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anonymous

"Engagement" Is Not A Metric, It's An Excuse - Occam's Razor by Avinash Kaushik - 0 views

www.kaushik.net/...-is-not-a-metric-its-an-excuse

analytics google metrics engagement

shared by anonymous on 01 May 13 - No Cached
  • There was so much we could measure and so little. As Marketers we have been frustrated with the near constant 2% conversion rates for our websites. We would like to have another metric that justifies our existence, and of course that of our website.
  • The fervor for measuring engagement is even higher for non-ecommerce websites because there is little in terms of Outcomes to measure there.
  • Engagement, that phrase / name, is not a metric that anyone understands and even when used it rarely drives the action / improvement on the website.
  • ...24 more annotations...
  • Because it is not really a metric, it is an excuse.
  • Even as creating engaging experiences on the web is mandatory, the metric called Engagement is simply an excuse for an unwillingness to sit down and identify why a site exists.
  • An excuse for a unwillingness to identify real metrics that measure if your web presence is productive. An excuse for taking a short cut with clickstream data rather than apply a true Web Analytics 2.0 approach to measure success.
  • let's try to understand why in the context of web analytics so many efforts at measuring "engagement" have yielded almost no results:
  • Each business is unique and each website is trying to accomplish something unique.
  • It is nearly impossible to define engagement in a standard way that can be applied across the board.
  • At the heart of it engagement tries to measure something deeply qualitative.
  • One of my personal golden rules is that a metric should be instantly useful. This one is not.
  • Most of all engagement is a proxy for measuring an outcome from a website.
  • Conversion is not enough, as mentioned above, so we try something else. The problem that we'll define engagement as a measure of some kind of outcome but we won't give it the sexy name of engagement.
  • In Summary: The reason engagement has not caught on like wild fire (except in white papers and analyst reports and pundit posts) is that it is a "heart" metric we are trying to measure with "head" data, and engagement is such a utterly unique feeling for each website that it will almost always have a unique definition for each and every website.
  • "So what you are saying is that we should not measure engagement." I am saying you should very very carefully consider the above points, then not take a short cut (or as the American's say, a cop out) and actually define the metric as a Outcome metric (see element three of the trinity ).
  • Here is a process you can follow:
  • Step One: Define why your website exists. What is its purpose? Not a five hundred word essay, rather in fifteen words or less. If it helps complete this statement: "When the crap hits the fan the only purpose of my website is to ……….".
  • Step Two: If you did a great job with it then the above statement contains the critical few metrics (three or less) that will identify exactly how you can measure if your website is successful at delivering against its purpose.
  • Step Three: If you have a ecommerce website then revenue or conversion is probably one of your critical few. But one of the critical few is what your senior management might call engagement. Work hard to define exactly what that metric is (see below for ideas).
  • Step Four: Don't call that metric engagement. Call it by its real name. Don't hide behind a pretty moniker.
  • To stimulate your thought process here are some metrics you can use to measure "customer engagement" (that visitors are engaging with your website):
  • "Are you engaged with us?"
  • Likelihood to recommend website
  • Use primary market research
  • Customer retention over time
  • # of Visits per Unique Visits, Recency of Unique Visitors
  • In Summary : When most people measure "engagement" they have not done due diligence to identify what success means for their online presence. In absence of that hard work they fall into measuring engagement, and then measure something that is hard to action or something that will rarely improve the bottomline. Avoid this at all costs. Think very carefully about what you are measuring if you do measure engagement. If engagement to you is repeat visitors by visitors then call it Visit Frequency, don't call it engagement. Don't sexify, simplify! :) If you want to measure "engagement" then think of new and more interesting ways to measure that (see list above). Engagement at its core a qualitative feeling. It really hard to measure via pure clickstream (web analytics data). Think different.
  • anonymous on 01 May 13
     
    "Measuring "engagement" seems to be an even longer quest for Marketers and Analysts. There was so much we could measure and so little. As Marketers we have been frustrated with the near constant 2% conversion rates for our websites. We would like to have another metric that justifies our existence, and of course that of our website."
anonymous

Eight Silly Data Things Marketing People Believe That Get Them Fired. - 1 views

www.kaushik.net/...data-strategy-metrics-mistakes

analytics google analytics marketing

shared by anonymous on 01 May 13 - No Cached
  • It turns out that Marketers, especially Digital Marketers, make really silly mistakes when it comes to data. Big data. Small data. Any data.
  • two common themes
  • 1. Some absolutely did not use data to do their digital jobs.
  • ...74 more annotations...
  • 2. Many used some data, but they unfortunately used silly data strategies/metrics.
  • Silly not in their eyes, silly in my eyes.
  • A silly metric, I better define it :), is one that distracts you for focusing on business investments that lead to bottom-line impact.
    • anonymous
      anonymous on 01 May 13
       
      Within the context of my current project, the bottom-line impact would be increased engagement (in the form of donations, clinical study participation, and blood/fluid donation to scientific research).
  • Eight data things that marketing people believe that get them fired…. 1. Real-time data is life changing. 2. All you need to do is fix the bounce rate. 3. Number of Likes represents social awesomeness. 4. # 1 Search Results Ranking = SEO Success. 5. REDUCE MY CPC! REDUCE MY CPC NOW!! 6. Page views. Give me more page views, more and more and more! 7. Impressions. Go, get me some impressions stat! 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • 1. Real-time data is life changing.
  • A lot of people get fired for this. Sadly not right away, because it takes time to realize how spectacular of a waste of money getting to real-time data was.
    • anonymous
      anonymous on 01 May 13
       
      This is some REALLY FUNNY SHIT to me. But I'm a nerd.
  • I want you to say: "I don't want real-time data, I want right-time data. Let's understand the speed of decision making in our company. If we make real-time decisions, let's get real time data. If we make decisions over two days, let's go with that data cycle. If it take ten days to make a decision to change bids on our PPC campaigns, let's go with that data cycle." Right-time.
  • Real-time data is very expensive.
  • It is also very expensive from a decision-making perspective
  • even in the best case scenario of the proverbial pigs flying, they'll obsess about tactical things.
    • anonymous
      anonymous on 01 May 13
       
      I get this completely. We get hung up on the tactical and lose sight of the strategic.
  • So shoot for right-time data.
  • That is a cheaper systems/platform/data strategy.
  • (And remember even the most idiotic system in the world now gives you data that is a couple hours old with zero extra investment from you. So when you say real time you are really saying "Nope, two hours is not enough for me!").
    • anonymous
      anonymous on 01 May 13
       
