Exxon Valdez

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A Sea in Flames: The Deepwater Horizon Oil Blowout by Carl Safina

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big-box store, clean water, cognitive dissonance, energy security, Exxon Valdez, hydraulic fracturing, Intergovernmental Panel on Climate Change (IPCC), North Sea oil, oil shale / tar sands, oil shock, Piper Alpha, Ronald Reagan

Nineteen years after the Exxon Valdez ran aground on Bligh Reef, some plaintiffs received their final payment. Others had already died. And today the Court remains stacked with Bush appointees as thoughtless, more heartless, and more pro-business than it was then. The aftermath of the Exxon Valdez spill—its devastating effect on the region’s wildlife, its long-lasting depression of fish prices, the social and economic strains that followed, Exxon’s antisocial behavior and the way the Supreme Court swam with it into the toilet—set the bar so low, it’s as if someone dug a trench and threw the bar in. One nation under oil. The Exxon Valdez spill was more than a tragedy, more than a crime. It remains a national stain and a national trauma. The fear that this Gulf blowout will be “as bad as the Exxon Valdez” will remain in hearts, on minds, and on lips throughout.

Pender, “Oil Found in Gulf Crabs Raises New Food Chain Fears,” Biloxi Sun Herald, July 1,2010; http://www.mcclatchydc.com/2010/07/01/96909/oil-found-in-gulf-crabs-raising.html. 52 Effects of oil on fish eggs and larvae Joanna Burger, Oil Spills. New Brunswick, NJ: Rutgers University Press, 1997. 53 Herring egg and larval mortality following Exxon Valdez M. D. McGurk and Evelyn D. Brown, “Egg–Larval Mortality of Pacific Herring in Prince William Sound, Alaska, After the Exxon Valdez Oil Spill,” Canadian Journal of Fisheries and Aquatic Science 53, no. 10 (1996): 2343–54. See also B. L. Norcross et al., “Distribution, Abundance, Morphological Condition, and Cytogenetic Abnormalities of Larval Herring in Prince William Sound, Alaska, Following the Exxon Valdez Oil Spill,” Canadian Journal of Fisheries and Aquatic Science 53, no. 10 (1996): 2376–87. See also J. E. Hose et al., “Sublethal Effects of the Exxon Valdez Oil Spill on Herring Embryos and Larvae: Morphological, Cytogenetic, and Histopathological Assessments, 1989–1991,” Canadian Journal of Fisheries and Aquatic Science 53, no. 10 (1996): 2355–65. 54 Different things get hurt at different rates C.

She says that crews would make sure marine life and people were protected and that work on other oil rigs would not be interrupted. But can they protect sea turtles? Can they avoid interrupting dolphins and whales? Two decades after the Exxon Valdez ran aground, its oil can still be found under rocks along Prince William Sound. Scratch and sniff. There’s that terror here—that it will never be back to normal. Or that in the years it takes, communities will die and families disintegrate. But others begin saying maybe not. This isn’t Alaska crude. Gulf crude is “sweet crude”—gotta love these funky terms—while the Exxon Valdez disgorged heavy crude. This isn’t Prince William Sound. It’s hot here. What’s different is different. “You have warm temperatures, strong sunlight, microbial action. It will degrade a lot faster,” says Ronald S.


pages: 493 words: 132,290

Vultures' Picnic: In Pursuit of Petroleum Pigs, Power Pirates, and High-Finance Carnivores by Greg Palast

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anti-communist, back-to-the-land, bank run, Berlin Wall, Bernie Madoff, British Empire, capital asset pricing model, capital controls, centre right, Chelsea Manning, clean water, collateralized debt obligation, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, Donald Trump, energy security, Exxon Valdez, invisible hand, means of production, Myron Scholes, offshore financial centre, random walk, Ronald Reagan, sensible shoes, transfer pricing, uranium enrichment, Washington Consensus, Yogi Berra

Naipaul’s axiom about imperial chiefs: They don’t lie, they elide. Here’s what the oily eliders left out: In 1971, eighteen years before the Exxon Valdez hit Bligh Reef, the Alaska State Legislature passed a very un-insane law requiring the use of double-hulled tankers on the Valdez oil route. But Chevron, Exxon and Mobil sued to block the double-hull law. They won. In other words, had the oil companies not killed the law, the Exxon Valdez would have had two hulls and the spill would never have occurred. Mobil built its much-ballyhooed double-hull tanker in 1996 simply because the company had no choice. Double hulls were written into federal law right after the Exxon Valdez disaster. Back in 1971, British Petroleum was still the baby sister of the oil giants. New on the scene, BP dutifully built three double-hull tankers to operate from Valdez in accordance with the Alaska law.

Exxon is junior. Some junior. The tanker spill illustration is from the BP-Exxon official OSRP (Oil Spill Response Plan) for Prince William Sound, Alaska, published two years before the Exxon Valdez grounding at Bligh Island, Tatitlek. The oil companies’ top executives swore to this plan under oath before Congress. It was, I admit, a beautiful plan. It had everything: suckers and rubbers all over the place, and round-the-clock emergency crews ready to roll. Simple simple: Surround with rubber and suck. The Tatitlek Natives could have done that lickety-split and you would have never heard of the Exxon Valdez. But could have are the two most heartbreaking words in the English language. The Natives were the firemen with the equipment. It was right in the plan. They just stood there. Why? During my investigation right after the Exxon spill, Henry Makarka (“Little Bird”), the Eyak elder, flew me over to the village of Nuciiq, abandoned now.

Greg O’Neill enjoyed making fun of bleeding-heart liberals like me. At the reception desk, I had picked up an envelope with a Delta ticket to Anchorage. “Palast”—O’Neill grinned some more—“I’m telling you: This will be your Vietnam.” Well, at least the ticket was first class. The first thing our new Chugach clients ordered our gold-plated legal team to do was sue to prevent the Exxon Valdez from returning to their Alaskan waters. Not any other tanker, just the Exxon Valdez. The Natives hoped to ward off the return of the Tanker of Death, the vessel of the Deceiver, the Raven, the one who had killed his grandchildren with broken promises. You can call it goofy, you can call it superstitious. But the U.S. Congress did not find the Natives’ demand to bar the Devil Ship as insane as you might find it. In 1990, Congress voted the ban into law.


pages: 305 words: 79,356

Drowning in Oil: BP & the Reckless Pursuit of Profit by Loren C. Steffy

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Berlin Wall, clean water, corporate governance, corporate raider, Exxon Valdez, Fall of the Berlin Wall, North Sea oil, oil rush, oil shock, peak oil, Piper Alpha, Ronald Reagan, South China Sea, sovereign wealth fund

Initial estimates put the amount of oil leaking from the mangled well at only about 1,000 barrels a day, a relatively modest amount that would mean that the well could leak for the better part of a year before matching the environmental damage from the Exxon Valdez spill. One of the conclusions of the commission that investigated the Valdez spill was that a spiller should not be in charge of the response.2 Yet the Macondo well site, 40 miles from shore, was remote, and most of the early information about the damage was controlled by BP. R Oil spills occupy a prominent position in America’s rogues’ gallery of corporate villainy. Perhaps only the clubbing of baby seals is more detested by the public. America’s revulsion with the damage from oil on the water predates the Exxon Valdez spill by almost two decades. In 1969, a Union Oil platform off the coast of Santa Barbara, California, blew out, and an attempt to cap it resulted in an even bigger disaster—the opening of a fault along the ocean floor that spewed oil into the Pacific.

A blowout from an offshore platform near Santa Barbara, California, gave rise to the environmental movement, and oil companies xv xvi P R E F A C E became its most reliable villain. As prices soared under the foreign oil embargoes of the 1970s, the public began to believe that Big Oil was in cahoots with OPEC, the Middle Eastern cartel that suddenly demonstrated it could bring the world’s greatest industrialized nation to its knees with the turn of spigot. In 1989, the Exxon Valdez ran aground in Alaska’s Prince William Sound, spilling 11 million gallons of oil and cementing the oil industry’s demonic public image. BP was the biggest owner of the consortium that operated the pipeline feeding the Valdez terminal. Still, BP remained little more than a logo on a Matchbox truck to most Americans. Only in 1998, when it bought Amoco in the biggest industrial merger in history, did it begin to move into the spotlight of American business.

R I S E O F T H E S U N K I N G Browne hadn’t been stationed there in more than a decade, but the state remained vital to BP’s strategy. The company had helped develop the Trans-Alaska Pipeline during his time there, and it continued to pump millions of gallons of crude hundreds of miles across the frozen tundra from the Arctic Ocean to the southern port of Valdez. Browne was running BP’s U.S. exploration division and was on the verge of a promotion to lead its global operation from London when the Exxon Valdez tanker ran aground in Prince William Sound. Browne was on Alaska’s North Slope at the time, at a base camp, when he was awakened at five in the morning with the news. He flew over the spill in a small plane and was struck by the slow response to the crisis, thinking that more boats and containment booms would be deployed more rapidly.9 Ironically, BP controlled the industry consortium that was responsible for containing spills around the Valdez terminal.


pages: 399 words: 120,226

Dangerous Waters: Modern Piracy and Terror on the High Seas by John S. Burnett

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British Empire, cable laying ship, Dava Sobel, defense in depth, Exxon Valdez, Filipino sailors, illegal immigration, Khyber Pass, Malacca Straits, North Sea oil, South China Sea, transcontinental railway, UNCLOS, UNCLOS

On many vessels sometimes even that last watch-stander nods off, and the ship just keeps trucking onward through the night unattended, a frightening revelation for those on small boats who cross the paths of these ships—at sea, at night. During the day many of the officers work twelve hours from 0800 to 2000 but the ratings, during a passage, keep banker’s hours. The Alaska Oil Spill Commission, in its final report on the 1989 Exxon Valdez disaster, was critical of Exxon for claiming that modern automated vessel technology permitted reduced manning without compromise of safety or function. “Manning policies also may have affected crew fatigue,” the report stated. “Whereas tankers in the 1950s carried a crew of 40 to 42 to manage about 6.3 million gallons of oil . . . the Exxon Valdez carried a crew of 19 to transport 53 million gallons of oil.”13 The Montrose carries a crew of 17 to transport 84 million gallons of oil. Because piracy has become such a concern, the British National Union of Marine, Aviation, and Shipping Transport Officers (NUMAST) has some strong ideas about crew levels: It is no secret that the vast majority of ships at sea are being run at their minimum safe manning level.

The information needed from the scene—current sea temperature, soundings, nature of seabed, among other facts, as well as ownership and liability—are all critical figures needed to manage such a disaster. The Montrose carries two million barrels of crude, nearly ten times the amount spilled by the Exxon Valdez and about fifty times the amount of oil washed onto the Alaska coastline.29 The devastation from a VLCC breaking up in the Straits would be inconceivable. Not accounting for natural degradation, evaporation, and containment efforts, were the oil that we carry to reach land, seventy-five thousand miles of coastline, the equivalent of nearly three times the circumference of the globe, could be affected. Using the formula for the damage caused by the Exxon Valdez, were the Montrose to spill all of her oil—84 million gallons of it—five-hundred thousand square miles, twice the size of the state of Texas, could be covered. These figures are so outrageously monstrous that sometimes it is easier just not to consider the consequences of such a spill.

Up to this point Captain Betts was primarily concerned with putting out the fires on the Nagasaki Spirit that raged across the deck and flared out of the side of the vessel. He knew, however, it would not be long before he had an even bigger job on his hands. And it came on the third day, when traces of unburned oil began escaping into the sea from the tanker’s open wound. The collision had the potential to become an environmental crisis. Few people involved with oil tankers have not learned a lesson or two from the grounding of the Exxon Valdez, the nation’s greatest environmental disaster since Three Mile Island. Betts knew what a similar spill of crude oil would mean to the coral beaches of Thailand and Malaysia only a couple hundred miles to the east; when his office filled out the Lloyd Open Forms—the standard no-cure-no-pay salvage agreement with the vessels’ owners to save both ships—he was committing his company legally to “use their best endeavors to prevent or minimize damage to the environment.”


pages: 554 words: 168,114

Oil: Money, Politics, and Power in the 21st Century by Tom Bower

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Ayatollah Khomeini, banking crisis, bonus culture, corporate governance, credit crunch, energy security, Exxon Valdez, falling living standards, fear of failure, forensic accounting, index fund, interest rate swap, kremlinology, LNG terminal, Long Term Capital Management, margin call, Mikhail Gorbachev, millennium bug, new economy, North Sea oil, offshore financial centre, oil shale / tar sands, oil shock, passive investing, peak oil, Piper Alpha, price mechanism, price stability, Ronald Reagan, shareholder value, short selling, Silicon Valley, sovereign wealth fund, transaction costs, transfer pricing, zero-sum game, éminence grise

All those profits, said critics, would have been higher if the companies had not used adroit bookkeeping to write off capital values, add to their reserves and settle tax disputes. One note in small print in Exxon’s accounts embodied the seemingly disparate threads linking the public’s dislike of Big Oil. At the end of 1990 it became apparent that Exxon had reduced its liability for taxation by setting off some costs caused by the Exxon Valdez disaster in Alaska against taxes. That calamity, and the reaction of Lawrence Rawl, the chairman, further damaged the industry’s credibility. Rawl had been telephoned at 8:30 a.m. on Good Friday, March 24, 1989, and told that the Exxon Valdez, a 900-foot tanker, had hit the Bligh Reef while maneuvering through Prince William Sound. By daybreak over 10 million gallons of Alaskan crude oil had leaked out of the tanker and was edging toward 1,100 miles of pristine coastline. Rawl was told that the tanker’s captain had failed an alcohol test, and admitted, “You know it’s going to be bad, bad, bad.”

Identified at the outset of his career by an internal code as destined for the board of directors, Raymond specialized in negotiating Exxon out of problems: selling a refinery in the Caribbean, or a nuclear plant in Washington State after a dangerously unfit chief executive had been removed; facing down threats from Venezuela to pay more for crude; and directing the cleanup after the Exxon Valdez oil spill. In the spotlight for the first time in Alaska, he had been asked by a lawyer during the preliminaries of a civil trial to assess the Exxon Valdez damages to describe his background. “I hope this doesn’t get too boring,” Raymond replied. “It kind of bores me.” Asked later about his low profile, he explained, “I don’t think much about it. I’ve never had a focus group to decide what my persona is out there.” A good day, he added, was Exxon staying out of the news, and maintaining his own invisibility.

The American public, seemingly prepared to pay more for a bottle of water than for a gallon of gasoline, were manifestly ungrateful for any Big Oil success. Unaware of the technological achievements involved, the oil industry was taken for granted by a generation of Americans who had grown up regarding cheap gasoline as their God-given birthright. Filling their gas tank did not make anyone feel good. Ever since nearly 11 million gallons of oil had spilled from the tanker the Exxon Valdez into Alaska’s pristine waters in March 1989, the public’s antagonism toward Big Oil had become entrenched. Big Oil had overtaken Big Tobacco as a focus of hatred. Within the American public’s DNA was a belief that oil was a decrepit rust industry unfairly extracting tax from honest citizens. Few appreciated that Thunder Horse would fractionally reduce America’s dependence on imported oil, which provided 60 percent of its daily consumption.


pages: 369 words: 80,355

Too Big to Know: Rethinking Knowledge Now That the Facts Aren't the Facts, Experts Are Everywhere, and the Smartest Person in the Room Is the Room by David Weinberger

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airport security, Alfred Russel Wallace, Amazon Mechanical Turk, Berlin Wall, Black Swan, book scanning, Cass Sunstein, commoditize, corporate social responsibility, crowdsourcing, Danny Hillis, David Brooks, Debian, double entry bookkeeping, double helix, en.wikipedia.org, Exxon Valdez, Fall of the Berlin Wall, future of journalism, Galaxy Zoo, Hacker Ethic, Haight Ashbury, hive mind, Howard Rheingold, invention of the telegraph, jimmy wales, John Harrison: Longitude, Kevin Kelly, linked data, Netflix Prize, New Journalism, Nicholas Carr, Norbert Wiener, openstreetmap, P = NP, Pluto: dwarf planet, profit motive, Ralph Waldo Emerson, RAND corporation, Ray Kurzweil, Republic of Letters, RFID, Richard Feynman, Richard Feynman, Ronald Reagan, semantic web, slashdot, social graph, Steven Pinker, Stewart Brand, technological singularity, Ted Nelson, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Whole Earth Catalog, X Prize

(The ORR is part of the National Oceanic and Atmospheric Administration.) 21 Kermit Pattison, “Crowdsourcing Innovation: Q&A with Dwayne Spradlin of InnoCentive,” FastCompany, December 15, 2008, http://www.fastcompany.com/blog/kermit-pattison/fast-talk/millions-eyes-prize-qa-dwayne-spradlin-innocentive. 22 “InnoCentive Solver Develops Solution to Help Clean Up Remaining Oil from the 1989 Exxon Valdez Disaster,” InnoCentive press release, November 14, 2007, http://www.marketwire.com/press-release/InnoCentive-Solver-Develops-Solution-Help-Clean-Up-Remaining-Oil-From-1989-Exxon-Valdez-792827.htm. 23 “2010 International Contest on LTPP Data Analysis,” http://www.fhwa.dot.gov/pavement/ltpp/contest.cfm. 24 Stefanie Olsen, “DOT Proposes Contest to ‘Green’ Jet Fuel Industry,” July 10, 2008, http://news.cnet.com/8301–11128_3–9987675–54.html. 25 Adam Ash, “Deep Thoughts: The Internet, Is It a Stupid Hive Mind, or the Potential Savior of Mankind?”

And at the end of the day, the contributors to this networked expertise split a prize, whether it’s money, reputation, or “crispy eggplant cut like French fries and salt-fried with scallion greens, a hint of cumin, and hot pepper.” 2. The Internet has many different types of people in it John Davis was a chemist in Bloomington, Illinois, who didn’t know a lot about oil. But it turned out that he knew enough about cement to solve a problem that had the oil experts stumped. In 2007, the Oil Spill Recovery Institute, a nonprofit created by Congress in response to the 1989 Exxon Valdez oil disaster,20 offered $20,000 to the first person who could figure out how to get the oil from that spill out of the bottom of the ocean where it had been sitting for eighteen years. Simply pumping it up did not work because when it got to the surface, the Alaskan air solidified the mix of oil and water, making it impossible to pump off the barges.21 But Davis knew that cement wouldn’t harden so long as you keep vibrating it.

Amateurs can now move science forward more easily than ever since science first became professionalized and institutionalized. This is, of course, easier in the areas of science that do not require building, say, a large hadron particle collider ($7.2 billion) or an international space station ($120 billion). We’ve already seen examples of amateurs like John Davis solving engineering problems—how to pump oil up from the Exxon Valdez—via contests. But amateurs are contributing in yet more structured ways. For example: • Volunteers at Galaxy Zoo, a science crowdsourcing Web site, have created what it claims is “the world’s largest database of galaxy shapes.”24 Beginning in July 2007 it posted images of a million galaxies from the Sloan Digital Sky Survey and asked people to do a simple categorization of each one: spiral-shaped or elliptical?


pages: 829 words: 229,566

This Changes Everything: Capitalism vs. The Climate by Naomi Klein

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1960s counterculture, activist fund / activist shareholder / activist investor, battle of ideas, Berlin Wall, big-box store, bilateral investment treaty, British Empire, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, Climategate, cognitive dissonance, colonial rule, Community Supported Agriculture, complexity theory, crony capitalism, decarbonisation, deindustrialization, dematerialisation, Donald Trump, Downton Abbey, energy security, energy transition, equal pay for equal work, Exxon Valdez, failed state, Fall of the Berlin Wall, feminist movement, financial deregulation, food miles, Food sovereignty, global supply chain, hydraulic fracturing, ice-free Arctic, immigration reform, income per capita, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, invention of the steam engine, invisible hand, Isaac Newton, James Watt: steam engine, light touch regulation, market fundamentalism, moral hazard, Naomi Klein, new economy, Nixon shock, Occupy movement, offshore financial centre, oil shale / tar sands, open borders, patent troll, Pearl River Delta, planetary scale, post-oil, profit motive, quantitative easing, race to the bottom, Ralph Waldo Emerson, Rana Plaza, Ronald Reagan, smart grid, special economic zone, Stephen Hawking, Stewart Brand, structural adjustment programs, Ted Kaczynski, the scientific method, The Wealth of Nations by Adam Smith, trade route, transatlantic slave trade, transatlantic slave trade, trickle-down economics, Upton Sinclair, uranium enrichment, urban planning, urban sprawl, wages for housework, walkable city, Washington Consensus, Whole Earth Catalog, WikiLeaks

Paige Lavender and Corbin Hiar, “Blair Mountain: Protesters March to Save Historic Battlefield,” Huffington Post, June 10, 2011. 3. The largest class of tanker that Northern Gateway plans to use in BC waters has a maximum capacity of 2.2 million barrels of oil, about 74 percent more than the 1,264,155 barrels carried by the Exxon Valdez: “Section 3.9: Ship Specifications,” TERMPOL Surveys and Studies, Northern Gateway Partnership Inc., Enbridge Northern Gateway Project, January 20, 2010, pp. 2–7; “Oil Spill Facts: Questions and Answers,” Exxon Valdez Oil Spill Trustee Council, http://www.evostc.state.ak.us. 4. Jess Housty, “Transformations,” Coast, April 1, 2013. 5. “Protesters Blamed for Cancelled Pipeline Hearing,” CTV News Vancouver, April 2, 2012. 6. Personal email communication with Tyler McCreary, PhD candidate, York University, January 30, 2014. 7.

Since the doors to foreign investors were flung open near the end of British colonial rule, oil companies have pumped hundreds of billions of dollars’ worth of crude out of Nigeria, most from the Niger Delta, while consistently treating its land, water, and people with undisguised disdain. Wastewater was dumped directly into rivers, streams, and the sea; canals from the ocean were dug willy-nilly, turning precious freshwater sources salty, and pipelines were left exposed and unmaintained, contributing to thousands of spills. In an often cited statistic, an Exxon Valdez–worth of oil has spilled in the Delta every year for about fifty years, poisoning fish, animals, and humans.25 But none of this compares with the misery that is gas flaring. Over the course of extracting oil, a large amount of natural gas is also produced. If the infrastructure for capturing, transporting, and using that gas were built in Nigeria, it could meet the electricity needs of the entire country.

They had made the 480-kilometer journey from Vancouver to this remote island community, a place of deep fjords and lush evergreen forests reaching to the sea, to hold public hearings about one of the most contentious new pieces of fossil fuel infrastructure in North America: Enbridge’s proposed Northern Gateway pipeline. Bella Bella is not directly on the oil pipeline’s route (that is 200 kilometers even further north). However, the Pacific ocean waters that are its front yard are in the treacherous path of the oil tankers that the pipeline would load up with diluted tar sands oil—up to 75 percent more oil in some supertankers than the Exxon Valdez was carrying in 1989 when it spilled in Alaska’s Prince William Sound, devastating marine life and fisheries across the region.3 A spill in these waters could be even more damaging, since the remoteness would likely make reaching an accident site difficult, especially during winter storms. The appointed members of the Joint Review Panel—one woman and two men, aided by support staff—had been holding hearings about the pipeline impacts for months now and would eventually present the federal government with their recommendation on whether the project should go ahead.


pages: 801 words: 242,104

Collapse: How Societies Choose to Fail or Succeed by Jared Diamond

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clean water, colonial rule, correlation does not imply causation, cuban missile crisis, Donner party, European colonialism, Exxon Valdez, illegal immigration, job satisfaction, means of production, new economy, North Sea oil, Piper Alpha, polynesian navigation, profit motive, South Sea Bubble, statistical model, Stewart Brand, Thomas Malthus, trade route, transcontinental railway, unemployed young men

However, in conversations over the last six years with dozens of lower-level as well as senior Chevron employees, employees of other oil companies, and people outside the oil industry, I have come to realize that many other factors as well have contributed to these environmental policies. One such factor is the importance of avoiding very expensive environmental disasters. When I asked a Chevron safety representative who happened to be a bird-watcher what had prompted these policies, his short answer was: “Exxon Valdez, Piper Alpha, and Bhopal.” He was referring to the huge oil spill from the running aground off Alaska of Exxon’s oil tanker the Exxon Valdez in 1989, the 1988 fire on Occidental Petroleum’s Piper Alpha oil platform in the North Sea that killed 167 people (Plate 33), and the 1984 escape of chemicals at Union Carbide’s Bhopal chemical plant in India that killed 4,000 people and injured 200,000 (Plate 34). These were three of the most notorious, best-publicized, and most expensive industrial accidents of recent times.

Pollution problems are more insidious and much more long-lasting for the mining industry than for the oil industry. Oil pollution problems arise mainly from quick and visible spills, many of which it has been possible to avoid by careful maintenance and inspections and by improved engineering design (such as double-hulled rather than single-hulled tankers), so that the oil spills that still occur today are mainly ones due to human error (such as the Exxon Valdez tanker accident), which can in turn be minimized by rigorous training procedures. Oil spills can generally be cleaned up within a few years or less, and oil degrades naturally. While mine pollution problems also occasionally appear as a quick visible pulse that suddenly kills lots of fish or birds (like the fish-killing cyanide overflow from the Summitville mine), more often they take the form of a chronic leak of toxic but invisible metals and acid that don’t degrade naturally, continue to leak for centuries, and leave slowly weakened people rather than a sudden pile of carcasses.

On the other hand, coal occurs in pure seams up to 10 feet thick stretching for miles, so that the ratio of dumped wastes to product extracted is only about one for a coal mine, far less than the already-mentioned figures of 400 for a copper mine and 5,000,000 for a gold mine. The lethal Buffalo Creek disaster at a U.S. coal mine in 1972 served as a wake-up call for the coal industry, much as the Exxon Valdez and North Sea oil rig disasters did for the oil industry. While the hardrock mining industry has had its share of disasters in the Third World, those have occurred too far from the eyes of the First World public to have served as a comparable wake-up call. Stimulated by Buffalo Creek, the U.S. federal government in the 1970s and 1980s instituted tighter regulation, and required stricter operating plans and financial assurance, for coal mining than for hardrock mining.


pages: 402 words: 98,760

Deep Sea and Foreign Going by Rose George

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Admiral Zheng, air freight, Airbus A320, Albert Einstein, bank run, cable laying ship, Captain Sullenberger Hudson, Costa Concordia, Edward Lloyd's coffeehouse, Exxon Valdez, failed state, Filipino sailors, global supply chain, Google Earth, intermodal, London Whale, Malacca Straits, Panamax, pattern recognition, profit maximization, Skype, trade route, UNCLOS, UNCLOS, urban planning, William Langewiesche

They want a better public image for an industry that in the UK alone employs 634,900 people, contributes £8.45 billion in tax and generates two per cent of the national economy, more than restaurants, take-away food and civil engineering combined, and only just behind the construction industry. They despair that shipping only emerges with drama and disaster: a cruise ship sinking, or another oil spill and blackened birds. They would like people to know such names as the Wec Vermeer, arrived from Leixões and heading for Rotterdam, or the Zim Genoa, due in from Ashdod, not just Exxon Valdez and Titanic. They provide statistics showing how the dark days of oil spills are over. Between 1972 and 1981, there were 223 spills. Over the last decade, there were 63. Each year, a shipping publicist told me, ‘more oil is poured down the drain by car mechanics changing engine oil than is spilled by the world’s fleet of oil tankers’. Yet that invisibility is useful too. There are few industries as defiantly opaque as this one.

The new Maritime Labour Convention – known as the Seafarers’ Bill of Rights – reduces the maximum work week to 72 hours. That’s still twice the maximum recommended in the EU’s Working Time Directive. A 2006 study found that half of seafarers worked at least 85 hours a week and one in four had fallen asleep while on watch. That level of fatigue is as dangerous as drinking seven times the legal limit of alcohol. Sixty per cent of shipping accidents are due to human error. When Exxon Valdez struck Alaska’s Bligh Reef in 1989, spilling 11 million gallons of crude oil, an investigation found that the watch officer had been mostly awake for 18 hours before his shift. Kendal’s captain knows this, but what can he do? He knows, as do maritime academics, that fatigue can be alleviated by a quiet environment and good nutrition, but victualling is a cost that can be more easily cut than fuel or insurance.

– Zero Recruitment in Europe ‘Piracy as a business’, Lloyd’s List, 1 December 2009. 6 Falsifying papers Select Committee on Transport, Eighth Report, July 2006, p.68. 7 Sixty per cent of shipping accidents are due to human error The International Union of Maritime Insurance (IUMI) reported that in the 15-year period up to 2008, 60 per cent of accidents involving the serious or total loss of vessels over 500 gross tonnes were due to human error. That works out at two serious incidents a day. Maritime and Coastguard Agency, The Human Element: a guide to human behaviour in the shipping industry, April 2010, p.v. – Exxon Valdez Maritime and Coastguard Agency, op. cit., p.47. – I shot the cook Seamen’s Church Institute of New York, The Lookout, vol. 33, no. 5, May 1942. 8 SL-7 ships – Levinson, op. cit., pp.229–230. 9 Scatter the painted ashes Burial at sea is permitted in the United States under the Ocean Dumping Act. According to the US Environmental Protection Agency’s frequently asked questions on ocean burials, the requirements for whole-body burials are ‘all plastic and fabric materials be removed from the casket before burial at sea.


pages: 305 words: 89,103

Scarcity: The True Cost of Not Having Enough by Sendhil Mullainathan

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American Society of Civil Engineers: Report Card, Andrei Shleifer, Cass Sunstein, clean water, computer vision, delayed gratification, double entry bookkeeping, Exxon Valdez, fault tolerance, happiness index / gross national happiness, impulse control, indoor plumbing, inventory management, knowledge worker, late fees, linear programming, mental accounting, microcredit, p-value, payday loans, purchasing power parity, randomized controlled trial, Report Card for America’s Infrastructure, Richard Thaler, Saturday Night Live, Walter Mischel, Yogi Berra

can lead soldiers to fire on their own troops: G. Belenky, T. J. Balkin, D. P. Redmond, H. C. Sing, M. L. Thomas, D. R. Thorne, and N. J. Wesensten, “Sustaining Performance During Continuous Operations: The U.S. Army’s Sleep Management System,” in Managing Fatigue in Transportation. Proceedings of the 3rd Fatigue in Transportation Conference (1998). The oil tanker Exxon Valdez: See Alaska Oil Spill Commission, Spill: The Wreck of the Exxon Valdez, vol. 3 (State of Alaska, 1990). An approachable discussion of the sleep literature as a whole can be found in William C. Dement and Christopher Vaughan, The Promise of Sleep: A Pioneer in Sleep Medicine Explores the Vital Connection Between Health, Happiness, and a Good Night’s Sleep (New York: Dell, 1999). comparable to going without sleep for two nights in a row: See Hans PA van Dongen et al., “The Cumulative Cost of Additional Wakefulness: Dose-Response Effects on Neurobehavioral Functions and Sleep Physiology from Chronic Sleep Restriction and Total Sleep Deprivation,” SLEEP 26, no. 2 (2003): 117–29.

This is perhaps the most pernicious, long-term detrimental way in which scarcity may tax bandwidth: thoughts of scarcity erode sleep. Studies of the lonely show that they sleep less well and get fewer hours. These effects are quite strong for the poor: they too have lower-quality sleep. And not sleeping enough can be disastrous. The U.S. Army has shown how lack of sleep can lead soldiers to fire on their own troops. The oil tanker Exxon Valdez crashed in Alaska in 1989 arguably in part because of the crew’s sleep deprivation and sleep debt. These effects cumulate. Studies show that sleeping four to six hours a night for two weeks leads to a decay in performance comparable to going without sleep for two nights in a row. Insufficient sleep further compromises bandwidth. One of the things the poor lack most is bandwidth. The very struggle of making ends meet leaves them with less of this vital resource.

arousal, and performance artificial scarcity Asia Atkins diet attention bottom-up processing capture of performance and top-down processing attentional blink Australia automatic bill pay automatic impulse bandwidth building cognitive capacity and comes at a price economizing on executive control and tax terminology timeline Banerjee, Abhijit Bangladesh Bank of America bankruptcy banks bargaining basketball beer bees behavioral economics Benihana restaurants Berra, Yogi Bertrand, Marianne bills automatic payment late payment of Bjorkegren, Dan Bohn, Roger Bolivia borrowing Family Feud and payday loans traps tunneling and See also borrowing; debt Boston bottom-up processing Bowen, Bruce brain development lateralization perception See also mind bridges Bryan, Chris buffer stock cabinet castaways cancer carbohydrates carbon dioxide Carlin, George cars accidents cell phone use and eating in impulse purchases insurance registration repairs repossession shopping for traffic cash transfer programs castaways cell phones Center for Responsible Lending Chapanis, Alphonse checker-shadow illusion chemistry Chennai, India Chevys restaurant child care China choices burden of one-off choking Christmas Churchill, Winston cigarettes taxes clothing packing professional purchase mistakes cockpit errors cocktails cognitive capacity cognitive science Cohen, Amanda college deadlines exams financial aid programs loans tuition communal tables commuters computers shopping for software computer vision syndrome conditional cash transfers consistency Consumer Reports contextual cues control impulses cortisol Covey, Stephen creativity credit cards crop insurance crop yields culture customer service dating, online daycare deadlines benefits of focus dividend and debt in India leveraged buyout payday loans rolled-over traps tunneling and See also borrowing; loans decisions, linking and the timing of declarative memory Dempsey, Christy diabetes dichotic listening task Dickinson, Charlie dieting diminishing marginal utility discretion, lack of disease divorce Dominican Republic DOTS (directly observed therapy) DVD players economics behavioral expertise and in India scarcity and 2008 recession edema education college financial literacy noise and Eisenhower, Dwight Eliot, T. S. e-mail emergencies hospital empathy bridge employment scarcity work hours entrepreneurship errors pilot slack and everyday life, scarcity in excise taxes executive control exercise experimental psychology expertise Exxon Valdez E-ZPass failure organizational to plan poverty and Family Feud (TV show) farming behavior crop insurance crop yields harvests organic subsistence weeding fatigue fault tolerance Faye, Michael Ferraro, Paul fertilizer financial literacy education firefighting trap fluid intelligence fMRI focus focus dividend food dieting eating while driving fast impulsivity and junk kitchen pantry labels neglect packing prices restaurant scarcity snacks food stamps Ford, Henry 401(k) plan frugality future neglect of game shows gasoline genetics Gennetian, Lisa Germany Gersick, Connie GlowCaps glucocorticoids goal inhibition golf grandparents Great Britain Grondin, Simon guess scarcity Hall, Crystal Handey, Jack Harris, Sandra harvests Hastings, Max Head Start health insurance heart rate Heschel, Abraham Joshua hibachi high school graduates HIV hospitals housing messy Hunton, Brian hyperbolic discounting IFMR Trust impulse control impulse purchases incentives, ineffective India bargaining in poverty street vendors Indonesia indoor plumbing ineffective incentives inefficiency infrastructure inhibition goal Institute for Healthcare Improvement insurance car crop deductibles health unemployment intelligence, fluid interest rates internal disruptions iPhone iPod IQ tests Iron Chef (TV show) Jaikumar, Ramchandran Japan Jenkins, Richard jewel loans Jewish Sabbath Jiaying Zhao juggling junk food Kahneman, Daniel Karlan, Dean Keep the Change program Kenya Killeen, Peter Kimes, Sheryl kitchen pantry Koyambedu vendors Kurtz, Jaime Larson, Dr.


pages: 339 words: 95,988

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt, Stephen J. Dubner

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airport security, Broken windows theory, crack epidemic, desegregation, Exxon Valdez, feminist movement, George Akerlof, information asymmetry, Joseph Schumpeter, Kenneth Arrow, mental accounting, moral hazard, More Guns, Less Crime, oil shale / tar sands, Paul Samuelson, peak oil, pets.com, profit maximization, Richard Thaler, school choice, sensible shoes, Steven Pinker, Ted Kaczynski, The Chicago School, The Market for Lemons, Thorstein Veblen, War on Poverty

. / 130 Abortion as “the only effective crime-prevention device”: See Anthony V. Bouza, The Police Mystique: An Insider’s Look at Cops, Crime, and the Criminal Justice System (New York: Plenum, 1990). / 130 $9 million to save a spotted owl: See Gardner M. Brown and Jason F. Shogren, “Economics of the Endangered Species Act,” Journal of Economic Perspectives 12, no. 3 (1998), pp. 3–20. / 130 $31 to prevent another Exxon Valdez –type spill: See Glenn W. Harrison, “Assessing Damages for the Exxon Valdez Oil Spill,” University of Central Florida working paper, 2004. / 130–31 Body-part price list: Drawn from the state of Connecticut’s Workers’ Compensation Information Packet, p. 27, available as of this writing at wcc.state.ct.us/ download/acrobat/info-packet.pdf. 5. WHAT MAKES A PERFECT PARENT? THE EVER CHANGING WISDOM OF PARENTING EXPERTS: Ann Hulbert, Raising America: Experts, Parents, and a Century of Advice About Children (New York: Knopf, 2003), is an extremely helpful compendium of parenting advice. / 134 Gary Ezzo’s “infant-management strategy” and sleep deprivation warning: See Gary Ezzo and Robert Bucknam, On Becoming Babywise (Sisters, Ore.: Multnomah, 1995), pp. 32 and 53. / 134 T.

As it happens, economists have a curious habit of affixing numbers to complicated transactions. Consider the effort to save the northern spotted owl from extinction. One economic study found that in order to protect roughly five thousand owls, the opportunity costs—that is, the income surrendered by the logging industry and others—would be $46 billion, or just over $9 million per owl. After the Exxon Valdez oil spill in 1989, another study estimated the amount that the typical American household would be willing to pay to avoid another such disaster: $31. An economist can affix a value even to a particular body part. Consider the schedule that the state of Connecticut uses to compensate for work-related injuries. Now, for the sake of argument, let’s ask an outrageous question: what is the relative value of a fetus and a newborn?

Ehrlich, Isaac Ehrlich, Paul Eight Men Out: The Black Sox and the 1919 World Series (Asinof) Eisner, Manuel elections campaign spending in campaign spending on candidate appeal in of 1948 of 1989 of 1990 of 2004 race and employment Enron environmental hazards Epstein, Richard ESPN Everson, Mark evil, resisting of experts: conventional wisdom and exploitation and abuse by incentives of information of media and on parenting predictions of self-interest of shrinking gap between public and Exxon Valdez Ezzo, Gary Feldman, Paul Fields, W. C. fines flame-retardant pajamas Food and Drug Administration (FDA) football Foote, Chris Forbes, Steve Foreign Correspondents’ Club (Tokyo) Fox, James Alan Francis, Andrew freakonomics Freakonomics Blog freakonomics.com/blog/ French Roast Friedman, Milton fructose, granulated Fryer, Roland G., Jr. funeral directors Funk, Patricia Galbraith, John Kenneth gambling game theory General Motors Georgia, University of, Coaching Principles and Strategies of Basketball course at Gertler, Paul Giuliani, Rudolph Gladwell, Malcolm Global Crossing Goetz, Chris Goldberg, Michael Golisano, Thomas gonorrhea Google Goolsbee, Austan Grace, Mark Grant, Ulysses Grateful Dead Green, Ben green revolution Greenspan, Alan Griffith, D.


pages: 258 words: 77,601

Everything Under the Sun: Toward a Brighter Future on a Small Blue Planet by Ian Hanington

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agricultural Revolution, Albert Einstein, Bretton Woods, carbon footprint, clean water, Climategate, Climatic Research Unit, energy security, Enrique Peñalosa, Exxon Valdez, Google Earth, happiness index / gross national happiness, Hedy Lamarr / George Antheil, hydraulic fracturing, Intergovernmental Panel on Climate Change (IPCC), oil shale / tar sands, stem cell, sustainable-tourism, the scientific method, University of East Anglia, urban planning, urban sprawl

We’ve seen oil spilled in dozens of other collisions, blowouts, deliberate releases (in 1991, Iraq released up to 1.9 billion litres of crude oil into the Persian Gulf), and storms (in 2005, Hurricane Katrina caused the release of more than 25 million litres). In 1970, the Arrow spilled almost 10 million litres of oil into Chedabucto Bay in Nova Scotia, and, in 1988, the Odyssey dumped 159 million litres off the coast of Nova Scotia. And in 1989, the Exxon Valdez spilled more than 40 million litres of crude oil into the pristine waters of Prince William Sound off the Alaska coast. Today, tens of thousands of wells operate on land and at sea, massive supertankers move huge quantities of oil across oceans, and pipelines and trucks transport oil over land. Stuff happens: earthquakes, accidents, storms, tides, icebergs, and, of course, human error. What can we learn from the BP disaster in the Gulf of Mexico?

First, there’s no such thing as a “foolproof” technology because, as the computer HAL in the movie 2001: A Space Odyssey knew, the biggest threat to a mission is a fallible, imperfect human being. We should also learn that relying so heavily on non-renewable fossil fuels for most of our energy needs carries numerous risks, from devastating spills to catastrophic climate change. In 1979, I hosted a program called Tankerbomb that warned of the hazards of supertanker traffic from Alaska past the treacherous B.C. coast. A decade later, the Exxon Valdez spill confirmed that warning. More recently, a ferry, the Queen of the North, ran into Gil Island on B.C.’s north coast. Human beings are fallible, and the B.C. coast is marked by numerous rocks and reefs. That’s why coastal First Nations are unanimous in their opposition to the proposed Enbridge pipeline to transport oil from the Alberta tar sands to the west coast where it would be loaded onto ships.

