Books – Page 95 – artdiamondblog.com

Insull Took 50% Pay Cut to Get Chief Executive Position

(p. 262) Insull’s story is characterized by boldness of action that exceeded anything Edison had tried. When he had left Edison’s side, he had been determined to find a chief executive position. In 1892, he passed up an offer to be a vice president in Henry Villard’s North American Company in order to become president of Edison Chicago, a small electrical power utility that could pay him only half of what he had made in New York. He also had to move to Chicago, a place that seemed to a New Yorker like a “frontier town.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Edison Thought His Money Did More Good by Funding Inventions than by Funding Philanthropy

(p. 263) When asked in 1911 to donate to a building drive for a YMCA in Port Huron, a boyhood home, Edison responded with a small pledge and provided an explanation of why he would not provide more: “I can use surplus money to greater advantage for all the people in conducting experiments.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Occupational Licensing Hurts Poor and Restricts Innovation and Worker Mobility

Source of book image: http://www.upjohn.org/sites/default/files/bookcovers/soor_0.JPG

(p. A31) In the 1970s, about 10 percent of individuals who worked had to have licenses, but by 2008, almost 30 percent of the work force needed them.

With this explosion of licensing laws has come a national patchwork of stealth regulation that has, among other things, restricted labor markets, innovation and worker mobility.
. . .
Occupational licensing, moreover, does nothing to close the inequality gap in the United States. For consumers, there is likely to be a redistribution effect in the “wrong” direction, as higher income consumers have more choice among higher quality purveyors of a service and lower income individuals are left with fewer affordable service options.
. . . , government-issued licenses largely protect occupations from competition. Conservatives often see members of the regulated occupation supporting licensing laws under claims of “public health and safety.” However, these laws do much more to stop competition and less to enhance the quality of the service.
Also, all consumers do not demand the same level of quality. If licensure “improves quality” by restricting entry into the profession, then some consumers will be forced to pay for more “quality” than they want or need. Not everyone wants a board-licensed hairdresser.

For the full commentary, see:
MORRIS M. KLEINER. “Why License a Florist?” The New York Times (Thurs., MAY 29, 2014): A31.
(Note: the online version of the commentary has the date MAY 28, 2014.)

Kleiner’s most recent book on occupational licensing is:
Kleiner, Morris M. Stages of Occupational Regulation: Analysis of Case Studies. Kalamazoo, Michigan: W.E. Upjohn Institute, 2013.

Edison “Put His Winnings from the Electric Light Business into the Mining Business”

(p. 265) In his business and research projects, Edison became more timid as he became older. While in his thirties, he had had the energy to tackle a problem that had seemed to many to be insoluble: the “subdivision” of the electric light that would make indoor use technically and economically feasible. In his forties, he had continued to dream big and put his winnings from the electric light business into the mining business. It had ended disappointingly, but he cannot be criticized for timidity. In his fifties, he did make another sizable bet. However, for this venture, pursuing the improvement of the battery for an electric car, he had financing from Ford that insulated him from personal risk. He continued to steer clear of risk in his sixties and seventies.

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

In China “Overwhelming Evidence of the Leaders’ “Moral Vulnerability””

Source of book image: http://media.npr.org/assets/bakertaylor/covers/t/the-peoples-republic-of-amnesia/9780199347704_custom-d21f4e2d0281b692c74781102e750ff1e27b7cc9-s6-c30.jpg

(p. 21) During the night of June 3-4, 1989, when the Chinese Army was slaughtering demonstrators in Tiananmen Square, Wang Nan, a young student, was shot in the head. As he lay dying at the side of the road, soldiers threatened to kill anyone, even some young doctors, who tried to help him. In the morning, finally dead, he was buried in a shallow grave nearby. A few days later, the smell of Wang Nan’s body was so great that it was dug up and moved to a hospital.

After 10 days, his mother, Zhang Xianling, was called to the hospital to identify her son’s body. It took eight months, in the face of official obstruction, for Zhang to uncover what had happened to her son. In 1998 she held a modest remembrance service on the spot where he had died. The next year, on that day, she was barred from leaving her apartment. When she met Louisa Lim, Zhang said she longed to go to the fatal place again to pour a libation on the ground and sprinkle flower petals. “However,” Lim observes, ”someone will always be watching her. A closed-circuit camera has been installed” and “trained on the exact spot where her son’s body was exhumed. . . . It is a camera dedicated to her alone, waiting for her in case she should ever try again to mourn her dead son.”
Until I read about that camera in “The People’s Republic of Amnesia,” I imagined, after decades of reporting from and about China, that nothing there could still shock me. As Lim contends, Zhang’s “simple act of memory is deemed a threat to stability.” Lim’s overwhelming evidence of the leaders’ “moral vulnerability,” together with her accounts of the amnesia of many Chinese, make hers one of the best analyses of the impact of Tiananmen throughout China in the years since 1989.

