My Startup Experience

Over the past 4 years, I have had a huge transition in my life–from history student to law student to serial medical entrepreneur. Essentially, I have learned a great deal from my academic work that taught me the value that we can create if we find an unmet need in the world, create an idea that fills that need, and then use technology, personal networks, and hard work to create novelties. While startups obviously tackle any new problem under the sun, to me, they are the mechanism to bring about a positive change–and, along the way, get the resources to scale that change across the globe.

I am still very far from reaching that goal, but my family and cofounders have several visions of how to improve not only how patients are treated but also how we build the knowledge base that physicians, patients, and researchers can use to inform care and innovation. My brother/cofounder and I were recently on an entrepreneurship-focused podcast, and we got the chance to discuss our experience, our vision, and our companies. I hope this can be a springboard for more discussions about how companies are a unique agent of advancing human flourishing, and about the history and philosophy of entrepreneurship, technology, and knowledge.

You can listen here: http://rochesterrising.org/podcast/episode-151-talking-medical-startups-with-keith-and-kevin-kallmes. Heartfelt thanks to Amanda Leightner and Rochester Rising for a great conversation!

Thank you!

Kevin Kallmes

Three Short Stories on Housing Economics

Do you love housing economics but have struggled to get the basic ideas across the younger generation? Yes, you get excited about reading 60-page reports, but kids these days have better things to do. 

That’s why I wrote these three, action-packed, short stories which you can read to any child (or child at heart). 

So without further ado, here are three stories about how the supply of housing affects the prices of housing.

Continue reading

Nightcap

  1. Soviet champagne, for the working man Jessica Gingrich, Atlas Obscura
  2. Radio and modern state power in Angola Jesse Bucher, Africa is a Country
  3. East and West Germany in 2019 Sumi Somaskanda, New Statesman
  4. The deeply dedicated American state Michael McFaul, New York Review of Books

Nightcap

  1. Nationalization is as American as apple pie Thomas Hanna, Jacobin
  2. In China, every day is Kristallnacht Fred Hiatt, Washington Post
  3. How Mengzi bested the Golden Rule Eric Schwitzgebel, Aeon
  4. Countries are not anecdotes Scott Sumner, EconLog

Nightcap

  1. The gory, secret lives of NHL dentists David Fleming, ESPN
  2. Imam publicly caned for breaking adultery law he helped draft BBC
  3. The Chinese Communist Party on the worldwide protests Global Times
  4. Are countries like people? Niall Ferguson, Times Literary Supplement

The Myth of the Nazi War Machine

Nazism and fascism, in the popular imagination, are associated with evil, immoral, inhumane treatment across conquered groups and their own subjects alike. These evil actions loom even larger because the thought of an entire society dedicated to military industry, extending its reach across and beyond Europe, inspires ghastly fears not only of evil intent but also astonishing military might that could overwhelm the Allies with the technological wonder of the V2 rocket, the deadly and ever-present U-boat threat, and the German “Royal Tiger” tank that was so well armored that Sherman-fired shells literally bounced off of it. This vision of the Nazis as conquering through technological and industrial superiority is not just a mistake of modern historians, but is actually based on the overestimation of their foes by the Allies and on the disastrously misplaced overconfident messaging of the Germans, Italians, and Japanese that their technology, industrial power, and elan gave them even a chance of victory. The miscalculation of the Hitler in extrapolating his successes in Poland and France to assuming his alliance could overwhelm the combined defenses of over 1.5 billion people represents the most astonishing delusion in military history.

The inspiration for this comes from Victor Davis Hanson’s fascinating economic and industrial history, The Second World Wars. One of his major arguments is that the Axis leaders lost because their commitment to their ideology became a fantasy that they had abilities that directly contradicted the reality of their actual abilities and those of their opponents. I heartily recommend the book and this shorter interview where he lays out the book’s central concepts. My major takeaway was that this fantasy has gone beyond the minds of Hitler, Tojo, and Mussolini, and the vision of a vast industrial empire looming over the world is now imprinted on our memory of World War II. I think it is past time that we recognize Nazism as not only immoral but also incompetent. Below, I hope to share some astonishing statistics that show beyond a shadow of a doubt that the modern concept of Nazi military might is a myth.

