Government Wire Inspectors Only Showed Up to Get Their Pay

(p. 121) Edison had originally planned to offer service to the entirety of south Manhattan, south of Canal Street and north of Wall Street, but engineering considerations forced him to carve out a smaller district, bounded by Wall, Nassau, Spruce, and Ferry Streets. Still, his company had to place underground some eighty thousand linear feet of electrical wire. This had never been attempted before, so it should not have been a surprise when H. O. Thompson, the city’s commissioner of public works, summoned Edison to his office to explain that the city would have to be assured that the lines were installed safely. Thompson was assigning five inspectors to oversee the work, whose cost would be covered by an assessment of $5 per day, per inspector, payable (p. 122) each week. When Edison left Thompson’s office, he was crestfallen, anticipating the harassment and delays ahead that would be caused by the inspectors’ interference. On the day that work began, however, the inspectors failed to appear. Their first appearance was on Saturday afternoon, to draw their pay. This set the pattern that the inspectors followed as the work proceeded through 1881 and into 1882.

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Bill Clinton Says U.S. Control of Internet Protects Free Speech

(p. A11) . . . , Mr. Clinton, appearing on a panel discussion at a recent Clinton Global Initiative event, defended U.S. oversight of the domain-name system and the Internet Corporation for Assigned Names and Numbers, or Icann.
. . .
“I understand why the reaction in the rest of the world to the Edward Snowden declarations has given new energy to the idea that the U.S. should not be in nominal control of domain names on the Internet,” Mr. Clinton said. “But I also know that we’ve kept the Internet free and open, and it is a great tribute to the U.S. that we have done that, including the ability to bash the living daylights out of those of us who are in office or have been.
“A lot of people who have been trying to take this authority away from the U.S. want to do it for the sole purpose of cracking down on Internet freedom and limiting it and having governments protect their backsides instead of empower their people.”
Mr. Clinton asked Jimmy Wales, founder of Wikipedia: “Are you at all worried that if we give up this domain jurisdiction that we have had for all these years that we will lose Internet freedom?”
“I’m very worried about it,” Mr. Wales answered. People outside the U.S. often say to him, “Oh, it’s terrible. Why should the U.S. have this special power?” His reply: “There is the First Amendment in the U.S., and there is a culture of free expression.”
He recalled being told on Icann panels to be more understanding of differences in cultures. “I have respect for local cultures, but banning parts of Wikipedia is not a local cultural variation that we should embrace and accept. That’s a human-rights violation.”

For the full commentary, see:
L. GORDON CROVITZ. “INFORMATION AGE; Open Internet: Clinton vs. Obama; The former president strongly defends the current system of oversight by the U.S.” The Wall Street Journal (Mon., MARCH 31, 2014): A11.
(Note: ellipses added.)
(Note: the online version of the commentary has the shorter title “INFORMATION AGE; Open Internet: Clinton vs. Obama.”)

Little Estonia Prepares Defense Against Russia’s Evil Empire

IlvesToomasEstoniaPresident2014-04-23.jpg

Toomis Hendrick Ilves, President of Estonia. Source of photo: online version of the WSJ article quoted and cited below.

(p. A13) Perched alone up in eastern Baltic are Lithuania, Latvia and Estonia. Their fear of Moscow propelled them to become the first and only former Soviet republics to seek the refuge of NATO. But now doubts are appearing. The West has responded tepidly to the Crimean aggression. Military budgets are at historic lows as a share of NATO economies. The alliance, which marked its 65th anniversary on Friday, has never faced the test of a hot conflict with Moscow.

In this new debate over European security, Mr. Ilves plays a role out of proportion to Estonia’s size (1.3 million people) and his limited constitutional powers. A tall man who recently turned 60, he has the mouth of a New Jersey pol–he grew up in Leonia–and wears the bow ties of a lapsed academic. Americans may recall his Twitter TWTR -0.15% feud two years ago over Estonia’s economy with economist Paul Krugman, whom Mr. Ilves called “smug, overbearing & patronizing.”
. . .
Estonia managed on Thursday to get NATO’s blessing to turn the brand-new Amari military airfield near Tallinn into the first NATO base in the country. This small Balt tends to be proactive. While European governments axed some $50 billion from military budgets in the last five year amid fiscal belt-tightening, Estonia is only one of four NATO allies to devote at least 2% of gross domestic product to defense, supposedly the bare minimum for security needs.
“It lessens your moral clout if you have not done what you have agreed to do,” Mr. Ilves says of defense budgets. His barb hits directly at neighboring Lithuania and Latvia, which both spend less than 1% of GDP on their militaries.

