Category: Economics

Kodak Using Blockchain to Manage Digital Photo Property Rights

(p. B1) Shares of Eastman Kodak more than doubled after the company waded into the digital-currency world with plans to launch an initial coin offering.
Kodak on Tuesday [January 9, 2018] said the coin, KodakCoin, would be the backbone of a new platform that will help photographers license their work and track the unlicensed use of their images. The coin uses the technology behind bitcoin, called blockchain, to keep a digital ledger of the photographs.
. . .
“For many in the tech industry, ‘blockchain’ and ‘cryptocurrency’ are hot buzzwords, but for photographers who’ve long struggled to assert control over their work and how it’s used, these buzzwords are the keys to solving what felt like an unsolvable problem,” said Kodak CEO Jeff Clarke in a statement.
For the past several years, people have been experimenting with ways to use blockchain. At its essence, blockchain is an open record of transactions, maintained in an online ledger that is distributed across a network of computers, that cannot be tampered with. That makes it like an indelible time stamp, which could be useful in a case of copyright and digital-rights management.

For the full story, see:

Erik Holm and Paul Vigna. “Kodak Snaps Is Crypto-Moment.”The Wall Street Journal (Weds., Jan 10, 2018): B1-B2.
(Note: ellipsis, and bracketed date, added.)
(Note: the online version of the story has the date Jan 9, 2018, and has the title “Kodak Catches Crypto Fever.” The online version has two additional paragraphs between the last two paragraphs quoted above.)

“Without Amazon, We Wouldn’t Be Here”

(p. B1) KANATA, Ontario — Truth be told, the headquarters of Instant Pot don’t look much like a church.
But inside this sterile, gray office building on the outskirts of Ottawa, behind a door marked only by a small metal sign, a new religion has been born.
Its deity is the Instant Pot, a line of electric multicookers that has become an internet phenomenon and inspired a legion of passionate foodies and home cooks. These devotees — they call themselves “Potheads” — use their Instant Pots for virtually every kitchen task imaginable: sautéing, pressure-cooking, steaming, even making yogurt and cheesecakes. Then, they evangelize on the internet, using social media to sing the gadget’s praises to the unconverted.
. . .
(p. B5) I went to Kanata to get a peek behind the scenes of the Instant Pot phenomenon and meet its creator: Robert Wang, who invented the device and serves as chief executive of Double Insight, its parent company. What I found was a remarkable example of a new breed of 21st-century start-up — a homegrown hardware business with only around 50 employees that raised no venture capital funding, spent almost nothing on advertising, and achieved enormous size primarily through online word-of-mouth. It is also a testament to the enormous power of Amazon, and its ability to turn small businesses into major empires nearly overnight.
. . .
In 2010, after several months of sluggish sales in and around Ontario, Mr. Wang listed the Instant Pot on Amazon, where a community of food writers eventually took notice. Vegetarians and paleo dieters, in particular, were drawn to the device’s pressure-cooking function, which shaved hours off the time needed to cook pots of beans or large cuts of meat.
Sensing viral potential, Instant Pot sent test units to about 200 influential chefs, cooking instructors and food bloggers. Reviews and recipes appeared online, and sales began to climb.
. . .
Mr. Wang credits the device’s technological advances — most notably, a group of sensors that keep the cooker from overheating or exploding under pressure.
Instant Pot’s internet fandom also gives it a leg up. The food bloggers behind popular recipe sites like Nom Nom Paleo were early converts to electric pressure-cooking, and cookbook authors took note of the device’s cult appeal. Mr. Wang says that more than 1,500 Instant Pot cookbooks have been written, including several of Amazon’s current best-sellers.
Amazon has played a particularly large role in Instant Pot’s rise. Early on, Instant Pot joined the “Fulfillment by Amazon” program, in which Amazon handles the packing and shipping of a seller’s products in exchange for a cut of each item sold. Eventually, Instant Pot sent Amazon wholesale shipments directly from factories in China, and Amazon began promoting the machines in its major annual sales. At one point, more than 90 percent of Instant Pot’s sales came through Amazon.
“Without Amazon, we wouldn’t be here,” Mr. Wang said.

For the full story, see:
KEVIN ROOSE. “The Shift; Instant Pot’s Inner Sanctum.” The New York Times (Mon., December 18, 2017): B1 & B5.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 17, 2017, and has the title “The Shift; Inside the Home of Instant Pot, the Kitchen Gadget That Spawned a Religion.”)

