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February 3, 2012

How to Slow Down Creative Destruction



(p. 356) This catallaxy will not go smoothly, or without resistance. Natural and unnatural disasters will still happen. Governments will bail out big corporations and big bureaucracies, hand them special favours such as subsidies or carbon rations and regulate them in such a way as to create barriers to entry, slowing down creative destruction. Chiefs, priests, thieves, financiers, consultants and others will appear on all sides, feeding off the surplus (p. 357) generated by exchange and specialisation, diverting the life-blood of the catallaxy into their own reactionary lives. It happened in the past. Empires bought stability at the price of creating a parasitic court; monotheistic religions bought social cohesion at the price of a parasitic priestly class; nationalism bought power at the expense of a parasitic military; socialism bought equality at the price of a parasitic bureaucracy; capitalism bought efficiency at the price of parasitic financiers.


Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





February 2, 2012

Kickstarter Helps Finance Projects



KickstarterProjects2012-01-29.jpg "The creators of the TikTok Watchband, left, and the Elevation Dock have raised far more money on Kickstarter than they initially sought." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. B1) Kickstarter is a "crowd-funding" site. It's a place for creative people to get enough start-up money to get their projects off the ground. The categories include music, film, art, design, food, publishing and technology. The projects seeking support might be recording a CD, putting on a play, producing a short film or developing a cool new tech product.

Suppose you're the one who needs money. You describe your project with a video, a description and a target dollar amount. Listing your project is free.

If the citizens of the Web pledge enough money to meet your target by the deadline you set, then you get your money and (p. B7) you proceed with your project. At that point, Kickstarter takes 5 percent, and you pay 3 to 5 percent to Amazon.com's credit card service.

If you don't raise the money by the deadline, the deal is off. Your contributors keep their money, and Kickstarter takes nothing.

But here's the part I had trouble understanding: These are not investments. If you make a pledge, you'll never see your money again, even if the play, movie or gadget becomes a huge hit. You do get some little memento of your financial involvement -- a T-shirt or a CD, for example, or a chance to preorder the gadget being developed -- but nothing else tangible. Not even a tax deduction.

Furthermore, you have no guarantee that the project will even see the light of day. All kinds of things happen between inspiration and production. People lose interest, get married, move away, have trouble lining up a factory. The whole thing dies, and it was all for nothing.

So why, I kept wondering, does anybody participate? Who would give money for so little in return?


. . .


I started reading about . . . projects. The one that seemed to be drumming up the most interest lately is called the Elevation Dock. It's just a charging stand for the iPhone, but wow, what a stand. It's exquisitely milled from solid, Applesque aluminum. You don't have to take your iPhone (or iPod Touch) out of its case to insert it into this dock. And the dock is solid enough that you can yank the phone out of it with one hand. The dock stays on the desk.


. . .

Other projects seeking your support: Jaja, a drawing stylus for iPad and Android tablets that's pressure-sensitive (makes fatter lines when you bear down harder); LED Side Glow Hats (baseball caps with illuminated brims for working in dark places); Eye3 (an inexpensive flying drone for aerial photography); and so on.

Not all of them will reach their financing goals (only 44 percent do). Even fewer will wind up on store shelves.

But in dark economic times, Kickstarter offers aspirational voyeurism: you can read about the big dreams of the little people. And you can give the worthy artists a small financial vote of confidence -- and enjoy the ride with them.



For the full story, see:

DAVID POGUE. "STATE OF THE ART; Embracing the Mothers of Invention." The New York Times (Thurs., January 26, 2012): B1 & B7.

(Note: ellipses added.)

(Note: the online version of the article was dated January 25, 2012.)






January 30, 2012

Creative Destruction Creates as Many New Jobs as It Destroys



(p. 113) It was Joseph Schumpeter who pointed out that the competition which keeps a businessman awake at night is not that from his rivals cutting prices, but that of entrepreneurs making (p. 114) his product obsolete. As Kodak and Fuji slugged it out for dominance in the 35mm film industry in the 1990s, digital photography began to extinguish the entire market for analogue film - as analogue records and analogue video cassettes had gone before. Creative destruction, Schumpeter called it. His point was that there is just as much creation going on as destruction - that the growth of digital photography would create as many jobs in the long run as were lost in analogue, or that the savings pocketed by a Wal-Mart customer are soon spent on other things, leading to the opening of new stores to service those new demands. In America, roughly 15 per cent of jobs are destroyed every year; and roughly 15 per cent created.


Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





January 26, 2012

Paleolithic Homo Sapiens Engaged in Long Distance Trade



(p. 71) At Mezherich, in what is now Ukraine, 18,000 years ago, jewellery made of shells from the Black Sea and amber from the Baltic implied trade over hundreds of miles.

This is in striking contrast to the Neanderthals, whose stone tools were virtually always made from raw material available within an hour's walk of where the tool was used.



Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





January 22, 2012

Hunter-Gatherers Suffered Violence, Famine and Disease--No Idyllic Golden Age



(p. 44) The warfare death rate of 0.5 per cent of the population per year that was typical of many hunter-gatherer societies would equate to two billion people dying during the twentieth century (instead of 100 million). At a cemetery uncovered at Jebel Sahaba, in Egypt, dating from 14,000 years ago, twenty-four of the fifty-nine bodies had died from unhealed wounds caused by spears, darts and arrows. Forty of these bodies were women or children. Women and children generally do not take part in warfare - but they are (p. 45) frequently the object of the fighting. To be abducted as a sexual prize and see your children killed was almost certainly not a rare female fate in hunter-gatherer society. After Jebel Sahaba, forget the Garden of Eden; think Mad Max.

It was not just warfare that limited population growth. Hunter-gatherers are often vulnerable to famines. Even when food is abundant, it might take so much travelling and trouble to collect enough food that women would not maintain a sufficient surplus to keep themselves fully fertile for more than a few prime years. Infanticide was a common resort in bad times. Nor was disease ever far away: gangrene, tetanus and many kinds of parasite would have been big killers. Did I mention slavery? Common in the Pacific north-west. Wife beating? Routine in Tierra del Fuego. The lack of soap, hot water, bread, books, films, metal, paper, cloth? When you meet one of those people who go so far as to say they would rather have lived in some supposedly more delightful past age, just remind them of the toilet facilities of the Pleistocene, the transport options of Roman emperors or the lice of Versailles.



Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





January 21, 2012

"Just What Ailments Are Pylos Tablets Supposed to Alleviate?"



LinearBscript2012-01-14.jpg










"Professor Bennett's work opened a window to deciphering tablets written in Linear B, a Bronze Age Aegean script." Source of caption and photo: online version of the NYT obituary quoted and cited below.



(p. 22) Deciphering an ancient script is like cracking a secret code from the past, and the unraveling of Linear B is widely considered one of the most challenging archaeological decipherments of all time, if not the most challenging.


. . .


Linear B recorded the administrative workings of Mycenaean palatial centers on Crete and the Greek mainland 3,000 years ago: accounts of crops harvested, flocks tended, goods manufactured (including furniture, chariots and perfume), preparations for religious feasts and preparations for war.

It was deciphered at last in 1952, not by a scholar but by an obsessed amateur, a young English architect named Michael Ventris. The decipherment made him world famous before his death in an automobile accident in 1956.

As Mr. Ventris had acknowledged, he was deeply guided by Professor Bennett's work, which helped impose much-needed order on the roiling mass of strange, ancient symbols.

In his seminal monograph "The Pylos Tablets" (1951), Professor Bennett published the first definitive list of the signs of Linear B. Compiling such a list is the essential first step in deciphering any unknown script, and it is no mean feat.


. . .


"We know how much Ventris admired Bennett, because he immediately adopted Bennett's sign list of Linear B for his own work before the decipherment," said Mr. Robinson, whose book "The Man Who Deciphered Linear B" (2002) is a biography of Mr. Ventris. "He openly said, 'This is a wonderful piece of work.' "


. . .


As meticulous as Professor Bennett's work was, it once engendered great confusion. In 1951, after he sent Mr. Ventris a copy of his monograph, a grateful Ventris went to the post office to pick it up. As Mr. Robinson's biography recounts, a suspicious official, eyeing the package, asked him: "I see the contents are listed as Pylos Tablets. Now, just what ailments are pylos tablets supposed to alleviate?"



For the full obituary, see:

MARGALIT FOX. "Emmett L. Bennett Jr., Ancient Script Expert, Dies at 93." The New York Times, First Section (Sun., January 1, 2012,): 22.

(Note: ellipses added.)

(Note: the online version of the obituary is dated December 31, 2011, and has the title: "Emmett L. Bennett Jr., Expert on Ancient Script, Dies at 93.")


The book on the amateur, uncredentialed Ventris is:

Robinson, Andrew. The Man Who Deciphered Linear B: The Story of Michael Ventris. London, UK: Thames & Hudson, 2002.



BennettEmmettJr2012-01-14.jpg













"Emmett L. Bennett Jr." Source of caption and photo: online version of the NYT obituary quoted and cited above.







January 18, 2012

You Have More Servants than the Sun King



(p. 36) The Sun King had dinner each night alone. He chose from forty dishes, served on gold and silver plate. It took a staggering 498 people to prepare each meal. He was rich because he consumed the work of other people, mainly in the form of their services. He was rich because other people did things for him. At that time, the average French family would have prepared and consumed its own meals as well as paid tax to support his servants in the palace. So it is not hard to conclude that Louis XIV was rich because others were poor.

But what about today? Consider that you are an average person, say a woman of 35, living in, for the sake of argument, Paris and earning the median wage, with a working husband and two children. You are far from poor, but in relative terms, you are immeasurably poorer than Louis was. Where he was the richest of the rich in the world's richest city, you have no servants, no palace, no carriage, no kingdom. As you toil home from work on the crowded Metro, stopping at the shop on the way to buy a ready meal for four, you might be thinking that Louis XIV's dining arrangements were way beyond your reach. And yet consider this. The cornucopia that greets you as you enter the supermarket dwarfs anything that Louis XIV ever experienced (and it is probably less likely to contain salmonella). You can buy a fresh, frozen, tinned, smoked or pre-prepared meal made with beef, chicken, pork, lamb, fish, prawns, scallops, eggs, potatoes, beans, carrots, cabbage, aubergine, kumquats, celeriac, okra, seven kinds of lettuce, cooked in olive, walnut, sunflower or peanut oil and flavoured with cilantro, turmeric, basil or rosemary . . . You may have no chefs, but you can decide (p. 37) on a whim to choose between scores of nearby bistros, or Italian, Chinese, Japanese or Indian restaurants, in each of which a team of skilled chefs is waiting to serve your family at less than an hour's notice. Think of this: never before this generation has the average person been able to afford to have somebody else prepare his meals.

You employ no tailor, but you can browse the internet and instantly order from an almost infinite range of excellent, affordable clothes of cotton, silk, linen, wool and nylon made up for you in factories all over Asia. You have no carriage, but you can buy a ticket which will summon the services of a skilled pilot of a budget airline to fly you to one of hundreds of destinations that Louis never dreamed of seeing. You have no woodcutters to bring you logs for the fire, but the operators of gas rigs in Russia are clamouring to bring you clean central heating. You have no wick-trimming footman, but your light switch gives you the instant and brilliant produce of hardworking people at a grid of distant nuclear power stations. You have no runner to send messages, but even now a repairman is climbing a mobile-phone mast somewhere in the world to make sure it is working properly just in case you need to call that cell. You have no private apothecary, but your local pharmacy supplies you with the handiwork of many thousands of chemists, engineers and logistics experts. You have no government ministers, but diligent reporters are even now standing ready to tell you about a film star's divorce if you will only switch to their channel or log on to their blogs.

My point is that you have far, far more than 498 servants at your immediate beck and call. Of course, unlike the Sun King's servants, these people work for many other people too, but from your perspective what is the difference? That is the magic that exchange and specialisation have wrought for the human species.



Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.

(Note: ellipsis in original.)





January 15, 2012

In Supporting Bailouts Buffett Was More Bootlegger than Baptist



ThrowThemAllOutBK.jpg














Source of book image: online version of the Omaha World-Herald review quoted and cited below.




(p. 9A) Peter Schweizer's new book, "Throw Them All Out" (Houghton Mifflin Harcourt, 211 pages, $26) mostly goes after members of Congress for profiting from inside information and making investments that are legal for them but would be illegal for almost anyone else.

But Chapter 6 is titled, "Warren Buffett: Baptist and Bootlegger."

Buffett is neither an actual Baptist nor a bootlegger, of course. Schweizer's reference is to the alliance of churchgoers and illegal marketers of liquor who both favored laws to limit the legal sale of alcohol, although for different reasons.

Schweizer wrote that during the 2008-09 financial crisis, Buffett pushed for government action and called attention to the problems, looking like a noble Baptist, but profited from the bailouts, like a bootlegger, through investments in Goldman Sachs, General Electric, Wells Fargo and other financial companies.

"Buffett needed the bailout," Schweizer wrote. "He began immediately to campaign for the $700 billion TARP rescue plan that was being hammered together in Washington." Several senators, including Ben Nelson, D-Neb., are Berkshire shareholders, Schweizer wrote, "and they had to know that passing the bailout bill would bring big returns for their Berkshire stock."

"There were many legitimate reasons to support the bill, and it can hardly be said that Buffett's support was the deciding factor," Schweizer wrote. "But his Baptist-bootlegger position was noteworthy for its strength in both directions: a lot of people followed his advice, and he and they made (p. 10A) a lot of money by pushing for the bailout. . . .

"Warren Buffett is a financial genius. But even more important for his portfolio, he's a political genius."



For the full story, see:

Steve Jordon. "Warren Watch: Author Says Buffett Is a 'Political Genius'." Omaha World-Herald (Sunday, November 20, 2011): 9A -10A.

(Note: ellipsis in original.)

(Note: the online version of the article has the title "Warren Watch: A 'Political Genius'.")


Steve Jordan is discussing the book:

Schweizer, Peter. Throw Them All Out. New York: Houghton Mifflin Harcourt Trade, 2011.


Bruce Yandle is the former President of APEE and the author of the classic article on how bootleggers and Baptists often become allies in calling for government action:

Yandle, Buce. "Bootleggers and Baptists: The Education of a Regulatory Economist." Regulation 7, no. 3 (1983): 12-16.





January 10, 2012

Happiness Depends Most on Being Free to Choose



(p. 27) Getting richer is not the only or even the best way of getting happier. Social and political liberation is far more effective, says the political scientist Ronald Ingleheart: the big gains in happiness come from living in a society that frees you to make choices about your lifestyle - about where to live, who to marry, how to express your sexuality and so on. It is the increase in free (p. 28) choice since 1981 that has been responsible for the increase in happiness recorded since then in forty-five out of fifty-two countries. Ruut Veenhoven finds that 'the more individualized the nation, the more citizens enjoy their life.'


Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





January 8, 2012

Mackay Warned about Delusions, then Was Deluded by Bubble



(p. B1) Can you spot a bubble?

Ever since 1841, when a Scottish journalist named Charles Mackay published the book known today as "Extraordinary Popular Delusions and the Madness of Crowds," the answer has seemed clear. If you watch carefully for signs of euphoria, you can sidestep the damage when markets go mad.

But bubble spotting isn't as simple as Mackay made it sound--even, it turns out, for Mackay himself. Investors should always guard against the glib assertions of pundits who claim they can detect bubbles before they burst.


. . .


But new research tells the untold tale of Mackay's own behavior in the face of a bubble--and it is a shocker. A mathematician and former cryptographer at Bell Labs named Andrew Odlyzko has spent much of the past decade researching a forgotten stock mania. One of its biggest boosters was none other than Charles Mackay.

A bubble in British railroad stocks began in 1844, only three years after Mackay published his book, and it didn't start to collapse until late 1845. Even with the history of market folly fresh in his mind, Mackay urged British investors to pile into railway stocks, whose extravagant prices were based on absurdly unrealistic projections of future growth.

The most famous critic of bubbles who ever lived fell like a chump for a craze that was unfolding before his very eyes. On Oct. 2, 1845, Mackay wrote that "those who sound the alarm of an approaching railway crisis have somewhat exaggerated the danger."

He went on to ridicule anyone who argued that "the Railway mania of the present day" was similar to the devastating bubbles he had described in his own book. "There is no reason whatever to fear" a crash, he concluded.

He couldn't have been more wrong. From 1845 to the bottom in 1850, railway stocks fell by two-thirds--the equivalent of roughly $1 trillion of losses in today's money. Mackay never fessed up to his own extraordinary delusion.



For the full commentary, see:

JASON ZWEIG. "THE INTELLIGENT INVESTOR; The Extraordinary Popular Delusion of Bubble Spotting." The Wall Street Journal (Sat., NOVEMBER 5, 2011): B1.

(Note: ellipsis added.)






January 1, 2012

Ridley Argues that Our Future Can Be Bright




RationalOptimistBK.jpg

















Source of book image: http://1.bp.blogspot.com/_cheRMv1X2oI/TAOvTFTnoeI/AAAAAAAAAgU/WAp7q0I_5mw/s1600/Ridley+Rational+Optimist.jpg




Ridley's book is very well-written, well-argued and well-documented. He takes on all the main arguments against a happy future for humans. I agree with most of what he writes. (One exception is that I think he underestimates the importance of patents in enabling a broader group of inventors to continue inventing.)

In the coming weeks, I will be quoting some of the more memorable, thought-provoking, or useful passages.



Book discussed:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.






December 28, 2011

Collins Says Successful CEOs Are Empirical and Disciplined



GreatByChoiceBK.jpg















Source of book image: online version of the WSJ review quoted and cited below.







(p. A15) 'Great by Choice" is a sequel to Jim Collins's best-selling "Good to Great" (2001), which identified seven characteristics that enabled companies to become truly great over an extended period of time. Never mind that one of the 11 featured companies is now bankrupt (Circuit City) and another is in government receivership (Fannie Mae). Mr. Collins has a knack for analysis that business readers find compelling.

Mr. Collins's new book tackles the question of how to steer a company to lasting success in an environment characterized by change, uncertainty and even chaos. Like his previous work, this book builds its conclusions on a framework of painstaking research, conducted over nine years and overseen by Mr. Collins and his co-author, Morten T. Hansen, a management professor at the University of California, Berkeley.


. . .


Messrs. Collins and Hansen draw some interesting and counterintuitive conclusions from their research. First, the successful leaders were not the most "visionary" or the biggest risk-takers; instead, they tended to be more empirical and disciplined, relying on evidence over gut instinct and preferring consistent gains to blow-out winners. The successful companies were not more innovative than the control companies; indeed, they were in some cases less innovative. Rather, they managed to "scale innovation"--introducing changes gradually, then moving quickly to capitalize on those that showed promise. The successful companies weren't necessarily the most likely to adopt internal changes as a response to a changing environment. "The 10X companies changed less in reaction to their changing world than the comparison cases," the authors conclude.


. . .


If "Great by Choice" shares the qualities that made "Good to Great" so popular, it also shares some that drew criticism. The authors' conclusions sometimes feel like the claims of a well-written horoscope--so broadly stated that they are hard to disprove. Their 10X leaders are both "disciplined" and "creative," "prudent" and "bold"; they go fast when they must but slow when they can; they are consistent but open to change. This encompassing approach allows the authors to fit pretty much any leader who achieves 10X performance into their analysis. Would it ever be possible, one wonders, to find a leader whose success contradicted their thesis?



For the full review, see:

ALAN MURRAY. "BOOKSHELF; Turbulent Times, Steady Success; How certain companies achieved shareholder returns at least 10 times greater than their industry." The Wall Street Journal (Tues., OCTOBER 11, 2011): A15.

(Note: ellipses added.)






December 27, 2011

Companies Can Grow to Greatness in Brutally Turbulent Environments



(p. 118) All that said, there remains a question: what about "the perennial gale of creative destruction" as described by the famous twentieth-century economist Joseph Schumpeter, wherein technological change and visionary entrepreneurs upend and destroy the old order and create a new order, only to see their new order destroyed and replaced by an even newer order, in an endless cycle of chaos and upheaval? Perhaps all social institutions in our modern world face disruptive forces so fast, big, and unpredictable that every entity will fall within years or decades, without exception. Can we still stave off decline in the face of severe turbulence?

While working on How the Mighty Fall, my colleague Morten Hansen and I have been simultaneously working on a six-year research project to study companies that grew from vulnerability to greatness in severe environments characterized by rapid and unpredictable change in contrast to others that did not prevail in the same brutally turbulent environments.



Source:

Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In. New York: HarperCollins Publishers, Inc., 2009.

(Note: italics in original.)






December 20, 2011

A&P Sold Consumers Better and Lower-Priced Food



GreatA&Pbk.jpg














Source of book image: online version of the WSJ review quoted and cited below.








(p. A15) Mr. Levinson's history centers on the two Hartford sons who followed their father into the business. They would spend their entire working lives at the company being known simply as "Mr. George" and "Mr. John." Thoughtful and studious, Mr. George's idea of excitement was a good jigsaw puzzle; Mr. John, somewhat more outgoing, liked the horses but also a daily lunch of milk and crackers. Together the brothers, neither of whom had finished high school, built what would be, for 40 years, the largest retail outlet in the world.

The brothers' business philosophy was simple, writes Mr. Levinson: "If the company keeps its costs down and prices low, more shoppers would come through its doors, producing more profits than if it kept prices high." The more stores they could open, the greater the take.

But the Hartfords had a public-relations problem. Since the nation's earliest days, small family stores had served as community anchors. There were thousands across the country. Mom and pop knew every customer who came through their door; they extended credit to families down on their luck. If low-priced chains drove out such stores, what would happen to small-town America?

In fact, many mom-and-pop operations were inefficiently and incompetently run. A&P might be coldly corporate by comparison, but it offered consumers far more variety and fresher, better-quality goods at less cost to the family budget.



For the full review, see:

PATRICK COOKE. "BOOKSHELF; How a Grocer Bagged Profits; At its peak, the chain had nearly 16,000 stores. Critics charged it with competing unfairly by offering too-low prices.." The Wall Street Journal (Mon., AUGUST 29, 2011): A15.

(Note: ellipsis added.)



The book under review is:

Levinson, Marc. The Great A&P and the Struggle for Small Business in America. New York: Hill and Wang, 2011.





December 19, 2011

Entrepreneur Sam Walton Sought to Learn from Others



(p. 40) So where is Ames at the time of this writing, in 2008?

Dead. Gone. Never to be heard from again. Wal-Mart is alive and well, #1 on the Fortune 500 with $379 billion in annual revenues.

What happened? What distinguished Wal-Mart from Ames?

A big part of the answer lies in Walton's deep humility and learning orientation. In the late 1980s, a group of Brazilian investors bought a discount retail chain in South America. After purchasing the company, they figured they'd better learn more about discount retailing, so they sent off letters to about ten CEOs of American retailing companies, asking for a meeting to learn about how to run the new company better. All the (p. 41) CEOs either declined or neglected to respond, except one: Sam Walton.

When the Brazilians deplaned at Bentonville, Arkansas, a kindly, white-haired gentleman approached them, inquiring, "Can I help you?"

"Yes, we're looking for Sam Walton."

"That's me," said the man. He led them to his pickup truck, and the Brazilians piled in alongside Sam's dog, Ol' Roy.

Over the next few days, Walton barraged the Brazilians with question after question about their country, retailing in Latin America, and so on, often while standing at the kitchen sink washing and drying dishes after dinner. Finally, the Brazilians realized, Walton-the founder of what may well become the world's first trillion-dollar-per-year corporation-sought first
and foremost to learn from them, not the other way around.



Source:

Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In. New York: HarperCollins Publishers, Inc., 2009.






December 15, 2011

How Entrepreneurship Rebuilt San Francisco After the Fire



(p. 5) At 5:12 a.m. on April 18, 1906, Amadeo Peter Giannini felt an odd sensation, then a violent one, a slight, almost imperceptible shift in his surroundings coupled with a distant rumble like faraway thunder or a train! Pause. One second. Two seconds. Then-bang!-his house in San Mateo, California, began to pitch and shake, to, fro, up, and down. Seventeen miles north in (p. 6) San Francisco, the ground liquefied underneath hundreds of buildings, while heaving spasms under more solid ground catapulted stones and facades into the streets. Walls collapsed. Gas mains exploded. Fires erupted.

Determined to find out what had happened to his fledgling company, the Bank of Italy, Giannini endured a six-hour odyssey, navigating his way into the city by train and then by foot while people streamed in the opposite direction, fleeing the conflagration. Fires swept toward his offices, and Giannini had to rescue all the imperiled cash sitting in the bank. But criminals roamed through the rubble, prompting the mayor to issue a terse proclamation: "Officers have been authorized by me to KILL any and all persons found engaged in Looting or in the Commission of Any Other Crime." With the help of two employees, Giannini hid the cash under crates of oranges on two commandeered produce wagons and made a nighttime journey back to San Mateo, where he hid the money in his fireplace. Giannini returned to San Francisco the next morning and found himself at odds with other bankers who wanted to impose up to a six-month moratorium on lending. His response: putting a plank across two barrels right in the middle of a busy pier and opening for business the very next day. "We are going to rebuild San Francisco," he proclaimed.

Giannini lent to the little guy when the little guy needed it most. In return, the little guy made deposits at Giannini's bank. As San Francisco moved from chaos to order, from order to growth, from growth to prosperity, Giannini lent more to the little guy, and the little guy banked even more with Giannini. The bank gained momentum, little guy by little guy, loan by loan, deposit by deposit, branch by branch, across California, (p. 7) renaming itself Bank of America along the way. In October 1945, it became the largest commercial bank in the world, overtaking the venerable Chase National Bank. (Note of clarification: in 1998, NationsBank acquired Bank of America and took the name; the Bank of America described here is a different company than NationsBank.)



Source:

Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In. New York: HarperCollins Publishers, Inc., 2009.






December 10, 2011

Collins' "How the Mighty Fall" Is Useful Business Book



HowTheMightyFallBK.jpg

















Source of book image: http://www.harpercollins.com/harperimages/isbn/large/9/9780977326419.jpg



Jim Collins' business books are usually sensible, and are full of arresting examples and memorable hypotheses. His latest full-scale research effort (Great by Choice) is just out, but I have not yet read it. In the next few weeks, I will quote a few of the more thought-provoking or useful passages in his 2009 small book How the Mighty Fall.

Book discussed:

Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In. New York: HarperCollins Publishers, Inc., 2009.






December 5, 2011

"Private Life Was Completely Transformed in the Nineteenth Century"



(p. 448) Private life was completely transformed in the nineteenth century - socially, intellectually, technologically, hygienically, sartorially, sexually and in almost any other respect that could be made into an adverb. Mr Marsham was born (in 1822) into a world that was still essentially medieval - a place of candlelight, medicinal leeches, travel at walking pace, news from afar that was always weeks or months old - and lived to see the introduction of one marvel after another: steamships and speeding trains, telegraphy, photography, anaesthesia, indoor plumbing, gas lighting, antisepsis in medicine, refrigeration, telephones, electric lights, recorded music, cars and planes, skyscrapers, motion pictures, radio, and literally tens of thousands of tiny things more, from mass-produced bars of soap to push-along lawnmowers.

