If you want to create jobs at home, don’t rely on startups

This morning’s Observer column.

[Tom] Friedman is a significant figure because his pulpit on the NYT enables him subliminally to insert ideas into the collective unconscious of America’s ruling elite. Which is why something he wrote recently needs to be challenged. “If we want to bring down unemployment in a sustainable way”, he writes, “funding more road construction will do it. We need to create a big bushel of new companies – fast. We’ve got to get more Americans working again for their own dignity… Good-paying jobs don’t come from bailouts. They come from startups.”

When Samuel Johnson was asked how he would refute Bishop Berkeley’s philosophical proposition about the non-existence of matter, he famously kicked a stone and said: “I refute it thus!” Not having a convenient stone, I pick up the nearest object that lies to hand. It’s an iPhone. “Designed by Apple in California”, it says on the back. “Assembled in China”.

Now of course it’s a long time since Apple was a startup, but the iPhone still refutes Friedman’s hypothesis…

Telling 9/11 like it was

I hadn’t realised until last night that Jeff Jarvis had been at Ground Zero on the day. He lived to tell the tale in a sobering set of six audio files. It’s the most gripping account I’ve heard of what it was like to be there.

(I originally blogged this in 2006, but felt it worth re-posting today.)

9/11 and after: the wasted decade

Like everyone else, I can remember exactly where I was when the attacks of 9/11 started. After watching the TV coverage for a while and it became clear that it was a terrorist attack, I wrote in my diary: “Today means the end of civil liberties for my lifetime”. In an interesting New York Review of Books piece David Cole is less pessimistic. But his tally of the aftermath and implications of the attacks is worth a read. Looking back, what’s most striking about the decade is how wasteful it has been in both resources and lives. The US (and the UK) got themselves enmeshed in one necessary war (Afghanistan), which they then screwed up by getting involved in an unnecessary one (Iraq). Air travel has been transformed from a convenience to an infuriating, inefficient nightmare. State surveillance has increased a thousandfold, and ‘security theatre’ has become a way of life not just for real security authorities but also for the millions of jobsworths who wear uniforms in corporate foyers. Every time I’ve queued at an airport in the last decade, or been told by a cop that I can’t take a photograph in a public place, my first thought is that bin Laden won hands down.

And just think of the cost of all this:

How much are we spending on counterterrorism efforts? According to Admiral (Ret.) Dennis Blair, who served as director of national intelligence under both Bush and Obama, the United States today spends about $80 billion a year, not including expenditures in Iraq and Afghanistan (which of course dwarf that sum).1 Generous estimates of the strength of al-Qaeda and its affiliates, Blair reports, put them at between three thousand and five thousand men. That means we are spending between $16 million and $27 million per year on each potential terrorist. As several administration officials have told me, one consequence is that in government meetings, the people representing security interests vastly outnumber those who might speak for protecting individual liberties. As a result, civil liberties will continue to be at risk for a long time to come.

Cole’s main point is that most of the heavy lifting in dragging the US government back to towards a law-abiding position was done by civil society groups and activists.

These developments suggest three conclusions. First, the values of the rule of law are more tenacious than many cynics and “realists” thought, certainly than many in the Bush administration imagined. The most powerful nation in the world was forced to retreat substantially on each of its lawless ventures.

Second, there is no evidence that the country is less safe now that the lawless measures have been rescinded. Bush administration defenders often assert that its initial responses were driven by necessity, but the fact that we remain reasonably secure under a more law-bounded regime refutes that claim. Indeed, even some of Bush’s own security experts now recognize that our success rests on resisting overreaction. Michael Leiter, head of the National Counterterrorism Center under Presidents Bush and Obama, maintained at the Aspen Security Forum in July that the way to defeat terrorism is “to maintain a cultural resilience,” and that if we do not overreact, “our basic principles that have held our country together…can continue to do so.”

Third, the choice to jettison legal constraints has inflicted long-lasting costs. The principal reason that we have yet to bring any of the September 11 conspirators to justice, ten years after their abominable crimes, is that we chose to “disappear” and torture them, thereby greatly compromising our ability to try them. And the decision to deny those at Guantánamo any of the most basic rights owed enemy detainees turned the prison there into a symbol of injustice and oppression, exactly the propaganda al-Qaeda needed to foster anti-Americanism and inspire new recruits and affiliates.

He finishes by quoting one of America’s greatest judges, Learned Hand, who once observed that

“Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court can ever do much to help it. While it lies there it needs no constitution, no law, no court to save it.”

Yep.

Oh, and btw, while we were diverted by the abovementioned security theatre, the world’s bankers were robbing us blind.

Michael Hart RIP

Michael Hart, the man who founded Project Gutenberg and created the world’s first great collection of ebooks, has died. There’s a nice obituary of him by Gregory Newby on the Gutenberg site.

Michael prided himself on being unreasonable, and only in the later years of life did he mellow sufficiently to occasionally refrain from debate. Yet, his passion for life, and all the things in it, never abated.