  1. The Allies rode in cars, the Germans rode horses. In 1939, the only transportation available to 85% of German infantry other than walking was horses. By 1945…it was still 85%. In total, the US and UK produced almost 4 million general-use vehicles, compared to 160,000 German vehicles. That is a 25-fold advantage. The Allies also had 1 million infantry-supporting artillery compared to less than 100,000 for all of the Axis.
  2. Where were the supplies? The Allies had 46 million tonnes of merchant shipping vessels to the Axis’ 5 million, five times as much aluminum (key for engines and planes), and by 1943 had cut off all German access to rare metals such as tungsten, one of the key metals used in munitions, manufacturing, and electronics. The US supplied Britain and the USSR through the Lend-Lease Act with almost $700 billion (inflation-adjusted 2019 dollars) in supplies throughout the war, which is roughly double the entire German annual GDP in 1939.
  3. The Allies swam to victory on a sea of oil. Though Rommel came within a battle of accessing the British Middle-Eastern oil fields, the Axis still had astonishingly little fuel (which they needed to power their King Tiger, which drank a gallon of gas every 700 yards, the vast Luftwaffe that put over 130,000 planes into action, and their gigantic battleship Bismark). The Axis as a whole used 66 million metric tonnes of oil, while the Allies used a billion. A 15X advantage.
  4. The panzers were neither numerous nor superior technologically. The Mark 1 and 2 panzers that conquered France were actually less numerous and less technologically advanced than France’s. While blitzkrieg and elan overwhelmed the French, even the Mark 4–the most commonly used panzer in the late war–underperformed Shermans in infantry support and reliability and were even considered inferior to the Soviet T34 by Hitler himself. Even including the outmoded Czech tanks repurposed by the Germans, they fielded only 67,000 tanks on all fronts to face 270,000 Allied tanks (with no help from Italy, with a pitiful 3,300 tanks, and Japan largely ignored mobile land armor and created only 4,500 tanks). The environment of idealogical zeal in Germany prevented a military researcher from telling Hitler about the true tank numbers of the Soviets, as Hitler himself recognized later in the war by repeating that if he had known the true number of T34’s he faced, he would never have invaded. The US and USSR deployed massive numbers of upgraded Shermans and the workhorse T34s, while Germany sank huge investments into specialized and scary duds the Royal Tiger–300,000 man-hours and ten times as much as a Sherman. Only 1,300 Royal Tigers were ever produced, and their 70 tonnes of weight, constant mechanical issues, and cost undercut their supremacy in tank-on-tank duels. The US and Britain used precision bombing to inflict major tank losses on Germany, and while German tanks outfought Soviet tanks roughly 4:1, by 1945 the Soviets still had 25,000 tanks against the Germans’ 6,000.
  5. Collaboration helps both tech and strategy. The Allies worked together–the Sherman’s underpowered 75mm (corrected) could be upgraded with a British gun because of interoperability of parts, and the US and Brits delivered over 12,000 tanks and 18,000 planes to the Soviets under Lend-Lease; the Germans did not even have replaceable parts for their own tanks, and the Germans never helped their Italian allies (who had lost a land invasion even to the collapsing French) develop industrial capabilities. Bletchley Park gave advance warning to US merchant convoys, but the Italians and Japanese found out that Hitler had invaded the USSR only after troops had crossed into Ukraine.
  6. Fascism is not industrially sound. Even though the Nazis put an astonishing 75% of their GDP toward the military by 1944 and despite taking on unsustainable debt to sustain their production, their GDP in 1939 was $384 billion, roughly equal to the Soviets and $100 billion less than the UK and France combined. By the end of the war, this fell to $310 billion, compared to a whopping $1.4 trillion US GDP. However, even these numbers do not fully represent how non-mechanized, non-scalable, and non-industrial Germany was even under military dictatorship. While German science and engineering had been pre-eminent pre-WW I, the central control and obsession with infeasible, custom projects before and during the war meant that the Germans had a lower percentage of their population that could be mobilized for wartime production than their opponents, not to mention that their GDP per capita was half of that of the US, and yet the Axis still took on opponents that had productive populations five times their size.
