A daily dose of philosophical food for your noodle... bacon for your brain!
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Wednesday, December 28, 2011

Upselling Versus Building Relationships

By Diana Hsieh

Ron Johnson on What I Learned Building the Apple Store:

People come to the Apple Store for the experience -- and they're willing to pay a premium for that. There are lots of components to that experience, but maybe the most important -- and this is something that can translate to any retailer -- is that the staff isn't focused on selling stuff, it's focused on building relationships and trying to make people's lives better.

That may sound hokey, but it's true.

The staff is exceptionally well trained, and they're not on commission, so it makes no difference to them if they sell you an expensive new computer or help you make your old one run better so you're happy with it. Their job is to figure out what you need and help you get it, even if it's a product Apple doesn't carry.

Compare that with other retailers where the emphasis is on cross-selling and upselling and, basically, encouraging customers to buy more, even if they don't want or need it. That doesn't enrich their lives, and it doesn't deepen the retailer's relationship with them. It just makes their wallets lighter.
That's awesome... and worth remembering in business. Also, I'd be curious to know whether the Microsoft Stores -- which seem like rip-offs of Apple Stores on the surface -- are run on the same underlying principles or not.

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Friday, November 18, 2011

Ari Armstrong: Occupy Wall Street Versus Occupy McDonalds

By Diana Hsieh

Ari Armstrong created a good video contrasting Occupy Wall Street with the friendly capitalist exchanges at the nearby McDonald's.



I love Ari's interview style of just letting people speak for themselves, particularly in this case, where the occupiers reveal so much.

On a funnier note, I loved this segment from The Daily Show:



And the two segments with Stephen Colbert -- Part 1 and Part 2 were funny too:



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Wednesday, October 5, 2011

Steve Jobs, Gone Forever

By Diana Hsieh

Apple reports that Steve Jobs has died.

Thank you Steve, for all that you did to make my life so much more productive, interesting, easy, and fun. The world is a bleaker place today.

I just want to cry.

Update: I created a Facebook page to express my gratitude to Steve Jobs and allow others to do so too: Thank You, Steve Jobs:



Please post your personal thank-you to Steve Jobs on its wall.

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Tuesday, October 4, 2011

Capitalism Awareness Week: Lecture: The Financial Crisis: Causes, Consequences and Cures

By Diana Hsieh

Hooray! The fourth and final event of Capitalism Awareness Week is tonight... and you can watch it live via streaming! Here's the announcement:

The Financial Crisis: Causes, Consequences and Cures

John Allison, Former Chairman and CEO, BB&T Corporation

The cause of the recent financial crisis and subsequent economic downturn has been hotly debated over the last few years. The media, politicians, and even many businessmen have placed the blame on the supposed excesses of free-market capitalism. In this lecture, John Allison, former Chairman and CEO of BB&T, argues that this crisis is in fact a legacy of government's anti-capitalist policies.

Mr. Allison presents his unique perspective of the financial services industry to support his argument that massive government intervention into the U.S. economy—from the creation of the Federal Reserve in 1913 to a reckless crusade to encourage home-ownership—laid the groundwork for an unsustainable real estate boom. He offers his views on what contributed to the financial crisis and how the government's response to the inevitable bust—a frenzied series of bailouts, nationalizations, and "stimulus" efforts—is only making things worse.

Finally, Mr. Allison discusses some of his proposed immediate and long-term solutions for moving us towards a stronger economy. Mr. Allison will demonstrate that capitalism, far from being the cause of our financial troubles, is its only cure.

Tuesday, October 4th
5:00 PM Pacific, 6:00 PM Mountain, 7:00 PM Central, 8:00 PM Eastern
North Carolina State University and live streamed online worldwide
You can watch the event live from this page.

Remember, if you've not yet contributed to these awesome efforts by The Undercurrent but you'd like to do so... it's not too late! Paul and I won't be matching funds as with the first $2000 contributed, but your money will be well-spent!

To make a one-time donation, use this PayPal link. To make a recurring donation, visit TU's donation page and follow the instructions for "Recurring Monthly Payments."

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Monday, September 19, 2011

NetFlix Shoots Its Own Foot

By Diana Hsieh

NetFlix announces a major change to its business model:

...we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It's hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to "Qwikster".

... Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. ... A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn't show up on Netflix, and vice-versa.
My reaction? I immediately cancelled my streaming account -- something that I didn't even consider after the price increase a few months ago. I don't use that nearly as much as the DVDs, and I'm just not interested in the hassle of managing two separate queues. Instead, I'll likely check out Amazon's streaming service.

Based on the 11,000-plus comments, I'm not alone.

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Friday, September 16, 2011

Video: The Morality of Extreme Couponing

By Diana Hsieh

In Sunday's Rationally Selfish Webcast, I discussed the morality of extreme couponing. The question was:

Is "extreme couponing" moral? Earlier this year, the Boston Globe wrote about people who engage in "extreme couponing." Basically, they find ways to redeem store coupons in a fashion that still abides by the rules, but they get free stuff out of the deal. Are these people moral, or are they parasites because they don't actually live by trading value for value? Are they violating rights?
Here's the video of my answer:

If you like it, please share it! Also, all my webcast and other videos can be found on my YouTube channel.

