“If We Can’t Win on Quality, We Shouldn’t Win at All”

ImFeelingLuckyBK.jpg

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) At the tail end of the 1990s dot-com boom, Douglas Edwards took a gamble: He left his marketing job at an old-media company, taking a $25,000 salary cut to start work at a small, little-known Internet concern in its second year of operation. That his new employer was losing money and burning through venture capital went without saying. But unlike the footloose 20-somethings who usually populated Silicon Valley start-ups, Mr. Edwards had little margin to bet wrong; he was 41, with a mortgage, three children and a worried wife. He hoped he could get his old job back if the company ran out of money.

. . .
Mr. Edwards came to his job as a subscriber to the conventional wisdom. In an early presentation to cofounder Larry Page and others, Mr. Edwards unwisely declared that only marketing, not technology, could set Google apart. “In a world where all search engines are equal,” he asserted, “we’ll need to rely on branding to differentiate us from our competitors.”
The room became quiet. Then Mr. Page spoke up. “If we can’t win on quality,” he said, “we shouldn’t win at all.”

For the full review, see:
DAVID A. PRICE. “BOOKSHELF; How Google Got Going; Branding, shmanding, a marketer was told. ‘If we can’t win on quality,’ Larry Page said, ‘we shouldn’t win at all.'” The Wall Street Journal (Tues., July 12, 2011): A13.
(Note: ellipsis added.)

Book being reviewed:
Edwards, Douglas. I’m Feeling Lucky: The Confessions of Google Employee Number 59. New York: Houghton Mifflin Harcourt Publishing Co., 2011.

Medieval Halls of the Rich Incubated Plague in a Nest of “Filth Unmentionable”

(p. 51) In even the best houses, floors were generally just bare earth strewn with rushes, harboring “spittle and vomit and urine of dogs and men, beer that hath been cast forth and remnants of fishes and other filth unmentionable,” as the Dutch theologian and traveler Desiderius Erasmus rather crisply summarized in 1524. New layers of rushes were laid down twice a year normally, but the old accretions were seldom removed, so that, Erasmus added glumly, “the substratum may be unmolested for twenty years.” The floors were in effect a very large nest, much appreciated by insects and furtive rodents, and a perfect incubator for plague. Yet a deep pile of flooring was generally a sign of prestige. It was common among the French to say of a rich man that he was “waist deep in straw.”

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

Medieval Halls Did Not Conduce to Comfort or to Observing Modern Proprieties

Practically all living, awake or asleep, was done in this single large, mostly bare, always smoky chamber. Servants and family ate, dressed, and slept together–“a custom which conduced neither to comfort nor the observance of the proprieties,” as J. Alfred Gotch noted with a certain clear absence of comfort himself in his classic book The Growth of the English House (1909). Through the whole of the medieval period, till well Into the fifteenth century the hall effectively was the house, so much so that it became the convention to give its name to the entire dwelling, as in Hardwlck Hall or Toad Hall.

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.
(Note: italics in original.)

Private ADP Job Data May Better Capture Startup Job Growth than Government Data

“ADP” in the quote below, stands for Automatic Data Processing Inc. which is a large payroll processing firm that provides job growth data that are an alternative to the official Bureau of Labor Statistics numbers. Recent research by Haltiwanger and others, has indicated that startups may have an under-appreciated large role in job growth.

(p. C1) It has been dubbed “Another Dumb Payroll” report and a “random number generator.” But the ADP employment report doesn’t entirely deserve its bad rap.

. . .
ADP may better capture . . . new business formation than Labor Department estimates. BofA Merrill Lynch economist Michelle Meyer notes that new firms show up in ADP data after two months of existence; the government doesn’t have complete records until much later. Indeed, more than half the 187,000 new jobs ADP reported last month came from businesses with fewer than 50 employees.

For the full story, see:
KELLY EVANS. “AHEAD OF THE TAPE; Respect for ADP: Jobs Picture Is Brighter.” The Wall Street Journal (Tues., FEBRUARY 4, 2011): C1.
(Note: ellipses added.)
(Note: the online version of the story has the title “AHEAD OF THE TAPE; Respect for ADP: Jobs Picture Is Brighter Than Thought.”)

