December 18, 2014
Like the population, the business sector of the U.S. economy is aging. Our research shows a secular increase in the share of economic activity occurring in older firms—a trend that has occurred in every state and metropolitan area, in every firm size category, and in each broad industrial sector. ... The share of firms aged 16 years or more was 23 percent in 1992, but leaped to 34 percent by 2011—an increase of 50 percent in two decades. The share of private-sector workers employed in these mature firms increased from 60 percent to 72 percent during the same period. ... Perhaps most startling, we find that employment and firm shares declined for every other firm age group during this period. We explore three potential contributing factors driving the increasing share of economic activity occurring in older firms, and find that a secular decline in entrepreneurship is playing a major role. We also believe that increasing early-stage firm failure rates might be a growing factor. ... We are unable to find strong evidence of a direct link between business consolidation and an aging firm structure. Though we document a clear rise in consolidation during the last few decades, it doesn’t appear to be a major contributor to business aging directly—which has been occurring across all firm size classes, and the most in the smallest of businesses. ...This leaves some questions unanswered, but it clearly establishes that whatever the reason, it has become increasingly advantageous to be an incumbent, particularly an entrenched one, and less advantageous to be a new entrant. ... The trends described here raise some cause for concern in our view. Holding all factors constant, we’d expect an economy with greater concentration in older firms and less in younger firms to exhibit lower productivity, potentially less innovation, and possibly fewer new jobs created than would otherwise be the case.
Mark your calendar: January 1, 2020. ... As this future year unfolds, the gap between how much cocoa the world wants to consume and how much it can produce will swell to 1 million metric tons, according to Mars Inc. and Barry Callebaut AG, the world’s largest chocolate maker. By 2030, the predicted shortfall will grow to 2 million tons. And so on. ... Because of disease, drought, rapacious new markets and the displacement of cacao by more-productive crops such as corn and rubber, demand is expected to outstrip supply by an additional 1 million tons every decade for the foreseeable future. Here, now, as you read these words, the world is running out of chocolate ... Last year, we again consumed more cocoa than we were able to produce. This year, despite an unexpected bumper crop, supply barely kept pace with the recent upswing in demand. From 1993 to 2007, the price of cocoa averaged $1,465 a ton; during the subsequent six years, the average was $2,736 -- an 87 percent increase. ... The world’s most universally delectable treat has begun a journey from being very loved and very common, like beer, to being very loved and a good deal less common, like Bordeaux. Unfortunately, that is the least of the confection’s problems. ... Efforts are under way to make chocolate cheap and abundant -- in the process inadvertently rendering it as tasteless as today’s store-bought tomatoes, yet another food, along with chicken and strawberries, that went from flavorful to forgettable on the road to plenitude.
Most gamblers were still asleep, and the gondoliers had yet to pole their way down the ersatz canal in front of the Venetian casino on the Las Vegas Strip. But early on the chilly morning of Feb. 10, just above the casino floor, the offices of the world’s largest gaming company were gripped by chaos. Computers were flatlining, e-mail was down, most phones didn’t work, and several of the technology systems that help run the $14 billion operation had sputtered to a halt. ... Computer engineers at Las Vegas Sands Corp. (LVS) raced to figure out what was happening. Within an hour, they had a diagnosis: Sands was under a withering cyber attack. PCs and servers were shutting down in a cascading IT catastrophe, with many of their hard drives wiped clean. The company’s technical staff had never seen anything like it. ... The people who make the company work, from accountants to marketing managers, were staring at blank screens. “Hundreds of people were calling IT to tell them their computers weren’t working,” says James Pfeiffer, who worked in Sands’ risk-management department in Las Vegas at the time. Most people, he recalls, switched over to their cell phones and personal e-mail accounts to communicate with co-workers. Numerous systems were felled, including those that run the loyalty rewards plans for Sands customers; programs that monitor the performance and payout of slot machines and table games at Sands’ U.S. casinos; and a multimillion-dollar storage system. ... In an effort to save as many machines as they could, IT staffers scrambled across the casino floors of Sands’ Vegas properties—the Venetian and its sister hotel, the Palazzo—ripping network cords out of every functioning computer they could find, including PCs used by pit bosses to track gamblers and kiosks where slots players cash in their tickets. ... This was no Ocean’s Eleven. The hackers were not trying to empty a vault of cash, nor were they after customer credit card data, as in recent attacks on Target (TGT), Neiman Marcus, and Home Depot (HD). This was personal. The perpetrators wanted to punish the company, or, more precisely, its chief executive officer and majority owner, the billionaire Sheldon Adelson. Although confirming their conjectures would take some time, executives suspected almost immediately the assault was coming from Iran.
