Category: Entrepreneurship

Billions in Subsidies for Solar and Wind Are Wasted by Delayed Approvals of Connections to a Slow-Growing Grid

(p. A1) Plans to install 3,000 acres of solar panels in Kentucky and Virginia are delayed for years. Wind farms in Minnesota and North Dakota have been abruptly canceled. And programs to encourage Massachusetts and Maine residents to adopt solar power are faltering.

The energy transition poised for takeoff in the United States amid record investment in wind, solar and other low-carbon technologies is facing a serious obstacle: The volume of projects has overwhelmed the nation’s antiquated systems to connect new sources of electricity to homes and businesses.

So many projects are trying to squeeze through the approval process that delays can drag on for years, leaving some developers to throw up their hands and walk away.

More than 8,100 energy projects — the vast majority of them wind, solar and batteries — were waiting for permission to connect to electric grids at the end of 2021, up from 5,600 the year before, jamming the system known as interconnection.

. . .

(p. A15) It now takes roughly four years, on average, for developers to get approval, double the time it took a decade ago.

And when companies finally get their projects reviewed, they often face another hurdle: the local grid is at capacity, and they are required to spend much more than they planned for new transmission lines and other upgrades.

. . .

Electricity production generates roughly one-quarter of the greenhouse gases produced by the United States; cleaning it up is key to President Biden’s plan to fight global warming. The landmark climate bill he signed last year provides $370 billion in subsidies to help make low-carbon energy technologies — like wind, solar, nuclear or batteries — cheaper than fossil fuels.

But the law does little to address many practical barriers to building clean energy projects, such as permitting holdups, local opposition or transmission constraints. Unless those obstacles get resolved, experts say, there’s a risk that billions in federal subsidies won’t translate into the deep emissions cuts envisioned by lawmakers.

. . .

Delays can upend the business models of renewable energy developers. As time ticks by, rising materials costs can erode a project’s viability. Options to buy land expire. Potential customers lose interest.

. . .

When a proposed energy project drops out of the queue, the grid operator often has to redo studies for other pending projects and shift costs to other developers, which can trigger more cancellations and delays.

It also creates perverse incentives, experts said. Some developers will submit multiple proposals for wind and solar farms at different locations without intending to build them all. Instead, they hope that one of their proposals will come after another developer who has to pay for major network upgrades. The rise of this sort of speculative bidding has further jammed up the queue.

“Imagine if we paid for highways this way,” said Rob Gramlich, president of the consulting group Grid Strategies. “If a highway is fully congested, the next car that gets on has to pay for a whole lane expansion. When that driver sees the bill, they drop off. Or, if they do pay for it themselves, everyone else gets to use that infrastructure. It doesn’t make any sense.”

. . .

Massachusetts and Maine offer a warning, said David Gahl, executive director of the Solar and Storage Industries Institute. In both states, lawmakers offered hefty incentives for small-scale solar installations. Investors poured money in, but within months, grid managers were overwhelmed, delaying hundreds of projects.

“There’s a lesson there,” Mr. Gahl said. “You can pass big, ambitious climate laws, but if you don’t pay attention to details like interconnection rules, you can quickly run into trouble.”

For the full story, see:

Brad Plumer. “U.S. Solar Goal Stalled by Wait On Creaky Grid.” The New York Times (Friday, February 24, 2023): A1 & A15.

(Note: ellipses added.)

(Note: the online version of the story was updated Feb. 28, 2023, and has the title “The U.S. Has Billions for Wind and Solar Projects. Good Luck Plugging Them In.”)

Brilliant, Courageous, Charming, WASP Publisher Defended Human Rights

(p. A24) John Macrae III, a dashing publisher who gambled on groundbreaking books and dauntlessly defended authors who defied injustices committed by their own governments, died on Feb. 1 [2023] at his home in Manhattan.

. . .

Mr. Macrae was among those who urged his fellow publishers to boycott the Moscow Book Fair in 1983 to protest the Soviet Union’s treatment of dissidents.

He flew to Poland with his stepson Nick and a portable folding kayak to navigate the Vistula River and meet with anti-government leaders undetected. He then met with intermediaries for Lech Walesa, leader of the outlawed Solidarity trade union, and persuaded him to write his autobiography.

