On Travel

When most people think about retirement, they imagine a life full of friends, hobbies, and (likely) travel.

To illustrate, think about what you would do if you knew you were going to retire at 65 and die at 75.  You’d probably work hard before turning 65, giving up some time with friends, hobbies, and travel, in order to make those final years as comfortable as possible.

But, what if, when you were 74, I told you you weren’t actually going to die until 85?  What would you do with that extra 10 years?  You’d probably be ecstatic!  Ten extra years of friends, hobbies and travel, right?

Now, think about what you would do if you knew you were going to die in 5 years.  You’d probably try to pack that time with friends, hobbies, and travel, right?

If both answers are the same, you’ve got a problem.  If you would do the same thing with limited time that you’d do with bonus time,  it’s probably a good indication that you should be doing more of those things, right now.

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Happiness Is Not A Reward – It’s A Consequence

Time is your most limited resource.  You can always make more money, but you can only buy so much time.  Happiness is not a reward for giving up most of your time in exchange for money.  Happiness is a consequence of spending your time wisely:

Spend time with the right people.

Spend time on the right activities.

Daydream.

Breathe.

Constantly Reexamine.

Stanford Business School has a nice article about these concepts here.

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Memorial Day

Just a reminder on this day that if you’re going to fight for something, you better make damn sure it’s worth it.

Kai Chang via Ben Casnocha

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A Fool’s Life

The fool, with all his other faults, has this also: he is always getting ready to live.

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Neil Gaiman on Life

Great speech:

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Gambling on Discipline

Almost all people who become successful do so because they’re able to develop discipline.  It’s not something they’re born with.  It takes practice.  Consciously doing what needs to be done now, foregoing what you’d like to be doing instead, in order to reach some greater reward later.  This ability to endure minor (and sometimes major) discomfort is not only a prerequisite for success, it’s the basis of capitalism.

So, how to develop this discipline?  Ray Romano, of Everybody Loves Raymond fame, does something interesting, which he calls “mind bets“:

[Mind bets are] a reward and punishment technique he developed to replace his own wagering habit. “I set a personal goal, like, ‘If I don’t break a 90 at golf, then I can’t watch TV for a week,’ and I get as pumped up as if I had $1,000 on a bet,” he said.

It’s a simple way to externalize what you usually keep in your head.  Instead of “I really need to finish X” you can say “Oh man, if I don’t finish X today, I don’t get to watch TV tonight [or eat dinner, or go golfing, or whatever].”

Now, this takes some discipline to actually enforce the bets on yourself (or find someone who’s willing to enforce them on you), but it’s pretty effective.

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How To Write, Part 3

This one comes comes from David Mamet, perhaps the most well-known living playwright.  He wrote a memo for the writing staff on the CBS show The Unit, where he was an executive producer, reminding everyone what makes for good drama.  While obviously directed at TV writers, it’s good advice for anyone who needs to be able to tell a compelling story:

TO THE WRITERS OF THE UNIT

GREETINGS.

AS WE LEARN HOW TO WRITE THIS SHOW, A RECURRING PROBLEM BECOMES CLEAR.

THE PROBLEM IS THIS: TO DIFFERENTIATE BETWEEN DRAMA AND NON-DRAMA. LET ME BREAK-IT-DOWN-NOW.

EVERYONE IN CREATION IS SCREAMING AT US TO MAKE THE SHOW CLEAR. WE ARE TASKED WITH, IT SEEMS, CRAMMING A SHITLOAD OF INFORMATION INTO A LITTLE BIT OF TIME.

OUR FRIENDS. THE PENGUINS, THINK THAT WE, THEREFORE, ARE EMPLOYED TO COMMUNICATE INFORMATION — AND, SO, AT TIMES, IT SEEMS TO US.

BUT NOTE:THE AUDIENCE WILL NOT TUNE IN TO WATCH INFORMATION. YOU WOULDN’T, I WOULDN’T. NO ONE WOULD OR WILL. THE AUDIENCE WILL ONLY TUNE IN AND STAY TUNED TO WATCH DRAMA.

QUESTION:WHAT IS DRAMA? DRAMA, AGAIN, IS THE QUEST OF THE HERO TO OVERCOME THOSE THINGS WHICH PREVENT HIM FROM ACHIEVING A SPECIFIC, ACUTE GOAL.

SO: WE, THE WRITERS, MUST ASK OURSELVES OF EVERY SCENE THESE THREE QUESTIONS.

