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Javier E

Opinion | America, China and a Crisis of Trust - The New York Times - 0 views

  • some eye-popping new realities about what’s really eating away at U.S.-China relations.
  • The new, new thing has a lot to do with the increasingly important role that trust, and its absence, plays in international relations, now that so many goods and services that the United States and China sell to one another are digital, and therefore dual use — meaning they can be both a weapon and a tool.
  • In the last 23 years America has built exactly one sort-of-high-speed rail line, the Acela, serving 15 stops between Washington, D.C., and Boston. Think about that: 900 to 15.
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  • it is easy to forget how much we have in common as people. I can’t think of any major nation after the United States with more of a Protestant work ethic and naturally capitalist population than China.
  • These days, it is extremely difficult for a visiting columnist to get anyone — a senior official or a Starbucks barista — to speak on the record. It was not that way a decade ago.
  • The Communist Party’s hold is also a product of all the hard work and savings of the Chinese people, which have enabled the party and the state to build world-class infrastructure and public goods that make life for China’s middle and lower classes steadily better.
  • Beijing and Shanghai, in particular, have become very livable cities, with the air pollution largely erased and lots of new, walkable green spaces.
  • some 900 cities and towns in China are now served by high-speed rail, which makes travel to even remote communities incredibly cheap, easy and comfortable
  • Just when trust has become more important than ever between the U.S. and China, it also has become scarcer than ever. Bad trend.
  • China’s stability is a product of both an increasingly pervasive police state and a government that has steadily raised standards of living. It’s a regime that takes both absolute control and relentless nation-building seriously.
  • For an American to fly from New York’s Kennedy Airport into Beijing Capital International Airport today is to fly from an overcrowded bus terminal to a Disney-like Tomorrowland.
  • China got an early jump on A.I. in two realms — facial recognition technology and health records — because there are virtually no privacy restrictions on the government’s ability to build huge data sets for machine learning algorithms to find patterns.
  • “ChatGPT is prompting some people to ask if the U.S. is rising again, like in the 1990s,”
  • “I understand your feeling: You have been in the first place for a century, and now China is rising, and we have the potential to become the first — and that is not easy for you,” Hu said to me. But “you should not try to stop China’s development. You can’t contain China in the end. We are quite smart. And very diligent. We work very hard. And we have 1.4 billion people.”
  • Before the Trump presidency, he added: “We never thought China-U.S. relations would ever become so bad. Now we gradually accept the situation, and most Chinese people think there is no hope for better relations. We think the relationship will be worse and worse and hope that war will not break out between our two countries.”
  • A lot of people hesitated when I asked. Indeed, many would answer with some version of “I’m not sure, I just know that it’s THEIR fault.”
  • t was repeated conversations like these that got me started asking American, Chinese and Taiwanese investors, analysts and officials a question that has been nagging at me for a while: What exactly are America and China fighting about?
  • the real answer is so much deeper and more complex than just the usual one-word response — “Taiwan” — or the usual three-word response — “autocracy versus democracy.”
  • Let me try to peel back the layers. The erosion in U.S.-China relations is a result of something old and obvious — a traditional great-power rivalry between an incumbent power (us) and a rising power (China) — but with lots of new twists
  • One of the twists, though, is that this standard-issue great-power rivalry is occurring between nations that have become as economically intertwined as the strands of a DNA molecule. As a result, neither China nor America has ever had a rival quite like the other.
  • in modern times, China, like America, has never had to deal with a true economic and military peer with which it was also totally intertwined through trade and investment.
  • Another new twist, and a reason it’s hard to define exactly what we’re fighting about, has a lot to do with how this elusive issue of trust and the absence of it have suddenly assumed much greater importance in international affairs.
  • This is a byproduct of our new technological ecosystem in which more and more devices and services that we both use and trade are driven by microchips and software, and connected through data centers in the cloud and high-speed internet
  • so many more things became “dual use.” That is, technologies that can easily be converted from civilian tools to military weapons, or vice versa.
  • no one country or company can own the whole supply chain. You need the best from everywhere, and that supply chain is so tightly intertwined that each company has to trust the others intimately.
  • when we install the ability to sense, digitize, connect, process, learn, share and act into more and more things — from your GPS-enabled phone to your car to your toaster to your favorite app — they all become dual use, either weapons or tools depending on who controls the software running them and who owns the data that they spin off.
  • As long as most of what China sold us was shallow goods, we did not care as much about its political system — doubly so because it seemed for a while as if China was slowly but steadily becoming more and more integrated with the world and slightly more open and transparent every year. So, it was both easy and convenient to set aside some of our worries about the dark sides of its political system.
  • when you want to sell us ‘deep goods’ — goods that are dual use and will go deep into our homes, bedrooms, industries, chatbots and urban infrastructure — we don’t have enough trust to buy them. So, we are going to ban Huawei and instead pay more to buy our 5G telecom systems from Scandinavian companies we do trust: Ericsson and Nokia.”
  • as we’ve seen in Ukraine, a smartphone can be used by Grandma to call the grandkids or to call a Ukrainian rocket-launching unit and give it the GPS coordinates of a Russian tank in her backyard.
  • So today, the country or countries that can make the fastest, most powerful and most energy efficient microchips can make the biggest A.I. computers and dominate in economics and military affairs.
  • As more and more products and services became digitized and electrified, the microchips that powered everything became the new oil. What crude oil was to powering 19th- and 20th-century economies, microchips are for powering 21st-century economies.
  • When you ask them what is the secret that enables TSMC to make 90 percent of the world’s most advanced logic chips — while China, which speaks the same language and shares the same recent cultural history, makes zero — their answer is simple: “trust.”
  • TSMC is a semiconductor foundry, meaning it takes the designs of the most advanced computer companies in the world — Apple, Qualcomm, Nvidia, AMD and others — and turns the designs into chips that perform different processing functions
  • TSMC makes two solemn oaths to its customers: TSMC will never compete against them by designing its own chips and it will never share the designs of one of its customers with another.
  • “Our business is to serve multiple competitive clients,” Kevin Zhang, senior vice president for business development at TSMC, explained to me. “We are committed not to compete with any of them, and internally our people who serve customer A will never leak their information to customer C.”
  • But by working with so many trusted partners, TSMC leverages the partners’ steadily more complex designs to make itself better — and the better it gets, the more advanced designs it can master for its customers. This not only requires incredibly tight collaboration between TSMC and its customers, but also between TSMC and its roughly 1,000 critical local and global suppliers.
  • As the physics of chip making gets more and more extreme, “the investment from customers is getting bigger and bigger, so they have to work with us more closely to make sure they harvest as much [computing power] as they can. They have to trust you.”
  • China also has a foundry, Semiconductor Manufacturing International Corporation, which is partly state-owned. But guess what? Because no global chip designers trust SMIC with their most advanced designs, it is at least a decade behind TSMC.
  • It’s for these reasons that the erosion in U.S.-China relations goes beyond our increasingly sharp disagreements over Taiwan. It is rooted in the fact that just when trust, and its absence, became much bigger factors in international affairs and commerce, China changed its trajectory. It made itself a less trusted partner right when the most important technology for the 21st century — semiconductors — required unprecedented degrees of trust to manufacture and more and more devices and services became deep and dual use.
  • when American trade officials said: “Hey, you need to live up to your W.T.O. commitments to restrict state-funding of industries,” China basically said: “Why should we live by your interpretation of the rules? We are now big enough to make our own interpretations. We’re too big; you’re too late.”
  • Combined with China’s failure to come clean on what it knew about the origins of Covid-19, its crackdown on democratic freedoms in Hong Kong and on the Uyghur Muslim minority in Xinjiang, its aggressive moves to lay claim to the South China Sea, its increasing saber rattling toward Taiwan, its cozying up to Vladimir Putin (despite his savaging of Ukraine), Xi’s moves toward making himself president for life, his kneecapping of China’s own tech entrepreneurs, his tighter restrictions on speech and the occasional abduction of a leading Chinese businessman — all of these added up to one very big thing: Whatever trust that China had built up with the West since the late 1970s evaporated at the exact moment in history when trust, and shared values, became more important than ever in a world of deep, dual-use products driven by software, connectivity and microchips.
  • it started to matter a lot more to Western nations generally and the United States in particular that this rising power — which we were now selling to or buying from all sorts of dual-use digital devices or apps — was authoritarian.
  • eijing, for its part, argues that as China became a stronger global competitor to America — in deep goods like Huawei 5G — the United States simply could not handle it and decided to use its control over advanced semiconductor manufacturing and other high-tech exports from America, as well as from our allies, to ensure China always remained in our rearview mirror
  • Beijing came up with a new strategy, called “dual circulation.” It said: We will use state-led investments to make everything we possibly can at home, to become independent of the world. And we will use our manufacturing prowess to make the world dependent on our exports.
  • Chinese officials also argue that a lot of American politicians — led by Trump but echoed by many in Congress — suddenly seemed to find it very convenient to put the blame for economic troubles in the U.S.’s middle class not on any educational deficiencies, or a poor work ethic, or automation or the 2008 looting by financial elites, and the crisis that followed, but on China’s exports to the United States.
  • As Beijing sees it, China not only became America’s go-to boogeyman, but in their frenzy to blame Beijing for everything, members of Congress started to more recklessly promote Taiwan’s independence.
  • Xi told President Biden at their summit in Bali in November, in essence: I will not be the president of China who loses Taiwan. If you force my hand, there will be war. You don’t understand how important this is to the Chinese people. You’re playing with fire.
  • at some level Chinese officials now understand that, as a result of their own aggressive actions in recent years on all the fronts I’ve listed, they have frightened both the world and their own innovators at precisely the wrong time.
  • I don’t buy the argument that we are destined for war. I believe that we are doomed to compete with each other, doomed to cooperate with each other and doomed to find some way to balance the two. Otherwise we are both going to have a very bad 21st century.
  • I have to say, though, Americans and Chinese remind me of Israelis and Palestinians in one respect: They are both expert at aggravating the other’s deepest insecurities.
  • China’s Communist Party is now convinced that America wants to bring it down, which some U.S. politicians are actually no longer shy about suggesting. So, Beijing is ready to crawl into bed with Putin, a war criminal, if that is what it takes to keep the Americans at bay.
  • Americans are now worried that Communist China, which got rich by taking advantage of a global market shaped by American rules, will use its newfound market power to unilaterally change those rules entirely to its advantage. So we’ve decided to focus our waning strength vis-à-vis Beijing on ensuring the Chinese will always be a decade behind us on microchips.
  • I don’t know what is sufficient to reverse these trends, but I think I know what is necessary.
  • If it is not the goal of U.S. foreign policy to topple the Communist regime in China, the United States needs to make that crystal clear, because I found a lot more people than ever before in Beijing think otherwise.
  • As for China, it can tell itself all it wants that it has not taken a U-turn in recent years. But no one is buying it. China will never realize its full potential — in a hyper-connected, digitized, deep, dual-use, semiconductor-powered world — unless it understands that establishing and maintaining trust is now the single most important competitive advantage any country or company can have. And Beijing is failing in that endeavor.
  • In his splendid biography of the great American statesman George Shultz, Philip Taubman quotes one of Shultz’s cardinal rules of diplomacy and life: “Trust is the coin of the realm.”
Javier E

