Category: Books

Nader Enlists Mises, Hayek, Friedman and Stigler in Critique of Crony Capitalism

(p. A9) Mr. Nader, the consumer crusader who ran for president to the left of Al Gore, is perhaps the last person one would expect to admire a libertarian critique of the corporate state. But in “Unstoppable” he respectfully describes the views of Ludwig Von Mises, Friedrich von Hayek, Milton Friedman, George Stigler and other free-market economists. He praises their distrust of politicians, lobbyists and businessmen who seek to put government power in the service of corporate profit.
Not that the Republican Party is always guided by such thinkers. Mr. Nader neatly describes how corporatist RINOs (Republican In Name Only) co-opt the party’s anti-statist crusaders. “The corporatist Republicans,” he writes, “let the libertarians and conservatives have the paper platforms . . . and then move into office, where they are quick to throw out a welcome mat for Big Business lobbyists with their slush funds.” He cites Adam Smith’s suspicion of regulations that benefit special interests: “Such restraints favor the privileged interests that want to entrench their economic advantages through the force of law.”
These are profound observations and ones that I saw play out while editing the Americas column for this newspaper in the 1980s and ’90s. Mercantilist Latin American businessmen who claimed to cheer market forces often thrived only because of their contacts in government. They reached out to the Journal’s editorial page as allies but were more socialist in practice than some of their left-wing enemies. Little did I suspect that a similar form of mercantilism, or corporate statism, would take root in the U.S. It is a pleasure to see Mr. Nader doing battle against such cozy arrangements.

For the full review, see:
DAVID ASMAN. “BOOKSHELF; Let’s Make a Deal; Ralph Nader’s latest crusade is against the convergence of big business and government power. Let’s hope he succeeds.” The Wall Street Journal (Fri., July 18, 2014): A9.
(Note: ellipsis in original.)
(Note: the online version of the review has the date July 17, 2014, and has the title “BOOKSHELF; Book Review: ‘Unstoppable’ by Ralph Nader; Ralph Nader’s latest crusade is against the convergence of big business and government power. Let’s hope he succeeds.”)

Book under review:
Nader, Ralph. Unstoppable: The Emerging Left-Right Alliance to Dismantle the Corporate State. New York: Nation Books, 2014.

China as Evil Empire

(p. C1) Mr. Eimer is a British correspondent who sometimes roamed around minority areas using a second passport with (p. C6) a tourist visa to avoid official restrictions that apply to journalists. What he found on his travels was a pattern of misrule and oppression on the part of the Han, as ethnic Chinese call themselves, and a mixture of resentment, despair, resignation and anomie among the subjugated peoples.
. . .
Because Mr. Eimer is not bound by diplomatic or journalistic niceties, he can be blunt in the terminology he uses. To him, China is not so much a state or a nation as a “huge, unwieldy and unstable empire,” with the Han in the dominant position that the Austrians, Turks or English once enjoyed in empires now vanished.
. . .
“We say China is a country vast in territory, rich in resources and large in population,” Mao Zedong said in a 1956 speech buried deep in the fifth volume of his selected works but cited by Mr. Eimer as a likely explanation for Chinese expansionism. “As a matter of fact, it is the Han nationality whose population is large and the minority nationalities whose territory is vast and whose resources are rich.”
As the Mao speech shows, Mr. Eimer is especially adept at ferreting out obscure historical facts and documents that put the lie to Beijing’s claims that these outlying areas have always been part of China. To deal with neighbors who were then outside its borders, the Qing dynasty, he notes, “established a separate bureaucracy called the Lifan Yuan, or Court of Colonial Affairs,” which “functioned much like the former Colonial Office in the U.K., which administered the British Empire.”
Mr. Eimer’s travels take him to all four quadrants of China’s land border, the longest in the world. His method is to spend time with an ethnic minority living in Chinese territory, then cross over to a neighboring country to see how the same group is faring there — almost always better than in China.

For the full review, see:
LARRY ROHTER. “BOOKS OF THE TIMES; An Antidote to Illusion, Examining Restive Borders.” The New York Times (Mon., AUG. 4, 2014): C1 & C6.
(Note: ellipses added.)
(Note: the online version of the review has the date AUG. 3, 2014, and has the title “BOOKS OF THE TIMES; An Antidote to Illusion, Examining Restive Borders; ‘The Emperor Far Away: Travels at the Edge of China,’ by David Eimer.”)

