business

A prison completely run by the inmates

From Mica Rosenberg’s “Guatemala forces end 10-year prisoner rule at jail” (The Washington Post: 25 September 2006):

Guatemalan security forces took over a jail run for over 10 years by inmates who built their own town on prison grounds complete with restaurants, churches and hard-drug laboratories.

Seven prisoners died when 3,000 police and soldiers firing automatic weapons stormed the Pavon prison just after dawn on Monday.

Corrupt guards would only patrol the prison’s perimeter and run the administration section while an “order committee” of hardened inmates controlled the rest. They smuggled in food, drink and luxury goods.

“The people who live here live better than all of us on the outside. They’ve even got pubs,” said soldier Tomas Hernandez, 25.

Pet dogs, including a whining puppy, roamed the deserted prison grounds after the raid. One inmate kept a spider monkey captive, national prison officials said.

But with army helicopters clattering overhead, police backed up by armored cars transferred Pavon’s 1,600 inhabitants to another prison, ending their lives of ease.

The inmates who died were killed in a shootout at the two-story wooden chalet of a convicted Colombian drug trafficker knows as “El Loco,” or “The Madman.”

Blood was splattered on the house’s walls and floor. The Colombian had a widescreen television and high-speed Internet.

Pavon was one of the worst prisons in Guatemala’s penitentiary system, where common criminals, rival “mara” street gangs and drug traffickers often battle for control.

Police had not been into Pavon, on the edge of the town of Fraijanes, since 1996.

It was originally built for 800 inmates as a farm prison where prisoners could grow their own food. But the prison population grew over time and inmates began to construct their own homes on the grounds.

Guards let prisoners bring in whatever they wanted and inmates set up laboratories to produce cocaine, crack and liquor inside Pavon. …

Inmates extorted and kidnapped victims on the outside by giving orders via cell phone. …

They also killed Luis Alfonso Zepeda, a convicted murderer who headed the “order committee.”

Zepeda earned around $25,000 a month from extortion, renting out prison grounds to other inmates and drug trafficking, police said.

His son Samuel lived illegally inside the prison to help run the crime empire, even though he was never sent there by a court. …

Inmates ran at least two churches, one Catholic and the other Evangelical, and restaurants serving typical fare like stews and tortillas.

Stores controlled by the prisoners sold soft drinks and potato chips brought in from the outside.

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The airplane graveyard

From Patrick Smith’s “Ask the pilot” (Salon: 4 August 2006):

The wing is shorn off. It lies upside down in the dirt amid a cluster of desert bushes. The flaps and slats are ripped away, and a nest of pipes sprouts from the engine attachment pylon like the flailing innards of some immense dead beast. Several yards to the west, the center fuselage has come to rest inverted, the cabin cracked open like an eggshell. Inside, shattered rows of overhead bins are visible through a savage tangle of cables, wires, ducts and insulation. Seats are flung everywhere, still attached to one another in smashed-up units of two and three. I come to a pair of first-class chairs, crushed beneath the remains of a thousand-pound bulkhead. In the distance, the plane’s tail sits upright in a gesture of mutilated repose, twisted sharply to one side. High on the fin, the blue and white logo remains visible, save for a large vacant portion where the rudder used to be. …

I’m taking in one of the aviation world’s most curious and fascinating places, the “boneyard” at Mojave Airport in California, 70 miles north of Los Angeles.

The Mojave Desert is a barren place, a region of forbidding rocky hills and centuries-old Joshua trees. But it’s also an area with a rich aerospace history. Edwards Air Force Base and the U.S. Navy’s China Lake weapons station are both here, as well as the airport in Palmdale, where the Lockheed L-1011 was built. The Mojave Airport, officially known as the Mojave Airport and Civilian Aerospace Test Center, is the first FAA-licensed “spaceport” in the United States, home to a burgeoning commercial spacecraft industry. It’s a spot for ingenuity and innovation, you could say. But for hundreds of commercial jetliners, it is also the end of the road.