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Tuesday, September 6, 2011

NoodleCast #95: Interview with Jonathan Hoenig on Labor Day

By Diana Hsieh

On Monday, Jonathan Hoenig of Capitalist Pig interviewed me on WLS 890 AM of Chicago about the meaning of Labor Day and the role of the mind in production. (He was acting as a substitute host.)

It was the first radio interview that I've done, and I hope the first of many. While I see much room for improvement, I'm darn pleased with how it went. Many thanks to Jonathan Hoenig!

Listen Now


    12:35 minutes
Download This Episode
Subscribe to the Feed

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Tuesday, July 26, 2011

The Bizarro Online Market for Stolen Credit Card Numbers

By Paul Hsieh

The NPR show Planet Money recently aired a fascinating story about the underground online market for stolen credit card numbers. (Click on the link to listen to the audio file.)

Basically, this underground market has many features of legitimate online sales websites (such as eBay or Amazon), but with some curious inversions.

For instance, you can't get an account unless two other current members (who are also criminals) can "vouch" for you as also being a fellow criminal.

However, to do any kind of "business" they still have to rely on some of the same mechanisms that honest marketplaces use. For instance, there are rating systems for buyers to give feedback on sellers of these stolen credit cards. Getting a good A+ rating as a seller is critical to this sort of "commercial" success. Many sellers also have FAQ's ("Do you offer discounts for bulk purchases?", etc.) that mirror the sorts of FAQs one sees on eBay.

Of course, the transactions are conducted not via credit card (heh), but through other forms of secure digital currency.

Other funny/bizarre tidbits:

  • The site moderator warns users not to use ALL CAPS in their posts, otherwise, they'll be banned.

  • To get in, you also have to click on a "Terms of Use" box that states you're not a journalist nor a law enforcement officer. In other words, they are relying on the "honesty" of the bad guys. (Of course, the story was aired by an NPR journalist working with an FBI agent who quite appropriately "agreed" to those terms without any moral qualms.)

    (Update: SteveD points out that the Terms of Use are relying on the honest of the good guys, not the bad guys. Yes -- quite right!)

  • Many of the big operations end up functioning like real businesses, hiring employees, etc. In other words, they "successful" bad guys have to work hard for their ill-gotten gains -- which makes one wonder why they don't just get honest jobs.
As I listened to the story, it really struck me how the bad guys were in so many ways parasitical upon methods and practices of genuine honest producers.

The full story lasts about 30 minutes and I highly recommend listening to the whole thing! (Download the audio file.)

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Wednesday, May 25, 2011

Video: Responsibility and Wealth

By Diana Hsieh

In Sunday's Rationally Selfish Webcast, I answered the following question about wealth and responsibility from Objectivist Answers:

Doesn't greater wealth entail greater responsibility? If you have amassed a great fortune, don't you also have to shoulder a greater responsibility to society and your fellow man than others? After all, success in business doesn't occur in a vacuum: it always depends on the community to some extent. People like Michael Bloomberg or George Lucas know that they would not be where they are today without some pretty significant assistance from others. So shouldn't they assume more responsibility for their fellow man than others?
Here's my brief answer, now posted to YouTube:

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Tuesday, August 3, 2010

Rationally Selfish Q&A: Character in Hiring

By Diana Hsieh

Many thanks to the 75 people who voted 361 times on 10 questions for the first edition of my Rationally Selfish Q&A. I'm delighted by that response to this experiment, and I hope that you enjoy my answer to the top-voted question below.

Given the enthusiastic response so far, I'm pleased to continue the experiment. You can submit and vote on questions for next week's Q&A on this page. I didn't pre-load any questions this time, so please submit yours! However, some great questions lost by only a few votes last week. You're welcome to resubmit any of interest for consideration this week, if you like.

Now, without further ado:

What are the most important qualities of character to look for when you hire people, besides technical ability? How can you determine if a person has those qualities?

More than anything else, honesty -- down to the very marrow of the soul.

Some years ago, when working as a web programmer, a client asked me for some data about site traffic. My report was not was favorable, and I hated to be the bearer of bad news. So I tried to soften the blow with something like "I'm sorry to report that..."

My client's reply startled me. She chided me for being apologetic, saying "Facts are always good!" By that, she wasn't denying the existence of unwelcome facts. Instead, her point was that you're always better off knowing the facts, even when they're not what you'd like, rather than remaining ignorant, mistaken, or deluded. My client was right: facts are always good. And more, that attitude is the essence of true honesty.

Since then, time and again, I've found that a person's most important quality of character is that kind of honesty. For any serious dealings, personal or professional, a person must be committed to the facts of reality above all else. He must be honest to the core.

What does that mean in practice?

