artdiamondblog.com – Page 389 – Art Diamond's web log

Google’s Calico Company Seeks to Expand the Human Life Span

(p. B4) Google Inc.is backing a new company to research aging, taking an unusual business swing at the burgeoning science of extending the human life span.
The venture, which is long on goals but short on specifics, is known as Calico, and will operate separately from Google, the online search giant said on Wednesday.
“We believe we can make good progress within reasonable time scales with the right goals and the right people,” Google CEO Larry Page said in a blog post. “This is clearly a longer-term bet.”
. . .
Google provided scant details about how Calico would operate or how it would tackle its ambitions of improving the health of “millions of lives.” But Jay Olshansky, an expert on aging at the University of Illinois of Chicago, said one potentially promising path is to research therapies that target the aging process itself.
While medical research typically focuses on finding treatments and cures for individual ailments such as cardiovascular disease and cancer, “if you’re going to have an impact on human health and longevity in the future, the way to go is to go after aging itself,” Dr. Olshansky said.
A founder of a consortium called the Longevity Dividend Initiative, Dr. Olshansky said [he gave a talk at conference (sic) in 2010 in which he said that finding a cure for cancer would only extend human life span by about three and one-half years. The reason is, he said, is (sic) it would “expose people who were saved from dying of cancer to all the other diseases and disorders” that are the result of aging.]
. . .
{He said Mr. Brin attended the meeting and asked him questions about the talk. He hasn’t discussed Calico with anyone at Google–the first he’d heard of the venture was Wednesday– though he described the formation of Calico as “great news.”}

For the full story, see:
GREG BENSINGER and RON WINSLOW. “Google Backs New Venture to Research Aging.” The Wall Street Journal (Thurs., September 19, 2013): B4.
(Note: ellipsis added; square-bracketed words are in the print, but not the online, version of the article; curly-bracketed words are in the online, but not the print, version of the article.)
(Note: the online version of the story has the date September 18, 2013, and has the title “Google Backs Venture to Research Aging.”)

Former Economics of Entrepreneurship and Economics of Technology Student Luis López Voted Crowd Favorite at Straight Shot Startup Accelerator Demo Day

“Luis López pitches his startup, CardioSys, to investors during Demo Day at Aksarben Cinema this week. The event was the culmination of a 90-day Straight Shot startup accelerator program that offered new companies networking opportunities, advisers and investment dollars. Seven startups were in the inaugural accelerator class.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.

Luis López, the entrepreneur who is featured in the article quoted below, was a student of mine in both my Economics of Entrepreneurship and my Economics of Technology seminars (and before that, in micro principles). I cannot say that I taught him everything he knows, but it appears that I did not do him much harm.

(p. 1D) The same day Luis López and his brother, Danny, were accepted into Omaha’s Straight Shot startup accelerator for their new company, corporate America called.

The 25-year-old Central High grad had received a job offer from Gallup. But he turned it down, choosing to take an entrepreneurial risk over a predictable salary and benefits.
“I can always apply for a job in the corporate world,” he said, but it’s not every day that one’s company is accepted into an accelerator program that offers $20,000 in investment, more than 300 mentors and more than $75,000 in in-kind services.
The risk paid off, López said last week as the 90-day program wrapped up. The López brothers’ startup, CardioSys — which uses predictive analytics to calculate a person’s risk of developing conditions like heart disease and diabetes based on factors such as age, blood pressure and lipid profiles — came out of the program with a group of nine advisers.
. . .
(p. 2D) Luis López said CardioSys is hoping to land some investment in the next month or two, and is now looking at applying for a short-term health industry-focused incubator program in California, which the founders were connected with via Straight Shot.
In the long term, however, López said that with its strong community of medical and insurance providers, Omaha is CardioSys’ home. At Demo Day, the startup was voted crowd favorite. “I was surprised. It’s an honor to have people excited about what we’re doing,” he said.

For the full story, see:
Paige Yowell. “Straight Shot at Success; Accelerator’s First Startups Make Their Pitches.” Omaha World-Herald (SATURDAY, OCTOBER 5, 2013): 1D & 2D.
(Note: ellipses added.)
(Note: the online version of the story has the title “Straight Shot Accelerator’s First Startups Make Their Pitches.”)

“Luis Lopez, who with his brother Danny Lopez, created CardioSys, gives his pitch at Demo Day.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited above.

