10 Jul 2014 etbe   » (Master)

Taxing Inferior Products

I recently had a medical appointment cancelled due to a “computer crash”. Apparently the reception computer crashed and lost all bookings for a day and they just made new bookings for whoever called – and anyone who had a previous booking just missed out. I’ll probably never know whether they really had a computer problem or just used computer problems as an excuse when they made a mistake. But even if it wasn’t a real computer problem the fact that computers are so unreliable overall that “computer crash” is an acceptable excuse indicates a problem with the industry.

The problem of unreliable computers is a cost to everyone, it’s effectively a tax on all business and social interactions that involve computers. While I spent the extra money on a server with ECC RAM for my home file storage I have no control over the computers purchased by all the companies I deal with – which are mostly the cheapest available computers. I also have no option to buy a laptop with ECC RAM because companies like Lenovo have decided not to manufacture them.

It seems to me that the easiest way of increasing overall reliability of computers would be to use ECC RAM everywhere. In the early 90′s all IBM compatible PCs had parity RAM, that meant that for each byte there was one extra bit which would report 100% of single-bit errors and 50% of errors that involved random memory corruption. Then manufacturers decided to save a tiny amount of money on memory by using 8/9 the number of chips for desktop/laptop systems and probably make more money on selling servers with ECC RAM. If the government was to impose a 20% tax on computers that lack ECC RAM then manufacturers would immediately start using it everywhere and the end result would be no price increase overall as it’s cheaper to design desktop systems and servers with the same motherboards – apparently some desktop systems have motherboard support for ECC RAM but don’t ship with suitable RAM or advertise the support for such RAM.

This principle applies to many other products too. One obvious example is cars, a car manufacturer can sell cheap cars with few safety features and then when occupants of those cars and other road users are injured the government ends up paying for medical expenses and disability pensions. If there was a tax for every car that has a poor crash test rating and a tax for every car company that performs badly in real world use then it would give car companies some incentive to manufacture safer vehicles.

Now there are situations where design considerations preclude such features. For example implementing ECC RAM in mobile phones might involve technical difficulties (particularly for 32bit phones) and making some trucks and farm equipment safer might be difficult. But when a company produces multiple similar products that differ significantly in quality such as PCs with and without ECC RAM or cars with and without air-bags there would be no difficulty in making them all of them higher quality.

I don’t think that we will have a government that implements such ideas any time soon, it seems that our government is more interested in giving money to corporations than taxing them. But one thing that could be done is to adopt a policy of only giving money to companies if they produce high quality products. If a car company is to be given hundreds of millions of dollars for not closing a factory then that factory should produce cars with all possible safety features. If a computer company is going to be given significant tax breaks for doing R&D then they should be developing products that won’t crash.

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Syndicated 2014-07-10 02:48:38 from etbe - Russell Coker

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