July 5, 2008

Sir Laurence Olivier Got Mad at Those Who Ridiculed Charlton Heston's Acting


(p. 5go!) "In 1985, I took a train to London from Royal Air Force Mildenhall (Base) with a couple of med techs and decided to check out some of the plays," Brodston recalled in his e-mail.

His theater date was a native Briton who had joined the U.S. Air Force.

"We came upon a play that had Charlton Heston in it, 'The Caine Mutiny Court Martial,'" Brodston remembered. "We couldn't afford the tickets, so they put us on the 'king's cuff' (standby tickets for students and servicemen)."

Just as the house lights were dimming, an older woman led Brodston and his companion up the steps to a private box because no one had claimed the seats.

"Be quiet and don't tell anyone," she furtively whispered because she wasn't supposed to give away box seats that normally fetch up to $300 each.

Two minutes into the play, the door at the rear of the box opened, and two people sat behind them. Engrossed in the play, Brodston and friend paid little attention.

"At intermission, we looked up and saw Lord Laurence Olivier and his wife, Joan Plowright, sitting behind us!"

. . .

In 1999, Brodston crossed paths with Plowright in New York, and she remembered the night they shared a box at the London theater.

"Larry used to get mad when people made fun of Chuck's acting," Plowright told Brodston. "He loved Chuck in 'Ben Hur' and that silly ape movie ('Planet of the Apes'). He and the children would watch those movies again and again."



For the full commentary, see:

BOB FISCHBACH. "Bob's Take on Cinema: A night of fine theater with Chuck, Larry." Omaha World-Herald (Thursday, June 12, 2008): 5go!.

(Note: ellipsis added.)

July 4, 2008

The Role of Private Enterprise in Sequencing the Human Genome


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Source of book image: http://www.genomenewsnetwork.org/articles/2004/02/20/genome_war.php

The race to decode the genome always seemed like an appealing test case of the relative efficiency of government versus private enterprise. But the results seem muddy because sometimes in the media the outcome has been described as a win for Craig Venter's private Celera corporation, and other times, as a tie.

For years I have wanted to learn more, and now I have finally done so by reading James Shreeve's fascinating The Genome War.

It is clear from the book that the entrance of Celera, greatly accelerated the government's own efforts to sequence the human genome. So one important lesson is that, no matter who "won the race, the consumer benefited from the entrance of a private competitor.

Also clear, is that Venter's group took advantage of public resources and results. Their primary zeal was for sequencing the genome, rather than for promoting private enterprise.

Regrettably, this is a common case: many entrepreneurs take the institutions of their economy as given, and make use of government when it suits their short-run objectives.

Officially the results were announced as a tie. But the main bone of contention had been over Celera's advocacy and use of the "whole genome shotgun" technique for sequencing the gene. The government group had attacked the method as impractical and unreliable.

The proof of who "won" in a deeper sense, was that after the contest was over, everyone, including the government, was using the "whole genome shotgun" technique.

Another lesson is that the usual scientific goal of immediately releasing findings, may actually reduce the information available to the public. If, as with the genome, the information is costly to obtain, allowing a period of proprietary ownership of the information, provides private entrepreneurs with the incentive to discover the information in the first place. Another case of unintended consequences: if we fully follow the alleged idealism of academic scientists, we will end up with less scientific knowledge, not more.

Reference to book:

Shreeve, James. The Genome War: How Craig Venter Tried to Capture the Code of Life and Save the World. 1st ed. New York: Alfred A. Knopf, 2004.

(Note: My comments are based on the whole book. A paragraph on pp. 366-367 is especially important.)

July 3, 2008

"Most Interview Processes Are Deeply Flawed"


(p. 129) Developing leaders begins with interviewing and assessing candidates. I'm not talking about overseeing the HR department and interviewing finalists; I'm talking about hands-on hiring. Most interview processes are deeply flawed. Some people interview well, and some people don't. A person who doesn't interview well may nonetheless be the best choice for the job. That's why it's so important to probe deeply, know what to listen for, and get supplemental data. It takes time and effort to drill down further, but it's always worth the trouble.