The book being reviewed is:
Eimer, David. The Emperor Far Away: Travels at the Edge of China. New York: Bloomsbury USA, 2014.

“Seeing What Everybody Has Seen and Thinking What Nobody Has Thought”

Szent-Györgyi is onto something important below. But I think it would be more accurate to say that we all experience dissonant events (but usually not the same dissonant events, as Szent-Györgyi implies), and that most of us let the events pass without noticing, or remembering, or making use of them. What is rare is to notice the events, remember them and make use of them. Those who carry around with them the burden of unsolved problems, and unfixed frustrations, are more likely to see in unexpected events solutions to those problems and fixes for the frustrations. This all takes the effort of our better self (what Kahneman calls our System 2). It takes effort to carry around the problems, to bear the dissonant observations, and to suffer the indifference of friends and the ridicule of experts. But it is through such effort that we better understand the world and, most importantly, that we improve the world.

(p. 12) “Discovery (p. 13) consists of seeing what everybody has seen and thinking what nobody has thought,” according to Nobelist Albert Szent-Györgyi.14
. . .
(p. 324) 14. Albert Szent-Györgyi, Bioenergetics (New York: Academic Press, 1957), 57.

Source:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.
(Note: italics in original.)

For Health Entrepreneurs “the Regulatory Burden in the U.S. Is So High”

(p. A11) Yo is a smartphone app. MelaFind is a medical device. Yo sends one meaningless message: “Yo!” MelaFind tells you: “biopsy this and don’t biopsy that.” MelaFind saves lives. Yo does not. Guess which firm found it easier to put their product in consumers hands?
. . .
In January 2010, Jeffrey Shuren, a veteran FDA official, was appointed director of the FDA’s Center for Devices and Radiological Health, the division responsible for evaluating MelaFind. Dr. Shuren, Dr. Gulfo writes, had “a reputation for being somewhat anti-industry” and “an aggressive agenda to completely revamp the device approval process.” Thus in March MELA Sciences was issued something called a “Not Approvable letter” raising various questions about MelaFind.
. . .
The letter sent the author into survival mode. He battled the FDA, calmed investors, and defended against the lawsuit all while trying to keep the company afloat. Under stress, Dr. Gulfo’s health began to decline: He lost 29 pounds, his hair began to fall out, and the pain in his gut became so intense he needed an endoscopy.
. . .
The climax to this medical thriller comes when, in “the greatest 15 minutes of [his] life,” Dr. Gulfo delivers an impassioned speech, à la “Twelve Angry Men,” to the FDA’s advisory committee. The committee voted for approval, 8 to 7, and, perhaps with the congressional hearing in mind, the FDA approved MelaFind in September 2011.
It was a major triumph for the company, but Dr. Gulfo was beat. He retired from the company in June 2013– . . .
. . .
Google’s Sergey Brin recently said that he didn’t want to be a health entrepreneur because “It’s just a painful business to be in . . . the regulatory burden in the U.S. is so high that I think it would dissuade a lot of entrepreneurs.” Mr. Brin won’t find anything in Dr. Gulfo’s book to persuade him otherwise. Until we get our regulatory system in order, expect a lot more Yo’s and not enough life-saving innovations.

For the full review, see:
ALEX TABARROK. “BOOKSHELF; It’s Broke. Fix It. MelaFind’s breakthrough optical technology promised earlier, more accurate detection of melanoma. Then the FDA got involved.” The Wall Street Journal (Tues., Aug. 12, 2014): A11.
(Note: ellipses added, except for the one internal to the final paragraph, which is in the original.)
(Note: the online version of the review has the date Aug. 11, 2014, and has the title “BOOKSHELF; Book Review: ‘Innovation Breakdown’ by Joseph V. Gulfo; MelaFind’s breakthrough optical technology promised earlier, more accurate detection of melanoma. Then the FDA got involved.”)

