Month: October 2024

Otherwise Innovative Retailers Exit Healthcare Due to “the Layers of Government”

(p. B3) Walmart, the world’s largest retailer, said Tuesday [April 30, 2024] that it was shutting down its health care centers, a network that only last year it said it planned to expand.

The retailer said in a blog post that its 51 health centers across five states would close.

. . .

Offering health care is more difficult than selling consumer goods like laundry detergent and car parts, said David Silverman, a retail analyst at Fitch Ratings, noting the layers of government and insurance providers involved.

“The attempts to enter these spaces and some of the failures of doing so really underscore the challenges and complexities of operating in the U.S. health care space,” Mr. Silverman said.

. . .

In 2021, Amazon, Berkshire Hathaway and JPMorgan Chase ended their high-profile joint health care venture, which sought to explore new ways to deliver health care to their employees. In March, Walgreens said it had closed 140 of its VillageMD clinics and planned to close 20 more.

For the full story see:

Jordyn Holman. “Walmart Is Shutting Down Health Centers in 5 States.” The New York Times (Wednesday, May 1, 2024): B3.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date April 30, 2024, and has the title “Walmart Is Shutting Health Centers After Plan to Expand.”)

Growth-Impeding Red Tape Especially Hurts Small and Midsize Firms

(p. B1) When Markus Wingens created the position of “energy manager” for the metal heat-treatment company he runs in southwestern Germany, his idea was to increase energy efficiency and attract customers interested in sustainability.

But the job has become as much a task of filling out paperwork and studying seemingly ever-changing laws as it is ensuring that the firm, Technotherm Heat Treatment Group, is meeting energy requirements.

Last year, four new laws and 14 amendments to existing ones governing energy use took effect, each bringing fresh demands for data to be reported and forms to be submitted — in many cases to prove the same standards that the company has already been certified as reaching since 2012, Mr. Wingens said.

“We have the Renewable Energy Act, we have the Energy Efficiency Act, we have the Energy Financing Act, and each comes with an administrative burden,” he said. “It’s madness.”

Freedom from red tape has been a rallying cry for farmers from Poland to Portugal at recent protests against European Union laws and policies. Indeed, the burden of bureaucracy is a general complaint of corporate executives across the globe.

But nowhere is the issue more pressing than in Germany, Europe’s largest economy, which is facing anemic growth of no more than 0.2 percent this year. In a report last month, the International Monetary Fund called “too much red tape” one of the major impediments to reviving the German economy.

For example, it takes 120 days to obtain a business license in Germany — more than double the average in other Western economies. Germany also lags behind the rest of the European Union in the digitization of government services, still requiring written forms for certain tax refunds and building permits.

. . .

(p. B2) German companies spend 64 million hours every year filling out forms to feed the country’s 375 official databases, according to industry estimates. When the Stuttgart chamber of commerce asked its 175,000 members to name their biggest challenges, red tape topped the list.

. . .

The red tape drain on time and resources is felt especially by small and midsize firms — those with fewer than 500 employees and annual revenue below €50 million (about $54 million) — that are the backbone of the German economy.

These businesses often lack in-house legal departments dedicated to filing audits, recording statistics and deciphering which information is wanted by which authorities — the European, federal, state and local governments.

. . .

“In Germany, we have regulations about handing over business cards at business meetings and whether it’s still allowed,” [Andreas Kiontke, a lawyer who works with the Stuttgart chamber of commerce] said.

For the full story see:

Melissa Eddy. “German Business Is Tangled in Red Tape.” The New York Times (Tuesday, April 15, 2024): B1-B2.

(Note: ellipses added. The bracketed information on Andreas Kiontke is from a couple of paragraphs earlier.)

(Note: the online version of the story has the date April 9, 2024, and has the same title as the print version.)

Libertarian Economist Thomas Sowell Praises Trump’s “Defiant Response to Being Shot At”

(p. A13) Although the attempt to assassinate Donald Trump failed, it was part of a long and growing pattern of threats and violence that can be fatal to American society.

. . .

Over the years, too many people have used too many clever words to play down threats and violence. “No justice, no peace” has been one of the more fashionable phrases.

. . .

If one side keeps getting away with threats and violence, it is only a matter of time before their opponents also start using threats and violence. At that point, whatever they initially disagreed about is no longer the issue. It is now a question of revenge and counter-revenge, especially for unforgivable acts on both sides. And no compromise on the original issues can stop that.

If anything positive can be salvaged from this ominous attempt on Donald Trump’s life, it may be his defiant response to being shot at. It may be important to let foreign enemies know that there are still some strong American leaders that they may have to deal with.

For the full commentary see:

Thomas Sowell. “Lessons of the Attack on Trump.” The Wall Street Journal (Tuesday, July 16, 2024): A13.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 15, 2024, and has the title “Lessons of the Trump Assassination Attempt.”)

