October 2013 – Page 3 – artdiamondblog.com

Innovative Entrepreneurs More Likely to Have Engaged in Illicit Activities as Teens

(p. C4) What does it take to be a successful entrepreneur? The signs are obvious in future moguls’ teenage years: brains, confidence–and illicit activities.
Those are the surprising findings of a new working paper by economists at the University of California at Berkeley and the London School of Economics. The researchers argue that merely being self-employed isn’t a particularly good indicator of entrepreneurship, in the sense of taking big risks and mobilizing capital to create new goods and services.
. . .
. . . the professors sorted the self-employed into those who were incorporated and those who were not, with the researchers regarding the former as the genuine entrepreneurs.
. . .
Despite . . . dubious youthful pursuits, the incorporated tended to come from stable, well-educated families with high incomes in 1979. These entrepreneurs were much more likely to be white, male and well-educated than were salaried workers or the unincorporated self-employed.

For the full story, see:
DANIEL AKST. “The Bad-Boy Entrepreneur.” The Wall Street Journal (Sat., August 17, 2013): C4.
(Note: ellipses added.)
(Note: the online version of the review has the date August 16, 2013.)

The working paper discussed is:
Levine, Ross, and Yona Rubinstein. “Smart and Illicit: Who Becomes an Entrepreneur and Does It Pay?” NBER Working Paper # 19276, August 2013.

Gene-Altered Mice Live 20% Longer

“NIH researchers found that lowering the expression of a single gene helped extend the life of mice by about 20%. A mouse with a manipulated gene on the right and an unchanged mouse on the left.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A3) By reducing the activity of one type of gene, scientists said they increased the average life span of mice by about 20%, a feat that in human terms is akin to extending life by about 15 years.

Moreover, the researchers at the National Institutes of Health found that memory, cognition and some other important traits were better preserved in the mice as they aged, compared with a control group of mice that had normal levels of a protein put out by the gene.
The findings, published Thursday [August 29, 2013] in the journal Cell Reports, strengthen the case that the gene, called mTOR, is a major regulator of the aging process.
. . .
The results . . . build on a growing body of research challenging the belief that aging is an intractable biological process, prompting scientists to think of slowing aging as a possible way to prevent disease.
“What we need right now is for scientists and the public to wake up to the concept that you can slow aging,” said Brian Kennedy, president of the Buck Institute for Aging Research in Novato, Calif., who wasn’t involved in the new study. “If you do, you prevent many of the diseases that we’re so scared of and that are associated with aging.” They include cardiovascular disease, cancer and Alzheimer’s disease.

For the full story, see:
RON WINSLOW. “Altered Gene Points Toward Longer Life Spans; Successful Experiment With Mice May One Day Play Role in Slowing Human Aging; Side Effects Could Be Problematic.” The Wall Street Journal (Fri, August 30, 2013): A3.
(Note: ellipsis, and bracketed date, added.)
(Note: the online version of the story has the date August 29, 2013, and has the title “Genetic Manipulation Extends Life of Mice 20%; But Translating Findings to Humans Faces Many Hurdles.”)

The scientific article being discussed above, is:
Wu, J. Julie, Jie Liu, Edmund B Chen, Jennifer J Wang, Liu Cao, Nisha Narayan, Marie M Fergusson, Ilsa I Rovira, Michele Allen, Danielle A Springer, Cory U Lago, Shuling Zhang, Wendy DuBois, Theresa Ward, Rafael deCabo, Oksana Gavrilova, Beverly Mock, and Toren Finkel. “Increased Mammalian Lifespan and a Segmental and Tissue-Specific Slowing of Aging after Genetic Reduction of mTor Expression.” Cell Reports 4, no. 5 (Aug. 29, 2013): 913-20.

Rising Google Stock Prices Led Googlers to Be Wary of Innovation

(p. 156) . . . Googlers were affected by stock ownership. (They were, after all, human.) Bo Cowgill, a Google statistician, did a series of studies of his colleagues’ behavior, based on their participation in a “prediction market,” a setup that allowed them to make bets on the success of internal projects. He discovered that “daily stock price movements affect the mood, effort level and decision-making of employees.” As you’d expect, increases in stock performance made people happier and more optimistic– but they also led them to regard innovative ideas more warily, indicating that as Googlers became richer, they became more conservative. That was exactly the downside of the IPO that the founders had dreaded.

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

Immigration to the U.S. Is the Story of Hope, Achievement, Youth, Freedom and Creation

Source of book image: http://ecx.images-amazon.com/images/I/51VTjY0xVbL.jpg

(p. C6) In his new book, “To America With Love,” the British critic A. A. Gill attempts to make up for his fellow Britons’ grouchiness, sending the United States a frilly, funny valentine.
. . .
Perhaps the most provocative thing in “To America With Love” is Mr. Gill’s European take on our history of immigration. He argues that America over the years has been a magnet, drawing “the young and the strong from Europe; the adventurous, the clever, and the skilled.”
In the United States, “immigration is the story of hope and achievement, of youth, of freedom, of creation,” he writes. “But all entrances on one stage are exits elsewhere. In Europe it is loss. Every one a farewell, a failure, a sadness, a defeat.” Between 1800 and 1914, he says, “more than 30 million Europeans immigrated to the New World: one in four Irishmen, one in five Swedes, three million Germans, five million Poles, four million Italians. There is not a country, a community, a village or household that wasn’t affected by the lure of the West.”
As Mr. Gill sees it, much of the bitterness that animates trans-Atlantic relationships (Europeans, he says, patronize America “for being a big, dumb, fat, belligerent child”) can be traced back to this dynamic. “The belittling, the discounting, the mocking of the States is not about them at all,” he writes. “It’s about us, back here in the ancient, classical, civilized continent.”
Europe’s view of America, he contends, “has been formed and deformed by the truth that we are the ones who stayed behind, for all those good, bad and lazy reasons: because of caution, for comfort, for conformity and obligation, but mostly, I suspect, because of habit and fear. We didn’t take the risky road.”

For the full review, see:
MICHIKO KAKUTANI. “BOOKS OF THE TIMES; A Rebellious Trans-Atlantic Infatuation: Take That, Mrs. Trollope!” The New York Times (Thurs., August 22, 2013): C6.
(Note: ellipsis added.)
(Note: the online version of the review has the date August 21, 2013.)

The book under review is:
Gill, A.A. To America with Love. Reprint ed. New York: Simon & Schuster, 2013.

“A. A. Gill” Source of caption and photo: online version of the NYT review quoted and cited above.

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.)