Books – Page 50 – artdiamondblog.com

Summers’s Unbreakable Washington Power Elite Rule: Insiders Don’t Criticize Other Insiders

(p. 5) A telling anecdote involves a dinner that Ms. Warren had with Lawrence H. Summers, then the director of the National Economic Council and a top economic adviser to President Obama. The dinner took place in the spring of 2009, after the oversight panel had produced its third report, concluding that American taxpayers were at far greater risk to losses in TARP than the Treasury had let on.
After dinner, “Larry leaned back in his chair and offered me some advice,” Ms. Warren writes. “I had a choice. I could be an insider or I could be an outsider. Outsiders can say whatever they want. But people on the inside don’t listen to them. Insiders, however, get lots of access and a chance to push their ideas. People — powerful people — listen to what they have to say. But insiders also understand one unbreakable rule: They don’t criticize other insiders.”
“I had been warned,” Ms. Warren concluded.
A spokeswoman for Mr. Summers did not respond to a request for comment.

For the full commentary, see:
GRETCHEN MORGENSON. “Fair Game; From Outside or Inside, the Deck Looks Stacked.” The New York Times, SundayBusiness Section (Sun., APRIL 27, 2014): 1 & 5.
(Note: italics in original commentary, and in Warren book. I added a missing quotation mark.)
(Note: the online version of the commentary has the date APRIL 26, 2014.)

The Warren passages quoted above are from p. 106 of her book:
Warren, Elizabeth. A Fighting Chance. New York: Metropolitan Books, 2014.

Insull the Innovator

(p. 262) Willing to take risks, he picked up for a bargain price a state-of-the-art engine and pair of generators from General Electric that had been on display at the 1893 world’s fair. In only his second year on the job, he arranged to acquire his larger competitor, the Chicago Arc Light and Power Company. Branching farther out, he acquired coal mines and a steam railroad that provided vertical integration. Most innovative of all, he introduced new pricing schemes to encourage high-volume residential use spread over the entire day so that he could optimize the greatest volume of business for the least possible capital investment. With the acquisition of neighboring utilities, he created a six-thousand-square-mile regional network of power.

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Rickenbacker Wasn’t the Best Pilot or the Best Shot “but He Could Put More Holes in a Target that Was Shooting Back”

Source of book image: http://jacketupload.macmillanusa.com/jackets/high_res/jpgs/9781250033772.jpg

(p. C6) With his unpolished manners, Rickenbacker encountered a good deal of arrogance from the privileged sons of Harvard and Yale, but after he had downed his first five enemies, criticism ceased. About Rickenbacker’s killer instinct his colleague Reed McKinley Chambers had this to say: “Eddie wasn’t the best pilot in the world. He could not put as many holes in a target that was being towed as I could, but he could put more holes in a target that was shooting back at him than I could.”

For the full review, see:
HENRIK BERING. “Daring Done Deliberately.” The Wall Street Journal (Sat., May 31, 2014): C6.
(Note: the online version of the review has the date May 30, 2014, and has the title “Book Review: ‘Enduring Courage’ by John F. Ross.”)

The book under review is:
Ross, John F. Enduring Courage: Ace Pilot Eddie Rickenbacker and the Dawn of the Age of Speed. New York: St Martin’s Press, 2014.

Insull Took 50% Pay Cut to Get Chief Executive Position

(p. 262) Insull’s story is characterized by boldness of action that exceeded anything Edison had tried. When he had left Edison’s side, he had been determined to find a chief executive position. In 1892, he passed up an offer to be a vice president in Henry Villard’s North American Company in order to become president of Edison Chicago, a small electrical power utility that could pay him only half of what he had made in New York. He also had to move to Chicago, a place that seemed to a New Yorker like a “frontier town.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Edison Thought His Money Did More Good by Funding Inventions than by Funding Philanthropy

(p. 263) When asked in 1911 to donate to a building drive for a YMCA in Port Huron, a boyhood home, Edison responded with a small pledge and provided an explanation of why he would not provide more: “I can use surplus money to greater advantage for all the people in conducting experiments.”

