Category: Books

iPhone Made Internet “Almost Ubiquitous”

(p. B3) By essentially compressing a powerful, networked computer into a pocket-size device and making it easy to use, Steve Jobs made the internet almost ubiquitous and fundamentally altered decades-old consumer habits in areas like music and books. What’s more, the functionality packed into the iPhone made it a digital Swiss Army knife, supplanting existing tools from email to calendar to maps to calculators.

. . .

Along the way, smartphones disrupted communication. By offering faster, easier ways to communicate—text, photo, video and social networks—“the iPhone destroyed the phone call,” says Joshua Gans, professor at the University of Toronto and author of the book, “The Disruption Dilemma.” “It’s funny we even call it a phone.”

For the full story, see:

Betsy Morris. “What the iPhone Wrought.” The Wall Street Journal (Saturday, June 24, 2017): B3.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 23, 2017, and the title “From Music to Maps, How Apple’s iPhone Changed Business.”)

The Gans book mentioned above, is:

Gans, Joshua. The Disruption Dilemma. Cambridge, MA: The MIT Press, 2016.

“Only 5% to 10% of Jobs Can Have the Human Element Removed Entirely”

(p. A15) Careful studies using a task-based view of this sort find that, although substantial parts of many jobs can be automated—that is, technology can help still-needed workers become more productive—only 5% to 10% of jobs can have the human element removed entirely. The rate of productivity growth implied by the coming wave of automation would thus look similar to historical rates.

. . .

. . . the best insights into the future of work may be found in the trenches of everyday management. Take “Human + Machine,” by Accenture leaders Paul Daugherty and Jim Wilson, which opens in a BMW assembly plant where “a worker and robot are collaborating.” In their view, “machines are not taking over the world, nor are they obviating the need for humans in the workplace.”

The authors explain, for instance, why making robots operate more safely alongside humans has been critical to factory deployment—the very breakthrough emphasized by Dynamic’s CEO, but ignored by Mr. West. They describe AI’s role alongside existing workers in decidedly unsexy fields like equipment maintenance, bank-fraud detection and customer complaint management. And they illuminate the promise and pitfalls of implementing new processes that allocate some tasks to machines, requiring new forms of oversight and coordination.

Even in their overuse of acronyms and the word “reimagine,” the authors bring to life the realities of modern management. Readers gain a tactile sense of how technology changes business over time and why “the robots are coming” is no scarier an observation than ever before.

For the full review, see:

Oren Cass. “BOOKSHELF; Reckoning With the Robots; Automation rarely outright destroys jobs. It instead augments—taking over routine tasks while humans handle more complex ones.” The Wall Street Journal (Monday, June 25, 2018): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date June 24, 2018, and has the title “BOOKSHELF; ‘The Future of Work’ and ‘Human + Machine’ Review: Reckoning With the Robots; Automation rarely outright destroys jobs. It instead augments—taking over routine tasks while humans handle more complex ones.”)

The book under review, in the passages above, is:

Daugherty, Paul R., and H. James Wilson. Human + Machine: Reimagining Work in the Age of AI. Boston, MA: Harvard Business Review Press, 2018.

New Opiod Regulations Make Life Harder for Those in Severe Pain

(p. C4) There’s a great deal in “Dopesick” that’s incredibly bleak, but the most chilling moment for me was a quote from one of Macy’s journalist friends. Synthetic opioids had allowed this woman, despite a severe curvature of her spine, to lead an active life without risky surgery. She resented new rules that made it more onerous for her to get the pills. “My life,” she told Macy, “is not less important than that of an addict.”

For the full review, see:

Jennifer Szalai. “BOOKS OF THE TIMES; A Ground-Level Look At the Opioid Epidemic.” The New York Times (Thursday, July 26, 2018): C1 & C4.
(Note: ellipsis added.)

(Note: the online version of the review has the date July 25, 2018, and has the title “BOOKS OF THE TIMES; ‘Dopesick’ Traces the Opioid Crisis, From Beginning to Blow Up.”)

The book under review, is:

Macy, Beth. Dopesick: Dealers, Doctors, and the Drug Company That Addicted America. New York: Little, Brown and Company, 2018.

Lacking Absolute Certainty, Evidence Can Get Us to “True Enough”

(p. A17) As in his earlier books, Mr. Blackburn displays a rare combination of erudite precision and an ability to make complex ideas clear in unfussy prose.

If truth has seemed unattainable, he argues, it is because in the hands of philosophers such as Plato and Descartes it became so purified, rarefied and abstract that it eluded human comprehension. Mr. Blackburn colorfully describes their presentation of truth as a “picture of an entirely self-enclosed world of thought, spinning frictionless in the void.”

