"Groupon was a huge huge success and potentially a huge huge failure. That neither made Chicago nor does it need to break Chicago."
If you're not from Chicago and you think, "Chicago startups," the company that probably comes to mind is Groupon. Groupon had a heralded IPO and, in recent months, an equally heralded decline. So, perhaps the question I was most interested in answering during our time in the city was, "How has Groupon's meteoric rise and fall changed the startup scene?"
For the answer to that question, I went to Terry Howerton, who has been around the Chicago startup scene since the mid-2000s. He founded the Illinois Technology Association seven years ago, and later, the community hub, TechNexus in 2007. He's met thousands of people in the city's tech scene and has watched more than a few trends rise and fall. In other words, if anyone can say how the Chicago startup scene has been changed by Groupon's story, it's him.
"Groupon was a flare that went up and lit up the ground below, and people looked around and said, 'Huh, there's a lot here.'" Howerton said. "The danger is once that flare starts to extinguish as maybe happened with Groupon -- as probably happened with Groupon -- are there any lights remaining?"
Traditionally, the thought has been that once a city has a company with a big IPO -- think PayPal or Microsoft or Google -- that pumps a lot of money into the place's startup ecosystem. You've got a bunch of youngish people walking around with huge bank accounts and substantial risk tolerance. While he acknowledged the venture capital firm, Lightbank, which was formed by Groupon co-founders Eric Lefkofsky and Brad Keywell, Howerton said that Groupon has not been a boon to Chicago's startup scene, at least not yet.
"I don't think there has been a lot of capital that has flooded into Chicago through the Groupon exit," Howerton said. "You think about the success of a company like Microsoft and the early days of Microsoft in Seattle. It was not that 10 guys got wealthy but hundreds and hundreds of people became millionaires. We haven't yet seen that from Groupon. In some ways, it's not a tech company. You just don't have hundreds of engineers who made a million dollars."
Even so, Howerton seems content with that reality. After all, he thinks Chicago shouldn't lionize business-to-consumer startups just because the media (like your loyal correspondent) like them more. In fact, Howerton is excited about a whole different class of companies and types of work.
"A lot of the technology that exists here today isn't B2C, it's B2B, it's industry transformative and it's incredibly important," he said. "It's companies like ArrowStream that do $100 million a year doing supply chain management for paper products for fast food restaurants. If they were doing $100 million a year in any B2C, they'd be written about as if they were the second coming."
It's actually amazing. If you look at ArrowStream's customer list -- IHOP, Wendy's, Cinnabon, Panda Express, KFC, Friendly's, etc. -- they're probably helping a restaurant on every street in America. But he's right: Who has ever heard of ArrowStream?
In fact, Howerton thinks that companies like that could be Chicago's tech scene bread and butter. There are already so many established large corporations in Chicago in logistics, finance, and healthcare that he sees the city as a place that could provide unique collaborations between startups and big business.
Howerton said that there are several macro trends driving corporations to work with new companies. For one, big businesses have unprecedented amounts of cash on their balance sheets. It's not just Apple that's sitting on money. Recent reports peg the amount of dollars on corporate balance sheets at nearly $2 trillion! Those companies, like State Farm Insurance or Walgreens, want to innovate and stay ahead of potential disruptive competitors, but they just don't know how.
"State Farm has 12,000 employees in IT in Bloomington," Howerton said. "I'm sure many of those employees are really smart people, but how innovative can you be with 12,000 IT workers in your bureaucratic corporate environment in an industry as historic as insurance?"
Or take Walgreens. They recently released an API for their "QuickPrint" feature, which allows you to send photos to Walgreen's and pick them up in a store. "They invited us to organize hackathons for them to bring dozens of technology teams to brainstorm business and app ideas that integrate QuickPrints," he said. The teams get access to the people who built the API and the winners of the competitions make some money. Meanwhile, Walgreens gets technologists building apps using their platform in a way that they probably wouldn't themselves.
With the right corporate friends and deep knowledge of the technology scene in Chicago, TechNexus isn't trying to be like it's flashy neighbor, 1871 Chicago. They're not trying to draw the latest web startup. What they want to do is create an environment where all kinds of technology startups -- especially those with hardcore engineering and computer science at their cores -- can find serious investors and partners.
All this to say: Howerton's idea of a real technology scene in Chicago doesn't end with a certain daily-deals company that happened to go public last year.
"Groupon was a huge huge success and potentially a huge huge failure," Howeton said. "That neither made Chicago nor does it need to break Chicago."
Do mission-driven organizations with tight budgets have any choice but to demand long, unpaid hours of their staffs?
Earlier this year, at the encouragement of President Obama, the Department of Labor finalized the most significant update to the federal rules on overtime in decades. The new rules will more than double the salary threshold for guaranteed overtime pay, from about $23,000 to $47,476. Once the rules go into effect this December, millions of employees who make less than that will be guaranteed overtime pay under the law when they work more than 40 hours a week.
Unsurprisingly, some business lobbies and conservatives disparaged the rule as unduly burdensome. But pushback also came from what might have been an unexpected source: a progressive nonprofit called the U.S. Public Interest Research Group (PIRG). “Doubling the minimum salary to $47,476 is especially unrealistic for non-profit, cause-oriented organizations,” U.S. PIRG said in a statement. “[T]o cover higher staffing costs forced upon us under the rule, we will be forced to hire fewer staff and limit the hours those staff can work—all while the well-funded special interests that we're up against will simply spend more.”
If his administration gets its way, it would be even easier for future commanders in chief to take military action without approval from Congress.
President Obama has been emphatically warning Americans about the dangers of a Trump presidency. But these warnings divert attention from a much darker reality. His Justice Department is in fact pushing the law in a direction that will enable the next president to declare war against any “terrorist” group or nation without the consent of Congress.
