Category: Economics

In Poor Country Where “Few People Have Air Conditioning” Heat Reduces Ability of Children to Learn and Parents to Produce

A growing movement among intellectuals opposes economic growth. I doubt that the movement will catch on in Freetown, Sierra Leone, where economic growth would allow more citizens to afford air conditioning.

(p. A4) . . . Eugenia Kargbo . . . [is] Freetown’s first chief heat officer, a post created in 2021, . . .

. . .

“Heat is invisible but it’s killing people silently,” Ms. Kargbo said in an interview on one of the top floors of Freetown’s city hall, a massive air-conditioned building that towers over the dozens of informal settlements dotting the capital of the small West African nation.

“Children are not sleeping at night because of extreme temperature,” she said. “It affects their ability to learn and their parents’ productivity.”

. . .

The country is one of the world’s poorest; few people have air conditioning; . . .

For the full story, see:

Elian Peltier. “In West African Hub, She Works to Counter Rising Temperatures.” The New York Times (Tuesday, January 7, 2023): A4.

(Note: ellipses added.)

(Note: the online version of the story has the date January 6, 2023, and has the title “She Is Africa’s First Heat Officer. Can She Make Her City Livable?”)

Taiwanese Engineers Who Built Dictator Xi’s Computer Chips, Are Voting With Their Feet for Taiwan’s Democracy and Freedom

(p. B1) TAIPEI, Taiwan — The job offer from a Chinese semiconductor company was appealing. A higher salary. Work trips to explore new technologies.

No matter that it would be less prestigious for Kevin Li than his job in Taiwan at one of the world’s leading chip makers. Mr. Li eagerly moved to northeast China in 2018, taking part in a wave of corporate migration as the Chinese government moved aggressively to build up its semiconductor industry.

He went back to Taiwan after two years, as Covid-19 swept through China and global tensions intensified. Other highly skilled Taiwanese engineers are going home, too.

For many, the strict pandemic measures have been tiresome. Geopolitics has made the job even more fraught, with China increasingly vocal about staking its claim on Taiwan, a self-ruled democracy.

. . .

(p. B4) For now, Mr. Li is staying in Taiwan, working for an American chip company operating there and siding with the invigorated patriotic sentiment and the ethos of individual liberty.

“The advantage of working in Taiwan is that you don’t have to worry about officials shutting down the whole company because of one thought,” he said. “The atmosphere is very important. At least I can watch all kinds of programs criticizing the governments on both sides of the Taiwan Strait without worrying about being arrested.”

For the full story, see:

Jane Perlez, Amy Chang Chien and John Liu. “Taiwanese Who Built Up Chip Sector in China Are Fed Up and Going Home.” The New York Times (Tuesday, November 22, 2022): B1 & B4.

(Note: the online version of the story has the date Nov. 16, 2022, and has the title “Engineers From Taiwan Bolstered China’s Chip Industry. Now They’re Leaving.” The online version says that the title of the print version is “They Built Up China’s Chip Sector. Now, They’re Going Home to Taiwan” but the title of my national edition copy is “Taiwanese Who Built Up Chip Sector in China Are Fed Up and Going Home.”)

Lethality of Ebola in West Africa Mainly Due to “the Contingent History of a Population Made Vulnerable”

(p. 22) As Farmer writes in his new book, “Fevers, Feuds, and Diamonds: Ebola and the Ravages of History,” by the time he arrived in the capital city of Freetown in late September, “western Sierra Leone was ground zero of the epidemic, and Upper West Africa was just about the worst place in the world to be critically ill or injured.”

. . .

Farmer notes that even severe cases of Ebola rarely produce the horror-film symptoms featured so prominently in Preston’s “Hot Zone”: patients bleeding from their eyeballs, their organs liquefied in a matter of hours. Most cases instead involve fluid and electrolyte loss caused by vomiting and diarrhea, which can often be treated with basic supportive and critical care, like intravenous fluid replenishment or dialysis. Ebola was so lethal in upper West Africa not because the virus itself conveyed an inevitable death sentence, but because countries like Liberia and Sierra Leone lacked these health care essentials. “For all their rainfall,” Farmer writes, “their citizens are stranded in the medical desert.”

. . .

