Tag Archives: Leadership

Rex Tillerson and the Unraveling of the State Department

With an isolated leader, a demoralized diplomatic corps and a president dismantling international relations one tweet at a time, American foreign policy is adrift in the world.
By Jason Zengerle – Tillerson was originally recommended to the Trump team by the former Defense Secretary Robert Gates and the former Secretary of State Condoleezza Rice, both mandarins of the Republican foreign-policy establishment who had consulted for Exxon Mobil, on the grounds that his vast knowledge of foreign governments and their leaders made him a perfect fit for the job. “The expectation was that Tillerson would be a grown-up and provide ballast,” says a 30-year veteran of the Foreign Service, “that he was someone who believed in America being the glue that created global stability and would be interested in upholding the world order as we have it.”

In a few short months, Tillerson had rid the State Department of much of its last several decades of diplomatic experience, though it was not really clear to what end.

The new secretary of state, it soon became evident, had an easier time firing people than hiring them — a consequence of the election that delivered him to Foggy Bottom.

In the past few months, the pace of nominations for the State Department has picked up. But even so, few of the nominees have qualifications that match those of their predecessors. more> https://goo.gl/qE5XZS

Updates from Chicago Booth

Should we stop the ‘revolving door’?
The movement of people between industry and government is a political talking point, but how big a deal is it? Research is starting to quantify the extent of the problem.
By Brian Wallheimer – When US President Donald Trump took office, addressing the “revolving door”—the movement of people between industry and government—ranked high on his agenda. In his second week, with members of his staff steps away, he signed new ethics rules while saying, “Most of the people standing behind me will not be able to go to work or do anything adverse to our wonderful country. Five-year ban. It’s a two-year ban now and it’s got full of loopholes.”

But the revolving door proved too irresistible not too push. The Trump administration hired former industry lobbyists for prominent jobs, and several cabinet positions came straight from corporate America. Even before Trump had a chance to sign the ethics order, which critics complained had its own loopholes, his former campaign managers had set up a lobbying shop.

Behind the revolving door is the idea of regulatory capture. Forty-six years ago, the late George Stigler described how a regulatory body tasked with protecting the public interest would ultimately be “captured” to serve the interests of the regulated industry.

Chicago Booth’s Sam Peltzman expanded on this theory, arguing that regulations come about through a balancing act involving politicians and interest groups, which can be companies or other affected parties. more> https://goo.gl/e2yyWn

Related>

Why Cities Shouldn’t Bend Over Backwards for Corporations

By Rick Paulas – In early 2010, the city of Topeka, Kansas, was in trouble. The city’s unemployment rate had risen to unprecedented levels. Some in the mayor’s office thought that a lack of affordable broadband Internet access wasn’t helping. Mayor Bill Bunten tried to remedy the situation by changing the city’s name to Google.

“There was a feeding frenzy, so Google was in the position to say, ‘If we don’t get what we want, we’ll go elsewhere,'” says Tony Grubesic, a professor of policy analytics at Arizona State University who has studied Google Fiber’s effects on Kansas City. “Google was in the driver’s seat.”

Corporations pitting cities against one another to get the best deals won’t stop anytime soon. Cities are currently courting Amazon in hopes of becoming the site of the company’s second headquarters.

Tucson sent a 21-foot cactus to Amazon chief executive officer Jeff Bezos; Birmingham built huge Amazon boxes downtown; Stonecrest, Georgia, voted to give the corporation 345 acres that it’s dubbed “the city of Amazon“; and New Jersey is trying to push through a $5 billion tax break. more> https://goo.gl/Yxj2sA

Five reasons why “downtown universities” matter for economic growth

By Scott Andes – The value of the nation’s higher education system is usually expressed as just that—education. But while the educational mission of America’s colleges and universities is critical, often missed or neglected by local and national policymakers is the value of these institutions to economic growth. This is particularly true for those universities located near major employment neighborhoods of large cities.

Here are five reasons these universities matter for economic growth:

  1. Research universities are essential for innovation, and innovation is essential for economic growth.
  2. Universities located in urban areas produce more patents, corporate partnerships, and startups.
  3. Universities located within innovation districts build on existing urban assets.
  4. Downtown universities specialize in research.
  5. Downtown universities still have a lot of room to improve their outcomes.

As the country searches for new sources of innovation, jobs, and growth, policy makers should consider how some of its oldest institutions—research universities—are best positioned for the new economy. more> https://goo.gl/nXEPk4

Are Internet companies complicit in promoting hateful and harmful content?

By Hany Farid – In 2016, Facebook, Google, Microsoft, and Twitter announced that they would work together to develop new technology to quickly identify and remove extremism-related content from their platforms. Despite some progress, serious problems remain.

First, we need a fast and effective method to remove content. Once content has been identified, reported, and determined to be illegal or in violation of terms of service, it should be immediately removed (Prime Minister Theresa May is calling for a maximum of two hours from notification to take-down).

Fourth, we need to invest in human resources. While advances in machine learning hold promise, these technologies – as technology companies will admit – are not yet nearly accurate enough to operate across the breadth and depth of the internet. There are more than a billion uploads to Facebook each day and 300 hours of video uploaded to YouTube each minute of the day.

This means that any machine-learning based solution will have to be paired with a significant team of human analysts that can resolve complex and often subtle issues of intent and meaning that are still out of reach of even the most sophisticated machine learning solutions. more> https://goo.gl/X2ACdL

It’s Time to Rewrite the Rules of Our Economy

By Tim O’Reilly – Business leaders making decisions to outsource jobs to low-wage countries or to replace workers with machines, or politicians who insist that it is “the market” that makes them unable to require companies to pay a living wage, rely on the defense that they are only following the laws of economics. But the things economists study are not natural phenomena like the laws of motion uncovered by Kepler and Newton.