Of several aircraft scrap yards and storage facilities, including others in Arizona, Oklahoma and elsewhere in California, Mojave is arguably the most famous. …

There are upward of 200 planes at Mojave, though the number rises and falls as hulls are destroyed — or returned to service. Not all of the inventory is permanently grounded or slated for destruction. Neither are the planes necessarily old. Aircraft are taken out of service for a host of reasons, and age, strictly speaking, isn’t always one of them. The west side of the airport is where most of the newer examples are parked. MD-80s, Fokker 100s and an assortment of later-model 737s line the sunbaked apron in a state of semiretirement, waiting for potential buyers. They wear the standard uniform of prolonged storage: liveries blotted out, intakes and sensor probes wrapped and covered to protect them from the ravages of climate — and from the thousands of desert jackrabbits that make their homes here. A few of the ships are literally brand new, flown straight to Mojave from the assembly line to await reassignment after a customer changed its plans. …

The scrap value of a carcass is anywhere from $15,000 to $30,000.

“New arrivals, as it were, tend to come in bunches,” explains Mike Potter, one of several Mojave proprietors. …

Before they’re broken up, jets are scavenged for any useful or valuable parts. Control surfaces — ailerons, rudders, slats and elevators — have been carefully removed. Radomes — the nose-cone assemblies that conceal a plane’s radar — are another item noticeable by their absence. And, almost without exception, engines have been carted away for use elsewhere, in whole or in part. Potter has a point about being careful out here, for the boneyard floor is an obstacle course of random, twisted, dangerously sharp detritus. Curiously, I notice hundreds of discarded oxygen masks, their plastic face cups bearing the gnaw marks of jackrabbits. Some of the jets are almost fully skeletonized, and much of what used to rest inside is now scattered across the ground. …

Near the eastern perimeter sits a mostly intact Continental Airlines 747. This is one of Potter’s birds, deposited here in 1999. A hundred-million-dollar plane, ultimately worth about 25 grand for the recyclers. …

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Word of the day: creative destruction

From Wikipedia’s “Creative destruction” (13 July 2006):

Creative destruction, introduced by the economist Joseph Schumpeter, describes the process of industrial transformation that accompanies radical innovation. In Schumpeter’s vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power. …

There are numerous types of innovation generating creative destruction in an industry:

New markets or products
New equipment
New sources of labor and raw materials
New methods of organization or management
New methods of inventory management
New methods of transportation
New methods of communication (e.g., the Internet)
New methods of advertising and marketing
New financial instruments
New ways to lobby politicians or new legal strategies

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Wal-Mart’s monopsony power damages its vendors

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):

Instead, the firm is also one of the world’s most intrusive, jealous, fastidious micromanagers, and its aim is nothing less than to remake entirely how its suppliers do business, not least so that it can shift many of its own costs of doing business onto them. In addition to dictating what price its suppliers must accept, Wal-Mart also dictates how they package their products, how they ship those products, and how they gather and process information on the movement of those products. Take, for instance, Levi Strauss & Co. Wal-Mart dictates that its suppliers tell it what price they charge Wal-Mart’s competitors, that they accept payment entirely on Wal-Mart’s terms, and that they share information all the way back to the purchase of raw materials. Take, for instance, Newell Rubbermaid. Wal-Mart controls with whom its suppliers speak, how and where they can sell their goods, and even encourages them to support Wal-Mart in its political fights. Take, for instance, Disney. Wal-Mart all but dictates to suppliers where to manufacture their products, as well as how to design those products and what materials and ingredients to use in those products. Take, for instance, Coca-Cola [… Wal-Mart decided that it did not approve of the artificial sweetener Coca-Cola planned to use in a new line of diet colas. In a response that would have been unthinkable just a few years ago, Coca-Cola yielded to the will of an outside firm and designed a second product to meet Wal-Mart’s decree.]. …

Wal-Mart and a growing number of today’s dominant firms, by contrast, are programmed to cut cost faster than price, to slow the introduction of new technologies and techniques, to dictate downward the wages and profits of the millions of people and smaller firms who make and grow what they sell, to break down entire lines of production in the name of efficiency. The effects of this change are clear: We see them in the collapsing profit margins of the firms caught in Wal-Mart’s system. We see them in the fact that of Wal-Mart’s top ten suppliers in 1994, four have sought bankruptcy protection.