It is almost impossible to conceive just how much radical day-to-day change people were exposed to in the nineteenth century, particularly in the second half. Even something as elemental as the weekend was brand new.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





December 1, 2011

Justice for He Who Taxed Unjustly



(p. 444) At the height of the agricultural crisis, the British government under the Liberals did an odd thing. It invented a tax designed to punish a class of people who were already suffering severely and had done nothing in particular to cause the current troubles. The class was large landowners. The tax was death duties. Life was about to change utterly for thousands of people, including our own Mr Marsham.

The designer of the new tax was Sir William George Granville Venables Vernon Harcourt, the chancellor of the exchequer, a man who seems not to have been liked much by anyone at any point in his life, including his own family. Known familiarly, if not altogether affectionately, as 'Jumbo' because of his magnificent rotundity, Harcourt was an unlikely persecutor of the landed classes since he was one of them himself. The Harcourt family home was Nuneham Park in Oxfordshire, which we have visited in this book already. Nuneham, you may remember, was where an earlier Harcourt reconfigured the estate but failed to recollect where the old village well had been, fell into it and drowned. For as long as there had been (p. 445) Tories, the Harcourts had numbered themselves among them, so William's joining of the Liberals was seen within his family as the darkest treachery. Even Liberals were startled by his tax. Lord Rosebery, the prime minister (who was himself a big landowner), wondered if some relief should at least be granted in those cases where two inheritors died in quick succession. It would be harsh, Rosebery thought, to tax an estate a second time before the legatee had had a chance to rebuild the family finances. Harcourt, however, refused all appeals for concessions.

That Harcourt stood almost no chance of inheriting his own family property no doubt coloured his principles. In fact, to his presumed surprise, he did inherit it when his elder brother's son died suddenly, but heirlessly, in the spring of 1904. Harcourt didn't get to enjoy his good fortune long, however. He expired six months later himself, which meant that his heirs were among the first to be taxed twice over in exactly the way that Rosebery had feared and he had dismissed. Life doesn't often get much neater than that.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





November 23, 2011

No Evidence that Parents Were Ever Indifferent to the Well-Being of Their Children



(p. 404) No one expressed parental loss better (as no one expressed most things better) than William Shakespeare. These lines are from King John, written soon after his son Hamnet died at the age of eleven in 1596:

Grief fills the room up of my absent child
Lies in his bed, walks up and down with me,
Puts on his pretty looks, repeats his words,
Remembers me of all his gracious parts,
Stuffs out his vacant garments with his form.

(p. 405) These are not the words of someone for whom children are a product, and there is no reason to suppose - no evidence anywhere, including that of common sense - that parents were ever, at any point in the past, commonly indifferent to the happiness and well-being of their children. One clue lies in the name of the room in which we are now. 'Nursery' is first recorded in English in 1330 and has been in continuous use ever since. A room exclusively dedicated to the needs and comforts of children would hardly seem consistent with the belief that children were of no consequence within the household. No less significant is the word 'childhood' itself. It has existed in English for over a thousand years (the first recorded use is in the Lindisfarne Gospels circa AD 950), so whatever it may have meant emotionally to people, as a state of being, a condition of separate existence, it is indubitably ancient. To suggest that children were objects of indifference or barely existed as separate beings would appear to be a simplification at best.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original.)





November 22, 2011

The Costs of Altruism



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Source of book image: http://www.barbaraoakley.com/_font_face__book_antiqua___font_size__3___i__b_pathological_altruism__i___b__106998.htm



(p. D1) On entering the patient's room with spinal tap tray portentously agleam, Dr. Burton encountered the patient's family members. They begged him not to proceed. The frail, bedridden patient begged him not to proceed. Dr. Burton conveyed their pleas to the oncologist, but the oncologist continued to lobby for a spinal tap, and the exhausted family finally gave in.


. . .


(p. D2) . . . , Dr. Burton is a contributor to a scholarly yet surprisingly sprightly volume called "Pathological Altruism," to be published this fall by Oxford University Press. . . .

As the new book makes clear, pathological altruism is not limited to showcase acts of self-sacrifice, like donating a kidney or a part of one's liver to a total stranger. The book is the first comprehensive treatment of the idea that when ostensibly generous "how can I help you?" behavior is taken to extremes, misapplied or stridently rhapsodized, it can become unhelpful, unproductive and even destructive.


. . .


David Brin, a physicist and science fiction writer, argues in one chapter that sanctimony can be as physically addictive as any recreational drug, and as destabilizing. "A relentless addiction to indignation may be one of the chief drivers of obstinate dogmatism," he writes. . . .

Barbara Oakley, an associate professor of engineering at Oakland University in Michigan and an editor of the new volume, said in an interview that when she first began talking about its theme at medical or social science conferences, "people looked at me as though I'd just grown goat horns. They said, 'But altruism by definition can never be pathological.' "

To Dr. Oakley, the resistance was telling. "It epitomized the idea 'I know how to do the right thing, and when I decide to do the right thing it can never be called pathological,' " she said.


. . .


Yet given her professional background, Dr. Oakley couldn't help doubting altruism's exalted reputation. "I'm not looking at altruism as a sacred thing from on high," she said. "I'm looking at it as an engineer."



For the full story, see:

NATALIE ANGIER. "BASICS; The Pathological Altruist Gives Till Someone Hurts." The New York Times (Tues.,October 4, 2011): D1 & D2.

(Note: ellipses added.)

(Note: the online version of the article is dated October 3, 2011.)





November 15, 2011

Patent on Cotton Gin Not Enough for Whitney to Get Rich




(p. 395) Whitney patented his 'gin' (a shortened form of 'engine') and prepared to become stupendously wealthy.


. . .


(p. 396) . . . , the gin truly was a marvel. Whitney and Miller formed a partnership with every expectation of getting rich, but they were disastrous businessmen. For the use of their machine, they demanded a one-third share of any harvest - a proportion that plantation owners and southern legislators alike saw as frankly rapacious. That Whitney and Miller were both Yankees didn't help sentiment either. Stubbornly they refused to modify their demands, convinced that southern growers could not hold out in the face of such a transforming piece of technology. They were right about the irresistibility, but failed to note that the gin was also easily pirated. Any halfway decent carpenter could knock one out in a couple of hours. Soon plantation owners across the south were harvesting cotton with home-made gins. Whitney and Miller filed sixty suits in Georgia and many others elsewhere, but found little sympathy in southern courts. By 1800 - just seven years after the gin's invention - Miller and Catharine Greene were in such desperate straits that they had to sell the plantation.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipses added.)





November 11, 2011

Unable to Compete with Cotton "European Textile Workers Bayed for Protection"



(p. 390) Cotton is such a commonplace material now that we forget that it was once extremely precious - more valuable than silk. But then in the seventeenth century, the East India Company began importing calicoes from India (from the city of Calicut, from which they take their name), and suddenly cotton became affordable. Calico was then essentially a collective term for chintzes, muslins, percales and other colourful fabrics, which caused unimaginable delight among western consumers because they were light and washable and the colours didn't run. Although some cotton was grown in Egypt, India dominated the cotton trade, as we are reminded by the endless numbers of words that came into English by way of that trade: khaki, dungarees, gingham, muslin, pyjamas, shawl, seersucker, and so on.

The sudden surge of Indian cotton pleased consumers, but not (p. 391) manufacturers. Unable to compete with this wonder fabric, European textile workers bayed for protection almost everywhere, and almost everywhere they received it. The importation of finished cotton fabrics was banned in much of Europe throughout the eighteenth century.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original.)





November 9, 2011

Schumpeter's Simile for Capitalist Mobility



(p. 156) In fact, the upper strata of society are like hotels which are indeed always full of people, but people who are forever changing.



Source:

Schumpeter, Joseph A. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Translated by Redvers Opie. translation of 2nd German edition that appeared in 1926; translation first published by Harvard in 1934 ed. New Brunswick, NJ: Transaction Publishers, 1983.





November 7, 2011

The Penalty for Insulting the Future King



(p. 390) Brummell's fall from grace was abrupt and irreversible. He and the Prince of Wales had a falling out and ceased speaking. At a social occasion, the prince pointedly ignored Brummell and instead spoke to his companion. As the prince withdrew, Brummell turned to the companion and made one of the most famously ill-advised remarks in social history. 'Who's your fat friend?' he asked. Such an insult was social suicide. Shortly afterwards Brummell's debts caught up with him and he fled to France. He spent the last two and a half decades of his life living in poverty, mostly in Calais, growing slowly demented but always looking, in his restrained and careful way, sensational.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





November 3, 2011

Wigmakers Petitioned King "to Make Wig-Wearing by Males Compulsory"



(p. 384) . . . , pretty abruptly, wigs went out of fashion. Wigmakers, in desperation, petitioned George III to make wig-wearing by males compulsory, but the king declined. By the early 1800s nobody wanted them and old wigs were commonly used as dust mops. Today they survive only in certain courtrooms in Britain and the Commonwealth. Judicial wigs these days are made of horsehair and cost about £600,

I'm told. To avoid a look of newness - which many lawyers fear might suggest inexperience - new wigs are customarily soaked in tea to give them a suitable air of age.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





October 29, 2011

Statute of Caps "Required People to Wear Caps Instead of Hats"



(p. 381) Sumptuary laws were enacted partly to keep people within their class, but partly also for the good of domestic industries, since they were often designed to depress the importation of foreign materials. For the same reason for a time there was a Statute of Caps, aimed at helping national capmakers through a depression, which required people to wear caps instead of hats. For obscure reasons, Puritans resented the law and were often fined for flouting it. But on the whole sumptuary laws weren't much enforced. Various clothing restrictions were enshrined in (p. 382) statutes in 1337, 1363, 1463, 1483, 1510, 1533 and 1554, but records show they were never much enforced. They were repealed altogether in 1604.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 27, 2011

Schumpeter on the Difference Between "Making a Road and Walking Along It"



(p. 85) Carrying out a new plan and acting according to a customary one are things as different as making a road and walking along it.



Source:

Schumpeter, Joseph A. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Translated by Redvers Opie. translation of 2nd German edition that appeared in 1926; translation first published by Harvard in 1934 ed. New Brunswick, NJ: Transaction Publishers, 1983.






October 26, 2011

Arabic Numerals Enabled Better Accounting Systems



ManOfNumbersBK2011-08-08.jpg













Source of book image: online version of the WSJ review quoted and cited below.






(p. A13) Humans have been recording counts for at least 35,000 years, if the notches in a Paleolithic-era baboon's fibula are an indicator.


. . .


Before the 13th century, European businessmen recorded figures in Roman numerals and computed with their fingers or a counting board. But these creaky accounting systems began to buckle under the growing complexity of regional and international finance. In 1202, Leonardo of Pisa--better known by his family name, Fibonacci--published the "Liber Abbaci," or "Book of Calculation," a 600-page tome detailing the rules of Hindu-Arabic arithmetic and algebra. Fibonacci's volume was directed not to scholars but to merchants, the first work in the West to demonstrate the commercial utility of Eastern mathematics. The book was an instant success and propelled the Pisan maestro d'abbaco to fame.

The "Liber Abbaci" inspired a flood of regionally produced (and lesser) primers on the subject. Arithmetic schools sprang up throughout Italy and would eventually count among their pupils da Vinci and Machiavelli. German merchants flocked to Venice during the 1300s to learn the new accounting practices. In "The Man of Numbers," mathematician Keith Devlin makes the case that Fibonacci's book spearheaded the decline and fall of the Roman numeral and transformed scientific, technological and commercial calculation in the West.

At age 15, Fibonacci accompanied his father, a Pisan trade representative, to the North African port of Bugia (now Bejaia, in Algeria). In the preface to "Liber Abbaci," Fibonacci writes of his early introduction to the "art of the nine Indian figures" and their computational power. After more than a decade of his own studies and tutelage under Arabic mathematicians across North Africa, he returned to Pisa to write his masterwork. Such was the acclaim that Fibonacci appeared before Emperor Frederick II--a colorful intellectual who referred to himself as Stupor mundi or Wonder of the World--and vanquished the emperor's court mathematician in an arithmetic duel.


. . .


. . . as Mr. Devlin reminds us, even something as prosaic as a sequence of 10 numbers can remake an entire world.



For the full review, see:

ALAN HIRSHFELD. "BOOKSHELF; Counting On Progress; Roman numerals were fine for adding and subtracting. Fibonacci saw that complex math required a better system." The Wall Street Journal (Thurs., JULY 7, 2011): A13.

(Note: ellipses added; italics in original.)


Book under review:

Devlin, Keith. The Man of Numbers: Fibonacci's Arithmetic Revolution. New York: Walker & Company, 2011.





October 25, 2011

The Huge Value of Exposing Ourselves to Unexpected Evidence




Bill Bryson tells how much we learned from the remains of a man from the neolithic age, who has been called Ötzi:


(p. 377) His equipment employed eighteen different types of wood - a remarkable variety. The most surprising of all his tools was the axe. It was copper-bladed and of a type known as a Remedello axe, after a site in Italy where they were first found. But Ötzi's axe was hundreds of years older than the oldest Remedello axe. 'It was,' in the words of one observer, 'as if the tomb of a medieval warrior had yielded a modern rifle.' The axe changed the timeframe for the copper age in Europe by no less than a thousand years.

But the real revelation and excitement were the clothes. Before Ötzi we had no idea - or, to be more precise, nothing but ideas - of how stone age people dressed. Such materials as survived existed only as fragments. Here was a complete outfit and it was full of surprises. His clothes were made from the skins and furs of an impressive range of animals - red deer, bear, chamois, goat and cattle. He also had with him a woven grass rectangle that was three feet long. This might have been a kind of rain cape, but it might equally have been a sleeping mat. Again, nothing like it had ever been seen or imagined.

Ötzi wore fur leggings held up with leather strips attached to a waist strap that made them look uncannily - almost comically - like the kind of nylon stockings and garter sets that Hollywood pin-ups wore in the Second World War. Nobody had remotely foreseen such a get-up. He wore a loincloth of goatskin and a hat made from the fur of a brown bear - probably a kind of hunting trophy. It would have been very warm and covetably stylish. The rest of his outfit was mostly made from the skin and fur of red deer. Hardly any came from domesticated animals, the opposite of what was expected.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 24, 2011

Reasons to Hope for 150 Year Life Span



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Source of book image: online version of the WSJ review quoted and cited below.






(p. A13) Ms. Arrison is in the hopeful camp. She recounts advances in stem-cell research, pharmaceuticals and synthetic biology. And the tinkering with genes still goes on. We learn about Dr. Cynthia Kenyon at the University of California in San Francisco, who discovered that the life span of the tiny worm Caenorhabditis elegans could be doubled by partially disabling a single gene. Further improvements on the technique resulted in worms living six times longer than normal. "In human terms," Ms. Arrison says, "they be the equivalent of healthy, active five-hundred-year-olds." That may be a bit much to expect, but Ms. Arrison says she is confident that "human life expectancy will one day reach 150 years."


. . .


What is more, technology heavyweights are paying attention, including Bill Gates (if he were a teenager today, Mr. Gates once said, he'd be "hacking biology") and Jeff Bezos ("atom by atom we'll assemble small machines that will enter cell walls and make repairs"). Larry Ellison, of Oracle, started a foundation more than a decade ago to support anti-aging research; the institution donates about $42 million a year.


. . .


And if humans do begin living to 150, then what?


. . .


. . . , Ms. Arrison argues that apocalyptic prophecies are unlikely to be realized. Increasing wealth and mankind's adaptability and ingenuity mean that as new problems emerge, new solutions will be forthcoming. "In looking at the trends of history," she says, "we can see that even when there are downsides to a particular wealth- or health-enhancing technology, the problem is often fixed once the population reaches a point where it feels secure in spending the resources to do so."



For the full review, see:

NICK SCHULZ. "BOOKSHELF; Bioengineering Methuselah; Human beings living to be 150? And you thought Social Security and Medicare were in trouble now." The Wall Street Journal (Weds., August 31, 2011): A13.

(Note: ellipses added.)


Book under review:

Arrison, Sonia. 100 Plus: How the Coming Age of Longevity Will Change Everything, from Careers and Relationships to Family and Faith. New York: Basic Books, 2011.





October 22, 2011

Easter Island Was Ravaged by Rats, Peruvian Slaving Parties and Nonnative Diseases, Not by Ecocide



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Source of book image: http://0.tqn.com/d/archaeology/1/0/g/L/1/Statues-That-Walked-sm.jpg





The natives call Easter Island "Rapa Nui."



(p. C5) With the forest gone, Rapa Nui's soil degraded; unable to feed themselves, Mr. Diamond argued in his best-selling "Collapse" (2005), Easter Islanders faced "starvation, a population crash, and a descent into cannibalism." The fall was abrupt and overwhelming; scores of giant statues were abandoned, half-finished. Roggeveen had discovered a ruin--and a powerful eco-parable.

Books and articles by the hundred have pointed to Rapa Nui as the inevitable result of uncontrolled population growth, squandered resources and human fecklessness. "The person who felled the last tree could see it was the last tree," wrote Paul G. Bahn and John Flenley in "Easter Island, Earth Island" (1992). "But he (or she) still felled it." "The parallels between Easter Island and the whole modern world are chillingly obvious," Mr. Diamond proclaimed. "The clearest example of a society that destroyed itself by overexploiting its own resources," he said, Rapa Nui epitomizes "ecocide," presenting a stark image of "what may lie ahead of us in our own future."

No, it doesn't, write archaeologists Terry Hunt and Carl Lipo in "The Statues That Walked," a fascinating entry in the pop-science genre of Everything You Know Is Wrong. Messrs. Hunt and Lipo had no intention of challenging Mr. Diamond when they began research on Rapa Nui. But in their fourth year of field work, they obtained radiocarbon dates from Anakena Beach, thought to be the island's oldest settlement. The dates strongly indicated that the first settlers appeared around A.D. 1200--eight centuries later than Heyerdahl and other researchers had thought.

Wait a minute, the authors in effect said. Rapa Nui is so remote that researchers believe it must have been settled by a small group of adventurers--a few dozen people, brave or crazy, in boats. The new evidence suggested that their arrival had precipitated catastrophic deforestation "on the scale of decades, not centuries." The island then probably had only a few hundred inhabitants. Some ecologists estimate that the island originally had 16 million palm trees. How could so few people have cut down so much so fast?


. . .


The real culprit, according to "The Statues That Walked," was the Polynesian rat (Rattus exulans), which stowed away on the boats of the first Polynesian settlers. In laboratory settings, Polynesian rat populations can double in 47 days. Throw a breeding pair into an island with no predators and abundant food and arithmetic suggests the result: ratpocalypse. If the animals multiplied as they did in Hawaii, the authors calculate, Rapa Nui would quickly have housed between two and three million. Among the favorite food sources of R. exulans are tree seeds and tree sprouts. Humans surely cleared some of the forest, but the real damage would have come from the rats that prevented new growth.

"Rather than a case of abject failure," the authors argue, "Rapa Nui is an unlikely story of success." The islanders had migrated, perhaps accidentally, to a place with little water and "fundamentally unproductive" soil with "uniformly low" levels of phosphorus, an essential mineral for plant growth. To avoid the wind's dehydrating effects, the newcomers circled their gardens with stone walls known as manavai. Today, the researchers discovered, abandoned manavai occupy about 6.4 square miles, a tenth of the island's total surface.

More impressive still, about half of the island is covered by "lithic mulching," in which the islanders scattered broken stone over the fields. The uneven (p. C6) surface creates more turbulent airflow, reducing daytime surface temperatures and warming fields at night. And shattering the rocks exposes "fresh, unweathered surfaces, thus releasing mineral nutrients held within the rock." Only lithic mulching produced enough nutrients--just barely--to make Rapa Nui's terrible soil cultivable. Breaking and moving vast amounts of stone, the islanders had engineered an entirely new, more productive landscape.

Their success was short-lived. As Messrs. Hunt and Lipo point out, the 18th and 19th centuries were terrible times to reside in a small, almost defenseless Pacific nation. Rapa Nui was repeatedly ravaged by Peruvian slaving parties and nonnative diseases.


. . .


Easter Island's people did not destroy themselves, the authors say. They were destroyed.


. . .


Oral tradition said that the statues walked into their places. Oral tradition was correct, the authors say. By shaping the huge statues just right, the islanders were able to rock them from side to side, moving them forward in a style familiar to anyone who has had to move a refrigerator. Walking the statues, the authors show in experiments, needed only 15 or 20 people.

In a 2007 article in Science, Mr. Diamond estimated that hundreds of laborers were needed to move the statues, suggesting that the eastern settlements of the island alone had to have "a population of thousands"--which in turn was proof of the island's destructive overpopulation. By showing that the statues could have been moved by much fewer people, Messrs. Hunt and Lipo have removed one of the main supports of the ecocide theory and the parable about humankind it tells.



For the full review, see:

CHARLES C. MANN. "Don't Blame the Natives; It was a rat that caused the sudden collapse of Easter Island's civilization." The Wall Street Journal (Sat., JULY 30, 2011): C5-C6.

(Note: ellipses added; italics in original.)


Source of book under review:

Hunt, Terry, and Carl Lipo. The Statues That Walked: Unraveling the Mystery of Easter Island. New York: Free Press, 2011.





October 21, 2011

Bathtubs Started Out "Extremely Expensive" and Then Prices Fell




(p. 372) At last the world had baths that looked good and stayed looking good for a long time. But they were still extremely expensive. A bath alone could easily cost $200 in 1910 - a price well beyond the range of most households. But as manufacturers improved the processes of mass manufacture, prices fell and by 1940 an American could buy an entire bath suite - sink, bath and toilet - for $70, a price nearly everyone could afford.

Elsewhere, however, baths remained luxuries. In Europe a big part of the problem was a lack of space in which to put bathrooms. In 1954 just one French residence in ten had a shower or bath. In Britain the journalist Katharine Whitehorn has recalled that as recently as the late 1950s she and her colleagues on the magazine Woman's Own were not allowed to do features on bathrooms as not enough British homes had them, and such articles would only promote envy.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 17, 2011

The Lancet Accused Snow of Being "in the Pocket of Business Interests"




(p. 365) It is hard now to appreciate just how radical and unwelcome Snow's views were. Many authorities actively detested him for them. The Lancet concluded that he was in the pocket of business interests which wished to continue to fill the air with 'pestilent vapours, miasms and loathsome abominations of every kind' and make themselves rich by poisoning their neighbours. 'After careful enquiry,' the parliamentary inquiry concluded, 'we see no reason to adopt this belief.'


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original.)





October 16, 2011

Finance and Strategy Should Be More Integrated



ChristensenClayton2011-07-19.jpg"'God never said that finance and strategy are fundamentally different functions.' --Clayton Christensen" Source of caption and photo: online version of the WSJ interview quoted and cited below.




MR. MURRAY: We've talked about the innovator's dilemma, but what's the solution?

MR. CHRISTENSEN: The financial function stands in the way of much of this. God never said that finance and strategy are fundamentally different functions, yet the business schools decided to teach strategy and teach finance. This gets implemented in companies where strategy is the responsibility of this group, and finance this group. And a lot of the things that make sense financially make no sense strategically.


. . .


MR. MURRAY: The United States has led the world in various types of innovation for much of the past century. Is that something that will continue?

MR. CHRISTENSEN: I am very worried about America. I was thinking about this hard over the past year. It turns out that the majority of the entrepreneurs that made Silicon Valley happen weren't Americans. They were from Israel, China and India. We were a magnet to bring to our shores the best technologists in the world. Now our message to the rest of the world is, "You guys, we don't want you." The minute we say that and push those to Singapore and to Britain and elsewhere, I worry.



For the full interview, see:

Alan Murray, interviewer. "The Innovator's Solution; Clayton Christensen, Glenn Hutchins and Ellen Kullman on being cutting edge--without breaking the bank." The Wall Street Journal (Weds., June 27, 2011): C9.

(Note: bold and italics in original; ellipsis added.)





October 14, 2011

Larry Page's Wonderful Crusade to Save Us Time



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Source of book image: http://www.kurzweilai.net/images/intheplex.jpg




On C-SPAN's book TV I saw the last part of an interesting and entertaining interview with Steven Levy that was originally recorded at the Computer History Museum on April 6, 2011. Levy is the author of of In the Plex which I have not read, but which is now on my to-read list.

At the end of the interview, Levy read a passage from his book about how Larry Page is obsessed with reducing latency, which is a technical term for how long we have to wait for something to happen on a computer.

Isn't it wonderful that Larry Page is on a crusade to save us from wasted time?


Book discussed above:

Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.

(Note: "latency" appears on the following pages of Steven Levy's book: 93, 184, 185, 186, 187, 207, 262, and 398.)






October 13, 2011

Only John Snow Saw Flaw in Miasma Theory




(p. 362) The miasma theory had just one serious flaw: it was entirely without foundation. Unfortunately only one man saw this, and he couldn't get others to see it with him. His name was John Snow.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 12, 2011

If Truman Had Not Used the Bomb, Hundreds of Thousands More American Soldiers Would Have Died



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Source of book image: online version of the WSJ review quoted and cited below.






(p. A15) . . . , the author reminds us of the hundreds of thousands of Japanese who had died in the conventional bombings of places like Tokyo and Kyoto while Roosevelt was president, but with relatively little opprobrium attaching to FDR. Father Miscamble cites as well the horrific massacre of innocents for which the Japanese were responsible, a savagery still being unleashed in the summer of 1945, and the awful cost of battle in the Pacific, including 6,000 American dead and 20,000 wounded at Iwo Jima and 70,000 casualties suffered while capturing Okinawa. With these precedents, Herbert Hoover warned Truman that an invasion of the Japanese home islands could result in the loss of between half a million and a million American lives. Marshall, Leahy and Gen. Douglas MacArthur each had his own projected figures, none of them wildly different from Hoover's.

Under these circumstances, it was inconceivable that Truman would not have ordered the use of a potentially war-winning weapon the moment it could be deployed. It is impossible to imagine the depth of the public's fury if after the war Americans had discovered that their president, out of concern for his own conscience, had not used the weapons but instead condemned hundreds of thousands of American soldiers to certain death on the beaches and in the cities of mainland Japan.



For the full review, see:

ANNE JOLIS. "BOOKSHELF; In Defense Of 'Little Boy'; Herbert Hoover warned President Truman that invading Japan would cost at least half a million American lives." The Wall Street Journal (Weds., July 13, 2011): A15.

(Note: ellipsis added.)


Book reviewed:

Miscamble, Wilson D. The Most Controversial Decision: Truman, the Atomic Bombs, and the Defeat of Japan, Cambridge Essential Histories. New York: Cambridge University Press, 2011.






