The 31-Year-Old in Charge of Dismantling G.M.

Monday, June 1st, 2009

Brian Deese is the 31-year-old in charge of dismantling G.M.:

It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors and rewriting the rules of American capitalism.

But that, in short, is the job description for Brian Deese, a not-quite graduate of Yale Law School who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry.

Nor, for that matter, had he given much thought to what ailed an industry that had been in decline ever since he was born. A bit laconic and looking every bit the just-out-of-graduate-school student adjusting to life in the West Wing — “he’s got this beard that appears and disappears,” says Steven Rattner, one of the leaders of President Obama’s automotive task force — Mr. Deese was thrown into the auto industry’s maelstrom as soon the election-night parties ended.

“There was a time between Nov. 4 and mid-February when I was the only full-time member of the auto task force,” Mr. Deese, a special assistant to the president for economic policy, acknowledged recently as he hurried between his desk at the White House and the Treasury building next door. “It was a little scary.”
[...]
Mr. Deese’s route to the auto table at the White House was anything but a straight line. He is the son of a political science professor at Boston College (his father) and an engineer who works in renewable energy (his mother). He grew up in the Boston suburb of Belmont and attended Middlebury College in Vermont. He went to Washington to work on aid issues and was quickly hired by Nancy Birdsall, a widely respected authority on the effectiveness of international aid and the founder of the Center for Global Development.

But he wanted to learn domestic issues as well, and soon ended up working as an assistant for Gene Sperling, who 17 years ago in the Clinton White House played a similar role as economic policy prodigy. Eventually, Mr. Deese headed to Yale for his law degree. But his e-mail box was constantly filled with messages from friends in Washington who were signing up to work for the Obama or Hillary Rodham Clinton campaigns. Mr. Deese chose Senator Clinton’s.

“He was pretty quickly functioning as the top economic policy staffer through her campaign,” Mr. Sperling said. “He could blend the policy needs and the political needs pretty seamlessly.” On the day that the Clinton campaign ended, Mr. Deese left her concession speech and received a message on his BlackBerry from a friend in the Obama campaign urging him to sign on immediately to Mr. Obama’s team.

Not Pathetic Enough

Monday, June 1st, 2009

Jay Heinrichs has imperfect children:

Those of you who don’t have perfect children will find this familiar: Just as I was withdrawing money in a bank lobby, my 5-year-old daughter chose to throw a temper tantrum, screaming and writhing on the floor while a couple of elderly ladies looked on in disgust. (Their children, apparently, had been perfect.)

He gave his daughter Dorothy a disappointed look and said something:

She blinked a couple of times and picked herself up off the floor, pouting but quiet.

“What did you say to her?” one of the women asked.

He had said, “That argument won’t work, sweetheart. It isn’t pathetic enough.”

To disagree reasonably, a child must learn the three basic tools of argument. I got them straight from Aristotle, hence the Greek labels: logos, ethos, and pathos.

You see, Heinrichs has decided to teach his children rhetoric, and an artfully pathetic argument is one that effectively plays on the audience’s emotions, not the speaker’s.

Heinrich concludes with Aristotle’s Guide to Dinner Table Discourse:

  1. Argue to teach decision-making. When you argue the various sides of an issue with your kids (“Beach or mountains this summer?”), they are learning to present different options (“Both!”) and then decide which choice to follow.
  2. Focus on the future. Arguments about the past (“Who made the mess with the toys?”) or the present (“Good children don’t leave messes.”) are far less productive than focusing on what to do or believe: “What’s a good way to make sure that toys get cleaned up?”
  3. Call “fouls.” Anything that impedes debate counts as a foul: Shouting, storming out of the room, or recalling past family atrocities should instantly make you choose the opposite side.
  4. Reward the right emotions. Respond to screaming and anger by not responding, except to say, “Oh, come on. You can do better than that.”
  5. Let kids win sometimes. When they present a good argument, there’s no better teaching method than rewarding them. My overreliance on the slow cooker, for instance, made my son beg for “dry” food. “Even the cat’s meals,” he said, “aren’t all wet.” Good point. I served hamburgers next. Very dry hamburgers.