For the full review, see:
JONATHAN MIRSKY. “An Inconvenient Past.” The New York Times Book Review (Sun., MAY 25, 2014): 21.
(Note: ellipsis in original.)
(Note: the online version of the review has the date MAY 23, 2014.)

The book under review is:
Lim, Louisa. The People’s Republic of Amnesia: Tiananmen Revisited. New York: Oxford University Press, 2014.

“Tanks at the ready in Beijing on June 6, 1989, two days after the Tiananmen Square massacre.” Source of caption and photo: online version of the NYT review quoted and cited above.

If Inventors Were Allowed to Educate

(p. 228) Along with the home projector, the company introduced a central clearinghouse for used films, which offered customers a way of replenishing the family’s entertainment supply by using the postal service to swap titles with others for a nominal processing fee. Edison, however, wanted to use his projector not for entertainment but for education. For preschoolers, his idea was nothing less than brilliant. For teaching the alphabet, Edison explained in an interview, “suppose, instead of the dull, solemn letters on a board or a card you have a little play going on that the littlest youngster can understand,” with actors carrying in letters, hopping, skipping, turning somersaults. “Nothing like action–drama–a play that fascinates the eye to keep the attention keyed up.” (A prospectus for Sesame Street could not have made a better case.)

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.
(Note: italics in original)

Schulman Grants that Kochs “Have Sincere Political Views that Go Beyond Being Just a Cover for Their Companies’ Interest”

“The Koch brothers, from left: William, Charles, David and Frederick.” Source of caption and photo: online version of the NYT review quoted and cited below.

(p. 12) “Sons of Wichita” may strike some readers as surprisingly pro-Koch. . . . [Schulman] grants Charles and David two key concessions: They have sincere political views that go beyond being just a cover for their companies’ interest in lower taxes and fewer regulations, and many of their political activities have been right out in the open, rather than lurking in the shadows. He seems to be almost in awe of Charles, the most mysterious of the brothers, who runs Koch Industries by a system he devised called Market-Based Management. Summarizing, but not dissenting from, the views of Charles’s employees, Schulman calls him “a near-mythic figure, a man of preternatural intellect and economic prowess,” adding: “He is unquestionably powerful, but unfailingly humble; elusive, but uncomplicated; cosmopolitan, yet thoroughly Kansan.” It’s noteworthy, Schulman argues, that for decades the Koch family was definitely not welcome in the Republican Party. That they came to stand for Republicanism, at least in the minds of liberals, in 2010 and 2012 is testament to their persistence, to the weakening of the traditional party structures and to their success in making libertarianism a mainstream rather than a fringe ideology. “It’s a brilliant, extraordinary accomplishment,” Schulman quotes Rob Stein of the liberal Democracy Alliance as saying about the Kochs’ rise to influence.
. . .
Even the Tea Party movement is not entirely dependent on intravenous feeding from the Kochs or that other favorite liberal villain, Fox News. And elements of Koch-style libertarianism, connected to the interests of major donors, now live within the Democratic Party too — not just on social issues like same-sex marriage, but on economic and regulatory ones too. “Sons of Wichita” reminds us that political outcomes depend far more on ideas and organization, and the energy and persistence devoted to them, than they do on the balance of power between good guys and bad guys.

For the full review, see:
NICHOLAS LEMANN. “Billionaire Boys Club.” The New York Times Book Review (Sun., MAY 25, 2014): 12.
(Note: ellipses, and bracketed name, added.)
(Note: the online version of the review has the date MAY 23, 2014.)

The book under review is:
Schulman, Daniel. Sons of Wichita: How the Koch Brothers Became America’s Most Powerful and Private Dynasty. New York: Grand Central Publishing, 2014.

Source of book image: http://media.npr.org/assets/bakertaylor/covers/s/sons-of-wichita/9781455518739_custom-bd178f0c1a2667e448cf13ff7df2850774d77dd8-s6-c30.jpg

How Edison Brought Tears to the Eyes of Maria Montessori

(p. 221) Edison’s partial loss of hearing prevented him from listening to music in the same way as those with unimpaired hearing. A little item that appeared in a Schenectady, New York, newspaper in 1913 related the story that Edison supposedly told a friend about how he usually listened to recordings by placing one ear directly against the phonograph’s cabinet. But if he detected a sound too faint to hear in this fashion, Edison said, “I bite my teeth in the wood good and hard and then I get it good and strong.” The story would be confirmed decades later in (p. 222) Madeleine’s recollections of growing up. One day she came into the sitting room in which someone was playing the piano and a guest, Maria Montessori, was in tears, watching Edison listen the only way that he could, teeth biting the piano. “She thought it was pathetic,” Madeleine said, “I guess it was.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Federal Tax Reduction Fueled Craft Beer Revolution