For some of the work showing the importance of startups in job creation, see:
Haltiwanger, John C., Ron S. Jarmin, and Javier Jarmin. “Who Creates Jobs? Small Vs. Large Vs. Young.” NBER Working Paper # 16300, August 2010.

Few Good Jobs for China’s College Graduates

(p. A13) BEIJING–Young people calling themselves the “ant tribe” and living in Beijing’s outskirts have prompted a national discussion about the tough job market for college graduates in China.
The term “ants”–referring to the graduates’ industriousness as well as their crowded, modest living conditions–was coined in a book by Lian Si, a professor at the University of International Business and Economics in Beijing, who in a 2007-09 survey of 600 Beijing-area college graduates found their average monthly income was the equivalent of $300.
The book touched a nerve in China, inspiring both admiration for the young people’s striving and indignation at their living conditions. Earlier this year, several members of the Chinese People’s Political Consultative Conference, an advisory body to the government, said they were moved to tears on a visit to the village of Tangjialing when they heard two young men who shared a 50-square-foot room sing a song they composed about their tough lives.
. . .
The “Song of the Ants” is a favorite. Its refrain: “Though we have nothing, we are tough in spirit; though we have nothing, we are still dreaming; though we have nothing, we still have power; though we have nothing, we are not afraid of being deserted.”

For the full story, see:
Sue Feng and Ian Johnson. “Job Squeeze in China Sends ‘Ants’ to Fringes; Millions of College Graduates Stack Up, Seek Cheap Living on Beijing Outskirts.” The Wall Street Journal (Tues., May 4, 2010): A13.
(Note: ellipsis added.)
(Note: the online version of the story is dated May 3, 2010 and has the title “China Job Squeeze Sends ‘Ants’ to Fringes; Millions of College Graduates Stack Up, Seek Cheap Living on Beijing Outskirts.”)

500 Kinds of Hammers: Even Marx Knew that Capitalism Produces Variety

HammerDiversityBasallaPage4.jpg

The diversity of hammers, part 1. Source of graphic: page 4 of the Basalla book quoted and cited aways down below.

(p. 21 of Bryson) Suddenly, for the first time In history, there was in most people’s lives a lot of everything. Karl Marx, living in London, noted with a tone of wonder, and just a hint of helpless admiration, that it was possible to buy five hundred kinds of hammer In Britain. Everywhere was activity, Modern Londoners live in a great Victorian city; the Victorians lived through It, so to speak. In twelve years eight railway termini opened In London. The scale of disruption–the trenches, the tunnels, the muddy excavations, the congestion of wagons and other vehicles, the smoke, the din, the clutter–that came from filling the city with railways, bridges, sewers, pumping stations, power stations, subway lines, and all the rest meant that Victorian London was not just the biggest city in the world but the noisiest, foulest, muddiest, busiest, most choked and dug-over place the world had ever seen.

The 1851 census also showed that more people in Britain now lived in cities than in the countryside–the first time that this had happened anywhere in the world–and the most visible consequence of this was crowds on a scale never before experienced. People now worked en masse, traveled en masse, were schooled, imprisoned, and hospitalized en masse. When they went out to enjoy themselves, they did that en masse, and nowhere did they go with greater enthusiasm and rapture than to the Crystal Palace.

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

On Marx and hammers, Bryson references p. 156 of Petroski:
Petroski, Henry. The Evolution of Useful Things: How Everyday Artifacts–from Forks and Pins to Paper Clips and Zippers–Came to Be as They Are. New York: A. Knopf, 1992.

Actually, Petroski’s source on Marx on hammers clearly is Basalla who he quotes on pp. 23-24:

(p. 23 of Petroski) George Basalla, in The Evolution of Technology, suggests the great “diversity of things made by human hands” over the past two hundred years by pointing out that five million patents have been issued in America alone. . . . (p. 24) He then introduces the fundamental questions of his study:

The variety of made things is every bit as astonishing as that of living things. Consider the range that extends from stone tools to microchips, from waterwheels to spacecraft, from thumb-tacks to skyscrapers. In 1867 Karl Marx was surprised to learn . . . that five hundred different kinds of hammers were produced in Birmingham, England, each one adapted to a specific function in industry or the crafts. What forces led to the proliferation of so many variations of this ancient and common tool? Or more generally, why are there so many different kinds of things?

