June 2016 – Page 2 – artdiamondblog.com

Taxpayer Funded Stadiums Fail to Bring Promised Economic Development

(p. C14) The Twin Cities of Minneapolis and St. Paul have been an epicenter of the U.S. stadium-and-arena boom, rolling out five major sports facilities since 1990 that together cost more than $2 billion.
Now, the neighboring cities are readying for a sixth: a 20,000-seat, $150 million Major League Soccer stadium to be built by 2018 in St. Paul about halfway between the two downtowns.
. . .
But taken with the other facilities that have a combined seat count of nearly 200,000, this latest project illustrates how the Twin Cities are an acute example of the rapid increase in stadiums and arenas in U.S. cities. These developments come despite a growing chorus of warnings from economists who say the stadiums are almost always poor drivers of economic development. Even when these facilities do spur nearby investment, economists and critics say the cost to the public is typically far higher than with traditional economic-development programs.
“I’ve lived in the Twin Cities since 1976, and have seen this proliferation of new sports stadia,” said Jane Prince, a St. Paul city council member who voted against the soccer stadium aid package. “I just don’t see the promised economic development occurring in conjunction with all of these.”
. . .
“There’s not one group that makes these decisions–it was two city governments, it was a legislature, it was sports owners,” said R.T. Rybak, the mayor of Minneapolis from 2002 to 2014. Mr. Rybak said he had long been critical of sports subsidies but he grudgingly helped craft the aid package for the Vikings stadium after the team was poised to move elsewhere.
That deal, and the others, he said, were “also driven by the increasingly crazy politics of sports economics,” in which teams want their own facilities, custom designed for their ideal crowd sizes.

For the full story, see:
ELIOT BROWN. “Twin Cities to Get Yet Another Stadium.” The Wall Street Journal (Weds., March 23, 2016): C14.
(Note: ellipses added.)
(Note: the online version of the story has the date March 22, 2016, and has the title “In Twin Cities, How Many Stadiums Are Enough?”)

How Wal-Mart Benefits Small Entrepreneurs

(p. B1) At the headquarters of Wal-Mart Stores Inc. here, dozens of its buyers held half-hour meetings earlier this month with hundreds of prospective suppliers touting products–from frozen deep-fried turkeys to toddler dirt bikes–all eager for a chance to land on the shelves of the world’s largest retailer.
Scott Bonge, a Little Rock, Ark., investor and father of three, was trying to interest Wal-Mart in his plastic shaving stencil, the GoateeSaver. With sales of shaving gear falling as more men embrace scruff and beards, Wal-Mart is looking for different shaving paraphernalia to sell.
The product “came out of my own need for something to keep my goatee looking even back in college,” Mr. Bonge told Jason Kloster, senior buyer for personal care at Wal-Mart.
Mr. Kloster then drilled down into how many American men have goatees. Without an exact answer, Mr. Bonge noted that they are popular in the South among men over 25.
“I’ve been in the category for four years and I’ve never heard of your brand,” Mr. Kloster said. “Your biggest challenge is awareness.” Mr. Kloster suggested selling the device on Walmart.com to test demand before offering it in stores.
The daylong event provides a window into the relationship between Wal-Mart and its suppliers as well as the influence retailers have both on selecting the products for their shelves and how those products appear.
These meetings serve a clear purpose for prospective suppliers–a shot at vaulting into retail’s big leagues.

For the full story, see:
SARAH NASSAUER. “Inside Wal-Mart’s ‘Shark Tank’.” The Wall Street Journal (Thurs., July 23, 2015): B1 & B7.
(Note: the online version of the story has the date July 22, 2015 and has the title “Pitching Products to Wal-Mart, in 30 Minutes.”)

