Categories
economics

Al Gore, the Internet, and the Media

Al Gore really did have a pivotal role in the development of the Internet and the incessant and ignorant jeering from the media on this issue did no favors to the American public.

From https://web.eecs.umich.edu/~fessler

Here is the definitive statement on Gore's involvement in "inventing" the
Internet, from the guys who really did:

****************************************************************************
Al Gore and the Internet

By Robert Kahn and Vinton Cerf

Al Gore was the first political leader to recognize the importance of the
Internet and to promote and support its development.

No one person or even small group of persons exclusively "invented" the
Internet. It is the result of many years of ongoing collaboration among
people in government and the university community.  But as the two people
who designed the basic architecture and the core protocols that make the
Internet work, we would like to acknowledge VP Gore's contributions as a
Congressman, Senator and as Vice President.  No other elected official, to
our knowledge, has made a greater contribution over a longer period of
time.

Last year the Vice President made a straightforward statement on his role.
He said: "During my service in the United States Congress I took the
initiative in creating the Internet."  We don't think, as some people have
argued, that Gore intended to claim he "invented" the Internet. Moreover,
there is no question in our minds that while serving as Senator, Gore's
initiatives had a significant and beneficial effect on the still-evolving
Internet. The fact of the matter is that Gore was talking about and
promoting the Internet long before most people were listening.  We feel it
is timely to offer our perspective.

As far back as the 1970s Congressman Gore promoted the idea of high speed
telecommunications as an engine for both economic growth and the
improvement of our educational system.   He was the first elected official
to grasp the potential of computer communications to have a broader impact
than just improving the conduct of science and scholarship. Though easily
forgotten, now, at the time this was an unproven and controversial
concept.  Our work on the Internet started in 1973 and was based on even
earlier work that took place in the mid-late 1960s. But the Internet, as
we know it today, was not deployed until 1983. When the Internet was still
in the early stages of its deployment, Congressman Gore provided
intellectual leadership by helping create the vision of the potential
benefits of high speed computing and communication.  As an example, he
sponsored hearings on how advanced technologies might be put to use in
areas like coordinating the response of government agencies to natural
disasters and other crises.

As a Senator in the 1980s Gore urged government agencies to consolidate
what at the time were several dozen different and unconnected networks
into an "Interagency Network."  Working in a bi-partisan manner with
officials in Ronald Reagan and George Bush's administrations, Gore secured
the passage of the High Performance Computing and Communications Act in
1991.  This "Gore Act" supported the National Research and Education
Network (NREN) initiative that became one of the major vehicles for the
spread of the Internet beyond the field of computer science.

As Vice President Gore promoted building the Internet both up and out, as
well as releasing the Internet from the control of the government agencies
that spawned it.  He served as the major administration proponent for
continued investment in advanced computing and networking and private
sector initiatives such as Net Day. He was and is a strong proponent of
extending access to the network to schools and libraries.  Today,
approximately 95% of our nation's schools are on the Internet. Gore
provided much-needed political support for the speedy privatization of the
Internet when the time arrived for it to become a commercially-driven
operation.

There are many factors that have contributed to the Internet's rapid
growth since the later 1980s, not the least of which has been political
support for its privatization and continued support for research in
advanced networking technology.  No one in public life has been more
intellectually engaged in helping to create the climate for a thriving
Internet than the Vice President.  Gore has been a clear champion of this
effort, both in the councils of government and with the public at large.

The Vice President deserves credit for his early recognition of the value
of high speed computing and communication and for his long-term and
consistent articulation of the potential value of the Internet to American
citizens and industry and, indeed, to the rest of the world.

Version 1.2
Word count: 709

=================================================================
Vint Cerf
WorldCom
22001 Loudoun County Parkway
Building F2, Room 4115, ATTN: Vint Cerf
Ashburn, VA 20147
Telephone (703) 886-1690
FAX (703) 886-0047


Alan M. Gaines
Senior Science Associate for Spatial Data and Information
National Science Foundation
4201 Wilson Blvd., Suite 1070
Arlington, VA 22230

Voice:	+1.703.292.7857
FAX:	+1.703.292.9152

email:	againes@nsf.gov
Categories
business economics software business

Annals of unintentional irony

Come back after a trip to see Marc Andreessen’s team of twitter posters complaining wryly about how government is so gosh durn big and citing experts like Milton Friedman.

That is, Marc Andreesen, the former National Center for Supercomputing Applications programmer who helped write the Mosaic Web Browser for the WWW that CERN scientists developed on top of the Internet technology that DARPA and NSF researchers and bureaucrats created on top of prior government funded technology like integrated circuits, and then built a company that made him rich with the team that worked together at NCSA,  engaging in the typical rich person bitching about the gummint.  Which shows how little reality matters to people.

Categories
economics

German banking

Germany has a complex banking system that provides a lot of support for SME manufacturing.

The main strength of German economy is the so-called ‘Mittelstand’, a dense fabric of SMEs that manage to export high-quality manufactured products. In France, policymakers from all parties are obsessed with building a ‘French Mittelstand’. Economists are repeatedly asked to produce reports on what France could do to foster its SMEs the way Germany does (see for ex. Kohler D., Weisz J.-D. & FSI, 2012). At first glance, it does seem that the Mittelstand has done quite well throughout the financial crisis. This implies that German SMEs have enjoyed continued access to affordable financing since 2008. Indeed, at the macroeconomic level, studies show “no signs of credit crunch” (Ziebarth, 2013, see also Friderichs & Körting, 2011). link

Categories
economics

Venture capital, short term, and India

From Wladawsky-Berger’s blog entry on Carlota Perez’s analysis in 2005:

She mentions three particular structural tensions that we need still to work out in order to move on: investments continue to be focused on short-term gain, not on long-term production and growth; the social system continues to foster an unstable environment in which the rich get richer and the poor get poorer; and there is too much idle money chasing and inflating assets like housing and not going into expanding the demand needed to soak up all the excess supply being produced.”

And from the Wall Street Journal in April 2009:

The Mushahar in Bihar are part of a political and economic shift that is building across the Indian countryside. The transformation, largely driven by development spending by national and state policy makers, will be put to a test starting next week. The world’s largest democracy kicks off a month of polling April 16 in which many of the leaders behind these experiments are seeking re-election.

Growth has slowed in the new India of technology outsourcing, property development and securities trade. But old India — the rural sector that is home to 700 million of the country’s billion-plus people — shows signs it can pick up the slack. The rural awakening helps explain why India continues to grow even as the U.S. recession drags on the world economy.

The very idea of the “elevator pitch” encodes a complex economic theory in which investment ideas are supposed to be reducible to 1minute sound bites that professional money managers have the judgment and expertise to screen. To me, one of the problems in the US economic system is that too much power is concentrated in the hands of professional money managers – from bankers to venture capitalists to investment advisors. For 30 years or more, we in the US have been force fed a theory that the government doesn’t have the expertise to pick winners and losers compared to the nimble and efficient market. And certainly, it is clear that the government can blow lots of money on nonsense. But compare the Internet, developed by a government monopoly and by DARPA and then NSF, to Pets.com or, worse, Countrywide, and ask which was a better considered, smarter investment.