artdiamondblog.com – Page 398 – Art Diamond's web log

“Web Links Were Like Citations in a Scholarly Article”

(p. 17) Page, a child of academia, understood that web links were like citations in a scholarly article. It was widely recognized that you could identify which papers were really important without reading them– simply tally up how many other papers cited them in notes and bibliographies. Page believed that this principle could also work with web pages. But getting the right data would be difficult. Web pages made their outgoing links transparent: built into the code were easily identifiable markers for the destinations you could travel to with a mouse click from that page. But it wasn’t obvious at all what linked to a page. To find that out, you’d have to somehow collect a database of links that connected to some other page. Then you’d go backward.

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

For Hubbard and Kane “Institutions Explain Innovation”

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

(p. A11) Messrs. Hubbard and Kane argue, as do others, that certain policies and core principles are the key: property rights, flexible work rules, open markets. For the authors, such matters explain economic growth entirely.

To those who would cite the primacy of technological breakthroughs, Messrs. Hubbard and Kane assert that inventions only spark growth if there are systems in place (such as intellectual-property rights) that enable inventions to flourish and their value to spread. “The wheel and the windmill were invented many times,” they write, “then forgotten, until finally one society had the institutional framework to implement them widely and pass them on permanently.” In short, “institutions explain innovation.”

For the full review, see:
Matthew Rees. “BOOKSHELF; How the Mighty Fall; The Roman empire eventually lost its economic vitality thanks to price controls, heavy taxes and state-sponsored debt relief..” The Wall Street Journal (Fri., June 21, 2013): A11.
(Note: the online version of the review has the date June 20, 2013.)

The book under review is:
Hubbard, Glenn, and Tim Kane. Balance: The Economics of Great Powers from Ancient Rome to Modern America. New York: Simon & Schuster, 2013.

If Terry Were from Texas, He Might Oppose Federal Ethanol Mandates

(p. 1A) WASHINGTON — The ethanol industry is again under fire from critics who want to eliminate the federal mandate that oil companies blend biofuels into the gasoline supply.
The House Energy and Commerce Committee is holding hearings on the Renewable Fuel Standard [RFS], which called for 15 billion gallons of biofuels to be used in 2012. The requirements reach 36 billion gallons by 2022.
. . .
(p. 2A) Rep. Lee Terry, R-Neb., a member of the Energy and Commerce Committee, said it’s clear that members from Texas and Louisiana will be targeting the usage requirements.
. . .
Terry has been a champion of the Keystone XL pipeline, making him an ally of Gulf Coast lawmakers and the oil industry on that issue.
Their split over the ethanol issue causes some awkward moments, he said.
“I say, ‘You do realize I’m from the Cornhusker State,'” Terry said. “If I was from Dallas, you know, who knows? I’d have a different view on the RFS.”

For the full story, see:
Joseph Morton. “Big Oil Revs Up Efforts to Repeal Rules Forcing Ethonal in the Mix.” Omaha World-Herald (MONDAY, JULY 8, 2013): 1A-2A.
(Note: ellipses and bracketed abbreviation added.)
(Note: the online version of the article has the title “RENEWABLE FUEL STANDARD; Ethanol Critics Rev Up Efforts to Repeal Biofuel Rules on Gas.”)

“No Innovation Happens with 10 People in a Room”

“Paul English, the co-founder of Kayak, said the company valued testing new ideas, not talking about them.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. B2) Q. You were a co-founder of Kayak nine years ago. What’s unusual about the culture?

A. We’re a little bit reckless in our decision-making — not with the business, but the point is that we try things. We give even junior people scary amounts of power to come up with ideas and implement them. We had an intern last summer who, on his very first day at Kayak, came up with an idea, wrote the code and released it. It may or may not have been successful, but it almost doesn’t matter, because it showed that we value speed, and we value testing ideas, not talking about them.
. . .
Q. What else?
A. We’re known for having very small meetings, usually three people. There’s a little clicker for counting people that hangs on the main conference room door. The reason it’s there is to send a message to people that I care about this issue. If there’s a bunch of people in the room, I’ll stick my head in and say, “It takes 10 of you to decide this? There aren’t three of you smart enough to do this?”
I just hate design by consensus. No innovation happens with 10 people in a room. It’s very easy to be a critic and say why something won’t work. I don’t want that because new ideas are like these little precious things that can die very easily. Two or three people will nurture it, and make it stronger, give it a chance to see life.

