Discussion Questions
Two readings here, exploring opposite sides of the late 90s Internet boom.
Lewis is nobody's fool, but he follow Clark's own perspectives at the very
height of the bubble. Madrick, on the other hand, had been spent years combing
through productivity data and had come to the conclusion that the real impact of
computers on the economy was quite marginal. These are both huge topics, and we
can't do much more here than skim the surface.
- Clark has had a pretty remarkable career. What motivated him at different
times (and how does this compare to the motivations of the MIT hackers, Bill
Gates and the other people we read about)?
- Lewis implies a kind of trend from Silicon Graphics to Netscape to
Healtheon, in terms of the longevity of the company, the speed it went public,
the vagueness of its business plan and so on. What changed in Silicon Valley
from the 80s to the late 90s?
- Why does Lewis say they "were not just creating a presentation. They were
inventing the manner in which their business would be judged, at least for the
next few years, while they lost great sums of money." What did it take to make
investors believe in the story?
- Madrick critiquing not just the internet stock bubble (which was only just
getting started when he wrote) but the whole idea that computers had brought
about an economic revolution. How would we know if such a revolution had
occurred? What evidence does Madrick present?
- Do you believe him? What counter-arguments could be made (Madrick himself
mentions many of these)? His opinion was definitely a minority one, at least
in the business and popular press. Why might his story have been harder to
sell to investors than Jim Clark's?
Resources
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Wired wrote at the time about Jim Clark and his vision for the telecomputer.
Michael Goldberg,
Fire in the Valley, Wired 2.01, January 1994. They
followed it up
with the story of his move to Mosaic (as it was then called). The same issue
included an interesting contemporary article on the embryonic web -- Gary Wolfe,
The (Second Phase
of the ) Revolution Has Begin, Wired 2.10, October 1994. One of the most
useful parts of this article is its link to some early web sites, most of which
are still there.
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Lewis had written a whole bunch of interesting articles for the New York
Times magazine. You can find them all on Lexis-Nexis. Many of the more recent
ones were taken from his new book, Next: The Future Just Happened -- a
bunch of interesting and brilliant observed case studies of really weird social
situations created by the Internet (most of which involve children) and some big
picture theorizing that doesn't quite add up. Checkout "The Little Creepy
Crawlers Who Will Eat You In The Night", "Jonathan Lebed's Extracurricular
Activities," and "Boom Box" (why network TV is history).
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One of the most entertaining journalistic accounts of late 90s life in the
boom is Po Bronson, The Nudist on the Late Shift, Random House, 1999. He
has his own website. Wired took one of
the best chapters and
published it
as Po Bronson, "Gen Equity", Wired 7.07, July 1999. He had another big article,
"Is the
Revolution Over" in the Jan 1998 issue. The other good book from the boom
years is Kaplan, David A. The Silicon Boys and Their Valley of Dreams.
New York: William and Morrow, Inc., 1999.
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Nothing written in the past few years has worked as well as Soul of a New
Machine in giving you an inside look at technology development. So far, the
best first person account of running a technology startup is Kaplan, Jerry.
Startup: A Silicon Valley Adventure: Houghton Mifflin, 1994. It covers a
slate computer startup -- a field that was supposed to be huge in the late
1980s, vanished, and the surprised everyone by turning up after all as the Palm
pilot. For the Internet, the best account so far (though this is of the earlier
content days, rather than the later e-commerce days) is Wolff, Michael. Burn
Rate: How I Survived the Gold Rush Years on the Internet: Simon & Schuster,
1998. Wolff was so far ahead of the curve that his company had already failed
before Priceline had its IPO. Books on e-commerce failures are starting to flood
in, but so far none appear to be that good. Being a failed businessmen isn't
always enough to make you a good writer.
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Tying in with the previous readings on Microsoft, you could also look at
Ferguson, Charles H. High Stakes, No Prisoners: A Winner's Tale of Greed and
Glory in the Internet Wars, 1999. As the title suggests, his success has
rather gone to his head, and the book could have done with being shorter. He
started the firm which made FrontPage and then sold out to Microsoft for a
bundle. Plenty of dirt about how venture capitalists really worked. He has some
interesting insights into early net architecture and software strategy. These
are mixed with bitchy jibes at pretty much everyone else in the industry at the
time, from Jim Barksdale to Larry Ellison.
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Quite a bit has been written on the productivity paradox. Another good
overview is Woodall, Pam. "Survey: The New Economy -- Solving the Paradox."
The Economist, 23rd September 2000. If you want something more technical,
try Sichel, Daniel E. "Computers and Aggregate Economic Growth: An Update."
Business Economics 34, no. 2 (1999): 18(7). Or for something that delves
deeper into computer technology itself, Landauer, Thomas K. The Trouble with
Computers : Usefulness, Usability, and Productivity. Cambridge, Mass.: MIT
Press, 1995.
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