Frugal to a fault, Michael glided through life with many possessions and friends, but very few expenses. He used home remedies rather than seeing doctors. He fixed his own house and car. He built many computers, stereos, and other gear, often from discarded components.

Michael S. Hart left a major mark on the world. The invention of eBooks was not simply a technological innovation or precursor to the modern information environment. A more correct understanding is that eBooks are an efficient and effective way of unlimited free distribution of literature. Access to eBooks can thus provide opportunity for increased literacy. Literacy, and the ideas contained in literature, creates opportunity.

Hart was ‘unreasonable’ in the sense of the famous George Bernard Shaw quotation: “Reasonable people adapt themselves to the world. Unreasonable people attempt to adapt the world to themselves. All progress, therefore, depends on unreasonable people.”

He certainly changed the world. I’ve lost count of the number of times I’ve found treasured texts in the Gutenberg archive. And the lovely Eucalyptus iPhone App has given it a new lease of life.

Old-fashioned craftsmanship

I’m not a bike geek but one of the most useful things I’ve ever bought is a Brompton folding bike. I got it about five years ago and it was fairly expensive at the time (and is even more so now). But it’s been a wonderfully liberating device. It usually lives in the boot of the car, and gives me amazing freedom from traffic jams in town. It also means that I no longer have to use the Tube when I go to London.

It had one flaw, though: the saddle that it came with was pretty mundane and uncomfortable. So this year when my kids asked me what I wanted for my birthday, for once I had an answer: I wanted a Brooks B17 leather saddle.

It’s a beautiful object which is hand-made in the English midlands.

There’s a quaint but informative company video on YouTube which explains how it’s done.

Oh — and it’s very comfortable.

Capitalism vs Patriotism

This is an excerpt from the transcript of a fascinating transcript of a CNN discussion between CNN’s Candy Crowley and Jim Hoffa, boss of the Teamsters union.

HOFFA: I think businesses are sitting on money. Look at Apple. They have $76 billion in their checking account. And they’re spending it.

CROWLEY: Which they are allowed to have.

HOFFA: But they are not doing anything with it. And instead of investing here, everything they do is in China or is in Asia somewhere. And the answer, look at Honda. Honda is building $1 billion plant, and they want to build it in Mexico. This is on the drawing board right now.

CROWLEY: It’s cheaper there.

HOFFA: Why isn’t it — well, we know that. But don’t they have an obligation to America to build it in America, to put people to work here instead of in Mexico? That’s what I believe.

You know, this is really — I think the president should challenge the patriotism of these American corporations that are sitting on the sidelines saying, why do we have high unemployment but I am not going to hire anybody? You know, they have an obligation just like the federal government, just like Obama. We have all got to get into the game. And I don’t see that happening. So the trillions and billions of dollars that they have on the sidelines, they have money, Pfizer and General Electric, they have trillions of dollars overseas, let’s start repatriating that money. Let’s start a program to get America going again.

The problem in America is not that we don't have enough money. We have got more money than any other country in the world. The problem is American businesses are not spending it and not getting it in the game. That’s how we are going to get America going again.

CROWLEY: I’m hearing tweets across the universe here because — I want to go back. Are you questioning the patriotism of Apple for sitting on money rather than hiring?

HOFFA: Yes, I am.

CROWLEY: Are you?

HOFFA: Yes, I am. What is it with a company that makes — and they sell most of their products here in the United States. I mean, they’re the biggest — Apple, you have got Apple Stores everywhere else.

They have been sitting on that kind of money and every time they do something, they do it in China, they do it somewhere else. There’s something wrong with that. Don’t they have an obligation?

CROWLEY: They would tell you that the high price of labor and the high cost of health care and the high cost of environmental — you know, drove them out of the country.

HOFFA: I don’t believe that at all. You know, we have companies here that make a lot of money like UPS. We have a number of great companies here that are functioning here that are union, Sikorsky, and they are doing very, very well.

You can do it here. But the answer is, you have to have the incentive. And so many companies like Mr. Coffee and all of these other companies that have closed and moved to Mexico, they are wrong. They are unpatriotic.

We have got to turn this around and say, hey, we are an American company, we owe an obligation to America, let’s put America back to work.

Funny thing: the only area when capitalism doesn’t conflict with patriotism is the so-called ‘defence’ industry.

Has the revolt begun against Apple’s iPad app fees?

This morning’s Observer column.

How things change. It seems only a few months ago that magazine and newspaper publishers, maddened by the fact that the Big Bad Web enabled readers to access their content for free (and sceptical about the effectiveness of paywalls), decided that Apple’s iPad was just the ticket. Henceforth, they would publish their stuff not as web pages but as iPad apps. Not only did this offer them a shiny device that would display their wares in glorious living colour, but it would also force cheapskates and freeloaders to pay real money for the privilege of accessing them. This was possible because nothing happens on the iPad without going through Apple’s iTunes store, and Steve Jobs knows your credit card details. Thus the “free riding” that was commonplace on the web would become a thing of the past.

Accordingly, publishers fell like ravening wolves on the iPad, investing large amounts of money and effort in developing apps to run on the device…