A Rising Tax Gathers No Rolling Stone

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Source of book image: http://1.bp.blogspot.com/-Nhhn-YcP9IY/TjkQHfGGEeI/AAAAAAAAAVA/_jKMGRBm9Ac/s1600/life-keith-richards.jpg

(p. 289) The tax rate in the early ’70s on the highest earners was 83 percent, and that went up to 98 percent for investments and so-called unearned income. So that’s the same as being told to leave the country. … The last thing I think the powers that be expected when they hit us with the super-super tax is that we’d say, fine, we’ll leave. We’ll be another one not paying tax to you. They just didn’t factor that in. It made us bigger than ever, and it produced Exile on Main St., which was maybe the best thing we did. They didn’t believe we’d be able to continue as we were if we didn’t live in England. And in all honesty, we were very doubtful too. We didn’t know if we would make it, but if we didn’t try, what would we do? Sit in England and they’d give us a penny out of every pound we earned? We had no desire to be closed down. And so we upped and went to France.

Source:
Richards, Keith. Life. New York: Little, Brown and Company, 2010.
(Note: I first saw the quote on the back cover of: Journal of Political Economy 119, no. 1 (Feb. 2011).)
(Note: ellipsis added.)

Crushed Under Eurostar in a Desparate Dash to a Better Life

(p. 280) In recent years, police have practically barricaded the marshalling yard in Calais, France,where the elegant Eurostar train must slow down before it enters the Channel Tunnel to England. Today the Calais marshalling yard for the Channel Tunnel looks like what the military might erect around a flying-saucer wreckage–barbed wire, electric fences, armed guards, and police dogs everywhere. Yet each night as darkness falls desperate men from the developing world, Africans and Pakistanis and Afghans and others, hide throughout the marshalling yard, sprint toward the Eurostar as it slows for the tunnel, and try to cling to its side as it accelerates again. They hope to survive until the train bears (p. 281) them into the United Kingdom, for French law treats illegal immigrants harshly, while England is more liberal. Numerous indigent developing-world men have been killed when they have slipped off the sides or the couplers of Eurostar, then fallen beneath its wheels; the stylish passengers aboard the train may feel a slight bump. Yet the men keep trying, though most must know there is hardly anything on this aerodynamically sleek train to grab hold of. Many are arrested as they dash toward the train and the favored life it represents. If released, they return to dash again. If deported, they try to sneak back into the country and dash again.

Source:
Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.

U.S. Holds “Edge in Its Openness to Innovation”

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Source of book image: http://www.tower.com/tycoons-how-andrew-carnegie-john-d-rockefeller-jay-charles-r-morris-paperback/wapi/100346776?download=true&type=1

(p. 24) Judging by Charles R. Morris’s new book, “The Tycoons,” it takes about 100 years for maligned monopolists and “robber barons” to morph into admirable innovators.

Morris skillfully assembles a great deal of academic and anecdotal research to demonstrate that Andrew Carnegie, John D. Rockefeller, Jay Gould and J. P. Morgan did not amass their fortunes by trampling on the downtrodden or ripping off consumers – . . .
. . .
Though Morris only hints at it, the truth is that the real heroes of the American industrial revolution were not his four featured tycoons, but the American people themselves. I don’t mean this to sound like a corny burst of patriotism. In the 19th century, the United States was still young. Most families had either been booted out of Europe or fled it, and they didn’t care about tradition or the Old Guard. With little to lose, they were willing to bet on a roll of the dice, even if it was they who occasionally got rolled. Europe was encrusted with guilds, unions and unbendable rules. Britons took half a day to make a rifle stock, because 40 different tradesmen poked their noses into the huddle. American companies polished off new rifle stocks in 22 minutes.
The United States still holds an edge in its openness to innovation. In 1982, French farmers literally chased the French agriculture minister, Edith Cresson, off their fields with pitchforks because she suggested reform. By contrast, back in the late 1850’s, Abraham Lincoln was a hot after-dinner speaker. Was he discussing slavery? No. The title of his talk was “Discoveries and Inventions.” The real root of economic growth is not natural resources or weather or individual genius. It’s attitude, not latitude. The Austrian economist Joseph Schumpeter called innovations gales of “creative destruction.” Americans, not Europeans, had the gall to stare into those gales – with optimism.