Some “Rescue” Groups “Kidnap and Mutilate” Street Dogs

(p. D1) MONTAGUE, Mass. — Think of all the dogs out there: labradors and poodles and labradoodles; huskies and westies and dogues de Bordeaux; pit bulls and spaniels and lovable mutts that go to doggy day care.
Add them up, all the pet dogs on the planet, and you get about 250 million.
But there are about a billion dogs on Earth, according to some estimates. The other 750 million don’t have flea collars. And they certainly don’t have humans who take them for walks and pick up their feces. They are called village dogs, street dogs and free-breeding dogs, among other things, and they haunt the garbage dumps and neighborhoods of most of the world.
In their new book, “What Is a Dog?,” Raymond and Lorna Coppinger argue that if you really want to understand the nature of dogs, you need to know these other animals. The vast majority are not strays or lost pets, the Coppingers say, but rather superbly adapted scavengers — the closest living things to the dogs that first emerged thousands of years ago.
. . .
(p. D6) In 2001, their book “Dogs: A Startling New Understanding of Canine Origin, Behavior & Evolution” challenged the way scientists thought about the beginnings of dogs.
They argued against the widely held view that one day a hunter-gatherer grabbed a wolf pup from a den and started a breeding program. Instead, they argued, dogs domesticated themselves.
Some wild canines started hanging around humans for their leftovers and gradually evolved into scavengers dependent on humans. Not everyone in canine science shares that view today, but many researchers think it is the most plausible route to domestication.
. . .
Although the Coppingers recognize the social cost of animals that are unvaccinated and running free, they argue that killing the dogs, as some countries do during rabies epidemics, does not help. It’s impossible to kill them all, and because they breed rapidly, the population quickly rebounds.
Nor do the Coppingers have any sympathy for rescue groups that, as Dr. Coppinger puts it, “kidnap and mutilate” street dogs from the Caribbean and elsewhere to bring them to American shelters to live as pets, “where they are made totally dependent and entirely restricted.” This is supposed to benefit the dogs, but Dr. Coppinger argues that they are taken from a rich social environment, with many dogs, to lives of relative isolation.

For the full story, see:
JAMES GORMAN. “Don’t Call them Strays.” The New York Times (Tues., APRIL 19, 2016): D1 & D6.
(Note: the online version of the story has the date APRIL 18, 2016, and has the title “The World Is Full of Dogs Without Collars.”)

The dog books mentioned above, are:
Coppinger, Raymond, and Lorna Coppinger. What Is a Dog? Chicago: University of Chicago Press, 2016.
Coppinger, Raymond, and Lorna Coppinger. Dogs: A Startling New Understanding of Canine Origin, Behavior & Evolution. New York: Scribner, 2001.

Uber to Politicians: “Catch-Me-If-You-Can”

(p. B1) Last week, the home-sharing service Airbnb had more than 40,000 listings in Paris, making the French capital the company’s most popular destination for travelers looking to rent a room or an entire apartment. Paris officials applaud it for bringing innovation to the city’s hotel industry.
The ride-hailing company Uber had a much more difficult week.
Thousands of Parisian taxi drivers took to the streets to protest UberPop, the company’s low-cost service that’s similar to UberX in the United States. French politicians denounced the company for defying the country’s transport laws. And two of Uber’s top executives in France were detained by the police and accused of operating an illegal taxi business. By Friday [July 3, 2015], the company had suspended UberPop across the country.
Uber and Airbnb are similar in many ways. Both born in San Francisco, the companies are now two of the largest entrants in the so-called on-demand economy, in which services are available at the touch of a smartphone button. They are both flush with investor money — with valuations in the tens of billions of dollars — and are using the cash to expand rapidly around the world.
But the starkly different paths in France for these companies lay bare contrasting strategies as they encounter the world of global regulators. Since it began in 2009, Uber has entered city after city, in Europe and elsewhere, with a largely catch-me-if-you-can attitude. Airbnb, which offers more rooms than traditional hotel groups like Hilton and InterContinental, has instead tilted toward courting local politicians in many of its most popular markets.
So far, Uber’s approach has not significantly slowed it down. The company operates in more than 300 cities in almost 60 countries and is valued by investors at more than $40 billion.

For the full story, see:
MARK SCOTT. “The Bumps in Uber’s Fast Lane.” The New York Times (Weds., JULY 8, 2015): B1-B2.
(Note: bracketed date added.)
(Note: the online version of the story has the date JULY 7, 2015, and has the title “What Uber Can Learn From Airbnb’s Global Expansion.”)

Government Elephant Ivory Bans Endanger Rare Helmeted Hornbills

Another unintended consequence of well-intentioned government policy.

(p. A3) BEIJING — Even as China, the world’s leading market for illegal ivory, promises to help safeguard elephants in Africa, a rare bird in Southeast Asia is in danger because its skull is being sold in China as an ivory alternative, conservationists say.
. . .
More than 2,000 helmeted hornbill skulls, or casques, were seized by the authorities in Indonesia and China in the past five years, according to a new report by the Environmental Investigation Agency, a nongovernmental organization based in London. In some cases, Chinese citizens were caught trying to leave Indonesia with casques in their luggage.
. . .
China has joined the world in taking a stand against the trade in elephant and rhinoceros products. In September, during his state visit to the United States, President Xi Jinping pledged to “enact nearly complete bans on ivory import and export.”
But some conservationists worry that less celebrated but also threatened animals, including the helmeted hornbill, are being overlooked, becoming easy picks to meet the demand.
“Shifting to hornbill ivory is like grabbing a low-hanging fruit,” Yokyok Hadiprakarsa, the director of the Indonesian Hornbill Conservation Society, wrote in an email.

