Category: Economics

CEO Ackerman Sold Corning’s Cookware to Focus on Fiber Optics

(p. A8) When Roger Ackerman was named chairman and chief executive of Corning Inc. in 1996, the company depicted him as a technologically savvy leader who would guide the company into the internet age.

“I’m absolutely ready to take over at Corning, and have no fear or trepidation,” he told The Wall Street Journal.

Mr. Ackerman sold Corning’s housewares division, featuring cookware and such brands as Pyrex, to focus on making optical fibers, liquid-crystal-display glass and other high-tech marvels. Optical fibers were in hot demand as telecom companies rushed to lace the globe with voice and data networks.

For the full obituary, see:

James R. Hagerty. “Corning CEO Put Focus on Technology.” The Wall Street Journal (Saturday, Aug. 20, 2022): A8.

(Note: the online version of the obituary has the date August 18, 2022, and has the title “Corning CEO Shifted Focus From Cookware to Photonics.”)

Wolfspeed Startup Survived Because “We Were Small, We Were Nimble, We Were Crazy”

(p. A12) As a graduate student in materials science in the early 1980s, John Palmour took a chance on an unproven way to make semiconductors, substituting silicon carbide for the usual pure silicon.

. . .

In 1987, Dr. Palmour and other researchers at NC State were among the co-founders of Cree Research, now known as Wolfspeed Inc.

. . .

In a sign of the technology’s strategic importance, the Committee on Foreign Investment in the U.S. in 2017 blocked the sale of a large part of the company to Infineon Technologies AG of Germany.

As Wolfspeed flourished over the past five years, Dr. Palmour remained chief technology officer, even while being treated for lymphoma.

. . .

Frugality was a helpful trait at a tech company that was slow to blossom. Wolfspeed was able to keep going because “we were small, we were nimble, we were crazy,” Dr. Edmond said.

. . .

Of his early days as an entrepreneur, Dr. Palmour wrote: “We were full of big plans and high hopes, but we were too young and stupid to know how hard it was going to be, how long it would take, or if it was even possible.”

For the full obituary, see:

James R. Hagerty. “Scientist Changed Recipe For Making Microchips.” The Wall Street Journal (Saturday, Dec. 3, 2022): A12.

(Note: ellipses added.)

(Note: the online version of the obituary has the date December 2, 2022, and has the title “John Palmour Changed Recipe for Making Microchips.”)

“I Do What I Want; You Don’t Like It, Don’t Buy It”

(p. 27) Terry Castro, a New York-based jewelry designer whose knack for blending the fantastical with the elegant propelled him from selling on the sidewalks of New York to adorning celebrities like Rihanna and Steven Tyler, died on July 18 [2022] at his home in Istanbul.

. . .

Mr. Castro, who worked under the single name Castro, considered himself a “creator of dreams.”

. . .

Passionate and at times confrontational, Mr. Castro considered himself a rebel within the industry.

“I do what I want; you don’t like it, don’t buy it,” he said in a 2012 interview with The Black Nouveau, a style blog. Recounting his scattered efforts to “go commercial,” he concluded that the income was not worth the creative price paid.

For the full obituary, see:

Alex Williams. “Terry Castro, 50, Rebel Who Created Exquisite Jewelry.” The New York Times, First Section (Sunday, August 7, 2022): 27.

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

(Note: the online version of the obituary has the date Aug. 4, 2022, and has the title “Terry Castro, a Proud Outsider in the Jewelry World, Dies at 50.”)

“Adding Manpower to a Late Software Project Makes It Later”

(p. 24) Dr. Brooks had a wide-ranging career that included creating the computer science department at the University of North Carolina and leading influential research in computer graphics and virtual reality.

But he is best known for being one of the technical leaders of IBM’s 360 computer project in the 1960s.

. . .

Until the 360, each model of computer had its own bespoke hardware design. That required engineers to overhaul their software programs to run on every new machine that was introduced.

