Outliers

by Malcolm Gladwell

  And how did he get there? He hitchhiked, with the money that he made in the summer in his pocket, and when he arrived, he immediately got a series of really good jobs to help pay his way, because the factories were “looking for people.” And of course they were: they had to feed the needs of the big generation just ahead of those born in the demographic trough of the 1930s, and the big generation of baby boomers coming up behind them. The sense of possibility so necessary for success comes not just from inside us or from our parents. It comes from our time: from the particular opportunities that our particular place in history presents us with. For a young would-be lawyer, being born in the early 1930s was a magic time, just as being born in 1955 was for a software programmer, or being born in 1835 was for an entrepreneur.

  Today, Mort Janklow has an office high above Park Avenue filled with gorgeous works of modern art—a Dubuffet, an Anselm Kiefer. He tells hilarious stories. (“My mother had two sisters. One lived to be ninety-nine and the other died at ninety. The ninety-nine-year-old was a smart woman. She married my Uncle Al, who was the chief of sales for Maidenform. Once I said to him, ‘What’s the rest of the country like, Uncle Al?’ And he said, ‘Kiddo. When you leave New York, every place is Bridgeport.’”) He gives the sense that the world is his for the taking. “I’ve always been a big risk taker,” he says. “When I built the cable company, in the early stages, I was making deals where I would have been bankrupt if I hadn’t pulled it off. I had confidence that I could make it work.”

  Mort Janklow went to New York City public schools when they were at their best. Maurice Janklow went to New York City public schools when they were at their most overcrowded. Mort Janklow went to Columbia University Law School, because demographic trough babies have their pick of selective schools. Maurice Janklow went to Brooklyn Law School, which was as good as an immigrant child could do in 1919. Mort Janklow sold his cable business for tens of millions of dollars. Maurice Janklow closed titles for twenty-five dollars. The story of the Janklows tells us that the meteoric rise of Joe Flom could not have happened at just any time. Even the most gifted of lawyers, equipped with the best of family lessons, cannot escape the limitations of their generation.

  “My mother was coherent until the last five or six months of her life,” Mort Janklow said. “And in her delirium she talked about things that she’d never talked about before. She shed tears over her friends dying in the 1918 flu epidemic. That generation—my parents’ generation—lived through a lot. They lived through that epidemic, which took, what? ten percent of the world’s population. Panic in the streets. Friends dying. And then the First World War, then the Depression, then the Second World War. They didn’t have much of a chance. That was a very tough period. My father would have been much more successful in a different kind of world.”

  Lesson Number Three: The Garment Industry and Meaningful Work

  8.

  In 1889, Louis and Regina Borgenicht boarded an ocean liner in Hamburg bound for America. Louis was from Galacia, in what was then Poland. Regina was from a small town in Hungary. They had been married only a few years and had one small child and a second on the way. For the thirteen-day journey, they slept on straw mattresses on a deck above the engine room, hanging tight to their bunk beds as the ship pitched and rolled. They knew one person in New York: Borgenicht’s sister, Sallie, who had immigrated ten years before. They had enough money to last a few weeks, at best. Like so many other immigrants to America in those years, theirs was a leap of faith.

  Louis and Regina found a tiny apartment on Eldridge Street, on Manhattan’s Lower East Side, for $8 a month. Louis then took to the streets, looking for work. He saw peddlers and fruit sellers and sidewalks crammed with pushcarts. The noise and activity and energy dwarfed what he had known in the Old World. He was first overwhelmed, then invigorated. He went to his sister’s fish store on Ludlow Street and persuaded her to give him a consignment of herring on credit. He set up shop on the sidewalk with two barrels of fish, hopping back and forth between them and chanting in German:

  For frying

  For baking

  For cooking

  Good also for eating

  Herring will do for every meal,

  And for every class!