Knocking on the Wrong House or Door Can Be Deadly In a Nation Armed With Guns - The New... - 0 views

  • Each of them accidentally went to the wrong address or opened the wrong door — and each was shot. They had made innocent mistakes that became examples of the kind of deadly errors that can occur in a country bristling with guns, anger and paranoia, and where most states have empowered gun owners with new self-defense laws.
  • The maintenance man in North Carolina had just arrived to fix damage from a leak. The teenager in Georgia was only looking for his girlfriend’s apartment. The cheerleader in Texas simply wanted to find her car in a dark parking lot after practice.
  • many other cases have attracted far less attention. In July 2021, a Tennessee man was charged with brandishing a handgun and firing it after two cable-company workers mistakenly crossed onto his land. Last June, a Virginia man was arrested after the authorities say he shot at three lost teenage siblings who had accidentally pulled onto his property.
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  • “It’s shoot first, ask questions later,”
  • Each one of these incidents resulted from unique events. But activists and researchers say they stem from a convergence of bigger factors — increased fear of crime and an attendant surge in gun ownership, increasingly extreme political messaging on firearms, fearmongering in the media and marketing campaigns by the gun industry that portray the suburban front door as a fortified barrier against a violent world.
  • “The gun lobby markets firearms as something you need to defend yourself — hammers in search of nails,”
  • The perception that crime, especially violent gun crime, has increased is not a manufactured myth. National murder rates have climbed by about a third since 2019, according to government data, even accounting for modest declines in fatal shootings over the past 18 months.
  • Gun purchases rose during the pandemic and the unrest and racial-justice protests after the murder of George Floyd. Nearly 20 percent of American households bought a gun from March 2020 to March 2022, and about 5 percent of Americans bought a gun for the first time,
  • More than 30 states also have “stand your ground” laws. Some have recently strengthened their “castle doctrine” laws, making it more difficult to prosecute homeowners who claim self-defense in a shooting.
  • “People become paranoid and over-worried — and then comes an unannounced knock on their door,”
  • But several large-scale studies have suggested that the laws have few benefits, increase the likelihood of gun violence and might discriminate against minority groups, especially Black people.
  • The effect of self-defense laws protecting homeowners and gun owners is fiercely debated, with proponents arguing that their mere presence deters criminal behavior or civil disorder
  • shootings in which white people shot Black people were nearly three times as likely to be found “justified” compared with cases where white people shot other white people.
  • A 2023 analysis of recent academic research by the nonpartisan RAND Corporation found no evidence that such laws had the deterrent effect that their sponsors claimed, and there was some indication, while not conclusive, that the laws might account for some increases in gun violence.
  • weapons were actually more likely to be used in suicides, discharged accidentally, stolen or brandished in domestic disputes, than used to fend off an external attack.
  • The National Rifle Association and other gun-rights groups have long disputed such assessments, citing surveys that show far greater use of weapons for legitimate self-defense.
  • About a third of the roughly 16,700 gun owners surveyed in a study led by William English, a Georgetown University business school professor, said they had used their guns for self-defense, prompting Mr. English to estimate that as many as 1.6 million people in the country had defended themselves with a weapon that year.
Javier E