      THIS is probably the best argument for our using Google Analytics and Google Search to collect data instead of paying large costs to firms that will offer questionable results.
  • That is also a way to get people to sync the data analysis (not data puking, sorry I meant data reporting) with the speed at which the company actually makes decisions (data > analyst > manager > director > VP > question back to manager > yells at the analyst > back to director> VP = 6 days).
  • The phrase "real-time data analysis" is an oxymoron.
  • 2. All you need to do is fix the bounce rate.
  • The difference between a KPI and a metric is that the former has a direct line of sight to your bottom-line, while the latter is helpful in diagnosing tactical challenges.
  • Bounce rate is really useful for finding things you suck at.
  • Along the way you also learn how not to stink. Bounce rate goes from 70% to a manageable 30%. Takes three months.
  • Stop obsessing about bounce rate.
  • From the time people land on your site it might take another 12 – 25 pages for them to buy or submit a lead. Focus on all that stuff. The tough stuff. Then you'll make money.
  • Focus on the actual game. Focus on incredible behavior metrics like Pages/Visit, focus on the Visitor Flow report, obsess about Checkout Abandonment Rate, make love to Average Order Size.
  • 3. Number of Likes represents social awesomeness.
  • it does not take a very long time for your Senior Management to figure out how lame the Likes metric is and that it drives 1. Zero value on Facebook and 2. Zero squared economic value or cost savings to the business.
  • many spectacular reasons
  • Here's one… We are looking at two consumer product brands, the tiny company Innocent Drinks and the Goliath called Tide Detergent.
  • Even with 10x the number of Likes on Facebook the giant called Tide has 4x fewer people talking about their brand when compared to the David called Innocent.
  • As no less than three comments mention below, Innocent is 90% owned by Coca Cola. Fooled me!
  • In a massively large company they've carved out an identity uniquely their own. They refuse to be corrupted by Coca Cola's own Facebook strategy of constant self-pimping and product ads masquerading as "updates." As a result pound for pound Innocent's fan engagement on its page is multiple time better than Coca Cola's - even if the latter has many more likes.
  • 4. # 1 Search Results Ranking = SEO Success.
  • Not going to happen.
  • as all decent SEOs will tell you, is that search results are no longer standardized. Rather they are personalized. I might even say, hyper-personalized. Regardless of if you are logged in or not.
  • When I search for "avinash" on Google I might rank #1 in the search results because I'm logged into my Google account, the engine has my search history, my computer IP address, it also has searches by others in my vicinity, local stories right now, and so many other signals. But when you search for "avinash" your first search result might be a unicorn. Because the search engine has determined that the perfect search result for you for the keyword avinash is a unicorn.
    • anonymous
      anonymous on 01 May 13
       
      This is crucial to understand. I will be sharing this, at length, with my boss. :)
  • Universal search for example means that personalized results will not only look for information from web pages, they also look for YouTube/Vimoe videos, social listings, images of course, and so on and so forth.
  • Then let's not forget that proportionaly there are very few head searches, your long tail searches will be huge.
  • Oh and remember that no one types a word or two, people use long phrases.
  • There are a ton more reasons obsessing about the rank of a handful of words on the search engine results page (SERP) is a very poor decision.
  • So check your keyword ranking if it pleases you.
  • But don't make it your KPI.
  • For purely SEO, you can use Crawl Rate/Depth, Inbound Links (just good ones) and growth (or lack there of) in your target key phrases as decent starting points.
  • You can graduate to looking at search traffic by site content or types of content you have (it's a great signal your SEO is working).
  • Measuring Visits and Conversions in aggregate first and segmented by keywords (or even key word clusters) will get you on the path to showing real impact.
  • That gives you short term acquisition quality, you can then move to long term quality by focusing on metrics like lifetime value.
  • 5. REDUCE MY CPC! REDUCE MY CPC NOW!!
  • You should judge the success of that showing up by measure if you made money! Did you earn any profit?
  • Friends don't let friends use CPC as a KPI. Unless said friends want the friend fired.
  • 6. Page views. Give me more page views, more and more and more!
  • Content consumption is a horrible metric. It incentivises sub optimal behavior in your employees/agencies.
  • If you are a news site, you can get millions of page views
  • And it will probably get you transient traffic.
  • And what about business impact from all these one night stands ?
  • If you are in the content only business (say my beloved New York Times) a better metric to focus on is Visitor Loyalty
  • If your are in the lead generation business and do the "OMG let's publish a infographic on dancing monkey tricks which will get us a billion page views, even though we have nothing to do with dancing or monkeys or tricks" thing, measure success on the number of leads received and not how "viral" the infographic went and how many reshares it got on Twitter.
    • anonymous
      anonymous on 01 May 13
       
      In other words, use that odd-one-off to redirect attention to the source of that one-off. I'll have to ponder that given our different KPI needs (nonprofit, we don't sell anything).
  • Don't obsess about page views.
  • Then measure the metric closest to that. Hopefully some ideas above will help get you promoted.
  • 7. Impressions. Go, get me some impressions stat!
  • My hypothesis is that TV/Radio/Magazines have created this bad habit. We can measure so little, almost next to nothing, that we've brought our immensely shaky GRP metric from TV to digital. Here it's called impressions. Don't buy impressions.
  • Buy engagement. Define what it means first of course .
  • If you are willing to go to clicks, do one better and measure Visits. At least they showed up on your mobile/desktop site.
  • Now if you are a newbie, measure bounce rate. If you have a tiny amount of experience measure Visit Duration. If you are a pro, measure Revenue. If you are an Analysis Ninja, measure Profit.
  • Impressions suck. Profit rocks.
  • If the simple A/B (test/control) experiment demonstrates that delivering display banner ad impressions to the test group delivers increased revenue, buy impressions to your heart's content. I'll only recommend that you repeat the experiment once a quarter.
  • You can buy impressions if you can prove via a simple controlled experiment that when we show impressions we got more engagement/sales and when we don't show impressions we did not get more engagement/sales.
  • But if you won't do the experiment and you use the # of impressions as a measure of success
  • 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • This is not a metric, this is more of a what data you'll use to target your advertising issue.
  • Our primary method of buying advertising and marketing is: "I would like to reach 90 year old grandmas that love knitting, what tv channel should I advertise on." Or they might say: "I would like to reach 18 to 24 year olds with college education who supported Barack Obama for president." And example of demographic and psychographic segments.
  • We use that on very thin ice data, we bought advertising. That was our lot in life.
  • Did you know 50% of of TV viewership is on networks that each have <1% share? Per industry.bnet.com. I dare you to imagine how difficult it is to measure who they are, and how to target them to pimp your shampoo, car, cement.
  • Intent beats demographics and psychographics. Always.
  • if you have advertising money to spend, first spend it all on advertising that provides you intent data.
  • Search has a ton of strong intent. It does not matter if you are a grandma or a 18 year old. If you are on Baidu and you search for the HTC One, you are expressing strong intent. Second, content consumption has intent built in. If I'm reading lots of articles about how to get pregnant, you could show me an ad related to that
  • The first intent is strong, the second one is weaker.
  • There is a lot of intent data on the web. That is our key strength.
  • anonymous on 01 May 13
     
    This is a really great read by Avinash Kaushik at Occam's Razor. Volunmuous highlights follow.
anonymous

