Month: July 2021

Chinese Communists Arrest Many Uyghur Muslim Entrepreneurs

(p. A7) In the summer of 2018, Sadir Eli, a Uyghur businessman, was in high spirits. His real-estate firm was pulling in strong profits, and he told his daughter he would buy a house for her in Massachusetts.

Then, Mr. Eli was accused of being a separatist and disappeared into the black box of China’s prison system in the northwest Xinjiang region.

“He did not engage in politics,” said Maria Mohammad, who last heard from her husband in June 2018, shortly before he was detained. Instead, she believes, Mr. Eli was targeted in part because he was a rich businessman, giving him influence that the authorities viewed as a threat.

The Xinjiang government didn’t respond to a request for comment.

Mr. Eli’s fate brings to life an overlooked element of China’s suppression of ethnic minorities in Xinjiang: the arrests of elite Uyghur business owners whose wealth and commercial interests enabled them to act as a bridge between Chinese authorities and Uyghur civil society. Some scholars saw them as helping narrow the economic gap between China’s Han majority and Xinjiang’s mostly Muslim ethnic minorities—a disparity that has fueled tensions in the strategically vital but fractious northwestern region.

The predecessor of Chinese leader Xi Jinping had envisioned economic development as the “foundation to solving all problems” in Xinjiang, a view more or less held by Beijing for more than a decade. But under Mr. Xi’s drive for national unity and assimilation, Chinese authorities have changed tack, making security and social control the region’s top priorities.

. . .

Nearly one-fifth of 4,572 people tracked in a database of individuals who have disappeared into Xinjiang’s internment camps and prisons made their livings in private business, according to nonprofit Uyghur Hjelp. The research and advocacy group, which shared its data with The Wall Street Journal, compiled the information through interviews with relatives and friends.

For the full story, see:

Eva Xiao. “Crackdown Hits Uyghur Entrepreneurs.” The Wall Street Journal (Wednesday, July 14, 2021): A7.

(Note: ellipsis added.)

(Note: the online version of the story was updated July 13, 2021, and has the title “China Locks Up Uyghur Businessmen; ‘In Their Eyes, We Are All Guilty’.”)

California Regulators Banned Angela Marsden’s Customers from Eating Outside, but Allowed Next Door “Essential” TV Comedy Workers to Eat Outside


The news report above was posted to YouTube by ABC channel 7 in Los Angeles on Dec. 5, 2020.

(p. 4) For more than a week, tensions have flared between Los Angeles restaurant owners and politicians over the county’s ban on outdoor dining, which health officials say is necessary to slow the surging pandemic — and restaurateurs say is destroying their livelihoods.

The controversy came to a head on Saturday when a restaurant owner shared a video on social media showing tents, tables and chairs set up as a catering station for a film crew — just feet away from her eatery’s similar outdoor dining space, which has sat empty since the restriction went into effect late last month.

“Tell me that this is dangerous, but right next to me — as a slap in my face — that’s safe?” Angela Marsden, who owns the restaurant, Pineapple Hill Saloon & Grill, said as the video panned from her outdoor dining space to the film crew’s catering site.

Ms. Marsden had already organized a protest against the outdoor dining ban before discovering the film tents. On Saturday, she and others gathered outside County Supervisor Sheila Kuehl’s house, saying the government’s uneven application of the rules was crushing small businesses.

. . .

The catering site was for a crew filming “Good Girls,” a comedy television show that airs on NBC, according to Philip Sokoloski, a spokesman for FilmLA, which helps Los Angeles manage film permits. Mr. Sokoloski said the catering site and the film location nearby were both authorized under a permit issued by the city.

. . .

California has declared entertainment industry workers essential, and in Los Angeles County they must follow strict guidelines such as eating in staggered shifts or in an area large enough to stay six feet apart.

Ms. Marsden said in an interview that she saw two people eating without masks at the tables when she went to her restaurant on Friday to pick up paychecks for her employees and supplies for the protest.

. . .

She said she had worked hard to make her outdoor patio compliant with the previous guidelines for outdoor dining before it, too, was banned.