  7. The V2 was a terrible investment. After losing the Battle of Britain (largely because of inferior training, radar, and plane production), the Nazis tried to use ballistic missiles to bomb the Brits into submission. The less technologically sophisticated V1 delivered a respectable 1,000 kg of explosives, but despite launching over 10,000, by mid-1944 the British countermeasures stopped 80% of these, and many misfired, failed to explode, or had guidance system malfunctions. The V2 was more sophisticated, but was never mass produced: only 3,000 were launched, and more Nazis were killed as part of the development of the rocket than Brits by their launch. The V1 and V2 programs combined cost 50% more than the Manhattan project, and even compared to the US’s most expensive bombing program (developing the B29), the cost-per-explosives-delivered was thirty times higher for the V2.
  8. The Luftwaffe was completely overmatched even by the RAF alone. Before the Battle of Britain, the Luftwaffe (2,500 planes) outnumbered the RAF (about 1,500), and the RAF was using more outdated Hurricanes than they were the newer Spitfire; however, the Brits scaled up training and production and even put novel innovations into their manufacturing within the 3 months of battle.
  9. The Germans underestimated the scalability of their opponent’s production. By the end of the war, the Brits manufactured 177,000 planes, 44,000 more than Germany. Crucially, though they started the war with far fewer experienced pilots, the Brits used this production advantage to train their pilots far better (in fact, the Brits had over 40,000 training aircraft). The US was similarly underprepared in terms of both aircraft production and training, but within a year had increased production from one B-24 every two weeks in 1940 to one every two hours in 1942. The US manufactured almost 300,000 planes by the end of the war, with far superior bombers (the figher-resistant B-17 and the giant, sophisticated Super Fortress B-29). However, the German air force personnel still needed to be more numerous than either the US or Britain because of the lack of mechanization.
  10. The Germans could not replace their pilots. By early 1945, the Germans were losing 30% of their pilots every month, even after giving up on bombing campaigns because of high pilot and plane attrition. They never scaled training and were sending completely green pilots against well-trained Allied opponents who had numerical, technological, and experience superiority by 1943 and air supremacy by 1944.
  11. The Germans did not deploy new air technologies to their advantage. While the jet engine and V2 rockets would revolutionize air power after the war, they did not impact the outcome of the war except to drain German R&D. Germany also failed to develop a functional heavy bomber, did not update their fighters’ technology during the war, never fully or effectively deployed radar, and never matched the Allies’ anti-aircraft defenses.
  12. The Allies could win through strategic bombing, but the reverse was not true. Both sides targeted industry and killed civilians en masse in strategic campaigns, but Germany never had the ability to strategically reduce their enemies’ production. Though Germany dropped 760,000 tonnes of ordnance on the Soviets and systematically destroyed production west of the Urals, the Soviets moved their industry to the East and continued outproducing their opponents with respect to tanks, vehicles, artillery, machine guns, and munitions. The Germans never produced a functional 4-engine bomber, so they could not use strategic bombing to undercut industry beyond this; the Blitz killed 40,000 civilians and destroyed over a million homes, but never developed into a threat against British military production. This also cost the Luftwaffe over 2,200 planes and 3,500 of their best pilots. However, nearly every major German and Japanese city was reduced by an unbelievable 3.5 million tonnes of ordnance dropped by the Allies, which killed over 700,000 German and Japanese civilians and destroyed the majority of both empires’ military production.
  13. The U-boat campaign became a colossal failure by 1943. Though the unrestricted submarine warfare of 1940-41 was sinking enough merchant vessels to truly threaten British supplies, Allied countermeasures–code-cracking, sonar, depth charges, Hedgehogs, Squids, and the use of surface aircraft to screen fleets–systematically destroyed the U-boats, which had losses of over 80% by the end of the war. In fact, the Germans barely managed to exceed the total merchant losses inflicted in World War I, and in May-June 1943 only sank two ships for every U-boat lost, ending the Battle of the Atlantic in just two disastrous months. The US was producing ships and supplies so quickly and in such vast quantities that the U-boats needed to sink 700,000 tonnes of shipping every month just to keep up with this production, which they did in only one month (November 1942); this number sank to less than a tenth of that by early 1943.
