"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."
Conservatives once warned that Obamacare would produce the Democratic Waterloo. Their inability to accept the principle of universal coverage has, instead, led to their own defeat.
Seven years and three days ago, the House of Representatives grumblingly voted to approve the Senate’s version of the Affordable Care Act. Democrats in the House were displeased by many of the changes introduced by Senate Democrats. But in the interval after Senate passage, the Republicans had gained a 41st seat in the Senate. Any further tinkering with the law could trigger a Republican filibuster. Rather than lose the whole thing, the House swallowed hard and accepted a bill that liberals regarded as a giveaway to insurance companies and other interest groups. The finished law proceeded to President Obama for signature on March 23, 2010.
A few minutes after the House vote, I wrote a short blog post for the website I edited in those days. The site had been founded early in 2009 to argue for a more modern and more moderate form of Republicanism. The timing could not have been worse. At precisely the moment we were urging the GOP to march in one direction, the great mass of conservatives and Republicans had turned on the double in the other, toward an ever more wild and even paranoid extremism. Those were the days of Glenn Beck’s 5 o’clock Fox News conspiracy rants, of Sarah Palin’s “death panels,” of Orly Taitz and her fellow Birthers, of Tea Party rallies at which men openly brandished assault rifles.
The College Board earns over half of all its revenues from the courses—and, in an uncertain environment, students keep being suckered.
Fraudulent schemes come in all shapes and sizes. To work, they typically wear a patina of respectability. That's the case with Advanced Placement courses, one of the great frauds currently perpetrated on American high-school students.
That's a pretty strong claim, right? You bet. But why not be straightforward when discussing a scam the scale and audacity of which would raise Bernie Madoff's eyebrows?
The miscellany of AP courses offered in U.S. high schools under the imprimatur of the College Board probably started with good intentions. The idea, going back to the 1950s, was to offer college-level courses and exams to high-school students. The courses allegedly provide students the kind of rigorous academic experience they will encounter in college as well as an opportunity to earn college credit for the work.
"Where people are desperate, it is still America they count on, whether they love or scorn it, and America they blame when aid does not come."
After Donald Trump’s victory in the U.S. presidential election in November, a foreign ambassador accosted one of my deputies at the State Department, where from 2014 to early this year I served as theassistant secretary of state for democracy, human rights, and labor. “You must be so sad!” the man, a representative of a Central Asian government, said, grinning widely. “All this talk of elections being important, of democracy being important, and now look at you! Now even your new president says there were 3 million illegal votes in your election! … You must all feel so stupid these days.”
Since then, the global club of autocrats has been crowing about Trump. Sudan’s dictator Omar al Bashir praised him for focusing “on the interests of the American citizen, as opposed to those who talk about democracy, human rights, and transparency.” Iran’s Supreme Leader Ayatollah Khamenei thanked him for showing “America’s true face” by trying to ban Muslim immigration. The Cambodian government justified attacks on journalists by saying Trump, too, recognizes that “news published by [international] media institutions does not reflect the real situation.”
Walk into the offices of Memac Ogilvy Advize, an advertising firm on the third floor of a car rental building in a business district of West Amman, Jordan, and you’ll be greeted with an immense black-and-white photo of Donald Trump’s face. The red cursive text printed across it reads: “We Trumped the awards.”
The sign sits behind a reception counter boasting a large trophy won at the Dubai Lynx 2017, an annual advertising competition where Memac Ogilvy won the Grand Prix for PR (a first for any Jordanian agency) along with four other silver and gold prizes, for trolling Trump in their ads on behalf of Royal Jordanian Airlines.
The Obama years left Republicans with excellent ratings from the Heritage Foundation, and no idea how to whip a vote.
The Republican Party’s marquee legislative initiative had just imploded in spectacular, and humiliating, fashion Friday afternoon when Paul Ryan stepped up to a podium on Capitol Hill. The beleaguered house speaker wasted no time in diagnosing the failure of his caucus. “Moving from an opposition party to a governing party comes with some growing pains,” he said. “And, well, we’re feeling those growing pains today.”
Ryan wasn’t wrong. The GOP’s inability to maneuver a health-care bill through the House this week—after seven years of promising to repeal and replace Obamacare—is, indeed, emblematic of a deeper dysfunction that grips his party. But that dysfunction may not be as easy to cure as Ryan and other GOP leaders believe.