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

(p. 6) The story of craft beer’s rise begins in 1965, when Fritz Maytag, an heir to the Maytag appliance fortune, bought and revived the Anchor Steam brewery in San Francisco, thus inspiring a generation of so-called home brewers to begin considering commercial ventures.
. . .
A 1976 federal tax reduction for small brewers fueled the industry’s growth.
. . .
For years, the greatest challenge for craft brewers was distribution — simply getting restaurants and grocery stores to sell their product. Most wholesale beer distributors, Mr. Hindy writes, were heavily reliant on the three megabreweries — Anheuser-Busch, Miller and Coors — and couldn’t be bothered to spend time pushing obscure brands whose makers rarely had enough money to advertise. In 1996, Augustus Busch III demanded that its distributors devote a “100 percent share of mind” to Busch products. That left most microbrewers to beg and wheedle the Miller and Coors distributors, a situation so frustrating that, in time, Mr. Hindy’s Brooklyn Brewery began distributing its own products.

For the full review, see:
BRYAN BURROUGH. “OFF THE SHELF; Craft Brewers, Finding a Better Seat at the Bar.” The New York Times, SundayBusiness Section (Sun., MAY 11, 2014): 6.
(Note: ellipses added.)
(Note: the online version of the review has the date MAY 10, 2014.)

The book under review is:
Hindy, Steve. The Craft Beer Revolution: How a Band of Microbrewers Is Transforming the World’s Favorite Drink. New York: Palgrave Macmillan, 2014.

Phonograph Allowed Middle Class to Bring the Show to Their “Castle,” Like Kings Already Could

(p. 218) Once Edison’s marketers squarely addressed the urban middle class, they devised advertising that made prospective customers feel as entitled to enjoy the pleasures of recorded music as anyone. “When the (p. 219) King of England wants to see a show, they bring the show to the castle and he hears it alone in his private theater.” So said an advertisement in 1906 for the Edison phonograph. It continued: “If you are a king, why don’t you exercise your kingly privilege and have a show of your own in your own house.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Government Regulations Favor Health Care Incumbents

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

(p. A11) The rise in U.S. health-care costs, to nearly 18% of GDP today from around 6% of GDP in 1965, has alarmed journalists, inspired policy wonks and left patients struggling to find empathy in a system that tends to view them as “a vessel for billing codes,” as the technologist Dave Chase has put it.

Enter Jonathan Bush, dyslexic entrepreneur, . . .
. . .
. . . , Mr. Bush touts technology as a driver of change. It has revolutionized the way we shop for books and select hotels, but health-care delivery has been stubbornly resistant. Mr. Bush notes that the number of people supporting each doctor has climbed to 16 today from 10 in 1990–half of whom, currently, are administrators handling the mounting paperwork. Astonishingly, as Mr. Bush observes, the government had to pay doctors billions of dollars, via the 2009 HITECH Act, to incentivize them to upgrade from paper to computers. Meanwhile, fast-food chains discovered computers on their own, because the market demanded it.
. . .
Let entrepreneurs loose on these challenges, Mr. Bush believes, and they will come up with solutions.
Mr. Bush identifies three major obstacles to the kinds of change he has in mind. First, large hospital systems leverage their market position to charge hefty premiums for basic services, then use the proceeds to buy more regional hospitals and local practices. “As big ones take over the small,” Mr. Bush laments, “prices shoot up. Choices vanish.” Second, government regulations, especially state laws, favor powerful incumbents, shielding “imaging centers and hospitals from competition.” Third, heath care suffers from a risk-avoidant culture. The maxim “do no harm,” Mr. Bush says, should not be an excuse for clinging to a flawed status quo.

For the full review, see:
David A. Shaywitz. “BOOKSHELF; A System Still in Need of Repair; Routine medical services can be done for less cost–one of many obvious realities that current health-care practices studiously ignore.” The Wall Street Journal (Mon., May 19, 2014): A11.
(Note: ellipses added.)
(Note: the online version of the review has the date May 18, 2014, and has the title “BOOKSHELF; Book Review: ‘Where Does It Hurt?’ by Jonathan Bush; Routine medical services can be done for less cost–one of many obvious realities that current health-care practices studiously ignore.”)

The book under review is:
Bush, Jonathan, and Stephen Baker. Where Does It Hurt?: An Entrepreneur’s Guide to Fixing Health Care. New York: Portfolio, 2014.