Category: Economics

The Ship that Held the Antikythera Mechanism Was Greek, Not Roman

(p. A12) A bronze statue’s orphaned arm. A corroded disc adorned with a bull. Preserved wooden planks. These are among the latest treasures that date back to the dawn of the Roman Empire, discovered amid the ruins of the Antikythera shipwreck, a sunken bounty off the coast of a tiny island in Greece.
. . .
For decades people referred to it as a Roman shipwreck, like in Jacques Cousteau’s documentary “Diving for Roman Plunder,” but the team’s findings since 2012 — such as a chemical analysis of lead on the ship’s equipment that trace it back to northern Greece and the personal possessions they found with Greek names etched on them — are changing that narrative, Dr. Foley said. “It’s starting to look an awful lot like a Greek-built, Greek-crewed ship, not a Roman-Italian vessel.”

For the full story, see:
NICHOLAS ST. FLEUR. “A Bronze Arm Points to More Treasure Below.” The New York Times (Sat., OCT. 7, 2017): A12.
(Note: ellipsis added.)
(Note: the online version of the story has the date OCT. 5, 2017, and has the title “Bronze Arm Found in Famous Shipwreck Points to More Treasure Below.”)

On Private Property, Innovator “Can Try New Ideas Without as Much Red Tape”

(p. B1) SAN JOSE, Calif. — Molly Jackson, an 82-year-old retired nurse, was sitting in the back seat of a self-driving taxi when the vehicle jerked to a halt at a crossing as its computer vision spotted an approaching golf cart.
When the vehicle, a modified Ford Fusion developed by a start-up named Voyage, started to inch forward, it abruptly stopped again as the golfers pressed ahead and cut in front of the car.
Ms. Jackson seemed unfazed by the bumpy ride. As a longtime resident of the Villages Golf and Country Club, a retirement community in San Jose, Calif., she knew all about aggressive golf cart drivers.
“I like that; we made a good stop there,” Ms. Jackson said. “I stop for them. They say we don’t have to, but I do.”
. . .
The speed limit, just 25 miles an hour, helps reduce the risk if something goes wrong. And because it is private property, the company does not have to share ride information with regulators and it can try new ideas without as much red tape.
(p. B6) Cars that can drive themselves could be a great benefit to older people. Residents at the Villages say that once people stop driving, they often pull back from activities and interacting with friends.

For the full story, see:
DAISUKE WAKABAYASHI. “Where Cars Brake for Golf Carts.” The New York Times (Thurs., OCT. 5, 2017): B1 & B6.
(Note: ellipses added.)
(Note: the online version of the story has the date OCT. 4, 2017, and has the title “Where Driverless Cars Brake for Golf Carts.”)

Can “Radical Transparency” Work “in Today’s Polarized and Litigious World”?

(p. B1) In 1993, Ray Dalio, the chairman of what is today the largest hedge fund in the world, Bridgewater Associates, received a memo signed by his top three lieutenants that was startlingly honest in its assessment of him.
It was a performance review of sorts, and not in a good way. After mentioning his positive attributes, they spelled out the negatives. “Ray sometimes says or does things to employees which makes them feel incompetent, unnecessary, humiliated, overwhelmed, belittled, pressed or otherwise bad,” the memo read. “If he doesn’t manage people well, growth will be stunted and we will all be affected.”
To Mr. Dalio, the message was both devastating and a wake-up call. His reaction: “Ugh. That hurt and surprised me.”
That moment helped push Mr. Dalio to rethink how he approached people and to begin developing a unique — and sometimes controversial — culture inside his firm, one based on a series of “principles” that place the idea of “radical transparency” above virtually all else.
. . .
(p. B5) Of course, the larger question is whether Mr. Dalio’s version of utopia — a place where employees feel comfortable offering blunt and in some cases brutal feedback — can exist outside Bridgewater’s controlled environment of mostly self-selecting individuals who either embrace the philosophy or quickly exit. Given the intense environment, as you might expect, there are horror stories of employees who have left in tears. Turnover among new employees is high.
Mr. Dalio’s critics — and there are many — say his principles offer permission to be verbally barbaric, and they question whether the $160 billion firm’s success is a product of such “radical transparency” or whether he can afford such a wide-ranging social experiment simply because the firm is so financially successful.
In truth, it is hard to imagine how harsh individual critiques in the workplace can work at many other organizations in today’s polarized and litigious world, where people are increasingly looking for “safe spaces” and those who say they are offended by a particular argument are derided as “fragile snowflakes.”