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Antitrust suits led to vertical integration & the IT revolution

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):

As the industrial scholar Alfred D. Chandler has noted, the vertically integrated firm — which dominated the American economy for most of the last century — was to a great degree the product of antitrust enforcement. When Theodore Roosevelt began to limit the ability of large companies to grow horizontally, many responded by buying outside suppliers and integrating their operations into vertical lines of production. Many also set up internal research labs to improve existing products and develop new ones. Antitrust law later played a huge role in launching the information revolution. During the Cold War, the Justice Department routinely used antitrust suits to force high-tech firms to share the technologies they had developed. Targeted firms like IBM, RCA, AT&T, and Xerox spilled many thousands of patents onto the market, where they were available to any American competitor for free.

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The mirror of monopoly: monopsony … which may be worse

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):

Popular notions of oligopoly and monopoly tend to focus on the danger that firms, having gained control over a marketplace, will then be able to dictate an unfairly high price, extracting a sort of tax from society as a whole. But what should concern us today even more is a mirror image of monopoly called “monopsony.” Monopsony arises when a firm captures the ability to dictate price to its suppliers, because the suppliers have no real choice other than to deal with that buyer. Not all oligopolists rely on the exercise of monopsony, but a large and growing contingent of today’s largest firms are built to do just that. The ultimate danger of monopsony is that it deprives the firms that actually manufacture products from obtaining an adequate return on their investment. In other words, the ultimate danger of monopsony is that, over time, it tends to destroy the machines and skills on which we all rely.

Examples of monopsony can be difficult to pin down, but we are in luck in that today we have one of the best illustrations of monopsony pricing power in economic history: Wal-Mart. There is little need to recount at any length the retailer’s power over America’s marketplace. For our purposes, a few facts will suffice — that one in every five retail sales in America is recorded at Wal-Mart’s cash registers; that the firm’s revenue nearly equals that of the next six retailers combined; that for many goods, Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years.

… The problem is that Wal-Mart, like other monopsonists, does not participate in the market so much as use its power to micromanage the market, carefully coordinating the actions of thousands of firms from a position above the market.

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Corporate consolidation reigns in American business, & that’s a problem

From Barry C. Lynn’s “The Case for Breaking Up Wal-Mart” (Harper’s: 24 July 2006):

It is now twenty-five years since the Reagan Administration eviscerated America’s century-long tradition of antitrust enforcement. For a generation, big firms have enjoyed almost complete license to use brute economic force to grow only bigger. And so today we find ourselves in a world dominated by immense global oligopolies that every day further limit the flexibility of our economy and our personal freedom within it. There are still many instances of intense competition — just ask General Motors.

But since the great opening of global markets in the early 1990s, the tendency within most of the systems we rely on for manufactured goods, processed commodities, and basic services has been toward ever more extreme consolidation. Consider raw materials: three firms control almost 75 percent of the global market in iron ore. Consider manufacturing services: Owens Illinois has rolled up roughly half the global capacity to supply glass containers. We see extreme consolidation in heavy equipment; General Electric builds 60 percent of large gas turbines as well as 60 percent of large wind turbines. In processed materials; Corning produces 60 percent of the glass for flat-screen televisions. Even in sneakers; Nike and Adidas split a 60-percent share of the global market. Consolidation reigns in banking, meatpacking, oil refining, and grains. It holds even in eyeglasses, a field in which the Italian firm Luxottica has captured control over five of the six national outlets in the U.S. market.

The stakes could not be higher. In systems where oligopolies rule unchecked by the state, competition itself is transformed from a free-for-all into a kind of private-property right, a license to the powerful to fence off entire marketplaces, there to pit supplier against supplier, community against community, and worker against worker, for their own private gain. When oligopolies rule unchecked by the state, what is perverted is the free market itself, and our freedom as individuals within the economy and ultimately within our political system as well.

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Open sources turns software into a service industry

From Eric Steven Raymond’s “Problems in the Environment of Unix” (The Art of Unix Programming: 19 September 2003):

It’s not necessarily going to be an easy transition. Open source turns software into a service industry. Service-provider firms (think of medical and legal practices) can’t be scaled up by injecting more capital into them; those that try only scale up their fixed costs, overshoot their revenue base, and starve to death. The choices come down to singing for your supper (getting paid through tips and donations), running a corner shop (a small, low-overhead service business), or finding a wealthy patron (some large firm that needs to use and modify open-source software for its business purposes).