The New Luddites Aren't Backing Down - The Atlantic - 0 views

  • “Anyone who is critical of the tech industry always has someone yell at them ‘Luddite! Luddite!’ and I was no exception,” she told me. It was meant as an insult, but Crabapple embraced the term. Like many others, she came to self-identify as part of a new generation of Luddites. “Tech is not supposed to be a master tool to colonize every aspect of our being. We need to reevaluate how it serves us.”
  • on some key fronts, the Luddites are winning.
  • The government mobilized what was then the largest-ever domestic military occupation of England to crush the uprising—the Luddites had won the approval of the working class, and were celebrated in popular songs and poems—and then passed a law that made machine-breaking a capital offense. They painted Luddites as “deluded” and backward.
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  • ver since, Luddite has been a derogatory word—shorthand for one who blindly hates or doesn’t understand technology.
  • Now, with nearly half of Americans worried about how AI will affect jobs, Luddism has blossomed. The new Luddites—a growing contingent of workers, critics, academics, organizers, and writers—say that too much power has been concentrated in the hands of the tech titans, that tech is too often used to help corporations slash pay and squeeze workers, and that certain technologies must not merely be criticized but resisted outright.
  • what I’ve seen over the past 10 years—the rise of gig-app companies that have left workers precarious and even impoverished; the punishing, gamified productivity regimes put in place by giants such as Amazon; the conquering of public life by private tech platforms and the explosion of screen addiction; and the new epidemic of AI plagiarism—has left me sympathizing with tech’s discontents.
  • I consider myself a Luddite not because I want to halt progress or reject technology itself. But I believe, as the original Luddites argued in a particularly influential letter threatening the industrialists, that we must consider whether a technology is “hurtful to commonality”—whether it causes many to suffer for the benefit of a few—and oppose it when necessary.
  • “It’s not a primitivism: We don’t reject all technology, but we reject the technology that is foisted on us,” Jathan Sadowski, a social scientist at Monash University, in Australia, told me. He’s a co-host, with the journalist Ed Ongweso Jr., of This Machine Kills, an explicitly pro-Luddite podcast.
  • The science-fiction author Cory Doctorow has declared all of sci-fi a Luddite literature, writing that “Luddism and science fiction concern themselves with the same questions: not merely what the technology does, but who it does it for and who it does it to.
  • The New York Times has profiled a hip cadre of self-proclaimed “‘Luddite’ teens.” As the headline explained, they “don’t want your likes.”
  • By drawing a red line against letting studios control AI, the WGA essentially waged the first proxy battle between human workers and AI. It drew attention to the fight, resonated with the public, and, after a 148-day strike, helped the guild attain a contract that banned studios from dictating the use of AI.
Javier E

Are We All Too Cynical for Star Trek? - by Bill Coberly - 0 views

  • WHAT DOES IT MEAN IF WE CAN’T even trust the institutions in our imagined utopias?
  • Starfleet’s exact role was left intentionally vague in the original series (1966–69); the writer’s guide for the original Star Trek explicitly encourages writers to “stay away from it as much as possible,” partly to avoid getting into the details of Earth’s future politics. But by the time of Star Trek’s heyday in the mid-1990s, Starfleet was established as an elite institution composed of brilliant and dedicated people (human and otherwise) who served in an organization resembling NASA, the Coast Guard, the Navy, and the Department of State all bundled together, with all of the opportunities for incoherence and mission creep that jumble implies.
  • One of the greatest episodes of Deep Space Nine (1992–99), “In the Pale Moonlight,” is entirely about how, in times of crisis, moral compromise may be necessary, even for Starfleet. But such cases are treated as exceptional, unusual circumstances far beyond the norm; as a rule, Starfleet is good, and the best way to be a good servant of the true and just in the world of Star Trek is by being a good Starfleet officer. How does one be a good Starfleet officer? By doing one’s job, by being a professional, by following one’s duty.
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  • the characters in the core three modern shows—Discovery, Picard, and Strange New Worlds—are less concerned with professionalism and duty and more concerned with personal morality, authenticity, and teamwork.
  • Dylan Roth, writing for Fanbyte, suggested that as Star Trek has aged, it has “changed from a series about benign authority to one about stalwart heroes protecting an institution from moral decay.” This is true enough, but I also think there’s something else going on with the modern Trek shows. Namely, the atmosphere and philosophy of the shows is much less comfortable with the maxims of professionalism and duty that were foundational to pre-2017 Star Trek media.
  • Modern Star Trek, much like older Star Trek, often presents its main characters as moral paragons, but whereas older Trek would usually depict them embodying Starfleet’s ideals in the presence of challenging aliens, modern Trek is more likely to establish their uprightness by contrast with the faceless and untrustworthy institution of Starfleet itself. Both eras do both things, at least occasionally, but the ratio has notably shifted.
  • WHY THE CHANGE? Part of it probably has to do with the other material that Star Trek writers are drawing from. The ’60s and ’90s-era Trek writers either served in the military themselves or were drawing from science fiction written by people who had. (Gene Roddenberry, the creator of Star Trek, and many of the great science-fiction authors of the mid-twentieth century, including Robert Heinlein, Arthur Clarke, Isaac Asimov, Frank Herbert, and Walter M. Miller Jr., each served in some capacity in the World War II-era U.S. or British armed forces.
  • difference in leadership style is everywhere between the two eras. The Strange New Worlds version of Capt. Christopher Pike has been repeatedly praised for being more collaborative than commanding (I struggle to remember a time he has ever raised his voice), whereas Capt. Sisko shouts at everyone, as only the great Avery Brooks can shout. Picard’s version of its title character trades all his twentieth-century grouchy gravitas for a more grandfatherly role; his inspirational speeches now seek to buoy his friends’ confidence rather than inspire subordinates to high achievement.
  • Old-school Sisko reminds his crew of the expectations he has for them and unsubtly critiques their behavior as unbecoming of Starfleet officers. He acknowledges their difficulties (“I know it’s hot. . .”), but leaves no doubt that he expects them to perform their duties as professionals anyway. New-school Tilly motivates her command by making it clear that she sees and hears their concerns, and encourages them to work together by seeing the value in their unique life experiences.
  • modern Trek writers are far less likely to have served—but are far more likely to have worked in twenty-first-century corporate America, which has a rather different set of norms and concepts of professionalism.
  • more fundamentally, popular science fiction today—as written by authors like N.K. Jemisin, Martha Wells, and Tamsyn Muir—is more likely to be concerned with questions of identity and combating imperialism. It is also more likely to be written from marginalized perspectives, which have valid reasons to distrust institutions and authority. For many of these writers, concepts like “professionalism” have questionable implications
  • Besides, nobody likes any of America’s institutions anymore (and for all that Star Trek is ostensibly international, it is a fundamentally American franchise). Gallup’s polling about Americans’ faith in U.S. institutions shows it hovering at or near record-breaking lows, spawning a great deal of hand-wringing from people across the political spectrum. These apparently untrustworthy institutions range from purely political ones (the presidency, the Supreme Court, etc.) to “the church or organized religion” (whatever that means), “banks,” and “newspapers.”
  • What are professionalism and duty if not the suppression of individual quirks in service of some larger goal or institution? Duty overrides individual desires or assessments of right and wrong.
  • But older Trek nevertheless believed in duty, because it believed that Starfleet was a fundamentally good institution, even if it may be failed by individual bad or misguided actors. It elevated Starfleet’s regulations and codes of conduct almost to the status of holy wri
  • it is difficult to be seriously inspired by the notion of duties if one has a deep distrust of the institutions that assign such duties.
  • Of course the characters written by twenty-first-century authors, who are animated by the same deep distrust of American institutions as the rest of us, are less likely to justify themselves with the language of duty than they are by reference to personal morality and authenticity. And of course they’re going to be skeptical of rank and hierarchy because they don’t believe these things are necessarily signs of actual merit or accomplishment any more than the rest of us do.
  • Yet I worry. If Star Trek is supposed to start from the assumption that Starfleet and the Federation are quasi-utopian, I worry about what it says about our collective imaginations if we can’t even let the institutions of that fictional utopia be utopian. If we can’t even trust Starfleet, who can we trust?
Javier E