For the full commentary, see:
MATTHEW KAMINSKI. “THE SATURDAY INTERVIEW; An American Ally in Putin’s Line of Fire; Estonia’s president, who was raised in New Jersey, on how Crimea has changed ‘everything’ and what NATO should do now.” The Wall Street Journal (Sat., April 5, 2014): A13.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date April 4, 2014.)

Where Ideas Go to Launch Versus Where Ideas Go to Die

(p. 1) PALO ALTO, Calif. — THE most striking thing about visiting Silicon Valley these days is how many creative ideas you can hear in just 48 hours.
. . .
Curt Carlson, the chief executive of SRI International, which invented Siri for your iPhone, recalls how one leading innovator (p. 11) just told him that something would never happen and “then I pick up the paper and it just did.”
What they all have in common is they wake up every day and ask: “What are the biggest trends in the world, and how do I best invent/reinvent my business to thrive from them?” They’re fixated on creating abundance, not redividing scarcity, and they respect no limits on imagination. No idea here is “off the table.”
. . .
What a contrast. Silicon Valley: where ideas come to launch. Washington, D.C., where ideas go to die. Silicon Valley: where there are no limits on your imagination and failure in the service of experimentation is a virtue. Washington: where the “imagination” to try something new is now a treatable mental illness covered by Obamacare and failure in the service of experimentation is a crime. Silicon Valley: smart as we can be. Washington: dumb as we wanna be.

For the full commentary, see:
Thomas L. Friedman. “Start-Up America: Our Best Hope.” The New York Times, SundayReview Section (Sun., FEB. 16, 2014): 1 & 11.
(Note: ellipses added.)
(Note: the online version of the commentary has the date FEB. 15, 2014.)

Detailed Government Rules Impede Progress

TheRuleOfNobodyBK2014-04-08.jpg

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

(p. A13) The rulebooks should be “radically simplified,” Mr. Howard says, on matters ranging from enforcing school discipline to protecting nursing-home residents, from operating safe soup kitchens to building the nation’s infrastructure: Projects now often require multi-year, 5,000-page environmental impact statements before anything can begin to be constructed. Unduly detailed rules should be replaced by general principles, he says, that take their meaning from society’s norms and values and embrace the need for official discretion and responsibility.

Mr. Howard serves up a rich menu of anecdotes, including both the small-scale activities of a neighborhood and the vast administrative structures that govern national life. After a tree fell into a stream and caused flooding during a winter storm, Franklin Township, N.J., was barred from pulling the tree out until it had spent 12 days and $12,000 for the permits and engineering work that a state environmental rule required for altering any natural condition in a “C-1 stream.” The “Volcker Rule,” designed to prevent banks from using federally insured deposits to speculate in securities, was shaped by five federal agencies and countless banking lobbyists into 963 “almost unintelligible” pages. In New York City, “disciplining a student potentially requires 66 separate steps, including several levels of potential appeals”; meanwhile, civil-service rules make it virtually impossible to terminate thousands of incompetent employees. Children’s lemonade stands in several states have been closed down for lack of a vendor’s license.

For the full review, see:
STUART TAYLOR JR. “BOOKSHELF; Stop Telling Us What to Do; When a tree fell into a stream in Franklin Township, N.J., it took 12 days and $12,000 for the necessary permits to remove it.” The Wall Street Journal (Tues., April 8, 2014): A13.
(Note: the online version of the review has the date April 7, 2014, and has the title “BOOKSHELF; Book Review: ‘The Rule of Nobody’ by Philip K. Howard; When a tree fell into a stream in Franklin Township, N.J., it took 12 days and $12,000 for the necessary permits to remove it.”)

The book under review is:
Howard, Philip K. The Rule of Nobody: Saving America from Dead Laws and Broken Government. New York: W. W. Norton & Co., 2014.

Rob Lowe: Libertarian Nerd

LoweRob2014-04-08.jpg

Rob Lowe. Source of photo: online version of the NYT article quoted and cited below.

(p. 12) Chris Traeger on NBC’s “Parks and Recreation” was a total nerd. Was it hard for you to play such an uncool character? My deep dark secret is that I was a nerd in school. I liked the theater. I liked to study. I wasn’t very good at sports. It took being famous to make me cool, which, by the way, I never forgot.
.. .
. . . what do you believe? My thing is personal freedoms, freedoms for the individual to love whom they want, do with what they want. In fact, I want the government out of almost everything.

