Cities Provide Children “Options for Their Future”

(p. 85) As Suketu Mehta, author of Maximum City (about Mumbai), says, “Why would anyone leave a brick house in the village with its two mango trees and its view of small hills in the East to come here?” Then he answers: “So that someday the eldest son can buy two rooms in Mira Road, at the northern edges of the city. And the younger one can move beyond that, to New Jersey. Discomfort is an investment.”
Then Mehta continues: “For the young person in an Indian village, the call of Mumbai isn’t just about money. It’s also about freedom.” Stewart Brand recounts this summation of the magnetic pull of cities by activist Kavita Ramdas: “In the village, all there is for a woman is to obey her husband and relatives, pound millet, and sing. If she moves to town, she can get a job, start a business, and get education for her children.” The Bedouin of Arabia were once seemingly the freest people on Earth, roaming the great Empty Quarter at will, under a tent of stars and no one’s thumb. But they are rapidly quitting their nomadic life and (p. 86) hustling into drab, concrete-block apartments in exploding Gulf-state ghettos. As reported by Donovan Webster in National Geographic, they stable their camels and goats in their ancestral village, because the bounty and attraction of the herder’s life still remain for them. The Bedouin are lured, not pushed, to the city because, in their own words: “We can always go into the desert to taste the old life. But this [new] life is better than the old way. Before there was no medical care, no schools for our children.” An eighty-year-old Bedouin chief sums it up better than I could: “The children will have more options for their future.”

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: italics, an bracketed “new,” in original.)

MOOCs “Will Really Scale” Once Credible Credentialing Process Is Mastered

A “MOOC” is a “massive open online course.”

(p. 1) Last May I wrote about Coursera — co-founded by the Stanford computer scientists Daphne Koller and Andrew Ng — just after it opened. Two weeks ago, I went back out to Palo Alto to check in on them. When I visited last May, about 300,000 people were taking 38 courses taught by Stanford professors and a few other elite universities. Today, they have 2.4 million students, taking 214 courses from 33 universities, including eight international ones.

Anant Agarwal, the former director of M.I.T.’s artificial intelligence lab, is now president of edX, a nonprofit MOOC that M.I.T. and Harvard are jointly building. Agarwal told me that since May, some 155,000 students from around the world have taken edX’s first course: an M.I.T. intro class on circuits. “That is greater than the total number of M.I.T. alumni in its 150-year history,” he said.
. . .
(p. 11) As we look to the future of higher education, said the M.I.T. president, L. Rafael Reif, something that we now call a “degree” will be a concept “connected with bricks and mortar” — and traditional on-campus experiences that will increasingly leverage technology and the Internet to enhance classroom and laboratory work. Alongside that, though, said Reif, many universities will offer online courses to students anywhere in the world, in which they will earn “credentials” — certificates that testify that they have done the work and passed all the exams. The process of developing credible credentials that verify that the student has adequately mastered the subject — and did not cheat — and can be counted on by employers is still being perfected by all the MOOCs. But once it is, this phenomenon will really scale.
I can see a day soon where you’ll create your own college degree by taking the best online courses from the best professors from around the world — some computing from Stanford, some entrepreneurship from Wharton, some ethics from Brandeis, some literature from Edinburgh — paying only the nominal fee for the certificates of completion. It will change teaching, learning and the pathway to employment. “There is a new world unfolding,” said Reif, “and everyone will have to adapt.”

For the full commentary, see:
THOMAS L. FRIEDMAN. “Revolution Hits the Universities.” The New York Times, SundayReview Section (Sun., January 27, 2013): 1 & 11.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date January 26, 2013.)

Modern Cities Are “Successful Former Slums” that Allowed “Vibrant Economic Activity”

