Laws to Protect Car Dealers, Keep Car Prices High

TeslaGalleryVirginia2013-07-23.jpg “Tesla ‘galleries’ such as this one in McLean, Va., can show but not sell cars.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. B1) RALEIGH, N.C.–Elon Musk made a fortune disrupting the status quo in online shopping and renewable energy. Now he’s up against his toughest challenge yet: local car dealers.

Mr. Musk, the billionaire behind PayPal and now Tesla Motors Inc., wants to sell his $70,000 Tesla electric luxury vehicles directly to consumers, bypassing franchised automobile dealers. Dealers are flexing their considerable muscle in states including Texas and Virginia to stop him.
The latest battleground is North Carolina, where the Republican-controlled state Senate last month unanimously approved a measure that would block Tesla from selling online, its only sales outlet here. Tesla has staged whiz-bang test drives for legislators in front of the State House and hired one of the state’s most influential lobbyists to stave off a similar vote in the House before the legislative session ends in early July.
The focus of the power struggle between Mr. Musk and auto dealers is a thicket of state franchise laws, many of which go back to the auto industry’s earliest days when industry pioneer Henry Ford began turning to eager entrepreneurs to help sell his Model T.
Dealers say laws passed over the decades to prevent car makers from selling directly to consumers are justified because without them auto makers could use their economic clout to sell vehicles for less than their independent franchisees.

For the full story, see:
MIKE RAMSEY and VALERIE BAUERLEIN. “Tesla Clashes With Car Dealers; Electric-Vehicle Maker Wants to Sell Directly to Consumers; Critics Say Plan Violates Franchise Laws.” The Wall Street Journal (Tues., June 18, 2013): B1-B2.

If Driverless Cars Only Kill Half a Million Per Year, that “Would Be an Improvement”

(p. 261) . . . , human-piloted cars cause great harm, killing millions of people each year worldwide. If robot-controlled cars killed “only” half a million people per year, it would be an improvement!

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.
(Note: ellipsis added.)

Students Learn More in Air Conditioning

(p. 5) My first year as a public school teacher, I taught at Manhattan’s P.S. 98, which did not have air-conditioning. From mid-May until June’s end — roughly 17 percent of the school year — the temperature in my classroom hovered in the 80s and often topped 90 degrees.
Students wilted over desks. Academic gains evaporated. Even restless pencil tappers and toe wigglers grew lethargic. Absenteeism increased as children sought relief at home or outdoors. By day’s end, my hair was plastered to my face with perspiration.
It seems obvious: schools need to be cool. It’s absurd to talk about inculcating 21st-century skills in classrooms that resemble 19th-century sweatshops.
. . .
Cool schools are critical if we are to boost achievement. Studies show that concentration and cognitive abilities decline substantially after a room reaches 77 or 78 degrees. This is a lesson American businesses learned long ago. . . . A pleasant atmosphere leads to more productive employees.
. . .
It isn’t just white-collar laborers who work in cool climates. Amazon announced last year that it was spending $52 million to upgrade its warehouses with air-conditioning. Yet we can’t seem to do the same for vulnerable children, though some of the achievement gap is most likely owing to a lack of air-conditioning. One Oregon study found that students working in three different temperature settings had strikingly different results on exams, suggesting that sweating a test actually undermines performance.
Students who enjoy the luxury of air-conditioning may enjoy an unfair advantage over their hotter peers.
We are also investing enormous sums to extend the school day and school year in many locales. But these investments won’t be effective if schools are ovens.

For the full commentary, see:
SARA MOSLE. “SCHOOLING; Schools Are Not Cool.” The New York Times, SundayReview Section (Sun., June 2, 2013): 5.
(Note: ellipses added.)
(Note: the online version of the commentary has the date June 1, 2013.)

Creator of C Language Worked Late “in a Chaotic Office”

RitchieDennisInventorOfC2013-06-28.jpg

“Dennis Ritchie received the Japan Prize in May at Bell Labs in Murray Hill, N.J., for his role in co-developing the Unix operating system.” Source of caption and photo: online version of the WSJ obituary quoted and cited below.

(p. A7) Dennis Ritchie invented C, the computer-programming language that underlies Microsoft Windows, the Unix operating system and much of the other software running on computers around the world.

