artdiamondblog.com – Page 410 – Art Diamond's web log

Profits Allow You to Make Great Products, But the Products, Not the Profits, Are the Motivation

The following passage is Steve Jobs speaking, as quoted by Walter Isaacson.

(p. 567) My passion has been to build an enduring company where people were motivated to make great products. Everything else was secondary. Sure, it was great to make a profit, because that was what allowed you to make great products. But the products, not the profits, were the motivation. Sculley flipped these priorities to where the goal was to make money. It’s a subtle difference, but it ends up meaning everything: the people you hire, who gets promoted, what you discuss in meetings.

Source:
Isaacson, Walter. Steve Jobs. New York: Simon & Schuster, 2011.

Organic Food May Be Less Healthy than Non-Organic Food

Source of book image: http://www.leckeragency.com/sites/default/files/books/Schwarcz,%20Joe%20-%20The%20Right%20Chemistry%20Cover.jpeg

(p. D7) . . . , when did “chemical” become a dirty word? That’s a question raised by one of Canada’s brightest scientific minds: Joe Schwarcz, director of the Office for Science and Society at McGill University in Montreal. Dr. Schwarcz, who has received high honors from Canadian and American scientific societies, is the author of several best-selling books that attempt to set the record straight on a host of issues that commonly concern health-conscious people.

I’ve read two of his books, “Science, Sense and Nonsense” (published in 2009) and “The Right Chemistry” (2012), and recently attended a symposium on the science of food that Dr. Schwarcz organized at McGill.
What follows are tips from his books and the symposium that can help you make wiser choices about what does, and does not, pass your lips in 2013.
. . .
ORGANIC OR NOT? Wherever I shop for food these days, I find an ever-widening array of food products labeled “organic” and “natural.” But are consumers getting the health benefits they pay a premium for?
Until the 20th century, Dr. Schwarcz wrote, all farming was “organic,” with manure and compost used as fertilizer and “natural” compounds of arsenic, mercury and lead used as pesticides.
Might manure used today on organic farms contain disease-causing micro-organisms? Might organic produce unprotected by insecticides harbor cancer-causing molds? It’s a possibility, Dr. Schwarcz said. But consumers aren’t looking beyond the organic sales pitch.
Also questionable is whether organic foods, which are certainly kinder to the environment, are more nutritious. Though some may contain slightly higher levels of essential micronutrients, like vitamin C, the difference between them and conventionally grown crops may depend more on where they are produced than how.
A further concern: Organic producers disavow genetic modification, which can be used to improve a crop’s nutritional content, enhance resistance to pests and diminish its need for water. A genetically modified tomato developed at the University of Exeter, for example, contains nearly 80 times the antioxidants of conventional tomatoes. Healthier, yes — but it can’t be called organic.

For the full story, see:
JANE E. BRODY. “PERSONAL HEALTH; What You Think You Know (but Don’t) About Wise Eating.” The New York Times (Tues., January 1, 2013): D7.
(Note: ellipses added; bold in original.)
(Note: the online version of the article has the date DECEMBER 31, 2012.)

The Schwarcz books mentioned above, are:
Schwarcz, Joe. The Right Chemistry: 108 Enlightening, Nutritious, Health-Conscious and Occasionally Bizarre Inquiries into the Science of Daily Life. Toronto, Ontario: Doubleday Canada, 2012.
Schwarcz, Joe. Science, Sense & Nonsense. Toronto, Ontario: Doubleday Canada, 2009.

Google’s Eric Schmidt Saw that “Regulation Prohibits Real Innovation”

