Tag: Sociology

Consider the Source

No Comments

The International Monetary Fund, which has never found an austerity program it didn’t like, and has consistently argued for the emasculation of worker rights, has just issued a report saying that workers rights must be restored in the US.

Seriously, this is not something that I expected from this organization.

The IMF has been on the side of the banks and the oligarchs since its inception:

Systematic erosion of workers’ power relative to their employers has suppressed US wages

Politicians in both US political parties now acknowledge wage stagnation and have adopted narratives claiming that “the system is rigged.” Some focus on the number of immigrants and on what they see as unfair trade with China. Others focus on monopolies charging higher prices and reaping huge profits. There is, however, no agreement on what, and who, rigged the system.

In fact, as my new paper with colleagues Josh Bivens and Heidi Shierholz, “Explaining Wage Suppression” shows, wages have been kept low in the United States because workers have been systematically disempowered as a result of corporate practices and economic policies that were adopted—or reforms that were blocked—at the behest of business and the wealthy. This lack of worker power has caused wage suppression, increased wage inequality, and exacerbated racial disparities. The specific mechanisms behind this shift in power are excessive unemployment, globalization, eroded labor standards and their lack of enforcement, weakened collective bargaining, and corporate structure changes that disadvantage workers. To reestablish patterns of growth that benefit the vast majority requires new policies that center on rebuilding worker power.

Coming from someone like me, this would be considered pinko ranting, but from the IMF, even publishing this paper represents a shift.

 

Hunter S. Thompson Prophesied the Spite Voter

No Comments

On a number of occasions, I have referenced Mark Ames seminal essay, “Spite the vote,” in which he posits that the hoi polloi (οἱ πολλοί) are not mindless zombies brainwashed by Fox News and Karl Rove (this was written in 2004), and realized that they literally had no place in the future envisioned by liberals, and so tried to pull everything down around the heads.

This sounds even more relevant 16 years later, but I think that using the word seminal may have been an overstatement, because before Mark Ames, there was Hunter S. Thompson, who wrote about this same phenomenon in his breakthrough book Hell’s Angels: The Strange and Terrible Saga of the Outlaw Motorcycle Gangs in 1966:

In late March, Donald Trump opened a rally in Wisconsin by mocking the state’s governor, Scott Walker, who had just endorsed his Republican opponent, Ted Cruz. “He came in on his Harley,” Trump said of Walker, “but he doesn’t look like a motorcycle guy.”

“The motorcycle guys,” he added, “like Trump.”

It has been 50 years since Hunter S. Thompson published the definitive book on motorcycle guys: Hell’s Angels: The Strange and Terrible Saga of the Outlaw Motorcycle Gangs. It grew out of a piece first published in The Nation one year earlier. My grandfather, Carey McWilliams, editor of the magazine from 1955 to 1975, commissioned the piece from Thompson—it was the gonzo journalist’s first big break, and the beginning of a friendship between the two men that would last until my grandfather died in 1980. Because of that family connection, I had long known that Hell’s Angels was a political book. Even so, I was surprised, when I finally picked it up a few years ago, by how prophetic Thompson is and how eerily he anticipates 21st-century American politics. This year, when people asked me what I thought of the election, I kept telling them to read Hell’s Angels.

Most people read Hell’s Angels for the lurid stories of sex and drugs. But that misses the point entirely. What’s truly shocking about reading the book today is how well Thompson foresaw the retaliatory, right-wing politics that now goes by the name of Trumpism. After following the motorcycle guys around for months, Thompson concluded that the most striking thing about them was not their hedonism but their “ethic of total retaliation” against a technologically advanced and economically changing America in which they felt they’d been counted out and left behind. Thompson saw the appeal of that retaliatory ethic. He claimed that a small part of every human being longs to burn it all down, especially when faced with great and impersonal powers that seem hostile to your very existence. In the United States, a place of ever greater and more impersonal powers, the ethic of total retaliation was likely to catch on.

What made that outcome almost certain, Thompson thought, was the obliviousness of Berkeley, California, types who, from the safety of their cocktail parties, imagined that they understood and represented the downtrodden. The Berkeley types, Thompson thought, were not going to realize how presumptuous they had been until the downtrodden broke into one of those cocktail parties and embarked on a campaign of rape, pillage, and slaughter. For Thompson, the Angels weren’t important because they heralded a new movement of cultural hedonism, but because they were the advance guard for a new kind of right-wing politics. As Thompson presciently wrote in the Nation piece he later expanded on in Hell’s Angels, that kind of politics is “nearly impossible to deal with” using reason or empathy or awareness-raising or any of the other favorite tools of the left.