October 9, 2011

The Stinking Past




(p. 356) The people who cleaned cesspits were known as nightsoil men, and if there has ever been a less enviable way to make a living I believe it has yet to be described. They worked in teams of three or four. One man - the most junior, we may assume - was lowered into the pit itself to scoop waste into buckets. A second stood by the pit to raise and lower the buckets, and the third and fourth carried the buckets to a waiting cart. Nightsoil work was dangerous as well as disagreeable. Workers ran the risk of asphyxiation and even of explosions since they worked by the light of a lantern in powerfully gaseous environments. The Gentleman's Magazine in 1753 related the case of one nightsoil man who went into a privy vault in a London tavern and was overcome almost at once by the foul air. 'He call'd out for help, and immediately fell down on his face,' one witness reported. A colleague who rushed to the man's aid was similarly overcome. Two more men went to the vault, but could not get in because of the foul air, though they did manage to open the door a little, releasing the worst (p. 357) of the gases. By the time rescuers were able to haul the two men out, one was dead and the other was beyond help.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 6, 2011

"Insanely Great" Entrepreneur Steve Jobs Wanted "a Chance to Change the World"



Steve Jobs died yesterday (Weds., October 5, 2011).

Jobs was an innovator of my favorite kind, what I call a "project entrepreneur." He showed us what excitement and progress is possible if we preserve the institutions that allow entrepreneurial capitalism to exist.

When he was recruiting John Sculley to leave Pepsi and join Apple, Jobs asked him: "Do you want to spend the rest of your life selling sugared water or do you want a chance to change the world?" (p. 90).

Steve Jobs wanted to change the world. He got the job done.


Source of quote of Jobs' question to Sculley:

Sculley, John, and John A. Byrne. Odyssey: Pepsi to Apple. paperback ed. New York: HarperCollins, 1988.






October 5, 2011

In Middle Ages "Nearly Everyone Itched Nearly All the Time"




(p. 346) . . . in the Middle Ages the spread of plague made people consider more closely their attitude to hygiene and what they might do to modify their own susceptibility to outbreaks. Unfortunately, people everywhere came to exactly the wrong conclusion. All the best minds agreed that bathing opened the epidermal pores and encouraged deathly vapours to invade the body. The best policy was to plug the pores with dirt. For the next six hundred years most people didn't wash, or even get wet, if they could help it - and in consequence they paid an uncomfortable price. Infections became part of everyday life. Boils grew commonplace. Rashes and blotches were routine. Nearly everyone itched nearly all the time. Discomfort was constant, serious illness accepted with resignation.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





October 4, 2011

Neuroscientist Sees Entrepreneurs as "Never Satisfied" Due to "Attenuated Dopamine Function"



Compass-of-Pleasure-BK.jpg














Source of book image: http://www.kurzweilai.net/images/The-Compass-of-Pleasure-Linden-David-J-9780670022588.jpg





David J. Linden is the author of The Compass of Pleasure and a Johns Hopkins University School of Medicine Professor of Neuroscience.



(p. 4) . . . , the psychological profile of a compelling leader -- think of tech pioneers like Jeff Bezos, Larry Ellison and Steven P. Jobs -- is also that of the compulsive risk-taker, someone with a high degree of novelty-seeking behavior. In short, what we seek in leaders is often the same kind of personality type that is found in addicts, whether they are dependent on gambling, alcohol, sex or drugs.

How can this be? We typically see addicts as weak-willed losers, and chief executives and entrepreneurs are people with discipline and fortitude. To understand this apparent contradiction we need to look under the hood of the brain, and in particular at the functions that relate to pleasure and reward.


. . .


Crucially, genetic variants that suppress dopamine signaling in the pleasure circuit substantially increase pleasure- and novelty-seeking behaviors -- their bearers must seek high levels of stimulation to reach the same level of pleasure that others can achieve with more moderate indulgence. Those blunted dopamine receptor variants are associated with substantially increased risk of addiction to a range of substances and behaviors.


. . .


The risk-taking, novelty-seeking and obsessive personality traits often found in addicts can be harnessed to make them very effective in the workplace. For many leaders, it's not the case that they succeed in spite of their addiction; rather, the same brain wiring and chemistry that make them addicts also confer on them behavioral traits that serve them well.

So, when searching for your organization's next leader, look for someone with an attenuated dopamine function: someone who is never satisfied with the status quo, someone who wants the feeling of success more than others -- but likes it less.



For the full commentary, see:

DAVID J. LINDEN. "Addictive Personality? You Might be a Leader." The New York Times, SundayReview Section (Sun., July 24, 2011): 4.

(Note: ellipses added.)

(Note: the online version of the commentary is dated July 23, 2011.)


The book mentioned above is:

Linden, David J. The Compass of Pleasure: How Our Brains Make Fatty Foods, Orgasm, Exercise, Marijuana, Generosity, Vodka, Learning, and Gambling Feel So Good. New York: Viking Adult, 2011.





October 1, 2011

Americans Resented Being Kept as a Captive Market




(p. 300) This suppression of free trade greatly angered the Scottish economist Adam Smith (whose Wealth of Nations, not coincidentally, came out the same year that America declared its independence) but not nearly as much as it did the Americans, who naturally resented the idea of being kept eternally as a captive market. It would be overstating matters to suggest that the exasperations of commerce were the cause of the American revolution, but they were certainly a powerful component.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 30, 2011

American Gangster as Destructive Entrepreneur



Denzel_Washington_American_Gangster2011-08-09.jpgSource of image: http://celebritywonder.ugo.com/wp/Denzel_Washington_in_American_Gangster_Wallpaper_12_1280.jpg



William Baumol famously categorized entrepreneurs as productive, unproductive, or destructive. (Somewhat similarly, Burt Folsom distinguished market entrepreneurs from political entrepreneurs.) Baumol's view is that we cannot much influence the supply of entrepreneurs, but good policies can increase the percent of entrepreneurs who are productive.

Frank Lucas, at least as portrayed in the 2007 film American Gangster, is an apt example of the destructive entrepreneur. As portrayed by Denzel Washington, the character is intense, willing to take risks, and works hards. There is a scene where Lucas argues that the quality of his product (cocaine) must not be adulterated, because his business depends on his customers knowing that his brand is better than that of competitors. He finds ways of making his supply chain shorter, and his distribution system more trustworthy (by hiring brothers and cousins).

One can easily imagine that with different incentives and constraints, the Denzel Washington character might have brought the world a product that made the world better, rather than worse.


The Baumol article mentioned is:

Baumol, William J. "Entrepreneurship: Productive, Unproductive, and Destructive." The Journal of Political Economy 98, no. 5, Part 1 (Oct. 1990): 893-921.


The Folsom book mentioned is:

Folsom, Burton W. The Myth of the Robber Barons. 4th ed: Young America's Foundation, 2003 (1st ed. 1987).





September 29, 2011

McKinsey Finds 30% of Employers Will Drop Health Coverage in Response to Obamacare



McKinsey is probably the best known business consulting and forecasting firm in the United States. Many well-known management gurus, and corporate executives, have spent time working for McKinsey (as did Chelsea Clinton). One of their senior partners (Foster) co-authored a useful book called Creative Destruction.


(p. A2) A report by McKinsey & Co. has found that 30% of employers are likely to stop offering workers health insurance after the bulk of the Obama administration's health overhaul takes effect in 2014.


. . .


Previous research has suggested the number of employers who opt to drop coverage altogether in 2014 would be minimal.

But the McKinsey study predicts a more dramatic shift from employer-sponsored health plans once the new marketplace takes effect. Starting in 2014, all but the smallest employers will be required to provide insurance or pay a fine, while most Americans will have to carry coverage or pay a different fine. Lower earners will get subsidies to help them pay for plans.

In surveying 1,300 employers earlier this year, McKinsey found that 30% said they would "definitely or probably" stop offering employer coverage in the years after 2014. That figure increased to more than 50% among employers with a high awareness of the overhaul law.



For the full story, see:

JANET ADAMY. "Study Sees Cuts to Health Plans." The Wall Street Journal (Weds., JUNE 8, 2011): A15.

(Note: ellipsis added.)


The Foster book is:

Foster, Richard N., and Sarah Kaplan. Creative Destruction: Why Companies That Are Built to Last Underperform the Market---and How to Successfully Transform Them. New York: Currency Books, 2001.






September 28, 2011

We Tend to Ignore Information that Contradicts Our Beliefs



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Source of book image: online version of the WSJ review quoted and cited below.






We learn the most when our priors are contradicted. But the dissonance between evidence and beliefs is painful. So we often do not see, or soon forget, evidence that does not fit with our beliefs.

The innovative entrepreneur is often a person who sees and forces herself to remember, the dissonant fact, storing it away to make sense of, or make use of, later. At the start, she may be alone in what she sees and what she remembers. So if we are to benefit from her ability and willingness to bear the pain of dissonance, she must have the freedom to differ, and she must have the financial wherewith-all to support herself until her vision is more widely shared, better understood, and more fruitfully applied.


(p. A13) Beliefs come first; reasons second. That's the insightful message of "The Believing Brain," by Michael Shermer, the founder of Skeptic magazine. In the book, he brilliantly lays out what modern cognitive research has to tell us about his subject--namely, that our brains are "belief engines" that naturally "look for and find patterns" and then infuse them with meaning. These meaningful patterns form beliefs that shape our understanding of reality. Our brains tend to seek out information that confirms our beliefs, ignoring information that contradicts them. Mr. Shermer calls this "belief-dependent reality." The well-worn phrase "seeing is believing" has it backward: Our believing dictates what we're seeing.


. . .


One of the book's most enjoyable discussions concerns the politics of belief. Mr. Shermer takes an entertaining look at academic research claiming to prove that conservative beliefs largely result from psychopathologies. He drolly cites survey results showing that 80% of professors in the humanities and social sciences describe themselves as liberals. Could these findings about psychopathological conservative political beliefs possibly be the result of the researchers' confirmation bias?

As for his own political bias, Mr. Shermer says that he's "a fiscally conservative civil libertarian." He is a fan of old-style liberalism, as in liberality of outlook, and cites "The Science of Liberty" author Timothy Ferris's splendid formulation: "Liberalism and science are methods, not ideologies." The "scientific solution to the political problem of oppressive governments," Mr. Shermer says, "is the tried-and-true method of spreading liberal democracy and market capitalism through the open exchange of information, products, and services across porous economic borders."

But it is science itself that Mr. Shermer most heartily embraces. "The Believing Brain" ends with an engaging history of astronomy that illustrates how the scientific method developed as the only reliable way for us to discover true patterns and true agents at work. Seeing through a telescope, it seems, is believing of the best kind.



For the full review, see:

RONALD BAILEY. "A Trick Of the Mind; Looking for patterns in life and then infusing them with meaning, from alien intervention to federal conspiracy." The Wall Street Journal (Weds., July 27, 2011): A13.

(Note: ellipsis added.)


Book reviewed:

Shermer, Michael. The Believing Brain: From Ghosts and Gods to Politics and Conspiracies---How We Construct Beliefs and Reinforce Them as Truths. New York: Times Books, 2011.





September 27, 2011

Brits Sent Low Quality Goods to American Colonists




(p. 299) It was easy - and for many agents irresistibly tempting - to offload on to Americans clothes and furnishings that were unsold because they were no longer fashionable in England. 'You cannot really form an idea of the trash that is to be found in the best shops,' an English visitor named Margaret Hall wrote home to a friend. A cheerful catchphrase of English (p. 300) factories became: 'It's good enough for America.' Being over-charged was a constant suspicion. Washington wrote furiously to Cary after one consignment that many of the products supplied were 'mean in quality but not in price, for in this they excel indeed far above any I have ever had'.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 23, 2011

Navigation Acts, Were "Insanely Inefficient, but Gratifyingly Lucrative to British Merchants and Manufacturers"




(p. 297) Many of Monticello's quirks spring from the limitations of Jefferson's workmen. He had to stick to a simple Doric style for the exterior columns because he could find no one with the skills to handle anything more complex. But the greatest problem of all, in terms of both expense and frustration, was a lack of home-grown materials. It is worth taking a minute to consider what the American colonists were up against in trying to build a civilization in a land without infrastructure.

(p. 298) Britain's philosophy of empire was that America should provide it with raw materials at a fair price and take finished products in return. The system was enshrined in a series of laws known as the Navigation Acts, which stipulated that any product bound for the New World had either to originate in Britain or pass through it on the way there, even if it had been created in, say, the West Indies, and ended up making a pointless double crossing of the Atlantic. The arrangement was insanely inefficient, but gratifyingly lucrative to British merchants and manufacturers, who essentially had a fast-growing continent at their commercial mercy. By the eve of the revolution America effectively was Britain's export market. It took 80 per cent of British linen exports, 76 per cent of exported nails, 60 per cent of wrought iron and nearly half of all the glass sold abroad. In bulk terms, America annually imported 30,000 pounds of silk, 11,000 pounds of salt and over 130,000 beaver hats, among much else. Many of these things - not least the beaver hats - were made from materials that originated in America in the first place and could easily have been manufactured in American factories - a point that did not escape the Americans.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 22, 2011

Deregulation Revived Railroads



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"ALL ABOARD: The Wasp magazine in 1881 lampooned railroad moguls as having regulators in the palms of their hands." Source of caricature: online version of the WSJ article quoted and cited below.




(p. C8) Mr. Klein has written thoroughly researched and scrupulously objective biographies of the previously much maligned Jay Gould and E.H. Harriman, remaking their public images by presenting them in full. Now he has published the third and final volume of his magisterial history of the Union Pacific railroad, taking the company from 1969 to the present day.

Union Pacific--the only one of the transcontinentals to remain in business under its original name--is now a flourishing business. Thanks to a series of mergers, it is one of the largest railroads in the world, with more than 37,000 miles of track across most of the American West. Thanks to its investment in new technology, it is also among the most efficient.

In 1969, though, the future of American railroading was in doubt as the industry struggled against competition from airplanes, automobiles and trucks--all of which were in effect heavily subsidized through the government's support for airports and the Interstate Highway System.

Another major factor in the decline of the railroads had been the stultifying hand of the Interstate Commerce Commission. The ICC had come into existence in the late 19th century to limit the often high-handed ways of the railroads as they wrestled with the difficult economics of an industry that has very high fixed costs. ( . . . .) But the ICC soon evolved into a cartel mechanism that discouraged innovation and wrapped the railroad industry in a cocoon of stultifying rules.

Mr. Klein notes that in 1975 he wrote a gloomy article about the sad state of an industry with a colorful past: "Unlike many other historical romances," he wrote back then, "the ending did not promise to be a happy one."

Fortunately, a deregulation movement that began under the Carter administration--yes, the Carter administration--limited the power of the ICC and then abolished it altogether. As Mr. Klein shows in the well-written "Union Pacific," the reduction of government interference left capitalism to work its magic and produce--with the help of dedicated and skillful management--the modern, efficient and profitable railroad that is the Union Pacific.



For the full review, see:

JOHN STEELE GORDON. "Tracks Across America." The Wall Street Journal (Sat., JUNE 11, 2011): C8.

(Note: ellipsis added.)


Book reviewed in the part of the review quoted above:

Klein, Maury. Union Pacific: The Reconfiguration: America's Greatest Railroad from 1969 to the Present. New York: Oxford University Press, USA, 2011.






September 19, 2011

John Crandon Proved Scurvy Caused by Lack of Vitamin C




(p. 167) . . . , in 1939 a Harvard Medical School surgeon named John Crandon decided to settle matters once and for all by the age-old method of withholding Vitamin C from his diet for as long as it took to make himself really ill. It took a surprisingly long time. For the first eighteen weeks, his only symptom was extreme fatigue. (Remarkably, he continued to operate on patients throughout this period.) But in the nineteenth week he took an abrupt turn for the worse - so much so that he would almost certainly have died had he not been under close medical supervision. He was injected with 1,000 milligrams of Vitamin C and was restored to life (p. 168) almost at once. Interestingly, he had never acquired the one set of symptoms that everyone associates with scurvy: the falling out of teeth and bleeding of gums.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





September 11, 2011

"Comfort" at Home Was Unfamiliar Before 1770




(p. 135) If you had to summarize it in a sentence, you could say that the history of private life is a history of getting comfortable slowly. Until the eighteenth century the idea of having comfort at home was so unfamiliar that there wasn't even a word for the condition. 'Comfortable' meant merely 'capable of being consoled'. Comfort was something you gave to the wounded or distressed. The first person to use the word in its modern sense was the writer Horace Walpole, who remarked in a letter to a friend in 1770 that a certain Mrs White was looking after him well and making him 'as comfortable as is possible'. By the early nineteenth century, everyone was talking about having a comfortable home or enjoying a comfortable living, but before Walpole's day no one did.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 8, 2011

Arthur Murray "America's First Space Pilot," RIP



MurrayArthurFirstSpacePilot2011-08-06.jpg








"Maj. Arthur Murray in 1954." Source of caption and photo: online version of the NYT article quoted and cited below.










(p. A18) "I begin to feel weightless, and I'm flying so fast my instruments can't keep up -- they show what happened two miles ago. I'm climbing so steeply I can't see the ground, and I feel confused. I have a sense of falling and I want to grab something for support."

It was May 28, 1954, and Maj. Arthur Murray, test pilot, would wrestle for the next 15 terrifying seconds with a rocket plane racing over 1,400 miles an hour and spinning wildly, supersonically out of control. In the turmoil, he would fly higher than any human being had ever been, 90,440 feet over the earth.

Finally, Major Murray's plane, a Bell X-1A, sank back into heavier air, and he had time to look at the dark blue sky and dazzling sunlight. He became the first human to see the curvature of the earth. At the time, he was called America's first space pilot.

Arthur Murray, known as Kit, died on July 25, in a nursing home in the town of West in Texas, his family said. He was 92. He requested that his ashes be scattered over the Mojave Desert, where some of his fellow test pilots crashed and died.

Tom Wolfe marveled at the test pilots of Edwards Air Force Base in his 1979 book "The Right Stuff" exclaiming, "My God -- to be part of Edwards in the late forties and early fifties!"



For the full obituary, see:

DOUGLAS MARTIN. "Arthur Murray, Test Pilot, Is Dead at 92." The New York Times (Fri., August 5, 2011): A18.

(Note: the online version of the story is dated August 4, 2011.)


The wonderful Tom Wolfe book mentioned is:

Wolfe, Tom. The Right Stuff. New York: Farrar, Straus & Giroux, Inc., 1979.





September 7, 2011

At First, Some Feared Electricity




(p. 133) Something of the prevailing ambivalence was demonstrated by Mrs Cornelius Vanderbilt, who went to a costume ball dressed as an electric light to celebrate the installation of electricity in her Fifth Avenue home in New York, but then had the whole system taken out when it was suspected of being the source of a small fire. Others detected more insidious threats. One authority named S. F. Murphy identified a whole host of electrically induced maladies - eyestrain, headaches, general unhealthiness and possibly even 'the premature exhaustion of life'. One architect was certain electric light caused freckles.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 4, 2011

Political Ideology Matters in Hiring and Tenure



compromising-scholarship-religious-and-political-bias-in-american-higher-educationBK.jpg
















Source of book image:
http://images.borders.com.au/images/bau/97816025/9781602582682/0/0/plain/compromising-scholarship-religious-and-political-bias-in-american-higher-education.jpg




(p. 34) . . . when a faculty committee is looking to hire or award tenure, political ideology seems to make a difference, according to a "collegiality survey" conducted by George Yancey.

Dr. Yancey, a professor of sociology at the University of North Texas, asked more than 400 sociologists which nonacademic factors might influence their willingness to vote for hiring a new colleague. You might expect professors to at least claim to be immune to bias in academic hiring decisions.

But as Dr. Yancey reports in his new book, "Compromising Scholarship: Religious and Political Bias in American Higher Education," more than a quarter of the sociologists said they would be swayed favorably toward a Democrat or an A.C.L.U. member and unfavorably toward a Republican. About 40 percent said they would be less inclined to vote for hiring someone who belonged to the National Rifle Association or who was an evangelical. Similar results were obtained in a subsequent survey of professors in other social sciences and the humanities.



For the full commentary, see:

LAURA PAPPANO. "The Master's as the New Bachelor's." The New York Times, EducationLife Section (Sun., July 24, 2011): 34.

(Note: ellipsis added.)

(Note: the online version of the commentary is dated July 22, 2011.)


Book mentioned:

Yancey, George. Compromising Scholarship; Religious and Political Bias in American Higher Education. Waco, TX: Baylor University Press, 2011.






September 3, 2011

Edison Excelled as an Organizer of Systems




(p. 131) Where Edison truly excelled was as an organizer of systems. The invention of the light bulb was a wondrous thing but of not much practical use when no one had a socket to plug it into. Edison and his tireless workers had to design and build the entire system from scratch, from power stations to cheap and reliable wiring, to lampstands and switches. Within months Edison had set up no fewer than 334 small electrical plants all over the world; (p. 132) within a year or so his plants were powering thirteen thousand light bulbs. Cannily he put them in places where they would be sure to make maximum impact: on the New York Stock Exchange, in the Palmer House Hotel in Chicago, La Scala opera house in Milan, the dining room of the House of Commons in London. Swan, meanwhile, was still doing much of his manufacturing in his own home. He didn't, in short, have a lot of vision. Indeed, he didn't even file for a patent. Edison took out patents everywhere, including in Britain in November 1879, and so secured his preeminence.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





August 30, 2011

Bill Bryson Slams Thomas Edison Based on Brief Comments in Linda Simon Book




In the passage quoted below, Bill Bryson is strongly critical of Thomas Edison. It's been many years since I last read a full biography of Edison, but my impression is that Bryson is not being fair to Edison.

I like Bryson and I like Edison, so I was bothered enough to dig out the online "Notes" that Bryson posted to go with his book. On the passage critical of Edison, he cites p. 83 of Linda Simon's Dark Light book.

It turns out that Simon is a literature professor whose book is mainly about the early fears that superstitious people had about electricity. Many of her sources are literary. The book is a long way from a focused, balanced biography of Edison.

On page 83, she makes a casual and unjustifiedly snide comment on Morgan, Vanderbilt, and especially Gould, and then criticizes Edison by associating him with them. She also criticizes Edison because others sometimes challenged his patents. (Just because lawsuits were brought against Edison, does not imply his patent claims were unsound---anyone can file a lawsuit who is willing to hire a lawyer.)

The "bribe" is apparently that Edison gave some reporters stock, or "suppers or songfests" who had reported favorably. To judge such claims, we would like more evidence and more context. (Today, many institutions hire former reporters to do public relations work. Universities often provide free meals to those whose favor they seek; even book publishers send out free books in the hope that they will be reviewed favorably. Do we count all of these as "bribes"? Are all "rewards" ipso facto "bribes"?)

My view is that if we are going to strongly malign the character of one who brought us so much good (Edison), we should do so based on stronger evidence than the brief casual opinions of Linda Simon.

On my "to do" list is to read a biography or two on Edison. When I do so, I will comment again on this issue.


(p. 130) By 1877, when he started his quest to make a commercially successful light, Edison was already well on his way to becoming known as 'the Wizard of Menlo Park'. Edison was not a wholly attractive human being. He didn't scruple to cheat or lie, and was prepared to steal patents or bribe journalists for favourable coverage. In the words of one of his contemporaries, he had 'a vacuum where his conscience ought to be'. But he was enterprising and hard-working and a peerless organizer.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





August 29, 2011

In 1880s Prices Fell Because of Technological Progress



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Source of book image: http://covers.openlibrary.org/b/id/5764338-L.jpg







Michael Perelman has strongly suggested that I read David Well's book. It is on my "to do" list.



(p. C10) The dull title of "Recent Economic Changes" does no justice to David A. Wells's fascinating contemporary account of a deflationary miasma that settled over the world's advanced economies in the 1880s. His cheery conclusion: Prices were falling because technology was progressing. What had pushed the price of a bushel of wheat down to 67 cents in 1887 from $1.10 in 1882 was nothing more sinister than the opening up of new regions to cultivation (Australia, the Dakotas) and astounding improvements in agricultural machinery.


For the full review, see:

JAMES GRANT. "FIVE BEST; Little-Known Gold From the Gilded Age." The Wall Street Journal (Sat., AUGUST 6, 2011): C10.


Source of book under review:

Wells, David A. Recent Economic Changes and Their Effect on Production and Distribution of Wealth and Well-Being of Society. New York: D. Appleton and Co., 1889.


Michael Perelman argues that in Recent Economic Changes, David Wells anticipates the substance, although not the wording, of Schumpeter's "creative destruction":

Perelman, Michael. "Schumpeter, David Wells, and Creative Destruction." The Journal of Economic Perspectives 9, no. 3 (Summer 1995): 189-97.





August 19, 2011

"A Brilliant and Exhilarating and Profoundly Eccentric Book"



DeutschDavid2011-08-14.jpg







"David Deutsch." Source of caption and photo: online version of the NYT review quoted and cited below.




(p. 16) David Deutsch's "Beginning of Infinity" is a brilliant and exhilarating and profoundly eccentric book. It's about everything: art, science, philosophy, history, politics, evil, death, the future, infinity, bugs, thumbs, what have you. And the business of giving it anything like the attention it deserves, in the small space allotted here, is out of the question. But I will do what I can.


. . .


The thought to which Deutsch's conversation most often returns is that the European Enlightenment of the 17th and 18th centuries, or something like it, may turn out to have been the pivotal event not merely of the history of the West, or of human beings, or of the earth, but (literally, physically) of the universe as a whole.


. . .


(p. 17) Deutsch's enthusiasm for the scientific and technological transformation of the totality of existence naturally brings with it a radical impatience with the pieties of environmentalism, and cultural relativism, and even procedural democracy -- and this is sometimes exhilarating and sometimes creepy. He attacks these pieties, with spectacular clarity and intelligence, as small-­minded and cowardly and boring. The metaphor of the earth as a spaceship or life-­support system, he writes, "is quite perverse. . . . To the extent that we are on a 'spaceship,' we have never merely been its passengers, nor (as is often said) its stewards, nor even its maintenance crew: we are its designers and builders. Before the designs created by humans, it was not a vehicle, but only a heap of dangerous raw materials." But it's hard to get to the end of this book without feeling that Deutsch is too little moved by actual contemporary human suffering. What moves him is the grand Darwinian competition among ideas. What he adores, what he is convinced contains the salvation of the world, is, in every sense of the word, The Market.



For the full review, see:

DAVID ALBERT. "Explaining it All: David Deutsch Offers Views on Everything from Subatomic Particles to the Shaping of the Universe Itself." The New York Times Book Review (Sun., August 14, 2011): 16-17.

(Note: ellipses between paragraphs added; ellipsis in Deutsch quote in original.)

(Note: the online version of the review is dated August 12, 2011 and has the title "Explaining it All: How We Became the Center of the Universe.")


Book under review:

Deutsch, David. The Beginning of Infinity: Explanations That Transform the World. New York: Viking Adult, 2011.





August 17, 2011

A Case for Epistemic and Technological Optimism



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Source of book image: http://us.penguingroup.com/static/covers/all/5/5/9780670022755H.jpg



Horgan is well-known for writing a pessimistic book about the future of science. For him to write such a positive review of a book that reaches the opposite conclusion, is impressive (both about him and the book he is reviewing).

From Horgan's review and the reviews on Amazon as of 8/7/11, I view the Deutsch book as potentially important and profound. (I will write more when I have read it.)




