Wireless Communication

Posted by PITHOCRATES - December 18th, 2013

Technology 101

When a Current passes through a Wire it creates an Electromagnetic Field around the Wire

Wireless communication.  A pretty amazing technology.  Allowing ships at sea for the first time in history to communicate with people on land.  While at sea.  Using Morse code.  Those dots and dashes that take a little translation to understand.  But we could translate anything we said into Morse code.  Most people may even know the universal distress signal.  SOS (· · · – – – · · ·).  Which sent ships racing to the ship in distress.  Instead of simply disappearing from the face of the earth.  Something we owe a deep gratitude for to Nikola Tesla.  Or Guglielmo Marconi.  Depending on which side you’re on in the great patent dispute.  Was Tesla first?  Or was Marconi?  Suffice it to say they were both great inventors.  And the world is a better place because of them.

Electromagnetic field and waves.  Fascinating technology.  But one that is a little difficult to understand.  Because they’re invisible.  You can’t see them.  But we can use them to do incredible things.  If you enjoy using a smartphone you can thank electromagnetic field and waves.  For this technology is what makes wireless communication work.

When a current passes through a wire it creates an electromagnetic field around the wire.  Which can induce a current in an adjacent wire.  This is how transformers work.  By electromagnetically coupling one circuit with another.  Wireless radio transmission is similar.  Only the two circuits are pretty far apart from each other.  Being far apart, though, requires a lot of power.  And the further apart the two circuits are the more power they require.

A Radio Transmitter takes the Source Signal and Modulates it on the Carrier Frequency

When you tune into your favorite radio station you’re tuning into the carrier frequency of that station.  Which is just a powerful sinusoidal wave at one frequency they pump out on an antenna.  If you listened to just this carrier frequency you would hear a single, constant tone.  Sort of like the sound you hear on the television when they show a test pattern.  It’s not interesting or entertaining.  But it is powerful.  And the antenna they broadcast on can create one powerful electromagnetic field.  Such that the antenna on any radio receiver in or near the same city that radio transmitter is in can tune into that frequency and ‘hear’ it.  Basically with a tuner that allows only the station frequency you want to hear to pass.  While blocking the myriad of other carrier frequencies in the atmosphere.

These two antennas are the two circuits electromagnetically coupled together.  The transmitter is basically sending a current into the transmitter antenna to ‘vibrate the air’ while the receiver antenna ‘picks up those vibrations’ and induces an electric current.  And the more powerful the transmitter the farther you could pick up those ‘vibrations’.  Ships at sea had powerful transmitters.  Powered by large generators driven by their powerful steam engines.  Which allowed these signals to travel from the middle of the Atlantic to a shore receiver.  But if you did not have access to a power source you could ‘plug into’ you greatly reduced the effective range.  Because you had to use batteries.  Walkie-talkies kids play with have a small battery.  So they can’t be too far from each other to talk to each other.  The first light-weight solid state radio the Army used—AN/PRC 77 (aka ‘prick-77’)—had a much greater range.  About 5 miles.  And a much, much heavier battery.  It was so heavy that soldiers wore it like a backpack.  Which was another reason to not want to carry it.  The other being that the enemy tried to shoot the people with the radio.

Of course, these radios just didn’t transmit those carrier frequencies.  For that wouldn’t be any fun for kids.  Or useful for soldiers in combat.  And it’s just not pretty music.  No, it’s what we ‘add to’ the carrier frequency that is fun, useful and pretty.  A radio transmitter takes the source signal (voice, music, data, etc.) and modulates it on the carrier frequency.  To better understand what this means without any technical explanation listen to the Rod Stewart song Mandolin Wind.  After he sings, “I don’t have much.  But what I’ve got is yours.  Except, of course, my steel guitar.  Ha, ’cause I know you don’t play.  But I’ll teach you one day.  Because I love ya” there is a brief steel guitar solo (starting at 2:36 on the above link).  It’s a rapid picking of strings as he slowly fingers different frets.  Changing the frequency of the rapidly picked strings.  Reproducing the ‘slower’ melody on the ‘faster’ vibrating strings.  This is basically what modulation is.  Imprinting a low-power signal (voice, music, data, etc.) onto a high-power signal (a carrier frequency).  The receiver then demodulates the original signal from the carrier wave.  So we can hear or use it.

