June 1, 2016
Since we’re in the midst of election season, with promises of cures for our economic woes being thrown around, this seems like a particularly appropriate time to explore what can and can’t be achieved within the laws of economics. Those laws might not work 100% of the time the way physical laws do, but they generally tend to define the range of outcomes. It’s my goal here to point out how some of the things that central banks and governments try to do – and election candidates promise to do – fly in the face of those laws. ... Let’s start with central banks’ attempts to achieve monetary stimulus. When central banks want to help economies grow, they take actions such as reducing the interest rates they charge on loans to banks or, more recently, buying assets (“quantitative easing”). In theory, both of these will add to the funds in circulation and encourage economic activity. The lower rates are, and the more money there is in circulation, the more likely people and businesses will be to borrow, spend and invest. These things will make the economy more vibrant. ... But there’s a catch. Central bankers can’t create economic progress they can only stimulate activity temporarily. ... In the long term, these things are independent of the amount of money in circulation or the rate of interest. The level of economic activity is determined by the nation’s productiveness. ... Much of what central banks do consists of making things happen today that otherwise would happen sometime in the future. ... the truth is, this “tyranny of the majority” is an unhealthy development. First, society does better when able members have strong incentive to contribute. Second, upward aspiration and mobility will be constrained when taxes become confiscatory. Finally, taxpayers aren’t necessarily powerless in the face of rising tax rates.
Ah, there you are. That didn't take too long, surely? Just a click or a tap and, if you’ve some 21st century connectivity, you landed on this page in a trice. ... But how does it work? Have you ever thought about how that cat picture actually gets from a server in Oregon to your PC in London? We’re not simply talking about the wonders of TCP/IP or pervasive Wi-Fi hotspots, though those are vitally important as well. No, we’re talking about the big infrastructure: the huge submarine cables, the vast landing sites and data centres with their massively redundant power systems, and the elephantine, labyrinthine last-mile networks that actually hook billions of us to the Internet. ... And perhaps even more importantly, as our reliance on omnipresent connectivity continues to blossom, our connected device numbers swell, and our thirst for bandwidth knows no bounds, how do we keep the Internet running? How do Verizon or Virgin reliably get 100 million bytes of data to your house every second, all day every day?
Priebus’s mission at the RNC has been to manufacture some luck: to rebuild a party that lost the popular vote in five of the last six presidential elections and lost power completely with Barack Obama’s 2008 victory. While Republicans traded recriminations after Mitt Romney’s loss in 2012, Priebus announced that the RNC would conduct a rigorous postmortem of all that had gone wrong and figure out how to refashion the party for the 21st century. ... The key to revival, the authors concluded, was to put a kinder, gentler gloss on the old stalwart Republican ideals (free trade, small government) while reforming immigration laws to entice nonwhite voters who were tuning the party out. ... By obliterating Jeb, Trump redefined the Republican Party’s identity off the top of his head. And his vision of the GOP’s future is in many ways the diametrical opposite of what Priebus and the party Establishment had imagined. ... A Republican Party that can’t stop Trump’s nomination may be no better able to resist his influence. If you’re Priebus, that’s a grim thought, because you’ve devoted five years, hundreds of millions of dollars, and every ounce of your energy to pushing your party in the other direction.
Much has been made of Israel’s status as “Startup Nation.” Not even the size of New Jersey, with a population smaller than New York City’s, Israel is home to more Nasdaq-listed companies than any country except the U.S. and China. On a per capita basis Israel boasts more venture capital, more startups and more scientists and tech professionals than any other country in the world. ... To understand these dizzying numbers, you need to understand the mysterious Unit 8200. While no one has ever disclosed how large it is, FORBES estimates the unit has, at any given time, 5,000 people assigned to it, all mandated to deploy the latest technology, often in life-or-death situations, with surprisingly little guidance. ... what’s in 8200′s special sauce? After speaking with more than two dozen 8200 veterans, we narrowed it down to five things that, taken together, provide a pretty good blueprint for Startup Nation–and a pretty powerful cheat sheet on how to launch a successful tech startup. ... Unit 8200 predates Israel’s war of independence in 1948. Starting in the British Mandate period of the 1930s, what was then known as Shin Mem 2 (an acronym of the Hebrew phrase for information service) bugged phone lines of Arab tribes to learn about planned riots. In 1948 it was renamed 515–a random number so that it could be discussed without using words. In 1956, the year of the second war between Israel and its Arab neighbors, the name was changed again, to 848. ... Unit 8200′s turning point came when Israel’s did, in 1973, after the Yom Kippur War ... That moment, which led to national soul-searching, resulted in a reboot. The unit would then be known as another random number, 8200. And it would become completely departmentalized, so that various teams in the unit wouldn’t know what other teams were doing. Each squad, like a startup, was pretty much on its own.
Summer in New York City means ice cream trucks: bell-jingling fleets of pleasure craft festooned with pictures of perfectly swirled desserts and beaming children, delivering frozen providence into grateful sweaty hands. ... But behind those cheery facades simmer turf wars — long-running, occasionally bloody feuds between ice cream vendors for control of the city’s prime selling spots. ... New York Ice Cream, staffed by drivers who used to cover Midtown Manhattan for Mister Softee, has had the area locked down for at least a year, Mister Softee said. The renegade is enforcing its dominance with threats and intimidation that sometimes get physical.