  • The honest person doesn't ignore or deny facts to gratify his feelings and desires: he seeks the truth and acts on that.
  • The honest person doesn't invent excuses to save face: he admits his errors and reverses course.
  • The honest person doesn't try to cheat reality by deceiving others: he's truthful, even when difficult.
  • The honest person doesn't evade his problems, thereby allowing them to fester and grow: he works to identify and remedy them.
In short, the honest person's most basic policy is "Reality First!"

The process of judging whether a person is deeply honest requires some time: you need to see -- in word and deed -- that he regards any willful departure from the facts as unthinkable.

In the process of hiring someone, you can assess a person's honesty by asking certain kinds of questions, such as:
  • You realize that you've made a serious error on a project that will delay delivery. What do you do? Why?
  • A friend on your team asks you to lie to a client about a trivial matter. What do you do? Why?
  • Your boss proposes an idea that you think will likely to fail. What do you do? Why?
  • What was the worst mistake you made in your prior job? What did you do about it? What might you do differently now? Why?
  • You realize that a policy you implemented over the objections of your team is having just the kind of negative effects they predicted. What do you do now? Why?
A person's answers to such questions can reveal much about his commitment to facts -- or the lack thereof.

Most of all, remember that in judging people, just as with everything else, "facts are good!"

Update: I'm now answering questions on practical ethics and the principles of living well in my weekly Rationally Selfish Webcast. It happens every Sunday morning at 8 am PT / 9 am MT / 10 am CT / 11 am ET. Each week, I select the most popular and interesting questions from the ongoing queue of questions. Please submit your questions, as well as vote and comment on questions that you find interesting!

If you're unable to attend the live webcast, you can listen to these webcasts later as NoodleCast podcasts by subscribing in iTunes to either the enhanced M4A format or the standard MP3 format.

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Monday, May 24, 2010

Questions on Philosophy in Business

By Diana Hsieh

Some FormSpring Questions and Answers on philosophy in business:

It's hard to be pro-business since few (none?) are actually in favor of freedom and individual rights, but rather lobby to twist big government to their purposes which mostly conflict with individual rights. Thoughts?

I'm pro-business for the awesome products they produce that make my life better -- not for their politics, nor for their pull-peddling.

Sadly, it's not reasonable to expect businesses to be any better than the culture as a whole. And the culture is solidly behind a mixed economy.

Why don't companies/firms hire staff philosophers?

Most philosophers would be destructive to business, as they're hostile to the self-interested pursuit of profit.

Good philosophers could be useful, but likely only as occasional consultants, not full-time employees. However, most businessmen today are extremely pragmatic and somewhat altruistic, so they wouldn't see the value in a principled approach to business.

Can you think of a good, specific example of how a consulting philosopher might be of value to a business? Especially assuming the business owner was already an Objectivist and had a basic grasp of rational selfishness and the danger/evil of altruism.

The fact that a business owner is an Objectivist doesn't mean that he will create a corporate culture that supports the virtues. (For an example of what that looks like, see what John Allison did with BB&T.)

A philosopher could help do that. It's not trivial, for example, to see what justice requires in compensation. Or whether the business should be involved in charity. Or how to deal fairly with an employee suffering from personal problems. Or how to maximize productivity. Or how to ensure that employees are rewarded for facing problems rather than evading them.

Via the Ayn Rand Institute, Objectivist intellectuals have done that kind work with Hutchinson Technologies; they've put together training seminars and the like for management.

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Tuesday, April 13, 2010

Weekly Reviews for Workers

By Diana Hsieh

I'm delighted to report that the three new OLists -- OProducers, OShooters, and OGardeners -- launched without so much as a hiccup. One week later, they're humming along nicely! Hooray!

As a taste of what these OLists have to offer, I submit the following informal essay, posted to OProducers on Friday by Santiago Valenzuela, on his sit-down weekly reviews with his workers. (He gave me permission to post it here.) It's exactly the kind of good advice that motivated me to create the OProducers list.

In case you don't know him yet, Santiago is the leader of 3FROG, the manager of OShooters, and an all-around good guy. Now, without any further ado, here's Santiago:

I was reading all the fascinating posts about GTD's "weekly review" and how useful y'all find it. It got me thinking about a management practice that I think fills a similar role in a different context that I'd like to share - weekly one-on-ones.

My understanding of the GTD weekly review is to get you "above," conceptually, the day-to-day concretes you have to deal with and let you dedicate time to thinking about things that these concretes are supposed to be contributing to - longer-term goals, projects, etc. A one-on-one serves a similar purpose, I believe, in management.

Every week I meet with each of my people for our own weekly review. It lasts 15-30 minutes, depending on them. The purpose is for them to be able to air out any concerns, questions or information that I need to know primarily - though I don't forbid friendly chatting either, as I feel that the more I know about them, their circumstances and what motivates them to work as hard as they do, the better. This serves three main purposes:

1) It lets me spend time with them individually, allowing me to better understand what drives them, get to know them more personally, and put any concerns they have on my radar.

2) It allows me to give them the "bigger picture" - how were sales this past week, how did our department do, what are my plans for the future growth of this department and how does this person fit into that plan, exactly?