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The date Silicon Valley (& Intel) was born

From Adam Goodheart’s “10 Days That Changed History” (The New York Times: 2 July 2006):

SEPT. 18, 1957: Revolt of the Nerds

Fed up with their boss, eight lab workers walked off the job on this day in Mountain View, Calif. Their employer, William Shockley, had decided not to continue research into silicon-based semiconductors; frustrated, they decided to undertake the work on their own. The researchers — who would become known as “the traitorous eight” — went on to invent the microprocessor (and to found Intel, among other companies). “Sept. 18 was the birth date of Silicon Valley, of the electronics industry and of the entire digital age,” says Mr. Shockley’s biographer, Joel Shurkin.

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Macaulay in 1841: copyright a tax on readers

From Thomas Babington Macaulay’s “A Speech Delivered In The House Of Commons On The 5th Of February 1841” (Prime Palaver #4: 1 September 2001):

The principle of copyright is this. It is a tax on readers for the purpose of giving a bounty to writers. The tax is an exceedingly bad one; it is a tax on one of the most innocent and most salutary of human pleasures; and never let us forget, that a tax on innocent pleasures is a premium on vicious pleasures. I admit, however, the necessity of giving a bounty to genius and learning. In order to give such a bounty, I willingly submit even to this severe and burdensome tax. Nay, I am ready to increase the tax, if it can be shown that by so doing I should proportionally increase the bounty. My complaint is, that my honourable and learned friend doubles, triples, quadruples, the tax, and makes scarcely any perceptible addition to the bounty.

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Macaulay in 1841 on the problems on the copyright monopoly

From Thomas Babington Macaulay’s “A Speech Delivered In The House Of Commons On The 5th Of February 1841” (Prime Palaver #4: 1 September 2001):

The question of copyright, Sir, like most questions of civil prudence, is neither black nor white, but grey. The system of copyright has great advantages and great disadvantages; and it is our business to ascertain what these are, and then to make an arrangement under which the advantages may be as far as possible secured, and the disadvantages as far as possible excluded. …

We have, then, only one resource left. We must betake ourselves to copyright, be the inconveniences of copyright what they may. Those inconveniences, in truth, are neither few nor small. Copyright is monopoly, and produces all the effects which the general voice of mankind attributes to monopoly. …

I believe, Sir, that I may with safety take it for granted that the effect of monopoly generally is to make articles scarce, to make them dear, and to make them bad. … Thus, then, stands the case. It is good that authors should be remunerated; and the least exceptionable way of remunerating them is by a monopoly. Yet monopoly is an evil. For the sake of the good we must submit to the evil; but the evil ought not to last a day longer than is necessary for the purpose of securing the good. …

For consider this; the evil effects of the monopoly are proportioned to the length of its duration. But the good effects for the sake of which we bear with the evil effects are by no means proportioned to the length of its duration. A monopoly of sixty years produces twice as much evil as a monopoly of thirty years, and thrice as much evil as a monopoly of twenty years. But it is by no means the fact that a posthumous monopoly of sixty years gives to an author thrice as much pleasure and thrice as strong a motive as a posthumous monopoly of twenty years. On the contrary, the difference is so small as to be hardly perceptible. We all know how faintly we are affected by the prospect of very distant advantages, even when they are advantages which we may reasonably hope that we shall ourselves enjoy. But an advantage that is to be enjoyed more than half a century after we are dead, by somebody, we know not by whom, perhaps by somebody unborn, by somebody utterly unconnected with us, is really no motive at all to action. …

