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The history of inequality (by Peter Turchin) - 0 views

  • Today, the top one per cent of incomes in the United States accounts for one fifth of US earnings. The top one per cent of fortunes holds two-fifths of the total wealth.
  • As the Congressional Budget Office concluded in 2011: ‘the precise reasons for the rapid growth in income at the top are not well understood’.
  • In his book Wealth and Democracy (2002), Kevin Phillips came up with a useful way of thinking about the changing patterns of wealth inequality in the US.
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  • He looked at the net wealth of the nation’s median household and compared it with the size of the largest fortune in the US. The ratio of the two figures provided a rough measure of wealth inequality, and that’s what he tracked, touching down every decade or so from the turn of the 19th century all the way to the present.
  • We found repeated back-and-forth swings in demographic, economic, social, and political structures
  • From 1800 to the 1920s, inequality increased more than a hundredfold.
  • Then came the reversal: from the 1920s to 1980, it shrank back to levels not seen since the mid-19th century.
  • From 1980 to the present, the wealth gap has been on another steep, if erratic, rise. Commentators have called the period from 1920s to 1970s the ‘great compression’. The past 30 years are known as the ‘great divergence’.
    • anonymous
       
      I'd like to pull this citation and superimpose another period-chart onto my timeline.
  • when looked at over a long period, the development of wealth inequality in the US appears to be cyclical. And if it’s cyclical, we can predict what happens next.
  • Does observing just one and a half cycles really show that there is a regular pattern in the dynamics of inequality? No, by itself it doesn’t.
  • In our book Secular Cycles (2009), Sergey Nefedov and I applied the Phillips approach to England, France and Russia throughout both the medieval and early modern periods, and also to ancient Rome.
  • And the cycles of inequality were an integral part of the overall motion.
  • Cycles in the real world are chaotic, because complex systems such as human societies have many parts that are constantly moving and influencing each other.
  • Understanding (and perhaps even forecasting) such trend-reversals is at the core of the new discipline of cliodynamics, which looks at history through the lens of mathematical modelling.
    • anonymous
       
      Cliodynamics - Another thing to learn a bit more about.
  • First, we need to think about jobs.
  • One of the most important forces affecting the labour supply in the US has been immigration
  • it turns out that immigration, as measured by the proportion of the population who were born abroad, has changed in a cyclical manner just like inequality.
  • Another reason why the labour supply in the US went up in the 19th century is, not to put too fine a point on it, sex.
  • This connection between the oversupply of labour and plummeting living standards for the poor is one of the more robust generalisations in history.
  • The population of England doubled between 1150 and 1300.
  • causing the population of London to balloon from 20,000 to 80,000.
  • fourfold increase in food prices and a halving of real wages.
  • when a series of horrible epidemics, starting with the Black Death of 1348, carried away more than half of the population, the same dynamic ran in reverse.
  • The tug of war between the top and typical incomes doesn’t have to be a zero-sum game, but in practice it often is
  • Much the same pattern can be seen during the secular cycle of the Roman Principate.
  • Naturally, the conditions affecting the labour supply were different in the second half of the 20th century in the US. An important new element was globalisation
  • an oversupply of labour tends to depress wages for the poorer section of the population. And just as in Roman Egypt, the poor in the US today eat more energy-dense foods — bread, pasta, and potatoes — while the wealthy eat more fruit and drink wine.
  • Falling wages isn’t the only reason why labour oversupply leads to inequality. As the slice of the economic pie going to employees diminishes, the share going to employers goes up.
  • And so in 13th-century England, as the overall population doubles, we find landowners charging peasants higher rents and paying less in wages: the immiseration of the general populace translates into a Golden Age for the aristocrats.
  • the number of knights and esquires tripled between 1200 and 1300.
  • Only the gentry drank wine, and around 1300, England imported 20,000 tuns or casks of it from France per year. By 1460, this declined to only 5,000.
  • In the US between around 1870 and 1900, there was another Golden Age for the elites, appropriately called the Gilded Age.
  • And just like in 13th-century England, the total number of the wealthy was shooting up. Between 1825 and 1900, the number of millionaires (in constant 1900 dollars) went from 2.5 per million of the population to 19 per million.
  • In our current cycle, the proportion of decamillionaires (those whose net worth exceeds 10 million in 1995 dollars) grew tenfold between 1992 and 2007 — from 0.04 to 0.4 per cent of the US population.
  • On the face of it, this is a wonderful testament to merit-based upward mobility. But there are side effects. Don’t forget that most people are stuck with stagnant or falling real wages. Upward mobility for a few hollows out the middle class and causes the social pyramid to become top-heavy.
  • As the ranks of the wealthy swell, so too do the numbers of wealthy aspirants for the finite supply of political positions.
  • The civil wars of the first century BC, fuelled by a surplus of politically ambitious aristocrats, ultimately caused the fall of the Republic and the establishment of the Empire.
  • So far I have been talking about the elites as if they are all the same. But they aren’t: the differences within the wealthiest one per cent are almost as stark as the difference between the top one per cent and the remaining 99.
  • very intense status rivalry
  • Archaeology confirms a genuine and dramatic shift towards luxury.
  • Social Darwinism took off during the original Gilded Age, and Ayn Rand (who argued that altruism is evil) has grown astonishingly popular during what we might call our Second Gilded Age.
  • Twilight of the Elites (2012): ‘defenders of the status quo invoke a kind of neo-Calvinist logic by saying that those at the top, by virtue of their placement there, must be the most deserving’. By the same reasoning, those at the bottom are not deserving. As such social norms spread, it becomes increasingly easy for CEOs to justify giving themselves huge bonuses while cutting the wages of workers.
  • Labour markets are especially sensitive to cultural norms about what is fair compensation, so prevailing theories about inequality have practical consequences.
  • the US political system is much more attuned to the wishes of the rich than to the aspirations of the poor.
  • Inverse relationship between well-being and inequality in American history. The peaks and valleys of inequality (in purple) represent the ratio of the largest fortunes to the median wealth of households (the Phillips curve). The blue-shaded curve combines four measures of well-being: economic (the fraction of economic growth that is paid to workers as wages), health (life expectancy and the average height of native-born population), and social optimism (the average age of first marriage, with early marriages indicating social optimism and delayed marriages indicating social pessimism).
  • In some historical periods it worked primarily for the benefit of the wealthy. In others, it pursued policies that benefited the society as a whole. Take the minimum wage, which grew during the Great Compression era and declined (in real terms) after 1980.
  • The top marginal tax rate was 68 per cent or higher before 1980; by 1988 it declined to 28 per cent.
  • In one era, government policy systematically favoured the majority, while in another it favoured the narrow interests of the wealthy elites. This inconsistency calls for explanation.
  • How, though, can we account for the much more broadly inclusive policies of the Great Compression era? And what caused the reversal that ended the Gilded Age and ushered in the Great Compression? Or the second switch, which took place around 1980?
  • Unequal societies generally turn a corner once they have passed through a long spell of political instability.
  • We see this shift in the social mood repeatedly throughout history — towards the end of the Roman civil wars (first century BC), following the English Wars of the Roses (1455-85), and after the Fronde (1648-53), the final great outbreak of violence that had been convulsing France since the Wars of Religion began in the late 16th century.
  • Put simply, it is fear of revolution that restores equality. And my analysis of US history in a forthcoming book suggests that this is precisely what happened in the US around 1920.
  • The worst incident in US labour history was the West Virginia Mine War of 1920—21, culminating in the Battle of Blair Mountain.
  • Although it started as a workers’ dispute, the Mine War eventually turned into the largest armed insurrection that the US has ever seen, the Civil War excepted. Between 10,000 and 15,000 miners armed with rifles battled against thousands of strikebreakers and sheriff deputies.
  • Quantitative data indicate that this period was the most violent in US history, second only to the Civil War. It was much, much worse than the 1960s.
  • The US, in short, was in a revolutionary situation, and many among the political and business elites realised it.
  • The US elites entered into an unwritten compact with the working classes. This implicit contract included the promise that the fruits of economic growth would be distributed more equitably among both workers and owners. In return, the fundamentals of the political-economic system would not be challenged (no revolution).
  • The deal allowed the lower and upper classes to co-operate in solving the challenges facing the American Republic — overcoming the Great Depression, winning the Second World War, and countering the Soviet threat during the Cold War.
  • while making such ‘categorical inequalities’ worse, the compact led to a dramatic reduction in overall economic inequality.
  • The co-operating group was mainly native-born white Protestants. African-Americans, Jews, Catholics and foreigners were excluded or heavily discriminated against.
  • When Barry Goldwater campaigned on a pro-business, anti-union and anti-big government platform in the 1964 presidential elections, he couldn’t win any lasting support from the corporate community. The conservatives had to wait another 16 years for their triumph.
  • But by the late 1970s, a new generation of political and business leaders had come to power. To them the revolutionary situation of 1919-21 was just history. In this they were similar to the French aristocrats on the eve of the French Revolution, who did not see that their actions could bring down the Ancien Régime — the last great social breakdown, the Fronde, being so far in the past.
    • anonymous
       