1) WHO WANTS WHAT?

2) WHAT HAPPENS IF HER DON’T GET IT?

3) WHY NOW?

THE ANSWERS TO THESE QUESTIONS ARE LITMUS PAPER. APPLY THEM, AND THEIR ANSWER WILL TELL YOU IF THE SCENE IS DRAMATIC OR NOT.

IF THE SCENE IS NOT DRAMATICALLY WRITTEN, IT WILL NOT BE DRAMATICALLY ACTED.

THERE IS NO MAGIC FAIRY DUST WHICH WILL MAKE A BORING, USELESS, REDUNDANT, OR MERELY INFORMATIVE SCENE AFTER IT LEAVES YOUR TYPEWRITER. YOU THE WRITERS, ARE IN CHARGE OF MAKING SURE EVERY SCENE IS DRAMATIC.

THIS MEANS ALL THE “LITTLE” EXPOSITIONAL SCENES OF TWO PEOPLE TALKING ABOUT A THIRD. THIS BUSHWAH (AND WE ALL TEND TO WRITE IT ON THE FIRST DRAFT) IS LESS THAN USELESS, SHOULD IT FINALLY, GOD FORBID, GET FILMED.

IF THE SCENE BORES YOU WHEN YOU READ IT, REST ASSURED IT WILL BORE THE ACTORS, AND WILL, THEN, BORE THE AUDIENCE, AND WE’RE ALL GOING TO BE BACK IN THE BREADLINE.

SOMEONE HAS TO MAKE THE SCENE DRAMATIC. IT IS NOT THE ACTORS JOB (THE ACTORS JOB IS TO BE TRUTHFUL). IT IS NOT THE DIRECTORS JOB. HIS OR HER JOB IS TO FILM IT STRAIGHTFORWARDLY AND REMIND THE ACTORS TO TALK FAST. IT IS YOURJOB.

EVERY SCENE MUST BE DRAMATIC. THAT MEANS: THE MAIN CHARACTER MUST HAVE A SIMPLE, STRAIGHTFORWARD, PRESSING NEED WHICH IMPELS HIM OR HER TO SHOW UP IN THE SCENE.

THIS NEED IS WHY THEY CAME. IT IS WHAT THE SCENE IS ABOUT. THEIR ATTEMPT TO GET THIS NEED MET WILL LEAD, AT THE END OF THE SCENE,TO FAILURE – THIS IS HOW THE SCENE IS OVER. IT, THIS FAILURE, WILL, THEN, OF NECESSITY, PROPEL US INTO THE NEXT SCENE.

ALL THESE ATTEMPTS, TAKEN TOGETHER, WILL, OVER THE COURSE OF THE EPISODE, CONSTITUTE THE PLOT.

ANY SCENE, THUS, WHICH DOES NOT BOTH ADVANCE THE PLOT, AND STANDALONE (THAT IS, DRAMATICALLY, BY ITSELF, ON ITS OWN MERITS) IS EITHER SUPERFLUOUS, OR INCORRECTLY WRITTEN.

YES BUT YES BUT YES BUT, YOU SAY: WHAT ABOUT THE NECESSITY OF WRITING IN ALL THAT “INFORMATION?”

AND I RESPOND “FIGURE IT OUT” ANY DICKHEAD WITH A BLUESUIT CAN BE (AND IS) TAUGHT TO SAY “MAKE IT CLEARER”, AND “I WANT TO KNOW MORE ABOUT HIM”.

WHEN YOU’VE MADE IT SO CLEAR THAT EVEN THIS BLUESUITED PENGUIN IS HAPPY, BOTH YOU AND HE OR SHE WILL BE OUT OF A JOB.

THE JOB OF THE DRAMATIST IS TO MAKE THE AUDIENCE WONDER WHAT HAPPENS NEXT. NOT TO EXPLAIN TO THEM WHAT JUST HAPPENED, OR TO*SUGGEST* TO THEM WHAT HAPPENS NEXT.

ANY DICKHEAD, AS ABOVE, CAN WRITE, “BUT, JIM, IF WE DON’T ASSASSINATE THE PRIME MINISTER IN THE NEXT SCENE, ALL EUROPE WILL BE ENGULFED IN FLAME”

WE ARE NOT GETTING PAID TO REALIZE THAT THE AUDIENCE NEEDS THIS INFORMATION TO UNDERSTAND THE NEXT SCENE, BUT TO FIGURE OUT HOW TO WRITE THE SCENE BEFORE US SUCH THAT THE AUDIENCE WILL BE INTERESTED IN WHAT HAPPENS NEXT.