For the full interview, see:
ADAM BRYANT, interviewer. “CORNER OFFICE; Paul English; Ten People in a Meeting Is About Seven Too Many.” The New York Times (Fri., July 26, 2013): B2.
(Note: ellipsis added; bold and italics in original.)
(Note: the online version of the interview has the date July 25, 2013, and has the title “CORNER OFFICE; Paul English of Kayak, on Nurturing New Ideas.”)

“A Jigger of Asperger’s in the Mix”

(p. 11) Page was not a social animal– people who talked to him often wondered if there were a jigger of Asperger’s in the mix– and could unnerve people by simply not talking. But when he did speak, more often than not (p. 12) he would come out with ideas that bordered on the fantastic.

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

Less Credentialed Hazlitt Got More Right than Keynes and White

Source of book image:
http://s.s-bol.com/imgbase0/imagebase/large/FC/7/0/6/9/9200000009899607.jpg

(p. C5) One of the many merits of “The Battle of Bretton Woods,” a superb history of mid-20th-century monetary affairs, is the timing of its publication. Today, as never before, central banks are printing money, suppressing interest rates and manipulating markets. You wonder where it will all end.
. . .
(p. C6) According to Mr. Steil, the recondite Bretton Woods debates failed to engage the American public as a political issue. If so, it was no fault of Henry Hazlitt’s. An editorial writer for the New York Times, Hazlitt directed persistent, withering fire against White’s and Keynes’s brainchild. (His collected editorials, titled “From Bretton Woods to World Inflation,” were published in 1984.) The conference had it all wrong, Hazlitt thundered in the Times. The IMF would subsidize unsound policies. What was wanted were sound ones.
“The broad principles should not be difficult to formulate,” the readers of the Times were reminded on the eve of the gathering in New Hampshire. Governments should balance their budgets, forswear 1930s-style impediments to free trade (quotas, exchange restrictions) and refrain from “currency and credit inflation.” And the currency itself? It should be “redeemable in something that is itself fixed and definite: for all practical purposes this means a return to the historic gold standard.”
. . .
White was a Harvard Ph.D. Keynes was, at least according to Mr. Steil, “the most innovative and iconoclastic economist of his age, if not of all time.” Hazlitt was no trained economist at all. But it was he, not the two acclaimed experts, who turned out to be right.

For the full review, see:
James Grant. “A Fateful Meeting That Shaped the World.” The Wall Street Journal (Sat., March 16, 2013): C5-C6.
(Note: ellipses added.)
(Note: the online version of the review has the date March 15, 2013.)

The book under review is:
Steil, Benn. The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order Princeton, NJ: Princeton University Press, 2013.

Biofuels Like Ethanol Raise Food Costs About 30%

(p. 5) Until January [2008], Keith Collins was the longtime and widely respected chief economist for the Department of Agriculture. In that position, he was a frequent booster of government policies that encouraged biofuel production.
In the months after his departure, he was hired by Kraft Foods Global to analyze the impact of biofuels on food prices. He delivered a stunning, and unexpected, roundhouse to his former employers.
The Bush administration had said biofuels were a minor factor in rising food costs. In a May 1 [2008] press conference, Edward P. Lazear, chairman of the White House Council of Economic Advisers, said, “The bottom line is that we think that ethanol accounts for somewhere between 2 and 3 percent of the overall increase in global food prices.”
A month later, in Rome at a United Nations conference on the food crisis, the agriculture secretary, Ed Schafer, echoed Mr. Lazear’s analysis in defending American biofuels policy.
But Mr. Collins pointed out that the administration’s analysis was more like a back-of-the-envelope calculation, and that it hadn’t accounted for the impact of biofuels on crops other than corn. The push for ethanol has led farmers to grow more corn and less of other food crops, one factor in rising prices for commodities like wheat.
Based on his own analysis, Mr. Collins maintains that biofuels have caused 23 to 35 percent of the increases in food costs.

For the full commentary, see:
ANDREW MARTIN. “THE FEED; The Man Who Dared to Question Ethanol.” The New York Times, SundayBusiness Section (Sun., July 13, 2008): 5.
(Note: bracketed years added.)