It takes three kilometres and fourteen minutes for such a vessel going at full speed to stop and reverse direction. Although most newer supertankers are equipped with double hulls to reduce the threat of a spill in the event of a collision, many ships still sport single hulls. Corporations don’t focus enough on prevention nor do they consider victims of their accidents a high priority. The Exxon Valdez spill led to litigation by several citizens’ groups, including fishermen, tour guides, and First Nations. The courts awarded them money, but the oil company appealed numerous decisions. During almost two decades of stalling, Exxon Mobil continued to earn record profits. Supertanker accidents and the Gulf spill reveal how little attention is paid to prevention. As oil gushed from the deep-sea well in the Gulf, BP’s response was pathetic.


pages: 294 words: 82,438

Simple Rules: How to Thrive in a Complex World by Donald Sull, Kathleen M. Eisenhardt

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Affordable Care Act / Obamacare, Airbnb, asset allocation, Atul Gawande, barriers to entry, Basel III, Berlin Wall, carbon footprint, Checklist Manifesto, complexity theory, Craig Reynolds: boids flock, Credit Default Swap, Daniel Kahneman / Amos Tversky, diversification, drone strike, en.wikipedia.org, European colonialism, Exxon Valdez, facts on the ground, Fall of the Berlin Wall, haute cuisine, invention of the printing press, Isaac Newton, Kickstarter, late fees, Lean Startup, Louis Pasteur, Lyft, Moneyball by Michael Lewis explains big data, Nate Silver, Network effects, obamacare, Paul Graham, performance metric, price anchoring, RAND corporation, risk/return, Saturday Night Live, sharing economy, Silicon Valley, Startup school, statistical model, Steve Jobs, TaskRabbit, The Signal and the Noise by Nate Silver, transportation-network company, two-sided market, Wall-E, web application, Y Combinator, Zipcar

Coordination rules delineate what to do, and likewise what others should do, so that collective objectives like winning battles and flying safely can be achieved. Coordination rules, however, do not deal with when to do things. For that, we turn now to the third process rule, timing, which addresses when to act. TIMING RULES Insomnia affects one-third of all adults, and is a condition that can severely reduce one’s quality of life and create major hazards for others. The Exxon Valdez oil spill, the Challenger space shuttle explosion, and the Chernobyl nuclear meltdown have all been attributed to sleep-deprived humans making errors. Insomnia particularly affects older adults, who have greater difficulty sleeping than younger people and are also more likely to experience the adverse side effects of common sleep medications. Thankfully, recent research shows that relief can be provided with the use of simple guidelines that even the most exhausted brains can follow.

. [>] While comedians: A brief survey of some of the more prominent “rules of improv” reveals a large area of common ground. While most lists contain the odd esoteric rule like “Never underestimate or condescend to your audience,” they converge on a handful of rules. See Charna Halpern, Del Close, and Kim Johnson, Truth in Comedy: The Manual of Improvisation (Colorado Springs, CO: Meriwether, 1994), and Tina Fey, Bossypants (New York: Little, Brown, 2011). [>] The Exxon Valdez: Australasian Broadcasting Corporation, “40 Facts About Sleep You Probably Didn’t Know,” accessed February 6, 2014, http://www.abc.net.au/science/facts/htm. [>] Thankfully, recent research: Daniel J. Buysse et al., “The Efficacy of Brief Behavioral Treatment for Chronic Insomnia in Older Adults,” Archives of Internal Medicine 171, no. 10 (2011): 887–95. [>] Timing rules sometimes: Kathleen M.

See dieting/eating economic value creation/simple rules, [>]–[>], [>]–[>], [>]–[>] n definition, [>] Eisenhardt, Kathleen background, [>] edge-of-chaos phenomenon and, [>], [>] improving simple rules lab study, [>]–[>] internationalization decisions of entrepreneurs and, [>] rule improvement pattern/strengthening, [>]–[>], [>]–[>] Start-Up Chile, [>] ESPN, [>] eToro description, [>]–[>] Popular Investors and, [>], [>], [>], [>], [>] simple rules program/YPO and, [>]–[>], [>], [>], [>], [>], [>] Everest, Mount/climbing, [>], [>]–[>] execution of strategy challenge of executing strategy, [>]–[>] crafting rules to guide strategy execution, [>]–[>] identifying a bottleneck impeding execution, [>]–[>] process to develop simple rules for strategy execution (summary), [>]–[>] simple rules to execute strategy, [>] simplifying strategy for execution, [>]–[>] Executive Education (London Business School), [>]–[>] experience and simple rules, [>]–[>], [>], [>]–[>] Exxon Valdez oil spill, [>] “fast thinking,” [>] Federal Reserve Board, [>] Fey, Tina, [>], [>], [>]–[>], [>] Filigran Trägersysteme, [>] Financial Times, [>], [>] Fincher, David, [>], [>], [>] fires (wildfires), [>]–[>] Fischer, Scott, [>], [>]–[>] “fixed-threshold strategy/with last chance option,” [>] Fleener, Coby, [>] Forest Service (US) rules on wildfires, [>]–[>] Francis, Pope, [>] Freiman, Nate, [>] Friz, Martin, [>], [>] Frontier Dental Laboratories, [>]–[>] Furr, Nathan, [>] Gebbia, Joe, [>], [>], [>]–[>] Gigerenzer, Gerd, [>] Glass-Steagall Act, [>] Glasser, Debbie, [>] go (Chinese game), [>]–[>] Google, [>], [>] Graham, Paul, [>] Great Depression, [>] Grupo Multimedia, [>] Guardian, [>] Haldane, Andy, [>] Harbaugh, Jim, [>] Harvard Business Review, [>], [>] Hastings, Reed, [>]–[>] Hawthorne, Nathaniel, [>] Hayek, Friedrich, [>] heuristics, [>], [>], [>] See also simple rules Hillary, Sir Edmund, [>] historical data and predictions, [>]–[>] H.


pages: 753 words: 233,306

Collapse by Jared Diamond

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clean water, colonial rule, correlation does not imply causation, cuban missile crisis, Donner party, European colonialism, Exxon Valdez, illegal immigration, job satisfaction, means of production, new economy, North Sea oil, Piper Alpha, polynesian navigation, prisoner's dilemma, South Sea Bubble, statistical model, Stewart Brand, Thomas Malthus, trade route, transcontinental railway, unemployed young men

However, in conversa-tions over the last six years with dozens of lower-level as well as senior Chevron employees, employees of other oil companies, and people outside the oil industry, I have come to realize that many other factors as well have contributed to these environmental policies. One such factor is the importance of avoiding very expensive environmental disasters. When I asked a Chevron safety representative who happened to be a bird-watcher what had prompted these policies, his short answer was: "Exxon Valdez, Piper Alpha, and Bhopal." He was referring to the huge oil spill from the running aground off Alaska of Exxon's oil tanker the Exxon Valdez in 1989, the 1988 fire on Occidental Petroleum's Piper Alpha oil platform in the North Sea that killed 167 people (Plate 33), and the 1984 escape of chemicals at Union Carbide's Bhopal chemical plant in India that killed 4,000 people and injured 200,000 (Plate 34). These were three of the most notorious, best-publicized, and most expensive industrial accidents of recent times.

Pollution problems are more insidious and much more long-lasting for the mining industry than for the oil industry. Oil pollution problems arise mainly from quick and visible spills, many of which it has been possible to avoid by careful maintenance and inspections and by improved engineering design (such as double-hulled rather than single-hulled tankers), so that the oil spills that still occur today are mainly ones due to human error (such as the Exxon Valdez tanker accident), which can in turn be minimized by rigorous training procedures. Oil spills can generally be cleaned up within a few years or less, and oil degrades naturally. While mine pollution problems also occasionally appear as a quick visible pulse that suddenly kills lots of fish or birds (like the fish-killing cyanide overflow from the Summitville mine), more often they take the form of a chronic leak of toxic but invisible metals and acid that don't degrade naturally, continue to leak for centuries, and leave slowly weakened people rather than a sudden pile of carcasses.

On the other hand, coal occurs in pure seams up to 10 feet thick stretching for miles, so that the ratio of dumped wastes to product extracted is only about one for a coal mine, far less than the already-mentioned figures of 400 for a copper mine and 5,000,000 for a gold mine. The lethal Buffalo Creek disaster at a U.S. coal mine in 1972 served as a wake-up call for the coal industry, much as the Exxon Valdez and North Sea oil rig disasters did for the oil industry. While the hardrock mining industry has had its share of disasters in the Third World, those have occurred too far from the eyes of the First World public to have served as a comparable wake-up call. Stimulated by Buffalo Creek, the U.S. federal government in the 1970s and 1980s instituted tighter regulation, and required stricter operating plans and financial assurance, for coal mining than for hardrock mining.


pages: 415 words: 123,373

Inviting Disaster by James R. Chiles

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Airbus A320, airline deregulation, crew resource management, cuban missile crisis, Exxon Valdez, Maui Hawaii, Milgram experiment, North Sea oil, Piper Alpha, Richard Feynman, Richard Feynman, Richard Feynman: Challenger O-ring, risk tolerance

The official methods for figuring the risks include failure mode effects analysis, fault trees, and event trees. These techniques attempt to sort through the most pressing probabilities. But there’s always a way to tilt the figures, and the history of these methods shows some attempts over the years to label worrisome events as extremely remote as a way of expediting a particular project; it happened before the DC-10 cargo-door blowouts and the Exxon Valdez oil spill. Before the Challenger disaster, NASA used a “probabilistic risk analysis” (PRA) method to report the odds of a disaster on any given shuttle mission. There were several outcomes depending on technique, but the most commonly cited one was one failure in one hundred thousand flights. A PRA began with hypothesizing about sequences of mishaps that could lead to a specific critical failure, then used engineering estimates to assign a probability of occurrence for each of those mishaps.

British Midlands 737 airliner: crash Near Kegworth, Leicestershire, United Kingdom January 8, 1989 Flight crew concluded from noise and vibration, and from use of throttles, that right-hand engine on twin-engined airliner was about to fail, so crew shut down that engine and relied on left-hand engine. In fact, left-hand engine had been failing due to ingestion of broken fan blade and lost all power short of airport. Crew did not have time to restart right-hand engine and crashed during approach. Deaths: 47. Exxon Valdez (American oil tanker): grounded Bligh Reef, Prince William Sound, Alaska, United States March 24, 1989 Outbound tanker left marked channel in attempt to avoid pack ice, with captain leaving bridge before difficult maneuver approached. Tanker failed to make turn in time and grounded on Bligh Reef. Ship released 11 million gallons of crude oil. Ecological damage was aggravated by slow spill response time.

Chapter 5 Barlay, Stephen. Aircrash Detective—The Quest for Aviation Safety: An International Report. London: Hamish Hamilton, 1969. Bates, Warren. “Shattered Windows, Lives.” Las Vegas Review-Journal, May 3, 1998. Burcham, Frank. 2000. Personal communication with author. 16 August. Campion-Smith, Bruce. Boeing 777. Shepperton, England: Ian Allan, 1997. Davidson, Art. In the Wake of the Exxon Valdez: The Devastating Impact of the Alaska Oil Spill. San Francisco: Sierra Club Books, 1990. Eddy, Paul, Elaine Potter, and Bruce Page. Destination Disaster: From the Tri-Motor to the DC-10: The Risk of Flying. NewYork: Quadrangle Press, 1976. Faith, Nicholas. Black Box. London: Macmillian, 1997. Gibson, Jeff. 2001. Personal communication with author. 15 January. Godson, John. The Rise and Fall of the DC-10.


pages: 501 words: 134,867

A Line in the Tar Sands: Struggles for Environmental Justice by Tony Weis, Joshua Kahn Russell

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Bakken shale, bilateral investment treaty, call centre, carbon footprint, clean water, colonial exploitation, conceptual framework, corporate social responsibility, decarbonisation, Deep Water Horizon, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, global village, guest worker program, happiness index / gross national happiness, hydraulic fracturing, immigration reform, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, invisible hand, liberal capitalism, LNG terminal, market fundamentalism, means of production, Naomi Klein, new economy, Occupy movement, oil shale / tar sands, peak oil, profit maximization, race to the bottom, smart grid, special economic zone, working poor

In British Columbia, the proposed Northern Gateway pipeline not only runs through one of the world’s largest remaining temperate rainforests, the Great Bear Rainforest, but it would also involve especially treacherous tanker shipping routes out of its terminus near Kitimat, weaving through coastal inlets and around the Haida Gwaii archipelago and territory of the Haida First Nation. At the same time, companies are attempting to increase the flow of tar sands bitumen through Kinder Morgan’s Trans Mountain pipeline in southern British Columbia, where Vancouver likewise may serve as a port for tar sands tanker traffic. The Exxon Valdez disaster is a forewarning of the potential risks of these plans. Although rail shipments are more expensive than pipelines, the tar sands industry has increasingly been utilizing railways in response to the limits of existing pipeline capacity, which lags behind the scale of extraction. As increasing pipeline capacity is taken up to pump tar sands, greater volumes of conventional oil are now being moved by rail, and it is ominous to note that there has been a dramatic surge in spills and accidents around US rail cars carrying oil since 2009.24 A further aspect of transport impacts relates to the attempt to establish a “megaload” corridor through the US Northwest and the northern Rocky Mountains.

In British Columbia, a number of proposed pipelines lead back to the tar sands: the Keystone XL route through the central US to Port Arthur, Texas; the Kinder Morgan Trans Mountain pipeline over the Rocky Mountains to the port of Vancouver; and the proposed Enbridge Northern Gateway line, which would run from Bruderheim, Alberta, to a marine port near Kitimat over the Rocky Mountains, crossing boreal forests, wild watersheds, and Indigenous territory. The proposed pipelines would intersect over seven hundred rivers and streams, including salmon-spawning habitat in the upper Fraser, Skeena, and Kitimat watersheds. Once received on British Columbia’s coast, oil tankers larger than the Exxon Valdez would have to navigate the treacherous waters of the Inside Passage. The pipeline would end at Kitimat, where oil tankers would travel through Haisla territory 150 kilometres down the narrow Douglas Channel, past the Gitga’at Nation at Hartley Bay and through Squally Channel into Hecate Strait, and on to the North Pacific. These are treacherous marine passages, with severe tidal currents and extreme weather.

For instance, the US federal government provides dozens of different recommendations for maximum safe exposure to benzene—a chemical found in oil that is known to cause cancer and neurological problems at high exposure rates—but none of these are specific to oil spills in residential areas.24 Despite these gaps in knowledge and policy, it is important to recognize that similar symptoms have been observed in many communities affected by oil spills, according to Dr. Riki Ott, a marine toxicologist, author, and activist who has been studying the subject since the 1989 Exxon Valdez spill in Alaska. Ott first visited Michigan in 2011 at the request of affected residents, and noted how she “was shocked at the similarity of the illnesses that were reported and documented by people” in Michigan to what she had seen in Alaska.25 After the Kalamazoo River spill, public health officials scrambled to grasp the extent of the potential health risks and respond accordingly. Appropriate resources were not always at hand.


pages: 651 words: 161,270

Global Spin: The Corporate Assault on Environmentalism by Sharon Beder

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American Legislative Exchange Council, battle of ideas, business climate, centre right, clean water, corporate governance, Exxon Valdez, Gary Taubes, global village, Intergovernmental Panel on Climate Change (IPCC), invisible hand, laissez-faire capitalism, oil shale / tar sands, old-boy network, price mechanism, profit maximization, Ralph Nader, RAND corporation, Ronald Reagan, shareholder value, telemarketer, The Bell Curve by Richard Herrnstein and Charles Murray, the market place, The Wealth of Nations by Adam Smith, urban planning

Crisis PR manages public perception following industrial accidents, the public uncovering of adverse effects of a product, and corporate mistakes. In their literature, these crisis experts frequently cite the aftermath of the Exxon Valdez shipwreck, which spewed tons of oil over pristine arctic wilderness, as a prime example of PR gone wrong. The aftermath they refer to is Exxon’s fallen reputation rather than the oil-soaked coastline and damage to marine life. In the world of PR, problems arise from the failure to communicate strategically, not from wrongful activity. The hundreds of articles in PR magazines and books that cover the Exxon Valdez accident almost invariably focus on how Exxon could have handled their PR better. However, as journalist Craig Mellow points out; “For all the stress on strategic counseling, no one talked about whether Exxon should have had better hiring or emergency-response policies beforehand.”12 The advice that crisis communicators give is therefore aimed at restoring reputation rather than preventing reoccurrences or fixing the physical consequences of the disaster: the problem is not reality but the perception of reality.

For work such as this they make hundreds of millions of dollars each year (over $300 million each in 2000).17 Hill & Knowlton’s clients have included governments from all over the world including Turkey, Peru, Israel, Egypt, Indonesia, Slovenia, the Czech Government, the Duvalier regime in Haiti and the People’s Republic of China after Tiananmen Square.18 Burson-Marsteller has represented national governments including Nigeria during the Biafran War, Romania during the reign of Nicolae Ceausescu, the ruling military junta of Argentina in the late 1970s and the South Korean government.19 Each firm advises Wise Use groups in the US and Canada, as well as a range of transnational corporations. Both have been involved in protecting some of the worst industries of our times, downplaying the health effects of smoking on behalf of the Tobacco Institute, keeping public concern at a minimum after the Three Mile Island nuclear accident, and helping to clean up Exxon’s image after the Exxon Valdez oil spill.20 Hill & Knowlton have helped to keep petrol taxes low on behalf of the American Petroleum Institute, have campaigned for deregulation for the American Truckers Association, been retained by apple growers to fight claims about Alar, worked with the American Association of Advertising Agencies to clean up the image of advertising, helped the National Conference of Catholic Bishops oppose abortion, and advised supporters of the Rev.

ref1, ref2 Earth Summit, Rio (1992) ref1, ref2, ref3, ref4–ref5, ref6–ref7, ref8, ref9 Easterbrook, Greg ref1 Eastman Kodak ref1 Ecology Channel ref1 Economic Affairs, Institute see Institute of Economic Affairs Economic Development Committee (Australian) ref1 economic environmentalism ref1–ref2, ref3 Economic Incentives Taskforce ref1 The Economist ref1, ref2, ref3–ref4, ref5 economists, use of ref1–ref2, ref3 Ecos Corporation ref1, ref2–ref3 ecoterrorists ref1, ref2, ref3 Edelman Medical Communications ref1 Edelman PR Worldwide ref1 Edison Electric Institute ref1 education ref1 advertising campaigns ref1–ref2, ref3–ref4, ref5–ref6 commercialism in ref1–ref2, ref3–ref4 conservative ref1–ref2 corporate propaganda ref1 corporate sponsorship ref1–ref2, ref3 environmental ref1–ref2 learning materials ref1–ref2 PR campaigns ref1, ref2, ref3, ref4 privatisation ref1 Educational Alternative Inc ref1 EIJ ref1 Eisenhower, Dwight ref1 Ekins, Paul ref1 Electric Mutual Liability ref1 Electric Power System ref1 electric-utility industry ref1, ref2 electronics industry ref1 Eli Lilly ref1 ‘élite transfer’ see ‘revolving door’ syndrome employee activism ref1–ref2, ref3, ref4 Employer’s Education Consortium of Victoria ref1 Empower America ref1 endangered species ref1, ref2, ref3, ref4–ref5, ref6 Endangered Species Act ref1, ref2, ref3, ref4, ref5 energy bill ref1, ref2, ref3 Enterprise Australia ref1–ref2 Entman, Robert ref1–ref2 ENVIRON Corporation ref1 environment legislation ref1–ref2 public concern ref1, ref2–ref3, ref4–ref5, ref6–ref7 regulation ref1, ref2, ref3–ref4, ref5, ref6–ref7, ref8–ref9, ref10, ref11–ref12 Environment Agency ref1 Environment Writer ref1–ref2 Environmental Defense Fund ref1, ref2, ref3 environmental impact statement (EIS) ref1 Environmental Law Foundation ref1 Environmental Protection Agency (EPA) dioxin assessment ref1, ref2–ref3 environmental regulation ref1–ref2, ref3, ref4 and GEC ref1, ref2 National Dioxin Study ref1 risk assessment ref1–ref2, ref3–ref4, ref5 Superfund legislation ref1, ref2 Environmental Research Foundation ref1 environmentalism activism ref1, ref2–ref3, ref4, ref5, ref6–ref7, ref8, ref9 advertising campaigns ref1–ref2, ref3–ref4, ref5–ref6 as ‘bearing witness’ ref1, ref2 children learning ref1–ref2 Clean Air Act (1968) ref1 Clean Air Act (1990) ref1, ref2, ref3, ref4 Clean Water Act ref1, ref2 Clean Water Act (1973) ref1 as communism ref1, ref2 and conflict of interest ref1 as conservation ref1–ref2 Control of Pollution Act (1974) ref1 corporate activism ref1–ref2 corporate cooperation ref1–ref2, ref3, ref4, ref5, ref6, ref7–ref8 corporate influence ref1, ref2, ref3, ref4 cost benefit analysis ref1–ref2, ref3, ref4 costs of ref1–ref2, ref3, ref4, ref5, ref6 debunking ref1, ref2, ref3–ref4, ref5, ref6–ref7, ref8–ref9 dirty tricks campaigns ref1–ref2 ‘ecofreaks’ ref1 economic instruments ref1–ref2, ref3 as ecoterrorism ref1, ref2, ref3 educational ref1–ref2 Endangered Species Act ref1, ref2, ref3, ref4, ref5 as extremism ref1, ref2–ref3 free-market ref1–ref2 front group strategies ref1–ref2 future of ref1 General Electric ref1–ref2 Global Warming Prevention Act ref1 journalists’ treatment ref1, ref2–ref3, ref4–ref5 lawsuits ref1–ref2, ref3–ref4 legislation ref1, ref2, ref3 marketing ref1, ref2–ref3 in the media ref1–ref2, ref3, ref4, ref5–ref6, ref7–ref8, ref9–ref10 merchandising ref1 ‘name-calling’ ref1, ref2, ref3–ref4, ref5–ref6, ref7 newsworthiness ref1–ref2 ‘paganism’ ref1, ref2 political influence ref1–ref2, ref3 PR campaigns ref1–ref2, ref3–ref4, ref5–ref6, ref7–ref8, ref9–ref10 as preservation ref1–ref2, ref3–ref4 of Procter & Gamble ref1–ref2 property rights ref1, ref2–ref3, ref4–ref5 ‘racism’ ref1 as radicalism ref1, ref2, ref3, ref4 as a religion ref1, ref2, ref3 revisionist ref1–ref2 in the 1990s ref1–ref2 Solid Waste Disposal Act ref1 and a solutions-oriented approach ref1–ref2 sponsored ref1–ref2 on TV ref1–ref2 unemployment caused by ref1–ref2, ref3, ref4 EPA see Environmental Protection Agency Epley, Joe ref1 Epstein, Richard ref1 Estonia ref1 Europe ref1, ref2–ref3, ref4 European Parliament ref1 experiments animal ref1–ref2, ref3, ref4, ref5, ref6–ref7 human ref1, ref2 in PR ref1–ref2 Exxon Corporation ref1, ref2 Exxon Valdez ref1, ref2 Fairness and Accuracy in Reporting (FAIR) ref1–ref2, ref3, ref4–ref5 Falk, Jim ref1 Fallows, James ref1 Farm Bureau Federation (American) ref1 Farmers Federation (National)77 fast food industry ref1, ref2, ref3 fax campaigns ref1, ref2 Federal Trade Commission ref1 Festival Records ref1 Feulner, Edwin ref1, ref2, ref3–ref4 Filene, Edward ref1–ref2 Financial Times ref1, ref2 Fingerhut, Marilyn ref1 Fischer, Tim ref1 Fitzpatrick, George ref1–ref2 Fletcher Challenge ref1, ref2 food industry ref1, ref2, ref3, ref4, ref5 see also fast food industry Forbes ref1–ref2 Ford, Gerald ref1 Ford Motor Company ref1, ref2, ref3 Forest Alliance of British Columbia ref1–ref2 Forest Industries Council (BC) ref1 Forest Industry Campaign Association ref1 Forest Protection Society ref1 forestry industry ref1, ref2 Fortune ref1, ref2, ref3, ref4–ref5 fossil fuel industry ref1, ref2 Foundation for Clean Air Progress ref1 Foundation for Public Affairs ref1 Fox Network ref1 Fraser Institute ref1–ref2 free enterprise ref1, ref2, ref3–ref4 environmental ref1–ref2 propaganda ref1, ref2 Free Enterprise Press ref1 free market see free enterprise Freedom of Information Act (FOIA) ref1, ref2, ref3 Friedman, Andy ref1, ref2 Friedman, Milton ref1, ref2, ref3 Friends of the Earth ref1, ref2, ref3–ref4, ref5, ref6 front groups ref1 anti-environmentalism ref1–ref2 in Australia ref1 in chlorine industry ref1 corporate funding ref1, ref2–ref3, ref4, ref5, ref6–ref7, ref8–ref9 dioxin defence ref1, ref2, ref3 ‘experts’ ref1, ref2, ref3, ref4 fighting legislation ref1 grassroots organisations ref1–ref2 lobbying ref1, ref2, ref3–ref4, ref5, ref6–ref7 in the media ref1–ref2 PR support ref1, ref2, ref3, ref4 pseudo-environmentalism ref1–ref2 scientific ‘evidence’ ref1–ref2 strategies ref1–ref2 Frontiers of Freedom Institute ref1 fuel consumption ref1, ref2, ref3, ref4 Fumento, Michael ref1 Gaffey, Bill ref1 Gardner, James ref1 gas industry ref1, ref2 Gelbspan, Ross ref1, ref2 General Electric Company ref1–ref2 General Foods Corporation ref1 General Motor Corporation ref1, ref2 George C.


pages: 368 words: 96,825

Bold: How to Go Big, Create Wealth and Impact the World by Peter H. Diamandis, Steven Kotler

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3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, cloud computing, creative destruction, crowdsourcing, Daniel Kahneman / Amos Tversky, dematerialisation, deskilling, Elon Musk, en.wikipedia.org, Exxon Valdez, fear of failure, Firefox, Galaxy Zoo, Google Glasses, Google Hangouts, Google X / Alphabet X, gravity well, ImageNet competition, industrial robot, Internet of things, Jeff Bezos, John Harrison: Longitude, John Markoff, Jono Bacon, Just-in-time delivery, Kickstarter, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, loss aversion, Louis Pasteur, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Mars Rover, meta analysis, meta-analysis, microbiome, minimum viable product, move fast and break things, Narrative Science, Netflix Prize, Network effects, Oculus Rift, optical character recognition, packet switching, PageRank, pattern recognition, performance metric, Peter H. Diamandis: Planetary Resources, Peter Thiel, pre–internet, Ray Kurzweil, recommendation engine, Richard Feynman, Richard Feynman, ride hailing / ride sharing, risk tolerance, rolodex, self-driving car, sentiment analysis, shareholder value, Silicon Valley, Silicon Valley startup, skunkworks, Skype, smart grid, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Stewart Brand, technoutopianism, telepresence, telepresence robot, Turing test, urban renewal, web application, X Prize, Y Combinator, zero-sum game

Case Study 1: Wendy Schmidt Oil Cleanup XCHALLENGE In April 2010, British Petroleum’s Deepwater Horizon oil rig exploded and sank off the Gulf Coast of the United States, causing the largest accidental ocean oil spill in the history of the petroleum industry. Before it was capped, the leaking Macondo Prospect well spewed more than 200 million gallons of oil into the sea, exceeding the infamous 1989 Exxon Valdez spill some eighteen times over. The resulting slick covered 2,500 to 4,000 square miles of the Gulf of Mexico, approximately the size of Hawaii’s Big Island.11 Using a combination of traditional methods, cleanup teams managed to remove less than half the oil, approximately 69 million gallons. Natural dispersal and evaporation removed an additional 84 million gallons. But that left a whopping 53 million gallons, about 26 percent of the spill, to pollute the ocean and adjacent shoreline.

Francis Beland, then my vice president of prize development, also an ocean explorer, studied the problem. The idea of a prize to cap the gusher was off the table—BP would never give us (or anyone) access to their data. Next we turned to the idea of impacting the cleanup. We quickly realized that the technology to clean up oil spills had not significantly improved in the twenty-one years since the Exxon Valdez spill. In fact, a lot of the equipment being used in the gulf was the very same equipment used decades earlier in Alaska. Why? It turned out to be a multilevel problem, with a number of perverse incentives. Cleanup teams (typically disenfranchised fishermen) often were paid by the hour, giving them no financial reason to be faster or more efficient. Oil companies, meanwhile, had no desire to spend money on better technologies because existing methods fulfilled the minimum requirements set by insurers and regulatory bodies.

., 7, 9 Six Ds of, see Six Ds of Exponentials exponential organizations, 15–17, 18–21, 22 crowd tools of, see crowdfunding, crowdfunding campaigns; crowdsourcing; incentive competitions definition of, 15 linear vs., 15, 17, 18, 19, 20, 21 structure of, 21 see also entrepreneurs, exponential; specific exponential entrepreneurs and organizations Exponential Organizations (ExO) (Ismail), xiv, 15 extrinsic rewards, 78, 79 Exxon Valdez, 250 FAA (Federal Aviation Administration), 110, 111, 261 Facebook, 14, 16, 88, 128, 173, 182, 185, 190, 195, 196, 202, 212, 213, 217, 218, 224, 233, 234, 236, 241 facial recognition software, 58 Fairchild Semiconductor, 4 Falcon launchers, 97, 119, 122, 123 false wins, 268, 269, 271 Fast Company, 5, 248 Favreau, Jon, 117 feedback, feedback loops, 28, 77, 83, 84, 120, 176, 180 in crowdfunding campaigns, 176, 180, 182, 185, 190, 199, 200, 202, 209–10 triggering flow with, 86, 87, 90–91, 92 Festo, 61 FeverBee (blog), 233 Feynman, Richard, 268, 271 Firefox Web browser, 11 first principles, 116, 120–21, 122, 126 Fiverr, 157 fixed-funding campaigns, 185–86, 206 “flash prizes,” 250 Flickr, 14 flow, 85–94, 109, 278 creative triggers of, 87, 93 definition of, 86 environmental triggers of, 87, 88–89 psychological triggers of, 87, 89–91, 92 social triggers of, 87, 91–93 Flow Genome Project, xiii, 87, 278 Foldit, 145 Forbes, 125 Ford, Henry, 33, 112–13 Fortune, 123 Fossil Wrist Net, 176 Foster, Richard, 14–15 Foundations (Rose), 120 Fowler, Emily, 299n Foxconn, 62 Free (Anderson), 10–11 Freelancer.com, 149–51, 156, 158, 163, 165, 195, 207 Friedman, Thomas, 150–51 Galaxy Zoo, 220–21, 228 Gartner Hype Cycle, 25–26, 25, 26, 29 Gates, Bill, 23, 53 GEICO, 227 General Electric (GE), 43, 225 General Mills, 145 Gengo.com, 145 Genius, 161 genomics, x, 63, 64–65, 66, 227 Georgia Tech, 197 geostationary satellite, 100 Germany, 55 Get a Freelancer (website), 149 Gigwalk, 159 Giovannitti, Fred, 253 Gmail, 77, 138, 163 goals, goal setting, 74–75, 78, 79, 80, 82–83, 84, 85, 87, 137 in crowdfunding campaigns, 185–87, 191 moonshots in, 81–83, 93, 98, 103, 104, 110, 245, 248 subgoals in, 103–4, 112 triggering flow with, 89–90, 92, 93 Godin, Seth, 239–40 Google, 11, 14, 47, 50, 61, 77, 80, 99, 128, 134, 135–39, 167, 195, 208, 251, 286n artificial intelligence development at, 24, 53, 58, 81, 138–39 autonomous cars of, 43–44, 44, 136, 137 eight innovation principles of, 84–85 robotics at, 139 skunk methodology used at, 81–84 thinking-at-scale strategies at, 136–38 Google Docs, 11 Google Glass, 58 Google Hangouts, 193, 202 Google Lunar XPRIZE, 139, 249 Googleplex, 134 Google+, 185, 190, 202 GoogleX, 81, 82, 83, 139 Google Zeitgeist, 136 Gossamer Condor, 263 Gou, Terry, 62 graphic designers, in crowdfunding campaigns, 193 Green, Hank, 180, 200 Grepper, Ryan, 210, 211–13 Grishin, Dmitry, 62 Grishin Robotics, 62 group flow, 91–93 Gulf Coast oil spill (2010), 250, 251, 253 Gulf of Mexico, 250, 251 hackathons, 159 hacker spaces, 62, 64 Hagel, John, III, 86, 106–7 HAL (fictional AI system), 52, 53 Hallowell, Ned, 88 Hariri, Robert, 65, 66 Harrison, John, 245, 247, 267 Hawking, Stephen, 110–12 Hawley, Todd, 100, 103, 104, 107, 114n Hayabusa mission, 97 health care, x, 245 AI’s impact on, 57, 276 behavior tracking in, 47 crowdsourcing projects in, 227, 253 medical manufacturing in, 34–35 robotics in, 62 3–D printing’s impact on, 34–35 Heath, Dan and Chip, 248 Heinlein, Robert, 114n Hendy, Barry, 12 Hendy’s law, 12 HeroX, 257–58, 262, 263, 265, 267, 269, 299n Hessel, Andrew, 63, 64 Hinton, Geoffrey, 58 Hoffman, Reid, 77, 231 Hollywood, 151–52 hosting platforms, 20–21 Howard, Jeremy, 54 Howe, Jeff, 144 Hseih, Tony, 80 Hughes, Jack, 152, 225–27, 254 Hull, Charles, 29–30, 32 Human Longevity, Inc.


pages: 317 words: 87,566

The Happiness Industry: How the Government and Big Business Sold Us Well-Being by William Davies

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1960s counterculture, Airbnb, business intelligence, Cass Sunstein, corporate governance, dematerialisation, experimental subject, Exxon Valdez, Frederick Winslow Taylor, Gini coefficient, income inequality, intangible asset, invisible hand, joint-stock company, lifelogging, market bubble, mental accounting, nudge unit, Philip Mirowski, profit maximization, randomized controlled trial, Richard Thaler, road to serfdom, Ronald Coase, Ronald Reagan, science of happiness, selective serotonin reuptake inhibitor (SSRI), sentiment analysis, sharing economy, Slavoj Žižek, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, Steve Jobs, The Chicago School, The Spirit Level, theory of mind, urban planning, Vilfredo Pareto

The theory of utility maximization, as it was developed by Jevons et al. in the 1870s, was useful to the extent that it explained why people buy and sell things. That was all. But over the second half of the twentieth century this economic theory became increasingly expanded, until it came to serve the same broader public function that Bentham’s original utilitarianism sought to achieve. What began as a theory of market exchange was gradually inflated until it became a theory of justice. Consider the following example. On 24 March 1989, the Exxon Valdez oil tanker ran aground off the coast of Alaska, while carrying 55 million gallons of oil, resulting in what was then the largest oil spill in US history. Over one hundred thousand sea-birds were killed, and the populations of various fish, sea otters and other wildlife were still below their previous level over twenty years later. Various reports emerged regarding the negligence of those on board, inadequate staffing, and poor equipment that might otherwise have prevented the disaster.

But beyond Exxon’s liability for the cost of the clean-up, there was a broader moral question: how to punish the company for the damage they had done to a thousand miles of beautiful coastline? How to counterbalance what they’d done? One of the answers to this question was produced by the state of Alaska. Using a technique known as a ‘willingness to pay survey’, a representative sample of citizens in all of the other forty-nine US states were interviewed on how much they would be ‘willing to pay’ for the Exxon Valdez disaster not to have taken place.24 They were each provided with information about the extent and impact of the disaster to inform this mental calculation. The answer, so it turned out, was an average of $31 per household. Multiplied by 91 million households, this produced the calculation that Exxon owed the American public $2.8 billion. This figure was used to help calculate the final legal settlement of what Exxon had to pay as a fine.

See Chicago School of economics divorce of from psychology, 61, 69 evolution of discipline of, 54 exceptional status attributed to, 26 function of, according to Coase, 156 happiness economics, 5, 74, 229, 252 as mathematical problem, 51 neo-classical economists/economics, 113, 123, 181 as phenomenon of the mind, 59 pop-economics, 152 reunion of with psychology, 64, 182 subjective sensation and, 55 as winner take all, 160 economies classical political economy, 49–50, 57 knowledge-based economy, 136 political economy, 50, 56 sharing economy, 188 social economy, 190 Edgeworth, Francis, 60, 84 Eisenhower, Dwight David, 255 Ello, 213 emotion definition, 75 as market research industry’s preferred version of happiness/pleasure, 74 emotional contagion, 225 empiricism, 27, 30, 152, 269 employee engagement, 106–9, 113, 126 employee fitness-tracking programmes, 240 employee-owned businesses, advantages of, 272 end of theory, 237 Enlightenment, 7, 19, 23, 27, 47, 85, 251 ennui, costs of, 108 enthusiasm, 251 entropy, law of, 115 ergonomics, 50, 116, 137 Essay on Government (Priestley), 13 European Commission, 255 European Management Forum, 1 evidence-based policy-making, 17 existentialism, 38 experience medicine, 126 experienced utility, measurement of, 64 experimental psychology, 81 Exxon Valdez oil spill, 62–3 eye tracking, 72, 97 eyes, focus on by Wundt, 79–81 Facebook, 10, 74, 100, 189, 204, 206, 207, 208, 209, 210, 213, 220, 221, 224, 225, 238, 239, 257, 269 face-reading software, 222 facial coding, 76, 97 facial scanning/face-scanning technology, 72, 222, 276 farm experiences, benefits of, 246 fatigue, businesses’ concern about, 50, 116, 120 Fatigue Laboratory (Harvard Business School), 120, 122 FearFighter, 222 Fechner, Gustav as coining pleasure principle, 29 distrust of language, 32 dualism of, 28, 30, 265 on energy, 29, 115 as influenced by Hegel, 30 as monist, 33 as new age thinker, 28 parallels in English psychology to, 48 psychophysical methods of, 60 psychophysical parallelism, 259 as representing relationships between mind and world as numerical ratio, 35 on solving mind–body problem using mathematics, 27, 28 on theory of psychology, 29 weight-lifting experiments of, 30–1, 38, 49, 50, 59, 78 Federal Drug, Food and Cosmetic Act (US) (1938), 170 feedback loops/feedback mechanisms, 95, 103, 230, 276 feelings, adjustment of, 31–2 Ferriss, Tim, 112 fit notes, 112 Fitbit, 240 fitness-tracking ticket machine, 240 fMRI, 32, 231, 237, 241, 261, 262 focus groups, 102, 125 Foucault, Michel, 280n22 FP7 research (European Commission), 255 Freakonomics (Levitt and Dubner), 152 free markets, 19, 49, 57, 69, 140, 154, 181, 185, 274 Free: The Future of a Radical Price (Anderson), 185 Freud, Sigmund, 29, 164, 169, 198, 200, 203 Friedman, Milton, 149, 150, 154, 156–7, 159, 160, 161 friendship, 186, 187, 188, 191, 197, 201, 205, 208, 211, 212, 222, 225, 243, 258 friendvertising, 189 Gale, Harlow, 83, 85 Gallup (poll), 9, 106, 146, 219, 272 Gallup, George, 101 gaming, 205–6 The Genealogy of Morals (Nietzsche), 84 General Adaptation Syndrome, 129 General Medical Council (Britain), 110 General Motors (GM), 215–16 General Phonograph Manufacturing Company, 200 General Sentiment, 223 generosity, 185, 196 Georgetown University, 142 German Automobile Manufacturers’ Association, 217 Germany, influx of Americans taking university degrees and research training in, 83 Gershon, Michael, 231 Gilbert, Jeremy, 213 Gladwell, Malcolm, 72 global economic management, 3 Google, 37, 193 Graham, Richard, 205, 206 gratitude, 33, 131, 186, 187, 194, 196, 210, 276 group identity, 123 group psychology, 124, 125 Growing Well, 246, 247, 248, 250 Guze, Samuel, 169 Hague, William, 139–40, 141, 142, 144 Haidt, Jonathan, 73 Hall, G.

The Power Surge: Energy, Opportunity, and the Battle for America's Future by Michael Levi

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American energy revolution, Berlin Wall, British Empire, Carmen Reinhart, crony capitalism, deglobalization, energy security, Exxon Valdez, fixed income, full employment, global supply chain, hiring and firing, hydraulic fracturing, Induced demand, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, manufacturing employment, oil shale / tar sands, oil shock, peak oil, RAND corporation, Ronald Reagan, Silicon Valley, South China Sea

Skeptics of mandated conservation and efficiency tasted victory in 1985 when new fuel economy standards for cars and trucks, deemed expensive, unnecessary, and dangerous, were shelved. Opponents of nuclear power successfully mobilized public fear following the Three Mile Island meltdown in 1979, which, together with rising costs, put the U.S. nuclear industry largely out of business. Adversaries of offshore oil drilling, buoyed by the Exxon Valdez disaster in 1989, sought and delivered a ban on new exploration and production off U.S. coasts. Supporters of small government and skeptics of alternative fuels nearly dismantled the Department of Energy and succeeded in starving it of cash. During the 1990s, climate change rose to join the pantheon of previously contested energy issues, yet once again opponents of action—this time by an overwhelming ninety-five to zero vote in Congress that preemptively rejected the Kyoto Protocol and, more importantly, set the tone for domestic U.S. climate policy—made sure that little if anything would be done. m m m The first years of the twenty-first century would challenge the stasis quickly.