There's Probably Nothing We Can Do About This Awful Deepfake Porn Problem - 0 views

  • we can’t (as in, are unable to in real-world terms) censor far-right content online because of the basic reality of modern communications technology. The internet makes the transmission of information, no matter how ugly or shocking or secret, functionally impossible to stop. Digital infrastructure is spread out across the globe, including in regimes that do not play ball with American legal or corporate mandates, and there’s plenty of server racks out there in the world buzzing along that are inaccessible to even the most dedicated hall monitors
  • , it happens that I am one of those free speech absolutists, yes, but that is very explicitly not what the piece argues - it’s precisely an argument that whether we should censor is entirely moot, because we can’t. The technological impediments to cutting off the flow of information (at least that which is not tightly controlled at the supply-side) are now existential.
  • This is a reality people have to accept, even if - especially if - they think that reality is corrosive and ugly. I suspect it’s a similar story with all of this horrible AI “deepfake” celebrity porn.
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  • The trouble is that, as I’ve seen again and again, in this era of entitlement people think saying “we can’t do this” necessarily means “I don’t want to.”
Javier E

Opinion | I surrender. A major economic and social crisis seems inevitable. - The Washi... - 0 views

  • On the list of words in danger of cheapening from overuse — think “focus,” “iconic,” “existential,” you have your own favorites — “crisis” must rank near the top
  • A host of prognosticators, coming from diverse disciplinary directions, seems to think something truly worthy of the term is coming. They foresee cataclysmic economic and social change dead ahead, and they align closely regarding the timing of the crash’s arrival
  • Then there’s that little matter of our unconscionable and unpayable national debt, current and committed
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  • Looking through a political lens, James Piereson in “Shattered Consensus” observes a collapse of the postwar understanding of government’s role, namely to promote full employment and to police a disorderly world. He expects a “fourth revolution” around the end of this decade, following the Jeffersonian upheaval of 1800, the Civil War and the New Deal. Such a revolution, he writes, is required or else “the polity will begin to disintegrate for lack of fundamental agreement.”
  • In “The Fourth Turning Is Here,” published this summer, demographic historian Neil Howe arrived at a similar conclusion. His view springs from a conviction that human history follows highly predictable cycles based on the “saeculum,” or typical human life span of 80 years or so, and the differing experiences of four generations within that span. The next “turning,” he predicts, is due in about 2033
  • It will resemble those in the 1760s, 1850s and 1920s, Howe writes, that produced “bone-jarring Crises so monumental that, by their end, American society emerged wholly transformed.”
  • Others see disaster’s origins in economics
  • Failure to resume strong growth and to produce greater economic equality will bring forth authoritarian regimes both left and right. This year, in his book “The Crisis of Democratic Capitalism,” Financial Times editor Martin Wolf advocated for an array of reforms, including carbon taxation, a presumption against horizontal mergers, a virtual ban on corporate share buybacks, compulsory voting, and extra votes for younger citizens and parents of children. He fears that, absent such measures, “the light of political and personal freedom might once again disappear from the world.”
  • Unsettling as these forecasts are, the even more troubling thought is that maybe a true crisis is not just inevitable but also necessary to future national success and social cohesion.
  • Now, I’m grudgingly ready to surrender and accept that the cliché must be true: Washington will not face up to its duty except in a genuine crisis. Then and only then will we, as some would say, focus on the existential threats to our iconic institutions.
  • Now, market guru John Mauldin has begun forecasting a “great reset” when these unsustainable bills cannot be paid, when “the economy comes crashing down around our ears.” Writing in August, he said he sees this happening “roughly 7-10 years from now.”
  • Encouragingly, if vaguely, most of these seers retain their optimism. Piereson closes by imagining “a new order on the foundations of the old.” Confessing that he doesn’t “know exactly how it will work,” Mauldin expects us to “muddle through” somehow.
  • Howe, because he sees his sweeping, socially driven generational cycles recurring all the way back to the Greeks, is the most cavalier. Although “the old American republic is collapsing,” he says, we will soon pass through a “great gate in history,” resolve our challenges and emerge with a “new collective identity.”
  • Paradoxically, these ominous projections can help worrywarts like me move through what might be called the stages of political grief.
  • A decade ago, an optimist could tell himself that a democratically mature people could summon the will or the leaders to stop plundering its children’s futures, and to reconcile or at least agree to tolerate sincerely held cultural disagreements.
  • For a while after that, it seemed plausible to hope for incremental reforms that would enable the keeping of most of our safety-net promises, and for a cooling or exhaustion of our poisonous polarization.
  • Bowles called what’s coming “the most predictable economic crisis” — there’s that word again, aptly applied — “in history.” And that was many trillions of borrowing ago.
  • So maybe we might as well get on with it, and hope that we at least “muddle through.” I’ve arrived at the final stage: Crisis? Ready when you are.
Javier E

