Category: Entrepreneurship

Innovation and Jobs Destroyed by Tax

(p. 7A) I was humbled to receive in November the National Medal of Technology and Innovation at the White House for the development of life-changing medical devices. Traveling to our nation’s capital, I couldn’t help but think: There is no way I could have had the same impact if the tax on medical devices was in place when I got started over 50 years ago.
Simply put, the medical device tax is destroying job creation and innovation, and as a result, patient care is suffering.
. . .
Every day, I see firsthand the difficult choices innovators must make as a result of this ill-conceived tax. Perhaps worst of all, the medical device tax is helping cause a steep drop of investments in promising therapies.
. . .
It’s time to put an end to this disastrous policy so that medical device entrepreneurs can do what America does best — innovate.

For the full commentary, see:
Tom Fogarty. “Opposing View: Tax Destroys Jobs and Innovation.” USA Today (Mon., January 5, 2015): 7A.
(Note: ellipses added.)
(Note: the online version of the commentary has the date January 4, 2015, and has the title “Tax Destroys Jobs and Innovation: Opposing View.”)

Hamilton Was an Autodidact

Others who might be considered autodidacts include Andrew Carnegie, Winston Churchill, Bill Gates, Mark Zuckerberg, and Guglielomo Marconi. When the self-taught can achieve so much, it raises the question of whether we over-emphasize formal education? (Chernow also mentions Hamilton being an autodidact on pages 110, 206, and 682.)

(p. 42) Hamilton’s early itinerary in America closely mirrored the connections of Hugh Knox. Through Knox, he came to know two of New York’s most eminent Presbyterian clergymen: Knox’s old mentor, Dr. John Rodgers– an imposing figure who strutted grandly down Wall Street en route to church, grasping a gold-headed cane and nodding to well-wishers–and the Reverend John M. Mason, whose son would end up attempting an authorized biography of Hamilton. Through another batch of Knox introductory letters, Hamilton ended up studying at a well-regarded preparatory school across the Hudson River, the Elizabethtown Academy. Like all autodidacts, Hamilton had some glaring deficiencies to correct and required cram courses in Latin, Greek, and advanced math to qualify for college.

Source:
Chernow, Ron. Alexander Hamilton. New York: The Penguin Press, 2004.

Conscientiousness and Openness Matter More than Intelligence

(p. 2) In a 2014 paper, the Australian psychology professor Arthur E. Poropat cites research showing that both conscientiousness (which he defines as a tendency to be “diligent, dutiful and hardworking”) and openness (characterized by qualities like creativity and curiosity) are more highly correlated with student performance than intelligence is. And, he notes, ratings of students’ personalities by outside observers — teachers, for instance — are even more strongly linked with academic success than the way students rate themselves. The strength of the personality-performance link is good news, he writes, because “personality has been demonstrated to change over time to a far greater extent than intelligence.”

For the full commentary, see:
ANNA NORTH. “Should Schools Teach Personality?” The New York Times, SundayReview Section (Sun., JANUARY 11, 2015): 2.
(Note: the online version of the commentary has the date JANUARY 10, 2015.)

Relevant articles by Poropat are:
Poropat, Arthur E. “A Meta-Analysis of the Five-Factor Model of Personality and Academic Performance.” Psychological Bulletin 135, no. 2 (March 2009): 322-38.
Poropat, Arthur E. “Other-Rated Personality and Academic Performance: Evidence and Implications.” Learning and Individual Differences 34 (August 2014): 24-32.

The Case that Hamilton Was Better than Jefferson

One of my entrenched beliefs has been that Thomas Jefferson was one of the great heroes of human history, and Alexander Hamilton was not. It is rare that I read something that changes my entrenched beliefs. But Ron Chernow’s Alexander Hamilton did that. He makes a strong (and long) case that Alexander Hamilton was mainly a decent, brilliant, courageous, hard-working, self-made man, who not only talked the talk on liberty, but walked the walk (taking fire in the revolution, and strongly opposing slavery). He wasn’t perfect in either his personal life or his beliefs. But he now has my vote as one of the great heroes of human history (and Jefferson does not).
In the next few weeks, I will quote several of the most revealing or thought-provoking passages of Chernow’s book.
PS: I also previously learned a lot from Chernow’s Titan, a big book about a big entrepreneur.

Main book discussed:
Chernow, Ron. Alexander Hamilton. New York: The Penguin Press, 2004.

Other book, briefly mentioned:
Chernow, Ron. Titan: The Life of John D. Rockefeller, Sr. New York: Random House, 1998.

