The Most Fertile Margins of the Economy Are Always in People’s Minds

(p. 151) The most fertile margins of the economy are always in people’s minds: thoughts and plans and projects yet unborn to business. The future emerges centrifugally and at first invisibly, on the fringes of existing companies and industries. The fastest-growing new firms often arise through defections of restive managers and engineers from large corporations or through the initiatives of (p. 152) immigrants and outcasts beyond the established circles of commerce. All programs that favor established companies, certified borrowers, immobile forms of pay, pensions, and perquisites, institutionally managed savings and wealth, against mobile capital, personal earnings, disposable savings, and small business borrowing, tend to thwart the turbulent, creative, and unpredictable processes of innovation and growth.

Source:
Gilder, George. Recapturing the Spirit of Enterprise: Updated for the 1990s. updated ed. New York: ICS Press, 1992.

Rhee Offers DC Teachers Higher Pay If They Give Up Tenure

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“Michelle Rhee, second from left, with faculty and staff members of Washington schools last month at an awards ceremony.” Source of the caption and photo: online version of the NYT article quoted and cited below.

(p. A1) WASHINGTON — Michelle Rhee, the hard-charging chancellor of the Washington public schools, thinks teacher tenure may be great for adults, those who go into teaching to get summer vacations and great health insurance, for instance. But it hurts children, she says, by making incompetent instructors harder to fire.

So Ms. Rhee has proposed spectacular raises of as much as $40,000, financed by private foundations, for teachers willing to give up tenure.

Policy makers and educators nationwide are watching to see what happens to Ms. Rhee’s bold proposal. The 4,000-member Washington Teachers’ Union has divided over whether to embrace it, with many union members calling tenure a crucial protection against arbitrary firing.
. . .
Ms. Rhee has not proposed abolishing tenure outright. Under her proposal, each teacher would choose between two compensation plans, one called green and the other red. Pay for teachers in the green plan would rise spectacularly, nearly doubling by 2010. But they would need to give up tenure for a year, after which they would need a principal’s recommendation or face dismissal.

For the full story, see:
SAM DILLON. “A School Chief Takes On Tenure, Stirring a Fight.” The New York Times (Thurs., November 13, 2008): A1 & A19.
(Note: ellipsis added.)

God’s “Perverse Appetite for Burning Down the Buildings Erected in His Honor”

(p. 22) Humans had long recognized that lighting had a pro-(p. 23)pensity for striking the tallest landmarks in its vicinity, and so the exaggerated height of church steeples–not to mention their flammable wooden construction–presented a puzzling but undeniable reality: the Almighty seemed to have a perverse appetite for burning down the buildings erected in His honor.

Source:
Johnson, Steven. The Invention of Air: A Story of Science, Faith, Revolution, and the Birth of America. New York: Riverhead Books, 2008.

Government Elevator Inspectors Vote with Their Feet for the Private Sector

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“The chief inspection official, Charles Miraglia, works on the side for at least one private elevator company.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A27) More than a dozen members of the New York Housing Authority’s elevator staff — including the official who directs all safety inspections — also work second jobs for private companies in the elevator industry, according to interviews and city records.

The employees, including three managers and nearly half the inspection staff, say their second jobs do not conflict with their duties maintaining the 3,300 elevators in the authority’s 2,600 buildings. Tenant complaints and inspection records indicate that the authority’s elevators are among the worst maintained in the city.
All of the elevator staff members with second jobs, including the chief inspection official, Charles Miraglia, have received a waiver from the city’s Conflicts of Interest Board, which ruled the second jobs did not present an ethical conflict. Each waiver was granted, the board said, based on the endorsement of the Housing Authority chairman, Tino Hernandez, and an assurance from the employee that the job would not interfere with his authority duties.
. . .
Criticism of the way the authority, the nation’s largest public housing landlord, maintains its elevators intensified recently, after a 5-year-old boy died trying to escape a stalled elevator in an authority-owned building in Williamsburg, Brooklyn, on Aug. 19. The Brooklyn district attorney’s office continues to investigate that accident.
. . .
Some of those who received waivers to work a second job said in interviews that they worked only part time, and always after hours or on weekends.
Scott T. Hayes, a longtime elevator consultant and inspector for building owners in the city, said 99 percent of all commercial and residential inspections take place during normal business hours, and almost never on weekends. “If a building super works till 4:30 or 5 o’clock and then they’re off, and you show up at 6 o’clock and say I want to inspect the elevator, he’ll throw you out of the building,” Mr. Hayes said. “So I don’t know what kind of work they could be doing. It doesn’t make sense.”
Mr. Miraglia earns $104,000 a year in his authority post and received his waiver to work outside jobs in August 2007, at a time when the authority’s difficulties in inspecting elevators were already apparent.

