Wednesday, October 8, 2014

After the Walfare State

After the Welfare State
After the Welfare State is a compilation of essays that address the problem with government intervention and assistance in the US and other countries like Italy and Greece that are in a much dire situation today. Besides explaining how it has failed the people, Tom Palmer's selection explain the origin of the Welfare as a control mechanism since the Bismark era.

The last section analyzes different programs and their costs and effects, as well as some evidence that they are not necessary nor sufficient.

The books is oriented to young idealists who are honestly concern with injustice and poorness. Young people who unfortunately believe that the government has a role in alleviating this suffering, yet don't understand how the transfer of wealth is un-ethical and ineffective.

Being collection of essays the book lacks flow but is a good starting point to address this subject. The format allows to organize discussion group that can be enriched with further readings and research.

My rating: 3 of 5 stars

Tuesday, August 5, 2014

Only the Paranoid Survive

Andy Grove published Only the Paranoid Survive in 1996, a year before Clayton Christensen's "The Innovators Dilemma". Reading Grove is a description of what it meant to be inside an Strategic Inflection Point (Disruptions) and survive. His advice for entrepreneurs, managers, and professionals is as current as it was almost 20 years ago. 

Another gold mint in the book is Grove's vision of the future. Now that the future was revealed we can appreciate how Intel leadership prepare and succeed. 20 yrs ago lots of people didn't know what the internet was, the iPhone and the smartphone revolution occurred 10 yrs later and the internet of things is in the making. Yet Grove anticipated how this changes will affect the industry.

Finally Grove offers the same advice to individuals to manage their careers. Like Reid Hoffman's recent concept of "Permanent Beta", Grove anticipated the end of the life long employment and the need to look for "Career Inflection Points" adapting the same rules he followed in Intel

Monday, June 23, 2014

In defense of Global Capitalism

Johan Norberg's defense of Capitalism is not a new book but brings common sense in times of Thomas Piketty's fifteen minutes of fame. I have not read Piketty yet but all the debate around his work seems to defy evidence of how millions of people are moving out of poverty year after year thanks to practices close to Capitalism than the Marxism that he defends. 

Johan Norberg showed in In Defense of Global Capitalism, over 10 years before Piketty, case after case how solutions based on the respect of private property and classical liberal ideas have improve the lives of people all over the world. Indeed Norberg argues that more could be done if practices like immigration control and imposition of first world practices on third world were stopped. If Developed countries can care for the environment and reduce child labor is because they have achieved greater success, if we want developing countries to do the same we have to pull them quick instead of hold them back with additional burden.

My rating: 4 of 5 stars

Sunday, June 22, 2014

Free to Learn

In Free to Learn, Peter Gray brings another piece to the puzzle of Education. From his anthropological point of view he presents the case of how Play is the natural learning process while school is an institution design to control and alienate children. 

Overall Gray challenges parents to acknowledge that the system is destroying their children and that once the accept that they don´t want this for their children they can't continue supporting the current rotten system. Gray invites parents to try different alternatives, to trust their kids and create an environment that support their creativity and interaction.

I disagree on some contextual elements like his description of the Industrial Revolution. Nonetheless his message raises more questions and avenues to explore and research.

My rating 5 out of 5.

Tuesday, May 13, 2014

The Zero Marginal Cost Society

Interesting question with an ignorant answer.

The first part of The Zero Marginal Cost Society  is quite interesting. Indeed it is intriguing that so many industries are rapidly growing offering free or almost free products and services. How can an economy sustain if this phenomena advances.

More and more people can set their conditions about job and companies, they no longer are job takers and employees for life. Probably this is possible because people in advanced societies don't have to worry about where to live, what to wear, or what to eat. As Maslow and others have suggested once basic needs are covered without uncertainty people can focus more on higher order ones.

So far, Jeremy Rifkin presents an intellectual challenge. Artist giving away their job, free Education in MOOCs, Open Source software, etc.

In the second part Rifkin addresses the causes and obstacles and here I found way too many contradictions, misrepresentation of ideas like Capitalism and biased solutions. For instance Rifkin criticize the patent granted to genome labs and their market drive. Yet later he praises how low cost has ADN sequencing became.

Rifkin calls for the abolition of private property while promotes collaboration. How can someone collaborate in society if that person has nothing to offer, a private asset? For instance he mentions shared spare rooms as an alternative to expensive hotels. How can someone share a room of someone else? Or is someone really collaborating by offering a communal room?

Another subject that Rifkin elaborates is the idea of the Commons. He uses Orstrom's theory but misses the point that the commons need a ground of trust and supervision. How can such model become a world wide system is not answered and seems unbelievable.

As Ludwing Von Mises proved many years ago, Socialism is impossible without the economic calculation, specially on the means of production. In Rifkin's world the private property of means of production disappears. How can production be prioritized, who will give maintenance to the huge capital investments that allow the high productivity needed to achieve near zero marginal cost? how innovation will be sustained? None of these are addressed in the book.

Finally I would say that Rifkin identified how many of the cases he states as outliers are indeed reactions to the burden of government regulations and controls. From medicine, to building, energy, transportation, etc. in most of his cases the adversary is some form of government regulation, privilege, etc. Rifkin acknowledges the evil in government actions. Yet his conclusion is to give more power to governments instead of more private solutions.

In summary Rifkin's ideas can be summarized as "Don't bite the hand that feeds you".

My rating: 3 of 5 stars

Monday, May 5, 2014

Mindset: The New Psychology Of Success

Mindset: The New Psychology Of Success
Carol Dweck work proposes a theory of the difference between those who succeed and those who didn't. As the title of the book reveals it is all about Mindset. Dweck work is interesting, not sure of how scientifically thorough since the book is mainly anecdotal, yet his theory makes perfect sense and is easy to relate to personal life.

After covering the the ground for her theory, Dweck offers specific advice for sports, business, personal relationships, teachers and parents, and individuals. Her ideas are easy to understand, somehow difficult to implement since they require a change of habits, and worth trying.

Dweck ideas complement other frameworks like Angela Dockworth and Paul Tough on Grit and others on Resilience.

My rating: 4 of 5 stars

Saturday, April 12, 2014

The Capitalist and the Entrepreneur

Sometimes when I read entrepreneurial theories I wonder if academics speak to real entrepreneurs. Peter Klein book hit the nail in the head, from my personal experience in business. He explains the role of the entrepreneur and the markets, and why only a free system is fertile soil for entrepreneurial ventures to create real growth for society.

The Capitalist and the Entrepreneur is also relevant as it explains with great detail the principles and differences in the Austrian School of Economics. With plenty footnotes to guide the readers interest to deepen in this school of thought Klein discusses why Austrian ideas about the price theory, the role of capital allocation, etc. divert from mainstream economics that reduce the entrepreneur and the firm to an abstract black box. Using the ideas of the AE Klein portraits a dynamic and living organization with the entrepreneur, managers, people and resources.

Since the interest on entrepreneurship is on the rise, Klein's book should go hand in the promotion of these ideas.

My rating: 4 of 5 stars