For the full review, see:
TODD G. BUCHHOLZ . “‘The Tycoons’: Benefactors of Great Wealth.” The New York Times Book Review (Sun., October 2, 2005): 24.
(Note: ellipses added.)
(Note: the online version of the review has the title “‘The Tycoons’: Benefactors of Great Wealth.”)

Book under review:
Morris, Charles R. The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supereconomy. New York: Times Books, 2005.

France Lacked Good Patent Laws; Great French Inventors “Died Penniless”

(p. 367) If one secret to sustaining an inventive culture was making inventors into national heroes, it was a secret that didn’t translate well into French. Between 1740 and 1780, the French inclination to reward inventors not by enforcing a natural right but by the grant of pensions and prizes resulted in the award of nearly 7 million livres–approximately $600 million today–to inventors of largely forgot-(p. 268)ten devices, but Claude-François Jouffroy d’Abbans (inventor of one of the first working steamboats), Barthélemy Thimonnier (creator of the first sewing machine), and Airné Argand (a partner of Boulton and friend of Watt whose oil lamp became the world’s standard) all died penniless.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

Luddism in France

(p. 240) Not only was Richard Hargreaves’s original spinningjenny destroyed in 1767, but so also was his new and improved version in 1769.

Nor was the phenomenon exclusively British. Machine breaking in France was at least as frequent. and probably even more consequential, though it can be hard to tease out whether the phenomenon contributed to, or was a symptom of, some of the uglier aspects of the French Revolution. Normandy in particular, which was not only close to England but the most “English” region of France, was the site of dozens of incidents in 1789 alone. In July, hundreds of spinnigjennys were destroyed, along with a French version of Arkwright’s water frame. In October, an attorney in Rouen applauded the destruction of “the machines used in cotton-spinning that have deprived many workers of their jobs.” In Troyes, spinners rioted, killing the mayor and mutilating his body because he had favored machines.” The carders of Lille destroyed machines in 1790; in 1791, the spinning jennies of Roanne were hacked up and burned. By 1796, administrators in the Department of the Somme were complaining, it turns out presciently, that the prejudice against machinery has led the commercial classes . . . to abandon their interest in the cotton industry.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: ellipsis in original.)

Cultures that Excel at the Practical Often Also Excel at the Sublime

According to the reasoning of the following passages, the same Cro-Magnons who created the wonderful cave paintings at Lascaux, were also the ones who created the highly effective laurel leaf projectile points.
It is often believed that the practical is in conflict with the sublime. The Solutreans may be one more example, in addition to that of entrepreneurial capitalism, that cultures that excel at the practical also excel at the sublime.
[The passages I quote are somewhat disjointed, so let me sketch how they fit together. The first sentence asserts that the Lascaux cave paintings are the prehistoric equal of the Sistine Chapel. The second passage describes the Salutreans’ highly practical laurel leaf projectile points. The final sentence asserts that the same Salutrean culture that invented the practical points, also painted the sublime cave at Lascaux.]

(p. 219) Lascaux had been sealed since the late Ice Age, so what the Abbe Henri Breuil soon called “the Sistine Chapel of Prehistory” was intact.
. . .
(p. 221) . . . The seasonal killing at Solutre resumed, but now the prey was reindeer rather than horses. This time, too, the hunters used not only bone-pointed spears hut also weapons bearing what French archaeologists rather elegantly call feuilles de laurier, “laurel leaves” . . . . These beautifully made stone projectile points do indeed look like idealized laurel leaves and stand out as exotic in otherwise unchanging tool kits of bone artifacts, burins, and scrapers. Those skilled enough to fabricate them had mastered a new (p. 222) stoneworking technology, which involved using an antler billet to squeeze off shallow flakes by applying sharp pressure along the edges of a blade. This technique–pressure flaking–produced thin, beautifully shaped yet functional spear points that were both lethal and lovely to look upon. Sometimes, the stoneworkers made what one might call rudimentary versions of the points using pressure flaking on but one side of the tool. On occasion, too, they made spearheads with a shoulder that served as the mount for the shaft. But the ultimate was the classic laurel leaf, flaked on both sides, beautifully regular and thin. Feuilles de laurier were never common, and indeed, some researchers wonder if they were, in fact, ceremonial tools and never used in the field. This seems unlikely, for they would have made tough, effective weapons for killing prey like reindeer.
. . .
If the Lascaux chronology is to be believed–and remember that the radiocarbon dates come from artifacts in the cave, not actual paintings–then Solutreans were the artists who painted there, . . .