The alternative is inspired by more grounded philosophers, like David Hume and especially the American pragmatists of the late 19th and early 20th centuries: Charles Sanders Peirce, William James and John Dewey. Mr. Blackburn repeatedly returns to a quote from Peirce that serves as one of the book’s epigraphs: “We must not begin by talking of pure ideas—vagabond thoughts that tramp the public highways without any human habitation—but must begin with men and their conversation.” The best way to think about truth is not in the abstract but in media res, as it is found in the warp and weft of human life.

Put crudely, for the pragmatists “the proof of the pudding is in the eating.” We take to be true what works. Newton’s laws got us to the moon, so it would be perverse to deny that they are true. It doesn’t matter if they are not the final laws of physics; they are true enough. “We must remember that a tentative judgment of truth is not the same as a dogmatic assertion of certainty,” says Mr. Blackburn, a sentence that glib deniers of the possibility of truth should be made to copy out a hundred times. Skepticism about truth only gets off the ground if we demand that true enough is not good enough—that truth be beyond all possible doubt and not just the reasonable kind.

For the full review, see:

Julian Baggini. “BOOKSHELF; Beyond a Reasonable Doubt; A philosopher argues that truth is humble, not absolute: “A tentative judgment . . . is not the same as a dogmatic assertion of certainty”.” The Wall Street Journal (Wednesday, July 25, 2018): A17.

(Note: the online version of the review has the date July 24, 2018, and has the title “BOOKSHELF; ‘On Truth’ Review: Beyond a Reasonable Doubt; A philosopher argues that truth is humble, not absolute: “A tentative judgment . . . is not the same as a dogmatic assertion of certainty”.”)

The book under review is:

Blackburn, Simon. On Truth. Reprint ed. New York: Oxford University Press, 2018.

Astros Got Scouting and Analytics to Work Together

(p. A15) Mr. Reiter . . . has written a full account of the remarkable story of how one of the greatest turnarounds in modern baseball history was engineered. As he tells us in “Astroball: The New Way to Win It All,” Houston had looked at the processes that Oakland A’s general manager Billy Beane had used early in the 21st century. That team’s methods—sophisticated statistical analyses and attention to “undervalued” measuring sticks (like on-base percentage)—were detailed in Michael Lewis’s “Moneyball” (2003), and they changed the way baseball front offices operated. But Mr. Lewis’s book also portrayed a somewhat fraught internal organization, with old-fashioned scouts in one corner and the analytic nerds in the other, often disagreeing about players and prospects and resenting one another as well.

Astros general manager Jeff Luhnow wanted to figure out how to get scouting and analytics to work together and eventually produce an internal metric that would render a decision on a player as simple as the one in blackjack: hit or stay, keep or trade, play or bench.

. . .

Under Mr. Luhnow, scouts not only made subjective judgments about a prospect’s talent but also collected unique data that they fed to the folks in the Nerd Cave. And the nerds began listening to the scouts. All of this was easier said than done, but it was done, and the team made a series of sound, even brilliant, choices as it drafted, traded and signed players.

For the full review, see:

Paul Dickson. “BOOKSHELF; Lone Star Turnaround; How the Houston Astros used a combination of data-driven analytics and team-building to go from last place to World Series champions.” The Wall Street Journal (Tuesday, July 17, 2018): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date July 16, 2018, and has the title “BOOKSHELF; ‘Astroball’ Review: Lone Star Turnaround
How the Houston Astros used a combination of data-driven analytics and team-building to go from last place to World Series champions.”)

The book under review is:

Reiter, Ben. Astroball: The New Way to Win It All. New York: Crown Archetype, 2018.

Reason Magazine Runs Excerpt from “Openness to Creative Destruction”

A three-page, edited excerpt from Openness to Creative Destruction appears in the Aug./Sept. issue of Reason magazine.

Innovative dynamism creates more jobs than it destroys and the new jobs created are usually better jobs than the old jobs destroyed. The Aug./Sept. issue of Reason includes an edited excerpt of this positive account of the labor market from Openness to Creative Destruction. The online version of the article is available now. The print version of the article either is on newsstands now, or will be soon. The citation for the article is:

Diamond, Arthur M., Jr. “How Work Got Good.” Reason (Aug./Sept. 2019): 22-24.

Amazon Names “Openness to Creative Destruction” as “#1 New Release in Industrial Management & Leadership”

Art Diamond noticed on Fri., June 28, 2019 that Amazon.com had identified “Openness to Creative Destruction” as “#1 New Release in Industrial Management & Leadership”.

“Rand’s Entrepreneur Is the Promethean Hero of Capitalism”

(p. B1) Few, if any, literary philosophers have had as much influence on American business and politics as Ayn Rand, especially now that Donald J. Trump occupies the White House.