  By the end of the week, he had cleared $8. By the second week, $13. Those were considerable sums. But Louis and Regina could not see how selling herring on the street would lead to a constructive business. Louis then decided to try being a pushcart peddler. He sold towels and tablecloths, without much luck. He switched to notebooks, then bananas, then socks and stockings. Was there really a future in pushcarts? Regina gave birth to a second child, a daughter, and Louis’s urgency grew. He now had four mouths to feed.

  The answer came to him after five long days of walking up and down the streets of the Lower East Side, just as he was about to give up hope. He was sitting on an overturned box, eating a late lunch of the sandwiches Regina had made for him. It was clothes. Everywhere around him stores were opening—suits, dresses, overalls, shirts, skirts, blouses, trousers, all made and ready to be worn. Coming from a world where clothing was sewn at home by hand or made to order by tailors, this was a revelation.

  “To me the greatest wonder in this was not the mere quantity of garments—although that was a miracle in itself—” Borgenicht would write years later, after he became a prosperous manufacturer of women’s and children’s clothing, “but the fact that in America even poor people could save all the dreary, time-consuming labor of making their own clothes simply by going into a store and walking out with what they needed. There was a field to go into, a field to thrill to.”

  Borgenicht took out a small notebook. Everywhere he went, he wrote down what people were wearing and what was for sale—menswear, women’s wear, children’s wear. He wanted to find a “novel” item, something that people would wear that was not being sold in the stores. For four more days he walked the streets. On the evening of the final day as he walked toward home, he saw a half dozen girls playing hopscotch. One of the girls was wearing a tiny embroidered apron over her dress, cut low in the front with a tie in the back, and it struck him, suddenly, that in his previous days of relentlessly inventorying the clothing shops of the Lower East Side, he had never seen one of those aprons for sale.

  He came home and told Regina. She had an ancient sewing machine that they had bought upon their arrival in America. The next morning, he went to a dry-goods store on Hester Street and bought a hundred yards of gingham and fifty yards of white crossbar. He came back to their tiny apartment and laid the goods out on the dining room table. Regina began to cut the gingham—small sizes for toddlers, larger for small children—until she had forty aprons. She began to sew. At midnight, she went to bed and Louis took up where she had left off. At dawn, she rose and began cutting buttonholes and adding buttons. By ten in the morning, the aprons were finished. Louis gathered them up over his arm and ventured out onto Hester Street.

  “Children’s aprons! Little girls’ aprons! Colored ones, ten cents. White ones, fifteen cents! Little girls’ aprons!”

  By one o’clock, all forty were gone.

  “Ma, we’ve got our business,” he shouted out to Regina, after running all the way home from Hester Street.

  He grabbed her by the waist and began swinging her around and around.

  “You’ve got to help me,” he cried out. “We’ll work together! Ma, this is our business.”

  9.

  Jewish immigrants like the Floms and the Borgenichts and the Janklows were not like the other immigrants who came to America in the nineteenth and early twentieth centuries. The Irish and the Italians were peasants, tenant farmers from the impoverished countryside of Europe. Not so the Jews. For centuries in Europe, they had been forbidden to own land, so they had clustered in cities and towns, taking up urban trades and professions. Seventy percent of the Eastern European Jews who came through Ellis Island in the thirty years or so before the First World War had some kind of
occupational skill. They had owned small groceries or jewelry stores. They had been bookbinders or watchmakers. Overwhelmingly, though, their experience lay in the clothing trade. They were tailors and dressmakers, hat and cap makers, and furriers and tanners.

  Louis Borgenicht, for example, left the impoverished home of his parents at age twelve to work as a salesclerk in a general store in the Polish town of Brzesko. When the opportunity came to work in Schnittwaren Handlung (literally, the handling of cloth and fabrics or “piece goods,” as they were known), he jumped at it. “In those days, the piece-goods man was clothier to the world,” he writes, “and of the three fundamentals required for life in that simple society, food and shelter were humble. Clothing was the aristocrat. Practitioners of the clothing art, dealers in wonderful cloths from every corner of Europe, traders who visited the centers of industry on their annual buying tours—these were the merchant princes of my youth. Their voices were heard, their weight felt.”

