Moore’s Law / Elon Musk

The Books of the Week are “Moore’s Law, The Life of Gordon Moore, Silicon Valley’s Quiet Revolutionary” by Arnold Thackray, David C. Brock and Rachel Jones, published in 2015, and “Elon Musk, Tesla, SpaceX, and the Quest for a Fantastic Future” by Ashlee Vance, published in 2015.

The former biography described not only Gordon Moore’s life, but the histories and cultures of his ancestors, his wife’s family, and the places where he lived.

Born in January 1929 in Pescadero California, Moore was the middle son of three. His father spent most of his working life in law enforcement. He, his father and brothers went fishing and hunting. The family moved to Redwood City in 1938.

At eleven years old, Moore fell in love with chemistry. His “… adolescent hobby of making bombs and explosions” or maybe also the cumulative effect of his noisy hunting excursions were thought to have caused his hearing loss later in life. He wed his college sweetheart and completed a PhD in experimental particle physics at California Institute of Technology.

In 1953, the transistor was starting to replace the vacuum tube in various devices, like TV sets. It also became a handy component in military electronics. In 1956, Moore went to work for William Shockley– a reputable scientist but a psycho boss. Shockley had hubris syndrome and, with his friends from Bell Labs, convinced his company’s major investor to fund the development of a diode rather than the silicon transistor.

In 1957, feeling disgusted and entrepreneurial, Moore and seven of his colleagues left the company and, financed by venture capitalists, eventually formed Fairchild Semiconductor in Mountain View, California. What with the space race, aerospace computing was all the rage. Silicon was a substance that had the right physical properties to advance it.

At Fairchild, Moore formed a research and development group that competed with the manufacturing department. Unfortunately, his temperament was non-confrontational, and his avoidance behavior was bad for business. Fortunately, in 1968, he, Bob Noyce and Andy Grove sported the appropriate diverse set of personalities and skills that maximized profits in a new venture they formed, called Intel. Their strategy was to introduce cutting-edge products to the technology market and be the first to do so.

Intel went public in October 1971, but NOT on a “stock exchange” as the authors wrote. Only on NASDAQ (not an exchange). Moore wanted the company to make computer parts, but not the whole computer, or else it would compete with its customers, such as IBM. By the mid 1970’s, Intel had factories in Malaysia and the Philippines. Moore motivated his initial employees through bribery– stock options and a stock purchase program. He even bribed his own son to finish school.

Intel’s labor- and time-saving devices proliferated in everyday products like calculators, color TV’s, telephone networks, cash registers and watches, not to mention inter-continental ballistic missiles. And spaceships. The authors downplayed the role of video games in the advancement of computer components.

Moore wrote about a concept that played out accurately through the decades that came to be known as Moore’s Law. In 1976, the price of silicon transistors– which are put on memory microchips– was less than a penny. That price got lower and lower as technology got better and faster. Unfortunately, according to the book, this economic growth has run its course in the United States and is predicted to come to an end in the next five years or so.

Read the book to learn how Intel cheated by taking a page from Microsoft’s playbook (and partnered with it)– to become a monopoly– in order to dominate the PC world; what the billionaire Moore did after he was forced to retire (very reluctantly; hint– he engaged in philanthropy from which he required measurability and accountability); and much more about his company, lifestyle and family.

Born into a relatively wealthy family in 1971 in Pretoria, South Africa, Elon Musk is the oldest of three children. A voracious reader, he, like Isaac Asimov, was also an insufferable know-it-all, and thus became a social outcast. At about eight years old, he chose to go live with his psychologically abusive, rabid-apartheidist father when his parents split.

Musk engaged in the usual leisure pursuits of nerdy boys of his generation: Dungeons and Dragons, computer programming, rocketry and chemistry explosions. Being super-smart, he learned that the United States was superior to South Africa in terms  entrepreneurial opportunities. He therefore got Canadian citizenship through his mother’s ancestors, and then moved to the United States as a young man.

Musk attended college and graduate school in Pennsylvania. He studied business, physics and economics. He charged admission for alcohol parties to raise money to pay for his tuition. In 1995, he went into business with his brother. Four years later, their website start-up, Zip2, was sold to Compaq for a tidy sum. He then started and/or worked on other projects, including an internet bank, an electric car, spacecraft and devices that harness solar power.

Certain aspects of Musk’s personality in the workplace are comparable to various other famous people. Musk’s dysfunctional managerial style is a blessing and a curse. He, like the late Steve Jobs, is hard-driving on employees to the point of meanness. But his focus and workaholic business ventures have achieved what many said was impossible. His keen entrepreneurial instincts, similar to those of Bill Gates, have seen him through. Also like Gates, he has delivered on what he promised, but usually way over deadline.