Yet within less than a year after he posted the letter the conventional wisdom changed entirely. Oil watchers were heralding a stunning boom in U.S. production. In North Dakota and Texas, producers were drilling down and then sideways to extract oil, using the same techniques that have been applied to natural gas. Offshore production was booming despite the Deepwater Horizon disaster, the first major U.S. oil spill since the Exxon Valdez. North of the U.S.-Canada border, in the Alberta oil sands, developers were extracting tarlike bitumen in massive mines and by heating deposits buried deep beneath the earth, producing millions of barrels a day of oil in the process and fueling excitement about potential gains further south. This time around, it seemed, the technologies that were needed to fuel resurgence in American oil were finally ready for prime time.

See Oil Shock (1973) energy independence, 3, 8, 51–52, 70, 79–80, 82, 196 Energy Information Administration, 54, 112, 149, 173 Energy Policy Act (1992), 14 energy security Great Recession and, 16 market-based approaches to, 14 natural gas and, 25, 35, 49, 200 oil and, 3, 16, 64–65, 72, 76–79, 111, 125, 127, 131–132, 136–137, 142, 185, 196, 209 rare-earth metals and, 111, 132–134, 136 renewable energy and, 9, 110–111, 125, 161, 163 sea lanes and, 78, 183–184, 205 September 11, 2001 terrorist attacks and, 15–16 United States and, 7, 13–14, 18–19, 163, 197–198, 200, 210 Energy Security Leadership Council, 65 Enphase Energy, 117 Envia Systems, 36, 117, 133 Environmental Defense Fund, 206 INDEX • 253 environmentalists Alaska National Wildlife Refuge (ANWR) and, 59 energy companies and, 207–208 natural gas production and, 3–4, 29, 43–44, 48, 92, 98, 208 pollution and, 14 estimated ultimate recovery (EUR), 41–43 ethane, 27–28, 35, 56 ethanol. See under biofuels ethylene, 27–28 Europe. See also individual countries natural gas and, 30–35 natural gas vehicles in, 38–39 Exxon, 10 Exxon Valdez disaster, 15, 52 Federal Reserve, 131, 183 Ferrenberg, Scott, 83–84, 87–88 FLABEG, 161–162, 167–168 food prices, biofuels impact on, 120–121, 140–141 Ford Motor Company Congressional testimony by, 9 Focus Electric model and, 114, 116, 118, 141 Mustang model and, 118–119 research and development at, 5, 114–116, 118–119, 122–123, 136 Ford, Gerald, 51 Ford, Henry, 17 Foulkes, John, 62 Fox, Josh, 4 fracking natural gas production and, 2–3, 24, 35, 44–47, 98 oil production and, 54 opposition to, 3–4, 22, 35, 92, 98, 177 France, 24, 33, 172 Frederick, Jamie, 4–5 Friedman, Tom, 163 Friendly Frackasaurus, 48 fuel cells, 114 fuel efficiency.


pages: 324 words: 93,175

The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home by Dan Ariely

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Alvin Roth, assortative mating, Burning Man, business process, cognitive dissonance, corporate governance, Daniel Kahneman / Amos Tversky, end world poverty, endowment effect, Exxon Valdez, first-price auction, Frederick Winslow Taylor, George Akerlof, happiness index / gross national happiness, Jean Tirole, job satisfaction, knowledge economy, knowledge worker, loss aversion, Peter Singer: altruism, placebo effect, Richard Thaler, Saturday Night Live, second-price auction, software as a service, The Wealth of Nations by Adam Smith, ultimatum game, Upton Sinclair, young professional

For example, a few years ago a two-year-old white terrier named Forgea spent three weeks alone aboard a tanker drifting in the Pacific after its crew abandoned ship. I’m sure Forgea was adorable and didn’t deserve to die, but one can ask whether, in the grand scheme of things, saving her was worth a twenty-five-day rescue mission that cost $48,000 of taxpayers’ money—an amount that might have been better spent caring for desperately needy humans. In a similar vein, consider the disastrous oil spill from the wrecked Exxon Valdez. The estimates for cleaning and rehabilitating a single bird were about $32,000 and for each otter about $80,000.19 Of course, it’s very hard to see a suffering dog, bird, or otter. But does it really make sense to spend so much money on an animal when doing so takes away resources from other things such as immunization, education, and health care? Just because we care more about vivid examples of misery doesn’t mean that this tendency always helps us to make better decisions—even when we want to help.

T. C. Schelling, “The Life You Save May Be Your Own,” in Problems in Public Expenditure Analysis, ed. Samuel Chase (Washington, D.C.: Brookings Institution, 1968). 18. See Paul Slovic, “ ‘If I Look at the Mass I Will Never Act’: Psychic Numbing and Genocide,” Judgment and Decision Making 2, no. 2 (2007): 79–95. 19. James Estes, “Catastrophes and Conservation: Lessons from Sea Otters and the Exxon Valdez,” Science 254, no. 5038 (1991): 1596. 20. Samuel S. Epstein, “American Cancer Society: The World’s Wealthiest ‘Nonprofit’ Institution,” International Journal of Health Services 29, no. 3 (1999): 565–578. 21. Catherine Spence, “Mismatching Money and Need,” in Keith Epstein, “Crisis Mentality: Why Sudden Emergencies Attract More Funds than Do Chronic Conditions, and How Nonprofits Can Change That,” Stanford Social Innovation Review, spring 2006: 48–57. 22.

., 187–88 hedonic treadmill and, 175 placing limits on, 186–87 reducing, 185–86 spacing of, 185, 186 contrafreeloading, 60–63 Jensen’s study of, 60–62, 63 standard economic view at odds with, 62–63 Converse, 95 cooking: children’s involvement in, 121 enjoyment factor and, 62n, 105–6 semi-preprepared food and, 85–88 CO2 emissions, 251–52 counting strategies, 282–83 Count of Monte Cristo, The (Dumas), 123 creation, pride of: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect creativity, bonuses and improvements in, 47–48 Csíkszentmihályi, Mihály, 49 cultures, organizational: acronyms and, 120 Not-Invented-Here bias and, 119–21 customer revenge, 131–51 against airlines, 142–43 apologies and, 149–51, 152 author’s experience with Audi customer service and, 131–36, 137, 147–49, 153–54 distinction between agents and principals and, 144–47 Farmer and Shane’s “Yours Is a Very Bad Hotel” and, 140–41, 146 fictional case study for Harvard Business Review on, 147–49 increase in, 143 Neistat brothers’ video on Apple’s customer service and, 141–42 passage of time and, 151 phone call interruption experiments on, 135–39, 145–46, 150–51 customization, 94–96 of cars, 88, 89, 94 effort expended in, 89, 95–96 overvaluation despite removing possibility of, 96 of shoes, 95, 96 D Dallaire, Roméo, 255 Darfur, 238, 253 Dart Ball game, 23, 34 Darwin, Charles, 157 dating, 191–235 market failures in, 213–15, 216–17, 220–21, 230–32, 233–35 playing hard to get and, 104 standard practice of, 224–25, 227–28 yentas (matchmakers) and, 213 see also assortative mating; online dating; speed dating decision making: author’s medical care and, 284–88 cooling off before, 257, 279 emotions and, 261–77 gender differences and, 274–76 irreversible decisions and, 285, 286 rationalization of choices in, 287 from rational perspective, 5–6 short-term, long-term decisions affected by, 264–65, 270–74, 276–77 stability of strategies for, 261–65; see also self-herding ultimatum game and, 265–70, 275–76 dentistry, adaptation to pain and, 161–62 design, taking people’s physical limitations into account in, 230–32 destroying work in front of workers, 74–76 Dichter, Ernest, 86 disease: adaptation to pain and, 165, 167 preventative health care and, 251, 256 “survivor” rhetoric and, 241–42 Disney, 154 distraction, performance-based incentives and, 30, 36 division of labor, 77–80 IT infrastructure and, 77, 79–80 Marx’s alienation notion and, 79 Smith’s observations on, 77–78 divorce, foreseeing outcome of, 173 Dodson, John, 18–20, 22, 31, 47 do-it-yourself projects, see IKEA effect Donath, Judith, 225 Dostoyevsky, Fyodor, 157 Doubletree Club, Houston, 140–41, 146 dreams, author’s self-image in, 182–83 DreamWorks SKG, 154 driving: momentary anger during, 261 safety precautions and, 6–7 texting during, 6, 7, 8 see also cars drop-in-the-bucket effect, 244–45, 252, 254–55 Dumas, Alexandre, 123 E Eastwick, Paul, 172–73 Edison, Thomas, 117–19, 122 effort: increase in value related to, 89, 90, 95–96, 105–6; see also IKEA effect joy derived from activity and, 71–72 meaningful work conditions and, 72 ownership of ideas and, 114–16 see also labor egg theory, 86–88 Eisner, Michael, 154 electric chair, 119 electricity, alternating current (AC) vs. direct current (DC), 117–19 emotional cascades, 265–78 gender differences and, 274–76 romantic relationships and, 277–78 ultimatum game and, 265–76 emotional priming: empathy for plight of others and, 246–48 ultimatum game and, 268–70 emotions, 43, 237–79 appeals to, willingness to help others and, 240–42, 248–50, 253–54, 256 decision making and, 261–77; see also decision making in past, humans’ poor memory of, 264 transience of, 257, 261, 270 see also empathy; negative feelings, acting on empathy: animals’ suffering and, 249, 252 apathy toward statistical victims and, 238–41, 242, 246, 247–49, 252–53 Baby Jessica saga and, 237–38 calculating vs. emotional priming and, 246–48 clear moral principles and, 255 closeness and, 243, 245, 254 drop-in-the-bucket effect and, 244–45, 252, 254–55 emotional appeals and, 240���42, 248–50, 253–54, 256 global warming and, 251–52 identifiable victim effect and, 239–42, 248, 256 overcoming barriers to, 252–56 rules to guide our behavior and, 254–55 thought experiment of drowning girl and, 242–43, 245 toward one person vs. many in need, 237–56 vividness and, 24, 243n, 244, 245 endowment effect, 285, 286 Enron, 216 evolution, mismatch between speed of technological development and, 8–9 experiments, 10–11, 288–95 business or public policy and, 292–94, 295 of Gideon, 288–89 medical practice and, 289–92 rational economists’ criticisms of, 49–51 see also specific topics Exxon Valdez oil spill, 249 F fairness, sense of: in chimpanzees, 127 decision making and, 266–67; see also ultimatum game gender differences and, 275–76 Fallows, James, 158 Farmer, Tom, 140–41, 146, 148–49 FedEx, 108–9 feedback, about work, 74–76 Feeks, John, 118–19 Fehr, Ernst, 125–26 financial incentives: meaning of labor and, 72–73, 76 see also bonuses financial markets, safety measures for, 7 financial meltdown of 2008, 7, 21, 216 chronology of events in, 129–30 desire for revenge in wake of, 128–31 lack of experimental approach to, 293 outraged public reaction to bailout in, 128–29, 130 Finkel, Eli, 172–73 First Knight, 50 fixation, pride in creation and ownership and, 89, 122 food: animals’ preference for working for, 59–63 semi-preprepared, 85–88 shortages of, identifiable victim effect and, 239–41 see also cooking Food and Drug Administration (FDA), 292 Ford, Henry, 78–79, 94 Forgea (white terrier), 249 Fox, Michael J., 254 “Fox and the Grapes, The” (Aesop), 198–99 Frank, Barney, 41 Frankl, Viktor, 45 free food, animals’ preference for working for food vs., 60–62 Frenk, Hanan, 161–65, 300 Friends, ultimatum game and, 269, 270–71, 272 frog experiment, 157–58 Frost, Jeana, 219–20, 229, 300 Fryer, Bronwyn, 148 furniture, do-it-yourself, 83–84, 96, 105, 106 future, foreseeing adaptation to changes in, 160, 171–74 G gardening: children growing food and, 121 enjoyment factor and, 105–6 gender differences: assortative mating and, 209, 211 decision making and, 274–76 pain threshold and tolerance and, 168–69 Gideon, 288–89 global warming, 158, 251–52 Gneezy, Ayelet, 135, 144–45, 150, 300–301 Gneezy, Uri, 21, 44, 301 Gore, Al, 158, 252 government policies, experimental approach to, 292–94, 295 H happiness: comparisons to other people and, 189 consumer purchases and, 175, 185–88 inaccurate predictions about, 170–71 return to baseline of, 170 transient vs. constant experiences and, 187–88 Harvard Business Review (HBR), 147–49 health care, see medical care hedonic adaptation, 160–84 to annoying experiences, 177–79, 180 author’s personal history and, 181–84, 189 blindness and, 172–74 breaking up experiences and, 177–81 changes in workers’ pay and, 169–70 comparisons to other people and, 189 consumer purchases and, 175, 185–88 extending pleasurable experiences and, 176–78, 179–81, 185, 186 in future, foreseeing of, 160, 171–74 happiness baseline and, 170 life-altering injuries and, 171–72, 174 moving to California and, 176 new houses and, 168–69 pain and, 160–67 romantic breakups and, 172–73 to transient vs. constant experiences, 187–88 using our understanding of, 176–81, 184–90 hedonic disruptions, 177–81 hedonic treadmill, 175 Heingartner, Alexander, 45–46 Henry, O., 98 herding, 262 see also self-herding Herman, Edward, 45–46 Hippocrates, 82 Hogerty, Megan, 81 homeostatic mechanisms, 81 Hong, James, 201, 203 HOT or NOT study, 201–5, 208 gender differences in, 209, 211 Meet Me feature and, 204–5, 208, 209 humor, sense of, 199, 200, 207, 208, 228 Hurricane Katrina, 250, 251 I ideas: attachment to, see Not-Invented-Here (NIH) bias idiosyncratic fit and, 111–12 identifiable victim effect, 239–42, 248, 256 American Cancer Society and, 241–42 identity, connection between work and, 53–55, 79 idiosyncratic fit, ideas and, 111–12 ignoring workers, 74–76 IKEA, 83–84, 106 IKEA effect, 83–106 author’s creations in rehabilitation center and, 100–101 completion of project and, 101–4, 105 do-it-yourself furniture and, 83–84, 96, 106 effort expended and, 89, 90, 95–96, 105–6 four principles in, 104–5 and lack of awareness of overvaluation, 99 Legos experiment and, 96, 97 Local Motors cars and, 88, 89 Not-Invented-Here (NIH) bias and, 109–10, 121 origami experiments and, 91–94, 97, 98–99, 102–4 parents’ overvaluation of their children and, 97–98 practical implications of, 121–22 relaxation notion and, 105–6 removal of individual customization and, 96 semi-preprepared food and, 85–88 shoe design and, 95, 96 immediate gratification, 5 Inconvenient Truth, An, 252 initiation into social groups, 89 injuries: association of pain with getting better after, 166–67 author’s dating prospects and, 191–96, 210–11 author’s decisions about his medical care and, 284–88 author’s personal history related to, 1–4, 13, 107, 160–62, 166–67, 181–84, 189, 191–96, 210–11, 281–88 battlefield vs. civilian, 167 foreseeing future after, 160 life-altering, adaptation to, 160, 171–72, 174 pain thresholds and tolerance related to severity of, 161–65 Institute for Evolutionary Anthropology, Leipzig, Germany, 126–27 insurance products, 233–34 interruptions: in pleasant vs. painful experiences, 177–81 TV commercials and, 181n see also phone call interruption experiments intuitions: bonuses and, 36–37 received medical wisdom and, 289–92 romantic, 172–73 testing of, 10n, 288–95 inverse-U relationship, defined, 19 iPods and iPhones, battery replacement in, 141–42 irrationality: summary of findings on, 288 upside as well as downside of, 11–12, 294 irreversible decisions, 285, 286 IT infrastructure, division and meaning of labor and, 77, 79–80 J Janoff-Bulman, Ronnie, 170 Jensen, Glen, 60–62, 63 Jensen, Keith, 127 Jewish tradition, 254–55 Johns Hopkins Bloomberg School of Public Health, Baltimore, 152 Joyless Economy, The (Scitovsky), 188 justice, see fairness, sense of K Kahneman, Danny, 32n, 175–76 Kamenica, Emir, 66, 301 Katzenberg, Jeffrey, 154 Kemmler, William, 119 kinship, empathy and, 243 Krishnamurti, Tamar, 172–73 Krzyzewski, Mike, 39 L labor: connection between identity and, 53–55, 79 contrafreeloading and, 60–63 economic model of, 55, 62–63, 105 financial incentives and, see bonuses meaning of, see meaning of labor overvaluation resulting from, see IKEA effect on projects without meaning, 56–57, 63–72 Labyrinth game, 23 Lee, Leonard, 132, 134, 197, 201–2, 301–2 Lee, Sandra, 87–88 leeches, medicinal use of, 290–91 Legos experiments: on IKEA effect, 96, 97 on reducing meaningfulness of work, 66–74, 77, 80 letter-pairs experiment, 74–76, 80 life-altering events, hedonic adaptation and, 170 Life as a House, ultimatum game and, 268, 269, 270, 272, 276 light, adaptation to changes in, 159 Local Motors, Inc., 88, 89 Loewenstein, George, 21, 44, 80–81, 172–73, 197, 201–2, 239–41, 246–48, 302 long-term objectives, short-term enjoyments vs., 4–5 loss aversion, 32–33, 285, 286 lottery winners, hedonic adaptation of, 170, 171 “Love the One You’re With,” 197, 211–12 M malaria, 250, 251 Man’s Search for Meaning (Frankl), 45 marketing, adaptation and, 158 market mechanisms, 215–16 dating and, 213–15, 216–17, 220–21, 230–32, 233–35 Marx, Karl, 79 massages, extending pleasure of, 179–80 matchmakers (yentas), 213 Mazar, Nina, 21, 30, 44, 302 McClure, Jessica (Baby Jessica), 237–38 meals, see cooking meaning of labor, 53–82 in acknowledged, ignored, and shredded conditions, 74–76 animals’ preference for working for food and, 59–63 blogging and, 65 division of labor and, 77–80 draining work of meaning and, 55–57, 63–77 financial incentives and, 72–73, 76 joy derived from activity and, 71–72 labor-identity connection and, 53–55, 79 Legos experiment and, 66–74, 76, 80 lessons for workplace on, 80–82 letter-pairs experiment and, 74–76, 80 “meaning” vs.


pages: 403 words: 111,119

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

Walking away from economics – and back As a teenager in the 1980s, I tried to piece together an understanding of the world by watching the evening news. The TV images that flashed daily into our living room took me far beyond my London schoolgirl life, and those images stuck. The unforgettable silent stare of pot-bellied children born into Ethiopia’s famine. Lines of bodies knocked down like matchsticks by the Bhopal gas disaster. A purple-tinted hole gaping in the ozone layer. A vast oil slick swirling out of the Exxon Valdez into Alaska’s pristine waters. By the end of the decade, I knew simply that I wanted to work for an organisation like Oxfam or Greenpeace – campaigning to end poverty and environmental destruction – and I thought that the best way to equip myself was to study economics and put its tools to work for such causes. So I headed to Oxford University to get the skills that I believed would prepare me for the job.

Page numbers in italics denote illustrations A Aalborg, Denmark, 290 Abbott, Anthony ‘Tony’, 31 ABCD group, 148 Abramovitz, Moses, 262 absolute decoupling, 260–61 Acemoglu, Daron, 86 advertising, 58, 106–7, 112, 281 Agbodjinou, Sénamé, 231 agriculture, 5, 46, 72–3, 148, 155, 178, 181, 183 Alaska, 9 Alaska Permanent Fund, 194 Alperovitz, Gar, 177 alternative enterprise designs, 190–91 altruism, 100, 104 Amazon, 192, 196, 276 Amazon rainforest, 105–6, 253 American Economic Association, 3 American Enterprise Institute, 67 American Tobacco Corporation, 107 Andes, 54 animal spirits, 110 Anthropocene epoch, 48, 253 anthropocentrism, 115 Apertuso, 230 Apple, 85, 192 Archer Daniels Midland (ADM), 148 Arendt, Hannah, 115–16 Argentina, 55, 274 Aristotle, 32, 272 Arrow, Kenneth, 134 Articles of Association and Memoranda, 233 Arusha, Tanzania, 202 Asia Wage Floor Alliance, 177 Asian financial crisis (1997), 90 Asknature.org, 232 Athens, 57 austerity, 163 Australia, 31, 103, 177, 180, 211, 224–6, 255, 260 Austria, 263, 274 availability bias, 112 AXIOM, 230 Axtell, Robert, 150 Ayres, Robert, 263 B B Corp, 241 Babylon, 13 Baker, Josephine, 157 balancing feedback loops, 138–41, 155, 271 Ballmer, Steve, 231 Bangla Pesa, 185–6, 293 Bangladesh, 10, 226 Bank for International Settlements, 256 Bank of America, 149 Bank of England, 145, 147, 256 banking, see under finance Barnes, Peter, 201 Barroso, José Manuel, 41 Bartlett, Albert Allen ‘Al’, 247 basic income, 177, 194, 199–201 basic personal values, 107–9 Basle, Switzerland, 80 Bauwens, Michel, 197 Beckerman, Wilfred, 258 Beckham, David, 171 Beech-Nut Packing Company, 107 behavioural economics, 11, 111–14 behavioural psychology, 103, 128 Beinhocker, Eric, 158 Belgium, 236, 252 Bentham, Jeremy, 98 Benyus, Janine, 116, 218, 223–4, 227, 232, 237, 241 Berger, John, 12, 281 Berlin Wall, 141 Bermuda, 277 Bernanke, Ben, 146 Bernays, Edward, 107, 112, 281–3 Bhopal gas disaster (1984), 9 Bible, 19, 114, 151 Big Bang (1986), 87 billionaires, 171, 200, 289 biodiversity, 10, 46, 48–9, 52, 85, 115, 155, 208, 210, 242, 299 as common pool resource, 201 and land conversion, 49 and inequality, 172 and reforesting, 50 biomass, 73, 118, 210, 212, 221 biomimicry, 116, 218, 227, 229 bioplastic, 224, 293 Birmingham, West Midlands, 10 Black, Fischer, 100–101 Blair, Anthony ‘Tony’, 171 Blockchain, 187, 192 blood donation, 104, 118 Body Shop, The, 232–4 Bogotá, Colombia, 119 Bolivia, 54 Boston, Massachusetts, 3 Bowen, Alex, 261 Bowles, Sam, 104 Box, George, 22 Boyce, James, 209 Brasselberg, Jacob, 187 Brazil, 124, 226, 281, 290 bread riots, 89 Brisbane, Australia, 31 Brown, Gordon, 146 Brynjolfsson, Erik, 193, 194, 258 Buddhism, 54 buen vivir, 54 Bullitt Center, Seattle, 217 Bunge, 148 Burkina Faso, 89 Burmark, Lynell, 13 business, 36, 43, 68, 88–9 automation, 191–5, 237, 258, 278 boom and bust, 246 and circular economy, 212, 215–19, 220, 224, 227–30, 232–4, 292 and complementary currencies, 184–5, 292 and core economy, 80 and creative destruction, 142 and feedback loops, 148 and finance, 183, 184 and green growth, 261, 265, 269 and households, 63, 68 living metrics, 241 and market, 68, 88 micro-businesses, 9 and neoliberalism, 67, 87 ownership, 190–91 and political funding, 91–2, 171–2 and taxation, 23, 276–7 workers’ rights, 88, 91, 269 butterfly economy, 220–42 C C–ROADS (Climate Rapid Overview and Decision Support), 153 C40 network, 280 calculating man, 98 California, United States, 213, 224, 293 Cambodia, 254 Cameron, David, 41 Canada, 196, 255, 260, 281, 282 cancer, 124, 159, 196 Capital Institute, 236 carbon emissions, 49–50, 59, 75 and decoupling, 260, 266 and forests, 50, 52 and inequality, 58 reduction of, 184, 201, 213, 216–18, 223–7, 239–41, 260, 266 stock–flow dynamics, 152–4 taxation, 201, 213 Cargill, 148 Carney, Mark, 256 Caterpillar, 228 Catholic Church, 15, 19 Cato Institute, 67 Celts, 54 central banks, 6, 87, 145, 146, 147, 183, 184, 256 Chang, Ha-Joon, 82, 86, 90 Chaplin, Charlie, 157 Chiapas, Mexico, 121–2 Chicago Board Options Exchange (CBOE), 100–101 Chicago School, 34, 99 Chile, 7, 42 China, 1, 7, 48, 154, 289–90 automation, 193 billionaires, 200, 289 greenhouse gas emissions, 153 inequality, 164 Lake Erhai doughnut analysis, 56 open-source design, 196 poverty reduction, 151, 198 renewable energy, 239 tiered pricing, 213 Chinese Development Bank, 239 chrematistics, 32, 273 Christianity, 15, 19, 114, 151 cigarettes, 107, 124 circular economy, 220–42, 257 Circular Flow diagram, 19–20, 28, 62–7, 64, 70, 78, 87, 91, 92, 93, 262 Citigroup, 149 Citizen Reaction Study, 102 civil rights movement, 77 Cleveland, Ohio, 190 climate change, 1, 3, 5, 29, 41, 45–53, 63, 74, 75–6, 91, 141, 144, 201 circular economy, 239, 241–2 dynamics of, 152–5 and G20, 31 and GDP growth, 255, 256, 260, 280 and heuristics, 114 and human rights, 10 and values, 126 climate positive cities, 239 closed systems, 74 coffee, 221 cognitive bias, 112–14 Colander, David, 137 Colombia, 119 common-pool resources, 82–3, 181, 201–2 commons, 69, 82–4, 287 collaborative, 78, 83, 191, 195, 196, 264, 292 cultural, 83 digital, 82, 83, 192, 197, 281 and distribution, 164, 180, 181–2, 205, 267 Embedded Economy, 71, 73, 77–8, 82–4, 85, 92 knowledge, 197, 201–2, 204, 229, 231, 292 commons and money creation, see complementary currencies natural, 82, 83, 180, 181–2, 201, 265 and regeneration, 229, 242, 267, 292 and state, 85, 93, 197, 237 and systems, 160 tragedy of, 28, 62, 69, 82, 181 triumph of, 83 and values, 106, 108 Commons Trusts, 201 complementary currencies, 158, 182–8, 236, 292 complex systems, 28, 129–62 complexity science, 136–7 Consumer Reaction Study, 102 consumerism, 58, 102, 121, 280–84 cooking, 45, 80, 186 Coote, Anna, 278 Copenhagen, Denmark, 124 Copernicus, Nicolaus, 14–15 copyright, 195, 197, 204 core economy, 79–80 Corporate To Do List, 215–19 Costa Rica, 172 Council of Economic Advisers, US, 6, 37 Cox, Jo, 117 cradle to cradle, 224 creative destruction, 142 Cree, 282 Crompton, Tom, 125–6 cross-border flows, 89–90 crowdsourcing, 204 cuckoos, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271 currencies, 182–8, 236, 274, 292 D da Vinci, Leonardo, 13, 94–5 Dallas, Texas, 120 Daly, Herman, 74, 143, 271 Danish Nudging Network, 124 Darwin, Charles, 14 Debreu, Gerard, 134 debt, 37, 146–7, 172–3, 182–5, 247, 255, 269 decoupling, 193, 210, 258–62, 273 defeat device software, 216 deforestation, 49–50, 74, 208, 210 degenerative linear economy, 211–19, 222–3, 237 degrowth, 244 DeMartino, George, 161 democracy, 77, 171–2, 258 demurrage, 274 Denmark, 180, 275, 290 deregulation, 82, 87, 269 derivatives, 100–101, 149 Devas, Charles Stanton, 97 Dey, Suchitra, 178 Diamond, Jared, 154 diarrhoea, 5 differential calculus, 131, 132 digital revolution, 191–2, 264 diversify–select–amplify, 158 double spiral, 54 Doughnut model, 10–11, 11, 23–5, 44, 51 and aspiration, 58–9, 280–84 big picture, 28, 42, 61–93 distribution, 29, 52, 57, 58, 76, 93, 158, 163–205 ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298 goal, 25–8, 31–60 and governance, 57, 59 growth agnosticism, 29–30, 243–85 human nature, 28–9, 94–128 and population, 57–8 regeneration, 29, 158, 206–42 social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6 systems, 28, 129–62 and technology, 57, 59 Douglas, Margaret, 78–9 Dreyfus, Louis, 148 ‘Dumb and Dumber in Macroeconomics’ (Solow), 135 Durban, South Africa, 214 E Earning by Learning, 120 Earth-system science, 44–53, 115, 216, 288, 298 Easter Island, 154 Easterlin, Richard, 265–6 eBay, 105, 192 eco-literacy, 115 ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298 Ecological Performance Standards, 241 Econ 101 course, 8, 77 Economics (Lewis), 114 Economics (Samuelson), 19–20, 63–7, 70, 74, 78, 86, 91, 92, 93, 262 Economy for the Common Good, 241 ecosystem services, 7, 116, 269 Ecuador, 54 education, 9, 43, 45, 50–52, 85, 169–70, 176, 200, 249, 279 economic, 8, 11, 18, 22, 24, 36, 287–93 environmental, 115, 239–40 girls’, 57, 124, 178, 198 online, 83, 197, 264, 290 pricing, 118–19 efficient market hypothesis, 28, 62, 68, 87 Egypt, 48, 89 Eisenstein, Charles, 116 electricity, 9, 45, 236, 240 and Bangla Pesa, 186 cars, 231 Ethereum, 187–8 and MONIAC, 75, 262 pricing, 118, 213 see also renewable energy Elizabeth II, Queen of the United Kingdom, 145 Ellen MacArthur Foundation, 220 Embedded Economy, 71–93, 263 business, 88–9 commons, 82–4 Earth, 72–6 economy, 77–8 finance, 86–8 household, 78–81 market, 81–2 power, 91–92 society, 76–7 state, 84–6 trade, 89–90 employment, 36, 37, 51, 142, 176 automation, 191–5, 237, 258, 278 labour ownership, 188–91 workers’ rights, 88, 90, 269 Empty World, 74 Engels, Friedrich, 88 environment and circular economy, 220–42, 257 conservation, 121–2 and degenerative linear economy, 211–19, 222–3 degradation, 5, 9, 10, 29, 44–53, 74, 154, 172, 196, 206–42 education on, 115, 239–40 externalities, 152 fair share, 216–17 and finance, 234–7 generosity, 218–19, 223–7 green growth, 41, 210, 243–85 nudging, 123–5 taxation and quotas, 213–14, 215 zero impact, 217–18, 238, 241 Environmental Dashboard, 240–41 environmental economics, 7, 11, 114–16 Environmental Kuznets Curve, 207–11, 241 environmental space, 54 Epstein, Joshua, 150 equilibrium theory, 134–62 Ethereum, 187–8 ethics, 160–62 Ethiopia, 9, 226, 254 Etsy, 105 Euclid, 13, 15 European Central Bank, 145, 275 European Commission, 41 European Union (EU), 92, 153, 210, 222, 255, 258 Evergreen Cooperatives, 190 Evergreen Direct Investing (EDI), 273 exogenous shocks, 141 exponential growth, 39, 246–85 externalities, 143, 152, 213 Exxon Valdez oil spill (1989), 9 F Facebook, 192 fair share, 216–17 Fama, Eugene, 68, 87 fascism, 234, 277 Federal Reserve, US, 87, 145, 146, 271, 282 feedback loops, 138–41, 143, 148, 155, 250, 271 feminist economics, 11, 78–81, 160 Ferguson, Thomas, 91–2 finance animal spirits, 110 bank runs, 139 Black–Scholes model, 100–101 boom and bust, 28–9, 110, 144–7 and Circular Flow, 63–4, 87 and complex systems, 134, 138, 139, 140, 141, 145–7 cross-border flows, 89 deregulation, 87 derivatives, 100–101, 149 and distribution, 169, 170, 173, 182–4, 198–9, 201 and efficient market hypothesis, 63, 68 and Embedded Economy, 71, 86–8 and financial-instability hypothesis, 87, 146 and GDP growth, 38 and media, 7–8 mobile banking, 199–200 and money creation, 87, 182–5 and regeneration, 227, 229, 234–7 in service to life, 159, 234–7 stakeholder finance, 190 and sustainability, 216, 235–6, 239 financial crisis (2008), 1–4, 5, 40, 63, 86, 141, 144, 278, 290 and efficient market hypothesis, 87 and equilibrium theory, 134, 145 and financial-instability hypothesis, 87 and inequality, 90, 170, 172, 175 and money creation, 182 and worker’s rights, 278 financial flows, 89 Financial Times, 183, 266, 289 financial-instability hypothesis, 87, 146 First Green Bank, 236 First World War (1914–18), 166, 170 Fisher, Irving, 183 fluid values, 102, 106–9 food, 3, 43, 45, 50, 54, 58, 59, 89, 198 food banks, 165 food price crisis (2007–8), 89, 90, 180 Ford, 277–8 foreign direct investment, 89 forest conservation, 121–2 fossil fuels, 59, 73, 75, 92, 212, 260, 263 Foundations of Economic Analysis (Samuelson), 17–18 Foxconn, 193 framing, 22–3 France, 43, 165, 196, 238, 254, 256, 281, 290 Frank, Robert, 100 free market, 33, 37, 67, 68, 70, 81–2, 86, 90 free open-source hardware (FOSH), 196–7 free open-source software (FOSS), 196 free trade, 70, 90 Freeman, Ralph, 18–19 freshwater cycle, 48–9 Freud, Sigmund, 107, 281 Friedman, Benjamin, 258 Friedman, Milton, 34, 62, 66–9, 84–5, 88, 99, 183, 232 Friends of the Earth, 54 Full World, 75 Fuller, Buckminster, 4 Fullerton, John, 234–6, 273 G G20, 31, 56, 276, 279–80 G77, 55 Gal, Orit, 141 Gandhi, Mohandas, 42, 293 Gangnam Style, 145 Gardens of Democracy, The (Liu & Hanauer), 158 gender equality, 45, 51–2, 57, 78–9, 85, 88, 118–19, 124, 171, 198 generosity, 218–19, 223–9 geometry, 13, 15 George, Henry, 149, 179 Georgescu-Roegen, Nicholas, 252 geothermal energy, 221 Gerhardt, Sue, 283 Germany, 2, 41, 100, 118, 165, 189, 211, 213, 254, 256, 260, 274 Gessel, Silvio, 274 Ghent, Belgium, 236 Gift Relationship, The (Titmuss), 118–19 Gigerenzer, Gerd, 112–14 Gintis, Herb, 104 GiveDirectly, 200 Glass–Steagall Act (1933), 87 Glennon, Roger, 214 Global Alliance for Tax Justice, 277 global material footprints, 210–11 Global Village Construction Set, 196 globalisation, 89 Goerner, Sally, 175–6 Goffmann, Erving, 22 Going for Growth, 255 golden rule, 91 Goldman Sachs, 149, 170 Gómez-Baggethun, Erik, 122 Goodall, Chris, 211 Goodwin, Neva, 79 Goody, Jade, 124 Google, 192 Gore, Albert ‘Al’, 172 Gorgons, 244, 256, 257, 266 graffiti, 15, 25, 287 Great Acceleration, 46, 253–4 Great Depression (1929–39), 37, 70, 170, 173, 183, 275, 277, 278 Great Moderation, 146 Greece, Ancient, 4, 13, 32, 48, 54, 56–7, 160, 244 green growth, 41, 210, 243–85 Greenham, Tony, 185 greenhouse gas emissions, 31, 46, 50, 75–6, 141, 152–4 and decoupling, 260, 266 and Environmental Kuznets Curve, 208, 210 and forests, 50, 52 and G20, 31 and inequality, 58 reduction of, 184, 201–2, 213, 216–18, 223–7, 239–41, 256, 259–60, 266, 298 stock–flow dynamics, 152–4 and taxation, 201, 213 Greenland, 141, 154 Greenpeace, 9 Greenspan, Alan, 87 Greenwich, London, 290 Grenoble, France, 281 Griffiths, Brian, 170 gross domestic product (GDP), 25, 31–2, 35–43, 57, 60, 84, 164 as cuckoo, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271 and Environmental Kuznets Curve, 207–11 and exponential growth, 39, 53, 246–85 and growth agnosticism, 29–30, 240, 243–85 and inequality, 173 and Kuznets Curve, 167, 173, 188–9 gross national product (GNP), 36–40 Gross World Product, 248 Grossman, Gene, 207–8, 210 ‘grow now, clean up later’, 207 Guatemala, 196 H Haifa, Israel, 120 Haldane, Andrew, 146 Han Dynasty, 154 Hanauer, Nick, 158 Hansen, Pelle, 124 Happy Planet Index, 280 Hardin, Garrett, 69, 83, 181 Harvard University, 2, 271, 290 von Hayek, Friedrich, 7–8, 62, 66, 67, 143, 156, 158 healthcare, 43, 50, 57, 85, 123, 125, 170, 176, 200, 269, 279 Heilbroner, Robert, 53 Henry VIII, King of England and Ireland, 180 Hepburn, Cameron, 261 Herbert Simon, 111 heuristics, 113–14, 118, 123 high-income countries growth, 30, 244–5, 254–72, 282 inequality, 165, 168, 169, 171 labour, 177, 188–9, 278 overseas development assistance (ODA), 198–9 resource intensive lifestyles, 46, 210–11 trade, 90 Hippocrates, 160 History of Economic Analysis (Schumpeter), 21 HIV/AIDS, 123 Holocene epoch, 46–8, 75, 115, 253 Homo economicus, 94–103, 109, 127–8 Homo sapiens, 38, 104, 130 Hong Kong, 180 household, 78 housing, 45, 59, 176, 182–3, 269 Howe, Geoffrey, 67 Hudson, Michael, 183 Human Development Index, 9, 279 human nature, 28 human rights, 10, 25, 45, 49, 50, 95, 214, 233 humanistic economics, 42 hydropower, 118, 260, 263 I Illinois, United States, 179–80 Imago Mundi, 13 immigration, 82, 199, 236, 266 In Defense of Economic Growth (Beckerman), 258 Inclusive Wealth Index, 280 income, 51, 79–80, 82, 88, 176–8, 188–91, 194, 199–201 India, 2, 9, 10, 42, 124, 164, 178, 196, 206–7, 242, 290 Indonesia, 90, 105–6, 164, 168, 200 Indus Valley civilisation, 48 inequality, 1, 5, 25, 41, 63, 81, 88, 91, 148–52, 209 and consumerism, 111 and democracy, 171 and digital revolution, 191–5 and distribution, 163–205 and environmental degradation, 172 and GDP growth, 173 and greenhouse gas emissions, 58 and intellectual property, 195–8 and Kuznets Curve, 29, 166–70, 173–4 and labour ownership, 188–91 and land ownership, 178–82 and money creation, 182–8 and social welfare, 171 Success to the Successful, 148, 149, 151, 166 inflation, 36, 248, 256, 275 insect pollination services, 7 Institute of Economic Affairs, 67 institutional economics, 11 intellectual property rights, 195–8, 204 interest, 36, 177, 182, 184, 275–6 Intergovernmental Panel on Climate Change, 25 International Monetary Fund (IMF), 170, 172, 173, 183, 255, 258, 271 Internet, 83–4, 89, 105, 192, 202, 264 Ireland, 277 Iroquois Onondaga Nation, 116 Israel, 100, 103, 120 Italy, 165, 196, 254 J Jackson, Tim, 58 Jakubowski, Marcin, 196 Jalisco, Mexico, 217 Japan, 168, 180, 211, 222, 254, 256, 263, 275 Jevons, William Stanley, 16, 97–8, 131, 132, 137, 142 John Lewis Partnership, 190 Johnson, Lyndon Baines, 37 Johnson, Mark, 38 Johnson, Todd, 191 JPMorgan Chase, 149, 234 K Kahneman, Daniel, 111 Kamkwamba, William, 202, 204 Kasser, Tim, 125–6 Keen, Steve, 146, 147 Kelly, Marjorie, 190–91, 233 Kennedy, John Fitzgerald, 37, 250 Kennedy, Paul, 279 Kenya, 118, 123, 180, 185–6, 199–200, 226, 292 Keynes, John Maynard, 7–8, 22, 66, 69, 134, 184, 251, 277–8, 284, 288 Kick It Over movement, 3, 289 Kingston, London, 290 Knight, Frank, 66, 99 knowledge commons, 202–4, 229, 292 Kokstad, South Africa, 56 Kondratieff waves, 246 Korzybski, Alfred, 22 Krueger, Alan, 207–8, 210 Kuhn, Thomas, 22 Kumhof, Michael, 172 Kuwait, 255 Kuznets, Simon, 29, 36, 39–40, 166–70, 173, 174, 175, 204, 207 KwaZulu Natal, South Africa, 56 L labour ownership, 188–91 Lake Erhai, Yunnan, 56 Lakoff, George, 23, 38, 276 Lamelara, Indonesia, 105–6 land conversion, 49, 52, 299 land ownership, 178–82 land-value tax, 73, 149, 180 Landesa, 178 Landlord’s Game, The, 149 law of demand, 16 laws of motion, 13, 16–17, 34, 129, 131 Lehman Brothers, 141 Leopold, Aldo, 115 Lesotho, 118, 199 leverage points, 159 Lewis, Fay, 178 Lewis, Justin, 102 Lewis, William Arthur, 114, 167 Lietaer, Bernard, 175, 236 Limits to Growth, 40, 154, 258 Linux, 231 Liu, Eric, 158 living metrics, 240–42 living purpose, 233–4 Lomé, Togo, 231 London School of Economics (LSE), 2, 34, 65, 290 London Underground, 12 loss aversion, 112 low-income countries, 90, 164–5, 168, 173, 180, 199, 201, 209, 226, 254, 259 Lucas, Robert, 171 Lula da Silva, Luiz Inácio, 124 Luxembourg, 277 Lyle, John Tillman, 214 Lyons, Oren, 116 M M–PESA, 199–200 MacDonald, Tim, 273 Machiguenga, 105–6 MacKenzie, Donald, 101 macroeconomics, 36, 62–6, 76, 80, 134–5, 145, 147, 150, 244, 280 Magie, Elizabeth, 149, 153 Malala effect, 124 malaria, 5 Malawi, 118, 202, 204 Malaysia, 168 Mali, Taylor, 243 Malthus, Thomas, 252 Mamsera Rural Cooperative, 190 Manhattan, New York, 9, 41 Mani, Muthukumara, 206 Manitoba, 282 Mankiw, Gregory, 2, 34 Mannheim, Karl, 22 Maoris, 54 market, 81–2 and business, 88 circular flow, 64 and commons, 83, 93, 181, 200–201 efficiency of, 28, 62, 68, 87, 148, 181 and equilibrium theory, 131–5, 137, 143–7, 155, 156 free market, 33, 37, 67–70, 90, 208 and households, 63, 69, 78, 79 and maxi-max rule, 161 and pricing, 117–23, 131, 160 and rational economic man, 96, 100–101, 103, 104 and reciprocity, 105, 106 reflexivity of, 144–7 and society, 69–70 and state, 84–6, 200, 281 Marshall, Alfred, 17, 98, 133, 165, 253, 282 Marx, Karl, 88, 142, 165, 272 Massachusetts Institute of Technology (MIT), 17–20, 152–5 massive open online courses (MOOCs), 290 Matthew Effect, 151 Max-Neef, Manfred, 42 maxi-max rule, 161 maximum wage, 177 Maya civilisation, 48, 154 Mazzucato, Mariana, 85, 195, 238 McAfee, Andrew, 194, 258 McDonough, William, 217 Meadows, Donella, 40, 141, 159, 271, 292 Medusa, 244, 257, 266 Merkel, Angela, 41 Messerli, Elspeth, 187 Metaphors We Live By (Lakoff & Johnson), 38 Mexico, 121–2, 217 Michaels, Flora S., 6 micro-businesses, 9, 173, 178 microeconomics, 132–4 microgrids, 187–8 Micronesia, 153 Microsoft, 231 middle class, 6, 46, 58 middle-income countries, 90, 164, 168, 173, 180, 226, 254 migration, 82, 89–90, 166, 195, 199, 236, 266, 286 Milanovic, Branko, 171 Mill, John Stuart, 33–4, 73, 97, 250, 251, 283, 284, 288 Millo, Yuval, 101 minimum wage, 82, 88, 176 Minsky, Hyman, 87, 146 Mises, Ludwig von, 66 mission zero, 217 mobile banking, 199–200 mobile phones, 222 Model T revolution, 277–8 Moldova, 199 Mombasa, Kenya, 185–6 Mona Lisa (da Vinci), 94 money creation, 87, 164, 177, 182–8, 205 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 Monoculture (Michaels), 6 Monopoly, 149 Mont Pelerin Society, 67, 93 Moral Consequences of Economic Growth, The (Friedman), 258 moral vacancy, 41 Morgan, Mary, 99 Morogoro, Tanzania, 121 Moyo, Dambisa, 258 Muirhead, Sam, 230, 231 MultiCapital Scorecard, 241 Murphy, David, 264 Murphy, Richard, 185 musical tastes, 110 Myriad Genetics, 196 N national basic income, 177 Native Americans, 115, 116, 282 natural capital, 7, 116, 269 Natural Economic Order, The (Gessel), 274 Nedbank, 216 negative externalities, 213 negative interest rates, 275–6 neoclassical economics, 134, 135 neoliberalism, 7, 62–3, 67–70, 81, 83, 84, 88, 93, 143, 170, 176 Nepal, 181, 199 Nestlé, 217 Netherlands, 211, 235, 224, 226, 238, 277 networks, 110–11, 117, 118, 123, 124–6, 174–6 neuroscience, 12–13 New Deal, 37 New Economics Foundation, 278, 283 New Year’s Day, 124 New York, United States, 9, 41, 55 Newlight Technologies, 224, 226, 293 Newton, Isaac, 13, 15–17, 32–3, 95, 97, 129, 131, 135–7, 142, 145, 162 Nicaragua, 196 Nigeria, 164 nitrogen, 49, 52, 212–13, 216, 218, 221, 226, 298 ‘no pain, no gain’, 163, 167, 173, 204, 209 Nobel Prize, 6–7, 43, 83, 101, 167 Norway, 281 nudging, 112, 113, 114, 123–6 O Obama, Barack, 41, 92 Oberlin, Ohio, 239, 240–41 Occupy movement, 40, 91 ocean acidification, 45, 46, 52, 155, 242, 298 Ohio, United States, 190, 239 Okun, Arthur, 37 onwards and upwards, 53 Open Building Institute, 196 Open Source Circular Economy (OSCE), 229–32 open systems, 74 open-source design, 158, 196–8, 265 open-source licensing, 204 Organisation for Economic Co-operation and Development (OECD), 38, 210, 255–6, 258 Origin of Species, The (Darwin), 14 Ormerod, Paul, 110, 111 Orr, David, 239 Ostrom, Elinor, 83, 84, 158, 160, 181–2 Ostry, Jonathan, 173 OSVehicle, 231 overseas development assistance (ODA), 198–200 ownership of wealth, 177–82 Oxfam, 9, 44 Oxford University, 1, 36 ozone layer, 9, 50, 115 P Pachamama, 54, 55 Pakistan, 124 Pareto, Vilfredo, 165–6, 175 Paris, France, 290 Park 20|20, Netherlands, 224, 226 Parker Brothers, 149 Patagonia, 56 patents, 195–6, 197, 204 patient capital, 235 Paypal, 192 Pearce, Joshua, 197, 203–4 peer-to-peer networks, 187, 192, 198, 203, 292 People’s QE, 184–5 Perseus, 244 Persia, 13 Peru, 2, 105–6 Phillips, Adam, 283 Phillips, William ‘Bill’, 64–6, 75, 142, 262 phosphorus, 49, 52, 212–13, 218, 298 Physiocrats, 73 Pickett, Kate, 171 pictures, 12–25 Piketty, Thomas, 169 Playfair, William, 16 Poincaré, Henri, 109, 127–8 Polanyi, Karl, 82, 272 political economy, 33–4, 42 political funding, 91–2, 171–2 political voice, 43, 45, 51–2, 77, 117 pollution, 29, 45, 52, 85, 143, 155, 206–17, 226, 238, 242, 254, 298 population, 5, 46, 57, 155, 199, 250, 252, 254 Portugal, 211 post-growth society, 250 poverty, 5, 9, 37, 41, 50, 88, 118, 148, 151 emotional, 283 and inequality, 164–5, 168–9, 178 and overseas development assistance (ODA), 198–200 and taxation, 277 power, 91–92 pre-analytic vision, 21–2 prescription medicines, 123 price-takers, 132 prices, 81, 118–23, 131, 160 Principles of Economics (Mankiw), 34 Principles of Economics (Marshall), 17, 98 Principles of Political Economy (Mill), 288 ProComposto, 226 Propaganda (Bernays), 107 public relations, 107, 281 public spending v. investment, 276 public–private patents, 195 Putnam, Robert, 76–7 Q quantitative easing (QE), 184–5 Quebec, 281 Quesnay, François, 16, 73 R Rabot, Ghent, 236 Rancière, Romain, 172 rating and review systems, 105 rational economic man, 94–103, 109, 111, 112, 126, 282 Reagan, Ronald, 67 reciprocity, 103–6, 117, 118, 123 reflexivity of markets, 144 reinforcing feedback loops, 138–41, 148, 250, 271 relative decoupling, 259 renewable energy biomass energy, 118, 221 and circular economy, 221, 224, 226, 235, 238–9, 274 and commons, 83, 85, 185, 187–8, 192, 203, 264 geothermal energy, 221 and green growth, 257, 260, 263, 264, 267 hydropower, 118, 260, 263 pricing, 118 solar energy, see solar energy wave energy, 221 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 rentier sector, 180, 183, 184 reregulation, 82, 87, 269 resource flows, 175 resource-intensive lifestyles, 46 Rethinking Economics, 289 Reynebeau, Guy, 237 Ricardo, David, 67, 68, 73, 89, 250 Richardson, Katherine, 53 Rifkin, Jeremy, 83, 264–5 Rise and Fall of the Great Powers, The (Kennedy), 279 risk, 112, 113–14 Robbins, Lionel, 34 Robinson, James, 86 Robinson, Joan, 142 robots, 191–5, 237, 258, 278 Rockefeller Foundation, 135 Rockford, Illinois, 179–80 Rockström, Johan, 48, 55 Roddick, Anita, 232–4 Rogoff, Kenneth, 271, 280 Roman Catholic Church, 15, 19 Rombo, Tanzania, 190 Rome, Ancient, 13, 48, 154 Romney, Mitt, 92 Roosevelt, Franklin Delano, 37 rooted membership, 190 Rostow, Walt, 248–50, 254, 257, 267–70, 284 Ruddick, Will, 185 rule of thumb, 113–14 Ruskin, John, 42, 223 Russia, 200 rust belt, 90, 239 S S curve, 251–6 Sainsbury’s, 56 Samuelson, Paul, 17–21, 24–5, 38, 62–7, 70, 74, 84, 91, 92, 93, 262, 290–91 Sandel, Michael, 41, 120–21 Sanergy, 226 sanitation, 5, 51, 59 Santa Fe, California, 213 Santinagar, West Bengal, 178 São Paolo, Brazil, 281 Sarkozy, Nicolas, 43 Saumweder, Philipp, 226 Scharmer, Otto, 115 Scholes, Myron, 100–101 Schumacher, Ernst Friedrich, 42, 142 Schumpeter, Joseph, 21 Schwartz, Shalom, 107–9 Schwarzenegger, Arnold, 163, 167, 204 ‘Science and Complexity’ (Weaver), 136 Scotland, 57 Seaman, David, 187 Seattle, Washington, 217 second machine age, 258 Second World War (1939–45), 18, 37, 70, 170 secular stagnation, 256 self-interest, 28, 68, 96–7, 99–100, 102–3 Selfish Society, The (Gerhardt), 283 Sen, Amartya, 43 Shakespeare, William, 61–3, 67, 93 shale gas, 264, 269 Shang Dynasty, 48 shareholders, 82, 88, 189, 191, 227, 234, 273, 292 sharing economy, 264 Sheraton Hotel, Boston, 3 Siegen, Germany, 290 Silicon Valley, 231 Simon, Julian, 70 Sinclair, Upton, 255 Sismondi, Jean, 42 slavery, 33, 77, 161 Slovenia, 177 Small Is Beautiful (Schumacher), 42 smart phones, 85 Smith, Adam, 33, 57, 67, 68, 73, 78–9, 81, 96–7, 103–4, 128, 133, 160, 181, 250 social capital, 76–7, 122, 125, 172 social contract, 120, 125 social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6 social media, 83, 281 Social Progress Index, 280 social pyramid, 166 society, 76–7 solar energy, 59, 75, 111, 118, 187–8, 190 circular economy, 221, 222, 223, 224, 226–7, 239 commons, 203 zero-energy buildings, 217 zero-marginal-cost revolution, 84 Solow, Robert, 135, 150, 262–3 Soros, George, 144 South Africa, 56, 177, 214, 216 South Korea, 90, 168 South Sea Bubble (1720), 145 Soviet Union (1922–91), 37, 67, 161, 279 Spain, 211, 238, 256 Spirit Level, The (Wilkinson & Pickett), 171 Sraffa, Piero, 148 St Gallen, Switzerland, 186 Stages of Economic Growth, The (Rostow), 248–50, 254 stakeholder finance, 190 Standish, Russell, 147 state, 28, 33, 69–70, 78, 82, 160, 176, 180, 182–4, 188 and commons, 85, 93, 197, 237 and market, 84–6, 200, 281 partner state, 197, 237–9 and robots, 195 stationary state, 250 Steffen, Will, 46, 48 Sterman, John, 66, 143, 152–4 Steuart, James, 33 Stiglitz, Joseph, 43, 111, 196 stocks and flows, 138–41, 143, 144, 152 sub-prime mortgages, 141 Success to the Successful, 148, 149, 151, 166 Sugarscape, 150–51 Summers, Larry, 256 Sumner, Andy, 165 Sundrop Farms, 224–6 Sunstein, Cass, 112 supply and demand, 28, 132–6, 143, 253 supply chains, 10 Sweden, 6, 255, 275, 281 swishing, 264 Switzerland, 42, 66, 80, 131, 186–7, 275 T Tableau économique (Quesnay), 16 tabula rasa, 20, 25, 63, 291 takarangi, 54 Tanzania, 121, 190, 202 tar sands, 264, 269 taxation, 78, 111, 165, 170, 176, 177, 237–8, 276–9 annual wealth tax, 200 environment, 213–14, 215 global carbon tax, 201 global financial transactions tax, 201, 235 land-value tax, 73, 149, 180 non-renewable resources, 193, 237–8, 278–9 People’s QE, 185 tax relief v. tax justice, 23, 276–7 TED (Technology, Entertainment, Design), 202, 258 Tempest, The (Shakespeare), 61, 63, 93 Texas, United States, 120 Thailand, 90, 200 Thaler, Richard, 112 Thatcher, Margaret, 67, 69, 76 Theory of Moral Sentiments (Smith), 96 Thompson, Edward Palmer, 180 3D printing, 83–4, 192, 198, 231, 264 thriving-in-balance, 54–7, 62 tiered pricing, 213–14 Tigray, Ethiopia, 226 time banking, 186 Titmuss, Richard, 118–19 Toffler, Alvin, 12, 80 Togo, 231, 292 Torekes, 236–7 Torras, Mariano, 209 Torvalds, Linus, 231 trade, 62, 68–9, 70, 89–90 trade unions, 82, 176, 189 trademarks, 195, 204 Transatlantic Trade and Investment Partnership (TTIP), 92 transport, 59 trickle-down economics, 111, 170 Triodos, 235 Turkey, 200 Tversky, Amos, 111 Twain, Mark, 178–9 U Uganda, 118, 125 Ulanowicz, Robert, 175 Ultimatum Game, 105, 117 unemployment, 36, 37, 276, 277–9 United Kingdom Big Bang (1986), 87 blood donation, 118 carbon dioxide emissions, 260 free trade, 90 global material footprints, 211 money creation, 182 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 New Economics Foundation, 278, 283 poverty, 165, 166 prescription medicines, 123 wages, 188 United Nations, 55, 198, 204, 255, 258, 279 G77 bloc, 55 Human Development Index, 9, 279 Sustainable Development Goals, 24, 45 United States American Economic Association meeting (2015), 3 blood donation, 118 carbon dioxide emissions, 260 Congress, 36 Council of Economic Advisers, 6, 37 Earning by Learning, 120 Econ 101 course, 8, 77 Exxon Valdez oil spill (1989), 9 Federal Reserve, 87, 145, 146, 271, 282 free trade, 90 Glass–Steagall Act (1933), 87 greenhouse gas emissions, 153 global material footprint, 211 gross national product (GNP), 36–40 inequality, 170, 171 land-value tax, 73, 149, 180 political funding, 91–2, 171 poverty, 165, 166 productivity and employment, 193 rust belt, 90, 239 Transatlantic Trade and Investment Partnership (TTIP), 92 wages, 188 universal basic income, 200 University of Berkeley, 116 University of Denver, 160 urbanisation, 58–9 utility, 35, 98, 133 V values, 6, 23, 34, 35, 42, 117, 118, 121, 123–6 altruism, 100, 104 anthropocentric, 115 extrinsic, 115 fluid, 28, 102, 106–9 and networks, 110–11, 117, 118, 123, 124–6 and nudging, 112, 113, 114, 123–6 and pricing, 81, 120–23 Veblen, Thorstein, 82, 109, 111, 142 Venice, 195 verbal framing, 23 Verhulst, Pierre, 252 Victor, Peter, 270 Viner, Jacob, 34 virtuous cycles, 138, 148 visual framing, 23 Vitruvian Man, 13–14 Volkswagen, 215–16 W Wacharia, John, 186 Wall Street, 149, 234, 273 Wallich, Henry, 282 Walras, Léon, 131, 132, 133–4, 137 Ward, Barbara, 53 Warr, Benjamin, 263 water, 5, 9, 45, 46, 51, 54, 59, 79, 213–14 wave energy, 221 Ways of Seeing (Berger), 12, 281 Wealth of Nations, The (Smith), 74, 78, 96, 104 wealth ownership, 177–82 Weaver, Warren, 135–6 weightless economy, 261–2 WEIRD (Western, educated, industrialised, rich, democratic), 103–5, 110, 112, 115, 117, 282 West Bengal, India, 124, 178 West, Darrell, 171–2 wetlands, 7 whale hunting, 106 Wiedmann, Tommy, 210 Wikipedia, 82, 223 Wilkinson, Richard, 171 win–win trade, 62, 68, 89 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 Wizard of Oz, The, 241 Woelab, 231, 293 Wolf, Martin, 183, 266 women’s rights, 33, 57, 107, 160, 201 and core economy, 69, 79–81 education, 57, 124, 178, 198 and land ownership, 178 see also gender equality workers’ rights, 88, 91, 269 World 3 model, 154–5 World Bank, 6, 41, 119, 164, 168, 171, 206, 255, 258 World No Tobacco Day, 124 World Trade Organization, 6, 89 worldview, 22, 54, 115 X xenophobia, 266, 277, 286 Xenophon, 4, 32, 56–7, 160 Y Yandle, Bruce, 208 Yang, Yuan, 1–3, 289–90 yin yang, 54 Yousafzai, Malala, 124 YouTube, 192 Yunnan, China, 56 Z Zambia, 10 Zanzibar, 9 Zara, 276 Zeitvorsoge, 186–7 zero environmental impact, 217–18, 238, 241 zero-hour contracts, 88 zero-humans-required production, 192 zero-interest loans, 183 zero-marginal-cost revolution, 84, 191, 264 zero-waste manufacturing, 227 Zinn, Howard, 77 PICTURE ACKNOWLEDGEMENTS Illustrations are reproduced by kind permission of: archive.org