3) It serves as a "bucket" - a place to put niggling things for either of us that are not pressing but should be discussed at some point - discussion about inappropriate behavior, a day where personal efficiency slacked, days off requests, updates on family and so forth.

The reason I compare it to the weekly review is because I often think of management as the conceptual level of productive work, if you think of productive work in terms of concretes (I don't mean to demean the many specialists on this list who obviously are not working with concretes; it is simply a comparison.) With individuals stuck in concrete or specialist work all day, it is refreshing, motivating and assuring for them to have a small break each week to get "the big picture" and some one-on-one face-time with The Boss.

I found in my management travails that my guys were coming up to me for the smallest stuff - problems that they were clearly qualified to work on, or at least were not so pressing that they couldn't wait - but wait until when? I think the issue was that they wanted that face-time with me. People understand, I think - on some level - that a departmental manager is their link to the "big picture" and they gravitate towards that in an effort to better understand where they stand, if the people above them understand how good a job their doing (or if there are any problems,) how the company is doing in general - what we would call the big picture. This is a real human need in productive work and I do my best to fill it for my people. In addition, the "bucket" of the one-on-one also saves time as we bundle all the small stuff that may take 5 minutes (or more) every day to deal with on a day-to-day basis, but takes 5 minutes in a week when bundled together.

I call the need to understand what is going on above you and get face time with the boss a real human need - and I think a rational one, just like a weekly review is a rational exercise on the personal level - not only for the theoretical reasons above, but practical reasons as well. It has increased honesty, trust and communication between myself and my team by quite a bit - it has been many months since I have had to deal with anything at all unexpected on the part of my team members. Personal efficiency has skyrocketed - by about 50% since I implemented one-on-ones, the reason, I think, being that individuals are inclined to work harder when they better understand how what they are doing contributes to an overall productive goal, trust their boss and know that their hard work is being recognized on a weekly basis, not just in terms of sporadic pay increases.

I think this would be a useful practice to adopt for most managers. In the 30 minute time usually allocated I give 10 minutes (the first 10 minutes) to my employee, the second 10 minutes to any issues on my end, and the last 10 minutes to discussing "big picture" stuff - growing the employee's capabilities to make him more valuable to the company, how our department is doing, how the company is doing, etc. At first I had a hard time finding the time and justifying it to my superiors, once they asked - but now there is so much time saved in terms of issues that can wait until the weekly one-on-one, and so many efficiency gains, that the meetings justify themselves no matter how busy we are.

Does anyone else have a similar system? Or do you have similar problems with your direct reports? I would be very happy to help anyone who's interested help roll this idea out, if my description of what happens and the corresponding results have piqued your interest.

I originally got the idea from manager tools, a podcast website, but I think they explain the rationale poorly (mostly in terms of concretes) and I've done some thinking on the reasons why its so effective, which I think I've hit on here.
That's good stuff! Oh, and you can find the "manager tools" podcasts here.

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Tuesday, April 6, 2010

Individual Rights Versus Food Regulations

By Diana Hsieh

[Note: This post was written for and reposted from the Modern Paleo Blog.]

In her essay "Man's Rights," Ayn Rand observed:

A "right" is a moral principle defining and sanctioning a man's freedom of action in a social context. There is only one fundamental right (all the others are its consequences or corollaries): a man's right to his own life. Life is a process of self-sustaining and self-generated action; the right to life means the right to engage in self-sustaining and self-generated action--which means: the freedom to take all the actions required by the nature of a rational being for the support, the furtherance, the fulfillment and the enjoyment of his own life. (Such is the meaning of the right to life, liberty and the pursuit of happiness.)

The concept of a "right" pertains only to action--specifically, to freedom of action. It means freedom from physical compulsion, coercion or interference by other men.

Thus, for every individual, a right is the moral sanction of a positive--of his freedom to act on his own judgment, for his own goals, by his own voluntary, uncoerced choice. As to his neighbors, his rights impose no obligations on them except of a negative kind: to abstain from violating his rights.

The right to life is the source of all rights--and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave.

Bear in mind that the right to property is a right to action, like all the others: it is not the right to an object, but to the action and the consequences of producing or earning that object. It is not a guarantee that a man will earn any property, but only a guarantee that he will own it if he earns it. It is the right to gain, to keep, to use and to dispose of material values.
(Just to be clear, the "right to life" doesn't mean forcing women to carry an unwanted pregnancy to term!)

Are our individual rights respected and protected by government in America today? Not by a long shot. They are systematically violated by government interference in our lives and in the economy. The rights to property and contract are violated as a matter of course in banking, finance, business, education, medicine -- and yes, in agriculture too.

For a taste of how governments -- local, state, and federal -- interfere with our rights to production and voluntary trade in agriculture, I strongly recommend Joel Salatin's classic essay, Everything I Want to Do Is Illegal (PDF). For example, consider Salatin's discussion of the government's regulations of on-farm processing:
I want to dress my beef and pork on the farm where I've coddled and raised it. But zoning laws prohibit slaughterhouses on agricultural land. For crying out loud, what makes more holistic sense than to put abattoirs where the animals are? But no, in the wisdom of Western disconnected thinking, abattoirs are massive centralized facilities visited daily by a steady stream of tractor trailers and illegal alien workers.