Source:
Fagan, Brian. Cro-Magnon: How the Ice Age Gave Birth to the First Modern Humans. New York: Bloomsbury Press, 2010.
(Note: ellipses added; italics in original.)

French Utopian Planned Community Goes Up in Flames

VilleneuveGrenobleFranceUtopia2010-09-01.jpg“The planned neighborhood Villeneuve, in Grenoble, has slowly degraded into a poor district before it finally burst into flames three weeks ago, with a mob setting nearly 100 cars on fire.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A7) GRENOBLE, France — A utopian dream of a new urban community, built here in the 1970s, had slowly degraded into a poor neighborhood plagued by aimless youths before it finally burst into flames three weeks ago.

After Karim Boudouda, a 27-year-old of North African descent, and some of his friends had robbed a casino, he was killed in an exchange of automatic gunfire with the police. The next night, Villeneuve, a carefully planned neighborhood of Grenoble in eastern France, exploded. A mob set nearly 100 cars on fire, wrecked a tram car and burned an annex of city hall.
. . .
Villeneuve, or “new city,” emerged directly out of the social unrest of the May 1968 student uprising.
People committed to social change, from here as well as from Paris and other cities, came to create a largely self-contained neighborhood of apartment buildings, parks, schools, and health and local services in this city of 160,000 people, at the spectacular juncture of two rivers and three mountain ranges at the foot of the French Alps.

For the full story, see:

STEVEN ERLANGER. “Grenoble Journal; Utopian Dream Becomes Battleground in France.” The New York Times (Mon., August 9, 2010): A7.

(Note: ellipsis added.)
(Note: the online version of the review is dated August 8, 2010.)

Former French Student Protest Leader: “We’ve Decided that We Can’t Expect Everything from the State”

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

(p. A16) “The euro was supposed to achieve higher productivity and growth by bringing about a deeper integration between economies,” says Simon Tilford, chief economist at the Centre for European Reform, a London think tank. “Instead, integration is slowing. The lack of flexibility in labor and product markets raises serious questions about the likelihood of the euro delivering on its potential.”

Structural changes are the last great hope in part because euro zone members have few other levers for lifting their economies. Individual members can’t tweak interest rates to encourage lending, because those policies are set by the zone’s central bank. The shared euro means countries don’t have a sovereign currency to devalue, a move that would make exports cheaper and boost receipts abroad.
The remaining prescription, many economists say: chip away at the cherished “social model.” That means limiting pensions and benefits to those who really need them, ensuring the able-bodied are working rather than living off the state, and eliminating business and labor laws that deter entrepreneurship and job creation.
That path suits Carlos Bock. The business-studies graduate from Bavaria spent months navigating Germany’s dense bureaucracy in order to open a computer store and Internet café in 2004. Before he could offer a Web-surfing customer a mug of filter coffee, he said, he had to obtain a license to run a “gastronomic enterprise.” One of its 38 requirements compelled Mr. Bock to attend a course on the hygienic handling of mincemeat.
Mr. Bock closed his store in 2008. Germany’s strict regulations and social protections favor established businesses and workers over young ones, he said. He also struggled against German consumers’ reluctance to spend, a problem economists blame in part on steep payroll taxes that cut into workers’ takehome pay, and on high savings rates among Germans who are worried the country’s pension system is unsustainable.
“If markets were freer, there might be chaos to begin with,” Mr. Bock said. “But over time we’d reach a better economic level.”
Even in France, some erstwhile opponents of reforms are changing their tune. Julie Coudry became a French household name four years ago when she helped organize huge student protests against a law introducing short-term contracts for young workers, a move the government believed would put unemployed youths to work.
With her blonde locks and signature beret, Ms. Coudry gave fiery speeches on television, arguing that young people deserved the cradle-to-grave contracts that older employees enjoy at most French companies. Critics in France and abroad saw the protests as a shocking sign that twentysomethings were among the strongest opponents of efforts to modernize the European economy. The measure was eventually repealed.
Today, the now 31-year-old Ms. Coudry runs a nonprofit organization that encourages French corporations to hire more university graduates. Ms. Coudry, while not repudiating her activism, says she realizes that past job protections are untenable.
“The state has huge debt, 25% of young people are jobless, and so I am part of a new generation that has decided to take matters into our own hands,” she says. “We’ve decided that we can’t expect everything from the state.”

