Category: Openness to C. D. Book

artdiamondblog.com Is 20 Years Old Today and Will Now Switch to Weekly Entries (on Mondays)

On October 16, 2024 I announced some changes in my artdiamondblog.com web log. For instance, I was going to focus more entries on my next book project: Less Costs, More Cures: Unbinding Medical Entrepreneurs, and I was to include some brief entries on my memories of important economists such as George Stigler and Gary Becker. I implemented both changes, though more of the former than the latter.

One other change that I have made, especially in the last few months, is to precede almost all entries with (sometimes detailed) introductory commentary.

I believe that these changes have improved the average quality of my entries, but may have narrowed the audience who will find them of interest. My blog entries in the last several months may be of increased interest to those who are willing to follow me into the weeds of healthcare policy, but may be of decreased interest to those who care more about the broader set of issues that I dealt with in my Openness to Creative Destruction book.

Personally, I have mixed feelings about the changes to my blog. On the one hand I feel some pride and satisfaction on the higher quality of entries, and have some hope that many of the entries will end up being useful early notes toward my bigger project. On the other hand, the changes have not reduced the overall time I invest in the blog, as I had hoped they would.

The bottom line is that I have been spending too much time on the blog, and too little time on my writing and research projects. Or as an economist might say, the opportunity cost of marginal time spent on the blog is too high. So I have decided to implement another change. Starting on July 15, 2025, I will commit to running a new entry on Monday of each week, but will not post on the other days of the week unless something big comes up.

I want to see how this change works–it may be permanent, or after the end of the summer, I may switch back to daily posts.

I make this change with some twinge of sadness and regret, since I take some pride in having run a daily post on almost all days from July 15, 2005 through July 15, 2025.

On July 15 of every year Aaron Brown sends me happy blog birthday greetings. (I continue to be grateful to Aaron for his thoughtful comments on blog entries, and for letting me know when an entry is missing or when something in an entry is amiss.)

This year on July 15 my blog will be 20 years old.

Perseverance is sometimes praiseworthy; pivoting is sometimes praiseworthy too. I hope I am right to pivot.

Do Graeber’s “Bullshit Jobs” Thrive in Innovative Dynamism?

Last week I participated in a panel on “Freedom and Abundance” with Bri Wolf at an I.H.S. Symposium on “The Future of Liberalism.” As a small part of my presentation (and also in my Openness book), I claim that innovative dynamism creates more jobs than it destroys, and that the new jobs are generally better jobs than the old jobs.

After the panel Bri asked me how I respond to David Graeber’s book Bullshit Jobs. I vaguely remembered hearing of the book, and told her I would look into it. What follows is my brief, quick, edited response.

Graeber claimed that a large number of jobs in the for-profit sector are purposeless, demoralizing “bullshit” jobs. I do think that there are some bullshit jobs, but think that they are much more common in the government and non-profit sectors than in the for-profit sector. There are some in the for-profit sector, but I would argue that the number is diminishing, and many of them are due to labor unions and government regulations, that protect bullshit jobs from being eliminated.

Where innovative dynamism is allowed to function unbound, the trend is toward more meaningful jobs. Two of the important technological innovations of the last several decades have been computers and the internet. Erik Brynjolfsson and co-authors wrote a few papers showing that an important effect has been to flatten the hierarchy at a great many firms. This eliminates much of the middle management that Graeber identifies as one main location of bullshit jobs.

I also looked the book up on Wikipedia and noticed that a couple of empirical papers have been written that raise doubts about some of the claims in the book.

The book seems to have gotten enough attention to justify a longer more serious critique than I am giving it in this blog entry. But I humor myself that I have bigger fish to fry, namely my mission to see if I can help nudge the healthcare mess more toward being a system of innovative dynamism.

Some of Erik Brynjolfsson’s relevant co-authored articles, alluded to above, are:

Bresnahan, Timothy F., Erik Brynjolfsson, and Lorin M. Hitt. “Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence.” Quarterly Journal of Economics 117, no. 1 (2002): 339-76.