“SEC Rules Demanded Complexity”

(p. 152) Google had considerable experience with pleasing users, but in the case of the auction, it could not create a simple interface. SEC rules demanded complexity. So the Google auction was a lot more complicated than buying Pokémon cards on eBay. People had to qualify financially as bidders. Bids had to be placed by a brokerage. If you made an error in reg-(p. 153)istering, you could not correct it but had to reregister. All those problems led to a few postponements of the start of the bidding period.
But the deeper problem was the uncertainty of Google’s prospects. As the press accounts accumulated–with reporters informed by Wall Streeters eager to sabotage the process– the perception grew that Google was a company with an unfamiliar business model run by weird people. A typical Wall Street insider analysis was reflected by Forbes.com columnist Scott Reeves, who concluded that Google’s target price, at the time pegged to the range between $ 108 and $ 135 a share, was excessive. “Only those who were dropped on their head at birth [will] plunk down that kind of cash for an IPO,” Reeves wrote.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.

Taxpayers Work, Save and Invest More When Taxes Are Low

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

(p. 15) The 1980s boom was launched on the simple insight that, by lowering tax rates and regulatory hurdles and juicing the incentives to produce, innovate and take risks, the animal spirits of the American free-enterprise system would revive. Two seminal books hatched the supply-side revolution. The first was Jude Wanniski’s “The Way the World Works” (1978); the second, George Gilder’s “Wealth and Poverty” (1981).

Almost as influential, coming a few years later, was Lawrence Lindsey’s “The Growth Experiment” (1990). Slightly academic in nature, it was the first book to quantify the economic and revenue windfall of the 1981 Reagan across-the-board tax cuts. Mr. Lindsey’s conclusion was that Reagan’s 1981 tax act quickened the pace of production, which reduced the predicted revenue loss. His research found that although the Reagan tax cuts didn’t “pay for themselves,” the ones at the highest end of the income spectrum “did produce a revenue gain” because of “changes in taxpayer behavior.” He concluded that “the core supply-side tenet–that tax rates powerfully affect the willingness of taxpayers to work, save and invest, and thereby also affect the health of the economy–won as stunning a vindication as has been seen in at least a half-century of economics.”
He has now updated his book, taking us through the booms and busts of the past 20 years. It is a valuable project in part because Mr. Lindsey was a front-seat economic adviser to George W. Bush, serving as director of the National Economic Council and as one of the architects of the often-maligned 2001 and 2003 Bush tax cuts.
Mr. Lindsey’s central claim is that those tax changes saved the economy from the undertow of the financial meltdown at the end of the Clinton presidency.

For the full review, see:
Stephen Moore. “BOOKSHELF; Book Review: ‘The Growth Experiment Revisited’ by Lawrence Lindsey; The 25 years after Reagan’s tax cuts saw unprecedented wealth creation and progress. America’s net worth exploded by $40 trillion.” The Wall Street Journal (Tues., September 10, 2013): A15.
(Note: ellipsis added.)
(Note: the online version of the review has the date September 9, 2013, and has the title “BOOKSHELF; Book Review: ‘The Growth Experiment Revisited’ by Lawrence Lindsey; The 25 years after Reagan’s tax cuts saw unprecedented wealth creation and progress. America’s net worth exploded by $40 trillion.”)

The book under review is:
Lindsey, Lawrence B. The Growth Experiment Revisited: Why Lower, Simpler Taxes Really Are America’s Best Hope for Recovery. New York: Basic Books, 2013.

Early Funding for Ameritrade Was a Loan Secured by Joe Ricketts’ House and Car

(p. 1D) Even the oldest and most established companies were once a back-of-the-envelope glimmer of an idea.
That was the message Wednesday night from First National Bank’s Clark Lauritzen, president of the company’s FNN Wealth Management.
. . .
TD Ameritrade founder Joe Ricketts, Lauritzen said, started his company in 1975 with a First National loan secured by his car and house; the first office was in the bank’s basement. Now, the online stock brokerage employs 2,000 people in Omaha and is an industry leader.
“Joe reinvested his profits in the business year after year,” Lauritzen said.

For the full story, see:
Russell Hubbard. “Even Big Businesses Start Small, Says First National’s Clark Lauritzen:.” Omaha World-Herald (THURSDAY, AUGUST 29, 2013): 1D.
(Note: ellipsis added.)
(Note: the online version of he article has the title “First National’s Clark Lauritzen: Even Big Businesses Start Small.”)

