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Episode #192: Interview with Mary Ruwart

We were honored to interview Dr. Mary J. Ruwart, a research scientist, ethicist, and a libertarian author/activist. She received her B.S. in biochemistry in 1970 and her Ph.D. in Biophysics in 1974 (both from Michigan State University). She subsequently joined the Department of Surgery at St. Louis University and left her Assistant Professorship there to accept a position with The Upjohn Company of Kalamazoo, Michigan in 1976. As a senior research scientist, Dr. Ruwart was involved in developing new therapies for a variety of diseases, including liver cirrhosis and AIDS.

She is the author of Healing Our World: The Compassion of Libertarianism, published in 2015, and the focus of our interview is her latest book is Death by Regulation: How We Were Robbed of a Golden Age of Health and How We Can Reclaim It, published this year.

You can learn more about Mary and her work at: http://www.ruwart.com.

Ed’s Questions

Your book Death by Regulation is more horrific than a Stephen King novel, because it’s real. It all starts with children of thalidomide doesn’t it?

Before the 1962 Amendments a drug had to be “safe for the intended use.” But after the Amendments a drug had to show it was “safe and effective.” Why is this difference so important and what has it done for us?

Makers of water could not advertise that it alleviates dehydration [due to FDA regulations]. But how are Cheerios and cherries drugs?

Healthful snack or new "drug?" According to the FDA it is the latter. 

Healthful snack or new "drug?" According to the FDA it is the latter. 

Even the Centers for Disease Control and the FDA contradict one another in some cases?

There’s so many therapies where you’re using your own cells, stem cells, etc., will these be regulated as a drug?

One of the things we’ve noticed about many leaders in business is that they treat data as if they have a substance abuse problem. Like drugs, they get a little data and they more and more. The FDA demands more and more data from every study. Does the FDA has a data substance problem?

Ron’s Questions

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You write prescription drugs, properly prescribed, killed 106,000 in 1994 alone (the 4th to 6th leading cause of death in the USA). I guess drugs, even approved ones, are controlled poison?

You conservatively estimate at least half of the Americans who died since 1962 have lost more than a decade of their lives because of the 1962 Amendments to the Food and Drug Act. Unpack for us why researchers look at years off of live rather than number of deaths.

You discuss off-label use of a drug, such as aspirin to help prevent heart attacks and strokes, yet the FDA doesn’t allow drug companies to market this fact, or even to inform doctors. Is that right?

You discuss the high price of drug prices and how many people attribute this to greed, which is a terrible theory—like blaming gravity for airplane crashes. Greed and gravity are a constant, so we can’t blame change on a constant. You say the real culprit is the FDA approval process, and because of the 1962 Amendments the average price of drugs increased 40 times. Real drug prices fell 32% from 1949-61, prior to the Amendments. Drug companies are constantly maligned and impugned in the press, by politicians, the media, etc. You worked for Upjohn for 19 years, how did you put up with these negative accusations?

As you say, the first patent holder to market usually captures 90% of the market, so that approval is really important.

Another statistic you point out is how drugs lower other health care costs: $3.65 saved in medical expenses for every $1 invested in drugs. It’s something of which most people don’t seem to be aware.

The FDA can make two types of errors: approve a drug that kills people (like Vioxx), or not approve a drug that could save the lives of many people. One of the economists we interviewed, Steven Landsburg, proposes that the FDA commissioner be paid in pharmaceutical stock as a way to lessen the incentive to only commit the second type of error. What’s your take on that proposal?

Is the FDA more harmful than helpful? "Yes," according to Dr. Mary Ruwart.

Is the FDA more harmful than helpful? "Yes," according to Dr. Mary Ruwart.

You recommend three remedies: 

  1. Repeal the 1962 Amendments

  2. Revoke FDA’s ability to approve new drugs. Instead, it makes reviews, recommendations, or certifications

  3. Pass the Health Freedom act (HR 2117) to nullify court decision that making a health claim for a food or nutrient makes it a drug

You point out that desperate patients make drugs in their kitchens, enter the black market, or buy from foreign countries. You also point out that surgeons didn’t need FDA approval for knee and hip replacement surgeries, important innovations. Of course, there are downsides: cardiac bypass was overused, etc. But it leads to more innovation which ultimately saves more lives than it costs.