      This heavily mirrors many aspects of Strauss & Howe's observations. Namely that generational cohorts roughly conform to archetypes precisely *because* memory of prior situations moves from accessible-memory (in those who have it) to history/myth once those who remember it have died.
  • It is no coincidence that the life of Communism (from the October Revolution in Russia in 1917 to the fall of the Berlin Wall in 1989) coincides almost perfectly with the Great Compression era.
  • when Communism collapsed, its significance was seriously misread. It’s true that the Soviet economy could not compete with a system based on free markets plus policies and norms that promoted equity.
  • Yet the fall of the Soviet Union was interpreted as a vindication of free markets, period. The triumphalist, heady atmosphere of the 1990s was highly conducive to the spread of Ayn Randism and other individualist ideologies. The unwritten social contract that had emerged during the New Deal and braved the challenges of the Second World War had faded from memory.
  • all of these trends are part of a complex and interlocking system. I don’t just mean that everything affects everything else; that would be vacuous.
  • Rather, that cliodynamic theory can tell us specifically how demographic, economic and cultural variables relate to one another, and how their interactions generate social change.
  • Cliodynamics also explains why historical reversals in such diverse areas as economics and culture happen at roughly similar times. The theory of secular cycles was developed using data from historical societies, but it looks like it can provide answers to questions about our own society.
  • Three years ago I published a short article in the science journal Nature. I pointed out that several leading indicators of political instability look set to peak around 2020.
    • anonymous
       
      2020-2025 is a date-range that continues to pop up in my forecasting readings - and from quite a variety of sources.
  • In other words, we are rapidly approaching a historical cusp, at which the US will be particularly vulnerable to violent upheaval. This prediction is not a ‘prophecy’. I don’t believe that disaster is pre-ordained, no matter what we do. On the contrary, if we understand the causes, we have a chance to prevent it from happening. But the first thing we will have to do is reverse the trend of ever-growing inequality.
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    "After thousands of scholarly and popular articles on the topic, one might think we would have a pretty good idea why the richest people in the US are pulling away from the rest. But it seems we don't. As the Congressional Budget Office concluded in 2011: 'the precise reasons for the rapid growth in income at the top are not well understood'. Some commentators point to economic factors, some to politics, and others again to culture. Yet obviously enough, all these factors must interact in complex ways. What is slightly less obvious is how a very long historical perspective can help us to see the whole mechanism."
anonymous

Twitter, Facebook, and Social Activism - 0 views

  • he kind of activism associated with social media isn’t like this at all. The platforms of social media are built around weak ties.
  • There is strength in weak ties, as the sociologist Mark Granovetter has observed. Our acquaintances—not our friends—are our greatest source of new ideas and information. The Internet lets us exploit the power of these kinds of distant connections with marvellous efficiency. It’s terrific at the diffusion of innovation, interdisciplinary collaboration, seamlessly matching up buyers and sellers, and the logistical functions of the dating world. But weak ties seldom lead to high-risk activism.
  • But how did the campaign get so many people to sign up? By not asking too much of them. That’s the only way you can get someone you don’t really know to do something on your behalf.
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  • The evangelists of social media don’t understand this distinction; they seem to believe that a Facebook friend is the same as a real friend and that signing up for a donor registry in Silicon Valley today is activism in the same sense as sitting at a segregated lunch counter in Greensboro in 1960.
  • “Social networks are particularly effective at increasing motivation,” Aaker and Smith write. But that’s not true. Social networks are effective at increasing participation—by lessening the level of motivation that participation requires.
  • This is the second crucial distinction between traditional activism and its online variant: social media are not about this kind of hierarchical organization.
  • There are many things, though, that networks don’t do well. Car companies sensibly use a network to organize their hundreds of suppliers, but not to design their cars.
  • No one believes that the articulation of a coherent design philosophy is best handled by a sprawling, leaderless organizational system. Because networks don’t have a centralized leadership structure and clear lines of authority, they have real difficulty reaching consensus and setting goals.
  • Similarly, Al Qaeda was most dangerous when it was a unified hierarchy. Now that it has dissipated into a network, it has proved far less effective.
  • The things that King needed in Birmingham—discipline and strategy—were things that online social media cannot provide.
  • Shirky considers this model of activism an upgrade. But it is simply a form of organizing which favors the weak-tie connections that give us access to information over the strong-tie connections that help us persevere in the face of danger
  • It shifts our energies from organizations that promote strategic and disciplined activity and toward those which promote resilience and adaptability. It makes it easier for activists to express themselves, and harder for that expression to have any impact. The instruments of social media are well suited to making the existing social order more efficient. They are not a natural enemy of the status quo. If you are of the opinion that all the world needs is a little buffing around the edges, this should not trouble you. But if you think that there are still lunch counters out there that need integrating it ought to give you pause.
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    Why the revolution will not be tweeted. "There are many things, though, that networks don't do well. Car companies sensibly use a network to organize their hundreds of suppliers, but not to design their cars. No one believes that the articulation of a coherent design philosophy is best handled by a sprawling, leaderless organizational system. Because networks don't have a centralized leadership structure and clear lines of authority, they have real difficulty reaching consensus and setting goals." By Malcolm Gladwell at the New Yorker on October 4, 2010.
anonymous

