Berkeley Environmentalist Sticks to Her Knitting

StofleShelbyGathersWool2011-11-10.jpg “Avid knitter Shelby Stofle, gathering wool from sheep in Vacaville Calif., hopes to set up a business making scarves and selling them at craft fairs.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A5) Shelby Stofle graduated in December from the University of California at Berkeley with $10,250 in student-loan debt–and no job offers from a dozen applications.

The 24-year-old had hoped to work in environmental conservation or sustainable agriculture but struck out even at a grocery store near her rural hometown of Suisun City, Calif.
. . .
With many employment options exhausted, she said she feels her best shot is to set up her own business, selling her hand-made scarves at craft fairs and farmers’ markets.

For the full story, see:
VAUHINI VARA. “As Jobs Vanish, Sticking to Knitting.” The Wall Street Journal (Mon., OCTOBER 31, 2011): A5.
(Note: ellipsis added.)

For-Profit Entrepreneur Brings Good Things to Bangladesh

PolakPaulEntrepreneur2011-11-09.jpg“INVENTOR Paul Polak creates cheap and effective devices to help the poor.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. D4) If necessity is the mother of invention, Paul Polak is one of its fathers.

For 30 years Dr. Polak, a 78-year-old former psychiatrist, has focused on creating devices that will improve the lives of 2.6 billion people living on less than $2 a day. But, he insists, they must be so cheap and effective that the poor will actually buy them, since charity disappears when donors find new causes.
Inventing a new device is only the beginning, he says; the harder part is finding dependable manufacturers and creating profitable distributorships. The “appropriate technology” field, he argues, is “dominated by tinkerers and short of entrepreneurs.”
His greatest success has been a treadle pump that lets farmers raise groundwater in the dry season, when crops fetch more money. He has sold more than two million, he said.
. . .
Q. What got you interested in poverty?
. . .
Q. And in third-world poverty?
A. My wife’s a Mennonite, and they had programs in Bangladesh. It had hit me between the eyes that homeless people in Denver were living on $500 a month, but there were people overseas living on $30 a month. So I took a trip to Bangladesh.
Some farmers were using hand pumps, but biomechanically, that’s a lousy way to raise water. A Mennonite guy had invented a rower pump that would pull up enough to water a half-acre of vegetables. They had installed 2,000 over five years, and those farmers seemed to be making a lot of money, so I said, “Why don’t we do a project, with an objective of selling 25,000 a year?”
We hit that pretty quickly. One or two Mennonites objected — they considered the idea of selling something to poor people immoral. But we kept at it, and then we found the treadle pump. It was brilliantly simple, it could be manufactured by local workshops, and a local driller could dig a 40-foot well and install it for $25. Studies showed that farmers made $100 in one season on that investment.
We talked to 75 little welding shops where they make things like bedsprings, and jawboned them into making treadle pumps. We went to people who sold things like toilet bowls, and cut a deal with them to be dealers. We trained 3,000 tinkerers to be well-drillers. We hired troubadours to write songs about treadle pumps, and we’d pass out leaflets when they performed. We even produced a 90-minute Bollywood movie.
. . .
Q. What’s the biggest mistake aid agencies make?
A. As we were developing our pump, the World Bank was subsidizing deep-well diesel pumps that could cover 40 acres. The theory was that you’d get a macroeconomic benefit, but it was also very destructive to social justice. The big pumps were handed out by government agents; the government agent was bribeable. The pump would go to the biggest landholder, and he’d become a waterlord.

Q. There have been some well-known failures in this field, like One Laptop Per Child and the Playpump. Can you say why?
A. The laptop was a middle-class device that doesn’t communicate with people who don’t read and write. It cost $100, plus it used the charity model — buy two, give one away. The Playpump, which was a children’s merry-go-round that pumps water, cost $11,000. Women in Africa walk for hours to a well, and then jiggle the pump handle for 60 seconds. This replaces the jiggling. How important is that? And they break. For $11,000, you could dig five wells and eliminate the walk.

Q. What are your principles for success?
A. In 1981, I said, “I’m going to interview 100 $1-a-day families every year, come rain or shine, and learn from them first.”
Over 28 years, I’ve interviewed over 3,000 families. I spend about six hours with each one — walking with them through their fields, asking what they had for breakfast, how far their kids walk to school, what they feed their dog, what all their sources of income are. This is not rocket science. Any businessman knows this: You’ve got to talk to your customers.

For the full story, see:
DONALD G. McNEIL Jr. “A CONVERSATION WITH PAUL R. POLAK; An Entrepreneur Creating Chances at a Better Life.” The New York Times (Tues.,September 27, 2011): D4.
(Note: ellipses added; bold in original.)
(Note: the online version of the article is dated September 26, 2011.)