Free Market Tour Guide Challenges Savannah’s Attack on Free Speech

(p. A25) SAVANNAH, Ga. — Especially when she sips French onion soup at a restaurant that was featured in the Julia Roberts movie “Something to Talk About,” Michelle Freenor is an irrepressible tour guide.
She rattles off the history of Methodism in this city, as well as tidbits about William T. Sherman’s March to the Sea. She discusses the canopy of Spanish moss that hangs above Savannah’s streets, whether “Jingle Bells” was actually composed here, and just how haunted one of the country’s largest historic landmark districts might be.
But Ms. Freenor has also emerged in recent weeks in a new role: plaintiff in a federal lawsuit that could reshape Savannah’s lucrative and potent tourism industry. Backed by a nonprofit law firm with libertarian leanings, Ms. Freenor and three others, including her husband, are challenging the Savannah ordinance that requires tour guides to hold licenses and pass regular academic and medical examinations.
“It’s the free market that made us successful, not the City of Savannah,” said Ms. Freenor, 43. “You shouldn’t have to pass a test to be able to tell people where the best ice cream in Savannah is.”
. . .
“What tour guides do is talk for a living,” said Robert Johnson, one of Ms. Freenor’s lawyers. “They’re just like stand-up comedians, journalists or novelists. And in this country, you don’t need a license from the government to be able to talk.”

For the full story, see:
ALAN BLINDER. “Lawsuit May Reshape Tourist Industry in History-Rich Savannah.” The New York Times, First Section (Sun., DEC. 21, 2014): A25 & A31.
(Note: ellipsis added.)
(Note: the online version of the story has the date DEC. 20, 2014. The online version says that the New York paper version of the article started on p. 28. It does not say on what page of that edition, the article continued. My page numbers are from the National Edition, which I usually receive.)

Mandated Health Treatment Regulations Are Often Reversed

(p. A25) After spending nearly two decades in medicine, I am still amazed by how spare the evidence is on which we doctors base our medical decisions. Treatment guidelines, often accompanied by a de facto mandate, are frequently reversed.
Only a few years ago, for example, beta-blocker drugs were routinely recommended for almost all patients undergoing noncardiac surgery. Since then, research has shown that these drugs may significantly increase the risk of stroke at the time of surgery. I remember colleagues questioning the beta-blocker recommendation for certain patients and being admonished for not being “evidence-based.” I shudder to think how many patients were left disabled by strokes because of the blanket adoption of this standard.
What is in vogue today is often discarded tomorrow. Hormone replacement therapy for women after menopause is an example of a once widely implemented treatment that we have now largely abandoned. In September, in response to new research, the American College of Cardiology revoked a major recommendation on heart-attack treatment. “Science is not static but rather constantly evolving,” said its president, Patrick T. O’Gara, in explaining the decision.
. . .
Instead of being allowed to deliver “patient-centered” care, many physicians feel they are being co-opted by regulations. Some feel pressured to prescribe “mandated” treatment, even to frail older adults who may not benefit. Guidelines are supposed to assist and advise. But all too often, recommended care in certain situations becomes mandated care in all situations.

For the full commentary, see:
SANDEEP JAUHAR. “Don’t Homogenize Health Care.” The New York Times (Thurs., DEC. 11, 2014): A25.
(Note: the online version of the commentary has the date DEC. 10, 2014.)

Private Power Lights the Darkness

(p. A10) NUSEIRAT CAMP, Gaza Strip–It was just after sunset when the power went out in this Palestinian refugee camp. Within seconds, Ali al-Majdalawi flipped a switch on a blue generator in his backyard and the lights in 500 homes flickered back on again.
The 64-year-old patriarch runs what he calls the A. Majdalawi Electricity Co., a pop-up utility that consists of three generators and a spider’s web of power lines radiating from an empty lot he owns in the camp.
Mr. Majdalawi has no license to operate his company. But he does have an invoice pad at the ready and boasts a long list of customers including five mosques, a library and a police station.
. . .
Along with three partners, Mr. Majdalawi, a retired school official for the U.N., invested $80,000 of their savings to buy several diesel-powered generators two years ago and set about building their own power-delivery network.
The community of about 65,000 began in 1948, the year of Israel’s creation, when hundreds of families displaced by war between Jews and Arabs set up rows of temporary dwellings. Decades later, the refugees and their descendants still live here, tightly packed among schools run by the United Nations and a cemetery built into a sand dune at the center of town.
Because his company is private, Mr. Majdalawi couldn’t use municipal power polls to string up lines. He and his sons asked neighbors to let them use the walls of their homes for the wiring and allow crews to come in for periodic maintenance.
In most other respects, the business runs much like any other electricity company. Customers apply to join the grid and if approved, one of Mr. Majdalawi’s sons enters their names into a computer for monthly billing. Most clients request two amperes, enough to run lights, a television and a computer during blackouts. The price is 120 shekels a month, about $30.
“It is an alternate grid,” explained Mr. Majdalawi’s son, Rafet, the company’s chief accountant.
Deya Shaheen, a 25-year-old barber, said Mr. Majdalawi’s electricity has kept his year-old shop in business. The electric razors and the lights he uses to light the shop when customers drop in at night are powered on the three amperes he receives from the grid.On many nights, his shop is filled with young men looking for somewhere to watch soccer matches on television.
“Look, the power thing destroys your life,” he said. “People go to bed early not because they are sleepy, but because there is no power. There is nothing to do, no TV, no Internet. It is just dark.”

