Category: Economics of Technology

Floating Buildings Are Resilient If Global Warming Rises

(p. B6) More developers are building waterborne structures. Floating buildings can alleviate housing shortages in major cities at a time when land is scarce and restrictive zoning makes it hard to build up, said Koen Olthuis, whose Netherlands-based architecture firm Waterstudio specializes in floating structures.

For flood-prone cities like Miami, structures that rise and sink with the sea offer an alternative to waterfront construction that looks increasingly vulnerable to rising sea levels. “Climate change has definitely helped us spread our designs and ideas,” Mr. Olthuis said.

. . .

In Rotterdam’s harbor, developer RED Company is building a 54,000-square-foot, three-story, wooden, floating office building. The project, which will serve as the new headquarters of the Global Center on Adaptation, will be energy-neutral and feature solar panels and a floating swimming pool, according to the company.

GCA helps countries, companies and organizations to adapt to climate change. The center’s CEO Patrick Verkooijen said that Rotterdam is threatened by rising sea levels and that the “completely self sufficient floating office is one of many examples of how we must adapt to the realities of climate change to ensure our infrastructure is not only resilient but future proof.”

. . .

Some hope the trend will ultimately lead to floating cities. The Seasteading Institute advocates for communities in international waters as “startup societies” that can make up their own rules. It was founded by investor Peter Thiel and Patri Friedman, the grandson of Nobel Prize-winning economist Milton Friedman.

For the full story, see:

Konrad Putzier. “Developers Float Answer to Floods.” The Wall Street Journal (Wednesday, February 19, 2020): B6.

(Note: ellipses added.)

(Note: the online version of the story has the date Feb. 18, 2020, and has the title “Are Floating Hotels, Office Buildings the Answer to Rising Sea Levels?”)

A Dynamic Industry, Like Wireless, Counsels “Greater Caution in Judicial Intervention”

(p. A13) Donald Trump’s administration likes living dangerously on 5G. It pulled an unlikely victory out of its hat when a judge approved the wireless merger of Sprint and T-Mobile that’s been in the works for nearly a decade. The judge gave the OK, he said, because his crystal ball (his words) was just as good or bad as those of the plaintiffs and defendants.

His most sensible and telling observation came on page 148, where he suggested that a dynamic and rapidly changing industry like wireless counseled “greater caution in judicial intervention.”

For the full commentary, see:

Holman W. Jenkins, Jr. “Trump Outswamps the 5G Swamp.” The Wall Street Journal (Wednesday, February 19, 2020): A13.

(Note: the online version of the commentary has the date Feb. 18, 2020, and has the title “YOUR HEALTH; Here’s Why Health Experts Want to Stop Daylight-Saving Time.” Where there is a difference in wording in the first quoted paragraph, the online version is used.)

Facebook’s Story, Based on Zuckerberg Interviews

(p. 15) In 2011, Levy, now the editor at large at Wired, wrote an extensive history of Google. To report the book, he secured liberal access to executives at Google and was allowed to soak up company culture by wandering around its corporate campus. He employed much the same strategy for “Facebook.” Zuckerberg granted Levy numerous interviews over a three-year period, and gave him “unprecedented access” to company executives.

The result is a work that recounts the company’s narrative mainly through the lens of its central figures.

. . .

Not for nothing is the book subtitled “The Inside Story.” Levy, who first met Zuckerberg in 2006, takes readers inside his college dorm suite; inside the late-night coding and cavorting at the company’s first home base in Palo Alto; inside meetings with the tech moguls who were the start-up’s first major investors; inside design choices that fueled the social network’s popularity; and inside Zuckerberg’s head.

For the full review, see:

Natasha Singer. “Power Trip.” The New York Times Book Review (Sunday, March 15, 2020): 15.

(Note: ellipsis added.)

(Note: the online version of the review has the date Feb. 25 [sic], 2020, and has the title “‘Facebook: The Inside Story’ Offers a Front-Row Seat on Voracious Ambition.”)

The book discussed in the passages quoted above, is:

Levy, Steven. Facebook: The Inside Story. New York: Blue Rider Press, 2020.

Remote Workers Are 13% More Efficient Than Office-Based Workers

(p. B4) Fans of remote work often cite studies showing that people who work from home are more productive, like a 2014 study led by the Stanford professor Nicholas Bloom. The study examined remote workers at a Chinese travel agency and found that they were 13 percent more efficient than their office-based peers.

For the full commentary, see:

Kevin Roose. “THE SHIFT; Work From Home? Think Again.” The New York Times (Thursday, March 12, 2020): B1 & B4.

(Note: the online version of the commentary has the date March 10, 2020, and has the title “THE SHIFT; Sorry, but Working From Home Is Overrated.”)

The paper mentioned in the passages quoted above, is:

Bloom, Nicholas, James Liang, John Roberts, and Zhichun Jenny Ying. “Does Working from Home Work? Evidence from a Chinese Experiment.” The Quarterly Journal of Economics 130, no. 1 (Feb. 2014): 165-218.

“Entrepreneur Sent Our Words Across an Ocean”

Cyrus Field is described as a “project entrepreneur” in my Openness to Creative Destruction book. In the op-ed linked-to below, I celebrate his achievement.

My book, mentioned above, is:

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

Is Jeff Bezos Still a “Project Entrepreneur”?