YES BUT, YES BUT YES BUT YOU REITERATE.

AND I RESPOND FIGURE IT OUT.

HOW DOES ONE STRIKE THE BALANCE BETWEEN WITHHOLDING AND VOUCHSAFING INFORMATION? THAT IS THE ESSENTIAL TASK OF THE DRAMATIST. AND THE ABILITY TO DO THAT IS WHAT SEPARATES YOU FROM THE LESSER SPECIES IN THEIR BLUE SUITS.

FIGURE IT OUT.

START, EVERY TIME, WITH THIS INVIOLABLE RULE: THE SCENE MUST BE DRAMATIC. it must start because the hero HAS A PROBLEM, AND IT MUST CULMINATE WITH THE HERO FINDING HIM OR HERSELF EITHER THWARTED OR EDUCATED THAT ANOTHER WAY EXISTS.

LOOK AT YOUR LOG LINES. ANY LOGLINE READING “BOB AND SUE DISCUSS…” IS NOT DESCRIBING A DRAMATIC SCENE.

PLEASE NOTE THAT OUR OUTLINES ARE, GENERALLY, SPECTACULAR. THE DRAMA FLOWS OUT BETWEEN THE OUTLINE AND THE FIRST DRAFT.

THINK LIKE A FILMMAKER RATHER THAN A FUNCTIONARY, BECAUSE, IN TRUTH, YOUARE MAKING THE FILM. WHAT YOU WRITE, THEY WILL SHOOT.

HERE ARE THE DANGER SIGNALS. ANY TIME TWO CHARACTERS ARE TALKING ABOUT A THIRD, THE SCENE IS A CROCK OF SHIT.

ANY TIME ANY CHARACTER IS SAYING TO ANOTHER “AS YOU KNOW”, THAT IS, TELLING ANOTHER CHARACTER WHAT YOU, THE WRITER, NEED THE AUDIENCE TO KNOW, THE SCENE IS A CROCK OF SHIT.

DO NOT WRITE A CROCK OF SHIT. WRITE A RIPPING THREE, FOUR, SEVEN MINUTE SCENE WHICH MOVES THE STORY ALONG, AND YOU CAN, VERY SOON, BUY A HOUSE IN BEL AIR AND HIRE SOMEONE TO LIVE THERE FOR YOU.

REMEMBER YOU ARE WRITING FOR A VISUAL MEDIUM. MOST TELEVISION WRITING, OURS INCLUDED, SOUNDS LIKE RADIO. THE CAMERA CAN DO THE EXPLAINING FOR YOU. LET IT. WHAT ARE THE CHARACTERS DOING -*LITERALLY*. WHAT ARE THEY HANDLING, WHAT ARE THEY READING. WHAT ARE THEY WATCHING ON TELEVISION, WHAT ARE THEY SEEING.

IF YOU PRETEND THE CHARACTERS CANT SPEAK, AND WRITE A SILENT MOVIE, YOU WILL BE WRITING GREAT DRAMA.

IF YOU DEPRIVE YOURSELF OF THE CRUTCH OF NARRATION, EXPOSITION,INDEED, OFSPEECH. YOU WILL BE FORGED TO WORK IN A NEW MEDIUM – TELLING THE STORY IN PICTURES (ALSO KNOWN AS SCREENWRITING)

THIS IS A NEW SKILL. NO ONE DOES IT NATURALLY. YOU CAN TRAIN YOURSELVES TO DO IT, BUT YOU NEED TO START.

I CLOSE WITH THE ONE THOUGHT: LOOK AT THE SCENE AND ASK YOURSELF “IS IT DRAMATIC? IS IT ESSENTIAL? DOES IT ADVANCE THE PLOT?

ANSWER TRUTHFULLY.

IF THE ANSWER IS “NO” WRITE IT AGAIN OR THROW IT OUT. IF YOU’VE GOT ANY QUESTIONS, CALL ME UP.

LOVE, DAVE MAMET

SANTA MONICA 19 OCTO 05

(IT IS NOT YOUR RESPONSIBILITY TO KNOW THE ANSWERS, BUT IT IS YOUR, AND MY, RESPONSIBILITY TO KNOW AND TO ASK THE RIGHT Questions OVER AND OVER. UNTIL IT BECOMES SECOND NATURE. I BELIEVE THEY ARE LISTED ABOVE.)