Haiku Economist Ziliak Praises and Analyzes Jobs Haiku

On 11/8/11 I received a gracious and interesting email from Steve Ziliak praising and analyzing my recent Jobs haiku. Economist Ziliak has written haiku and written about haiku.
He gave me his permission to share his email:

Dear Art,
Congratulations on your prize-winning haiku about the economy! I read all of the haiku selected by the Kauffman Foundation and posted by The Economist. Meaning no disrespect for the hard-working others, Steve Ziliak aka The Haiku Economist agrees that your haiku was the best of the bunch. Pairing jobs-with-Jobs is potentially hazardous to poetry to the point of being country-newspaper corny. But you’ve pulled it off well in a “senryu” thanks to the dead-serious yet softly spoken third line, “innovate to grow”. Thus “jobs” and “Jobs” serve as “cut words” (kiru or kireji), taking us from the literal to the figurative and back again (that is, to innovation, output, and employment). Well done.
Here are a few articles on the theory, Art, and history of haiku economics, which I first developed ten years ago (in 2001) when I was teaching at Georgia Tech:
http://www.poetryfoundation.org/poetrymagazine/article/240970
http://stephentziliak.com/doc/IJPEE0101-0209%20ZILIAK.pdf
http://stephentziliak.com/doc/Ziliak%20Verses%20of%20Economy%201.pdf
http://www.economist.com/blogs/prospero/2011/01/poetry_and_economics
http://www.tandfonline.com/doi/abs/10.1080/08935690500241501#preview
(In 2002 I published “Haiku Economics” in Rethinking Marxism;
this link here is to “Haiku Economics, No. 2”, published in 2005).
And here is a link to my students’ achievements with haiku economics:
http://sites.roosevelt.edu/sziliak/haiku-economics-by-roosevelt-students/
Congrats again, Art, and keep writing!
Things beyond number
all somehow brought to mind by
blossoming cherries.
– Basho
All the best,
Steve aka The Haiku Economist
Stephen T. Ziliak
Trustee and Professor of Economics
Roosevelt University
430 S. Michigan Ave
Chicago, IL 60605
http://sites.roosevelt.edu/sziliak
http://stephentziliak.com

Wozniak Waits 20 Hours to Be First in Line for iPhone 4S; They Say “4S” Means “For Steve”

WozniakIphone4S2011-11-04.jpg“Apple co-founder Steve Wozniak uses the voice feature on his new Apple iPhone 4S at the Apple Store in Los Gatos, Calif., on Friday. Wozniak, who created Apple with Steve Jobs in a Silicon Valley garage in 1976, waited 20 hours in line to be the first customer at the store to buy the new iPhone.” Source of caption and photo: online version of the Omaha World-Herald article cited below.

What a classy and wonderfully symbolic way to pay tribute to his friend and the values they shared.

Source of photo and caption:
AP. “Even Wozniak stood in line for new iPhone.” Omaha World-Herald (Saturday October 15, 2011): 9A.

Art Diamond Defended Air Conditioning in WPR Debate with Stan Cox

From archive of the Joy Cardin show:

Wednesday
6/8/2011
7:00 AM

Joy Cardin – 110608B
After seven, Joy Cardin asks her guests a weather-related Big Question: “Do we rely too much on air-conditioning?”

Guests:
– Stan Cox, Senior Scientist, The Land Institute. Author, “Losing Our Cool: Uncomfortable Truths About Our Air Conditioned World” Author’s blog: http://losingourcool.wordpress.com
– Arthur Diamond, Professor of Economics, University of Nebraska at Omaha. Author, conference paper, “Keeping Our Cool: In Defense of Air Conditioning” (http://artdiamond.com/)

Link to streaming version of debate between Art Diamond and Stan Cox (author Losing Our Cool) on whether air conditioning is good (Diamond) or bad (Cox). Broadcast on Joy Cardin Show on the Wisconsin Public Radio network on Weds., June 8, 2011, from about 7:00 – 7:50 AM: http://wpr.org/webcasting/play-wma.cfm?FileName=jca110608b.wma&pagename=/webcasting/audioarchives_display.cfm

More on Jobs Haiku

My Jobs haiku has received some discussion in the blogosphere.

It is reproduced, along with haikus submitted by other economics bloggers, in an entry of the blog of the Economist magazine:
http://www.economist.com/blogs/freeexchange/2011/10/poetry?fsrc=scn/tw/te/bl/theeconomyinhaiku

I especially like a comment to the Economist blog entry:

CaitP

Oct 26th 2011 7:59 GMT

What a creative way to describe the economy. It is so interesting to see how everyone interprets the economy through poem. I personally like the “jobs and Jobs” one. I think it describes our economy, and gives a snapshot of a major moment in our history.

kbuch5

Nov 2nd 2011 1:41 GMT

It is interesting to see people’s opinions about the economy being put into haikus. My favorite out of these is the haiku that refers to the fact that we have lost Steve Jobs and many jobs for US citizens. And in order to regain these jobs we are going to need more people to contribute in ways Steve Jobs has.

(Note: I added kbuch5’s comment on 11/7/11.)