  14. The US actually waged a successful submarine campaign. Unlike the Germans, the US completely neutered the Japanese merchant fleet using submarines, which also inflicted over 55% of total Japanese fleet losses during the war, with minimal losses of submarine crews. Using just 235 submarines, the US sank 1,000 ships, compared to roughly 2,000 sunk by Germany (which cost almost 800 U-boat losses).
  15. Naval war had changed, and only the US responded. After the sinking of the HMS Prince of Wales near Singapore, all nations should have recognized that naval air forces were the new way to rule the waves. And yet, the Germans only ever built a single aircraft carrier despite their need to support operations in North Africa, and built the Tirpitz, a gigantic Bismarck-class battleship (that cost as much as 20 submarines), which barely participated in any offensive action before being destroyed by successive air raids. Germany never assembled a fleet capable of actually invading Britain, so even if they had won the Battle of Britain, there were no serious plans to actually conquer the island. Japan recognized the importance of aircraft carriers, and built 18, but the US vastly overmatched them with at least 100 (many of them more efficient light carriers), and Japan failed to predict how naval air supremacy would effectively cut them off from their empire and enable systematic destruction of their homeland without a single US landing on Japanese home soil.
  16. The Nazis forgot blitzkrieg. The rapid advances of Germany in 1939 is largely attributable to the decentralized command structure that enabled leaders on the front to respond flexibly based on mission-driven instructions rather than bureaucracy. However, as early as Dunkirk (when Hitler himself held back his tank forces out of fear), the command structure had already shifted toward top-down bureaucracy that drummed out gifted commanders and made disastrous blunders through plodding focuses on besieging Sevastopol and Stalingrad rather than chasing the reeling Soviets. Later, the inflexibility of defenses and “no-retreat” commands that allowed encirclement of key German forces replayed in reverse the inflexibility of the Maginot line and Stalin’s early mistakes, showing that the fascist system prevented learning from one’s enemy and even robbed the Germans of their own institutional advantages over the course of the war.
  17. Even the elan was illusory. Both Germany and Japan knew they were numerically inferior and depended on military tradition and zeal to overcome this. While German armies generally went 1:1 or better (especially in 1941 against the Soviets, when they killed or captured 4 million badly-led, outdated Soviet infantry), even the US–fighting across an ocean, with green infantry and on the offensive against the dug-in Germans–matched the Germans in commitment to war and inflicted casualties at 1:1. At the darkest hour, alone against the entire continent and while losing their important Pacific bases one by one, the Brits threw themselves into saving themselves and the world from fascists; only secret police and brute force kept the Nazis afloat once the tide had turned. The German high command was neutered by the need for secrecy and the systematic replacement of talented generals with loyal idiots, and the many mutinies, surrenders, and assassination attempts by Nazi leaders show that the illusory unity of fascism was in fact weaker under pressure than the commitment and cooperation of democratic systems.
  18. The Nazis never actually had plans that could win an existential war. Blitzkrieg scored some successes against the underprepared Poles and demoralized French, but these major regional victories were fundamentally of a different character than the conflicts the Nazis proceeded to start. While the Germans did take over a million square miles from the Soviets while destroying a 4-million-strong army, the industry was eventually transferred beyond the Urals and the Soviets replenished their army with, over 4 years, a further 30 million men. But most of all, even if Hitler somehow achieved what Napoleon himself could not, neither he nor Tojo had any ability to attack Detroit, so an implacable, distant foe was able to rain down destruction without ever facing a threat on home soil. The Nazis simply did not have the technology, money, or even the plans to conquer their most industrially powerful opponent, and perhaps the greatest tragedy of the entire war is that 60 million people died to prove something that was obvious from the start.