You quote Dale H. Gieringer, a Cato Analyst: “FDA regulation certainly cannot be proved ‘safe and effective,’ thereby flunking its own approval criterion.” I don’t know how anyone can read your book and not come to the same conclusion.

Science isn’t good enough no matter who the decision maker is—the FDA, patient, or doctor. The best we can hope for is an informed decision.

Episode #168: Interview with Howard Hansen on Healing Leadership

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"One thing is clear about today's leadership model. It's NOT working!" So says, Howard Hansen, cofounder of Healing Leaders.

Howard chose “Healing” in his company name to describe a new kind of leadership that he proposes. He sees the present problems in organizations and civilization at large, to be rooted in the destructive "story" we are now living. In the story of humankind, he believe we have moved from living in harmony with the world to having complete control over the world. 

Hierarchical leadership has caused great damage and even threatens the very existence of our species. If we are to change the story we are living from one of conquest to one of harmony, a call for a new kind of leadership is required. Healing Leaders embody that call.

Additional Resources

Episode #158: On Healing Leadership

This episode is dedicated to the possibility that the majority of leadership thinking is wrong as it is ultimate based on manipulation - trying to “get someone to do something.” Coming to terms with this idea is difficult and not for everyone because it requires us to examine some of our most deeply held beliefs and either dismiss them or at least think differently about them. If you are interested in hearing a conversation about healing leadership, you are invited to listen to this episode with Ron Baker and Ed Kless. 

This material is based on the work of Howard Hansen and Steve Geske, who have appeared previously on The Soul of Enterprise - Episode # 11.

For more visit the Healing Leaders website

Books

Ron's Notes on Leadership BS

Most conventional wisdom on leadership offers more hope than reality; wishes rather than data; beliefs instead of science; and is filled with fables, not facts.

He calls it “lay preaching,” like religion it offers a false sense of control.

Leaders fail with unacceptable frequency, and the leadership industry has failed in its 40-year history to improve the human condition.

Most people look for an “inspiring leadership course,” yet how manymedical schools advertise as “inspiring?” Inspiration does not produce change.

 Leadership industry obsessively focused on the normative—what leaders should do and how things out to be—whiling ignoring what is true, and what is going on, and why.

 Pfeffer debunks the five Leadership Attributes

  1. Modesty—this is rare among most leaders; most are narcissists

  2. Authenticity—not true to themselves, rather true to what the situation calls for (in sports, “play through the pain”). Anthony Weiner was authentic! Nelson Mandela, Martin Luther King, Jr. inauthentic? Who cares? True to which self? We are constantly changing.

  3. Truthfulness—leaders frequently lie and face few consequences

  4. Trustworthiness—notable mostly by its absence.

  5. Concern for welfare of others—Officers eat after enlisted men. Yet CEOs earn 330x the pay of average worker, receive severance packages when they screw up, which is certainly not taking care of others first.

It is more helpful to understand why and how people who don’t have the above attributes reached such powerful positions.

His recommendations for improving leadership

  1. Measure and hold people accountable—what gets inspected gets affected (he admits that measuring the wrong things is worse than measuring nothing; e.g., student evaluations ≠ learning)

  2. Acknowledge the different interests of leaders and their companies (align career success with organizational success)

  3. Use more scientific methods and worry about credentials

Did You Pray?

The Book That Started It All

Episode #142: In What Year Were You Born?: Generational Astrology

See if the following story is consistent with so much that has been written about Generation X, Y, and Z in the recent past by countless “generational consultants:"

  • "They get restless after a little while in one place,” said an employer. “For the last few years I haven’t counted on keeping the ordinary fellows more than six months. I just let them go and take the next one who is always dropping in."

  • "Madam, I assure you I could just cross the street tomorrow and be paid as much as you give me.” Selfish, satisfied, and capricious, these young people newly emancipated into economic freedom are seldom idle; they work, but they are marking time on the spot they have reached, for they do not perceive any options desirable enough to lead them beyond those they are now enjoying.

An enormous amount of ink has been spilled on this topic, usually along with the different characteristics of the Baby Boomers and Generation X, Y, and Z.

One reason for this increased attention is there are simply more generations interacting in the workforce today than in the past. One reason is life expectancy.

The average knowledge worker today will outlive their employer, with an average active work life of approximately fifty years compared to the average organizational life of thirty.

