Nick Ronalds Graciously Praises Art Diamond’s “Openness” Book and EconTalk Podcast Interview

After my EconTalk conversation with Russ Roberts, that was posted on Aug. 12, 2019, 49 comments were left in the Reader Comments section of the web site. I do not know Nick Ronalds, but I am grateful to him for boosting my morale. Below, I quote his comments in full:

Nick Ronalds
Aug 16 2019 at 7:59pm
I was just going to leave a quick comment that this was an entertaining podcast, but also that Diamond came across as unpretentious and totally non-defensive, which helped make the conversation entertaining. There were also some fascinating nuggets, such as the anecdote about the development of the internet at–but mainly after–DARPA.

But the fact that Diamond is responding to so many comments makes him much more interesting, and suggests, at the very least, that he has an abundance of energy and a love of the fray.

The last guest who was so active in the comments section was Eugene Fama, so Diamond is in pretty good company.

. . .

Nick Ronalds
Aug 22 2019 at 8:28pm
I am blown away by Arthur’s genial responsiveness. I already got an Amazon book sample of his book but I’ll now feel like a jerk if I don’t just go and buy it.

The EconTalk podcast can be found at: https://www.econtalk.org/arthur-diamond-on-openness-to-creative-destruction/

Pilots of Delivery Robots Benefit from Video Game Skills

(p. B4) Michael Niedermayer used to fly drones for the U.S. Army and the Central Intelligence Agency, gathering real-time, life-and-death intelligence on battlefields in Iraq. Now he pilots delivery robots for a San Francisco Bay Area startup that wants to disrupt burrito delivery.

Postmates, which in mid-August received a permit to operate its Serve delivery robot in San Francisco and is already testing it for food delivery in Los Angeles, employs a growing team of “pilots” to remotely oversee, and at times steer, these four-wheeled food ferries.

“We will probably see a drastic increase in our workforce over the next five years,” says Postmates Chief Executive Bastian Lehmann.

Disrupting “last-mile” delivery—historically the domain of box trucks, bike couriers and personal vehicles—“felt like a great fit for my military background,” says Mr. Niedermayer.

His story is hardly unique. Across industries, engineers are building atop work done a generation ago by designers of military drones. Whether it’s terrestrial delivery robots, flying delivery drones, office-patrolling security robots, inventory-checking robots in grocery stores or remotely piloted cars and trucks, the machines that were supposed to revolutionize everything by operating autonomously turn out to require, at the very least, humans minding them from afar.

Until the techno-utopian dream of full automation comes into effect—and frankly, there’s no guarantee that will ever happen—there will be plenty of jobs for humans, just not ones their parents would recognize. Whether the humans in charge are in the same city or thousands of miles away, the proliferation of not-yet-autonomous technologies is driving a tiny but rapidly growing workforce.

. . .

When Postmates managers interview potential delivery-robot pilots like Diana Villalobos, they ask whether or not they played videogames in their youth.

“When I was a kid, my parents always said, ‘Stop playing videogames!’ But it came in handy,” she says.

For the full commentary, see:

Christopher Mims. “KEYWORDS; Behind ‘Autonomous’ Tech, a Person Playing Robot.” The Wall Street Journal (Saturday, Aug. 31, 2019): B4.

(Note: ellipsis added.)

(Note: the online version of the commentary has the same date as the print version, and has the title “KEYWORDS; The Next Hot Job: Pretending to Be a Robot.”)

With Work Ethic, but Not Much Education, “You Can Come Out Here and Still Make Six Figures”

(p. B1) When Mike Wilkinson moved to Midland, Tex., in 2017, he hoped the world’s largest oil field would change his life. His marriage was in tatters. He owed tens of thousands in credit card debt. His morale was broken.

He soon began working as a “hot shot” truck driver, carrying loads for drillers who need pipes or drums in a hurry. The United States is the world’s largest producer of oil, surpassing Saudi Arabia and Russia, and demand for “hot shots” has soared.

The epicenter of the oil boom is the Permian Basin in Texas and New Mexico, a massive layer cake of shale that’s cracked open with a blasting technique known as fracking. The country’s growing energy dominance has created tens of thousands of jobs in this part of the Southwest in recent years, many for people like Wilkinson looking for fresh starts.