“You name it, we did it,” she said.

For the full story, see:

Giulia McDonnell Nieto del Rio and Nicholas Bogel-Burroughs. “Restaurant Owners See Cruel Disparity in Los Angeles’s Outdoor Dining Ban.” The New York Times, First Section (Sunday, December 6, 2020): 4.

(Note: ellipses added.)

(Note: the online version of the story was updated June 4, 2021 [sic], and has the title “She Couldn’t Open for Outdoor Dining. The Film Crew Next Door Could.”)

Entrepreneurs Can Solve Problems Outside of Silicon Valley

(p. A15) Zionsville, Ind., a town of about 30,000, is a few hours south of Flint, Mich., by car. So when evidence emerged in 2014 that Flint’s water supply was dangerously contaminated, a Zionsville business executive, Megan Glover, began looking into ways to test the water coming from her own family’s tap. What she uncovered surprised her—not that the local supply was contaminated, but that a testing kit typically cost $3,000, an exorbitant amount most families in her neighborhood would never consider. So Ms. Glover did the most American thing possible: She researched the issue, developed a more affordable alternative, founded a company, sought out investors (my venture firm among them) and emerged as CEO of 120Water, a successful enterprise that now helps monitor the quality of the nation’s water supply. (Zionsville’s water turned out to be clean.)

The basic arc of Ms. Glover’s story—identifying a pain point, then creating a venture to provide a solution—is common in the nation’s premier tech hubs. That is largely because the talent and capital required to build a successful venture are widely available to entrepreneurs in Silicon Valley, New York and Boston.

What makes Ms. Glover’s story remarkable is that she, like a burgeoning community of other tech entrepreneurs around the country, managed to build a successful venture without those ready-made advantages.

. . .

Entrepreneurs are innately curious, looking to bump into ideas and people that can unearth problems to solve and opportunities to seize. But founders are unlikely to stumble into problems in sectors to which they have no exposure. And that is why the geographic diffusion of tech will change the industry at its very core. It is much harder to understand what bedevils the lives of people living in, say, Fayetteville, Ark., if your life rarely exposes you to people living outside the social and commercial networks of places like San Francisco or Cambridge, Mass.

For the full commentary, see:

Steve Case. “Innovation Moves to Middle America.” The Wall Street Journal (Wednesday, July 14, 2021): A17.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date July 13, 2021, and has the same title as the print version.)

Supply Chain Fragility During Pandemic Undermines “Just-in-Time” Business Dogma

(p. A1) TOKYO— Toyota Motor Corp. is stockpiling up to four months of some parts. Volkswagen AG is building six factories so it can get its own batteries. And, in shades of Henry Ford, Tesla Inc. is trying to lock up access to raw materials.

The hyperefficient auto supply chain symbolized by the words “just in time” is undergoing its biggest transformation in more than half a century, accelerated by the troubles car makers have suffered during the pandemic. After sudden swings in demand, freak weather and a series of accidents, they are reassessing their basic assumption that they could always get the parts they needed when they needed them.

“The just-in-time model is designed for supply-chain efficiencies and economies of scale,” said Ashwani Gupta, Nissan Motor Co.’s chief operating officer. “The repercussions of an unprecedented crisis like Covid highlight the fragility of our supply-chain model.”

. . .

(p. A10) One day in 1950, Toyota executive Taiichi Ohno visited an American supermarket and marveled how the shelves were restocked as they were emptied, as Jeffrey Liker recounts in his book “The Toyota Way.” Shoppers were kept happy even though the supermarket had only small storerooms. It was the polar opposite of the car industry where warehouses were kept full of sheet metal and tires to ensure the assembly line never shut down.

Supermarkets had little choice, since they couldn’t stockpile bananas for months. Still, Mr. Ohno reasoned, their practices eliminated waste and cut costs. Toyota would only pay for what it needed to produce cars for a day. That meant they could make do with smaller factories and warehouses.

. . .

The tide began to turn with the global financial crisis. At least 50 auto suppliers went bankrupt, catching car makers by surprise. When suppliers like Visteon Corp. , a maker of air conditioners, radios and other components, declared bankruptcy, it led to fears that car factories relying on Visteon would also be unable to operate.