Mr. Macrae also championed Salman Rushdie when Ayatollah Ruhollah Khomeini of Iran in 1989 accused Mr. Rushdie of blaspheming Islam in his novel “The Satanic Verses” and enjoined Muslims to kill him.

“Jack traveled to Cuba and Iran on human rights missions,” Jeri Laber, a founder of Human Rights Watch, said, noting that in addition to making “several trips on his own to Communist Poland,” he traveled to Communist Czechoslovakia to meet with the dissident playwright Vaclav Havel, later to become the Czech Republic’s first president.

. . .

Amy Hertz, a former Dutton editor, wrote in The Huffington Post in 2010 that as a publisher Mr. Macrae “went after memoirs from apartheid South Africa and the end of the Cultural Revolution in China so that people would understand the suffering caused by lack of freedom.” And, she said, “he brought over the great Russian poets Yevtushenko and Voznesensky, and he worked with them to get Russian dissidents released from prison.”

“Jack’s brilliance,” Ms. Hertz added, “and what he passed along to me, is in not worrying about what’s on the page you’re looking at when evaluating a proposal or a manuscript. His brilliance is in hearing the thinking behind the author’s words, inchoate in the holy mess that when I worked for him was usually spread across his office floor. He taught me to find that kernel and to burnish it.”

. . .

“He was probably the last of the old-time, gentleman WASP publishers — born into the business,” said Charles McGrath, a former editor of The New York Times Book Review. “He had immense personal charm, and it was hard not to get swept up by him.”

Late in life, Mr. McGrath added, “he found out he had multiple sclerosis, but didn’t let that slow him down. He zipped around the office — and the city, for that matter — in a motorized wheelchair, as cheerful as ever.”

For the full obituary, see:

Sam Roberts. “John Macrae III, 91, Publisher And Rights Champion, Is Dead.” The New York Times (Friday, February 24, 2023): A24.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary was updated Feb. 27, 2023, and has the title “John Macrae III, Eclectic Publisher and Rights Champion, Dies at 91.”)

Joyce Meskis Was the Principled Entrepreneur Behind Denver’s Wonderful Tattered Cover Bookstore

The Tattered Cover in Denver is my favorite bookstore. I remember one time as I was exiting, running into Scott Parris, then an economics editor at Oxford University Press, who would later be the acquisition editor for my Openness to Creative Destruction. I remember he asked me if I had seen any books in economics in the Tattered Cover that looked promising. On another memorable occasion I visited the bookstore with my daughter Jenny’s Montessori middle-school class as a bookend to the class’s trip to Estes Park. It is a large welcoming bookstore, with comfortable chairs, good coffee, and a wonderful and diverse selection of books. At least it was during the years that Joyce Meskis owned it. (It may still be–I have not visited for several years.)

(p. B12) In 1995 the writer A.E. Hotchner presented Joyce Meskis, owner of the Tattered Cover Book Store in Denver, with a PEN American Center award recognizing her efforts on behalf of freedom of speech and expression.

“In this room,” he said at the awards ceremony, “there are writers, editors, publishers, and the rest of you are readers. If this woman fails, we all fail. We don’t exist unless the bookseller can sell us.”

And that was before Ms. Meskis went all the way to the Colorado Supreme Court to prevent law enforcement officials from knowing what books one of her customers had bought.

Ms. Meskis, who built the Tattered Cover into one of the most successful independent bookstores in the country, died on Dec. 22 [2022] in Denver, the National Coalition Against Censorship announced.

. . .

In addition to creating a bookstore famed for its vast selection and bibliophile-friendly atmosphere, Ms. Meskis often took a stand in matters related to censorship and the First Amendment. Sometimes those positions were not easy ones to embrace.

. . .

To Ms. Meskis, owning a bookstore was about more than just sales. As she told The Arizona Daily Star in 1992, “It’s my view that as booksellers we have our own version of the Hippocratic oath — to maintain the health and well-being of the First Amendment.”

. . .

Her stances didn’t always involve government regulation and court battles. In the late 1980s, she vowed to continue selling Salman Rushdie’s 1988 novel, “The Satanic Verses,” despite anonymous telephone threats after Ayatollah Ruhollah Khomeini of Iran declared the book blasphemous and called for the author’s death.