(p. 17) . . . Mr. Deutsch knocks my 1996 book, "The End of Science," for proposing that the glory days of science--especially pure science, the effort to map out and understand reality--may be over. Mr. Deutsch equates my thesis with "dogmatism, stagnation and tyranny," all of which, for the record, I oppose. But he makes the case for infinite progress with such passion, imagination and quirky brilliance that I couldn't help enjoying his argument. More often than not I found myself agreeing with him--or at least hoping that he is right.


. . .


If we acknowledge our imperfections, Mr. Deutsch observes, then, paradoxically, there is no problem that we cannot tackle. Death, for instance. Or the apparent incompatibility between the two pillars of modern physics, quantum theory and general relativity. Or global warming, which Mr. Deutsch believes we can overcome through innovation rather than drastic cutbacks in consumption. He gores the sacred cow of "sustainability": Societies are healthiest, he declares, not when they achieve equilibrium but when they are rapidly evolving.



For the full review, see:

JOHN HORGAN. "BOOKSHELF; To Err Is Progress; How to foster the growth of scientific knowledge: accept that it is limited no matter how definitive it may seem." The Wall Street Journal (Weds., JULY 20, 2011): A17.

(Note: ellipses added.)


Source information on book under review:

Deutsch, David. The Beginning of Infinity: Explanations That Transform the World. New York: Viking Adult, 2011.






August 10, 2011

In Britain Ice Is Often Dispensed "as if It Were on Prescription"




(p. 73) In England, Wenham ice was more talked about than used. A few businesses took regular deliveries, but hardly any households (other than the royal one) did. By the 1850s not only was most ice sold in Britain not from Wenham, it wasn't from America at all. The Norwegians - not a people one normally associates with sharp practices - changed the name of Lake Oppegaard, near Oslo, to Lake Wenham so that they could tap into the lucrative market. By the 1850s most ice sold in Britain was in fact Norwegian, though it has to be said that ice never really caught on with the British. Even now, it is still often dispensed there as if it were on prescription. The real market, it turned out, was in America itself.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





August 9, 2011

Fannie Mae Execs "Resorted to Ad Hominem Attacks" When They Vilified the "Economic Pencil Brains"



RecklessEndangermentBK.jpg













Source of book image: online version of the NYT review quoted and cited below.






(p. C6) Although the financial crisis of 2008 has left a long trail of casualties, one group has benefited from the cataclysm: financial journalists. Several have already published books shedding light on the unprecedented events that caused investment banks to fail, global stock markets to plummet and borrowers to lose their homes. "Reckless Endangerment," by Gretchen Morgenson, assistant business and financial editor and a columnist at The New York Times, and the financial analyst Joshua Rosner, is a worthy addition to the genre.


. . .


The book begins in 1994 with President Bill Clinton's kicking off a public-private partnership to extend homeownership to more Americans. . . .


. . .


. . . the institution to which the authors devote the most ink is Fannie Mae, the government-supported enterprise created in 1938 to make home loans more accessible. And the person they hold most accountable is someone whose role in the "mortgage maelstrom" has until now "escaped scrutiny": James A. Johnson, Fannie Mae's chief executive from 1991 to 1998. Mr. Johnson was the "anonymous architect of the public-private homeownership drive that almost destroyed the economy in 2008," the authors assert. "He was especially adept at manipulating lawmakers, eviscerating regulators and leaving taxpayers with the bill."

The description of Mr. Johnson's role is damning -- and although the account lacks his perspective, it is thoroughly supported through scores of interviews with academics, government officials and industry executives, some of whom are granted anonymity. While Mr. Johnson didn't respond to interview requests over five months, according to the authors, they overcome this obstacle with impressive use of public records and secondary sources, carefully attributed in the text or described in a two-page "Notes on Sources."


. . .


A particular strength of this book is the number of doubters the authors unearthed: the unsung government analysts, public lawyers and private researchers who dared to question policy decisions and stand up to the formidable "housers," as the true believers in government subsidies for home ownership are called.

The reader has a sickening sense of missed opportunity as these prophets are ignored or, worse, vilified, by those in a position to halt the mania. When a Congressional Budget Office researcher in 1995 reveals the multibillion-dollar extent of the government's subsidy to Fannie Mae and its brother institution, Freddie Mac (and that one-third of these benefits never reached borrowers), he suggests that "Congress may want to revisit the special relationship." Unable to assail the merits of his analysis, outraged Fannie Mae executives resorted to ad hominem attacks, calling budget office officials "digit-heads" and "economic pencil brains."



For the full review, see:

PAM LUECKE. "BOOKS OF THE TIMES; Nation Goes on Its Merry Way to Ruin." The New York Times (Tues., June 28, 2011): C6.

(Note: the online version of the review was dated June 27, 2011.)

(Note: ellipses added.)


Book being reviewed:

Morgenson, Gretchen, and Joshua Rosner. Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon. New York: Times Books, 2011.






August 6, 2011

Entrepreneur Frederic Tudor Spent Family Fortune to Make Ice Obsession a Business Success



(p. 71) Lake ice was a marvelous product. It created itself at no cost to the producer, was clean, renewable, and infinite in supply. The only drawbacks were that there was no infrastructure to produce and store it, and no market to sell it to. In order to make the ice industry exist, it was necessary to work out ways to cut and lift ice on a large scale, build storehouses, secure trading rights, and engage a reliable chain of shippers and agents (p. 72) and, above all, create a demand for ice in places where ice had seldom or never been seen, and was most assuredly not something anyone was predisposed to pay for. The man who did all this was a Bostonian of good birth and challenging disposition named Frederic Tudor. Making ice a commercial proposition became his overweening obsession.

The notion of shipping ice from New England to distant ports was considered completely mad - 'the vagary of a disordered brain', in the words of one of his contemporaries. The first shipment of ice to Britain so puzzled customs officials as to how to classify it that all 300 tons of it melted away before it could be moved off the docks. Shipowners were highly reluctant to accept it as cargo. They didn't relish the humiliation of arriving in a port with a holdful of useless water, but they were also wary of the very real danger of tons of shifting ice and sloshing melt-water making their ships unstable. These were men, after all, whose nautical instincts were based entirely on the idea of keeping water outside the ship, so they were loath to take on such an eccentric risk when there wasn't even a certain market at the end of it all.

Tudor was a strange and difficult man - 'imperious, vain, contemptuous of competitors and implacable to enemies', in the estimation of Daniel J. Boorstin. He alienated all his closest friends and betrayed the trust of colleagues, almost as if that were his life's ambition. Nearly all the technological innovations that made the ice trade possible were actually the work of his retiring, compliant, long-suffering associate Nathaniel Wyeth. It cost Tudor years of frustrated endeavour, and all of his family fortune, to get the ice business up and running, but gradually it caught on and eventually it made him and many others rich. For several decades, ice was America's second biggest crop, measured by weight. If securely insulated, ice could last a surprisingly long while. It could even survive the 16,000-mile, 130-day trip from Boston to Bombay - or at least about two-thirds of it could, enough to make the long trip profitable. Ice went to the furthest corners of South America and from New England to California via Cape Horn. Sawdust, a product previously without any value at all, proved to be an excellent insulator, providing useful extra income for Maine lumber mills.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





August 5, 2011

Banker Rhodes Saved Murdoch from Bankruptcy



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Source of book image: online version of the WSJ review quoted and cited below.







(p. A13) In "Banker to the World," Mr. Rhodes tries to distil the "leadership lessons" he has learned from his remarkable career on the "front lines of global finance."


. . .


. . . , Mr. Rhodes does succeed in hammering home three lessons that we need to take to heart if we are to have any chance of navigating the troubled waters that lie ahead. The first is that there is no substitute for the human touch: For all banking's bells and whistles today, it is much the same business it was in Florentine Italy. Consider one of Mr. Rhodes's greatest exploits: coordinating the rescue of Rupert Murdoch's News Corp. from bankruptcy in 1990. Mr. Rhodes was worried that the collapse of Mr. Murdoch's heavily-indebted media empire would tip the world economy back into recession. But he decided to bet on Mr. Murdoch only after the two had sat down for a three-hour heart-to-heart over dinner in New York.



For the full review, see:

ADRIAN WOOLDRIDGE. "BOOKSHELF; A Conspiracy of Hunches; A rare master of both the financial and political realms reports on what a half-century of experience taught him." The Wall Street Journal (Weds., June 8, 2011): A15.

(Note: ellipsis added.)

(Note: online version of article had the date JULY 13, 2011.)


Book being reviewed:

Rhodes, William R. Banker to the World: Leadership Lessons from the Front Lines of Global Finance. New York: McGraw-Hill, 2011.





August 3, 2011

To Succeed in the Car Business, It Helps if You Care about Cars



CarGuysBK.jpg














Source of book image: online version of the WSJ review quoted and cited below.







(p. B1) . . . , General Motors embarked on a series of initiatives to overcome both the perception and reality of the growing import threat. The 1950s and '60s marked the decline of the "product guy" at GM and the ascendancy of "professional management," often individuals with a strong financial background.

It's not that senior GM management disliked cars. It was more an atmosphere of "benign neglect," a generalized consensus that we were, after all, primarily in the business of making money, and cars were merely a transitory form of money: put a certain quantity in at the front end, transform it into vehicles, and sell them for more money at the other (p. B12) end. The company cared about "the other two ends"--minimizing cost and maximizing revenue--but assumed that customer desire for the product was a given.

Responsibility for creation of the right product was delegated to lower levels in the organization, often to people with little understanding of quality design or great driving characteristics. I maintain that without a passionate focus on great products from the top of the company on down, the "low cost" part will be assured but the "high revenue" part won't happen, just as it didn't at GM for so many years.



For the full excerpt, see:

Bob Lutz. "Japan's Advantage and How the Cadillac Lost Its Shine." The Wall Street Journal (Mon., JUNE 13, 2011): B1 & B12.

(Note: ellipsis added.)


The excerpt is excerpted from:

Lutz, Bob. Car Guys Vs. Bean Counters: The Battle for the Soul of American Business. New York: Portfolio, 2011.





August 2, 2011

Refuting Claims of Bread Adulteration




(p. 67) . . . : The Nature of Bread, Honestly and Dishonestly Made, by Joseph Manning, M.D., . . . reported that it was common for bakers to add bean meal, chalk, white lead, slaked lime, and bone ash to every loaf they made.

These assertions are routinely reported as fact, even though it was demonstrated pretty conclusively over seventy years ago by Frederick A. Filby, in his classic work Food Adulteration (1934), that the claims could not possibly be true. Filby took the interesting and obvious step of baking loaves of bread using the accused adulterants in the manner and proportions described. In every case but one the bread was either as hard as (p. 68) concrete or failed to set at all, and nearly all the loaves smelled or tasted disgusting. Several needed more baking time than conventional loaves and so were actually more expensive to produce. Not one of the adulterated loaves was edible.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipses added; italics in original.)





July 30, 2011

Capitalism Was Not Inevitable



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Source of book image:
http://ecx.images-amazon.com/images/I/519PfT2oUtL.jpg




(p. 15) What is the nature of capitalism? For Joseph Schumpeter, the Austrian-born economist whose writings have acquired a special relevance in the past year or two, this most modern of economic systems "incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one." Capitalism, Schumpeter proclaimed, cannot stand still; it is a system driven by waves of entrepreneurial innovation, or what he memorably described as a "perennial gale of creative destruction."

Schumpeter died in 1950, but his ghost looms large over Joyce Appleby's splendid new account of the "relentless revolution" unleashed by capitalism from the 16th century onward. Appleby, a distinguished historian who has dedicated her career to studying the origins of capitalism in the Anglo-American world, here broadens her scope to take in the global history of capitalism in all its creative -- and destructive -- glory.

She begins "The Relentless Revolution" by noting that the rise of the economic system we call capitalism was in many ways improbable. It was, she rightly observes, "a startling departure from the norms that had prevailed for 4,000 years," signaling the arrival of a new mentality, one that permitted private investors to pursue profits at the expense of older values and customs.

In viewing capitalism as an extension of a culture unique to a particular time and place, Appleby is understandably contemptuous of those who posit, in the spirit of Adam Smith, that capitalism was a natural outgrowth of human nature. She is equally scornful of those who believe that its emergence was in any way inevitable or inexorable.


. . .


. . . , she captures how a new generation of now forgotten economic writers active long before Adam Smith built a case "that the elements in any economy were negotiable and fluid, the exact opposite of the stasis so long desired." This was a revolution of the mind, not machines, and it ushered in profound changes in how people viewed everything from usury to joint stock companies. As she bluntly concludes, "there can be no capitalism . . . without a culture of capitalism."


. . .


The individual entrepreneur is at the center of her analysis, and her book offers thumbnail sketches of British innovators from James Watt to Josiah Wedgwood. She continues on to the United States and Germany, giving readers a whirlwind tour of the lives and achievements of a host of men whom she calls "industrial leviathans" -- Vanderbilt, Rockefeller and Carnegie in the United States; Thyssen, Siemens and Zeiss in Germany. All created new industries while destroying old ones.



For the full review, see:

STEPHEN MIHM. "Capitalist Chameleon." The New York Times Book Review (Sun., January 24, 2010): 15.

(Note: ellipses added except for the one in the "there can be no capitalism . . . without a culture of capitalism" quote.)

(Note: the online version of the review is dated January 22, 2010.)


Book under review:

Appleby, Joyce. The Relentless Revolution: A History of Capitalism. New York: W. W. Norton & Company, 2010.





July 29, 2011

Resistance to New Technology




(p. 59) . . . , not everyone was happy with the loss of open hearths. Many people missed the drifting smoke and were convinced they had been healthier when kept "well kippered in wood smoke," as one observer put it. As late as 1577, a William Harrison insisted that in the days of open fires our heads did never ake." Smoke in the roof space discouraged nesting birds and was believed to strengthen timbers. Above all, people complained that they weren't nearly as warm as before, which was true. Because fireplaces were so inefficient, they were constantly enlarged. Some became so enormous that they were built with benches in them, letting people sit inside the fireplace, almost the only place in the house where they could be really warm.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





July 25, 2011

Medieval Pollution




(p. 58) One thing that did not escape notice in medieval times was that nearly all the space above head height was unusable because it was so generally filled with smoke. An open hearth had certain clear advantages--it radiated heat in all directions and allowed people to sit around it on all four sides--but it was also like having a permanent bonfire in the middle of one's living room. Smoke went wherever passing drafts directed it--and with many people coming and going, and all the windows glassless, every passing gust must have brought somebody a faceful of smoke--or otherwise rose up to the ceiling and hung thickly until it leaked out a hole in the roof.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





July 21, 2011

"People Condemned to Short Lives and Chronic Hardship Are Perhaps Unlikely to Worry Overmuch about Decor"




If "necessity is the mother of invention," then why did it take so long for someone to invent the louvered slats mentioned at the end of this passage?


(p. 55) In even the best homes comfort was in short supply. It really is extraordinary how long it took people to achieve even the most elemental levels of comfort. There was one good reason for it: life was tough. Throughout the Middle Ages, a good deal of every life was devoted simply to surviving. Famine was common. The medieval world was a world without reserves; when harvests were poor, as they were about one year in four on average, hunger was immediate. When crops failed altogether, starvation inevitably followed. England suffered especially catastrophic harvests in 1272, 1277, 1283, 1292, and 1311, and then an unrelievedly murderous stretch from 1315 to 1319. And this was of course on top of plagues and other illnesses that swept away millions. People condemned to short lives and chronic hardship are perhaps unlikely to worry overmuch about decor. But even allowing for all that, there was just a great, strange slowness to strive for even modest levels of comfort. Roof holes, for instance, let smoke escape, but they also let in rain and drafts until somebody finally, belatedly invented a lantern structure with louvered slats that allowed smoke to escape but kept out rain, birds, and wind. It was a marvelous invention, but by the time it (p. 56) was thought of, in the fourteenth century, chimneys were already coming in and louvered caps were not needed.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





July 18, 2011

"If We Can't Win on Quality, We Shouldn't Win at All"



ImFeelingLuckyBK.jpg












Source of book image: online version of the WSJ review quoted and cited below.






(p. A13) At the tail end of the 1990s dot-com boom, Douglas Edwards took a gamble: He left his marketing job at an old-media company, taking a $25,000 salary cut to start work at a small, little-known Internet concern in its second year of operation. That his new employer was losing money and burning through venture capital went without saying. But unlike the footloose 20-somethings who usually populated Silicon Valley start-ups, Mr. Edwards had little margin to bet wrong; he was 41, with a mortgage, three children and a worried wife. He hoped he could get his old job back if the company ran out of money.


. . .


Mr. Edwards came to his job as a subscriber to the conventional wisdom. In an early presentation to cofounder Larry Page and others, Mr. Edwards unwisely declared that only marketing, not technology, could set Google apart. "In a world where all search engines are equal," he asserted, "we'll need to rely on branding to differentiate us from our competitors."

The room became quiet. Then Mr. Page spoke up. "If we can't win on quality," he said, "we shouldn't win at all."



For the full review, see:

DAVID A. PRICE. "BOOKSHELF; How Google Got Going; Branding, shmanding, a marketer was told. 'If we can't win on quality,' Larry Page said, 'we shouldn't win at all.'" The Wall Street Journal (Tues., July 12, 2011): A13.

(Note: ellipsis added.)


Book being reviewed:

Edwards, Douglas. I'm Feeling Lucky: The Confessions of Google Employee Number 59. New York: Houghton Mifflin Harcourt Publishing Co., 2011.






July 17, 2011

Medieval Halls of the Rich Incubated Plague in a Nest of "Filth Unmentionable"




(p. 51) In even the best houses, floors were generally just bare earth strewn with rushes, harboring "spittle and vomit and urine of dogs and men, beer that hath been cast forth and remnants of fishes and other filth unmentionable," as the Dutch theologian and traveler Desiderius Erasmus rather crisply summarized in 1524. New layers of rushes were laid down twice a year normally, but the old accretions were seldom removed, so that, Erasmus added glumly, "the substratum may be unmolested for twenty years." The floors were in effect a very large nest, much appreciated by insects and furtive rodents, and a perfect incubator for plague. Yet a deep pile of flooring was generally a sign of prestige. It was common among the French to say of a rich man that he was "waist deep in straw."


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





July 13, 2011

Medieval Halls Did Not Conduce to Comfort or to Observing Modern Proprieties



Practically all living, awake or asleep, was done in this single large, mostly bare, always smoky chamber. Servants and family ate, dressed, and slept together--"a custom which conduced neither to comfort nor the observance of the proprieties," as J. Alfred Gotch noted with a certain clear absence of comfort himself in his classic book The Growth of the English House (1909). Through the whole of the medieval period, till well Into the fifteenth century the hall effectively was the house, so much so that it became the convention to give its name to the entire dwelling, as in Hardwlck Hall or Toad Hall.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original.)





July 10, 2011

"We Are All Dutchmen Now"



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Source of the book image: http://yalepress.yale.edu/images/full13/9780300115475.jpg



(p. A15) Samuel Pufendorf, a 17th-century German historian, described the English people as "having been ­always inclined to rebellion and intestine commotion." But England's regime change in 1688--soon called "glorious"--was a revolution with a difference. Instead of overthrowing the existing order in violent upheaval, it put "government upon its ancient and proper basis, which the measures of a mad bigot had almost ­destroyed." The "mad bigot" was, in this case, James II, the Stuart king (and a Catholic) who was deposed in ­favor of William of Orange, a Protestant from the Dutch Republic. Edmund Burke famously contrasted England's balance of change and continuity in 1688 with the ­ferocity in France a century later.

In "1688: The First Modern Revolution," Steve Pincus challenges this received account to argue that the ­Glorious Revolution marked a much greater break with history than Burke realized--and proved to be an ­emblem of the West's future. James II, Mr. Pincus notes, sought to extend state power at the expense of Parliament and the privileges of local communities. James's adversaries preferred the dynamism of commerce; they believed that wealth sprang from the limitless striving of human endeavor rather than the finite availability of land. France under Louis XIV provided James with a pattern for absolutism; the Dutch Republic provided his opponents with a commercial ideal. The Glorious ­Revolution is often seen as a clash ­between ­"popery"--the term for authoritarian ­Catholicism--and ­ancient English liberties. But Mr. Pincus persuasively describes it as the collision of two ideas about the state in society. In a sense, he implies, we are all Dutchmen now.



For the full review, see:

WILLIAM ANTHONY HAY. "Going Dutch; When a dynamic commercial ideal won out over centralized power." The Wall Street Journal (Tues., September 1, 2011): A15.

(Note: the online version of the review is dated AUGUST 31, 2009.)


The book under review is:

Pincus, Steve. 1688: The First Modern Revolution. New Haven, CT: Yale, 2009.



An alternative view is presented in a a book by Lisa Jardine (reference below). She argues that William of Orange was more interested in grabbing power than in promoting liberty. Her view is persuasively disputed in the following review by Andrew Roberts:

ANDREW ROBERTS. "A New William The Conqueror." The Wall Street Journal (Thurs., August 28, 2008): A13.


The Jardine book is:

Jardine, Lisa. Going Dutch: How England Plundered Holland's Glory. New York: HarperCollins Publishers, 2008.





July 9, 2011

38 Theories Why Humans Became Sedentary



(p. 36) . . . if people didn't settle down to take up farming, why then did they embark on this entirely new way of living? We have no idea--or actually, we have lots of ideas, but we don't know if any of them are right. According to the historian Felipe Fernández-Armesto, at least thirty-eight theories have been put forward to explain why people took to living in communities: that they were driven to it by climatic change, or by a wish to stay near their dead, or by a powerful desire to brew and drink beer, which could only be indulged by staying in one place. One theory, evidently seriously suggested (Jane Jacobs cites It In her landmark work of 1969, The Economy of Cities), was that "fortuitous showers" of cosmic rays caused mutations in grasses that made them suddenly attractive as a food source. The short answer is that no one knows why agriculture developed as it did.

Making food out of plants is hard work. The conversion of wheat, rice, corn, millet, barley, and other grasses into staple foodstuffs is one of the great achievements of human history, but also one of the more unexpected ones.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original; ellipsis added.)





July 5, 2011

"The American Machines Did Things that the World Earnestly Wished Machines to Do"



(p. 22) . . . when the displays were erected it came as something of a surprise to discover that the American section was an outpost of wizardry and wonder. Nearly all the American machines did things that the world earnestly wished machines to do--stamp out nails, cut stone, mold candles--but with a neatness, dispatch, and tireless reliability that left other nations blinking. Elias Howe's sewing machine dazzled the ladies and held out the impossible promise that one of the great drudge pastimes of domestic life could actually be made exciting and fun. Cyrus McCormick displayed a reaper that could do the work of forty men--a claim so improbably bold that almost no one believed it until the reaper (p. 23) was taken out to a farm in the Home Counties and shown to do all that it promised it could. Most exciting of all was Samuel Colt's repeat-action revolver, which was not only marvelously lethal but made from inter-changeable parts, a method of manufacture so distinctive that it became known as "the American system." Only one homegrown creation could match these virtuoso qualities of novelty, utility, and machine-age precision--Paxton's great hall itself, and that was to disappear when the show was over. For many Europeans this was the first unsettling hint that those tobacco-chewing rustics across the water were quietly creating the next industrial colossus--a transformation so improbable that most wouldn't believe it even as It was happening.

The most popular feature at the Great Exhibition was not an exhibition at all, but rather the elegant "retiring rooms," where visitors could relieve themselves in comfort, an offer taken up with gratitude and enthusiasm by 827,000 people--11,000 of them on a single day. Public facilities in London were woefully lacking in 1851. At the British Museum, up to 30,000 daily visitors had to share just two outside privies. At the Crystal Palace the toilets actually flushed, enchanting visitors so much that It started a vogue for installing flushing toilets at home-- . . .



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipses added.)





July 3, 2011

Italian "Legal System Barely Functions"



(p. B4) The Italy that Mr. Severgnini describes seethes with frustration. Government works poorly. The legal system barely functions. Too many Italians are crowded into too little space. Fear of failure stymies innovation. Mr. Severgnini is dismayed at the national genius for enjoyment and the Italian inability to plan for the future. "Our sun is setting in installments," he writes. "It's festive and flamboyant, but it's still a sunset."


For the full review, see:

WILLIAM GRIMES. "BOOKS OF THE TIMES; An Insider Explains Italy, Land of Cheery Dysfunction." The New York Times (Weds., August 23, 2006): B1 & B4.


Book under review:

Severgnini, Beppe. La Bella Figura; a Field Guide to the Italian Mind. Translated by Giles Watson. pb ed. New York: Broadway Books, 2006.






July 2, 2011

Partage Provides Incentives to Recover Antiquities and the Means to Preserve Them



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Source of book image: http://press.princeton.edu/images/k8602.gif





(p. D1) In some cases, it makes aesthetic or archaeological sense to keep artifacts grouped together where they were found, but it can also be risky to leave everything in one place, particularly if the country is in turmoil or can't afford to excavate or guard all its treasures. After the Metropolitan Museum was pressured to hand over a collection called the Lydian Hoard, one of the most valuable (p. D2) pieces was stolen several years ago from its new home in Turkey.


. . .


(p. D2) In his book "Who Owns Antiquity?", James Cuno argues that scholars have betrayed their principles by acquiescing to politicians who have exploited antiquities to legitimize themselves and their governments. Saddam Hussein was the most blatant, turning Iraqi archeology museums into propaganda for himself as the modern Nebuchadnezzar, but other leaders have been just as cynical in using antiquities to bolster their claims of sovereignty.

Dr. Cuno advocates the revival of partage, the traditional system in which archeologists digging in foreign countries would give some of their discoveries to the host country and take others home. That way both sides benefit, and both sides have incentives to recover antiquities before looters beat them to it. . . .

As the director of the Art Institute of Chicago, Dr. Cuno has his own obvious motives for acquiring foreign antiquities, and he makes no apology for wanting to display Middle Eastern statues to Midwesterners.

"It is in the nature of our species to connect and exchange," Dr. Cuno writes. "And the result is a common culture in which we all have a stake. It is not, and can never be, the property of one modern nation or another."

Some of the most culturally protectionist nations today, like Egypt, Italy and Turkey, are trying to hoard treasures that couldn't have been created without the inspiration provided by imported works of art. (Imagine the Renaissance without the influence of "looted" Greek antiquities.) And the current political rulers of those countries often have little in common culturally with the creators of the artifacts they claim to own.



For the full commentary, see:

JOHN TIERNEY. "FINDINGS; A Case in Antiquities for 'Finders Keepers'." The New York Times (Tues., November 17, 2009): B6.

(Note: ellipses added.)

(Note: the online version of the commentary is dated November 16, 2009.)


The Cuno book discussed above, is:

Cuno, James. Who Owns Antiquity?: Museums and the Battle over Our Ancient Heritage. Princeton, NJ: Princeton University Press, 2008.






July 1, 2011

500 Kinds of Hammers: Even Marx Knew that Capitalism Produces Variety



HammerDiversityBasallaPage4.jpg



















The diversity of hammers, part 1. Source of graphic: page 4 of the Basalla book quoted and cited aways down below.




