Category Archives: Economic development

Peter Drucker Has Some Sage Advice For How Execs Should Respond To Charlottesville

BOOK REVIEW

Concept of the Corporation, The Practice of Management, The Effective Executive, Author: Peter Drucker.
The End of Economic Man, Author: Peter Drucker.

By Rick Wartzman – Drucker advised countless executives on how to more effectively run their companies.

Along the way, however, Drucker never lost sight of his real aim: not to help companies make more money (although he recognized that without turning a steady profit, it was impossible to be sustainable) but to encourage business to fulfill its role as a leading institution of society.

Drucker knew firsthand, after all, what happens when our institutions don’t act as unflinching protectors of our most basic values: “Terror,” as he put it, is apt fill the void.

“To make our institutions perform responsibly,” Drucker asserted in his 1973 masterpiece Management: Tasks, Responsibilities, Practices, is “the only safeguard of freedom and dignity.”

The obligation of business—which, Drucker reminded us, “is one of the very few institutions . . . that is not nationalistic in its worldview” and, at its best, “brings together” all kinds of people and “unites them in a common purpose.” more> https://goo.gl/QvrBNF

Investing in the next generation

A bottom-up approach to creating better outcomes for children and youth
By Bruce Katz and Ross Tilchin – The American dream is built on the promise of upward social mobility. Over the course of the past 30 years, the vast majority of our population has seen mobility rates stagnate.1 For too many, the American dream has stalled.

Making greater and more effective investments in children and youth will be the best way to improve social mobility throughout the nation. Research has demonstrated the positive long-term effects of providing a specific set of coordinated interventions from “cradle to career.” Despite the conclusive evidence, our nation has been unable to provide those in need with access to the right kinds of services.

The time to act is now. The question is, who will lead the effort to expand these proven strategies? Over the past decade, it has become apparent that we cannot rely upon the federal government or the states. Washington and many state governments have been hijacked by partisanship, leading to paralysis on or hostility toward many of the policies and interventions necessary for improving outcomes for children and youth.

Locally driven approaches to investing in children and youth are a part of a larger national trend. Over the past decade or so, cities and metropolitan areas have risen to the forefront of national problem solving across a wide range of policy areas. more> https://goo.gl/pj8f25

Updates from Ciena

Future of 5G
By Susan Friedman, Brian Lavallée – 5G is coming, and with it comes the expectation of wireless speeds that are 100X or more what we experience today with 4G. In fact, one of the goals of 5G is to achieve maximum download speeds of 10 Gbps per user. This influx of traffic won’t come without a cost to the underlying networks that support it.

To succeed, mobile network operators (MNOs) will need more than just a new radio access network, they will also need fiber—and lots of it – to manage the massive increase in bandwidth that will come as billions more users, both human and machine, join the network.

5G is expected to be deployed strategically in different locations, especially in the early days. If consumers are expecting all 3G and 4G networks to be replaced with 5G, they’ll be disappointed. 5G is expected to complement 3G/4G where it makes sense. And depending on where service providers believe applications and use cases will be most lucrative, they can roll out speeds of up to 10 Gb/s.

This means if you’re in a rural community, chances are you probably won’t get 5G in the early days. In cities and metro areas you’ll see potential applications like enhanced mobile broadband, self-driving cars, video broadcast services, and other use cases that will require high-bandwidth and/or low-latency. So, service providers will deploy 5G in geographic areas where it makes economic sense. more> https://goo.gl/kmxQSs

Updates from GE

Sea Change: GE’s French Wind Turbine Factory Will Power Germany’s Renewables Revolution
By Tomas Kellner – GE is a relative newcomer to offshore wind. The company explored the field a decade ago and returned to the industry in 2015, when it acquired the energy assets of Alstom, and built its first wind farm in Long Island Sound near Block Island, Rhode Island, last year. As the inaugural offshore wind farm in the United States, the project made a splash even though it holds just five turbines. But Merkur, which will have 66 turbines, is a much bigger beast. “This one is special,” says Pascal Girault, who runs the Saint-Nazaire plant. “Everything is big.”