Having Cellular Towers all over the place Greatly Reduces the Amount of Power our Mobile Devices Need

The AN/PRC 77 and walkie-talkies are half-duplex devices.  They use the same carrier frequency to transmit and receive.  So only one person can talk at a time.  Which required people to say ‘over’ when they finished what they were saying to let the other person know they could start talking.  When the person said all he or she was going to say they said ‘out’ to let the other person know they were done with this communication (they NEVER said ‘over and out’.  That was only in movies with poor military consultants).  It was a great system.  Far better than earlier battlefield communications.  Such as the telegraph.  Or the messenger.  It changed the way we fought wars.  But it didn’t translate well to cellular phones.  Because this isn’t the way we talk in social situations.

Also, people just aren’t going to throw something heavy like an AN/PRC 77 on their back when they leave the house.  For the thing weighed nearly 14 pounds.  Because of the batteries.  And what would this funny way of talking and this heavy weight give you?  The ability to talk to someone 5 miles away.  There’s a reason why people don’t use these half-duplex devices for our mobile telephones.  Because there’s something better.  Cellular technology.  Where they made the use of mobile devises more user-friendly by greatly expanding the cellular infrastructure.  That thing our mobile devices talk to.  Instead of requiring a powerful transmitter and receiver (and a large antenna) in our mobile phones we built cellular towers all over the place.  So we are no further than 5 miles (approximately) from a cellular tower.  Which is all the distance our wireless signal needs to travel.  For once it reached a tower your call switched over to the landline system.  And could reach anyplace in the world.  Even to another mobile device.  As long as it is within 5 miles (approximately) of another cellular tower.

Having cellular towers all over the place greatly reduces the amount of power our mobile devices need.  Allowing a small and very light battery to power them.  Making these mobile devices very light weight.  In fact, the batteries are so light that these devices can transmit and receive on two carrier frequencies.  Allowing full-duplex communication.  Where both people can talk at the same time.  Just like in casual conversation.  They are so user friendly and convenient that today many people use their mobile phone far more than any landline telephone.  Something that would no doubt bring great satisfaction to Nikola Tesla and Guglielmo Marconi if they were alive today.  Who have given us the gift of wireless communication.  Well, at least one of them.



Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

The Roaring Twenties and the Stock Market Crash of 1929

Posted by PITHOCRATES - April 23rd, 2013

History 101

The Roaring Twenties gave us the Modern World and one of the Greatest Economic Booms in History

When the steam engine hit the American farm it increased farm production.  By mechanizing the farm fewer farmers could farm more land.  Allowing American farmers to produce bumper crops.  Creating a boom in farm exports.  Especially during World War I.  As Europeans farmers exchanged their plows for rifles Europe had no one to grow their food.  So even though the mechanization of the American farm caused crop prices to fall the increase in sales volume brought in more farm revenue.  Life was good for the American farmer.  For businesses manufacturing all of that mechanized farm equipment.  And the banks making loans to farmers so they could mechanize their farms.

The1920 presidential election pitted a progressive Democrat against a conservative Republican.  The progressive promised to raise tax rates to pay down the war debt.  Andrew Mellon, Warren Harding’s treasury secretary, found that high tax rates were counterproductive.  They actually reduced tax revenue.  As wealthy people invested their money out of the country to avoid high tax rates.  So when Harding won the election they cut tax rates.  With no need to shelter their income the wealthy invested their money in the United States.  Pouring their money into the domestic economy caused great economic activity.  Great returns on investment.  And great income tax revenue.  The wealthy paid almost three times as much in tax revenue.  While the tax burden on the poor fell.  And the national debt fell by one third.

Harding died in office but Calvin Coolidge continued his policies.  He slashed government spending along with those tax cuts.  Pulling the government out of the private sector economy.  And the private sector economy responded.  Creating a lot of jobs.  Unemployment fell to as low as 2%.  And living standards soared.  For everyone.  Not just those in the unions.  In fact, this general rise in living standards weakened the unions.  For you didn’t need to belong to a union to live well.  It was the beginning of the modern world.  Brought about by a burst of innovation and manufacturing that lasted 8 years.  One of the greatest economic booms in history.  Henry Ford’s moving assembly line made the car affordable for the working man.  Auto registrations rose from 9 million in 1921 to 23 million by 1929.  An increase of 156%.  And keeping pace with the auto manufacturers were their suppliers.  Metal, steel, paint, lumber, leather, cotton, glass, rubber, etc.  And especially the oil industry.  That made lubricating oils and greases.  And the gasoline that powered all of these cars.  With so many jobs per capita income increased from $522 in 1921 to $716 in 1929.  An increase of 37%.  With people earning more home ownership soared.  And this boom in economic activity didn’t end there.