Even Elon Musk Wants More Power - WSJ - 0 views

  • the past few weeks might well live on as a business-school case study on the complexity of managing a superstar talent who has succeeded with maverick ways but also, for some, can go too far
  • Just as it isn’t easy for a manager to course-correct a star performer who gets out of line, a board can struggle to rein in a celebrity CEO, especially if everyone is enjoying the company’s stock performance that papers over troubling signs. 
  • At present, Musk directly holds 13% of Tesla shares, or about 21% if including unexercised options, according to the company’s most recent regulatory filing. That’s down from 21% directly held at the end of 2016. 
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  • Now, he’s publicly asking for 25%, to give him more voting power in corporate matters.  
  • That plan, which became subject to litigation, set numerous stretch goals, including the addition of $600 billion to the company’s market value. It offered him tranches of payouts along the way, giving him options in total to about 10% of the company’s stock, worth around $60 billion Friday after exercising costs. 
  • “If I allocate time to Tesla—if I overallocate time to Tesla at the expense of making humanity a space-faring civilization—then I’m not sure what would serve the greater good,” Musk said. “But if there were additional economic resources available that could then subsequently be applied to making life multiplanetary, then perhaps that would serve the greater good.” 
  • Musk surprised many by completing the final tranche of his plan in 2022—to his and investors’ benefit. 
  • His public airing of his demands were made even more unusual given that he and the board have plenty of reasons to make something work. His unexpected departure would hurt the stock’s value, which would be bad both for his own wealth and for the board responsible for ensuring shareholder value.  
  • “This is primarily about ensuring the right amount of voting influence at Tesla,” Musk tweeted. “If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy.” 
Javier E

In 1973, an MIT computer predicted when civilization will end - Big Think - 0 views

  • What World One showed was that by 2040 there would be a global collapse if the expansion of the population and industry was to continue at the current levels.
  • The prediction, which recently reappeared in Australian media, was made by a program dubbed World One. It was originally created by the computer pioneer Jay Forrester, who was commissioned by the Club of Rome to model how well the world could sustain its growth.
  • In fact, 2020 is the first milestone envisioned by World One. That’s when the quality of life is supposed to drop dramatically. The broadcaster presented this scenario and how it would lead to the demise of large numbers of people:
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  • the model’s calculations took into account trends in pollution levels, population growth, the amount of natural resources and the overall quality of life on Earth. The model’s predictions for the worsening quality of life and the dwindling natural resources have so far been unnervingly on target.
  • “At around 2020, the condition of the planet becomes highly critical. If we do nothing about it, the quality of life goes down to zero. Pollution becomes so seriously it will start to kill people, which in turn will cause the population to diminish, lower than it was in the 1900. At this stage, around 2040 to 2050, civilised life as we know it on this planet will cease to exist.”
  • Alexander King, the then-leader of the Club of Rome, evaluated the program’s results to also mean that nation-states will lose their sovereignty, forecasting a New World Order with corporations managing everything.
  • “Sovereignty of nations is no longer absolute,” King told ABC. “There is a gradual diminishing of sovereignty, little bit by little bit. Even in the big nations, this will happen.”
Javier E

Mistral, the 9-Month-Old AI Startup Challenging Silicon Valley's Giants - WSJ - 0 views

  • Mensch, who started in academia, has spent much of his life figuring out how to make AI and machine-learning systems more efficient. Early last year, he joined forces with co-founders Timothée Lacroix, 32, and Guillaume Lample, 33, who were then at Meta Platforms’ artificial-intelligence lab in Paris. 
  • hey are betting that their small team can outmaneuver Silicon Valley titans by finding more efficient ways to build and deploy AI systems. And they want to do it in part by giving away many of their AI systems as open-source software.
  • Eric Boyd, corporate vice president of Microsoft’s AI platform, said Mistral presents an intriguing test of how far clever engineering can push AI systems. “So where else can you go?” he asked. “That remains to be seen.”
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  • Mensch said his new model cost less than €20 million, the equivalent of roughly $22 million, to train. By contrast OpenAI Chief Executive Sam Altman said last year after the release of GPT-4 that training his company’s biggest models cost “much more than” $50 million to $100 million.
  • Brave Software made a free, open-source model from Mistral the default to power its web-browser chatbot, said Brian Bondy, Brave’s co-founder and chief technology officer. He said that the company finds the quality comparable with proprietary models, and Mistral’s open-source approach also lets Brave control the model locally.
  • “We want to be the most capital-efficient company in the world of AI,” Mensch said. “That’s the reason we exist.” 
  • Mensch joined the Google AI unit then called DeepMind in late 2020, where he worked on the team building so-called large language models, the type of AI system that would later power ChatGPT. By 2022, he was one of the lead authors of a paper about a new AI model called Chinchilla, which changed the field’s understanding of the relationship among the size of an AI model, how much data is used to build it and how well it performs, known as AI scaling laws.
  • Mensch took a role lobbying French policymakers, including French President Emmanuel Macron, against certain elements of the European Union’s new AI Act, which Mensch warned could slow down companies and would, in his view, do nothing to make AI safer. After changes to the text in Brussels, it will be a manageable burden for Mistral, Mensch says, even if he thinks the law should have remained focused on how AI is used rather than also regulating the underlying technology.  
  • For Mensch and his co-founders, releasing their initial AI systems as open source that anyone could use or adapt free of charge was an important principle. It was also a way to get noticed by developers and potential clients eager for more control over the AI they use
  • Mistral’s most advanced models, including the one unveiled Monday, aren’t available open source. 
Javier E

How 'Surf City USA' became California's MAGA stronghold - The Washington Post - 0 views