For the full story, see:
RAY RIVERA. “Fixing Elevators: For the City, and on the Side.” The New York Times (Tues., September 30, 2008): B1.
(Note: ellipses added.)

The Policy Agenda to Euthanize the Entrepreneur

(p. 151) The agenda is simple: the stealthy and unannounced euthanasia of the entrepreneur. It can be accomplished easily by following two seductive themes of policy: lowering tax and interest costs for large corporations and a few other favored institutions, while shifting the burden increasingly to individuals and families. By reducing corporate taxes, subsidizing corporate loans, sponsoring a wide range of favored borrowers, institutionalizing personal savings, and discreetly allowing taxes to rise on personal income, government can painlessly extinguish the disposable wealth of entrepreneurs.

Source:
Gilder, George. Recapturing the Spirit of Enterprise: Updated for the 1990s. updated ed. New York: ICS Press, 1992.

Environmentalists Abandon Science

In honor of “Earth Day,” some thoughtful comments by a co-founder of Greenpeace:

(p. A23) In 1971 an environmental and antiwar ethic was taking root in Canada, and I chose to participate. As I completed a Ph.D. in ecology, I combined my science background with the strong media skills of my colleagues. In keeping with our pacifist views, we started Greenpeace.
But I later learned that the environmental movement is not always guided by science. As we celebrate Earth Day today, this is a good lesson to keep in mind.
At first, many of the causes we championed, such as opposition to nuclear testing and protection of whales, stemmed from our scientific knowledge of nuclear physics and marine biology. But after six years as one of five directors of Greenpeace International, I observed that none of my fellow directors had any formal science education. They were either political activists or environmental entrepreneurs. Ultimately, a trend toward abandoning scientific objectivity in favor of political agendas forced me to leave Greenpeace in 1986.
The breaking point was a Greenpeace decision to support a world-wide ban on chlorine. Science shows that adding chlorine to drinking water was the biggest advance in the history of public health, virtually eradicating water-borne diseases such as cholera. And the majority of our pharmaceuticals are based on chlorine chemistry. Simply put, chlorine is essential for our health.
My former colleagues ignored science and supported the ban, forcing my departure. Despite science concluding no known health risks – and ample benefits – from chlorine in drinking water, Greenpeace and other environmental groups have opposed its use for more than 20 years.

For the full commentary, see:

PATRICK MOORE. “Why I Left Greenpeace.” The Wall Street Journal (Tues., April 22, 2008): A23.

An Intellectual Collaboration Beyond the Grave

There is something touchingly noble in this:

(p. 11) There is no direct evidence in the historical record, but it is entirely probable that it was the waterspout sighting that sent Priestley off on his quest to measure the temperature of the sea, trying to marshal supporting evidence for a passing conjecture his friend had made a decade before. Franklin had been dead for nearly four years, but their intellectual collaboration continued, undeterred by war, distance, even death.

Source:
Johnson, Steven. The Invention of Air: A Story of Science, Faith, Revolution, and the Birth of America. New York: Riverhead Books, 2008.

Houston Rejects Irrational Recycling Fad

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

(p. A13) HOUSTON — While most large American cities have started ambitious recycling programs that have sharply reduced the amount of trash bound for landfills, Houston has not.
. . .
Landfill costs here are cheap. The city’s sprawling, no-zoning layout makes collection expensive, and there is little public support for the kind of effort it takes to sort glass, paper and plastics. And there appears to be even less for placing fees on excess trash.

“We have an independent streak that rebels against mandates or anything that seems trendy or hyped up,” said Mayor Bill White, . . .

For the full story, see:
ADAM B. ELLICK. “Houston Resists Recycling, and Independent Streak Is Cited.” The Wall Street Journal (Tues., July 29, 2008): A13.
(Note: ellipses added.)