The Flimsy Doorknob & A Forgettable Receipt

Monday, June 1st, 2009

Dustin Curtis tells the parable of the flimsy doorknob & a forgettable receipt:

A while ago, I went to a dinner party at the house of a very wealthy executive in San Francisco. The food was great, but the house was absolutely, insanely beautiful. The living room has large, 20-foot-tall floor-to-ceiling windows that expose the entire San Francisco Bay. The kitchen has 3-inch-thick transparent blue glass countertops with slightly red-shifted LEDs embedded underneath to create a warm explosion of light. And the bathroom sinks are made of imported Itallian blown glass. The toilet paper is even custom made with the logo of the executive’s company embossed on each sheet. Just about everything in the house is remarkable.

But there’s one part of the experience that really dampened everything for me. As I was entering the bathroom, I grabbed the doorknob and it felt loose and hollow, like cheap crap. As I closed the door behind me, the click of the latching mechanism didn’t feel… substantial enough. The door in this incredible house is complemented by flimsy, shitty hardware.

For a long time, I thought about how this amazing house could have such shitty doorknobs; it just didn’t make sense to me. After all, there’s only two things you ever really physically touch and interact with in a home on a regular basis: the doorknobs and the sink/toilet controls. It always seemed obvious to me that architects, home builders, and interior designers would focus on those things first, to make sure they feel solid, substantial, and at least match the quality of other aspects of the home. During the past few months, I’ve been asking some of them about this problem. And it has been a complete shock to me that most had not even realized it existed until I pointed it out.

Curtis has found this same pattern elsewhere — like the$1,000 receipt that cost $0.02:

A few months ago, I went to a restaurant in New York City called MASA. It is supposedly one of the greatest Japanese restaurants in the world. The food there is delicately prepared. The atmosphere in the dining room is carefully designed to produce the perfect emotional experience. Even the air circulation system was built to push light amounts of air over specific tables. When you pay $500 for a meal, you expect perfection like this. But at the end of my experience, I was presented with something that, like the doorknobs in the executive’s home, totally sucked the awesomeness out of my meal. I was given a receipt that looks like the one [to the left].


This particular behavior has always baffled me. When a customer leaves a business, there is generally only one physical thing they take with them as a reminder of the experience: the receipt. But most companies treat the receipt as a wasted expense — and buy the shittiest and crappiest paper and ink possible — instead of as a marketing expense. [...] For some reason, I have never seen a receipt treated as a marketing/branding opportunity. For example, imagine if you went to Starbucks and received the receipt [to the left].

A Financial Zud

Monday, June 1st, 2009

A financial zud has fallen on the Mongolian steppe:

Waves from the global economic downturn hit Sodnomdarjaa Khaltarkhuu when bank officials showed up at his tent on the edge of the Gobi desert and threatened to foreclose on his goats, sheep and camels.

Falling demand for cashmere among recession-hit shoppers in the West is cutting into earnings among nomadic herders in Mongolia, whose goats produce the soft fiber used in high-end sweaters, scarves and coats. The result: herder loan defaults.

Mongolians are calling the current situation a financial zud, invoking a local term for unusually harsh winters that devastate herds. After Mr. Sodnomdarjaa couldn’t pay back a $2,700 loan, he says bank officials pressed him to sell his livestock — which he used as collateral. The bank says he misrepresented the number of animals he owned, which he denies. Now a judge has ordered the seizure of Mr. Sodnomdarjaa’s family home — a tent — if he doesn’t come up with the rest of the money soon.

It’s a familiar story:

Some herders, betting on continued strong cashmere prices, borrowed more than they should have, and spent the money on the Mongolian equivalent of conspicuous consumption: motorbikes and solar panels to provide electricity for their tents. Banks, looking to cash in on rural prosperity in the good years, didn’t pay enough attention to risk management and lent too freely, some bankers say. [...]
Many banks have cut back on new lending. And a flood of forced sales has helped drive down prices for animals, skins and meat.