Brynjolfsson, Erik, and Lorin M. Hitt. “Beyond Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000): 23-48.

Brynjolfsson, Erik, and Lorin M. Hitt. “Computing Productivity: Firm-Level Evidence.” Review of Economics and Statistics 85, no. 4 (Nov. 2003): 793-808.

David Graeber’s book is:

Graeber, David. Bullshit Jobs: A Theory. New York: Simon & Schuster, 2018.

My book is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Correll Managed Georgia-Pacific Well and Then Used Those Skills to Save a Failing Hospital

In my Openness book, I make the case for the many benefits of an economic system of innovative dynamism. One of the lesser, but still important, benefits was first identified by Joseph Schumpeter. He argued for a spillover effect of innovative dynamism. The skills, knowledge, and technologies created by innovative entrepreneurs in the for-profit sector of the economy, are also applied and imitated in the nonprofit and government sectors. So where there is innovative dynamism, not only is the market more creative and efficient, but both the nonprofit and the government sectors are more creative and efficient.

A good example may be Pete Correll who acted entrepreneurially as CEO of Georgia-Pacific to bring more stability to the business by acquiring the James River Corporation, maker of Quilted Northern, and guided the Georgia-Pacific firm through years of lawsuits over asbestos. He eventually sold Georgia-Pacific to Koch Industries, Inc. My impression is that Charles Koch then applied his market-based management system to make the Georgia-Pacific part of his business much more efficient and innovative. [Query: does Koch’s achievement undermine my claim that Pete Correll had acted entrepreneurially in his earlier management of Georgia-Pacific? Or can both Correll and Koch have been good manager/entrepreneurs, but in different ways at different times?]

But according to his obituary in the WSJ, his greatest achievement may have been in taking over a near-bankrupt Atlanta public (aka government) hospital, reorganizing it from government to nonprofit, and modernizing its management and technology.

Carrell’s obituary in the WSJ:

James R. Hagerty. “CEO Helped Save A Public Hospital.” The Wall Street Journal (Sat., June 5, 2021 [sic]): A9.

(Note: the online version of the WSJ obituary has the date June 2, 2021 [sic], and has the title “Retired CEO Saved an Atlanta Public Hospital.”)

For Charles Koch’s entrepreneurial market-based management system see:

Koch, Charles G. The Science of Success: How Market-Based Management Built the World’s Largest Private Company. Hoboken, NJ: Wiley & Sons, Inc., 2007.

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Gans Showed That Urban Working-Class Enclaves, and Modern Suburban Housing Developments, Can Contain Vibrant Communities

In my Openness book I argue that, especially in America and Europe, life has generally gotten better in the last couple of hundred years.

Some critics argue, to the contrary, that modern suburban housing developments are boring, conformist locations lacking a sense of community and cultural vibrancy. They then use this argument to advocate that government urban planners adopt regulatory and subsidy policies to “infill the urban core,” i.e., force suburbanites to live downtown.

Herbert J. Gans, quoted below, refuted the critics.

(p. B11) Herbert J. Gans, an eminent sociologist who studied the communities and cultural bastions of America up close and shattered popular myths about urban and suburban life, poverty, ethnic groups and the news media, died on Monday [April 21, 2025] at his home in Manhattan. He was 97.

. . .

His findings were often surprising. For his first book, “The Urban Villagers: Groups and Class in the Life of Italian-Americans” (1962), he immersed himself in the life of Boston’s working-class West End. The area was later bulldozed for “slum clearance,” and he lamented the destruction of a vibrant community. A half-century later, the book still stood as a classic statement against indiscriminate urban renewal.

Similarly, Dr. Gans challenged conventional wisdom about postwar suburbia in “The Levittowners” (1967). For more than two years, he lived in Levittown, N.J., later renamed Willingboro, and concluded that the residents had strong social, economic and political commitments, and that notions of suburbanites as conformist, anxious, bored, cultureless, insecure social climbers were wrong.