(p. A13) Eric Schmidt, executive chairman of Google, gave a remarkable interview this month to The Washington Post. So remarkable that Post editors preceded the transcript with this disclosure: “He had just come from the dentist. And he had a toothache.”
Perhaps it was the Novocain talking, but Mr. Schmidt has done us a service. He said in public what most technologists will say only in private. Whatever caused him to speak forthrightly about the disconnects between Silicon Valley and Washington, his comments deserve wider attention.
Mr. Schmidt had just given his first congressional testimony. He was called before the Senate Judiciary Antitrust Subcommittee to answer allegations that Google is a monopolist, a charge the Federal Trade Commission is also investigating.
“So we get hauled in front of the Congress for developing a product that’s free, that serves a billion people. OK? I mean, I don’t know how to say it any clearer,” Mr. Schmidt told the Post. “It’s not like we raised prices. We could lower prices from free to . . . lower than free? You see what I’m saying?”
. . .
“Regulation prohibits real innovation, because the regulation essentially defines a path to follow,” Mr. Schmidt said. This “by definition has a bias to the current outcome, because it’s a path for the current outcome.”
. . .
Washington is always slow to recognize technological change, which is why in their time IBM and Microsoft were also investigated after competing technologies had emerged.
Mr. Schmidt recounted a dinner in 1995 featuring a talk by Andy Grove, a founder of Intel: “He says, ‘This is easy to understand. High tech runs three times faster than normal businesses. And the government runs three times slower than normal businesses. So we have a nine-times gap.’ All of my experiences are consistent with Andy Grove’s observation.”
Mr. Schmidt explained there was only one way to deal with this nine-times gap, which this column hereby christens “Grove’s Law of Government.” That is “to make sure that the government does not get in the way and slow things down.”
Mr. Schmidt recounted that when Silicon Valley first started playing a large role in the economy in the 1990s, “all of a sudden the politicians showed up. We thought the politicians showed up because they loved us. It’s fair to say they loved us for our money.”
He contrasted innovation in Silicon Valley with innovation in Washington. “Now there are startups in Washington,” he said, “founded by people who were policy makers. . . . They’re very clever people, and they’ve figured out a way in regulation to discriminate, to find a new satellite spectrum or a new frequency or whatever. They immediately hired a whole bunch of lobbyists. They raised some money to do that. And they’re trying to innovate through regulation. So that’s what passes for innovation in Washington.”

For the full commentary, see:
L. GORDON CROVITZ. “INFORMATION AGE; Google Speaks Truth to Power; About the growing regulatory state, even Google’s Eric Schmidt–a big supporter of the Obama administration–now feels the need to tell it like it is.” The Wall Street Journal (Mon., October 24, 2011): A13.
(Note: ellipses between paragraphs added; ellipsis internal to Schmidt quote, in original WSJ commentary.)

The original Eric Schmidt interview with the Washington Post, can be read at:
http://articles.washingtonpost.com/2011-10-01/national/35278181_1_google-chairman-eric-schmidt-regulation-disconnects

Greek Government Buries Olive Oil Entrepreneur in Red Tape

“Fotis Antonopoulos’s struggles to start OliveShop.com have made him a reluctant emblem of thwarted Greek entrepreneurship.” Source of caption and photo: online version of the NYT article quoted and cited below.

Vassilis Korkidis, who is quoted below, is (p. A3) “the president of the National Confederation of Hellenic Commerce, a trade association in Athens.”

(p. A1) ATHENS — It was about a year ago that Fotis I. Antonopoulos, a successful Web program designer here, decided he wanted to open an e-business selling olive products.

Luckily, he already had a day job.
It took him 10 months — crisscrossing the city to collect dozens of forms and stamps of approval, including proof that he was up to date on his pension contributions — before he could get started. But even that was not enough. In perhaps the strangest twist of all, his board members were required by the Health Department to submit lung X-rays — and stool samples — since this was a food company.
. . .
With Greece’s economy entering its fourth year of recession, its entrepreneurs are eager to reverse a frightening tide. Last year, at least 68,000 small and medium-size businesses closed in Greece; nearly 135,000 jobs associated with them vanished. Predictions for 2012 are also bleak.
But despite the government’s repeated promises to improve things, the climate for doing business here remains abysmal. In a recent report titled “Greece 10 Years Ahead,” McKinsey & Company described Greece’s economy as “chronically suffering from unfavorable conditions for business.” Start-ups faced immense amounts of red tape, complex administrative and tax systems and procedural disincentives, it said.
. . .
(p. A3) Part of Mr. Antonopoulos’s problem, Mr. Korkidis ventured, was his unwillingness to pay what is routinely referred to here as the “speed tax” — bribes to move things along.
Nor is Mr. Korkidis much of a fan of recent government efforts to improve things. He pointed to a pamphlet produced by the Ministry of Development, which explained a new “one-stop shop” program for new businesses.
“This doesn’t work,” he said. “You have to collect 10 papers first — and then it is one-stop shopping. Ridiculous.”
At 36, Mr. Antonopoulos is an aging computer whiz kid with long hair and an easy smile.
. . .
The worst moment, he said, was when representatives from two agencies came to inspect the shop and disagreed about the legality of a circular staircase. They walked out telling him that he “would have to figure it out.”
“At that point, we actually thought about just going to the U.K. with this,” he said. “One of the inspectors knew about new legislation. The other didn’t. And they just refused to come up with a solution.”
At one point, the company got a huge order from Denmark, he said. But the paperwork for what amounted to a wholesale transaction was so onerous that they decided not to even try to fill the order.

