Session 23
Home About Schedule Project Presentation & Paper

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.

  1. 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)?
  2. 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?
  3. 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?
  4. 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?
  5. 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

bullet

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.

bullet

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).

bullet

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.

bullet

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.

bullet

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.

bullet

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.

 


Page copyright Thomas Haigh -- email thaigh@sas.upenn.edu.    Home: www.tomandmaria.com/tom. Updated 01/18/2002.