I Got No Ecommerce. How Do I Measure Success? - Occam's Razor by Avinash Kaushik - 0 views

www.kaushik.net/...merce-how-do-i-measure-success

analytics google metrics engagement

shared by anonymous on 01 May 13 - Cached
  • My recommendation: Measure the four metrics that are under the "Visitor Loyalty" button in Google Analytics (or in your favorite web analytics application). Loyalty, Recency, Length of Visit, Depth of Visit.
  • The goal is to use web analytics data to interpret success of a visit to your website.
  • There is one singular reason I loved 'em: they showed distribution and not simply averages for each of the metric!
  • ...18 more annotations...
  • Visitor Loyalty: During the reporting time period how often do "people" ("visitors") visit my website?
  • The number you are used to seeing is "average visits per visitor". That is usually one point something. It hides the truth.
  • For example you update your website ten times each month. If you have 100% loyal visitor base then they should be visiting your website ten times each month. Are they? What's your number? Is it going up over time?
  • Action: 1) Identify a goal for your non-ecommerce website for the # of visits you expect from the traffic to your website in a given time period (say week, month etc). 2) Measure reality using above report. 3) Compare your performance over time to ensure you are making progress, or potentially not as in my case…
  • Recency: How long has it been since a visitor last visited your website? Sounds confusing? Don't worry it is cool (it even has a psychedelic border! :)……
  • As would be the case for a jobs site. Or craigslist. Or any website that wants lots lots of repeat visits. Using this simple report you can now see how you are doing when it comes to the distribution of visitors in terms of their propensity to visit your site.
  • Length of Visit: During the reporting period what is the quality of visit as represented by length of a visitor session in seconds.
  • But it has always been frustrating to me how hard it is to get away from the average and measure the distribution of the visits to check if the average time on site is 50 seconds because one person visited for one second and the other person for 100 seconds. The average hides so much. Here's a better alternative……
  • Ain't that better? I think so. So many things jump out at me, but notice that either I lose 'em right away or if some how I can suck them in for one minute then they tend to stay for a long time. Hurray! I have a better idea of how to interact with my visitors.
  • 1) Identify what the distribution is for your website for length of visits. 2) Think of creative ways to engage traffic – what can I do to keep you for sixty seconds because after that you are mine! 3) Should I start charging more for ads on my site – if I have 'em – after 60 seconds? 4) If you are a support website then should you be embarrassed if 20% of your audience was on the site for more than ten minutes!
  • Depth of Visit: During a given time period what is the distribution of number of pages in each visit to the website.
  • You are used to seeing average page views per visitors, above is something that is a lot more helpful. I was also able to get this exact metric from my indextools implementation…..
  • Action: There has been so much said about this already so I'll spare your the pain. You can easily imagine how wonderful and fantastic this data is as you go about analyzing experience of your customers (and so much more powerful, a million times more, than average page views per visitor!).
  • Recommendations for all of the above metrics:
  • Socialize them to your key stake holders and decision makers to make the realize what is really happening on your website.
  • Absolutely positively work with your leadership to create goals and then measure against goals over time
  • Segment the data! For Visitor Loyalty or Length of Visit what are the most important acquisition sources? What are the keywords that drive valuable segments of traffic to the website?
  • Segmentation is key to insights that will drive action.
  • anonymous on 01 May 13
     
    "A vast majority of discourse in the web analytics world is about orders and conversions and revenue. There is not enough of it about non-ecommerce websites, metrics and KPI's."  - Occam's Razor by Avinash Kaushik
anonymous

Science: Why is the flight journey from Dubai to Los Angeles always over Europe, Greenl... - 0 views

www.quora.com/...rectly-over-the-Atlantic-Ocean

shared by anonymous on 08 Mar 13 - Cached
  • Going across the Atlantic would be out of the way and make the trip longer. Here is the shortest path from Dubai to Los Angeles:
  • This "Mercator projection" is extremely stretched out near the poles, so a path that goes through very high latitudes is stretched out quite a lot on the map. It looks much longer than it really is. Thus, although the path straight across the Atlantic looks shorter, it is actually longer.
  • Mathematically, this impossibility of a perfect map projection means the metric for the Earth is different from that of a map. It results from the Earth being curved in a technical sense.
  • ...1 more annotation...
  • The outside edge of a cylinder, by contrast, is actually flat in this sense of the word, not curved. It is curved in three-dimensional space, but it is itself two-dimensional, and within two dimensions it has no curvature. This is because it can be cut and set down flat without any stretching, so if the Earth were like the edge of a cylinder we could make nice flat maps and draw straight lines on them to find the shortest distances. Since the Earth is roughly a sphere, which is truly curved, we can't do this, and to find the shortest path between points we need to use a globe or use mathematical techniques; we can't rely on what maps seem to tell us.
  • anonymous on 08 Mar 13
     
    Also how does the rotation of Earth and movement of the atmosphere figure in? If say a flight takes 12 hours, would you not be back in Dubai due to the Earth's rotation?
anonymous

Didn't do the reading? With digital textbooks, your professor can prove it - 0 views

arstechnica.com/...ks-your-professor-can-prove-it

shared by anonymous on 09 Apr 13 - No Cached
  • The article cites a couple of examples where professors attribute students’ low grades to the CourseSmart-provided proof that the student never, or rarely, opened their books. The engagement index shows not only what, but when, students are reading, so if they opt not to peruse the textbook until the day or night before a test, the professor will know.
  • Students know that the books are tracking them, but it’s still unclear to all parties involved whether the “engagement index” is a fair or valuable metric.
  • anonymous on 09 Apr 13
     
    "There exists a textbook that will report back to your professors whether you've been reading it, according to a report Tuesday from the New York Times. A startup named CourseSmart now offers an education package to schools that allows professors to, among other things, monitor what their students read in course textbooks as well as passages they highlight."
anonymous

When the Worst Performers are the Happiest Employees - At Work - WSJ - 0 views

blogs.wsj.com/...ad-at-their-jobs-and-loving-it

shared by anonymous on 04 Apr 13 - No Cached
  • “Low performers often end up with the easiest jobs because managers don’t ask much of them,” he said, so they’re under less stress and they’re more satisfied with their daily work lives.
  • Meanwhile, dedicated and conscientious workers end up staying at the office late, correcting the work of the low performers, and making sure clients or customers are satisfied. This pattern breeds frustration and disengagement in the high performers—and perhaps ultimately drives them to seek work elsewhere. “They feel stressed and undervalued, and it starts to undermine the high performers’ confidence that the organization is a meritocracy,” said Mr. Murphy.
  • To remedy the situation, managers should speak frankly with high and middle performers, ferreting out what frustrations might potentially send them looking for new opportunities. They should also find out what could motivate them to stick around, he added.
    • anonymous
      anonymous on 04 Apr 13
       
      Sadly, this is very hard to do in some environments. To me, it's a matter of metrics and truly understanding your teams. For instance: It could be that buying people tablets for work (with the unspoken nod that it'll be fun to play with) will placate some, but doing so is a political nightmare. Same with almost any fringe item. They're hard to justify and even harder to know if it's well spent money since job satisfaction is in this 'nebulous zone' with little data. But, as I've seen happen, someone really valuable will leave and an org will effectively 'lose' way more productivity than buying tons of tablets would have cost.
  • ...2 more annotations...
  • In the remaining 58% of organizations surveyed, high performers were the most engaged, or engagement scores were about equal among the employees. In the rarest cases, Murphy said, the middle performers were the most engaged.  That segment of the workforce—the employees who are neither superstars nor slackers—tends to be ignored by managers, he said.
  • Low performers were also more likely than the other two groups to recommend their company as a “great organization to work for.” And in many cases, they didn’t even realize they were low performers. When asked whether the employees at the company “all live up to the same standards,” low performers were far more likely to agree with the statement than their higher-achieving counterparts.
  • anonymous on 04 Apr 13
     