Basalla dismisses the “traditional wisdom” that attributes technological diversity to necessity and utility, and looks for other explanations, “especially ones that can incorporate the most general assumptions about the meaning and goals of life.”

(Note: italics in original; first ellipsis added; second ellipsis in original.)

Petroski then again mentions Marx on hammers on the p. 156 that is referenced by Bryson:

(p. 156 of Petroski) In spite of Marx’s astonishment that five hundred different kinds of hammers were made in Birmingham in the 1860s, this was no capitalist plot. Indeed, if there were a plot, it was to not make more. The proliferation of hammer types occurred because there were then, as now, many specialized uses of hammers, and each user wished to possess a tool that was suited as ideally as possible to the tasks he performed perhaps thousands of times each day, but seldom if ever in a formal social context. I have often reflected on the value of special hammers while using the two ordinary ones from my tool chest: a familiar carpenter’s hammer with a claw, and a smaller version that fits in places the larger one does not. The tasks I’ve applied them to have included driving and removing nails, of course, but also opening and closing paint cans, pounding on chisels, tacking down carpets, straightening dented bicycle fenders, breaking bricks, driving wooden stakes, and on and on.

The Basalla book is:
Basalla, George. The Evolution of Technology, Cambridge Studies in the History of Science. Cambridge, UK: Cambridge University Press, 1988.

On p. 2 of Basalla, he writes:

(p. 2 of Basalla) The variety of made things is every bit as astonishing as that of living things. Consider the range that extends from stone tools to microchips, from waterwheels to spacecraft, from thumbtacks to skyscrapers. In 1867 Karl Marx was surprised to learn, as well he might have been, that five hundred different kinds of hammers were produced in Birmingham, England, each one adapted to a specific function in industry or the crafts . . .

(Note: ellipsis added.)

In Basalla’s notes to this chapter, the only Marx he mentions is the first volume of Capital. Searching volume one of Capital in Google Books for “hammer,” one discovers the relevant passage on p. 375:

(p. 374 of Marx) Manufacture is characterized by the differentiation of (p. 375) the instruments of labour–a differentiation whereby implements of a given sort acquire fixed shapes, adapted to each particular application, and by the specialisation (sic) of those instruments, giving to each special instrument its full play only in the hands of a specific detail labourer. In Birmingham alone 500 varieties of hammers are produced, and not only is each adapted to one particular process, but several varieties often serve exclusively for the different operations in one and the same process. The manufacturing period simplifies, improves, and multiplies the implements of labour, by adapting them to the exclusively special functions of each detail labourer.

The Marx book is:
Marx, Karl. Capital: A Critique of Political Economy, Vol. 1. New York: Modern Library, 1906 [first German edition in 1867].

HammerDiversityBasallaPage5.jpg

The diversity of hammers, part 2. Source of graphic: page 5 of the Basalla book quoted and cited somewhere above.

“There Is More Uncertainty, and Everybody Is Afraid”

Robert Shiller is often a shrewd diagnostician, but less often a wise therapist. For instance he is right in thinking that uncertainty is part of our problem, but wrong in his usual view that more government spending is the solution.
A better way to reduce uncertainty is for the government to act more predictably, following some reasonable rules. I heard such a view articulately defended in a lunch speech at the American Economic Association meetings in January by Stanford economist John Taylor. His speech has been polished and published in National Affairs (see citation way below).
Here are some interesting observations by Shiller (via Bewley):

(p, 7) Factors of production like wheat or trucks or pumps don’t have morale issues. Human beings do.

How these issues affect the labor market is a major focus of the research of Professor Bewley, who is a colleague of mine at Yale. He has developed an idiosyncratic approach, interviewing hundreds of corporate managers at length about the driving forces for their actions. The managers consistently told him that they are concerned about the emotional state of their core employees. They said that their companies’ continued success depends on the positive feelings and loyalty of these workers — and lamented the hard choices that would need to be made in a severe downturn.
. . .
Lower-level managers won’t ask for scarce resources . . . , because those items look like luxuries to fellow employees, who worry that there won’t be enough in the company budget for them to keep their jobs.
One top manager told Professor Bewley that he had to compensate for the reticence of lower-level managers, who won’t ask for anything. “I tell them to put in a few dreams for equipment they would like, because if they don’t try, they’ll never get what they want,” this manager said.
Of course, while that reticence may preserve jobs in one’s own company, it works against job growth elsewhere. A result is a loss of vigor in the aggregate economy, and the sapping of the very kind of creativity that might spur a recovery.
Professor Bewley shared with me a passage from an interview in July with a manager of a large manufacturing company. “There is more uncertainty, and everybody is afraid,” this manager told him. “Do your job. Keep employed. Don’t come up with a new idea.” In his own company, the manager said, “Everybody is doing the same thing.”