When it comes to space exploration, Musk, like Freeman Dyson, shoots not for colonizing the moon, but for colonizing Mars. Musk, like Richard Stallman, believes in the free exchange of information. He truly wants to improve humanity so much so that, according to the author, he eventually shared with the world (!) the intellectual property of his electric car company, Tesla. In 2005, its first car was completed by a mere eighteen workers.

However, in 2007, Musk was very possessive of Tesla. Contrary to the recommendation of an interim CEO, he stubbornly refused to cut the near-bankrupt company’s losses and sell it to an experienced international automaker. He was competing with not only overwhelmingly powerful and politically influential automakers, but also with military contractors and the oil industry.

Read the book to learn of two major automakers who have invested in Tesla; of how the Obama administration helped keep the company afloat; of the myriad benefits the world is deriving from Musk’s  innovations; and of Musk’s personal life.

Grand Delusions – BONUS POST

The Bonus Book of the Week is “Grand Delusions, The Cosmic Career of John DeLorean” by Hillel Levin, published in 1983. This volume described the adventures of a car company engineer and entrepreneur, not to mention swindler.

The book’s first chapter was a summary of his entire career, suspense be damned. The section on his makeover and marriages was disorganized and redundant. One more criticism– the author interviewed only the book’s subject twice, and listed no notes, references or bibliography.

Anyhow, born in January 1925 in Detroit, DeLorean was the oldest of five sons. His father was an alcoholic Romanian; his mother, an Austrian. He kept busy while attending Lawrence Tech in Michigan. He wrote for the school newspaper and was on the student council. He joined a fraternity, danced in night clubs and drove a fast car.

DeLorean held a series of jobs including salesman, trainee in a special program at Chrysler, engineer at Packard, head engineer and then general manager of General Motors’ Pontiac division, and by the late 1960’s, general manager of its Chevrolet division.

After departing from his full-time job under murky circumstances, DeLorean and his sidekick Roy Nesseth posed as entrepreneurs who executed crooked business deals. Victims included an auto-parts patent holder, a farmer/rancher, and a financially struggling Cadillac dealership, among others. By the mid-1970’s, the pair had a bunch of business failures and lawsuits against them.

Journalists were suckered into writing about DeLorean’s past glory as a brilliant engineer. He “… must have learned that if he didn’t say too much, the reporter wouldn’t bother to check any further… They were still looking for dirt on General Motors, and the ex-executive was more than willing to give it to them… The maverick auto engineer was too compelling a character to be deflated with investigative journalism.” DeLorean fooled people just like Bernie Madoff did, although not on as grand a scale.

When he started his own car company, DeLorean let his attorney create a complicated network of sister companies to deliberately obfuscate financial and legal matters. It took the entire second half of the Seventies.

A boatload of fundraising was required to pay lavish executives’ salaries, design their offices, choose a manufacturing site, build the factory, sign up the car dealers, etc. The author erroneously used the term “comptroller” instead of “controller” when discussing the pesky bean-counter who complained about the arrogant, greedy DeLorean’s huge monetary outlays on all things for himself. “As Dewey [DeLorean’s first controller] predicted, the improprieties grew exponentially with the influx of money from the British government.”

DeLorean was the type of man who fancied himself as having some of the traits of James Bond. A man such as this, with a big ego, marries a model or actress at least a decade younger than himself. Like DeLorean, other James-Bond wannabes have assumed prominent leadership roles, and become international celebrities. The list includes but is far from limited to: Charlie Chaplin, Cornelius Vanderbilt IV, John F. Kennedy, Nelson Mandela, Elon Musk and of course, Ian Fleming.

Read the book to learn the details of the combination of honest ineptitude and premeditated, nervy criminality in which DeLorean and his accomplices engaged in the context of how not to become an automaker.

Winging It!

The Book of the Week is “Winging It!” by Jack Jefford, published in 1981.

Born in 1910, Jefford knew he wanted to be a pilot when he was six years old. By his late teens, he was taking flying lessons with money earned doing odd jobs. During the Depression Era, he lived on the cheap in Denver’s red-light district, renting a room for $3 a week and paying tens of cents for his meals at restaurants.

In May of 1931, Jefford got his first pilot’s private license issued by the Department of Commerce. He was allowed to fly anywhere in the United States and take on passengers, but only for free. The regions where aviation evolved early on included Nebraska, eastern Colorado, eastern Wyoming and Alaska.