Dr Johnson died fifty-six years ago. If the law were what my honourable and learned friend wishes to make it, somebody would now have the monopoly of Dr Johnson’s works. Who that somebody would be it is impossible to say; but we may venture to guess. I guess, then, that it would have been some bookseller, who was the assign of another bookseller, who was the grandson of a third bookseller, who had bought the copyright from Black Frank, the doctor’s servant and residuary legatee, in 1785 or 1786. Now, would the knowledge that this copyright would exist in 1841 have been a source of gratification to Johnson? Would it have stimulated his exertions? Would it have once drawn him out of his bed before noon? Would it have once cheered him under a fit of the spleen? Would it have induced him to give us one more allegory, one more life of a poet, one more imitation of Juvenal? I firmly believe not. I firmly believe that a hundred years ago, when he was writing our debates for the Gentleman’s Magazine, he would very much rather have had twopence to buy a plate of shin of beef at a cook’s shop underground. Considered as a reward to him, the difference between a twenty years’ and sixty years’ term of posthumous copyright would have been nothing or next to nothing. But is the difference nothing to us? I can buy Rasselas for sixpence; I might have had to give five shillings for it. I can buy the Dictionary, the entire genuine Dictionary, for two guineas, perhaps for less; I might have had to give five or six guineas for it. Do I grudge this to a man like Dr Johnson? Not at all. Show me that the prospect of this boon roused him to any vigorous effort, or sustained his spirits under depressing circumstances, and I am quite willing to pay the price of such an object, heavy as that price is. But what I do complain of is that my circumstances are to be worse, and Johnson’s none the better; that I am to give five pounds for what to him was not worth a farthing.

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The real purposes of the American school

From John Taylor Gatto’s “Against School” (Harper’s Magazine: September 2003):

Mass schooling of a compulsory nature really got its teeth into the United States between 1905 and 1915, though it was conceived of much earlier and pushed for throughout most of the nineteenth century. The reason given for this enormous upheaval of family life and cultural traditions was, roughly speaking, threefold:

1) To make good people.
2) To make good citizens.
3) To make each person his or her personal best.

These goals are still trotted out today on a regular basis, and most of us accept them in one form or another as a decent definition of public education’s mission, however short schools actually fall in achieving them. But we are dead wrong. Compounding our error is the fact that the national literature holds numerous and surprisingly consistent statements of compulsory schooling’s true purpose. We have, for example, the great H. L. Mencken, who wrote in The American Mercury for April 1924 that the aim of public education is not

to fill the young of the species with knowledge and awaken their intelligence. . . . Nothing could be further from the truth. The aim.. . is simply to reduce as many individuals as possible to the same safe level, to breed and train a standardized citizenry, to put down dissent and originality. That is its aim in the United States . . . and that is its aim everywhere else.

[Alexander Inglis, author of the 1918 book, Principles of Secondary Education,], for whom a lecture in education at Harvard is named, makes it perfectly clear that compulsory schooling on this continent was intended to be just what it had been for Prussia in the 1820s: a fifth column into the burgeoning democratic movement that threatened to give the peasants and the proletarians a voice at the bargaining table. Modern, industrialized, compulsory schooling was to make a sort of surgical incision into the prospective unity of these underclasses. Divide children by subject, by age-grading, by constant rankings on tests, and by many other more subtle means, and it was unlikely that the ignorant mass of mankind, separated in childhood, would ever reintegrate into a dangerous whole.

Inglis breaks down the purpose – the actual purpose – of modem schooling into six basic functions, any one of which is enough to curl the hair of those innocent enough to believe the three traditional goals listed earlier:

1) The adjustive or adaptive function. Schools are to establish fixed habits of reaction to authority. This, of course, precludes critical judgment completely. It also pretty much destroys the idea that useful or interesting material should be taught, because you can’t test for reflexive obedience until you know whether you can make kids learn, and do, foolish and boring things.

2) The integrating function. This might well be called “the conformity function,” because its intention is to make children as alike as possible. People who conform are predictable, and this is of great use to those who wish to harness and manipulate a large labor force.

3) The diagnostic and directive function. School is meant to determine each student’s proper social role. This is done by logging evidence mathematically and anecdotally on cumulative records. As in “your permanent record.” Yes, you do have one.

4) The differentiating function. Once their social role has been “diagnosed,” children are to be sorted by role and trained only so far as their destination in the social machine merits – and not one step further. So much for making kids their personal best.

5) The selective function. This refers not to human choice at all but to Darwin’s theory of natural selection as applied to what he called “the favored races.” In short, the idea is to help things along by consciously attempting to improve the breeding stock. Schools are meant to tag the unfit – with poor grades, remedial placement, and other punishments – clearly enough that their peers will accept them as inferior and effectively bar them from the reproductive sweepstakes. That’s what all those little humiliations from first grade onward were intended to do: wash the dirt down the drain.