Mr. Ritchie was a longtime research scientist at Bell Labs, originally AT&T’s research division. Bell Labs announced that he died at age 70 [his body was discovered on October 12, 2011].
. . .
Twitter and other online forums crackled with tributes to Mr. Ritchie after his death was announced.
One came from James Grimmelmann, a former Microsoft programmer who now is an associate professor at New York Law School.
“If [Steve] Jobs was a master architect of skyscrapers, it was Ritchie and his collaborators who invented steel,” Mr. Grimmelmann wrote.
Long-haired and often working late into the night in a chaotic office, Mr. Ritchie fulfilled in some ways the computer-nerd stereotype. He was given to gnomic pronouncements on his creations.
“Unix is very simple, it just needs a genius to understand its simplicity” was one. Another: “C is quirky, flawed and an enormous success.”

For the full obituary, see:
STEPHEN MILLER. “REMEMBRANCES; DENNIS RITCHIE 1941-2011; Pioneer Programmer Shaped the Evolution of Computers.” The New York Times (Fri., October 14, 2011): A7.
(Note: ellipsis, and words in first brackets, added; name in second brackets, in original.)

The Precautionary Principle Is Biased Against the New, and Ignores the Risks of the Old

(p. 250) In general the Precautionary Principle is biased against anything new. Many established technologies and “natural” processes have unexamined faults as great as those of any new technology. But the Precautionary Principle establishes a drastically elevated threshold for things that are new. In effect it grandfathers in the risks of the old, or the “nat-(p. 251)ural.” A few examples: Crops raised without the shield of pesticides generate more of their own natural pesticides to combat insects, but these indigenous toxins are not subject to the Precautionary Principle because they aren’t “new.” The risks of new plastic water pipes are not compared with the risks of old metal pipes. The risks of DDT are not put in context with the old risks of dying of malaria.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Will Apple Innovate Without Jobs?

JobsSteveHoldingIphone2013-06-28.jpg “Steve Jobs, introducing the iPhone 4 in January [2011].” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. B4) “The good news for Apple is that the product road map in this industry is pretty much in place two and three years out,” said David B. Yoffie, a professor at the Harvard Business School. “So 80 percent to 90 percent of what would happen in that time would be the same, even without Steve.”

“The real challenge for Apple,” Mr. Yoffie continued, “will be what happens beyond that road map. Apple is going to need a new leader with a new way of recreating and managing the business in the future.”
. . .
His design decisions, Mr. Jobs explained, were shaped by his understanding of both technology and popular culture. His own study and intuition, not focus groups, were his guide. When a reporter asked what market research went into the iPad, Mr. Jobs replied: “None. It’s not the consumers’ job to know what they want.”
. . .
Great products, Mr. Jobs once explained, were a triumph of taste, of “trying to expose yourself to the best things humans have done and then trying to bring those things into what you are doing.”
Mr. Yoffie said Mr. Jobs “had a unique combination of visionary creativity and decisiveness,” adding: “No one will replace him.”

For the full story, see:
STEVE LOHR. “Without Its Master of Design, Apple Will Face Challenges.” The New York Times (Thurs., August 25, 2011): B1 & B4.
(Note: ellipses in text, and bracketed year in caption, added.)
(Note: the online version of the story has the date August 24, 2011, and the slightly longer title “Without Its Master of Design, Apple Will Face Many Challenges.”)

Chinese Peasants Applied Precautionary Principle to Scythe Technology

(p. 249) In a letter Orville Wright wrote to his inventor friend Henry Ford, Wright recounts a story he heard from a missionary stationed in China. Wright told Ford the story for the same reason I tell it here: as a cautionary tale about speculative risks. The missionary wanted to improve the laborious way the Chinese peasants in his province harvested grain. The local farmers clipped the stalks with some kind of small hand shear. So the missionary had a scythe shipped in from America and demonstrated its superior productivity to an enthralled crowd. “The next morning, however, a delegation came to see the missionary. The scythe must be destroyed at once. What, they said, if it should fall into the hands of thieves; a whole field could be cut and carried away in a single night.” And so the scythe was banished, progress stopped, because nonusers could imagine a possible–but wholly improbable–way it could significantly harm their society.

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Record Companies Refused to See Efficiency of Napster Distribution System

AppetiteForSelfDestructionBK2013-07-13.jpg

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

(p. A15) . . . the central character in “Appetite for Self-Destruction” is technological change.
. . .
Record labels scrambled to negotiate with Napster and develop a legal version of the service with multiple revenue streams. The attempts all failed. In Mr. Knopper’s telling, there were unreasonable demands on all sides. But he faults music executives for “cling[ing] to the old, suddenly inefficient model of making CDs and distributing them to record stores. . . . In this world, the labels controlled — and profited from — everything.” In the new world being ushered in by Napster, he writes, control was shifting “to a snot-nosed punk and his crazy uncle.”
The labels’ inability to reach an agreement with Napster destroyed “the last chance for the record industry as we know it to stave off certain ruin,” Mr. Knopper writes in a typically overheated passage. Had a deal been consummated, he suggests, a legal version of Napster might have generated revenues of $16 billion in 2002 and saved the industry. Whether or not the author’s estimate is accurate, his larger point remains: The music industry’s big mistake was trying to protect a business model that no longer worked. Litigation would not keep music consumers offline.