David Foster notes that the story reminds him of a passage from Hendrik Willem Van Loon’s The Story of Mankind, published in 1921:

Unfortunately in the year 1914 the whole world was one large international workshop. A strike in the Argentine was apt to cause suffering in Berlin. A raise in the price of certain raw materials in London might spell disaster to tens of thousands of long-suffering Chinese coolies who had never even heard of the existence of the big city on the Thames. The invention of some obscure Privat-Dozent in a third-rate German university would often force dozens of Chilean banks to close their doors, while bad management on the part of an old commercial house in Gothenburg might deprive hundreds of little boys and girls in Australia of a chance to go to college.

It also reminds him of some dark thoughts from Ralph Peters, published in 2006:

Globalization is real, but its power to improve the lot of humankind has been madly oversold. Globalization enthralls and binds together a new aristocracy — the golden crust on the human loaf — but the remaining billions, who lack the culture and confidence to benefit from “one world,” have begun to erect barricades against the internationalization of their affairs. And, from Peshawar to Paris, those manning the barricades increasingly turn violent over perceived threats to their accustomed patterns of life. If globalization represents a liberal worldview, renewed localism is a manifestation of reactionary fears, resurgent faiths, and the iron grip of tradition. Except in the commercial sphere, bet on the localists to prevail.

When the topic of resistance to globalization arises, an educated American is apt to think of a French farmer-activist trashing a McDonald’s, anarchist mummers shattering windows during World Bank powwows, or just the organic farmer with a stall at the local market. But the swelling resistance to globalization is far more powerful and considerably more complex than a few squads of drop-outs aiming rocks at the police in Seattle or Berlin. We are witnessing the return of the tribes–a global phenomenon, but the antithesis of globalization as described in pop bestsellers. The twin tribal identities, ethnic and religious brotherhood, are once again armed and dangerous.

What One Mom Learned From the SATs

Monday, June 1st, 2009

On a bet from her son, Sue Shellenbarger took the SAT again after 41 years to see how a 57-year-old mom would do:

Life for teens is indeed harder, my experiment taught me, but not in the way I expected. Aging took a toll on my mental abilities, to be sure, but I was able to erase most of the losses by studying. What surprised me more were the psychological hurdles. Coping with the ramped-up expectations and competitiveness that infuse the SAT process — a reflection of our entire culture — sent me into a tailspin of adolescent regression, procrastination and sloppy study habits, all the behaviors I’ve taught my children to avoid. What I learned will make me a more tolerant parent.

Her diary entry from April 24:

I am far behind my original study plan, completing only five of the Study Guide’s eight practice tests. My study habits have gone down the tubes. I started out working in a disciplined way at our quiet, well-lighted kitchen table. But I’m becoming frustrated with this thankless process. After learning a math concept one night, I’ve forgotten it by the next; my brain seems to lack a holding bin. Anxiety over functions and formulas is ever-present. Slicing a grilled-cheese sandwich diagonally, I find myself pondering the length of the hypotenuse.

I abandon the bright, orderly kitchen table and kick back on the couch. With the TV babbling, a snack in hand and my feet on the coffee table, I leaf through the Study Guide lackadaisically. My inner parent rages: “Turn off that TV! Put away those chips! Don’t you realize the SAT is only a week away?” But my inner teenager ignores her. The studying is so taxing, I realize, that I’m yearning for small comforts.

She didn’t do too badly, for all her talk of mental decay:

Not Pathetic Enough

Monday, June 1st, 2009

Jay Heinrichs has imperfect children:

Those of you who don’t have perfect children will find this familiar: Just as I was withdrawing money in a bank lobby, my 5-year-old daughter chose to throw a temper tantrum, screaming and writhing on the floor while a couple of elderly ladies looked on in disgust. (Their children, apparently, had been perfect.)

He gave his daughter Dorothy a disappointed look and said something:

She blinked a couple of times and picked herself up off the floor, pouting but quiet.

“What did you say to her?” one of the women asked.

He had said, “That argument won’t work, sweetheart. It isn’t pathetic enough.”

To disagree reasonably, a child must learn the three basic tools of argument. I got them straight from Aristotle, hence the Greek labels: logos, ethos, and pathos.