    "A new study finds that, in 42% of companies, low performers actually report being more engaged - more motivated and more likely to enjoy working at their organization, for example - than middle and high performers do." - Thanks, Erik. Although I don't know why I should *thank* you for this data. :)
anonymous

The Geopolitics of the Yangtze River: Developing the Interior - 0 views

www.stratfor.com/...gtze-river-developing-interior

yangtze geopolitics river developing interior

shared by anonymous on 01 Apr 13 - Cached
  • As the competitive advantage of low-cost, export-oriented manufacturing in China's coastal industrial hubs wanes, Beijing will rely more heavily on the cities along the western and central stretches of the Yangtze River to drive the development of a supplemental industrial base throughout the country's interior.
  • Managing the migration of industrial activity from the coast to the interior -- and the social, political and economic strains that migration will create -- is a necessary precondition for the Communist Party's long-term goal of rebalancing toward a more stable and sustainable growth model based on higher domestic consumption. In other words, it is critical to ensuring long-term regime security.
  • China is in many ways as geographically, culturally, ethnically and economically diverse as Europe. That regional diversity, which breeds inequality and in turn competition, makes unified China an inherently fragile entity. It must constantly balance between the interests of the center and those of regions with distinct and often contradictory economic and political interests.
  • ...32 more annotations...
  • the central government has targeted the Yangtze River economic corridor -- the urban industrial zones lining the Yangtze River from Chongqing to Shanghai -- as a key area for investment, development and urbanization in the coming years. Ultimately, the Party hopes to transform the Yangtze's main 2,800-kilometer-long (1,700-mile-long) navigable channel into a central superhighway for goods and people, better connecting China's less developed interior provinces to the coast and to each other by way of water -- a significantly cheaper form of transport than road or railway.
  • The Yangtze River is the key geographic, ecological, cultural and economic feature of China.
  • Stretching 6,418 kilometers from its source in the Tibetan Plateau to its terminus in the East China Sea, the river both divides and connects the country. To its north lie the wheat fields and coal mines of the North China Plain and Loess Plateau, unified China's traditional political cores. Along its banks and to the south are the riverine wetlands and terraced mountain faces that historically supplied China with rice, tea, cotton and timber.
  • The river passes through the highlands of the Yunnan-Guizhou Plateau, the fertile Sichuan Basin, the lakes and marshes of the Middle Yangtze and on to the trade hubs of the Yangtze River Delta. Its watershed touches 19 provinces and is central to the economic life of more people than the populations of Russia and the United States combined.
  • The river's dozens of tributaries reach from Xian, in the southern Shaanxi province, to northern Guangdong -- a complex of capillaries without which China likely would never have coalesced into a single political entity.
  • The Yangtze, even more than the Yellow River, dictates the internal constraints on and strategic imperatives of China's rulers.
  • The Yellow River may be the origin of the Han Chinese civilization, but on its own it is far too weak to support the economic life of a great power.
  • The Yellow River is China's Hudson or Delaware. By contrast, the Yangtze is China's Mississippi -- the river that enabled China to become an empire.
  • Just as the Mississippi splits the United States into east and west, the Yangtze divides China into its two most basic geopolitical units: north and south.
  • This division, more than any other, forms the basis of Chinese political history and provides China's rulers with their most fundamental strategic imperative: unity of the lands above and below the river. Without both north and south, there is no China, only regional powers.
  • The constant cycle between periods of unity (when one power takes the lands north and south of the Yangtze) and disunity (when that power breaks into its constituent regional parts) constitutes Chinese political history.
  • If the Yangtze did not exist, or if its route had veered downward into South and Southeast Asia (like most of the rivers that begin on the Tibetan Plateau), China would be an altogether different and much less significant place.
  • The provinces of central China, which today produce more rice than all of India, would be as barren as Central Asia. Regional commercial and political power bases like the Yangtze River Delta or the Sichuan Basin would never have emerged. The entire flow of Chinese history would be different.
  • Three regions in particular make up the bulk of the Yangtze River Basin
  • the Upper (encompassing present-day Sichuan and Chongqing), Middle (Hubei, Hunan and Jiangxi) and Lower Yangtze (Jiangsu and Zhejiang provinces, as well as Shanghai and parts of Anhui).
  • Geography and time have made these regions into distinct and relatively autonomous units, each with its own history, culture and language. Each region has its own hubs -- Chengdu and Chongqing for the Upper Yangtze; Wuhan, Changsha and Nanchang for the Middle Yangtze; and Suzhou, Hangzhou and Shanghai for the Lower Yangtze.
  • In many ways, China was more deeply united under Mao Zedong than under any emperor since Kangxi in the 18th century. After 1978, the foundations of internal cohesion began to shift and crack as the reform and opening process directed central government attention and investment away from the interior (Mao's power base) and toward the coast.
  • Today, faced with the political and social consequences of that process, the Party is once again working to reintegrate and recentralize -- both in the sense of slowly reconsolidating central government control over key sectors of the economy and, more fundamentally, forcibly shifting the economy's productive core inland.
  • Today, the Yangtze River is by far the world's busiest inland waterway for freight transport.
  • In 2011, more than 1.6 billion metric tons of goods passed through it, representing 40 percent of the nation's total inland waterborne cargo traffic and about 5 percent of all domestic goods transport that year
  • By 2011, the nine provincial capitals that sit along the Yangtze and its major tributaries had a combined gross domestic product of $1 trillion, up from $155 billion in 2001. That gives these cities a total wealth roughly comparable to the gross domestic products of South Korea and Mexico.
  • Investment in further industrial development along the Yangtze River reflects not only an organic transformation in the structure of the Chinese economy but also the intersection of complex political forces
  • First, there is a clear shift in central government policy away from intensive focus on coastal manufacturing at the expense of the interior (the dominant approach throughout the 1990s and early 2000s) and toward better integrating China's diverse regions into a coherent national economy.
  • Thirty years of export-oriented manufacturing centered in a handful of coastal cities generated huge wealth and created hundreds of millions of jobs. But it also created an economy characterized by deep discrepancies in the geographic allocation of resources and by very little internal cohesion.
  • By 2001, the economies of Shanghai and Shenzhen, for instance, were in many ways more connected to those of Tokyo, Seoul and Los Angeles than of the hinterlands of Sichuan and Shaanxi provinces.
  • The foundation of this model was an unending supply of cheap labor. In the 1980s, such workers came primarily from the coast. In the 1990s, when coastal labor pools had been largely exhausted, factories welcomed the influx of migrants from the interior. Soon, labor came to replace coal, iron ore and other raw materials as the interior's most important export to coastal industrial hubs. By the mid-2000s, between 250 million and 300 million migrant workers had fled from provinces like Henan, Anhui and Sichuan (where most people still lived on near-subsistence farming) in search of work in coastal cities.
  • This continual supply of cheap labor from the interior kept Chinese manufacturing cost-competitive throughout the 2000s -- far longer than if Chinese factories had only had the existing coastal labor pool to rely on.
  • But in doing so, it kept wages artificially low and, in turn, systematically undermined the development of a domestic consumer base. This was compounded by the fact that very little of the wealth generated by coastal manufacturing went to the workers.
  • Instead, it went to the state in the form of savings deposits into state-owned banks, revenue from taxes and land sales, or profits for the state-owned and state-affiliated enterprises
  • This dual process -- accumulation of wealth by the state and systematic wage repression in low-end coastal manufacturing -- significantly hampered the development of China's domestic consumer base. But even more troubling was the effect of labor migration, coupled with the relative lack of central government attention to enhancing inland industry throughout the 1990s and early 2000s, on the economies of interior provinces.
  • In trying to urbanize and industrialize the interior, Beijing is going against the grain of Chinese history -- a multimillennia saga of failed attempts to overcome the radical constraints of geography, population, food supply and culture through ambitious central government development programs.
  • Though its efforts thus far have yielded notable successes, such as rapid expansion of the country's railway system and soaring economic growth rates among inland provinces, they have not yet addressed a number of pivotal questions. Before it can move forward, Beijing must address the reform of the hukou (or household registration) system and the continued reliance on centrally allocated investment, as opposed to consumption, as a driver of growth.
  • anonymous on 01 Apr 13
     