Thirty More Years of Hell - 1 views

  • A Pew poll from a few weeks back asked Americans how they felt about capitalism versus socialism. The results said all you need to know about how much longer we’re going to have to wade through this misery. You guessed it: until the Boomers finally croak.
  • For maybe the first time in modern history, we now have a generation that actually has warmer feelings about socialism than it does capitalism: 49% to 46%.
  • And a few days later, amid a multi-billion dollar war on public sector workers, another poll was released demonstrating that a whopping 69% of Millennials think teachers are underpaid (compared to 56% for Americans of all ages).
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  • I first heard the “s”-word from by my sixth grade history teacher—this was in the early days of Yeltsin. She said socialism is when you have to wait in line for hours just for a Happy Meal.
  • Read the fine print: it’s 5% of wages, income from “investments” is excluded. Tax the poor wage-slave, spare the wealthy rentier. Americans still can’t see the play even with Buffett rubbing his secretary’s tax return in our faces.
  • And it’s a servitude from which we can never escape. Forget bankruptcy. Default on a student loan and the government will garnish your wages until they get it all back, plus interest. They can even go after your social security money, off limits for all other debts.
  • Mike Konczal sees this as just another sign of a “submerged state”—the unholy fertilizer that keeps the American libertarian discourse in full bloom. None of the “welfare,” but all of the “state.”
  • “After the Great Society program in the 1960s,” says Leo Panitch, “left-wing Democrats, rather than calling for more public housing to rebuild America’s cities instead called for the banks to lend money to poor black communities…one of the effects of winning those demands was a channeling of those communities more deeply into the structures of finance, the most dynamic sector of neoliberal capitalism.”
  • While a liberal looks upon the New Deal and Great Society generation as a pantheon of benevolent patriarchs, I see a bunch of technocrats who slapped together a crude simulacrum of social democracy and called it “free-enterprise.”
  • Unlike the nations of Western Europe, American workers failed to get a good deal of the social democratic compact written into law, which means it was all the easier to dismantle over here.
  • There are the wars, of course—now pretty much the only way for a good many of us to get a debt-free education.
  • Then there’s the ever-popular Drug War, always trolling for some fresh blood. The Millennials are, after all, the least white generation in U.S. history, making us perfect fodder for the country’s ongoing race war.
  • As The Wire’s David Simon has pointed out, it was Clinton—the first Boomer president—that passed some of the most draconian “anti-crime” laws. Even business in the for-profit juvenile prisons sector is a-boomin’. Same goes for our expanding network of privatized immigration detention centers—a direct beneficiary of the Tea Party campaign for a brutal crackdown on “illegals.”
  • Much of the Patriot Act itself was comprised of legislation creeping around the halls of powers well before 9/11, much of it written with the burgeoning “anti-globalization” movement
  • The fact is that being arrested is pretty much a rite of passage today—or the end-of-the-line for your hopes and dreams if you happen to be a darker shade of pale.
  • Which is why I love the Tea Party so much. They don’t dick around about any of this. It’s a full-scale generational war they’re after.
  • The Ryan Budget—and the GOP campaign around it—divides the American populace into “those who are 55 or older now, and those who are younger.” Meaning Boomers will receive Medicare and Social Security checks unchanged, whereas Millennials get the axe—despite the fact that many of us have been paying into these programs for the past 15 years. Let the record show that it was they who fired the first shot.
  • All of the hippies who skulked off into the world of children’s programming to ride out the counterrevolution have cursed us with both our potential salvation (respect for the commons) and our ultimate weakness (pacifist nonsense).
  • But mostly our decency stems from the fact that we’ve all been muzzled and defanged by student debt, slave wages and mass unemployment. Unlike our parents, we’ll never even get the chance to gobble up our own children and leave them with the tab.
  • Which is why, psychologically, this Great Depression of ours can never hurt us like it hurts them. I see it all the time: the unemployed Boomer thinks himself a loser. He’s spent his life watching his peers accumulate wealth and power. Now he feels like the rug has been pulled from under him. Something has gone terribly wrong. When he files for food-stamps, he feels exactly what the Ruling Class wants him to feel: shame and personal failing.
  • Whereas a Millennial shrugs and swipes the SNAP card at the farmer’s market for a quart of fresh cider and a pomegranate muffin. Why should she feel guilty?
  • We Millennials have all the same ludicrous delusions of grandeur as our parents, but now, we’re ready to shuck capitalist gospel out the window. The Boomers call us spoiled, and ask us to do more with less, telling us to tamper our dreams. But the best thing we Americans have going for us is our entitlement, sans the free-market faith.
  • Way back in 1892, Friedrich Engels knew that success was the real curse of the USA. And that a powerful, anti-capitalist left could never take off in this country until the game stopped paying out: “Only when there is a generation of native-born workers that cannot expect anything from speculation any more will we have a solid foothold in America.” Sound familiar? That’s what Occupy is for most of us—a guttural roar that capitalism will not do.
  • The Boomers are right that it all smacks of entitlement. We are entitled. The world, and this country in particular, is awash in capital. With the billions floating in and out of this city every day, it’s amazing that you can walk around Manhattan and not end up with at least a grand worth of cash sifting around in your shoes like beach sand. The big lie is that the coffers are empty and budgets must be balanced. What a fucking joke. American workers have spent hundreds of years building this country and amassing this wealth, and it’s about time we claimed the vast majority of it.
  • Conservative apostate David Frum recently characterized the contemporary GOP’s platform as “a going-out-of-business sale for the Baby Boomer generation.” Which is pretty much the Democrats’ platform too. They just have better table manners.
  • Boomers know what they’ve wrought. Climate change? Don’t believe the polls. They know it’s happening. Yeah, if you confront one of them, he might put up a denialist front for a couple of minutes. But keep pelting him and it all crumbles, giving way to “well, it’s too late.” Translated: “I’ll be on, or near, my deathbed when the shit really hits the fan. You, youngster, will be hauling your family across the country George Romero style, scavenging for orphans to sell off as catamites to the warlord chieftains.”
  • Documentary filmmaker Adam Curtis has spent the past few years chronicling this ghastly mutation step-by-step—unraveling the seemingly incongruous strands and the hideous parentage of Boomer ideology. Their embrace of American libertarianism—with all of its absurdities, vulgarities and utopianism—was the final cry for help.
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    "Generational analysis is bullshit. Or so I'm told. Fit for netroots liberals and horoscope clippers, maybe. And to be fair, it's mostly thinktank types who've been profiting off that whole Millennials Rising genre. One of the authors of that book is a former writing partner of Pete G. Peterson's, the octogenarian billionaire who has spent the last couple of decades trying to kick over the Social Security ladder before us young'ns can scamper up and collect. Most of it reads like a debriefing after a recon mission-you can feel them sizing us up, drawing up blueprints for the generational counterrevolution that we're living through right now."
anonymous