  Borgenicht worked in piece goods for a man named Epstein, then moved on to a store in neighboring Jaslow called Brandstatter’s. It was there that the young Borgenicht learned the ins and outs of all the dozens of different varieties of cloth, to the point where he could run his hand over a fabric and tell you the thread count, the name of the manufacturer, and its place of origin. A few years later, Borgenicht moved to Hungary and met Regina. She had been running a dressmaking business since the age of sixteen. Together they opened a series of small piece-goods stores, painstakingly learning the details of small-business entrepreneurship.

  Borgenicht’s great brainstorm that day on the upturned box on Hester Street, then, did not come from nowhere. He was a veteran of Schnittwaren Handlung, and his wife was a seasoned dressmaker. This was their field. And at the same time as the Borgenichts set up shop inside their tiny apartment, thousands of other Jewish immigrants were doing the same thing, putting their sewing and dressmaking and tailoring skills to use, to the point where by 1900, control of the garment industry had passed almost entirely into the hands of the Eastern European newcomers. As Borgenicht puts it, the Jews “bit deep into the welcoming land and worked like madmen at what they knew.”

  Today, at a time when New York is at the center of an enormous and diversified metropolitan area, it is easy to forget the significance of the set of skills that immigrants like the Borgenichts brought to the New World. From the late nineteenth century through the middle of the twentieth century, the garment trade was the largest and most economically vibrant industry in the city. More people worked making clothes in New York than at anything else, and more clothes were manufactured in New York than in any other city in the world. The distinctive buildings that still stand on the lower half of Broadway in Manhattan—from the big ten- and fifteen-story industrial warehouses in the twenty blocks below Times Square to the cast-iron lofts of SoHo and Tribeca—were almost all built to house coat makers and hatmakers and lingerie manufacturers and huge rooms of men and women hunched over sewing machines. To come to New York City in the 1890s with a background in dressmaking or sewing or Schnittwaren Handlung was a stroke of extraordinary good fortune. It was like showing up in Silicon Valley in 1986 with ten thousand hours of computer programming already under your belt.

  “There is no doubt that those Jewish immigrants arrived at the perfect time, with the perfect skills,” says the sociologist Stephen Steinberg. “To exploit that opportunity, you had to have certain virtues, and those immigrants worked hard. They sacrificed. They scrimped and saved and invested wisely. But still, you have to remember that the garment industry in those years was growing by leaps and bounds. The economy was desperate for the skills that they possessed.”

  Louis and Regina Borgenicht and the thousands of others who came over on the boats with them were given a golden opportunity. And so were their children and grandchildren, because the lessons those garment workers brought home with them in the evenings turned out to be critical for getting ahead in the world.

  10.

  The day after Louis and Regina Borgenicht sold out their first lot of forty aprons, Louis made his way to H. B. Claflin and Company. Claflin was a dry-goods “commission” house, the equivalent of Brandstatter’s back in Poland. There, Borgenicht asked for a salesman who spoke German, since his English was almost nonexistent. He had in his hand his and Regina’s life savings—$125—and with that money, he bought enough cloth to make ten dozen aprons. Day and night, he and Regina cut and sewed. He sold all ten dozen in two days. Back he went to Claflin for another round. They sold those too. Before long, he and Regina hired another immigrant just off the boat to help with the children so Regina could sew full-time, and then another to serve as an apprentice. Louis ventured uptown as far as Harlem, selling to the mothers in the tenements. He rented a storefront on Sheriff Street, with living quarters in the back. He hired three more girls, and bought sewing machines for all of them. He became known as “the apron man.” He and Regina were selling aprons as fast as they could make them.