(p. 21 of Bryson) Suddenly, for the first time In history, there was in most people's lives a lot of everything. Karl Marx, living in London, noted with a tone of wonder, and just a hint of helpless admiration, that it was possible to buy five hundred kinds of hammer In Britain. Everywhere was activity, Modern Londoners live in a great Victorian city; the Victorians lived through It, so to speak. In twelve years eight railway termini opened In London. The scale of disruption--the trenches, the tunnels, the muddy excavations, the congestion of wagons and other vehicles, the smoke, the din, the clutter--that came from filling the city with railways, bridges, sewers, pumping stations, power stations, subway lines, and all the rest meant that Victorian London was not just the biggest city in the world but the noisiest, foulest, muddiest, busiest, most choked and dug-over place the world had ever seen.

The 1851 census also showed that more people in Britain now lived in cities than in the countryside--the first time that this had happened anywhere in the world--and the most visible consequence of this was crowds on a scale never before experienced. People now worked en masse, traveled en masse, were schooled, imprisoned, and hospitalized en masse. When they went out to enjoy themselves, they did that en masse, and nowhere did they go with greater enthusiasm and rapture than to the Crystal Palace.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.



On Marx and hammers, Bryson references p. 156 of Petroski:

Petroski, Henry. The Evolution of Useful Things: How Everyday Artifacts--from Forks and Pins to Paper Clips and Zippers--Came to Be as They Are. New York: A. Knopf, 1992.


Actually, Petroski's source on Marx on hammers clearly is Basalla who he quotes on pp. 23-24:

(p. 23 of Petroski) George Basalla, in The Evolution of Technology, suggests the great "diversity of things made by human hands" over the past two hundred years by pointing out that five million patents have been issued in America alone. . . . (p. 24) He then introduces the fundamental questions of his study:

The variety of made things is every bit as astonishing as that of living things. Consider the range that extends from stone tools to microchips, from waterwheels to spacecraft, from thumb-tacks to skyscrapers. In 1867 Karl Marx was surprised to learn . . . that five hundred different kinds of hammers were produced in Birmingham, England, each one adapted to a specific function in industry or the crafts. What forces led to the proliferation of so many variations of this ancient and common tool? Or more generally, why are there so many different kinds of things?

Basalla dismisses the "traditional wisdom" that attributes technological diversity to necessity and utility, and looks for other explanations, "especially ones that can incorporate the most general assumptions about the meaning and goals of life."


(Note: italics in original; first ellipsis added; second ellipsis in original.)


Petroski then again mentions Marx on hammers on the p. 156 that is referenced by Bryson:

(p. 156 of Petroski) In spite of Marx's astonishment that five hundred different kinds of hammers were made in Birmingham in the 1860s, this was no capitalist plot. Indeed, if there were a plot, it was to not make more. The proliferation of hammer types occurred because there were then, as now, many specialized uses of hammers, and each user wished to possess a tool that was suited as ideally as possible to the tasks he performed perhaps thousands of times each day, but seldom if ever in a formal social context. I have often reflected on the value of special hammers while using the two ordinary ones from my tool chest: a familiar carpenter's hammer with a claw, and a smaller version that fits in places the larger one does not. The tasks I've applied them to have included driving and removing nails, of course, but also opening and closing paint cans, pounding on chisels, tacking down carpets, straightening dented bicycle fenders, breaking bricks, driving wooden stakes, and on and on.



The Basalla book is:

Basalla, George. The Evolution of Technology, Cambridge Studies in the History of Science. Cambridge, UK: Cambridge University Press, 1988.


On p. 2 of Basalla, he writes:

(p. 2 of Basalla) The variety of made things is every bit as astonishing as that of living things. Consider the range that extends from stone tools to microchips, from waterwheels to spacecraft, from thumbtacks to skyscrapers. In 1867 Karl Marx was surprised to learn, as well he might have been, that five hundred different kinds of hammers were produced in Birmingham, England, each one adapted to a specific function in industry or the crafts . . .

(Note: ellipsis added.)


In Basalla's notes to this chapter, the only Marx he mentions is the first volume of Capital. Searching volume one of Capital in Google Books for "hammer," one discovers the relevant passage on p. 375:

(p. 374 of Marx) Manufacture is characterized by the differentiation of (p. 375) the instruments of labour--a differentiation whereby implements of a given sort acquire fixed shapes, adapted to each particular application, and by the specialisation (sic) of those instruments, giving to each special instrument its full play only in the hands of a specific detail labourer. In Birmingham alone 500 varieties of hammers are produced, and not only is each adapted to one particular process, but several varieties often serve exclusively for the different operations in one and the same process. The manufacturing period simplifies, improves, and multiplies the implements of labour, by adapting them to the exclusively special functions of each detail labourer.


The Marx book is:

Marx, Karl. Capital: A Critique of Political Economy, Vol. 1. New York: Modern Library, 1906 [first German edition in 1867].




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The diversity of hammers, part 2. Source of graphic: page 5 of the Basalla book quoted and cited somewhere above.






June 27, 2011

"A Tax on Air and Light"



(p. 11) Paxton was very lucky in his timing, for just at the moment of the Great Exhibition glass suddenly became available in a way it never had before. Glass had always been a tricky material. It was not particularly easy to make, and really hard to make well, which is why for so much of its history it was a luxury Item. Happily, two recent technological breakthroughs had changed that. First, the French invented plate glass--so called because the molten glass was spread across tables known as plates. This allowed for the first time the creation of really large panes of glass, which made shop windows possible. Plate glass, however, had to be cooled for ten days after being rolled out, which meant that each table was unproductively occupied most of the time, and then each sheet required a lot of grinding and polishing. This naturally made it expensive. In 1838, a cheaper refinement was developed--sheet glass. This had most of the virtues of plate glass, but ¡t cooled faster and needed less polishing, and so could be made much more cheaply. Suddenly glass of a good size could be produced economically In limitless volumes.

Allied with this was the timely abolition of two long-standing taxes: the window tax and glass tax (which, strictly speaking, was an excise duty). The window tax dated from 1696 and was sufficiently punishing that (p. 12) people really did avoid putting windows in buildings where they could. The bricked-up window openings that are such a feature of man period
buildings in Britain today were once usually painted to look like windows. (It Is sometimes rather a shame that they aren't still.) The tax, sorely resented as "a tax on air and light," meant that many servants and others of constrained means were condemned to live In airless rooms.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





June 23, 2011

"The Century's Most Daring and Iconic Building Was Entrusted to a Gardener"



(p. 10) . . . the risks were considerable and keenly felt, yet after only a few days of fretful hesitation the commissioners approved Paxton's plan. Nothing--really, absolutely nothing--says more about Victorian Britain and its capacity for brilliance than that the century's most daring and iconic building was entrusted to a gardener. Paxton's Crystal Palace required no bricks at all--indeed, no mortar, no cement, no foundations. It was just bolted together and sat on the ground like a tent. This was not merely an (p. 11) ingenious solution to a monumental challenge but also a radical departure from anything that had ever been tried before.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





June 18, 2011

With Wit and Wisdom Bryson Shows How Home Life Has Improved



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Source of book image: http://img2.timeinc.net/ew/dynamic/imgs/101027/1127-EW-Must-List/at-home_300.jpg



Bill Bryson is best known for his witty travelogues. In recent years he has become more ambitious, venturing into the history of science, and now the history of domestic life. He is a keen observer with eyes open to the unexpected, the important and the droll. His latest book, At Home, contains much evidence and some useful analysis of how ordinary life has improved in western societies in the past couple of hundred years.

In the next several weeks, I plan to quote a few of the more illuminating passages from the book.


The Bryson book:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





June 17, 2011

"Big Money Is Dumb Money"




"Other People's Money" is a short story that appears in Cory Doctorow's short story collection With a Little Help.


(p. C7) Venture capitalists? Forget them, says "Other People's Money." Big money is dumb money. Much easier, says one old-lady manufacturer to a smart young gigafund manager, for her to make and market her own product, and keep the money (just like Mr. Doctorow), than for him to find and fund a hundred products and take a rake-off. He only deals in six-figure multiples, and that's no good: not nimble enough. And he has to get a return on all those billions, poor outdated soul.


For the full review, see:

TOM SHIPPEY. "The Author as Agent of Change; Cory Doctorow has big ideas about the future of technology--and how it can empower writers." The New York Times (Sat., MAY 21, 2011): C7.

The book of short stories is:

Doctorow, Cory. With a Little Help.






June 16, 2011

The Secret to a Long Life Is Conscientiousness



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Source of book image: online version of the NYT review quoted and cited below.






(p. D3) Cheerfulness, optimism, extroversion and sociability may make life more enjoyable, but they won't necessarily extend it, Howard S. Friedman and Leslie R. Martin found in a study that covered eight decades. The key traits are prudence and persistence. "The findings clearly revealed that the best childhood personality predictor of longevity was conscientiousness," they write, "the qualities of a prudent, persistent, well-organized person, like a scientist-professor -- somewhat obsessive and not at all carefree."


. . .


There are three explanations for the dominant role of conscientiousness. The first and most obvious is that conscientious people are more likely to live healthy lifestyles, to not smoke or drink to excess, wear seat belts, follow doctors' orders and take medication as prescribed. Second, conscientious people tend to find themselves not only in healthier situations but also in healthier relationships: happier marriages, better friendships, healthier work situations.

The third explanation for the link between conscientiousness and longevity is the most intriguing. "We thought it must be something biological," Dr. Friedman said. "We ruled out every other factor." He and other researchers found that some people are biologically predisposed to be not only more conscientiousness but also healthier. "Not only do they tend to avoid violent deaths and illnesses linked to smoking and drinking," they write, "but conscientious individuals are less prone to a whole host of diseases, not just those caused by dangerous habits." The precise physiological explanation is unknown but seems to have to do with levels of chemicals like serotonin in the brain.

As for optimism, it has its downside. "If you're cheerful, very optimistic, especially in the face of illness and recovery, if you don't consider the possibility that you might have setbacks, then those setbacks are harder to deal with," Dr. Martin said. "If you're one of those people who think everything's fine -- 'no need to back up those computer files' -- the stress of failure, because you haven't been more careful, is harmful. You almost set yourself up for more problems."



For the full review, see:

KATHERINE BOUTO. "BOOKS ON SCIENCE; Eighty Years Along, a Longevity Study Still Has Ground to Cover." The New York Times (Tues., April 19, 2011): D3.

(Note: ellipsis added.)

(Note: the online version of the article is dated April 18, 2011.)


The book under review is:

Friedman, Howard S., and Leslie R. Martin. The Longevity Project: Surprising Discoveries for Health and Long Life from the Landmark Eight-Decade Study. New York: Hudson Street Press, 2011.






June 15, 2011

Neanderthals and Cro-Magnons Did Not Much Overlap: Evidence Against an Early Human Golden Age



In 2010 archeologist Brian Fagan published a book that used his read of the evidence to imagine the interactions between Cro-Magnon (us) and Neanderthal humans. He mostly portrayed the interaction as one of wary, but mainly benign mutual neglect. His broader portrayal of the lives of the hunter-gatherer Cro-Magnons did not completely place them in a Golden Age, but did much to praise many aspects of their lives.

Also in 2010, Matt Ridley published a book that discussed and dismissed the view that the hunter-gatherers were to be admired. He mainly pointed to the evidence of how common violent death was among hunter-gatherers, and hence how precarious and fearful their lives must have been.

Now there is additional relevant evidence. Apparently the period of overlap between Cro-Magnons and Neanderthals was much briefer than had been previously believed. This implies (see below) that rather than benign mutual neglect, it is much more likely that the Cro-Magnons violently wiped out the Neanderthals.

Hobbes may not have been entirely wrong when he described early human life as "nasty, poor, brutish and short."


(p. D4) An improvement in the dating of fossils suggests that the Neanderthals, a heavily muscled, thick-boned human species adapted to living in ice age Europe, perished almost immediately on contact with the modern humans who started to enter Europe from the Near East about 44,000 years ago. Until now bones from several Neanderthal sites have been dated to as young as 29,000 years ago, suggesting there was extensive overlap between the two human species. This raised the question of whether there had been interbreeding between humans and Neanderthals, an issue that is still not resolved.


. . .


Reviewing . . . Neanderthal dates ascertained with the new ultrafiltration method, Dr. Higham sees an emerging pattern that no European Neanderthal site can reliably be dated to less than 39,000 years ago. "It's only with reliable techniques that we can interpret the archaeological past," he said.

He is re-dating Neanderthal sites across Europe and so far sees no evidence for any extensive overlap between Neanderthals and modern humans. "There was a degree of contemporaneity, but it may not have been very long," he said. A short period of contact would point to the extinction of the Neanderthals at the hands of modern humans.

"It's very unlikely for Neanderthals to go extinct without some agency from modern humans," Dr. Higham said.

Paul Mellars, an expert on Neanderthals at Cambridge University in England, said that the quality of the dates from Dr. Higham's laboratory was superb and that samples of bone re-dated by the lab's method were almost always found to be several thousand years older than previously measured. The picture supported by the new dates is that the interaction between modern humans and Neanderthals in Europe was brief in each region, lasting perhaps a few hundred years, Dr. Mellars said, until the modern humans overwhelmed their competitors through better technology and greater numbers.



For the full story, see:

NICHOLAS WADE. "Neanderthals and Early Humans May Not Have Mingled Much." The New York Times (Tues., May 10, 2011): D4.

(Note: ellipsis added.)

(Note: the online version of the article is dated May 9, 2011.)


The Fagan book is:

Fagan, Brian. Cro-Magnon: How the Ice Age Gave Birth to the First Modern Humans. New York: Bloomsbury Press, 2010.


The Ridley book is:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





June 9, 2011

"Progress Depended on the Empirical Habit of Thought"



In the passage below from 1984 Orwell presents an underground rebel's account of why the authoritarian socialist dystopia cannot advance in science and technology.


(p. 155) The world of today is a bare, hungry, dilapidated place compared with the world that existed before 1914, and still more so if compared with the imaginary future to which the people of that period looked forward. In the early twentieth century, the vision of a future society unbelievably rich, leisured, orderly, and efficient--a glittering (p. 156) antiseptic world of glass and steel and snow-white concrete--was part of the consciousness of nearly every literate person. Science and technology were developing at a prodigious speed, and it seemed natural to assume that they would go on developing. This failed to happen, partly because of the impoverishment caused by a long series of wars and revolutions, partly because scientific and technical progress depended on the empirical habit of thought, which could not survive in a strictly regimented society.



Source:

Orwell, George. Nineteen Eighty-Four. New York: The New American Library, 1961 [1949].

By Canadian law, 1984 is no longer under copyright. The text has been posted on the following Canadian web site: http://wikilivres.info/wiki/Nineteen_Eighty-Four





June 5, 2011

"If You Could Choose, Would You Prefer to Live Then or Now?"



(p. 78) 'Perhaps I have not made myself clear,' he said. 'What I'm trying to say is this. You have been alive a very long time; you lived half your life before the Revolution. In 1925, for instance, you were already grown up. Would you say from what you can remember, that life in 1925 was better than it is now, or worse? If you could choose, would you prefer to live then or now?'


Source:

Orwell, George. Nineteen Eighty-Four. New York: The New American Library, 1961 [1949].


By Canadian law, 1984 is no longer under copyright. The text has been posted on the following Canadian web site: http://wikilivres.info/wiki/Nineteen_Eighty-Four





June 4, 2011

To Teach the Truth, the Best Teachers Must Become "Canny Outlaws"



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Source of book image: http://www.swarthmore.edu/Images/news/practical_wisdom.jpg




(p. 170) Walking into Mr. Drew's economics class, researchers might have interrupted a board meeting of the student-run start-up company that was at the heart of his course. Drawing on his own experience in industry, Mr. Drew taught students economic principles in a way that made sense to them because they were researching potential products they would actually sell (a mug with the school logo; a T-shirt designed by a student graphics team). They were conducting market surveys, accumulating capital, making decisions about the scale of investment, the risk, the profits.


. . .


In Houston. the magnet schools were forced to reorganize to prepare for the coming White-Perot reforms. McNeil changed her study. The new question was: How would these teachers cope with a curriculum that was test-driven?


. . .


Mr. Drew's economics class did not conform to the proficiency sequence and he had to drop the course, except as an elective.


. . .


The paperwork required by such new requirements--to assure the bureaucracy that teachers were teaching by the rules--discouraged individualized time spent with students and robbed time previously devoted to planning and assessing lessons. The requirements created the same kind of time bind Wong observed when such requirements were imposed on military trainers. (p. 171) And, as in the case of the new military training model, the new requirements discouraged flexibility, adaptability, and creativity.

McNeil found that many of the experienced teachers fought back. They became canny outlaws, or creative saboteurs, dodging the "law," finding ways to cover the "proficiencies" with great efficiency and squirreling away time to sneak real education back in at the margins of the standardized system, sometimes even conspiring with their students or teaching them how to "game" the system. Mr. Drew taught his students that economic cycles vary in length and intensity, but in the test prep period, he told them to forget this because the official answer was that each cycle lasts eighteen months. There was a danger that students who learned to look beyond the obvious, to ask "what if," to look for the exceptions to the rules, would do badly on the tests.


. . .


The ability of wise teachers to operate as canny outlaws is most seriously constrained when a highly scripted curriculum comes riding into town on the heels of high-stakes standardized tests. By prescribing, step by step, what to say and do each day to prepare students for these tests, such lockstep curricula pose a serious challenge to professional discretion. Yet even under these adverse conditions, in many schools there are canny
outlaws who find ways to avoid being channeled.



Source:

Schwartz, Barry, and Kenneth Sharpe. Practical Wisdom: The Right Way to Do the Right Thing. New York: Riverhead Books, 2010.

(Note: ellipses added.)


The McNeil book mentioned above is:

Linda, McNeil. Contradictions of School Reform: Educational Costs of Standardized Testing, Critical Social Thought. New York: Routledge, 2000.


The Wong report mentioned above is:

Wong, Leonard. "Stifled Innovation? Developing Tomorrow's Leaders Today." Strategic Studies Institute Monograph, April 1, 2002.



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Source of book image: http://i43.tower.com/images/mm101682007/contradictions-school-reform-educational-costs-standardized-testing-linda-m-mcneil-paperback-cover-art.jpg





June 1, 2011

Orwell's Indictment of Life Under Communism



(p. 52) He meditated resentfully on the physical texture of life. Had it always been like this? Had food always tasted like this? He looked round the canteen. A low-ceilinged, crowded room, its walls grimy from the contact of innumerable bodies; battered metal tables and chairs, placed so close together that you sat with elbows touching; bent spoons, dented trays, coarse white mugs; all surfaces greasy, grime in every crack; and a sourish, composite smell of bad gin and bad coffee and metallic stew and dirty clothes. Always in your stomach and in your skin there was a sort of protest, a feeling that you had been cheated of something that you had a right to. It was true that he had no memories of anything greatly different. In any time that he could accurately remember, there had never been quite enough to eat, one had never had socks or underclothes that were not full of holes, furniture had always been battered and rickety, rooms underheated, tube trains crowded, houses falling to pieces, bread dark-coloured, tea a rarity, coffee filthy-tasting, cigarettes insufficient--nothing cheap and plentiful except synthetic gin. And though, of course, it grew worse as one's body aged, was it not a sign that this was NOT the natural order of things, if one's heart sickened at the discomfort and dirt and scarcity, the interminable winters, the stickiness of one's socks, the lifts that never worked, the cold water, the gritty soap, the cigarettes that came to pieces, the food with its strange evil tastes? Why should one feel it to be intolerable unless one had some kind of ancestral memory that things had once been different?


Source:

Orwell, George. Nineteen Eighty-Four. New York: The New American Library, 1961 [1949].


By Canadian law, 1984 is no longer under copyright. The text has been posted on the following Canadian web site: http://wikilivres.info/wiki/Nineteen_Eighty-Four





May 28, 2011

"A Lonely Ghost Uttering a Truth that Nobody Would Ever Hear"



(p. 26) He was a lonely ghost uttering a truth that nobody would ever hear. But so long as he uttered it, in some obscure way the continuity was not broken. It was not by making yourself heard but by staying sane that you carried on the human heritage.


Source:
.
Orwell, George. Nineteen Eighty-Four. New York: The New American Library, 1961 [1949].

By Canadian law, 1984 is no longer under copyright. The text has been posted on the following Canadian web site: http://wikilivres.info/wiki/Nineteen_Eighty-Four





May 24, 2011

Crushed Under Eurostar in a Desparate Dash to a Better Life



(p. 280) In recent years, police have practically barricaded the marshalling yard in Calais, France,where the elegant Eurostar train must slow down before it enters the Channel Tunnel to England. Today the Calais marshalling yard for the Channel Tunnel looks like what the military might erect around a flying-saucer wreckage--barbed wire, electric fences, armed guards, and police dogs everywhere. Yet each night as darkness falls desperate men from the developing world, Africans and Pakistanis and Afghans and others, hide throughout the marshalling yard, sprint toward the Eurostar as it slows for the tunnel, and try to cling to its side as it accelerates again. They hope to survive until the train bears (p. 281) them into the United Kingdom, for French law treats illegal immigrants harshly, while England is more liberal. Numerous indigent developing-world men have been killed when they have slipped off the sides or the couplers of Eurostar, then fallen beneath its wheels; the stylish passengers aboard the train may feel a slight bump. Yet the men keep trying, though most must know there is hardly anything on this aerodynamically sleek train to grab hold of. Many are arrested as they dash toward the train and the favored life it represents. If released, they return to dash again. If deported, they try to sneak back into the country and dash again.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





May 20, 2011

Garbage Landfill Is Home to 80,000 in Payatas



(p. 281) Perhaps you've heard of Smoky Mountain, the town-sized garbage landfill in Payatas, outside Manila in the Philippines, that is home to an estimated eighty thousand desperately poor Filipinos who eke out a miserable existence scavenging what others throw away. Eighty thousand people is more than the population of Utica, New York. Entire families have been born at the Smoky Mountain landfill and lived their lives there, amidst squalor, stench, and constant smoke of smoldering trash. In July 2000, about two hundred residents of the Payatas landfill died when a large hill of trash collapsed, burying them under a garbage avalanche.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





May 16, 2011

Risking Likely Death for a Tiny Chance to "Dwell in Freedom and Earn $5.15 an Hour"



(p. 281) For all the legitimate problems people experience in the Western nations, we cannot imagine a world which generates such hopelessness that people will hurl themselves toward moving trains, or climb into the wheel wells of jetliners bound for the sky in order to have a tiny chance of getting to a place where they can dwell in freedom and earn $5.15 an hour.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





May 15, 2011

"A Dart-Throwing Chimpanzee" Predicts as Well as "Experts"

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The image is of the Canadian edition, which has a different subtitle than the American edition cited below. Source of book image: http://3.bp.blogspot.com/_qGSiMLu6NXM/TTWIQkcllmI/AAAAAAAADEI/qD2yo1rxnL0/s1600/Future%2BBabble.jpg



(p. C6) How bad are expert predictions? Almost predictably bad. In 2005, Philip Tetlock, a professor of psychology at the University of Pennsylvania, published the results of a magisterial 20-year analysis of 27,450 judgments about the future from 284 experts. He discovered that the experts, in aggregate, did little better, and sometimes considerably worse, than "a dart-throwing chimpanzee."

While Mr. Tetlock guaranteed anonymity to get his experts to reveal how useless they were, Mr. Gardner names names. In the late 1960s, he notes, the political scientist Andrew Hacker predicted that race relations in America would soon get so bad that they would lead to the "dynamiting of bridges and water mains" and the "assassinating of public officials and private luminaries." In the early 1970s, Richard Falk, at Princeton, imagined that by the 1990s we would be living in a world dominated by "the politics of catastrophe." In the mid-1970s, Daniel Bell and other analysts assumed that high levels of inflation were, as Mr. Gardner puts it, "here to stay." (In fact, inflation cooled off in the early 1980s and has stayed low for decades.) In the early 1990s, Lester Thurow, the MIT economist, was one of the experts who predicted that Japan would dominate the 21st century, though he noted that Europe had a chance, too.

The high priest of erroneous prediction is, of course, Paul Ehrlich, who, though a respected entomologist, turned into an end-of-the-worlder with "The Population Bomb" (1968) and "The End of Affluence" (1974). In the latter book he wrote: "If I were a gambler, I would take even money that England will not exist in the year 2000." Now 77, Mr. Ehrlich is "a gregarious and delightful man, a natural performer," Mr. Gardner reports, thereby tapping into the sources of his success in the face of repeated failure: Never admit mistakes, never sound doubtful. As Mr. Gardner shows in his survey of expert prediction-making, the more you sound like you know what you are talking about, the more people will believe you.



For the full review, see:

TREVOR BUTTERWORTH. "Prophets of Error." Wall Street Journal (Sat., APRIL 30, 2011): C6.

(Note: the online version of the article is dated APRIL 30, 2011.)


The book being reviewed, is:

Gardner, Dan. Future Babble: Why Expert Predictions Are Next to Worthless, and You Can Do Better. New York: Dutton Adult, 2011.


The important Tetlock book mentioned, is:

Tetlock, Philip E. Expert Political Judgment: How Good Is It? How Can We Know? Princeton, NJ: Princeton University Press, 2005.





May 12, 2011

"The Frozen Body of Someone Desperate to Enter the United States"



(p. 279) In August 2001, as an American Airlines 777 jetliner arriving from overseas descended toward John F. Kennedy International Airport in New York and lowered its landing gear, the frozen body of a man fell into a marsh beneath the field's approach lanes. The body, believed to be that of a young Nigerian, was buried in a plain wooden casket in City Cemetery, the resting place of New York indigents popularly known as Potter's Field. No one will ever know for certain, but it appears the young man, who carried no identification, had hidden in the wheel well of the jet, hoping to steal into the United States. If, as police speculated, he was from an African village, he might not have known that the air outside a jetliner at cruise altitude may be minus-80 degrees Fahrenheit, and that wheel wells are unheated; they are also not pressurized, rendering breathing almost impossible at a jetliner's cruise altitude. Or the victim might have known these things and climbed into the wheel well anyway because he was desperate. The unknown man's death (p. 280) marked the third time since 1997 that the frozen body of someone desperate to enter the United States had fallen from the wheel wells as a jetliner from overseas lowered its landing gear on descent toward JFK. In the man's pockets were a few minor personal effects and a street-vendor's map of Manhattan.

Contemplating this tragedy I thought, first, of the horror the man must have experienced as the plane's mindless hydraulic mechanisms drew the landing struts and wheels up to crush him. Somehow he avoided being crushed--only to realize as the air craft ascended that it was getting very cold and the air was getting very thin, and he was going to die gasping and shaking. Then I contemplated what the man's final thoughts might have been. Fear, of course; regret. Perhaps, at the last, dread that his own death might consign the rest of his family in his village to a life of suffering: for the desperation of many trying to reach the West from the developing world is motivated by their desire to work extremely hard and to live on the edge here, sending part of their incomes back home to those even worse off.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





May 11, 2011

Nearly Half of College Students Learn Nothing in First Two Years



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Source of book image: http://ffbsccn.files.wordpress.com/2011/01/academically-adrift.jpg




(p. D9) Andrew Carnegie didn't think much of college. More than a century ago, he looked around at the men commanding the industries of the day and found that few had wasted their time lollygagging on a campus quad. "The almost total absence of the graduate from high positions in the business world," he wrote in "The Empire of Business," "seems to justify the conclusion that college education, as it exists, is fatal to success in that domain."