“Global Fertility Will Fall to the Replacement Rate in Less than 15 Years”

Source of graph: online version of the NYT article quoted and cited below.

(p. B3) An analysis of population trends by Sanjeev Sanyal, the global strategist for Deutsche Bank, concludes that population growth is likely to be much slower than the U.N.’s estimate.

“In our view, global fertility will fall to the replacement rate in less than 15 years,” Mr. Sanyal wrote. “Population may keep growing for a few more decades from rising longevity but, reproductively speaking, our species will no longer be expanding.” He forecasts that world population will peak in around 2055, at 8.7 billion, and decline to 8 billion by the end of the century.
The fertility replacement rate — the number of children per woman needed to keep the population level over time — is usually considered to be 2.1. Mr. Sanyal says that in the developing world, it is higher, because of higher infant mortality and maternal death in childbirth. For the world as a whole, he thinks the current replacement rate is about 2.27, a figure that will come down gradually over time.
The spread between the latest U.N. forecast and Deutsche Bank’s for 2100 — 2.8 billion people — is greater than the entire population of the world in 1955.

For the full story, see:
FLOYD NORRIS. “Population Growth Forecast From the U.N. May Be Too High.” The New York Times (Sat., September 21, 2013): B3.
(Note: the online version of the story has the date September 20, 2013.)

SEC Told Google to Delete “Making the World a Better Place” from Document

(p. 150) . . . , the Securities and Exchange Commission was unimpressed by the charms of Page’s “Owner’s Manual.” “Please revise or delete the statements about providing ‘a great service to the world,’ ‘to do things that matter,’ ‘greater positive impact on the world, don’t be evil’ and ‘making the world a better place,'” they wrote. (Google would not revise the letter.) The commission also had a problem with Page’s description of the lawsuit that Overture (by then owned by Yahoo) had filed against Google as “without merit.” Eventually, to resolve this issue before the IPO date, (p. 151) Google would settle the lawsuit by paying Yahoo 2.7 million shares, at an estimated value of between $ 260 and $ 290 million.
That set a contentious tone that ran through the entire process. The SEC cited Google’s irregularities on a frequent basis, whether it was a failure to properly register employee stock options, inadequate reporting of financial results to stakeholders, or the use of only first names of employees in official documents. It acted toward Google like a junior high school vice principal who’d identified an unruly kid as a bad seed, requiring constant detentions.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: ellipsis added.)

Among 1890s Wall Street Elite, “It Was Fashionable to Be Anti-Semitic”

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

(p. A11) J.P. Morgan may well have been the most powerful banker who ever lived. Certainly he was the most powerful American banker. But the banking world that he and his firm dominated was a short-lived one, lasting only from the 1890s to the Depression of the 1930s. Susie J. Pak explores Morgan’s world, especially its social aspects, in “Gentlemen Bankers,” and the exploration is very interesting indeed.
. . .
In Wall Street at the time, there were two groups of private banking firms; those with Jewish partners and those with gentile ones. And while they did business together, often forming syndicates to handle large underwritings, they led separate social lives. They belonged to different clubs, stayed at different hotels and resorts. They didn’t attend the weddings of one another’s children. The reason, of course, was anti-Semitism. But as Ms. Pak notes, it had nothing to do with the ancient, religiously motivated anti-Semitism typical in Europe. This latter-day anti-Semitism was essentially social in character: To be blunt, it was fashionable to be anti-Semitic.
In earlier decades of the 19th century, affluent Jews had mingled socially with their gentile neighbors. They had been among the founding members of such old-line clubs as the Union Club (est. 1836) and the Union League Club (1863). Jesse Seligman, a partner in the well-regarded Jewish banking firm of J. & W. Seligman, was vice president of the Union League Club in 1893. But when he put his son up for membership that year, he was rejected. “Those who voted against him,” a biographer of the Seligman family wrote, “said they had nothing against him personally; they objected to his race.” His stunned father resigned from the club. He died the next year, aged 66; some said the incident contributed to his death.

For the full review, see:
JOHN STEELE GORDON. “BOOKSHELF; Book Review: ‘Gentlemen Bankers’ by Susie J. Pak; In the age of J.P. Morgan, the sons of Jewish bankers attended Ivy League colleges, but were excluded from the myriad social and athletic organizations.” The Wall Street Journal (Fri, August 30, 2013): A11.
(Note: ellipsis added.)
(Note: the online version of the review has the date August 29, 2013, and has the title “BOOKSHELF; Book Review: ‘Gentlemen Bankers’ by Susie J. Pak; In the age of J.P. Morgan, the sons of Jewish bankers attended Ivy League colleges, but were excluded from the myriad social and athletic organizations.”)