………

Thompson would want us to see this: These are men and women who know that, by all intellectual and economic standards, they cannot win the game. So whether it be out of self-protection or an overcompensation for their own profound sense of shame, they lash out at politicians, judges, scientists, teachers, Wall Street, universities, the media, legislatures—even at elections. They are not interested in contemplating serious reforms to the system; they are either too pessimistic or too disappointed to believe that is possible. So the best they can do is adopt a position of total irreverence: to show they hate the players and the game. 

Understood in those terms, the idea that Trumpism is “populist” seems misplaced. Populism is a belief in the right of ordinary people, rather than political insiders, to rule. Trumpism, by contrast, operates on the presumption that ordinary people aren’t going to get any chance to rule no matter what they do, so they might as well piss off the political insiders using the only tool left available to them: the vote. 

54 Years ago, and it sounds like today.

It’s telling that this awareness seems to flow down dynastic lines, Susan McWilliams’ grandfather gave Thompson the assignment to cover the motorcycle gang, and her current position as a tenured professor at an expensive and respected private liberal arts college, (Pomona) certainly as a results of advantages that came from who her parents (and grandparents) were.

Far too many people who have won the birth lottery, and so were born on third base think that they hit a triple.

This is a Chicken Egg Thing

No Comments

It turns out that black home owners are assessed significantly higher property taxes than white home owners.

Obviously, racism figures prominently in this state of affairs, but the obvious question that is raised is whether this is an artifact of the communities in which they live, or does it effect people of color regardless of whether they live in largely segregated communities.

It turns out that it’s a bit of both:

We decompose this finding into two components. We show that slightly more than half of the assessment gap can be explained by between-neighborhood variation. Residential sorting by race in the U.S. means that the average black or Hispanic resident faces a different set of local attributes than a white resident does. Market prices appear to be substantially more sensitive to a wide range of observable neighborhood characteristics than assessed valuations. We use hedonic regressions to show that market prices and assessed values align well on home-level attributes, but diverge on tract-level characteristics. This mismatch, along with residential segregation patterns, generates 6–7 percentage points of the total tax burden inequality.

We show that the remaining 5–6 percentage points of inequality persists even within very small geography. We hypothesize that the main channel for this effect is racial differ- entials in property tax appeals. We use administrative data from Cook County, the second largest county in the US, to demonstrate that such racial differentials can exist: in Cook County, minority residents are 1% less likely to appeal; are 2% less likely to win an ap- peal; and conditional on success, receive a 2–3% smaller reduction. We then exploit racial changes in ownership around property transactions to test for racial differentials in assessment trajectories, and find patterns consistent with an appeals mechanism in the national data.

There are communities that target minorities in all sorts of nefarious ways, (Ferguson, MO) for revenue, AND individual black homeowners are simply charged more, and when they appeal property tax assessments they more likely to be denied.

Tweet of the Day

No Comments
cheerily walking into the HOA meeting with this handy guide pic.twitter.com/wHXYx4xVtb

— womanfredo tafuri (@mcmansionhell) July 1, 2020

As an FYI, the section reproduced by the tweeter is from a World War II vintage OSS manual on sabotage, specifically,  sections 11 and 12 of the OSS’s Simple Sabotage Field Manual.

Using this at a HOA meeting is the most appropriate use of the dark arts ever.

Today in Savage Book Reviews

No Comments

Matt Taibbi giving a savage book review is its own reward.

I cannot possibly due justice to it so I will leave you with just this quote:

It takes a special kind of ignorant for an author to choose an example that illustrates the mathematical opposite of one’s intended point, but this isn’t uncommon in White Fragility, which may be the dumbest book ever written. It makes The Art of the Deal read like Anna Karenina.

Go read.

Even if you disagree with the thesis, you will be amused.

Is Work from Home the New Normal?

No Comments

If this is the new normal, it presages a major change in the workplace, at least the office workplace, though I have no clue as to what the end-state would be.  ¯_(ツ)_/¯

New York City will allow companies to reopen their offices on Monday after a three-month lockdown from the pandemic. Few employees seem ready or willing to go back.