. . .


. . . , as the reward for the collegiate credential has been going up, what goes into getting that degree has been going down. So find sociologists Richard Arum and Josipa Roksa in their book "Academically Adrift" (University of Chicago Press). Institutions of higher learning are "focused more on social than academic experiences," they write. "Students spend very little time studying, and professors rarely demand much from them in terms of reading and writing." More than a third of students do less than five hours of studying a week--and these shirkers end up, on average, earning B's.

Ms. Roksa, who teaches at University of Virginia, and Mr. Arum, a professor at New York University, mined data from thousands of sophomores who retook a learning assessment test they had first been given when they arrived at college. Nearly half the students showed no sign of intellectual progress after two years of undergraduate endeavor.


. . .


What would Mr. Carnegie have thought of it? "While the college student has been learning a little about the barbarous and petty squabbles of a far-distant past," he wrote, "or trying to master languages which are dead...the future captain of industry is hotly engaged in the school of experience, obtaining the very knowledge required for his future triumphs." Mr. Carnegie may have thought the knowledge gained at college was "adapted for life upon another planet," but he did expect that the students were gathering some sort of knowledge. Shouldn't parents footing the massive tab for tuition be able to expect the same?



For the full commentary, see:

ERIC FELTEN. "POSTMODERN TIMES; Now College is the Break." The Wall Street Journal (Fri., FEBRUARY 11, 2011): D9.

(Note: ellipses added.)


The book under discussion is:

Arum, Richard, and Josipa Roksa. Academically Adrift: Limited Learning on College Campuses. Chicago: University of Chicago Press, 2011.





May 8, 2011

Hillary Clinton Blasted "Materialism" in Others and Bought a $1.7 Million House for Herself



(p. 145) . . . , it is standard to denounce materialism in others while lusting for it ourselves. At the end of the 1990s, Hillary Rodham Clinton decried "a consumer-driven culture that promotes values that undermine democracy" and blasted "materialism that undermines our spiritual centers." Shortly thereafter, she bought a $1.7 million home and signed an $8 million book contract. As the novelist Daniel Akst has noted, Rodham Clinton thus joined the long line of commentators "bent on saving the rest of us from the horrors of consumption" while taking care to make themselves rich and comfy.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.

(Note: ellipsis added.)





May 5, 2011

"When We Get 'Out of Book,' We Are at Our Most Human"



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Source of book image: http://www.turingfilm.com/wp-content/uploads/2011/03/11-3-18-The-Most-Human-Human.jpg




To be an innovative entrepreneur is to "get out of book" in the language well-expressed below.


(p. A17) In chess, computers are strongest in the parts of the game in which human players rely most on memory: the opening and closing sequences. (Serious players learn strategies by rote, and the early stages of even grandmaster games contain few surprises for the cognoscenti.) Knowledge of these tried and tested moves is called "the book." By the middle section of a game, however, the number of permutations of moves is too vast for memorization to help. Here players need to get "out of book" and act unexpectedly, which is why computers--even Deep Blue--can struggle.

Mr. Christian elaborates on this distinction and applies it to human intelligence in general. For isn't it precisely when people refuse to get "out of book"--just following orders or playing their role--that we find them least human? Likewise, when we get "out of book," we are at our most human. Think of the difference between the waiter who runs through the usual routine and the one who responds to your order with a witticism. Remaining alive to what is mechanical or original in our own behavior can preserve a sense of human difference.



For the full review, see:

JULIAN BAGGINI. "BOOKSHELF; More Than Machine; No computer has yet to pass the Turing Test, fooling judges into believing its responses come from a person." Wall Street Journal (Tues., MARCH 8, 2011): A17.





May 4, 2011

Limits to "Sprawl" Add to House Prices Which Benefits the "Already Entrenched"



(p. 130) If 50 percent more Americans are on the way that means there must be 50 percent more suburban subdivisions, 50 percent more malls, 50 percent more of everything--unless anyone thinks it is fair to deny to newcomers the physical space and comfort that current Americans enjoy.

Sprawl may he managed well or poorly, and "smart growth" is better than dumb growth. But when people object to development per se, what they almost always mean is that they have achieved a nice lifestyle and now wish to pull up the ladders against others--and, not coincidentally, to make their own properties more valuable by artificially limiting supply. California real estate prices in particular have shot up in the last decade because slow-growth ordinances and no-growth judicial rulings have artificially restricted housing supply. Opposing sprawl can be a financial boon to anyone who's already entrenched.

Anything that runs up housing prices is of particular concern to educational equality, since today, in many parts of the United States, the housing market in effect regulates access to the best public schools. Buyers pay significant premiums for homes in the districts of high-quality public schools; in the Washington, D.C., suburbs, a home in the excellent Fairfax County or Montgomery County school systems may sell for $200,000 more than an identical dwelling from which children would attend the troubled schools of Prince George's County or Arlington County. In turn, SAT scores rise in tandem with family income--each $10,000 increment of increase in family income adds twenty to thirty points to a child's total SAT scores, studies show. Why does family income raise SAT scores? Partly because a high income enables parents to give children extra advantages, partly because low income parents or parents in broken families may shirk their responsibility for helping children succeed in school, but mostly (p. 131) because the higher a family's income the better a school district it can buy into, via the housing market. Since education is closely linked to success in later life, the nation has an interest in preventing exclusionary housing prices. That means there must be more sprawl and more growth to increase the housing supply and thereby reduce prices.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





April 25, 2011

Are Small Bets Enough to Get Breakthrough Innovation, Or Do You Usually Need Big Bets?



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Source of book image: online version of the WSJ review quoted and cited below.







I am dubious of the main thesis of the book discussed in the review quoted below. But it sounds like an interesting read.


"I'll be happy to give you innovative thinking," a bedraggled employee tells his boss in a classic Leo Cullum cartoon. "What are the guidelines?"

Guidelines are what Peter Sims seeks to provide in "Little Bets," an enthusiastic, example-rich argument for innovating in a particular way--by deliberately experimenting and taking small exploratory steps in novel directions. Some little bets will not pay off, of course, in which case little is lost; but others may pay off in big ways.


. . .


The point is that good (or even just delicious) ideas rarely emerge fully formed, like Athena from the head of Zeus; rather they evolve in a discursive and unpredictable fashion. The challenge is to enable this process rather than squelch it because it is hard to manage or because its results are hard to predict.

Light, bright and packed with tidy anecdotes, "Little Bets" feels at times like a motivational speaker's presentation. Its claims are often attractive, but the analytical apparatus can be shaky: correlation is confused with causation; counter-evidence is ignored (such as those who put down small bets but never enjoy large returns); the role of circumstance or luck is underestimated; and some facts seem cherry-picked to push the message.



For the full commentary, see:

DAVID A. SHAYWITZ. "BOOKSHELF; Where the Action Is; Taking small exploratory steps and 'prototyping,' as when Chris Rock tests out jokes at obscure comedy clubs." The Wall Street Journal (Fri., APRIL 22, 2011): A11.

(Note: ellipsis added.)


The book under review is:

Sims, Peter. Little Bets: How Breakthrough Ideas Emerge from Small Discoveries. New York: Free Press, 2011.





April 20, 2011

Impressions of the Movie Atlas Shrugged, Part 1



Ayn Rand's Atlas Shrugged was the most important book of my youth. I still believe that it is an important, and mainly good, novel.

My brother Eric asked me what I thought of the Atlas Shrugged, Part 1 movie that my family went to see on Saturday afternoon (4/16/11). I sent him these first impressions:

I think some of the people making the movie probably meant well---but it turned out pretty wooden.

Rearden is the main male character in the movie, and the range of his facial expressions is between mildly annoyed and mildly amused.

There isn't anger or passion or joy or fear in the movie, although all of those were in the first part of the book. Watching the movie is like watching a set of dramatized homilies.

The hokey scenes of a shadowy John Galt, kill some of the suspense. (And dressing him in a 1940s fedora seems awkwardly atavistic, given that the movie is supposed to be taking place in 2016.)

It wasn't all bad. There are some nice scenes of a fast train traveling through Colorado and over a sleek bridge of Rearden metal. And I agree with many of the homilies.

Overall, I wasn't appalled, but I was disappointed.






April 18, 2011

"Elites Like Bad News"



(p. 101) Many elites love writers such as Jean-Paul Sartre, who viewed all human action as meaningless, or Thomas Pynchon, whose novels, such as Gravity's Rainbow purport to present hard-science arguments that ours is a pointless universe doomed to meaningless demise. Pynchon's grasp of physics is debatable; what matters is that when he claimed to have found scientific proof the universe is pointless, many of a certain ilk were eager to believe him. Eighty years ago, elites of the United Stares and Europe gushed in praise over the social historian Oswald Spen-(p. 102)gler's work The Decline of the West, which argued not only that American and European civilization "one day will lie in fragments, forgotten" but that the downfall of Western civilization was imminently at hand. Similarly, William Butler Yeats in the early twentieth century was praised by Western intellectuals for predicting pending social disintegration through his famed phrase, "Things fall apart; the centre cannot hold." Spengler even maintained that the collapse of Western civilization would be a beneficial development, because America and Europe were contemptible. Eight decades later, the West is far stronger, richer, more secure, more diverse, and more free than when Spengler declared it a decaying relic about to vanish. Nevertheless, his work and similar predictions of impending Western collapse are still spoken of reverentially among intellectual elites, a portion of whom delight to hear anything American and European called bad.

If elites like bad news, then the eagerness of intellectuals, artists, and tastemakers to embrace claims of ecological doomsday, population crash, coming global plagues, economic down fall, cultural wars, or the end of this or that become, at least, comprehensible.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.

(Note: italics in original.)





April 14, 2011

U.S. Citizens Choose Cars for 99% of Trips



(p. 92) America is a car culture and has been for almost a century, the phrase "traffic jam" dating to 1910, meaning we're stuck with car culture for the time being. In the United States, the number of trips taken on public transportation has since 1998 been rising more rapidly than trips taken in cars. But public transportation nevertheless cannot be a cure-all for traffic congestion, since only a total of 1 percent of all U.S. trips occur on public transit. Double the share, which would require notable effort and capital expense, and it's still only 2 percent. A car culture with a rising population and rising prosperity has little choice but to keep investing in roads and parking.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





April 13, 2011

Some "Professors Are Oblivious to the Costs of Complex Procedures"



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Source of book image: http://si.wsj.net/public/resources/images/ED-AK828_book01_DV_20100114190709.jpg






(p. 30) Champions of the market can turn up in the oddest places. At the same time that bankers and businessmen are acknowledging the downsides of unregulated capitalism, college and university reformers are urging the academy to more closely embrace the marketplace.

Amid the raft of new books on the failings of higher education, some challenge the longtime separation between ivy-covered idealists and real-world demands. Scholarly disdain for getting and spending, they argue, has caused serious trouble both in the classroom and in the budget office.

In his slim book "The Marketplace of Ideas," Louis Menand, an English professor at Harvard and a Pulitzer Prize-winning author, offers to answer a few questions about the humanities, like why professors all seem to have similar politics and why it is so difficult to implement a core curriculum.


. . .


Mr. Garland also wants to bring some market discipline to the culture of academia. While professors tend to be progressives, they are stubbornly conservative when it comes to change. Indeed, as Mr. Menand points out, early reformers argued that the only way to elevate excellence above profits in a capitalist society was by protecting the profession from the market's insistence on cash rewards.

The result, Mr. Garland maintains, is that professors are oblivious to the costs of complex procedures, drawn-out debates and layers of committees; appeals to increase efficiency and productivity are routinely scorned.



For the full review, see:

PATRICIA COHEN. "Books; Reform; Embracing the Marketplace." The New York Times, Education Life Section (Sun., January 3, 2010): 30.

(Note: ellipsis added.)

(Note: the online version of the review has the date December 29, 2009.)


First book discussed in review:

Menand, Louis. The Marketplace of Ideas: Reform and Resistance in the American University. Edited by Henry Louis Gates Jr., Issues of Our Time. New York: W. W. Norton & Company, 2010.


Second book discussed in review:

Garland, James C. Saving Alma Mater: A Rescue Plan for America's Public Universities. Chicago: University Of Chicago Press, 2009.



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Source of book image: https://www.stanford.edu/group/cubberley/files/images/SavingAlmaMater.preview.jpg






April 12, 2011

Socialism Is "Morally Corrupting"



On balance, Stephen Pollard believes that Claire Berlinski's book on Thatcher is poorly written. But he does believe that Berlinski got one important point right:


(p. 22) She is quite right, . . . , to stress that Thatcher's crusade against socialism was not merely about economic efficiency and prosperity but that above all, "it was that socialism itself -- in all its incarnations, wherever and however it was applied -- was morally corrupting."


For the full review, see:

STEPHEN POLLARD. "Thatcher's Legacy." The New York Times Book Review (Sun., January 18, 2009): 22.

(Note: ellipsis added.)

(Norte: the online version of the review has the date January 16, 2009.)


Book reviewed:

Berlinski, Claire. There Is No Alternative: Why Margaret Thatcher Matters. New York: Basic Books, 2008.






April 11, 2011

For Rand Money Was a Reward and a Noble Means, But Her Vision Was the End



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Source of book image:
http://2.bp.blogspot.com/_ZnmbvrcWaFQ/TQDZppbZS6I/AAAAAAAAAoM/CjtOtOuGYAM/s1600/ayn-rand-and-the-world-she-made.jpg






For Rand, adopting the dollar sign as a symbol was an ironic gesture--an elegant and graceful way of thumbing her nose at those who attacked the innovation and creativity of capitalism. They criticized a caricatured version of capitalism, and she threw the caricature back at them.

But at her most serious, money was never an end-in-itself for her, but rather a reward for achieving creative innovation, and a means for accomplishing even more ambitious creative innovation.

Remember that in Rand's pure and lyrical Anthem, the hero is willing to give his invention away, and even be killed, as long as the Council agrees to allow the light he invented to keep shining.

In that wonderful moment with Bennett Cerf, Ayn Rand lived up to the hero she had created:


(p. 8) When Bennett Cerf, a head of Random House, begged her to cut Galt's speech, Rand replied with what Heller calls "a comment that became publishing legend": "Would you cut the Bible?" One can imagine what Cerf thought -- he had already told Rand plainly, "I find your political philosophy abhorrent" -- but the strange thing is that Rand's grandiosity turned out to be perfectly justified.

In fact, any editor certainly would cut the Bible, if an agent submitted it as a new work of fiction. But Cerf offered Rand an alternative: if she gave up 7 cents per copy in royalties, she could have the extra paper needed to print Galt's oration. That she agreed is a sign of the great contradiction that haunts her writing and especially her life.


. . .


Yet while Rand took to wearing a dollar-sign pin to advertise her love of capitalism, Heller makes clear that the author had no real affection for dollars themselves. Giving up her royalties to preserve her vision is something that no genuine capitalist, and few popular novelists, would have done.



For the full review, see:

ADAM KIRSCH. "Capitalist With a $." The New York Times Book Review (Sun., November 1, 2009): 1 & 8.

(Note: ellipsis added.)

(Note: the online version of the review is dated October 29, 2009 and has the title "Ayn Rand's Revenge.")


Book reviewed:

Heller, Anne C. Ayn Rand and the World She Made. New York: Nan A. Talese/Doubleday, 2009.


Here is what the hero says in the key passage of Anthem:

"Our brothers! Your are right. Let the will of the Council be done upon our body. We do not care. But the light? What will you do with the light?" (p. 72)


Source:

Rand, Ayn. Anthem. Caldwell, Idaho: The Caxton Printers, Ltd., 1946.





April 10, 2011

Cars Increase Our "Personal Area"



(p. 89) Cars are the primary reason for the ever increasing "personal area" of Western life. As Jesse Ausubel of Rockefeller University has shown, "personal area"--the volume of territory through which someone moves in a typical day--has risen tenfold in the West since 1950, mainly because "personal speed" has tripled. Before general ownership of cars, most people were limited on most days to destinations to which the could walk, or that were close to bus or streetcar lines. Now most people head to whatever destination they wish, so long as traffic jams don't intervene. Ausubel has found that the "personal speed" of typical Americans has been rising at about 2.7 percent per annum for a generation; at that rate, the "personal area" the typical individual covers per day doubles every twenty-five years. Racing around from one destination to the next--job, school, stores, gym, restaurant, church--may be stressful. But the fact that people are increasingly able to choose where they want to be, and choose when they want to be there, ¡s an addition to personal (p. 90) freedom. Cars are what make "personal speed" and "personal area" possible, and we wouldn't love them so much were they not so damn convenient in this regard.

Aspects of car culture are unsettling, however. Speed and convenience in transit, for example, don't necessarily translate into a more pleasing life. "The mobility of the private car has the paradoxical effect of lengthening how far people go rather than saving them time," Alan Durning has written.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





April 5, 2011

Affluence Has Made America More Libertarian



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Source of book image: http://images.bookbyte.com/isbn.aspx?isbn=9780060747664




(p. 16) Various scolds and worrywarts have exclaimed, with Wordsworth, that "getting and spending, we lay waste our powers." To such Jeremiahs, Lindsey provides an essentially cheerful, although not altogether so, counterpoint: affluence has made America a more libertarian, and hence a nicer, place.

First came material improvement. Until very recently, he notes, when people prayed for their daily bread, they often were praying for just that. Not so long ago, many ordinary lives of quiet desperation ended especially dismally: about 10 percent of burials in New York City in 1889 were in potter's fields. In 1900, 1.75 million children between the ages of 10 and 15 -- almost one-fifth of all children in that age cohort -- were in the work force. Children provided one-fourth to one-third of the incomes for working-class families, which spent more than 90 percent of their household earnings on food, shelter and clothing. In 1900, Americans spent nearly twice as much on funerals as on medicine, and less than 2 percent of Americans took vacations.


. . .


Affluence, Lindsey writes, has provided "a mad proliferation of choices -- and what, in the end, is freedom but the ability to choose?"



For the full review, see:

GEORGE F. WILL. "Land of Plenty." The New York Times Book Review (Sun., June 10, 2007): 16-17.

(Note: ellipsis added.)


Book reviewed:

Lindsey, Brink. The Age of Abundance: How Prosperity Transformed America's Politics and Culture. New York: HarperCollins, 2007.





April 3, 2011

U.S. Holds "Edge in Its Openness to Innovation"



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Source of book image: http://www.tower.com/tycoons-how-andrew-carnegie-john-d-rockefeller-jay-charles-r-morris-paperback/wapi/100346776?download=true&type=1



(p. 24) Judging by Charles R. Morris's new book, "The Tycoons," it takes about 100 years for maligned monopolists and "robber barons" to morph into admirable innovators.

Morris skillfully assembles a great deal of academic and anecdotal research to demonstrate that Andrew Carnegie, John D. Rockefeller, Jay Gould and J. P. Morgan did not amass their fortunes by trampling on the downtrodden or ripping off consumers - . . .


. . .


Though Morris only hints at it, the truth is that the real heroes of the American industrial revolution were not his four featured tycoons, but the American people themselves. I don't mean this to sound like a corny burst of patriotism. In the 19th century, the United States was still young. Most families had either been booted out of Europe or fled it, and they didn't care about tradition or the Old Guard. With little to lose, they were willing to bet on a roll of the dice, even if it was they who occasionally got rolled. Europe was encrusted with guilds, unions and unbendable rules. Britons took half a day to make a rifle stock, because 40 different tradesmen poked their noses into the huddle. American companies polished off new rifle stocks in 22 minutes.

The United States still holds an edge in its openness to innovation. In 1982, French farmers literally chased the French agriculture minister, Edith Cresson, off their fields with pitchforks because she suggested reform. By contrast, back in the late 1850's, Abraham Lincoln was a hot after-dinner speaker. Was he discussing slavery? No. The title of his talk was "Discoveries and Inventions." The real root of economic growth is not natural resources or weather or individual genius. It's attitude, not latitude. The Austrian economist Joseph Schumpeter called innovations gales of "creative destruction." Americans, not Europeans, had the gall to stare into those gales - with optimism.



For the full review, see:

TODD G. BUCHHOLZ . "'The Tycoons': Benefactors of Great Wealth." The New York Times Book Review (Sun., October 2, 2005): 24.

(Note: ellipses added.)

(Note: the online version of the review has the title "'The Tycoons': Benefactors of Great Wealth.")


Book under review:

Morris, Charles R. The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supereconomy. New York: Times Books, 2005.





April 2, 2011

Middle-Class Today Live Better than 99.4% of Humans Who Ever Lived



(p. 80) In his extraordinary book Mapping Human History, the science writer Steve Olson estimates that 80 billion "modern" humans--from the first beings recognizable as our forebears to the advent of Homo sapiens sapiens, our official name--have walked the earth down through the millennia. Supposing this number is correct, the men and women at middle-class standards or above in the United States and the European Union now live better than 99.4 percent of the human beings who have ever existed.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.


The Olson book mentioned is:

Olson, Steve. Mapping Human History: Discovering the Past through Our Genes. New York: Houghton Mifflin Company, 2002.

(Note: italics in original.)






March 29, 2011

Cars Bring Convenience, Freedom, and Personal Security



(p. 16) Two generations ago in the United States,most families lacked a car; by our parents' generation, most families had one car while the two-car lifestyle was a much-sought ideal; today a third of America's families own three cars or more. The United States now contains just shy of one automobile per licensed driver, and is on track to having more cars than licensed drivers. Cars are a mixed blessing, as a future chapter will detail: But there is no doubt they represent convenience, freedom, and, for women, personal security, when compared to standing on street corners waiting for buses or lingering on dark subway platforms. Cars would not he so infuriatingly popular if the did not make our lives easier. Today all but the bottom-most fraction of the impoverished in the United States do most of their routine traveling by car: 100 auto trips in the United States for every one trip on a bus or the subway, according to the American Public Transit Association. The portion of routine trips made in private cars is rising toward overwhelming in the European Union, too. Two generations ago, people dreamed of possessing their own cars. Now almost everyone in the Western world who desires a car has one--and vehicles that are more comfortable, better-equipped, lower-polluting, and much safer than those available only a short time ago.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





March 24, 2011

The Progress Paradox Documents How Life Is Better Here and Now



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Source of book image: http://grigr.com/




Greg Easterbrook's book has been out for several years, but I am a slow reader and have a long "to read" list. I enjoyed the first half or so of the book very much, and also enjoyed some parts of the second half. Roughly speaking, the first half is devoted to illustrating how much better life is now than before, and here (the West) than there (the less-developed countries). Roughly speaking, the second half of the book asks why we aren't happier, and complains about areas of life where Easterbrook sees room for improvement.

Some of the part I like has now been updated, or written with better argument or more panache, by Matt Ridley in The Rational Optimist. But even so, Easterbrook often gives examples, or arguments, that complement Ridley's case.

And even though Ridley is on average more eloquent than Easterbrook, the latter is eloquent plenty often enough to be worth reading. (And maybe my judgment about eloquence is colored by my agreeing with Ridley 90% of the time, and only agreeing with Easterbrook 75% of the time.)

On the less-satisfying second half of the book: worthwhile questions are often asked, but the answers are few and not very satisfying.

In the next few weeks, I'll occasionally be quoting a few of the more illuminating or edifying passages in the Easterbrook book.



Easterbrook's book:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.


The Ridley book that I mention:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





March 20, 2011

"The Adventurous, Pioneering Spirit"



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Source of book image: http://www.jetagebook.com/



(p. 30) "Jet Age" is ostensibly about the race between two companies and nations to commercialize a military technology and define a new era of air travel. There's Boeing with its back to the wall and its military contracts drying up, betting everything on passenger jets, pitted against de Havilland and the government-subsidized project meant to reclaim some of Britain's lost glory. . . .


. . .


But the book is really about the risk-taking essential for making any extreme endeavor common­place. "Jet Age" celebrates the managers, pilots, engineers, flight attendants and, yes, even passengers (for without passengers there is no business) who gambled everything so that we might cross oceans and continents in hours rather than days.

It is easy to forget, in this time of overcrowded flights, demoralizing security checks, embattled flight attendants and dwindling service, that risk was once embraced as a necessary, even desirable, part of flying. Quoted in the book, the celebrated aviator Lord Brabazon summed it up in post-accident testimony: "You know, and I know, the cause of this accident. It is due to the adventurous, pioneering spirit of our race. It has been like that in the past, it is like that in the present, and I hope it will be in the future."



For the full review, see:

MICHAEL BELFIORE. "Fatal Flaws." The New York Times Book Review (Sun., February 6, 2011): 30.

(Note: ellipses added.)

(Note: the online version of the article is dated February 4, 2011.)


The book under review is:

Verhovek, Sam Howe. Jet Age: The Comet, the 707, and the Race to Shrink the World. New York: Avery, 2010.





March 19, 2011

Abraham Lincoln's Defence of the Patent System




William Rosen quotes a key passage from Abraham Lincoln's speech on "Discoveries, Inventions, and Improvements":


(p. 323) The advantageous use of Steam-power is, unquestionably, a modern discovery. And yet, as much as two thousand years ago the power of steam was not only observed, but an ingenious toy was actually made and put in motion by it, at Alexandria in Egypt. What appears strange is that neither the inventor of the toy, nor any one else, for so long a time afterwards, should perceive that steam would move useful machinery as well as a toy. . . . . . . in the days before Edward Coke's original Statute on Monopolies, any man could instantly use what another had invented; so that the inventor had no special advantage from his own invention. . . . The (p. 324) patent system changed this; secured to the inventor, for a limited time, the exclusive use of his invention; and thereby added the fuel of interest to the fire of genius, in the discovery of new and useful things.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and ellipses in original.)





March 17, 2011

Koch Does Not Run with the Antelope



If you were standing amongst a herd of antelope when a dangerous predator arrived, you would not see the antelope defending themselves against the predator. What you would see would be their white rear ends disappearing in the distance.

Last July in Wichita I heard some executives from Koch Industries talking about Market-Based Management. A couple of them mentioned Koch's stands in defense of the free market. As a result of these efforts, Koch Industries has become the target of many agencies of the government and of groups opposed to the free market. Once or twice I heard an executive say something like: 'it would have been a lot easier if we had just painted our butts white and run with the antelope.'

Schumpeter thought that those in business would not defend the fortress of capitalism (CSD, p. 142). And the evidence suggests that Schumpeter was mainly right. But we can hope that there are enough exceptions, in unpretentious places like Wichita, to keep the fortress standing.


(p.A15) Years of tremendous overspending by federal, state and local governments have brought us face-to-face with an economic crisis. Federal spending will total at least $3.8 trillion this year--double what it was 10 years ago. And unlike in 2001, when there was a small federal surplus, this year's projected budget deficit is more than $1.6 trillion.