Source:

Bossidy, Larry, Ram Charan, and Charles Burck. Execution: The Discipline of Getting Things Done. New York: Crown Business, 2002.

(Note: the quotation is presented as being Bossidy's.)

July 2, 2008

The Radical Islamic Threat to Free Speech


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"Marked for death: Ayaan Hirsi Ali." Source of caption and photo: online version of the WSJ commentary quoted and cited below.

(p. A15) Criticism of Islam, however, has led to violence and murder world-wide. Ayatollah Khomeini issued a fatwa calling for Muslims to kill Salman Rushdie over his 1988 book, "The Satanic Verses." Although Mr. Rushdie has survived, two people associated with the book were stabbed, one fatally. The 2005 Danish editorial cartoons lampooning the prophet Muhammad led to numerous deaths. Dutch director Theodoor van Gogh was killed in 2004, several months after he made the film "Submission," which described violence against women in Islamic societies. Ayaan Hirsi Ali, a former Dutch member of parliament who wrote the script for "Submission," received death threats over the film and fled the country for the United States.


The violence Dutch officials are anticipating now is part of a broad and determined effort by the radical jihadist movement to reject the basic values of modern civilization and replace them with an extreme form of Shariah. Shariah, the legal code of Islam, governed the Muslim world in medieval times and is used to varying degrees in many nations today, especially in Saudi Arabia.

Radical jihadists are prepared to use violence against individuals to stop them from exercising their free speech rights. In some countries, converting a Muslim to another faith is a crime punishable by death. While Muslim clerics are free to preach and proselytize in the West, some Muslim nations severely restrict or forbid other faiths to do so. In addition, moderate Muslims around the world have been deemed apostates and enemies by radical jihadists.


For the full commentary, see:

PETER HOEKSTRA. "Islam and Free Speech." The Wall Street Journal (Weds., March 26, 2008): A15.

July 1, 2008

The Method of Milton Friedman's Practice Was Better Than the Method of His Essay


The method of the Chicago School is often thought to be the method outlined in Friedman's famous essay "The Methodology of Positive Economics." It can be (and has been) persuasively argued that the actual methodology practiced by Friedman is broader, and more eclectic than that advocated in his early essay.

His practice continued to exemplify a kind of empiricism, but it was a kind of empiricism that included, not only 'rigorous' econometrics, but also economic history, case studies, and 'stylized facts.'

I believe that the method of Friedman's practice is sounder than the method of his essay. So it is unfortunate that the Institute founded in Friedman's name will probably only support those who practice the formal method of the essay.

(p. B5) The University of Chicago will announce Thursday that it plans to establish a center for economics honoring the late economist Milton Friedman.

The school plans to raise an endowment of $200 million to support the Milton Friedman Institute.

. . .

. . . his approach to economics embodies what has come to be known as the Chicago School. He defined that as "an approach that insists on the empirical testing of theoretical generalizations and that rejects alike facts without theory and theory without facts."

It is that approach, and the intellectual rigor that Mr. Friedman brought to it, that the Friedman Institute is meant to advocate, rather than any ideology, says Chicago economist Gary Becker, a Nobel Prize-winning former student of Mr. Friedman's who was on the faculty committee that recommended the institute.


For the full story, see:

JUSTIN LAHART. "University Plans Institute to Honor Milton Friedman." The Wall Street Journal (Thurs., May 15, 2008): B5.

(Note: ellipses added.)


The famous Friedman method essay is:

Friedman, Milton. "The Methodology of Positive Economics." In Essays in Positive Economics, 3-43. Chicago: University of Chicago Press, 1953.

June 30, 2008

The Inefficiency of a Labor Safety Net


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"Government milk is sold mostly through curbside milk stalls. Some customers don't find the milk stands appealing since they can be dingy and the milk sometimes bad." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A1) MUMBAI -- Every workday morning, milkman D.T. Walkar faithfully comes to Worli Dairy to not deliver milk.

