Academia

Business Stories

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We’ve talked before here about the point that most fiction seems to be about people who are lawyers, policemen, criminals, soldiers, spies, students, politicians, and noble but struggling writers. But there are indeed some works of fiction, and some vivid personal memoirs, in which business plays a central role without being portrayed simplistically or as stereotypically evil. Here are some that I like…please add your own favorites in the comments.   (I posted this at Ricochet, in slightly different form, about a week ago)

The Current War, a recent movie about the late-1800s power struggle to determine which technology…AC or DC…will dominate America’s electrical distribution system. Edison, Westinghouse, and Tesla are the key characters, played by Benedict Cumberbatch, Michael Shannon, and Nicholas Hoult respectively. My review is  here.

The Big Short, a 2015 film about the 2007-2008 financial crisis, based on Michael Lewis’s book. A hedge fund manager concludes that the subprime-loan market is not sustainable, and makes a billion-dollar bet against the relevant mortgage-backed securities. Based on real events. I thought it was very well done.

God is an Englishman, R F Delderfield. Following his return to England from the Crimean War, Adam Swann identifies a business opportunity: although railroads are being built throughout the country, there will always be sources and destinations of freight which are not on the tracks. Hence, the potential for a nationwide gap-filling road haulage business based on the systematic use of horse-drawn wagons. (This is the first book of a three-book series called the Swann Family Saga.)   Reviewed here.

Oil for the Lamps of China, Alice Tisdale Hobart. This 1933 novel is about a young American working as a sales rep in China, focused on selling oil for his employer (unnamed, but clearly based on Standard Oil) and increasing volumes by promoting the kerosene lamp as a better alternative to traditional lighting methods. The book was the basis for a 1935 movie of the same name…the film has its moments, but overall is not worthy of the book.

Father, Son, and Company, by Thomas Watson Jr. This is the best business autobiography I’ve read. It’s about Watson Jr (the long-time CEO of IBM), his difficult relationship with his father, the company they built, and the emergence of the computing industry. It is an emotional, reflective, and self-critical book, without the kind of “here’s how brilliant I was” tone that afflicts too many executive autobiographies. I reviewed it  here.

A Man in Full, by Tom Wolfe. The central character of this 1988 novel is Charlie Croker, an Atlanta real-estate developer who has gotten himself into way too much debt. Other characters include Charlie’s current and former wives, the Black mayor of Atlanta, the bankers who must deal with the debt problem, and a warehouse worker at one of the Croker enterprises. The book also casts a not-very-complimentary light on the Atlanta society/arts scene.

Trial by Fire, Stephen Buck. The adventures of a Honeywell field engineer in the early days of process-control computing. The book’s title reflects the point that the industrial processes being controlled frequently involved combustion, sometimes in scary circumstances. Much of the author’s work took place outside the US, in countries ranging from Poland to Brazil.

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The Inclusive Symbolism Crowds Out the Intellectual Substance.

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Good afternoon, dear reader. Jonathan Gewirtz and David Foster have invited me to participate in Chicago Boyz. I’m going to limit my presence here to occasional mini-dissertations on education, political economy, or transportation.

My first post is a cross-post from my primary web journal, Cold Spring Shops.

Inside Higher Ed’s Elin Johnson shares the bad news.  “Percentage of students who have met English and math benchmarks lowest in 15 years.”  The proximate cause appears to be a lack of preparation.

Almost 1.8 million students, or 52 percent of the 2019 graduating class, took the ACT.

Of the Class of 2019 who took the test, 37 percent met three of the four College Readiness Benchmarks, and 36 percent did not meet any. The latter number has grown over the past few years, reports ACT. Students who took the recommended high school core curriculum stayed steady in their readiness in English and math.

“As we’ve been pointing out for many years, taking the right courses in high school dramatically increases a student’s likelihood to be ready for success when they graduate,” said Marten Roorda, ACT CEO, in a press release. “Students who don’t take challenging courses — particularly those from underserved populations — may lack the self-confidence and ambition to do so, and social and emotional learning instruction can help them improve in those areas.”

I’d like to think that, oh, inculcating bourgeois habits and teaching the substance would work, but that’s not how the people whose salaries depend on them not seeing it respond.

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It’s OK To Be White

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Being myself a person of decided pallor, and increasingly cynical about current social-justice principles being inflicted on captive campus audiences at every level from kindergarten on up through graduate school, I am over in a corner snickering uncontrollably about the current mass freak-out in educational circles over the appearance of anonymous and unsigned posters with the simple declaration that “It’s OK to be White.” No, seriously these things are apparently “hate-filled … sick and outrageous behavior … revolting actions,” and those found to have participated in distributing the flyers, “subject to the severest disciplinary actions, including dismissal as well as possible civil and criminal actions.”

So much for freedom of speech, open-minded discussion of differences in the realm of academia. So much for respecting differing points of view. Well done, wokiest of the woke in the sacred groves and campus.

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So, Really Want to Talk About Foreign Intervention? (updated)

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Much ink and many photons have been spent discussing Russia’s attempts to influence (or at least disrupt) the American 2016 Presidential campaign.  Meanwhile…

Daryl Morey, general manager of the Houston Rockets, sent out a tweet which said “Fight for Freedom, Stand with Hong Kong.”  Tencent, the NBA’s  exclusive digital partner in China, reacted by suspending business relations with the Rockets, and is offering fans who purchased a year-long pass to watch Rockets games the chance to switch it to a different team. A number of other Chinese companies have pulled sponsorship deals with the Rockets as well.  Morey issued an apology which said in part ” was merely voicing one thought, based on one interpretation, of one complicated event. I have had a lot of opportunity since that tweet to hear and consider other perspectives.”