Several trillions more in debt have been accumulated by state and local governments. States are looking at a combined total of more than $130 billion in budget shortfalls this year. Next year, they will be in even worse shape as most so-called stimulus payments end.

For many years, I, my family and our company have contributed to a variety of intellectual and political causes working to solve these problems. Because of our activism, we've been vilified by various groups. Despite this criticism, we're determined to keep contributing and standing up for those politicians, like Wisconsin Gov. Scott Walker, who are taking these challenges seriously.



For the full commentary, see:

CHARLES G. KOCH. "Why Koch Industries Is Speaking Out; Crony capitalism and bloated government prevent entrepreneurs from producing the products and services that make people's lives better." The Wall Street Journal (Tues., MARCH 1, 2011): A15.


Koch's book is:

Koch, Charles G. The Science of Success: How Market-Based Management Built the World's Largest Private Company. Hoboken, NJ: Wiley & Sons, Inc., 2007.





March 15, 2011

Lincoln's Popular Speech on "Discoveries, Inventions, and Improvements"



(p. 322) Lincoln, the only American president ever awarded a patent, had a long and passionate love for things mechanical. He made his living for many years as a railroad lawyer and appears to have absorbed something of the fascination with machines, and with steam, of the engineers with whom he worked. . . .     . . . , in 1859, after his loss in the Illinois senatorial race against Stephen Douglas, he was much in demand for a speech entitled "Discoveries, Inventions, and Improvements" that he gave at agricultural fairs, schools, and self-improvement societies.

The speech--decidedly not one of Lincoln's best--nonetheless revealed an enthusiasm for mechanical innovation that resonates (p. 323) powerfully even today. "Man," Lincoln said, "is not the only animal who labors, but he is the only one who improves his workmanship . . . by Discoveries and Inventions."



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and last ellipsis in original; other ellipses added.)





March 14, 2011

"The Information in a Message Is Inversely Proportional to Its Probability"



TheInformationBKd.jpg
















Source of book image: http://www.umcs.maine.edu/~chaitin/



(p. A13) What, exactly, is information? Prior to Shannon, Mr. Gleick notes, the term seemed as hopelessly subjective as "beauty" or "truth." But in 1948 Shannon, then working for Bell Laboratories, gave information an almost magically precise, quantitative definition: The information in a message is inversely proportional to its probability. Random "noise" is quite uniform; the more surprising a message, the more information it contains. Shannon reduced information to a basic unit called a "bit," short for binary digit. A bit is a message that represents one of two choices: yes or no, heads or tails, one or zero.


For the full review, see:

JOHN HORGAN. "Little Bits Go a Long Way; The more surprising a message, the more information it contains." The Wall Street Journal (Tues., March 1, 2011): A13.



Book being reviewed:

Gleick, James. The Information: A History, a Theory, a Flood. New York: Pantheon Books, 2011.





March 12, 2011

The Dangers from Disease Are Much Greater than the Dangers from Vaccines



Offit-Deadly-ChoicesBK.jpg














Source of book image:
http://blogs.plos.org/takeasdirected/files/2011/02/Offit-Deadly-Choices1.jpg




Sometime during the weekend of Feb. 26-27, 2011, I saw several minutes of a C-Span book TV presentation by Paul Offit on his Deadly Choices book. He made a strong case that based on casual and unsound evidence, many parents are putting their children at risk by delaying or even foregoing having their children vaccinated.

As a result children are dying from diseases that they easily could have been protected against.


Book discussed:

Offit, Paul A. Deadly Choices: How the Anti-Vaccine Movement Threatens Us All. New York: Basic Books, 2011.






March 11, 2011

"Rocket" Showed the Motive Power of the Industrial Revolution




Stephenson's steam locomotive, called "Rocket," won the Rainhill Trials in 1829. Rosen uses this as the culminating event in his history of the development of steam power.


(p. 310) The reason for ending with Stephenson's triumph . . . seems persuasive. Rainhill was a victory not merely for George and Robert Stephenson, but for Thomas Saverv and Thomas Newcomen, for James Watt and Matthew Boulton, for Oliver Evans and Richard Trevithick. It was a triumph for the iron mongers of the Severn Valley, the weavers of Lancashire, the colliers of Newcastle, and the miners of Cornwall. It was even a triumph for John Locke and Edward Coke, whose ideas ignited the Rocket just as much as its firebox did.

When the American transcendentalist Ralph Waldo Emerson met Stephenson in 1847, he remarked, "he had the lives of many men in him."

Perhaps that's what he meant.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics in original; ellipsis added.)





March 10, 2011

Egypt's Urban Decline as Cause (or Symptom) of Slow Growth




EgyptUrbanChangeAndGrowthGraphs2011-02-27.jpg














Source of graphs: online version of the NYT article quoted and cited below.






















We all know that correlation is not the same as causation. The main cause of Egypt's slow growth is its lack of institutions and policies supporting entrepreneurial capitalism, and not the decline of Egyptian cities. (But the decline of Egyptian cities does not help.)



(p. B1) Since then, the cities of Asia have expanded rapidly, drawing in millions of peasant farmers looking for a better life -- and, more often than not, finding it. Almost 50 percent of East Asians now live in cities. And Egypt? It is the only large country to have become less urban in the last 30 years, according to the World Bank. About 43 percent of Egyptians are city dwellers today.

This urban stagnation helps explain Egypt's broader stagnation. As tough as city life in poor countries can be, it's also fertile ground for economic growth. Nearly everything can be done more efficiently in a well-run city, be it plumbing, transportation or the generation of new ideas and businesses. "Being around other people," says Paul Romer, the economist and growth expert, "helps make us smarter."

Edward Glaeser, a Harvard economist (and weekly contributor to the Times's Economix blog), has just published a book, "The Triumph of the City, making the case that cities are humanity's greatest invention. Countries that become more urban tend to become far more productive, Mr. Glaeser writes. The effect is even bigger for poor countries than rich ones.


. . .


Three researchers -- Michael Clemens, Lant Pritchett and Claudio Montenegro -- recently found a novel way to measure how well various countries use the workers they have. The three compared the wages of immigrants to the United States with the wages of similar workers from the same country who remained home.

A 35-year-old urban Egyptian man with a high school education who moves to the United States can expect an incredible eightfold increase in living standards, the researchers found. Immigrants from only two countries, Yemen and Nigeria, receive a larger boost. In effect, these are the countries with the biggest gap between what their workers can produce in a different environment and what they are actually producing at home.

No wonder 19 percent of Egyptians told Gallup (well before the protests) that they would move to another country if they could. Mr. Clemens says that for every green card the United States awarded in a recent immigration lottery, 146 Egyptians had applied.



For the full commentary, see:

DAVID LEONHARDT. "Economic Scene; For Egypt, a Fresh Start, With Cities." The New York Times (Weds., February 16, 2011): B1 & B11.

(Note: ellipsis added.)

(Note: the online version of the article was dated February 15, 2011.)


The scholarly article summarized is:

Clemens, Michael, Claudio Montenegro, and Lant Pritchett. "The Place Premium: Wage Differences for Identical Workers across the Us Border." HKS Faculty Research Working Paper Series # RWP09-004, January 2009.


The Glaeser book is:

Glaeser, Edward L. Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier. New York: Penguin Press, 2011.






March 7, 2011

Better Rails Were Needed Before Train Would "Work"



(p. 300) The other weight problem was the one that licked Trevithick at Penydarren: The tracks on which the locomotive ran were just not able to survive the tonnage traveling over them. Driving a five-ton steam locomotive over rails designed for horse-drawn carts was only slightly more sensible than driving a school bus over a bridge made of wet ice cubes. In both cases, it's a close call whether the vehicle will skid before or after the surface collapses.


. . .


(p. 301) Two years later, Stephenson, in collaboration with the ironmonger William Losh of Newcastle, produced, and in September 1816 jointly patented, a series of' improvements in wheels, suspension, and--most important--the method by which the rails and "chairs" connected one piece of track to another. Stephenson's rails seem mundane next to better-known eureka moments, but as much as any other innovation of the day they underline the importance of such micro-inventions in the making of a revolution. For it was the rails that finally made the entire network of devices--engine, linkage, wheel, and track--work.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis added.)





March 3, 2011

France Lacked Good Patent Laws; Great French Inventors "Died Penniless"



(p. 367) If one secret to sustaining an inventive culture was making inventors into national heroes, it was a secret that didn't translate well into French. Between 1740 and 1780, the French inclination to reward inventors not by enforcing a natural right but by the grant of pensions and prizes resulted in the award of nearly 7 million livres--approximately $600 million today--to inventors of largely forgot-(p. 268)ten devices, but Claude-François Jouffroy d'Abbans (inventor of one of the first working steamboats), Barthélemy Thimonnier (creator of the first sewing machine), and Airné Argand (a partner of Boulton and friend of Watt whose oil lamp became the world's standard) all died penniless.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





February 27, 2011

Patent Importance Survives the Results of Moser's Worlds Fairs Data Analysis



(p. 264) Petra Moser, now a professor at MIT's Sloan School of Management, spent four years examining more than 15,000 different inventions exhibited at nineteenth-century worlds fairs, and their equivalents, and discovered a fact that seems at first glance to discredit the idea that patent protection was essential for innovation: Nations without patent laws were in many cases just as inventive as those with them. Or even more inventive; some of the nations best represented at those industrial fairs actively discouraged the patenting of inventions.

The reason seems to be that whether or not they enforced a patent law, smaller nations or domains, such as the Netherlands and Switzerland, were vulnerable to the theft of their innovations by competitors in larger nations. The bargain of patent protection runs two ways: The state, in return for making an idea public, offers legal recourse to its creator should someone within the state steal the idea. Since making one's invention public in a nation with patent protection offered protection against theft only up to its own borders, only a large nation offered a large enough market to make the deal a good one, and (in Moser's words) the small nations "would have been silly to patent [their] innovations."

This logic inhibited investment in entire categories of innovation. Those nations that relied on secrecy rather than patent tended to specialize in the sort of inventions that cannot be easily reverse--engineered, such as chemicals or dyes.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and bracketed word in original.)





February 26, 2011

How Bacardi Fought Predatory Taxation in Pre-Castro Cuba



BacardiAndTheLongFightForCubaBK2011-02-05.jpg











Source of book image: http://www.nytimes.com/2008/09/21/business/21shelf.html?_r=1





(p. W6) When it comes to chronicling the Bacardi rum dynasty, the best model may be "Buddenbrooks" or some other novelistic attempt to capture the experience of a family business trying to survive across generations. Tom Gjelten's "Bacardi and the Long Fight for Cuba" -- though fact-driven history and far more upbeat that Thomas Mann's tale of dynastic decline -- feels very much in this literary tradition.


. . .


Perhaps the most fascinating figure in the Bacardi tale is José Bosch, called Pepín, a young businessman who also married into the Bacardi family and was an early opponent of Gerardo Machado's corrupt rule in the 1920s. Machado made Bacardi, one of Cuba's most successful companies, a target of predatory taxation, but a proposed rum tax was more than the distiller could stand. Bacardi opened new facilities in Mexico and threatened to move its operations there if the tax was enacted. The Cuban legislature dropped the idea -- and Bacardi soon found itself with a Mexican distillery it didn't need, trying to sell a liquor to tequila- quaffing public that didn't want it.

Bosch was dispatched in 1933 to shut down the Mexican facility, but instead he saved it. "Noticing that Mexicans drank a lot of Coca-Cola," Mr. Gjelten writes, Bosch urged the company to promote Bacardi-and-Coke cocktails. Observing the rich tradition of Mexican handicrafts, he also suggested that the locals would be more inclined to drink rum if it was sold in the sort of wicker-covered jugs often used for it in Cuba. Sales in 1934 doubled.



For the full review, see:

ALVARO VARGAS LLOSA. "The Family Spirit." The Wall Street Journal (Fri., September 12, 2008): W6.

(Note: ellipsis added.)


The book being reviewed, is:

Gjelten, Tom. Bacardi and the Long Fight for Cuba: The Biography of a Cause. New York: Viking Penguin, 2008.





February 23, 2011

Chinese Encyclopedia Was Burned to Protect Monopolies Granted by Emperor



(p. 262) As with Tudor England, government monopoly of patronage meant control. Virtually all copies of the seventeenth--century Chinese encyclopedia, the T'ien Kung K'ai-wu or Exploitation of the Works of Nature, which included illustrations of everything from hydraulics to metallurgy, were destroyed because, according to Joseph Needham, much of the material touched on industries that had been granted monopoly status by the Qing emperors: "The absence of political competition did not mean that technological progress could not take place, but it did mean that one decision-(p. 263)maker [i.e. the Emperor] could deal it a mortal blow." It is therefore no surprise that a high percentage of both the inventions and inventors we associate with China from the time of the Han Dynasty to the Qings were government sponsored and employed.

Another liability of a strong central government is that it is, well, strong. Europe's fragmented system of sovereign states made it possible for innovative minds such as Paracelsus, Leibniz. Rousseau, and Voltaire to "shop" for more congenial places whenever they skated too close to heretical or otherwise challenging notions; in China, one had to travel a thousand miles to a place where the empire's writ ran not.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and bracketed words in original.)





February 22, 2011

Luther Burbank's Income Suffered Because His Inventions Could Not Be Patented



BurbankLuther2011-02-05.jpg












"Luther Burbank pollinating poppies in Santa Rosa, Calif." Source of book image: online version of the NYT review quoted and cited below.



(p. C4) There is a particular type of potato at the heart of Jane S. Smith's book about Luther Burbank, a man who described himself as an "evoluter of new plants." Ms. Smith nicknames that potato "the lucky spud." That turn of phrase is one of many reasons to appreciate "The Garden of Invention," her colorful, far-reaching book about the genetic, agricultural, economic and legal issues raised by Burbank's life and legend.


. . .


This book takes more than a passing interest in Burbank's income, insofar as it reflected his legal ability to protect his scientific advances. In his early professional years he grappled with the doctrine that held that while a gold mine was real property and a machine to extract gold was intellectual property, the actual mineral belonged to anyone who could find it; ditto with potatoes. Throughout his career, even as he developed friendships with tycoons like Ford and Thomas Edison, Burbank lived under constant financial pressure to keep creating new plant products. "His income was entirely dependent on his latest marvel," Ms. Smith writes

.

For the full review, see:

JANET MASLIN. "Books of The Times; The Curious Man Lucky Enough to Create 'the Lucky Spud'." The New York Times (Mon., May 4, 2009): C4.

(Note: ellipsis added.)

(Note: the online version of the article is dated May 3, 2009.)


The book being reviewed, is:

Smith, Jane S. The Garden of Invention: Luther Burbank and the Business of Breeding Plants. New York: The Penguin Press, 2009.





February 20, 2011

Did Bell, or Gray, Invent the Telephone?



TheTelephoneGambitBK2011-02-05.jpg













Source of book image: http://www.xconomy.com/wordpress/wp-content/images/2008/01/telephone-gambit.jpg




A great and important debate is occurring about the desirability of the patent system. Should it be abolished, or reformed? If The Telephone Gambit book is right, one of the spectacular failures of the system is in the awarding of a patent to Bell for the telephone.

That's a big "if": some of the reviewers on Amazon give reasons for doubting Shulman's story.

I hope to have time to look into this further.


(p. D10) It was a brilliant concept. But was it Bell's? What had happened during his trip to Washington that allowed Bell to abandon the blind alleys he had been exploring and to suddenly, not incrementally, find the technological solution?

The answer to that question is a tale involving high-powered Washington lawyers, political influence, a patent clerk with a booze problem, and improper access to Elisha Gray's patent filing, where Bell found the secret to making the telephone work. Mr. Shulman lays out the evidence -- documentary, scientific, chronological and psychological -- piece by damning piece. He shows most impressively how Bell's subsequent behavior and actions are entirely in keeping with those of a decent and honorable man having to live most of his long life (Bell died in 1924) with the knowledge that behind his fortune and his fame lay a single instance of brazen dishonesty, of intellectual theft.

"The Telephone Gambit" is solid history, and Seth Shulman makes it as much fun to read as an Agatha Christie whodunit by using the techniques of historiography the way Hercule Poirot used his "little gray cells." That's no small accomplishment.




For the full review, see:

JOHN STEELE GORDON. "False Claim, Future Fortune." The Wall Street Journal (Fri., JANUARY 16, 2008): D10.

(Note: ellipsis added.)


The book being reviewed, is:

Shulman, Seth. The Telephone Gambit: Chasing Alexander Graham Bell's Secret. hardback ed. New York: W. W. Norton & Company, 2008.





February 19, 2011

"A Great Artisan Can Make a Family Prosperous; A Great Inventor Can Enrich an Entire Nation"



(p. 247) We feel real poignancy when we recall the bucolic life (even if we do so through the soft focus of nostalgia) of a country weaver happy in his work skills and content with his life. But those skills, like those of a medieval goldsmith or an ancient carpenter, could not, by their very nature, reproduce themselves outside the closed community of the initiates. One lesson of the Luddite rebellion specifically, and the Industrial Revolution generally, is that maintaining the prosperity of those closed communities--their pride in workmanship as well as their economic well-being----can only be paid for by those outside the communities: by society at large. A great artisan can make a family prosperous; a great inventor can enrich an entire nation.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





February 17, 2011

Insider Training Increases the Efficiency of Markets



(p. W2) As argued forcefully by Henry Manne in his 1966 book "Insider Trading and the Stock Market," prohibitions on insider trading prevent asset prices from adjusting in this way. Mr. Manne, dean emeritus at George Mason University School of Law, pointed out that when insiders trade on their nonpublic, nonproprietary information, they cause asset prices to reflect that information sooner than otherwise and therefore prompt other market participants to make better decisions.

This achievement can have ramifications beyond a few percentage-point increases in productivity growth.

According to Mr. Manne, corporate scandals such as Enron and Global Crossing would occur much less frequently and impose fewer costs if the government didn't prohibit insider trading. As Mr. Manne said a few years ago in a radio interview, "I don't think the scandals would ever have erupted if we had allowed insider trading because there would be plenty of people in those companies who would know exactly what was going on, and who couldn't resist the temptation to get rich by trading on the information, and the stock market would have reflected those problems months and months earlier than they did under this cockamamie regulatory system we have."

Another potential benefit of lifting the ban on insider trading is explained by Harvard University economist Jeffrey Miron: "In a world with no ban, small investors might fear to trade individual stocks and would face a greater incentive to diversify; that is also a good thing."



For the full commentary, see:

DONALD J. BOUDREAUX. "Learning to Love Insider Trading; Here's a hot tip: Want to keep companies honest, make the markets work more efficiently and encourage investors to diversify? Let insiders buy and sell, argues Donald J. Boudreaux." The Wall Street Journal (Sat., OCTOBER 24, 2009): W1-W2.


The book mentioned is:

Manne, Henry. Insider Trading and the Stock Market. New York: The Free Press, 1966.





February 15, 2011

Luddism in 1811 England



(p. 243) The stockingers began in the town of Arnold, where weaving frames were being used to make cut-ups and, even worse, were being operated by weavers who had not yet completed the seven-year apprenticeship that the law required. They moved next to Nottingham and the weaver-heavy villages surrounding it, attacking virtually every night for weeks, a few dozen men carrying torches and using prybars and hammers to turn wooden frames--and any doors, walls, or windows that surrounded them--into kindling. None of the perpetrators were arrested, much less convicted and punished.

The attacks continued throughout the spring of' 1811, and after a brief summertime lull started up again in the fall, by which time nearly one thousand weaving frames had been destroyed (out of the 25.000 to 29,000 then in Nottingham, Leicestershire, and Derbyshire), resulting in damages of between £6,000 and £10.000. That November, a commander using the nom de sabotage of Ned Ludd (sometimes Lud)--the name was supposedly derived from an apprentice to a Leicester stockinger named Ned Ludham whose reaction to a reprimand was to hammer the nearest stocking frame to splinters--led a series of increasingly daring attacks throughout the Midlands. On November 13, a letter to the Home Office demanded action against the "2000 men, many of them armed, [who] were riotously traversing the County of Nottingham."

By December 1811, rioters appeared in the cotton manufacturing capital of Manchester, where Luddites smashed both weaving and spinning machinery. Because Manchester was further down the path to industrialization, and therefore housed such machines in large factories as opposed to small shops, the destruction demanded larger, and better organized, mobs.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and bracketed word in original.)





February 14, 2011

Salesforce.com Needed More than New Economy Cockiness to Succeed



BehindTheCloudBK2011-02-05.jpg











Source of book image: online version of the WSJ review quoted and cited below.







(p. A25) Mr. Benioff tells the story of his success in "Behind the Cloud," a triumphalist memoir and business self-help manual. He makes it clear that, when he was starting out, he followed the standard dot-com playbook: Get some high-profile tech-industry backers and mentors--Mr. Benioff's former boss, Oracle chief executive Larry Ellison, was one--create buzz and let the revenues flow in. Salesforce.com might have been launched with New Economy cockiness, but success followed for solid, old-fashioned reasons: The company's products filled a market gap.


For the full review, see:

JESSICA HODGSON. "Selling and Software; How a start-up found a new way to deliver computer products to salespeople." The Wall Street Journal (Thurs., DECEMBER 17, 2009): A25.

(Note: the online version of the article is dated DECEMBER 16, 2009.)


The book being reviewed, is:

Benioff, Marc. Behind the Cloud: The Untold Story of How Salesforce.Com Went from Idea to Billion-Dollar Company-and Revolutionized an Industry. San Francisco, CA: Jossey-Bass, 2009.





February 12, 2011

"Powerful Pressure for Scientists to Conform"



HypingHealthRisksBK2011-02-05.jpg













Source of book image: online version of the WSJ review quoted and cited below.



(p. A13) In "Hyping Health Risks," Geoffrey Kabat, an epidemiologist himself, shows how activists, regulators and scientists distort or magnify minuscule environmental risks. He duly notes the accomplishments of epidemiology, such as uncovering the risks of tobacco smoking and the dangers of exposure to vinyl chloride and asbestos. And he acknowledges that industry has attempted to manipulate science. But he is concerned about a less reported problem: "The highly charged climate surrounding environmental health risks can create powerful pressure for scientists to conform and to fall into line with a particular position."

Mr. Kabat looks at four claims -- those trying to link cancer to man-made chemicals, electromagnetic fields and radon and to link cancer and heart disease to passive smoking. In each, he finds more bias than biology -- until further research, years later, corrects exaggeration or error.


. . .


I know whereof Mr. Kabat speaks. In 1992, as the producer of a PBS program, I interviewed an epidemiologist who was on the EPA's passive-smoking scientific advisory board. He admitted to me that the EPA had put its thumb on the evidentiary scales to come to its conclusion. He had lent his name to this process because, he said, he wanted "to remain relevant to the policy process." Naturally, he didn't want to appear on TV contradicting the EPA.



For the full review, see:

RONALD BAILEY. "Bookshelf; Scared Senseless." The Wall Street Journal (Mon., AUGUST 11, 2008): A13.

(Note: ellipsis added.)

(Note: the first paragraph quoted above has slightly different wording in the online version than the print version; the second paragraph quoted is the same in both.)


The book under review is:

Kabat, Geoffrey C. Hyping Health Risks: Environmental Hazards in Daily Life and the Science of Epidemiology. New York: Columbia University Press, 2008.





February 11, 2011

Luddism in France



(p. 240) Not only was Richard Hargreaves's original spinningjenny destroyed in 1767, but so also was his new and improved version in 1769.

Nor was the phenomenon exclusively British. Machine breaking in France was at least as frequent. and probably even more consequential, though it can be hard to tease out whether the phenomenon contributed to, or was a symptom of, some of the uglier aspects of the French Revolution. Normandy in particular, which was not only close to England but the most "English" region of France, was the site of dozens of incidents in 1789 alone. In July, hundreds of spinnigjennys were destroyed, along with a French version of Arkwright's water frame. In October, an attorney in Rouen applauded the destruction of "the machines used in cotton-spinning that have deprived many workers of their jobs." In Troyes, spinners rioted, killing the mayor and mutilating his body because he had favored machines." The carders of Lille destroyed machines in 1790; in 1791, the spinning jennies of Roanne were hacked up and burned. By 1796, administrators in the Department of the Somme were complaining, it turns out presciently, that the prejudice against machinery has led the commercial classes . . . to abandon their interest in the cotton industry.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis in original.)





February 7, 2011

After a Series of Anonymous Threats, Cartwright Power Looms Were Burned Down



(p. 239) Cartwright constructed twenty looms using his design and put them to work in a weaving "shed" in Doncaster. He further agreed to license the design to a cotton manufacturer named Robert Grimshaw, who started building five hundred Cartwright looms at a new mill in Manchester in the spring of 1792. By summertime, only a few dozen had been built and installed, but that was enough to provoke Manchester's weavers, who accurately saw the threat they represented. Whether their anger flamed hot enough to burn down Grimshaw's mill remains unknown, but something certainly did: In March 1792, after a series of anonymous threats, the mill was destroyed.

Cartwright's power looms were not the first textile machines to be attacked, and they would not be the last.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





February 6, 2011

Ronald Reagan Would Be 100 Today; He Got the Job Done



A couple of years ago, I read a collection of recollections of Ronald Reagan by some of those who had known him. I jotted down a few notes on what was important in the collection:

Mike Wallace's entry is a good one.  He has a telling exchange with Reagan where Reagan says he is not a politician.  Wallace is flabbergasted.  He says to the effect:  Mr. Reagan, how can you say you are not a politician when you are planning to run for the highest political office in the land?

Reagan's response is that he's not seeking the office for glory or self-aggrandizement; rather he's seeking it because there's a job that needs to get done.

In a later entry, someone (Cap Weinberger, maybe?) recounts an episode while Governor where someone warns Reagan that if he vetoes a certain bill (on teacher pay, maybe?) he will not get re-elected. Reagan's response was: 'I didn't come here to get re-elected.'

Years ago I remember reading in a newspaper somewhere that an ordinary citizen saw Reagan in a park, at a time well after his announcement about having Alzheimer's.  The citizen went up to Reagan and thanked him for what he had done to preserve freedom.  Reagan smiled and responded 'that is my job.'


The book of recollections is:

Hannaford, Peter, ed. Recollections of Reagan: A Portrait of Ronald Reagan: William Morrow & Company, 1997.





January 30, 2011

Carlyle (and Rosen) on Arkwright



(p. 236) The greatest hero-worshipper of them all, Thomas Carlyle. described Arkwright as

A plain, almost gross, bag-checked, potbellied, much enduring, much inventing man and barber... . French Revolutions were a-brewing: to resist the same in any measure, imperial Kaisers were impotent without the cotton and cloth of England, and it was this man that had to give England the power of cotton.... It is said ideas produce revolutions, and truly they do; not spiritual ideas only, but even mechanical. In this clanging clashing universal Sword-dance which the European world now dances for the last half-century, Voltaire is but one choragus [leader of a movement, from the old Greek word for the sponsor of a chorus] where Richard Arkwright is another.

. . .


Arkwright was not a great inven-(p. 237)tor, but he was a visionary, who saw, better than any man alive, how to convert useful knowledge into cotton apparel and ultimately into wealth: for himself, and for Britain.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: internal ellipses in original; ellipsis between paragraphs added.)