(p. 82) Babylon, London, and New York all had teeming ghettos of unwanted settlers erecting shoddy shelters with inadequate hygiene and engaging in dodgy dealings. Historian Bronislaw Geremek states that “slums constituted a large part of the urban landscape” of Paris in the Middle Ages. Even by the 1780s, when Paris was at its peak, nearly 20 percent of its residents did not have a “fixed abode”–that is, they lived in shacks. In a familiar complaint about medieval French cities, a gentleman from that time noted: “Several families inhabit one house. A (p. 83) weaver’s family may be crowded into a single room, where they huddle around a fireplace.” That refrain is repeated throughout history. A century ago Manhattan was home to 20,000 squatters in self-made housing. Slab City alone, in Brooklyn (named after the use of planks stolen from lumber mills), contained 10,000 residents in its slum at its peak in the 1880s. In the New York slums, reported the New York Times in 1858, “nine out of ten of the shanties have only one room, which does not average over twelve feet square, and this serves all the purposes of the family.”
San Francisco was built by squatters. As Rob Neuwirth recounts in his eye-opening book Shadow Cities, one survey in 1855 estimated that “95 percent of the property holders in [San Francisco] would not be able to produce a bona fide legal title to their land.” Squatters were everywhere, in the marshes, sand dunes, military bases. One eyewitness said, “Where there was a vacant piece of ground one day, the next saw it covered with half a dozen tents or shanties.” Philadelphia was largely settled by what local papers called “squatlers.” As late as 1940, one in five citizens in Shanghai was a squatter. Those one million squatters stayed and kept upgrading their slum so that within one generation their shantytown became one of the first twenty-first-century cities.
That’s how it works. This is how all technology works. A gadget begins as a junky prototype and then progresses to something that barely works. The ad hoc shelters in slums are upgraded over time, infrastructure is extended, and eventually makeshift services become official. What was once the home of poor hustlers becomes, over the span of generations, the home of rich hustlers. Propagating slums is what cities do, and living in slums is how cities grow. The majority of neighborhoods in almost every modern city are merely successful former slums. The squatter cities of today will become the blue-blood neighborhoods of tomorrow. This is already happening in Rio and Mumbai today.
Slums of the past and slums of today follow the same description. The first impression is and was one of filth and overcrowding. In a ghetto a thousand years ago and in a slum today shelters are haphazard and dilapidated. The smells are overwhelming. But there is vibrant economic activity.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: italics, and bracketed “San Francisco” in original.)

Harry Reid Hires GE Employee to Be His Chief Tax Policy Advisor

The “Capture Theory” associated with scholars George Stigler and Gabriel Kolko says that government regulatory bodies tend to be captured by the companies that they are intended to regulate. Stigler and Kolko would not be surprised by the passage quoted below.

(p. B5) . . . on Jan. 25, Mr. Reid’s office announced that he had appointed Cathy Koch as chief adviser to the majority leader for tax and economic policy. The news release lists Ms. Koch’s admirable and formidable experience in the public sector. “Prior to joining Senator Reid’s office,” the release says, “Koch served as tax chief at the Senate Finance Committee.”

It’s funny, though. The notice left something out. Because immediately before joining Mr. Reid’s office, Ms. Koch wasn’t in government. She was working for a large corporation.
Not just any corporation, but quite possibly the most influential company in America, and one that arguably stands to lose the most if there were any serious tax reform that closed corporate loopholes. Ms. Koch arrives at the senator’s office by way of General Electric.
Yes, General Electric, the company that paid almost no taxes in 2010. Just as the tax reform debate is heating up, Mr. Reid has put in place a person who is extraordinarily positioned to torpedo any tax reform that might draw a dollar out of G.E. — and, by extension, any big corporation.
Omitting her last job from the announcement must have merely been an oversight. By the way, no rules prevent Ms. Koch from meeting with G.E. or working on issues that would affect the company.

For the full story, see:
JESSE EISINGER, ProPublica. “A Revolving Door in Washington With Spin, but Less Visibility.” The New York Times (Thurs., February 21, 2013): B5.
(Note: ellipsis added.)
(Note: the online version of the story has the date February 20, 2013.)

Technology Brings Choices and Control, Which Brings Happiness

(p. 78) For the past 30 years the conventional wisdom has been that once a person achieves a minimal standard of living, more money does not bring more happiness. If you live below a certain income threshold, increased money makes a difference, but after that, it doesn’t buy happiness. That was the conclusion of a now-classic study by Richard Easterlin in 1974. However, recent research from the Wharton School at the University of Pennsylvania shows that worldwide, affluence brings increased satisfaction. Higher income earners are happier. Citizens in higher-earning countries tend to be more satisfied on average.
My interpretation of this newest research–which also matches our intuitive impressions–is that what money brings is increased choices, rather than merely increased stuff (although more stuff comes with the territory). We don’t find happiness in more gadgets and experiences. We do find happiness in having some control of our time and work, a chance for real leisure, in the escape from the uncertainties of war, poverty, and corruption, and in a chance to pursue individual freedoms–all of which come with increased affluence.
I’ve been to many places in the world, the poorest and the richest spots, the oldest and the newest cities, the fastest and the slowest cultures, and it is my observation that when given a chance, people who walk will buy a bicycle, people who ride a bike will get a scooter, people riding a scooter will upgrade to a car, and those with a car dream of a plane. Farmers everywhere trade their ox plows for tractors, their gourd bowls for tin ones, their sandals for shoes. Always. Insignificantly few ever go back. The exceptions such as the well-known Amish are not so exceptional when examined closely, for even their communities adopt selected technology without retreat.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: italics in original.)