Herbert Hoover thought Government could better Manage the Economy than Messy Laissez-Faire Free Market Forces

Electric utilities were bringing the new electric power to industrial users and private homes during the Twenties.  Industry was using 300% more electric power than they were in 1899.  And it changed home life.  As electric clothes irons, vacuum cleaners, clothes washers, toasters and refrigerators became common household items by the end of the Twenties.  Households that had a telephone increased by 51% during the Twenties.  People were watching movies.  And saw the first talkies in the Twenties.  The radio also became a household fixture with some 7.5 million radio sets sold by 1928.   The economy was booming.  The middle class was expanding.  Consumer prices fell due to increases in productivity giving people more disposable income than they ever had before.  Causing an increase in consumer spending.  Allowing 1 in 5 Americans to own a car.  And increasing the number of people who could afford to fly from 40,000 in 1920 to 417,000 in 1930.  An increase of 943%.  So Americans were buying a lot.  But they were also saving a lot.  And investing.  Some 28% of American families owned stock.  Something once the exclusive privilege of the rich.  Wage earners were even buying life insurance policies to provide for their families in the event of their death.  Things were happening in the United States during the Twenties.  And the innovation and economic tsunami coming out of America had those in Europe worried.  So worried that they were discussing forming a United States of Europe to compete with the American system.

But all was not good.  During the Twenties those Europeans traded their rifles back for plows.  Reducing the export market for American farmers.  And when European governments threw up tariffs on America farm goods that export market disappeared.  Putting great surpluses into the American market.  Causing crop prices to fall further.  Crashing farm incomes.  Making some farmers unable to service their debt for all of that mechanized equipment they financed.  And when they defaulted on their loans en masse banks in the farming regions failed.  And when they did the money supply contracted.  The Federal Reserve made no effort to stop this contraction.  Which had a cooling effect.  Tapping the breaks on an expanding economy.

Coolidge chose not to run for a second term.  His successor, Herbert Hoover, was a progressive Republican.  And was everything Coolidge was not.  Hoover favored a big government perfecting the country.  He was a professional bureaucrat.  He loved bureaucracies.  And he loved paperwork and forms.  Which he wanted to bury private business in.  He thought the government could manage the economy better than messy laissez-faire free market forces.  Those very forces that created the Roaring Twenties.  He wanted to partner government with business.  With the emphasis on government.  (As president he increased the size of the Commerce Department and deepened its reach into the private sector economy.)

The Smoot-Hawley Tariff caused Investors to Dump their Stocks causing the Stock Market Crash of 1929

The Federal Reserve misjudged the stock market.  They thought it was nothing but speculation.  Citing radio maker RCA’s stock price’s meteoric rise.  So the Fed tapped the breaks further to cool this ‘speculative’ fervor.  Further contracting the money supply.  But this wasn’t speculation.  The rate of growth in radio sales actually was greater than the rate of growth in the stock price.  Making it more likely that the stock was undervalued.  Not overvalued.  But the Fed went ahead and contracted the money supply anyway.  Making it difficult for business to get funding for continued growth.  Despite there still being people out there who hadn’t bought a car, a house, electric appliances or a radio yet.  And wanted to.

In 1929 a new tariff bill was moving through Congressional committees.  The Smoot-Hawley Tariff.  Which would raise taxes on imports by up to 30%.  Which would greatly increase the cost of business.  Because most if not all of American manufacturing used some imported raw materials.  Which would increase their selling prices.  Making them less competitive.  Worse, if the U.S. slapped tariffs on imports it was certain their trading partners would respond with some retaliatory tariffs.  Which would just shut down their export markets.  Much like those tariffs shut down the export markets for American farmers.  Then in the autumn of 1929 the Smoot-Hawley Tariff passed critical votes in committee.  Sending the tariff bill on its way to becoming law.  This was not good news for investors.

It was all too much.  The coming expansion of government regulation over the private sector economy.  Higher taxes to pay for this bigger government.  The contraction of the money supply.  And then the Smoot-Hawley Tariff.  Investors could read the writing on the wall.  None of this would be good for business.  It would just smother the economic growth of the Twenties.  For if you increase businesses’ costs and decrease their markets you will slash their profits.  Which will reduce the value of these companies.  And reduce the value of their stock prices.  As investors live by the adage of “buy low, sell high” they’d want to sell those stocks fast before the Smoot-Hawley Tariff sent their prices into a tailspin.  Which they did.  Causing a great selloff starting in October.  That led to the Stock Market Crash of 1929.