Most companies are taking a cautious approach. Some are keeping offices closed, while others are opening them at reduced occupancy and allowing employees to decide if they prefer to keep working from home. Mary Ann Tighe, chief executive for the tri-state region at real-estate services firm CBRE Group Inc., said many New York City clients don’t plan on being fully back in the office before Labor Day. And maybe only then if schools have reopened.

Companies are worried about another wave of infections, Ms. Tighe said. Some are also concerned about commuting bottlenecks, if more drivers lead to traffic jams or public transit limits the number of riders. Lower maximum occupancy in elevators could also lead to lines.

New York real-estate brokers and landlords say they anticipate only 10% to 20% of Manhattan’s office workers will return on Monday, though they expect that figure to increase gradually over the summer. Traders at financial-services companies are eager to return, these people say, but most of their other employees are staying away. Tech and creative companies are also taking their time.

Potentially, this could mean a number of things:

  • Reduced demand for office space.
  • Fewer positions in middle-management.
  • Reductions in traffic and commuting time.
  • Human Sacrifice, dogs and cats living together, mass hysteria.

OK, maybe not that last one, but if the demand for office space in the center city drops long term by more than a few percent, it could be the genesis of another banking or real estate crisis.

I Credit Smart Phones

No Comments

Protests against inequality and police brutality that were once limited to the slums and their immediate neighbors are now moving to wealthier neighborhoods, as technology, particularly smart phones allow organizers to organize more distant locales.

This is a good thing. Protests SHOULD afflict the comfortable:

In the years since American cities erupted in anger in the 1960s, many of the conditions that fueled that unrest — even with the ideas drafted to address them — have changed little. Most deeply poor urban neighborhoods have remained that way. Schools that for a time grew more integrated have resegregated. Aggressive policing has continued as a defining feature of urban life for young black men.

………

In Chicago, protesters have converged on Michigan Avenue, the city’s famous strip of high-end retail. In Atlanta, it has been affluent Buckhead. In Philadelphia, Center City. In New York, SoHo. In Los Angeles, protest leaders have deliberately steered toward upscale neighborhoods, including downtown and Beverly Hills.

………

There is limited symbolism in a store hit by opportunistic looting. But historians have noted the shifting geography of protest. In 1964 in Philadelphia, black neighborhoods along Columbia Avenue and North Broad Street were damaged, Thomas Sugrue, a historian at N.Y.U., pointed out. This time, high-end Chestnut and Walnut Streets around Rittenhouse Square downtown were hit over the weekend, before unrest spread through much of the city. In Los Angeles, where Watts was a site of unrest in 1960s, now Rodeo Drive is one instead.

This is good.

In the Annals of Stupidity

No Comments

The idea that we should reconfigure cities to accommodate the limitations of robot cars is stupid.

It’s History Schmistory stupid:

Special report Behind the mostly fake “battle” about driverless cars (conventional versus autonomous is the one that captures all the headlines), there are several much more important scraps. One is over the future of the city: will a city be built around machines or people? How much will pedestrians have to sacrifice for the driverless car to succeed?

………

But the driverless car has to deal with pedestrians, as Christian Wolmar discussed at The Register last week: “The open spaces that cities like to encourage would end as the barricades go up. And foot movement would need to be enforced with Singapore-style authoritarianism.”

………

“The randomness of the environment such as children or wildlife cannot be dealt with by today’s technology,” admits Volvo’s director of autonomous driving, Markus Rothoff. The driverless car can’t hear you scream. Tests are not being conducted in real pedestrian-congested conditions.

The cheat is: just get rid of the people around cars, so you don’t need to solve these problems.

When people talk about the future of self-driving cars in the foreseeable future,  this is what they mean.

If this sounds far fetched, I will remind you that there is a recent historical precedent:  In the early 20th century, they restructured the city, and criminalized what had been ordinary walking:  They called it “Jaywalking”.

Do not underestimate the willingness of people who profit from driverless cars to restrict the rest of us, and to place the costs on society as a whole.

They have done it before.

What a Surprise: Trigger Happy Militarized Policing Does Not Make Us Safer

No Comments

As a result of of a Maryland law requiring SWAT raids to be documented, a study has shown that SWAT teams do nothing to make the public, and the cops, safer:

A study has been released confirming what many have suspected: militarization of law enforcement doesn’t make communities safer, has zero effect on officer safety, and is rarely deployed as advertised when agencies make pitches for the acquisition of military gear.