6) The propaedeutic function. The societal system implied by these rules will require an elite group of caretakers. To that end, a small fraction of the kids will quietly be taught how to manage this continuing project, how to watch over and control a population deliberately dumbed down and declawed in order that government might proceed unchallenged and corporations might never want for obedient labor. …

Class may frame the proposition, as when Woodrow Wilson, then president of Princeton University, said the following to the New York City School Teachers Association in 1909: “We want one class of persons to have a liberal education, and we want another class of persons, a very much larger class, of necessity, in every society, to forgo the privileges of a liberal education and fit themselves to perform specific difficult manual tasks.” …

Now, you needn’t have studied marketing to know that there are two groups of people who can always be convinced to consume more than they need to: addicts and children. School has done a pretty good job of turning our children into addicts, but it has done a spectacular job of turning our children into children. Again, this is no accident. Theorists from Plato to Rousseau to our own Dr. Inglis knew that if children could be cloistered with other children, stripped of responsibility and independence, encouraged to develop only the trivializing emotions of greed, envy, jealousy, and fear, they would grow older but never truly grow up. …

Now for the good news. Once you understand the logic behind modern schooling, its tricks and traps are fairly easy to avoid. School trains children to be employees and consumers; teach your own to be leaders and adventurers. School trains children to obey reflexively; teach your own to think critically and independently. Well-schooled kids have a low threshold for boredom; help your own to develop an inner life so that they’ll never be bored. Urge them to take on the serious material, the grown-up material, in history, literature, philosophy, music, art, economics, theology – all the stuff schoolteachers know well enough to avoid. Challenge your kids with plenty of solitude so that they can learn to enjoy their own company, to conduct inner dialogues. Well-schooled people are conditioned to dread being alone, and they seek constant companionship through the TV, the computer, the cell phone, and through shallow friendships quickly acquired and quickly abandoned. Your children should have a more meaningful life, and they can.

First, though, we must wake up to what our schools really are: laboratories of experimentation on young minds, drill centers for the habits and attitudes that corporate society demands. Mandatory education serves children only incidentally; its real purpose is to turn them into servants. Don’t let your own have their childhoods extended, not even for a day. If David Farragut could take command of a captured British warship as a preteen, if Thomas Edison could publish a broadsheet at the age of twelve, if Ben Franklin could apprentice himself to a printer at the same age (then put himself through a course of study that would choke a Yale senior today), there’s no telling what your own kids could do. After a long life, and thirty years in the public school trenches, I’ve concluded that genius is as common as dirt. We suppress our genius only because we haven’t yet figured out how to manage a population of educated men and women. The solution, I think, is simple and glorious. Let them manage themselves.

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Why software is difficult to create … & will always be difficult

From Frederick P. Brooks, Jr.’s “No Silver Bullet: Essence and Accidents of Software Engineering” (Computer: Vol. 20, No. 4 [April 1987] pp. 10-19):

The familiar software project, at least as seen by the nontechnical manager, has something of this character; it is usually innocent and straightforward, but is capable of becoming a monster of missed schedules, blown budgets, and flawed products. So we hear desperate cries for a silver bullet–something to make software costs drop as rapidly as computer hardware costs do.

But, as we look to the horizon of a decade hence, we see no silver bullet. There is no single development, in either technology or in management technique, that by itself promises even one order-of-magnitude improvement in productivity, in reliability, in simplicity. …

The essence of a software entity is a construct of interlocking concepts: data sets, relationships among data items, algorithms, and invocations of functions. This essence is abstract in that such a conceptual construct is the same under many different representations. It is nonetheless highly precise and richly detailed.

I believe the hard part of building software to be the specification, design, and testing of this conceptual construct, not the labor of representing it and testing the fidelity of the representation. We still make syntax errors, to be sure; but they are fuzz compared with the conceptual errors in most systems. …

Let us consider the inherent properties of this irreducible essence of modern software systems: complexity, conformity, changeability, and invisibility.