For the full story, see:
SHAOJIE HUANG. “Chinese Demand for Ivory Alternative Threatens Rare Hornbill Bird.” The New York Times (Weds., MARCH 23, 2016): A3.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 22, 2016, and has the title “Chinese Demand for Ivory Alternative Threatens Rare Bird.”)

Regulations and Bureaucratic Inefficiency May Kill Restaurant

(p. A22) To begin with, although the B&H Dairy Restaurant on Second Avenue in Manhattan now hangs by a thread, no one was hurt there on March 26 [, 2015], the day that three buildings on the same block were leveled by a gas explosion.
. . .
“On the third day after the explosion, people from the building department and Con Edison came together,” Mr. Abdelwahed said. “They inspected the place, upstairs, downstairs, the pipes, the basement. They told me, ‘You are O.K., you should be fine, no problem.’ ”
That changed, he said, in the charged days that followed, as it emerged that apparently illegal alterations to the gas lines had been made in one of the buildings down the street.
The original inspector returned, he said, and told him that another inspection was going to happen in a couple of days. “He said, ‘You’re not going to pass that inspection. Because of what happened next door, I don’t want to be responsible for the future,’ ” Mr. Abdelwahed said.
All of the gas piping in the building has to be replaced, a job the landlord has taken on, though it is not clear what deficiencies it had. The Buildings Department file for 127 Second Avenue shows that there were no open violations on the premises in March, and none now.
After questions were put four times to the city on Thursday about the nature of the problems with B&H’s operation, a spokesman for the mayor said the administration was trying to help small businesses affected by the explosion, including the restaurant.
In B&H, Mr. Abdelwahed said, the inspector noted that his stove had five burners, but the plans on file showed only four. “He required me to correct it on the plan,” Mr. Abdelwahed said. “Originally it was four. I don’t know how it came to be five. It’s not an issue. Where was an inspector before all this? You’re trying to show you’re working?”
. . .
“He told me, ‘You have to change the fire system,’ ” Mr. Abdelwahed said of the inspector. “Of course, I had a fire suppression system all the time, inspected. I told him, ‘I am going to go out of business.’ He said: ‘I’m sorry, I can’t help you.’ They don’t want to be responsible for anything.”
Because the fire suppression system was going to jut into the backyard, Mr. Abdelwahed had to apply for permission from the city’s Landmarks Commission as the block is part of a historic landmark district. Only after that approval was granted could his contractor apply for a building permit.
“What’s killing them is the lag time,” said Mr. Reynolds, who is organizing crowdfunding support for the restaurant. Bernadette Nation, an official with the city’s Department of Small Business Services, has cut red tape in getting permits issued, and their story has been covered on New York 1 and by many blogs.

For the full story, see:
JIM DWYER. “About New York; Unharmed by a Gas Explosion, but Choked by the Red Tape That Followed.” The New York Times (Fri., JULY 10, 2015): A22.
(Note: ellipses, and bracketed year, added. The quote from Mr. Reynolds in the last passage above, appears in the print version of the article, but not in the online version of the article.)
(Note: the online version of the story has the date JULY 9, 2015.)

Suburbs Solved City Over-Crowding and Allowed Child Rearing

(p. C7) . . . , Adna Ferrin Weber, writing in 1899, had it right. “The ‘rise of the suburbs’ it is,” he wrote, “which furnishes the solid basis of a hope that the evils of city life, so far as they result from overcrowding, may be in large part removed.”
. . .
Joel Kotkin, in “The Human City: Urbanism for the Rest of Us,” presents the most cogent, evidence-based and clear-headed exposition of the pro-suburban argument. In Mr. Kotkin’s view, there is a war against suburbia, an unjust war launched by intellectuals, environmentalists and central-city enthusiasts. In pithy, readable sections, each addressing a single issue, he debunks one attack on the suburbs after another. But he does more than that. He weaves an impressive array of original observations about cities into his arguments, enriching our understanding of what cities are about and what they can and must become, with sections reflecting on such topics as “housing inflation,” “the rise of the home-based economy,” “the organic expansion of cities” and “forces undermining the middle class in global cities.”
The essence of Mr. Kotkin’s defense of suburban expansion in the United States–with which he is most familiar and where the opposition to his views is better organized and much more formidable than elsewhere–is that suburbs now contain the great majority of residences as well as jobs. Suburban neighborhoods, he suggests, are as conducive to community living and as “green” as central-city ones. But his critique of conventional urban-planning wisdom goes further. He argues that central-city living is largely unaffordable by the middle class, let alone the poor; that central cities are becoming the abodes of the global rich, encouraging glamorous consumption rather than providing middle-class jobs; and that dense urban living in small, expensive quarters discourages child rearing, a critical concern for policy makers in many industrialized countries today.