CNBC correspondent Jane Wells describes my haiku as “poetic” on her blog:
http://www.cnbc.com/id/45078738

Innovative Entrepreneurs Finance Basic Research in Mariana Trench

OceanDepthGraphic2011-08-10.jpgSource of graphic: online version of the NYT article quoted and cited below.

(p. D1) A new generation of daredevils is seeking to plunge through nearly seven miles of seawater to the bottom of a rocky chasm in the western Pacific that is veiled in perpetual darkness. It is the ocean’s deepest spot. The forbidding place, known as the Challenger Deep, is so far removed from the warming rays of the sun that its temperature hovers near freezing.

“When I was a kid, I loved not only amazing ocean exploration but space, too,” James Cameron, the director of “Avatar,” “Titanic” and “The Abyss,” said in an interview. “I can think of no greater fantasy than to be an explorer and see what no human eye has seen before.”
The would-be explorers can afford to live their dreams because of their extraordinarily deep pockets. Significantly, their ambitions far exceed those of the world’s seafaring nations, which have no plans to send people so deep.
The billionaires and millionaires include Mr. Cameron, the airline mogul Richard Branson and the Internet guru Eric E. Schmidt. Each is building, planning to build or financing the construction of minisubmarines meant to transport them, their friends and scientists into the depths. Entrepreneurs talk of taking tourists down as well.
The vehicles, meant to hold one to three people, are estimated to cost anywhere from $7 million to $40 million.

For the full story, see:
WILLIAM J. BROAD. “Ambitions as Deep as Their Pockets.” The New York Times (Tues., August 2, 2011): D1 & D4.
(Note: the online version of the article is dated August 1, 2011.)

Schumpeter on the Difference Between “Making a Road and Walking Along It”

(p. 85) Carrying out a new plan and acting according to a customary one are things as different as making a road and walking along it.

Source:
Schumpeter, Joseph A. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Translated by Redvers Opie. translation of 2nd German edition that appeared in 1926; translation first published by Harvard in 1934 ed. New Brunswick, NJ: Transaction Publishers, 1983.

Fewer Entrepreneurial Startups Leads to Fewer New Jobs

JobsCreatedByStartupsGraph2011-10-18.jpg

Source of graph: online version of the WSJ article quoted and cited below.

(p. B1) Start-ups fuel job growth disproportionately since by definition they are starting and growing, adding employees, says the Kauffman Foundation, which researches and advocates for entrepreneurship.
Though there was start-up activity during and after the recession, driven partly by unemployed individuals putting out a shingle, Bureau of Labor Statistics data show the total number of “births” of new businesses declined sharply from previous years. What’s more, the number of people employed by new businesses that are less than a year old–a common definition of a start-up–also declined. That trend started a decade ago.
In a recent report on entrepreneurship, the BLS said the number of new businesses less than a year old that existed in the year ending March 2010 “was lower than any other year” since its research began in 1994. The downdraft started with the recession.
“More people who were self-employed failed and left self-employment than people who entered,” says Scott Shane, an economics professor at Case Western Reserve University who wrote a study on entrepreneurship and the recession for the Cleveland Fed. “The net effect is negative, not positive, largely because downturns hurt those in business and those thinking of entering business.”

For the full story, see:
JOHN BUSSEY. “THE BUSINESS; Shrinking in a Bad Economy: America’s Entrepreneur Class.” The Wall Street Journal (Fri., AUGUST 12, 2011): B1 & B2.
(Note: ellipsis added.)

The BLS report mentioned above can be found at: http://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm

The Scott Shane commentary mentioned above can be found at:
http://www.clevelandfed.org/research/commentary/2011/2011-04.cfm

YoungFirmsGraph2011-10-18.jpg

Source of graph: online version of the WSJ article quoted and cited above.

Jobs Haiku

jobs and Jobs are gone
need more Jobs to get more jobs
innovate to grow

Arthur Diamond

In his Q4 survey of influential economics bloggers, Tim Kane of the Kauffman Foundation whimsically requested that we create a haiku that speaks to the state of the economy. I sent him my haiku, above, on Sunday, October 16, 2011.
(Do not worry—I have no plans to retire and devote myself to writing poetry.)

Larry Page’s Wonderful Crusade to Save Us Time

InThePlexBK.jpg

Source of book image: http://www.kurzweilai.net/images/intheplex.jpg

On C-SPAN’s book TV I saw the last part of an interesting and entertaining interview with Steven Levy that was originally recorded at the Computer History Museum on April 6, 2011. Levy is the author of of In the Plex which I have not read, but which is now on my to-read list.
At the end of the interview, Levy read a passage from his book about how Larry Page is obsessed with reducing latency, which is a technical term for how long we have to wait for something to happen on a computer.
Isn’t it wonderful that Larry Page is on a crusade to save us from wasted time?

Book discussed above:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: “latency” appears on the following pages of Steven Levy’s book: 93, 184, 185, 186, 187, 207, 262, and 398.)