For the full commentary, see:
Sorkin, Andrew Ross. “DEALBOOK; Bridgewater’s Ray Dalio Dives Deeper Into the ‘Principles’ of Tough Love.” The Wall Street Journal (Sat., Sept. 5, 2017): B1 & B5.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Sept. 4, 2017, and has the title, “DEALBOOK; Bridgewater’s Ray Dalio Dives Deeper Into the ‘Principles’ of Tough Love.” )

The Dalio book, discussed above, is:
Dalio, Ray. Principles: Life and Work. New York: Simon & Schuster, 2017.

“There Comes a Time When You Get Tired of Being a Slave”

(p. A1) RIO DE JANEIRO — In a rare act of collective defiance, scores of Cuban doctors working overseas to make money for their families and their country are suing to break ranks with the Cuban government, demanding to be released from what one judge called a “form of slave labor.”
Thousands of Cuban doctors work abroad under contracts with the Cuban authorities. Countries like Brazil pay the island’s Communist government millions of dollars every month to provide the medical services, effectively making the doctors Cuba’s most valuable export.
But the doctors get a small cut of that money, and a growing number of them in Brazil have begun to rebel. In the last year, at least 150 Cuban doctors have filed lawsuits in Brazilian courts to challenge the arrangement, demanding to be treated as independent contractors who earn full salaries, not agents of the Cuban state.
“When you leave Cuba for the first time, you discover many things that you had been blind to,” said Yaili Jiménez Gutierrez, one of the doctors who filed suit. “There comes a time when you get tired of being a slave.”
. . .
(p. A10) . . . , Dr. Jiménez, 34, found the work rewarding, but also began to harbor feelings of resentment.
“You are trained in Cuba and our education is free, health care is free, but at what price?” she said. “You wind up paying for it your whole life.”
. . .
“We keep one another strong,” said Dr. Jiménez, who says she has been unemployed since being fired in June and is now barred from re-entering Cuba for eight years.
Dr. Álvarez and her husband were among the lucky ones to keep their jobs and get what amounted to a huge pay raise. They also managed to bring their children to Brazil.
“It’s sad to leave your family and friends and your homeland,” she said. “But here we’re in a country where you’re free, where no one asks you where you’re going, or tells you what you have to do. In Cuba, your life is dictated by the government.”

For the full story, see:
ERNESTO LONDOÑO. “‘Slave Labor'”: Cuban Doctors Rebel in Brazil.” The New York Times (Fri., SEPT. 29, 2017): A1 & A10.
(Note: ellipses added.)
(Note: the online version of the story has the title “Cuban Doctors Revolt: ‘You Get Tired of Being a Slave’.”)

Gig Workers Have More Control Over Retirement Savings

(p. 2D) “There’s this myth that the Gig Economy equals Uber driver,” said Diane Mulcahy, who recently wrote a book on the subject. “If you are not a full-time employee in a full-time job, you are part of the Gig Economy.”
While gig workers have been around as long as there have been handymen, tutors, writers and musicians, what’s new about the Gig Economy is how quickly it has infiltrated white-collar professions and industries such as health care, finance, the law and technology, Mulcahy said. She is a private equity adviser for the Kauffman Foundation, which studies and supports entrepreneurship. As proof, she said, look at the growth of national online placement services like Toptal for tech and finance workers and Axiom for lawyers.
. . .
Managing volatile income can come down to ongoing business development and networking. Gig workers must make sure to keep business flowing through the development pipeline and writing contracts in a way that ensures ongoing cash flow, Mulcahy said.
Saving for retirement is one of the few areas where the independent contractor has an advantage because through IRAs and 401(k)s for the self-employed, they can save more quickly and at higher levels than their full-time brethren, she said.
This all comes as the economy has fundamentally changed.
“This is the future of work,” Mulcahy said. “The full-time employee is getting to be the worker of last resort.”