Jefford worked for the Goodall Electric Manufacturing Company. His boss attempted to execute a new concept:  audio advertising from an airplane, via “…a microphone, two powerful amplifiers energized by a wind-driven AC generator, and large horn-shaped airborne speakers.” However, it worked too well, and proved to be not only a nuisance to people below, but a safety hazard. So urban areas outlawed that sort of thing.

Anyhow, autumn 1938 saw Alaskan planes get (Morse-code) radios installed. “Prior to the use of radio, no one knew you were in trouble unless you’d been missing for four or five days.” As various industries progressed thanks to aviation, the author helped collect data for weather forecasters in Oklahoma and helped deliver mail in Arkansas. He even saved some lives by rescuing people with medical emergencies.

It wasn’t always smooth soaring, though. In June 1939, Jefford flew an all-wood Lockheed aircraft from Nome to Seattle into a thunderstorm with noise, turbulence, lightning and hail. His boss– owner of Mirow Air Service, an Alaskan air carrier– died in an air crash that was searching for a downed plane.  The charter service employed an operations manager, a mechanic, a radio operator and pilots. The planes in Alaska had skis on the bottom to land in snow. Otherwise, the planes might roll over, sustaining damage to their three propellers, or their cowlings.

Read the book to learn how the author handled an emergency in dense ice-fog on a C-123 plane that had lost use of its elevators, jet power and one of its two engines; plus, learn about many more of his piloting adventures from the 1930’s through the 1970’s.

Devils on the Deep Blue Sea

The Book of the Week is “Devils on the Deep Blue Sea, The Dreams, Schemes and Showdowns that Built America’s Cruise-Ship Empires” by Kristoffer A. Garin, published in 2005.

As of the book’s writing, Carnival Corporation and Royal Caribbean were two holding companies that dominated the pleasure cruise industry. The chairman and CEO of the former controlled almost half of the passenger capacity.

The passenger capacity of one cruise ship skyrocketed from less than two hundred to seven hundred fifty in the decade after WWII. Vacation culture was changing from wintertime to year-round Caribbean jaunts. Miami, Florida was the place of embarkation.

In autumn 1965, a cruise fire caused 91 deaths, and put the industry on edge. Negligence and incompetence of the captain and crew were to blame. Nevertheless, even at that time, the travel company owner was able to weasel out of legal trouble because the ship was registered in Panama. He didn’t escape financial trouble thereafter, though.

In 1966, Miami got a new passenger terminal. The 1970’s saw the city’s docks fraught with organized crime, thanks to the port director. Starting in the late 1970’s, the TV show “Love Boat” significantly boosted the number of people of all ages who tried cruising. In 1981, the industry experienced labor trouble.

Read the book to learn how the industry evolved; how Ted Arison earned his less-than-stellar reputation; how business-savvy executives seeking to merge with or acquire distressed cruise-line assets did so through the decades, including the Princess Cruises saga; and the tax, employment and supply-chain tricks they use to maximize profits.

Skyway

The Book of the Week is “Skyway” by Bill DeYoung, published in 2013. This volume describes the Sunshine Skyway disaster that occurred in May 1980. The Skyway (whose name has since been changed) is a bridge across Tampa Bay that links Pinellas and Manatee counties in Florida.

A large boat was buffeted about by unexpected stormy weather on the fateful day, and the boat’s pilot was unable to negotiate a safe passage to a shipping lane under the bridge.

Read the book to learn exactly what happened, and whose lives were changed forever by the tragedy.

Mule

The Book of the Week is “Mule, My Dangerous Life as a Drug Smuggler Turned DEA Informant” by Chris Heifner, published in 2012.

This suspenseful ebook is a personal account of someone who drove truckfuls of marijuana across state lines for tens of thousands of dollars per trip. In a college class, the author happened to meet a guy who ran a large smuggling operation. In the late 1990’s, this illegal business was booming in Texas, partly because some members of the Mexican army were accomplices. One time, when Heifner drove a load to Mexico, he witnessed the crash of a prop plane. The military rushed over to remove its contraband cargo before attending to the injured pilot.

Drug smuggling is a heartless business in which no one completely trusts anyone. Initially, the fear of getting caught was hard to stomach for the author because the punishment was so harsh, but the lure of the vast quantity of easy money was addictive. Read the book to learn what transpired when he did get caught.

Louis Renault, A Biography

The Book of the Week is “Louis Renault, A Biography” by Anthony Rhodes, published in 1969.