The book under review is:
Gulfo, Joseph V. Innovation Breakdown: How the FDA and Wall Street Cripple Medical Advances. Franklin, TN: Post Hill Press, 2014.

Serendipitous Discoveries Are Made by “Accidents and Sagacity”

(p. 6) “Accident” is not really the best word to describe such fortuitous discoveries. Accident implies mindlessness. Christopher Columbus’s discovery of the American continent was pure accident–he was looking for something else (the Orient) and stumbled upon this, and never knew, not even on his dying day, that he had discovered a new continent. A better name for the phenomenon we will be looking at in the pages to follow is “serendipity,” a word that came into the English language in 1754 by way of the writer Horace Walpole. The key point of the phenomenon of serendipity is illustrated in Walpole’s telling of an ancient Persian fairy tale, The Three Princes of Serendip (set in the land of Serendip, now known as Sri Lanka): “As their highnesses traveled, they were always making discoveries, by accidents and sagacity, of things they were not in quest of.”
Accidents and sagacity. Sagacity–defined as penetrating intelligence, keen perception, and sound judgment–is essential to serendipity. The men and women who seized on lucky accidents that happened to them were anything but mindless. In fact, their minds typically had special qualities that enabled them to break out of established paradigms, imagine new possibilities, and see that they had found a solution, often to some problem other than the one they were working on. Accidental discoveries would be nothing without keen, creative minds knowing what to do with them.

Source:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.
(Note: italics in original.)

Insider Reports on Crony Journalism at CBS and ABC

You hear a lot these days about ‘crony capitalism’ which no-one, including me, much likes. (The version I like is entrepreneurial capitalism.) But we too often forget that adjective “crony” can modify other nouns besides “capitalism.” Here are a couple of examples of crony journalism.

(p. A11) . . . skip to the second part, which is mostly a memoir and almost all about journalism. It includes one of the toughest critiques of television news ever written by an insider. From 1977 to 1989, Mr. Lewis worked for ABC News and then for CBS’s news program “60 Minutes.”
. . .
The most acute of Mr. Lewis’s frustrations came when Hewitt, the executive producer of “60 Minutes,” refused to broadcast a Lewis report on former government officials profiting as U.S. lobbyists for foreign interests unless the name of Hewitt’s good friend Pete Peterson, then chairman of the Blackstone Group, was excised from the script. In the story, a photograph showed five smiling Blackstone executives, all former federal appointees, in a Japanese newspaper advertisement seeking business for their lobbying efforts. Mr. Peterson was singled out by name in the voice-over narrative. Correspondent Mike Wallace, for whom Mr. Lewis worked directly, implored him in a shouting match to remove Mr. Peterson’s name, to no avail. But Hewitt was more subtle, simply refusing to schedule the piece for airing. Mr. Lewis bitterly relented to Hewitt’s implicit demand and quit the day after the story was broadcast.
As for ABC, Mr. Lewis reports that its legendary news chief Roone Arledge killed a tough story on tobacco at the request of “the Corporate guys,” who were fearful that the network could complicate its position in a libel suit that Philip Morris had already filed against the broadcaster.

For the full review, see:
RICHARD J. TOFEL. “BOOKSHELF; Media Manipulation; At ABC News and CBS’s ’60 Minutes,’ producers would regularly kill stories critical of the powerful and connected.” The Wall Street Journal (Weds., July 16, 2014): A11.
(Note: ellipsis added.)
(Note: the online version of the review has the date July 15, 2014, and has the title “BOOKSHELF; Book Review: ‘935 Lies’ by Charles Lewis; At ABC News and CBS’s ’60 Minutes,’ producers would regularly kill stories critical of the powerful and connected.”)

The book being reviewed is:
Lewis, Charles. 935 Lies: The Future of Truth and the Decline of America’s Moral Integrity. New York: PublicAffairs, 2014.

Funding Policies Constrain or Enable Serendipitous Discoveries

(p. xiv) Casting a critical eye on the way in which our society spends its research dollars, Happy Accidents offers new benchmarks for deciding how to spend future research funds. We as a society need to take steps to foster the kind of creative, curiosity-driven research that will certainly result in more lifesaving medical breakthroughs. Fostering an openness to serendipity has the potential to accelerate medical discovery as never before.