This translates into the average worker today having many more jobs—and even careers—than those of their ancestors a century ago.

Differences exist, but what is the cause and does it matter

It may be an interesting academic and historical exercise to create lists of the differences between the Baby Boomers and Generation X, Y, and Z, but knowing the nature and nurture traits between the generations does not necessarily assist a company in attracting or inspiring its knowledge workers.

All of this “generational astrology” has all the explanatory power of asking people their signs—it is an incredibly weak theory. And, it is nothing new. Plato complained that the young people of his day “disrespect their elders and ignore the law.”

A more robust explanation for today’s workers—no matter when they were born—is the fact that they are knowledge workers, who are far wealthier than their parents—they grew up in what economist Brink Lindsey calls “The Age of Abundance.”

Wealth provides more options, from extending education, traveling the world, living with parents longer, or simply delaying gainful employment.

John Adams, America’s second president wrote: “I must study politics and war that my sons may have liberty to study mathematics and philosophy and they in turn must study those subjects so that their children can study painting, poetry, music, architecture, statuary, tapestry, and porcelain.”

In an intellectual capital economy there is a far greater range of talents that can be rewarded. America’s best-paid chef, Wolfgang Puck, earned $16 million in 2005 while Takeru “Tsunami” Kobayashi earned more than $200,000 a year for holding the title of the world’s hot-dog eating champion.

It is not the year they were born in, it is their age (that's different)

Another crucial difference in today’s workers is they own more of the means of production in their heads than ever before, which gives them enormous market power in the economy. They understand this fundamental fact better than their predecessors.

When I entered the CPA profession, I believed I was a service worker; today’s students understand they are knowledge workers.

Organizations can lament the fact that Generation X, Y, and Z are not as loyal as their parents, but the fact of the matter is loyalty is a two-way street; it must be earned. No business deserves any loyalty, either from its customers or its associates, until it does something to earn it.

Loyalty is not dead in the business world, but a reason to be loyal may be. The real question is, does the organization deserve the loyalty of its workers? 

In tribute to Mark Twain’s quip that history may not repeat itself but it does rhyme, the story above is from 1907. I suppose one generation has always had issues with the next, but it is hardly any reason to treat human beings different. To believe otherwise is to take astrology seriously.

Additional resources

Monty Python Four Yorkshiremen

Episode #105: The Eight Myths of Capitalism

Ed and Ron recapped their experience at Sage Summit, discussing speakers such as Richard Branson, Ashton Kutcher, and Daniel Susskind.

Click Image to Register and view these sessions on Sage Summit Live

Click Image to Register and view these sessions on Sage Summit Live

Ron and Ed are presenting a workshop in Niagara Falls on “The Post-Professional Society,” October 16-18.

Then, based on the book by Jay Richards, Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem, published in 2009, they discussed the eight myths of capitalism.

Richards' book was also the inspiration for the January 22, 2016 show, Episode #73: Lessons from the Trading Game.

Episode #57 - The Experts Speak

On this episode, Ed and I discussed the book, The Experts Speak: The Definitive Compendium of Authoritative Misinformation, Christopher Cerf and Victor Navasky, expanded and revised edition, 1998.

The two authors are interesting—a National Lampoon Contributing Editor, and a  Sesame Street contributor (Cerf) and editorial director of The Nation, Navasky.

They created The Institute of Expertology, a group of scholars who record sayings from experts for posterity.

The book describes three kinds of experts: past, present and future. Also, three type of expertise: descriptive, prescriptive and predictive.

Richard Feynman reminds us, “Science is the belief in the ignorance of experts.”

Samples from the “Experts”

Politics

WSJ Editorial, “Bill Clinton will lose to any Republican who doesn’t drool on stage.”

“FDR will be a one-term president.” Mark Sullivan, New York Herald Tribune columnist and political commentator, 1935.

"The race will not be close at all. Landon will be overwhelmingly elected and I’ll state my reputation as a prophet on it." William Randolph Hearst, August 1936. [FDR in 1936 won 523 electoral votes to Alf Landon’s 8, 11M vote margin].

"And while I'm talking to mothers and fathers, I give you one more insurance. I have said this before but I will say it again and again and again: Your boys are not going to be sent into any foreign wars.” FDR October 30, 1940.