For the full obituary, see:

Robert D. McFadden. “Herbert J. Gans, 97, Who Explored American Society Up Close, Dies.” The New York Times (Thursday, April 24, 2025): B11.

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

(Note: the online version of the obituary was updated April 23, 2025, and has the title “Herbert J. Gans, 97, Dies; Upended Myths of Urban and Suburban Life.”)

Gans’s books mentioned in the passages quoted above, are:

Gans, ‎Herbert J. The Levittowners: Ways of Life and Politics in a New Suburban Community. New York: Columbia University Press, 1967.

Gans, ‎Herbert J. The Urban Villagers: Groups and Class in the Life of Italian-Americans. Glencoe, IL: The Free Press of Glencoe, 1962.

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Plenty in Science Still “Just Doesn’t Make Any Sense”

In my Openness book, I argue against those who see a future of inevitable stagnation. One argument for inevitable stagnation says that entrepreneurs build their innovations on science and we have run out of new knowledge to learn in science.

But whenever we keep our eyes open and observe more closely, or in new areas, we see what we cannot yet explain. The passages quoted below give another example. So we still have a lot to learn in science.

(Of course I also point out in the book that much entrepreneurial innovation is not tied to current advances in science–and is done by entrepreneurs who do not know, or who do not hold in high esteem, the current conclusions of mainstream scientists.)

(p. A14) On Dec. 24 [2024], NASA’s Parker Solar Probe swooped closer than it ever had before to the sun, just a few million miles above its blazing hot surface.

The team behind the mission waited nervously, trusting that the probe would survive the encounter. Then, a few minutes shy of midnight on Thursday [Dec. 2?, 2024], Parker phoned home.

. . .

. . ., there was some fear that the probe might not survive this time. Parker’s heat shield is designed so that the front of the vehicle can withstand facing the blistering heat of the sun’s outer atmosphere, which reaches millions of degrees, while the back, which contains the probe’s sensitive instruments, sits at a comfortable 85 degrees Fahrenheit.

“Literally one side is at a temperature that is unfathomable,” Joseph Westlake, the director of heliophysics at NASA, said. “And the back of it is a hot, sunny day.”

. . .

Parker’s data will . . . help scientists understand how the sun’s outer atmosphere, known as the corona, can be hundreds of times hotter than the solar surface below it.

“It’s like if you were standing next to a bonfire and you took a couple of steps back, and all of a sudden it got hotter,” Dr. Westlake said. “It just doesn’t make any sense.”

For the full story see:

Katrina Miller. “After Silence, Solar Probe Signals Earth of Survival.” The New York Times (Sat., December 28, 2024): A14.

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

(Note: the online version of the story was updated Dec. 30, 2024, and has the title “After Days of Silence, NASA’s Parker Solar Probe Phones Home.”)

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Medieval English Gentry Did Not Routinely Dine on Meat

In my Openness book, I argue that the distant past was not a lost Golden Age that we should pine for.

Based on novels and TV costume dramas, we suppose the rich gentry in medieval England routinely dined on meat. But bioarcheologists have analyzed the bones of over 2,000 persons for whom social class can be inferred, based on what was buried with the bones. The conclusion was that meat was an occasional luxury for both poor and rich.

This provides one more bit of evidence that, compared with the present, the past was not a Golden Age even for the rich.

Source:

Maria Cramer. “Mutton? Kings of Yore Probably Ate More Greens.” The New York Times, First Section (Sun., May 1, 2022 [sic]): 13.

(Note: the online version of the article was updated May 2, 2022 [sic], and has the title “Anglo-Saxon Kings Made Sure to Eat Their Vegetables, Study Shows.”)

The published academic paper summarized by Maria Cramer in The New York Times is:

Leggett, Sam, and Tom Lambert. “Food and Power in Early Medieval England: A Lack of (Isotopic) Enrichment.” Anglo-Saxon England 49 (2022): 155-96.