  • Huntington Beach, one of Orange County’s largest cities, has long been associated with conservative beliefs, but its evolution in recent years shows how the bitter polarization of national politics has crept into even the most mundane municipal matters.
  • “It’s the tipping on its head of the old notion that all politics is local. Now, all politics are national, and I think the overall effect of that is really destructive,” said Jim Newton, a public policy lecturer at UCLA and editor of Blueprint magazine. “It takes a sharply divided country at the national level and drags that down into local disputes.”
  • Spurred by those early oil booms, the city embraced development and corporate interests, said Chris Jepsen, the president of the Orange County Historical Society, earning it “a reputation for being pro-business and ardently pro-property rights.”
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  • “Politics, Democratic or Republican, were not particularly important,” said Tom Harman, a former Republican state senator who got his start on the city council in the 1990s. “People didn’t run on party preference. They ran on what they could do in the community and how they could make the city a better place to live.”
  • It had long been a destination for surfing, but officials in the ’90s began leaning into that reputation to court the tourism industry. Huntington Beach became “Surf City USA,” a moniker pulled from a chart-topping song.
  • Two high-profile acts of white-supremacist violence — the shooting of a Black man in 1994, and the stabbing of a Native American man two years later — prompted the city to crack down on the groups who had flocked from across Southern California.
  • City police stepped up patrols, the council passed a human dignity policy condemning hate crimes, and officials started a human relations commission to combat bigotry. Ken Inouye, the founding chair of that task force and a 51-year resident of Huntington Beach, said residents from across the city “came together because we knew we were better than that.”
  • Both efforts were reversed when the current Republican majority took over the council.
  • In recent decades, sweeping demographic change has pushed Orange County to the left. But those shifts have been more subtle in Huntington Beach, and the city has retained its rightward lean. Unlike the county’s other largest cities, most residents are White and Republicans still account for the plurality of Huntington Beach’s registered voters.
  • During Donald Trump’s presidency, residents bridled at California’s pandemic restrictions, much as Trump did. Fierce protests became common, with crowds clogging the pier and Pacific Coast Highway to shout down coronavirus precautions or cheer Trump. Some of the rallies were organized by white-supremacist groups and turned violent.
  • Another inflection point came in 2021, when former mixed martial arts fighter and hard-right council member Tito Ortiz resigned from his post and the remaining members appointed a Democrat, Rhonda Bolton, in his stead. The move infuriated city Republicans, who wanted Ortiz replaced with an ideological equal.
  • “The tone of political rhetoric has gotten coarser and sillier as time has worn on,” she said. “And Huntington Beach is a reflection of what’s happening nationally.”
  • Carol Daus, who has lived in the city nearly three decades, said the council’s focus on contentious cultural debates has divided the community, pitting neighbors against neighbors. One example of the acrimony: Protect HB has hung posters across the city urging a “No” vote on the March ballot measures, but some 40 of those signs were recently vandalized with large green “Yes” stickers.
  • “This city during the past several years, following the Trump administration and covid lockdown, was like a volcano ready to explode,” Daus said. “And now it has.”
  • “I feel duped,” said Sue Welfringer, a longtime Huntington Beach resident and registered Republican. She voted for the four-person conservative slate because she liked their stances on homelessness and limiting development, but mostly she appreciated that they got along with each other.
  • “I almost don’t even want to vote at all because I don’t want to make another terrible mistake I regret,” said Welfringer, who opposes the council’s stances on issues like LGBTQ rights and voter ID. “I feel like they had a hidden agenda. And now I’m also worried what else is on their hidden agenda. I’m afraid to know what big issue is next.”
  • “Ideally, it would be wonderful if we could just focus on the roads and infrastructure,” he said. “But I think we’re in a time now where there really isn’t any such thing as a nonpartisan local focus anymore.”
  • But this dynamic has turned city council meetings into routine spectacles, where public comment drags on for hours and speakers hurl invectives at the seven members sitting on the dais.
  • Butch Twining, a candidate for city council, is one of three conservatives looking to build on the Republican majority, campaigning as a slate to replace Bolton and the council’s other two liberal members in November. A victory would give conservatives a 7-0 vise grip on the council.
Javier E

Why has the '15-minute city' taken off in Paris but become a controversial idea in the ... - 0 views

  • he “15-minute city” has become a toxic phrase in the UK, so controversial that the city of Oxford has stopped using it and the transport minister has spread discredited conspiracy theories about the urban planning scheme.
  • while fake news spreads about officials enacting “climate lockdowns” to “imprison” people in their neighbourhoods, across the Channel, Parisians are enjoying their new 15-minute neighbourhoods. The French are stereotyped for their love of protest, so the lack of uproar around the redesign of their capital is in stark contrast to the frenzied response in Oxford.
  • Moreno has been working with the Paris mayor, Anne Hidalgo, to make its arrondissements more prosperous and pleasurable to live in. He says there are 50 15-minute cities up and running, with more to come.
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  • “We have an outstanding mayor, who is committed to tackling climate change. She said the 15-minute city will be the backbone for creating a new urban plan. The last time Paris had a new urban plan was in 2000, so this road map will be relevant for the next 10 or 15 years at least,”
  • “I said to Hidalgo, the 15-minute city is not an urban traffic plan. The 15-minute city is a radical change of our life.”
  • He also thinks office should generally be closer to homes, as well as cultural venues, doctors, shops and other amenities. Shared spaces such as parks help the people living in the areas to form communities.
  • They have also often been segmented into wealthier and poorer areas; in the less prosperous area to the north-east of Paris, Moreno says up to 40% of homes are social housing. In the wealthier west of Paris, this drops below 5%.
  • “My idea is to break this triple segregation,” he says.
  • Moreno thinks this segregation leads to a poorer quality of life, one designed around outdated “masculine desires”, so his proposal is to mix this up, creating housing developments with a mixture of social, affordable and more expensive housing so different social strata can intermingle
  • He also wants to bring schools and children’s areas closer to work and home, so caregivers can more easily travel around and participate in societ
  • When many modern cities were designed, they were for men to work in. Their wives and family stayed in the suburbs, while the workers drove in. So they have been designed around the car, and segmented into different districts: the financial district (think Canary Wharf), the cultural area (for example, the West End) and then the suburbs
  • The city has also been regenerating the Clichy-Batignolles district in the less prosperous north-west of Paris to have a green, village-like feel. About a quarter of it is taken up by green space and a new park.“As a 15-minute district, it is incredible,” says Moreno. “It is beautiful, it has proximity, social mixing, 50% of the inhabitants live in social housing, 25% in middle class and 25% own their homes.”
  • Many of his proposals are dear to the culture of the French. In a large, wealthy metropolis such as Paris, it is easy for small shops to be choked out by large chains. The city of Paris, in its new plan, has put measures in to stop this.
  • “We have a commercial subsidiary of the city of Paris which has put €200m into managing retail areas in the city with rates below the speculative real estate market. This is specifically to rent to small shops, artisans, bakeries, bookstores.
  • This is not only a good investment because it creates a good economic model, but it keeps the culture of the city of Paris,”
  • This is in keeping with the 15-minute city plan as it keeps local shops close to housing, so people can stroll down from their apartment to pick up a fresh baguette from an independent baker. “It creates a more vibrant neighbourhood,” he adds.
  • Hidalgo inevitably faced a large backlash from the motorist lobby. Stroll down the banks of the Seine today in the new protected parks and outdoor bars, and it is hard to imagine that it was recently a traffic-choked highway
  • “The drivers were radically very noisy, saying that we wanted to attack their individual rights, their freedom. The motorist lobby said she cannot be elected without our support, that they are very powerful in France,” Moreno says. But Hidalgo called their bluff: “She often says ‘I was elected two times, with the opposition of the automotive lobby’. In 2024, nobody requests to open again the highway on the Seine, no one wants the Seine urban park to be open for cars.”
  • Moreno talks about the concept of a “giant metronome of the city” which causes people to rush around. He wants to slow this down, to allow people to reclaim their “useful time” back from commuting and travelling to shops and cultural areas.
  • “I bet for the next year, for the next decade, we will have this new transformation of corporation real estate,” he says. “Businesses are choosing multi-use areas with housing, schools, shops for their office space now. The time of the skyscrapers in the masculine design is finished.”
Javier E

He Turned 55. Then He Started the World's Most Important Company. - WSJ - 0 views