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

Occupational Licensing Hurts Poor and Restricts Innovation and Worker Mobility

Source of book image: http://www.upjohn.org/sites/default/files/bookcovers/soor_0.JPG

(p. A31) In the 1970s, about 10 percent of individuals who worked had to have licenses, but by 2008, almost 30 percent of the work force needed them.

With this explosion of licensing laws has come a national patchwork of stealth regulation that has, among other things, restricted labor markets, innovation and worker mobility.
. . .
Occupational licensing, moreover, does nothing to close the inequality gap in the United States. For consumers, there is likely to be a redistribution effect in the “wrong” direction, as higher income consumers have more choice among higher quality purveyors of a service and lower income individuals are left with fewer affordable service options.
. . . , government-issued licenses largely protect occupations from competition. Conservatives often see members of the regulated occupation supporting licensing laws under claims of “public health and safety.” However, these laws do much more to stop competition and less to enhance the quality of the service.
Also, all consumers do not demand the same level of quality. If licensure “improves quality” by restricting entry into the profession, then some consumers will be forced to pay for more “quality” than they want or need. Not everyone wants a board-licensed hairdresser.

For the full commentary, see:
MORRIS M. KLEINER. “Why License a Florist?” The New York Times (Thurs., MAY 29, 2014): A31.
(Note: the online version of the commentary has the date MAY 28, 2014.)

Kleiner’s most recent book on occupational licensing is:
Kleiner, Morris M. Stages of Occupational Regulation: Analysis of Case Studies. Kalamazoo, Michigan: W.E. Upjohn Institute, 2013.

Edison “Put His Winnings from the Electric Light Business into the Mining Business”

(p. 265) In his business and research projects, Edison became more timid as he became older. While in his thirties, he had had the energy to tackle a problem that had seemed to many to be insoluble: the “subdivision” of the electric light that would make indoor use technically and economically feasible. In his forties, he had continued to dream big and put his winnings from the electric light business into the mining business. It had ended disappointingly, but he cannot be criticized for timidity. In his fifties, he did make another sizable bet. However, for this venture, pursuing the improvement of the battery for an electric car, he had financing from Ford that insulated him from personal risk. He continued to steer clear of risk in his sixties and seventies.

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.

In China “Overwhelming Evidence of the Leaders’ “Moral Vulnerability””

Source of book image: http://media.npr.org/assets/bakertaylor/covers/t/the-peoples-republic-of-amnesia/9780199347704_custom-d21f4e2d0281b692c74781102e750ff1e27b7cc9-s6-c30.jpg

(p. 21) During the night of June 3-4, 1989, when the Chinese Army was slaughtering demonstrators in Tiananmen Square, Wang Nan, a young student, was shot in the head. As he lay dying at the side of the road, soldiers threatened to kill anyone, even some young doctors, who tried to help him. In the morning, finally dead, he was buried in a shallow grave nearby. A few days later, the smell of Wang Nan’s body was so great that it was dug up and moved to a hospital.

After 10 days, his mother, Zhang Xianling, was called to the hospital to identify her son’s body. It took eight months, in the face of official obstruction, for Zhang to uncover what had happened to her son. In 1998 she held a modest remembrance service on the spot where he had died. The next year, on that day, she was barred from leaving her apartment. When she met Louisa Lim, Zhang said she longed to go to the fatal place again to pour a libation on the ground and sprinkle flower petals. “However,” Lim observes, ”someone will always be watching her. A closed-circuit camera has been installed” and “trained on the exact spot where her son’s body was exhumed. . . . It is a camera dedicated to her alone, waiting for her in case she should ever try again to mourn her dead son.”
Until I read about that camera in “The People’s Republic of Amnesia,” I imagined, after decades of reporting from and about China, that nothing there could still shock me. As Lim contends, Zhang’s “simple act of memory is deemed a threat to stability.” Lim’s overwhelming evidence of the leaders’ “moral vulnerability,” together with her accounts of the amnesia of many Chinese, make hers one of the best analyses of the impact of Tiananmen throughout China in the years since 1989.