"It is highly unlikely that an airplane or a fleet of them could ever think of fleet of navy vessels under battle conditions.” FDR as Secretary of the Navy 1922.

"I have no political ambitions for myself or my children.” Joseph P Kennedy.


"I favor the civil rights act of 1964 and it must be enforced at gunpoint if necessary.”1965.

"I would have voted against the civil rights act of 1964.” 1968. 

Both Ronald Reagan.


"There are only two ways to reduce the budget deficit. We must do both.” April 1987.

"There are only three ways to reduce the budget deficit. We must do all three.” September 1987.

"There are only four ways to reduce the federal budget deficit. We must do all four.” August 1988.

All Michael Dukakis.


Economics

“Stocks have reached what looks like a permanently high plateau.” Irving Fisher, Yale Economist, October 17, 1929 [one week prior to the $6 billion stock market crash].

“1930 will be a splendid employment year.” US Dept of Labor, New Year’s Forecast, December 1929.

“In all likelihood world inflation is over.” Managing Director, IMF, 1959.

Hitler

“There is no doubt that he [Hitler] has become a much more quiet, more mature and thoughtful individual during his imprisonment than he was before and does not contemplate acting against existing authority.” Otto Leybold (Warden of Landsberg Prison), letter to the Bavarian Minister of Justice, Sept 1924.

“Hitler is a queer fellow who will never become Chancellor; the best he can hope for is to head the Postal Department.” Paul von Hindenburg, President of Germany, 1931.

War

“The Hawaiian Islands are over-protected; the entire Japanese fleet and air force could not seriously threaten Oahu.” Captain William T. Pulleston, former Chief of US Naval Intelligence, “What Are the Chances?” The Atlantic Monthly, August 1941.

“Among the really difficult problems of the world, the Arab-Israeli conflict is one of the simplest and most manageable.” Walter Lippmann, April 27, 1948.

Invention

“The phonograph is not of any commercial value.” Thomas Edison, 1880.

“For God’s sake go down to reception and get rid of a lunatic who’s down there. He says he’s got a machine for seeing by wireless! Watch him—he may have a razor on him.” Editor of the Daily Express, London, refusing to see John Logie Baird, the inventor of television, 1925.

“There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will.” Dr. Albert Einstein, 1932.

“What, Sir? Would you make a ship sail against the wind and currents by lighting a bonfire under her deck? I pray you excuse me. I have no time to listen to such nonsense.” Napoleon Bonaparte, to Robert Fulton, inventor of the steamboat, c. 1805.

“God himself could not sink this ship. Titanic Deckhand, responding to a passenger’s question, “Is this ship really unsinkable?” Southampton, England, April 10, 1912. [Sunday, April 14, 1912 it struck an iceberg].

“This is the biggest fool thing we have ever done…The bomb will never go off, and I speak as an expert in explosives.” Admiral William Daniel Leahy, advising President Truman on the impracticality of the US atomic bomb project, 1945.

"X-rays are hoax.” Lord Kelvin

"Radio has no future.” Lord Kelvin

"My dynamite will sooner lead to peace." Alfred Bernhard Nobel, founder of the Nobel Prizes.

Ed’s Favorite

"I have often thought that if there had been a good rap group around in those days I might've chosen a career in music instead of politics.” Richard M Nixon.

Ron’s Favorite

“Nothing of importance happened today.” George III (King of England), diary entry, July 4, 1776.

Episode #19 - How vs. What Matters

Ed and I discussed Peter Block’s seminal book, The Answer to How is Yes: Acting on What Matters. In my first discussion in May 2004 with Ed, he informed me he read two books in the prior year that changed his life: my first book [out of print], Professional’s Guide to Value Pricing, and Peter Block’s The Answer to How is Yes.

It is an absolutely profound work. I told Ed it’s the book I’ve always wanted to write.

SCA_Slides_pptx

SCA_Slides_pptx

The following are some snippets from the book, along with the six most common “how” questions, which questions Block says should be asked instead, and then how Ed’s tweaked two of Block’s questions based on his experience in change programs.

Book Snippets

  • Epigraph: “Transformation comes more from pursuing profound questions than seeking practical answers.”

  • We often avoid the question of whether something is worth doing by going to the question of “How do we do it?

  • Give up saying “how” for six months!—give priority to aim over speed.

  • Value what matters, not just what works.