Trying to Explain Low AI Productivity Gains as Due to Slow Adapting and Old Habits

(p. A2) In a recent paper Erik Brynjolfsson and Daniel Rock of the Massachusetts Institute of Technology and Chad Syverson of the University of Chicago note electric motors based on alternating current were introduced in the late 1800s but even by 1919 half of U.S. factories still weren’t electrified. The integrated circuit was commercialized in the 1960s yet 25 years later computers still represented just 5% of the value of all business equipment. Indeed, since the introduction of computers labor productivity has behaved much as it did after the introduction of electric motors and the internal combustion engine.
The authors blame these lags on the cost and time it takes for businesses to adapt to new technologies, obstacles they see at work today. Online shopping came along in the 1990s but retailers struggled to adapt business processes to the internet. They needed to build complementary infrastructure such as fulfillment centers, and, the authors note, customers had to adapt their habits, as well.
. . .
. . . perhaps the U.S. is at a point when technology and an economy growing solidly with low unemployment become mutually reinforcing. “Entrepreneurs are more willing to take risks, including investments in new technologies and new business models when the economy is running hotter,” says Mr. Brynjolfsson. “This will speed up the adoption of the kinds of conventions needed to take full advantage of artificial intelligence and other new technologies,” he said.

For the full commentary, see:
Greg Ip. ”CAPITAL ACCOUNT; Technology-Driven Boom Is Finally Coming.” The Wall Street Journal (Thurs., December 28, 2017): A2.
(Note: ellipses added.)
(Note: the online version of the commentary has the date Dec. 27, 2017, and has the title ”CAPITAL ACCOUNT; A Tech-Driven Boom Is Coming; Please Be Patient.”)

The Brynjolfsson, Rock and Syverson paper, mentioned above, is:
Brynjolfsson, Erik, Daniel Rock, and Chad Syverson. “Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics.” NBER Working Papers # 24001. National Bureau of Economic Research, Inc., Nov. 2017.

Apple Orchard Must Focus on “Placating a Government Regulator”

(p. A1) ALTAMONT, N.Y. — For eight weeks every fall, Indian Ladder Farms, a fifth-generation family operation near Albany, kicks into peak season.
The farm sells homemade apple pies, fresh cider and warm doughnuts. Schoolchildren arrive by the busload to learn about growing apples. And as customers pick fruit from trees, workers fill bins with apples, destined for the farm’s shop and grocery stores.
This fall, amid the rush of commerce — the apple harvest season accounts for about half of Indian Ladder’s annual revenue — federal investigators showed up. They wanted to check the farm’s compliance with migrant labor rules and the Fair Labor Standards Act, which sets pay and other requirements for workers.
Suddenly, the small office staff turned its focus away from making money to placating a government regulator.
The investigators arrived on a Friday in late September and interviewed the farm’s management and a group of laborers from Jamaica, who have special work visas. The investigators hand delivered a notice and said they would be back the following week, when they asked to have 22 types of records available. The request included vehicle registrations, insurance documents and time sheets — reams of paper in all.
Over the next several days, the Ten Eyck family, which owns the farm, along with the staff devoted about 40 hours to serving the investigators, who visited three times before closing the books.
“It is terribly disruptive,” said Peter G. Ten Eyck II, 79, who runs the farm along with a daughter (p. A14) and son. “And the dimension that doesn’t get mentioned is the psychological hit: They are there to find something wrong with you. And then they are going to fine you.”
This is life on the farm — and at businesses of all sorts. With thick rule books laying out food safety procedures, compliance costs in the tens of thousands of dollars and ever-changing standards from the government and industry groups, local produce growers are a textbook example of what many business owners describe as regulatory fatigue.
Over the past five decades, Mr. Ten Eyck said, there has been an unending layering of new rules and regulations on his farm of over 300 acres, as more government agencies have taken an interest in nearly every aspect of growing food, and those agencies already involved have become even more so.
Now, a new rule is going into effect that will significantly expand the oversight of one regulator, the Food and Drug Administration, at the farm.
. . .
Researchers at the Mercatus Center, a conservative-leaning economic think tank at George Mason University, say apple orchards are facing a growing federal regulatory burden. Quantifying that burden is difficult, but using a computer algorithm that analyzes regulations through keyword searches, researchers from the center’s RegData Project estimated the federal regulatory code contains 12,000 restrictions and rules on orchards, up from about 9,500, or an increase of 26 percent, from a decade ago.
Many of those rules apply to other businesses as well, and some restrict the actions of government regulators, not the orchard owners. Using the Mercatus Center data, and screening for such exceptions, The New York Times identified at least 17 federal regulations with about 5,000 restrictions and rules that were relevant to orchards.
. . .
. . . regulation streamlining is a winning message across the political spectrum when it comes to making life easier for small businesses, according to more than 20 interviews with business owners and others in the produce industry.
Industry by industry, small businesses have been lobbying governments — from town health departments to federal cabinet agencies — to simplify rules and eradicate redundancy.
. . .
The grievances relate largely to the sheer amount of time and money that it takes to comply, and what farmers see as a disconnect between them — the rule followers — and the rule makers, who Mr. Ten Eyck describes as “people looking at a computer screen dreaming up stuff.”
“The intentions are not bad,” he said. “It is just that one layer after another gets to be — trying to top the people before them.”