For the full story, see:
Miami Herald. “As full-time jobs slip away, Gig Economy movement leverages skills and passions into multiple jobs.” The Wall Street Journal (Sat., Sept. 6, 2017): 1D-2D.
(Note: ellipsis added.)
(Note: the online version of the story has the title, “As full-time jobs slip away, Gig Economy movement leverages skills and passions into multiple jobs.”)

The Mulcahy book, mentioned above, is:
Mulcahy, Diane. The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time Off, and Financing the Life You Want. New York: AMACOM, 2016.

Free-Market Capitalism Benefits “Ordinary Working People”

(p. A8) MANCHESTER, England–U. K. Treasury chief Philip Hammond on Monday offered a staunch defense of free-market capitalism in Britain, in a speech that underscores the disquiet in the ruling Conservative Party over the rise of the country’s left-wing opposition leader.
. . .
“By abandoning market economics, Corbyn’s Labour has abandoned the aspirations of ordinary working people,” Mr. Hammond said.
Mr. Hammond’s appeal comes amid signs voters in the U.K. are moving away from the embrace of free markets that was ushered in by Margaret Thatcher in the 1980s and broadly sustained by Labour under Tony Blair.
. . .
A survey of 2,000 adults published Friday [Sept. 29, 2017] by polling firm Populus for the Legatum Institute, a free-market think tank, found widespread public support for nationalizing railways, utilities and banks.

For the full story, see:
Jason Douglas. “U.K. Official Defends Free-Market Capitalism,” The Wall Street Journal (Tues., Oct. 3, 2017): A8.

(Note: ellipses, and bracketed date, added.)
(Note: the online version of the story has the date Oct. 2, 2017, and has the title “U.K. Treasury Chief Defends Free-Market Capitalism Against Resurgent Opposition,”)

Has Jeff Bezos Given Up on Well-Paying Jobs for Average Citizens?

I have not read Scott Galloway’s new book, but suspect that there will be much in it to disagree with. But he makes a thought-provoking, and plausible, point, in the passage below, quoted from a Galloway op-ed piece.

(p. C3) I recently spoke at a conference the day after Jeff Bezos. During his talk, he made the case for a universal guaranteed income for all Americans. It is tempting to admire his progressive values and concern for the public welfare, but there is a dark implication here too. It appears that the most insightful mind in the business world has given up on the notion that our economy, or his firm, can support that pillar of American identity: a well-paying job.

For the full commentary, see:
Scott Galloway. “Amazon Takes Over the World.” The Wall Street Journal (Sat., Sept. 23, 2017): C3.
(Note: the online version of the commentary has the date Sept. 22, 2017.)

The commentary, quoted above, is related to the author’s book:
Galloway, Scott. The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google. New York: Portfolio, 2017.

Baseball Immigrants Learn English by Watching “Friends”