Most days, he and his fellow drivers at the government dairy sign in, then move to the rest area. While others read the paper, nap or play rummy, Mr. Walkar likes to do the Sudoku puzzle in the Maharashtra Times, unless someone else has gotten to it first. He then wanders around the complex and talks to friends. The last delivery trucks were sold last year. "The trucks are all gone so we just sit around and talk," says Mr. Walkar, 50 years old. "We are bored."

Once respected civil servants, Mr. Walkar and his 300-odd fellow drivers have been left in a strange limbo. Milk sales at their dairy have plummeted as the state government lost its monopoly on milk and consumer tastes changed. But because Indian work rules strictly protect government workers from layoffs, the delivery men show up for work each morning for eight-hour shifts, as they always did, then proceed to do nothing all day. They rarely, if ever, leave the plant.

. . .

(p. A5) In 2001, the Indian government started opening the dairy market in Maharashtra to competition. Private carriers with higher quality milk swiftly won customers by delivering milk to doorsteps. The government milkmen have always been restricted to delivering mostly to curbside milk stalls so they could cover a greater area.

Customers swiftly deserted. Many switched to heat-treated milk in sealed packages that resist spoiling. Some ditched the government's former best sellers of sweet Pineapple milk and spicy Masala milk for Coca-Cola and Sprite as Indian tastes westernized. Others never found the milk stands appealing -- they can be dingy and the milk sometimes bad.


For the full story, see:

ERIC BELLMAN. "Out to Pasture: India's Milkmen Bide Their Time; No Work, Secure Job Put Them in Limbo; Where's the Sudoku?" The Wall Street Journal (Sat., March 29, 2008): A1 & A5.

(Note: ellipsis added.)


IndiaMilkmenSleepingOnJob.jpg "Because Indian work rules protect government workers from layoffs, 300-odd former milk truck drivers show up at the Worli Dairy for work each morning just as they always did, then do nothing all day. To pass the time, the men do puzzles, yoga or just sleep off the hours. Once, they tried planting a garden." Source of caption and photo: online version of the WSJ article quoted and cited above.

June 29, 2008

Higher Oil Prices Are an Incentive for More Oil Drilling


(p. B5) Even natural-gas companies can't resist the draw of $100 oil. Though prices for both natural gas and oil have risen steeply, oil fetches nearly twice the price of gas per unit of energy and brings fatter profits.

That is prompting even the most natural-gas-focused companies to step up their oil drilling in the U.S. With the biggest, easiest-to-get deposits of domestic crude oil drained long ago, U.S. energy companies in recent years have concentrated most of their domestic production efforts on natural gas. Some companies, such as Chesapeake Energy Corp. and EOG Resources Inc. devoted nearly their entire production to natural gas.

EOG recently announced it had begun drilling for oil in Colorado and Texas, including in the Barnett Shale, a vast hydrocarbon reserve that had previously been known for gas, not oil. With prices rising faster for oil than natural gas, "you're probably better off searching for oil," said EOG Chief Executive Mark Papa.



For the full story, see:

BEN CASSELMAN. "Prices Prompt Natural-Gas Firms To Drill for Oil in U.S." The Wall Street Journal (Mon., April 7, 2008): B5.

June 28, 2008

Raúl Castro Decrees that Cubans May Now Buy DVD Players, Computers, and Cell Phones


HavanaDVDplayer.jpg "Cubans in Havana recently bought DVD players, among newly available appliances." Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) HAVANA -- Can a rice maker possibly be revolutionary?

There they were, piled up one atop another, Chinese-made rice makers selling for $70 each. Beside them, sleek DVD players. Across the well-stocked electronics store were computers and televisions and other household appliances that President Raúl Castro recently decreed ought to be made available to average Cubans, or at least those who could afford them.

Since finally succeeding his ailing 81-year-old brother, Fidel, in February, Mr. Castro, 76, who appeared before hundreds of thousands of Cubans at a May Day rally on Thursday here in the capital, has been busy with a flurry of changes. In the last eight weeks he has also opened access to cellphones, lifted the ban on Cubans using tourist hotels and granted farmers the right to manage unused land for profit.