For the full commentary, see:
ROBERT J. SHILLER. “ECONOMIC VIEW; The Survival of the Safest.” The New York Times, SundayBusiness Section (Sun., October 3, 2010): 7.
(Note: ellipses added.)
(Note: the online version of the commentary is dated October 2, 2010.)

Here is the Taylor reference:
Taylor, John B. “The Cycle of Rules and Discretion in Economic Policy.” National Affairs, no. 7 (Spring 2011): 55-65.

Chinese College Graduates Are Underemployed “Ant Tribe” in Big Cities

(p. A1) BEIJING — Liu Yang, a coal miner’s daughter, arrived in the capital this past summer with a freshly printed diploma from Datong University, $140 in her wallet and an air of invincibility.

Her first taste of reality came later the same day, as she lugged her bags through a ramshackle neighborhood, not far from the Olympic Village, where tens of thousands of other young strivers cram four to a room.
Unable to find a bed and unimpressed by the rabbit warren of slapdash buildings, Ms. Liu scowled as the smell of trash wafted up around her. “Beijing isn’t like this in the movies,” she said.
Often the first from their families to finish even high school, ambitious graduates like Ms. Liu are part of an unprecedented wave of young people all around China who were supposed to move the country’s labor-dependent economy toward a white-collar future. In 1998, when Jiang Zemin, then the president, announced plans to bolster higher education, Chinese universities and colleges produced (p. A12) 830,000 graduates a year. Last May, that number was more than six million and rising.
It is a remarkable achievement, yet for a government fixated on stability such figures are also a cause for concern. The economy, despite its robust growth, does not generate enough good professional jobs to absorb the influx of highly educated young adults. And many of them bear the inflated expectations of their parents, who emptied their bank accounts to buy them the good life that a higher education is presumed to guarantee.
“College essentially provided them with nothing,” said Zhang Ming, a political scientist and vocal critic of China’s education system. “For many young graduates, it’s all about survival. If there was ever an economic crisis, they could be a source of instability.”
. . .
Chinese sociologists have come up with a new term for educated young people who move in search of work like Ms. Liu: the ant tribe. It is a reference to their immense numbers — at least 100,000 in Beijing alone — and to the fact that they often settle into crowded neighborhoods, toiling for wages that would give even low-paid factory workers pause.
“Like ants, they gather in colonies, sometimes underground in basements, and work long and hard,” said Zhou Xiaozheng, a sociology professor at Renmin University in Beijing.
. . .
A fellow Datong University graduate, Yuan Lei, threw the first wet blanket over the exuberance of Ms. Liu, Mr. Li and three friends not long after their July arrival in Beijing. Mr. Yuan had arrived several months earlier for an internship but was still jobless.
“If you’re not the son of an official or you don’t come from money, life is going to be bitter,” he told them over bowls of 90-cent noodles, their first meal in the capital.
. . .
In the end, Mr. Li and his friends settled for sales jobs with an instant noodle company. The starting salary, a low $180 a month, turned out to be partly contingent on meeting ambitious sales figures. Wearing purple golf shirts with the words “Lao Yun Pickled Vegetable Beef Noodles,” they worked 12-hour days, returning home after dark to a meal of instant noodles.
. . .
Mr. Li worried aloud whether he would be able to marry his high school sweetheart, who had accompanied him here, if he could not earn enough money to buy a home. Such concerns are rampant among young Chinese men, who have been squeezed by skyrocketing real estate prices and a culture that demands that a groom provide an apartment for his bride. “I’m giving myself two years,” he said, his voice trailing off.
By November, the pressure had taken its toll on two of the others, including the irrepressible Liu Yang. After quitting the noodle company and finding no other job, she gave up and returned home.