For the full story, see:
NICHOLAS CASEY. “Entrepreneur Fills in Gaza Electricity Gap; Palestinian Territory’s One Power Plant Meets Barely a Quarter of Demand, Posing an Obstacle in Reconstruction Efforts.” The Wall Street Journal (Weds., DEC. 24, 2014): A10.
(Note: ellipsis added.)
(Note: the online version of the story has the date DEC. 23, 2014, and has the title “Entrepreneur Fills in Gaps in Gaza Electricity Supplies; Palestinian Territory’s One Power Plant Meets Barely a Quarter of Demand.”)

The “Miracle Machines” of Farming

(p. 75) Nobody had washing machines, vacuum cleaners, or incandescent light bulbs. But the farmers did have their miracle machines. In fifteen years, the Lucas family had gone from a walking plow pulled along behind a mule, to a riding plow, in which horses carried the blade through the soil, to a fine-tuned internal combustion plow.
“Machinery is the new Messiah,” said Henry Ford, and though that sounded blasphemous to a devout sodbuster, there was something to it. Every ten seconds a new car came off Ford’s factory line, and some of them were now parked next to dugouts in No Man’s Land.

Source:
Egan, Timothy. The Worst Hard Time: The Untold Story of Those Who Survived the Great American Dust Bowl. Boston: Houghton Mifflin, 2006.

“Valuable Things Should Be Paid For . . . Music Should Not Be Free”

(p. R10) Music is art, and art is important and rare. Important, rare things are valuable. Valuable things should be paid for. It’s my opinion that music should not be free, and my prediction is that individual artists and their labels will someday decide what an album’s price point is. I hope they don’t underestimate themselves or undervalue their art.

For the full commentary, see:
Swift, Taylor. “WSJ 125 (A Special Report): Music — it’s Too Soon to Write Off the Album: Yes, Musicians Aren’t Selling as Many of them; but Taylor Swift Argues that the Best Artists Will always Find Ways to Break through to the Audience.” Wall Street Journal (Tues., July 8, 2014): R10.
(Note: the online version of the commentary has the date July 7, 2014, and has the title “For Taylor Swift, the Future of Music Is a Love Story.”)

More Than 200,000 Volunteer to Die if They Can Be on First (One Way) Trip to Mars

(p. D2) When Seth Shostak, an astronomer who scans the cosmos for signs of extraterrestrial intelligence, asks middle school students how many of them want to go to Mars, all hands shoot up. When he asks how many would rather design robots that go to Mars, most hands drop back to their desks.
And when he asks general audiences how many would go to Mars even if it meant dying a few weeks after arriving, he invariably finds volunteers in the crowd. “I kid you not,” said Dr. Shostak, the director of the Center for SETI Research. “People are willing to risk everything just to see Mars, to walk on the surface of our little ruddy buddy.”
. . .
There is a catch, they say. Where NASA-style flight plans are designed on the Apollo moonshot model of round-trip tickets, the “one” in Mars One means, starkly, one way. To make the project feasible and affordable, the founders say, there can be no coming back to Earth. Would-be Mars pilgrims must count on living, and dying, some 140 million miles from the splendid blue marble that all humans before them called home.
Nevertheless, enthusiasm for the Mars One scheme has been of middle-school proportions. Last year, the outfit announced that it was seeking potential colonists and that anybody over age 18 could apply, advanced degrees or no. Among the few stipulations: Candidates must be between 5-foot-2 and 6-foot-2, have a ready sense of humor and be “Olympians of tolerance.” More than 200,000 people from dozens of countries applied. Mars One managers have since whittled the pool to some 660 semifinalists.

For the full story, see:
Angier, Natalie. “Basics; a One-Way Trip to Mars? Many Would Sign Up.” The New York Times (Tues., Dec. 9, 2014): D2.
(Note: ellipsis added.)
(Note: the online version of the story has the date Dec. 8, 2014.)

“You Don’t Reach Serendip by Plotting a Course for It”

(p. 320) As John Barth wrote in The Last Voyage of Somebody the Sailor, “You don’t reach Serendip by plotting a course for it. You have to set out in good faith for elsewhere and lose your bearings serendipitously.”28 The challenge for educational institutions, government policy, research centers, funding agencies, and, by extension, all modern medicine, will be how to encourage scientists to lose their bearings creatively. What they discover may just save our lives!

Source:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.
(Note: italics in original.)