. . .

If Ms. Meskis was celebrated for her First Amendment stands, she took that spotlight reluctantly.

“Trouble finds us, we don’t go looking for it,” she told Publishers Weekly, an oft-repeated line. “When you’re in a general community, you will always have challenges. There are things I didn’t expect. I didn’t expect so many court battles. You’ve got to do what you’ve got to do.”

For the full obituary, see:

Neil Genzlinger. “Joyce Meskis, 80, Bookseller Who Defended Readers’ Rights.” The New York Times (Thursday, January 12, 2023): B12.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary was updated Jan. 11, 2023, and has the title “Joyce Meskis, Bookseller Who Defended Readers’ Rights, Dies at 80.”)

United Nations “Innovation Matters” Podcast Posts Episode on Diamond’s Openness to Creative Destruction

The United Nations’s “Innovation Matters” podcast on 2/24/23 posted Part 1 of a discussion of my book Openness to Creative Destruction.  Anders and I had an animated conversation, and a lengthy one, so the United Nations says we can look forward to them posting a Part 2 and a Part 3.

You can listen to the podcast on the following platforms: SoundCloud, Spotify, Apple Music, and Amazon Music.

Flourishing Is the End, Profit Can Be a Means

Glen Hubbard has long been a thoughtful defender of entrepreneurial capitalisms. The article quoted below from The New York Times suggests that he is moving away from that. Is that true, or is The New York Times misrepresenting the development of Hubbard’s thoughts? I suspect the latter, but I have not kept up with Hubbard’s recent articles or lectures. Profits are a key means to enable human flourishing. The two are not inconsistent. Flourishing is the end, profit can be a means.

(p. C1) One zigs, the other zags. One teases the passer-by with bands of translucent glass wrapping a core of clear windows; the other, with floors angled in and out — a gentle architectural mambo. The pair of buildings that comprise Columbia University’s new business school, on its growing Manhattanville campus, exude a nervous off-kilter energy.

. . .

(p. C4) Glenn Hubbard, the former business school dean who brought the project to fruition, saw the need to break free from fealty to the unregulated free market economy that over decades has led to extraordinary wealth concentration. The idea that business should focus only on making money, attributed to the economist Milton Friedman, “was a simple and direct idea that took over business, banking, even corporate law,” Hubbard explained. “We are trying to come up with a framework that can be more about flourishing, not just profit.”

“The vision now is to bring people together and debate issues going on in the world,” said Costis Maglaras, who was on the faculty as the project was being designed and who succeeded Hubbard.

For the full story, see:

James S. Russell. “A Temple of Capitalism Opens Itself Up.” The New York Times (Saturday, January 7, 2023): C1 & C4.

(Note: ellipsis added.)

(Note: the online version of the story was updated Jan. 9, 2023, and has the title “At Columbia’s $600 Million Business School, Time to Rethink Capitalism.”)

One Cause of Increasing Burnout of Physicians Is “the Politicization of Science”

(p. A25) Ten years of data from a nationwide survey of physicians confirm another trend that’s worsened through the pandemic: Burnout rates among doctors in the United States, which were already high a decade ago, have risen to alarming levels.

Results released this month and published in Mayo Clinic Proceedings, a peer-reviewed journal, show that 63 percent of physicians surveyed reported at least one symptom of burnout at the end of 2021 and the beginning of 2022, an increase from 44 percent in 2017 and 46 percent in 2011. Only 30 percent felt satisfied with their work-life balance, compared with 43 percent five years earlier.

“This is the biggest increase of emotional exhaustion that I’ve ever seen, anywhere in the literature,” said Bryan Sexton, the director of Duke University’s Center for Healthcare Safety and Quality, who was not involved in the survey efforts.

. . .

The increase in burnout is most likely a mix of new problems and exacerbated old ones, Dr. Shanafelt said. For instance, the high number of messages doctors received about patients’ electronic health records was closely linked to increased burnout before the pandemic. After the pandemic, the number of messages from patients coming into physicians’ In Baskets, a health care closed messaging system, increased by 157 percent.

And physicians pointed to the politicization of science, labor shortages and the vilification of health care workers as significant issues.