Wealth from Innovation Is Nobler than Wealth from Litigation

TheRichestWomanInAmericaBK2013-05-05.jpg

Source of book image: http://ww4.hdnux.com/photos/15/60/06/3604871/3/628×471.jpg

(p. C7) In business, Green routinely sued her competitors. . . .
. . .
It was precisely Green’s vision of life as a zero-sum game, a match between enemies, that proved her flaw. She appreciated the idea that dollars compound, but she never seemed to grasp that the compounding of ideas, innovation, is just as important, that in certain, non-litigious, environments ideas “fructify,” to use a period verb. Litigation like Green’s prevented the kind of innovation in which she might have wanted to invest. Wealth is created when Apple beats Samsung, but more wealth is created when Apple comes up with a new phone.

For the full review, see:
AMITY SHLAES. “Quarrelsome Queen of the Gilded Age.” The Wall Street Journal (Sat., September 29, 2012): C7.
(Note: ellipses added.)
(Note: the online version of the review has the date September 28, 2012.)

The book under review, is:
Wallach, Janet. The Richest Woman in America: Hetty Green in the Gilded Age. New York: Nan A. Talese, 2012.

“Lowest-Paid Burger Flipper” Is “Better Off than King Henry”

(p. 76) After going from room to room, skipping none except the garage (that would be a project in itself), we arrived at a total of 6,000 varieties of things in our house. Since we have multiple examples of some varieties, such as books, CDs, paper plates, spoons, socks, on so on, I estimate the total number of objects in our home, including the garage, to be close to 10,000.
Without trying very hard, our typical modern house holds a king’s ransom. But in fact, we are wealthier than King Henry. In fact, the lowest-paid burger flipper working at McDonald’s is in many respects (p. 77) better off than King Henry or any of the richest people living not too long ago. Although the burger flipper barely makes enough to pay the rent, he or she can afford many things that King Henry could not. King Henry’s wealth–the entire treasure of England–could not have purchased an indoor flush toilet or air-conditioning or secured a comfortable ride for 500 kilometers. Any taxicab driver can afford these today. Only 100 years ago, John Rockefeller’s vast fortune as the world’s richest man could not have gotten him the cell phone that any untouchable street sweeper in Bombay now uses. In the first half of the 19th century Nathan Rothschild was the richest man in the world. His millions were not enough to buy an antibiotic. Rothschild died of an infected abscess that could have been cured with a three-dollar tube of neomycin today. Although King Henry had some fine clothes and a lot of servants, you could not pay people today to live as he did, without plumbing, in dark, drafty rooms, isolated from the world by impassable roads and few communication connections. A poor university student living in a dingy dorm room in Jakarta lives better in most ways than King Henry.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

21st Century Person Would Be Sick in Dickens’ 1850 London

NancyFromOliverTwist2013-05-04.jpg “Anderson found Dickens World to be “surprisingly grisly” for a park that markets itself to children; he noted several severed heads and a gruesome performance of “Oliver Twist” in the courtyard. Here, a mannequin of Nancy from “Oliver Twist.”” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 48) . . . even if it were possible to create a lavish simulacrum of 1850s London — with its typhus and cholera and clouds of toxic corpse gas, its sewage pouring into the Thames, its (p. 49) average life span of 27 years — why would anyone want to visit? (“If a late-20th-century person were suddenly to find himself in a tavern or house of the period,” Peter Ackroyd, a Dickens biographer, has written, “he would be literally sick — sick with the smells, sick with the food, sick with the atmosphere around him.”)

For the full story, see:
SAM ANDERSON. “VOYAGES; The Pippiest Place on Earth.” The New York Times Magazine (Sun., February 7, 2012): 48-53.
(Note: ellipsis added.)
(Note: the online version of the story has the date February 7, 2012 (sic), and has the title “VOYAGES; The World of Charles Dickens, Complete With Pizza Hut.”)