For the full interview, see:
Brodesser-Akner, Taffy, interviewer. “”It’s Time to Get Back in the Pool’: Rob Lowe on Aging into the Good Roles and Cashing in on His Scandalous Legacy.” The New York Times Magazine (Sun., APRIL 6, 2014): 12.
(Note: ellipses added; bold in original.)
(Note: the online version of the interview has the date APRIL 4, 2014, and has the title “Rob Lowe on the Problems With Being Pretty.”)

Patent Trial and Appeal Board May Be Invalidating Low Quality Patents

One of the common complaints about the U.S. patent system for the past couple of decades is that the Patent and Trademark Office (PTO) has been approving too many low quality patents, that are then used by patent holders to extort licensing fees or out-or-court settlements from alleged infringers. One way in which the America Invents Act, signed in September 2011, tried to respond to the complaint was to strengthen the post-approval re-examination process for patents. The article quoted below suggests that the strengthened process may be having the intended effect.

(p. B4) The Patent Trial and Appeal Board is a little known but powerful authority that often allows a company embroiled in a lawsuit to skip the question of whether it infringed a patent–and challenge whether the patent should have been issued in the first place.

The board was launched in September 2012 as part of the massive patent overhaul passed by Congress the previous year and is currently staffed by 181 judges, many of whom have deep experience in intellectual property or technical fields like chemical and electrical engineering. Through last Thursday it had received 1,056 requests to challenge patents, far more than were received by any federal court over the same time period.
The board is part of the Patent and Trademark Office. But so far, it hasn’t shied away from upending the office’s decisions to issue certain patents. As of last week, the board had issued 25 written decisions concerning patent challenges, and upheld parts of challenged patents in only a few of them.
. . .
In recent months, Randall Rader, the chief judge of the Federal Circuit, has been one of the board’s most outspoken critics. At a conference of intellectual-property lawyers last fall, the judge called the board’s panels “death squads…killing property rights.”
In an interview with The Wall Street Journal, Mr. Rader said the board is too quick to toss out patents that demonstrate only modest innovation. “The board needs to incentivize human progress–and understand that it often happens one small step at a time,” he said.
But many company lawyers think the board is doing exactly as it should–taking a skeptical look at patents that have added little to the world.

For the full story, see:
ASHBY JONES. “New Weapon in Intellectual Property Wars; Panel Can Upend Patent Decisions, but Some Say It Goes Too Far; ‘Like Getting CAT-Scanned, MRI-ed, and X-Rayed’.” The Wall Street Journal (Tues., March 11, 2014): B4.
(Note: ellipsis between paragraphs, added; ellipsis inside paragraph, in original.)
(Note: the online version of the story has the date March 10, 2014, and has the title “A New Weapon in Corporate Patent Wars; Patent Trial and Appeal Board Can Upend PTO Decisions, but Some Say It Goes Too Far.”)

Government Regulations Slow U.S. Use of Drones

DronesThreeSophisticatedCommerical2014-04-03.jpgThree sophisticated drones. From top to bottom, the Insitu ScanEagle, the Yamaha RMAX, and the Trimble UX5. Source and photo: online version of the WSJ article quoted and cited below.

(p. B1) After Greek land surveyor George Papastamos bought his first drones a year ago, he let go most of his workers. Now, instead of a team of 12, he shows up to work sites with just a drone and an assistant.

“I could see this was the future,” said Mr. Papastamos, a second-generation surveyor from Athens. The drones have improved his maps and lowered his costs, enabling him to win more business. “It is much, much more profitable,” he said.
As U.S. regulators and courts grapple with when and how to allow the use of drones for commercial purposes, flying robots already are starting to change the way companies do business in countries from Australia to Japan to the U.K. They are showing the potential to provide cheaper and more effective alternatives to manned aircraft–and human workers–in industries like mining, construction and filmmaking.
The U.S. is “the world leader in producing drones,” but “the reality is the rest of the world has moved further ahead of us in terms of commercial applications,” said drone researcher Missy Cummings, director of the Humans and Autonomy Lab at Duke University.

For the full story, see:
JACK NICAS. “From Farms to Films, Drones Find Commercial Uses.” The Wall Street Journal (Tues., March 11, 2014): B1 & B6.
(Note: the online version of the story has the date March 10, 2014, and has the title “Drones Find Fans Among Farmers, Filmmakers; FAA Still Debating Rules but Drones are Spraying 40% of Japan’s Rice Fields.”)