For the full story, see:
SUZANNE DALEY. “A Tale of Greek Enterprise and Olive Oil, Smothered in Red Tape.” The New York Times (Mon., March 19, 2012): A1 & A3.
(Note: ellipses added.)
(Note: the online version of the story has the date March 18, 2012.)

Steve Jobs’ “Nasty Edge” Helped Him Create an Apple “Crammed with A Players”

(p. 565) . . . I think . . . [Jobs] actually could have controlled himself, if he had wanted. When he hurt people, it was not because he was lacking in emotional awareness. Quite the contrary: He could size people up, understand their inner thoughts, and know how to relate to them, cajole them, or hurt them at will.
The nasty edge to his personality was not necessary. It hindered him more than it helped him. But it did, at times, serve a purpose. Polite and velvety leaders, who take care to avoid bruising others, are generally not as effective at forcing change. Dozens of the colleagues whom Jobs most abused ended their litany of horror stories by saying that he got them to do things they never dreamed possible. And he created a corporation crammed with A players.

Source:
Isaacson, Walter. Steve Jobs. New York: Simon & Schuster, 2011.
(Note: ellipses and bracketed “Jobs” added.)

Yang Documents How Mao Starved the Proletariat

Source of book image: http://img1.imagesbn.com/p/9780374277932_p0_v1_s260x420.JPG

(p. C12) Yang Jisheng’s “Tombstone: The Great Chinese Famine, 1958-1962” exemplifies E.H. Carr’s famous dictum: “Study the historian before you study the facts.” Mr. Yang is not the first historian to exhume the darkest crime of the political party that still rules China but the first Chinese journalist and longtime Party member to do so. He uses the Party’s own historical records and the perpetrators’ own words to craft his devastatingly detailed indictment.

For the full review essay, see:
Sylvia Nasar (author of passage quoted above, one of 50 contributors to whole article). “Twelve Months of Reading; We asked 50 of our friends to tell us what books they enjoyed in 2012–from Judd Apatow’s big plans to Bruce Wagner’s addictions. See pages C10 and C11 for the Journal’s own Top Ten lists.” The Wall Street Journal (Sat., December 15, 2012): passim (Nasar’s contribution is on p. C12).
(Note: the online version of the review essay has the date December 14, 2012.)

The book under review, is:
Yang, Jisheng. Tombstone: The Great Chinese Famine, 1958-1962. New York: Farrar, Straus and Giroux, 2012.

Green Threats to Restrict Coal Creates Incentive to Extract More Coal Now

(Wang, p. 1146) The last chapter of the book advances the supply-side analysis and presents the “Green Paradox,” that “(t)he mere announcement of intentions to fight global warming made the world warm even faster” ([Sinn, p. ] 189). The key insight is that demand-reduction measures affect carbon supply through pressure on future prices. Since the existing “green” policies almost always involve increasing stringency and widening coverage over time, the increasing downward price pressure therefore induces resource owners to expedite extraction and thereby exacerbates the climate problem.

For the full review, see:
Wang, Tao. “The Green Paradox: A Supply-Side Approach to Global Warming.” Journal of Economic Literature 50, no. 4 (Dec. 2012): 1145-46.
(Note: bracketed information added.)

The book under review is:
Sinn, Hans-Werner. The Green Paradox: A Supply-Side Approach to Global Warming. Cambridge and London: MIT Press, 2012.

Entrepreneur Mackey Says Whole Foods Drops Prices as Larger Size Creates Economies of Scale

“John Mackey.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 16) In your new book, “Conscious Capitalism,” you write that Whole Foods sees its customers as its “most important stakeholders” and that the company is obsessed with their happiness. The biggest complaint I hear about Whole Foods is how expensive it is. Why not drop prices to make your customers happier?
People always complain about prices being too high. Whole Foods prices have dropped every year as we get to be larger and we have economies of scale. Also, people are not historically well informed about food prices. We’re only spending about 7 percent of our disposable personal income on food. Fifty years ago, it was nearly 16 percent.
. . .
In 2009, some Whole Foods customers organized boycotts after you wrote an op-ed in The Wall Street Journal expressing opposition to Obama’s health care proposals. Do you wish you hadn’t written it?
No, I don’t. I regret that a lot of people didn’t actually read it and it got taken out of context. President Obama asked for ideas about health care reform, and I put my ideas out there. Whole Foods has a good health care plan. It’s not a solution to America’s health care problems, but it’s part of the solution.
So did you vote for Romney?
I did.
I imagine a certain percentage of Whole Foods customers will also boycott because of this.
I don’t know what to say except that I’m a capitalist, first. There are many things I don’t like about Romney, but more things I don’t like about Obama. This is America, and people disagree on things.