For the full story, see:
STEVE EDER. “One Apple Orchard and 5,000 Government Rules.” The New York Times (Thurs., December 28, 2017): A1 & A14-A15.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 27, 2017, and has the title “When Picking Apples on a Farm With 5,000 Rules, Watch Out for the Ladders.”)

“The Transforming Power of the Individual Will”

(p. A10) “These deep transformations have started and will continue with the same force, the same rhythm, the same intensity in 2018,” the French president told his compatriots in his New Year’s Eve greetings a few days before.
Mr. Macron was hinting at the real disruptions he has brought about in French political life — in employment and fiscal policy so far, with other big jolts promised soon. Remarkably in so hidebound a country he is getting away with it.
. . .
Mr. Macron imbibed from his mentor, the late philosopher Paul Ricoeur, a belief in the transforming power of the individual will. As proof, the young president can point to his own quick rise to the top, a stunning success that undergirds many of his pronouncements.
Similarly, the changes he has pushed through so far — like his lightening of the mammoth French labor code, with barely a whimper from the opposition — only buttress the narrative of individual determination, which he now hopes to infuse in his fellow citizens.
It is an unusual position for a French politician, who for generations have emphasized the protective power of the state — and the proof of any success will come only with a significant drop in the stubborn 10-percent jobless rate, elusive so far. But already surveys show higher levels of confidence among business executives than have been seen in many years.

For the full story, see:
ADAM NOSSITER. “French President Opens Year With Scolding for Journalists.” The New York Times (Sat., JAN. 6, 2018): A10.
(Note: ellipsis added.)
(Note: the online version of the story has the date JAN. 5, 2018, and has the title “Macron Opens Year Pulling No Punches With Journalists, or Anyone.”)

Automation Is “About Doing More with the People We’ve Got”

(p. A1) Mr. Persson, 35, sits in front of four computer screens, one displaying the loader he steers as it lifts freshly blasted rock containing silver, zinc and lead. If he were down in the mine shaft operating the loader manually, he would be inhaling dust and exhaust fumes. Instead, he reclines in an office chair while using a joystick to control the machine.
He is cognizant that robots are evolving by the day. Boliden is testing self-driving vehicles to replace truck drivers. But Mr. Persson assumes people will always be needed to keep the machines running. He has faith in the Swedish economic model and its protections against the torment of joblessness.
“I’m not really worried,” he says. “There are so many jobs in this mine that even if this job disappears, they will have another one. The company will take care of us.”
. . .
(p. A8) The Garpenberg mine has been in operation more or less since 1257. More than a decade ago, Boliden teamed up with Ericsson, the Swedish telecommunications company, to put in wireless internet. That has allowed miners to talk to one another to fix problems as they emerge. Miners now carry tablet computers that allow them to keep tabs on production all along the 60 miles of roads running through the mine.
“For us, automation is something good,” says Fredrik Hases, 41, who heads the local union chapter representing technicians. “No one feels like they are taking jobs away. It’s about doing more with the people we’ve got.”

For the full story, see:
PETER S. GOODMAN. “Sweden Adds Human Touch to a Robotic Future.” The New York Times (Thurs., December 28, 2017): A1 & A8.
(Note: ellipsis added.)
(Note: the online version of the story has the date DEC. 27, 2017, and has the title “The Robots Are Coming, and Sweden Is Fine.”)

Is a Michelin Star the Best Metric of Good Food?