Overall, the Nazis failed to recognize how air and naval air superiority would impact the war effort, still believed that infantry zeal could overcome technological superiority, could not keep pace with the scale of the Allies’ industry or speed of their technological advances, spent inefficiently on R&D duds, never solved crucial resource issues, and sacrificed millions of their own subjects in no-retreat disasters. Fooled by their early success, delusions of grandeur, and belief in their own propaganda, Hitler and his collaborators not only instituted a morally repugnant regime but destroyed themselves. Fascism a scary ideology that promises great power for great personal sacrifice, but while the sacrifice was real, the power was illusory: as a system, it actually underperformed democracy technologically, strategically, industrially, and militarily in nearly every important category. Hopefully, this diametrical failure is evidence enough for even those who are morally open to fascism to discard it as simply unworkable. And maybe, if we dispel the myth of Nazi industry, we can head off any future experiments in fascism and give due recognition to the awe-inspiring productivity of systems that recognize the value of liberty.

This is in no way exhaustive, and in the interest of space I have not included the analogous Italian and Japanese military delusions and industrial shortcomings in World War II. I hope that this shortlist of facts inspires you to learn more and tell posterity that fascism is not only evil but delusional and incompetent.

All facts taken from The Second World Wars, Wikipedia, or general internet trawling.

Sunday Poetry: Stefan Zweig’s “Royal Game”

A Sunday is perfect for me to cure hangovers, slurp coffee in bed, and most vital, for a couple rounds of chess. The miraculous yet material nature of chess could not have been better described than by Stefan Zweig in his “Royal Game“:

“I was well aware from my own experience of the mysterious attraction of the royal game, which among all games contrived by man rises superior to the tyranny of chance and bestows its palm only on mental attainment, or rather on a definite form of mental endowment. But is it not an offensively narrow construction to call chess a game? Is it not a science, a technique, an art, that sways among these categories as Mahomet’s coffin does between heaven and earth, at once a union of all contradictory concepts: primeval yet ever new; mechanical in operation yet effective only through the imagination; bounded in geometric space though boundless in its combinations; ever-developing yet sterile; thought that leads to nothing; mathematics that produce no result; art without works; architecture without substance, and nevertheless, as proved by evidence, more lasting in its being and presence than all books and achievements; the only game that belongs to all peoples and all ages; of which none knows the divinity that bestowed it on the world, to slay boredom, to sharpen the senses, to exhilarate the spirit?”

I wish you all a pleasant Sunday.

Nightcap

  1. Confessions of a confused ex-libertarian Irfan Khawaja, Policy of Truth
  2. Big Coal: Can Warren succeed where Trump failed? Scott Sumner, EconLog
  3. Warren’s health care albatross Ross Douthat, New York Times
  4. What, if anything, is neoliberalism? John Quiggan, Crooked Timber

Nightcap

  1. Sovereignty sharing in fragile states John Ciorciari, Horns of a Dilemma
  2. October reading regrets Journal of the History of Ideas blog
  3. A non-Western canon (start with Asia) Tanner Greer, Scholar’s Stage
  4. Firms and cities have open borders Robin Hanson, Overcoming Bias

China’s upcoming troubles: class or nation?

Hopefully you caught Joel Kotkin’s thoughtful essay on China’s looming class struggle (it was in a nightcap from a few days back). Kotkin is a geographer at the University of Chapman.

