Government causing problems: Caffe Bene

According to the Korea Herald:

Caffe Bene, the nation’s largest coffee shop franchise, has started cutting jobs and executive salaries, blaming regulations against expansion of its bakery and restaurant chains.

Then a funny thing happened on the way to a seemingly bland story: There was actual talk about the Korean government playing a role in damaging Caffe Bene's business. Not just a throwaway line or a final comment at the end of the article, but actually tying the business's problems to the Korean government's policy.

Caffe Bene took over bakery chain Mainz Dom in December despite the National Commission for Corporate Partnership’s advice to reconsider the acquisition as the panel was discussing restricting bakery franchises. The state-funded commission last month designated bakeries and restaurants as “SME-only” businesses, barring franchises to keep from opening too many stores or within 500 meters from small bakeries. Large companies in the dining industry including Caffe Bene, which runs Black’smith, were also told not to open more restaurants.

A company wants to expand, but the government steps in to block it.

Ludwig von Mises wrote in the 1956 book Anti-Capitalist Mentality that one reason people despise capitalism is that it takes away the excuse for failure. When you have a king or some other person making decisions about your life, then you can blame that person. But when you are on your own, in a free economy? Then you can only blame yourself for your failures. When others succeed where you fail, then in a free economy, it is unpleasant to consider that you are to blame. So people are more comfortable with having a scapegoat rather than evaluating their own decisions.

It is possible that Caffe Bene's management made bad decisions--mainly, thinking that the South Korean government was actually interested in companies that attract customers being allowed to thrive. It is clear that the government screwed up their plans, putting up unnecessary barriers.

“Our plans to expand Mainz Dom and Black’smith restaurants this year were altered due to the commission’s decision,” said Caffe Bene spokesman Kim Dong-han.

“Mainz Dome, which has 20 stores, cannot open a new store because the panel limited the number of stores a bakery franchise can open per year to only 2 percent of existing stores. Black’smith, which we started in November 2011, can’t expand further, either.”

As Thomas Sowell has written: What is politically defined as economic “planning” is the forcible superseding of other people's plans by government officials.

Actress Han Ye Seul opened a Caffe Bene in Los Angeles--out of the reach of South Korea's busybody politicians.

CJL

Rich talking back

The rich are talked about very often in negative terms, but how often do the rich respond in kind? Australian billionaire Gina Rinehart, who inherited most of her money but apparently has also done very well with it, recently railed against class warfare and had some advice for the non-rich : "There is no monopoly on becoming a millionaire," she writes. "If you're jealous of those with more money, don't just sit there and complain. Do something to make more money yourself - spend less time drinking, or smoking and socializing and more time working." She complained about politicians raising taxes, regulations that slow investment, and other anti-business policies that harm the poor. "If you want to help the poor and our next generation, make investment, reinvenstment and businesses welcome."

Common Sense on North Korea (Korea Times, April 2, 2012)

By Casey Lartigue, Jr. As interesting as Kookmin University professor Andrei Lankov’s writings are, there is nothing quite like attending one of his lectures. He can barely restrain himself behind the podium, often pointing and waving his arms. I also enjoy his unscripted speeches, but his answers in Q&A sessions are like the difference between watching Michael Jordan shoot baskets in warm-ups and an actual game. I have finally discovered the secret behind Lankov’s consistently solid analysis about North Korea: Use common sense. At an Asan Institute conference last summer, he argued that North Korea watchers should try to understand North Korea from its perspective. Don’t most people know that you must understand the mindset of others you are dealing with? Yet, common sense in theory gets ignored politically. From the North Korean perspective, nuclear weapons are the best thing they’ve got going. They will NOT give them up easily, even if President Obama ...

Random photos from today

I went walking around today. Whereas some people like to go walking in the mountains, I enjoy walking around in the city. Well, not D.C. or other cities with many homeless, crazy and/or armed people walking around... * * * Here's where I had lunch today. About $1.90 for a hamburger hamberger. * * * Ha-ha! Bet you never would have guessed that Batman is a drinking place in Korea! * * * Man Clinic? The Koreans walking by seemed to be very curious about why I was taking a photo of a "Man Clinic." They may know something I don't know...Actually, I wasn't curious enough to go in and find out what it was... * * * Right down the street from the Man Clinic...there's a Love Shop! I love the euphemism. "Love Shop" sounds much better than Sex Shop. I'm guessing that if you don't go to the "Love Shop" to buy condoms that you may need to visit the Man Clinic a short time later? * * * Nobo...

Last weekend: Suicide, Kim Young Ha, NK

Credit: Joanne Cho Event 1: Friday night I went to a talk given by Fulbright junior researcher Joanne Cho. She did a great job putting together statistics about some of the most commonly cited reasons that so many Koreans commit suicide. Probably the most provocative tidbit: Cho watched 86 dramas from the spring of 2012 to now, she says that 63 had "scenes depicting or discussing suicide" in a favorable light (as a way to solve problems, that troubled people can be forgiven for their sins and are even seen as sympathetic). Another interesting tidbit: While it is often cited that Korea is number one in the world in suicide (among countries reporting reliable statistics), what I had not realized or had forgotten is that Korean men are number 8 in the world compared to men in other countries with reliable statistics, Korean women are #1 in the world when compared to women in other countries. My questions for the speaker: 1) What was a finding in your research th...

Park Jin welcoming remarks to FSI (and Casey Lartigue)

National Assembly member Park Jin makes the welcoming remarks at FSI's conference featuring North Korean diplomats. Park Jin | Greeting message to FSI and Casey Lartigue mention - YouTube

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