The House abandoned its legislation to repeal and replace the Affordable Care Act, handing President Trump and Speaker Paul Ryan a major defeat.
Updated on March 24 at 6:28 p.m. ET
To a man and woman, nearly every one of the 237 Republicans elected to the House last November made the same promise to voters: Give us control of Congress and the White House, and we will repeal and replace the Affordable Care Act.
On Friday, those lawmakers abandoned that effort, conceding that the Republican Party’s core campaign pledge of the last seven years will go unfulfilled. “I will not sugarcoat this: This is a disappointing day for us,” House Speaker Paul Ryan said at a press conference after he informed Republicans that he was ditching the American Health Care Act.
“We did not have quite the votes to replace this law,” Ryan said. “And, so yeah, we’re going to be living with Obamacare for the foreseeable future.”
Speaking after the collapse of the Republican health-care bill, the president assigned blame to plenty of parties but cast himself as a mere bystander.
Speaking in the Oval Office Friday afternoon, President Trump surveyed the wreckage of the Obamacare repeal effort and issued a crisp, definitive verdict: I didn’t do it.
The president said he didn’t blame Speaker Paul Ryan, though he had plenty of implied criticism for the speaker. “I like Speaker Ryan. He worked very hard,” Trump said, but he added: “I'm not going to speak badly about anybody within the Republican Party. Certainly there's a big history. I really think Paul worked hard.” He added ruefully that the GOP could have taken up tax-reform first, instead of Obamacare—the reverse of Ryan’s desired sequence. “Now we’re going to go for tax reform, which I’ve always liked,” he said.
If the lobbyist’s work did indeed “greatly benefit the Putin Government,” the contract wouldn’t be especially out of the ordinary for an American lobbyist—or for Russia.
MOSCOW—The reports that former Trump campaign manager Paul Manafort had had a contract for tens of millions of dollars to “greatly benefit the Putin Government” were not exactly news here. And, in a certain sense, they didn’t have to be news in Washington, either.
Manafort, who has reportedly just volunteered to testify in the House Intelligence Committee’s investigation of Russian meddling in the U.S. election, had been a lobbyist, a notorious one, for decades. His work for less-than-democratic governments, including various African strongmen and the Marcos family of the Philippines, had been well-known in Washington and reported over the last year. It is also not uncommon for lobbyists and political operatives waiting out an administration of the opposite party to work abroad, helping foreign governments of whatever stripe sharpen their political game. Democratic operatives who had worked on the Obama and Clinton campaigns, for example, have done work advising politicians in Britain, Ukraine, and Georgia. Manafort seemed to have fewer moral qualms and filters than others—the only ticket to access his political skills, it seems, was the right amount of money—but it was all part of the swamp the Donald Trump campaign, with Manafort at the helm for about five months, promised to drain.
A fun thing about being an American health journalist is constantly reading about how horribly unhealthy your country is. (And subsequently, being reminded about how unhealthy you probably are. And by “you,” I mean me.) The unflattering stats mount: More than half of what Americans eat is “ultra-processed.” The average American man has a body mass index just barely under the medical definition of obese. In a 2013 ranking of affluent countries’ health, the United States came in last.
Here’s another bummer of a statistic to toss on the pile: Less than 3 percent of Americans meet the basic qualifications for a “healthy lifestyle,” according to a new study published in Mayo Clinic Proceedings.
The study authors defined a “healthy lifestyle” as one that met four qualifications:
Most of management theory is inane, writes our correspondent, the founder of a consulting firm. If you want to succeed in business, don’t get an M.B.A. Study philosophy instead
During the seven years that I worked as a management consultant, I spent a lot of time trying to look older than I was. I became pretty good at furrowing my brow and putting on somber expressions. Those who saw through my disguise assumed I made up for my youth with a fabulous education in management. They were wrong about that. I don’t have an M.B.A. I have a doctoral degree in philosophy—nineteenth-century German philosophy, to be precise. Before I took a job telling managers of large corporations things that they arguably should have known already, my work experience was limited to part-time gigs tutoring surly undergraduates in the ways of Hegel and Nietzsche and to a handful of summer jobs, mostly in the less appetizing ends of the fast-food industry.