“This was not,” Farmer writes, “a history of inevitable mortality that resulted from ancient evolutionary forces.  . . .   It was the contingent history of a population made vulnerable.”

For the full review, see:

Steven Johnson “A Preventable Epidemic.” The New York Times Book Review (Sunday, December 13, 2020): 22.

(Note: ellipses between paragraphs, added; ellipsis internal to last paragraph, in original.)

(Note: the online version of the review has the date Nov. 17, 2020, and has the title “The Deadliness of the 2014 Ebola Outbreak Was Not Inevitable.”)

The book under review is:

Farmer, Paul. Fevers, Feuds, and Diamonds: Ebola and the Ravages of History. New York: Farrar, Straus and Giroux, 2020.

Disabled Workers Flourish in Robustly Redundant Labor Market

(p. A1) The strong late-pandemic labor market is giving a lift to a group often left on the margins of the economy: workers with disabilities.

Employers, desperate for workers, are reconsidering job requirements, overhauling hiring processes and working with nonprofit groups to recruit candidates they might once have overlooked. At the same time, companies’ newfound openness to remote work has led to opportunities for people whose disabilities make in-person work — and the taxing daily commute it requires — difficult or impossible.

As a result, the share of disabled adults who are working has soared in the past two years, far surpassing its prepandemic level and outpacing gains among people without disabilities.

(p. A12) In interviews and surveys, people with disabilities report that they are getting not only more job offers, but better ones, with higher pay, more flexibility and more openness to providing accommodations that once would have required a fight, if they were offered at all.

For the full story, see:

Ben Casselman. “Disabled Workers Thrive in Tight Labor Market.” The New York Times (Wednesday, October 26, 2022): A1 & A12.

(Note: the online version of the story has the date Oct. 25, 2022, and has the title “For Disabled Workers, a Tight Labor Market Opens New Doors.”)

Elon Musk Asks Twitter Employees for “Long Hours at High Intensity”

(p. B5) SAN FRANCISCO — Elon Musk gave Twitter employees a deadline of 5 p.m. Eastern time on Thursday [Nov. 17, 2022] to decide if they wanted to work for him, and he asked those who did not share his vision to leave their jobs, in his latest shock treatment of the social media company.

Mr. Musk made the announcement in an early-morning email to employees on Wednesday [Nov. 16, 2022]; The New York Times obtained the message, which had the subject line “A Fork in the Road.” In the note, Mr. Musk, 51, reiterated that Twitter faced a difficult road ahead and offered employees three months of severance if they did not want to continue working there “to build a breakthrough Twitter 2.0.”

. . .

In his note to Twitter employees on Wednesday, Mr. Musk said they would need to work hard — very hard. “In an increasingly competitive world, we will need to be extremely hard core,” he wrote. “This will mean working long hours at high intensity. Only exceptional performance will constitute a passing grade.”

For the full story, see:

Kate Conger. “Musk’s Ultimatum: Buy In or Get Out.” The New York Times (Thursday, November 17, 2022): B5.

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

(Note: the online version of the story has the date Nov. 16, 2022, and has the title “Elon Musk Gives Twitter Employees a Deadline to Stay or Leave.”)

New Guineans Bred “Pretty Tasty Bananas Without Formal Knowledge of the Principles of Inheritance and Evolution”

(p. D2) Wild bananas, or Musa acuminata, have flesh packed with seeds that render the fruit almost inedible. Scientists think bananas were domesticated more than 7,000 years ago on the island of New Guinea. Humans on the island at the time bred the plants to produce fruit without being fertilized and to be seedless. They were able to develop pretty tasty bananas without formal knowledge of the principles of inheritance and evolution.

For the full story, see:

Oliver Whang. “Fruitful Research: Yes, We Have Lots of Bananas, but Not the Ones You’re Looking For.” The New York Times (Tuesday, October 25, 2022): D2.

(Note: the online version of the story has the date Oct. 17, 2022, and has the title “The Search Is on for Mysterious Banana Ancestors.”)

In “Surprising Reversal” Federal and California “Democratic Leaders” Back Nuclear as “Reliable Power”

(p. B5) California’s last nuclear power plant received a $1.1 billion federal grant on Monday [Nov. 21, 2022] as the state seeks to extend the plant’s operations — currently set to end in 2025 — to meet electricity demand at a time of intensifying climate events.