The political convulsions we’ve seen in the United Kingdom and in the United States are a testament to the difficulties we face. We are heading into a very risky time. Rising global inequality is triggering a political backlash that could lead to profound destabilization of both society and the economy. The problem is that in our free market economy, we found a way to make society as a whole far richer, but the benefits are unevenly distributed. Some people are far better off, while others are worse off.

Why do we have lower taxes on capital when it is so abundant that much of it is sitting on the sidelines rather than being put to work in our economy?

Why do we tax labor income more highly when one of the problems in our economy is lack of aggregate consumer demand because ordinary people don’t have money in their pockets? more> https://goo.gl/2DioyZ

The Coming Software Apocalypse

By James Somers – “When we had electromechanical systems, we used to be able to test them exhaustively,” says Nancy Leveson, a professor of aeronautics and astronautics at the Massachusetts Institute of Technology who has been studying software safety for 35 years. She became known for her report on the Therac-25, a radiation-therapy machine that killed six patients because of a software error. “We used to be able to think through all the things it could do, all the states it could get into.

Software is different. Just by editing the text in a file somewhere, the same hunk of silicon can become an autopilot or an inventory-control system. This flexibility is software’s miracle, and its curse. Because it can be changed cheaply, software is constantly changed; and because it’s unmoored from anything physical—a program that is a thousand times more complex than another takes up the same actual space—it tends to grow without bound. “The problem,” Leveson wrote in a book, “is that we are attempting to build systems that are beyond our ability to intellectually manage.” more> https://goo.gl/XSu4jU

When Even the Simple Stuff Is a Crisis

By Robert Schlesinger – What’s going on? If everyone agrees on these successful programs, why are they stuck in legislative purgatory?

The proximate cause is that the Republican majority got too distracted with its endless, fruitless attempts to roll back the Affordable Care Act. That consumed their attention through the year and very specifically in the crunch time during which the final deals should have been cut on basically noncontroversial legislation like renewing funding for CHIP and community health centers. But that went by the boards when the GOP dropped everything to push the late, unlamented, half-baked Graham-Cassidy bill.

Uncertainty abounds. And again, we’re talking about noncontroversial stuff here, which speaks to a larger problem with the political system. The failure of this Congress to understand “the need to act responsibly, to reauthorize needed programs without catastrophic disruption … is simply striking,” says the American Enterprise Institute’s Norm Ornstein, who has written extensively on GOP dysfunction (most recently “One Nation After Trump,” with Thomas Mann and E.J. Dionne). more> https://goo.gl/1xQG84

When Wall Street Owns Main Street — Literally

BOOK REVIEW

Makers & Takers: How Wall Street Destroyed Main Street, Author: Rana Foroohar.

By Rana Foroohar – Made up primarily of San Bernardino and Riverside counties, the Inland Empire was at the heart of the subprime mortgage crisis and has yet to fully recover.

In the early 2000s, predatory lenders flocked to the area, offering dicey deals to the largely minority and lower-middle-class white populations who, unable to afford housing on the coast, still craved the American Dream of homeownership. It ended, as it did in so many neighborhoods and cities across America, in tears and massive foreclosures, turning entire cities into ghost towns of derelict properties.

Private equity funds like Blackstone are giant financial institutions that operate largely outside the scrutiny of governmental regulation, since they are officially designated “nonbanks” or “shadow banks”—never mind that many of them are bigger than the better-known institutions that are subject to regulation.

Most people rightly associate private equity with offshore bank accounts (remember Mitt Romney and Bain Capital?), big corporate buyouts in which formerly healthy firms are loaded up with debt and stripped of their assets, mass layoffs, and an utter lack of transparency in their financial dealings.

But these days, the big news about private equity is that it is at the heart of the country’s housing rebound.

Private equity investors have become the single largest group of buyers in the residential housing market, purchasing $20 billion worth of steeply discounted properties between 2012 and 2014 alone and reaping huge rewards as housing prices have slowly risen from their troughs. more> https://goo.gl/P6fcNA

5 Mindsets to Bring Positive Change Across Society

By Raya Bidshahri – To contribute to human progress, it is not enough to be intelligent, resourceful, or well-connected. Those are all factors that play a significant role but aren’t the true driving forces of disruptive innovation. Stimulating positive change at civilization level also requires certain mindsets and ways of thinking.

Here are five mindsets that will allow us to leave a positive mark on humanity.

  1. Curiosity and Critical Thinking
    One of the tragedies of our education system is that it fails to nurture the childlike sense of wonder that we are all born with.
  2. Intelligent Optimism
    Nothing productive will come from blind optimism and ignorance of some of the brutal realities of our world.
  3. Risk-taking
    Paving a new way forward for humanity comes at a cost. More often than not, executing a radically disruptive idea is a risk.
  4. Moonshot Thinking
    Instead of looking to make a 10 percent gain or improvement in a current product or idea, moonshot thinking involves aiming for a 10x improvement of the status quo.
  5. Cosmic Perspective
    We’ve all heard of “thinking big” or ‘big-picture thinking.” Moving beyond that involves having a cosmic perspective.

It’s about asking the right questions, being intelligently optimistic about the future, taking a risk with a moonshot, and maintaining a cosmic perspective. more> https://goo.gl/V2bVjb