But what about dressing a couple of animals a year in the backyard? How can that be compared to a ConAgra or Tyson facility? In the eyes of the government, the two are one and the same. Every T-bone steak has to be wrapped in a half-million dollar facility so that it can be sold to your neighbor. The fact that I can do it on my own farm more cleanly, more responsibly, more humanely, more efficiently, and in a more environmentally friendly manner doesn't matter to the government agents who walk around with big badges on their jackets and wheelbarrow-sized regulations tucked under their arms.

OK, so I take my animals and load them onto a trailer for the first time in their life to send them up the already clogged interstate to the abattoir to await their appointed hour with a shed full of animals of dubious extraction. They are dressed by people wearing long coats with deep pockets with whom I cannot even communicate. The carcasses hang in a cooler alongside others that were not similarly cared for in life. After the animals are processed, I return to the facility hoping to retrieve my meat.

When I return home to sell these delectable packages, the county zoning ordinance says that this is a manufactured product because it exited the farm and was reimported as a value-added product, thereby throwing our farm into the Wal-Mart category, another prohibition in agricultural areas. Just so you understand this,remember that an on-farm abattoir was illegal, so I took the animals to a legal abattoir, but now the selling of said products in an on-farm store is illegal.

Our whole culture suffers from an industrial food system that has made every part disconnected from the rest. Smelly and dirty farms are supposed to be in one place, away from people, who snuggle smugly in their cul-de-sacs and have not a clue about the out-of-sight-out-of-mind atrocities being committed to their dinner before it arrives in microwaveable, four-color-labeled, plastic packaging. Industrial abattoirs need to be located in a not-in-my-backyard place to sequester noxious odors and sights. Finally, the retail store must be located in a commercial district surrounded by lots of pavement, handicapped access, public toilets and whatever else must be required to get food to people.

The notion that animals can be raised, processed, packaged, and sold in a model that offends neither our eyes nor noses cannot even register on the average bureaucrat's radar screen -- or, more importantly, on the radar of the average consumer advocacy organization. Besides, all these single-use megalithic structures are good for the gross domestic product. Anything else is illegal.
While I disagree with Salatin's underlying philosophy -- particularly his strange railing against "a disconnected, Greco-Roman, Western, egocentric, compartmentalized, reductionist, fragmented, linear thought processes" (whatever that means!) -- his essay offers an invaluable glimpse into the insanity of government regulations in agriculture. I recommend that you read the whole thing.

The most common response to such reports on our government's insane regulatory schemes is to call for reform. People say, "we need more sensible regulations" or "we need more flexible regulations" or "we need regulations suitable for the small family farmer." In my view, that's completely wrong. Of necessity, regulations violate people's rights to property, contract, and trade. Regulations cannot be reformed into good sense. They should be repealed -- one and all.

But... why are regulations always violations of rights?

To survive and flourish as a human being requires the freedom to act in pursuit of life-sustaining values. Rights define those life-enabling freedoms. They are, as Ayn Rand says, "moral principle[s] defining and sanctioning a man's freedom of action in a social context."

People ought to be left free to pursue their own lives. They ought to reap the rewards of their own labor. They ought to be able to use their own property as they see fit. They ought to be free to trade with others to mutual advantage. Provided that people pursue their own goals without violating the rights of others -- such as by selling fraudulent goods or polluting neighboring property -- the government ought not interfere.

In essence, people ought to be free from coercive interference from others, whether criminals or bureaucrats, so that they may pursue their own best interests according to their own best judgment.

Regulations are one kind of coercive interference with a person's rightful freedom. Via regulations, people are forced to take certain actions and forbidden from taking others. They are required to perform certain actions in certain ways. They must hire only certain kinds of people to do certain kinds of work. They must pay those workers a certain wage, with certain benefits. They must collect and submit reams of paperwork; they must be licensed; they must pay fee upon fee. They are fined -- if not imprisoned -- if they fail to comply.

In essence, regulations force people to act against their own rational judgment of their own best interests -- via the mighty threat of government power. That's inherent in every form of regulation, even when intended to be kind and gentle. All regulations violate rights.

As John Galt says in Atlas Shrugged:
To force a man to drop his own mind and to accept your will as a substitute, with a gun in place of a syllogism, with terror in place of proof, and death as the final argument--is to attempt to exist in defiance of reality. Reality demands of man that he act for his own rational interest; your gun demands of him that he act against it. Reality threatens man with death if he does not act on his rational judgment: you threaten him with death if he does. You place him into a world where the price of his life is the surrender of all the virtues required by life--and death by a process of gradual destruction is all that you and your system will achieve, when death is made to be the ruling power, the winning argument in a society of men.
Like all violations of rights, regulations force people to act against their own minds and their own lives.

Farmers -- and other food producers -- deserve to have their rights respected just as much as everyone else. They should be free to act on their best judgment in their work -- without the burden of regulations. And we should be free to patronize them or not.