The book under review, is:
Pak, Susie J. Gentlemen Bankers: The World of J.P. Morgan, Harvard Studies in Business History. Cambridge, MA: Harvard University Press, 2013.

2013 Has “Largest One-Year Increase in Arctic Ice” Ever Recorded

(p. A8) Sea ice in the Arctic Ocean underwent a sharp recovery this year from the record-low levels of 2012, with 50 percent more ice surviving the summer melt season, scientists said Friday. It is the largest one-year increase in Arctic ice since satellite tracking began in 1978.

For the full story, see:
JUSTIN GILLIS. “Arctic Ice Makes Comeback From Record Low, but Long-Term Decline May Continue.” The New York Times (Sat., September 21, 2013): A8.
(Note: the online version of the story has the date September 20, 2013.)

“I Didn’t Open My Own Company to Have Someone Else Tell Me How to Run It”

“”They’re picking on my employees,” Edward Taylor, the president of Down East Seafood, said, referring to the commission.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A16) The day after Jonathan Sanchez was released from prison in 2010 after serving three years for a burglary, he walked into Down East Seafood in Hunts Point in the South Bronx and asked for a job, and a second chance. He got both.

But now Mr. Sanchez must document the past he has tried to leave behind, in an 11-page application for a photo identification card issued by a city agency that is responsible for ferreting out organized crime. He is one of hundreds of food workers who have come under scrutiny in recent years by the agency, the New York City Business Integrity Commission, not because of any known ties to mob bosses but simply because they work for a company in Hunts Point.
. . .
“This was my brand new start,” said Mr. Sanchez, 26, who makes $40,000 a year packing lobster orders.
Mr. Sanchez said he worried that his past crime will follow him from job to job and brand him as an ex-con. “I feel violated because I don’t think those things have to be asked,” he said. “I feel that it could stigmatize me.”
. . .
Edward Taylor, the president of Down East Seafood, said more than half of his 60 employees had told him they did not want to complete the application. A couple of them have even said they would instead quit.
Mr. Taylor, who had to answer similar questions himself to register the company, said he would not have moved to Hunts Point from Manhattan in 2005 if he had known about the commission. The company, which he started in 1990 with $500 borrowed from a friend, supplies more than 700 establishments, including Dean & DeLuca, the Harvard and Yale Clubs and the dining rooms at the United Nations.
“They’re picking on my employees,” he said. “I didn’t open my own company to have someone else tell me how to run it.”

For the full story, see:
WINNIE HU. “Food Workers Criticize a Commission’s Scrutiny.” The New York Times (Sat., September 21, 2013): A16.
(Note: ellipses added.)
(Note: the online version of the story has the date September 20, 2013, and has the title “Food Workers in Hunts Point Criticize a Commission’s Scrutiny.”)

Google’s Bathrooms Showed Montessori Discipline

(p. 124) You could even see the company’s work/ play paradox in its bathrooms. In some of Google’s loos, even the toilets were toys: high-tech Japanese units with heated seats, cleansing water jets, and a control panel that looked as though it could run a space shuttle. But on the side of the stall–and, for men, at an eye-level wall placement at the urinals–was the work side of Google, a sheet of paper with a small lesson in improved coding. A typical “Testing on the Toilet” instructional dealt with the intricacies of load testing or C + + microbenchmarking. Not a second was wasted in fulfilling Google’s lofty–and work-intensive–mission.
It’s almost as if Larry and Sergey were thinking of Maria Montessori’s claim “Discipline must come through liberty…. We do not consider an individual disciplined only when he has been rendered as artificially silent as a mute and as immovable as a paralytic. He is an individual annihilated, not disciplined. We call an individual disciplined when he is master of himself.” (p. 125) Just as it was crucial to Montessori that nothing a teacher does destroy a child’s creative innocence, Brin and Page felt that Google’s leaders should not annihilate an engineer’s impulse to change the world by coding up some kind of moon shot.
“We designed Google,” Urs Hölzle says, “to be the kind of place where the kind of people we wanted to work here would work for free.”

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: ellipsis in original.)