A different shock prompted a rethinking of just in time at the company where it started. The 2011 earthquake in northern Japan hit Toyota suppliers including chip maker Renesas Electronics Corp.

. . .

For certain components, Toyota asked its suppliers to stockpile parts, the antithesis of just in time. The on-hand inventory held by Toyota’s largest supplier, Denso Corp., rose to around 50 days’ worth of supply in the year ended March 2020, up from 38 days in 2011, according to its financial filings. Denso declined to comment on inventory figures but said it has started keeping emergency stores of parts, especially semiconductors.

Toyota’s efforts have helped it weather this year’s shortages of semiconductors better than many of its rivals, although it wasn’t perfect.

For the full story, see:

Sean McLain. “Auto Makers Hit Brakes On Just-in-Time Manufacturing.” The Wall Street Journal (Thursday, May 04, 2021): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date May 3, 2021, and has the title “Auto Makers Retreat From 50 Years of ‘Just in Time’ Manufacturing.”)

The most recent edition of the classic book on Toyota’s success, mentioned above, is:

Liker, Jeffrey. The Toyota Way, 14 Management Principles from the World’s Greatest Manufacturer. 2nd ed. New York: McGraw-Hill Education, 2021.

Founding Entrepreneurs Have Similar Brain Patterns for Their Children and Their Startups

(p. R6) A study published in the Journal of Business Venturing in March 2019 looked at the brain patterns of 21 entrepreneurs and 21 parents who weren’t entrepreneurs. The goal was to investigate why and how company founders bond with their ventures.

The result: When entrepreneurs think about their businesses, their brain patterns are very similar to the brain patterns of parents thinking about their children. Those findings shed light on why entrepreneurs run companies the way they do—and how they ought to.

. . .

In the experiment, researchers used a technique called functional magnetic resonance imaging to see which parts of the participants’ brains were activated by a series of pictures. Entrepreneurs were shown photos of their business—such as the logo and product or service—as well as of other companies. The parents saw images of their own children, and other people’s.

The results were very similar for both test groups. When looking at the images of their own businesses or children, they experienced significantly more activity in the caudate nuclei, regions of the brain associated with parenting, as well as pleasant sensations and rewards, according to Tom Lahti, an associate professor at the Hanken School of Economics, in Helsinki, who co-wrote the study.

Meanwhile, when the test subjects viewed the images of the other companies or children, parts of the brain associated with negative emotional experiences, the bilateral insula, were much more active.

. . .

. . ., the emotional ties help explain why so many entrepreneurs are prepared to delay monetary gratification and stick with a venture in hopes of long-term success, Dr. Lahti says. That’s akin to parents making years of sacrifices on behalf of their children.

. . .

“The lead entrepreneur needs to share the responsibilities and ownership with the co-founders,” Dr. Lahti says, adding, “In some entrepreneurial teams, the lead entrepreneur may perceive [himself or herself as] owning the venture, while the other members of the entrepreneurial team do not. This could ultimately be a recipe for disaster, because the other members may not persist in the face of difficulty and setback.”

For the full story, see:

Cheryl Winokur Munk. “My Company, My Child.” The Wall Street Journal (Thursday, June 3, 2021): R6.

(Note: ellipses added.)

(Note: the online version of the story has the date June 2, 2021, and has the title “Why Many Entrepreneurs Treat Their Businesses Like Their Children.”)

The research discussed above was published in:

Lahti, Tom, Marja-Liisa Halko, Necmi Karagozoglu, and Joakim Wincent. “Why and How Do Founding Entrepreneurs Bond with Their Ventures? Neural Correlates of Entrepreneurial and Parental Bonding.” Journal of Business Venturing 34, no. 2 (March 2019): 368-88.

Small Firms Nimbly Pivoted to Face Masks

(p. R3) The humble face mask has proved to be a lifesaver not just by slowing Covid-19—but by helping small businesses.