For the full story, see:

Oliver Whang. “New Survey Suggests An Alarming Increase In Physician Burnout.” The New York Times (Friday, September 30, 2022): A25.

(Note: ellipsis added.]

(Note: the online version of the story has the date Sept. 29, 2022, and has the title “Physician Burnout Has Reached Distressing Levels, New Research Finds.”)

Entrepreneur Andy Yen’s Technology Enables Russians to Elude Censors

(p. A1) After Moscow erected a digital barricade in March [2022], blocking access to independent news sites and social media platforms to hide information about its unfolding invasion of Ukraine, many Russians looked for a workaround. One reliable route they found came from a small Swiss company based nearly 2,000 miles away.

The company, Proton, provides free software that masks a person’s identity and location online. That gives a user in Russia access to the open web by making it appear that the person is logging in from the Netherlands, Japan or the United States. A couple of weeks after the internet blockade, about 850,000 people inside Russia used Proton each day, up from fewer than 25,000.

That is, until the end of March, when the Russian government found a way to block Proton, too.

Targeting Proton was the opening salvo of a continuing back-and-forth battle, pitting a team of about 25 engineers against a country embarking on one of the most aggressive censorship campaigns in recent memory.

Working from a Geneva office where the company keeps its name off the building directory, Proton has spent nine pressure-packed months repeatedly tweaking its technology to avoid Russian blocks, only to be countered again by government censors in Moscow. Some employees took (p. A9) Proton off their social media profiles out of concern that they would be targeted personally.

The high-stakes chess match mirrors what is playing out with growing frequency in countries facing coups, wars and authoritarian rule, where restricting the internet is a tool of repression. The blocks drive citizens to look for workarounds. Engineers at companies like Proton think up new ways for those people to secretly reach the open web. And governments, in turn, seek out new technical tricks to plug leaks.

. . .

Companies rarely discuss being targeted by an authoritarian government out of fear of escalating the conflict. But Andy Yen, Proton’s founder and chief executive, said that after a period of trying to keep its “head down,” Proton wanted to raise awareness about the increasing sophistication of governments, in Russia and elsewhere, to block citizens from reaching the open web and the need for technologists, companies and governments to push back.

. . .

“We’re gearing up for a long fight,” Mr. Yen said in an interview at the company’s office. “Everybody hopes this will have a happy ending, but it’s not guaranteed. We don’t see the light at the end of the tunnel, in fact, but you keep going because if we don’t do it, then maybe nobody else will.”

. . .

The battle took on a “Spy vs. Spy” dynamic in Proton’s headquarters. Mr. Yen said a network of people within the government, telecommunications firms and civil society groups had helped Proton operate in Russia, providing access to local networks and sharing intelligence about how the censorship system worked. But those contacts began to go dark as the Kremlin’s crackdown on dissent intensified.

. . .

Mr. Yen was interrupted during a staff meeting in mid-July with news that Russian censors had come up with an even more elaborate block. A corporate chart from the time shows use dropping off a cliff. Russian engineers had identified what is known as an authentication “handshake,” the vital moment when Proton’s VPN connection gets established before reaching the wider web. Blocking the link made Proton’s service essentially unusable.

“We had no idea what was happening and how they were doing it,” Mr. Cesarano said.

By August, after working around the clock for days to find a fix, Proton acknowledged defeat and pulled its app from Russia. The company has spent the months since then developing a new architecture that makes its VPN service harder to identify because it looks more like a regular website to censorship software scanning a country’s internet traffic. Proton has been successfully testing the system in Iran, where Proton has seen a sharp increase in VPN use during recent political demonstrations.

In Russia, Proton has reintroduced its apps using the new system. Mr. Yen acknowledged that it probably wasn’t a long-term fix. He has confidence in the new technology, but figures Russian engineers will eventually figure out a new way to push back, and the game will continue.

For the full story, see:

Adam Satariano and Paul Mozur. “The Cat-and-Mouse Battle for Russia’s Internet.” The New York Times (Wednesday, December 7, 2022): A1 & A9.

(Note: ellipses, and bracketed year, added.]

(Note: the online version of the story was updated Dec. 9, 2022, and has the title “Inside the Face-Off Between Russia and a Small Internet Access Firm.” )

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.”)