Of course, advocates of a paleo diet will strongly disagree with how some food producers choose to exercise their rights. Even in a free market capitalist economy -- as opposed to the mixed economy we have today -- many food producers would likely make junk like cold cereal, candy bars, and non-fat yogurt. But guess what? That would be their own damn problem!

Under capitalism, each individual would be free to support -- materially and morally -- all and only the food producers of his choosing. We would not be forced to subsidize corn and soy production with our tax dollars, and the vegans would not be forced to subsidize beef ranchers. We would be able to buy raw milk from any willing supplier, while the vegans could buy soy milk. We could seek out pastured chicken, even while others buy breaded chicken nuggets. Each person would be free to spend his dollars on the foods of his choice -- and unable to force others to conform to or even subsidize his preferences.

Of course, people would be free to attempt to persuade others to eat differently too. We could write and speak about the benefits of a paleo diet. We could petition companies to produce better foods -- and even boycott the worst offenders. We could hope to change minds, but we could not use force -- and nor could others use force against us. In a capitalist economy -- and only in a capitalist economy -- the food that people produce and consume would not be subject to the whims of politicians, bureaucrats, or voters. Each person would make his own choices. He would then enjoy the rewards of choosing well -- or suffer the consequences of choosing poorly.

In essence, under capitalism, each person would be responsible for his own life. He would be able to live as a free person. Wouldn't that be something?

Read more...

Monday, January 4, 2010

Apple Tablet Rumors

By Diana Hsieh

As a small-time Apple fanatic, I'm definitely excited by the rumors swirling about an Apple tablet. Gizmodo recently posted The Exhaustive Guide to Apple Tablet Rumors. It's a fun read.

Of course, tons of people are asserting definitive claims, most of them contradicting other people's definitive claims. I suspect that most people don't know jack, and if some people do know something, we have no way to determine who they are.

Nonetheless, all the crazy speculation makes me happy. People are soooo excited about a device that they don't know anything about and that might never come to market. I love that! Apple has indeed built a great reputation for itself.

As for the rumored device, unless you're suggesting that it's going to sear your steak and wash your laundry, you're probably underestimating it. Most people seem to be imagining the device to be little more than an extension of current technology, meaning a large version of the iPhone.

That's exactly the mistake that people made with the iPhone during the rumor-mongering phase. They thought it would be some kind of blend of the iPod of the day plus a cell phone. For example -- and these are highly amusing -- see Four iPhone Mockups That Completely Missed the Mark and The Speculative Prehistory of the iPhone. My favorite wrong comment is from the author of that second article, who said:

And the swiss-army knife philosophy of today's phones seems anything but Jobsian. Would the iPhone play music, capture still photos and video, do e-mail and browsing, and be a mobile gaming platform (oh, and let you make phone calls)? Or could Apple get away with introducing an elegant device that did voice, music, and possibly video extremely well--and didn't even try to do anything else?
Haha!

I suspect that people are so excited about this tablet because, based on Apple's history, they have reason to believe that it will be so much more than they can imagine right now. That's what the innovative producer does. He does not give us what we want; he produces some new thing that we didn't even know we wanted until we saw it. He does not satisfy demand; he creates demand.

That's what makes capitalism so damn great.

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Tuesday, December 8, 2009

The Flow of the Kindle

By Diana Hsieh

I have a love-hate relationship with my Kindle. I wasn't ready to buy one, but Paul gave me his smaller version when he upgraded to the larger version about two months ago.

I love having so many books at my fingertips, in a slim little device. I'm even going to be able to read some hard-to-find books -- like the complete works of Frances Hodgson Burnett. That's 35 books for a mere five dollars. (You can find free versions, but apparently these sets are nicely formatted.) It's easy to read on the Kindle, particularly with the adjustable font size.

However, its clunky interface leaves much to be desired, as does its lack of any easy software for managing files. For example, changing the meta-data in files requires something on the order of sacrificing a goat. (Yes, I'm fussy about that kind of thing.) Basically, I hate the fact that the Kindle is not a Mac. But once you get used to it, it's okay.

So far, I've mostly used the Kindle to read fiction. That works fine, although I'm a bit frustrated by my inability to determine (in some easy way) how far I have to finish a chapter. However, my first attempt to read something serious on it -- namely Tara Smith's Ayn Rand's Normative Ethics -- was an abject failure. We've just started the book in 1FROG, and I thought I'd try to re-read it on the Kindle.

It was a disaster -- not just for the discussion but also just for my own understanding. Without physical pages, I simply couldn't get a handle on the structure of the text. I felt lost in a Heraclitean stream of words. I couldn't remember what was where. The more that I flipped back and forth, the more confused I got. I could make notes in the text, but not useful notes. The keyboard is too tiny for substantive notes, and I can't implement my super-handy system of tiny little margin notes. My margin notes are a huge help to later skimming. (That's critical for group discussion.) And they help me retain the material as I read it, in that I pause to think and process in the course of making those notes.

In short, trying to read Ayn Rand's Normative Ethics on the Kindle felt like I was trying to remember the progression of a run done on the treadmill, where the scenery is always the same. In contrast, reading a physical book was like remembering a similar run done through some neighborhood, where the varying landscape cements memories.