  • You probably use a device with a chip made by TSMC every day, but TSMC does not actually design or market those chips. That would have sounded completely absurd before the existence of TSMC. Back then, companies designed chips that they manufactured themselves. Chang’s radical idea for a great semiconductor company was one that would exclusively manufacture chips that its customers designed. By not designing or selling its own chips, TSMC never competed with its own clients. In exchange, they wouldn’t have to bother running their own fabrication plants, or fabs, the expensive and dizzyingly sophisticated facilities where circuits are carved on silicon wafers.
  • The innovative business model behind his chip foundry would transform the industry and make TSMC indispensable to the global economy. Now it’s the company that Americans rely on the most but know the least about
  • I wanted to know more about his decision to start a new company when he could have stopped working altogether. What I discovered was that his age was one of his assets. Only someone with his experience and expertise could have possibly executed his plan for TSMC. 
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  • “I could not have done it sooner,” he says. “I don’t think anybody could have done it sooner. Because I was the first one.” 
  • By the late 1960s, he was managing TI’s integrated-circuit division. Before long, he was running the entire semiconductor group. 
  • He transferred to the Massachusetts Institute of Technology, where he studied mechanical engineering, earned his master’s degree and would have stayed for his Ph.D. if he hadn’t failed the qualifying exam. Instead, he got his first job in semiconductors and moved to Texas Instruments in 1958
  • he came along as the integrated circuit was being invented, and his timing couldn’t have been any better, as Chang belonged to the first generation of semiconductor geeks. He developed a reputation as a tenacious manager who could wring every possible improvement out of production lines, which put his career on the fast track.
  • Chang grew up dreaming of being a writer—a novelist, maybe a journalist—and he planned to major in English literature at Harvard University. But after his freshman year, he decided that what he actually wanted was a good job
  • “They talk about life-work balance,” he says. “That’s a term I didn’t even know when I was their age. Work-life balance. When I was their age, if there was no work, there was no life.” 
  • These days, TSMC is investing $40 billion to build plants in Arizona, but the project has been stymied by delays, setbacks and labor shortages, and Chang told me that some of TSMC’s young employees in the U.S. have attitudes toward work that he struggles to understand. 
  • Chang says he wouldn’t have taken the risk of moving to Taiwan if he weren’t financially secure. In fact, he didn’t take that same risk the first time he could have.
  • “The closer the industry match,” they wrote, “the greater the success rate.” 
  • By then, Chang knew that he wasn’t long for Texas Instruments. But his stock options hadn’t vested, so he turned down the invitation to Taiwan. “I was not financially secure yet,” he says. “I was never after great wealth. I was only after financial security.” For this corporate executive in the middle of the 1980s, financial security equated to $200,000 a year. “After tax, of course,” he says. 
  • Chang’s situation had changed by the time Li called again three years later. He’d exercised a few million dollars of stock options and bought tax-exempt municipal bonds that paid enough for him to be financially secure by his living standards. Once he’d achieved that goal, he was ready to pursue another one. 
  • “There was no certainty at all that Taiwan would give me the chance to build a great semiconductor company, but the possibility existed, and it was the only possibility for me,” Chang says. “That’s why I went to Taiwan.” 
  • Not long ago, a team of economists investigated whether older entrepreneurs are more successful than younger ones. By scrutinizing Census Bureau records and freshly available Internal Revenue Service data, they were able to identify 2.7 million founders in the U.S. who started companies between 2007 and 2014. Then they looked at their ages.
  • The average age of those entrepreneurs at the founding of their companies was 41.9. For the fastest-growing companies, that number was 45. The economists also determined that 50-year-old founders were almost twice as likely to achieve major success as 30-year-old founders, while the founders with the lowest chance of success were the ones in their early 20s
  • “Successful entrepreneurs are middle-aged, not young,” they wrote in their 2020 paper.  
  • Silicon Valley’s venture capitalists throw money at talented young entrepreneurs in the hopes they will start the next trillion-dollar company. They have plentiful energy, insatiable ambition and the vision to peek around corners and see the future. What they don’t typically have are mortgages, family obligations and other adult responsibilities to distract them or diminish their appetite for risk. Chang himself says that younger people are more innovative when it comes to science and technical subjects. 
  • But in business, older is better. Entrepreneurs in their 40s and 50s may not have the exuberance to believe they will change the world, but they have the experience to know how they actually can. Some need years of specialized training before they can start a company. In biotechnology, for example, founders are more likely to be college professors than college dropouts. Others require the lessons and connections they accumulate over the course of their careers. 
  • one more finding from their study of U.S. companies that helps explain the success of a chip maker in Taiwan. It was that prior employment in the area of their startups—both the general sector and specific industry—predicted “a vastly higher probability” of success.
  • Chang was such a workaholic that he made sales calls on his honeymoon and had no patience for those who didn’t share his drive
  • Morris Chang had 30 years of experience in his industry when he decided to uproot his life and move to another continent. He knew more about semiconductors than just about anyone on earth—and certainly more than anyone in Taiwan. As soon as he started his job at the Industrial Technology Research Institute, Chang was summoned to K.T. Li’s office and given a second job. “He felt I should start a semiconductor company in Taiwan,”
  • “I decided right away that this could not be the kind of great company that I wanted to build at either Texas Instruments or General Instrument,”
  • TI handled every part of chip production, but what worked in Texas would not translate to Taiwan. The only way that he could build a great company in his new home was to make a new sort of company altogether, one with a business model that would exploit the country’s strengths and mitigate its many weaknesses.
  • Chang determined that Taiwan had precisely one strength in the chip supply chain. The research firm that he was now running had been experimenting with semiconductors for the previous 10 years. When he studied that decade of data, Chang was pleasantly surprised by Taiwan’s yields, the percentage of working chips on silicon wafers. They were almost twice as high in Taiwan as they were in the U.S., he said. 
  • “People were ingrained in thinking the secret sauce of a successful semiconductor company was in the wafer fab,” Campbell told me. “The transition to the fabless semiconductor model was actually pretty obvious when you thought about it. But it was so against the prevailing wisdom that many people didn’t think about it.” 
  • Taiwan’s government took a 48% stake, with the rest of the funding coming from the Dutch electronics giant Philips and Taiwan’s private sector, but Chang was the driving force behind the company. The insight to build TSMC around such an unconventional business model was born from his experience, contacts and expertise. He understood his industry deeply enough to disrupt it. 
  • “TSMC was a business-model innovation,” Chang says. “For innovations of that kind, I think people of a more advanced age are perhaps even more capable than people of a younger age.”
  • the personal philosophy that he’d developed over the course of his long career. “To be a partner to our customers,” he says. That founding principle from 1987 is the bedrock of the foundry business to this day, as TSMC says the key to its success has always been enabling the success of its customers.  
  • TSMC manufactures chips in iPhones, iPads and Mac computers for Apple, which manufactures a quarter of TSMC’s net revenue. Nvidia is often called a chip maker, which is curious, because it doesn’t make chips. TSMC does. 
  • Churning out identical copies of a single chip for an iPhone requires one TSMC fab to produce more than a quintillion transistors—that is, one million trillions—every few months. In a year, the entire semiconductor industry produces “more transistors than the combined quantity of all goods produced by all other companies, in all other industries, in all human history,” Miller writes. 
  • I asked how he thought about success when he moved to Taiwan. “The highest degree of success in 1985, according to me, was to build a great company. A lower degree of success was at least to do something that I liked to do and I wanted to do,” he says. “I happened to achieve the highest degree of success that I had in mind.” 
Javier E

