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The NY Times Celebrates the Tacit Boycott of Don Trump's New Hotel in Washington DC

Saturday, September 24, 2016 13:03

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The economics of boycotts is pretty straightforward. Customers who vote with their pocketbook and choose not to purchase a product can reduce the profits of their target if there is a consensus to boycott the “bad guy”. If there is a neutral economic agent who does not have a taste for dealing out such punishment (think of China purchasing resources from the “bad guy”) then the boycott won’t harm the “bad guy”. This is a prelude to discussing this NY Times Opinion Piece on the weak launch of Don Trump’s new hotel in Washington DC. She argues that Trump’s hotel is losing $ because of his Presidential campaign. Her argument is that people don’t want to be seen at the Trump hotel because this would be an implicit endorsement of his candidacy.

Worry they should, if Mr. Trump’s new hotel, which Mr. Trump himself opened last week, is any indication. The hotel is on Pennsylvania Avenue, a short walk from the White House, and to a lot of people, just walking through the door seems like a political act. Mr. Trump’s name festoons the key cards, the laundry bags, the bathrobes and slippers. It’s hard not to feel that a dollar spent there is a dollar for the Trump campaign.

“I don’t know who’s going to book it, because it’s so contentious,” a local convention planner said.

On Tuesday, the place seemed eerily empty. You could book a room for next weekend for less than $400. A week ago, the minimum rate was twice that.

The Trump International Hotel, Washington, D.C., occupies the Old Post Office, an 1899 Romanesque structure whose central carved-stone arch now carries a shiny gold Trump logo, like the one that appeared on the jumbotron behind Mr. Trump as he accepted the Republican nomination. Inside the cavernous atrium, there is overstuffed pastel upholstery, multiple mirrors and plentiful gilt.

I asked a waiter if the place was busy. “Not yet,” he replied. “But it’s going to be crazy if he wins. I mean, it’s going to be crazy no matter what. We are going to have, like, a thousand holiday parties booked in this place,” he said, sounding a bit like the nominee. Are all the good holiday party dates taken? “Not yet,” he said.

Source: http://greeneconomics.blogspot.com/2016/09/the-ny-times-celebrates-tacit-boycott.html

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