Source:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.
(Note: italics in original.)

“A Small Masterpiece of Animal Literature”

(p. A13) In the annals of publishing, there may be a precedent or two for a venerable military historian setting aside his generals and artillery to evoke the love affair that consumed him as a younger man, but it’s probably safe to say that in none of these memoirs is the object of adoration feathered, 10 inches tall and given to maniacally attacking the historian’s shoelaces. Such is the case with Martin Windrow’s “The Owl Who Liked Sitting on Caesar.” If the above description makes the book sound funny, touching and divertingly novel, so it is. But there’s more to it than that. In relaxed yet lapidary prose, Mr. Windrow–best known for “The Last Valley,” his 2004 account of the Battle of Dien Bien Phu–has produced an homage to both a creature and its species that is almost Leonardo-like in its precision and spirit of curiosity. The result is nothing less than a small masterpiece of animal literature.
. . .
Mumble became his mate-equivalent, and he hers. With the restraint typical of an educated Englishman of his generation, he does not dilate on what she meant to him, but we feel it the more keenly for his reticence.
A paradoxical pitfall of animal literature is that it achieves its effects too easily: Consider how quick we are to laugh when a writer so much as mentions a monkey. The good stuff, however, stands out for its refusal to push buttons or indulge in glib anthropomorphism. In this perfect book, Mr. Windrow may compare Mumble to a samurai and think of her as hurling at pigeons the owlish equivalent of a certain Anglo-Saxon expletive, but he never loses sight of what she is: Strix aluco, a beautiful alien.

For the full review, see:
BEN DOWNING. “BOOKSHELF; Full Feather Jacket; A military historian and an owl make a home together in a London high-rise. Visitors are issued vintage helmets for protection.” The Wall Street Journal (Weds., July 2, 2014): A13.
(Note: ellipsis added; italics in original.)
(Note: the online version of the review has the date July 1, 2014, and has the title “BOOKSHELF; Book Review: ‘The Owl Who Liked Sitting on Caesar’ by Martin Windrow; A military historian and an owl make a home together in a London high-rise. Visitors are issued vintage helmets for protection.”)

The book being reviewed is:
Windrow, Martin. The Owl Who Liked Sitting on Caesar: Living with a Tawny Owl. New York: Farrar, Straus and Giroux, 2014.

Curing Cancer Requires Enabling Serendipity, Not a Centrally Planned War

Happy Accidents is a wonderful book on serendipitous discovery that I ran across serendipitously. I had never heard of the author, but was interested in serendipity, so I started to collect books that Amazon says have something to do with serendipity. I let Happy Accidents sit on my shelf for about four years before starting to read.
The author is a retired, distinguished physician. The book is mainly a compendium of cases where major medical advances resulted from chance discoveries. Of course, the discoveries usually required more than just good luck. They usually required that someone was alert to the unexpected, and was willing to work in order to turn the unexpected into a cure. Their efforts are often made all the harder because of resistance from powerful incumbent “experts” and institutions. Often the discoveries go against the current theory, and are discovered by underfunded marginal outsiders.
Meyers points out that the centrally planned War on Cancer has cost the taxpayer a lot of money, and has largely failed to achieve its intended and predicted results. The reason is that you cannot centrally plan serendipity.
During the next several weeks, I will be quoting some of Meyers’ more revealing examples or thought-provoking comments.

Book discussed:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.

Similarities Between Lucretius and Galileo

(p. 254) Like Lucretius, Galileo defended the oneness of the celestial and terrestrial world: there was no essential difference, he claimed, between the nature of the sun and the planets and the nature of the earth and its inhabitants. Like Lucretius, he believed that everything in the universe could be understood through the same disciplined use of observation and reason. Like Lucretius, he insisted on the testimony of the senses, against, if necessary, the orthodox claims of authority. Like Lucretius, he sought to work through this testimony toward a rational comprehension of the hidden structures of all things. And like Lucretius, he was convinced that these structures were by nature constituted by what he called “minims” or minimal particles, that is, constituted by a limited repertory of atoms combined in innumerable ways.

Source:
Greenblatt, Stephen. The Swerve: How the World Became Modern. New York: W. W. Norton & Company, 2011.