Personal and Impersonal

The lead story in the Money and Investing section of the Wall Street Journal had an ominous headline that immediately caught my attention. It didn’t rise to the level of war and peace issues or life and death issues but for me it mattered tremendously. The headline stated “Chocolate Prices Soar in Dark Turn” and the article focused on two key factors responsible for the substantial increase in chocolate/cocoa prices. The first reason for the price increase is weather related and caused by dry weather reducing the harvest. The second is changing taste with more consumers developing a taste for dark chocolate in place of milk chocolate. So, in summary the price increase is related to both supply and demand factors; over time the supply issues will likely improve while the increased demand could continue (my prediction) or moderate.

Under full disclosure, I have been a long time chocolate fan and my preference has always been for dark chocolate, typically chocolate that contains 70% or slightly more cocoa solids. Milk chocolate does remind me of my childhood. The taste is milder and creamier and if there are nuts or crisps included, those flavors are more prominent. But I prefer good taste now to reminiscing; I do buy milk chocolate now and then but never get the satisfaction that a good piece of dark chocolate provides.

Consumer price index/cost of living increases are often difficult concepts for college students (and others) to relate to. If what triggered the increase has no direct tie to them or their families, the concept seems separate from their reality and not particularly meaningful. My response in class has been to assign students to develop their own consumer price index. Students put together their own market basket based on their own regular expenditures and track cost increases for that market basket. They also note whether increases in costs trigger substitutions of one product for another. For example, the increase in chocolate prices could trigger substituting milk chocolate for dark chocolate since the price increases are more moderate for milk chocolate, or could trigger substituting vanilla or butterscotch for chocolate. For some, the level of satisfaction wouldn’t change with this substitution; for others, like me, the thought of these substitutions is depressing.

An individual’s consumer price index is an effective educational tool for increasing comprehension of a price index. The next challenge is to demonstrate that increases in the national or regional CPI which don’t directly impact you are still extremely important. Often, if it doesn’t touch you directly, it doesn’t seem to matter. However, increases in health care costs now may not have an immediate or short term impact your cost of living. You employer may cover these increases or your health care plan may have short term fixed monthly payments. Increases in gas prices, may not short term affect a mass transit rider. Even if these increases aren’t personal for you, it pays to be fully informed and plan for the future impact.

It is likely that I will adjust to the changing chocolate prices by increasing my expenditures for chocolate. It is also clear to me that we should be increasing economic literacy at all levels.

Tis the Season

It is typical at the end of both the fall and spring semesters that there are extra meetings as every committee and aspect of University governance does all it can to complete the semester’s agenda.  And, of course, the tempo in courses is similar; as hard as we try to maintain an even pace in our courses, very often we accelerate at the end to cover all the material that should be covered.

At the end of fall semesters there is another happening that coincides with the end of the semester and that’s the holiday parties that inevitably take place this time of year.  For me this cycle of parties begins this week with the annual University alumni holiday party that takes place every year in Manhattan.  This party is usually followed by the University Holiday Party for all employees as well as various school, college, office, and related organization’s holiday parties.

There are individuals I work with that love this cycle of holiday parties and there are those that have no use for these events. After decades in higher education and decades of attending these events, where am I on the spectrum of party love/hate relationships.  I started my career as a fan, and yes, after all these decades I am still a fan.  I thoroughly enjoy attending these events.  Why is that?  And why do I not have this feeling of diminishing returns with each additional party?  The reason is simple.  I get a chance to talk to people I don’t normally see or get an opportunity to talk with.  At the alumni party, I am certain that there will be one or more of my former students, students I may have had in class decades ago.  I love having the opportunity to reconnect and get caught up on what they have been doing.  Similarly, I know many of the student leaders that have been active over the decade; with certainty, some of them will attend.  There are other alums that I don’t know who are interested in  getting caught up on what has been happening at the University; we have a lot going on in our efforts to enhance Hofstra’s growing reputation and I love to talk about what’s new.  Even the ride into this party, where the provost’s office and the deans go together is a chance to socialize in a way we don’t normally do.

I have the same feeling about the University Holiday Party.  Though there is a large percentage of the Hofstra community that I interact with continuously, there is also a large percentage that I rarely see.  All these individuals are crucial to the well being and smooth operation of Hofstra.  I love getting caught up at the University Holiday party.  I love reconnecting with colleagues and I love the holiday spirit.

Is there anything about these parties that I don’t like?  There is and it’s the tempting extra calories.  I can resist most and just spend my time sipping club sodas.  But if there is a chocolate dessert as part of the offerings, a club soda doesn’t do it.  In those cases I try the chocolate and if it is good, I try it again.  Good chocolate enhances a good holiday party; it’s a shame it enhances the waist line at the same time.