For the full story, see:
MARCUS WALKER And ALESSANDRA GALLONI. “Europe’s Choice: Growth or Safety Net.” The Wall Street Journal (Thurs., MARCH 25, 2010): A1 & A16.

“Our Own Peaceful Deity Keeping Watch Before the Open Gates of America”

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Source of book image: online version of the WSJ review quoted and cited below.

I believe that a case can be made that Grover Cleveland is an under-appreciated President. (I like his comment on the Statue of Liberty quoted below.)

(p. W9) The cold rains of Oct. 28, 1886, did little to dampen the ardor of the tens of thousands of giddy New Yorkers who crowded onto the southern tip of Manhattan that afternoon to watch the festivities on Bedloe’s Island, a patch of land in New York Harbor. On cue, an enormous veil dropped, and the spectators gazed for the first time at the face of the massive statue that, until then, had been the subject not only of curiosity but also of skepticism.

Whatever doubts Americans might have had about this unsolicited, and rather costly, gift from the French seemed at once to vanish. A “thunderous cacophony of salutes from steamer whistles, brass bands, and booming guns, together with clouds of smoke from the cannonade, engulfed the statue for the next half hour,” Yasmin Sabina Khan writes in “Enlightening the World,” her account of how the Statue of Liberty came to be.
The crowd roared, then various speakers held forth, welcoming the 225-ton, 151-foot-tall Lady Liberty, as she would soon be known. President Grover Cleveland, in his remarks, tried to distinguish this colossus from others of its kind throughout human history. Where the statue-symbols of other nations might depict “a fierce and warlike god, filled with wrath and vengeance,” this one exhibited only “our own peaceful deity keeping watch before the open gates of America.”
President Cleveland’s interpretation of the statue turned out to be but one of many over the years. To Ms. Khan the Statue of Liberty’s symbolic significance is not a complicated matter and never was. The statue celebrates the “friendship” of the people of France and those of the U.S.; it represents “liberty” and “liberty” alone.

For the full review, see:

ALAN PELL CRAWFORD. “BOOKS; Lady Liberty’s Path to America.” The Wall Street Journal (Sat., MAY 8, 2010): W9.

“Climate Change Was One of the Forces that Led to the Triumph of Homo Sapiens”

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“The David H. Koch Hall of Human Origins in Washington includes this 30,000-year-old handprint from France.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. C32) The exhibition’s theme is “What Does It Mean to Be Human?” And the new image of the human it creates is different from the one from a century ago. It isn’t that nature has suddenly become a pastoral paradise. Some of the most unusual objects here are fossilized human bones bearing scars of animal attacks: a 3-year-old’s skull from about 2.3 million years ago is marked by eagle talons in the eye sockets; an early human’s foot shows the bite marks of a crocodile. In one of the exhibition’s interactive video stations, in which you are cleverly shown how excavated remains are interpreted, you learn that the teeth of a leopard’s lower jaw found in a cave at the Swartkrans site in South Africa match the puncture marks in a nearby early-human skull: evidence of a 1.8 million-year-old killing.

. . .
During the brief 200,000-year life of Homo sapiens, at least three other human species also existed. And while this might seem to diminish any remnants of pride left to the human animal in the wake of Darwin’s theory, the exhibition actually does the opposite. It puts the human at the center, tracing how through these varied species, central characteristics developed, and we became the sole survivors. The show humanizes evolution. It is, in part, a story of human triumph.
. . .
. . . at recent excavations in China, at Majuangou, stone tools were found in four layers of rock dating from 1.66 million to 1.32 million years ago; fossil pollen proved that each of these four time periods was also associated with a different habitat. “The toolmaker, Homo erectus,” we read, “was able to survive in all of these habitats.”
That ability was crucial. The hall emphasizes that enormous changes in the planet’s climate accompanied hominin development, suggesting that the ability to adapt to such differing circumstances was the human’s strength. Climate change was one of the forces that led to the triumph of Homo sapiens.

For the full review, see:
EDWARD ROTHSTEIN. “Exhibition Review; Hall of Human Origins; Searching the Bones of Our Shared Past.” The New York Times (Fri., March 19, 2010): C25 & C32.
(Note: italics in original; ellipses added.)
(Note: the online version of the review is dated March 18, 2010.)