(p. A4) MONTCEAU-LES-MINES, France — It is like giving up your Nobel, rejecting your Oscar, pushing back on your Pulitzer: Jérôme Brochot, a renowned and refined chef, decided to turn in his Michelin star.
He is renouncing the uniquely French distinction that separates his restaurant from thousands of others, the lifetime dream of hundreds. But Mr. Brochot’s decision was not a rash one, born of arrogance, ingratitude or spite. Rather, it was for a prosaic, but still important, reason: he could no longer afford it.
. . .
Even in a region famed for its culinary traditions, this declining old mining town deep in lower Burgundy could not sustain a one-star Michelin restaurant. Mr. Brochot, a youthful-looking 46, had gambled on high-end cuisine in a working-class town and lost.
. . .
Already Mr. Brochot’s strategy appears to be working. He has cut his prices and is offering a more down-to-earth cuisine of stews, including the classic blanquette de veau, and serving cod instead of the more expensive sea bass.
It had depressed him deeply, he said, to have to throw away costly bass and turbot, like gold even in France’s street markets, at the end of every sitting because his customers couldn’t afford it. “There was a lot of waste,” he said.
“Since we changed the formula, we’ve gotten a lot more people,” Mr. Brochot said. Above all, the effect has been psychological. “In the heads of people, a one-star, it’s the price,” he said.
On a recent Friday afternoon, most of the tables had diners, including Didier Mathus, the longtime former mayor, a Socialist.
. . .
“Maybe the star scared people,” Mr. Mathus said. “I understand. He’s saying, ‘Don’t be scared to come here.’ Here, it’s simple people, with modest incomes.”

For the full story, see:
ADAM NOSSITER. “Rejected Honor Reflects Hardships of ‘the Other France’.” The New York Times (Thurs., December 28, 2017): A4.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 27, 2017, and has the title “Chef Gives Up a Star, Reflecting Hardship of ‘the Other France’.”)

Health Info from Apple Watches Will Allow Patients to “Take More Control”

(p. B1) SAN FRANCISCO — In the last months of Steve Jobs’s life, the Apple co-founder fought cancer while managing diabetes.
Because he hated pricking his finger to draw blood, Mr. Jobs authorized an Apple research team to develop a noninvasive glucose reader with technology that could potentially be incorporated into a wristwatch, according to people familiar with the events, who asked not to be identified because they were not authorized to speak on behalf of the company.
. . .
In September [2017], Apple announced that the Apple Watch would no longer need to be tethered to a smartphone and would become more of a stand-alone device. Since then, a wave of device manufacturers have tapped into the watch’s new features like cellular connectivity to develop medical accessories — such as an electrocardiogram for monitoring heart activity — so people can manage chronic conditions straight from their wrist.
. . .
(p. B4) A digital health revolution has been predicted for years, of course, and so far has been more hype than progress. But the hope is that artificial intelligence systems will sift through the vast amounts of data that medical accessories will collect from the Apple Watch and find patterns that can lead to changes in treatment and detection, enabling people to take more control of how they manage their conditions instead of relying solely on doctors.
Vic Gundotra, chief executive of AliveCor, a start-up that makes portable electrocardiograms, said this would put patients on a more equal footing with doctors because they would have more information on their own conditions.
“It’s changing the nature of the relationship between patient and doctor,” he said, adding that doctors will no longer be “high priests.”
. . .
Apple is also looking at potentially building an electrocardiogram into future models of the Apple Watch, according to a person familiar with the project, who spoke on the condition of anonymity because the details were confidential. It is unclear whether the EKG development, earlier reported by Bloomberg, would be introduced; such a product would most likely require F.D.A. clearance.
Separately, Apple is continuing research on a noninvasive continuous glucose reader, according to two people with knowledge of the project. The technology is still considered to be years away, industry experts said.
The current solution used by many diabetics is also coming to the Apple Watch. Dexcom, a maker of devices measuring blood sugar levels for diabetics, said it was awaiting F.D.A. approval for a continuous glucose monitor to work directly with the Apple Watch. Continuous glucose monitors use small sensors to pierce the skin to track blood sugar levels and relay those readings through a wireless transmitter.

For the full story, see:
DAISUKE WAKABAYASHI. “As Wearable Devices Evolve, The Apple Watch Offers an EKG.” The New York Times (Weds., December 27, 2017): B1 & B4.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the story has the date DEC. 26, 2017, and has the title “Freed From the iPhone, the Apple Watch Finds a Medical Purpose.”)

“Reject the Dark Side: Free the Net!”