18 Unions Each Spent More on Politics than Koch Brothers

(p. A13) Harry Reid is under a lot of job-retention stress these days, so Americans might forgive him the occasional word fumble. When he recently took to the Senate floor to berate the billionaire brothers Charles and David Koch for spending “unlimited money” to “rig the system” and “buy elections,” the majority leader clearly meant to be condemning unions.
It’s an extraordinary thing, in a political age obsessed with campaign money, that nobody scrutinizes the biggest, baddest, “darkest” spenders of all: organized labor. The IRS is muzzling nonprofits; Democrats are “outing” corporate donors; Jane Mayer is probably working on part 89 of her New Yorker series on the “covert” Kochs. Yet the unions glide blissfully, unmolestedly along. This lack of oversight has led to a union world that today acts with a level of campaign-finance impunity that no other political giver–conservative outfits, corporate donors, individuals, trade groups–could even fathom.
. . .
The Center for Responsive Politics’ list of top all-time donors from 1989 to 2014 ranks Koch Industries No. 59. Above Koch were 18 unions, which collectively spent $620,873,623 more than Koch Industries ($18 million).

For the full commentary, see:
KIMBERLEY A. STRASSEL. “POTOMAC WATCH; The Really Big Money? Not the Kochs; Harry Reid surely must have meant the unions when he complained about buying elections.” The Wall Street Journal (Fri., March 7, 2014): A13.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date March 6, 2014.)

Better Policies Explain Why Poland Prospers More than Ukraine

RushchyshynYaroslavUkraineEntrepreneur2014-03-30.jpg “Yaroslav Rushchyshyn, a garment manufacturer, wants to end penalties when his company reports a financial loss.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. B1) LVIV, Ukraine — Every kind of business in this restless pro-European stronghold near the border with Poland has an idea about how to make Ukraine like its more prosperous neighbor.

For Yaroslav Rushchyshyn, founder of a garment manufacturer, it is abolishing bizarre regulations that have had inspectors threatening fines for his handling of fabric remnants and for reporting financial losses.
For Andrew Pavliv, who runs a technology company, it is modernizing a rigid education system to help nurture entrepreneurs.
For Natalia Smutok, an executive at a company that makes color charts for paint and cosmetics, it meant starting an antibribery campaign, even though she is 36 weeks pregnant.
. . .
(p. B10) Victor Halchynsky, a former journalist who is now a spokesman for the Ukrainian unit of a Polish bank, said the divergence of the two countries was a source of frustration.
“It’s painful because we know it’s only happened because of policy,” he said, adding that while both countries had started the reform process, Poland “finished it.”
Ukraine has been held back by a number of policies. Steep energy subsidies have kept consumption high and left the country dependent on Russian gas, draining state coffers. Mr. Pavliv said the state university system, which he called “pure, pure Soviet,” was too inflexible to set up a training program for project managers, or to allow executives without specific certifications to teach courses. An agriculture industry once a Soviet breadbasket has been hurt by antiquated rules, including restrictions on land sales. Aggressive tax police have been used to shake down businesses.

For the full story, see:
DANNY HAKIM. “A Blueprint for Ukraine.” The New York Times (Fri., MARCH 14, 2014): B1 & B10.
(Note: ellipsis added.)
(Note: the online version of the story has the date MARCH 13, 2014.)

PavlivAndrewTechEntrepreneur2014-03-30.jpg “Andrew Pavliv, who runs a technology company, wants to help turn Lviv into a little Ukrainian Silicon Valley.” Source of caption and photo: online version of the NYT article quoted and cited above.

Paul Ryan Warns that the Safety Net Can Be a Hammock

(p. A21) . . . Mr. Ryan said two years ago: “We don’t want to turn the safety net into a hammock that lulls able-bodied people to lives of dependency and complacency, that drains them of their will and their incentive to make the most of their lives.”

For the full commentary, see:
Krugman, Paul. “The Hammock Fallacy.” The New York Times (Fri., MARCH 7, 2014): A21.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date MARCH 6, 2014.)

The original source of the Paul Ryan quote appears to be:
“Paul Ryan Wants ‘Welfare Reform Round 2’.” The Huffington Post (posted 03/20/2012).

Ryan made similar comments in his January 25th official Republican response to the State of the Union speech:

We are at a moment, where if government’s growth is left unchecked and unchallenged, America’s best century will be considered our past century. This is a future in which we will transform our social safety net into a hammock, which lulls able-bodied people into lives of complacency and dependency.

Depending on bureaucracy to foster innovation, competitiveness, and wise consumer choices has never worked — and it won’t work now.

Source:
NPR transcript of Paul Ryan response, January 25, 2011.