Feds Drop Charge Against 4th Amendment Flasher

Source of photo: http://tsanewsblog.com/wp-content/uploads/2013/01/AaronTobeyHero1.jpg (The WSJ article, cited below, had a similar photo in the print version of the article, but did not include it with the online version.)

(p. B6) Richmond International Airport officials have reached a settlement with Aaron Tobey, the so-called Fourth Amendment flasher.

Mr. Tobey in 2010 was arrested for alleged disorderly conduct at a checkpoint of the Virginia airport for stripping down to his running shorts. On his bare chest, Mr. Tobey had scrawled text of the Fourth Amendment on his chest in protest of the use of full-body scanners, which produced near-naked images of passengers.
The charge against him was dropped.
. . .
Government attorneys agreed not to appeal the Fourth Circuit ruling or further prosecute Mr. Tobey for interfering with TSA procedures, according to the Rutherford Institute, which represented him.
“Frankly, the nation would be better served if all government officials were required to undertake a training course on what it means to respect the constitutional rights of the citizenry,” said John W. Whitehead, president of the Rutherford Institute, a conservative legal defense group.

For the full story, see:
Gershman, Jacob. “Airport Settles Lawsuit Over Full-Body Scanners.” The Wall Street Journal (Mon., July 15, 2013,): B6.
(Note: ellipsis added.)
(Note: the online version of the article has the date July 14, 2013.)

Steel Bankruptcies Led to Better Steel Industry Processes

(p. 3) A few years ago, an industry whose history and mythology were indelible parts of the American identity was dying. The great steel mills of Pennsylvania and the Midwest had literally built this country, but the twin burdens of competition and self-inflicted wounds had brought them to the edge of extinction.
. . .
Yet steel’s savior was not the government bailouts it ardently sought but exactly what it so long tried to avoid: bankruptcy. Only when the companies failed were they successfully slimmed down and retooled into smaller but profitable ventures.
. . .
Bethlehem Steel, whose steel was used in the Hoover Dam, the Chrysler building and the George Washington Bridge, filed for bankruptcy in October 2001. It was followed by National Steel, Weirton Steel, Georgetown Steel and many others. The pain was great.
And necessary, some say. “If the steel companies had gotten all they wanted in terms of loan guarantees and import quotas, they would never have gotten better,” said Richard Fruehan, director of the Sloan Study on Competitiveness in the Steel Industry. “The bankruptcies forced their hand.”

For the full commentary, see:
DAVID STREITFELD. “THE NATION; Is Steel’s Revival a Model for Detroit?” The New York Times, Week in Review Section (Sun., November 23, 2008): 3.
(Note: ellipses added.)
(Note: the online version of the commentary is dated November 22, 2008.)

In the Plex Helps Us Understand Entrepreneurs Page and Brin

Source of book image: http://mastersofmedia.hum.uva.nl/wp-content/uploads/2011/09/intheplex.jpg

In the Plex goes from detail to detail of the values, actions and quirks of a large cast of characters who have been involved in the Google story. I did not find the book as consistently gripping as Isaacson’s Steve Jobs biography.
But some of the details help suggest new hypotheses, or test old ones, on important issues of entrepreneurship and technological progress. Some parts are revealing of the goals and methods of Page and Brin.
During the next weeks I will quote some of the more interesting passages.

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

Hunter-Gatherers Had High Child Mortality and Died Before Age 40

(p. 31) Child mortality in foraging tribes was severe. A survey of 25 hunter-gatherer tribes in historical times from various continents revealed that, on average, 25 percent of children died before they were 1, and 37 percent died before they were 15. In one traditional hunter-gatherer tribe, child mortality was found to be 60 percent. Most historical tribes had a population growth rate of approximately zero. This stagnation is evident, says Robert Kelly in his survey of hunting-gathering peoples, because “when formerly mobile people become sedentary, the rate of population growth increases.” All things being equal, the constancy of farmed food breeds more people.
While many children died young, older hunter-gatherers did not have (p. 32) it much better. It was a tough life. Based on an analysis of bone stress and cuts, one archaeologist said the distribution of injuries on the bodies of Neanderthals was similar to that found on rodeo professionals–lots of head, trunk, and arm injuries like the ones you might get from close encounters with large, angry animals. There are no known remains of an early hominin who lived to be older than 40. Because extremely high child mortality rates depress average life expectancy, if the oldest outlier is only 40, the median age was almost certainly less than 20.

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