  • How implies we just lack the right tool, it becomes utilitarian and pragmatic.

  • How questions deflect us from considering our deeper values.

  • Also assumes we don’t know, a defense against taking action—we become the blind man looking in a dark room for a black cat that is not there.

Here are the six questions that postpone the future and keep us encased in our present way of thinking:

  1. How do you do it? (Skips “Is this worth doing?”)

  2. How long will it take? (Oversimplifies the world)

  3. How much does it cost? (Ignores what price are we willing to pay?)

  4. How do you get those people to change? (Ignores the fact that you can’t get others to change!)

  5. How do we measure it? (If you can’t measure it, it does not exist. Things that matter most defy measurement [love, art, poetry, music, life]. Our obsession with measurement is really an expression of our doubt—we’ve lost faith in something. So much for imagination and creativity [how do we measure something new?])

  6. How have other people done it successfully? (We want to be leaders without risk of invention and innovation)

The alternative to asking “How” is saying “Yes,” a stance towards the possibility of more meaningful change

Here are Peter Block’s alternative questions:

  1. How do you do it? To What refusal have I been postponing?

  2. How long will it take? To What commitment am I willing to make?

  3. How much does it cost? To What is the price I am willing to pay?

  4. How do you get those people to change? To What is my contribution to the problem I am concerned with?

  5. How do we measure it? To What is the crossroad at which I find myself at this point in my life/work?

  6. How are other people doing it successfully? To What do we want to create together?

Ed has changed two of Block’s questions: #3 to “What is the value of it to me?”

And also #5 to “What is the judgment I need to make?”

Some Final Thoughts from Peter Block

When we follow fashion and ask for steps, recipes, and certainty, we deny our freedom, for we are trapped by the very act of asking the question. Freedom asks us to invent our own steps. “to be the author of your own experience.”

Asking how is an escape from freedom/accountability. We wish to go to heaven and not die.

Knowing how to do something may give us confidence, but it does not give us our freedom. Freedom comes from commitment, not accomplishment.

The pursuit of certainty and predictability is our caution speaking. Freedom is the prize, safety is the prize, what is required is faith more than fact and will more than skill.

There is little discussion of faith in organizations, but it is only with faith that significant changes can begin.

Idealist is “one who follows their ideals, even to the point of impracticality.” The willingness to pursue our desires past the point of practicality (the heart wants what the heart wants).

Who decides what is possible and what is practical?

Idealism dissolves in a world of measurement and instant results.

Institutions are based on consistency and predictability, while intimacy relies on variation and surprise (people aren’t resources/assets).

Without willingness to go deeper, little chance for any authentic change. We prefer actions and answers.

What is absent in a world dominated by the engineer and economist is the artist. The artist needs to enter our institutional experience in order to create a space for idealism, intimacy, and depth.

One of the beauties of volunteer organizations is that they know how to take advantage of people’s gifts, whereas what he calls “systems” are more concerned with people’s limitations.

Demanding a solution, or an action plan for everything, is also arrogant. It’s a wish for perfection. It’s our wish to be God.

We keep going from fashion to fashion, consultant to consultant, looking for an answer that’s not there—like looking for the fountain of youth.

Not “scientific management.” Organizations never in control, the unpredictability and mystery of life.

We do walk by faith, not sight. Peter Block’s philosophical book reminds me of how George Gilder ended his classic book, Wealth and Poverty, by Quoting Reinhold Niebuhr:

Nothing worth doing is completed in one lifetime.

Therefore, we must be saved by hope.

Nothing true or beautiful makes complete sense in any context of history.

Therefore we must be saved by faith.

Nothing we do, no matter how virtuous, can be accomplished alone.

Therefore we are saved by love.

Other Resources

The text of the speech can be found here, including Q&A.

Episode #14 - Top Ten Business Myths - Part 2

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On Friday the October 3, 2014 Show

Top Ten Business Myths, Part 2 (Myths 5-1). This episode is dedicated to the possibility that many myths exist about business and it would be better to rid ourselves of these ideas. Thinking about these myths is difficult because it requires us to examine some of our most deeply held beliefs and either dismiss them or at least think differently about them. If you are interested in challenging the conventional wisdom about these business myths, you are invited to listen to this episode of The Soul of Enterprise: Business in the Knowledge Economy, hosted by Ed Kless and Ron Baker.

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