Countless companies in dire straits during the lockdown have turned to masks to generate revenue. A lot of them have gotten into the niche from very diverse backgrounds. And, for some, mask sales haven’t only helped them survive but also driven their earnings higher than they were before Covid.

Here’s a look at some businesses that took a big gamble on masks—and saw it pay off.

. . .

Before the pandemic, custom-furniture maker David Halbout had a small but stable income and a waiting list stretching about four months. Within a week of the lockdown, though, his business came to a halt because he couldn’t meet customers to discuss the job or go to their home to work on projects. Almost all of his orders were canceled within days.

. . .

Facing that situation—and seeing the need that medical workers faced for protective equipment—the couple decided to turn their Red Bank, N.J., business to making masks. “We wanted to use our talents to help, so we started making fabric face masks with ties and elastic around the head,” says Mr. Halbout.

It turns out that the design was a hit for an unexpected niche. Because his products don’t interfere with hearing aids like traditional straps do, people who use the medical devices flocked to the masks, says Mr. Halbout. He estimates that his business, French Fix LLC, has sold 20,000 masks and donated another 3,000. Mr. Halbout says that he is making substantially more money from the masks, which start at $10.99 for children and $17.99 for adults, than he did from furniture.

. . .

Even so, “the core of my business stayed the same: I am still a creative person,” says Mr. Halbout. “I still design and I still work with my hands. I now work with fabric rather than wood.”

For the full story, see:

Elizabeth Garone. “The Lucrative Pivot to Making Face Masks.” The Wall Street Journal (Thursday, June 03, 2021): R3.

(Note: ellipses added.)

(Note: the online version of the story has the date June 2, 2021, and has the title “4 Entrepreneurs Who Found Big Money in Face Masks During Covid.”)

Leading American Scientists Endorsed False Soviet Denial of Anthrax Lab Leak

(p. A4) YEKATERINBURG, Russia — Patients with unexplained pneumonias started showing up at hospitals; within days, dozens were dead. The secret police seized doctors’ records and ordered them to keep silent. American spies picked up clues about a lab leak, but the local authorities had a more mundane explanation: contaminated meat.

It took more than a decade for the truth to come out.

In April and May 1979, at least 66 people died after airborne anthrax bacteria emerged from a military lab in the Soviet Union. But leading American scientists voiced confidence in the Soviets’ claim that the pathogen had jumped from animals to humans. Only after a full-fledged investigation in the 1990s did one of those scientists confirm the earlier suspicions: The accident in what is now the Russian Urals city of Yekaterinburg was a lab leak, one of the deadliest ever documented.

Nowadays, some of the victims’ graves appear abandoned, their names worn off their metal plates in the back of a cemetery on the outskirts of town, where they were buried in coffins with an agricultural disinfectant. But the story of the accident that took their lives, and the cover-up that hid it, has renewed relevance as scientists search for the origins of Covid-19.

It shows how an authoritarian government can successfully shape the narrative of a disease outbreak and how it can take years — and, perhaps, regime change — to get to the truth.

“Wild rumors do spread around every epidemic,” Joshua Lederberg, the Nobel-winning American biologist, wrote in a memo after a fact-finding trip to Moscow in 1986. “The current Soviet account is very likely to be true.”

Many scientists believe that the virus that caused the Covid-19 pandemic evolved in animals and jumped at some point to humans. But scientists are also calling for deeper investigation of the possibility of an accident at the Wuhan Institute of Virology.

There is also widespread concern that the Chinese government — which, like the Soviet government decades before it, dismisses the possibility of a lab leak — is not providing international investigators with access and data that could shed light on the pandemic’s origins. Continue reading “Leading American Scientists Endorsed False Soviet Denial of Anthrax Lab Leak”

When Athens Cancelled Socrates

(p. A15) A commitment to open expression has always defined liberalism, which gradually expanded our First Amendment protections. But now we see many liberals abandoning that principle, perhaps because they are no longer liberals in any meaningful sense of the term. How could they be, if they want tech barons to police our online reading? Facebook recently decided to stop blocking posts that suggested a “lab-leak” origin of Covid, but at the same time the company has been boasting of its efforts to downrank or “shadow-ban” accounts that share “misinformation” (in other words, they make it difficult for readers to find those accounts, without telling the account owners).