I'll likely be able to use the Kindle for reading serious material -- provided that I'm just doing a survey, rather than a serious, intensive read. I'll have to read on the Kindle like I'd listen to an audiobook. Basically, I'll need to set lower expectations for retention and integration. That means that most of the time, when reading a serious work of non-fiction, I'll prefer a physical copy -- at least for now.

Still... if all that I ever do with the Kindle is read fiction (and lighter non-fiction) on it, I'll be pretty happy.

Given my mixed experience, I'm really amazed by these sales numbers, given in an interview with Amazon.com head honcho Jeff Bezos.

Of all the books that Amazon sells, what percentage are digital books?

For every 100 copies of a physical book we sell, where we have the Kindle edition, we will sell 48 copies of the Kindle edition. It won't be too long before we're selling more electronic books than we are physical books. It's astonishing.
Of course, most readers don't have my need for intensive reading of serious books. Yet still, WOW.

Oh, and this exchange is pretty funny:
What do you say to Kindle users who like to read in the bathtub?

I'll tell you what I do. I take a one-gallon Ziploc bag, and I put my Kindle in my one-gallon Ziploc bag, and it works beautifully. It's much better than a physical book, because obviously if you put your physical book in a Ziploc bag you can't turn the pages. But with Kindle, you can just push the buttons.

What if you dropped your Kindle in the bathtub?

If it's sealed in a one-gallon Ziploc bag? Why don't you try that experiment and let me know.
Jeff Bezos does seem a bit prickly! (Via Jason Crawford.)

Note for the sake of the vicious statists at the FTC: If you buy something from Amazon using the links above, I might earn a few pennies.

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Friday, October 9, 2009

Net Neutrality: Toward a Stupid Internet

By Diana Hsieh

Due to the FCC's push for net neutrality, Craig Biddle, editor of The Objective Standard, has made Ray Niles's article Net Neutrality: Toward a Stupid Internet available for free.

Please read it -- and spread the word!

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Monday, September 21, 2009

Steve Jobs on Apple

By Diana Hsieh

Wow, this Fortune interview with Steve Jobs is chock full of insightful gems. Here's some of my favorites:

On Apple's connection with the consumer

"We did iTunes because we all love music. We made what we thought was the best jukebox in iTunes. Then we all wanted to carry our whole music libraries around with us. The team worked really hard. And the reason that they worked so hard is because we all wanted one. You know? I mean, the first few hundred customers were us.

"It's not about pop culture, and it's not about fooling people, and it's not about convincing people that they want something they don't. We figure out what we want. And I think we're pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That's what we get paid to do.

"So you can't go out and ask people, you know, what the next big [thing.] There's a great quote by Henry Ford, right? He said, 'If I'd have asked my customers what they wanted, they would have told me "A faster horse."'"
Too often, companies simply chase what consumers already want. The best companies offer us values that we've never dreamed of before. Such new values integrate so well into our lives that, in very short order, we cannot imagine ourselves without them. Apple has done that consistently, most notably with the iPhone. If I gave it up, I'd have to radically change the way I work and live.
On Apple's focus

"Apple is a $30 billion company, yet we've got less than 30 major products. I don't know if that's ever been done before. Certainly the great consumer electronics companies of the past had thousands of products. We tend to focus much more. People think focus means saying yes to the thing you've got to focus on. But that's not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully.
That same principle applies to individuals too. We have to choose what we do -- and what we don't do -- wisely. We have to choose the activities where we have a competitive advantage -- and outsource or forgo the rest.
On his marathon Monday meetings

"When you hire really good people you have to give them a piece of the business and let them run with it. That doesn't mean I don't get to kibitz a lot. But the reason you're hiring them is because you're going to give them the reins. I want [them] making as good or better decisions than I would. So the way to do that is to have them know everything, not just in their part of the business, but in every part of the business.

"So what we do every Monday is we review the whole business. We look at what we sold the week before. We look at every single product under development, products we're having trouble with, products where the demand is larger than we can make. All the stuff in development, we review. And we do it every single week. I put out an agenda -- 80% is the same as it was the last week, and we just walk down it every single week.

"We don't have a lot of process at Apple, but that's one of the few things we do just to all stay on the same page."
Ah, my favorite remark!

To demand that employees conform to processes is to impose mind-numbing, productivity-killing, self-esteem-crushing bureaucracy on them. A bureaucratic company is focused on enacting certain fixed means -- rather than on accomplishing its goals by the best means possible. The result is much wasted time, effort, and money. In contrast, notice that Jobs focuses on Apple's goals in his Monday review. In fact, his Monday meeting seems like a company level GTD weekly review. It's about production, including giving employees the information they need to solve problems, not about conformity to process.

A bureaucratic company is a company that doesn't trust its employees to make good decisions. The result is stagnation and incompetence. If a company can't trust its employees to exercise good judgment in doing their jobs, then it needs to fire them and hire better employees. Or it needs to learn to trust them to do what they're capable of doing, including learning from mistakes. Bureaucratic focus on "process" and "policy" will drive away the most productive and capable employees -- or crush them. It's not a mode of business appropriate to rational, productive people.

