Those fearing imminent mass unemployment driven by robots and AI should be following stories like this. They also should be looking at the actual productivity numbers.
See also the details of work and the realities of automation.
Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago School economists and fellow travelers.
Those fearing imminent mass unemployment driven by robots and AI should be following stories like this. They also should be looking at the actual productivity numbers.
See also the details of work and the realities of automation.
November 9 marked the 30th anniversary of the fall of the Berlin Wall.
Peter Robinson, who drafted President Reagan’s speech including the line Mr. Gorbachev, tear down this wall!, has some thoughts.
Bill Brandt offers some remembrances and some video clips.
Bill’s post mentioned Anna Funder’s excellent book Stasiland: Stories from Behind the Berlin Wall, which I reviewed here.
An interesting website by a former East German MIG-21 pilot.
Financial Times recently had an article about a projected luxury dirigible. Being an airship fan, I wish the venture success. I was struck, though, by a paragraph in the article contrasting the planned aircraft, called the Airlander, with the airships of the 1930s with their “flammable hydrogen fuels.”
Uh…no. None of the airships of the 1930s used hydrogen as a fuel. Some of them used hydrogen as a lifting gas, which is a totally different thing from the fuel consumed to power the craft forward. And most American airships didn’t use hydrogen for any purpose…the American airships that came to bad ends mostly did so as a result of weather-related structural failure…which point, one would have thought, might have been relevant to someone writing about the possible future of airships.
But airships are a pretty esoteric subject, after all, so maybe it’s unreasonable to expect a journalist to spend (or get his assistant to spend) half an hour actually learning something about whatever he is writing about. So let’s talk about something that isn’t esoteric at all, but rather about as timely and important as it gets. Energy.
I’ve noticed that in articles about energy storage…of which there have been a lot…the writer rarely seems to grasp that kilowatts are not the same thing as kilowatt-hours, and you can’t express the storage capacity of a battery or other storage system in kilowatts. It would be like stating the capacity of your car’s gas tank in horsepower. (The same principle applies to megawatts and megawatt-hours, or gigawatts and gigawatt-hours) Yet all the time, I see articles…not just in the general media but also in the business media…talking about the wonderfulness of a battery or whatever that can store 4 megawatts.
For example, here’s a Barrons article referring to a town which has installed batteries “that can hold two megawatts of power.” Actually, the batteries at this facility can hold 3.9 megawatt-hours of energy…the 2 megawatts of power is about the rate at which energy can be added to or drawn from the system, and has nothing to say about the amount stored. So if you withdraw power at 2 megawatts, you can do so for a little under 2 hours before the battery storage is exhausted. You need the megawatt-hour number to know that; “2 megawatts” tells you nothing about the storage capacity.
Turning now to television journalism: I think Tucker Carlson is far superior to most TV commentators in terms of focusing on issues in some depth, rather than just obsessively circling in on whatever is hottest at the moment. But when recently introducing a guest who was going to talk about a highly-questionable sale to China that was made during the Clinton administration, he said that sale had been of “machine parts.” Actually, it was of machine tools, as the guest correctly explained.
Machine tools are one of the essential cornerstones of industry, and have been for a long time. Shouldn’t a person who frequently writes and/or speaks about economic issues know what a machine tool is and why it matters? Maybe I’m misinterpreting, but I think Tucker’s “machine parts” phrasing indicates that he has no such awareness.
Ben Rhodes, an Obama operative, said of the current generation of reporters: “The average reporter we talk to is 27 years old, and their only reporting experience consists of being around political campaigns. That’s a sea change. They literally know nothing.”
No doubt true of a large number of those younger reporters who Rhodes manipulated while feeling contempt for. But there are journalists–older and younger–who do have a pretty good grasp of history, geography, and comparative political systems…some of them even have some education or reading in political philosophy. But even among these, knowledge of technology–and by “technology” I do not mean just “computer stuff”–is pretty close to nonexistent.
And with the vastly increased influence of government over all aspects of the economy–and the even greater (much greater!) influence being sought by the current Democratic Party–such knowledge is pretty important.
Today being the 62nd anniversary of the Sputnik launch, here’s a rerun of a post about a very interesting book.