This reality is clear from the Department’s response to a lawsuit challenging the legality of Obama’s war against the Islamic State.
In 1973, Congress passed the War Powers Resolution over President Richard Nixon’s veto. It represented the culmination of a national effort to prevent future presidents from repeating Nixon’s unilateral escalations in Vietnam. The Resolution provides that, when a president commits American forces to a new military engagement, he has 60 days to gain the explicit authorization of Congress for the war. If Congress refuses its consent, the Resolution requires the commander in chief to withdraw his forces from the battlefield within the next 30 days.
A new survey suggests the logistics of going to services can be the biggest barrier to participation—and Americans’ faith in religious institutions is declining.
The standard narrative of American religious decline goes something like this: A few hundred years ago, European and American intellectuals began doubting the validity of God as an explanatory mechanism for natural life. As science became a more widely accepted method for investigating and understanding the physical world, religion became a less viable way of thinking—not just about medicine and mechanics, but also culture and politics and economics and every other sphere of public life. As the United States became more secular, people slowly began drifting away from faith.
Of course, this tale is not just reductive—it’s arguably inaccurate, in that it seems to capture neither the reasons nor the reality behind contemporary American belief. For one thing, the U.S. is still overwhelmingly religious, despite years of predictions about religion’s demise. A significant number of people who don’t identify with any particular faith group still say they believe in God, and roughly 40 percent pray daily or weekly. While there have been changes in this kind of private belief and practice, the most significant shift has been in the way people publicly practice their faith: Americans, and particularly young Americans, are less likely to attend services or identify with a religious group than they have at any time in recent memory.
A new anatomical understanding of how movement controls the body’s stress response system
Elite tennis players have an uncanny ability to clear their heads after making errors. They constantly move on and start fresh for the next point. They can’t afford to dwell on mistakes.
Peter Strick is not a professional tennis player. He’s a distinguished professor and chair of the department of neurobiology at the University of Pittsburgh Brain Institute. He’s the sort of person to dwell on mistakes, however small.
“My kids would tell me, dad, you ought to take up pilates. Do some yoga,” he said. “But I’d say, as far as I’m concerned, there's no scientific evidence that this is going to help me.”
Still, the meticulous skeptic espoused more of a tennis approach to dealing with stressful situations: Just teach yourself to move on. Of course there is evidence that ties practicing yoga to good health, but not the sort that convinced Strick. Studies show correlations between the two, but he needed a physiological mechanism to explain the relationship. Vague conjecture that yoga “decreases stress” wasn’t sufficient. How? Simply by distracting the mind?
City dwellers spend nearly every moment of every day awash in wi-fi signals. Homes, streets, businesses, and office buildings are constantly blasting wireless signals every which way for the benefit of nearby phones, tablets, laptops, wearables, and other connected paraphernalia.
When those devices connect to a router, they send requests for information—a weather forecast, the latest sports scores, a news article—and, in turn, receive that data, all over the air. As it communicates with the devices, the router is also gathering information about how its signals are traveling through the air, and whether they’re being disrupted by obstacles or interference. With that data, the router can make small adjustments to communicate more reliably with the devices it’s connected to.
How pharmaceutical price hikes and high-deductible plans create a perfect storm for people who need life-saving medications.
In lieu of spending $1,212 on four EpiPens, one mom in Virginia is planning to ask a doctor to fill some empty syringes with epinephrine, the drug inside the allergy injectors. She will then give the syringes to her 12-year-old son to carry around—the boy is so allergic to milk he has to wear a face mask when he goes outside.
That scenario, reported by Stat News, is perhaps the most extreme example of the many ways parents are struggling to cope with the rising price of EpiPen, a spring-loaded tool that can reverse an allergic reaction when stabbed into the thigh.
Mylan, the company that sells EpiPens, has driven up its price by more than $500 since 2009, from about $100 for a pack of two to $608.61 this year. Because they’re so essential, many people with severe allergies have more than one.
The many obstacles trans men and other transmasculine people run into when feeding infants
When Trevor MacDonald started chestfeeding about five years ago, he didn't know anyone who had attempted it, nor had any of his doctors ever encountered someone who had. In fact, he was shocked that his body could even produce milk. As a trans man—someone who was assigned female at birth but has transitioned to identifying as male—he was born with the mammary glands and milk ducts required for lactation, but he'd had his breasts removed. Once he had his baby, his care providers supported his desire to nurse, but it was up to him figure out how.
MacDonald began blogging about chestfeeding from his home in Winnipeg, Manitoba, and soon discovered a whole community of transmasculine people around the world in the same boat, looking for guidance. For trans men and transmasculine folks, putting a baby to their chest to suckle can lead to complicated feelings about their gender. Many lactation support services are available for “nursing mothers,” which sounds unwelcoming to men and non-binary individuals. And many trans people say doctors don’t understand their bodies or experiences.
Poor white Americans’ current crisis shouldn’t have caught the rest of the country as off guard as it has.
Sometime during the past few years, the country started talking differently about white Americans of modest means. Early in the Obama era, the ennobling language of campaign pundits prevailed. There was much discussion of “white working-class voters,” with whom the Democrats, and especially Barack Obama, were having such trouble connecting. Never mind that this overbroad category of Americans—the exit pollsters’ definition was anyone without a four-year college degree, or more than a third of the electorate—obliterated major differences in geography, ethnicity, and culture. The label served to conjure a vast swath of salt-of-the-earth citizens living and working in the wide-open spaces between the coasts—Sarah Palin’s “real America”—who were dubious of the effete, hifalutin types increasingly dominating the party that had once purported to represent the common man. The “white working class” connoted virtue and integrity. A party losing touch with it was a party unmoored.