(p. C5) HEALY Matt, what’s a culture/politics tidbit most people don’t know?
FLEGENHEIMER Washington’s most prolific consumer of pop culture is very likely … Ted Cruz. Amateur “S.N.L.” historian, ’80s movie buff and instigator of a Twitter feud with Mark Hamill over net neutrality. He explained the meaning of “Star Wars” to Luke Skywalker. It was very Cruz: @HammillHimself Luke, I know Hollywood can be confusing, but it was Vader who supported govt power over everything said & done on the Internet. That’s why giant corps (Google, Facebook, Netflix) supported the FCC power grab of net neutrality. Reject the dark side: Free the net! Ted Cruz 12:25 PM – Dec 17, 2017
ROGERS ’80s movie buff?
FLEGENHEIMER “The Princess Bride”! Life on the campaign trail with Ted Cruz was basically months of “Princess Bride” imitations with an occasional discussion of Obamacare.

For the full commentary, see:
MATT FLEGENHEIMER and KATIE ROGERS. “‘S.N.L.’ Kimmel. Covfefe.” The New York Times (Weds., December 27, 2017): C1 & C5.
(Note: ellipsis, bold and caps, in original.).
(Note: the online version of the commentary has the date DEC. 26, 2017, and has the title “Kimmel, Covfefe, ‘Wonder Woman’: Washington on Pop Culture in 2017.” The commentary/discussion is credited to Flegenheimer and Rogers, but Patrick Healy also participated. There are a few minor differences in how the print and online versions present the Cruz tweet. The quote above, follows the print version.)

Tax Overhaul “Armageddon”

(p. A19) To travel the liberal byways of social media over recent weeks was to learn that Donald Trump was on the precipice of axing Robert Mueller and was likely to use the days just before Christmas, when we were distracted by eggnog and mistletoe, to lower the blade.
Christmas has come. Christmas has gone. Mueller has not.
To listen to Nancy Pelosi and other Democratic leaders, the tax overhaul that Trump just signed into law is no mere plutocratic folly. It’s “Armageddon” (Pelosi’s actual word). Their opposition is righteous, but how will millions of voters who notice smaller withholdings from their paychecks and more money in their pockets square that seemingly good fortune with such prophecies of doom on a biblical scale?
Some of these Americans may decide that the prophets aren’t to be trusted — and that the president isn’t quite the pestilence they make him out to be.

For the full commentary, see:
Bruni, Frank. “The Dangers Of Trump Delirium.” The New York Times (Weds., December 27, 2017): A19.
(Note: the online version of the commentary has the date DEC. 26, 2017, and has the title “The End of Trump and the End of Days.”)

Some Elevator Operator Jobs Remain

(p. 10) There are 69,381 passenger elevators in this vertically obsessed city, and nearly all of them promise a journey about as exotic and exciting as making toast. You get in, you push a button, the doors open a few seconds later at your destination.
But there remain quite a few machines, manually controlled and chauffeur-driven, where climbing aboard is more like taking a short trip on the Orient Express.
. . .
Most of the elevators are in residential buildings, but a few war horses serve heavy duty in commercial complexes.
Collectively they form a hidden museum of obsolete technology and anachronistic employment, a network of cabinets of wonder staffed round the clock. No one knows how many there are, exactly. The city Department of Buildings offered a list of more than 600, but spot checks indicated that most had gone push-button long ago. On the other hand, officials at Local 32BJ of the Service Employees International Union, to which most doormen and elevator operators belong, said they knew of only one or two.
A non-exhaustive field survey this fall turned up 53 buildings with manual passenger elevators. There are undoubtedly dozens more, but probably not hundreds.
Why they still exist in such relative profusion, when the city is down to its last few seltzer men and its final full-time typewriter repair shop, when replacement parts are no longer made and must be machined by hand, is a question with many answers. But sentiment plays a large part.
. . .
Push-button elevators had actually been around since the 1890s, but were not practical for larger buildings. They were slow. Initially they could make only one stop per trip. Later, they could make multiple stops, but only in the order the buttons were pressed.
It took until 1950 for Otis to perfect a push-button system smart enough to handle the traffic and shifting demands for service over the course of the day in a multi-elevator building. The company’s Autotronic system, Otis boasted in advertisements, “minimizes the human element” and “gives tenants a sprightly feeling of independence.”
The elevator man’s fate was sealed.
Almost.

For the full story, see:
ANDY NEWMAN. “Riding a Time Capsule to Apt. 8G.” The New York Times, First Section (Sun., DEC. 17, 2017): 10.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 15, 2017, and has the title “Riding a Time Capsule to Apartment 8G.”)