Renault, an automobile entrepreneur, was born in February 1877. When he began his career, there were only two classes of any real importance in France– the aristocracy and the bourgeoisie. Renault sold vehicles initially for commercial purposes like taxis, public buses and milk delivery trucks.

By 1905, there were 22 intensely competing European automakers. The year 1908 saw six-cylinder engines made by eight French, ten American, three Belgian and one German manufacturer. In 1909, Renault sold his cars in New York. The goal was to sell 1,200 to 1,500 of them.

In the 1920’s, Citroen, Renault’s chief rival, employed many women in his factories. He conducted an ongoing direct-marketing campaign, mailing letters to potential first-time and new car buyers who had visited the local showroom and expressed interest in a purchase. He also made toy models of his cars for kids. Renault and Citroen competed in starting bus lines between cities in France. Citroen was taken over by Michelin after going bankrupt in 1935.

Read the book to learn of Renault’s accumulation of wealth, his company’s corporate culture and labor troubles, what transpired among automakers during the World Wars and through the decades, and how history dealt Renault a serious blow toward the end of his life.

The Impossible Rescue – Bonus Post

This blogger skimmed “The Impossible Rescue” by Martin W. Sandler, published in 2012.

This ebook describes the 1897 disaster in which eight whaling ships were hemmed in by mid-autumn ice for months when unexpectedly severe weather struck Point Barrow, Alaska. The total 265-member crews faced starvation, as they had insufficient food supplies for surviving more than a few months. They were subjected to darkness day and night, and temperatures tens of degrees below zero Fahrenheit.

The whalers’ volunteer-rescuers consisted of a few small parties of local natives and men from the United States who, at different intervals, coming from different directions, braved blizzards in trekking more than 1,500 miles overland with varying numbers of dogs, sleds, reindeer and hundreds of pounds in supplies. [It might be recalled that America purchased the territory of Alaska in 1867, and Alaska became a state in 1959.]

What the men did entailed life-threatening risks and extreme sacrifices. One of the groups was traveling with both dogs and reindeer simultaneously.  When sleds are pulled by both kinds of animals, “…the dogs follow their natural instincts to attack the deer.” Even keeping the dogs as far back from the deer as possible proved quite difficult.

Read the book to learn what happened to the rescuers and the rescued.

Until the Sea Shall Free Them

The Book of the Week is “Until the Sea Shall Free them” by Robert Frump, published in 2001.

This wordy, repetitive, yet suspenseful book tells the detailed story of the February 1983 shipwreck of the Marine Electric, among many other briefly described maritime catastrophes. The scurvy old 605-foot bulk carrier transported coal in the North Atlantic Ocean from Boston, MA to Norfolk, VA.

The investigation of what happened conducted by the Marine Board– a panel of industry officials– was subject to the vagaries of the maritime legal system. Safety inspections of ships were performed by the U.S. Coast Guard and the American Bureau of Shipping. The National Transportation Safety Board was yet another regulatory body of maritime matters.

The Marine Board generated reports on shipping accidents. In rare cases, its recommendations might include Justice Department investigation and prosecution of a shipping company executive, or a review of the license of a ship’s captain; the latter, for criminal law violation, like for negligence in putting men’s lives at risk for failure to follow safety procedures.

A ship’s officers were usually blamed for disasters because ship owners and builders had a friendly relationship with the federal government. Political contributions helped elect candidates who turned a blind eye to regulating safety in marine commerce.

The ship’s top officers were under tremendous pressure to go on a voyage despite safety violations. Whistle-blowing behavior might get them fired. There was always the threat that a rival union would be awarded their current shipping contract. Some men waited more than a year before they could be assigned their next job on a ship.

For years, disasters were waiting to happen, due to the “rationalization, denial, greed and stubbornness” in connection with repairing and mantaining of decades-old ships. In the mid-1970’s, more than one fifth of all deaths from shipping accidents were due to structural failures of the vessels.

Heartbreakingly, during a winter storm at sea, some crew members die when they are so close to surviving. The lifeboats are buffeted about by rough waves and dashed on rocks or into a seawall, or men who lack protective clothing and proper safety equipment, fall into the freezing water while trying to board a rescue boat.

As in many other industries, shipping is one in which the big companies care more about money than seeking to reduce dangerous conditions. Despite poor safety records and the expenses of lawsuits and damage to their reputations, the large players stayed in business through the decades of the twentieth century. On the flip side, in accidents, numerous greedy seamen abused a lenient system that awarded them big bucks in personal injury cases.

Read the book to learn the fates of the parties associated with the Marine Electric after its fall from grace.