., 6 micro-businesses, 9, 173, 178 microeconomics, 132–4 microgrids, 187–8 Micronesia, 153 Microsoft, 231 middle class, 6, 46, 58 middle-income countries, 90, 164, 168, 173, 180, 226, 254 migration, 82, 89–90, 166, 195, 199, 236, 266, 286 Milanovic, Branko, 171 Mill, John Stuart, 33–4, 73, 97, 250, 251, 283, 284, 288 Millo, Yuval, 101 minimum wage, 82, 88, 176 Minsky, Hyman, 87, 146 Mises, Ludwig von, 66 mission zero, 217 mobile banking, 199–200 mobile phones, 222 Model T revolution, 277–8 Moldova, 199 Mombasa, Kenya, 185–6 Mona Lisa (da Vinci), 94 money creation, 87, 164, 177, 182–8, 205 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 Monoculture (Michaels), 6 Monopoly, 149 Mont Pelerin Society, 67, 93 Moral Consequences of Economic Growth, The (Friedman), 258 moral vacancy, 41 Morgan, Mary, 99 Morogoro, Tanzania, 121 Moyo, Dambisa, 258 Muirhead, Sam, 230, 231 MultiCapital Scorecard, 241 Murphy, David, 264 Murphy, Richard, 185 musical tastes, 110 Myriad Genetics, 196 N national basic income, 177 Native Americans, 115, 116, 282 natural capital, 7, 116, 269 Natural Economic Order, The (Gessel), 274 Nedbank, 216 negative externalities, 213 negative interest rates, 275–6 neoclassical economics, 134, 135 neoliberalism, 7, 62–3, 67–70, 81, 83, 84, 88, 93, 143, 170, 176 Nepal, 181, 199 Nestlé, 217 Netherlands, 211, 235, 224, 226, 238, 277 networks, 110–11, 117, 118, 123, 124–6, 174–6 neuroscience, 12–13 New Deal, 37 New Economics Foundation, 278, 283 New Year’s Day, 124 New York, United States, 9, 41, 55 Newlight Technologies, 224, 226, 293 Newton, Isaac, 13, 15–17, 32–3, 95, 97, 129, 131, 135–7, 142, 145, 162 Nicaragua, 196 Nigeria, 164 nitrogen, 49, 52, 212–13, 216, 218, 221, 226, 298 ‘no pain, no gain’, 163, 167, 173, 204, 209 Nobel Prize, 6–7, 43, 83, 101, 167 Norway, 281 nudging, 112, 113, 114, 123–6 O Obama, Barack, 41, 92 Oberlin, Ohio, 239, 240–41 Occupy movement, 40, 91 ocean acidification, 45, 46, 52, 155, 242, 298 Ohio, United States, 190, 239 Okun, Arthur, 37 onwards and upwards, 53 Open Building Institute, 196 Open Source Circular Economy (OSCE), 229–32 open systems, 74 open-source design, 158, 196–8, 265 open-source licensing, 204 Organisation for Economic Co-operation and Development (OECD), 38, 210, 255–6, 258 Origin of Species, The (Darwin), 14 Ormerod, Paul, 110, 111 Orr, David, 239 Ostrom, Elinor, 83, 84, 158, 160, 181–2 Ostry, Jonathan, 173 OSVehicle, 231 overseas development assistance (ODA), 198–200 ownership of wealth, 177–82 Oxfam, 9, 44 Oxford University, 1, 36 ozone layer, 9, 50, 115 P Pachamama, 54, 55 Pakistan, 124 Pareto, Vilfredo, 165–6, 175 Paris, France, 290 Park 20|20, Netherlands, 224, 226 Parker Brothers, 149 Patagonia, 56 patents, 195–6, 197, 204 patient capital, 235 Paypal, 192 Pearce, Joshua, 197, 203–4 peer-to-peer networks, 187, 192, 198, 203, 292 People’s QE, 184–5 Perseus, 244 Persia, 13 Peru, 2, 105–6 Phillips, Adam, 283 Phillips, William ‘Bill’, 64–6, 75, 142, 262 phosphorus, 49, 52, 212–13, 218, 298 Physiocrats, 73 Pickett, Kate, 171 pictures, 12–25 Piketty, Thomas, 169 Playfair, William, 16 Poincaré, Henri, 109, 127–8 Polanyi, Karl, 82, 272 political economy, 33–4, 42 political funding, 91–2, 171–2 political voice, 43, 45, 51–2, 77, 117 pollution, 29, 45, 52, 85, 143, 155, 206–17, 226, 238, 242, 254, 298 population, 5, 46, 57, 155, 199, 250, 252, 254 Portugal, 211 post-growth society, 250 poverty, 5, 9, 37, 41, 50, 88, 118, 148, 151 emotional, 283 and inequality, 164–5, 168–9, 178 and overseas development assistance (ODA), 198–200 and taxation, 277 power, 91–92 pre-analytic vision, 21–2 prescription medicines, 123 price-takers, 132 prices, 81, 118–23, 131, 160 Principles of Economics (Mankiw), 34 Principles of Economics (Marshall), 17, 98 Principles of Political Economy (Mill), 288 ProComposto, 226 Propaganda (Bernays), 107 public relations, 107, 281 public spending v. investment, 276 public–private patents, 195 Putnam, Robert, 76–7 Q quantitative easing (QE), 184–5 Quebec, 281 Quesnay, François, 16, 73 R Rabot, Ghent, 236 Rancière, Romain, 172 rating and review systems, 105 rational economic man, 94–103, 109, 111, 112, 126, 282 Reagan, Ronald, 67 reciprocity, 103–6, 117, 118, 123 reflexivity of markets, 144 reinforcing feedback loops, 138–41, 148, 250, 271 relative decoupling, 259 renewable energy biomass energy, 118, 221 and circular economy, 221, 224, 226, 235, 238–9, 274 and commons, 83, 85, 185, 187–8, 192, 203, 264 geothermal energy, 221 and green growth, 257, 260, 263, 264, 267 hydropower, 118, 260, 263 pricing, 118 solar energy, see solar energy wave energy, 221 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 rentier sector, 180, 183, 184 reregulation, 82, 87, 269 resource flows, 175 resource-intensive lifestyles, 46 Rethinking Economics, 289 Reynebeau, Guy, 237 Ricardo, David, 67, 68, 73, 89, 250 Richardson, Katherine, 53 Rifkin, Jeremy, 83, 264–5 Rise and Fall of the Great Powers, The (Kennedy), 279 risk, 112, 113–14 Robbins, Lionel, 34 Robinson, James, 86 Robinson, Joan, 142 robots, 191–5, 237, 258, 278 Rockefeller Foundation, 135 Rockford, Illinois, 179–80 Rockström, Johan, 48, 55 Roddick, Anita, 232–4 Rogoff, Kenneth, 271, 280 Roman Catholic Church, 15, 19 Rombo, Tanzania, 190 Rome, Ancient, 13, 48, 154 Romney, Mitt, 92 Roosevelt, Franklin Delano, 37 rooted membership, 190 Rostow, Walt, 248–50, 254, 257, 267–70, 284 Ruddick, Will, 185 rule of thumb, 113–14 Ruskin, John, 42, 223 Russia, 200 rust belt, 90, 239 S S curve, 251–6 Sainsbury’s, 56 Samuelson, Paul, 17–21, 24–5, 38, 62–7, 70, 74, 84, 91, 92, 93, 262, 290–91 Sandel, Michael, 41, 120–21 Sanergy, 226 sanitation, 5, 51, 59 Santa Fe, California, 213 Santinagar, West Bengal, 178 São Paolo, Brazil, 281 Sarkozy, Nicolas, 43 Saumweder, Philipp, 226 Scharmer, Otto, 115 Scholes, Myron, 100–101 Schumacher, Ernst Friedrich, 42, 142 Schumpeter, Joseph, 21 Schwartz, Shalom, 107–9 Schwarzenegger, Arnold, 163, 167, 204 ‘Science and Complexity’ (Weaver), 136 Scotland, 57 Seaman, David, 187 Seattle, Washington, 217 second machine age, 258 Second World War (1939–45), 18, 37, 70, 170 secular stagnation, 256 self-interest, 28, 68, 96–7, 99–100, 102–3 Selfish Society, The (Gerhardt), 283 Sen, Amartya, 43 Shakespeare, William, 61–3, 67, 93 shale gas, 264, 269 Shang Dynasty, 48 shareholders, 82, 88, 189, 191, 227, 234, 273, 292 sharing economy, 264 Sheraton Hotel, Boston, 3 Siegen, Germany, 290 Silicon Valley, 231 Simon, Julian, 70 Sinclair, Upton, 255 Sismondi, Jean, 42 slavery, 33, 77, 161 Slovenia, 177 Small Is Beautiful (Schumacher), 42 smart phones, 85 Smith, Adam, 33, 57, 67, 68, 73, 78–9, 81, 96–7, 103–4, 128, 133, 160, 181, 250 social capital, 76–7, 122, 125, 172 social contract, 120, 125 social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6 social media, 83, 281 Social Progress Index, 280 social pyramid, 166 society, 76–7 solar energy, 59, 75, 111, 118, 187–8, 190 circular economy, 221, 222, 223, 224, 226–7, 239 commons, 203 zero-energy buildings, 217 zero-marginal-cost revolution, 84 Solow, Robert, 135, 150, 262–3 Soros, George, 144 South Africa, 56, 177, 214, 216 South Korea, 90, 168 South Sea Bubble (1720), 145 Soviet Union (1922–91), 37, 67, 161, 279 Spain, 211, 238, 256 Spirit Level, The (Wilkinson & Pickett), 171 Sraffa, Piero, 148 St Gallen, Switzerland, 186 Stages of Economic Growth, The (Rostow), 248–50, 254 stakeholder finance, 190 Standish, Russell, 147 state, 28, 33, 69–70, 78, 82, 160, 176, 180, 182–4, 188 and commons, 85, 93, 197, 237 and market, 84–6, 200, 281 partner state, 197, 237–9 and robots, 195 stationary state, 250 Steffen, Will, 46, 48 Sterman, John, 66, 143, 152–4 Steuart, James, 33 Stiglitz, Joseph, 43, 111, 196 stocks and flows, 138–41, 143, 144, 152 sub-prime mortgages, 141 Success to the Successful, 148, 149, 151, 166 Sugarscape, 150–51 Summers, Larry, 256 Sumner, Andy, 165 Sundrop Farms, 224–6 Sunstein, Cass, 112 supply and demand, 28, 132–6, 143, 253 supply chains, 10 Sweden, 6, 255, 275, 281 swishing, 264 Switzerland, 42, 66, 80, 131, 186–7, 275 T Tableau économique (Quesnay), 16 tabula rasa, 20, 25, 63, 291 takarangi, 54 Tanzania, 121, 190, 202 tar sands, 264, 269 taxation, 78, 111, 165, 170, 176, 177, 237–8, 276–9 annual wealth tax, 200 environment, 213–14, 215 global carbon tax, 201 global financial transactions tax, 201, 235 land-value tax, 73, 149, 180 non-renewable resources, 193, 237–8, 278–9 People’s QE, 185 tax relief v. tax justice, 23, 276–7 TED (Technology, Entertainment, Design), 202, 258 Tempest, The (Shakespeare), 61, 63, 93 Texas, United States, 120 Thailand, 90, 200 Thaler, Richard, 112 Thatcher, Margaret, 67, 69, 76 Theory of Moral Sentiments (Smith), 96 Thompson, Edward Palmer, 180 3D printing, 83–4, 192, 198, 231, 264 thriving-in-balance, 54–7, 62 tiered pricing, 213–14 Tigray, Ethiopia, 226 time banking, 186 Titmuss, Richard, 118–19 Toffler, Alvin, 12, 80 Togo, 231, 292 Torekes, 236–7 Torras, Mariano, 209 Torvalds, Linus, 231 trade, 62, 68–9, 70, 89–90 trade unions, 82, 176, 189 trademarks, 195, 204 Transatlantic Trade and Investment Partnership (TTIP), 92 transport, 59 trickle-down economics, 111, 170 Triodos, 235 Turkey, 200 Tversky, Amos, 111 Twain, Mark, 178–9 U Uganda, 118, 125 Ulanowicz, Robert, 175 Ultimatum Game, 105, 117 unemployment, 36, 37, 276, 277–9 United Kingdom Big Bang (1986), 87 blood donation, 118 carbon dioxide emissions, 260 free trade, 90 global material footprints, 211 money creation, 182 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 New Economics Foundation, 278, 283 poverty, 165, 166 prescription medicines, 123 wages, 188 United Nations, 55, 198, 204, 255, 258, 279 G77 bloc, 55 Human Development Index, 9, 279 Sustainable Development Goals, 24, 45 United States American Economic Association meeting (2015), 3 blood donation, 118 carbon dioxide emissions, 260 Congress, 36 Council of Economic Advisers, 6, 37 Earning by Learning, 120 Econ 101 course, 8, 77 Exxon Valdez oil spill (1989), 9 Federal Reserve, 87, 145, 146, 271, 282 free trade, 90 Glass–Steagall Act (1933), 87 greenhouse gas emissions, 153 global material footprint, 211 gross national product (GNP), 36–40 inequality, 170, 171 land-value tax, 73, 149, 180 political funding, 91–2, 171 poverty, 165, 166 productivity and employment, 193 rust belt, 90, 239 Transatlantic Trade and Investment Partnership (TTIP), 92 wages, 188 universal basic income, 200 University of Berkeley, 116 University of Denver, 160 urbanisation, 58–9 utility, 35, 98, 133 V values, 6, 23, 34, 35, 42, 117, 118, 121, 123–6 altruism, 100, 104 anthropocentric, 115 extrinsic, 115 fluid, 28, 102, 106–9 and networks, 110–11, 117, 118, 123, 124–6 and nudging, 112, 113, 114, 123–6 and pricing, 81, 120–23 Veblen, Thorstein, 82, 109, 111, 142 Venice, 195 verbal framing, 23 Verhulst, Pierre, 252 Victor, Peter, 270 Viner, Jacob, 34 virtuous cycles, 138, 148 visual framing, 23 Vitruvian Man, 13–14 Volkswagen, 215–16 W Wacharia, John, 186 Wall Street, 149, 234, 273 Wallich, Henry, 282 Walras, Léon, 131, 132, 133–4, 137 Ward, Barbara, 53 Warr, Benjamin, 263 water, 5, 9, 45, 46, 51, 54, 59, 79, 213–14 wave energy, 221 Ways of Seeing (Berger), 12, 281 Wealth of Nations, The (Smith), 74, 78, 96, 104 wealth ownership, 177–82 Weaver, Warren, 135–6 weightless economy, 261–2 WEIRD (Western, educated, industrialised, rich, democratic), 103–5, 110, 112, 115, 117, 282 West Bengal, India, 124, 178 West, Darrell, 171–2 wetlands, 7 whale hunting, 106 Wiedmann, Tommy, 210 Wikipedia, 82, 223 Wilkinson, Richard, 171 win–win trade, 62, 68, 89 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 Wizard of Oz, The, 241 Woelab, 231, 293 Wolf, Martin, 183, 266 women’s rights, 33, 57, 107, 160, 201 and core economy, 69, 79–81 education, 57, 124, 178, 198 and land ownership, 178 see also gender equality workers’ rights, 88, 91, 269 World 3 model, 154–5 World Bank, 6, 41, 119, 164, 168, 171, 206, 255, 258 World No Tobacco Day, 124 World Trade Organization, 6, 89 worldview, 22, 54, 115 X xenophobia, 266, 277, 286 Xenophon, 4, 32, 56–7, 160 Y Yandle, Bruce, 208 Yang, Yuan, 1–3, 289–90 yin yang, 54 Yousafzai, Malala, 124 YouTube, 192 Yunnan, China, 56 Z Zambia, 10 Zanzibar, 9 Zara, 276 Zeitvorsoge, 186–7 zero environmental impact, 217–18, 238, 241 zero-hour contracts, 88 zero-humans-required production, 192 zero-interest loans, 183 zero-marginal-cost revolution, 84, 191, 264 zero-waste manufacturing, 227 Zinn, Howard, 77 PICTURE ACKNOWLEDGEMENTS Illustrations are reproduced by kind permission of: archive.org


pages: 692 words: 167,950

The Ripple Effect: The Fate of Fresh Water in the Twenty-First Century by Alex Prud'Homme

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, activist fund / activist shareholder / activist investor, American Society of Civil Engineers: Report Card, big-box store, bilateral investment treaty, carbon footprint, Chance favours the prepared mind, clean water, commoditize, corporate raider, Deep Water Horizon, en.wikipedia.org, Exxon Valdez, hydraulic fracturing, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Snow's cholera map, Louis Pasteur, mass immigration, megacity, oil shale / tar sands, peak oil, renewable energy credits, Report Card for America’s Infrastructure, Ronald Reagan, Silicon Valley, The Wealth of Nations by Adam Smith, urban sprawl, William Langewiesche

Much more obvious was the rainbow-hued oil slick that floated down Newtown Creek, a 3.8-mile inlet of the East River that runs through the neighborhood and defines the Brooklyn/Queens border: it was slowly but plainly transformed into a winding, ink-black question mark in the heart of New York City. • • • By 2010, the oil spill beneath Brooklyn was estimated to contain at least 17 million to 30 million gallons of hydrocarbons and other toxic compounds, in pockets up to twenty-five feet deep, though the exact amount remains unknown. At the low end, this estimate represents 6 million more gallons of oil than the 10.8 million gallons of crude spilled by the Exxon Valdez in 1989, and 9 million more gallons than the oil spills that coated New Orleans after Hurricane Katrina in 2005. Until April 2010—when the drill rig Deepwater Horizon exploded, spewing 185 million gallons of oil into the Gulf of Mexico—the Newtown Creek oil spill was the largest in US history. The contaminants that settled onto the creek bed are so thick and viscous that locals call the sludge black mayonnaise.

THE WORST OIL SPILL IN HISTORY On April 20, 2010, the Deepwater Horizon, a drill rig contracted by BP to prospect for oil miles beneath the Gulf of Mexico, suffered a catastrophic blowout and exploded in a giant fireball that could be seen from thirty-five miles away. The disaster killed eleven men, sank one of the world’s most sophisticated drilling platforms, and spewed at least 2.5 million gallons of oil per day into the Gulf—equivalent to an Exxon Valdez spill every four days. Eighty-six days later, BP managed to cap the well. The Coast Guard predicted it could take years to remediate the giant oil slick, which threatened seashores in Louisiana, Mississippi, Alabama, and Florida, and freshwater supplies as it entered tributary rivers. The Justice Department initiated a criminal investigation to determine if environmental laws had been violated, and BP’s CEO was forced to resign.

The question you need to answer is, is that risk acceptable to you?” The crowd muttered, then shuffled out into the cold to think it over. SACRIFICING ONE RESOURCE FOR ANOTHER Miners and fishermen are not the only ones with their eyes on Bristol Bay. In 2007, President George W. Bush lifted a moratorium on drilling for oil there, which had been imposed by his father in 1990 in response to the Exxon Valdez disaster. The 2007 decision was yet another reminder of the growing competition for resources, and it enraged fishermen, environmentalists, and Native groups, who sued and delayed oil exploration in the bay. Drilling in Bristol Bay would generate an estimated $7.7 billion worth of oil and gas over twenty-five to forty years, which is a relatively modest return. Taking the bay’s notorious storms, ice, and cold into account, the former Minerals Management Service predicted that drilling there would result in at least one major oil spill.


pages: 322 words: 77,341

I.O.U.: Why Everyone Owes Everyone and No One Can Pay by John Lanchester

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asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black-Scholes formula, Celtic Tiger, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, George Akerlof, greed is good, hindsight bias, housing crisis, Hyman Minsky, intangible asset, interest rate swap, invisible hand, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, laissez-faire capitalism, light touch regulation, liquidity trap, Long Term Capital Management, loss aversion, Martin Wolf, money market fund, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, new economy, Nick Leeson, Norman Mailer, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative easing, reserve currency, Right to Buy, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, tulip mania, value at risk

So a product which made it possible to reduce that risk—to reduce it by selling it to somebody else—had the potential to create a gigantic new market. The new idea was a product which would resemble a kind of insurance, with the product insured being the risk of default on a specific debt. The first such deal involved the oil company Exxon, which needed to open a line of credit to cover potential damages of $5 billion resulting from the oil spillage from the Exxon Valdez in 1989. Exxon was an old client of J.P. Morgan, which was therefore reluctant to turn them down, even though the deal would take up a lot of capital which the bank could use more profitably elsewhere. Banks had rules about the amount of capital they needed to keep against the eventuality of loans going bad. The Basel rules, named after the city in Switzerland where they were formulated, are the internationally accepted code of practice for banking.

Morgan team, which had pretty much invented the entire CDS and CDO industry. They could see how profitable the new mortgage-backed versions of their CDOs were. But after taking a long, hard look at the new business, they took a pass. They simply didn’t see how the risks were being engineered down to a safe level. The other banks must be seeing some way of doing it which they couldn’t work out. Blythe Masters, the woman in charge of the Exxon Valdez deal and of selling the very first BISTRO bonds, and thus one of the creators of the entire CDS industry, was baffled by the CDO boom. “How are the other banks doing it?” she asked. “How are they making so much money?”3 According to Gillian Tett in Fool’s Gold, “she was so steeped in the ways of J.P. Morgan that it never occurred to her that the other banks might simply ignore all the risk controls J.P.


pages: 473 words: 154,182

Moby-Duck: The True Story of 28,800 Bath Toys Lost at Sea and of the Beachcombers, Oceanographers, Environmentalists, and Fools, Including the Author, Who Went in Search of Them by Donovan Hohn

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carbon footprint, clean water, collective bargaining, dark matter, Deng Xiaoping, Exxon Valdez, Filipino sailors, Google Earth, illegal immigration, indoor plumbing, intermodal, Isaac Newton, means of production, microbiome, Panamax, Pearl River Delta, post-Panamax, profit motive, Skype, statistical model, Thorstein Veblen, traveling salesman

“The isthmus is barely above sea level,” Pallister said. “On the west side of it the forest is pristine, but on the east side all the lower branches are stripped off. You can tell that hellacious winter storms have pounded the crap out of it.” The windward shore of that isthmus is what’s known to beachcombers and oceanographers as “a collector beach.” According to the Anchorage Daily News, of the 10.8 million gallons of oil that spilled from the Exxon Valdez in 1989, more ended up on the windward shore of Gore Point than on any other beach in Alaska. In a single month workers there had filled six thousand plastic bags with toxic goulash—“oily sand and gravel, patties of emulsified crude, tar coated flotsam and jetsam, and the oil coated carcasses of birds and sea otters,” the Daily News reported at the time. These bags the workers loaded onto a landing craft, which carted them off to the nearest landfill, eighty nautical miles away, in Homer.