But IBM promised to eliminate that costly, repetitive labor with an approach championed by Dr. Brooks, a young engineering star at the company, and a few colleagues. In April 1964, IBM announced the 360 as a family of six compatible computers. Programs written for one 360 model could run on the others, without the need to rewrite software, as customers moved from smaller to larger computers.

. . .

The hard-earned lessons he learned from grappling with the OS/360 software became grist for his book “The Mythical Man-Month: Essays on Software Engineering.” First published in 1975, it became recognized as a quirky classic, selling briskly year after year and routinely cited as gospel by computer scientists.

The tone is witty and self-deprecating, with pithy quotes from Shakespeare and Sophocles and chapter titles like “Ten Pounds in a Five-Pound Sack” and “Hatching a Catastrophe.” There are practical tips along the way. For example: Organize engineers on big software projects into small groups, which Dr. Brooks called “surgical teams.”

The most well known of his principles was what he called Brooks’s law: “Adding manpower to a late software project makes it later.”

Dr. Brooks himself acknowledged that with the “law” he was “oversimplifying outrageously.” But he was exaggerating to make a point: It is often smarter to rethink things, he suggested, than to add more people. And in software engineering, a profession with elements of artistry and creativity, workers are not interchangeable units of labor.

In the internet era, some software developers have suggested that Brooks’s law no longer applies. Large open-source software projects — so named because the underlying “source” code is open for all to see — have armies of internet-connected engineers to spot flaws in code and recommend fixes. Still, even open-source projects are typically governed by a small group of individuals, more surgical team than the wisdom of the crowd.

For the full obituary, see:

Steve Lohr. “Frederick P. Brooks Jr., an Innovator of Computer Design, Dies at 91.” The New York Times, First Section (Sunday, November 27, 2022): 24.

(Note: ellipses added.)

(Note: the online version of the obituary was updated Nov. 25, 2022, and has the title “Frederick P. Brooks Jr., Computer Design Innovator, Dies at 91.”)

The Brooks’s book mentioned above is:

Brooks, Frederick P., Jr. The Mythical Man-Month: Essays on Software Engineering. 2nd ed. Boston, MA: Addison-Wesley, 1995.

Nebraska Interest Cap Regulation Reduced Consumer Payday Loan Options

(p. A1) Nebraska’s payday lenders have all shut down in the two years since voters capped the interest rate they could charge.

The last handful gave up their delayed-deposit services business licenses in December [2021], according to records kept by the Nebraska Department of Banking and Finance.

Just six months earlier, there had been 19 such businesses.

. . .

. . ., Ed D’Alessio, executive director of INFiN, a national trade association representing delayed-deposit businesses, said the closures were predictable, based on the experience of other states that have imposed similar rate caps.

“Nebraska’s 36% rate cap on delayed-deposit loans was never about consumer protection,” he said. “It was about activists’ thinly veiled desire to eliminate a regulated service valued by many.

“But Nebraskans’ need for credit did not go away. Instead, they have been left with fewer options for managing their financial obligations,” D’Alessio said.  . . .

Payday loans, also known as cash advances, check advances or delayed-deposit loans, are a type of short-term, high-cost borrowing that people use to get small amounts of immediate cash.

For the full story, see:

Martha Stoddard. “Payday Lenders Disappear From State After Rate Cap.” Omaha World-Herald (Tuesday, Sept 13, 2022): A1-A2.

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

(Note: the online version of the story was updated Oct. 18, 2023 [sic], and has the title “Payday lenders disappeared from Nebraska after interest rate capped at 36%.”)

Stigler’s Account of Friedman’s “Exhilarating” Conversion of 20 Chicago Economists to Coase’s Theorem

(p. C8) Although he never reached the renown of his lifelong friend Milton Friedman, George Stigler was a founding member of the Chicago school of economics. His charming and readable memoir—really a linked series of vignettes—recounts his time at Chicago, from graduate school to professor.