Rockets and People, by Boris E Chertok
Boris Chertok’s career in the Soviet aerospace industry spanned many decades, encompassing both space exploration and military missile programs. His four-volume memoir is an unusual documentpartly, it reads like a high school annual or inside company history edited by someone who wants to be sure no one feels left out and that all the events and tragedies and inside jokes are appropriately recorded. Partly, it is a technological history of rocket development, and partly, it is a study in the practicalities of managing large programs in environments of technical uncertainty and extreme time pressure. Readers should include those interested in: management theory and practice, Russian/Soviet history, life under totalitarianism, the Cold War period, and missile/space technology. Because of the great length of these memoirs, those who read the whole thing will probably be those who are interested in all (or at least most) of the above subject areas. I found the series quite readable; overly-detailed in many places, but always interesting. In his review American astronaut Thomas Stafford said “The Russians are great storytellers, and many of the tales about their space program are riveting. But Boris Chertok is one of the greatest storytellers of them all.” In this series, Chertok really does suck you into his world.
Chertok was born in Lodz, Poland, in 1912: his mother had been forced to flee Russia because of her revolutionary (Menshevik) sympathies. The family returned to Russia on the outbreak of the First World War, and some of Chertok’s earliest memories were of the streets filled with red-flag-waving demonstrators in 1917. He grew up on the Moscow River, in what was then a quasi-rural area, and had a pretty good childhood“we, of course, played “Reds and Whites,” rather than “Cowboys and Indians””swimming and rowing in the river and developing an early interest in radio and aviationboth an airfield and a wireless station were located nearby. He also enjoyed reading“The Adventures of Tom Sawyer and Huckleberry Finn met with the greatest success, while Harriet Beecher Stowe’s Uncle Tom’s Cabin gave rise to aggressive moods’Heyafter the revolution in Europe, we’ll deal with the American slaveholders!” His cousin introduced him to science fiction, and he was especially fond of Aelita (book and silent film), featuring the eponymous Martian beauty.
Chertok remembers his school years fondlythere were field trips to study art history and architectural styles, plus a military program with firing of both rifles and machine gunsbut notes “We studied neither Russian nor world history….Instead we had two years of social science, during which we studied the history of Communist ideas…Our clever social sciences teacher conducted lessons so that, along with the history of the French Revolution and the Paris Commune, we became familiar with the history of the European peoples from Ancient Rome to World War I, and while studying the Decembrist movement and 1905 Revolution in detail we were forced to investigate the history of Russia.” Chertok purused his growing interest in electronics, developing a new radio-receiver circuit which earned him a journal publication and an inventor’s certificate. There was also time for skating and dating“In those strict, puritanical times it was considered inappropriate for a young man of fourteen or fifteen to walk arm in arm with a young woman. But while skating, you could put your arm around a girl’s waist, whirl around with her on the ice to the point of utter exhaustion, and then accompany her home without the least fear of reproach.”
Chertok wanted to attend university, but “entrance exams were not the only barrier to admission.” There was a quota system, based on social class, and “according to the ‘social lineage’ chart, I was the son of a white collar worker and had virtually no hope of being accepted the first time around.” He applied anyhow, hoping that his journal publication and inventor’s certificate in electronics would get him in.” It didn’the was told, “Work about three years and come back. We’ll accept you as a worker, but not as the son of a white-collar worker.”
So Chertok took a job as electrician in a brick factory…not much fun, but he was soon able to transfer to an aircraft factory across the river. He made such a good impression that he was asked to take a Komsomol leadership position, which gave him an opportunity to learn a great deal about manufacturing. The plant environment was a combination of genuinely enlightened managementworker involvement in process improvement, financial decentralizationcolliding with rigid policies and political interference. There were problems with absenteeism caused by new workers straight off the farm; these led to a government edict: anyone late to work by 20 minutes or more was to be fired, and very likely prosecuted. There was a young worker named Igor who had real inventive talent; he proposed an improved linkage for engine and propeller control systems, which worked out well. But when Igor overslept (the morning after he got married), no exception could be made. He was fired, and “we lost a man who really had a divine spark.” Zero tolerance!
Chertok himself wound up in trouble when he was denounced to the Party for having concealed the truth about his parentsthat his father was a bookkeeper in a private enterprise and his mother was a Menshevik. He was expelled from the Komsomol and demoted to a lower-level position. Later in his career, he would also wind up in difficulties because of his Jewish heritage.
The memoir includes dozens of memorable characters, including:
*Lidiya Petrovna Kozlovskaya, a bandit queen turned factory supervisor who became Chertok’s superior after his first demotion.
*Yakov Alksnis, commander of the Red Air Forcea strong leader who foresaw the danger of a surprise attack wiping out the planes on the ground. He was not to survive the Stalin era.