    "This is the first piece in a three-part series on the geopolitical implications of China's move to transform the Yangtze River into a major internal economic corridor."
anonymous

Congrats, Millennials. Now It's Your Turn to Be Vilified - 0 views

www.wired.com/...thompson_generation

shared by anonymous on 31 Jan 14 - No Cached
  • But then something funny happened. Gen X punditry died—very suddenly.
  • Check the data. If you plug “Generation X” into Google’s Ngram search engine—which tracks the occurrence of words and phrases in books—you find that the term exploded in use around 1989, climbing steeply throughout the ’90s. But in 2000 it peaked and began declining just as rapidly.
  • Despite constant handwringing over generational shifts, the basic personality metrics of Americans have remained remarkably stable for decades, says Kali Trzesniewski, a scholar of life-span changes.
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  • No, only one thing has changed. Generation X stopped being young.
  • The real pattern here isn’t any big cultural shift. It’s a much more venerable algo­rithm: How middle-aged folks freak out over niggling cultural differences between themselves and twentysomethings.
  • In the ’50s, senators fretted that comic books would “offer courses in murder, mayhem, [and] robbery” for youth. In the ’80s, parents worried that Dungeons and Dragons would “pollute and destroy our chil­dren’s minds”—and that the Walkman would turn them into antisocial drones. This pattern is as old as the hills. As Chaucer noted in The Canterbury Tales, “Youth and elde are often at debaat.”
  • I bring this up because it seems that we Gen Xers are now doing our part to perpetuate the cycle. We write many of today’s endless parade of op-eds snarking at “millennials,” intoning darkly about the perils of Snapchat and sighing nostalgically over the cultural glory of the mixtape.
  • Hold fast, millennials. This current wave of punditry will peak and then start declining six years from now. In 2020, about half of you will have turned 30. You’ll no longer be young—and therefore no longer scary—and today’s rhetoric about your entitlement and narcissism will evaporate. You’ll be in charge. I can’t imagine what you’re going to say about the kids being born today.
  • anonymous on 31 Jan 14
     
    "Back in the early '90s, boomer pundits across America declared Generation X a group of apathetic, coddled, entitled slackers. Born between roughly 1961 and 1981, they lacked any political idealism-"stuck in a terminal cynicism," as The Dallas Morning News observed. Gormless narcissists, their "intimacy and communication skills remain at a 12-year-old level," one expert wrote. Even Matt Groening, creator of The Simpsons-one of Generation X's most influential masterworks-com­plained that "there's no intellectual pride or content to this generation. The domi­nant pop culture is MTV and the Walkman.""
anonymous

United States: The Problem of Aging Infrastructure on Inland Waterways - 0 views

www.stratfor.com/...nfrastructure-inland-waterways

shared by anonymous on 07 Nov 13 - No Cached
  • This is not a new or unknown problem, but measures to address the problem have been limited, and there is no immediate, rapid solution.
  • The United States' inland waterways system -- more than 19,000 kilometers (12,000 miles) of navigable routes maintained by the U.S. Army Corps of Engineers overlaid with expansive farmlands -- has contributed greatly to the country's success. 
  • Most of these locks were constructed in the early 20th century, with an expected lifetime of 50 years. Seventy or 80 years later, many of these locks are still in operation.
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  • Under the current policy, the cost of maintaining this infrastructure falls to the federal government, but funding for major construction and rehabilitation projects on inland waterways is split equally between federally appropriated funds and money from a trust, the Inland Waterways Trust Fund, which currently secures revenue through a 20 cent tax on commercial barge operators' fuel.
  • Unlike the fund for inland waterways, the Harbor Maintenance Trust Fund has a surplus.
  • Because the trust fund is supplied from taxes on traded goods, ports that have higher traffic contribute more to the fund, but these ports are often not the ones that require the most dredging maintenance.
  • A total of $8 billion in projects, including flood prevention and port expansion projects, would be approved under the new House bill, while $12 billion in projects would be eliminated.
  • The U.S. Army Corps of Engineers estimates that it will cost $125 billion or more to revamp the entire inland waterway system. Some estimates show that just maintaining the status quo of unscheduled delays for the more than 200 locks on U.S. inland waterways would require an investment of roughly $13 billion dollars by 2020, averaging out to more than $1.5 billion annually.
  • The agricultural, coal, petroleum and fertilizer industries rely heavily on U.S. rivers to transport goods. Each year, more than 600 million metric tons of cargo, valued at roughly $180 billion, is handled along inland waterways managed by the U.S. Army Corps of Engineers.
  • According to the American Society of Civil Engineers, costs attributed to delays reached $33 billion in 2010 and are projected to rise to $49 billion by 2020.
  •  Since a single 15 barge tow is equivalent to roughly 1,000 trucks or more than 200 rail cars, shifting traffic from rivers to road or rail likely will increase congestion on these transportation routes.
  • Moreover, waterways remain the least expensive mode of long-distance transport for freight, with operating costs of roughly 2 cents per ton per mile compared to under 4 cents per ton per mile for rail and slightly less than 18 cents per ton per mile for truck.
  • However, as U.S. government funding for infrastructure spending has dropped significantly in recent years, increases in user fees, tolls or private funding likely will be needed to fully pay for all current and future necessary improvements to the U.S. inland waterways.
  • anonymous on 07 Nov 13
     
    "The United States continues to face the problem of aging infrastructure on major water-based transport routes. A new waterways bill that is likely to be finalized soon -- the first such legislation since 2007 -- addresses some of the inefficiencies in the current system. However, the larger looming problem of insufficient funding remains. The U.S. inland waterways infrastructure is old, much-needed improvements have been delayed and the total cost of rehabilitation is expected to rise."
anonymous