For the full review, see:
SHLOMO ANGEL. “In Praise of Urban Sprawl; Dense urban living discourages child rearing. It is no surprise that there are 80,000 more dogs than children in San Francisco.” The Wall Street Journal (Sat., May 21, 2016): C5-C6.
(Note: the online version of the review has the date May 20, 2016.)

The book under review, is:
Kotkin, Joel. The Human City: Urbanism for the Rest of Us. Chicago: Agate B2 Books, 2016.

Cloud Profits Give “Amazon Cover to Plunge into New Projects”

Jeff Bezos is what I call a “project entrepreneur”: he uses profits from earlier projects to fund new projects.

(p. B12) When it comes to investment, Amazon.com no longer has to stop to take a breath. And that is making it an even more formidable rival to bricks-and-mortar retailers.

The e-commerce giant has reported minimal profits in its 19-year history as a public company as it has pursued a pattern of near-endless investment. Amazon has plowed money into expanding its warehouse and delivery infrastructure and branching into new markets such as grocery, music, online video and, most recently, apparel.
In the past, Amazon has occasionally chosen to take a quarter here and there to press pause on that investment. That had the effect of reassuring the market that it could immediately be profitable if it ever chose to stop.
. . .
The protective shield of the cloud seems to be giving Amazon cover to plunge into new projects at an even more rapid clip than it has in the past.

For the full story, see:
MIRIAM GOTTFRIED. “Amazon Cloud Profit Sparks Retail Storm.” The Wall Street Journal (Sat., May 21, 2016): B12.
(Note: ellipsis added.)
(Note: the online version of the story has the date May 20, 2016, and has the title “Amazon’s Cloud Cover Makes It a Bigger Threat.”)

Workers Gain Slightly Larger Percent of GDP

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

(p. B1) American workers are reaping fewer of the gains of a growing economy in the form of pay and benefits. Shareholders are reaping more in the form of corporate profits. That shift has been one of the most important economic stories of the last several decades, and it is the key to understanding stagnant wages for middle-class workers and a soaring stock market in the last quarter-century.

Here is what is less widely understood: That trend appears to be reversing itself.
It is early and the reversal may not last. And it certainly hasn’t fully undone the shift underway since the 1980s. But the numbers are quite clear that in the last couple of years workers have claimed a bigger piece of the economic pie and shareholders a smaller one.
The evidence available so far in 2016 — steady growth in wages and weak earnings for publicly traded companies — suggests that the reversal is continuing this year.

For the full story, see:
Neil Irwin. “The Upshot; Workers Are Getting a Bit More of the Economic Pie.” The New York Times (Fri., MAY 6, 2016): B1 & B9.
(Note: the online version of the story has the date MAY 3, 2016, and has the title “The Upshot; Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less).”)

“Students Are Hungry to Make an Impact”

(p. B2) “Today’s students are hungry to make an impact, and we have to be responsive,” said Gordon Jones, the dean of a new College of Innovation and Design at Boise State University in Idaho and the former director of Harvard’s Innovation Lab.
Yet campus entrepreneurship fever is encountering skepticism among some academics, who say that start-up programs can lack rigor and a moral backbone.
Even a few entrepreneurship educators say that some colleges and universities are simply parroting an “innovate and disrupt” Silicon Valley mind-set and promoting narrow skill sets — like how to interview potential customers or pitch to possible investors — without encouraging students to tackle more complex problems.
“A lot of these universities want to get in the game and serve this up because it’s hot,” Mr. Jones said. “The ones that are doing it right are investing in resources that are of high caliber and equipping students to tackle problems of importance.”
. . .
. . . the quick start-up workshops offered on some campuses can seem at odds with the traditional premise of liberal arts schools to educate deliberative, critical thinkers.
“Real innovation is rooted in knowledge and durable concern and interest, not just ‘I thought of something that nobody ever thought of before,'” said Jonathan Jacobs, who writes frequently about liberal education and is the chairman of the philosophy department at John Jay College of Criminal Justice of The City University of New York. “That’s not educating people, frankly.”
And at least a few professors of entrepreneurship say that some universities are not ensuring that students learn the fundamentals of starting, running and sustaining a business.

For the full story, see:
NATASHA SINGER. “Colleges Rush to Embolden Entrepreneurs.” The New York Times (Tues., DEC. 29, 2015): A1 & B2 (sic).
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 28, 2015, and has the title “Universities Race to Nurture Start-Up Founders of the Future.”)