*Olga Mitkevich, sent by the regime to become “Central Committee Party organizer” at the factory where Chertok was working…did not make a good first impression (“had the aura of a strict school matronthe terror of girls’ preparatory schools”)..but actually proved to be very helpful to getting work done and later became director of what was then the largest aircraft factory in Europe, which job she performed well. She apparently had too much integrity for the times, and her letters to Stalin on behalf of people unjustly accused resulted in her own arrest and execution.
*Frau Groettrup, wife of a German rocket scientist, one of the many the Russians took in custody after occupying their sector of Germany. Her demands on the victors were rather unbelievable, what’s more unbelievable is that the Russians actually yielded to most of them.
*Dmitry Ustinov, a rising star in the Soviet hierarchyaccording to Chertok an excellent and visionary executive who had much to do with Soviet successes in missiles and space. (Much later, he would become Defense Minister, in which role he was a strong proponent of the Soviet invasion of Afghanistan.)
*Valeriya Golubtsova, wife of the powerful Politburo member Georgiy Malenkov, who was Stalin’s immediate successor. Chertok knew her from schoolshe was an engineer who became an important government executiveand the connection turned out to be very useful. Chertok respected her professional skills, liked her very much, and devotes several pages to her.
*Yuri Gagarin, first man to fly in space, and Valentina Tereshkova, the first woman.
*Overshadowing all the other characters is Sergei Korolev, now considered to be the father of the Soviet space program although anonymous during his lifetime. Korolev spent 6 years in labor camps, having been arrested when his early rocket experiments didn’t pan out; he was released in 1944. A good leader, in Chertok’s view, though with a bad temper and given to making threats that he never actually carried out. His imprisonment must have left deep scarswriting about a field trip to a submarine to observe the firing of a ballistic missile, Chertok says that the celebration dinner with the sub’s officers was the only time he ever saw Korolev really happy.
Chertok’s memoir encompasses the pre-WWII development of the Soviet aircraft industry…early experiments with a rocket-powered interceptor…the evacuation of factories from the Moscow area in the face of the German invasion…a post-war mission to Germany to acquire as much German rocket technology as possible…the development of a Soviet ballistic missile capability…Sputnik…reconnaissance and communications satellites…the Cuban missile crisis…and the race to the moon.
Some vignettes, themes, and excerpts I thought were particularly interesting:
It has often been asserted that the US doesn’t need to worry overmuch about our position in Manufacturing, because Services are the future and that is where we will have the most competitive advantage. And, indeed, the balance of trade in services is more favorable than that in the goods-producing industries: for 2018, exports of services totaled $821 billion, whereas imports of services were only $557 billion.
However, while imports of services are today small compared with imports of goods, which for 2018 were almost $2.7 trillion, it would be a mistake to conclude that services businesses and services jobs are immune to offshoring. Indeed, for many types of services, offshoring/exporting is easier than the offshoring/importing of goods: there are no transportation issues, and, in the case of imports to the US, there are no tariffs at all.
Telemigration…the term was introduced by Richard Baldwin in his book The Globotics Upheaval…is the ability to have remote workers doing things that previously would have required their physical presence. Obviously, the ability to do this has been greatly enhanced by the availability of the Internet and other forms of high-bandwidth low-cost communications. Today, medical images and legal documents are being reviewed in low-cost-of-labor countries. Software is being developed for American companies in countries around the world. Offshoring of clerical operations has been practiced by US firms for a couple of decades, and, of course, the offshoring of customer service is common.
Baldwin also argues that telemigration will be greatly enhanced by the availability of machine translation technology, especially Google Translate. I think he may be overstating the case here–from what I’ve seen, the quality of GT translations is highly variable. Not sure how well this approach would work in facilitating the interaction that is often required among team members to create something or solve a problem, and I am sure I wouldn’t want to trust it exclusively for something like, say, translating the functional specifications for a life-critical avionics system to be programmed by non-English speakers.
But there are a lot of English-speakers in the world, and a lot of activities in which fluency in a common language is not essential.
One area in which a lot of telemigration seems to be occurring is in software development and maintenance. Here for example, is a company which acquires application software companies and offshores much of the ongoing work (which presumably includes incremental product enhancements as well as problem-fixing) to contract programmers: company’s chief recruiter asserts that the current cloud wage for a C++ programmer is $15 an hour. As the Forbes article notes, that’s what Amazon pays its warehouse workers. (Well, at least in the US–and $15/hour for a programmer in, say, India is surely worth a lot more than $15/hour in this country.) What makes this story particularly interesting is that the founder/CEO of the company was noted, in his earlier incarnation in a different software business, for paying software people very well indeed and going to great lengths to recruit them.