For the full story, see:
ANDREW JACOBS. “China’s Army of Graduates Is Struggling.” The New York Times, First Section (Sun., December 12, 2010): A1 & A12.
(Note: ellipses added.)
(Note: the online version of the story is dated December 11, 2010 and has the title “China’s Army of Graduates Struggles for Jobs.”)

“Big Money Is Dumb Money”

“Other People’s Money” is a short story that appears in Cory Doctorow’s short story collection With a Little Help.

(p. C7) Venture capitalists? Forget them, says “Other People’s Money.” Big money is dumb money. Much easier, says one old-lady manufacturer to a smart young gigafund manager, for her to make and market her own product, and keep the money (just like Mr. Doctorow), than for him to find and fund a hundred products and take a rake-off. He only deals in six-figure multiples, and that’s no good: not nimble enough. And he has to get a return on all those billions, poor outdated soul.

For the full review, see:
TOM SHIPPEY. “The Author as Agent of Change; Cory Doctorow has big ideas about the future of technology–and how it can empower writers.” The New York Times (Sat., MAY 21, 2011): C7.

The book of short stories is:
Doctorow, Cory. With a Little Help.

Neanderthals and Cro-Magnons Did Not Much Overlap: Evidence Against an Early Human Golden Age

In 2010 archeologist Brian Fagan published a book that used his read of the evidence to imagine the interactions between Cro-Magnon (us) and Neanderthal humans. He mostly portrayed the interaction as one of wary, but mainly benign mutual neglect. His broader portrayal of the lives of the hunter-gatherer Cro-Magnons did not completely place them in a Golden Age, but did much to praise many aspects of their lives.
Also in 2010, Matt Ridley published a book that discussed and dismissed the view that the hunter-gatherers were to be admired. He mainly pointed to the evidence of how common violent death was among hunter-gatherers, and hence how precarious and fearful their lives must have been.
Now there is additional relevant evidence. Apparently the period of overlap between Cro-Magnons and Neanderthals was much briefer than had been previously believed. This implies (see below) that rather than benign mutual neglect, it is much more likely that the Cro-Magnons violently wiped out the Neanderthals.
Hobbes may not have been entirely wrong when he described early human life as “nasty, poor, brutish and short.”

(p. D4) An improvement in the dating of fossils suggests that the Neanderthals, a heavily muscled, thick-boned human species adapted to living in ice age Europe, perished almost immediately on contact with the modern humans who started to enter Europe from the Near East about 44,000 years ago. Until now bones from several Neanderthal sites have been dated to as young as 29,000 years ago, suggesting there was extensive overlap between the two human species. This raised the question of whether there had been interbreeding between humans and Neanderthals, an issue that is still not resolved.
. . .
Reviewing . . . Neanderthal dates ascertained with the new ultrafiltration method, Dr. Higham sees an emerging pattern that no European Neanderthal site can reliably be dated to less than 39,000 years ago. “It’s only with reliable techniques that we can interpret the archaeological past,” he said.
He is re-dating Neanderthal sites across Europe and so far sees no evidence for any extensive overlap between Neanderthals and modern humans. “There was a degree of contemporaneity, but it may not have been very long,” he said. A short period of contact would point to the extinction of the Neanderthals at the hands of modern humans.
“It’s very unlikely for Neanderthals to go extinct without some agency from modern humans,” Dr. Higham said.
Paul Mellars, an expert on Neanderthals at Cambridge University in England, said that the quality of the dates from Dr. Higham’s laboratory was superb and that samples of bone re-dated by the lab’s method were almost always found to be several thousand years older than previously measured. The picture supported by the new dates is that the interaction between modern humans and Neanderthals in Europe was brief in each region, lasting perhaps a few hundred years, Dr. Mellars said, until the modern humans overwhelmed their competitors through better technology and greater numbers.

For the full story, see:
NICHOLAS WADE. “Neanderthals and Early Humans May Not Have Mingled Much.” The New York Times (Tues., May 10, 2011): D4.
(Note: ellipsis added.)
(Note: the online version of the article is dated May 9, 2011.)

The Fagan book is:
Fagan, Brian. Cro-Magnon: How the Ice Age Gave Birth to the First Modern Humans. New York: Bloomsbury Press, 2010.

The Ridley book is:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.