest of the cost comes out of tax revenue, so in a city like New York, where many don’t drive, the few are subsidized by the many, and no one has a say in the matter. This happens in other cities that have more drivers. The gulf is not as wide, but it is still distinct. The difference between cheap parking and, say, a homeless shelter–where the few are also subsidized by the many–is that car ownership is a lifestyle choice, poverty is not (Though I can think of more than a few Republican pundits who would like to convince you otherwise).
You can extend the “real cost of” thing further. We’re big fans of hiding the true costs of things in developed society. And if you factor in the environmental costs [read: unrecoupable losses], then we’re actually talking about most of industry. Sure, JetBlue had a more profitable business than Delta, same with Toyota vs GM, same with Wal-Mart vs Sears, but these companies, and many more with them, are all pushing us into the red when it comes to the environment. The problem is when it comes to global warming, there is no negotiation, no bankruptcy protection, no write-downs or divestments. And there is definitely no bailout in sight.

e a single building more energy efficient, but what if I told you that there was a completely free way to have made the building much more efficient when it was first built–but that was ultimately not adopted.