And from last year:  here’s an appalling story  about how anger from the Chinese government led Marriott Corporation to fire an employee who had ‘liked’ a tweet which congratulated the company for listing Tibet as a country, along with Hong Kong and Taiwan….of course, the Chinese regime considers Tibet to be a part of China, not a separate country.

China forced Marriott to suspend all online booking for a week at its nearly 300 Chinese hotels. A Chinese leader also demanded the company publicly apologize and “seriously deal with the people responsible,” the Journal reported.

And boy, did Marriott ever apologize. Craig Smith, president of the hotel chain’s Asian division, told the China Daily that Marriott had committed two significant mistakes — presumably the survey listing Tibet and the liked tweet — that “appeared to undermine Marriott’s long-held respect for China’s sovereignty and territorial integrity.”

He announced an “eight-point rectification plan” that included education for hotel employees across the globe and stricter supervision.

And the Marriott executive said this to China’s most-read English-language newspaper: “This is a huge mistake, probably one of the biggest in my career.”

(More here…according to this article, the Chinese suppression of Marriott bookings was in response to the initial listing of Tibet as a country rather than to the tweet approving of this listing)

The Chinese economy is, shall we say, a little more dynamic than that of Russia, so the government of China has much more ability to strong-arm American corporations (in general) than does the Putin regime.

Turning now from the hotel industry to the movie industry, Richard Gere says that Chinese pressure due to his stand on Tibetan independence has led to his being dropped from big Hollywood movies.  Also:

Gere’s activities have not just made Hollywood apparently reluctant to cast him in big films, he says they once resulted in him being banished from an independently financed, non-studio film which was not even intended for a Chinese release.

“There was something I was going to do with a Chinese director, and two weeks before we were going to shoot, he called saying, ‘Sorry, I can’t do it,’” Gere recalled. “We had a secret phone call on a protected line. If I had worked with this director, he, his family would never have been allowed to leave the country ever again, and he would never work.”

See also How China’s Censors Influence Hollywood.  Because the Chinese market is so large…(Fast and Furious 7 pulled in $388 million in China, more than it made in the US)…the influence of the Chinese regime on US film production and distribution has become immense.

In recent years, foreign filmmakers have also gone out of their way not to provoke the Communist Party. For instance, the 2012 remake of the Cold War action movie,  Red Dawn,  originally featured Chinese soldiers invading an American town. After filming was complete, though, the moviemakers went back and turned the attacking army into North Koreans, which seemed a safer target, at least until last year’s hack of Sony Pictures.

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Ying Zhu, a professor of media culture at the College of Staten Island at the City University of New York, worries China’s growing market power is giving the Communist Party too much leverage over Hollywood.

“The Chinese censors can act as world film police on how China can be depicted, how China’s government can be depicted, in Hollywood films,” she says. “Therefore, films critical of the Chinese government will be absolutely taboo.”

In the late 1990s, when China’s box office was still small, Hollywood did make movies that angered the Communist Party, such as  Seven Years In Tibet,  about the life of the Dalai Lama, and  Red Corner,  a Richard Gere thriller that criticized China’s legal system. Given the importance of the China market now, Zhu says those movies wouldn’t get financing today.

Plus,  Chinese companies have snapped up Hollywood studios, theaters and production companies.

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Trump and the Ukrainian Translator

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Margaret Ball suggests that the real issue identified by the Trump-Ukraine transcript is the pain that was imposed on the translator who had to translate Trump’s words…which at least appear to be pretty much stream-of-consciousness…into Ukrainian!  Plentiful vodka, she says, was surely required to recover from the experience.

It strikes me that a profession is kind of like a language, as is a social milieu.  Many of those who find President Trump offensive, I suspect, find it jarring and inappropriate that he doesn’t speak in the forms that they would normally expect from one in his position, and they find that translating his speech to their accustomed verbal frames of reference to be as difficult and disorienting as the Ukrainian translator likely found Trump’s communication in English to be.

Not only is Trump’s style of speech off-putting to many, so is his mode of thought.  Most national journalists, academics,  and “public intellectuals” are deductive thinkers, who need to put everything into a framework that they have adopted.  Trump, on the other hand, is largely an inductive, intuitive, and pattern-recognizing thinker.  Years ago, I found The Art of the Deal to be a somewhat frustrating read, despite my strong professional interest in the topic.  I am a more deductive thinker and communicator than Trump…but I have enough of the inductive/intuitive/pattern-recognizing mode to be able to understand and appreciate what Trump is doing.  Most of the journalists, academics, and “public intellectuals” do not.

Some types of people also find it disconcerting when people attain their positions in any manner other than the conventionally-approved course.  Here’s Andy Kessler, writing in the WSJ a few days ago about his time at Morgan Stanley:

““What year were you?” a colleague asked me years ago. “Huh? Year?” I replied. “What year at HBS?” H-B-what? “What year did you graduate from Harvard Business School?” Oh, I get it now. “I didn’t go to HBS,” I told him. “Actually, I don’t have an M.B.A.” After a long pause and scrunched-up face, he asked, “Well, then how the hell did you get a job here?” As I walked away, I murmured under my breath, “Maybe I earned it.””

This also…the negative feeling about somebody who didn’t get there in the way one is supposed to get there…also plays a role in hostile attitudes toward Trump.