Daily Archives: October 1, 2019

The dirty secret of capitalism

By Nick Hanauer – I am a capitalist, and after a 30-year career in capitalism spanning three dozen companies, generating tens of billions of dollars in market value, I’m not just in the top one percent, I’m in the top .01 percent of all earners. Today, I have come to share the secrets of our success, because rich capitalists like me have never been richer. So the question is, how do we do it? How do we manage to grab an ever-increasing share of the economic pie every year? Is it that rich people are smarter than we were 30 years ago? Is it that we’re working harder than we once did? Are we taller, better looking?

Sadly, no. It all comes down to just one thing: economics. Because, here’s the dirty secret. There was a time in which the economics profession worked in the public interest, but in the neoliberal era, today, they work only for big corporations and billionaires, and that is creating a little bit of a problem.

So, what is a society to do? Well, it’s super clear to me what we need to do. We need a new economics. So, economics has been described as the dismal science, and for good reason, because as much as it is taught today, it isn’t a science at all, in spite of all of the dazzling mathematics. In fact, a growing number of academics and practitioners have concluded that neoliberal economic theory is dangerously wrong and that today’s growing crises of rising inequality and growing political instability are the direct result of decades of bad economic theory. What we now know is that the economics that made me so rich isn’t just wrong, it’s backwards, because it turns out it isn’t capital that creates economic growth, it’s people; and it isn’t self-interest that promotes the public good, it’s reciprocity; and it isn’t competition that produces our prosperity, it’s cooperation. What we can now see is that an economics that is neither just nor inclusive can never sustain the high levels of social cooperation necessary to enable a modern society to thrive.

So where did we go wrong? Well, it turns out that it’s become painfully obvious that the fundamental assumptions that undergird neoliberal economic theory are just objectively false, and so today first I want to take you through some of those mistaken assumptions and then after describe where the science suggests prosperity actually comes from. more>

Updates from Chicago Booth

The real cost of discrimination: A case study from Nazi Germany
By Robin I. Mordfin -Policies such as the Trump administration’s ban on visitors from a string of majority-Muslim countries are likely to harm American companies, research suggests.

Chicago Booth’s Kilian Huber and University of Munich’s Volker Lindenthal and Fabian Waldinger draw their conclusion from a study of companies in Nazi Germany. Purging Jewish managers from German companies reduced the aggregate market valuation of all companies listed on the Berlin Stock Exchange by approximately 5 percent between 1933 and 1943, or nearly 2 percent of the German gross national product, they find.

The researchers collected data on 30,000 managerial positions at German companies that had been listed on the Berlin Stock Exchange in 1932, when Hitler was on the path to becoming the leader of the country. At the time, Jews held about 15 percent of senior management positions in these companies.

After the Nazis took power in 1933, those managers either left or were forced out of their positions. The share prices of these companies then declined relative to companies that had never employed Jewish executives. The share prices of companies that lost Jewish managers started falling in 1933 and remained persistently 10 percent lower than the share prices of peer companies that had never had Jews in senior positions. more>

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Updates from Ciena

Dissecting a submarine network trial announcement
With network infrastructure as critical as submarine cables, we’re constantly seeing new cables being announced and new technological milestones being achieved – but what’s real? Learn the difference between a hero trial, real-world trial, and how you can read between the lines to help separate hype from reality.
By Brian Lavallée – 2019 has and will continue to be a very busy year in the submarine network industry, with several new cables announced, deployed, and already put into the Ready for Service (RFS) state. Why does the industry need so many new submarine cables? To maintain pace with our ever-growing affinity and utter addiction to Internet-based content, which continues to drive the 40% CAGR in intercontinental bandwidth demand, according to industry analysts at TeleGeography, along the submerged information superhighways that interconnect continental landmasses.

As submarine networks are rightfully considered critical infrastructure, deploying new and modern cables will improve the overall reliability of the global network that erases distance and borders to close the digital divide.

When new submarine cable performance milestones are achieved in trials, they’re actively promoted through blogs, press releases, tweets, and webinars to celebrate, and why not? These new submerged wet plant and modem technology advancements are truly astonishing and deserve this fanfare – but the context of these achievements must be fully understood to determine what’s actually deployable for live customer traffic in the real-world.

A “hero field trial” typically uses best-case conditions that are not applicable in the real-world for production traffic, such as using Start-of-Life (SOL) performance margins and not End-of-Life (EOL) performance margins. A “hero trial announcement” can be identified by terms like “evaluation board”, “experimental”, “forward-looking”, “proof of concept”, “demonstration”, “industry first”, and other similar rather vague terms.

A hero trial focuses on demonstrating new capabilities of a technology and/or product albeit without consideration of commercial requirements or conditions. That said, it’s a critical step in the evolution of any new technology.

In contrast to a hero field trial, a “real-world field trial” focuses on demonstrating new capabilities of a technology and/or product albeit with consideration of commercial requirements and conditions. This means that the offering can reliably carry customer traffic and maintain the agreed to Service Level Agreements (SLA) in the long-term. more>

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Updates from Adobe

Bailey Sullivan Is Busy
By Terri Stone – Bailey Sullivan is a graphic designer for WeWork, a company that rents shared workspaces. Part of her job involves traveling to WeWork offices around the world and embellishing them with her art on walls, rugs, signs, sculptures, benches, and more. On top of globe-hopping for work, she also juggles freelance clients and personal projects.

“It’s a hard balance of wanting to be creating all of the time while not neglecting your relationships and personal health,” Sullivan says. She’s learned that adding a “buffer day”—or two—into timelines for freelance projects helps maintain her sanity.

Sullivan’s pieces sometimes read as folk art for the modern age. “I’m obsessed with old European floral illustrations,” she says. “My husband spent a few years living in Budapest as a child; awhile back I was searching online for something special from that area for him and I came across all of these amazing vintage Hungarian floral stamps and embroideries. I instantly connected with that imagery and how graphic and bright the flowers were and how they were stylized in a way that feels more decorative than a realistic still life.” more>

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