Why Disney Was a Better Artist than Picasso

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Source of book image: http://ebooks-imgs.connect.com/ebooks/product/400/000/000/000/000/035/806/400000000000000035806_s4.jpg

(p. 275) The popularity of the creative arts, and the influence they exert, will depend ultimately on their quality and allure, on the delight and excitement they generate, and on demotic choices. Picasso set his faith against nature, and burrowed within himself. Disney worked with nature, stylizing it, anthropomorphizing it, and surrealizing it, but ultimately reinforcing it. That is why his ideas form so many powerful palimpsests in the visual vocabulary of the world in the early twenty-first century, and will continue to shine through, while the ideas of Picasso, powerful though they were for much of the twentieth century, will gradually fade and seem outmoded, as representational art returns to favor. In the end nature is the strongest force of all.

Source:
Johnson, Paul M. Creators: From Chaucer and Durer to Picasso and Disney. New York: HarperCollins, 2006.
(Note: I am grateful to John Devereux for telling me about Paul Johnson’s views on Picasso and Disney.)

Economists Find TV Improved Children’s Cognitive Ability

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

(p. A1) It didn’t take long after America started tuning in to television that people started to worry about what it was doing to children. “When it offers a daily diet of Western pictures and vaudeville by the hour, television often seems destined to entertain the child into a state of mental paralysis,” wrote The New York Times in 1949.

A generation later, the Scholastic Aptitude Test scores of college-bound teenagers had fallen significantly. A 1977 panel appointed by the College Entrance Examination Board suggested television bore some blame for the drop. Indeed, the decline began in the mid-1960s, just as the first students heavily exposed to TV took their SATs.

But University of Chicago Graduate School of Business economists Matthew Gentzkow and Jesse Shapiro aren’t sure that TV has been all that bad for kids. In a paper published in the Quarterly Journal of Economics this year, they presented a series of analyses that showed that the advent of television might actually have had a positive effect on children’s cognitive ability.

. . .
(p. A8) The economists . . . looked at results of a survey of 800 U.S. schools that administered tests to 346,662 sixth-grade, ninth-grade and 12th-grade students in 1965. Their finding: Adjusting for differences in household income, parents’ educational background and other factors, children who lived in cities that gave them more exposure to television in early childhood performed better on the tests than those with less exposure.

The economists found that television was especially positive for children in households where English wasn’t the primary language and parents’ education level was lower. “We don’t exactly know why that is, but a plausible interpretation is that the effect of television on cognitive development depends on what other kinds of activity television is substituting for,” says Mr. Shapiro, 28.

For the full story, see:
JUSTIN LAHART. “A New View On TV; Economists Probe the Data on Television Watching And Find It’s Not All Bad; Better Test Scores?” The Wall Street Journal (Sat., SEPTEMBER 6, 2008): A1 & A8.
(Note: ellipses added.)
If you are interesting in further reading that is in the same vein as the article above, consult:
Johnson, Steven. Everything Bad Is Good for You. New York: Riverhead Trade, 2006.

Coffee Facilitated the Age of Enlightenment

(p. 54) Coffee is a stimulant that has been clinically proven to improve cognitive function—particularly for memory-related tasks—during the first cup or two. Increase the amount of “smart” drugs flowing through individual brains, and the collective intelligence of the culture will become smarter, if enough people get hooked. Create enough caffeine-abusers in your society and you’ll be statistically more likely to launch an Age of Reason. That may itself sound like the self-justifying fantasy of a longtime coffee-drinker, but to connect coffee plausibly to the Age of Enlightenment you have to consider the context of recreational drug abuse in seventeenth-century Europe. Coffee-drinkers are not necessarily smarter, in the long run, than those who abstain from caffeine. (Even if they are smarter for that first cup.) But when coffee originally arrived as a mass phenomenon in the mid-1600s,it was not seducing a culture of perfect sobriety. It was replacing alcohol as the daytime drug of choice. The historian Tom Standage writes in his ingenious A History of the World in Six Glasses:

The impact of the introduction of coffee into Europe during the seventeenth century was particularly noticeable since the most common beverages of the time, even at breakfast, were weak “small beer” and wine. . . . Those who drank coffee instead of alcohol began the day alert and stimulated, rather than relaxed and mildly inebriated, and the quality and quantity of work improved. . . . Western Europe began to emerge from an alcoholic haze that had lasted for centuries.

Source:
Johnson, Steven. The Invention of Air: A Story of Science, Faith, Revolution, and the Birth of America. New York: Riverhead Books, 2008.
(Note: ellipses in original.)