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.”)

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.

Better Wheat Is “Mired in Excessive, Expensive and Unscientific Regulation”

(p. A19) Monsanto recently said that it had made significant progress in the development of herbicide-tolerant wheat. It will enable farmers to use more environmentally benign herbicides and could be ready for commercial use in the next few years. But the federal government must first approve it, a process that has become mired in excessive, expensive and unscientific regulation that discriminates against this kind of genetic engineering.
The scientific consensus is that existing genetically engineered crops are as safe as the non-genetically engineered hybrid plants that are a mainstay of our diet.
. . .
Much of the nation’s wheat crop comes from a section of the central plains that sits atop the Ogallala Aquifer, which is rapidly being depleted.
. . .
New crop varieties that grow under conditions of low moisture or temporary drought could increase yields and lengthen the time farmland is productive. Varieties that grow with lower-quality water have also been developed.
. . .
Given the importance of wheat and the confluence of tightening water supplies, drought, a growing world population and competition from other crops, we need to regain the lost momentum. To do that, we need to acquire more technological ingenuity and to end unscientific, excessive and discriminatory government regulation.

For the full commentary, see:
JAYSON LUSK and HENRY I. MILLER. “We Need G.M.O. Wheat.” The New York Times (Mon., Feb. 3, 2014): A19.
(Note: ellipses added.)
(Note: the online version of the commentary has the date Feb. 2, 2014.)

Growth Slow Due to Policies Impeding Start-Ups

(p. A11) The most recent period of rapid productivity growth in the U.S.–and rapid economic growth–was in the 1980s and ’90s and reflected the remarkable success of new businesses in information and communications technologies, including Microsoft, Apple, Amazon, Intel and Google. These new companies not only created millions of jobs but transformed modern society, changing how much of the world produces, distributes and markets goods and services.
Rising living standards in the future will depend on the continued success of these businesses but also on the next generation of success stories. Getting the U.S. economy back on track will require a much higher annual rate of new business startups. Sadly, the annual rate of new business creation is about 28% lower today than it was in the 1980s, according to our analysis of the U.S. Census Bureau’s Business Dynamics Statistics annual data series.
Why is the startup rate so low? The answer lies in Washington and the policies implemented in the wake of the 2008 financial crisis that were, ironically, intended to grow and stabilize the economy.    . . .
This explosion in federal regulation, intervention and subsidies has retarded productivity growth by protecting incumbents at the expense of more efficient producers, including startups. The number of pages in the Federal Code of Regulations peaked at nearly 175,000 in 2012, an increase of more than 7% in President Obama’s first three years.

For the full commentary, see:
EDWARD C. PRESCOTT and LEE E. OHANIAN. “U.S. Productivity Growth Has Taken a Dive; It has averaged about 1.1% since 2011, less than half the historical rate since 1948. Here’s how to increase it.” The Wall Street Journal (Tues., Feb. 4, 2014): A11.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Feb. 3, 2014.)

Hero Rebels Against the Bureau of Technology Control

InfluxBK2014-02-19.jpg

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

(p. D8) In “Influx,” . . . , a sinister Bureau of Technology Control kidnaps scientists that have developed breakthrough technologies (the cure to cancer, immortality, true artificial intelligence), and is withholding their discoveries from humanity, out of concern over the massive social disruption they would cause. “We don’t have a perfect record–Steve Jobs was a tricky one–but we’ve managed to catch most of the big disrupters before they’ve brought about uncontrolled social change,” says the head of the bureau, the book’s villain. The hero has developed a “gravity mirror” but refuses to cooperate, despite the best efforts of Alexa, who has been genetically engineered by the Bureau to be both impossibly sexy and brilliant.