. . .

Riveting accounts of notable moments in the history of economic thought include the “Coase conversion evening”—a long argument that ended with Friedman convincing 20 economists to embrace a founding theorem of the law and economics movement. “What an exhilarating event,” Stigler recalls. “I lamented afterward that we had not had the clairvoyance to tape it.”

For the full review, see:

Jennifer Burns. “Five Best on Biographies of Economists.” The Wall Street Journal (Saturday, November 4, 2023): C8.

(Note: ellipsis added.)

(Note: the online version of the review has the date November 3, 2023, and has the title “Five Best: Lives of Economists.”)

The book under review is:

Stigler, George J. Memoirs of an Unregulated Economist. New York: Basic Books, Inc., 1988.

Cancer “Vaccines Are Probably the Next Big Thing”

(p. A5) “Vaccines are probably the next big thing” in the quest to reduce cancer deaths, said Dr. Steve Lipkin, a medical geneticist at New York’s Weill Cornell Medicine, who is leading one effort funded by the National Cancer Institute. “We’re dedicating our lives to that.”

For the full story, see:

ARLA K. JOHNSON, Associated Press. “Vaccine Against Cancer Could Be Closer Than Ever.” Omaha World-Herald (Sunday, July 9, 2023): A11.

(Note: bracketed date added.)

(Note: the online version of the story was updated Nov 2, 2023, and has the title “The next big advance in cancer treatment could be a vaccine.”)

Highly-Taxpayer-Subsidized Lincoln Airline Collapses After Three Months

The “American Rescue Plan Act” was also called the “Covid-19 Stimulus Package” or the “American Rescue Plan.” (To paraphrase Shakespeare on a rose: a “boondoggle” by any other name smells just as foul.)

(p. B2) LINCOLN — Red Way, the startup airline that had been providing service from Lincoln to destinations such as Las Vegas and Orlando, is ceasing operations at the end of the month.

. . .

The Lancaster County Board issued a written statement Wednesday [Aug. 23, 2023], saying it “is deeply disappointed and troubled at this unexpected and sudden turn of events.”

The board said there are “many unanswered questions regarding the Red Way project, (and it) looks forward to receiving a full accounting of this situation as the Lincoln Airport Authority charts a new path forward to serve our community.”

Board member Matt Schulte lamented the $3 million in lost American Rescue Plan Act funds — $1.5 million each from Lancaster County and the City of Lincoln — but called the air travel experiment a chance worth taking.

“I personally voted for this project believing that the air service would develop long term service,” he said. “Unfortunately, it didn’t work. I hope this failed experiment does not have a negative impact on the ability to expand service to the city of Lincoln.”

. . .

Airport officials had seemed optimistic about the airline’s prospects, noting that it had sold 10,000 tickets in just its first two weeks of operation.

In fact, Red Way flew just over 13,000 total passengers in June and July.

But cracks had started to show recently.

Red Way announced in July that it was dropping seasonal flights to Atlanta, Austin and Minneapolis in early August, months earlier than planned, because of poor ticket sales. That news came just two days after the airline had announced new flights to Tampa and Phoenix over the winter months.

Nick Cusick, who resigned from the Airport Authority Board in July after serving more than 10 years, confirmed to the Lincoln Journal Star on Wednesday that Red Way had already burned through most of a $3 million incentive fund provided through ARPA dollars.

It used more than $900,000 in the first month and it withdrew even more in the second month, Cusick said.

For the full story, see:

MATT OLBERDING, Lincoln Journal Star. “Red Way Airline Ceasing Operations.” Omaha World-Herald (Thursday, Aug. 24, 2023): B2.

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

(Note: the online version of the story was updated Sept. 30, 2023, and has the title “Lincoln’s Red Way ceasing operations less than 3 months after inaugural flight.”)