. . .

(p. B4) There are now 55,000 people now work in the Permian. Mr. Wilkinson says he’s found a certain camaraderie with other transplants: “They are either escaping debt or family issues or poverty.

. . .

“I have to make money, and this is the best way I can make money,” he said. “If you’re not educated and have a good work ethic, you can come out here and still make six figures.”

For the full story, see:

Clifford Krauss. “Boom Times and Fresh Starts.” The New York Times (Thursday, Sept. 19, 2019): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date Sept. 10, 2019, and has the title “‘This Is the Most Lonesome Job’: Ride With a ‘Hot Shot’ Trucker in Oil-Rich Texas.” The online version highlights photographs by Tamir Kalifa. The online and print versions have significant differences in wording and ordering. Where there are differences, the passages quoted above, follow the print version.)

45 Is Average Age of Gazelle Founders

(p. B7) It took an entrepreneur to reimagine the mundane home thermostat as an object of beauty — and then to make a fortune based on that vision.

The entrepreneur was Tony Fadell, who had that thermostat epiphany after decades in the tech industry, including at companies like Apple. Mr. Fadell embodied his idea in a new company, Nest, which he started with the help of a colleague from Apple in 2010, at age 41.

The Nest thermostat had a sleek and intuitive design, smartphone connectivity and the ability to learn its owner’s temperature-setting habits. The product was a big hit, and within a few years Google acquired Nest for $3.2 billion.

Mr. Fadell’s deep experience and relatively mature age when he started Nest are typical of superstar entrepreneurs, who are rarely fresh out of college — or freshly dropped out of college. That’s what a team of economists discovered when they analyzed high-growth companies in the United States. Their study is being published in the journal American Economic Review: Insights.

The researchers looked at start-ups established between 2007 and 2014 and analyzed the top 0.1 percent — defined as those with the fastest growth in employment and sales. The average age of those companies’ founders was 45.

For the full commentary, see:

Seema Jayachandran. “ECONOMIC VIEW; High-Flying Tech Has a Touch of Gray.” The New York Times, SundayBusiness Section (Sunday, September 1, 2019): B7.

(Note: the online version of the commentary has the date Aug. 29, 2019, and has the title “ECONOMIC VIEW; Founders of Successful Tech Companies Are Mostly Middle-Aged.”)

The forthcoming article mentioned above, is:

Azoulay, Pierre, Benjamin Jones, J. Daniel Kim, and Javier Miranda. “Age and High-Growth Entrepreneurship.” American Economic Review: Insights (forthcoming).

UNO MBA Blog Highlights Diamond’s Openness to Creative Destruction

The blog for the MBA program at UNO’s College of Business ran a nice entry on my Openness to Creative Destruction: Sustaining Innovative Dynamism book.

As of 10/11/19, the URL for the entry was: https://www.unomaha.edu/college-of-business-administration/mba/about-us/mba-blog.php

(My seminars on “Economics of Entrepreneurship” and “Economics of Technology” are electives in the MBA program, the economics masters program, and the undergraduate economics program.)

Medical Paperwork Wastes Resources and Burns Out Physicians

(p. A23) Consider the use of medical scribes, who complete doctors’ electronic paperwork in real time during patient visits. The American College of Medical Scribe Specialists reported that 20,000 scribes were working in 2014, and expects that number to climb to 100,000 in 2020.

I have heard doctors say they need a scribe to keep up with electronic medical records, the mounting demand of which is driving a burnout epidemic among physicians. Scribes allow doctors to talk with and examine patients without having a computer come between them, but at base they are a workaround for the well-known design flaws of electronic medical records.

As a nurse, when I first learned about scribes, I was outraged. On the job, nurses hear repeatedly how health care companies can’t afford to have more nurses or aides to work with patients on hospital floors — and yet, money is available to pay people to manage medical records. Doctors who use scribes tend to see their productivity and work satisfaction increase, but the trade-off is still there: Scribes demonstrate the extent to which paperwork has become more important than patients in American health care.