I think he’s wrong, of course. He’s not wrong about China’s continuing troubles (I agree with him that things will only get worse), but on how these troubles will really begin to flare up. I don’t see class as the major issue, I see nationalism as China’s biggest fault line (and have since at least 2013).

Here’s how I’ve laid it out in my head. Think of Hong Kong and Taiwan, two places that are Chinese but not part of the People’s Republic. Beijing has lots of problems with both polities. Is class or nation a better gauge to use here? Nation! Nobody in Beijing is harping on the riches accrued by democratic Chinese polities. The Communists are drumming up nationalistic furor instead. Nationalism is the better tool to use to understand contemporary China.

Here’s the kicker, though. In order to drum up nationalistic furor, you’ve got have a nation, correct? The problem for China is that it has several dozen nations within its borders (here’s that 2013 post again), and nationalism in China favors the Han ethnic group over the others. The harder Beijing leans on nationalism, then, the more it squeezes out non-Han ethnic groups from its coalition of the willing. And Beijing is leaning hard on nationalism. It’s going to have to lean harder, too, since liberty is apparently not on the table.

Nightcap

  1. The spirits of 1989 Daniel McCarthy, Modern Age
  2. Trust cycles in politics Chris Dillow, Stumbling & Mumbling
  3. A profile of Christine Lagarde Hujer & Sauga, Spiegel
  4. Catholicism and its critics Tim Stanley, History Today

More Arabs in the US? Yes, please!

I hope y’all had a chance to check out Ussama Makdisi’s essay on Ottoman cosmopolitanism from one of the nightcaps a few days back. It was excellent, and serves as good complement to Barry’s work on the Ottoman Empire here at NOL.

It’s especially good for a few reasons. First, it has a useful explanation of the mandate system that London and Paris experimented with. Second, it’s comparative and brings in lots of different modes of governance. Third, there is an interesting discussing about citizenship (consult NOL for more on citizenship, too). Lastly, it explains well why the Arab world continues to wallow in extreme inequality and authoritarianism.

Makdisi represents a shift in thinking in Arab circles away from victimization and towards self-determination and responsibility: no longer are the French and British (and Jews) to be reviled and blamed for everything that’s wrong with the Middle East. There is a shift towards internationalist thinking. The Americans now play a positive role in what could have been (and still might be) a freer Middle East. The British and French have factions now and some of them were supportive of Arab voices, some of them not. Arab scholars are finally benefiting from the American university educational system, probably because there are so many Arabs studying in the US now.

Makdisi’s piece is not a libertarian interpretation, but it’s a start.

Nightcap

  1. Spaghetti monsters and free exercise Ethan Blevins, NOL
  2. Social warfare (government schools) Mary Lucia Darst, NOL
  3. Vulvæ in pornography and culture Bill Rein, NOL
  4. Early childhood memories of a Cambodian refugee camp Chhay Lin Lim, NOL

Be Our Guest: “Liberty, Government, and Technology: 2019”

Jack Curtis is the latest to submit a piece for NOL‘s “Be Our Guest” feature. A slice:

We will compare China, Russia and the United States. China is a post-communist police state that has never experienced democracy. Russia is a post-communist, quasi democratic republic devolving back into a police state. And the United States is a traditionally democratic republic. Excepting the vagaries of disparate cultures, their three governments seem increasingly similar, revising themselves to adopt the new technology. However, these revisions have not originated only within governments; they also reflect the gradual confluence of the underlying societies.

Do read the rest, and I must point out that Jack has been a long time reader of NOL. For that I am personally grateful. It’s nice to be able to link up and collaborate like this.

Submit your own thoughts to us. Be our guest. Tell your friends, too.

Nightcap

  1. Bosnia’s mosques without Muslims Colborne & Edwards, Los Angeles Review of Books
  2. China and the Ricardian vice Samuel Hammond, National Affairs
  3. The closing of the conservative mind John Gray, New Statesman
  4. Europe, not America, is home to the free market Thomas Philippon, the Atlantic