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Gig Work Enables Free Agent Entrepreneurship

In my Openness book, I distinguish between free agent entrepreneurs and innovative entrepreneurs. Free agent entrepreneurs are there own boss, doing what has been done before. Innovative entrepreneurs are their own boss, doing what is new. Of course the distinction is not sharp–a continuum.

Recent research, summarized in the WSJ, suggests that gig work can ease entry into free agent entrepreneurship. Gig work is flexible–the gig worker has time when they need it, to work on their entrepreneurial venture. Gig work also can generate capital and give experience in self-management.

A higher percent of gig workers become entrepreneurs than similar employed workers, and they do so, on average, at a slightly younger age.

Those who want to regulate gig work, and thereby make it less common, should remember how gig work benefits aspiring entrepreneus.

The WSJ article mentioned above is:

Lisa Ward. “Gig Workers Show More Enterprise, Study Finds.” The Wall Street Journal (Thurs., May 8, 2025): A11.

(Note: the online version of the WSJ article has the date May 5, 2025, and has the title “Want to Start a Business? Maybe Begin by Being a Gig Worker.”)

The academic working paper summarized in the WSJ article is:

Denes, Matthew R., Spyridon Lagaras, and Margarita Tsoutsoura. “Entrepreneurship and the Gig Economy: Evidence from U.S. Tax Returns.” In National Bureau of Economic Research Working Paper #33347, Jan. 2025.

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Vinyl LP Records Have Been Mostly Replaced, but in Kansas Not Completely Destroyed

In my Openness book, I argue that Schumpeter’s phrase “creative destruction” misleads by overemphasizing the extent of destruction in the process of breakthrough innovation, so I prefer to call the process “innovative dynamism.” A new innovation is often better than the old in many, but not all, traits. A minority of people who put heavy weight on the traits where the old product is better, will still prefer the old product. If the minority is large enough, and willing to pay enough for their preference, then there will be enough demand for the old product to remain in production, rather than be fully replaced (i.e., destroyed).

Illustrating my point, The New York Times ran two full pages on Chad Kassem, a Kansas entrepreneur who is working hard, with some success, at making higher quality vinyl LP records. He has 114 employees and annual revenue of over $1 million.

He is even introducing incremental innovations to the old product: (p. 6) “Kassem hired veterans of the record-making business and indulged their ideas for modernizing a process that (p. 7) had barely changed since the 1970s. Among other innovations, they introduced computerized controls and found ways to regulate the fluctuating temperature of vinyl in the presses.”

The New York Times article is:

Ben Sisario. “In a Digital World, Pursuing an Ideal Of Perfect Vinyl.” The New York Times, Arts&Leisure Section (Sun., March 9, 2025): 6-7.

(Note: the online version of The New York Times article on the resilience of vinyl was updated March 7, 2025, and has the title “The Wizard of Vinyl Is in Kansas.”)

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

“Effort Means That You Care About Something”

In my Openness book, I argue that we should allow each other the freedom to choose intensity over work-life balance. David Brooks is sometimes thought-provoking and eloquent, for instance in the passages quoted below where he defends intensity.

One question that Brooks discusses elsewhere in his essay is: how do you find your “passion,” your “misery,” your “vocation”? He tries but after reading his answers, I think the mystery mostly remains. The best answer to this question that I have found is in a book by John Chisholm called Unleash Your Inner Company. Chishom suggests that you should apply yourself to something worth doing, and work to do it better. If you do that, he suggests, you are likely to eventually find you increasingly care about what you are doing.

(p. 9) My own chosen form of misery is writing. Of course, this is now how I make a living, so I’m earning extrinsic rewards by writing. But I wrote before money was involved, and I’m sure I’ll write after, and the money itself isn’t sufficient motivation.

