Books – Page 108 – artdiamondblog.com

For Hubbard and Kane “Institutions Explain Innovation”

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

(p. A11) Messrs. Hubbard and Kane argue, as do others, that certain policies and core principles are the key: property rights, flexible work rules, open markets. For the authors, such matters explain economic growth entirely.

To those who would cite the primacy of technological breakthroughs, Messrs. Hubbard and Kane assert that inventions only spark growth if there are systems in place (such as intellectual-property rights) that enable inventions to flourish and their value to spread. “The wheel and the windmill were invented many times,” they write, “then forgotten, until finally one society had the institutional framework to implement them widely and pass them on permanently.” In short, “institutions explain innovation.”

For the full review, see:
Matthew Rees. “BOOKSHELF; How the Mighty Fall; The Roman empire eventually lost its economic vitality thanks to price controls, heavy taxes and state-sponsored debt relief..” The Wall Street Journal (Fri., June 21, 2013): A11.
(Note: the online version of the review has the date June 20, 2013.)

The book under review is:
Hubbard, Glenn, and Tim Kane. Balance: The Economics of Great Powers from Ancient Rome to Modern America. New York: Simon & Schuster, 2013.

“A Jigger of Asperger’s in the Mix”

(p. 11) Page was not a social animal– people who talked to him often wondered if there were a jigger of Asperger’s in the mix– and could unnerve people by simply not talking. But when he did speak, more often than not (p. 12) he would come out with ideas that bordered on the fantastic.

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

Less Credentialed Hazlitt Got More Right than Keynes and White

Source of book image:
http://s.s-bol.com/imgbase0/imagebase/large/FC/7/0/6/9/9200000009899607.jpg

(p. C5) One of the many merits of “The Battle of Bretton Woods,” a superb history of mid-20th-century monetary affairs, is the timing of its publication. Today, as never before, central banks are printing money, suppressing interest rates and manipulating markets. You wonder where it will all end.
. . .
(p. C6) According to Mr. Steil, the recondite Bretton Woods debates failed to engage the American public as a political issue. If so, it was no fault of Henry Hazlitt’s. An editorial writer for the New York Times, Hazlitt directed persistent, withering fire against White’s and Keynes’s brainchild. (His collected editorials, titled “From Bretton Woods to World Inflation,” were published in 1984.) The conference had it all wrong, Hazlitt thundered in the Times. The IMF would subsidize unsound policies. What was wanted were sound ones.
“The broad principles should not be difficult to formulate,” the readers of the Times were reminded on the eve of the gathering in New Hampshire. Governments should balance their budgets, forswear 1930s-style impediments to free trade (quotas, exchange restrictions) and refrain from “currency and credit inflation.” And the currency itself? It should be “redeemable in something that is itself fixed and definite: for all practical purposes this means a return to the historic gold standard.”
. . .
White was a Harvard Ph.D. Keynes was, at least according to Mr. Steil, “the most innovative and iconoclastic economist of his age, if not of all time.” Hazlitt was no trained economist at all. But it was he, not the two acclaimed experts, who turned out to be right.

For the full review, see:
James Grant. “A Fateful Meeting That Shaped the World.” The Wall Street Journal (Sat., March 16, 2013): C5-C6.
(Note: ellipses added.)
(Note: the online version of the review has the date March 15, 2013.)

The book under review is:
Steil, Benn. The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order Princeton, NJ: Princeton University Press, 2013.

In the Plex Helps Us Understand Entrepreneurs Page and Brin

Source of book image: http://mastersofmedia.hum.uva.nl/wp-content/uploads/2011/09/intheplex.jpg

In the Plex goes from detail to detail of the values, actions and quirks of a large cast of characters who have been involved in the Google story. I did not find the book as consistently gripping as Isaacson’s Steve Jobs biography.
But some of the details help suggest new hypotheses, or test old ones, on important issues of entrepreneurship and technological progress. Some parts are revealing of the goals and methods of Page and Brin.
During the next weeks I will quote some of the more interesting passages.