For the full interview, see:
Andrew Goldman, Interviewer. “TALK; The Kale King.” The New York Times Magazine (Sun., January 20, 2013): 16.
(Note: ellipsis added; bold in original, indicating interviewer questions.)
(Note: the online version of the interview has the date January 18, 2013, and has the title “TALK; John Mackey, the Kale King.”)

Mackey’s book is:
Mackey, John, and Rajendra Sisodia. Conscious Capitalism: Liberating the Heroic Spirit of Business. Boston, MA: Harvard Business Review Press, 2013.

Admiring Jobs’ New Products, Gates Wistfully Wondered If “Maybe I Should Have Stayed in That Game”

(p. 553) Bill Gates had never lost his fascination with Jobs. In the spring of 2011 I was at a dinner with him in Washington, where he had come to discuss his foundation’s global health endeavors. He expressed amazement at the success of the iPad and how Jobs, even while sick, was focusing on ways to improve it. “Here I am, merely saving the world from malaria and that sort of thing, and Steve is still coming up with amazing new products,” he said wistfully. “Maybe I should have stayed in that game.” He smiled to make sure that I knew he was joking, or at least half joking.

Source:
Isaacson, Walter. Steve Jobs. New York: Simon & Schuster, 2011.

Darwin Shared His Thought Processes Without Condescension

“SAGE OF AGES; Portrait of Charles Darwin in 1881, by Julia Margaret Cameron.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. C14) . . . Mr. Johnson observes:

No scientific innovator has ever taken more trouble to smooth the way for lay readers without descending into vulgarity. What is almost miraculous about the book is Darwin’s generosity in sharing his thought processes, his lack of condescension. There is no talking down, but no hauteur, either. It is a gentlemanly book.

In both style and substance, this passage is classic Paul Johnson.
. . .
What makes Darwin good, in the biographer’s estimation, is the scientist’s democratic dissemination of knowledge. Darwin triumphed with “The Origin of Species,” Mr. Johnson contends, not only because of his ability to portray the theory of evolution as the inescapable outcome of his decades of study and the work of fellow scientists, whom he was careful to praise, but because he was acutely aware that he had to present his notions of natural selection and survival of the fittest so as not to stir up public controversy. To an extraordinary degree, Darwin deflected attacks by couching his discoveries in terms of the plants he liked to examine and cultivate. He had relatively little to say about human evolution.

For the full review, see:
CARL ROLLYSON. “Studies of the Moral Animal.” The Wall Street Journal (Sat., December 15, 2012): C14.
(Note: ellipses added.)
(Note: the online version of the review essay has the date December 14, 2012.)

The book under review is:
Johnson, Paul M. Darwin: Portrait of a Genius. New York: Viking Adult, 2012.

Fossil Fuels Are Making the Planet Greener

(p. C4) The latest and most detailed satellite data, which is yet to be published but was summarized in an online lecture last July by Ranga Myneni of Boston University, confirms that the greening of the Earth has now been going on for 30 years. Between 1982 and 2011, 20.5% of the world’s vegetated area got greener, while just 3% grew browner; the rest showed no change.

What explains this trend? Man-made nitrogen fertilizer causes crops to grow faster, but it is having little effect on forests. There are essentially two possibilities: climate and carbon dioxide itself. Warmer, wetter weather should cause more vegetation to grow. But even without warming, an increase in carbon dioxide should itself accelerate growth rates of plants. CO2 is a scarce resource that plants have trouble scavenging from the air, and plants grow faster with higher levels of CO2 to inhale.
Dr. Myneni reckons that it is now possible to distinguish between these two effects in the satellite data, and he concludes that 50% is due to “relaxation of climate constraints,” i.e., warming or rainfall, and roughly 50% is due to carbon dioxide fertilization itself. In practice, the two interact. A series of experiments has found that plants tolerate heat better when CO2 levels are higher.
The inescapable if unfashionable conclusion is that the human use of fossil fuels has been causing the greening of the planet in three separate ways: first, by displacing firewood as a fuel; second, by warming the climate; and third, by raising carbon dioxide levels, which raise plant growth rates.

For the full commentary, see:
MATT RIDLEY. “MIND & MATTER; “How Fossil Fuels Have Greened the Planet.” The Wall Street Journal (Sat., January 5, 2013): C4.
(Note: the online version of the commentary has the date January 4, 2013.)