A Founding Manager (aka Project Entrepreneur) Has the Motivation, Knowledge, and Power to Keep His Firm Innovative

In my Openness book, I discuss “project entrepreneurs” who overlap considerably with what is called “founder mode” in the commentary quoted below.

(p. B4) People like Elon Musk and Steve Jobs at times seemed to have a je ne sais quoi that allowed them to act and behave as leaders of their companies in ways that would have tripped up mere mortals.

This past week, Silicon Valley put a name to it: “Founder Mode.”

It’s a term coined by Paul Graham, co-founder of Y Combinator, an influential startup incubator in the San Francisco Bay Area. He wrote an essay this month gaining a lot of attention in tech circles that pits his “Founder Mode” against what he calls “Manager Mode.”

Graham tries to put his finger on the special relationship entrepreneurs have with their companies that he argues outsiders just lack.

. . .

In a podcast late last year, Chesky, who co-founded Airbnb originally as AirBed and Breakfast, talked about the three traits he said better equip a company’s founder over an outside manager.

“They’re the biological parent—you can love something but when you’re the biological parent of something, like, it came from you, it is you, there’s a deep passion and love,” Chesky said. “The second thing a founder has is they have the permission…like I can’t tell another child what to do but if they were my child I probably could.”

This empowers a founder to make dramatic changes, such as rebranding.

And finally, according to Chesky, a founder knows how the company was built in the first place. “You know how to rebuild it, you know the freezing temperature of a company, you know at what temperature it melts,” he said.

. . .

Before publishing his essay, Graham ran it by a few tech titans, including Musk. After it was published, Musk weighed in on X with his own endorsement: “Worth reading.”

For the full commentary see:

Tim Higgins. “Micromanaging Is Cool Again in Tech.” The Wall Street Journal (Monday, Sept. 9, 2024): B4.

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

(Note: the online version of the commentary has the date September 7, 2024, and has the title “With ‘Founder Mode,’ Silicon Valley Makes Micromanaging Cool.” The French phrase is italicized in the print version.)

My book, mentioned above, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Hygiene Hypothesis Says Parasites Help the Immune System to Develop

(p. D6) The kakapo, a large flightless parrot that can live 95 years and perhaps longer, is dangerously close to extinction. Once found throughout New Zealand, the population has dwindled to fewer than 150.

Conservation biologists are doing everything they can to keep the kakapo from vanishing. And so, when they discovered a few years ago that a pair of captive kakapos were infected with tapeworms, they did the obvious thing: They dewormed the birds.

Hamish G. Spencer, a geneticist at the University of Otago in New Zealand, thinks that was unwise. If endangered species are going to escape extinction, he argues, they may need parasites to survive.

“Some of these parasites may turn out to be quite good for their hosts,” Dr. Spencer said.

. . .

Evidence accumulated over the decades for what came to be known as the hygiene hypothesis. Supporters argued that over the past two centuries, modern civilization has radically changed our relationship with our inner residents.

For millions of years, our evolving bodies had to strike a tricky balance. We depended on a powerful immune system to fend off deadly infections. But if the immune system were to attack indiscriminately, it could destroy the body’s beneficial bacteria, for example, or damage its tissues with relentless inflammation.

According to the hygiene hypothesis, our ancestors came to tolerate low levels of infection. They even came to depend on parasites to help the immune system develop properly.

. . .

It’s possible, Dr. Spencer said, that the lack of parasites may help explain why some species restoration projects have been disappointing. “There are a number of cases where reintroduced populations haven’t done very well,” he said. “It might be that their immune systems are not very good.”

. . .

A first step, Dr. Spencer said, would be to stop medicating captive animals so freely. “We are arguing against the idea that you just dose the hell out of everything before you put animals back in the wild,” he said.

For the full story see:

Carl Zimmer. “Parasites as Welcome Guests.” The New York Times (Tuesday, April 5, 2016 [sic]): D6.

(Note: ellipses added.)

(Note: the online version of the story has the date March 31, 2016 [sic], and has the title “Tapeworms and Other Parasites Can Make Good Guests.” The paragraph that starts “For millions of years,” appears in the online version, but not in the print version.)

For more on the hygiene hypothesis see the following academic article:

Versini, Mathilde, Pierre-Yves Jeandel, Tomer Bashi, Giorgia Bizzaro, Miri Blank, and Yehuda Shoenfeld. “Unraveling the Hygiene Hypothesis of Helminthes and Autoimmunity: Origins, Pathophysiology, and Clinical Applications.” BMC Medicine 13, no. 1 (2015). DOI: https://doi.org/10.1186/s12916-015-0306-7.