We sorely need a reminder of the follies and crimes of censorship. In “Dangerous Ideas,” Eric Berkowitz, a journalist and lawyer, offers a global history that identifies some recurring patterns in the suppression of free thinking. For starters, crackdowns almost inevitably happen when societies confront overwhelming crises. Philosophy flourished in ancient Athens, where free males (at least) enjoyed intellectual liberty, but after the Athenians suffered military defeat and a devastating pandemic, they canceled Socrates. Then Plato’s “Republic,” putting words into Socrates’ mouth, laid out a program for absolute control of speech and thought, anticipating in detail modern totalitarianism. Reading Plato, Mr. Berkowitz recognizes Mao’s Cultural Revolution.

. . .

What emerges from “Dangerous Ideas” is that ideological terms like blasphemy, subversion and hate speech are impossible to define. Thus there are never clear guidelines for censorship, which is inevitably inconsistent and often absurd. “We really do not know what is demanded of us,” protested a czarist censor jailed for making a wrong call. Facebook moderators can only be fired, but face a similar quandary.

For the full review, see:

Jonathan Rose. “BOOKSHELF; The Follies Of Censorship.” The Wall Street Journal (Tuesday, June 08, 2021): A15.

(Note: ellipsis added.)

(Note: the online version of the review has the date June 7, 2021, and has the title “BOOKSHELF; ‘Dangerous Ideas’ Review: The Follies of Censorship.”)

The book under review is:

Berkowitz, Eric. Dangerous Ideas: A Brief History of Censorship in the West, from the Ancients to Fake News. Boston, MA: Beacon Press, 2021.

Air Conditioning as a “Powerful Solution” to Global Warming

(p. A11) SEATTLE — For two decades, Becky Lichenstein embraced a custom of the Seattle area: doing without air-conditioning. . . .

But summers in the Pacific Northwest aren’t what they once were. With more regular bouts of soaring temperatures, Ms. Lichenstein a few years ago surrendered and bought a portable air-conditioning unit. This year, considering a changing climate and how it’s hitting home, she decided to turn to a more powerful solution — a permanent system installed just this week.

“I’m very grateful that I’m getting it done,” said Ms. Lichenstein, as workers finalized the installation at her split-level home in Tacoma, south of Seattle.

. . .

. . . , like many parts of the country where air-conditioning was once considered an afterthought or a luxury, the region’s relationship with air-conditioning has started to change. In 2013, just 31 percent of households in the Seattle metro area had some sort of air-conditioning, according to data in the federal government’s American Housing Survey. Just six years later, that had risen to 44 percent, accounting for hundreds of thousands of new units.

For the full story, see:

Mike Baker. “Once for ‘Weaklings,’ Air-Conditioning Wins Over a Baking Seattle.” The New York Times (Saturday, June 26, 2021): A11.

(Note: ellipses added.)

(Note: the online version of the story was updated June 30, 2021 and has the title “Air-Conditioning Was Once Taboo in Seattle. Not Anymore.”)

Serendipitous Water Cooler Collaboration “Is More Fairy Tale Than Reality”

(p. B1) When Yahoo banned working from home in 2013, the reason was one often cited in corporate America: Being in the office is essential for spontaneous collaboration and innovation.

. . .

Yet people who study the issue say there is no evidence that working in person is essential for creativity and collaboration. It may even hurt innovation, they say, because the demand for doing office work at a prescribed time and place is a big reason the American workplace has been inhospitable for many people.

“That’s led to a lot of the outcomes we see in the modern office environment — long hours, burnout, the lack of representation — because that office culture is set up for the advantage of the few, not the many,” said Dan Spaulding, chief people officer at Zillow, the real estate market-(p. B7)place.

“The idea you can only be collaborative face-to-face is a bias,” he said. “And I’d ask, how much creativity and innovation have been driven out of the office because you weren’t in the insider group, you weren’t listened to, you didn’t go to the same places as the people in positions of power were gathering?”