3 Media Narratives About The Middle East You Should Defend Against - 0 views

thelastpsychiatrist.com/...ia_narratives_about_the_m.html

geopolitics

shared by anonymous on 08 Mar 11 - No Cached
  • Of course the young(er) are looking for social changes and a better life.  And I don't doubt that they at least believe themselves to be earnest.  But the media narrative that it is they who are the force behind the acute changes is both wrong and manipulative.
  • It's manipulative because it is easy. 
  • Also, it's self-aggrandizing.  This is the folks at Time saying, "hey, man, we get this hip generation."  It makes them think they're young and in touch, ("they even figured out how to use the internet for something other than porn!") and I'd bet 10 piastres every guy working at Time thinks the girl in the bottom right would find them interesting.
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  • There are 80M people in Egypt, 10% unemployment and 40% in poverty, as defined as  less than $2/day.  About a third don't know how to read.  None of those people are in the picture.  None of those people want the same things as those in the picture.  None of them will ever listen to those in the picture.
  • "What's wrong with coming out in support?"  Well, go ahead and ask Time: "what's wrong with putting them front and center?"  Because if I was agnostic about unions, and interested in really deciding who I supported in this fight, one look at that picture guarantees I side with whoever they're yelling at.   If you want to know exactly what is wrong with the "political discourse in America today," it's that we are trained to pick a side against something we hate.
  • It's a narrative that existed long before the nights of Saddam, get rid of the dictator and things will get better.  Sometimes it works, sometimes it doesn't, and if your country has oil in it it usually doesn't.
  • It's so easy to get distracted by the Evil Despot that we aren't horrified that Egypt's chaperons of future democracy are the military.   Really?  "They didn't turn on their own people!"  Wow, that's your metric?  Do you think they're just going to step aside when the kids show up to sell off the tanks to pay for education?  
  • The media likes the Mad Despot narrative because, again, it's easy, but, again, it's wrong and manipulative. And it backfires.  When George Bush pulled the Mad Despot card, the media reacted against it-- but that was itself a manipulation, because they wanted the Mad Despot to be Bush himself.  Offered no other choices than "one of these guys is utterly, completely, evil," America was forced to choose who they thought was actually the Mad Despot; and-- tip for the media-- most Americans will think it's the foreign guy.
  • It's fairly obvious why media companies would push the idea that the media itself is responsible for puppies and Reese's Pieces cookies, but when the medium becomes the message, there's no message.
  • anonymous on 08 Mar 11
     
    The Last Psychiatrist
anonymous

Your Commute Is Killing You - 2 views

www.slate.com/...all

layscience

shared by anonymous on 10 Jun 11 - Cached
  • This week, researchers at Umea University in Sweden released a startling finding: Couples in which one partner commutes for longer than 45 minutes are 40 percent likelier to divorce.
  • Commuting is a migraine-inducing life-suck—a mundane task about as pleasurable as assembling flat-pack furniture or getting your license renewed, and you have to do it every day.
  • First, the research proves the most obvious point: We dislike commuting itself, finding it unpleasant and stressful.
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  • That unpleasantness seems to have a spillover effect: making us less happy in general.
  • Long commutes also make us feel lonely.
  • Those stressful hours spent listening to drive-time radio do not merely make us less happy. They also make us less healthy.
  • It is commuting, not the total length of the workday, that matters, he found. Take a worker with a negligible commute and a 12-hour workday and a worker with an hourlong commute and a 10-hour workday. The former will have healthier habits than the latter, even though total time spent on the relatively stressful, unpleasant tasks is equal.
  • overall, people with long commutes are fatter, and national increases in commuting time are posited as one contributor to the obesity epidemic.
  • So, in summary: We hate commuting. It correlates with an increased risk of obesity, divorce, neck pain, stress, worry, and sleeplessness. It makes us eat worse and exercise less. Yet, we keep on doing it.
  • Why do people suffer through it? The answer mostly lies in a phrase forced on us by real-estate agents: "Drive until you qualify."
  • But wait: Isn't the big house and the time to listen to the whole Dylan catalog worth something as well? Sure, researchers say, but not enough when it comes to the elusive metric of happiness. Given the choice between that cramped apartment and the big house, we focus on the tangible gains offered by the latter. We can see that extra bedroom. We want that extra bathtub. But we do not often use them. And we forget that additional time in the car is a constant, persistent, daily burden—if a relatively invisible one.
  • anonymous on 10 Jun 11
     
    "Long commutes cause obesity, neck pain, loneliness, divorce, stress, and insomnia." - By Annie Lowrey - Slate Magazine
anonymous

A Brief History of the Corporation: 1600 to 2100 - 1 views

www.ribbonfarm.com/...f-the-corporation-1600-to-2100

economics predictions longnow

shared by anonymous on 23 Jun 11 - Cached
  • In its 400+ year history, the corporation has achieved extraordinary things, cutting around-the-world travel time from years to less than a day, putting a computer on every desk, a toilet in every home (nearly) and a cellphone within reach of every human.  It even put a man on the Moon and kinda-sorta cured AIDS.
  • The Age of Corporations is coming to an end. The traditional corporation won’t vanish, but it will cease to be the center of gravity of economic life in another generation or two.  They will live on as religious institutions do today, as weakened ghosts of more vital institutions from centuries ago.
  • this post is mostly woven around ideas drawn from five books that provide appropriate fuel for this business-first frame. I will be citing, quoting and otherwise indirectly using these books over several future posts
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  • For a long time, I was misled by the fact that 90% of the available books frame globalization and the emergence of modernity in terms of the nation-state as the fundamental unit of analysis, with politics as the fundamental area of human activity that shapes things.
  • But the more I’ve thought about it, the more I’ve been pulled towards a business-first perspective on modernity and globalization.
  • The human world, like physics, can be reduced to four fundamental forces: culture, politics, war and business.
  • Culture is the most mysterious, illegible and powerful force.
  • But one quality makes gravity dominate at large space-time scales: gravity affects all masses and is always attractive, never repulsive.  So despite its weakness, it dominates things at sufficiently large scales. I don’t want to stretch the metaphor too far, but something similar holds true of business.
  • On the scale of days or weeks, culture, politics and war matter a lot more in shaping our daily lives.
  • Business though, as an expression of the force of unidirectional technological evolution, has a destabilizing unidirectional effect. It is technology, acting through business and Schumpeterian creative-destruction, that drives monotonic, historicist change, for good or bad. Business is the locus where the non-human force of technological change sneaks into the human sphere.
  • Culture is suspicious of technology. Politics is mostly indifferent to and above it. War-making uses it, but maintains an arms-length separation.
  • Business? It gets into bed with it. It is sort of vaguely plausible that you could switch artists, politicians and generals around with their peers from another age and still expect them to function. But there is no meaningful way for a businessman from (say) 2000 BC to comprehend what Mark Zuckerberg does, let alone take over for him. Too much magical technological water has flowed under the bridge.
  • It is business that creates the world of magic, not technology itself. And the story of business in the last 400 years is the story of the corporate form.
  • There are some who treat corporate forms as yet another technology (in this case a technology of people-management), but despite the trappings of scientific foundations (usually in psychology) and engineering synthesis (we speak of organizational “design”), the corporate form is not a technology.  It is the consequence of a social contract like the one that anchors nationhood. It is a codified bundle of quasi-religious beliefs externalized into an animate form that seeks to preserve itself like any other living creature.
  • What was new was the idea of a publicly traded joint-stock corporation, an entity with rights similar to those of states and individuals, with limited liability and significant autonomy
  • two important points about this evolution of corporations.
  • The first point is that the corporate form was born in the era of Mercantilism, the economic ideology that (zero-sum) control of land is the foundation of all economic power.
  • In politics, Mercantilism led to balance-of-power models.
  • In business, once the Age of Exploration (the 16th century) opened up the world, it led to mercantilist corporations focused on trade
  • The forces of radical technological change — the Industrial Revolution — did not seriously kick until after nearly 200 years of corporate evolution (1600-1800) in a mercantilist mold.
  • Smith was both the prophet of doom for the Mercantilist corporation, and the herald of what came to replace it: the Scumpeterian corporation.
  • The corporate form therefore spent almost 200 years — nearly half of its life to date — being shaped by Mercantilist thinking, a fundamentally zero-sum way of viewing the world.
  • It was not until after the American Civil War and the Gilded Age that businesses fundamentally reorganized around (as we will see) time instead of space, which led, as we will see, to a central role for ideas and therefore the innovation function.
  • The Black Hills Gold Rush of the 1870s, the focus of the Deadwood saga, was in a way the last hurrah of Mercantilist thinking. William Randolph Hearst, the son of gold mining mogul George Hearst who took over Deadwood in the 1870s, made his name with newspapers. The baton had formally been passed from mercantilists to schumpeterians.
    • anonymous
      anonymous on 23 Jun 11
       