Girault spent the early part of his career managing supply chains for the car industry, but ramping up production for Merkur is no Sunday drive. Workers in Saint-Nazaire make generators and assemble nacelles for the 6-megawatt GE Haliade turbine. The nacelle is the casing on top of the tower that shelters the generator and other equipment. It includes some 30,000 components.

Adding to the task’s complexity, the composite blades for the machines’ 150-meter-diameter rotors come from GE’s LM Wind Power factory in Spain. The steel segments for the tower are being made in Germany and China. U.S. and European companies supply electronics and mechanical components for the converter and generator. “The scale and the speed of the project are challenging,” Girault says. more> https://goo.gl/GSScqV

These 5 Countries Are Killing It in the Battle Against Climate Change

By Raya Bidshahri – When it comes to climate change, government leaders and politicians must begin to think beyond their term limits and lifetimes. They must ask themselves not how they can serve their voters, but rather how they can contribute to our species’ progress. They must think beyond the short term economic benefits of fossil fuels, and consider the long term costs to our planet.

Climate change is considered one of the greatest threats to our species. If current trends continue, we can expect an increase in frequency of extreme weather events like floods, droughts and heat waves. All of these pose a threat to crops, biodiversity, freshwater supplies and above all, human life.

Here are examples of a few countries leading the way.

Denmark: Considered the most climate-friendly country in the world, Denmark is on the path to be completely independent of fossil fuels by 2050.

China: Home to the world’s biggest solar farm, China is the world’s biggest investor in domestic solar energy and is also expanding its investments in renewable energies overseas.

France: Thanks to the production of nuclear energy, representing 80 percent of nationwide energy production, France has already reduced its greenhouse gas emissions.

India: The nation is on the path to becoming the third-largest solar market in the world. Solar power has become cheaper than coal in India.

Sweden: Sweden has passed a law that obliges the government to cut all greenhouse emissions by 2045. With more than half of its energy coming from renewable sources and a very successful recycling program, the country leads many initiatives on climate change. more> https://goo.gl/PPrn3b

Updates from Autodesk

Autodesk Highlights Next-Gen Storytelling & Collaboration Tools at SIGGRAPH 2017
Autodesk – Leading up to SIGGRAPH 2017, Autodesk released a series of updates for its media and entertainment tools, including Autodesk Media & Entertainment Collection, Autodesk Maya, Shotgun, Arnold, Autodesk 3ds Max, and Autodesk Flame. Engineered to streamline and accelerate production on films, TV shows, games and immersive experiences, the new releases include improvements and user-requested enhancements that connect creative workflows and teams, helping them bring engaging stories to life for a worldwide audience.

“The continued growth of AR and VR and steady flow of new productions from Netflix, Amazon and others, mean animation and VFX houses are in more demand than ever. We’re focused on helping our customers create, connect and compute faster and more efficiently so they can balance their increasing project loads with tighter schedules and budgets,” Chris Bradshaw, Senior Vice President, Media & Entertainment, Autodesk, stated. “Everything we’re showing at SIGGRAPH streamlines production and equips artists with the tools to handle nearly any creative scenario.” more> cadinnovation.com

The Wealth of Humans: Work, Power, And Status In The Twenty-first Century

BOOK REVIEW

The Wealth of Humans: Work, Power, and Status in the Twenty-first Century, Author: Ryan Avent.

By Ryan Avent – The digital revolution actually is probably going to be as transformative as the industrial revolution and the big technologies like electricity and steam that we saw then were. I think this transformation has already begun, and ironically, the evidence of that is in the struggles that we’re seeing across lots of countries that workers are facing in terms of limited growth in wages, in terms of rising inequality.