. . .

The federal and state support from Democratic leaders for Diablo Canyon’s continued electricity production has been a surprising reversal. Senator Dianne Feinstein, who had supported retiring the plant, wrote an opinion essay in The Sacramento Bee this year about why she changed her mind.

On Monday [Nov. 21, 2022], Ms. Feinstein, a Democrat from California, again backed Diablo Canyon’s operations, disputing Mr. Weisman’s argument that the facility is not needed.

“This short-term extension is necessary if California is going to meet its ambitious clean-energy goals while continuing to deliver reliable power,” Ms. Feinstein said. “This is especially critical as California’s electric grid has faced increasing challenges from climate-fueled extreme weather events.”

For the full story, see:

Ivan Penn. “Lifeline for California Nuclear Plant Is a Bridge to Climate Goals, Advocates Say.” The New York Times (Tuesday, November 22, 2022): B5.

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

(Note: the online version of the story has the date Nov. 21, 2022, and has the title “U.S. Approves Aid to Extend Life of California Nuclear Plant.”)

Venture Capitalist Invested in Mainland But Now Prefers Taiwan’s “Freedom”

(p. B10) TAIPEI—Tim Draper, a venture capitalist known for his early bets in Elon Musk’s Tesla Inc. and SpaceX, is feeling good about his decision to stop investing in China.

In an interview in Taiwan, where he is pursuing new investments, Mr. Draper slammed China’s Xi Jinping, whom he called a “weak leader,” saying the country is going backward after more than four decades of former leader Deng Xiaoping’s “reform and opening up” policy.

“It’s not a place where you invest money to get a return,” he said. “I see China as a place where the government is trying to control everybody.”

An early investor in Baidu Inc.—China’s BIDU equivalent of Google—Mr. Draper said he pulled out completely and froze investment in the country around 2014 after a startup he had invested in was fined by regulators. It was a sign, he said, of the government’s increasing interference in the market.

. . .

Mr. Draper’s fund made its first investments in Taiwan last year, when it bought stakes in Taipei-based digital news company TNL Media Group and other startups. He said he would continue to invest in the island, which he believes will attract frustrated entrepreneurs from China with its openness.

“I’m coming to Taiwan. I’m not going to China,” he said, praising the democracy’s “freedom and trust.”

For the full story, see:

Joyu Wang. “Venture Capitalist Touts His Turning from China.” The Wall Street Journal (Saturday, September 19, 2022): B10.

(Note: ellipsis added.)

(Note: the online version of the story has the date September 18, 2022, and has the title “Tim Draper Touts Decision to Pull Out of China.”)

Electrical Vehicle (EV) Chargers Are “Often on the Fritz”

(p. A1) One of the biggest roadblocks to the mass adoption of electric vehicles is the troubled business model for the commercial chargers that power them.

The government is pouring billions of dollars into developing a national highway charging network. But businesses aren’t sure how they will make money, and the nascent industry looks messy.

Utility companies and gas stations are at war with each other over who will own and operate EV chargers. Rural states say some charging stations could operate at a loss for a decade or more. (p. A10) New companies that provide charging gear and services are contending with the equipment’s spotty reliability.

. . .

Equipment is often on the fritz. Communications can break down between the car and the charger, the charger and the company operating the charging network, and with payment systems. On occasion, a wasp crawls into the gear and builds a nest. Vandals can strike, sticking gum in the credit card readers and bashing the machines.

. . .   A 2022 study led by the University of California, Berkeley tested all 657 public EV fast chargers in the greater San Francisco Bay Area and found more than a quarter didn’t work.

For the full story, see:

Jennifer Hiller. “Electric Cars Have A Charging Problem.” The Wall Street Journal (Wednesday, Nov. 30, 2022): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date November 29, 2022, and has the title “Why America Doesn’t Have Enough EV Charging Stations.”)

Funding People Instead of Projects Allows Researchers to Nimbly Pivot in the Light of Unexpected Discoveries

(p. A2) Patrick Collison, the Irish-born co-founder of payments technology company Stripe Inc., has spent a lot of the past five years pondering the problem of declining scientific productivity.