JK Rowling and the Cass report reckoning | The Spectator - 0 views

  • Was ever a ‘liberation’ movement ever so risible from the start? Did any other allegedly oppressed group’s bid for equality include seeking to rob another oppressed group of their rights? Did any other oppressed group claim their freedom by dressing up as another oppressed group? And, crucially, did any allegedly oppressed group ever carry out such a comprehensive and conclusive capture of the most conservative and capitalist corporations and institutions? No, they didn’t – because previously, oppressed groups weren’t mostly composed of white middle-class men, as the trans-lobby are.
Javier E

'Grownup' leaders are pushing us towards catastrophe, says former US climate chief | Cl... - 0 views

  • Stern said that, in fact, delaying action to cut greenhouse gas emissions was leading to disaster, given the rapid acceleration of the climate crisis, which he said was happening faster than predicted when the Paris agreement was signed. “Look out your window – look at what’s happening,look at the preposterous heat. It’s ridiculous.”
  • But he warned that if Donald Trump were to be elected this November, the US would exit the Paris agreement and frustrate climate action globally.
  • “All hard questions of this magnitude should be considered by way of a ‘compared to what’ analysis. The monumental dangers [the climate crisis] poses warrant the same kind of ‘compared to what’ argument when leaders in the political and corporate worlds balk at what needs to be done.”
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  • tern praised Joe Biden for “an extraordinarily good first term”, including the Inflation Reduction Act, which he called “far and away the most significant climate legislation ever in the US, and it’s quite powerful”.
  • Leaders who claimed to be grownups by saying the pace of action had to be slowed had to be honest about the alternatives, he said. Just as political leaders took swift action to prevent the spread of Covid-19 in 2020, so must they confront the consequences of slowing climate action now.
  • “He will try to reverse whatever he can in terms of domestic policy [on climate action],” he warned. “I don’t think anybody else is going to pull out of Paris because of Trump, but it’s highly disruptive to what can happen internationally, because the US is a very big, very important player. So [without the US] you don’t move as fast.”
  • Stern called for stronger demonstration from civil society of support for climate action. “What we need, broadly, is normative change, a shift in hearts and minds that demonstrates to political leaders that their political future depends on taking strong, unequivocal action to protect our world,” he said.
  • “Normative change may seem at first blush like a weak reed to carry into battle against the defenders of the status quo, but norms can move mountains. They are about a sense of what is right, what is acceptable, what is important, what we expect and what we demand.”
Javier E

In Silicon Valley, You Can Be Worth Billions and It's Not Enough - The New York Times - 0 views

  • He got a phone call about the imminent sale of a tech company and allegedly traded on the confidential information, according to charges filed by the Securities and Exchange Commission. The profit for a few minutes of work: $415,726.
  • rarely has anyone traded his reputation for seemingly so little reward. For Mr. Bechtolsheim, $415,726 was equivalent to a quarter rolling behind the couch. He was ranked No. 124 on the Bloomberg Billionaires Index last week, with an estimated fortune of $16 billion.
  • Last month, Mr. Bechtolsheim, 68, settled the insider trading charges without admitting wrongdoing. He agreed to pay a fine of more than $900,000 and will not serve as an officer or director of a public company for five years.
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  • Nothing in his background seems to have brought him to this troubling point. Mr. Bechtolsheim was one of those who gave Silicon Valley its reputation as an engineer’s paradise, a place where getting rich was just something that happened by accident.
  • “He cared so much about making great technology that he would buy a house, not furnish it and sleep on a futon,” said Scott McNealy, who joined with Mr. Bechtolsheim four decades ago to create Sun Microsystems, a maker of computer workstations and servers that was a longtime tech powerhouse. “Money was not how he measured himself.”
  • researchers who analyze trading data say corporate executives broadly profit from confidential information. These executives try to avoid traditional insider trading restrictions by buying shares in economically linked firms, a phenomenon called “shadow trading.”
  • “There appears to be significant profits being made from shadow trading,” said Mihir N. Mehta, an assistant professor of accounting at the University of Michigan and an author of a 2021 study in The Accounting Review that found “robust evidence” of the behavior. “The people doing it have a sense of entitlement or maybe just think, ‘I’m invincible.’”
  • He went to Stanford as a Ph.D. student in the mid-1970s and got to know the then-small programming community around the university. In the early 1980s, he, along with Mr. McNealy, Vinod Khosla and Bill Joy, started Sun Microsystems as an outgrowth of a Stanford project. When Sun initially raised money, Mr. Bechtolsheim put his entire life savings — about $100,000 — into the company.
  • “You could end up losing all your money,” he was warned by the venture capitalists financing Sun. His response: “I see zero risk here.”
  • An impromptu demonstration was hastily arranged for 8 a.m., which Mr. Bechtolsheim cut short. He had seen enough, and besides, he had to get to the office. He gave them a check, and the deal was sealed, Mr. Levy wrote, “with as little fanfare as if he were grabbing a latte on the way to work.
  • Mr. Page and Mr. Brin couldn’t deposit Mr. Bechtolsheim’s check for a month because Google did not have a bank account. When Google went public in 2004, that $100,000 investment was worth at least $1 billion.
  • It wasn’t the money that made the story famous, however. It was the way it confirmed one of Silicon Valley’s most cherished beliefs about itself: that its genius is so blindingly obvious, questions are superfluous.
  • The dot-com boom was a disorienting period for longtime Valley leaders whose interest in money was muted. Mr. Bechtolsheim’s Sun colleague Mr. Joy left Silicon Valley.
  • “There’s so much money around, it’s clouding a lot of people’s ethics,” Mr. Joy said in a 1999 oral history
  • Mr. Bechtolsheim didn’t leave. In 2008, he co-founded Arista, a Silicon Valley computer networking company that went public and now has 4,000 employees and a stock market value of $100 billion.
  • Mr. Bechtolsheim was chair of Arista’s board when an executive from another company called in 2019, according to the S.E.C. Arista and the other company, which was not named in court documents, had a history of sharing confidential information under nondisclosure agreements.
  • immediately after hanging up, the government said, he bought Acacia option contracts in the accounts of a close relative and a colleague. The next day, the deal was announced. Acacia shares jumped 35 percent.
  • Arista’s code of conduct states that “employees who possess material, nonpublic information gained through their work at Arista may not trade in Arista securities or the securities of another company to which the information pertains.”
  • Mr. Levy, the “In the Plex” author, said there were plenty of legal ways to make money in Silicon Valley. “Someone who is regarded as an influential funder and is very well connected gets nearly unlimited opportunities to make very desirable early investments,”
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