What my book tries to point out though is that in fact the biggest effect is not going to be mass unemployment. The biggest effect of the digital revolution is not going to be massive numbers of workers who just can’t find any work; it’ll be that the work they find ends up being very low-paying, because the displacement effect of these new technologies is so great, and the economy is asked to absorb so many new workers, that that’s just going to put an incredible amount of downward pressure on wages. That’s the real short-run challenge, I think.

.. The difficulty I think, again, comes in deciding who is entitled to a share of that ownership. If you’re socialising the gains, is that limited to citizens of the country, and then are any immigrant workers second-class citizens? If you don’t limit it, then suddenly you probably have social pressure to shut out immigrants, and then that leaves people on the outside of the country all the poorer. more> https://goo.gl/1iz2EU

Why a Consumption Tax May not Make any Sense at All

By Steve Roth – You often hear calls out there — mostly from Right economists but also from some on the Left — for a consumption tax in the U.S. As presented, it’s a super-simple idea: tally your income, subtract your saving, and what’s left is your consumption. You pay taxes on that.

We want to encourage thrifty saving and discourage profligate consumption, so what’s not to like?

Start with a simple pared-down household. The only accounting complication is that they own a house.

How much did this household “save”? Should the interest payments count as consumption? The principal payments almost certainly should not. But what about home maintenance? A new paint job increases your home’s asset value. Should you depreciate that asset value over some years? Or say you buy new appliances for your kitchen: You’re cash out of pocket, but your home is worth more. Are those purchases “consumption”?

This notion of some simple tally of your “saving” starts to look more complicated.

The tuition line raises a particularly vexing question, and brings us back to the second question: what economic effects would we see from a consumption tax, under various accounting and taxation rules? Clearly, if you tax tuition, you discourage education.

And consider more-prosperous families paying for private school. Are those families “consuming” more education than public-school families? Those households would be especially hard hit if tuition counts as taxable consumption — as would those private schools. Is that A Good Thing? more> https://goo.gl/LZSRZd

Away from Oil: A New Approach

By Basil Oberholzer – Two main problems arise from the connections between monetary policy, financial markets and the oil market: the first is financial and economic instability caused by oil price volatility. The second is an environmental problem: a lower oil price inevitably means more oil consumption. This is a threat to the world climate.

Is there a joint answer to these problems? There is. While hitherto existing policy propositions like futures market regulation or a tax on fossil energy face some advantages and disadvantages, they are not able to deal with both the economic instability and the environmental problem at the same time. What is proposed here is a combination of monetary and fiscal policy. Let’s call it the oil price targeting system.

First, to achieve economic stability in the oil market, a stable oil price is needed. Second, to reduce oil consumption, the oil price should be increasing. So, let us imagine that the oil price moves on a stable and continuously rising path in order to fulfill both conditions. To implement this, the oil price has to be determined exogenously. Due to price exogeneity, speculative attacks cannot have any influence on the price and bubbles cannot emerge anymore. The oil price target can be realized by monetary policy by means of purchases and sales of oil futures. Since the central bank has unlimited power to exert demand in the market, it can basically move the oil price wherever it wants. more> https://goo.gl/eUh85j

Quantum Information: Changing the Rules of the Game

By Carl Miller – In the early 20th century, physicists found things going on at the subatomic level that were very hard to explain. Basic ideas of what it means to be in a “position” and “state” were called into question.

In my everyday life, I can put my car key on the kitchen counter, or I can leave it in my pocket, but I can’t do both. I may forget where I put it afterward, but unless one of my cats got to it, it’s still in one place or the other.

At the subatomic scale, things are … different. A key that behaved according to quantum rules could be both in my pocket and on the counter at the same time. And when I check to see where it is, it would randomly end up in one location or the other. This is the idea of quantum superposition, and it was eventually decided that, as strange as it seems, this concept provides the right way to explain the results of certain experiments.

Going further, two particles can be linked, or “entangled,” in a superposed state, which means that observations of the two will always agree, no matter how far apart they happen to be. more> https://goo.gl/CJp8Za