Now contrast that with a true speculative bubble.  The dot-com bubble.  Where investors poured money into these dot-com companies eager to find the next Microsoft.  Aided and abetted by the Federal Reserve that was keeping interest rates artificially low.  To encourage all sorts of investment.  Including ones driven by irrational exuberance.  So investors were bidding those stock prices into the stratosphere.  For companies that had no profits.  For companies that didn’t have a product or service to sell.  But these investors were looking with great anticipation at their future profits.  Even though they really didn’t understand the Internet.  They just knew that computers were involved.  Which is what made Microsoft rich.  Producing software to run on computers.  And every investor was sure their dot-com was going to produce something to run on computers.  Making that company rich.  And their investors.  But when the start-up capital ran out there were no earnings to replace it.  And the speculative bubble burst beginning on March 11, 2000.  And those highly overvalued stock prices began to fall back to earth.  With the tech-laden NASDAQ losing 78% of its value before it was all over.  Now THAT is a speculative bubble that the Federal Reserve should have tried to prevent.  Not the economic boom of the Twenties where companies were building real things that real people were buying.



Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

FT127: “Obamacare is a lot like the Smoot-Hawley Tariff in terms of scaring the bejesus out of businesses.” -Old Pithy

Posted by PITHOCRATES - July 20th, 2012

Fundamental Truth

The Roaring Twenties gave us Automobiles, Electric Power, Radio, Movies, Telephones and Air travel

In 1921 there were 9 million automobile registrations.  That jumped to 23 million by 1929.  An increase of 156%.  That’s a lot more cars on the roads.  In the Roaring Twenties we made cars out of steel, paint and glass.  Inside we fitted them with lumber, cotton and leather.  We put rubber tires on them.  And filled their fuel tanks with gasoline.  So this surge in car ownership created a surge in all of these industries.  Extraction of raw materials.  Factories and manufacturing plants to build the equipment to extract those raw materials.  As well as the machinery to build these automobile components.  And the moving assembly lines in assembly plants to assemble these automobiles.  The plants, warehouses and automobile dealers created a surge in the construction industry.  And all the industries that fed the construction industry.  Including the housing industry to house all these gainfully employed workers.

And this was just the auto industry.  Which wasn’t the only industry that was booming during the Roaring Twenties.  Thanks to the hands-off government policies of the administrations of Warren G. Harding and Calvin Coolidge businesses introduced us to the modern world.  Electric power came into its own.  By 1929 about 80% of all installed horsepower was electrical.  And it entered our homes.  Electric lighting and electric appliances.  Vacuum cleaners.  Washing machines.  Refrigerators.  All of this required even more raw material extraction from the ground.  More manufacturing equipment and plants.  More wholesale and retail construction.  And more housing to house all of these workers earning a healthy paycheck.

And there was more.  The Roaring Twenties gave us broadcast radio in our electric-powered homes.  Free entertainment, sports broadcasts and news.  Paid for by the new industry of advertising.  Competing with radio was another growing industry.  Motion pictures.  That by the end of the Roaring Twenties were talkies.  And speaking of talking there was a lot of that on the new telephone.  In our homes.  Interconnecting all of these industries was ship, rail and truck transportation.  Even air travel took off during the Twenties.  More raw material extraction.  More equipment.  More manufacturing.  More construction.  And jobs.  More and more jobs.  The hands-off government policies of the Harding and Coolidge administrations created the great Bull Market of the Twenties.  Explosive economic activity.  Real economic growth.  Creating low-cost consumer goods to modernize America.  Increase her productivity.  Making her the dominant economic power in the world.  The Europeans were so worried about America’s economic prowess that they met in 1927 at the International Economic Conference in Geneva to discuss the American problem.  And how they were going to compete with the American economic juggernaut.  Because the free market capitalism of the New World was leaving the Old World in the dust.

Herbert Hoover was a Republican in Name Only that FDR once Admired but Calvin Coolidge Despised

This was real economic growth.  It was not speculation.  This wasn’t artificially low interest rates creating an asset bubble.  Working Americans bought homes and cars.  And furnishings.  Businesses produced these to meet that demand.  They had growing sales.  And growing profits.  Which increased their stock prices.  Investors wanted to own their stocks because these companies were making money.  And with the world modernizing these stock prices weren’t going anywhere but up in the foreseeable future.  Unless something changed the business environment.  Well, something did.