(p. D1) When he returns home from the stadium, Philadelphia Phillies shortstop Freddy Galvis often gets into bed and watches reruns of “Friends.”
. . .
For at least one generation of Americans, “Friends” endures as a cultural touchstone, a glowing chunk of 1990s amber. But its runaway popularity stretched far beyond the United States, and for some Latino baseball players it is something more: a language guide, a Rosetta Stone disguised as six 20-somethings commingling in a Manhattan apartment.
And also just a funny show.
“Now that it’s on Netflix, I always put it on and watch it,” said Mets infielder Wilmer Flores, 26, who is from Venezuela. “When I get up in the morning, I turn on the TV, and whatever episode is there I’ll watch and keep watching. I stop it when I come to the stadium. When I come home from the stadium, I pick up where I left off.”
What has the sitcom done for his English proficiency?
“It’s near perfect,” said Flores’s teammate, Jerry Blevins, who is from Tennessee. “When he doesn’t know something, it’s surprising.”
. . .
(p. D2) For Galvis, the English-language broadcast with Spanish subtitles on Venezuelan television, was an excellent learning tool. “You can compare what’s going on that way,” he said. “If they say ‘happy,’ you see he’s happy and the subtitle says ‘feliz’, then you can learn. You might not learn 100 percent, but you’ll learn to associate.”
. . .
Like Flores, Galvis is evangelical about “Friends.” He tells young Spanish-speaking players that he is living proof that consuming popular culture in English can help. And although he is now a capable English speaker, he still watches “Friends” with subtitles in Spanish so that his wife can learn English.
Marta Kauffman, one of the creators of the show, said she was delighted to hear about its unlikely and unintended impact on certain players. She compared the phenomenon to how Viagra was originally designed to treat heart problems but later was embraced for a very different purpose.

For the full story, see:
JAMES WAGNER. “For Some Major Leaguers, It’s Always Great to See ‘Friends’.” The New York Times (Mon., SEPT. 18, 2017): D1-D2.
(Note: ellipses added.)
(Note: the online version of the story has the title “‘Friends,’ the Sitcom That’s Still a Hit in Major League Baseball.”)

For Innovators to Seek the Way to San Jose, City’s Bureaucrats Should “Get Out of the Way”

The passages quoted below are authored by the Democratic mayor of the city of San Jose, California.

(p. A17) Recently, states and cities have been luring companies with subsidies. . . . The commonwealth of Massachusetts and city of Boston brought General Electric headquarters to Beantown with a $145 million incentive deal.
. . .
But my city won’t be offering incentives to Amazon. Why? Because they are a bad deal for taxpayers. With many subsidies, the jobs a company brings to an area don’t generate revenues commensurate with public expenditures. The GE deal will cost taxpayers more than $181,000 for every job created in Boston. Most experts insist that other factors–particularly the presence of a skilled workforce–play a far larger role in determining boardrooms’ corporate location decisions. Moreover, some 95% of Silicon Valley’s job growth comes from new small-business formation and when those homegrown companies develop into larger firms.
. . .
A healthy economic ecosystem that supports innovation and growth is what makes a community attractive to a company like Amazon.
. . .
As elected officials, we would do well to resist ribbon-cutting and take the longer view. To attract innovative employers, let’s all stay in our lanes, create safe and attractive cities for talented people to live in, and clear bureaucratic red tape. In other words: Get out of the way.

For the full commentary, see:

Sam Liccardo. “Why I’m Not Bidding for Amazon’s HQ; San Jose won’t offer subsidies for favored corporations, which are a bad deal for city taxpayers.” The Wall Street Journal (Thurs., Oct. 5, 2017): A17.
(Note: ellipses added.)
(Note: the online version of the commentary has the date Oct. 4, 2017.)

Keys to Good Jobs: Honesty, Work Ethic, and Ability to Be Trained

(p. A13) . . . , Mr. Funk is chairman, CEO and founder of Express Employment Professionals, one of the nation’s largest job agencies. Informally, he sees himself as a man who makes a living by giving people hope–that is, by matching workers looking for good jobs with employers looking for good workers. Along the way he also served as chairman of the Kansas City Federal Reserve Bank.
. . .
He shares a small brochure his company puts out summarizing a recent survey of employers. “So many people do not realize how important the soft skills are to unlocking job opportunity,” he says.
In order, the survey found the top five traits employers look for are as follows: attitude, work ethic/integrity, communication, culture fit, critical thinking.
Drugs are a huge problem today, with many would-be employees putting themselves out of the running when they fail drug tests. A certified truck driver can start at $55,000 to $60,000 a year, for example, but no one’s going to hire you if you do drugs.
. . .
And while education is vital, Mr. Funk says the most important thing for most people is the ability to be trained–which starts with basic competence in reading, writing and arithmetic. Mr. Funk also says institutions such as Oklahoma’s CareerTech, which works with local employers to train people for jobs that actually exist in their communities, are probably a better investment for many people than college.
. . .
“I’ve helped a lot of people find jobs in my life,” he says. “And I’ve learned that if you are honest, have a strong work ethic, and stay off drugs, there’s a great future for you out there.”