Super PAC Heavily Funded by Associates of Bankrupt and Corrupt FTX, Donated $212,000 to John Fetterman Senate Campaign

(p. A1) In the three years since Mr. Bankman-Fried launched FTX, the company, its executives and its philanthropic arm spent or pledged hundreds of millions of dollars in political and charitable (p. A17) contributions, consulting fees, investments in media outlets and even real estate.

A network of political action committees, nonprofits and consulting firms funded by FTX or its executives worked to court politicians, regulators and others in the policy orbit, with the goal of making Mr. Bankman-Fried the authoritative voice of crypto, while also shaping regulation for the industry and other causes, according to interviews, email exchanges and an encrypted group chat viewed by The New York Times.

. . .

Mr. Bankman-Fried and Ryan Salame, another FTX executive, burst onto the big-money political scene during the 2022 election campaign.

. . .

In early March [2022], representatives for one super PAC, Web3 Forward, were pleased when the campaign of John Fetterman, the Pennsylvania Senate candidate, returned a completed questionnaire expressing support for the cryptocurrency industry, according to people familiar with the situation.

“Need nothing further from Team Fetterman. Thrilled he is pro crypto,” a consultant for Web3 Forward emailed an ally of Mr. Fetterman.

About two months after the email, Web3 Forward began airing an ad casting Mr. Fetterman as a working class champion who was not “gonna get schmoozed by lobbyists.” The super PAC spent nearly $4.7 million boosting Democratic candidates in the midterm elections, mostly in their primary campaigns, including more than $212,000 supporting Mr. Fetterman, who won his race and is set to begin his term Jan. 3 [2023].

. . .

In a statement, Adam Goldberg, a spokesman for Web3 Forward, said that neither Mr. Bankman-Fried, Mr. Salame “nor anyone else at FTX or representing its interests had any role in deciding the candidates we supported.”

But campaign filings show that Web3 Forward received almost all of the roughly $5.9 million it raised in 2021 from GMI PAC, a super PAC for which Mr. Salame was a founding board member. GMI, in turn, received about 32 percent of its nearly $11.6 million from Mr. Salame, Mr. Bankman-Fried and an FTX affiliate.

For the full story, see:

Kenneth P. Vogel, Emily Flitter and David Yaffe-Bellany. “‘It Was Relentless’: Inside a Crypto Exchange’s Bid for Influence.” The New York Times (Wednesday, November 23, 2022): A1 & A17.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date Nov. 22, 2022, and has the title “Inside Sam Bankman-Fried’s Quest to Win Friends and Influence People.”)

Dolly Parton’s Favorite Fictional Hero Is the Little Engine That Could

(p. 10) Who is your favorite fictional hero or heroine? . . .

My favorite hero is the Little Engine That Could. . . .

What kind of reader were you as a child? Which childhood books and authors stick with you most?

When I was a little kid, my dad didn’t want us to have library books around the house because the younger kids would ruin them and he couldn’t afford to replace them. I have always loved “The Little Engine That Could,” so I started my Imagination Library with it to show kids that they can do anything. I’m really proud that we’ve given away over 145,000,000 books to kids and have more than 1.7 million children registered around the world — in fact, last September [2020] was our highest enrollment of children yet. Books were a lifeline to me as a child — I know they make a difference.

For the full interview, see:

“BY THE BOOK; Dolly Parton.” The New York Times Book Review (Sunday, December 6, 2020): 10.

(Note: ellipses added. Questions quoted above are by the anonymous NYT interviewer. Answers are by Dolly Parton.)

(Note: the online version of the interview has the date Dec. 3, 2020, and has the title “BY THE BOOK; Dolly Parton Likes to Read by the Fire in Her Pajamas.”)

Dolly Parton’s favorite fictional hero is the focus of:

Piper, Watty. The Little Engine That Could. New York: Grosset & Dunlap, 1990 [1930].

Bruce Yandle has argued that books like The Little Engine That Could, can help build a culture of entrepreneurship:

Yandle, Bruce. “I Think I Can! Does the Little Engine That Could Matter?” Journal of Private Enterprise 26, no. 2 (Spring 2011): 127-42.

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.”)