In the publishing world, there is a growing sense that “Influx,” Mr. Suarez’s fourth novel, may be his breakout book and propel him into the void left by the deaths of Tom Clancy and Michael Crichton. “Influx’ has Mr. Suarez’s largest initial print run, 50,000 copies, and Twentieth Century Fox bought the movie rights last month.
An English major at the University of Delaware with a knack for computers, Mr. Suarez started a consulting firm in 1997, working with companies like Nestlé on complex production and logistics-planning issues. “You only want to move 100 million pounds of sugar once,” says Mr. Suarez, 49 years old.
He began writing in his free-time. Rejected by 48 literary agents–(a database expert, he kept careful track)–he began self-publishing in 2006 under the name Leinad Zeraus, his named spelled backward. His sophisticated tech knowledge quickly attracted a cult following in Silicon Valley, Redmond, Wash., and Cambridge, Mass. The MIT bookstore was the first bookstore to stock his self-published books in 2007.

For the full review, see:
EBEN SHAPIRO. “Daniel Suarez Sees Into the Future.” The Wall Street Journal (Fri., Feb. 7, 2014): D8.
(Note: ellipsis added.)
(Note: the online version of the review has the date Feb. 5, 2014, and the title “Daniel Suarez Sees Into the Future.”)

The book under review, is:
Suarez, Daniel. Influx. New York: Dutton, 2014.

SuarezDanielAuthorInflux2014-02-19.jpg

Author of Influx, Daniel Suarez. Source of photo: online version of the WSJ article quoted and cited above.

Incandesce

(p. A11) When I am asked if I want a Compact Fluorescent Light, the only thought I have is that I don’t want my light to be compact, nor do I wish it to be florescent. I want a light that will incandesce across my room, filling it with a familiar yellow surf, and remind me that it was not with wax or kerosene, but with incandescent bulbs that man conquered the night.
. . .
I imagine what will happen when the filaments in my final incandescent bulbs grow weak, and I can hardly read my notes before me. Will I no longer be able to write at night? Or worse, will living with CFLs and LEDs make every day feel like I have just spent nine hours plastered before a computer screen? One day, soon, I will turn on my light and hear for the last time the signature, explosive death rattle of an incandescent bulb, and I’ll hold a vigil for the light that shaped and witnessed more than a century of human history. Tender is the light, Keats might say.
In my lightless room, I’ll sit for a moment and wonder how many more times in my life I’ll watch a bulb go out again. As I look to my dead bulb, I’ll think of the poet again and whisper: Darkling, you were not a piece of technology born for death.

For the full commentary, see:
ALEXANDER ACIMAN. “Tender Is the Light of My Incandescents; Bracing myself for life once the filaments in my beloved bulbs grow weak.” The Wall Street Journal (Fri., Jan. 31, 2014): A11.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Jan. 30, 2014.)

Big Island of Hawaii Bans G.M.O.s Despite Papaya Saved from Disease

IlaganGreggorDefenderOfGMOs2014-01-19.jpg “Greggor Ilagan initially thought a ban on genetically modified organisms was a good idea.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 1) KONA, Hawaii — From the moment the bill to ban genetically engineered crops on the island of Hawaii was introduced in May 2013, it garnered more vocal support than any the County Council here had ever considered, even the perennially popular bids to decriminalize marijuana.

