The last government antitrust breakup was AT&T back in 1984. It followed the model of Standard Oil back in 1911. Business and technology have changed a lot since the Sherman Anti-Trust Act was written and passed 130 years ago, in 1890. It’s time we update what we mean by trust-like behavior and how we remedy those consequences. Note that the breakups of Standard Oil and AT&T were...
What I glossed over in Selling the first telephone is the fact that AT&T didn’t actually sell any telephones. Until the breakup of the company in 1984, telephones were rented as part of the monthly service. Renting was a choice to seemingly maximize profits. The excuse AT&T gave the government disallowing customers from owning their own phones was that AT&T was protecting their...
Back to understanding money and economics, I started reading The New Lombard Street soon after serendipitously discovering the wonderful online class, Economics of Money and Banking by Professor Perry Merhling (@PMerhling). After two or three years buried under other books on my nightstand, prodded a bit by a discussion group popping up on Reddit talking about the class, I finally finished...
If you’ve never seen Hans Rosling speak, scroll down, click play, and be amazed. Before Hans passed away, he wrote down his big learnings in Factfulness. This is one one those books everyone should be read. It’s a easy read, and insightful and hopeful, and at the same time, frightening. The key lesson is that almost no one really knows what is going on in the world. Population growh...
Back in 1992, at age 22, I started my first company. Before cellphones. Before the Web. Before broadband. Before everyone had an email address. Before the Lean Startup. But what I (and others) took for granted was a system of Angel investors and venture capitalists. I didn’t think twice back then where that system came from. I didn’t consider whether the same system funded Edison...
Here in the midst of the Coronavirus Pandemic and attached economic crisis, it seemed a good time to read Ben Bernanke’s memoir of the Panic of 2007-2008. Like most of the economics history books I’ve read and posted about, the stories are interesting but the writing quite dry. Too many words devoted to unnecessary details. But ideas that are well worth remembering and learning from...
Economic history books tend to be dry. Not so with Americana: A 400 Year History of American Capitalism. The author does a very good job of weaving threads of stories together to keep the narrative fast paced and interesting. The story spans from the Mayflower in the 1600s through the iPhone in 2007. I previously posted the Mayflower story, as I hadn’t before seen details on how the oft...
There are a few aspects of venture capital whose origins are lost to history. One of these is the 20% stock option pool. Or more simply, the idea that everyone in the startup should own (at least a small amount of) the equity. Does this idea date all the way back to Rock and Davis, or did it come later? Why 20%? Why not 10% or 33% or 50%? Was this idea ever debated, or did one VC decades ago tout...
The story of the Pilgrims and the Mayflower taught to every American child in every American school is less than half of the actual story. Obviously there are a lot of day to day details left out, but the most striking of the omissions is the fact that the endeavor was a for-profit business. The corporate side of this story is told in the first chapter of Americana: A 400-Year History of American...
McKinsey latest report on the pandemic response in Africa includes this very interesting chart of the size of the government responses to the pandemic as a percentage of GDP: It is interesting as South Korea and Italy both spent very little, with vastly different outcomes. It is interesting as if there is any correlation here, it is that the smaller the outbreak, the less spent on stimulus. Thus...