For the full commentary, see:

William McGurn. “MAIN STREET; Bring Back the Work Ethic; ‘There’s a person for every job and a job for every person,’ says Bob Funk.” The Wall Street Journal (Tues., Sept. 5, 2017): A13.
(Note: ellipses added; italics in original.)
(Note: the online version of the commentary has the date Sept. 4, 2017.)

Wisconsin Regulators Protect Consumers from Delicious Imported Kerrygold Butter

(p. A3) Attorneys with the Wisconsin Institute for Law and Liberty are taking the state to court over a 1953 law that mandates all butter sold in Wisconsin be graded and labeled on factors such as flavor, texture and color by state-licensed tasters.
Those convicted of selling unlabeled butter in the state more than once could pay up to $5,000 in fines and spend a year in county jail.
The statute has enraged devotees of the popular Kerrygold brand of butter, which is produced in Ireland and hasn’t been tested by the state. Local retailers say their inability to sell the grass-fed, gold-packaged spread has affected their bottom line. WILL is representing four consumers in counties across Southeast Wisconsin in the suit, as well as a health-food store in Grafton.
“I think the issue is important because it’s a specific instance of a larger problem,” Rick Esenberg, WILL President and lead counsel, said of the obscure, 64-year-old ordinance. “The government should not restrict our liberties–particularly our ability to engage in a legitimate business and make a living.”
. . .
Wisconsin laws have shielded the dairy industry from out-of-state competition for decades, but have often crumbled under judicial scrutiny.
The Wisconsin Supreme Court in 1927 ruled unconstitutional a law prohibiting the sale of oleomargarine and other butter substitutes in the state, and in 1952 turned back an attempt to ban the sale of Dairy Queen soft-serve.
In 1895, Wisconsin forbade the sale of artificially colored margarine, forcing neighbors to pool funds and make “oleo runs” to the Illinois border to buy yellow-hued margarine in bulk. That law wasn’t repealed until 1967.
A half-century later, Wisconsin residents are now embarking on similar Midwestern voyages to stock up on Kerrygold.
“It has a richness to it and a taste to it that’s uncomparable to the other butters,” said Jean Smith, an avid consumer of Kerrygold and one of the plaintiffs in the Wisconsin suit.
Ms. Smith especially enjoys adding the Irish butter to her tea on mornings when she doesn’t have time for a full breakfast, and is a member of a Facebook group where neighbors keep each other abreast of the few Wisconsin stores supplying Kerrygold.
She buys the product whenever she travels out of state, picking up roughly a dozen bricks of butter on two trips to Nebraska this summer and then again when visiting Montana in May for her nephew’s graduation.
“The fact that I have to do that is absolutely ridiculous,” Ms. Smith said. “If it’s not related to safety, it’s not the government’s decision whether they should offer a product or not.”

For the full story, see:
Quint Forgey. “Wisconsin Lawsuit Aims to Whip Butter Statute.” The Wall Street Journal (Sat., Aug. 31, 2017): A3.
(Note: ellipsis added.)
(Note: the online version of the story has the date Aug. 30, 2017, and has the title “Wisconsin Lawsuit Aims to Cut Through Butter Laws.” Of the last eight short paragraphs quoted above, the first and third appear in both the online and the print version of the article. The rest only appear in the online version.)