Despite the roaring economy Calvin Coolidge did not run for a second term.  Which was a pity.  For his successor, Herbert Hoover, was a Republican in name only.  He was a big time progressive.  Who wanted to use the power of government to make the world perfect.  A devout believer in the benevolence of Big Government.  He added about 2,000 bureaucrats to the Department of Commerce.  FDR at one time admired him (before he ran against him for president).  Coolidge despised him.  Under Hoover the federal government intruded into the private sector.  His economics were Keynesian.  He, too, worshipped at the altar of demand.  He believed high wages were the key to prosperity.  For people with more money buy more.  And all that buying created demand for businesses to meet.  Even during a recession he believed wages should not fall.  Despite the fact that’s what recessions do on the back side of the business cycle.  Lower prices and wages.  And lay off people.

By the Twenties American farmers were mechanizing their farms.  Allowing them to grow more food than ever before.  Agriculture prices fell.  At first this wasn’t a problem as there were export markets for their bumper crops.  Thanks to a war-devastated Europe.  But eventually the European soldiers returned to the farm.  And the Europeans didn’t need the American food anymore.  Even places tariffs on U.S. imports to their countries to help their farmers get back on their feet.  Add in a bad winter that killed livestock.  Some bad insect infestation in the summer.  Add all this together and you had the beginning of the great farm crisis.  Debt defaults.  Bank failures.  And the contraction of the money supply.  Which the Federal Reserve (the Fed) did not step in to compensate for by expanding the money supply.  Which was sort of their purpose for being in existence.  As there was less money to borrow business could longer borrow to continue their growth.  Because of the time factor in the stages of production to expand production required borrowing money.  To make matters worse the Fed was actually pulling more money out of circulation.  Because they looked at the rising stock prices and concluded that speculators were borrowing money to invest in the stock market.  Thus inflating stock prices.  But it wasn’t speculators running up those prices.  It was an economic boom that was running up those stock prices.  Until the government put a stop to that, at least.

Bad Government Policy didn’t Create the Roaring Twenties but Bad Government Policy ended Them

The Smoot-Hawley Tariff was close to becoming law in the fall of 1929.  It was moving through committees on its way to becoming law.  This tariff would raise the tax on all imports by about 30%.  The idea was to protect domestic supplies and manufacturers.  But even in 1929 it was a global economy.  A lot of imports entered the stages of production.  Which meant costs would be increasing throughout the stages of productions.  Greatly increasing the input costs of all those businesses enjoying those high stock prices.  Which would raise their prices (to cover those higher input costs).  Reducing their sales.  And slashing their profits.  Add this to the contracting money supply and it painted a very bleak picture for business.

With demand sure to fall due to a massive new tariff that was about to become law businesses cut back.  To get rid of what was about to become excess capacity.  For they were smart.  And understood what affected their businesses.  And you know who else were smart?  Investors.  Who looked at this tariff and saw a locomotive engineer about to slam on the brakes.  And if Congress passed this into law after 1928 Coolidge wasn’t going to be there to veto the law.  So they all came to the same conclusions.  The bull market was coming to an end.  And they wanted to sell their stock to lock in their stock gains.  Which caused the great sell-off of 1929.  And the stock market crash.  Starting the Great Depression.

People still debate the cause of the Great Depression.  A popular argument is that greedy investors caused it by speculating in the stock market.  Or that greedy businesses out-produced demand.  But the economics of the Roaring Twenties don’t support this.  This wasn’t people buying big houses because interest rates were low.  This was the electrification of America.  Cars.  Telephones.  Radio.  Movies.  Air travel.  This was broad and real economic growth.  Bad government policy didn’t create it.  But bad government policy ended them.  And it was the expectations of even worse government policies that yanked the rug out from underneath the economy.  By causing a business contraction and stock market sell-off.  Much like Obamacare is doing to businesses today.  Scaring the bejesus out of them.  For they have no idea what their future costs will be under Obamacare.  So they are doing their best to prepare for it.  By not expanding their businesses.  By not hiring anyone.  And sitting on their cash.  To prepare for the worst.  Much like businesses did in 1928.  Which explains why the Great Recession lingers on.



Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Music, Radio Transmitters, Radio Receivers, CD Players, Compression, MP3 Players, Internet, YouTube, Live Streaming and Music on Demand

Posted by PITHOCRATES - February 29th, 2012

Technology 101

The Roaring Twenties brought Electrical Power and Broadcast Radio into our Homes

We take music for granted today.  We can listen to pretty much anything we want to.  At any time.  In any place.  In the home.  In the car.  At the gym.  It’s nice.  You can listen to some of the most beautiful music at your convenience and leisure.  It wasn’t always like this, though.  During the time Edvard Grieg composed his masterpieces few could listen to them.  Unless you attended a live performance.  Which weren’t that readily available.  Unless you lived in a big city.  Where a symphony orchestra could include some of his music in a performance.  But you had to listen to what they played.  And what they played was the only music you were familiar with.  Unless you had a friend with a piano.  Who could read sheet music.  And was a concert-level pianist.  Again, something not that common.

But today you can click on a computer link and listen to almost any obscure piece of music there is.  From Grieg’s beautiful Bådnlåt (At the Cradle), lyric piece for piano, Op. 68/5.  To something really esoteric like Sparks’ As I Sit Down To Play The Organ At The Notre Dame Cathedral.  You can listen to them.  You can buy them.  Download them to a portable MP3 player.  And take them anywhere.  Just imagine trying to do this in 1899.  Going to the lake.  And wanting to listen to Grieg’s new lyric piece for piano.  Opus 68.  Number 5.  At the Cradle.  Unless you took a piano and a concert-level pianist with you that just wasn’t going to happen.  But this all changed.  Beginning around the dawn of the 20th century.

Nikola Tesla had recently won his war with Thomas Edison.  His AC power replaced Edison’s DC power as the standard.  And in the 1920s we were electrifying the country.  We began to generate and transmit AC power across the land.  To businesses.  And to homes.  Where we could plug in the new electrical appliances coming to market.  We were working on another new technology during this time.  Something that could plug in at home to the new electrical power.  The radio.  This technology had something to do with electromagnetic fields and waves.  Transmitted between antennas.  One on a transmitter.  And one on a receiver.  As long as the transmitter and the receiver were tuned to the same frequency.  The first use of this new technology was in the form of a wireless telegraph.  Which few people had in their homes.  These were more useful to communicate with others who were not connected by telegraph lines.  Like ships at sea.  Where we sent Morse code (those dots and dashes that spelled words).  Which worked well.  As long as all the ships didn’t tried to communicate at the same time on the same frequency.  But transmitting speech or music was a different manner.  Because everyone talks more or less in the same band of frequencies.  And notes played on one violin tend to play at the same frequency on another violin.  So if some radio transmitters broadcasted different concerts at the same time you wouldn’t hear a nice concert on your radio.  You’d hear a cacophony of noise.  To get an idea what that would sound like open up three or four browser windows on your computer.  And play a different song on YouTube in each.  What you hear will not be music.  But noise.

In the Eighties we traded our Phonograph Needles for Laser Beams in our CD Players

Of course, this didn’t stop the development of commercial broadcast radio.  For we tune radio transmitters and radio receivers to the same resonant frequency.  The transmitter transmitting at one frequency all of the time. While the radio receiver could tune in to different frequencies to listen to different radio broadcasts.  When you turned the radio tuning dial you changed what resonant frequency your receiver ‘listened’ to.  Which was basically a filter to block all frequencies but the tuned frequency from entering your radio.  We call that frequency the carrier signal.  Typically just a plain old sinusoidal wave form at a one frequency that we imprint the information of the speech or music on.  The transmitter takes the music waveform and modulates it on the carrier signal.  Then broadcasts the signal on the broadcast antenna.  The receiver then captures this signal on its antenna.  And demodulates it.  Pulling the musical imprint from the carrier signal.  And restoring it to its original condition.  Which the radio than amplifies and sends to a speaker.  I left some steps out of the process.  But you get the gist.  The key to successful broadcast radio was the ability to transform the source signal (speech or music) into another signal.  One that we could transmit and receive.  And transform back into the source signal.

The Roaring Twenties was a Neil Armstrong moment on earth.  It was one giant leap for mankind.  For it was in this decade that the modern world began.  Thanks to Nikola Tesla and his AC power.  Which allowed us the ability to plug in radios in our homes.  And power the great radio transmitters to get the signal to our houses.  Tesla, incidentally, created radio technology, too.  Well, Tesla, and Guglielmo Marconi.  (Patent disputes flared between these two greats about who was first.)  Great technological advancement.  Created during a time of limited government and low taxes.  That unleashed an explosive amount of creativity and invention.  The Eighties was another such decade.