To his great dismay, there are plenty of other people in the world who want in on his paradise. Although Pallister scorns organized religion, considering it the enemy of reason, there is something puritanical about his brand of conservationism, which is in large part a crusade against idiotic hominids. Like many conservationists in Alaska, he dates the beginning of his activism to March 24, 1989, the day the Exxon Valdez ran aground on Bligh Reef. What troubled Pallister the most wasn’t the spilled oil, however; it was the crowds—the volunteers, the cameramen, the news anchors, the oilmen, the politicians. “All of a sudden there were literally thousands of people in places where I’d never seen people before,” he told me. “I thought to myself, ‘Holy Christ! This is on the national news. Everybody’s going to see how beautiful this place is.

Thirty years ago in Coming into the Country, John McPhee wrote memorably about what he called “the Alaskan paradox,” the irreconcilable cohabitation in Alaska of “the Sierra Club syndrome” and “the Dallas scenario”—of the impulse to sanctify the wilderness and to exploit it. Those two impulses are still at war in Alaska, but the allegiances have shifted and the plotlines have blurred. On the one hand, after the Exxon Valdez fulfilled the dire prophecies of environmental Cassandras, threatening Alaska’s fisheries and tourism industry as well as the ecosystem of Prince William Sound, fewer Alaskans now regard the Sierra Club as “a netherworld force” than when McPhee visited the state in the early seventies. On the other hand, in Alaska, as everywhere else in America, it’s no longer quite so easy to tell who’s on the Sierra Club’s team and who’s playing for Dallas, which is why it pissed off Shavelson so much that Pallister and GoAK had obfuscatorily appropriated the Waterkeeper brand.


pages: 570 words: 158,139

Overbooked: The Exploding Business of Travel and Tourism by Elizabeth Becker

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airport security, Asian financial crisis, barriers to entry, Berlin Wall, BRICs, car-free, carbon footprint, clean water, collective bargaining, colonial rule, computer age, corporate governance, Costa Concordia, Deng Xiaoping, European colonialism, Exxon Valdez, Fall of the Berlin Wall, Frank Gehry, global village, happiness index / gross national happiness, haute cuisine, indoor plumbing, Masdar, Murano, Venice glass, open borders, out of africa, race to the bottom, Ralph Nader, Scramble for Africa, Silicon Valley, statistical model, sustainable-tourism, the market place, union organizing, urban renewal, wage slave, young professional, éminence grise

Only national navies and coast guards have the authority and wherewithal to enforce antipollution standards or laws. Disasters continued. The Exxon Valdez spilled 32 million gallons of oil in Prince William Sound, Alaska, in 1989. The Prestige, a Greek ship registered in the Bahamas and Liberia, spilled 77,000 tons of fuel off the Galician coast of northwestern Spain in 2002. Despite the MARPOL convention, the owners of the Prestige escaped responsibility. Furious, the Europeans sharpened their own laws and stepped up surveillance of the coast. Against this backdrop, cruise ships were largely ignored, considered harmless for carrying tourists rather than oil. The awakening came in Alaska ten years after the Exxon Valdez spill. The guilty party was Royal Caribbean. Their cruise ships, which sailed through some of Alaska’s most sensitive harbors and coastal waterways, including the Inside Passage, were caught illegally dumping bilge water containing waste oil and hazardous chemicals.

.: of 2008, 366 of 2012, 364–65, 366–67 elephants: poaching of, 214, 219–21, 234–35 threatened extinction of, 220–21, 223, 235 El Salvador, civil war in, 254 Emanuel, Rahm, 370–71, 373–74 Emirates Airlines, 172–73, 174, 184 Emirates Palace Hotel, 191 Emmrich, Stuart, 7, 30–31 Eng, Roland, 90–91, 92, 105 environmental degradation: from cruise ships, 134, 153–55 tourism and, 20, 30, 35, 38, 195–96, 272 in UAE, 195–96 see also pollution environmentalism, 21, 249–50, 266 see also ecotourism; green tourism Environmental Protection Agency (EPA), U.S., 156–57, 161, 163–64 Ephron, Nora, 13 Etihad Airways, 192 Euromic, 372 Europe: Chinese tourists in, 308–9 meetings and conventions business in, 372–73 paid vacations in, 55 tourism in, 14, 19 European trading system, 38 European Union, 55, 68 Europe on $5 a Day (Frommer), 11, 12–13 Evans, Graham, 199 Explorer sinking, 162 Exxon Valdez oil spill, 158 Fain, Richard, 140 Falcone, Patrick, 68–69, 72 falcons, 198 Farmer, Greg, 352 FBI, 164 Federal Aviation Administration, 351 Fiedler, Tom, 32, 33 Figueres Ferrer, José, 250 Fine Art Registry, 147–48 flags of convenience, 139, 142, 256 Florianópolis, Brazil, 270 Florida, tourism industry in, 32, 125, 134, 135, 384 fondacos, 78 Footprint Dubai (Gilmore), 175 Forbes, 72 40xVenezia, 78, 80–81 Four Seasons Resort and Spa, Costa Rica, 262 France, 43–75 Agriculture Ministry of, 57, 67–68, 69, 72 American tourists in, 49–50, 53–54 British tourists in, 49, 50–51 Chinese tourists in, 66–67, 309, 310 cultural richness of, 47–48, 56, 68 Culture Ministry of, 47, 67 dependence on tourism as contrary to self-image of, 46–47 foreign retirees in, 72–73 governmental tourism policy in, 44–45, 47, 48, 57–58, 66–69 landscape preservation in, 68–69 Marshall Plan rebuilding of tourism industry in, 52–54 as most visited country, 44 museum system in, 56 national lifestyle of, 45, 53, 68 nineteenth-century tourism in, 49–51 paid vacations in, 47, 52 railway system in, 56–57, 59, 68 Tourism Board of, 51 tourism as largest economic sector in, 44, 46–47, 66–67 tourism problems in, 47, 48, 69–75 tourism’s pressure on housing markets in, 71–75 wine tourism in, 58–66 Franco, Francisco, 8 Frangialli, Francesco, 16, 48 Frankel, Amy, 163 Franks, Theresa, 147–48 Frantzius, Alexander von, 250–51 Freeman, Geoff, 355, 359, 360–61, 367 Free Tibet movement, 302 frequent-flyer miles, total value of, 17, 174–75 Friendship Hotel, Beijing, 296 Frommer, Arthur, 11–13, 26 Fuller, Ed, 172, 179, 271, 274, 276 Fundingsland, David, 320 fund-raising, tourism and, 19 Gabbrielli, Matteo, 76–78, 82, 84, 310 Gabon, 235 Gad, David, 149 Galabru, Kek, 110 Galápagos islands, 241 Galle, Sri Lanka, 282, 283, 284–85 Gambia, 242 Gander, Rhoda M., 231–32 gay and lesbian tourism, 37 Gebrselassie, Haile, 333 Gehry, Frank, 191 Gelb, Arthur, 28 General Services Administration, U.S., 373 genocide museums, 106–7 George Washington University, 268, 380 geotourism, 266–68 see also ecotourism; green tourism Geotourism Map Guide program, 267 Germany, 372 Ghana, 242 Gifford, Kathie Lee, 137–38 Giles, Rick, 356 Gilmore, Zee, 175 Gingrich, Newt, 350, 352, 365, 367 Gironde River, 58 G.I.’s Guide to Travelling in Europe, The (Frommer), 11 Giverny, France, 70 Glacier Bay National Park, 160 Glenny, Misha, 115 Global Footprint Network, 196 Global Heritage Fund, 98 globalization, labor unions and, 141–42 Global Sustainable Tourism Council, 247, 255–56, 260, 262, 264–66 Global Tourism Business Award, 271 Goldstein, Adam M., 143–44, 148, 150, 152, 154, 155 golf courses, water usage by, 200 Golfo Dulce Bay, 252, 258 Goodman, Carolyn, 371 Goodwin, Harold, 269 Goonetilleke, Bernard, 282 Gore, Al, 350 Gorée island, 243 Gorongosa National Park, 238–39 Gourevitch, Philip, 239 governments: tourism marketing by, 33–34, 66, 69, 347 Graff, Roy, 311 Graves, Michael, 113 Great Depression, 384 Great Exposition, London (1851), 49 Great Recession (2008), 17, 19, 67, 116, 138–39, 149, 294, 366 Dubai and, 169, 175, 178, 179, 186 tourism industry and, 271, 273–74, 360 Great Rift Valley, 238 Great Wall Hotel, 304 Green Globe, 266 Greenhouse, Carol, 202 green tourism, 193–203, 263 see also ecotourism; geotourism Gregori, Flavio, 78–79, 82 Groslier, Bernard-Philippe, 95 Groslier, George, 95 Guardian (London), 356 Guatemala, postwar tourism in, 279 Guggenheim Museum, Abu Dhabi, 191, 192–93 Guilin, China, 302 Gulf Air, 171, 172 habitat destruction, 20, 198–99 Habitat for Humanity, 268 Hajj pilgrimage, 17–18, 167, 170, 181–85 Haley, Alex, 242–43 Haley, William, 243 Hamm, Catharine, 30 Hanks, Douglas, III, 32 Harms, Erika, 264–65 Harté, Yves, 62–63 Hawaii: Conservation and Coastal Lands Office of, 385–86 Land and Natural Resources Department of, 385 sea rise and, 385–88 Tourism Authority of, 387 Hawaii, University of, 385 Hawkins, Donald, 268, 380–81 health care costs, medical tourism and, 18, 376, 378–79 Hegazy, Ashraf Faisal, 195 hema, 198 Heng-Shan Group, 325 Heng-Shan Moller Villa, 324–25 Herscowitz, Herb and Ellen, 294 Hiaasen, Carl, 384 Hickton, George, 307–8, 310 Hill, Isabel, 360 Hilton hotels, 314 Historic Shanghai, 325–27 HIV/AIDS, 230 Ho, Dean, 304 Ho, Stanley, 369 Hoffmann, Carl, 250–51 Hogg, Andy, 216–17, 218–19, 223–24, 225–27 Hogg, Jerry, 217, 218 Hoh Rain Forest, 383–84 Holdridge, Leslie, 251 Homeland Security Department, U.S., 161, 353, 354, 357 Honey, Martha, 268–69 Hong Kong, 295, 306, 369 Ho Renzhi, 298 hospitality, as foreign to Chinese tourism industry, 302–3, 315–16, 317 hospitality schools and academic programs, 10, 379–80 housing markets, tourism and, 20, 71–75, 80 howler monkeys, 247, 248, 252, 261 Huangpu River, 323, 324 Hughes, Trevor, 162 Human Rights Watch, 187, 192 Hunas Falls, 285, 286 Hun Sen, 91, 99, 101, 104, 108, 109–11 Hyatt Hotels Corporation, 314, 374 Hydropolis Hotel, 177 Iceland Water Park, 201 India, 116, 189, 375 Indonesia, 183 Innocents Abroad (Twain), 49–50 InterContinental Hotels Group, 359 International Centre for Responsible Tourism, 269 International Convention for the Prevention of Pollution from Ships (MARPOL), 158 International Coordinating Committee for the Safeguarding and Development of the Historic Site of Angkor (ICC-Angkor), 96–97 International Ecotourism Society, 251 International Institute for Peace Through Tourism, 229–34 International Justice Mission (IJM), 119–20 International Olympic Committee, 362 International Transport Workers’ Federation, 142, 143 International Union for Conservation of Nature, 198 Internet: tourism and, 381 travel writing and, 30 U.S. national travel website on, 363 U.S. tourism policy criticized on, 356 Iraq War, 349, 353, 355 Ireland, 19 Israel, 35, 141 Italy, 83 ITB International Tourism Bourse, 229 ivory trade, illegal, 220–21, 234–35 Jacobs, Susan, 358 Japanese tourists, in Venice, 76 Jarrett, Valerie, 360 Jayavarman VII, Angkor emperor, 95 Jebel Ali International Hotels, 201 Jeddah, Saudi Arabia, 182, 184, 185 Jenanyan, Gary, 257 Jerusalem, pilgrimages to, 182 Jerusalem and Its Surroundings (Baedeker guide), 23 Jetwing, 279, 285, 286 Johannesburg airport, 209 Johnston, Tess, 326 Joly, Hubert, 271–72 Juma Sustainable Development Preserve, 271, 274–76 Jumeirah Group, 195, 196 Juppé, Alain, 58–59, 61–62, 63, 64–65 Justice Department, U.S., 115, 116 J.


pages: 685 words: 203,949

The Organized Mind: Thinking Straight in the Age of Information Overload by Daniel J. Levitin

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airport security, Albert Einstein, Amazon Mechanical Turk, Anton Chekhov, Bayesian statistics, big-box store, business process, call centre, Claude Shannon: information theory, cloud computing, cognitive bias, complexity theory, computer vision, conceptual framework, correlation does not imply causation, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, en.wikipedia.org, epigenetics, Eratosthenes, Exxon Valdez, framing effect, friendly fire, fundamental attribution error, Golden Gate Park, Google Glasses, haute cuisine, impulse control, index card, indoor plumbing, information retrieval, invention of writing, iterative process, jimmy wales, job satisfaction, Kickstarter, life extension, meta analysis, meta-analysis, more computing power than Apollo, Network effects, new economy, Nicholas Carr, optical character recognition, Pareto efficiency, pattern recognition, phenotype, placebo effect, pre–internet, profit motive, randomized controlled trial, Rubik’s Cube, Skype, Snapchat, statistical model, Steve Jobs, supply-chain management, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Bayes, Turing test, ultimatum game, zero-sum game

Washington, DC: The National Academies Press. Also available at http://www.ncbi.nlm.nih.gov/books/NBK19958/ some of the most well-known global disasters Harrison, Y., & Horne, J. A. (2000). The impact of sleep deprivation on decision-making: A review. Journal of Experimental Psychology: Applied, 6(3), 236–249. the oil spill from the Exxon Valdez U. S. National Transportation Safety Board. (1997). Marine accident report: Grounding of the U. S. tankship Exxon Valdez on Bligh Reeff, Prince William Sound, near Valdez, Alaska. NTSB Number MAR-90/04; PB90-916405. Washington, DC: U.S. Government Printing Office. the cruise ship Star Princess U. S. National Transportation Safety Board (1997). Marine accident report: Grounding of the Liberian passenger ship Star Princess on Poundstone Rock, Lynn Canal, Alaska.

Sleepiness was responsible for 250,000 traffic accidents in 2009, and is one of the leading causes of friendly fire—soldiers mistakenly shooting people on their own side. Sleep deprivation was ruled to be a contributing factor in some of the most well-known global disasters: the nuclear power plant disasters at Chernobyl (Ukraine), Three Mile Island (Pennsylvania), Davis-Besse (Ohio), and Rancho Seco (California); the oil spill from the Exxon Valdez; the grounding of the cruise ship Star Princess; and the fatal decision to launch the Challenger space shuttle. Remember that Air France plane that crashed into the Atlantic Ocean in June 2009, killing all 288 people on board? The captain had been running on only one hour of sleep, and the copilots were also sleep deprived. In addition to loss of life, there is the economic impact. Sleep deprivation is estimated to cost U.S. businesses more than $150 billion a year in absences, accidents, and lost productivity—for comparison, that’s roughly the same as the annual revenue of Apple Corporation.

See also central executive function exemplar object, 60–61 exercise, 211, 242 expected value, 236–37, 243–44, 396 expertise, 57, 138–39, 177–78, 205–7, 329–37 externalizing memory and airplane controls, 373 and brain extenders, 67–74 and brain physiology, 48–49, 50 and creativity, 375–76 and fuzzy categories, 370–71 and memory aids, 109–10 and neuronal clusters, xviii and organizational efficiency, 270 and social relations, 124–25 and tickler files, 124–25 and writing, xiii–xv Exxon Valdez oil spill, 191 Eysenck, Hans, 349 Facebook, 100–102, 126, 338 failure, planning for, 319–26 false positives and negatives, 232, 232, 233, 386, 386, 388 fear, 52–53, 418n126 Feinberg School of Medicine, 56 Ferguson, Jim, 178 Fermi problems, 357–58 file formats, 93, 321 filing systems, 93–94, 294–305, 376 Finkel, Eli, 131 fish oil supplements, 350–51 five-minute rule, 211–12 Fleming, Sandford, 163–64 flow state, 203–8, 209 focus, 9, 102, 170–71, 208.


pages: 422 words: 113,525

Whole Earth Discipline: An Ecopragmatist Manifesto by Stewart Brand

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agricultural Revolution, Asilomar, Asilomar Conference on Recombinant DNA, back-to-the-land, biofilm, borderless world, Buckminster Fuller, business process, Cass Sunstein, clean water, Community Supported Agriculture, conceptual framework, Danny Hillis, dark matter, decarbonisation, demographic dividend, demographic transition, Elon Musk, Exxon Valdez, failed state, Geoffrey West, Santa Fe Institute, glass ceiling, Google Earth, Hans Rosling, Hernando de Soto, informal economy, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invention of the steam engine, Jane Jacobs, jimmy wales, Kevin Kelly, Kibera, land tenure, M-Pesa, Marshall McLuhan, megacity, microbiome, New Urbanism, out of africa, Paul Graham, peak oil, Richard Florida, Ronald Reagan, Silicon Valley, smart grid, stem cell, Stewart Brand, The Fortune at the Bottom of the Pyramid, Thomas Malthus, University of East Anglia, uranium enrichment, urban renewal, wealth creators, Whole Earth Catalog, Whole Earth Review, William Langewiesche, working-age population, Y2K

Three fishery-preserving strategies that show promise are: ocean reserves that ban all fishing in designated areas and allow stocks to recover; a system of catch shares called “individual transferable quotas,” which has already saved the halibut fishery in Alaska; and carefully managed mariculture. As Jacques Cousteau told me in 1976, “Fishing is hunting. . . . It must be eliminated completely and replaced by farming if we are to be civilized. What we call civilization originated in farming. We are still barbarians in the sea.” Degrees of Disaster, the close-up story of the Exxon Valdez oil spill, is replete with awkward truths that didn’t make it into the warring scientific reports so sumptuously funded by both sides of the controversy. The massive cleanup efforts did more environmental harm than the spill itself, though they did provide an economic boom for the Prince William Sound region. The biologically richest ocean habitat in the area was inside the emptied cargo holds of the grounded ship: an entire food chain from bacteria up to herring and salmon was feeding on the oil.

Earth Liberation Front Earthrise (Poole) E. coli ecological inheritance Ecologist Economist Eco-pragmatism (Farber) ecosystem engineering see also geoengineering ecosystem services ecotechnology Ecotrust Ehrlich, Paul Eighth Day of Creation, The (Judson) electric power nuclear power and elephants Elmqvist, Thomas EMBO Reports Empty Cradle, The (Longman) “Encyclopedia of Life, The” (Wilson) endangered and threatened species Ending the Energy Stalemate (Ehrlich) End of Nature, The (McKibben) endosymbiotic theory Endy, Drew Energy Policy Act (2005) environment, carrying capacity of environmental movement engineers and Nazism and politics and pragmatism and quality of judgment and romanticism and science and Environmental Protection Agency (EPA), U.S. Essay on the Principle of Population, An (Malthus) ETC Group Europe genetic engineering and urbanization in see also specific countries European Space Agency European Union (EU) eutrophication evolution Expert Political Judgment (Tetlock) “Extreme Genetic Engineering” (Thomas) Exxon Valdez Fagan, Brian famines Farber, Daniel Farmers of Forty Centuries (King) farmers’ markets favelas “Feasibility of Cooling the Earth with a Cloud of Small Spacecraft Near the Inner Lagrange Point (L1)” (Angel) Federoff, Nina Fedrizzi, Rick feedback loops fertilizers Fewer (Wattenberg) Fischer, Joschka Fisher, Brian fisheries “Fission Division, The” (Mark) Flannery, Tim Flettner sails Florida, Richard food, genetic engineering and Food and Drug Administration (FDA), U.S.


pages: 309 words: 95,495

Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe by Greg Ip

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Affordable Care Act / Obamacare, Air France Flight 447, air freight, airport security, Asian financial crisis, asset-backed security, bank run, banking crisis, break the buck, Bretton Woods, capital controls, central bank independence, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, Daniel Kahneman / Amos Tversky, diversified portfolio, double helix, endowment effect, Exxon Valdez, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, global supply chain, hindsight bias, Hyman Minsky, Joseph Schumpeter, Kenneth Rogoff, London Whale, Long Term Capital Management, market bubble, money market fund, moral hazard, Myron Scholes, Network effects, new economy, offshore financial centre, paradox of thrift, pets.com, Ponzi scheme, quantitative easing, Ralph Nader, Richard Thaler, risk tolerance, Ronald Reagan, savings glut, technology bubble, The Great Moderation, too big to fail, transaction costs, union organizing, Unsafe at Any Speed, value at risk, William Langewiesche, zero-sum game

It works when only a few people buy it; when everyone does, it not only makes the catastrophe more likely, it threatens the survival of the system. This became apparent when, twenty years later, an almost identical problem erupted over the use of another financial innovation: credit default swaps, or CDSs. J.P. Morgan hit upon the idea of the credit default swap in 1994. As Gillian Tett recounts in her book Fool’s Gold, Exxon (now Exxon Mobil) had asked for a $4.8 billion credit line to handle an expected fine for the Exxon Valdez oil spill. This was more than J.P. Morgan was comfortable committing to a single client, but it didn’t want to say no, so it asked the European Bank for Reconstruction and Development to take on the credit risk of the loan in exchange for a fee. The loan remained on J.P. Morgan’s books, but the firm now had an insurance policy against default. (The instrument gets its name from the fact that the two parties swap the risk of default and a premium.)

Subsequent inquiries found that BP had a culture of cutting corners and sacrificing safety for speed. Engineers knew that the Macondo well was difficult to control but they kept trying rather than abandon it. That evening the well suffered a blowout and the escaping gas exploded, destroying the rig, killing eleven, and causing one of the worst oil spills in history. In 1989, the supertanker Exxon Valdez ran aground in Prince William Sound, Alaska, spilling eleven million gallons of crude oil, soiling more than a thousand miles of coastline, and killing thousands of birds, otters, seals, and whales. The reputational and financial damage caused by that catastrophe was enormous. For years afterward the first word that people in focus groups thought of when they heard “Exxon” was “Valdez.” Exxon Mobil, as the company is now known, could have cleaned up, moved on, and allowed the bad memories to fade, but it didn’t.


pages: 368 words: 32,950

How the City Really Works: The Definitive Guide to Money and Investing in London's Square Mile by Alexander Davidson

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accounting loophole / creative accounting, algorithmic trading, asset allocation, asset-backed security, bank run, banking crisis, barriers to entry, Big bang: deregulation of the City of London, capital asset pricing model, central bank independence, corporate governance, Credit Default Swap, dematerialisation, discounted cash flows, diversified portfolio, double entry bookkeeping, Edward Lloyd's coffeehouse, Elliott wave, Exxon Valdez, forensic accounting, global reserve currency, high net worth, index fund, inflation targeting, intangible asset, interest rate derivative, interest rate swap, John Meriwether, London Interbank Offered Rate, Long Term Capital Management, margin call, market fundamentalism, Nick Leeson, North Sea oil, Northern Rock, pension reform, Piper Alpha, price stability, purchasing power parity, Real Time Gross Settlement, reserve currency, Right to Buy, shareholder value, short selling, The Wealth of Nations by Adam Smith, transaction costs, value at risk, yield curve, zero-coupon bond

A third slice would be passed to another reinsurer, and the spiral would continue through the market, sometimes winding back to the original insurer or reinsurer, which might take another slice, effectively reinsuring itself. A series of major catastrophes happened. In 1988, the Piper Alpha oil platform caught fire and fell into the North Sea. In 1989, Hurricane Hugo struck Puerto Rico, St Croix, South Carolina and North Carolina and, in the same year, oil tanker Exxon Valdez ran aground off the Alaskan coast. In 1990, there were severe storms across Europe. Lloyd’s Names ended up paying many of the claims. Some loss-making Names alleged that certain members’ agents had known of pending legal actions affecting the syndicates that they advised them to join. The claim was never proven. In 1988–92, losses at Lloyd’s were £8 billion and commentators had started querying whether the market could survive.

Index 419 fraud 204 9/11 terrorist attacks 31, 218, 242, 243, 254, 257 Abbey National 22 ABN AMRO 103 accounting and governance 232–38 scandals 232 Accounting Standards Board (ASB) 236 administration 17 Allianz 207 Alternative Investment Market (AIM) 44–45, 131, 183, 238 Amaranth Advisors 170 analysts 172–78 fundamental 172–74 others 177–78 Spitzer impact 174–75 technical 175–77 anti-fraud agencies Assets Recovery Agency 211–13 City of London Police 209 Financial Services Authority 208 Financial Crime and Intelligence Division 208 Insurance Fraud Bureau 209 Insurance Fraud Investigators Group 209 International Association of Insurance Fraud Agencies 207, 210, 218 National Criminal Intelligence Service 210 Serious Fraud Office 213–15 Serious Organised Crime Agency 210–11 asset finance 24–25 Association of Investment Companies 167 backwardation 101 bad debt, collection of 26–28 Banco Santander Central Hispano 22 Bank for International Settlements (BIS) 17, 27, 85, 98, 114 bank guarantee 23 Bank of Credit and Commerce International (BCCI) 10, 214 Bank of England 6, 10–17 Court of the 11 credit risk warning 98 framework for sterling money markets 81 Governor 11, 13, 14 history 10, 15–16 Inflation Report 14 inflation targeting 12–13 interest rates and 12 international liaison 17 lender of last resort 15–17 Market Abuse Directive (MAD) 16 monetary policy and 12–15 Monetary Policy Committee (MPC) 13–14 Open-market operations 15, 82 repo rate 12, 15 role 11–12 RTGS (Real Time Gross Settlement) 143 statutory immunity 11 supervisory role 11 Bank of England Act 1988 11, 12 Bank of England Quarterly Model (BEQM) 14 Banking Act 1933 see Glass-Steagall Act banks commercial 5 investment 5 Barclays Bank 20 Barings 11, 15, 68, 186, 299 Barlow Clowes case 214 Barron’s 99 base rate see repo rate Basel Committee for Banking Supervision (BCBS) 27–28 ____________________________________________________ INDEX 303 Basel I 27 Basel II 27–28, 56 Bear Stearns 95, 97 BearingPoint 97 bill of exchange 26 Bingham, Lord Justice 10–11 Blue Arrow trial 214 BNP Paribas 145, 150 bond issues see credit products book runners 51, 92 Borsa Italiana 8, 139 bps 90 British Bankers’ Association 20, 96, 97 building societies 22–23 demutualisation 22 Building Societies Association 22 Capital Asset Pricing Model (CAPM) see discounted cash flow analysis capital gains tax 73, 75, 163, 168 capital raising markets 42–46 mergers and acquisitions (M&A) 56–58 see also flotation, bond issues Capital Requirements Directive 28, 94 central securities depository (CSD) 145 international (ICSD) 145 Central Warrants Trading Service 73 Chancellor of the Exchequer 12, 13, 229 Chicago Mercantile Exchange 65 Citigroup 136, 145, 150 City of London 4–9 Big Bang 7 definition 4 employment in 8–9 financial markets 5 geography 4–5 history 6–7 services offered 4 world leader 5–6 clearing 140, 141–42 Clearing House Automated Payment System (CHAPS) 143 Clearstream Banking Luxembourg 92, 145 commercial banking 5, 18–28 bad loans and capital adequacy 26–28 banking cards 21 building societies 22–23 credit collection 25–26 finance raising 23–25 history 18–19 overdrafts 23 role today 19–21 commodities market 99–109 exchange-traded commodities 101  fluctuations 100 futures 100 hard commodities energy 102 non-ferrous metals 102–04 precious metal 104–06 soft commodities cocoa 107 coffee 106 sugar 107 Companies Act 2006 204, 223, 236 conflict of interests 7 consolidation 138–39 Consumer Price Index (CPI) 13 contango 101 Continuous Linked Settlement (CLS) 119 corporate governance 223–38 best practice 231 Cadbury Code 224 Combined Code 43, 225 compliance 230 definition 223 Directors’ Remuneration Report Regulations 226 EU developments 230 European auditing rules 234–35 Greenbury Committee 224–25 Higgs and Smith reports 227 International Financial Reporting Standards (IFRS) 237–38 Listing Rules 228–29 Model Code 229 Myners Report 229 OECD Principles 226 operating and financial review (OFR) 235– 36 revised Combined Code 227–28 Sarbanes–Oxley Act 233–34 Turnbull Report 225 credit cards 21 zero-per-cent cards 21 credit collection 25–26 factoring and invoice discounting 26 trade finance 25–26 credit derivatives 96–97 back office issues 97 credit default swap (CDS) 96–97 credit products asset-backed securities 94 bonds 90–91 collateralised debt obligations 94–95 collateralised loan obligation 95 covered bonds 93 equity convertibles 93 international debt securities 92–93  304 INDEX ____________________________________________________ junk bonds 91 zero-coupon bonds 93 credit rating agencies 91 Credit Suisse 5, 136, 193 CREST system 141, 142–44 dark liquidity pools 138 Debt Management Office 82, 86 Department of Trade and Industry (DTI) 235, 251, 282 derivatives 60–77 asset classes 60 bilateral settlement 66 cash and 60–61 central counterparty clearing 65–66 contracts for difference 76–77, 129 covered warrants 72–73 futures 71–72 hedging and speculation 67 on-exchange vs OTC derivatives 63–65 options 69–71 Black-Scholes model 70 call option 70 equity option 70–71 index options 71 put option 70 problems and fraud 67–68 retail investors and 69–77 spread betting 73–75 transactions forward (future) 61–62 option 62 spot 61 swap 62–63 useful websites 75 Deutsche Bank 136 Deutsche Börse 64, 138 discounted cash flow analysis (DCF) 39 dividend 29 domestic financial services complaint and compensation 279–80 financial advisors 277–78 Insurance Mediation Directive 278–79 investments with life insurance 275–76 life insurance term 275 whole-of-life 274–75 NEWICOB 279 property and mortgages 273–74 protection products 275 savings products 276–77 Dow theory 175 easyJet 67 EDX London 66 Egg 20, 21 Elliott Wave Theory 176 Enron 67, 114, 186, 232, 233 enterprise investment schemes 167–68 Equiduct 133–34, 137 Equitable Life 282 equities 29–35 market indices 32–33 market influencers 40–41 nominee accounts 31 shares 29–32 stockbrokers 33–34 valuation 35–41 equity transparency 64 Eurex 64, 65 Euro Overnight Index Average (EURONIA) 85 euro, the 17, 115 Eurobond 6, 92 Euroclear Bank 92, 146, 148–49 Euronext.liffe 5, 60, 65, 71 European Central Bank (ECB) 16, 17, 84, 148 European Central Counterparty (EuroCCP) 136 European Code of Conduct 146–47, 150 European Exchange Rate Mechanism 114 European Harmonised Index of Consumer Prices 13 European Union Capital Requirements Directive 199 Market Abuse Directive (MAD) 16, 196 Market in Financial Instruments Directive (MiFID) 64, 197–99 Money Laundering Directive 219 Prospectus Directive 196–97 Transparency Directive 197 exchange controls 6 expectation theory 172 Exxon Valdez 250 factoring see credit collection Factors and Discounters Association 26 Fair & Clear Group 145–46 Federal Deposit Insurance Corporation 17 Federation of European Securities Exchanges 137 Fighting Fraud Together 200–01 finance, raising 23–25 asset 24–25 committed 23 project finance 24 recourse loan 24 syndicated loan 23–24 uncommitted 23 Financial Action Task Force on Money Laundering (FATF) 217–18 financial communications 179–89 ____________________________________________________ INDEX 305 advertising 189 corporate information flow 185 primary information providers (PIPs) 185 investor relations 183–84 journalists 185–89 public relations 179–183 black PR’ 182–83 tipsters 187–89 City Slickers case 188–89 Financial Ombudsman Service (FOS) 165, 279–80 financial ratios 36–39 dividend cover 37 earnings per share (EPS) 36 EBITDA 38 enterprise multiple 38 gearing 38 net asset value (NAV) 38 price/earnings (P/E) 37 price-to-sales ratio 37 return on capital employed (ROCE) 38 see also discounted cash flow analysis Financial Reporting Council (FRC) 224, 228, 234, 236 Financial Services Act 1986 191–92 Financial Services Action Plan 8, 195 Financial Services and Markets Act 2001 192 Financial Services and Markets Tribunal 94 Financial Services Authority (FSA) 5, 8, 31, 44, 67, 94, 97, 103, 171, 189, 192–99 competition review 132 insurance industry 240 money laundering and 219 objectives 192 regulatory role 192–95 powers 193 principles-based 194–95 Financial Services Compensation Scheme (FSCS) 17, 165, 280 Financial Services Modernisation Act 19 financial services regulation 190–99 see also Financial Services Authority Financial Times 9, 298 First Direct 20 flipping 53 flotation beauty parade 51 book build 52 early secondary market trading 53 grey market 52, 74 initial public offering (IPO) 47–53 pre-marketing 51–52 pricing 52–53 specialist types of share issue accelerated book build 54  bought deal 54 deeply discounted rights issue 55 introduction 55 placing 55 placing and open offer 55 rights issues 54–55 underwriting 52 foreign exchange 109–120 brokers 113 dealers 113 default risk 119 electronic trading 117 exchange rate 115 ICAP Knowledge Centre 120 investors 113–14 transaction types derivatives 116–17 spot market 115–16 Foreign Exchange Joint Standing Committee 112 forward rate agreement 85 fraud 200–15 advanced fee frauds 204–05 boiler rooms 201–04 Regulation S 202 future regulation 215 identity theft 205–06 insurance fraud 206–08 see also anti-fraud agencies Fraud Act 2006 200 FTSE 100 32, 36, 58, 122, 189, 227, 233 FTSE 250 32, 122 FTSE All-Share Index 32, 122 FTSE Group 131 FTSE SmallCap Index 32 FTSE Sterling Corporate Bond Index 33 Futures and Options Association 131 Generally Accepted Accounting Principles (GAAP) 237, 257 gilts 33, 86–88 Giovanni Group 146 Glass-Steagall Act 7, 19 Global Bond Market Forum 64 Goldman Sachs 136 government bonds see gilts Guinness case 214 Halifax Bank 20 hedge funds 8, 77, 97, 156–57 derivatives-based arbitrage 156 fixed-income arbitrage 157 Hemscott 35 HM Revenue and Customs 55, 211 HSBC 20, 103 Hurricane Hugo 250  306 INDEX ____________________________________________________ Hurricane Katrina 2, 67, 242 ICE Futures 5, 66, 102 Individual Capital Adequacy Standards (ICAS) 244 inflation 12–14 cost-push 12 definition 12 demand-pull 12 quarterly Inflation Report 14 initial public offering (IPO) 47–53 institutional investors 155–58 fund managers 155–56 hedge fund managers 156–57 insurance companies 157 pension funds 158 insurance industry London and 240 market 239–40 protection and indemnity associations 241 reform 245 regulation 243 contingent commissions 243 contract certainty 243 ICAS and Solvency II 244–45 types 240–41 underwriting process 241–42 see also Lloyd’s of London, reinsurance Intercontinental Exchange 5 interest equalisation tax 6 interest rate products debt securities 82–83, 92–93 bill of exchange 83 certificate of deposit 83 debt instrument 83 euro bill 82 floating rate note 83 local authority bill 83 T-bills 82 derivatives 85 forward rate agreements (FRAs) 85–86 government bonds (gilts) 86–89 money markets 81–82 repos 84 International Financial Reporting Standards (IFRS) 58, 86, 173, 237–38 International Financial Services London (IFSL) 5, 64, 86, 92, 112 International Monetary Fund 17 International Securities Exchange 138 International Swap Dealers Association 63 International Swaps and Derivatives Association 63 International Underwriting Association (IUA) 240 investment banking 5, 47–59 mergers and acquisitions (M&A) 56–58 see also capital raising investment companies 164–69 real estate 169 split capital 166–67 venture capital 167–68 investment funds 159–64 charges 163 investment strategy 164 fund of funds scheme 164 manager-of-managers scheme 164 open-ended investment companies (OEICs) 159 selection criteria 163 total expense ratio (TER) 164 unit trusts 159 Investment Management Association 156 Investment Management Regulatory Organisation 11 Johnson Matthey Bankers Limited 15–16 Joint Money Laundering Steering Group 221 KAS Bank 145 LCH.Clearnet Limited 66, 140 letter of credit (LOC) 23, 25–26 liability-driven investment 158 Listing Rules 43, 167, 173, 225, 228–29 Lloyd’s of London 8, 246–59 capital backing 249 chain of security 252–255 Central Fund 253 Corporation of Lloyd’s 248–49, 253 Equitas Reinsurance Ltd 251, 252, 255–56 Franchise Performance Directorate 256 future 258–59 Hardship Committee 251 history 246–47, 250–52 international licenses 258 Lioncover 252, 256 Member’s Agent Pooling Arrangement (MAPA) 249, 251 Names 248, one-year accounting 257 regulation 257 solvency ratio 255 syndicate capacity 249–50 syndicates 27 loans 23–24 recourse loan 24 syndicated loan 23–24 London Interbank Offered Rate (LIBOR) 74, 76 ____________________________________________________ INDEX 307 London Stock Exchange (LSE) 7, 8, 22, 29, 32, 64 Alternative Investment Market (AIM) 32 Main Market 42–43, 55 statistics 41 trading facilities 122–27 market makers 125–27 SETSmm 122, 123, 124 SETSqx 124 Stock Exchange Electronic Trading Service (SETS) 122–25 TradElect 124–25 users 127–29 Louvre Accord 114 Markets in Financial Instruments Directive (MiFID) 64, 121, 124, 125, 130, 144, 197–99, 277 best execution policy 130–31 Maxwell, Robert 186, 214, 282 mergers and acquisitions 56–58 current speculation 57–58 disclosure and regulation 58–59 Panel on Takeovers and Mergers 57 ‘white knight’ 57 ‘white squire’ 57 Merrill Lynch 136, 174, 186, 254 money laundering 216–22 Egmont Group 218 hawala system 217 know your client (KYC) 217, 218 size of the problem 222 three stages of laundering 216 Morgan Stanley 5, 136 multilateral trading facilities Chi-X 134–35, 141 Project Turquoise 136, 141 Munich Re 207 Nasdaq 124, 138 National Strategy for Financial Capability 269 National Westminster Bank 20 Nationwide Building Society 221 net operating cash flow (NOCF) see discounted cash flow analysis New York Federal Reserve Bank (Fed) 16 Nomads 45 normal market share (NMS) 132–33 Northern Rock 16 Nymex Europe 102 NYSE Euronext 124, 138, 145 options see derivatives Oxera 52  Parmalat 67, 232 pensions alternatively secured pension 290 annuities 288–89 occupational pension final salary scheme 285–86 money purchase scheme 286 personal account 287 personal pension self-invested personal pension 288 stakeholder pension 288 state pension 283 unsecured pension 289–90 Pensions Act 2007 283 phishing 200 Piper Alpha oil disaster 250 PLUS Markets Group 32, 45–46 as alternative to LSE 45–46, 131–33 deal with OMX 132 relationship to Ofex 46 pooled investments exchange-traded funds (ETF) 169 hedge funds 169–71 see also investment companies, investment funds post-trade services 140–50 clearing 140, 141–42 safekeeping and custody 143–44 registrar services 144 settlement 140, 142–43 real-time process 142 Proceeds of Crime Act 2003 (POCA) 211, 219, 220–21 Professional Securities Market 43–44 Prudential 20 purchasing power parity 118–19 reinsurance 260–68 cat bonds 264–65 dispute resolution 268 doctrines 263 financial reinsurance 263–64 incurred but not reported (IBNR) claims insurance securitisation 265 non-proportional 261 offshore requirements 267 proportional 261 Reinsurance Directive 266–67 retrocession 262 types of contract facultative 262 treaty 262 retail banking 20 retail investors 151–155 Retail Prices Index (RPI) 13, 87 264  308 INDEX ____________________________________________________ Retail Service Provider (RSP) network Reuters 35 Royal Bank of Scotland 20, 79, 221 73 Sarbanes–Oxley Act 233–34 securities 5, 29 Securities and Futures Authority 11 self-regulatory organisations (SROs) 192 Serious Crime Bill 213 settlement 11, 31, 140, 142–43 shareholder, rights of 29 shares investment in 29–32 nominee accounts 31 valuation 35–39 ratios 36–39 see also flotation short selling 31–32, 73, 100, 157 Society for Worldwide Interbank Financial Telecommunications (SWIFT) 119 Solvency II 244–245 Soros, George 114, 115 Specialist Fund Market 44 ‘square mile’ 4 stamp duty 72, 75, 166 Sterling Overnight Index Average (SONIA) 85 Stock Exchange Automated Quotation System (SEAQ) 7, 121, 126 Stock Exchange Electronic Trading Service (SETS) see Lloyd’s of London stock market 29–33 stockbrokers 33–34 advisory 33 discretionary 33–34 execution-only 34 stocks see shares sub-prime mortgage crisis 16, 89, 94, 274 superequivalence 43 suspicious activity reports (SARs) 212, 219–22 swaps market 7 interest rates 56 swaptions 68 systematic internalisers (SI) 137–38 Target2-Securities 147–48, 150 The Times 35, 53, 291 share price tables 36–37, 40 tip sheets 33 trading platforms, electronic 80, 97, 113, 117 tranche trading 123 Treasury Select Committee 14 trend theory 175–76 UBS Warburg 103, 136 UK Listing Authority 44 Undertakings for Collective Investments in Transferable Securities (UCITS) 156 United Capital Asset Management 95 value at risk (VAR) virtual banks 20 virt-x 140 67–68 weighted-average cost of capital (WACC) see discounted cash flow analysis wholesale banking 20 wholesale markets 78–80 banks 78–79 interdealer brokers 79–80 investors 79 Woolwich Bank 20 WorldCom 67, 232 Index of Advertisers Aberdeen Asset Management PLC xiii–xv Birkbeck University of London xl–xlii BPP xliv–xlvi Brewin Dolphin Investment Banking 48–50 Cass Business School xxi–xxiv Cater Allen Private Bank 180–81 CB Richard Ellis Ltd 270–71 CDP xlviii–l Charles Schwab UK Ltd lvi–lviii City Jet Ltd x–xii The City of London inside front cover EBS Dealing Resource International 110–11 Edelman xx ESCP-EAP European School of Management vi ICAS (The Inst. of Chartered Accountants of Scotland) xxx JP Morgan Asset Management 160–62 London Business School xvi–xviii London City Airport vii–viii Morgan Lewis xxix Securities & Investments Institute ii The Share Centre 30, 152–54 Smithfield Bar and Grill lii–liv TD Waterhouse xxxii–xxxiv University of East London xxxvi–xxxviii


pages: 347 words: 112,727

Rust: The Longest War by Jonathan Waldman

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Anton Chekhov, computer age, David Brooks, digital map, Exxon Valdez, Frederick Winslow Taylor, Golden Gate Park, index card, Isaac Newton, Mason jar, pez dispenser, Ralph Nader, RAND corporation, Ronald Reagan, Works Progress Administration, Y2K

Alarmed, Alyeska had IPEL reanalyze the data. The second analysis was worse: over 400 anomalies. “We thought we wouldn’t have a problem with corrosion,” Alyeska’s pigging engineer at the time said, “but our world changed when the pigs told us otherwise.” Nineteen eighty-nine was rough from the outset. First, in January Alyeska dug up the pipe and installed thirty sleeves. Then, in March there was the Exxon Valdez oil tanker spill. Cleanup notwithstanding, it had little to do with Alyeska. If anything, it revealed the merits of shipment by pipelines over barges—but the result was increased scrutiny and ill will. In June Alyeska ran its first high-resolution ultrasonic pig. It was made by NKK, and it could measure 10 percent wall-thickness loss. The three-ton, red-cupped, titanium tool was five times more precise than IPEL’s pig, accurate to the millimeter.