      So, Mercantilism was about colonizing space. Corporatism is about colonizing time. This is a pretty useful (though arguably too-reductionist) way to latch on to the underpinning of later thoughts.
  • This divide between the two models can be placed at around 1800, the nominal start date of the Industrial Revolution, as the ideas of Renaissance Science met the energy of coal to create a cocktail that would allow corporations to colonize time.
  • The second thing to understand about the evolution of the corporation is that the apogee of power did not coincide with the apogee of reach.
  • for America, corporations employed less than 20% of the population in 1780, and over 80% in 1980, and have been declining since
  • Certainly corporations today seem far more powerful than those of the 1700s, but the point is that the form is much weaker today, even though it has organized more of our lives. This is roughly the same as the distinction between fertility of women and population growth: the peak in fertility (a per-capita number) and peak in population growth rates (an aggregate) behave differently.
  • a useful 3-phase model of the history of the corporation: the Mercantilist/Smithian era from 1600-1800, the Industrial/Schumpeterian era from 1800 – 2000 and finally, the era we are entering, which I will dub the Information/Coasean era
    • anonymous
      anonymous on 23 Jun 11
       
      I think it would be useful to map these eras against the backdrop of my previously established Generational timeline (as well as the StratFor 50-year cycle breakdown) in order to see if there are any self-supporting model elements.
  • By a happy accident, there is a major economist whose ideas help fingerprint the economic contours of our world: Ronald Coase.
  • To a large extent, the history of the first 200 years of corporate evolution is the history of the East India Company. And despite its name and nation of origin, to think of it as a corporation that helped Britain rule India is to entirely misunderstand the nature of the beast.
  • Two images hint at its actual globe-straddling, 10x-Walmart influence: the image of the Boston Tea Partiers dumping crates of tea into the sea during the American struggle for independence, and the image of smoky opium dens in China. One image symbolizes the rise of a new empire. The other marks the decline of an old one.
  • At a broader level, the EIC managed to balance an unbalanced trade equation between Europe and Asia whose solution had eluded even the Roman empire.
  • For this scheme to work, three foreground things and one background thing had to happen: the corporation had to effectively take over Bengal (and eventually all of India), Hong Kong (and eventually, all of China, indirectly) and England.
  • The background development was simpler. England had to take over the oceans and ensure the safe operations of the EIC.
  • eventually, as the threat from the Dutch was tamed, it became clear that the company actually had more firepower at its disposal than most of the nation-states it was dealing with. The realization led to the first big domino falling, in the corporate colonization of India, at the battle of Plassey.
  • The EIC was the original too-big-to-fail corporation. The EIC was the beneficiary of the original Big Bailout. Before there was TARP, there was the Tea Act of 1773 and the Pitt India Act of 1783. The former was a failed attempt to rein in the EIC, which cost Britain the American Colonies.  The latter created the British Raj as Britain doubled down in the east to recover from its losses in the west. An invisible thread connects the histories of India and America at this point. Lord Cornwallis, the loser at the Siege of Yorktown in 1781 during the revolutionary war, became the second Governor General of India in 1786.
  • But these events were set in motion over 30 years earlier, in the 1750s. There was no need for backroom subterfuge.  It was all out in the open because the corporation was such a new beast, nobody really understood the dangers it represented.
  • there was nothing preventing its officers like Clive from simultaneously holding political appointments that legitimized conflicts of interest. If you thought it was bad enough that Dick Cheney used to work for Halliburton before he took office, imagine if he’d worked there while in office, with legitimate authority to use his government power to favor his corporate employer and make as much money on the side as he wanted, and call in the Army and Navy to enforce his will. That picture gives you an idea of the position Robert Clive found himself in, in 1757.
  • The East India bubble was a turning point.
  • Over the next 70 years, political, military and economic power were gradually separated and modern checks and balances against corporate excess came into being.
  • It is not too much of a stretch to say that for at least a century and a half, England’s foreign policy was a dance in Europe in service of the EIC’s needs on the oceans.
  • Mahan’s book is the essential lens you need to understand the peculiar military conditions in the 17th and 18th centuries that made the birth of the corporation possible.)
  • The 16th century makes a vague sort of sense as the “Age of Exploration,” but it really makes a lot more sense as the startup/first-mover/early-adopter phase of the corporate mercantilism. The period was dominated by the daring pioneer spirit of Spain and Portugal, which together served as the Silicon Valley of Mercantilism. But the maritime business operations of Spain and Portugal turned out to be the MySpace and Friendster of Mercantilism: pioneers who could not capitalize on their early lead.
  • Conventionally, it is understood that the British and the Dutch were the ones who truly took over. But in reality, it was two corporations that took over: the EIC and the VOC (the Dutch East India Company,  Vereenigde Oost-Indische Compagnie, founded one year after the EIC) the Facebook and LinkedIn of Mercantile economics respectively. Both were fundamentally more independent of the nation states that had given birth to them than any business entities in history. The EIC more so than the VOC.  Both eventually became complex multi-national beasts.
  • arguably, the doings of the EIC and VOC on the water were more important than the pageantry on land.  Today the invisible web of container shipping serves as the bloodstream of the world. Its foundations were laid by the EIC.
    • anonymous
      anonymous on 23 Jun 11
       