For the full commentary, see:

Theresa Brown. “Our Jury-Rigged Health Care.” The New York Times (Friday, September 6, 2019): A23.

(Note: the online version of the commentary has the date September 5, 2019, and has the title “The American Medical System Is One Giant Workaround.”)

Median Income Rising More Under Trump Than Under Bush and Obama

Source of graph: online version of the WSJ article quoted and cited below.

(p. A17) President Trump’s critics can’t deny that the economy is doing well, so instead they insist all the benefits have gone to the rich and large corporations. “America’s middle class is under attack,” Sen. Elizabeth Warren asserted in her presidential campaign announcement last December.

The latest data from the Census Bureau monthly surveys tell a different story. Real median household income—the amount earned by those in the very middle—hit $65,084 (in 2019 dollars) for the 12 months ending in July. That’s the highest level ever and a gain of $4,144, or 6.8%, since Mr. Trump took office. By comparison, during 7½ years under President Obama—starting from the end of the recession in June 2009 through January 2017—the median household income rose by only about $1,000.

These statistics were published by two former census income-research specialists with 50 years experience who now run Sentier Research, a nonpartisan research group.

For the full commentary, see:

Stephen Moore. “Trump’s Middle-Class Economic Progress.” The Wall Street Journal (Monday, Sept. 30, 2019): A17.

(Note: the online version of the commentary has the date Sept. 29, 2019, and has the same title as the print version.)

“A Disney Story for Young Socialists” Op-Ed in Wall Street Journal

My op-ed touches on a couple of the themes of my book Openness to Creative Destruction: Sustaining Innovative Dynamism. The URL for the online version of my op-ed piece is: https://www.wsj.com/articles/a-disney-story-for-young-socialists-11570661652

Chester Arthur Reformed Civil Service After Reforming Himself

(p. A15) One of America’s obscure vice presidents was Chester A. Arthur, a machine politician from New York. No one thought of him as presidential timber, least of all Arthur himself. He was chosen as the Republican vice presidential candidate in 1880 only to pacify the corrupt yet powerful boss of the New York Republican Party, Sen. Roscoe Conkling, who had fought against the nomination of reform-minded James A. Garfield for president.

Then Garfield was assassinated soon after entering the White House and the machine hack was suddenly President of the United States.

. . .

But reform was in the air. Rutherford B. Hayes, elected president in 1876, had run on a platform promising to overhaul the civil service. He ordered a 20% staff cut at the Custom House, followed by an executive order forbidding “assessments” and barring federal workers from performing political work on or off the job. . . .

When Arthur unexpectedly became president, nearly everyone expected that the federal government would soon return to business as usual. It didn’t. Conkling wanted Garfield’s Custom House appointee fired and his own man put in, so he could use the patronage to fuel his political machine. Arthur refused. “For the vice presidency I was indebted to Mr. Conkling,” Arthur explained. “But for the presidency of the United States, my debt is to the Almighty.”

Mr. Greenberger also highlights the remarkable role that a perfect stranger played in Arthur’s transformation. Julia Sand, a semi-invalid living with her family on Manhattan’s Upper East Side, wrote Arthur a series of letters encouraging, warning and criticizing him, consistently urging him to overcome his corrupt past. He visited her only once, unexpectedly, but carefully preserved her letters even though he burned most of his other papers.

Her encouragement had its effect. In his first annual message to Congress, Arthur called for civil service reform and the reactivation of the moribund Civil Service Commission. In his second message, he called on Congress to pass laws banning assessments and requiring competitive examinations for civil service positions. Under public pressure, Congress quickly complied.

. . .

Even Mark Twain—no apologist for politicians—wrote that “it would be hard indeed to better President Arthur’s administration.”

“The Unexpected President” is popular history, dependent on secondary sources, especially Thomas Reeves’s magisterial biography of Arthur, “Gentleman Boss.” But it generally avoids the pitfalls of the genre, such as assuming facts not in evidence in the sources. Above all, Scott Greenberger’s slim, well-written biography is a worthy tale of redemption—of a wandering man who, suddenly finding himself president, rose to the occasion and did his duty.