Severe corrosion in one of BP’s North Slope feeder lines caused a quarter-inch hole, and through it, five thousand barrels of crude spilled onto the tundra. Where Alaskans used to joke that BP stood for Big Provider, now they said it stood for Broken Pipeline, or Bad People, or even Bureaucratic Pandemonium. An Alyeska employee told me that BP was running a sprinkler system rather than a pipeline system. As with the Exxon Valdez, Alyeska had nothing to do with the goof-up, but it felt the ramification: heightened attention to corrosion. Under the spotlight, Alyeska decided to send a smart pig through TAPS immediately. That summer, Alyeska had just celebrated its thirtieth anniversary, having shipped more than 15 billion barrels of oil. That was 50 percent beyond what anyone had expected from the pipeline. Confidence outside the engineering department must have been high counting down to the pig run.


pages: 102 words: 27,769

Rework by Jason Fried, David Heinemeier Hansson

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call centre, Clayton Christensen, Dean Kamen, Exxon Valdez, fault tolerance, James Dyson, Jeff Bezos, Ralph Nader, risk tolerance, Ruby on Rails, Steve Jobs, Tony Hsieh, Y Combinator

You can’t hide anymore. These days, someone else will call you on it if you don’t do it yourself. They’ll post about it online and everyone will know. There are no more secrets. People will respect you more if you are open, honest, public, and responsive during a crisis. Don’t hide behind spin or try to keep your bad news on the down low. You want your customers to be as informed as possible. Back in 1989, the Exxon Valdez oil tanker spilled 11 million gallons of oil into Alaska’s Prince William Sound. Exxon made the mistake of waiting a long time before responding to the spill and sending aid to Alaska. Exxon’s chairman failed to go there until two weeks after the spill. The company held news briefings in Valdez, a remote Alaskan town that was difficult for the press to reach. The result: a PR disaster for Exxon that led the public to believe the company was either hiding something or didn’t really care about what had happened.* Contrast that Exxon story to the rupture of an Ashland Oil storage tank that spilled oil into a river near Pittsburgh around the same time.


pages: 113 words: 37,885

Why Wall Street Matters by William D. Cohan

Apple II, asset-backed security, bank run, Bernie Sanders, bonus culture, break the buck, buttonwood tree, corporate governance, corporate raider, creative destruction, Credit Default Swap, Donald Trump, Exxon Valdez, financial innovation, financial repression, Fractional reserve banking, Gordon Gekko, greed is good, income inequality, Joseph Schumpeter, London Interbank Offered Rate, margin call, money market fund, moral hazard, Potemkin village, quantitative easing, secular stagnation, Snapchat, South Sea Bubble, Steve Jobs, Steve Wozniak, too big to fail, WikiLeaks

Why wouldn’t we want to do everything we can to encourage the smooth operation of Milken’s machine? One of the final innovations to emerge from this period of remarkable financial alchemy came in 1994, at the still venerable, if not nearly so powerful as it once was, J.P. Morgan & Co. Exxon, a longtime client, wanted a $5 billion line of credit to cover potential liabilities related to the massive 1989 oil spill from the Exxon Valdez oil tanker in Prince William Sound, Alaska. The conundrum? The bank did not want to disappoint Exxon, but neither did it want to tie up so much capital in one marginally profitable, very risky loan. That’s when the British-born Blythe Masters, then twenty-five years old, came up with the idea of off-loading the risk of the loan to a third party, in exchange for a fee, thus skirting the regulatory requirement that J.P.


pages: 654 words: 191,864

Thinking, Fast and Slow by Daniel Kahneman

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Albert Einstein, Atul Gawande, availability heuristic, Bayesian statistics, Black Swan, Cass Sunstein, Checklist Manifesto, choice architecture, cognitive bias, complexity theory, correlation coefficient, correlation does not imply causation, Daniel Kahneman / Amos Tversky, delayed gratification, demand response, endowment effect, experimental economics, experimental subject, Exxon Valdez, feminist movement, framing effect, hindsight bias, index card, information asymmetry, job satisfaction, John von Neumann, Kenneth Arrow, libertarian paternalism, loss aversion, medical residency, mental accounting, meta analysis, meta-analysis, nudge unit, pattern recognition, Paul Samuelson, pre–internet, price anchoring, quantitative trading / quantitative finance, random walk, Richard Thaler, risk tolerance, Robert Metcalfe, Ronald Reagan, The Chicago School, The Wisdom of Crowds, Thomas Bayes, transaction costs, union organizing, Walter Mischel, Yom Kippur War

It is in fact an instance of an important limitation of that system. Because System 1 represents categories by a prototype or a set of typical exemplars, it deals well with averages but poorly with sums. The size of the category, the number of instances it contains, tends to be ignored in judgments of what I will call sum-like variables. Participants in one of the numerous experiments that were prompted by the litigation following the disastrous Exxon Valdez oil spill were asked their willingness to pay for nets to cover oil ponds in which migratory birds often drown. Different groups of participants stated their willingness to pay to save 2,000, 20,000, or 200,000 birds. If saving birds is an economic good it should be a sum-like variable: saving 200,000 birds should be worth much more than saving 2,000 birds. In fact, the average contributions of the three groups were $80, $78, and $88 respectively.

watch less television: Gabriel Lenz and Chappell Lawson, “Looking the Part: Television Leads Less Informed Citizens to Vote Based on Candidates’ Appearance,” American Journal of Political Science (forthcoming). absence of a specific task set: Amos Tversky and Daniel Kahneman, “Extensional Versus Intuitive Reasoning: The Conjunction Fallacy in Probability Judgment,” Psychological Review 90 (1983): 293–315. Exxon Valdez: William H. Desvousges et al., “Measuring Natural Resource Damages with Contingent Valuation: Tests of Validity and Reliability,” in Contingent Valuation: A Critical Assessment, ed. Jerry A. Hausman (Amsterdam: North-Holland, 1993), 91–159. sense of injustice: Stanley S. Stevens, Psychophysics: Introduction to Its Perceptual, Neural, and Social Prospect (New York: Wiley, 1975). detected that the words rhymed: Mark S.

., bridge in duration neglect duration weighting earthquakes eating eBay Econometrica economics; behavioral; Chicago school of; neuroeconomics; preference reversals and; rational-agent model in economic transactions, fairness in Econs and Humans Edge Edgeworth, Francis education effectiveness of search sets effort; least, law of; in self-control ego depletion electricity electric shocks emotional coherence, see halo effect emotional learning emotions and mood: activities and; affect heuristic; availability biases and; in basic assessments; cognitive ease and; in decision making; in framing; mood heuristic for happiness; negative, measuring; and outcomes produced by action vs. inaction; paraplegics and; perception of; substitution of question on; in vivid outcomes; in vivid probabilities; weather and; work and employers, fairness rules and endangered species endowment effect; and thinking like a trader energy, mental engagement Enquiry Concerning Human Understanding, An (Hume) entrepreneurs; competition neglect by Epley, Nick Epstein, Seymour equal-weighting schemes Erev, Ido evaluability hypothesis evaluations: joint; joint vs. single; single evidence: one-sided; of witnesses executive control expectation principle expectations expected utility theory, see utility theory experienced utility experience sampling experiencing self; well-being of; see also well-being expert intuition; evaluating; illusions of validity of; overconfidence and; as recognition; risk assessment and; vs. statistical predictions; trust in expertise, see skill Expert Political Judgment: How Good Is It? How Can We Know? (Tetlock) Exxon Valdez oil spill eyes, pupil dilation in face reading fairness fallacies; conjunction; narrative; planning; sunk-cost familiarity Far Side, The (Larson) fast and frugal heuristic fast thinking fatigue fear Fechner, Gustav feedback Feller, William financial crisis of 2008 fi nancial advisers and forecasters firefighters first impressions Fischhoff, Baruch flight instructors flood monitor Florida effect flow flowers syllogism Flyvbjerg, Bent focus focusing illusion fonts forecasts, see predictions and forecasts football game Ford Motor Company formulas; algorithms; Apgar scores; hostility to; for interviews; multiple regression formulation effects Fortune fourfold pattern; in legal cases Fox, Craig Fox, Seymour frames, framing; in Asian disease problem; in child exemption problem; in disclosures; emotional; fuel economy and; good; in KEEP-LOSE study; organ donation and; regulations on; in survival-mortality experiment; in ticket problem Frederick, Shane Freedman, David freedom Free to Choose (Friedman) frequency representation Frey, Bruno Friedman, Milton frowning; availability heuristic and; representativeness and gains Galinsky, Adam Gallup-Healthways Well-Being Index Galton, Francis gambles; bundling of; certainty effect and; emotional framing in; loss aversion in; lottery; mixed; and outcomes produced by action vs. inaction; possibility effect and; psychological value of; regret and; simple; St.


pages: 543 words: 157,991

All the Devils Are Here by Bethany McLean

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Asian financial crisis, asset-backed security, bank run, Black-Scholes formula, break the buck, call centre, collateralized debt obligation, corporate governance, corporate raider, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, Exxon Valdez, fear of failure, financial innovation, fixed income, high net worth, Home mortgage interest deduction, interest rate swap, laissez-faire capitalism, Long Term Capital Management, margin call, market bubble, market fundamentalism, Maui Hawaii, money market fund, moral hazard, mortgage debt, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative trading / quantitative finance, race to the bottom, risk/return, Ronald Reagan, Rosa Parks, shareholder value, short selling, South Sea Bubble, statistical model, telemarketer, too big to fail, value at risk, zero-sum game

If the government went along, every big bank in the world would clamor to buy credit protection on its loan portfolio. The market wouldn’t just be big; it would be huge. But for that to happen, the Federal Reserve would have to agree that credit default swaps did indeed transfer default risk. And who could say when, or even if, that would happen? In 1994, J.P. Morgan put together its first credit default swap. It came about as a result of the Exxon Valdez oil spill. The oil giant, facing the possibility of a $5 billion fine, drew down a $4.8 billion line of credit from J.P. Morgan. This put the bank in exactly the kind of position it didn’t want to be in. It couldn’t say no, because that would alienate Exxon. Yet the loan wasn’t going to make the bank much money, and it was going to tie up hundreds of millions of dollars in capital that would have to be placed in reserve.

Morgan LTCM collapse netting out quants’ development of regulatory efforts structured investment vehicles (SIVs) tranches of See also specific instruments Deutsche Bank, ABS index Dimon, Jamie Dodge, Patti Donilon, Tom Dooley, Bill Drexel Burnham Lambert Dubrish, Robert Dugan, John Dunne, Jimmy Dynamic hedging Dyron, Dick Edper Edwards, Jeff Eichel, Scott Eisman, Steve Empiris LLC Enron European Bank for Reconstruction and Development (EBRD) Evans, Gay Everquest Exception pricing system Exxon Valdez Fakahany, Ahmass Falcon, Armando, Jr. Fannie Mae accounting fraud, investigation of Bush era war with CEOs. See Johnson, Jim; Maxwell, David; Mudd, Daniel; Raines, Franklin Delano conforming mortgage market Countrywide mortgages sold to creation/functions of crisis of 1981 crisis of 2007 critics of debt acquisition, extent of (2007-2008) government bailout implicit government guarantee investor trust in lobbying by losses (2008) low-income persons, initiatives for mortgage stamping guarantee by OFHEO oversight.


pages: 412 words: 113,782

Business Lessons From a Radical Industrialist by Ray C. Anderson

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Albert Einstein, banking crisis, carbon footprint, centralized clearinghouse, clean water, cleantech, corporate social responsibility, Credit Default Swap, dematerialisation, distributed generation, energy security, Exxon Valdez, fear of failure, Gordon Gekko, greed is good, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), intermodal, invisible hand, late fees, Mahatma Gandhi, market bubble, music of the spheres, Negawatt, new economy, oil shale / tar sands, oil shock, old-boy network, peak oil, renewable energy credits, shareholder value, Silicon Valley, six sigma, supply-chain management, urban renewal, Y2K

If the old business practices are what got you into a fix, they probably won’t be much help in getting you out of it. Which business practices am I talking about? The ones that focus on producing, delivering, and discarding ever greater quantities of goods as a measure of our prosperity. You can see that something is just not right in the numbers when you realize that both Hurricane Katrina and the Exxon Valdez oil spill added to our gross domestic product. When a child falls so ill she must be taken to the emergency room (because she has no health insurance and no doctor), she’s increasing our GDP, too. How can any of that possibly make sense? If you bother to look, you will notice that the whole game of modern commerce is riddled with economic distortions that make it hard—even impossible—for markets to see, and respond to, the true costs of all that frantic producing and delivering and discarding.

See companies Covey, Stephen Craigavon, Northern Ireland, Interface facility creation care credit card debt curbside recycling programs customers attracted by environmental claims listening to cycles, nature’s way dams Dartmouth College debt Deering-Milliken deforestation Déjà vu carpet Dell Dell’Orco, Sergio dematerialization desert brine shrimp Diamond, Jared, Collapse dikes, failure of Dillon-Ridgley, Dianne dioxins Disney Corporation Diversity Connect Dodd, Bobby doing well by doing good dominion over the earth (biblical) Dow Chemicals Drake, Edwin Duke Energy DuPont Earth (planet) as Biblical garden danger faced by Eco Dream Team ecology Ecometrics economic logic economics, courses in Ecosense efficiency and fairness, linked and loss of resilience efficiency measures, useful, but limiting effluent pipes cutting emissions from inventory of inventory of emissions from Ehrlich, Paul and Anne, environmental impact equation of Einstein, Albert Eisenhower, Dwight electric transmission system electric utility industry embodied energy emissions, cutting Emory University end-of-pipe solutions Enel Latin America Energia Global energy clean (including solar) cutting back on use of government subsidies to price of renewable world demands engineering schools, sustainability courses in Enron entrepreneurship go/no-go decision point of training for Entropy carpet line entropy law environment, stewardship of environmental education environmental injustice zones environmentalism false claims suspicion of environmental laws and regulations Environmental Protection Agency environmental responsibility, and profit Epson Portland erosion, and floods ethanol fuels ethical sustainability ethics Evangelical Climate Initiative Evergreen Service Agreement evidence, waiting for last scrap of, before taking precautions externalities extracted minerals, must not increase in nature Exxon Valdez oil spill factories called “plants” (strangely) close to markets fairness, economic and efficiency, are linked Fairworks program faith farmers subsidies to Fastforward to 2020 program Fetz, Charles Fiji Water filtration financial industry, innovative instruments for energy saving financial meltdown of 2008 fish, polluted fishing industry Fitzgerald, Patrick Five P’s floods Fonterra food chain, concentration of contaminants in Ford, Henry forests, value of forever wild Forster, Piers fossil fuels counted as waste in Interface’s metrics dependence on end of age of energy from, not sustainable history of use of Framework Convention on Climate Change (UN) Friedman, Milton Frito-Lay division Fritts, Charles fuel economy mandates future embrace it (or be left behind) showing in the headlights future generations needs of their view of our present handling of the three crises Gallup Gandhi, Mahatma garden, Earth as (in Bible) Genentech General Electric (GE) Georgia Tech Institute for Sustainable Technology and Development (ISTD) Institute of Sustainable Systems (ISS) Germany GlasBac GlasBac RE global climate change doing nothing about, evil of skepticism about globalization, absurd supply chains in Global ReLeaf program global warming.

Making Globalization Work by Joseph E. Stiglitz

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affirmative action, Andrei Shleifer, Asian financial crisis, banking crisis, barriers to entry, Berlin Wall, business process, capital controls, central bank independence, corporate governance, corporate social responsibility, currency manipulation / currency intervention, Doha Development Round, Exxon Valdez, Fall of the Berlin Wall, Firefox, full employment, Gini coefficient, global reserve currency, Gunnar Myrdal, happiness index / gross national happiness, illegal immigration, income inequality, income per capita, incomplete markets, Indoor air pollution, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), inventory management, invisible hand, John Markoff, Kenneth Arrow, Kenneth Rogoff, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, microcredit, moral hazard, North Sea oil, offshore financial centre, oil rush, open borders, open economy, price stability, profit maximization, purchasing power parity, quantitative trading / quantitative finance, race to the bottom, reserve currency, rising living standards, risk tolerance, Silicon Valley, special drawing rights, statistical model, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, trickle-down economics, union organizing, Washington Consensus, zero-sum game

While they seldom reap the full value of the increase in profits that follow from their good decisions, even more seldom do they pay the full social costs of their bad decisions.`° It is too easy for corporate managers to hide behind the corporate veil. Even after he admitted that he had been drinking prior to boarding the ship, Joseph Hazelwood, the captain of the ship responsible for the 1989 Exxon Valdez oil spill—a spill which did environmental damage valued in the billions—was given only a slap on the wrist, with a fine of $51,000 and 1,000 hours picking up garbage along Anchorage-area highways. The Indian government did try to prosecute Union Carbide executives for the thousands of deaths at Bhopal, where a chemicals plant exploded in 1984, but Union Carbide was an American company and the United States refused to cooperate.

s pressure for secondary boycotts from, 289-90 346 INDEX European Central Bank, 280 European Union, 39, 72, 80, 83, 85, 89, 98, 117, 134, 300n anti-monopoly oversight in, 200, 202, 203 constitutional crisis in, 256 garment factories in, 305n and global monopolies, 200 patents granted on traditional knowledge in, 126-27 subsidies and, 307n use of WTO enforcement mechanisms by, 76 U.S.'s jurisdiction conflict with, 201 "Everything But Arms" (EBA) initiative, 306n exchange rate, 218, 220, 236, 246, 288 in global greenback system, 263 instability of, 247, 255, 261 management of, 247, 248 political dimension of, 258-60 in U.S., 254 exports, 33, 72, 248, 253 extractive industries transparency initiative, 155-56 ExxonMobil, 139, 187, 279, 321n Exxon Valdez, 187, 193 fairness, 278-79 fair trade, 6, 15-16, 24, 61-101 escalating tariffs and, 87 extended market access proposal for, 82-85 free trade vs., 73-76 regimes for developing countries, 82-85 and unskilled-labor intensive services and migration, 88-90 "fair trade laws," 73, 304n Farmanguinhos, 121 farmers, 7, 304n, 307n FedEx, 71 fertilizers, 86 fiat money, 246, 260 see also global greenback system Fifteenth International AIDS Conference, 103 Financial Times, 143 Fischer, Irving, 334n fishing, global industry of, 162, 163 Florida, 69 folk remedies, 125-27 see also traditional knowledge Ford, 172 Ford, Henry, 109, 110 foreign aid, 14-15, 57 Foreign Corrupt Practices Act, 139, 208, 210 foreign investment, 33-34, 41, 42, 43, 46, 54, 188, 196, 257, 272 Formosa Plastics Corporation, 33 Fox, Vicente, 64 France, 68 bribery in, 139, 319n Egypt's finances controlled by, 214 greenhouse gases from, 169, 172, 182 Kyoto Protocol and, 169 Mexico invaded by, 214 subsidies in, 130 tariffs of, 303n Freeland, Chrystia, 143 free market, xvi, 26 free trade, x, 6, 66-67, 302n, 303n fair trade vs., 73-76 for India, 6 rules of origin and, 95-96 see also trade agreements Friedman, Thomas L., 56, 300n G-8, 15, 209, 227 Garcia Merou, Martin, 213 GDP, xviii, 44, 153, 154, 181, 276, 322n, 324n of Argentina, 212, 222, 240 as measurement of development success, 45, 50, 130 of Moldova, 211 ratio of debt to, 218 of Russia, 234, 242 General Agreement on Tariffs and Trade (GATT), 75, 315n Uruguay Round, 75-76, 77-78, 84, 88, 105, 274-75, 306n General Electric, 65, 191, 201 General Motors, 65, 172, 187, 189, 279 generic drugs, 78, 104, 120-22, 315n-16n genetically modified foods, 94-95, 129 genetic structure, patents on, 13-14 Geneva, Switzerland, 278, 305n Georgia (nation), 140 Georgia (state), 192 Germany: greenhouse gases from, 172 tariffs of, 303n Treaty of Versailles and, 239 Venezuelan naval expedition oh 213 Ghana, 41, 331n Giffen, James, 139 INDEX Gilbert, Walter, 314n Gini coefficient, 294n Glacier National Park, 161 global economy, 5, 244 instability and volatility of, ix, xi, 245-46 legal framework for, 207-8 as propped up by U.S. purchasing power, 251-52, 261 as weakened by global reserve system, 250-54 global financial institutions, xii, xv, 3-4, 236 accountability oh 19, 283-84 democratic deficit in, 21 flawed system oh 17-18 see also International Monetary Fund; World Bank global financial system, see global reserve system global greenback system, 260-68, 335n, 336n administration oh 266 allocation policy oh 266-68 cycle of crisis broken by, 264-65 functions oh 262-63 stability as increased by, 263-64 globalization, 5-6 backlash against, 23, 269, 288 challenges to, 273-76 corporations at center oh xii-xiv, xv, 188, 197-98 democratization of, 269-92 exploitation of resources and, 149 first modern protest against, 7 hope oh 4 nation-state and, 19-24 political forces and, xiii-xiv, xviii, 4, 269, 291 reform oh 6-7, 13-19 scope oh 4, 56-59 two faces oh 7-13 Globalization and Its Discontents (Stiglitz), ix, x, xii, xiii, 293n Global Leadership Forum, 320n Global Monetary Authority, 335n global reserve system, 245-68, 277, 281 as cause of instability, 254-60 decline in aggregate demand as result oh 250-51, 252-53 diversification of currency in, 254-56, 259 dollar as major currency for, 245, 246, 248-49, 253 downward bias oh 262 347 low interest rate on dollar in, 245, 249-50, 255-56, 261 regional cooperatives and, 260-61 reforms oh 260-68, 286 as self-defeating, 254-55, 263 U.S. as major beneficiary oh 250 see also global greenback system global social contract, 285-87 global warming, 17, 21, 24, 161-86, 280, 284, 285, 288, 310n common tax proposal for, 181-84 as downplayed by GWB, 168 incontrovertible facts about, 166 industrialization and, 171-72, 173 privatization and, 163 and rising sea levels, 164-65, 167 Global Witness, 156 gold, as historical currency, 246 governance, 54-56, 128 see also corporate governance government, 47 balance between market and, xv cartel creation and, 201 development role of East Asian, 29, 30, 31-32, 45-46 downscaling oh 17 educational investment by, 28 environmental protection by, 197 equity promotion by, 27-28 foreign investment managed by, 33 infrastructure and, 27-28, 49 regulation and, 28 unemployment and, 253, 273 Grameen micro-credit bank, 51-52 "Grand Bargain," 77 grants, 14 Great Britain, 40, 42 Egypt occupied by, 214 energy efficiency oh 170 tariffs of, 303n Venezuelan naval expedition oh 213 Great Depression, xvii-xviii, 68, 74, 214, 236, 334n greenhouse gas emissions, 131, 161, 165, 166, 177, 183, 266, 280 from agriculture, 323n-24n deforestation and, 178-80 Rio agreement's curtailing oh 168-69 of U.S., 165, 171-74, 176 see also Kyoto Protocol Green net national product (Green NNP), 154 Green Revolution, 42, 43 348 INDEX Greenspan, Alan, 217 Grossman, Sanford J., 327n gross national happiness (GNH), 45 growth, sustainability of, 26, 36, 45 Guantanamo Bay, 151 guarantee fund, 124 Guatemala, 78 Gulf Stream, 166-67 Guyana, 307n, 331n Haile Selassie, 229 Haiti, 31, 307n Halonen, Tarja Kaarina, 8 Hardin, Garrett, 322n Harvard University, 242 Hastert, J.


pages: 692 words: 127,032

Fool Me Twice: Fighting the Assault on Science in America by Shawn Lawrence Otto

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affirmative action, Albert Einstein, anthropic principle, Berlin Wall, Brownian motion, carbon footprint, Cepheid variable, clean water, Climategate, Climatic Research Unit, cognitive dissonance, Columbine, commoditize, cosmological constant, crowdsourcing, cuban missile crisis, Dean Kamen, desegregation, double helix, energy security, Exxon Valdez, fudge factor, ghettoisation, Harlow Shapley and Heber Curtis, Harvard Computers: women astronomers, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Louis Pasteur, mutually assured destruction, Richard Feynman, Richard Feynman, Ronald Reagan, Saturday Night Live, shareholder value, sharing economy, smart grid, Solar eclipse in 1919, stem cell, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, University of East Anglia, War on Poverty, white flight, Winter of Discontent, working poor, yellow journalism, zero-sum game

These kinds of vehicles cause private interests to internalize the risks they are undertaking and recognize them ahead of the fact, instead of dealing with them solely through law and litigation afterward—an idea that has been developing since the early 1980s as a market-based, more efficient alternative to the “command and control” method of law and litigation.29 The latter system is the one we currently use for mitigating environmental damage. It’s inefficient because it doesn’t motivate prevention, it requires costly government monitoring of behavior, it shifts the burden of proof to the public, and it seeks reparations only after the damage is done. The Exxon Valdez oil spill is a case in point: Litigation took decades to make it through the courts and was ultimately resolved for a fraction of the actual loss. A year after the Deepwater Horizon spill, during which BP CEO Tony Hayward said, “We will make this right,” the marshes were dead, dolphins were spontaneously aborting by the score, and the Gulf fishing industry was deeply threatened. Clearly, this route to accountability is ineffective, unjust, and inefficient.

See also Climate change Environmental risks, covering, 265–67 Equality, 120–21 Ethics, 14–15, 25, 78–79, 93, 97, 101–2, 299, 302–3 Europe, 13, 261–62 Evangelical movement, 107–11 Evolution alternative theories to, 15, 18, 164–70, 178, 184–85 antiscience politics and, 60, 63–65 Bachmann and, 165–69 biology and, 164 contentiousness of, 163–64 Darrow and, 65 in Dover (Delaware) school, 173 facts and, 44, 164, 167 framing question about, 176–77 importance of teaching, 184–85 McPherson and, 63–65 medicine and, 164–65 Olson documentary discussing, 289 other science issues and, linking to, 178 Palin and, 165 public sentiment and, 173 Scopes Monkey Trial and, 60, 64–65, 164 Scott (Eugenie) and, 179–80 surveys about, 174–76 sweet spot in politics and, 174 theory, 44, 167 Westphal and, 184 Externalities, 253 Exxon Valdez oil spill lawsuit, 266 F Fairness doctrine, 143–46 Fallout shelters, 84–85 Falsifiability of theory and, 278–79 Feedback loop, 286 Feely, Richard, 263–65 Feinberg, Matthew, 283–85 Ferris, Timothy, 30, 38, 56 Feyerabend, Paul, 121–22 Feynman, Richard, 177, 273 Field-dependent personalities, 144–45 Field-independent personalities, 144–45 Fire, concept of, 118–19 Fish, Stanley, 130, 312 Fitzgerald, F.

The Corporation: The Pathological Pursuit of Profit and Power by Joel Bakan

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Berlin Wall, Cass Sunstein, corporate governance, corporate personhood, corporate social responsibility, creative destruction, energy security, Exxon Valdez, IBM and the Holocaust, joint-stock company, laissez-faire capitalism, market fundamentalism, Naomi Klein, new economy, race to the bottom, Ralph Nader, Ronald Reagan, shareholder value, South Sea Bubble, The Wealth of Nations by Adam Smith, Triangle Shirtwaist Factory, urban sprawl

The corporation, as they say, is deliberately pro- Page 73 THE CORPORATION 7:: grammed, indeed legally compelled, to externalize costs without regard for the harm it may cause to people, communities, and the natural environment. Every cost it can unload onto someone else is a benefit to itself, a direct route to profit. Patricia Anderson's family's burns-externalities; Wendy D's exploitation and misery-externalities . These and a thousand other points of corporate darkness, from Bhopal and the Exxon Valdez to epidemic levels of worker injury and death and chronic destruction of the environment, are the price we all pay for the corporation's flawed character." The 1911 Triangle Shirtwaist Factory disaster stands as a notorious example of a company's callous disregard for its employees. The owners of the factory in lower Manhattan's garment district had kept their employees, mostly young immigrant women, locked in to prevent them from leaving their workstations and thus slowing production .


pages: 168 words: 47,972

Vagabonding: An Uncommon Guide to the Art of Long-Term World Travel by Rolf Potts

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dematerialisation, Exxon Valdez, financial independence, follow your passion, George Santayana, Lao Tzu, large denomination, personalized medicine, Ralph Waldo Emerson, the map is not the territory

And while his later travels took him to budding American outposts such as New Orleans and Denver, it is this celebration of simple movement and possibility that gives “Song of the Open Road” its visceral and inclusive energy: To see nothing anywhere but what you may reach it and pass it, To conceive no time, however distant, but what you may reach it and pass it, To look up or down no road but it stretches and waits for you, To know the universe itself as a road, as many roads, as roads for traveling souls. CHAPTER 3 From all your herds, a cup or two of milk, From all your granaries, a loaf of bread, In all your palace, only half a bed: Can man use more? And do you own the rest? — ANCIENT SANSKRIT POEM Keep It Simple In March 1989, the Exxon Valdez struck a reef off the coast of Alaska, resulting in the largest oil spill in U.S. history. Initially viewed as an ecological disaster, this catastrophe did wonders to raise environmental awareness among average Americans. As television images of oil-choked sea otters and dying shorebirds were beamed across the country, pop environmentalism grew into a national craze. Instead of conserving more and consuming less, however, many Americans sought to save the earth by purchasing “environmental” products.


pages: 278 words: 82,069

Meltdown: How Greed and Corruption Shattered Our Financial System and How We Can Recover by Katrina Vanden Heuvel, William Greider

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Asian financial crisis, banking crisis, Bretton Woods, capital controls, carried interest, central bank independence, centre right, collateralized debt obligation, conceptual framework, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, declining real wages, deindustrialization, Exxon Valdez, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, floating exchange rates, full employment, housing crisis, Howard Zinn, Hyman Minsky, income inequality, information asymmetry, John Meriwether, kremlinology, Long Term Capital Management, margin call, market bubble, market fundamentalism, McMansion, money market fund, mortgage debt, Naomi Klein, new economy, offshore financial centre, payday loans, pets.com, Plutocrats, plutocrats, Ponzi scheme, price stability, pushing on a string, race to the bottom, Ralph Nader, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, sovereign wealth fund, structural adjustment programs, The Great Moderation, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, wage slave, Washington Consensus, women in the workforce, working poor, Y2K

Painful as the bailout cost will be, it is not nearly so painful and dangerous to the economic health of America as the shift in and concentration of the control of credit, which we are already beginning to see. Ten years ago there were about 4,500 S&Ls in the country. Now there are fewer than 3,000. By the time the bailout storm troops get through selling them off, the number is expected to be down around 1,500, with a corresponding drop in mortgage money. Most will have disappeared, via mergers, into super-S&Ls and superbanks whose social usefulness will be equivalent to supertankers like the Exxon Valdez. The moneylenders, who were willing to take any risk for big borrowers in the 1980s, are now reluctant to take any risk for small borrowers. This, by the way, makes them lawbreakers, but they don’t seem worried about that. The Community Reinvestment Act of 1977 declares that banks and S&Ls are chartered to serve the public and that they must help and give credit to low-and moderate-income citizens and small businesses.


pages: 300 words: 78,475

Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream by Arianna Huffington

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American Society of Civil Engineers: Report Card, Bernie Madoff, Bernie Sanders, call centre, carried interest, citizen journalism, clean water, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, David Brooks, extreme commuting, Exxon Valdez, full employment, greed is good, housing crisis, immigration reform, invisible hand, knowledge economy, laissez-faire capitalism, late fees, market bubble, market fundamentalism, Martin Wolf, medical bankruptcy, microcredit, new economy, New Journalism, offshore financial centre, Ponzi scheme, Report Card for America’s Infrastructure, Richard Florida, Ronald Reagan, Rosa Parks, single-payer health, smart grid, The Wealth of Nations by Adam Smith, too big to fail, transcontinental railway, trickle-down economics, winner-take-all economy, working poor, Works Progress Administration

The crooked firm’s chairman, Kenneth Lay, and his senior management doled out $2.4 million to federal candidates in the 2000 elections and were among George W.’s biggest donors.81 Enron also spent $3.45 million lobbying Congress in 1999 and 2000, all of which helped the outfit push its “deregulation” agenda—which really meant creating enough “wiggle room” to get away with wholesale fraud.82 “Kenny Boy” Lay was known to boast about his “friends at the White House”—friends who helped him engineer the replacement of the head of the Federal Energy Regulatory Commission, the agency charged with regulating Enron’s core business.83, 84 He also had a lot of input on energy policy at the Bush White House: Vice President Dick Cheney and his staff had six meetings with Enron representatives—including two with Lay—as part of their energy task force.85, 86 The last of those meetings took place six days before Enron was forced to reveal it had vastly overstated its earnings, starting the energy giant’s slide into bankruptcy.87 Another energy company, Upper Big Branch mine operator Massey Energy, has also realized the investment value of buying friends in high places. Back in 2000, Massey was responsible for a coal slurry spill in Kentucky that was three times larger than the Exxon Valdez oil spill.88 The company very successfully limited the damage—not to the environment, but to its bottom line.89 According to Jack Spadaro, a Mine Safety and Health Administration engineer investigating the spill, once Kentucky senator Mitch McConnell’s wife, Elaine Chao, became secretary of labor—the labor department oversees the MSHA—she put on the brakes.90 Two years after the spill, Massey was assessed a slap-on-the-wrist $5,600 fine.


pages: 264 words: 79,589

Kingpin: How One Hacker Took Over the Billion-Dollar Cybercrime Underground by Kevin Poulsen

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Apple II, Brian Krebs, Burning Man, corporate governance, dumpster diving, Exxon Valdez, Hacker Ethic, hive mind, index card, McMansion, Mercator projection, offshore financial centre, packet switching, pirate software, Ponzi scheme, Robert Hanssen: Double agent, Saturday Night Live, Silicon Valley, Steve Jobs, Steve Wozniak, Steven Levy, traffic fines, web application, WikiLeaks, zero day, Zipcar

It boiled down to that single line. It accepted an inquiry from the Internet, as it should, and copied it byte for byte into the temporary buffer “anbuf” in the server’s memory. But it didn’t properly check the size of the incoming data. Consequently, a hacker could transmit a deliberately overlong query to a BIND server, overflow the buffer, and spill data into the rest of the computer’s memory like oil from the Exxon Valdez. Performed haphazardly, such an attack would cause the program to crash. But a careful hacker could do much worse. He could load the buffer with his own small snippet of executable computer code, then he could keep going, tripping cautiously all the way to the top of the program’s memory space, where a special short-term storage area called the “stack” resides. The stack is where the computer’s processor keeps track of what it’s doing—every time a program diverts the computer off to a subroutine, the processor pushes its current memory address onto the stack, like a bookmark, so it knows where to return to when it’s done.


pages: 233 words: 73,772

The Secret World of Oil by Ken Silverstein

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business intelligence, clean water, corporate governance, corporate raider, Donald Trump, energy security, Exxon Valdez, failed state, Google Earth, offshore financial centre, oil shock, paper trading, rolodex, Ronald Reagan, WikiLeaks, Yom Kippur War

They got the exemption.”21 And over the years they got many more. All told the industry enjoys significant exemptions from numerous environmental statutes, including the Clean Water Act, the Safe Drinking Water Act, the Clean Air Act, and the National Environmental Policy Act—the “Magna Carta” of environmental legislation passed in 1970. The Oil Pollution Act approved by Congress in the wake of the Exxon Valdez spill capped civil liability for oil companies at $75 million. Efforts to raise that figure to $75 billion after the BP Horizon spill were blocked in the Senate, with Louisiana Democrat Mary Landrieu leading the resistance. “It’s terribly difficult to get beyond denial, that’s the first step, and the big agony,” Oliver Houck told me when we met in New Orleans. “But they’ve known all along what harm they were doing and ignored it, just like the tobacco industry and nuclear industry and asbestos manufacturers.


pages: 240 words: 73,209

The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment by Guy Spier

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Albert Einstein, Atul Gawande, Benoit Mandelbrot, big-box store, Black Swan, Checklist Manifesto, Clayton Christensen, Daniel Kahneman / Amos Tversky, Exxon Valdez, Gordon Gekko, housing crisis, information asymmetry, Isaac Newton, Kenneth Arrow, Long Term Capital Management, Mahatma Gandhi, mandelbrot fractal, NetJets, pattern recognition, pre–internet, random walk, Ronald Reagan, South Sea Bubble, Steve Jobs, winner-take-all economy, young professional, zero-sum game

Given that nobody is a better investor in banks, Buffett’s seal of approval meant a lot. For good measure, at least half of Bank of America’s rivals had fallen by the wayside, leaving the company in an even stronger position. Smaller banks would struggle to compete, given the mounting cost of technology in the banking sector. And the legal risks facing the bank seemed lower than most people realized: after all, the litigation over the Exxon Valdez oil spill is still going on after 25 years. So it seemed likely to us that the banking sector could drag out any lawsuits for many years, providing ample time to cover the potential cost of any claims. I ended up investing heavily in an array of money-center banks whose stocks subsequently rebounded, much as Warren, Mohnish, and I had expected. My familiarity with bridge had helped me to become more adept at operating amid this kind of uncertainty.


pages: 272 words: 76,089

Billions & Billions: Thoughts on Life and Death at the Brink of the Millennium by Carl Sagan

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Albert Einstein, anti-communist, clean water, cosmic abundance, dark matter, demographic transition, Exxon Valdez, F. W. de Klerk, germ theory of disease, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invention of radio, invention of the telegraph, invention of the telephone, Isaac Newton, Mikhail Gorbachev, pattern recognition, planetary scale, prisoner's dilemma, profit motive, Ralph Waldo Emerson, Ronald Reagan, stem cell, the scientific method, Thomas Malthus, zero-sum game

When such cost comparisons are made, the accountants keep two sets of books—one for public consumption and the other revealing the true costs. The cost of crude oil in recent years has been about $20 a barrel. But U.S. military forces have been assigned to protect foreign sources of oil, and considerable foreign aid is granted to nations largely because of oil. Why should we pretend this isn't part of the cost of oil? We abide ecologically disastrous petroleum spills (such as the Exxon Valdez) because of our appetite for oil. Why pretend this isn't part of the cost of oil? If we add in these additional expenses, the estimated price becomes something like $80 a barrel. If we now add the environmental costs that using this oil levies on the local and global environments, the real price might be hundreds of dollars a barrel. And when protecting the oil motivates a war, as for example the one in the Persian Gulf, the cost becomes far higher, and not just in dollars.


pages: 270 words: 79,992

The End of Big: How the Internet Makes David the New Goliath by Nicco Mele

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3D printing, 4chan, A Declaration of the Independence of Cyberspace, Airbnb, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, Apple's 1984 Super Bowl advert, barriers to entry, Berlin Wall, big-box store, bitcoin, business climate, call centre, Cass Sunstein, centralized clearinghouse, Chelsea Manning, citizen journalism, cloud computing, collaborative consumption, collaborative editing, commoditize, creative destruction, crony capitalism, cross-subsidies, crowdsourcing, David Brooks, death of newspapers, Donald Trump, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, Fall of the Berlin Wall, Filter Bubble, Firefox, Galaxy Zoo, global supply chain, Google Chrome, Gordon Gekko, Hacker Ethic, Jaron Lanier, Jeff Bezos, jimmy wales, John Markoff, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, Lean Startup, Mark Zuckerberg, minimum viable product, Mohammed Bouazizi, Mother of all demos, Narrative Science, new economy, Occupy movement, old-boy network, peer-to-peer, period drama, Peter Thiel, pirate software, publication bias, Robert Metcalfe, Ronald Reagan, Ronald Reagan: Tear down this wall, sharing economy, Silicon Valley, Skype, social web, Steve Jobs, Steve Wozniak, Stewart Brand, Stuxnet, Ted Nelson, Telecommunications Act of 1996, telemarketer, The Wisdom of Crowds, transaction costs, uranium enrichment, Whole Earth Catalog, WikiLeaks, Zipcar

You are sent a galaxy image (a program looks at all the data and decides if an object is a galaxy or not) and asked if it’s an elliptical, a merger (a product of two galaxies colliding), or a spiral. You click the appropriate button, and the next galaxy is automatically served to you.”30 In the first few months after its launch, 80,000 volunteers classified more than 10 million images of galaxies. The crowdsourcing of science uncovers fascinating opportunities. Almost twenty years after the Exxon Valdez oil spill, scientists working on the cleanup grappled with 20,000 gallons of oil that still lay at the bottom of the Prince William Sound. Because of Alaska’s cold temperatures, oil thickened and hardened to a cement-like consistency, confounding pumping equipment. The nonprofit Oil Spill Recovery Institute opened the problem up to anyone, offering a $20,000 prize for a viable solution. The institute posted the challenge on InnoCentive, a Web start-up that works with companies and nonprofits to create contests for solving significant scientific and engineering challenges.


pages: 898 words: 266,274

The Irrational Bundle by Dan Ariely

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accounting loophole / creative accounting, air freight, Albert Einstein, Alvin Roth, assortative mating, banking crisis, Bernie Madoff, Black Swan, Broken windows theory, Burning Man, business process, cashless society, Cass Sunstein, clean water, cognitive dissonance, computer vision, corporate governance, credit crunch, Credit Default Swap, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, end world poverty, endowment effect, Exxon Valdez, first-price auction, Frederick Winslow Taylor, fudge factor, George Akerlof, Gordon Gekko, greed is good, happiness index / gross national happiness, Jean Tirole, job satisfaction, Kenneth Arrow, knowledge economy, knowledge worker, lake wobegon effect, late fees, loss aversion, Murray Gell-Mann, new economy, Peter Singer: altruism, placebo effect, price anchoring, Richard Feynman, Richard Feynman, Richard Thaler, Saturday Night Live, Schrödinger's Cat, second-price auction, shareholder value, Silicon Valley, Skype, software as a service, Steve Jobs, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, ultimatum game, Upton Sinclair, Walter Mischel, young professional

For example, a few years ago a two-year-old white terrier named Forgea spent three weeks alone aboard a tanker drifting in the Pacific after its crew abandoned ship. I’m sure Forgea was adorable and didn’t deserve to die, but one can ask whether, in the grand scheme of things, saving her was worth a twenty-five-day rescue mission that cost $48,000 of taxpayers’ money—an amount that might have been better spent caring for desperately needy humans. In a similar vein, consider the disastrous oil spill from the wrecked Exxon Valdez. The estimates for cleaning and rehabilitating a single bird were about $32,000 and for each otter about $80,000.19 Of course, it’s very hard to see a suffering dog, bird, or otter. But does it really make sense to spend so much money on an animal when doing so takes away resources from other things such as immunization, education, and health care? Just because we care more about vivid examples of misery doesn’t mean that this tendency always helps us to make better decisions—even when we want to help.