Chinese Couples Divorce to Avoid Government Regulations and Taxes

ShanghaiRealEstateMob2013-05-04.jpg “A police officer attempted to stop residents from rushing into a real estate trading center in Shanghai after new restrictions were announced.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A4) SHANGHAI — When the Chinese government announced new curbs on property prices this month, homeowners bombarded social networking sites with complaints. They formed long lines at property bureaus to register to sell their homes before the restrictions went into effect.

And some couples went even further: they filed for divorce.
Divorce filings shot up here and in other big cities across China this past week after rumors spread that one way to avoid the new 20 percent tax on profits from housing sales was to separate from a spouse, at least on paper.
The surge in divorce filings is the latest indication of how volatile an issue real estate has become in China in the past decade and how resistant people are to additional taxes.
. . .
On Friday, at a marriage registration center in the Pudong district, a 33-year-old woman named Frances Tao arrived with her husband. She acknowledged that they were filing for divorce, not to avoid the 20 percent capital gains tax on second homes, but to get around another restriction, which requires home buyers to put down a much higher deposit on a second home than on a primary residence.
Ms. Tao said that by divorcing, one of them would be able to purchase a first home and put down less money and get a better interest rate.
“We don’t have other choices,” Ms. Tao said. “But the government and developers continue to make a lot of money.”

For the full story, see:
DAVID BARBOZA. “In China, Checklist for a Home Seller: First, Get a Divorce.” The New York Times (Sat., March 9, 2012): A4.
(Note: ellipsis added.)
(Note: the online version of the story has the date March 8, 2012.)

Knowledge Economy Migrating to Intangible Goods and Services

(p. 67) Our present economic migration from a material-based industry to a knowledge economy of intangible goods (such as software, design, and media products) is just the latest in a steady move toward the immaterial. (Not that material processing has let up, just that intangible processing is now more economically valuable.) Richard Fisher, president of the Federal Reserve Bank of Dallas, says, “Data from nearly all parts of the world show us that consumers tend to spend relatively less on goods and more on services as their incomes rise. . . . Once people have met their basic needs, they tend to want medical care, transportation and communication, information, recreation, entertainment, financial and legal advice, and the like.” The disembodiment of value (more value, less mass) is a steady trend in the technium. In six years the average weight per dollar of U.S. exports (the most valuable things the U.S. produces) (p. 68) dropped by half. Today, 40 percent of U.S. exports are services (intangibles) rather than manufactured goods (atoms). We are steadily substituting intangible design, flexibility, innovation, and smartness for rigid, heavy atoms. In a very real sense our entry into a service- and idea-based economy is a continuation of a trend that began at the big bang.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: ellipsis in original; a graph is omitted that appears in the middle of the paragraph quoted above.)

In Latvia Deep Budget Cuts Lead to High Economic Growth

LatviaNewDairyFactoryOutsideRiga2013-05-04.jpg “A worker cleaned equipment at a new dairy factory outside Riga. The I.M.F. has hailed Latvia for its deep budget cuts.” Source of caption and photo: online version of the NYT article quoted and cited below.

It is interesting that the New York Times photographer (see above) chose to display the Latvian economic success story in bleak shades of grey and darkness.

(p. A1) RIGA, Latvia — When a credit-fueled economic boom turned to bust in this tiny Baltic nation in 2008, Didzis Krumins, who ran a small architectural company, fired his staff one by one and then shut down the business. He watched in dismay as Latvia’s misery deepened under a harsh austerity drive that scythed wages, jobs and state financing for schools and hospitals.

But instead of taking to the streets to protest the cuts, Mr. Krumins, whose newborn child, in the meantime, needed major surgery, bought a tractor and began hauling wood to heating plants that needed fuel. Then, as Latvia’s economy began to pull out of its nose-dive, he returned to architecture and today employs 15 people — five more than he had before. “We have a different mentality here,” he said.
. . .
Hardship has long been common here — and still is. But in just four years, the country has gone from the European Union’s worst economic disaster zone to a model of what the International Monetary Fund hails as the healing properties of deep budget cuts. Latvia’s economy, after shriveling by more than 20 percent from its peak, grew by about 5 percent last year, making it the best performer in the 27-nation European Union. Its budget deficit is down sharply and exports are soaring.

For the full story, see:
ANDREW HIGGINS. “Used to Hardship, Latvia Accepts Austerity, and Its Pain Eases.” The New York Times (Weds., January 2, 2013): A1 & A6.
(Note: ellipsis added.)
(Note: the online version of the story has the date January 1, 2013.)