For the full review, see:
JONATHAN MIRSKY. “An Inconvenient Past.” The New York Times Book Review (Sun., MAY 25, 2014): 21.
(Note: ellipsis in original.)
(Note: the online version of the review has the date MAY 23, 2014.)

The book under review is:
Lim, Louisa. The People’s Republic of Amnesia: Tiananmen Revisited. New York: Oxford University Press, 2014.

“Tanks at the ready in Beijing on June 6, 1989, two days after the Tiananmen Square massacre.” Source of caption and photo: online version of the NYT review quoted and cited above.

If Inventors Were Allowed to Educate

(p. 228) Along with the home projector, the company introduced a central clearinghouse for used films, which offered customers a way of replenishing the family’s entertainment supply by using the postal service to swap titles with others for a nominal processing fee. Edison, however, wanted to use his projector not for entertainment but for education. For preschoolers, his idea was nothing less than brilliant. For teaching the alphabet, Edison explained in an interview, “suppose, instead of the dull, solemn letters on a board or a card you have a little play going on that the littlest youngster can understand,” with actors carrying in letters, hopping, skipping, turning somersaults. “Nothing like action–drama–a play that fascinates the eye to keep the attention keyed up.” (A prospectus for Sesame Street could not have made a better case.)

Source:
Stross, Randall E. The Wizard of Menlo Park: How Thomas Alva Edison Invented the Modern World. New York: Crown Publishers, 2007.
(Note: italics in original)

Schulman Grants that Kochs “Have Sincere Political Views that Go Beyond Being Just a Cover for Their Companies’ Interest”

“The Koch brothers, from left: William, Charles, David and Frederick.” Source of caption and photo: online version of the NYT review quoted and cited below.

(p. 12) “Sons of Wichita” may strike some readers as surprisingly pro-Koch. . . . [Schulman] grants Charles and David two key concessions: They have sincere political views that go beyond being just a cover for their companies’ interest in lower taxes and fewer regulations, and many of their political activities have been right out in the open, rather than lurking in the shadows. He seems to be almost in awe of Charles, the most mysterious of the brothers, who runs Koch Industries by a system he devised called Market-Based Management. Summarizing, but not dissenting from, the views of Charles’s employees, Schulman calls him “a near-mythic figure, a man of preternatural intellect and economic prowess,” adding: “He is unquestionably powerful, but unfailingly humble; elusive, but uncomplicated; cosmopolitan, yet thoroughly Kansan.” It’s noteworthy, Schulman argues, that for decades the Koch family was definitely not welcome in the Republican Party. That they came to stand for Republicanism, at least in the minds of liberals, in 2010 and 2012 is testament to their persistence, to the weakening of the traditional party structures and to their success in making libertarianism a mainstream rather than a fringe ideology. “It’s a brilliant, extraordinary accomplishment,” Schulman quotes Rob Stein of the liberal Democracy Alliance as saying about the Kochs’ rise to influence.
. . .
Even the Tea Party movement is not entirely dependent on intravenous feeding from the Kochs or that other favorite liberal villain, Fox News. And elements of Koch-style libertarianism, connected to the interests of major donors, now live within the Democratic Party too — not just on social issues like same-sex marriage, but on economic and regulatory ones too. “Sons of Wichita” reminds us that political outcomes depend far more on ideas and organization, and the energy and persistence devoted to them, than they do on the balance of power between good guys and bad guys.

For the full review, see:
NICHOLAS LEMANN. “Billionaire Boys Club.” The New York Times Book Review (Sun., MAY 25, 2014): 12.
(Note: ellipses, and bracketed name, added.)
(Note: the online version of the review has the date MAY 23, 2014.)

The book under review is:
Schulman, Daniel. Sons of Wichita: How the Koch Brothers Became America’s Most Powerful and Private Dynasty. New York: Grand Central Publishing, 2014.

Source of book image: http://media.npr.org/assets/bakertaylor/covers/s/sons-of-wichita/9781455518739_custom-bd178f0c1a2667e448cf13ff7df2850774d77dd8-s6-c30.jpg