The most frequent recipient of military tools and training are SWAT teams. Professor Jonathan Mummolo’s research — published by the National Academy of Sciences — gained unprecedented access to SWAT deployment numbers, thanks to a public records request and a Maryland state law requiring documentation of every SWAT raid performed. (That law was allowed to expire by legislators who apparently felt it provided too much transparency and accountability.)

With these numbers, Mummolo was able to compare SWAT deployments to other stats, as well as see just how often SWAT teams were deployed to handle dangerous situations like robberies, shootings, hostage-taking, etc. What he discovered was, sadly, unsurprising. Police officials talk about the necessity of SWAT teams and military gear using references to barricaded suspects, terrorist attacks, active shooters…. pretty much anything but what they actually use them for. From the paper [PDF]:

[R]oughly 90% of SWAT deployments in that state over 5 fiscal years were conducted to serve search warrants. Previous work has shown that the use of SWAT teams to serve warrants, a practice which escalated as a result of the war on drugs, is an extremely disruptive event in the lives of citizens and often involves percussive grenades, battering rams, substantial property damage, and in rare cases deadly altercations stemming from citizens’ mistaken belief that they are experiencing a home invasion. […] less than 5% of deployments involved a “barricade” scenario, which typically involves an armed suspect refusing to surrender to police. Violence to people and animals is rare, and gun shots are fired 1.2% of the time—roughly 100 deployments during this period. While the data suggest that indiscriminate violence is less common than some anecdotal reports suggest, they also show that the vast majority of SWAT deployments occur in connection with non-emergency scenarios, predominately to serve search warrants.

Similarly unsurprising is data showing SWAT teams are deployed far more often in areas with a higher concentration of African American residents. Mummolo’s research shows a 10% increase in African American population resulted in a 10.5% increase in SWAT deployments. 

………

All the gear obtained by police agencies to make officers safer doesn’t seem to have an effect on officer safety. The data shows negligible effects on officer injuries or deaths. Despite being touted as essential tools to combat a supposed increase in criminal firepower, SWAT teams and their military gear spend more time serving warrants than facing dangerous situations. Maryland SWAT stats — compared against other data reported by law enforcement agencies — results in this conclusion:

[T]here is no evidence that acquiring a SWAT team lowers crime or promotes officer safety.

Surveys conducted by Mummolo show SWAT teams — and police militarization in general — have a negative effect on public perception. SWAT teams make the places they’re frequently deployed seem less safe, even if crime stats don’t back that up. Dressing up in military gear increases distrust of the law enforcement agency — something especially pronounced in African American respondents.

Mummolo’s conclusion, based on stats supplied by law enforcement agencies, is devastating. And it’s likely to be ignored by every law enforcement agency in Maryland. 

Live in obedient fear, citizen.

Tell Me Something I Don’t Know

No Comments

It turns out that one of the alleged benefits of an open office, greater workplace collaboration, does not exist.

In fact, open offices actually reduce cooperative behavior:

Abstract

Organizations’ pursuit of increased workplace collaboration has led managers to transform traditional office spaces into ‘open’, transparency-enhancing architectures with fewer walls, doors and other spatial boundaries, yet there is scant direct empirical research on how human interaction patterns change as a result of these architectural changes. In two intervention-based field studies of corporate headquarters transitioning to more open office spaces, we empirically examined—using digital data from advanced wearable devices and from electronic communication servers—the effect of open office architectures on employees’ face-to-face, email and instant messaging (IM) interaction patterns. Contrary to common belief, the volume of face-to-face interaction decreased significantly (approx. 70%) in both cases, with an associated increase in electronic interaction. In short, rather than prompting increasingly vibrant face-to-face collaboration, open architecture appeared to trigger a natural human response to socially withdraw from officemates and interact instead over email and IM. This is the first study to empirically measure both face-to-face and electronic interaction before and after the adoption of open office architecture. The results inform our understanding of the impact on human behaviour of workspaces that trend towards fewer spatial boundaries.

So not a surprise.

I’ve lived most of my professional life in cube farms, and, aside from the cost savings from packing people in cheek by jowl, the benefits of open office are a myth.

Being Born on 3rd Base and Thinking That You Hit a Triple

No Comments

It turns out that the single most statististically segnificant characteristic of successful entrepreneurs is that they come from rich families:


We’re in an era of the cult of the entrepreneur. We analyze the Tory Burches and Evan Spiegels of the world looking for a magic formula or set of personality traits that lead to success. Entrepreneurship is on the rise, and more students coming out of business schools are choosing startup life over Wall Street.