President Trump named Rand his favorite writer and “The Fountainhead” his favorite novel. Secretary of State Rex W. Tillerson has cited “Atlas Shrugged” as a favorite work, and the C.I.A. director, Mike Pompeo, said the book “really had an impact on me.”

. . .

(p. B2) In business, Rand’s influence has been especially pronounced in Silicon Valley, where her overarching philosophy that “man exists for his own sake, that the pursuit of his own happiness is his highest moral purpose, that he must not sacrifice himself to others, nor sacrifice others to himself,” as she described it in a 1964 Playboy interview, has an obvious appeal for self-made entrepreneurs. Last year Vanity Fair anointed her the most influential figure in the technology industry, surpassing Steve Jobs.

. . .

“Rand’s entrepreneur is the Promethean hero of capitalism,” said Lawrence E. Cahoone, professor of philosophy at the College of the Holy Cross, whose lecture on Rand is part of his Great Courses series, “The Modern Political Tradition.” “But she never really explores how a dynamic entrepreneur actually runs a business.”

. . .

“Mention Ayn Rand to a group of academic philosophers and you’ll get laughed out of the room,” Mr. Cahoone said. “But I think there’s something to be said for Rand. She takes Nietzschean individualism to an extreme, but she’s undeniably inspirational.”

As the mysterious character John Galt proclaims near the end of “Atlas Shrugged”: “Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all. Do not let the hero in your soul perish, in lonely frustration for the life you deserved, but have never been able to reach. Check your road and the nature of your battle. The world you desired can be won, it exists, it is real, it is possible, it’s yours.”

For the full commentary, see:

James B. Stewart. “COMMON SENSE; Tough Times For Disciples Of Ayn Rand.” The New York Times (Friday, July 14, 2017): B1-B2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 13, 2017, and has the title “COMMON SENSE; As a Guru, Ayn Rand May Have Limits. Ask Travis Kalanick.”)

Ayn Rand’s magnum opus, quoted above, is:

Rand, Ayn. Atlas Shrugged. New York: Random House, 1957.

“Results Are Often Suspiciously Consistent with the Political Dispositions of the Modeler”

(p. 14) For scholars and popular writers alike, the Great Depression has long been a kind of economic Rorschach test. Free marketers look at the economic disaster and blame the Smoot-Hawley tariff, which inaugurated a global trade war; monetarists attack the Federal Reserve for its tight-money policies; Keynesians berate Herbert Hoover for his attempts to balance the budget as the crisis worsened.

. . .

Generally, . . . , Morris is remarkably evenhanded, giving both sides of scholarly debates in deep detail. This is particularly the case in his coverage of the New Deal, where he weighs the practical effects of the dizzying array of policies begun by Roosevelt, from his devaluation of the dollar to the creation of the Civilian Conservation Corps. And Morris explains in accessible prose how economists have used modeling to study the New Deal (he wryly notes that this “is still a work in progress — if only because results are often suspiciously consistent with the political dispositions of the modeler”).

Continue reading ““Results Are Often Suspiciously Consistent with the Political Dispositions of the Modeler””

Table 7.1 and Table 7.2 Correctly Formatted in Free PDF

Table 7.1 from p. 95 of Openness to Creative Destruction, corrected for OUP post-proof formatting errors.
Table 7.2 from p. 96 of Openness to Creative Destruction, corrected for OUP post-proof formatting errors.

After my last viewing of the page proofs for my Openness to Creative Destruction, formatting errors were introduced by Oxford University Press (OUP) into Table 7.1 and Table 7.2.

A PDF with corrected versions of the tables can be downloaded for free at:
https://www.artdiamond.com/DiamondPDFs/CorrectedPages_94_%20thru_96withHeading.pdf

Openness to Creative Destruction Released Today

Art Diamond next to sign saying "Congratulations!".
My wife Jeanette decorated the mantelpiece to celebrate the publication of Openness. Our daughter Jenny, and dachshund Fritz, joined the celebration.

Today, June 3, 2019, is the official release date of my book Openness to Creative Destruction: Sustaining Innovative Dynamism.

A couple of weeks ago I heard a thoughtful presentation by Pete Boettke that contrasted the role of economist as scientist and as savior. He plausibly claimed that one of my mentors, George Stigler, defended the economist as scientist.

But as is true of many of us, Stigler was not always consistent. He sometimes said that whether you are a fireman or an incendiary, you need to know how fire works. And I generalize that if you want to be effective at saving the world, you need to know how the world works. Science as a method of tolerant inquiry, and not as a body of unquestionable doctrine, helps you to know how the world works.

So my immodest hope for Openness is both that it advances the science of economics, and that it helps to save the world.

PS: Openness can be purchased from Oxford University Press for 30% off using the discount code ASFLYQ6.