Public hearings were dominated by recitations of the ills often attributed to genetically modified organisms, or G.M.O.s: cancer in rats, a rise in childhood allergies, out-of-control superweeds, genetic contamination, overuse of pesticides, the disappearance of butterflies and bees.
Like some others on the nine-member Council, Greggor Ilagan was not even sure at the outset of the debate exactly what genetically modified organisms were: living things whose DNA has been altered, often with the addition of a gene from a distant species, to produce a desired trait. But he could see why almost all of his colleagues had been persuaded of the virtue of turning the island into what the bill’s proponents called a “G.M.O.-free oasis.”
“You just type ‘G.M.O.’ and everything you see is negative,” he told his staff. Opposing the ban also seemed likely to ruin anyone’s re-election prospects.
Yet doubts nagged at the councilman, who was serving his first two-year term. The island’s papaya farmers said that an engineered variety had saved their fruit from a devastating disease. A study reporting that a diet of G.M.O. corn caused tumors in rats, mentioned often by the ban’s supporters, turned out to have been thoroughly debunked.
And University of Hawaii biologists urged the Council to consider the global scientific consensus, which holds that existing genetically engineered crops are no riskier than others, and have provided some tangible benefits.
“Are we going to just ignore them?” Mr. Ilagan wondered.
Urged on by Margaret Wille, the ban’s sponsor, who spoke passionately of the need to “act before it’s too late,” the Council declined to form a task force to look into such questions before its November vote. But Mr. Ilagan, 27, sought answers on his own. In the process, he found himself, like so many public and business leaders worldwide, wrestling with a subject in which popular beliefs often do not reflect scientific evidence.
. . .
(p. 19) Ms. Wille urged a vote for the ban. “To do otherwise,” she said, “would be to ignore the cries from round the world and on the mainland.”
“Mr. Ilagan?” the Council member leading the meeting asked when it came time for the final vote.
“No,” he replied.
The ban was approved, 6 to 3.
The mayor signed the bill on Dec. 5.

For the full story, see:
Amy Harmon. “On Hawaii, a Lonely Quest for Fact.” The New York Times, First Section (Sun., Jan. 5, 2014): 1 & 18-19.
(Note: ellipsis added.)
(Note: the online version of the story has the date JAN. 4, 2014, and has the title “A Lonely Quest for Facts on Genetically Modified Crops.”)

PapayaGeneticallyModified2014-01-19.jpg

“Papaya genetically modified to resist a virus became one part of a controversy.” Source of caption and photo: online version of the NYT article quoted and cited above.

Regulators Forbid Doctor from Curing Dentist’s Pelvic Pain

DavidsonDaneilPelvicPain2014-01-16.jpg “Dr. Daniel Davidson, an Idaho dentist, has pelvic pain so severe that he cannot sit, and can stand for only limited periods.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A18) After visiting dozens of doctors and suffering for nearly five years from pelvic pain so severe that he could not work, Daniel Davidson, 57, a dentist in Dalton Gardens, Idaho, finally found a specialist in Phoenix who had an outstanding reputation for treating men like him.

Dr. Davidson, whose pain followed an injury, waited five months for an appointment and even rented an apartment in Phoenix, assuming he would need surgery and time to recover.
Six days before the appointment, it was canceled. The doctor, Michael Hibner, an obstetrician-gynecologist at St. Joseph’s Hospital and Medical Center, had learned that members of his specialty were not allowed to treat men and that if he did so, he could lose his board certification — something that doctors need in order to work.
The rule had come from the American Board of Obstetrics and Gynecology. On Sept. 12, it posted on its website a newly stringent and explicit statement of what its members could and could not do. Except for a few conditions, gynecologists were prohibited from treating men. Pelvic pain was not among the exceptions.
Dr. Davidson went home, close to despair. His condition has left him largely bedridden. The pain makes it unbearable for him to sit, and he can stand for only limited periods before he needs to lie down.
“These characters at the board jerked the rug out from underneath me,” he said.

For the full story, see:
DENISE GRADY. “Men With Pelvic Pain Find a Path to Treatment Blocked by a Gynecology Board.” The New York Times (Weds., December 11, 2013): A18.
(Note: the online version of the story has the date December 10, 2013.)

AquaBounty Has Waited More than 17 Years for FDA Approval

EnviropigDevelopedAtGuelph2013-12-31.jpg

The Enviropig Scientists at the University of Guelph, in Canada, developed these pigs to produce more environmentally friendly waste than conventional pigs. But the pigs were killed because the scientists could not get approval to sell them as food.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 4) If patience is a virtue, then AquaBounty, a Massachusetts biotech company, might be the most virtuous entity on the planet.