Complexity. Software entities are more complex for their size than perhaps any other human construct because no two parts are alike (at least above the statement level). …

Many of the classic problems of developing software products derive from this essential complexity and its nonlinear increases with size. From the complexity comes the difficulty of communication among team members, which leads to product flaws, cost overruns, schedule delays. From the complexity comes the difficulty of enumerating, much less understanding, all the possible states of the program, and from that comes the unreliability. From complexity of function comes the difficulty of invoking function, which makes programs hard to use. From complexity of structure comes the difficulty of extending programs to new functions without creating side effects. From complexity of structure come the unvisualized states that constitute security trapdoors.

Not only technical problems, but management problems as well come from the complexity. It makes overview hard, thus impeding conceptual integrity. It makes it hard to find and control all the loose ends. It creates the tremendous learning and understanding burden that makes personnel turnover a disaster.

Conformity. … No such faith comforts the software engineer. Much of the complexity that he must master is arbitrary complexity, forced without rhyme or reason by the many human institutions and systems to which his interfaces must conform. …

Changeability. … All successful software gets changed. Two processes are at work. First, as a software product is found to be useful, people try it in new cases at the edge of or beyond the original domain. The pressures for extended function come chiefly from users who like the basic function and invent new uses for it.

Second, successful software survives beyond the normal life of the machine vehicle for which it is first written. If not new computers, then at least new disks, new displays, new printers come along; and the software must be conformed to its new vehicles of opportunity. …

Invisibility. Software is invisible and unvisualizable. …

The reality of software is not inherently embedded in space. Hence, it has no ready geometric representation in the way that land has maps, silicon chips have diagrams, computers have connectivity schematics. As soon as we attempt to diagram software structure, we find it to constitute not one, but several, general directed graphs superimposed one upon another. The several graphs may represent the flow of control, the flow of data, patterns of dependency, time sequence, name-space relationships. These graphs are usually not even planar, much less hierarchical. …

Past Breakthroughs Solved Accidental Difficulties

If we examine the three steps in software technology development that have been most fruitful in the past, we discover that each attacked a different major difficulty in building software, but that those difficulties have been accidental, not essential, difficulties. …

High-level languages. Surely the most powerful stroke for software productivity, reliability, and simplicity has been the progressive use of high-level languages for programming. …

What does a high-level language accomplish? It frees a program from much of its accidental complexity. …

Time-sharing. Time-sharing brought a major improvement in the productivity of programmers and in the quality of their product, although not so large as that brought by high-level languages.

Time-sharing attacks a quite different difficulty. Time-sharing preserves immediacy, and hence enables one to maintain an overview of complexity. …

Unified programming environments. Unix and Interlisp, the first integrated programming environments to come into widespread use, seem to have improved productivity by integral factors. Why?

They attack the accidental difficulties that result from using individual programs together, by providing integrated libraries, unified file formats, and pipes and filters. As a result, conceptual structures that in principle could always call, feed, and use one another can indeed easily do so in practice.

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A private espionage company for businessmen

From Bo Elkjaer and Kenan Seeberg’s “Echelon’S Architect” (Cryptome: 21 May 2002):

After that, [Bruce McIndoe] started to design Echelon II, an enlargement of the original system.

Bruce McIndoe left the inner circle of the enormous espionage network in 1998, a network run by the National Security Agency, the world’s most powerful intelligence agency, in cooperation with other Western intelligence services. Ekstra Bladet tracked down Bruce McIndoe to IJet Travel Intelligence, a private espionage agency where he is currently second in command.

IJet Travel Intelligence is an exceedingly effective, specialized company that employs former staff members of the NSA, CIA, KGB and South African intelligence services.

The company’s task is to furnish reports for top executives from US business and industry that reveal everything about the destination to which they are travelling for their multinational company. All the information they need to make the trip as safe as possible. The company resembles a miniature version of his previous employer, the world’s most powerful intelligence agency, the NSA. …

“Okay. In short, we have transferred everything I did for the NSA and other services to a private company that then sells intelligence to businesspersons. We get information on everything from local diseases, outbreaks of malaria epidemics and local unrest to strikes, the weather and traffic conditions. Our customers are large multinational companies like Prudential and Texas Instruments. We also work for institutions like the World Bank and the IMF.” …

“Yes, exactly. Our staff are also former intelligent agents who have either developed or run espionage operations for US intelligence agencies or people from the UK, South Africa and Russia.”