Half of US social program recipients believe they "have not used a government social pr... - 1 views

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    ""Reconstituting the Submerged State: The Challenges of Social Policy Reform in the Obama Era," a paper by Cornell's Clinton Rossiter Professor of American Institutions Suzanne Mettler features this remarkable chart showing that about half of American social program beneficiaries believe that they "have not used a government social program." It's the "Keep your government hands off my Medicare" phenomena writ large: a society of people who subsist on mutual aid and redistributive policies who've been conned (and conned themselves) into thinking that they are rugged individualists and that everyone else is a parasite. "
anonymous

What Your Culture Really Says - 0 views

  • The monied, celebrated, nuevo-social, 1% poster children of startup life spread the mythology of their cushy jobs, 20% time, and self-empowerment as a thinly-veiled recruiting tactic in the war for talent against internet giants. The materialistic, viral nature of these campaigns have redefined how we think about culture, replacing meaningful critique with symbols of privilege. The word “culture” has become a signifier of superficial company assets rather than an ongoing practice of examination and self-reflection.
  • Culture is not about the furniture in your office. It is not about how much time you have to spend on feel-good projects. It is not about catered food, expensive social outings, internal chat tools, your ability to travel all over the world, or your never-ending self-congratulation.
  • Culture is about power dynamics, unspoken priorities and beliefs, mythologies, conflicts, enforcement of social norms, creation of in/out groups and distribution of wealth and control inside companies. Culture is usually ugly.
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  • What your culture might actually be saying is… We have implemented a loosely coordinated social policy to ensure homogeneity in our workforce. We are able to reject qualified, diverse candidates on the grounds that they “aren’t a culture fit” while not having to examine what that means - and it might mean that we’re all white, mostly male, mostly college-educated, mostly young/unmarried, mostly binge drinkers, mostly from a similar work background. We tend to hire within our employees’ friend and social groups. Because everyone we work with is a great culture fit, which is code for “able to fit in without friction,” we are all friends and have an unhealthy blur between social and work life. Because everyone is a “great culture fit,” we don’t have to acknowledge employee alienation and friction between individuals or groups. The desire to continue being a “culture fit” means it is harder for employees to raise meaningful critique and criticism of the culture itself.
  • What your culture might actually be saying is… We have a collective post-traumatic stress reaction to previous workplaces that had hostile, unnecessary, unproductive and authoritarian meetings. We tend to avoid projects and initiatives that require strict coordination across the company. We might have difficulty meeting the expectations of enterprise companies and do better selling to startups organized like us. We are heavily invested in being rebels against traditional corporate culture. Because we communicate largely asynchronously and through chat, it is easy to mentally dehumanize teammates and form silos around functional groups with different communications practices or business functions.
  • What your culture might actually be saying is… Our employees must be treated as spoiled, coddled children that cannot perform their own administrative functions. We have a team of primarily women supporting the eating, drinking, management and social functions of a primarily male workforce whose output is considered more valuable. We struggle to hire women in non-administrative positions and most gender diversity in our company is centralized in social and admin work. Because our office has more amenities than home life, our employees work much longer hours and we are able to extract more value from them for the same paycheck. The environment reinforces the cultural belief that work is a pleasant dream and can help us distract or bribe from deeper issues in the organization.
  • What your culture might actually be saying is… We have enough venture funding to pay people to work on non-core parts of the business. We are not under that much pressure to make money. The normal work of the business is not sufficiently rewarding so we bribe employees with pet projects. We’re not entirely sure what our business objectives and vision are, so we are trying to discover it by letting employee passions take root. We have a really hard time developing work that takes more than a few people to release. We have lots of unfinished but valuable projects that get left behind due to shifts in focus, lack of concentrated effort, and inability to organize sufficient resources to bring projects to completion.
  • What your culture might actually be saying is… Management decisions are siloed at the very top layers of management, kept so close to the chest they appear not to exist at all. The lack of visibility into investor demands, financial affairs, HR issues, etc. provides an abstraction layer between employees and real management, which we pretend doesn’t exist. We don’t have an explicit power structure, which makes it easier for the unspoken power dynamics in the company to play out without investigation or criticism.
  • What your culture might actually be saying is… We fool ourselves into thinking we have a better work/life balance when really people take even less vacation than they would when they had a vacation policy. Social pressure and addiction to work has replaced policy as a regulator of vacation time.
  • What your culture might actually be saying is… Features are the most important function of our business. We lack processes for surfacing and addressing technical debt. We have systemic infrastructure problems but they are not relevant because we are more focused on short-term adoption than long-term reliability. We prioritize fast visible progress, even if it is trivial, over longer and more meaningful projects. Productivity is measured more by lines of code than the value of that code. Pretty things are more important than useful things.
  • Talk to your company about culture. Talk to other companies about culture. Stop mistaking symbology and VC spoils for culture. Be honest with yourself, and with each other. Otherwise, your culture will kill you softly with its song, and you won’t even notice. But hey, you have a beer keg in the office.
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    "Toxic lies about culture are afoot in Silicon Valley. They spread too fast as we take our bubble money and designer Powerpoints to drinkups, conferences and meetups all over the world, flying premium economy, ad nauseam. Well-intentioned darlings south of Market wax poetic on distributed teams, office perks, work/life balance, passion, "shipping", "iteration," "freedom". A world of startup privilege hides blithely unexamined underneath an insipid, self-reinforcing banner of meritocracy and funding. An economic and class-based revolt of programmers against traditional power structures within organizations manifests itself as an (ostensively) radical re-imagining of work life. But really, you should meet the new boss. Hint: he's the same as the old boss."
anonymous