In 1993, the company approached the Food and Drug Administration about selling a genetically modified salmon that grew faster than normal fish. In 1995, AquaBounty formally applied for approval. Last month, more than 17 years later, the public comment period, one of the last steps in the approval process, was finally supposed to conclude. But the F.D.A. has extended the deadline — members of the public now have until late April to submit their thoughts on the AquAdvantage salmon. It’s just one more delay in a process that’s dragged on far too long.
The AquAdvantage fish is an Atlantic salmon that carries two foreign bits of DNA: a growth hormone gene from the Chinook salmon that is under the control of a genetic “switch” from the ocean pout, an eel-like fish that lives in the chilly deep. Normally, Atlantic salmon produce growth hormone only in the warm summer months, but these genetic adjustments let the fish churn it out year round. As a result, the AquAdvantage salmon typically reach their adult size in a year and a half, rather than three years.
. . .
We should all be rooting for the agency to do the right thing and approve the AquAdvantage salmon. It’s a healthy and relatively cheap food source that, as global demand for fish increases, can take some pressure off our wild fish stocks. But most important, a rejection will have a chilling effect on biotechnological innovation in this country.
. . .
Then there’s the Enviropig, a swine that has been genetically modified to excrete less phosphorus. Phosphorus in animal waste is a major cause of water pollution, and as the world’s appetite for meat increases, it’s becoming a more urgent problem. The first Enviropig, created by scientists at the University of Guelph, in Canada, was born in 1999, and researchers applied to both the F.D.A. and Health Canada for permission to sell the pigs as food.
But last spring, while the applications were still pending, the scientists lost their funding from Ontario Pork, an association of Canadian hog farmers, and couldn’t find another industry partner. (It’s hard to blame investors for their reluctance, given the public sentiment in Canada and the United States, as well as the uncertain regulatory landscape.) The pigs were euthanized in May.
The F.D.A. must make sure that other promising genetically modified animals don’t come to the same end. Of course every application needs to be painstakingly evaluated, and not every modified animal should be approved. But in cases like AquaBounty’s, where all the available evidence indicates that the animals are safe, we shouldn’t let political calculations or unfounded fears keep these products off the market. If we do that, we’ll be closing the door on innovations that could help us face the public health and environmental threats of the future, saving countless animals — and perhaps ourselves.

For the full commentary, see:
EMILY ANTHES. “Don’t Be Afraid of Genetic Modification.” The New York Times, SundayReview Section (Sun., March 10, 2013): 4.
(Note: ellipses added.)
(Note: the online version of the commentary has the date March 9, 2013.)

Emily Anths, who is quoted above, has written a related book:
Anthes, Emily. Frankenstein’s Cat: Cuddling up to Biotech’s Brave New Beasts. New York: Scientific American / Farrar, Straus and Giroux, 2013.

The Law-Breaking Entrepreneur as “Savior”

(p. A11) This is a simple lesson in free-market economics, provided courtesy of the harsh winter weather of recent days in the eastern half of the U.S. Coincidentally, the annual meetings of the American Economic Association were scheduled to take place in Philadelphia, from Jan. 3-6. My friend and colleague, Haizheng Li, flew in to Philadelphia late in the evening of Thursday, Jan. 2, landing around 10:45. As he later told me, by then it was snowing heavily. Because of backed-up air traffic, the pilot was not able to park at their arrival gate for 40 minutes. After de-planing, Haizheng waited for another 40 minutes to retrieve his luggage.
. . .
Haizheng and a number of other passengers were facing the grim prospect of an uncomfortable night at the airport. The food vendors were all closed. Haizheng was tired and hungry–and he was scheduled to make a presentation at 8 the next morning.
Unexpectedly, out of the night came a savior. A man walked through baggage claim asking whether any of the recently arrived passengers needed transportation to one of the downtown hotels. Haizheng didn’t ask what the ride might cost, he just said yes. As it turned out, the man took six stranded passengers, plus luggage, to their hotels for $25 each.
No doubt in doing so he broke at least one, probably several, laws regarding passenger transport that are designed to prop up the local taxi cartel. Yet this man’s action dramatically improved the lives of six individuals, each of whom undoubtedly would have been willing to pay much more than $25 to get from the airport to their respective hotels. Haizheng told me he would have paid a lot more.