For the full review, see:

John Steele Gordon. “BOOKSHELF; Growing Into the Office; Chester Arthur was a product of the New York patronage machine. Then Garfield was killed, and suddenly the political hack was president.” The Wall Street Journal (Tuesday, Sept. 28, 2017): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date Sept. 27, 2017, and has the same title as the print version.)

The book under review is:

Greenberger, Scott S. The Unexpected President: The Life and Times of Chester A. Arthur. New York: Da Capo Press, 2017.

California Uber Regulation Reduces Drivers’ Freedom to Choose

(p. A27) Drivers are at the heart of the ride-share business. They’re also at the heart of the debate over a bill approved by California’s legislature, A.B. 5, which aims to solidify gig workers’ legal status as employees. Uber and Lyft have always classified drivers as independent contractors. But many lawsuits over the years, by drivers and others, have put that classification under question. A.B.5 is intended to help drivers by creating a set of criteria under which Uber or Lyft drivers could be considered employees of those companies, and therefore entitled to the benefits and protections of employees.

So why would some drivers be against it?

I spent nearly a year driving part time for Uber and Lyft, and then left my job as an engineer to cover the industry full-time through my blog “The Rideshare Guy.” After thousands of conversations with drivers, I’ve found that while they come from all walks of life, one of the main reasons they value this work is flexibility. As a driver, you can work almost as much or as little as you want, cash out your pay instantly, take a break at a moment’s notice, or even go on a six-month vacation. This flexibility and that feeling of not having a boss makes ride-hail driving stand out in the vast array of service jobs and low-wage work.

For the full commentary, see:

Harry Campbell. “Uber Drivers Just Want to Be Free.” The New York Times (Tuesday, September 17, 2019): A27.

(Note: the online version of the commentary has the date Sept. 16, 2019, and has the same title as the print version.)

Environmentalist Greta Thunberg’s Sailboat Crew Flew to and from New York by Airplane

(p. B4) A year ago, a 15-year-old in leopard-print tights sat down outside the Swedish Parliament building with a purple backpack and a sign announcing she was on strike over climate change.

This week, Greta Thunberg arrived by solar-powered sailboat in New York, now as the 16-year-old poster child for younger generations’ climate angst. Also making its way to the New World, as evidenced in the coverage of her carbon-neutral trip, was a concept that in just a few years has swept Europe: flight shame, often hashtagged in the original Swedish, #flygskam.

. . .

As Greta . . . hopped ashore in southern Manhattan on Wednesday after 13 days at sea, loud cheers rose from the hundreds in the crowd there to greet her.  . . .

Amanda LaValle, a mother of three from Kingston, N.Y., brought her two eldest daughters to be part of the crowd. “I’m encouraging them to be involved. I have already blown my own climate credentials by having three kids,” she said, half in jest.

She acknowledged how difficult it can be to put her principles into practice. Earlier in August, when she needed to travel to Minneapolis for a three-day training sponsored by Al Gore’s Climate Reality Project, she briefly considered taking the train. But, she said, “It would have taken two days and I couldn’t see taking more time away from my family.”

Greta’s voyage has had its own critics, who have pointed out that some members of the sailing crew will return by plane, while others fly in to sail the boat back to Europe.

Boris Herrmann, captain of the sailboat, Malizia II, said that the criticism was expected but that Greta shouldn’t be held responsible for the flights by crew members. “We are kind of the ferry to bring her over. We’re a professional sailing team and sometimes we need to fly. We used this voyage also to train,” he said, adding that the team offsets its flights by funding sustainability projects, including mangrove planting in Indonesia. “The trip is an example of how difficult it is to have zero carbon impact.”

For the full story, see:

Sofia McFarland. “‘Flight Shame’ Comes to U.S.—Via Sailboat.” The Wall Street Journal (Saturday, Aug. 31, 2019): B4.

(Note: ellipses added.)

(Note: the online version of the story was last updated on Aug. 30, 2019, and has the title “‘Flight Shame’ Comes to the U.S.—Via Greta Thunberg’s Sailboat.” Where the online and print versions differ, the passages quoted above follow the more detailed online version.)