The Eighties launched the digital age.  The world of bits and bytes.  1s and 0s.  Digital watches.  Clocks.  Calculators.  PCs.  And, of course, our music.  For the Eighties gave us the compact disc.  The CD.  Music that didn’t wear out like our vinyl records.  And didn’t pop or hiss with age.  Because a CD player didn’t have a phonograph needle.  That rode the groves on our vinyl records.  It had something far more futuristic.  A laser beam.  That reads information encoded into the CD.  Information encoded onto a reflective layer through a series of pits.  During playback the laser either reflects or doesn’t reflect.  This information is than processed into a series of 1s and 0s.  Then converted into the analog waveform of the source material.  And becomes music again.

The Eighties gave us the Digital Age which led to the Internet and Music on Demand

This process is similar to the process of broadcast radio.  Not in any technological way.  But by changing a source signal into something else.  And then converting it back again.  In the case of the CD we sample an analog signal (i.e., an audio recording).  By taking ‘snapshots’ of it at regular intervals.  Then convert these snapshots into a digital format.  And then transfer this digital information to the reflective layer on a CD.  Those 1s and 0s.  When we play it back the laser reads these 1s and 0s.  Then converts these digital snapshots back into the original audio signal.  Sort of like modulating and demodulating a signal.  Only instead of modulating we’re converting from analog to digital.  Then vice versa.

The quality of the digital format depends on how much information each snapshot contains.  And the interval we sample them at.  Larger chunks of information taken in short intervals contain a lot more information.  And improve the quality of the sound.  But it will also take up a lot of space on those CDs.  Limiting the number of songs we can encode on them.  Which lead to compression.  And MP3s.  Which worked on the premise that there’s a lot of music in music.  But we don’t necessarily hear all of that music.  Some sounds mask out other sounds.  Certain frequencies we barely hear.  So while the CDs tried to reproduce the music as faithfully as possible, we learned that we could discard some of the information in the music without reducing the quality of the music much.  This saved a lot of space on CDs and portable MP3 players.  Allowed faster downloads on the Internet.  And live streaming.

The Roaring Twenties changed our world.  Modernized it.  And gave us many things.  Including broadcast radio.  And music in our homes we never had before.  And the Eighties also changed our world.  Further modernizing it.  Giving us the digital age.  That led to the Internet.  And music on demand like we never had before.  Where we can listen to anything.  No matter how obscure.  It’s now all available at our fingertips.  To listen online.  Or to buy and download to a portable device.  From Grieg to Sparks.  And everything in between.



Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The Great Depression

Posted by PITHOCRATES - December 20th, 2011

History 101

The  Roaring Twenties were a Time of Unprecedented Innovation and Manufacturing

The Roaring Twenties were good times.  Kicked off by the Warren Harding administration.  Thanks to one of the few honest guys in his administration besides Harding.  Andrew Mellon.  Secretary of the treasury extraordinaire.  Some say the best secretary of the treasury since our first.  Alexander Hamilton.  High praise indeed.

So what did Mellon do?  He did some research that showed rich people paid less in taxes the higher the tax rates were.  The higher the rate the less they invested in plant and equipment in America.  Instead they invested their money out of the country.  In other countries’ plant and equipment.  So Mellon was a tax-cutter.  And that was his advice to Harding.  And that’s what Harding did.  And Calvin Coolidge continued.  Kept taxes low.  And kept government out of the business of business.

And how business responded.  The 1920s were a time of unprecedented innovation and manufacturing.  Low taxes, little government spending and limited government produced record employment.  Record upward mobility.  And record per capita income.  Gains in the decade touched 37%.  How?  I’ll tell you how.

The auto industry was booming thanks to Henry Ford’s moving assembly line.  Everyone was driving who wanted to drive.  The car companies sold one car for every 5 people.  This production created a boom in other industries to feed this industry.  And cars did something else.  They gave people mobility.  And opportunity.  People left the farms in droves and drove to better jobs.  Which didn’t hurt the farmers in the least as mechanization on the farm put more land under cultivation with fewer people.  Housing and cities grew.  Radio debuted.  And radio advertising.  Motion pictures went from silent to talkies.  Telephones became more common.  New electric utilities brought electricity to homes.  And new electric appliances filled those homes.  Including radios.  New electric motors filled our factories, increasing productivity and slashing consumer prices.  More people than ever before flew.  An increase of nearly 1000%.  It’s nowhere near today’s number of flyers but it was a reflection of the new industrial dominance of the United States.  There was nothing we couldn’t do.  And Europe was taking notice.  And not liking what they saw.  And talked about a European union to compete against the Americans.