Jaron Lanier: The Internet destroyed the middle class - 2 views

  • His book continues his war on digital utopianism and his assertion of humanist and individualistic values in a hive-mind world. But Lanier still sees potential in digital technology: He just wants it reoriented away from its main role so far, which involves “spying” on citizens, creating a winner-take-all society, eroding professions and, in exchange, throwing bonbons to the crowd.
  • This week sees the publication of “Who Owns the Future?,” which digs into technology, economics and culture in unconventional ways.
  • Much of the book looks at the way Internet technology threatens to destroy the middle class by first eroding employment and job security, along with various “levees” that give the economic middle stability.
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  • “Here’s a current example of the challenge we face,” he writes in the book’s prelude: “At the height of its power, the photography company Kodak employed more than 140,000 people and was worth $28 billion. They even invented the first digital camera. But today Kodak is bankrupt, and the new face of digital photography has become Instagram. When Instagram was sold to Facebook for a billion dollars in 2012, it employed only 13 people. Where did all those jobs disappear? And what happened to the wealth that all those middle-class jobs created?”
  • But more important than Lanier’s hopes for a cure is his diagnosis of the digital disease. Eccentric as it is, “Future” is one of the best skeptical books about the online world, alongside Nicholas Carr’s “The Shallows,” Robert Levine’s “Free Ride” and Lanier’s own “You Are Not a Gadget.”
  • One is that the number of people who are contributing to the system to make it viable is probably the same.
  • And furthermore, many people kind of have to use social networks for them to be functional besides being valuable.
  • So there’s still a lot of human effort, but the difference is that whereas before when people made contributions to the system that they used, they received formal benefits, which means not only salary but pensions and certain kinds of social safety nets. Now, instead, they receive benefits on an informal basis. And what an informal economy is like is the economy in a developing country slum. It’s reputation, it’s barter, it’s that kind of stuff.
  • Yeah, and I remember there was this fascination with the idea of the informal economy about 10 years ago. Stewart Brand was talking about how brilliant it is that people get by in slums on an informal economy. He’s a friend so I don’t want to rag on him too much. But he was talking about how wonderful it is to live in an informal economy and how beautiful trust is and all that.
  • And you know, that’s all kind of true when you’re young and if you’re not sick, but if you look at the infant mortality rate and the life expectancy and the education of the people who live in those slums, you really see what the benefit of the formal economy is if you’re a person in the West, in the developed world.
  • So Kodak has 140,000 really good middle-class employees, and Instagram has 13 employees, period. You have this intense concentration of the formal benefits, and that winner-take-all feeling is not just for the people who are on the computers but also from the people who are using them. So there’s this tiny token number of people who will get by from using YouTube or Kickstarter, and everybody else lives on hope. There’s not a middle-class hump. It’s an all-or-nothing society.
  • the person who lost his job at Kodak still has to pay rent with old-fashioned money he or she is no longer earning. He can’t pay his rent with cultural capital that’s replaced it.
  • The informal way of getting by doesn’t tide you over when you’re sick and it doesn’t let you raise kids and it doesn’t let you grow old. It’s not biologically real.
  • If we go back to the 19th century, photography was kind of born as a labor-saving device, although we don’t think of it that way.
  • And then, you know, along a similar vein at that time early audio recordings, which today would sound horrible to us, were indistinguishable between real music to people who did double blind tests and whatnot.
  • So in the beginning photography was kind of a labor saving device. And whenever you have a technological advance that’s less hassle than the previous thing, there’s still a choice to make. And the choice is, do you still get paid for doing the thing that’s easier?
  • And so you could make the argument that a transition to cars should create a world where drivers don’t get paid, because, after all, it’s fun to drive.
  • We kind of made a bargain, a social contract, in the 20th century that even if jobs were pleasant people could still get paid for them. Because otherwise we would have had a massive unemployment. And so to my mind, the right question to ask is, why are we abandoning that bargain that worked so well?
    • anonymous
       
      I think that's a worthy question considering the high-speed with which we adopt every possible technology; to hell with foresight.
  • Of course jobs become obsolete. But the only reason that new jobs were created was because there was a social contract in which a more pleasant, less boring job was still considered a job that you could be paid for. That’s the only reason it worked. If we decided that driving was such an easy thing [compared to] dealing with horses that no one should be paid for it, then there wouldn’t be all of those people being paid to be Teamsters or to drive cabs. It was a decision that it was OK to have jobs that weren’t terrible.
  • I mean, the whole idea of a job is entirely social construct. The United States was built on slave labor. Those people didn’t have jobs, they were just slaves. The idea of a job is that you can participate in a formal economy even if you’re not a baron. That there can be, that everybody can participate in the formal economy and the benefit of having everybody participate in the formal economy, there are annoyances with the formal economy because capitalism is really annoying sometimes.
  • But the benefits are really huge, which is you get a middle-class distribution of wealth and clout so the mass of people can outspend the top, and if you don’t have that you can’t really have democracy. Democracy is destabilized if there isn’t a broad distribution of wealth.
  • And then the other thing is that if you like market capitalism, if you’re an Ayn Rand person, you have to admit that markets can only function if there are customers and customers can only come if there’s a middle hump. So you have to have a broad distribution of wealth.
    • anonymous
       
      Ha ha. Ayn Rand people don't have to admit to *anything,* trust me, dude.
  • It was all a social construct to begin with, so what changed, to get to your question, is that at the turn of the [21st] century it was really Sergey Brin at Google who just had the thought of, well, if we give away all the information services, but we make money from advertising, we can make information free and still have capitalism.
  • But the problem with that is it reneges on the social contract where people still participate in the formal economy. And it’s a kind of capitalism that’s totally self-defeating because it’s so narrow. It’s a winner-take-all capitalism that’s not sustaining.
    • anonymous
       
      This makes me curious. Is he arguing that there are fewer *nodes* because the information access closes them?
  • You argue that the middle class, unlike the rich and the poor, is not a natural class but was built and sustained through some kind of intervention.
    • anonymous
       