More is on the horizon, government officials say, like easing restrictions on traveling abroad and the possibility of allowing Cubans to buy and sell their own cars, and perhaps even their homes. Each of these changes may be microscopic in contrast to the outsize problems facing Cuba. But taken together, they are shaking up this stoic, time-warped place.


For the full story, see:

MARC LACEY. "Stores Hint at Change Under New Castro." The New York Times (Fri., May 2, 2008): A1 & A8.




Six Most Recent Comments:


PTG said:
This is pure propaganda. Most Cubans can't afford many of these items. You might ask a Cuban instead of believing anything you find about Cuba in the NYT. I suggest starting with a regular perusal of Babalu blog. These are cosmetic and meaningless reforms. What good is a toaster-oven if you can't get anything to cook in it?


PTG said:
And the Best Metaphor of the Month award goes to Rep. Bilbray for "environmental Jimmy Swaggarts".


Aaron said:
The article states the number of malpractice suits have gone down and the cost of malpractice insurance has gone down, but it does not say the cost of health care has gone down (or gone up less than it otherwise would have). Is this a situation similar to oil and the gas tax vacation, where demand hasn't changed so instead of the prices going down, doctors are just pocketing the "extra" money? While it would be better for deserving service providers to get the money instead of attorneys, it may not be of much benefit to consumers. FYI- NE doesn't have punitives and is a stranger to huge noneconomic awards.


amity shlaes said:
Just a note to thank Art for the kind reference to TFM. There's a lot of amnesia in American economic history and the Stigler irony in re Berle was about that. Another forgotten name is Rexford Tugwell, who, along with Henry Wallace and others, can be regarded as parents of the current farm bill. How did the country come down with amnesia? When Keynesianism came into the classroom after World War II, the professors began to gloss lightly over the New Deal, since there were elements to it that Keynesians, especially, disapproved of. You can find some legitimate arguments by serious economists such as Price Fishback that the New Deal was not Keynesian, and it wasn't, in the sense that FDR couldn't and didn't spend sufficiently to satisfy orthodox Keynesians. (For those of you who saw it, the review by Price of THE FORGOTTEN MAN in the Journal of Economic History was really wonderful. http://journals.cambridge.org/download.php?file=%2FJEH%2FJEH68_01%2FS0022050708000260a.pdf&code=2f6109b04d546d6bd298f403f4d38dc7 but I think that he misrepresents me as saying FDR was an orthodox Keynesian -- I didn't. The proof of that is in some of the other criticism of THE FORGOTTEN MAN. The TLS in the UK attacked THE FORGOTTEN MAN for denying that the New Deal was Keynesian.) The New Deal was also not Keynesian in the sense that many of the New Dealers thought they working in the tradition of Irving Fisher or various monetary theorists on the domestic side. They didn't think they were importing policy from a man in the UK. But another reason scholars of Keynesianism don't make the link is that the spending that happened in the 1930s which was significant, did not bring recovery. The New Deal didn't work. Some of the things Berle said were ridiculous. The New Dealers embarrassed the postwar Keynesians. So they simply were not taught. The lessons of the New Deal mistakes were therefore never sufficiently absorbed. Recently, looking at GOD AND MAN AT YALE, I was reminded that Bill Buckley deplored the extent of the switch to Keynesianism at the American University. And GOD AND MAN appeared more than half a century ago. The profs threw out classical econ and taught Keynes, Keynes, Keynes. It just had to be either/or, apparently. TFM is coming out in paperback this month with material for the classroom, such as a cast of characters, a New Deal timeline, and an essay on the bogus aspects of federal job creation.


PTG said:
I wonder what the penalty is for breaking Moore's Law?


PTG said:
What a novel idea: retailers actually paying attention to the wants and needs of their customers. What next? Products offered in various colors? The idea flies in the face of Marxist efficiency.





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