For the full commentary, see:
DAVID N. LABAND. “An Economics Lesson at the Baggage Carousel; Government-regulated taxis weren’t around in a snowstorm. Then came a man with a car and price.” The Wall Street Journal (Fri., Jan. 10, 2014): A11.
(Note: ellipsis added; italics in original.)
(Note: the online version of the article has the date Jan. 9, 2014.)

Ending U.S. Sugar Import Quotas Would Create 20,000 U.S. Jobs in Food Manufacturing

CalvoBacciOwnerCandyShop2013-12-j07.jpg “Erin Calvo-Bacci, the owner of a candy shop, the Chocolate Truffle, in Reading, Mass., lamented the cost of American sugar.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A14) READING, Mass. — Inside the Chocolate Truffle candy shop in this Boston suburb are chocolate pizzas, chocolate buffalo wings, even a chocolate wingtip shoe. The owner, Erin Calvo-Bacci, would like to expand her business close to home, but is instead thinking of moving her operations to Canada, where the sugar essential for her products costs far less.

“We are committed to offering locally made affordable products, but the cost of sugar is driving manufacturers out of the country,” Ms. Calvo-Bacci said, echoing other American candy producers, like the maker of Dum Dum lollipops, that are moving jobs to Mexico to take advantage of the lower sugar prices there.
Candy makers say the culprit is the federal sugar program, a combination of import restrictions, production quotas and loan programs dating to the 1930s, all designed to keep the price of American sugar well above that of the world market. Now the program is at the center of an intensifying battle as the House and Senate open formal negotiations this week on a long-delayed farm bill.
The price for one type of sugar, wholesale refined beet sugar, averaged 43.4 cents per pound at Midwest markets last year, the Agriculture Department reported, compared with 26.5 cents per pound for the world refined sugar price.
. . .
. . . sugar producers, bolstered by lawmakers from sugar-beet-producing states like Minnesota and sugarcane states like Florida, have spent an estimated $20 million since 2011 to block efforts to change the program. . . . Small candy makers, bakers and others who have lobbied Congress for lower prices say that taking on the sugar lobby is like taking on Goliath.
“We were no match for the sugar people,” said Judy Hilliard McCarthy, an owner of Hilliard’s House of Candy, a candy maker just outside Boston. Ms. McCarthy said she had made several trips to Washington to lobby on behalf of the industry.
Government and academic studies support claims by candy makers that the sugar program has had an impact on the industry. A widely cited 2006 study by the Commerce Department and a 2011 Iowa State University study found that the price supports had led to job losses among candy makers.
In particular, the Commerce Department study found that three candy-making jobs were lost for each job growing or processing sugar that was saved by higher prices. The Iowa State study found that eliminating price supports and quotas for sugar would create about 20,000 jobs for American food processors, bakeries and candy makers.

For the full story, see:
RON NIXON. “Candy Makers, Pinched by Inflated Sugar Prices in the U.S., Look Abroad.” The New York Times (Thurs., October 31, 2013): A14.
(Note: ellipses added.)
(Note: the online version of the article has the date October 30, 2013, and has the title “American Candy Makers, Pinched by Inflated Sugar Prices, Look Abroad.”)

The latest version of the John Beghin Iowa State report, mentioned above, is:
Beghin, John C., and Amani Elobeid. “The Impact of the U.S. Sugar Program Redux.” Working Paper No. 13010. Iowa State University, Department of Economics, Staff General Research Papers, May 2013.

SugarPouredForConfection2013-12-07.jpg “Sugar was poured to make a confection for Hilliard’s House of Candy, just outside Boston, whose owner has lobbied officials.” Source of caption and photo: online version of the NYT article quoted and cited above.