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

Hunter-Gatherers Had High Child Mortality and Died Before Age 40

(p. 31) Child mortality in foraging tribes was severe. A survey of 25 hunter-gatherer tribes in historical times from various continents revealed that, on average, 25 percent of children died before they were 1, and 37 percent died before they were 15. In one traditional hunter-gatherer tribe, child mortality was found to be 60 percent. Most historical tribes had a population growth rate of approximately zero. This stagnation is evident, says Robert Kelly in his survey of hunting-gathering peoples, because “when formerly mobile people become sedentary, the rate of population growth increases.” All things being equal, the constancy of farmed food breeds more people.
While many children died young, older hunter-gatherers did not have (p. 32) it much better. It was a tough life. Based on an analysis of bone stress and cuts, one archaeologist said the distribution of injuries on the bodies of Neanderthals was similar to that found on rodeo professionals–lots of head, trunk, and arm injuries like the ones you might get from close encounters with large, angry animals. There are no known remains of an early hominin who lived to be older than 40. Because extremely high child mortality rates depress average life expectancy, if the oldest outlier is only 40, the median age was almost certainly less than 20.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Wittgenstein Heirs Lost Family Wealth and “Found Little Happiness”

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

(p. W10) As he lay dying during Christmas 1912 — from a gruesome throat cancer — the Viennese industrialist Karl Wittgenstein no doubt took some comfort in the fact that he was leaving to his heirs one of the largest fortunes in Europe. He had acquired his wealth in just 30 years, the period during which Wittgenstein, an engineer, transformed a small steel mill into Europe’s largest steel cartel through a combination of hard work, luck and ruthlessness. As der österreichische Eisenkönig (the “Austrian iron king”), he was the chief executive, principal shareholder or director of dozens of industrial companies and banks that provided the ore, manufacturing and financing for most of the steel products of the Habsburg Empire.

In his spare time, Wittgenstein acquired a spectacular house in Vienna, grandly styled as the family’s Palais Wittgenstein.
. . .
Today, though, the Wittgenstein millions are gone and the Palais replaced by a hideous concrete apartment block. “Riches,” Adam Smith wrote, “. . . very seldom remain long in the same family.” Alexander Waugh’s grimly amusing “The House of Wittgenstein” shows how the family fortune was lost and how the family members themselves, despite instances of prodigious talent and accomplishment, found little happiness in their own lives or pleasure in their sibling relations.

For the full review, see:
JAMES F. PENROSE. “BOOKS; A Viennese Blend: Riches and Rancor; Blessed by Musical and Intellectual Gifts, and Lots of Money, a Family Still Struggled to Find Harmony.” The Wall Street Journal (Sat., March 1, 2009): W10.
(Note: ellipsis added; italics in original.)
(Note: the online version of the review has the date February 28, 2009.)

The book under review is:
Waugh, Alexander. The House of Wittgenstein: A Family at War. New York: Doubleday, 2009.

Falling Computer Prices Cured the “Digital Divide”

(p. 304) The more evident the power of the internet as an uplifting force became, the more evident the divide between the digital haves and have-nots. One sociological study concluded that there were “two Americas” emerging. The citizens of one America were poor people who could not afford a computer, and of the other, wealthy individuals equipped with PCs who reaped all the benefits. During the 1990s, when technology boosters like me were promoting the advent of the internet, we were often asked: What are we going to do about the digital divide? My an-(p. 305)swer was simple: nothing. We didn’t have to do anything, because the natural history of a technology such as the internet was self-fulfilling. The have-nots were a temporary imbalance that would be cured (and more) by technological forces. There was so much profit to be made connecting up the rest of the world, and the unconnected were so eager to join, that they were already paying higher telecom rates (when they could get such service) than the haves. Furthermore, the costs of both computers and connectivity were dropping by the month. At that time most poor in America owned televisions and had monthly cable bills. Owning a computer and having internet access was no more expensive and would soon be cheaper than TV. In a decade, the necessary outlay would become just a $100 laptop. Within the lifetimes of all born in the last decade, computers of some sort (connectors, really) will cost $5.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