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What should one study in college as an undergraduate?

From Paul Graham’s “Undergraduation” (March 2005):

The social sciences are also fairly bogus, because they’re so much influenced by intellectual fashions. If a physicist met a colleague from 100 years ago, he could teach him some new things; if a psychologist met a colleague from 100 years ago, they’d just get into an ideological argument. Yes, of course, you’ll learn something by taking a psychology class. The point is, you’ll learn more by taking a class in another department.

The worthwhile departments, in my opinion, are math, the hard sciences, engineering, history (especially economic and social history, and the history of science), architecture, and the classics. A survey course in art history may be worthwhile. Modern literature is important, but the way to learn about it is just to read. I don’t know enough about music to say.

You can skip the social sciences, philosophy, and the various departments created recently in response to political pressures. Many of these fields talk about important problems, certainly. But the way they talk about them is useless. For example, philosophy talks, among other things, about our obligations to one another; but you can learn more about this from a wise grandmother or E. B. White than from an academic philosopher. …

Language courses are an anomaly. I think they’re better considered as extracurricular activities, like pottery classes. They’d be far more useful when combined with some time living in a country where the language is spoken. On a whim I studied Arabic as a freshman. It was a lot of work, and the only lasting benefits were a weird ability to identify semitic roots and some insights into how people recognize words.

Studio art and creative writing courses are wildcards. Usually you don’t get taught much: you just work (or don’t work) on whatever you want, and then sit around offering “crits” of one another’s creations under the vague supervision of the teacher. But writing and art are both very hard problems that (some) people work honestly at, so they’re worth doing, especially if you can find a good teacher.

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Learn by working on hard problems

From Paul Graham’s “Undergraduation” (March 2005):

Thomas Huxley said “Try to learn something about everything and everything about something.” Most universities aim at this ideal.

But what’s everything? To me it means, all that people learn in the course of working honestly on hard problems. …

Working on hard problems is not, by itself, enough. Medieval alchemists were working on a hard problem, but their approach was so bogus that there was little to learn from studying it, except possibly about people’s ability to delude themselves.

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Education teaches people how to solve problems, not choose the good ones

From Paul Graham’s “Why Smart People Have Bad Ideas” (April 2005):

Why did so few applicants really think about what customers want? I think the problem with many, as with people in their early twenties generally, is that they’ve been trained their whole lives to jump through predefined hoops. They’ve spent 15-20 years solving problems other people have set for them. And how much time deciding what problems would be good to solve? Two or three course projects? They’re good at solving problems, but bad at choosing them.

But that, I’m convinced, is just the effect of training. Or more precisely, the effect of grading. To make grading efficient, everyone has to solve the same problem, and that means it has to be decided in advance. It would be great if schools taught students how to choose problems as well as how to solve them, but I don’t know how you’d run such a class in practice.

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Business, work, and good ideas

From Paul Graham’s “Why Smart People Have Bad Ideas” (April 2005):

This summer, as an experiment, some friends and I are giving seed funding to a bunch of new startups. It’s an experiment because we’re prepared to fund younger founders than most investors would. That’s why we’re doing it during the summer– so even college students can participate. …

The deadline has now passed, and we’re sifting through 227 applications. We expected to divide them into two categories, promising and unpromising. But we soon saw we needed a third: promising people with unpromising ideas. …

One of the most valuable things my father taught me is an old Yorkshire saying: where there’s muck, there’s brass. Meaning that unpleasant work pays. And more to the point here, vice versa. Work people like doesn’t pay well, for reasons of supply and demand. The most extreme case is developing programming languages, which doesn’t pay at all, because people like it so much they do it for free. …

So why were we afraid? We felt we were good at programming, but we lacked confidence in our ability to do a mysterious, undifferentiated thing we called “business.” In fact there is no such thing as “business.” There’s selling, promotion, figuring out what people want, deciding how much to charge, customer support, paying your bills, getting customers to pay you, getting incorporated, raising money, and so on. And the combination is not as hard as it seems, because some tasks (like raising money and getting incorporated) are an O(1) pain in the ass, whether you’re big or small, and others (like selling and promotion) depend more on energy and imagination than any kind of special training.

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