Businesses scaled back Production in Anticipation of the Smoot Hawley Tariff Act

So the spectacular economic growth of the Roaring Twenties was solid growth.  It wasn’t a bubble.  It was the real deal.  Thanks to capitalism.  And a government willing to leave the free market alone.  It was so dominating that the Europeans wanted to stop it anyway they could.  One way was protective tariffs on farm imports.

American farm exports boomed during World War I.  Because most of Europe’s farmers were busy fighting.  With the end of the war the Europeans went back to their farms.  Which reduced the need for American farm imports.  And the tariffs compounded that problem.  To make things worse, prices were already falling thanks to the mechanization of the American farm.  Producing bumper crops.  Which, of course, dropped farm prices.  Good for consumers.  But bad for farmers.  Especially with the Europeans shutting off their markets to the Americans.  Because they paid for a lot of that land and mechanization with borrowed money.  And this debt was getting harder and harder to service.  Throw in some weather and insect problems in some regions and it was just too much.   Some farms failed.  Then a lot.  And then the banks that loaned money to these farms began to fail.

We created the Federal Reserve to increase the money supply to keep pace with the growing economy.  By making money cheap to borrow for those businesses trying to expand to meet demand.  They weren’t exactly doing a stellar job, though, in keeping pace with this economic expansion.  And when the bank failures hit the money supply contracted.  Thanks to fractional reserve banking.  All that money the banks created simply disappeared as the banks failed.  Starving manufactures of money to maintain growth to meet demand.  Things were getting bad around 1928.  The Fed did not intervene to save these banks.  Worried that investors were the only ones borrowing money for speculation in the stock market, they shrunk the money supply further.  About a third by 1932.  Manufacturers had no choice but to cut production.

While businesses were dealing with a shrinking money supply they had something else to worry about.  Congress was moving the Smoot-Hawley Tariff Act through congressional committees in 1929 on its way to becoming law in 1930.  This act would add a 30% tax on most imports.  Meaning that the cost factories paid for raw materials would increase by up to 30%.  Of course, sales prices have to include all costs of production.  So sales prices would have to increase.  Higher prices mean fewer sales.  Because people just can’t afford to buy as much at higher prices.  Businesses knew that once the tariff was passed into law it would reduce sales.  So they took preemptive steps.  And scaled back production for the expected fall in sales.

It was Government Meddling that Turned a Recession in the Great Depression

This brings us to the stock market crash.  The Roaring Twenties produced huge stock market gains as industry exploded in America.  Things grew at an aggressive pace.  Stock prices soared.  Because the value of these manufacturers soared.  And investors saw nothing to indicate this growth was going to stop.  Until the contraction of the money supply.  And then the Smoot-Hawley Tariff Act.  Not only would these slow the growth, they would reverse it.  Leading to the great selloff.  The Great Crash.  And the Great Depression.

As feared the Europeans responded to the Smoot-Hawley Tariff Act.  They imposed tariffs on American imports.  Making things worse for American exports.  Then President Hoover increased farm prices by law to help farmers.  Which only reduced farm sales further.  Then the banking crisis followed.  And the Fed did nothing to help the banks.  Again.  When they did start helping banks in trouble they made public which banks were receiving this help.  Which, of course, caused further bank runs as people hurried to get their money out of these troubled banks.  Tax revenue plummeted.  So Hoover passed a new sales tax to raise more revenue.  Which only made things worse.

Hoover was a Republican.  But he was a Big Government progressive.  Just like his successor.  FDR.  And all of their Big Government Keynesian solutions only prolonged the Great Depression.  It was government meddling that turned a recession into the Great Depression.  And further government meddling that prolonged the Great Depression.  Much of FDR’s New Deal programs were just extensions of the Hoover programs.  And they failed just as much as they did under Hoover.  The Great Depression only ended thanks to Adolf Hitler who plunged Europe back into war.  Providing an urgency to stop their government meddling.  And to let business do what they do best.  Business.  And they did.  Building the arsenal that defeated Hitler.



Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,