But what often gets lost in these conversations is that the most common shared trait among entrepreneurs is access to financial capital—family money, an inheritance, or a pedigree and connections that allow for access to financial stability. While it seems that entrepreneurs tend to have an admirable penchant for risk, it’s usually that access to money which allows them to take risks.

And this is a key advantage: When basic needs are met, it’s easier to be creative; when you know you have a safety net, you are more willing to take risks. “Many other researchers have replicated the finding that entrepreneurship is more about cash than dash,” University of Warwick professor Andrew Oswald tells Quartz. “Genes probably matter, as in most things in life, but not much.”

………

For creative professions, starting a new venture is the ultimate privilege. Many startup founders do not take a salary for some time. The average cost to launch a startup is around $30,000, according to the Kauffman Foundation. Data from the Global Entrepreneurship Monitor show that more than 80% of funding for new businesses comes from personal savings and friends and family.

“Following your dreams is dangerous,” a 31-year-old woman who runs in social entrepreneurship circles in New York, and asked not to be named, told Quartz. “This whole bulk of the population is being seduced into thinking that they can just go out and pursue their dream anytime, but it’s not true.”

I’m not surprised, but I am a bit disgusted.

We need to understand that much of the sociology of success in the US, as it is everywhere, boils down to nepotism and tribalism.

Amazon is a Petri Dish for Sociopaths

No Comments

In 1996, an evolutionary biologist attempted to create an improved chicken by separating out the hens that outperformed their fellow hens.

It was an unmitigated disaster, and it bears notice in companies which use a similar process, “Stack Ranking”, to manage their employees.

Amazon is the most notable, and most aggressive adherent of this philosophy:

Jeff Bezos, CEO and founder of Amazon, recently took some heat when the New York Times exposed working conditions and the corporate culture at his firm. ‘Ruthless’ and ‘demanding’ are two descriptors of the working environment, sink or swim. Amazon is not alone. Some of the leading recent startups have competitive employment requirements, a survival of the fittest approach. They want the best and push out the rest. It’s a simple notion to strengthening your company and the most efficient way to assemble optimally performing groups, organizations, and sports teams. Or at least that has been the dominant rhetoric behind models of group productivity within both the business and sporting industries. Stack-ranking and other business practices of individual selection have been widespread, from General Electric to Microsoft, and is a standard modus operandi in sports teams including the focus of this piece, the European soccer team, Real Madrid. However, the wisdom behind the application of these models, both in business and sport, is under scrutiny. To begin to see why, we turn to evolutionary biology.


In 1996, evolutionary biologist William Muir conducted a series of unusual experiments at Purdue University. Muir was looking to explore the various methods of group productivity with regards to egg production. He wanted to create a group of ‘Super-Chickens’ who would produce more eggs than any other coop. He followed the logic that many employers today tout: take the best individuals, put them in a group together, and then let the magic happen. Muir selected the most productive hens from each cage and bred the next generation from them. Muir also identified the cages that collectively were more productive at laying eggs in comparison to other cages. He then continued to selectively breed using these two separate groups and observed the levels of production.

The outcome of this study was striking; selecting the best group cages produced hens that thoroughly outperformed the line of individually more productive ‘Super-Chickens’. For the cage-selected line, after just five generations, the number of eggs per hen catapulted from 91 to 237, the mortality rate of the group crashed from 68% to 9%, and the hens also displayed improved wellbeing as a function of the reductions of pecking and negative social interactions.

The Super-Chicken group did not fare so well. In fact, this line of hens had some other, rather less desirable qualities. They presented signs of aggression, violence, dysfunction and waste. There was an extremely high prevalence of fatal cannibalistic pecking within the group and general agonistic behaviors. Those in the cage who did not die from these cannibalistic attacks (there was an 89% mortality rate) were left with severe feather loss, life-threatening abrasions and other serious physical injuries. The hens were more intent on fighting amongst each other than doing anything productive! Hopefully that doesn’t sound like any workplaces you know…

So what happened? Why did the best egg-layers from the first generation yield something akin to the Gremlins of the eponymously named 80s movie? What Muir realized was that instead of identifying the most efficient hens, he had identified the hens that successfully conveyed the appearance of being the most productive. Those hens that individually produced the most did so by being adept at aggressively suppressing the other hens from laying eggs
. Taking the more productive individuals meant taking the more aggressive hens. Breeding repeatedly from those which were most productive actually favored those which were most aggressive. Placing these hens together in cages led to extreme violence (only three of these psychotic hens actually survived!). Muir ended up running out of the Super-Chickens and had no choice but to end monitoring them and only continue with the other group. Ultimately, the process of selecting at the individual level took to an extreme the challenge of cooperation arising from individuals selected for selfishness.