“All of this suggests to me that the idea of random serendipity being productive is more fairy tale than reality,” he said.

. . .

“There’s credibility behind the argument that if you put people in spaces where they are likely to collide with one another, they are likely to have a conversation,” said Ethan S. Bernstein, who teaches at Harvard Business School and studies the topic. “But is that conversation likely to be helpful for innovation, creativity, useful at all for what an organization hopes people would talk about? There, there is almost no data whatsoever.”

“All of this suggests to me that the idea of random serendipity being productive is more fairy tale than reality,” he said.

. . .

. . . Professor Bernstein found that contemporary open offices led to 70 percent fewer face-to-face interactions. People didn’t find it helpful to have so many spontaneous conversations, so they wore headphones and avoided one another.

. . .

. . . some creative professionals, like architects and designers, have been surprised at how effective remote work has been during the pandemic, while scientists and academic researchers have long worked on projects with colleagues in other places.

Requiring people to be in the office can drive out innovation, some researchers and executives said, because for many people, in-person office jobs were never a great fit. They include many women, racial minorities and people with caregiving responsibilities or disabilities. Also, people who are shy; who need to live far from the office; who are productive at odd hours; or who were excluded from golf games or happy hours.

For the full commentary, see:

Claire Cain Miller. “THE UPSHOT;Returning to the Office? The Myth of Serendipity.” The New York Times, SundayBusiness Section (Sunday, July 2, 2021): B1 & B7.

(Note: the online version of the commentary was updated July 1, 2021, and has the title “THE UPSHOT; Do Chance Meetings at the Office Boost Innovation? There’s No Evidence of It.”)

The Bernstein research mentioned above is:

Bernstein, Ethan, and Ben Waber. “The Truth About Open Offices.” Harvard Business Review 97, no. 6 (Nov./Dec. 2019): 82-91.

Harvard Democrat Larry Summers Says Trillion Dollar Stimulus Was “Least Responsible” Policy of Past 40 Years

(p. 1) Larry Summers has split his pandemic time between houses in Massachusetts and Arizona. He also seems to live inside the collective mind of the Washington economic establishment.

. . .

Mr. Summers spent his last White House stint as a top economic adviser, when the administration settled for a smaller Great Recession stimulus package out of political practicality, and has since disputed criticism by saying he favored more spending then. He has spent 2021 protesting that the $1.9 trillion spending package the Biden administration passed in March was too large for reasons both political and economic, while fretting that the Federal Reserve will be too slow to sop up the mess. The result, he has warned, could be an overheating economy and runaway inflation.

Other respected academics were repeating variations on the same theme, though most economists argued that a 2021 price pop was more likely to be short-lived. But it was Mr. Summers, a longtime Harvard pro-(p. 6)fessor, whose brash declarations worked a sort of nerd magic, drawing the boundaries of the debate and forcing the White House — one he largely supports — on the offensive.

Mr. Summers had combined the swagger of a former Treasury secretary with the gravitas of a respected academic and punchy lines — the stimulus wasn’t just a bad idea, according to him, it was the “least responsible” policy in four decades — to set off a national conversation that was hard to ignore.

. . .

. . . Mr. Summers has said he takes issue not with the idea of spending aggressively to break the economy out of a malaise, but with the magnitude and style — the trillions spent to combat the pandemic downturn exceeded the size of the hole it blew in the economy, basically. He seemed to worry that if he didn’t speak out, there would be too little discussion of the risks.

. . .

Whether or not Mr. Summers turns out to be the sage of Scottsdale and Brookline, his staying power is perhaps best understood as a statement about what he represents: the belief that government spending has real if hard-to-know boundaries, and that trying to measure and work within economic and practical limits can lead to better policymaking.

For the full story, see:

Jeanna Smialek. “Larry Summers: Yelling From the Sidelines.” The New York Times, SundayBusiness Section (Sunday, June 27, 2021): 1 & 6.

(Note: ellipses added.)

(Note: the online version of the story was updated June 26, 2021, and has the title “Why Washington Can’t Quit Listening to Larry Summers.”)