      There was an excellent episode of the original Connections series that pointed this out, specifically focusing on the Dutch boats and the direct line to container ships and 747 cargo planes.
  • A new idea began to take its place in the early 19th century: the Schumpeterian corporation that controlled, not trade routes, but time. It added the second of the two essential Druckerian functions to the corporation: innovation.
  • I call this the “most misleading table in the world.”
  • corporations and nations may have been running on Mercantilist logic, but the undercurrent of Schumpeterian growth was taking off in Europe as early as 1500 in the less organized sectors like agriculture. It was only formally recognized and tamed in the early 1800s, but the technology genie had escaped.
  • The action shifted to two huge wildcards in world affairs of the 1800s: the newly-born nation of America and the awakening giant in the east, Russia. Per capita productivity is about efficient use of human time. But time, unlike space, is not a collective and objective dimension of human experience. It is a private and subjective one. Two people cannot own the same piece of land, but they can own the same piece of time.  To own space, you control it by force of arms. To own time is to own attention. To own attention, it must first be freed up, one individual stream of consciousness at a time.
  • The Schumpeterian corporation was about colonizing individual minds. Ideas powered by essentially limitless fossil-fuel energy allowed it to actually pull it off.
  • it is probably reaosonably safe to treat the story of Schumpeterian growth as an essentially American story.
  • In many ways the railroads solved a vastly speeded up version of the problem solved by the EIC: complex coordination across a large area.  Unlike the EIC though, the railroads were built around the telegraph, rather than postal mail, as the communication system. The difference was like the difference between the nervous systems of invertebrates and vertebrates.
  • If the ship sailing the Indian Ocean ferrying tea, textiles, opium and spices was the star of the mercantilist era, the steam engine and steamboat opening up America were the stars of the Schumpeterian era.
  • The primary effect of steam was not that it helped colonize a new land, but that it started the colonization of time. First, social time was colonized. The anarchy of time zones across the vast expanse of America was first tamed by the railroads for the narrow purpose of maintaining train schedules, but ultimately, the tools that served to coordinate train schedules: the mechanical clock and time zones, served to colonize human minds.  An exhibit I saw recently at the Union Pacific Railroad Museum in Omaha clearly illustrates this crucial fragment of history:
  • For all its sophistication, the technology of sail was mostly a very-refined craft, not an engineering discipline based on science.
  • Steam power though was a scientific and engineering invention.
  • Scientific principles about gases, heat, thermodynamics and energy applied to practical ends, resulting in new artifacts. The disempowerment of craftsmen would continue through the Schumpeterian age, until Fredrick Taylor found ways to completely strip mine all craft out of the minds of craftsmen, and put it into machines and the minds of managers.
  • It sounds awful when I put it that way, and it was, in human terms, but there is no denying that the process was mostly inevitable and that the result was vastly better products.
  • The Schumpeterian corporation did to business what the doctrine of Blitzkrieg would do to warfare in 1939: move humans at the speed of technology instead of moving technology at the speed of humans.
  • Blitzeconomics allowed the global economy to roar ahead at 8% annual growth rates instead of the theoretical 0% average across the world for Mercantilist zero-sum economics. “Progress” had begun.
  • Two phrases were invented to name the phenomenon: productivity meant shrinking autonomously-owned time. Increased standard of living through time-saving devices became code for the fact that the “freed up” time through “labor saving” devices was actually the de facto property of corporations. It was a Faustian bargain.
  • Many people misunderstood the fundamental nature of Schumpeterian growth as being fueled by ideas rather than time. Ideas fueled by energy can free up time which can then partly be used to create more ideas to free up more time. It is a positive feedback cycle,  but with a limit. The fundamental scarce resource is time. There is only one Earth worth of space to colonize. Only one fossil-fuel store of energy to dig out. Only 24 hours per person per day to turn into capitive attention.
  • Then the Internet happened, and we discovered the ability to mine time as fast as it could be discovered in hidden pockets of attention. And we discovered limits. And suddenly a new peak started to loom: Peak Attention.
  • There is certainly plenty of energy all around (the Sun and the wind, to name two sources), but oil represents a particularly high-value kind. Attention behaves the same way.
  • Take an average housewife, the target of much time mining early in the 20th century. It was clear where her attention was directed. Laundry, cooking, walking to the well for water, cleaning, were all obvious attention sinks. Washing machines, kitchen appliances, plumbing and vacuum cleaners helped free up a lot of that attention, which was then immediately directed (as corporate-captive attention) to magazines and television.
  • The point isn’t that we are running out of attention. We are running out of the equivalent of oil: high-energy-concentration pockets of easily mined fuel.
  • There is a lot more money to be made in replacing hand-washing time with washing-machine plus magazine time, than there is to be found in replacing one hour of TV with a different hour of TV.
  • . To get to Clay Shirky’s hypothetical notion of cognitive surplus, we need Alternative Attention sources. To put it in terms of per-capita productivity gains, we hit a plateau.
  • When Asia hits Peak Attention (America is already past it, I believe), absolute size, rather than big productivity differentials, will again define the game, and the center of gravity of economic activity will shift to Asia.
  • Once again, it is the oceans, rather than land, that will become the theater for the next act of the human drama. While American lifestyle designers are fleeing to Bali, much bigger things are afoot in the region. And when that shift happens, the Schumpeterian corporation, the oil rig of human attention, will start to decline at an accelerating rate. Lifestyle businesses and other oddball contraptions — the solar panels and wind farms of attention economics — will start to take over.
  • It will be the dawn of the age of Coasean growth.
  • Coasean growth is not measured in terms of national GDP growth. That’s a Smithian/Mercantilist measure of growth. It is also not measured in terms of 8% returns on the global stock market.  That is a Schumpeterian growth measure. For that model of growth to continue would be a case of civilizational cancer (“growth for the sake of growth is the ideology of the cancer cell” as Edward Abbey put it).
  • Coasean growth is fundamentally not measured in aggregate terms at all. It is measured in individual terms. An individual’s income and productivity may both actually decline, with net growth in a Coasean sense.
  • How do we measure Coasean growth? I have no idea. I am open to suggestions. All I know is that the metric will need to be hyper-personalized and relative to individuals rather than countries, corporations or the global economy. There will be a meaningful notion of Venkat’s rate of Coasean growth, but no equivalent for larger entities.
  • The fundamental scarce resource that Coasean growth discovers and colonizes is neither space, nor time. It is perspective.
  • anonymous on 23 Jun 11
     
    This is a lay friendly, amateur, mental exploration of the Corporation. It's also utterly absorbing and comes with the usual collection of caveats that we amateurs are accustomed to rattling off when we dunk ourselves into issues much bigger than ourselves. Thanks to BoingBoing, via Futurismic, for the pointer: http://www.boingboing.net/2011/06/23/a-brief-history-of-t.html http://futurismic.com/2011/06/22/a-brief-history-of-the-corporation-1600-to-2100/ "The year was 1772, exactly 239 years ago today, the apogee of power for the corporation as a business construct. The company was the British East India company (EIC). The bubble that burst was the East India Bubble. Between the founding of the EIC in 1600 and the post-subprime world of 2011, the idea of the corporation was born, matured, over-extended, reined-in, refined, patched, updated, over-extended again, propped-up and finally widely declared to be obsolete. Between 2011 and 2100, it will decline - hopefully gracefully - into a well-behaved retiree on the economic scene."
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