For the full review, see:
JEREMY PHILIPS. “BUSINESS BOOKSHELF; Spinning Out of Control; How the record industry missed out on a chance to compete in a new digital world.” The Wall Street Journal (Weds., February 11, 2009): A15.
(Note: first two ellipses added; third ellipsis in original.)

The book under review is:
Knopper, Steve. Appetite for Self-Destruction: The Spectacular Crash of the Record Industry in the Digital Age. New York: Free Press, 2009.

The Decay of River Rouge’s Diseconomies of Scale

RiverRougeFordRollingHall2013-06-28.jpg “The rolling hall at Ford’s River Rouge plant, one of Andrew Moore’s photographs of Detroit.” Source of caption and of the Andrew Moore photo: online version of the NYT article quoted and cited below.

Ford’s River Rouge plant near Detroit is a standard textbook example of diseconomies of scale (aka diminishing returns to scale). The image above is an apt illustration of the consequences of diseconomies of scale.

(p. 19) A Connecticut native, Mr. Moore moved to New York in 1980, living near South and John Streets in Lower Manhattan. At night he would wander the neighborhood taking pictures of the construction of the South Street Seaport, which kindled an interest in documenting “life in flux,” he said. “I like places in transformation, the process of becoming and changing.”
. . .
Photos like those of the enormous rolling hall at Ford’s River Rouge plant and a sunset over the Bob-Lo Island boat dock were inspired, Mr. Moore said, by 19th-century American landscape painters like Frederic Church and Martin Johnson Heade.

For the full story, see:
MIKE RUBIN. “Capturing the Idling of the Motor City.” The New York Times, Arts&Leisure Section (Sun., August 21, 2011): 19.
(Note: ellipsis added.)
(Note: the online version of the story has the date August 18, 2011.”)

Andrew Moore has a book of his photos of Detroit:
Moore, Andrew, and Philip Levine. Andrew Moore: Detroit Disassembled. Bologna, Italy: Damiani/Akron Art Museum, 2010.

The Precautionary Principle Stops Technological Progress

(p. 247) All versions of the Precautionary Principle hold this axiom in common: A technology must be shown to do no harm before it is embraced. It must be proven to be safe before it is disseminated. If it cannot be proven safe, it should be prohibited, curtailed, modified, junked, or ignored. In other words, the first response to a new idea should be inaction until its safety is established. When an innovation appears, we should pause. Only after a new technology has been deemed okay by the certainty of science should we try to live with it.
On the surface, this approach seems reasonable and prudent. Harm must be anticipated and preempted. Better safe than sorry. Unfortunately, the Precautionary Principle works better in theory than in practice. “The precautionary principle is very, very good for one thing–stopping technological progress,” says philosopher and consultant Max More. Cass R. Sunstein, who devoted a book to debunking the principle, says, “We must challenge the Precautionary Principle not because it leads in bad directions, but because read for all it is worth, it leads in no direction at all.”

Source:
Kelly, Kevin. What Technology Wants. New York: Viking Adult, 2010.

Walker Says Those Who Call Him “Patent Troll” Want His Property Without Paying

WalkerJayPatentDefender2013-06-28.jpg

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

(p. B1) Jay Walker turned his idea for “name your own price” Internet auctions into a fortune by starting Priceline.com Inc. Now the entrepreneur is trying to cash in on his ideas by suing other companies.

Since it was founded in 1994 as a research lab, Walker Digital LLC has made much of its money by spinning out its inventions, like online travel agent Priceline and vending-machine firm Vendmore Systems LLC, as independent businesses.
. . .
Mr. Walker defends his newly aggressive tactics, which some critics compare to those of “patent trolls,” a derogatory term for firms that opportunistically enforce patents. Without the lawsuits, he said, his patents could expire while other companies exploit them. Patents have a 20-year lifespan.
“Not only are we not a troll, but the people who want to label me are often the same ones that want to use our property and not pay,” Mr. Walker said in an interview.

For the full story, see:
JOHN LETZING. “Founder of Priceline Spoiling for a Fight Over Tech Patents.” The Wall Street Journal (Mon., August 22, 2011): B1 & B10.
(Note: ellipsis added.)