      My understanding was that the U.S. heads of business got the nod to go ahead and start manufacturing things *other* than weapons, because our industrial capabilities weren't anhialated (sp?) relative to so many others.
  • There’s always academic tenure, or a taxi medallion, or a cosmetology license, or a pension. There’s often some kind of license or some kind of ratcheting scheme that allows people to keep their middle-class status.
  • In a raw kind of capitalism there tend to be unstable events that wipe away the middle and tend to separate people into rich and poor. So these mechanisms are undone by a particular kind of style that is called the digital open network.
  • Music is a great example where value is copied. And so once you have it, again it’s this winner-take-all thing where the people who really win are the people who run the biggest computers. And a few tokens, an incredibly tiny number of token people who will get very successful YouTube videos, and everybody else lives on hope or lives with their parents or something.
  • I guess all orthodoxies are built on lies. But there’s this idea that there must be tens of thousands of people who are making a great living as freelance musicians because you can market yourself on social media.
  • And whenever I look for these people – I mean when I wrote “Gadget” I looked around and found a handful – and at this point three years later, I went around to everybody I could to get actual lists of people who are doing this and to verify them, and there are more now. But like in the hip-hop world I counted them all and I could find about 50. And I really talked to everybody I could. The reason I mention hip-hop is because that’s where it happens the most right now.
  • The interesting thing about it is that people advertise, “Oh, what an incredible life. She’s this incredibly lucky person who’s worked really hard.” And that’s all true. She’s in her 20s, and it’s great that she’s found this success, but what this success is that she makes maybe $250,000 a year, and she rents a house that’s worth $1.1 million in L.A.. And this is all breathlessly reported as this great success.
  • And that’s good for a 20-year-old, but she’s at the very top of, I mean, the people at the very top of the game now and doing as well as what used to be considered good for a middle-class life.
    • anonymous
       
      Quite true. She's obviously not rolling in solid gold cadillacs.
  • But for someone who’s out there, a star with a billion views, that’s a crazy low expectation. She’s not even in the 1 percent. For the tiny token number of people who make it to the top of YouTube, they’re not even making it into the 1 percent.
  • The issue is if we’re going to have a middle class anymore, and if that’s our expectation, we won’t. And then we won’t have democracy.
  • I think in the total of music in America, there are a low number of hundreds. It’s really small. I wish all of those people my deepest blessings, and I celebrate the success they find, but it’s just not a way you can build a society.
  • The other problem is they would have to self-fund. This is getting back to the informal economy where you’re living in the slum or something, so you’re desperate to get out so you impress the boss man with your music skills or your basketball skills. And the idea of doing that for the whole of society is not progress. It should be the reverse. What we should be doing is bringing all the people who are in that into the formal economy. That’s what’s called development. But this is the opposite of that. It’s taking all the people from the developed world and putting them into a cycle of the developing world of the informal economy.
  • We don’t realize that our society and our democracy ultimately rest on the stability of middle-class jobs. When I talk to libertarians and socialists, they have this weird belief that everybody’s this abstract robot that won’t ever get sick or have kids or get old. It’s like everybody’s this eternal freelancer who can afford downtime and can self-fund until they find their magic moment or something.
  • The way society actually works is there’s some mechanism of basic stability so that the majority of people can outspend the elite so we can have a democracy. That’s the thing we’re destroying, and that’s really the thing I’m hoping to preserve. So we can look at musicians and artists and journalists as the canaries in the coal mine, and is this the precedent that we want to follow for our doctors and lawyers and nurses and everybody else? Because technology will get to everybody eventually.
  • I have 14-year-old kids who come to my talks who say, “But isn’t open source software the best thing in life? Isn’t it the future?” It’s a perfect thought system. It reminds me of communists I knew when growing up or Ayn Rand libertarians.
  • It’s one of these things where you have a simplistic model that suggests this perfect society so you just believe in it totally. These perfect societies don’t work. We’ve already seen hyper-communism come to tears. And hyper-capitalism come to tears. And I just don’t want to have to see that for cyber-hacker culture. We should have learned that these perfect simple systems are illusions.
  • You’re concerned with equality and a shrinking middle class. And yet you don’t seem to consider yourself a progressive or a man of the left — why not?
  • I am culturally a man on the left. I get a lot of people on the left. I live in Berkeley and everything. I want to live in a world where outcomes for people are not predetermined in advance with outcomes.
  • The problem I have with socialist utopias is there’s some kind of committees trying to soften outcomes for people. I think that imposes models of outcomes for other people’s lives. So in a spiritual sense there’s some bit of libertarian in me. But the critical thing for me is moderation. And if you let that go too far you do end up with a winner-take-all society that ultimately crushes everybody even worse. So it has to be moderated.
  • I think seeking perfection in human affairs is a perfect way to destroy them.
  • All of these things are magisterial, where the people who become involved in them tend to wish they could be the only ones.
  • Libertarians tend to think the economy can totally close its own loops, that you can get rid of government. And I ridicule that in the book. There are other people who believe that if you could get everybody to talk over social networks, if we could just cooperate, we wouldn’t need money anymore. And I recommend they try living in a group house and then they’ll see it’s not true.
    • anonymous
       
      Group House. HAH!
  • So what we have to demand of digital technology is that it not try to be a perfect system that takes over everything. That it balances the excess of the other magisteria.
  • And that is doesn’t concentrate power too much, and if we can just get to that point, then we’ll really be fine. I’m actually modest. People have been accusing me of being super-ambitious lately, but I feel like in a way I’m the most modest person in the conversation.
  • I’m just trying to avoid total dysfunction.
    • anonymous
       
      See, now I like this guy. This is like the political equivalent of aiming for the realist view in geopolitics. We separate what is likely from what is unlikely and aim not for "the best" situation, but a situation where the worst aspects have been mitigated. It's backwards thinking that both parties would have a hard time integrating into their (ughhh) brand.
  • Let’s stick with politics for one more. Is there something dissonant about the fact that the greatest fortunes in human history have been created with a system developed largely by taxpayers dollars?
  • Yeah, no kidding. I was there. I gotta say, every little step of this thing was really funded by either the military or public research agencies. If you look at something like Facebook, Facebook is adding the tiniest little rind of value over the basic structure that’s there anyway. In fact, it’s even worse than that. The original designs for networking, going back to Ted Nelson, kept track of everything everybody was pointing at so that you would know who was pointing at your website. In a way Facebook is just recovering information that was deliberately lost because of the fetish for being anonymous. That’s also true of Google.
  • I don’t hate anything about e-books or e-book readers or tablets. There’s a lot of discussion about that, and I think it’s misplaced. The problem I have is whether we believe in the book itself.
  • Books are really, really hard to write. They represent a kind of a summit of grappling with what one really has to say. And what I’m concerned with is when Silicon Valley looks at books, they often think of them as really differently as just data points that you can mush together. They’re divorcing books from their role in personhood.
    • anonymous
       
      Again, a take I rarely encounter.
  • I was in a cafe this morning where I heard some stuff I was interested in, and nobody could figure out. It was Spotify or one of these … so they knew what stream they were getting, but they didn’t know what music it was. Then it changed to other music, and they didn’t know what that was. And I tried to use one of the services that determines what music you’re listening to, but it was a noisy place and that didn’t work. So what’s supposed to be an open information system serves to obscure the source of the musician. It serves as a closed information system. It actually loses the information.
    • anonymous
       
