Homeless People Advertising - Bumvertising™ Articles


The Economics of Bumvertising™ written by Benjamin Rogovy 8/13/05

Topics:
The Supply and Demand of Advertising due to Bumvertising™
The Myth that Bumvertising™ is Harmful

Bumvertising™ introduces a new form of advertising. The net effect of Bumvertising™ is an increase in the national GDP and a price drop in the cost of advertising. It also creates an increase in the standard of living of bums. The amount that these figures will shift is yet to be determined. An accurate picture of these numbers, would involve statistics gathered from companies who use Bumvertising™ and from signholders who monitor their revenues on a consistent basis.

To make the issue more understandable, consider the two players. Companies looking to advertise make up the buyers. For a moment, let's consider that sign holding bums are in fact owners and operators of their own miniature advertising agencies. Their primary revenue source, and formerly only revenue source, came from soliciting donations from passersby. Consider these signers not as “employees” but rather as sellers of advertisements. Everytime they agree to tack a Bumvertising™ sign onto their own sign, they are accepting an amount of money for a service that they agree to provide.

The theory of Bumvertising™ relies on the fact that both the buyer and the seller benefit from its existence. Both parties are better off. Companies obtain exposure at a lower price and in a new medium, and sign holders increase their revenue. The greatest complexity of this theory is the factor by which a signer's donation revenue is altered. So far, in Bumvertising™'s short existence, the overwhelming opinion by the signers, is that having a professionally made sign on the bottom of their own, does indeed increase donation revenue. This is the most exciting part. Essentially, a bum's status in the world rises due to Bumvertising™. Holding a Bumvertising™ sign transforms a man or woman from a rogue derelict, to a beggar who is capable of negotiating a deal to improve his own welfare. In essence, a bum is able to prove to the world that he is not quite so irresponsible, and perhaps deserves more frequent and larger donations than the bum across the street who has not shown the initiative to obtain a Bumvertising™ contract for that day. In sum, Bumvertising™ leads to the advancement of urban credibility.



The Myth That Bumvertising™ is Harmful

Bumvertising™ does not take advantage of beggars; it makes them more legitimate. Many homeless advocacy groups argue that Bumvertising™ is terrible for the homeless community at large. So far, their greatest complaints point to the use of the word 'bum', the theory that these individuals are being exploited, and the theory that Bumvertising™ contracts make it easier for a person to remain destitute.

The most prevalent complaint with Bumvertising™ is its name. People do not feel that it is appropriate. According to the American Heritage Dictionary of the English Language, a bum is defined as:

     1. A tramp; a vagrant.
     2. A lazy or shiftless person, especially one who seeks to live solely by the support of others.

Without addresing the issues of laziness or shiftlessness, the second definition seems to be very much to the point. These people are hired because their full time job is asking other people for food, money, and clothing.

Does Bumvertising™ exploit the bums? Again, I think we could look at dictionary definitions. According to the American Heritage Dictionary of the English Language, exploit is defined as:

     1. To employ to the greatest possible advantage: exploit one's talents.
     2. To make use of selfishly or unethically

This is more interesting. According to the first definition, Bumvertising™ very well might be exploitation. Instead of bums holding one sign, they are now holding two and getting paid more money, thus exploiting their own talents. But let's not take that too seriously. The real complaint is coming from people who feel that Bumvertising™ is exploitive according to the second definition. Bumvertising™ cannot exist as a selfish endeavour. There are two voluntary parties, who will seek an equilibrium level of mutual advantage. The price that bums charge to sell Bumvertising™ space is determined by market forces. There is an amount to which a bum will not consent to hold a Bumvertising™ sign. Once the offer from a buyer exceeds that amount, the deal is made. Bingo. A fair market price.

It is true that Bumvertising™ might make it easier for a person to remain a vagabond. They are of course, getting food, money, and water that they alternatively would not have received. If we look more closely though, there are many elements that perpetuate a bums existence. Receiving free food and shelter certainly makes it easier for a bum to be a bum. Handouts in any form make it easier for a bum to continue his bum lifestyle. Desperate times call for desperate measures. As their times get less desperate, it is true that the bums may feel less inclined to seek alternative work. Or will this step closer to legitimacy make it easier to advance? These are the questions that must be considered.
The important thing to remember is that these are individuals entitled to make their own lifestyle choices. The beggars that are able to sell their Bumvertising™ space are coherent, semi-responsible, and are often quite savvy in their own business world. They usually have a good claim on a corner, and understand the fundamentals of high volume, low conversion advertising. Unfortunately, due to alcoholism, drug abuse, and mental illness many of these people have no choice but to be independent contractors, since conventional employers would shy away from them. They are in fact, too shoddy of workers to be hired at minimum wage. It does not make good business sense to pay them minimum wage, therefore they are not hired at all. I am not necessarily in favor of abolishing minimum wage, but it is important to realize the effect of minimum wage on people who cannot produce at least $5.15/hour of value by virtue of their labor.