January 26, 2011

Patents Needed to Provide Money for "the Many Fruitless Experiments"



(p. 233) . . . ; together, Watt and Arkwright wrote a manuscript entitled "Heads of a Bill to explain and amend the laws relative to Letters Patent and grants of privileges for new inventions," essentially a reworking of Coke's Statute of 1623 that had created England's first patent law. In addition to its policy prescriptions, which were largely an unsuccessful argument against the requirement that patent applications be (p. 235) as specific as possible, the manuscript offered a remarkable insight into Watt's perspective on the life of the inventor, who should, in Watt's own (perhaps inadvertently revealing) words, "be considered an Infant, who cannot guard his own Rights":

An engineer's life without patent is not worthwhile . . . few men of ingenuity make fortunes without suffering to think seriously whether the article he manufactures might, or might not, be Improved. The man of ingenuity in order to succeed must seclude himself from Society, he must devote the whole powers of his mind to that one object, he must persevere in spite of the many fruitless experiments he makes, and he must apply money to the expenses of these experiments, which strict Prudence would dedicate to other purposes. By seclusion from the world he becomes ignorant of its manners, and unable to grapple with the more artful tradesman, who has applied the powers of his mind, not to the improvement of the commodity he deals in, but to the means of buying cheap and selling dear, or to the still less laudable purpose of oppressing such ingenious workmen as their ill fate may have thrown into his power.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: the second ellipsis and the italics in original; the first ellipsis added.)





January 22, 2011

When Yarn Was Scarce There Was Less Incentive to Develop Power Looms



(p. 223) Though power looms had existed, at least in concept, for centuries (under his sketch for one, Leonardo himself wrote, "This is second only to the printing press in importance; no less useful in its practical application; a lucrative, beautiful, and subtle invention"), there was little interest in them so long as virtually all the available yarn could be turned into cloth in cottages. This fact reinforced the weaver's independence; but it also encouraged another group of innovative types who were getting ready to put spinning itself on an industrial footing.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





January 18, 2011

Artisan's Skills Were Still Required for Kay's Flying Shuttle



(p. 223) Kay's flying shuttle made it possible for weavers to produce a wider product, which they called "broadloom," but doing so was demanding. Weaving requires that the weft threads be under constant tension in order to make certain that each one is precisely the same length as its predecessor; slack is the enemy of a properly woven cloth. Using a flying shuttle to carry weft threads through the warp made it possible to weave a far wider bolt of cloth, but the required momentum introduced the possibility of a rebound, and thereby a slack thread. Kay's invention still needed a skilled artisan to catch the shuttle and so avoid even the slightest bit of bounce when it was thrown across the loom.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





January 14, 2011

Taking Away Patents Would Be "Cutting Off the Hopes of Ingenious Men"



(p. 208) For Watt, the theft (as he saw it) of his work was a deeply personal violation. In (p. 209) 1790, just before realizing the extent of what he perceived as Hornblower's theft of his own work he wrote,

if patentees are to be regarded by the public, as . . . monopolists, and their patents considered as nuisances & encroachments on the natural liberties of his Majesty's other subjects, wou'd it not be just to make a law at once, taking away the power of granting patents for new inventions & by cutting off' the hopes of ingenious men oblige them either to go on in the way of their fathers & not spend their time which would be devoted to the encrease [sic] of their own fortunes in making improvements for an ungrateful public, or else to emigrate to some other Country that will afford to their inventions the protections they may merit?


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and ellipsis in original.)





January 12, 2011

Mutual Benefits from Ending Labor Market Mismatch



(p.6) This is the Mark Twain people love to quote ("Clothes make the man. Naked people have little or no influence in society." "A man who carries a cat by the tail learns something he can learn in no other way"), and whenever he hits his stride in the "Autobiography," you feel happy for him -- e.g., writing about Virginia City, Nev., in 1863:

"I secured a place in a nearby quartz (p. 7) mill to screen sand with a long-handled shovel. I hate a long-handled shovel. I never could learn to swing it properly. As often as any other way the sand didn't reach the screen at all, but went over my head and down my back, inside of my clothes. It was the most detestable work I have ever engaged in, but it paid ten dollars a week and board -- and the board was worthwhile, because it consisted not only of bacon, beans, coffee, bread and molasses, but we had stewed dried apples every day in the week just the same as if it were Sunday. But this palatial life, this gross and luxurious life, had to come to an end, and there were two sufficient reasons for it. On my side, I could not endure the heavy labor; and on the Company's side, they did not feel justified in paying me to shovel sand down my back; so I was discharged just at the moment that I was going to resign."



For the full review, see:

GARRISON KEILLOR. "Riverboat Rambler." The New York Times Book Review (Sun., December 19, 2010): 1, 6-7.

(Note: the online version of the review has the date December 16, 2010, and had the title "Mark Twain's Riverboat Ramblings." )



The book under review, is:

Smith, Harriet Elinor, ed. Autobiography of Mark Twain, Vol. 1. Berkeley: University of California Press, 2010.






January 11, 2011

The Fragility of China's Red Capitalism



RedCapitalismBK2011-01-04.jpg













Source of book image: http://media.wiley.com/product_data/coverImage300/63/04708258/0470825863.jpg




Red Capitalism is scheduled for release on February 15, 2011. I have not read it, but from early reports it would appear to be a credible account that updates and supports concerns about China's economy expressed by David Smick (The World Is Curved) and others.


The reference is:

Walter, Carl E., and Fraser J. T. Howie. Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise. Hoboken, NJ: Wiley, 2011.


The Smick book mentioned, is:

Smick, David M. The World Is Curved: Hidden Dangers to the Global Economy. New York: Portfolio Hardcover, 2008.





January 10, 2011

London's Albion Mills Was "Likely" Destroyed By Millers' Arson



(p. 187) The Albion Mills, as it would be called, was built on a scale hitherto unimagined. The largest flour mill in London in 1783 used The Albion Mills, as it would be called, was built on a scale hitherto unimagined. The largest flour mill in London in 1783 used four pairs of grinding stones; Albion was to have thirty, driven by three steam engines, each with a 34-inch cylinder. Within months after its completion, in 1786, those engines were driving mills that produced six thousand bushels of flour every week--which both fed a lot of Londoners and angered a lot of millers.

The Albion Mills was London's first factory, and its first great symbol of industrialization; its construction inaugurated not only great age of steam-driven factories, but also the doomed though poignant resistance to them. That resistance took the shape of direct action--no one knows how the fire that destroyed the Albion Mills in 1791 began, but arson by millers threatened by its success seems likely-- . . .



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis added.)





January 6, 2011

Supervising a Talented Inventor



(p. 180) Anyone who has ever supervised a talented subordinate with a tendency to set his own priorities will find Watt's letters familiar: "I wish William could be brought to do as we do, to mind the business in hand, and let such as Symington [William Symington, the builder of the Charlotte Dundas, one of the world's first steam-engine boats] and Sadler [James Sadler, balloonist and inventor of a table steam engine] throw away their time and money, hunting shadows."


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics and bracketed words in original.)





January 4, 2011

Bronson Alcott's Environmentalist Utopia Failed from Too Much Verbal Manure and Too Little Real Manure



(p. 21) Like many educational theorists, Bronson Alcott found his own children hard to manage. And, again like many visionaries, he also found it hard to hold down a job. As a result, the family moved 29 times in as many years. In 1843 Bronson helped found Fruitlands, a utopian community 15 miles west of Boston. Members of the commune, which numbered 13 people at its height, advocated abolitionism, environmentalism, feminism and anarchism, forswearing meat, alcohol, neckcloths, haircuts, cotton (because it was grown by slaves) and leather (because it was harvested from animals). Their rejection of one more animal product, manure, helps explain why Fruitlands failed after only eight months: this new Eden remained barren in the absence of fertilizer.

In "Transcendental Wild Oats," a satiric memoir Louisa based on the diary she kept at Fruitlands, one character asks "Are there any beasts of burden on the place?" and is answered, "Only one woman!" In real life, the expulsion of the lone female convert, probably for helping herself to some fish on the sly, left Louisa's mother, Abigail, to do all the women's work and much of the men's -- especially since Bronson and his sidekick, Charles Lane, made a habit of disappearing on recruiting trips at the very moment farm labor was required.



For the full review, see:

LEAH PRICE. "American Girl." The New York Times Book Review (Sun., December 12, 2010): 21.

(Note: the online version of the review is dated December 10, 2010.)



The books under review are:

Cheever, Susan. Louisa May Alcott: A Personal Biography. New York: Simon & Schuster, 2010.

Francis, Richard. Fruitlands: The Alcott Family and Their Search for Utopia. New Haven, CT: Yale University Press, 2010.





January 2, 2011

Suppression of Cistercians Did Not Delay Industrial Revolution



(p. 138) . . . , the Cistercians' proven ability to produce substantial quantities of high-quality iron not only fails to prove that they were about to ignite an Industrial Revolution when they were suppressed in the early sixteenth century, it actually demonstrates the opposite--and for two reasons. First, the iron of Laskill and Fontenoy was evidence not of industrialization, but of industriousness. The Cistercians owed their factories' efficiency to their disciplined and cheap workforce rather than any technological innovation; there's nothing like a monastic brotherhood that labors twelve hours a day for bread and water to keep costs down. The sixteenth-century monks were still using thirteenth-century technology, and they neither embraced, nor contributed to, the Scientific Revolution of Galileo and Descartes.

The second reason is even more telling: For centuries, the Cistercian monasteries (and other ironmakers; the Cistercians were leaders of medieval iron manufacturing, but they scarcely monopolized it) had been able to supply all the high-quality iron that anyone could use, but all that iron still failed to ignite a technological revolution. Until something happened to increase demand for iron, smelters and forges, like the waterpower that drove them, sounded a lot like one hand clapping. It would sound like nothing else for--what else?--two hundred years.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis added.)





December 29, 2010

"A Nation's Heroes Reveal Its Ideals"



(p. 133) Robert and John Hart were two Glasgow engineers and merchants who regarded James Watt with the sort of awe usually reserved for pop musicians, film stars, or star athletes. Or even more: They regarded him as "the greatest and most useful man who ever lived." . . .


. . .


(p. 134) . . . the hero worship of the brothers Hart is more enlightening about the explosion of inventive activity that started in eighteenth-century Britain than their reminiscences. For virtually all of human history, statues had been built to honor kings, solders, and religious figures; the Harts lived in the first era that built them to honor builders and inventors. James Watt was an inventor inspired in every way possible, right down to the neurons in his Scottish skull; but he was also, and just as significantly, the inspiration for thousands of other inventors, during his lifetime and beyond. The inscription on the statue of Watt that stood in Westminster Abbey from 125 until it was moved in 1960 reminded visitors that it was made "Not to perpetuate a name which must endure while the peaceful arts flourish, but to shew that mankind have learned to know those who best deserve their gratitude" (emphasis added).

A nation's heroes reveal its ideals, and the Watt memorial carries an impressive weight of symbolism. However, it must be said that the statue, sculpted by Sir Francis Chantrey in marble, might bear that weight more appropriately if it had been made out of the trademark material of the Industrial Revolution: iron.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipses added; italics in original.)





December 25, 2010

"Inventors Fear Wrong Answers Less than Noninventors"



(p. 123) [A] . . . study . . . conducted in 1962, compared the results of psychometric tests given to inventors and noninventors (the former defined by behaviors such as application for or receipt of a patent) in similar professions, such as engineers, chemists, architects, psychologists, and science teachers. Some of the results (p. 124) were about what one might expect: inventors are significantly more thing-oriented than people-oriented, more detail-oriented than holistic. They are also likely to come from poorer families than noninventors in the same professions. . . .

. . . , the 1962 study also revealed that independent inventors scored far lower on general intelligence tests than did research scientists, architects, or even graduate students. There's less to this than meets the eye: The intelligence test that was given to the subjects subtracted wrong answers from right answers, and though the inventors consistently got as many answers correct as did the research scientists, they answered far more questions, thereby incurring a ton of deductions. While the study was too small a sample to prove that inventors fear wrong answers less than noninventors, it suggested just that. In the words of the study's authors, "The more inventive an independent inventor is, the more disposed he will be--and this indeed to a marked degree--to try anything that might work."



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: word in brackets and ellipses added.)





December 21, 2010

The Hungry Innovate Because They Have Less to Lose



(p. 124) . . . , the eighteenth-century Swiss mathematician Daniel Bernoulli,'' who coined the term "human capital," explained why innovation has always been a more attractive occupation to have-nots than to haves: not only do small successes seem larger, but they have considerably less to lose.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis added.)





December 17, 2010

Financial Gain an Important Motive for Invention



(p. 121) In 1930, Joseph Rossman, who had served for decades as an examiner in the U.S. Patent Office, polled more than seven hundred patentees. producing a remarkable picture of the mind of the inventor. Some of the results were predictable; the three biggest motivators were "love of inventing," "desire to improve." and "financial gain," the ranking for each of which was statistically identical. and each at least twice as important as those appearing (p. 122) down the list, such as "desire to achieve," "prestige," or "altruism" (and certainly not the old saw, "laziness," which was named roughly one-thirtieth as frequently as "financial gain"). A century after Rocket, the world of technology had changed immensely: electric power, automobiles, telephones. But the motivations of individual inventors were indistinguishable from those inaugurated by the Industrial Revolution.


. . .


In the same vein, Rossman's survey revealed that the greatest obstacle perceived by his patentee universe was not lack of knowledge, legal difficulties, lack of time, or even prejudice against the innovation under consideration. Overwhelmingly, the largest obstacle faced by early twentieth-century inventors (and, almost certainly, their ancestors in the eighteenth century) was "lack of capital." Inventors need investors.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: ellipsis added.)





December 16, 2010

Ridley Debunks Gates' Aid to Africa; Gates Responds; Ridley Responds to the Response



GatesRiidleyArmWrestling2010-12-15.jpgBill Gates and Matt Ridley arm wrestle. Source of image: online version of the Gates WSJ commentary cited below.



In a few weeks I will comment at length on Matt Ridley's wonderful recent book The Rational Optimist. It delightfully debunks much that deserves debunking, although I think it wrong on its central claim that no rewards are needed for innovation.

Part of what Ridley debunks is the case for aid to Africa. As one of the aid givers, Bill Gates is not fond of being debunked.


Gates responds in:

BILL GATES. "Africa Needs Aid, Not Flawed Theories." The Wall Street Journal (Sat., NOVEMBER 27, 2010): C1-C2.

(Note: the online version of the Gates commentary is dated NOVEMBER 26, 2010.)


Ridley responds to Gates' response in:

MATT RIDLEY. "Africa Needs Growth, Not Pity and Big Plans." The Wall Street Journal (Sat., NOVEMBER 27, 2010): C1-C2.

(Note: the online version of the Ridley commentary has the same date as the print version.)


Ridley's book is:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





December 13, 2010

"The Most Important Invention of the Industrial Revolution Was Invention Itself"



(p. 103) Alfred North Whitehead famously wrote that the most important invention of the Industrial Revolution was invention itself.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





December 9, 2010

Science Can Contribute "Diligent Experimental Habits" to Technology



(p. 101) Nothing is more common in the history of science than independent discovery of the same phenomenon, unless it is a fight over priority. To this day, historians debate how much prior awareness of the theory of latent heat was in Watt's possession, but they miss Black's real contribution, which anyone can see by examining the columns of neat script that attest to Watt's careful recording of experimental results. Watt didn't discover the existence of latent heat from Black, at least not directly; but he rediscovered it entirely through exposure to the diligent experimental habits of professors such as Black, John Robison, and Robert Dick.


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





December 5, 2010

A Key to Scientific Truth: Nullius in Verba ("On No One's Word")



(p. 68) . . . scientific understanding didn't progress by looking for truth; it did so by looking for mistakes.

This was new. In the cartoon version of the Scientific Revolution, science made its great advances in opposition to a heavy-handed Roman Catholic Church; but an even larger obstacle to progress in the understanding and manipulation of nature was the belief that Aristotle had already figured out all of physics and had observed all that biology had to offer, or that Galen was the last word in medicine. By this standard, the real revolutionary manifesto of the day was written not by Descartes, or Galileo, but by the seventeenth-century Italian poet and physician Francesco Redi, in his Experiments on the Generation of Insects, who wrote (as one of a hundred examples), "Aristotle asserts that cabbages produce caterpillars daily, but I have not been able to witness this remarkable reproduction, though I have seen many eggs laid by butterflies on the cabbage-stalks. . . ." Not for nothing was the motto of the Royal Society nullius in verba: "on no one's word."



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: first ellipsis added; italics and second ellipsis, in original.)





December 1, 2010

"The Steam Engine Has Done Much More for Science than Science Has Done for the Steam Engine"



(p. 67) The great scientist and engineer William Thomson, Lord Kelvin, made his reputation on discoveries in basic physics. electricity, and thermodynamics, but he may be remembered just as well for his talent for aphorism. Among the best known of Kelvin's quotations is the assertion that "all science is either physics or stamp collecting (while one probably best forgotten is the confident "heavier-than-air flying machines are impossible"). But the most relevant for a history of the Industrial Revolution is this: "the steam engine has done much more for science than science has done for the steam engine."


Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.





November 28, 2010

Whittle "Struggled for Years to Get Funding and Time to Pursue His Idea"



DeHavilandComet2010-11-14.jpg"When Britain Ruled The Skies: A De Havilland Comet under construction in Belfast in 1954." Source of caption and photo: online version of the WSJ review quoted and cited below.


(p. C8) Frank Whittle, the brilliant British military pilot and engineer who began patenting jet designs in 1930, struggled for years to get funding and time to pursue his idea. Even after World War II, when a competing Nazi design showed what fighter jets could achieve in battle, U.S. airlines were slow to see jets' potential for passenger travel.

It took another Brit, airplane designer Geoffrey de Havilland, to awaken postwar America's aviation behemoths. While Lockheed and Douglas were still churning out rumbling, low-flying propeller planes, De Havilland's jet-powered Comet began breaking records in 1952. Only after seeing Comets scorch the stratosphere at 500 miles an hour did Howard Hughes want jetliners for TWA and Juan Trippe get interested for Pan Am.

Among American plane makers, it was a military contractor that had struggled in the prewar passenger-plane market--Boeing--that first took up the jetliner challenge. In retrospect, the outcome seems obvious. The Boeing 707 inspired the term "jet set." Boeing's iconic 747 "Jumbo Jet" opened jet-setting to the masses.

But in 1952, that outcome was far from obvious. Mr. Verhovek zeroes in on the mid-1950s, when Comets first seemed to own the world and then started plunging from the sky in pieces. The Comet's fatal design flaw--the result of an insufficient appreciation of the danger of metal fatigue--holds resonance today as both Boeing and Airbus struggle to master the next generation of jetliner materials, composites of carbon fiber and plastic.


. . .


Although "Jet Age" inevitably centers on technology, Mr. Verhovek wisely focuses as well on the outsize personalities behind world-changing innovations. There's Mr. De Havilland, a manic depressive who was so dedicated to aviation that he kept going after two of his three sons died testing his planes. Mr. Whittle, we learn, sniffed Benzedrine to stay awake, popped tranquilizers to sleep and shriveled to just 127 pounds while developing the jet engine. And Boeing chief executive Bill Allen, a meticulous lawyer, bet the company on passenger jets when not a single U.S. airline wanted one.




For the full review, see:

DANIEL MICHAELS. "Shrinking the World; How jetliners commercialized air travel--stewardesses and all." The Wall Street Journal (Sat., October 9, 2010): C8.

(Note: ellipsis added.)


The book under review is:

Verhovek, Sam Howe. Jet Age: The Comet, the 707, and the Race to Shrink the World. New York: Avery, 2010.





November 27, 2010

Coke's Patent Law Motivated by Belief that Creative Craftsmen Were Source of Britain's Prosperity



William Rosen discusses the genesis and significance of the world's first patent law:


(p. 52) The Statute became law in 1624. The immediate impact was barely noticeable, like a pebble rolling down a gradual slope at the top of a snow-covered mountain. For decades, fewer than six patents were awarded annually, though still more in Britain than anywhere else. It was seventy-five years after the Statute was first drafted, on Monday, July 25, 1698, before an anonymous clerk in the employ of the Great Seal Patent Office on Southampton Row, three blocks from the present--day site of the British Museum, granted patent number 356: Thomas Savery's "new Invention for Raiseing of Water and occasioning Motion to all Sorts of Mill Work by the lmpellent Force of Fire."

Both the case law and the legislation under which the application was granted had been written by Edward Coke. Both were imperfect, as indeed was Savery's own engine. The law was vague enough (and Savery's grant wide-ranging enough; it essentially covered all ways for "Raiseing of Water" by fire) that Thomas Newcomen was compelled to form a partnership with a man whose machine scarcely resembled his own. But it is not too much to claim that Coke's pen had as decisive an impact on the evolution of steam power as any of Newcomen's tools. Though he spent most of his life as something of a sycophant to Elizabeth and James, Coke's philosophical and temperamental affinity for ordinary Englishmen, particularly the nation's artisans, compelled him to act, time and again, in their interests even when, as with his advocacy of the 1628 Petition of Right (an inspiration for the U.S. Bill of Rights) it landed him in the King's prisons. He became the greatest advocate for England's craftsmen, secure in the belief that they, not her landed gentry or her merchants, were the nation's source of prosperity. By understanding that it was England's duty, and--perhaps even more important--in England's interest, to promote the creative labors of her creative laborers, he anticipated an economic philosophy far more modern than he probably understood, and if he grew rich in the service of the nation, he also, with his creation of the world's first durable patent law, returned the favor.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics in original.)





November 23, 2010

When Inventors Could Get Patents that Were Durable and Enforceable, "the World Started to Change"



(p. 50) . . . Coke, who had . . . been made Lord Chief Justice of' England, drafted the 1623 "Act concerning Monopolies and Dispensations with penall Lawes and the Forfeyture thereof," or, as it has become known, the Statute on Monopolies. The Act was designed to promote the interests of artisans, and eliminate all traces of monopolies.

With a single, and critical, exception. Section 6 of the Statute, which forbade every other form of monopoly, carved out one area in which an exclusive franchise could still be granted: Patents could still be awarded to the person who introduced the invention to the realm--to the "first and true inventor."

This was a very big deal indeed, though not because it represented the first time inventors received patents. The Venetian Republic was offering some form of patent protection by 1471, and in 1593, the Netherlands' States-General awarded a patent to Mathys Siverts, for a new (and unnamed) navigational instrument. And, of course, Englishmen like John of Utynam had been receiving patents for inventions ever since Henry VI. The difference between Coke's statute and the customs in place before and elsewhere is that it was a law, with all that implied for its durability and its enforceability. Once only inventors could receive patents, the world started to change.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics in original; ellipses added.)





November 22, 2010

Ice Entrepreneur Gorrie Died Dispirited for Lack of Funds



ConnectionsBK.jpg



















Source of book image:
http://ecx.images-amazon.com/images/I/51E2APGW55L._SS500_.jpg



(p. 241) In May of the following year [i.e., in May 1851] Gorrie obtained a patent for the first ice-making machine.


. . .


But he was unable to find adequate backing, and in 1855 he died, a broken and dispirited man.



Source:

Burke, James. Connections. New York, NY: Little, Brown, and Co., 1978.

(Note: ellipsis and bracketed information added.)





November 20, 2010

Capitalism's Market Entrepreneurs Benefit the Common Man



VanderbiltFiskCartoon2010-11-14.jpg"Rails to riches: An 1870 cartoon depicting James Fisk's attempt to stop Cornelius Vanderbilt from gaining control of the Erie Railroad Company." Source of caption and cartoon: online version of the WSJ article quoted and cited below.


I have read H.W. Brands' Masters of Enterprise book and found that it contained some interesting anecdotes, but not very insightful interpretation. From Amity Shlaes' uswdul review quoted below, I would expect the same from Brands' most recent book.


(p. C7) Mr. Brands laments that capitalism's triumph in the late 19th century created a disparity between the "wealthy class" and the common man that dwarfs any difference of income in our modern distribution tables. But this pitting of capitalism against democracy will not hold. When the word "class" crops up in economic discussions, watch out: it implies a perception of society held in thrall to a static economy of rigid social tiers. Capitalism might indeed preclude democracy if capitalism meant that rich people really were a permanent class, always able to keep the money they amass and collect an ever greater share. But Americans are an unruly bunch and do not stay in their classes. The lesson of the late 19th century is that genuine capitalism is a force of creative destruction, just as Joseph Schumpeter later recognized. Snapshots of rich versus poor cannot capture the more important dynamic, which occurs over time.

One capitalist idea (the railroad, say) brutally supplants another (the shipping canal). Within a few generations--and in thoroughly democratic fashion--this supplanting knocks some families out of the top tier and elevates others to it. Some poor families vault to the middle class, others drop out. If Mr. Brands were right, and the "triumph of capitalism" had deadened democracy and created a permanent overclass, Forbes's 2010 list of billionaires would today be populated by Rockefellers, Morgans and Carnegies. The main legacy of titans, former or current, is that the innovations they support will produce social benefits, from the steel-making to the Internet.

The second failing of "Colossus" is its perpetuation of the robber-baron myth. Years ago, historian Burton Folsom noted the difference between what he labeled political entrepreneurs and market entrepreneurs. The political entrepreneur tends to compete over finite assets--or even to steal them--and therefore deserves the "robber baron" moniker. An example that Mr. Folsom provided: the ferry magnate Robert Fulton, who operated successfully on the Hudson thanks to a 30-year exclusive concession from the New York state legislature. Russia's petrocrats nowadays enjoy similar protections. Neither Fulton nor the petrocrats qualify as true capitalists.

Market entrepreneurs, by contrast, vanquish the competition by overtaking it. On some days Cornelius Vanderbilt was a political entrepreneur--perhaps when he ruined those traitorous partners, for instance. But most days Vanderbilt typified the market entrepreneur, ruining Fulton's monopoly in the 1820s with lower fares, the innovative and cost-saving tubular boiler and a splendid advertising logo: "New Jersey Must Be Free." With market entrepreneurship, a third party also wins: the consumer. Market entrepreneurs are not true robbers, for their ruining serves the common good.



For the full review, see:

AMITY SHLAES. "An Age of Creative Destruction." The Wall Street Journal (Sat., October 16, 2010): C7.

(Note: the online version of the article is dated October 29 (sic), 2010.)


The book under critical review by Shlaes:

Brands, H.W. American Colossus: The Triumph of Capitalism, 1865-1900. New York: Doubleday, 2010.


The Folsom book rightly praised in passing by Shlaes is:

Folsom, Burton W. The Myth of the Robber Barons. 4th ed: Young America's Foundation, 2003.





November 19, 2010

Invention Aided By the Intelligent Hand and Spatial Intelligence



(p. 36) For centuries, certainly ever since Immanuel Kant called the hand the window on the mind," philosophers have been pondering the very complex way in which the human hand is related to the human mind. Modern neuroscience and evolutionary biology have confirmed the existence of what the Scottish phys