  Before long, the Borgenichts decided to branch out. They started making adult aprons, then petticoats, then women’s dresses. By January of 1892, the Borgenichts had twenty people working for them, mostly immigrant Jews like themselves. They had their own factory on the Lower East Side of Manhattan and a growing list of customers, including a store uptown owned by another Jewish immigrant family, the Bloomingdale brothers. Keep in mind the Borgenichts had been in the country for only three years at this point. They barely spoke English. And they weren’t rich yet by any stretch of the imagination. Whatever profit they made got plowed back into their business, and Borgenicht says he had only $200 in the bank. But already he was in charge of his own destiny.

  This was the second great advantage of the garment industry. It wasn’t just that it was growing by leaps and bounds. It was also explicitly entrepreneurial. Clothes weren’t made in a single big factory. Instead, a number of established firms designed patterns and prepared the fabric, and then the complicated stitching and pressing and button attaching were all sent out to small contractors. And if a contractor got big enough, or ambitious enough, he started designing his own patterns and preparing his own fabric. By 1913, there were approximately sixteen thousand separate companies in New York City’s garment business, many just like the Borgenichts’ shop on Sheriff Street.

  “The threshold for getting involved in the business was very low. It’s basically a business built on the sewing machine, and sewing machines don’t cost that much,” says Daniel Soyer, a historian who has written widely on the garment industry. “So you didn’t need a lot of capital. At the turn of the twentieth century, it was probably fifty dollars to buy a machine or two. All you had to do to be a contractor was to have a couple sewing machines, some irons, and a couple of workers. The profit margins were very low but you could make some money.”

  Listen to how Borgenicht describes his decision to expand beyond aprons:

  From my study of the market I knew that only three men were making children’s dresses in 1890. One was an East Side tailor near me, who made only to order, while the other two turned out an expensive product with which I had no desire at all to compete. I wanted to make “popular price” stuff—wash dresses, silks, and woolens. It was my goal to produce dresses that the great mass of the people could afford, dresses that would—from the business angle—sell equally well to both large and small, city and country stores. With Regina’s help—she always had excellent taste, and judgment—I made up a line of samples. Displaying them to all my “old” customers and friends, I hammered home every point—my dresses would save mothers endless work, the materials and sewing were as good and probably better than anything that could be done at home, the price was right for quick disposal.

  On one occasion, Borgenicht realized that his only chance to undercut bigger firms was to convince the wholesalers to sell cloth to him directly, eliminating the middleman. He went to see a Mr. Bingham at Lawrence and Company, a “tall, gaunt, white-bearde
d Yankee with steel-blue eyes.” There the two of them were, the immigrant from rural Poland, his eyes ringed with fatigue, facing off in his halting English against the imperious Yankee. Borgenicht said he wanted to buy forty cases of cashmere. Bingham had never before sold to an individual company, let alone a shoestring operation on Sheriff Street.

  “You have a hell of a cheek coming in here and asking me for favors!” Bingham thundered. But he ended up saying yes.

  What Borgenicht was getting in his eighteen-hour days was a lesson in the modern economy. He was learning market research. He was learning manufacturing. He was learning how to negotiate with imperious Yankees. He was learning how to plug himself into popular culture in order to understand new fashion trends.

  The Irish and Italian immigrants who came to New York in the same period didn’t have that advantage. They didn’t have a skill specific to the urban economy. They went to work as day laborers and domestics and construction workers—jobs where you could show up for work every day for thirty years and never learn market research and manufacturing and how to navigate the popular culture and how to negotiate with the Yankees, who ran the world.

  Or consider the fate of the Mexicans who immigrated to California between 1900 and the end of the 1920s to work in the fields of the big fruit and vegetable growers. They simply exchanged the life of a feudal peasant in Mexico for the life of a feudal peasant in California. “The conditions in the garment industry were every bit as bad,” Soyer goes on. “But as a garment worker, you were closer to the center of the industry. If you are working in a field in California, you have no clue what’s happening to the produce when it gets on the truck. If you are working in a small garment shop, your wages are low, and your conditions are terrible, and your hours are long, but you can see exactly what the successful people are doing, and you can see how you can set up your own job.”*