. . .

Clearly, scientific productivity has something to do with how research is done, not how much. One culprit, in the view of Mr. Collison and many others, is that the institutions that fund science have become process-oriented, narrow-minded and risk-averse. Wary of failure, they favor established researchers pursuing narrowly focused, incremental ideas over younger scientists with more heterodox agendas.

. . .

Yet Mr. Collison criticizes the federal government for failing to bring a much deeper and eager pool of talent to bear on a multitude of pandemic challenges. Top virologists “were stuck on hold, waiting for decisions about whether they could repurpose their existing funding for this exponentially growing catastrophe,” he wrote in an essay last year with George Mason University economist Tyler Cowen, and University of California, Berkeley bioengineering professor Patrick Hsu.

Sensing a need, the three in April, 2020 launched Fast Grants, $10,000 to $500,000 awards funded primarily by private donors and approved in 14 days or less.

. . .

When Messrs. Collison, Cowen and Tsu surveyed their recipients about their experiences with traditional funding, 57% told them they spent more than a quarter of their time on grant applications and 78% said they would change their research program a lot if they weren’t constrained in how they spent their current funding.

This reinforces a key insight from metascience, also known as the science of science, namely the value of curiosity-driven research. Heidi Williams, an economist at Stanford University and director of science policy at the Institute for Progress, said grants typically commit a scholar to complete a specific project, even if during the research the project proves less promising than expected.

. . .

In a 2009 paper, Massachusetts Institute of Technology economist Pierre Azoulay and his co-authors demonstrated the benefits of funding people over projects. Researchers backed by the Howard Hughes Medical Institute, which takes such an approach, produce far more widely cited papers—a metric of significance—than similar researchers funded by the National Institutes of Health. Drawing on those lessons, last year, Mr. Collison co-founded the Arc Institute to pre-fund scientists studying complex human diseases for renewable eight-year terms.

For the full commentary, see:

Greg Ip. “CAPITAL ACCOUNT; To Boost Growth, Rethink Science Funding.” The Wall Street Journal (Friday, Nov. 18, 2022): A2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date November 17, 2022, and has the title “CAPITAL ACCOUNT; Stagnant Scientific Productivity Holding Back Growth.”)

The published version of Azoulay’s co-authored 2009 NBER working paper, mentioned above, is:

Azoulay, Pierre, Joshua S. Graff Zivin, and Gustavo Manso. “Incentives and Creativity: Evidence from the Academic Life Sciences.” RAND Journal of Economics 42, no. 3 (Fall 2011): 527-54.

Elon’s “Musketeers” Will Gladly Commit to “Long Hours at High Intensity”

(p. A12) Your boss probably hasn’t demanded a loyalty pledge and almost certainly doesn’t own a rocket ship, but the person calling the shots at your company might be more like Elon Musk than you realize.

. . .

What is consistent—and alluring to some bosses—is the billionaire’s unapologetically high standard for employees. He spelled it out last week in an emailed ultimatum, saying that Twitter employees must commit to “long hours at high intensity” or leave with three months’ severance.

. . .

Managers who think the working world has gone soft in recent years, with all the talk of flexibility and work-life balance, say they envy Mr. Musk’s unfiltered style and share his craving for maximum effort—even if they wouldn’t act quite as forcefully as the world’s richest person.

. . .

. . . he is the rare CEO with a fan base—“Musketeers,” as this male-dominated bunch is known—and might be able to fill the company’s ranks with devotees who believe in his vision of a more freewheeling and profitable platform and are willing to grind.

. . .

“He can do whatever he wants, and everyone that has an opinion about it can piss off,” says Derek Grubbs, director of sales development at Crux Informatics, a software company. “If everybody exits from Twitter, there are plenty of other people who will be ready to enter because it pays well, and working for Elon Musk has a flair to it.”

For the full commentary, see:

Callum Borchers. “ON THE CLOCK; The Bosses Who Want to Emulate Elon Musk.” The Wall Street Journal (Wednesday, November 23, 2022): A12.

(Note: ellipses added.)

(Note: the online version of the commentary has the date November 22, 2022, and has the title “ON THE CLOCK; Is Elon Musk Your Boss’s Anger Translator?”)