Every morning, seven days a week, I wake up and trudge immediately to my office and churn out my 1,200 words — the same daily routine for over 40 years. I don’t enjoy writing. It’s hard and anxiety-filled most of the time. Just figuring out the right structure for a piece is incredibly difficult and gets no easier with experience.

I don’t like to write but I want to write. Getting up and trudging into that office is just what I do. It’s the daily activity that gives structure and meaning to life. I don’t enjoy it, but I care about it.

We sometimes think humans operate by a hedonic or utilitarian logic. We seek out pleasure and avoid pain. We seek activities with low costs and high rewards. Effort is hard, so we try to reduce the amount of effort we have to put into things — including, often enough, the effort of thinking things through.

And I think we do operate by that kind of logic a lot of the time — just not when it comes to the most important things in our lives. When it comes to the things we really care about — vocation, family, identity, whatever gives our lives purpose — we are operating by a different logic, which is the logic of passionate desire and often painful effort.

. . .

. . . I have found that paradoxically life goes more smoothly when you take on difficulties rather than try to avoid them. People are more tranquil when they are heading somewhere, when they have brought their lives to a point, going in one direction toward an important goal. Humans were made to go on quests, and amid quests more stress often leads to more satisfaction, at least until you get to the highest levels. The psychologist Carol Dweck once wrote: “Effort is one of the things that gives meaning to life. Effort means that you care about something.”

All this toil is not really about a marathon or a newspaper article or a well-stocked shelf at the grocery store. It’s about slowly molding yourself into the strong person you want to be. It’s to expand yourself through challenge, steel yourself through discipline and grow in understanding, capacity and grace. The greatest achievement is the person you become via the ardor of the journey.

. . .

So, sure, on a shallow level we lead our lives on the axis of pleasure and pain. But at the deeper level, we live on the axis between intensity and drift. Evolution or God or both have instilled in us a primal urge to explore, build and improve. But life is at its highest when passion takes us far beyond what evolution requires, when we’re committed to something beyond any utilitarian logic.

For the full commentary see:

David Brooks. “A Surprising Route to the Best Life Possible.” The New York Times, SundayOpinion Section (Sun., March 30, 2025): 9.

(Note: ellipses added.)

(Note: the online version of the commentary has the date March 27, 2025, and has the same title as the print version. The first couple of paragraphs quoted above appear in the longer online version, but not in the shorter print version, of the commentary. In the third quoted paragraph, the words “like” and “want” are italicized.)

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

The book by Chisholm that I praise in my initial comments is:

Chisholm, John. Unleash Your Inner Company: Use Passion and Perseverance to Build Your Ideal Business. Austin, TX: Greenleaf Book Group Press, 2015.

Global Warming Allows German Wine Entrepreneurs to Grow a “Superb” Chardonnay

In my Openness book, I argue that the costs of global warming have been exaggerated, partly because environmentalists forget that entrepreneurs can adapt, either lessening the costs, or sometimes even creating benefits. A case of creating benefits is apparently now the growing of “superb” chardonnay wine in Germany:

(p. D4) What accounts for the arrival of . . . German chardonnays? Certain wine regions like Rheinhessen, the Pfalz and the Obermosel have limestone soils, which chardonnay has a special affinity for, but the warming climate has made it possible to ripen chardonnay sufficiently to make superb wines.

Climate change influenced decisions to plant chardonnay in other ways as well.

“Climate change for us does not just mean it’s getting warmer and warmer, it means everything is getting more extreme — frost risk, weeks without rain, hailstorms,” said Klaus Peter Keller, . . . . “Therefore, we must spread the risk a bit more than we would 30 or 40 years ago. Rather than 100 percent riesling we have now 70 percent riesling, 15 percent pinot noir, 10 percent chardonnay and 4 percent others, and we think that will be the structure for the coming 30 or 40 years.”

Mr. Keller said he had wanted to plant pinot blanc rather than chardonnay but that their son Felix had pushed for chardonnay.

“Felix was right,” he said. “Chardonnay is much better adapted to climate change, with thicker skins, and it transmits the soil much better than pinot blanc.”