In my Openness to Creative Destruction: Sustaining Innovative Dynamism, I suggest that different innovative entrepreneurs have different motives. Some mainly want money for its own sake, some mainly want fame, some mainly want to win the competition. Then there are those who mainly want to bring their project into the world. These are the project entrepreneurs, who often sacrifice for their project, forgoing conspicuous consumption in order to “make a ding in the universe.” (The phrase is due to Steve Jobs.) In my book I give Walt Disney as one example, and Jeff Bezos as another. Was I wrong? Or has Bezos changed? Or is there some other way to account for what looks like Bezos’s conspicuous consumption, as described below?

(p. B4) The national housing market has cooled, but in Los Angeles the ultrarich are still shattering price records. An heiress to the Formula One racing empire sold her home for $119.75 million last July. In December, Lachlan Murdoch paid $150 million for a home in Bel Air.

The latest buyer at the top: Jeff Bezos, the Amazon chief and world’s richest person.

Setting a new high for a home sold in California, Mr. Bezos is paying $165 million for a Beverly Hills estate owned by David Geffen, the media mogul and co-founder of DreamWorks, according to two people familiar with the purchase.

That wasn’t all. In a separate transaction, Bezos Expeditions, which oversees The Washington Post and Mr. Bezos’ charitable foundation, is buying 120 undeveloped acres in Beverly Hills for $90 million, the two people said.

For the full story, see:

Candace Jackson. “Bezos Is Setting Record By Paying $165 Million To Buy Geffen’s Estate.” The New York Times (Saturday, February 15, 2020): B4.

(Note: the online version of the story has the date Feb. 14, 2020, and has the title “Jeff Bezos Buying $165 Million Estate, a California Record.”)

My book is:

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

Thiel Advises Zuckerberg to Defend Free Speech

(p. A5) Facebook Inc.’s senior leadership is increasingly divided over how to address criticism of the company’s effect on U.S. politics, with board member and billionaire investor Peter Thiel serving as an influential voice advising CEO Mark Zuckerberg not to bow to public pressure, according to people familiar with the matter.

One flashpoint of late: political advertisements. Mr. Thiel has argued that Facebook should stick to its controversial decision, announced in September [2019], to continue accepting them and to not fact-check those from politicians, the people said.

. . .

Some of Mr. Thiel’s views are shared by others within Facebook, including on political ads, with many current and former executives advising Mr. Zuckerberg that the company shouldn’t be in the position of deciding what claims are accurate, people familiar with the matter said.

. . .

Mr. Zuckerberg has long valued Mr. Thiel’s advice. Some people close to both men described their current relationship as an alliance, based in part on their long history together.

Mr. Thiel, 52 years old, was the first outside investor in Facebook, and ultimately made more than $1 billion on his stake. Early on, Mr. Thiel advised Mr. Zuckerberg, now 35, to focus on growing the Facebook platform’s user base rather than on making money, contrarian advice at the time that laid the groundwork for Facebook’s riches today. Mr. Thiel and his funds have since sold off most of their Facebook shares.

. . .

Mr. Zuckerberg and Chief Operating Officer Sheryl Sandberg have said repeatedly that they value ideological diversity on the board, although that view isn’t shared by all of the company’s workforce.

“Mark is friends with Peter Thiel and a lot of Republicans,” said a former Facebook employee who worked in its political group. “It’s a reality people aren’t willing to accept.”

For the full story, see:

Emily Glazer, Deepa Seetharaman and Jeff Horwitz. “Political Divisions Roil Facebook.” The Wall Street Journal (Wednesday, December 18, 2019): A5.

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

(Note: the online version of the story has the date Dec. 17, 2019, and has the title “Peter Thiel at Center of Facebook’s Internal Divisions on Politics.” The last sentence quoted above appears in the online version, but not in the print version, of the article.)

In Last Decade, Extreme Poverty in World Fell from 18.2% to 8.6%

(p. A15) The 2010s have been the best decade ever. The evidence is overwhelming. Start with the United Nations Development Report. Framed as a warning about inequality, it plays down the good news: “The gap in basic living standards is narrowing, with an unprecedented number of people in the world escaping poverty, hunger and disease.”

The World Bank reports that the world-wide rate of extreme poverty fell more than half, from 18.2% to 8.6%, between 2008 and 2018. Last year the World Data Lab calculated that for the first time, more than half the world’s population can be considered “middle class.”

. . .

Rich countries use less aluminum, nickel, copper, steel, stone, cement, sand, wood, paper, fertilizer, water, crop acreage and fossil fuel every year, as Andrew McAfee documents in “More From Less.” Consumption of 66 out of 72 resources tracked by the U.S. Geological Survey is now declining.

For the full commentary, see:

Johan Norberg. “The 2010s Have Been Amazing.” The Wall Street Journal (Tuesday, December 17, 2019): A15.

(Note: ellipsis added.)

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

The commentary is related to the author’s book:

Norberg, Johan. Progress: Ten Reasons to Look Forward to the Future. London, UK: Oneworld Publications, 2016.

The book by McAfee, mentioned in the commentary, is:

McAfee, Andrew. More from Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources―and What Happens Next. New York: Scribner, 2019.

OUP Offers Free Download of Chap. 9: “Innovation Bound or Unbound by Culture and Institutions”

Oxford University Press (OUP) has created a list of 6 books they recommend on business innovation. If you follow the link below, you can download a free PDF of Chapter 9 (“Innovation Bound or Unbound by Culture and Institutions”) of my Openness to Creative Destruction: Sustaining Innovative Dynamism. Alas, I think the free download is only available through February 29, 2020. (Chapter 9 is not my favorite chapter, but free is free;)

My book is:

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