      I have had this very thing happen to. I didn't get to have my moment of discovery. I think Google Glass is going to fix that. Hah. :)
  • And if we start to see that with books in general – and I say if – if you look at the approach that Google has taken to the Google library project, they do have the tendency to want to move things together. You see the thing decontextualized.
  • I have sort of resisted putting my music out lately because I know it just turns into these mushes. Without context, what does my music mean? I make very novel sounds, but I don’t see any value in me sharing novel sounds that are decontextualized. Why would I write if people are just going to get weird snippets that are just mushed together and they don’t know the overall position or the history of the writer or anything? What would be the point in that. The day books become mush is the day I stop writing.
  • So to realize how much better musical instruments were to use as human interfaces, it helped me to be skeptical about the whole digital enterprise. Which I think helped me be a better computer scientist, actually.
  • Sure. If you go way back I was one of the people who started the whole music-should-be-free thing. You can find the fire-breathing essays where I was trying to articulate the thing that’s now the orthodoxy. Oh, we should free ourselves from the labels and the middleman and this will be better.I believed it at the time because it sounds better, it really does. I know a lot of these musicians, and I could see that it wasn’t actually working. I think fundamentally you have to be an empiricist. I just saw that in the real lives I know — both older and younger people coming up — I just saw that it was not as good as what it had once been. So that there must be something wrong with our theory, as good as it sounded. It was really that simple.
  •  
    "Kodak employed 140,000 people. Instagram, 13. A digital visionary says the Web kills jobs, wealth -- even democracy"
anonymous

The Stress of a Busy Environment Helps Mice Beat Back Cancer - 0 views

  • Whereas most people live in fairly safe environments, with plenty of food and some degree of social interaction, “our data suggests that we shouldn’t just be avoiding stress, we should be living more socially and physically challenging lives,” During says [Scientific American].
  • Mice were then injected with tumor cells, which led to malignancies in all of the control animals within 15 days… The rate of tumor formation in animals living in the enriched environment was significantly delayed, and 15 percent had not developed tumors after nearly three weeks; when tumors were visible, they were 43 percent smaller than the lesions on control animals
  •  
    'Whereas most people live in fairly safe environments, with plenty of food and some degree of social interaction, "our data suggests that we shouldn't just be avoiding stress, we should be living more socially and physically challenging lives," During says.' By Andrew Moseman at 80beats (Discover Magazine) on July 9, 2010.
anonymous

Dispatch: China's Approach to Social Harmony - 0 views

  •  
    "Two announcements this week on China are critically important for understanding their main policy of addressing social instability. The first came from Zhou Yongkang - who is China's intelligence chief - who reiterated his call for social control. The second announcement came from U.S. Commerce Secretary Gary Locke - who is also tipped to be the next ambassador to China - who criticized Beijing for its policies against foreign investment, discouraging foreign investment and promoting domestic industries. These two issues highlighted Beijing's policy toward maintaining social harmony or in Chinese, hexie shehui."
anonymous