T. C. Schelling, “The Life You Save May Be Your Own,” in Problems in Public Expenditure Analysis, ed. Samuel Chase (Washington, D.C.: Brookings Institution, 1968). 18. See Paul Slovic, “ ‘If I Look at the Mass I Will Never Act’: Psychic Numbing and Genocide,” Judgment and Decision Making 2, no. 2 (2007): 79–95. 19. James Estes, “Catastrophes and Conservation: Lessons from Sea Otters and the Exxon Valdez,” Science 254, no. 5038 (1991): 1596. 20. Samuel S. Epstein, “American Cancer Society: The World’s Wealthiest ‘Nonprofit’ Institution,” International Journal of Health Services 29, no. 3 (1999): 565–578. 21. Catherine Spence, “Mismatching Money and Need,” in Keith Epstein, “Crisis Mentality: Why Sudden Emergencies Attract More Funds than Do Chronic Conditions, and How Nonprofits Can Change That,” Stanford Social Innovation Review, spring 2006: 48–57. 22.

., 187–88 hedonic treadmill and, 175 placing limits on, 186–87 reducing, 185–86 spacing of, 185, 186 contrafreeloading, 60–63 Jensen’s study of, 60–62, 63 standard economic view at odds with, 62–63 Converse, 95 cooking: children’s involvement in, 121 enjoyment factor and, 62n, 105–6 semi-preprepared food and, 85–88 CO2 emissions, 251–52 counting strategies, 282–83 Count of Monte Cristo, The (Dumas), 123 creation, pride of: ideas and, see Not-Invented-Here (NIH) bias self-made goods and, see IKEA effect creativity, bonuses and improvements in, 47–48 Csíkszentmihályi, Mihály, 49 cultures, organizational: acronyms and, 120 Not-Invented-Here bias and, 119–21 customer revenge, 131–51 against airlines, 142–43 apologies and, 149–51, 152 author’s experience with Audi customer service and, 131–36, 137, 147–49, 153–54 distinction between agents and principals and, 144–47 Farmer and Shane’s “Yours Is a Very Bad Hotel” and, 140–41, 146 fictional case study for Harvard Business Review on, 147–49 increase in, 143 Neistat brothers’ video on Apple’s customer service and, 141–42 passage of time and, 151 phone call interruption experiments on, 135–39, 145–46, 150–51 customization, 94–96 of cars, 88, 89, 94 effort expended in, 89, 95–96 overvaluation despite removing possibility of, 96 of shoes, 95, 96 D Dallaire, Roméo, 255 Darfur, 238, 253 Dart Ball game, 23, 34 Darwin, Charles, 157 dating, 191–235 market failures in, 213–15, 216–17, 220–21, 230–32, 233–35 playing hard to get and, 104 standard practice of, 224–25, 227–28 yentas (matchmakers) and, 213 see also assortative mating; online dating; speed dating decision making: author’s medical care and, 284–88 cooling off before, 257, 279 emotions and, 261–77 gender differences and, 274–76 irreversible decisions and, 285, 286 rationalization of choices in, 287 from rational perspective, 5–6 short-term, long-term decisions affected by, 264–65, 270–74, 276–77 stability of strategies for, 261–65; see also self-herding ultimatum game and, 265–70, 275–76 dentistry, adaptation to pain and, 161–62 design, taking people’s physical limitations into account in, 230–32 destroying work in front of workers, 74–76 Dichter, Ernest, 86 disease: adaptation to pain and, 165, 167 preventative health care and, 251, 256 “survivor” rhetoric and, 241–42 Disney, 154 distraction, performance-based incentives and, 30, 36 division of labor, 77–80 IT infrastructure and, 77, 79–80 Marx’s alienation notion and, 79 Smith’s observations on, 77–78 divorce, foreseeing outcome of, 173 Dodson, John, 18–20, 22, 31, 47 do-it-yourself projects, see IKEA effect Donath, Judith, 225 Dostoyevsky, Fyodor, 157 Doubletree Club, Houston, 140–41, 146 dreams, author’s self-image in, 182–83 DreamWorks SKG, 154 driving: momentary anger during, 261 safety precautions and, 6–7 texting during, 6, 7, 8 see also cars drop-in-the-bucket effect, 244–45, 252, 254–55 Dumas, Alexandre, 123 E Eastwick, Paul, 172–73 Edison, Thomas, 117–19, 122 effort: increase in value related to, 89, 90, 95–96, 105–6; see also IKEA effect joy derived from activity and, 71–72 meaningful work conditions and, 72 ownership of ideas and, 114–16 see also labor egg theory, 86–88 Eisner, Michael, 154 electric chair, 119 electricity, alternating current (AC) vs. direct current (DC), 117–19 emotional cascades, 265–78 gender differences and, 274–76 romantic relationships and, 277–78 ultimatum game and, 265–76 emotional priming: empathy for plight of others and, 246–48 ultimatum game and, 268–70 emotions, 43, 237–79 appeals to, willingness to help others and, 240–42, 248–50, 253–54, 256 decision making and, 261–77; see also decision making in past, humans’ poor memory of, 264 transience of, 257, 261, 270 see also empathy; negative feelings, acting on empathy: animals’ suffering and, 249, 252 apathy toward statistical victims and, 238–41, 242, 246, 247–49, 252–53 Baby Jessica saga and, 237–38 calculating vs. emotional priming and, 246–48 clear moral principles and, 255 closeness and, 243, 245, 254 drop-in-the-bucket effect and, 244–45, 252, 254–55 emotional appeals and, 240–42, 248–50, 253–54, 256 global warming and, 251–52 identifiable victim effect and, 239–42, 248, 256 overcoming barriers to, 252–56 rules to guide our behavior and, 254–55 thought experiment of drowning girl and, 242–43, 245 toward one person vs. many in need, 237–56 vividness and, 24, 243n, 244, 245 endowment effect, 285, 286 Enron, 216 evolution, mismatch between speed of technological development and, 8–9 experiments, 10–11, 288–95 business or public policy and, 292–94, 295 of Gideon, 288–89 medical practice and, 289–92 rational economists’ criticisms of, 49–51 see also specific topics Exxon Valdez oil spill, 249 F fairness, sense of: in chimpanzees, 127 decision making and, 266–67; see also ultimatum game gender differences and, 275–76 Fallows, James, 158 Farmer, Tom, 140–41, 146, 148–49 FedEx, 108–9 feedback, about work, 74–76 Feeks, John, 118–19 Fehr, Ernst, 125–26 financial incentives: meaning of labor and, 72–73, 76 see also bonuses financial markets, safety measures for, 7 financial meltdown of 2008, 7, 21, 216 chronology of events in, 129–30 desire for revenge in wake of, 128–31 lack of experimental approach to, 293 outraged public reaction to bailout in, 128–29, 130 Finkel, Eli, 172–73 First Knight, 50 fixation, pride in creation and ownership and, 89, 122 food: animals’ preference for working for, 59–63 semi-preprepared, 85–88 shortages of, identifiable victim effect and, 239–41 see also cooking Food and Drug Administration (FDA), 292 Ford, Henry, 78–79, 94 Forgea (white terrier), 249 Fox, Michael J., 254 “Fox and the Grapes, The” (Aesop), 198–99 Frank, Barney, 41 Frankl, Viktor, 45 free food, animals’ preference for working for food vs., 60–62 Frenk, Hanan, 161–65, 300 Friends, ultimatum game and, 269, 270–71, 272 frog experiment, 157–58 Frost, Jeana, 219–20, 229, 300 Fryer, Bronwyn, 148 furniture, do-it-yourself, 83–84, 96, 105, 106 future, foreseeing adaptation to changes in, 160, 171–74 G gardening: children growing food and, 121 enjoyment factor and, 105–6 gender differences: assortative mating and, 209, 211 decision making and, 274–76 pain threshold and tolerance and, 168–69 Gideon, 288–89 global warming, 158, 251–52 Gneezy, Ayelet, 135, 144–45, 150, 300–301 Gneezy, Uri, 21, 44, 301 Gore, Al, 158, 252 government policies, experimental approach to, 292–94, 295 H happiness: comparisons to other people and, 189 consumer purchases and, 175, 185–88 inaccurate predictions about, 170–71 return to baseline of, 170 transient vs. constant experiences and, 187–88 Harvard Business Review (HBR), 147–49 health care, see medical care hedonic adaptation, 160–84 to annoying experiences, 177–79, 180 author’s personal history and, 181–84, 189 blindness and, 172–74 breaking up experiences and, 177–81 changes in workers’ pay and, 169–70 comparisons to other people and, 189 consumer purchases and, 175, 185–88 extending pleasurable experiences and, 176–78, 179–81, 185, 186 in future, foreseeing of, 160, 171–74 happiness baseline and, 170 life-altering injuries and, 171–72, 174 moving to California and, 176 new houses and, 168–69 pain and, 160–67 romantic breakups and, 172–73 to transient vs. constant experiences, 187–88 using our understanding of, 176–81, 184–90 hedonic disruptions, 177–81 hedonic treadmill, 175 Heingartner, Alexander, 45–46 Henry, O., 98 herding, 262 see also self-herding Herman, Edward, 45–46 Hippocrates, 82 Hogerty, Megan, 81 homeostatic mechanisms, 81 Hong, James, 201, 203 HOT or NOT study, 201–5, 208 gender differences in, 209, 211 Meet Me feature and, 204–5, 208, 209 humor, sense of, 199, 200, 207, 208, 228 Hurricane Katrina, 250, 251 I ideas: attachment to, see Not-Invented-Here (NIH) bias idiosyncratic fit and, 111–12 identifiable victim effect, 239–42, 248, 256 American Cancer Society and, 241–42 identity, connection between work and, 53–55, 79 idiosyncratic fit, ideas and, 111–12 ignoring workers, 74–76 IKEA, 83–84, 106 IKEA effect, 83–106 author’s creations in rehabilitation center and, 100–101 completion of project and, 101–4, 105 do-it-yourself furniture and, 83–84, 96, 106 effort expended and, 89, 90, 95–96, 105–6 four principles in, 104–5 and lack of awareness of overvaluation, 99 Legos experiment and, 96, 97 Local Motors cars and, 88, 89 Not-Invented-Here (NIH) bias and, 109–10, 121 origami experiments and, 91–94, 97, 98–99, 102–4 parents’ overvaluation of their children and, 97–98 practical implications of, 121–22 relaxation notion and, 105–6 removal of individual customization and, 96 semi-preprepared food and, 85–88 shoe design and, 95, 96 immediate gratification, 5 Inconvenient Truth, An, 252 initiation into social groups, 89 injuries: association of pain with getting better after, 166–67 author’s dating prospects and, 191–96, 210–11 author’s decisions about his medical care and, 284–88 author’s personal history related to, 1–4, 13, 107, 160–62, 166–67, 181–84, 189, 191–96, 210–11, 281–88 battlefield vs. civilian, 167 foreseeing future after, 160 life-altering, adaptation to, 160, 171–72, 174 pain thresholds and tolerance related to severity of, 161–65 Institute for Evolutionary Anthropology, Leipzig, Germany, 126–27 insurance products, 233–34 interruptions: in pleasant vs. painful experiences, 177–81 TV commercials and, 181n see also phone call interruption experiments intuitions: bonuses and, 36–37 received medical wisdom and, 289–92 romantic, 172–73 testing of, 10n, 288–95 inverse-U relationship, defined, 19 iPods and iPhones, battery replacement in, 141–42 irrationality: summary of findings on, 288 upside as well as downside of, 11–12, 294 irreversible decisions, 285, 286 IT infrastructure, division and meaning of labor and, 77, 79–80 J Janoff-Bulman, Ronnie, 170 Jensen, Glen, 60–62, 63 Jensen, Keith, 127 Jewish tradition, 254–55 Johns Hopkins Bloomberg School of Public Health, Baltimore, 152 Joyless Economy, The (Scitovsky), 188 justice, see fairness, sense of K Kahneman, Danny, 32n, 175–76 Kamenica, Emir, 66, 301 Katzenberg, Jeffrey, 154 Kemmler, William, 119 kinship, empathy and, 243 Krishnamurti, Tamar, 172–73 Krzyzewski, Mike, 39 L labor: connection between identity and, 53–55, 79 contrafreeloading and, 60–63 economic model of, 55, 62–63, 105 financial incentives and, see bonuses meaning of, see meaning of labor overvaluation resulting from, see IKEA effect on projects without meaning, 56–57, 63–72 Labyrinth game, 23 Lee, Leonard, 132, 134, 197, 201–2, 301–2 Lee, Sandra, 87–88 leeches, medicinal use of, 290–91 Legos experiments: on IKEA effect, 96, 97 on reducing meaningfulness of work, 66–74, 77, 80 letter-pairs experiment, 74–76, 80 life-altering events, hedonic adaptation and, 170 Life as a House, ultimatum game and, 268, 269, 270, 272, 276 light, adaptation to changes in, 159 Local Motors, Inc., 88, 89 Loewenstein, George, 21, 44, 80–81, 172–73, 197, 201–2, 239–41, 246–48, 302 long-term objectives, short-term enjoyments vs., 4–5 loss aversion, 32–33, 285, 286 lottery winners, hedonic adaptation of, 170, 171 “Love the One You’re With,” 197, 211–12 M malaria, 250, 251 Man’s Search for Meaning (Frankl), 45 marketing, adaptation and, 158 market mechanisms, 215–16 dating and, 213–15, 216–17, 220–21, 230–32, 233–35 Marx, Karl, 79 massages, extending pleasure of, 179–80 matchmakers (yentas), 213 Mazar, Nina, 21, 30, 44, 302 McClure, Jessica (Baby Jessica), 237–38 meals, see cooking meaning of labor, 53–82 in acknowledged, ignored, and shredded conditions, 74–76 animals’ preference for working for food and, 59–63 blogging and, 65 division of labor and, 77–80 draining work of meaning and, 55–57, 63–77 financial incentives and, 72–73, 76 joy derived from activity and, 71–72 labor-identity connection and, 53–55, 79 Legos experiment and, 66–74, 76, 80 lessons for workplace on, 80–82 letter-pairs experiment and, 74–76, 80 “meaning” vs.


pages: 580 words: 168,476

The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz

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affirmative action, Affordable Care Act / Obamacare, airline deregulation, Andrei Shleifer, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collapse of Lehman Brothers, collective bargaining, colonial rule, corporate governance, Credit Default Swap, Daniel Kahneman / Amos Tversky, Dava Sobel, declining real wages, deskilling, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, framing effect, full employment, George Akerlof, Gini coefficient, income inequality, income per capita, indoor plumbing, inflation targeting, information asymmetry, invisible hand, jobless men, John Harrison: Longitude, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, London Interbank Offered Rate, lone genius, low skilled workers, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, mass incarceration, medical bankruptcy, microcredit, moral hazard, mortgage tax deduction, negative equity, obamacare, offshore financial centre, paper trading, Pareto efficiency, patent troll, Paul Samuelson, payday loans, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, Simon Kuznets, spectrum auction, Steve Jobs, technology bubble, The Chicago School, The Fortune at the Bottom of the Pyramid, The Myth of the Rational Market, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, ultimatum game, uranium enrichment, very high income, We are the 99%, wealth creators, women in the workforce, zero-sum game

See Shelly Banjo and Nick Timiraos, “For the Costliest Homes, Foreclosure Comes Slowly,” Wall Street Journal, February 28, 2012, available at http://online.wsj.com/article/SB10001424052970204369404577209181305152266.html. 39. Our complex legal system contributes to the costs and uncertainty. The oil companies have tried (in part successfully) to limit their liability for, e.g., offshore oil disasters. Courts have limited liability for economic damages resulting from, say, an oil spill to those most directly affected. In the case of the Exxon Valdez oil spill, this meant that many of those who were injured by the destruction of the fishing industry couldn’t recover their lost profits. The Oil Pollution Act of 1990 tried to correct some of these limitations. But the full testing of the legal framework—with the legions of lawyers that likely will be mounted by BP, attempting to limit what it has to pay out—will take years. For a discussion exemplifying the complexity of the legal framework, see Ronen Perry, “The Deepwater Horizon Oil Spill and the Limits of Civil Liability,”Washington Law Review 86, no. 1 (2011): 1–68. 40.

.; voting emerging markets, 54, 143, 181, 233, 383 employment, 50, 69, 75, 76, 189, 211 parental circumstances’ effect on, 18, 76, 307 restoring, 222, 225, 257, 278–81, 284, 285, 380, 396 see also labor; unemployment energy industry, 51 corporate recklessness in, xviii, 99, 189, 339, 374 and global warming, xviii, 160 lobbying by, 95, 185, 338 rent seeking by, 40, 49–50, 99, 272, 367 subsidies to, 179, 180, 189, 214, 367 Enlightenment, 30, 156 Enron, 177–78 environment: costs to, 98–99, 100, 185, 188–89, 272, 339, 374 protection of, 122, 141, 178, 184, 217, 283 see also global warming; resources environmental justice movement, 184, 308 equilibrium fictions, 150, 157, 356, 358 Ericcson, 203 estate taxes, 73, 76, 88, 166, 167, 274, 361, 395 ethanol subsidy, 50–51, 180, 320 euro, 220, 391 Europe, 22, 55, 105, 141, 155, 280, 286 economic mobility in, 18, 117, 265 financial crisis in, 24, 138, 141, 182, 219, 220, 231, 235–36, 254–56, 369, 381, 389–91 globalization’s effect in, 63, 64 inequality in, xiv, 5, 23 inflation in, 241, 255, 259, 393 unemployment in, 278, 291 European Central Bank (ECB), 138, 182, 220, 249, 255, 256, 390, 391, 393 European Commission, 214 exchange rates, 280 Exxon, xviii, 160 Exxon Valdez, 374 fairness: changing views of, 67, 148, 153–55, 347 economists’ perceptions of, 161 importance of, xiv, 114, 117, 126–27, 135, 163, 214, 266 in labor, 103–4, 127 Fannie Mae, 158, 284, 356, 363, 397 Federal Bureau of Investigation (FBI), 197, 372 Federal Communications Commission (FCC), 47, 335 Federal Deposit Insurance Corporation (FDIC), 247 Federal Reserve, U.S., 71, 245, 248, 249, 252, 253, 258, 266 appointees to, 47, 48, 133, 249–50, 319, 388 bank lending by, 37, 49, 243, 245–46 financial sector’s favoring by, 37, 49, 243, 245–48, 249, 251–54, 258, 264, 324, 385–86 monetary policies of, 85, 86, 88, 133, 177, 208, 234, 239–40, 243–45, 248, 250, 251, 252, 254, 257–58, 259, 262, 264, 279, 380, 382, 385, 389, 392 Open Market Committee of, 252 oversight of, 251, 252 political nature of, 250, 251 regulatory position of, 246, 247, 248, 387, 388 Ferguson, Thomas, xxiv Fields, Alex, 283 filibusters, 132–33, 286, 350, 351 Financial Accounting Standards Board, 110 Financial Crisis Inquiry Commission, see Angelides, Phil; National Commission on the Causes of the Financial and Economic Crisis in the United States financial crisis of 2008, x, xiv, xvii, xix, xxii, xxiii, 1, 3, 13, 33, 49, 61, 77, 79, 91, 152, 155, 166, 167–69, 171, 174, 175, 180, 213, 232, 246, 254–55, 260, 314 causes of, xi, 33, 34, 37, 49, 90, 175, 213, 258, 264 criminal prosecution for, xv–xvi, 70, 119, 199, 372, 373 economic situation prior to, 53–54, 84–85 see also Great Recession; subprime crisis financial markets: deregulation of, 5, 49, 60, 81, 89–92, 102, 152, 157, 175–76, 177, 181–82, 240, 246–48, 249, 258, 387 distributive impact of, 173–74 equilibrium fictions in, 152, 175 failures in, xi–xiii, xvii, xviii, 6, 34, 41, 90, 107–8, 173, 241, 291, 313 globalization in, 59–61, 139–40, 141–42, 181–82, 277, 280, 324, 325 government regulation of, xiii, xx, xxi–xxii, 28, 33–34, 35, 36, 37, 38–39, 40, 44, 47–48, 80, 87, 119, 136–37, 141–42, 152, 155, 170, 173, 178–79, 192–93, 247, 248, 250, 269–70, 324, 369, 388 ideological perceptions of, 154, 155, 156–57, 158, 163–66, 172–79, 186, 257, 258, 261, 313, 317, 356 information asymmetries in, 36–37, 110, 124, 165–66, 313, 388 international debt in, 139 legal underpinnings of, 42, 43 price discovery in, 164–65 transparency in, 35–36, 247, 269, 390 see also bankers; business; economy, U.S.; stock market financial sector, 49, 87, 169, 170, 219, 226, 228, 382 abusive credit card practices in, 37, 40, 90, 96, 98, 119, 124, 164, 240, 246, 269, 270, 274, 314 anticompetitive behavior in, 35–36, 46–47, 247, 269, 270, 318; see also monopolies criminal behavior in, 198, 199, 200–201, 204–6, 372, 373 Federal Reserve’s favoring of, 37, 49, 243, 245–48, 249, 251–54, 258, 264, 324, 385–86 government bailouts in, xiv–xv, 37, 60, 74, 101, 155, 166–69, 171, 172, 175, 180, 193, 198, 213, 233, 234, 245–46, 252–53, 258, 269, 324, 361, 362 government lending to, 37, 49, 110, 243, 245–46 growth of, 79–81, 240, 246–48, 271 hidden subsidies to, 222, 223, 240, 247, 387 incentive pay in, 78–79, 87, 109–10, 342 international influence of, 181–82, 186–87 legal system’s favoring of, 191–202, 203, 204–6 moral deprivation in, xvii–xviii, xxiii, 37–38, 70, 197–98, 201, 314 political power of, 34, 37, 41, 48, 61, 135, 136–37, 193, 194, 200, 202, 319, 324, 338 predatory lending by, xvii, 37, 40, 58, 70, 90, 119, 124, 191–93, 194, 197–98, 201, 239, 246, 249, 269–70, 313, 314, 333, 369 purpose of, 62, 96, 142, 175, 281, 314 ratings agencies in, 192, 217, 219 rent seeking by, 36–39, 40, 41, 166, 270 securities fraud in, 204–6 student loan practices in, 94, 195, 196, 201, 323, 371 taxes on, 213–14, 215, 247, 248 trust in, 123–24, 346 undercapitalization in, 247, 256, 386 see also bankers Finland, 18, 19 fiscal policy, 278–79, 285 see also government, U.S., macroeconomic policies of flash trading, 165–66 food stamps, 74, 211, 277, 305, 306 foreclosures, x, xii, xv, 1, 10, 13, 23, 169–70, 197–202, 271, 293, 302, 362, 363, 369, 374, 388 see also mortgage restructuring; subprime crisis foreign policy, U.S., 101 framing, cognitive, 149–50, 160, 163, 186, 360 France, 18, 22, 97, 183, 214, 351, 385 Freddie Mac, 158, 284, 363 Friedman, Milton, 44, 157, 257, 258, 317, 391 Friedman, Stephen, 388 FUD, 45 G-8, 143 G-20, 143, 185 Galbraith, Jamie, 81 Galbraith, John Kenneth, 128 game theory, 44, 68 Gates, Bill, 42, 315 GE, 222, 330, 331 Geithner, Tim, 48 George, Henry, 212 Georgia, 191–92, 368 Germany, 18, 23, 214, 230, 259, 280, 351, 385 gerrymandering, 132, 135, 286 Gettysburg Address, 137 GI Bill, 5, 55 Gini coefficient, 23–24, 303, 309, 310 Glass-Steagall Act, 90, 387 globalization, 58–64, 79, 80, 156, 184, 259, 260 competition in, 60, 141, 142 democracy and, 138–45 drawbacks of, 60, 62, 63, 142, 324 financial, 59–61, 139–40, 141–42, 181–82, 277, 280, 324, 325 inequality and, 60, 63–64, 79, 80, 140, 142, 144, 145 labor and, 56, 59–60, 61, 63, 64, 80, 233, 277, 278, 280, 281, 324, 325 management of, xiii, 61, 64, 80, 137, 142, 144, 145, 277–78 taxes and, 62, 63, 142, 278 Globalization and Its Discontents (Stiglitz), 61, 181 global warming, xii, xiii, 144, 160, 341 see also environment Golden Rule (Ferguson), xxiv Goldman Sachs, 61, 124, 205, 253, 353, 388 Google, 174, 203 government, U.S.: bank bailouts by, xiv–xv, 37, 60, 74, 101, 155, 166–69, 171, 172, 175, 180, 193, 198, 213, 233, 234, 245–46, 252–53, 258, 269, 324, 361, 362 budget cuts in, 207, 216, 221, 226–28, 229, 230–36 budget of, 207–37 collective action through, 82, 93, 107, 117, 121, 125, 281–82 ideological perceptions of, 93–94, 154–55, 156–57, 158, 172–79, 186, 257, 258, 261, 356 inequality-supporting policies of, 6, 28, 31, 32, 52, 57–58, 74, 75–76, 77, 79, 81, 82, 153 investment by, 23, 40, 80, 84, 88, 92–94, 102, 114, 115, 155, 174, 216, 217, 218, 230, 232–33, 263, 267, 273, 279, 281, 282–83, 381 litigation by, 203, 204 macroeconomic policies of, 38, 62, 64, 80, 82, 85, 86, 102, 133, 225, 230, 231, 236, 237, 238–64, 279, 379, 392 market regulation by, xiii, xx, xxi–xxii, 5, 28, 34, 35, 36, 37, 38–39, 44, 47–48, 49, 60, 80, 81, 87, 89–92, 102, 119, 136–37, 141–42, 152, 170, 173, 175–76, 177–79, 192–93, 246–48, 250, 258, 269–70, 324, 369, 387, 388 media’s relationship with, 128, 135, 136, 252 military spending by, 40, 101, 176, 209, 210, 211, 216, 218, 224, 340 munificence of, 32, 40, 42, 48–51, 97, 99, 101, 136, 173, 176, 179–80, 189, 191, 210, 211, 213, 214, 215, 216, 222, 224, 228, 271–73 research funded by, 78, 92, 93, 102, 174, 216, 283, 337 size of, 93–94, 155, 156–57, 216, 221, 236–37, 251, 256, 257 social spending by, 2, 5, 14, 15, 16–17, 26, 63, 74, 77, 79, 84, 85, 86, 108, 173, 208, 210, 211, 215–16, 226–28, 231–32, 237, 276–77, 299, 365, 380 see also politics, U.S.


pages: 372 words: 96,474

Dishwasher: One Man's Quest to Wash Dishes in All Fifty States (P.S.) by Pete Jordan

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big-box store, Exxon Valdez, financial independence, Haight Ashbury, index card, Mason jar, rent control, Ronald Reagan, Upton Sinclair, urban planning, wage slave

., I grabbed my shirt and escaped with a vow to never again wear company garb. A couple days later, I studied dozens of three-by-five-inch index cards on the campus ride board. One read: “Two guys driving up to Alaska looking for a third person to help share the cost of gas.” I called them and was told they were heading up to find work in the oil spill cleanup. It was April 1989. A few weeks before, the oil tanker Exxon Valdez had struck a reef and dumped at least ten million gallons of crude oil into the Prince William Sound. It sounded intriguing, so I bought a fifteen-dollar tent and left with Jack and Ali a couple days later. It was dusk when we arrived in Valdez—namesake for the doomed oil tanker and epicenter for the cleanup effort. The place was a madhouse. The town of four thousand residents was overrun with upward of ten thousand job seekers.


pages: 337 words: 103,273

The Great Disruption: Why the Climate Crisis Will Bring on the End of Shopping and the Birth of a New World by Paul Gilding

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airport security, Albert Einstein, Bob Geldof, BRICs, carbon footprint, clean water, cleantech, Climategate, commoditize, corporate social responsibility, creative destruction, decarbonisation, energy security, Exxon Valdez, failed state, fear of failure, income inequality, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, market fundamentalism, mass immigration, Naomi Klein, new economy, nuclear winter, oil shock, peak oil, Ponzi scheme, purchasing power parity, Ronald Reagan, shareholder value, The Spirit Level, The Wealth of Nations by Adam Smith, union organizing, University of East Anglia

Reindeer herding and the sale of reindeer meat largely sustains the indigenous Saami population of northern Scandinavia. The stories of this incident are still told and resonate in Sweden to this day. As well as locking in public skeptism of the safety of nuclear power, people had been given a palpable example of global interconnectedness. The 1980s also brought one of the world’s most famous oil spills by the world’s least favorite oil company, when the Exxon Valdez spilled 250,000 barrels of oil into the pristine waters of Alaska in 1989. A legal battle followed to hold Exxon accountable for the damage—they had placed in charge of the tanker a known alcoholic, who was drunk and not on the bridge at the time the vessel ran aground. At the initial trial, a jury levied $5 billion in punitive damages against Exxon. With their enormous resources and so much money at stake, Exxon managed to drag the legal process on for decades, until in 2008 the Supreme Court cut punitive damages to just $507 million.


pages: 323 words: 89,795

Food and Fuel: Solutions for the Future by Andrew Heintzman, Evan Solomon, Eric Schlosser

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agricultural Revolution, Berlin Wall, big-box store, clean water, Community Supported Agriculture, corporate social responsibility, David Brooks, deindustrialization, distributed generation, energy security, Exxon Valdez, flex fuel, full employment, half of the world's population has never made a phone call, hydrogen economy, land reform, microcredit, Negawatt, oil shale / tar sands, oil shock, peak oil, RAND corporation, risk tolerance, Silicon Valley, statistical model, Upton Sinclair, uranium enrichment

In the rush to innovate, leaders too often focus exclusively on technical ingenuity, but social ingenuity is even more important. And nowhere is this more evident than in the dismal science, economics. The economic models the world still uses to calculate value, like the GDP, do not account for damage to “natural capital” that results from human industry. This flaw in our economic model leads to many perverse results. In the classic example, the Exxon Valdez oil spill actually caused an increase in Alaska’s GDP. The cleanup caused profitable economic activity, but the cost of the pollution was not factored in. The distortion was tragic. Who sees an oil spill as a net gain for a local economy? Apparently, we do. Throughout our economy, we almost never factor in the ecological costs into our goods and services. As a result of this gap in our calculus we never get a real understanding of the true cost of human activity.


pages: 361 words: 111,500

Geography of Bliss by Eric Weiner

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Albert Einstein, Berlin Wall, call centre, cuban missile crisis, Exxon Valdez, happiness index / gross national happiness, indoor plumbing, Mikhail Gorbachev, place-making, Pluto: dwarf planet, science of happiness, Silicon Valley, Transnistria, union organizing

The Bhutanese take the idea of Gross National Happiness seriously, but by “happiness” they mean something very different from the fizzy, smiley-face version practiced in the United States. For the Bhutanese, happiness is a collective endeavor. The phrase “personal happiness” makes no sense to them or, as Karma Ura told me, “We don’t believe in this Robinson Crusoe happiness. All happiness is relational.” A quick quiz. What do the following events have in common? The war in Iraq. The Exxon Valdez oil spill. The rise in America’s prison population. The answer: They all contribute to our nation’s gross national product, or what’s now referred to as gross domestic product, or GDP, and therefore all are considered “good,” at least in the dismal eyes of economists. GDP is simply the sum of all goods and services a nation produces over a given time. The sale of an assault rifle and the sale of an antibiotic both contribute equally to the national tally (assuming the sales price is the same).


pages: 363 words: 101,082

Earth Wars: The Battle for Global Resources by Geoff Hiscock

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Admiral Zheng, Asian financial crisis, Bakken shale, Bernie Madoff, BRICs, butterfly effect, clean water, cleantech, corporate governance, demographic dividend, Deng Xiaoping, Edward Lorenz: Chaos theory, energy security, energy transition, eurozone crisis, Exxon Valdez, flex fuel, global rebalancing, global supply chain, hydraulic fracturing, Long Term Capital Management, Malacca Straits, Masdar, mass immigration, megacity, Menlo Park, Mohammed Bouazizi, new economy, oil shale / tar sands, oil shock, Panamax, Pearl River Delta, purchasing power parity, Ralph Waldo Emerson, RAND corporation, Shenzhen was a fishing village, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, spice trade, trade route, uranium enrichment, urban decay, working-age population, Yom Kippur War

Shell holds permits to drill six wells in the Chukchi Sea and another four in the adjacent Beaufort Sea, where it hopes to begin drilling in mid-2012. If Shell is successful and can bring oil ashore and into a proposed connection to the Trans Alaska pipeline by 2020, then the area’s economy will enjoy a significant boost. ConocoPhillips and Norway’s Statoil also aspire to drill in the Chukchi Sea, though in Statoil’s case it will be 2014 at the earliest. Overshadowing all Alaskan development is the memory of the 1989 Exxon Valdez tanker oil spill in Prince William Sound, which had devastating consequences for birds and marine life. Gulf of Mexico Prospects The Arctic is a relatively long-term play. There are more immediate prospects in the Gulf of Mexico, despite BP’s disastrous Macondo well blowout in April 2010 that set off an explosion on the Deepwater Horizon drilling rig. The rig sank in 1,525 m (5,000 ft) of water, causing massive oil pollution and taking the lives of 11 workers on the platform and injuring 17 others.


pages: 262 words: 83,548

The End of Growth by Jeff Rubin

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Ayatollah Khomeini, Bakken shale, banking crisis, Berlin Wall, British Empire, call centre, carbon footprint, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, deglobalization, energy security, eurozone crisis, Exxon Valdez, Fall of the Berlin Wall, fiat currency, flex fuel, full employment, ghettoisation, global supply chain, Hans Island, happiness index / gross national happiness, housing crisis, hydraulic fracturing, illegal immigration, income per capita, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, labour mobility, McMansion, Monroe Doctrine, moral hazard, new economy, Occupy movement, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, quantitative easing, race to the bottom, reserve currency, Ronald Reagan, South China Sea, sovereign wealth fund, The Chicago School, The Death and Life of Great American Cities, Thomas Malthus, Thorstein Veblen, too big to fail, uranium enrichment, urban planning, urban sprawl, women in the workforce, working poor, Yom Kippur War, zero-sum game

The industry is quick to assure anyone who will listen that Northern Gateway will adhere to the highest standards of environmental safety. All ships that enter the port, for instance, will be pulled by tugboats and guided by land-based radar. Only double-hulled tankers will be allowed into the terminal. I don’t doubt that the industry will fully deliver on these safety measures, but it only takes one Exxon Valdez and Jack and I won’t have a chance to fish those pristine waters ever again. And neither will anyone else. Opponents of the proposed pipeline don’t have to look far for a cautionary tale illustrating the likelihood that human error will someday enter the equation. Even now, the Queen of the North, part of the BC Ferries fleet, is resting underneath 1,400 feet of water not far from the northern edge of Princess Royal Island.


pages: 416 words: 106,582

This Will Make You Smarter: 150 New Scientific Concepts to Improve Your Thinking by John Brockman

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23andMe, Albert Einstein, Alfred Russel Wallace, banking crisis, Barry Marshall: ulcers, Benoit Mandelbrot, Berlin Wall, biofilm, Black Swan, butterfly effect, Cass Sunstein, cloud computing, congestion charging, correlation does not imply causation, Daniel Kahneman / Amos Tversky, dark matter, data acquisition, David Brooks, delayed gratification, Emanuel Derman, epigenetics, Exxon Valdez, Flash crash, Flynn Effect, hive mind, impulse control, information retrieval, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, Jaron Lanier, John von Neumann, Kevin Kelly, lifelogging, mandelbrot fractal, market design, Mars Rover, Marshall McLuhan, microbiome, Murray Gell-Mann, Nicholas Carr, open economy, Pierre-Simon Laplace, place-making, placebo effect, pre–internet, QWERTY keyboard, random walk, randomized controlled trial, rent control, Richard Feynman, Richard Feynman, Richard Feynman: Challenger O-ring, Richard Thaler, Satyajit Das, Schrödinger's Cat, security theater, selection bias, Silicon Valley, stem cell, Steve Jobs, Steven Pinker, Stewart Brand, the scientific method, Thorstein Veblen, Turing complete, Turing machine, Vilfredo Pareto, Walter Mischel, Whole Earth Catalog, zero-sum game

It’s a handy view of humankind that all those who use science to change policy should keep in their mental toolkit, and a tendency greatly reinforced by the endless procrastination in tackling climate change. Cancún follows Copenhagen follows Kyoto, but the more we dither and no extraordinary disaster follows, the more dithering seems just fine. Such behavior is not unique to climate change. It took the sinking of the Titanic to put sufficient lifeboats on passenger ships, the huge spill from the Amoco Cadiz to set international marine pollution rules, and the Exxon Valdez disaster to drive the switch to double-hulled tankers. The same pattern is seen in the oil industry, with the 2010 Gulf spill the latest chapter in the “Disaster first; regulations later” mind-set of Homo dilatus. There are a million similar stories from human history. So many great powers and once-dominant corporations slipped away as their fortunes declined without the necessary crisis to force change.