Goals, goals, goals. It's got to be all about the goals.

(Via Bodarko.)

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Tuesday, July 7, 2009

Starbucks

By Diana Hsieh

On our trek to Trader Joe's yesterday, Paul and I saw two excellent advertisements from Starbucks, including the one to the right.

The other advertisement concerned their striving for -- and achieving -- perfection in their coffee.

I'm not a huge fan of Starbuck's coffee: it's a bit too bitter for my tastes. And I'm not a fan of their business philosophy -- particularly their support for "fair trade" coffee and environmentalist practices. However, I do love that advertisement!

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Saturday, June 6, 2009

Another Reason to Love Twitter

By Diana Hsieh

Paul and I are huge fans of the bulk nuts at Whole Foods, including their pistachios. However, the pistachios I bought earlier this week simply weren't up to their usual standard. They were all the dregs. So, on Thursday, after eating a few of them without much delight, I posted the following tweet:

The @WholeFoods pistachios I just bought are way below their usual standard. Perhaps an effect of the earlier recall?
Although the Whole Foods pistachios weren't subject to any recall, I thought that perhaps pulling so many pistachio products off the market might have affected the quality of the available supply. However, within about 12 hours, I got the following tweet reply from WholeFoods, the twitter account of the Whole Foods corporate office:
@DianaHsieh Quality shouldn't have changed - if you're unsatisfied with the product, feel free to bring back for an exchange/refund.
Of course, I already know that I can do that. Nonetheless, to hear it from them gives me warm fuzzies. Plus, now I think I might return them. Why suffer through mediocre pistachios?

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Friday, May 1, 2009

NRO on John Allison

By Paul Hsieh

The April 30, 2009 National Review Online published an excellent article on banker John Allison (former CEO of BB&T Bank), including an extended discussion on how his success in business was a consequence of following Ayn Rand's philosophy of Objectivism.

Here are a few excerpts:

Objectivist Philosophy for Fun and Profit
How a banker avoided ruin by cleaving to Ayn Rand's system of ethics
By Mark Hemingway

...The fact that BB&T didn't dive head-first into the shallow pool of subprime mortgages certainly goes a long way toward explaining the relative health of BB&T as an institution. But how was BB&T able to resist chasing after all that new mortgage money?

The answer is simple: Subprime mortgages were bad for the people who took them out. That went against BB&T's philosophy -- not for reasons of altruism but because it would have been poor strategy. "We're obviously a for-profit company, but we don't think that it's good business in the long term to do bad things to your clients, even if you make a profit doing it," Allison said. "So we chose not to do negative-amortization mortgages because we knew it was going to get a lot of people in financial trouble."

In retrospect, the wisdom of this approach might seem obvious. However, Allison navigated through the overheated mortgage market and the ensuing banking crisis by relying, in large part, on a philosophy that many others are now turning to: "I got interested in [Ayn] Rand in the late 1960s. I read Capitalism: The Unknown Ideal. I had already been interested in economics, and as I finished college, I got interested in finance. I saw the banking system as central to a capitalist economy."
Allison understands the tie between abstract philosophy and real-world business success:
..."A lot of people miss the fact that Rand has a very strong ethical system," he observes. "Rand says you can derive ethics from reality. If anything, Rand is more rigorous in her ethical system than most codes are. If you’re dishonest, you are disconnected from reality, and that has consequences."

However, simply because Rand doesn't endorse altruism for altruism's sake, many people misconstrue her to be amorally selfish. Rand "doesn't view ethics as self-sacrificial," Allison says, "she views ethics as a rational means to success and happiness. If you described her in principle, she would say that you shouldn't take advantage of other people because that is unethical behavior and self-defeating. But you also shouldn't self-sacrifice. What you really need to do is run your life in relationship to other people in context to what she calls the trader principle. The trader principle is about what I call creating win-win relationships. We trade value for value and we get better together, and we find these common grounds where we can get better together."

If that can be said to be BB&T's guiding principle, the empirical evidence would suggest that the bank's customers and shareholders are better off for it. In fact, it was misguided altruism that got us into the current financial crisis, and Allison has no problem identifying whose economic philosophy was flawed. "I think that government policy is the primary cause" of the financial crisis, he says. "Government policy set up the problems we have in the real-estate market, and it is the Big Kahuna in the room."
(Read the whole article.)

Objectivists will recognize BB&T's core values as the keys to success in business and life:
* Honesty
* Integrity
* Justice
* Reason
* Independent Thinking
* Reality
* Productivity
* Teamwork
* Self-Esteem
* Pride
How well did that code of values work out for BB&T shareholders?

When John Allison became CEO of BB&T in 1989, the bank had 187 branches in two states, with $4.7 billion in assets.

When he retired as CEO at the end of 2008, BB&T operated over 1500 financial centers in 11 states (plus DC), with $136.5 billion in assets, a track record Allison can be proud of.

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