The French and Japanese Believe Water Cleans the Anus Better than Dry Paper

Source of the book image: http://jacketupload.macmillanusa.com/jackets/high_res/jpgs/9780805090833.jpg

(p. C34) Ms. George’s book is lively . . . . It is hard not to warm to a writer who can toss off an observation like this one: “I like engineers. They build things that are useful and sometimes beautiful — a brick sewer, a suspension bridge — and take little credit. They do not wear black and designer glasses like architects. They do not crow.”
. . .
In Japan, where toilets are amazingly advanced — most of even the most basic have heated seats and built-in bidet systems for front and rear — the American idea of cleaning one’s backside with dry paper is seen as quaint at best and disgusting at worst. As Ms. George observes: “Using paper to cleanse the anus makes as much sense, hygienically, as rubbing your body with dry tissue and imagining it removes dirt.”

For the full review, see:
DWIGHT GARNER. “BOOKS OF THE TIMES; 15 Minutes of Fame for Human Waste and Its Never-Ending Assembly Line.” The New York Times (Fri., December 12, 2008): C34.
(Note: ellipses added.)
(Note: the online version of the review has the date December 11, 2008.)

The book under review, is:
George, Rose. The Big Necessity: The Unmentionable World of Human Waste and Why It Matters. New York: Metropolitan Books, 2008.

In 1916 a Single Home Motor Would Drive All Home Machines

(p. 301) By the 1910s, electric motors had started their inevitable spread into homes. They had been domesticated. Unlike a steam engine, they did not smoke or belch or drool. Just a tidy, steady whirr from a five-pound (p. 302) hunk. As in factories, these single “home motors” were designed to drive all the machines in one home. The 1916 Hamilton Beach “Home Motor” had a six-speed rheostat and ran on 110 volts. Designer Donald Norman points out a page from the 1918 Sears, Roebuck and Co. catalog advertising the Home Motor for $8.75 (which is equivalent to about $100 these days). This handy motor would spin your sewing machine. You could also plug it into the Churn and Mixer Attachment (“for which you will find many uses”) and the Buffer and Grinder Attachments (“will be found very useful in many ways around the home”). The Fan Attachment “can be quickly attached to Home Motor,” as well as the Beater Attachment to whip cream and beat eggs.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: the quote above omits the copy of a 1918 electric motor ad that appeared in the middle of the original paragraph.)

Mencken’s Prejudices: Fresh, Vital, Withering and Gleeful

“Christopher Buckley.” Source of caption and image: online version of the NYT article quoted and cited below.

(p. 5) Which book has had the greatest impact on you? What book made you want to write?

H. L. Mencken’s “Prejudices.” He wrote these six volumes in the 1920s, but their zest, sinew and cut-and-thrust are undated, fresh and vital nearly a century after their ink dried. No American writer — except perhaps Twain and Bierce — could be so withering and gleeful at the same time.

For the full interview, see:
Buckley, Christopher. “By the Book: Christopher Buckley.” The New York Times Book Review (Sun., July 7, 2013): 5.
(Note: the bold in the original indicates a question to Buckley by the unidentified NYT interviewer.)
(Note: the online version of the interview has the date July 3, 2013, and has the title “Christopher Buckley: By the Book.”)

The six volumes mentioned in the interview, have been reprinted in a two volume set:
Mencken, H.L. H.L. Mencken: Prejudices: The Complete Series. New York: Library of America, 2010.

Slow Patent System Makes U.S. Look Like Third World Country

(p. 118) The absurd length of time and the outrageous cost of obtaining a patent is a national disgrace. If we heard it took two to five years to obtain title to real property somewhere, we would assume it was a corrupt third world country. And yet that is how long it takes to receive a patent now, depending on the area of technology.

Source:
Halling, Dale B. The Decline and Fall of the American Entrepreneur: How Little Known Laws and Regulations Are Killing Innovation. Charleston, S.C.: BookSurge Publishing, 2009.