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Clothes Make The Man

It has long been known that clothing affects how other people perceive us as well as how we think about ourselves.  It turns out, clothing also affects the way we think.

If you wear a white coat that you believe belongs to a doctor, your ability to pay attention increases sharply. But if you wear the same white coat believing it belongs to a painter, you will show no such improvement.

The scientists have coined the term “enclothed cognition” to describe how someone’s clothing affects their cognitive processes.  Click over to the New York Times to read a summary of the researchers’ studies.  It might change the way you choose to dress for work.

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Smart People Don’t Call Others Stupid

Some really mostly-good advice from Derek Sivers:

Being smart means thinking things through – trying to find the real answer, not the first answer.

Being stupid means avoiding thinking by jumping to conclusions.Jumping to a conclusion is like quitting a game : you lose by default.

That’s why saying “I don’t know” is usually smart, because it’s refusing to jump to a conclusion.

So when someone says “They are so stupid!” – it means they’ve stopped thinking. They say it to feel finished with that subject, because there’s nothing they can do about that. It’s appealing and satisfying to jump to that conclusion.

So if you decide someone is stupid, it means you’re not thinking, which is not being smart.

Therefore: smart people don’t think others are stupid.

This is probably the better way to go through life.  Usually the “they are so stupid” comments are epithets said in haste, not well reasoned thoughts.  Avoiding that reaction is something to work at.

But, there are truly stupid people out there.  And, there are reasonably intelligent people who almost continuously do stupid things.  It’s something you have to deal with, but it’s not something you have to get distraught over.  Recognize those that are actually stupid, and work not to rely on them too much.

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We’re Not All Scientists

Another nice Neil deGrasse Tyson video is going around, but he’s a bit off base on this one:

I can’t think of any more human activity than conducting science experiments. Think about it — what do kids do? Young kids.  Kids who can barely walk.  They’re turning over rocks, they’re plucking petals off a rose.  They’re exploring their environment through experimentation.  That’s what we do as human beings, and we do that more thoroughly and better than any other species on Earth, that we have yet encountered.

We explore our environment more than we are compelled to utter poetry when we’re toddlers — we start doing that later. Before that happens, every child is a scientist. And so when I think of science, I think of a truly human activity, something fundamental to our DNA, something that drives curiosity.

He’s right about kids: they do play and experiment with the world in order to learn.  It’s natural.  But that’s different from real science, and it sells us, and those who have propelled us this far, short.

Real science is about creating repeatable experiments in order to test how different variables affect a result.  Of course that sounds obvious now, but that took many cultures thousands of years to figure out.  Except for when it came to developing military weaponry, there were only a handful of cultures over the last 8,000 years that employed anything close to the scientific method.  And much of those gains were forced upon the rest of us by a few brilliant and dedicated men.  For most of modern history, people found something that worked and basically stopped.  That’s how most children work.  They’re curious, but not disciplined.  And that’s one of the reasons the human race suffered through prolonged periods of cultural stagnation.  Because we’re not all scientists.  Because real science is hard.

But its also clearly worth it.  It allows us to support the needs and wants of billions of people.  It allows us to launch men and robots into space.  It makes nearly anything possible.

So appreciate real science.  Appreciate Da Vinci and Newton and Galileo and Tesla and Edison, who made the world better not just for showing us new theories and inventions, but for showing us how to think and experiment.  You don’t have to be these guys to practice real science yourself.  We’re not all scientists, but there’s nothing but laziness stopping us.  You can practice science in every aspect of your life.  You can instill the scientific mindset in your kids.  You’ll be much better off, and the world will be a better place.

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Sugar and the Brain

A new UCLA study indicates that a diet high in fructose impairs memory and inhibits learning in rats.  The form of the fructose doesn’t seem to matter much.  Whether the fructose comes from high-fructose corn syrup, sugar cane, or fruit, it’s still fructose.  Take in too much, and you might be making yourself dumber.  While we don’t know why fructose inhibits cognitive ability, Mr. Gomez-Pinilla, member of UCLA’s Brain Research Institute, has some ideas:

[High fructose intake promotes insulin resistance.] Because insulin can penetrate the blood–brain barrier, the hormone may signal neurons to trigger reactions that disrupt learning and cause memory loss.  Eating too much fructose could block insulin’s ability to regulate how cells use and store sugar for the energy required for processing thoughts and emotions.
Insulin is important in the body for controlling blood sugar, but it may play a different role in the brain, where insulin appears to disturb memory and learning. Our study shows that a high-fructose diet harms the brain as well as the body. This is something new.