The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance) by Feng Gu

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active measures, Affordable Care Act / Obamacare, barriers to entry, business process, Claude Shannon: information theory, Clayton Christensen, commoditize, conceptual framework, corporate governance, creative destruction, Daniel Kahneman / Amos Tversky, discounted cash flows, diversified portfolio, double entry bookkeeping, Exxon Valdez, financial innovation, fixed income, hydraulic fracturing, index fund, information asymmetry, intangible asset, inventory management, Joseph Schumpeter, Kenneth Arrow, knowledge economy, moral hazard, new economy, obamacare, quantitative easing, quantitative trading / quantitative finance, QWERTY keyboard, race to the bottom, risk/return, Robert Shiller, Robert Shiller, shareholder value, Steve Jobs, The Great Moderation, value at risk

Rockefeller, its heavy investment over decades in oil prospecting and explorations, as well as on the careful development of highly skilled personnel, global relationships with governments, satisfied customers, and trusting shareholders. All those past investments in physical and human capital charted an increasing path of development and growth for the company that can be expected to persist for a considerable time. Even major environmental disasters, like the Exxon Valdez spill (March 1989), were, in retrospect, just a hiccup in the relentless growth path of the company.6 Investors’ Fault or Accounting’s? 53 Given a certain degree of path dependence in the evolution of all business enterprises, historical financial reports presumably provide a basis for predicting their future performance, after allowing, of course, for foreseeable future changes in economic conditions (recessions) and circumstances (major restructuring).


pages: 378 words: 102,966

Affluenza: The All-Consuming Epidemic by John de Graaf, David Wann, Thomas H Naylor, David Horsey

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big-box store, Community Supported Agriculture, Corrections Corporation of America, Donald Trump, Exxon Valdez, financial independence, Ford paid five dollars a day, full employment, God and Mammon, greed is good, income inequality, informal economy, invisible hand, Isaac Newton, Mark Shuttleworth, McMansion, medical malpractice, new economy, Ralph Nader, Ray Oldenburg, Ronald Reagan, Silicon Valley, Simon Kuznets, single-payer health, The Great Good Place, trade route, upwardly mobile, Yogi Berra, young professional

Students find out about self-esteem by discussing “Good and Bad Hair Days” with materials provided by Revlon. They learn to “wipe out that germ” with Lysol, and study geothermal energy by eating Gusher’s Fruit Snacks (the “teachers’ guide” suggests that each student be given a Gusher to bite and to compare the sensation to a volcanic eruption!). They also learn the history of Tootsie Rolls, make shoes for Nike as an environmental lesson, count Lay’s potato chips in math class, and find out why the Exxon Valdez oil spill wasn’t really harmful at all (materials courtesy of— you guessed it—Exxon) or why clear-cutting is beneficial—with a little help from Georgia-Pacific. Maybe we could turn around the steady decline of our children’s SAT scores if we just asked them questions about good and bad hair days instead of world geography. Cover Concepts, a company that bills itself as “America’s largest in-school communications partner,” claims to reach 30 million students in 43,000 schools by “working in tandem with school administrators to distribute free, advertiser-sponsored materials such as textbook covers, lesson plans, posters, bookmarks, specialty packs, lunch menus, and other fun educational materials.”


pages: 302 words: 92,507

Cold: Adventures in the World's Frozen Places by Bill Streever

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Albert Einstein, carbon footprint, Edward Lorenz: Chaos theory, Exxon Valdez, Mason jar, refrigerator car, South China Sea, the scientific method, University of East Anglia

Subtract another twenty degrees, and you have forty below.” She stares blankly, as if at a madman. Imagination cannot extrapolate beyond the temperatures it has experienced. I stand in the sun, face upward, enjoying for the moment a latitudinal spring. MAY It is May fifth and hovering in the high forties on Prince William Sound, southeast of Anchorage, the site, seventeen years ago, of the 1989 Exxon Valdez oil spill. Prince William Sound is Alaska at its best: a piece of the ocean protected by snow-covered mountains, kelp and barnacles visible through clear water, puffins and otters on the surface, the occasional bear foraging along the shore, orcas and sea lions in the waves. Weather and time have washed away obvious remnants of the spill, but oil still sits beneath the gravel on certain beaches, and biologists continue to argue over evidence of residual damage.


pages: 237 words: 82,266

You Say Tomato, I Say Shut Up by Annabelle Gurwitch

Atul Gawande, Bernie Madoff, big-box store, Donald Trump, Donner party, Exxon Valdez, Mahatma Gandhi, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Yogi Berra

Sadly, not being crafty in any way at all, I have been reduced to placing smoke detectors all over the house in case any of Jeff’s structures should ignite and reduce our home to a pile of ashes. JEFF First of all, 98.9 percent of the time I throw the right trash into the right recycle bin, so why does my accidentally putting one recyclable item into the wrong wastebasket make me, according to Annabelle, the captain of the Exxon Valdez? Let’s talk about how well all of her initiatives have worked out. One year she insisted on fruit-sweetened whole wheat cupcakes for Ezra’s birthday party. Some of the boys threw them on the ground in disgust while others used them as baseballs and batted them against the side of our house. They were so dense, they’re still decomposing in the backyard three years later. ANNABELLE I’m glad Jeff mentioned that birthday because Jeff always makes fun of my attempts at organizing structured activities.


pages: 1,445 words: 469,426

The Prize: The Epic Quest for Oil, Money & Power by Daniel Yergin

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anti-communist, Ayatollah Khomeini, bank run, Berlin Wall, British Empire, colonial exploitation, Columbine, continuation of politics by other means, cuban missile crisis, energy security, European colonialism, Exxon Valdez, financial independence, fudge factor, informal economy, joint-stock company, land reform, liberal capitalism, megacity, Mikhail Gorbachev, Monroe Doctrine, new economy, North Sea oil, oil rush, oil shale / tar sands, oil shock, old-boy network, postnationalism / post nation state, price stability, RAND corporation, rent-seeking, Ronald Reagan, shareholder value, Thomas Malthus, Yom Kippur War

Environmental considerations will certainly be among the top issues for the new democratic parliaments of Eastern Europe. Chernobyl, with its threat of invisible but deadly danger and its warning of technology out of control, provided a great thrust to the new wave of environmentalism. In the United States, another event took on great importance—though without the same risk to human health or life. It occurred at four minutes after midnight, on Good Friday, March 24, 1989, when the supertanker Exxon Valdez rammed into the rocky Bligh Reef in Alaska's Prince William Sound, spilling 240,000 barrels of petroleum into those pristine waters. The expenditure of upwards of $2 billion on the cleanup did nothing to erase the Valdez spill from the political map. Coming as it did on top of a host of other concerns, the tanker accident strengthened the reborn environmental consciousness and the willingness on the part of many people to trade off energy production in favor of environmental protection.

A10 ("Weakness"); Marr, Modern History of Iraq, chap. 8; al-Khalil, Republic of Fear. [3] New York Times, August 16, 1990, p. A14. [4] Thane Gustafson, Crisis Amid Plenty: The Politics of Soviet Energy Under Brezhnev and Gorbachev (Princeton: Princeton University Press, 1989), pp. 5-6. [5] Interview with Robert O. Anderson. [6] Cambridge Energy Research Associates, Energy and the Environment: The New Landscape of Public Opinion (1990). [7] National Response Team, The Exxon Valdez Oil Spill: A Report to the President from Samuel K. Skinner and William K. Reilly, May 1989. On oil production, Robert Esser, "The Capacity Race: The Future of World Oil Supply," (Cambridge: Cambridge Energy Research Associates, 1990). Notes Upstream, Downstream, All Around the Stream All of the oil world is divided into three. The "upstream" comprises exploration and production. The "midstream" are the tankers and pipelines that carry crude oil to refineries.

.: GPO 1948-90 (FRUS). U.S. Economic Cooperation Administration. European Recovery Program. Petroleum and Petroleum Equipment Commodity Study. Washington, D.C.: GPO, 1949. U.S. Federal Trade Commission. Foreign Ownership in the Petroleum Industry. Washington, D.C.: GPO, 1923. ---------. Prices, Profits, and Competition in the Petroleum Industry. Washington, D.C.: GPO, 1928. U.S. National Response Team. The Exxon Valdez Oil Spill: A Report to the President from Samuel K. Skinner and William K. Reilly. May 1989. U.S. National Security Council. Documents of the NSC, 1947-77. Ed. Paul Kesaris. Washington, D.C. and Frederick, Md.: University Publications of America, 1980-87. Microfilm. ---------. Minutes of Meetings of the NSC, with Special Advisory Reports. Ed. Paul Kesaris. Frederick, Md.: University Publications of America, 1982.

Rainbow Six by Tom Clancy

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active measures, air freight, airport security, centre right, clean water, computer age, Exxon Valdez, Live Aid, old-boy network, Plutocrats, plutocrats, RAND corporation, rent control, rolodex, urban sprawl

"Sure, doc," her guest said, sipping OEOB coffee. "But how the hell do you sell it to him?" The map was spread on her coffee table: East of Alaska's Prudhoe Bay was a piece of tundra, over a thousand square miles of it, and geologists for British Petroleum and Atlantic Richfield - the two companies that had largely exploited the Alaskan North Slope, built the pipeline, and therefore helped cause the Exxon Valdez disaster-had made their public pronouncement. This oilfield, called AARM, was at least double the size of the North Slope. The report, still semi classified in the industrial sense, had come to the White House a week earlier, with confirming data from the United States Geological Survey, a federal agency tasked to the same sort of work, along with the opinion of the geologists that the field extended farther east, across the Canadian border-and exactly how far it extended they could only guess, because the Canadians had not yet begun their survey.

"What will the rest of your board say about this?" Dr. Brightling asked. "They'll goddamned well say what I goddamned tell them to say!" "No, Kevin, they won't." Carol leaned back and rubbed her eyes. She'd read the entire report the previous night, and the sad truth was that the oil companies had gotten pretty damned smart about dealing with environmental issues. It was plain business sense. The Exxon Valdez had cost them a ton of money, in addition to the bad public relations. Three pages had been devoted to the changes in tanker safety procedures. Now, ships leaving the huge oil terminal at Valdez, Alaska, were escorted by tugs all the way to the open sea. A total of twenty pollution-control vessels were on constant standby, with a further number in reserve. The navigation systems on every tanker had been upgraded to beyond what nuclear submarines carried; the navigation officers were compelled to test their skills on simulators every six months.


pages: 385 words: 133,839

The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink by Michael Blanding

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carbon footprint, clean water, collective bargaining, corporate social responsibility, Exxon Valdez, Gordon Gekko, Internet Archive, laissez-faire capitalism, market design, Naomi Klein, New Journalism, Ponzi scheme, profit motive, Ralph Nader, rolodex, Ronald Reagan, shareholder value, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Upton Sinclair

“There is tremendous imbalance of power, with corporations 2 14 THE COKE MACHINE having far too much of it,” he says. “What we want to do is equalize that balance.” Rather than use legislation or the courts, however, Rogers’s favored tactics have been loud and contentious activist campaigns that target companies’ financial connections and corporate image. In 2003, he was gearing up for his most ambitious campaign yet—an attempt to take on ExxonMobil over its failure to pay for the Exxon Valdez oil spill. Knowing Collingsworth had himself sued ExxonMobil in the past, he sent him an e-mail asking for help. Instead, Collingsworth called him with a very different proposal: develop­ ing a campaign against Coke. “Look, we’ve got a very serious life-and-death situation,” he said. “But we don’t have any money.” Rogers didn’t hesitate. He knew that he couldn’t build a campaign against ExxonMobil without a boatload of cash.


pages: 479 words: 133,092

The Coke Machine by Michael Blanding

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carbon footprint, clean water, collective bargaining, corporate social responsibility, Exxon Valdez, Gordon Gekko, Internet Archive, laissez-faire capitalism, market design, Naomi Klein, New Journalism, Ponzi scheme, profit motive, Ralph Nader, rolodex, Ronald Reagan, shareholder value, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Upton Sinclair

“There is tremendous imbalance of power, with corporations having far too much of it,” he says. “What we want to do is equalize that balance.” Rather than use legislation or the courts, however, Rogers’s favored tactics have been loud and contentious activist campaigns that target companies’ financial connections and corporate image. In 2003, he was gearing up for his most ambitious campaign yet—an attempt to take on ExxonMobil over its failure to pay for the Exxon Valdez oil spill. Knowing Collingsworth had himself sued ExxonMobil in the past, he sent him an e-mail asking for help. Instead, Collingsworth called him with a very different proposal: developing a campaign against Coke. “Look, we’ve got a very serious life-and-death situation,” he said. “But we don’t have any money.” Rogers didn’t hesitate. He knew that he couldn’t build a campaign against ExxonMobil without a boatload of cash.


pages: 476 words: 132,042

What Technology Wants by Kevin Kelly

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Albert Einstein, Alfred Russel Wallace, Buckminster Fuller, c2.com, carbon-based life, Cass Sunstein, charter city, Clayton Christensen, cloud computing, computer vision, Danny Hillis, dematerialisation, demographic transition, double entry bookkeeping, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, George Gilder, gravity well, hive mind, Howard Rheingold, interchangeable parts, invention of air conditioning, invention of writing, Isaac Newton, Jaron Lanier, John Conway, John Markoff, John von Neumann, Kevin Kelly, knowledge economy, Lao Tzu, life extension, Louis Daguerre, Marshall McLuhan, megacity, meta analysis, meta-analysis, new economy, off grid, out of africa, performance metric, personalized medicine, phenotype, Picturephone, planetary scale, RAND corporation, random walk, Ray Kurzweil, recommendation engine, refrigerator car, Richard Florida, Rubik’s Cube, Silicon Valley, silicon-based life, Skype, speech recognition, Stephen Hawking, Steve Jobs, Stewart Brand, Ted Kaczynski, the built environment, the scientific method, Thomas Malthus, Vernor Vinge, wealth creators, Whole Earth Catalog, Y2K

But because of the tight interdependence of parts, minor glitches in the right improbable sequence cascade until the trouble becomes an unstoppable wave and reaches catastrophic proportions. Sociologist Charles Perrow calls these “normal accidents” because they “naturally” emerge from the dynamics of large systems. The system is to blame, not the operators. Perrow did an exhaustive minute-by-minute study of 50 large-scale technological accidents (such as Three Mile Island, the Bhopal disaster, Apollo 13, Exxon Valdez, Y2K, etc.) and concluded, “We have produced designs so complicated that we cannot anticipate all the possible interactions of the inevitable failures; we add safety devices that are deceived or avoided or defeated by hidden paths in the systems.” In fact, Perrow concludes, safety devices and safety procedures themselves often create new accidents. Safety components can become one more opportunity for things to go wrong.


pages: 468 words: 150,206

Food Revolution, The: How Your Diet Can Help Save Your Life and Our World by John Robbins, Dean Ornish M. D.

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Albert Einstein, carbon footprint, clean water, complexity theory, double helix, Exxon Valdez, food miles, Intergovernmental Panel on Climate Change (IPCC), laissez-faire capitalism, Mahatma Gandhi, meta analysis, meta-analysis, profit motive, Ralph Nader, randomized controlled trial, Rosa Parks, telemarketer

Catastrophic cases of pollution, sickness, and death are occurring in areas where livestock operations are concentrated. . . . Every place where the animal factories have located, neighbors have complained of falling sick."19 Learning how profound these problems have become, I've at times felt horrified and disgusted. But when we know the cause, we can work to solve the problems and prevent more from occurring. WHAT WE KNOW Gallons of oil spilled by the Exxon-Valdez: 12 million Gallons of putrefying hog urine and feces spilled into the New River in North Carolina on June 21, 1995, when a "lagoon" holding 8 acres of hog excrement burst: 25 millionZ° Fish killed as an immediate result: 10-14 millionZ' Fish whose breeding area was decimated by this disaster: Half of all mid-East Coast fish species22 Acres of coastal wetlands closed to shell fishing as a result: 364,00013 Amount of waste produced by North Carolina's 7 million factory-raised hogs (stored in open cesspools) compared to the amount produced by the state's 6.5 million people: 4 to 124 Relative concentration of pathogens in hog waste compared to human sewage: 10 to 100 times greater" As the pork industry has grown rapidly in North Carolina, so have problems with water pollution.


pages: 458 words: 134,028

Microtrends: The Small Forces Behind Tomorrow's Big Changes by Mark Penn, E. Kinney Zalesne

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affirmative action, Albert Einstein, Ayatollah Khomeini, Berlin Wall, big-box store, call centre, corporate governance, David Brooks, Donald Trump, extreme commuting, Exxon Valdez, feminist movement, glass ceiling, God and Mammon, Gordon Gekko, haute couture, hygiene hypothesis, illegal immigration, immigration reform, index card, Isaac Newton, job satisfaction, labor-force participation, late fees, life extension, low skilled workers, mobile money, new economy, RAND corporation, Renaissance Technologies, Ronald Reagan, Rosa Parks, Rubik’s Cube, stem cell, Stephen Hawking, Steve Jobs, Superbowl ad, the payments system, Thomas L Friedman, upwardly mobile, uranium enrichment, urban renewal, War on Poverty, white picket fence, women in the workforce, Y2K

In the only big sleep study to include substantial numbers of African-Americans, black men were found to sleep a full hour less than average, and with significantly poorer sleep quality than either black women or whites. 30-Winkers on the rise will have tragic, if predictable, outcomes. In the 2005 Sleep in America poll, 60 percent of participants said they have driven drowsy in the last year, and 37 percent say they’ve nodded off or fallen asleep behind the wheel. The National Highway Traffic Safety Administration says drowsy driving is responsible for over 50,000 traffic accidents a year, including over 1,500 fatalities. Famous disasters like the Exxon Valdez grounding and the recent Staten Island Ferry crash were apparently caused by drivers asleep at the wheel. Less sleep also means less productivity. Two in 10 American adults say sleepiness caused them to make recent errors at work. Productivity costs have been estimated at $50 billion. And bad sleep threatens domestic harmony. Thirty-nine percent of sexually active American adults—including 64 percent of women aged 35–44—say they pass up sex for sleep.


pages: 446 words: 138,827

What Should I Do With My Life? by Po Bronson

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back-to-the-land, Berlin Wall, clean water, double entry bookkeeping, Exxon Valdez, financial independence, high net worth, job satisfaction, Menlo Park, microcredit, new economy, Shoshana Zuboff, Silicon Valley, South of Market, San Francisco, special economic zone, telemarketer, traffic fines, young professional

But shortly after he graduated, the price of oil crashed, hard, and didn’t bottom out until it hit nine dollars a barrel. The oil exploration industry in Texas was dead. Not kind of dead, like the computer industry, or almost dead, like the dot-com industry. There was no pretending. The laments of software engineers coming out of universities today have nothing on Bryce. In six months he was selling used cars off a lot in Lubbock, wondering, what happened? Cut to: 1989. The Exxon Valdez spilled eleven million gallons of heavy crude into Prince William Sound, Alaska, and in its wake a tiny new industry boomed: Environmental Consulting. Nobody trusted Big Oil to clean up its own mess. In most states, new laws forced oil companies to pay independent consulting firms to monitor their toxic land, and, when determined necessary, to oversee the cleanup. When that law was passed in Texas, Bryce was hailed off the car lot for a phone call.


pages: 386 words: 122,595

Naked Economics: Undressing the Dismal Science (Fully Revised and Updated) by Charles Wheelan

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affirmative action, Albert Einstein, Andrei Shleifer, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, capital controls, Cass Sunstein, central bank independence, clean water, collapse of Lehman Brothers, congestion charging, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, David Brooks, demographic transition, diversified portfolio, Doha Development Round, Exxon Valdez, financial innovation, fixed income, floating exchange rates, George Akerlof, Gini coefficient, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, income inequality, index fund, interest rate swap, invisible hand, job automation, John Markoff, Joseph Schumpeter, Kenneth Rogoff, libertarian paternalism, low skilled workers, lump of labour, Malacca Straits, market bubble, microcredit, money market fund, money: store of value / unit of account / medium of exchange, Network effects, new economy, open economy, presumed consent, price discrimination, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, race to the bottom, RAND corporation, random walk, rent control, Richard Thaler, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, Silicon Valley, Silicon Valley startup, South China Sea, Steve Jobs, The Market for Lemons, the rule of 72, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, transcontinental railway, trickle-down economics, urban sprawl, Washington Consensus, Yogi Berra, young professional, zero-sum game

They may enjoy the view from the window of a high-rise apartment or as they drive along Lake Shore Drive. A private developer would never collect anything from these people and would therefore undervalue the open space. This is true for many of America’s natural resources. You have probably never been to Prince William Sound in Alaska and may never go there. Yet you almost certainly cared when the huge oil tanker Exxon Valdez ran aground and despoiled the area. Government can make us collectively better off by protecting these kinds of resources. Obviously not all collective endeavors require the hand of government. Wikipedia is a pretty handy resource, even for those who don’t make voluntary contributions to keep it up and running. Every school, church, and neighborhood has a group of eager beavers who do more than their fair share to provide important public benefits, to the great benefit of a much larger group of free riders.


pages: 514 words: 152,903

The Best Business Writing 2013 by Dean Starkman

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Asperger Syndrome, bank run, Basel III, call centre, clean water, cloud computing, collateralized debt obligation, Columbine, computer vision, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, Erik Brynjolfsson, eurozone crisis, Exxon Valdez, factory automation, fixed income, full employment, Goldman Sachs: Vampire Squid, hiring and firing, hydraulic fracturing, income inequality, jimmy wales, job automation, John Markoff, late fees, London Whale, low skilled workers, Mahatma Gandhi, market clearing, Maui Hawaii, Menlo Park, Occupy movement, oil shale / tar sands, Parag Khanna, Pareto efficiency, price stability, Ray Kurzweil, Silicon Valley, Skype, sovereign wealth fund, stakhanovite, Steve Jobs, Stuxnet, the payments system, too big to fail, Vanguard fund, wage slave, Y2K, zero-sum game

The company has a culture of secrecy—with nondisclosure agreements and internal security that can make it seem like an intelligence agency. Company executives deflect press coverage; they sometimes withhold cooperation from congressional investigators, if the letter of the law allows; and when they speak in public, they typically read out sanitized, carefully edited speeches or PowerPoint slides. On March 23, 1989, the Exxon Valdez, an oil tanker, ran aground on a reef in Alaska’s Prince William Sound. The captain had been drinking, and he left the bridge shortly before midnight, in violation of company policies. His crew members became confused, attempted to turn the ship, and lost track of their position altogether. At a few minutes past twelve, there was a terrible sound. “Vessel aground. We’re fucked,” the chief mate called out.


pages: 483 words: 143,123

The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters by Gregory Zuckerman

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activist fund / activist shareholder / activist investor, American energy revolution, Asian financial crisis, Bakken shale, Bernie Sanders, Buckminster Fuller, corporate governance, corporate raider, credit crunch, energy security, Exxon Valdez, housing crisis, hydraulic fracturing, LNG terminal, margin call, Maui Hawaii, North Sea oil, oil rush, oil shale / tar sands, oil shock, peak oil, Peter Thiel, reshoring, self-driving car, Silicon Valley, sovereign wealth fund, Steve Jobs, urban decay

• • • When Bill Stevens retired from Exxon Corp. in 1992, it was an abrupt departure. He had spent more than three decades at the oil and gas giant and had reached the position of president of Exxon’s U.S. operations, one of the top jobs at the company. He was popular with the rank and file and in the middle of a long, successful career. But when the company’s grounded supertanker, the Exxon Valdez, began leaking oil in March 1989, Bill Stevens’s career also became ensnared. The oil tanker sent more than 250,000 barrels of crude pouring into icy Alaskan waters, one of the worst environmental disasters in U.S. history. Within forty-eight hours of the spill, Stevens, who ran the division overseeing Exxon’s crude shipments from Alaska, rushed to the site, trying his best to deal with the aftereffects.

Poisoned Wells: The Dirty Politics of African Oil by Nicholas Shaxson

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Asian financial crisis, Berlin Wall, blood diamonds, business climate, central bank independence, clean water, colonial rule, energy security, Exxon Valdez, failed state, Fall of the Berlin Wall, Hernando de Soto, income per capita, inflation targeting, Martin Wolf, mobile money, offshore financial centre, old-boy network, Ronald Reagan, Scramble for Africa, Yom Kippur War, zero-sum game

The pot of grievance was first brought to the boil not by Asari’s Ijaws but by a smaller group: half a million Ogonis, led by the firebrand politician and writer Ken Saro-Wiwa. When the Ogonis launched a bill of rights in 1990,21 rebuking the oil companies for polluting their land and sowing divisions, the plight of the Delta began to find sympathetic ears in the West, where the public had been sensitized to the horror of oil’s environmental impact by the Exxon Valdez oil spill disaster of 1989. Saro-Wiwa, like many Africans, understood western sensibilities far better than westerners understood Nigeria, and he exploited the environmentally sensitive mood. His book On a Darkling Plain, about the treatment of minority ethnic groups, added locally to the flammable mix. “The system of revenue allocation and the insensitivity of the Nigerian elite,” he wrote, “have turned the [Niger] Delta and its environs into an ecological disaster and dehumanized its inhabitants.”22 Violence 197 P o i s o n e d We l l s spread in Ogoniland, in the first stirrings of a new threat to the world’s energy supplies.

Culture and Prosperity: The Truth About Markets - Why Some Nations Are Rich but Most Remain Poor by John Kay

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Albert Einstein, Asian financial crisis, Barry Marshall: ulcers, Berlin Wall, Big bang: deregulation of the City of London, California gold rush, complexity theory, computer age, constrained optimization, corporate governance, corporate social responsibility, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Donald Trump, double entry bookkeeping, double helix, Edward Lloyd's coffeehouse, equity premium, Ernest Rutherford, European colonialism, experimental economics, Exxon Valdez, failed state, financial innovation, Francis Fukuyama: the end of history, George Akerlof, George Gilder, greed is good, Gunnar Myrdal, haute couture, illegal immigration, income inequality, industrial cluster, information asymmetry, intangible asset, invention of the telephone, invention of the wheel, invisible hand, John Meriwether, John Nash: game theory, John von Neumann, Kenneth Arrow, Kevin Kelly, knowledge economy, labour market flexibility, late capitalism, light touch regulation, Long Term Capital Management, loss aversion, Mahatma Gandhi, market bubble, market clearing, market fundamentalism, means of production, Menlo Park, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Naomi Klein, Nash equilibrium, new economy, oil shale / tar sands, oil shock, Pareto efficiency, Paul Samuelson, pets.com, popular electronics, price discrimination, price mechanism, prisoner's dilemma, profit maximization, purchasing power parity, QWERTY keyboard, Ralph Nader, RAND corporation, random walk, rent-seeking, Right to Buy, risk tolerance, road to serfdom, Ronald Coase, Ronald Reagan, second-price auction, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, Steve Jobs, telemarketer, The Chicago School, The Death and Life of Great American Cities, The Market for Lemons, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, total factor productivity, transaction costs, tulip mania, urban decay, Vilfredo Pareto, Washington Consensus, women in the workforce, yield curve, yield management

And even with productivity twenty times Indian levels, Swedish wheat is not really economic: without the support of the European Union's Common Agricultural Policy, it is unlikely that wheat would be grown in Kivik at all (see chapter 26). 9. The Komi republic is about a thousand miles northeast of Moscow, with good skiing around its capital, Syktyvkar. In 1994-95 oil leaks from the KharyagaUsinsk pipeline produced a spill three times the size of Exxon Valdez's. 10. Nathan Rothschild died on July 28, 1836, probably from either staphylococcus or streptococcus septicemia, which came either from an abscess on his back or from the surgeons' knives used to treat it. This story is told in David Landes (1998), xvii-xviii. 11. Heston and Summers (1991); World Bank (1993). For Penn World Tables, see PENNW. 12. Landes (1998) has an extended discussion of this.


pages: 419 words: 130,627

Last Man Standing: The Ascent of Jamie Dimon and JPMorgan Chase by Duff McDonald

bank run, Bonfire of the Vanities, centralized clearinghouse, collateralized debt obligation, conceptual framework, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Exxon Valdez, financial innovation, fixed income, housing crisis, interest rate swap, Jeff Bezos, John Meriwether, laissez-faire capitalism, Long Term Capital Management, margin call, market bubble, money market fund, moral hazard, negative equity, Northern Rock, profit motive, Renaissance Technologies, risk/return, Rod Stewart played at Stephen Schwarzman birthday party, Saturday Night Live, sovereign wealth fund, statistical model, Steve Ballmer, Steve Jobs, technology bubble, The Chicago School, too big to fail, Vanguard fund, zero-coupon bond, zero-sum game

With regard to structured products, Winters was no neophyte. He had been part of the J.P. Morgan team that had revolutionized credit derivatives in the late 1990s. The first innovation came to be known as a “credit default swap” (CDS). In looking for a way to reduce exposure to their client Exxon—which had recently tapped a multibillion-dollar credit line with the bank in anticipation of having to pay substantial fines for the Exxon Valdez’s oil spill—Winters’s colleague Blythe Masters had found another investor willing to insure the debt for the bank in exchange for an annual fee. In the process, J.P. Morgan was able to reduce its exposure to Exxon without having to sell the loan, thereby keeping client relations strong. (No corporate borrowers want to see their bank unloading their loans.) It was nothing short of revolutionary.


pages: 552 words: 168,518

MacroWikinomics: Rebooting Business and the World by Don Tapscott, Anthony D. Williams

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accounting loophole / creative accounting, airport security, Andrew Keen, augmented reality, Ayatollah Khomeini, barriers to entry, bioinformatics, Bretton Woods, business climate, business process, car-free, carbon footprint, citizen journalism, Clayton Christensen, clean water, Climategate, Climatic Research Unit, cloud computing, collaborative editing, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, commoditize, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, death of newspapers, demographic transition, distributed generation, don't be evil, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, fault tolerance, financial innovation, Galaxy Zoo, game design, global village, Google Earth, Hans Rosling, hive mind, Home mortgage interest deduction, interchangeable parts, Internet of things, invention of movable type, Isaac Newton, James Watt: steam engine, Jaron Lanier, jimmy wales, Joseph Schumpeter, Julian Assange, Kevin Kelly, knowledge economy, knowledge worker, Marc Andreessen, Marshall McLuhan, mass immigration, medical bankruptcy, megacity, mortgage tax deduction, Netflix Prize, new economy, Nicholas Carr, oil shock, old-boy network, online collectivism, open borders, open economy, pattern recognition, peer-to-peer lending, personalized medicine, Ray Kurzweil, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, scientific mainstream, shareholder value, Silicon Valley, Skype, smart grid, smart meter, social graph, social web, software patent, Steve Jobs, text mining, the scientific method, The Wisdom of Crowds, transaction costs, transfer pricing, University of East Anglia, urban sprawl, value at risk, WikiLeaks, X Prize, young professional, Zipcar

His idea when applied to garments neatly solved P&G’s wrinkle problem. This kind of multidisciplinary cross-pollination is often central to producing breakthroughs. Indeed, InnoCentive solvers have been known to yield surprising results that lead organizations down paths they would never have considered. Take the Oil Spill Recovery Institute (OSRI), which was tasked by Congress with the responsibility for cleaning up the Exxon Valdez oil spill off the coast of Alaska. For twenty years it has been trying to figure out how to remove the eighty thousand barrels of oil still sitting at the bottom of Prince William Sound. The problem is these subarctic waters are extremely cold, which means the oil is almost solid and can’t be pumped out of the water using conventional technology. The oil might have sat there forever, except one day in 2007 the Oil Spill Recovery Institute put a challenge on the InnoCentive network, where it didn’t take long for a construction engineer named John Davis to suggest a solution.


pages: 607 words: 185,228

Antarctica by Kim Stanley Robinson

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Exxon Valdez, Fermat's Last Theorem, gravity well, hiring and firing, late capitalism, Occam's razor, Turing test, Zeno's paradox

How about a midnight snack? Chocolate bars?" He indicated a box which held perhaps a gross of wrapped chocolate bars. "Camp crackers?" "Just the Drambers, thanks, " Val said. Wade nodded his agreement; then tried one of the camp crackers. "What about shipping the oil out?" Wade asked. "Tankers. " "Dangerous?" "They ship a big load of oil down to McMurdo every summer. " "But if there was an accident, like the Exxon Valdez... " "Very messy. The Bahia dumped a big load of oil off the peninsula some decades back, and it was years and years before the coast cleaned itself. It did, however, eventually. The environment is pretty good with oil, if you take the long view. " "And add bacteria, " Misha said. "Yes, those bacteria. " Wade said, "We've heard rumors that the next generation of tankers might be submarines.


pages: 726 words: 172,988

The Bankers' New Clothes: What's Wrong With Banking and What to Do About It by Anat Admati, Martin Hellwig

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Andrei Shleifer, asset-backed security, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, bonus culture, break the buck, Carmen Reinhart, central bank independence, centralized clearinghouse, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, diversified portfolio, en.wikipedia.org, Exxon Valdez, financial deregulation, financial innovation, financial intermediation, fixed income, George Akerlof, Growth in a Time of Debt, income inequality, invisible hand, Jean Tirole, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, Larry Wall, light touch regulation, London Interbank Offered Rate, Long Term Capital Management, margin call, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, negative equity, Nick Leeson, Northern Rock, open economy, peer-to-peer lending, regulatory arbitrage, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, Satyajit Das, shareholder value, sovereign wealth fund, technology bubble, The Market for Lemons, the payments system, too big to fail, Upton Sinclair, Yogi Berra

See the section “Banks Have Uncle Sam” in this chapter. 2. Incidents such as this abound in recent history. For example, on November 1, 1986, a huge fire broke out in a dye factory on the Rhine near the Swiss city of Basel. The water used to extinguish the fire mixed with the chemicals and flowed into the river, coloring it red and killing all fish over several hundred miles downstream (see Hernan 2010). The Exxon Valdez and, more recently, the BP Gulf of Mexico oil spills are other examples. 3. In the entire discussion we continue to ignore the benefit Kate derived from living in the house. Considering it would not change the discussion, because she lived in the house in all scenarios. 4. To simplify the discussion we are ignoring here again the potential losses if the house had been abandoned or lost value because of lack of maintenance. 5.


pages: 588 words: 193,087

And Here's the Kicker: Conversations with 21 Top Humor Writers on Their Craft by Mike Sacks

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Albert Einstein, Columbine, Donald Trump, Exxon Valdez, fear of failure, game design, illegal immigration, In Cold Blood by Truman Capote, index card, Norman Mailer, out of africa, pre–internet, Ronald Reagan, Saturday Night Live, upwardly mobile

So, you know, it was a very simple thing. It was so simple at first that it was almost childish. But I kept working on it and honing it through the years. Eventually, the fold-in evolved into what we have now, more than forty years later, which is far more complicated. I've done more than four hundred. You took on a lot of serious issues with these fold-ins over the years, such as Vietnam, the Exxon Valdez, abusive parents, and homeless veterans. Was this an outlet for some of your concerns and anger over what was going on in the world? Not vehemently, but sometimes it became an outlet. But, you know, the fold-in is not supposed to be funny. Who knows what it is? It's a strange duck. One picture turns into another picture. But you have to say something. You can't just have an illustration. It's better to make a comment about the world around us.

Atlas Obscura: An Explorer's Guide to the World's Hidden Wonders by Joshua Foer, Dylan Thuras, Ella Morton

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anti-communist, Berlin Wall, British Empire, Buckminster Fuller, centre right, colonial rule, Colonization of Mars, cosmic microwave background, cuban missile crisis, dark matter, double helix, East Village, Exxon Valdez, Fall of the Berlin Wall, Frank Gehry, germ theory of disease, Golden Gate Park, Google Earth, Haight Ashbury, horn antenna, Ignaz Semmelweis: hand washing, index card, Jacques de Vaucanson, Kowloon Walled City, Louis Pasteur, Mahatma Gandhi, mass immigration, mutually assured destruction, phenotype, Pluto: dwarf planet, Ronald Reagan, Rubik’s Cube, Sapir-Whorf hypothesis, Search for Extraterrestrial Intelligence, trade route, transatlantic slave trade, transcontinental railway, Tunguska event, urban sprawl, Vesna Vulović, white picket fence, wikimedia commons, working poor

The remains of the other 1,300 servicemen are scattered in the lagoon. Truk’s ghost fleet attracts much marine wildlife, including sharks, manta rays, turtles, and scuba divers. The ships continue to rust and deteriorate, causing ecological concerns—the three tankers on the lagoon floor contain about 32,000 tons (29 million kg) of oil, or about three-quarters of the amount spilled during the Exxon-Valdez disaster. Truk Lagoon is also known as Chuuk Lagoon. Flights from Guam arrive at Chuuk airport, on Weno Island in the middle of the lagoon. The trip takes about 90 minutes. 7.416667 151.783333 The world’s largest ship graveyard holds 47 vessels, 270 aircraft, and the remains of about 1,400 Japanese servicemen. NAURU Guano Island YAREN DISTRICT For a few decades after Nauru became an independent nation in 1968, its 6,000 citizens were among the richest, per capita, in the world.


pages: 901 words: 234,905

The Blank Slate: The Modern Denial of Human Nature by Steven Pinker

affirmative action, Albert Einstein, Alfred Russel Wallace, anti-communist, British Empire, clean water, cognitive dissonance, Columbine, conceptual framework, correlation coefficient, correlation does not imply causation, cuban missile crisis, Daniel Kahneman / Amos Tversky, Defenestration of Prague, desegregation, epigenetics, Exxon Valdez, George Akerlof, germ theory of disease, ghettoisation, glass ceiling, Hobbesian trap, income inequality, invention of agriculture, invisible hand, long peace, meta analysis, meta-analysis, More Guns, Less Crime, Murray Gell-Mann, mutually assured destruction, Norman Mailer, Peter Singer: altruism, phenotype, Plutocrats, plutocrats, Potemkin village, prisoner's dilemma, profit motive, QWERTY keyboard, Richard Feynman, Richard Feynman, Richard Thaler, risk tolerance, Robert Bork, Rodney Brooks, Saturday Night Live, speech recognition, stem cell, Steven Pinker, The Bell Curve by Richard Herrnstein and Charles Murray, the new new thing, theory of mind, Thomas Malthus, Thorstein Veblen, ultimatum game, urban renewal, War on Poverty, women in the workforce, Yogi Berra, zero-sum game

Similarly after the discovery of hazardous waste at the Love Canal in 1978, Congress passed the Superfund Act, which required the complete cleanup of all hazardous waste sites. It turned out to cost millions of dollars to clean up the last 10 percent of the waste at a given site—money that could have been spent on cleaning up other sites or reducing other health risks. So the lavish fund went bankrupt before even a fraction of its sites could be decontaminated, and its effect on Americans’ health was debatable. After the Exxon Valdez oil spill, four-fifths of the respondents in one poll said that the country should pursue greater environmental protection “regardless of cost.” Taken literally, that meant they were prepared to shut down all schools, hospitals, and police and fire stations, stop funding social programs, medical research, foreign aid, and national defense, or raise the income tax rate to 99 percent, if that is what it would have cost to protect the environment.


pages: 1,088 words: 297,362

The London Compendium by Ed Glinert

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1960s counterculture, anti-communist, Big bang: deregulation of the City of London, Bob Geldof, British Empire, Brixton riot, Corn Laws, Dava Sobel, double entry bookkeeping, Edward Lloyd's coffeehouse, Exxon Valdez, hiring and firing, invention of the telegraph, Isaac Newton, John Harrison: Longitude, John Snow's cholera map, Khartoum Gordon, Mahatma Gandhi, mass immigration, Nick Leeson, price stability, Ronald Reagan, Sloane Ranger, South China Sea, South Sea Bubble, spice trade, the market place, trade route, union organizing, V2 rocket

The company sealed its reputation as a symbol of trust following the 1906 San Francisco earthquake, when Cuth-bert Evan Heath, a leading broker and underwriter, telegraphed instructions to his California representatives to pay all claims to Lloyd’s customers in full, immediately, whatever the terms of their policies. Twelve years later the sinking of the Titanic cost Lloyd’s underwriters more than $1 million, but decades of success followed until the end of the twentieth century when a series of cataclysmic events – asbestos poisoning, hurricanes, maritime disasters such as the Exxon Valdez oil spill – resulted in $12.4 billion in losses, losses exacerbated by the 2001 World Trade Center destruction. Some Lloyd’s ‘Names’ (those who had pledged a large sum to join a syndicate) refused to meet the losses, saying they had been cheated by those with inside information; the company’s solution was to offer the 34,000 Names a $5 billion package that would cut their losses in return for an agreement to end all litigation