The behaviour of the psychotic hens fits rather well with the normative assumptions of classical economic and game theory, which suggest that individuals will act selfishly in situations that afford them the opportunity. In group situations, individuals are consistently expected to identify, and act on, the dominant Nash strategy—the strategy that cannot be beaten. Just think of the classic ‘tragedy of the commons’, where people are predicted to free-ride on and exploit the contributions of others to a shared resource. Furthermore, the selfish actions of the Super-Chickens also support the theme of much evolutionary psychology from the 1960’s, which was based on the principle that individual interests will always outweigh the interests of the group.Given an opportunity to benefit from the efforts of others, selection will favor those which seize the day.

 ………

Some companies have begun to pay heed. Recently, Microsoft abandoned its longstanding stack-ranking approach. It recognized that stack-ranking was undermining team cooperation, employees withheld information to avoid damaging their own rank, sought teams where they could rank better, and ensured new team members failed. As an outcome to stack-ranking, it seems obvious. Yet many companies pursued it, just as breeders choose super-chickens. For Jeff Bezos, he may not agree. Amazon is a hugely successful company, at least in sales and turnover. It is not a particularly profitable company. When Microsoft was the behemoth of its domain, its aggressive policies eventually led it into trouble, barely avoiding being broken apart. Enron thought it had the smartest guys in the room. It’s endemic corruption ultimately crumbled the company. A company led by super-chickens may not be the best long-term strategy.

Much of the American management class, and Jeff Bezos in particular, seem to see Lord of the Flies as a model for how to manage employees.

They are selecting for narcissistic sociopaths in their organization, and in the long run that is not a good thing.

Boeing Cannot Design Planes Anymore

No Comments

As a result of years of layoffs and retirements of staff, Boeing lacked the technical resources to make a credible bid for the new Air Force Trainer:

It seemed so all-American: a U.S. aviation giant unveiling its newest military jet to flashing lights and thumping heavy-metal music. But the sleek twin-tailed T-X — Boeing’s candidate to become the U.S. Air Force’s next pilot trainer — couldn’t have made it to the dolled-up St. Louis hangar without a good deal of international help.

For all its deep aviation heritage, the Chicago company needed a partner on the T-X bid. A decade of engineering layoffs had left the venerable American firm without the workers needed to add the trainer competition to its existing workload, particularly with the Air Force requiring demonstration aircraft with a relatively quick turnaround. It also needed a way to do it more cheaply than past endeavors.

So the maker of the F-15 Eagle and F/A-18 Super Hornet teamed up with Saab — builder of the Gripen 4.5-generation fighter jet — to develop a T-X candidate. And less than three years after the two firms announced their partnership, they have now unveiled their first two aircraft, which are expected to fly by year’s end. That’s pretty fast for an American defense firm.

While officials from neither company would say just what parts of the plane were developed in Europe, Saab is believed to be manufacturing large portions of it. In June, a large Russian cargo plane believed to be carrying sections of the new aircraft flew from Sweden to the U.S.

………

“I’m not saying this thing is doomed. It’s just that I’m uncomfortable with a big disconnect between engineering and design and manufacturing,” said Richard Aboulafia, vice president for analysis at the Virginia-based Teal Group consulting firm. “It adds risk, it gets rid of a core company advantage, and frankly, there are just huge advantages of having designers and manufacturers co-located.”

Aboulafia cited Boeing’s need to lean on its partner for engineering.

“Outsourcing design — that appears to have a lot more complications than benefits,” he said. “It adds risk and it gets rid of a core capability, a core differentiator.”

I would note here that Boeing has outsourced technical expertise on the civil side as well, with many of the stumbles in 787 development coming from the fact that critical engineering expertise was outsourced to, “risk sharing partners.”

It is a clear indictment of the McDonnell Douglas MBA style management that Boeing has had for the past few decades.

Boeing can no longer design and build new aircraft.