But, there’s good news: omega-3 fatty acids can counteract the disruption.  Eating foods rich in omega-3s like salmon, walnuts and flaxseeds, or DHA supplements, can protect the brain against fructose’s harmful effects.

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Forgeries on the Brain

When it comes to high art, almost nobody can tell the difference between an original and a good copy.  Even so, we overwhelmingly prefer the original.  Oxford scientists hooked up 14 volunteers to a functional MRI, and then showed them real and fake Rembrandts.  The researchers would then inform the subjects whether they were looking at an original or a fake.

Regardless of what the subjects were actually looking at, merely being told they were looking at the original lit up the pleasure centers in their brains.  Just believing the painting was an original was enough to make people favor it.  And on the other side, just believing the painting was a fake was enough to send the brain into overdrive, searching for reasons to believe it’s inferior to the original.

Our findings support what art historians, critics and the general public have long believed — that it is always better to think we are seeing the genuine article. Our study shows that the way we view art is not rational, that even when we cannot distinguish between two works, the knowledge that one was painted by a renowned artist makes us respond to it very differently.

It turns out that when it comes to art, we don’t really know what we like.  A lot more than just visual appeal goes into determining what we fancy.

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How to Talk to Anyone And Not Be Boring

A lot of smart, hardworking, observant, and otherwise interesting people are conversationally awkward. Even though they do and read about lots of interesting stuff, they never seem to have much to talk about. Which is weird because these are some of the people who should have the most to talk about.

I know this problem well. The good news is, it’s one of the easiest personal stumbling blocks to overcome. In fact, you probably already do it, only with bad form. It’s a one sentence fix:

Hey, I was just reading that [someone/thing did something/said something]. What do you think about that?

Unless the other person is totally uninterested in having a conversation with you, a conversation will start immediately after you say this. If the other person is interesting, you may not even need to do much talking [and as an added bonus, the person who loves to hear themselves talk will instantly like you just for asking their opinion about something and then actually listening].

Easy. Conversation has started. Awkwardness avoided. When you get to that conversational lull, repeat. If you don’t have something else to bring up [really? Nothing?] you can just tweak whatever the original question was. i.e. Well sure, but what if X was Y.

Ideally though, you’ll insert personal stories, experiences, thoughts, and opinions to keep that original conversation flowing into new areas, where you can ask more questions.

So, get on your way to being less awkward and go start some conversations.

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On Saving Time

Treasuring the little time we have was not a new idea, even in Seneca’s day.  And, while there have been treatises more eloquently written, I haven’t seen any that drive the point home more succinctly and powerfully than Seneca.  For that reason, it’s best to excerpt his entire first letter to Lucilius:

CONTINUE to act thus, my dear Lucilius – set yourself free for your own sake; gather and save your time, which till lately has been forced from you, or filched away, or has merely slipped from your hands. Make yourself believe the truth of my words, – that certain moments are torn from us, that some are gently removed, and that others glide beyond our reach. The most disgraceful kind of loss, however, is that due to carelessness. Furthermore, if you will pay close heed to the problem, you will find that the largest portion of our life passes while we are doing ill, a goodly share while we are doing nothing, and the whole while we are doing that which is not to the purpose. What man can you show me who places any value on his time, who reckons the worth of each day, who understands that he is dying daily? For we are mistaken when we look forward to death; the major portion of death has already passed, Whatever years be behind us are in death’s hands.

Therefore, Lucilius, do as you write me that you are doing: hold every hour in your grasp. Lay hold of to-day’s task, and you will not need to depend so much upon to-morrow’s. While we are postponing, life speeds by. Nothing, Lucilius, is ours, except time. We were entrusted by nature with the ownership of this single thing, so fleeting and slippery that anyone who will can oust us from possession. What fools these mortals be! They allow the cheapest and most useless things, which can easily be replaced, to be charged in the reckoning, after they have acquired them; but they never regard themselves as in debt when they have received some of that precious commodity, – time! And yet time is the one loan which even a grateful recipient cannot repay.