Philosopher MacAskill’s “Effective Altruism” Was Neither Effective Nor Altruistic

(p. B1) In short order, the extraordinary collapse of the cryptocurrency exchange FTX has vaporized billions of dollars of customer deposits, prompted investigations by law enforcement and destroyed the fortune and reputation of the company’s founder and chief executive, Sam Bankman-Fried.

It has also dealt a significant blow to the corner of philanthropy known as effective altruism, a philosophy that advocates applying data and evidence to doing the most good for the many and that is deeply tied to Mr. Bankman-Fried, one of its leading proponents and donors. Now nonprofits are scrambling to replace millions in grant commitments from Mr. Bankman-Fried’s charitable vehicles, and members of the effective altruism community are asking themselves whether they might have helped burnish his reputation.

“Sam and FTX had a lot of good will — and some of that good will was the result of association with ideas I have spent my career promoting,” the philosopher William MacAskill, a founder of the effective altruism movement who has known Mr. Bankman-Fried since the FTX founder was an undergraduate at M.I.T., wrote on Twitter on Friday (Nov. 11, 2022). “If that good will laundered fraud, I am ashamed.”

Mr. MacAskill was one of five people from the charitable vehicle known as the FTX Future Fund who jointly announced their resignation on Thursday (Nov. 10, 2022).

. . .

(p. B5) Benjamin Soskis, senior research associate in the Center on Nonprofits and Philanthropy at the Urban Institute, said that the issues raised by Mr. Bankman-Fried’s reversal of fortune acted as a “distorted fun-house mirror of a lot of the problems with contemporary philanthropy,” in which very young donors control increasingly enormous fortunes.

. . .

Mr. Bankman-Fried’s fall from grace may have cost effective-altruist causes billions of dollars in future donations.  . . .

His connection to the movement in fact predates the vast fortune he won and lost in the cryptocurrency field. Over lunch a decade ago while he was still in college, Mr. Bankman-Fried told Mr. MacAskill, the philosopher, that he wanted to work on animal-welfare issues. Mr. MacAskill suggested the young man could do more good earning large sums of money and donating the bulk of it to good causes instead.

. . .

A significant share of the grants went to groups focused on building the effective altruist movement rather than organizations working directly on its causes. Many of those groups had ties to Mr. Bankman-Fried’s own team of advisers. The largest single grant listed on the Future Fund website was $15 million to a group called Longview, which according to its website counts the philosopher Mr. MacAskill and the chief executive of the FTX Foundation, Nick Beckstead, among its own advisers.

The second-largest grant, in the amount of $13.9 million, went to the Center for Effective Altruism. Mr. MacAskill was a founder of the center. Both Mr. Beckstead and Mr. MacAskill are on the group’s board of trustees, with Mr. MacAskill serving as the chair of the United Kingdom board and Mr. Beckstead as the chair of the U.S. subsidiary.

For the full story, see:

Nicholas Kulish. “Collapse of FTX Strikes a Philanthropy Movement.” The New York Times (Monday, November 14, 2022): B1 & B5.

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

(Note: the online version of the story was updated Nov. 14, 2022, and has the title “FTX’s Collapse Casts a Pall on a Philanthropy Movement.”)

P&G CEO Defended Using Harsh Criticism of Workers

Deirdre McCloskey frequently says we should use more “sweet talk.” Edwin Artzt defended using harsh talk. Is there room for both?

(p. A8) Edwin Artzt, who expanded Procter & Gamble Co.’s global reach in the 1980s and then, as chief executive officer in the early 1990s, rattled the company’s managers with cost-cutting drives and harsh criticism of their work, died at the age of 92, the Cincinnati-based company said.

As CEO from 1990 until 1995, Mr. Artzt was known for berating managers and using words including “stupid” and “imbecilic” to describe some of their proposals, as recounted in “Soap Opera: The Inside Story of Procter & Gamble,” a 1993 book by Alecia Swasy, a former Wall Street Journal reporter. He didn’t sugarcoat his desire to eliminate weak brands and underperforming employees.