Felix Keller said by email that his grandfather had tried planting chardonnay in 1988, but that the timing had been wrong.

“Back then, it didn’t ripen every year,” he said. “It took us until 2018 to try again. We believe chardonnay has a bright future in Germany because we now have the climate that used to be in Burgundy in the early ’90s.”

For the full commentary see:

Eric Asimov. “The Pour; A Surprise From Germany: Chardonnay.” The New York Times (Weds., March 5, 2025): D1 & D4.

(Note: ellipses added.)

(Note: the online version of the commentary was updated March 4, 2025, and has the same title as the print version.)

My book mentioned in my initial comments is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Songbirds Adapt to Global Warming by Shrinking in Size

In my Openness book I argue that global warming is not as much of a threat as many claim. One part of my argument is that humans, and non-human life too, is much more adaptable than the environmentalists realize. Songbirds discussed below exemplify the point.

(p. A3) North American songbirds have been shrinking steadily in size over the past 40 years, according to scientists who measured tens of thousands of the feathered creatures from dozens of different species and attributed the changes to rising temperatures.

As the birds’ bodies got smaller, their wings gradually got longer, the scientists said in a paper published Wednesday [Dec. 4, 2019] in the journal Ecology Letters. The longer wings, the researchers said, may help offset the loss of body mass so the birds can fly efficiently on their long migrations.

. . .

Warm-blooded animals are generally larger in cold climates and smaller in warm climates because more compact creatures usually release heat more quickly, according to biologists and ecologists.

Given the well-established link, many scientists had predicted in recent years that global warming would affect the size of many animals. Yet until recently, there wasn’t much evidence of the effect at work during modern warming trends.

The new findings are the latest in a series of technical reports this year that link changes in body size among birds to warmer temperatures around the world.

Last month, researchers in Australia who studied physical changes in 82 songbird species, including honeyeaters, fairy-wrens and thornbills, reported in the Royal Society B journal that birds there have grown smaller due to warming over the last half-century, as the annual mean temperature increased regionally by about 0.012 degrees Celsius. They based their conclusions on an analysis of 12,000 museum specimens.

In March [2019], researchers at the University of Cape Town in South Africa who tracked the weight of a long-tailed songbird common across Africa called the mountain wagtail found the species gradually became lighter between 1976 and 1999, as regional temperatures increased by 0.18 degrees Celsius. They published their findings in the journal Oecologia.

For the full story see:

Robert Lee Hotz. “Songbirds Shrink in Size, Study Finds.” The Wall Street Journal (Thursday, December 5, 2019 [sic]): A3.

(Note: bracketed date and year added.)

(Note: the online version of the story has the date December 4, 2019 [sic], and has the title “Songbirds Are Shrinking in Size, Study Finds.”)

My book mentioned above is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

The academic paper in Ecology Letters, mentioned above, is:

Weeks, Brian C., David E. Willard, Marketa Zimova, Aspen A. Ellis, Max L. Witynski, Mary Hennen, and Benjamin M. Winger. “Shared Morphological Consequences of Global Warming in North American Migratory Birds.” Ecology Letters (2019).

The academic paper in the Royal Society B journal, mentioned above, is:

Gardner, Janet L., Tatsuya Amano, Anne Peters, William J. Sutherland, Brendan Mackey, Leo Joseph, John Stein, Karen Ikin, Roellen Little, Jesse Smith, and Matthew R. E. Symonds. “Australian Songbird Body Size Tracks Climate Variation.” Proceedings of the Royal Society B 286, no. 1916 (2019).

The academic paper in the Oecologia journal, mentioned above, is:

Prokosch, Jorinde, Zephne Bernitz, Herman Bernitz, Birgit Erni, and Res Altwegg. “Are Animals Shrinking Due to Climate Change? Temperature-Mediated Selection on Body Mass in Mountain Wagtails.” Oecologia 189, no. 3 (2019): 841-49.