You may desire to know how I, who preach to you so freely, am practising. I confess frankly: my expense account balances, as you would expect from one who is free-handed but careful. I cannot boast that I waste nothing, but I can at least tell you what I am wasting, and the cause and manner of the loss; I can give you the reasons why I am a poor man. My situation, however, is the same as that of many who are reduced to slender means through no fault of their own: every one forgives them, but no one comes to their rescue.

What is the state of things, then? It is this: I do not regard a man as poor, if the little which remains is enough for him. I advise you, however, to keep what is really yours; and you cannot begin too early.  For, as our ancestors believed, it is too late to spare when you reach the dregs of the cask./a Of that which remains at the bottom, the amount is slight, and the quality is vile.  Farewell

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Diamond Psychology

Most people are probably aware that diamonds aren’t particularly rare and that their price is mostly a function of cartel control over the supply (De Beers) and good advertising.  While this is true, the story behind it is fascinating (and well told by Edward Jay Epstein, recently republished by the Atlantic, 30 years after its original publication).  Even after consolidating nearly every aspect of the diamond trade, from mining to processing, to polishing, to sales, De Beers had a major problem: supply was far outpacing demand.

In Europe, where diamond prices had collapsed during the Depression, there seemed little possibility of restoring public confidence in diamonds. In Germany, Austria, Italy, and Spain, the notion of giving a diamond ring to commemorate an engagement had never taken hold. In England and France, diamonds were still presumed to be jewels for aristocrats rather than the masses. Furthermore, Europe was on the verge of war, and there seemed little possibility of expanding diamond sales. This left the United States as the only real market for De Beers’s diamonds. In fact, in 1938 some three quarters of all the cartel’s diamonds were sold for engagement rings in the United States. Most of these stones, however, were smaller and of poorer quality than those bought in Europe, and had an average price of $80 apiece. Oppenheimer and the bankers believed that an advertising campaign could persuade Americans to buy more expensive diamonds.

How do you pump up demand for neatly aligned carbon atoms?  First, you understand who you’re selling to, why they’d be interested in buying, and then you sell a story:

N. W. Ayer [De Beer’s ad agency] suggested that through a well-orchestrated advertising and public-relations campaign it could have a significant impact on the “social attitudes of the public at large and thereby channel American spending toward larger and more expensive diamonds instead of “competitive luxuries.” Specifically, the Ayer study stressed the need to strengthen the association in the public’s mind of diamonds with romance. Since “young men buy over 90% of all engagement rings” it would be crucial to inculcate in them the idea that diamonds were a gift of love: the larger and finer the diamond, the greater the expression of love. Similarly, young women had to be encouraged to view diamonds as an integral part of any romantic courtship.

Once the story took shape, De Beers started telling that story everywhere:

. . . the advertising agency [also] strongly suggested exploiting the relatively new medium of motion pictures. Movie idols, the paragons of romance for the mass audience, would be given diamonds to use as their symbols of indestructible love. In addition, the agency suggested offering stories and society photographs to selected magazines and newspapers which would reinforce the link between diamonds and romance. Stories would stress the size of diamonds that celebrities presented to their loved ones, and photographs would conspicuously show the glittering stone on the hand of a well-known woman.

The trend soon reversed, and diamond sales jumped.  When extensive mines found in Siberia threatened De Beers’ empire, what did they do?  They invited Russia into the cartel.  When those Russian diamonds turned out to be tiny?  They marketed diamonds based on cut, color, and clarity (instead of just on carat, as had been done up to that point).    All of this story-crafting worked:

By 1979, N. W. Ayer had helped De Beers expand its sales of diamonds in the United States to more than $2.1 billion, at the wholesale level, compared with a mere $23 million in 1939. In forty years, the value of its sales had increased nearly a hundredfold. The expenditure on advertisements, which began at a level of only $200,000 a year and gradually increased to $10 million, seemed a brilliant investment.

But this also presented a problem: 40 years of heavy sales meant that there were roughly 500 million carats of cut diamonds on fingers, wrists, necks, and in consumers’ safes around the world.  That was roughly 50 times the amount of diamonds mined by De Beers each year.  If even a small percentage of those diamonds ended up back on the market, prices would tank, or De Beers would be forced to buy and hold their own goods.  The solution?  Part of it was already underway: for years De Beers had been telling the public that “Diamonds are Forever”, not something you could simply sell if need be.  The other solution was market driven: nearly everything but extremely high end diamonds are sold at high markups, which means the places that make it easy for you to sell your diamonds offer just a pittance of what you paid for them.

The whole article is worth the read.

 

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