Mr. Artzt, who died on April 6, was sometimes called “The Prince of Darkness.” Some colleagues said the nickname reflected a hot temper. He said it came from his habit of working late.

“I certainly don’t want to have a short trigger with people and not give them a chance,” he told The Wall Street Journal in 1991. “But sure I’ve cleared out deadwood. Probably some of it was still breathing when it was cleared out.”

Two years later, he said: “Terrifying people is not my intention…People come to me years later and say, ‘Remember that meeting 10 years ago? You laid it on me, but I sure remember that lesson.’”

For the full obituary, see:

James R. Hagerty. “P&G CEO’s Harsh Talk Rattled a Bureaucracy.” The Wall Street Journal (Saturday, April 15, 2023): A10.

(Note: the online version of the obituary was updated April 12, 2023, and has the title “Edwin L. Artzt, P&G CEO Known for His Tough Talk, Dies at 92.”)

The book on Proctor & Gamble mentioned above is:

Swasy, Alecia. Soap Opera: The Inside Story of Proctor & Gamble. New York: Crown Publishing, 1993.

Iberian Hunter-Gatherers Were More Sophisticated 9,500 Years Ago Than Previously Known

(p. 6) Hunter-gatherer societies on the Iberian Peninsula were making sophisticated baskets with decorative geometric patterns 9,500 years ago, more than 2,000 years earlier than previously thought, researchers in Spain have reported.

. . .

Francisco Martínez-Sevilla, a researcher of prehistory at the University of Alcalá and the lead author of a paper outlining the findings that was published this week in Science Advances, explained that carbon-14 dating tests had been carried out on 76 objects that were found by 19th-century miners in the Cueva de los Murciélagos, a cave in southern Spain.

The objects, including Europe’s oldest pair of sandals, a wooden stick and mace and exquisitely crafted baskets woven from reed and esparto, were previously believed to have been made by Neolithic farmers.

But the carbon-14 testing carried out by Dr. Martínez-Sevilla’s research group, which has recently excavated human remains in the cave, showed that the best-preserved baskets were, in fact, crafted by hunter-gatherer communities in the Mesolithic era, 9,500 years ago.  . . .

“My first reaction was, ‘Oh my God, that is not possible,’” Dr. Martínez-Sevilla said in a telephone interview, explaining how the discovery suggested that Mesolithic societies may have been more complex than previously imagined. “When we realized the magnitude of the findings, we published the paper with all the analysis in less than a year.”

For the full story, see:

Rachel Chaundler. “Artifacts Show Hunter-Gatherers Found Time to Weave, Too.” The New York Times, First Section (Sunday, October 1, 2023): 6.

(Note: ellipses added.)

(Note: the online version of the story was updated Oct. 3, 2023, and has the title “Hunter-Gatherers Were Making Baskets 9,500 Years Ago, Researchers Say.”)

The research discussed in the passages quoted above is published in the following academic article:

Martínez-Sevilla, Francisco, Maria Herrero-Otal, María Martín-Seijo, Jonathan Santana, José A. Lozano Rodríguez, Ruth Maicas Ramos, Miriam Cubas, Anna Homs, Rafael M. Martínez Sánchez, Ingrid Bertin, Rosa Barroso Bermejo, Primitiva Bueno Ramírez, Rodrigo de Balbín Behrmann, Antoni Palomo Pérez, Antonio M. Álvarez-Valero, Leonor Peña-Chocarro, Mercedes Murillo-Barroso, Eva Fernández-Domínguez, Manuel Altamirano García, Rubén Pardo Martínez, Mercedes Iriarte Cela, Javier L. Carrasco Rus, Carmen Alfaro Giner, and Raquel Piqué Huerta. “The Earliest Basketry in Southern Europe: Hunter-Gatherer and Farmer Plant-Based Technology in Cueva De Los Murciélagos (Albuñol).” Science Advances 9, no. 39 (2023): eadi3055.