To conduct business, shell companies like Drex need a registered agent, sometimes an attorney, who files the required incorporation papers and whose office usually serves as the shell's address. This process creates a layer between the shell and its owner, especially if the dummy company is filed in a secrecy haven where ownership information is guarded behind an impenetrable wall of laws and regulations. In Makhlouf's case—and, I discovered, in the case of various other crooked businessmen and international gangsters—the organization that helped incorporate his shell company and shield it from international scrutiny was a law firm called Mossack Fonseca, which had served as Drex's registered agent from July 4, 2000, to late 2011. ... Founded in Panama in 1977 by German-born Jurgen Mossack and a Panamanian man named Ramón Fonseca, a vice president of the country's current ruling party, it later added a third director, Swiss lawyer Christoph Zollinger. Since the 70s the law firm has expanded operations and now works with affiliated offices in 44 countries, including the Bahamas, Cyprus, Hong Kong, Switzerland, Brazil, Jersey, Luxembourg, the British Virgin Islands, and—perhaps most troubling—the US, specifically the states of Wyoming, Florida, and Nevada. ... Mossack Fonseca, of course, is not alone in setting up shell companies used by the world's crooks and tax evaders. Across the globe, there are vast numbers of competing firms ... If shell companies are getaway cars for bank robbers, then Mossack Fonseca may be the world's shadiest car dealership.
It's a cloudy morning in August 2014 and, on an industrial estate on the outskirts of Avonmouth near Bristol, a team of engineers is at work on Thrust's successor. The car, Bloodhound SSC, marks a bold attempt to set a new Land Speed Record of 1,609kph (1,000mph) by 2016. If successful, it will not only mark the biggest jump in land-speed history, but will also be the culmination of a decade-long experiment in education and open engineering. ... "People ask me if Andy has an ejector seat," Chapman says, running his hand over the carbon-fibre monocoque that forms the car's cockpit and air intake for the jet engine. "He doesn't, because nobody has designed an ejector seat that can operate at Mach 1.4. If you ejected into the jet stream at 1,000mph, around 12 tonnes of force per square metre will hit you. This is the safest place for him to be." ... he MoD granted Bloodhound three EJ-200 test engines used for the Eurofighter development programme. As a result, 5,670 British secondary schools are now linked to the Bloodhound Education Project. A dedicated team runs workshops in which children can learn about physics and the car's engineering: Heathland School in Middlesex has managed to get a model rocket car to 462kph. Around the same time, Noble also decided to make Bloodhound open source, allowing anyone to download and critique the car's design plans. And, during the record attempts in 2015 and 2016, 12 cameras and more than 300 mounted sensors will stream live footage and data from the car, which anyone can follow online.
It’s easy to dismiss emoji. They are, at first glance, ridiculous. They are a small invasive cartoon army of faces and vehicles and flags and food and symbols trying to topple the millennia-long reign of words. Emoji are intended to illustrate, or in some cases replace altogether, the words we send each other digitally, whether in a text message, email, or tweet. ... And yet, if you have a smartphone, emoji are now available to you as an optional written language, just like any global language, such as Arabic and Catalan and Cherokee and Tamil and Tibetan and English. You’ll find an emoji keyboard on your iPhone, nestled right between Dutch and Estonian. The current set is limited to 722 symbols—these are the ones that have been officially encoded into Unicode, which is an international programming standard that allows one operating system to recognize text from another. ... Emoji were born in a true eureka moment, from the mind of a single man: Shigetaka Kurita, an employee at the Japanese telecom company NTT Docomo. Back in the late 1990s, the company was looking for a way to distinguish its pager service from its competitors in a very tight market. Kurita hit on the idea of adding simplistic cartoon images to its messaging functions as a way to appeal to teens. The first round of what came to be called emoji—a Japanese neologism that means, more or less, “picture word”—were designed by Kurita, using a pencil and paper, as drawings on a 12-by-12-pixel grid and were inspired by pictorial Japanese sources, like manga (Japanese comic books) and kanji (Japanese characters borrowed from written Chinese).