You see, Heinrichs has decided to teach his children rhetoric, and an artfully pathetic argument is one that effectively plays on the audience’s emotions, not the speaker’s.

Heinrich concludes with Aristotle’s Guide to Dinner Table Discourse:

  1. Argue to teach decision-making. When you argue the various sides of an issue with your kids (“Beach or mountains this summer?”), they are learning to present different options (“Both!”) and then decide which choice to follow.
  2. Focus on the future. Arguments about the past (“Who made the mess with the toys?”) or the present (“Good children don’t leave messes.”) are far less productive than focusing on what to do or believe: “What’s a good way to make sure that toys get cleaned up?”
  3. Call “fouls.” Anything that impedes debate counts as a foul: Shouting, storming out of the room, or recalling past family atrocities should instantly make you choose the opposite side.
  4. Reward the right emotions. Respond to screaming and anger by not responding, except to say, “Oh, come on. You can do better than that.”
  5. Let kids win sometimes. When they present a good argument, there’s no better teaching method than rewarding them. My overreliance on the slow cooker, for instance, made my son beg for “dry” food. “Even the cat’s meals,” he said, “aren’t all wet.” Good point. I served hamburgers next. Very dry hamburgers.

Rocks in the Rocket Science Lobby

Monday, June 1st, 2009

In 1994, Rocket Science Games was the hip, new, edgy, “Hollywood meets Silicon Valley” video game company — or, alternatively, a “big hat, no cattle” startup — with a rock in the lobby:

Our receptionists’ desk was built on the wing of a WWII P-51 fighter plane, and the rest of the office décor matched. All that is, except for our lobby, as our offices were on the 4th floor. When you got off the elevator, you faced a non descript corporate-looking set of walls.

This was about the time Christies and Sotheby’s were starting to auction Soviet space program artifacts, and I was thinking that perhaps a spacesuit in the lobby would be appropriate given our name.
[...]
A week later as our employees came up the elevator there was a Lucite case on a pedestal with a single grey rock, lit with a single spotlight, on a velvet pillow. In front of it was a brass plaque that read:

“Moon rock, Apollo 18, July 1973 – Copernicus Crater.”

For the next few years, people from all around South of Market would come by the Rocket Science Games lobby to see our moon rock. It added to the mystique of the company – which helped with raising money and getting press ink. Everyone agreed that having our own moon rock was way cool.


In all that time, not a single person who admired the moon rock questioned its provenance or authenticity. A bit surprising considering the intersection between geekdom and space. Maybe it was just too much ancient history.

NASA’s moon missions ended at Apollo 17.

The rock was a piece of rubble from the [recently demolished] Embarcadero Freeway.

Only over time would I realize it augured the future of the company.

Simplify

Monday, June 1st, 2009

Eric S. Raymond believes that CS IQ — that is, programming talent — is largely the ability to form what philosophers call generative models:

They can reason forward about how causal effects will ripple through the rest of the model when the state of some part of it changes. They can also reason backward about what sort of state change would be required to produce a specified effect.

If you’ve worked with bad programmers, you know they lack any such talent. This is old news though.

What caught my eye was a comment from one Saltation. He shares the story Woz told, of how he was forced to learn and do all his early designs in his head, because he didn’t have the physical kit, so he spent an inordinate amount of time optimizing his designs, rather than soldering them together. He made a point to get his designs down to the absolute minimum number of parts — which brings us to Saltation’s pilot father’s favorite quote, an old maxim from Harry Hawker:

Simplify — and add lightness!

War is cruelty

Monday, June 1st, 2009

General Sherman famously replied to the government of Atlanta that war is cruelty, and you cannot refine it — but citing that one famous line misses the full message:

This letter contains the core message of the “tit for tat” strategy. Once attacked, you ruthlessly fight back until the enemy surrenders. Then you are magnanimous in victory and not one moment beforehand. Sherman’s March to the Sea devastated the South, including Atlanta, but it helped break the Confederacy. In all, the South lost 5% of its population and almost 2/3rds of its property from the war. The South could have ended the suffering at any point by saying “enough.”

Read the whole letter — and think about how few primary sources we ever have students read in school.