StratFor Annual Forecast 2013 - 0 views

  • Generational shifts take time to play out and often begin with a period of denial as the forces of the international system struggle to preserve the old order. In 2013, that state of denial will persist in many areas. But we are more than four years into this cyclical transformation, and change is becoming more palpable and much harder to deny with every passing month.
  • In Europe, short-term remedies that are so far preserving the integrity of the European Union are also papering over the deep, structural ailments of the bloc.
  • China is not so much in denial of its current predicament as it is constrained in its ability to cope with a dramatic shift from high export-oriented growth to more sustainable development of its interior.
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  • The emerging economies of the post-China world will take time to develop, but 2013 will be an important year in determining which are best positioned to fill the growing void left by China.
  • Change will be primarily violent in nature -- and thus harder to miss -- in the Middle East.
  • The United States is also not immune to change. In this generational shift, and all the tumult that comes with it, Washington will be forced to learn the value of restraint in balance-of-power politics, preferring to lean on regional partners and encourage strategic competition as a way of preserving its own power.
  • The Arab world is moving uncomfortably between two eras. The post-World War II era, in which Arab dictatorships and monarchies supplanted colonial rule, is now roughly blending with -- or in some cases outright colliding with -- a fractured landscape of long-repressed Islamist forces.
  • This dynamic will be particularly visible in the northern Levant region this year as Syria and Lebanon continue coming apart. From Stratfor's perspective, the regime in Syria has already fallen and is giving way to a familiar state of warlordism, where militias and clan interests reign supreme. There is no longer a political entity capable of wielding control over the entirety of Syrian territory, nor will there be for some time.
  • once Syrian President Bashar al Assad is removed from power, whether through a negotiated deal or by force, the Sunni forces will fragment along ideological, ethnic and geographic lines, with Salafist-jihadist forces battling against a more politically minded Muslim Brotherhood and secular Sunnis.
  • As their grip over Aleppo slips, Alawite forces will try to hold Damascus while preparing a mass retreat to their coastal enclave. The battle for Damascus could extend beyond the scope of this forecast.
  • The potential use of chemical weapons by Alawite forces in a state of desperation could accelerate the unraveling of the region; a U.S.-led coalition would have to assemble in haste to contain the chemical weapons threat.
  • To be clear, the United States is not looking for a pretext to intervene militarily in Syria. On the contrary, the United States will make every effort possible to avoid another military campaign in the Islamic world this year.
  • A military conflict between the United States and Iran remains unlikely in 2013.
  • The growing disparity in the U.S. and Iranian negotiating positions will largely relegate Iran to the role of regional spoiler. So long as Iran can create pain for its regional adversaries, it can slow its own descent.
  • Iraq remains Iran's primary regional imperative, however. The momentum building among Sunni forces in Syria will eventually spill into Iraq and challenge Shiite dominance.
  • Iran's presidential elections in June will reveal the declining relevancy of the clerical elite and the populist faction embodied by outgoing President Mahmoud Ahmadinejad. This creates a political void for the Revolutionary Guard to fill. The Supreme Leader Ayatollah Ali Khamenei will try to check the Corps' growing influence by bolstering rival military and security agencies and backing a less controversial and more politically malleable ally from the pragmatic conservative camp for the presidency.
  • In Egypt, the military will adapt to an emerging Islamist political order. The military will remain the ultimate arbiter of the state and will rely on a number of factors -- including a fragmented judiciary, the military's economic leverage, a divided Islamist political landscape and the military's foreign relationships -- to check the Muslim Brotherhood.
  • Egypt's consuming political transition will leave opportunities for flare-ups in the Sinai Peninsula and in Gaza, but we do not expect a significant breach between Israel and Egypt this year.
  • Jordan, the oft-overlooked casualty of the Arab Spring, will continue to destabilize quietly and slowly in 2013
  • Israel and Turkey are both greatly affected by the shifting political dynamics of the Arab world, but both have little means to influence the change. The two former allies will continue exploring ways to restore a quiet working relationship under these new regional stresses, but a public restoration of diplomatic ties is less likely.
  • Israel will struggle internally over how to adapt to a new regional framework in which the reliability of old working partners is called into question.
  • Turkey sees an opportunity in the rise of Islamist forces in the Arab world but Ankara's limited influences restrain its actions beyond Turkish borders.
  • A more aggressive Saudi role in Syria will aggravate the civil war and create competition with other regional stakeholders, including Turkey, Qatar and Jordan.
  • In 2012, the European Union took numerous steps to mitigate the financial impact of its ongoing crisis.
  •  These actions, which helped to keep the eurozone afloat in 2012, will remain effective in 2013, making it very likely that the eurozone will survive another year. But these tools do not solve three fundamental aspects of the European crisis. 
  • First, the European crisis is fundamentally a crisis of competitiveness.
  • Second, the crisis has a political aspect. The European Union is not a federation but a collection of nation-states bound together by international treaties.
  • Third, the European crisis is threatening the social stability in some countries, especially in the eurozone's periphery.
  • In 2013, the two largest economies of the eurozone (Germany and France) will face low growth or even stagnation. This will have negative effects across Europe.
  • In 2013, the crisis will keep damaging economic conditions in the eurozone periphery. Greece, Spain, Portugal and Italy will see their economies shrink and unemployment rates rise. In all these countries, the social unrest will grow and the year will be marked by permanent protests and strikes. 
  • The conspicuous divide between the ruling elite and the populations of the periphery will be a key element in 2013, and some governments could fall. But even if opposition parties take power, they will face the same constraints as the governments that preceded them. In other words, a change in politicians will not bring a substantial change in policies regarding the European Union.
  • The only country in the eurozone periphery that has scheduled elections is Italy (in February). If the next Italian government fails to achieve political stability and apply economic reforms, the increased market pressure on Italy will make Rome more likely to require financial assistance from Brussels.
  • Because of the fundamental contradictions in the national interests and foreign policy strategies of the EU member states, the European crisis will continue generating political and economic divisions in the Continent in 2013.
  • Outside the eurozone, the United Kingdom will seek to protect its sovereignty and renegotiate its status within the European Union. But London will not leave the European Union in 2013.
  • Domestic Issues After the political tumult of 2012, Russia will face another year of anti-Kremlin protests, tensions among various political factions and ethnic groups, crackdowns and government reshuffles. Overall, the political tensions will remain manageable and will not pose a serious challenge to Moscow's control.
  • Russia has made significant progress recently in re-establishing influence in its former Soviet periphery.
  • Russia's relationship with Ukraine could be its most important connection in the former Soviet Union in 2013. Russia has been pursuing integration with Ukraine, primarily by taking over its natural gas transit infrastructure and calling on Kiev to join the Customs Union.
  • Georgia will be Russia's main concern in the Caucasus in 2013. With the political emergence of billionaire tycoon Bidzina Ivanishvili and his Georgian Dream movement, Russia's position in the country strengthened at the expense of the anti-Russian camp of Georgian President Mikhail Saakashvili.
  • In the past year, Russia has changed its tactics toward Europe to preserve its presence and leverage for the future. Russia's primary link to Europe is the Europeans' dependence on Russia's large energy supplies, which Moscow knows will be threatened when more non-Russian supplies become available.
  • In 2012, Russia began shifting away from its aggressive stance on energy -- particularly its high prices -- to strike long-term deals that will maintain Russia's market share with its primary strategic customers, such as Germany, Italy and Turkey. Russia will continue this strategy in 2013 as it continues to build new infrastructure to directly link its supplies to Europe.
  • The United States and Russia will continue sparring over trade matters, negotiations for a new nuclear arms treaty and Russia's role in Iran and Syria. Stratfor does not expect major changes from Washington or Moscow that would break the gridlock in negotiations on these issues.
  • The low-level violence and instability that occurred throughout Central Asia in 2012 will continue in 2013.
  • Three things will shape events in East Asia in 2013: Beijing's struggle to maintain social and political stability amid lower economic growth rates; China's accelerating military modernization and increasingly aggressive moves to secure its territorial and economic interests in the region; and varied efforts by other regional players, including the United States, to adapt to China's changes. 
  • In 2013, the Chinese economy will continue the gradual, painful process of moving away from high export-driven growth and toward a model that is more sustainable in the long run.
  • But barring another global financial meltdown on the scale of 2008-2009, China's coastal manufacturing economy will not collapse outright. The decline will be gradual.
  • The ongoing, gradual eclipse of coastal China as a hub of global manufacturing over the next several years will lead to higher unemployment and social dislocation as more of China's 250 million-strong migrant labor force returns inland in search of work. 
  • Shadow banking is by no means new in China. But it has grown significantly in the past few years from the geographically isolated informal loan markets of coastal cities to a complex network of semi-legal entities that provides between 12 and 30 trillion yuan (between $1.9 trillion and $4.8 trillion) in credit -- at interest rates of 20-36 percent -- to thousands of struggling small businesses nationwide.
  • The Party's growing sense of insecurity -- both internally and with regard to the social consequences of China's economic transition -- likely will be reflected in continued censorship of online social platforms like Weibo, crackdowns on religious or other groups perceived as threatening, and the Chinese military's growing assertiveness over China's interests in the South and East China seas and Southeast Asia.
  • The decline of low-end coastal manufacturing in China will present enormous opportunities for Southeast Asian countries like Indonesia, Vietnam, the Philippines and potentially Myanmar -- all of whom will continue to push strongly for foreign investment not only into natural resources and raw materials industries but also into developing better urban, transport, power generation and materials processing infrastructure.
  • Meanwhile, Vietnam and the Philippines -- China's most vocal opponents in Southeast Asia -- will continue to push for greater integration among members of the Association of Southeast Asian Nations and for U.S. business and military engagement in the region.
  • The Coming U.S. Withdrawal from Afghanistan Ahead of the 2014 drawdown of U.S. troops from Afghanistan, efforts will intensify to negotiate a settlement that gives the Taliban a place in a new government.
  • The negotiations will face numerous obstacles this year. There will be an upsurge in violence -- both in terms of officially sanctioned attacks designed to gain advantage on the negotiating table and spoiler attacks by Taliban elements allied with al Qaeda on both sides of the Afghan-Pakistani border.
  • Washington's intention to reduce its presence in the region will spur regional actors to fill the void. Pakistan will increase its interactions with Russia, Central Asia and Iran to prepare for a post-U.S. Afghanistan.
  • India will also turn its attention eastward, where the United States is quietly trying to forge a coalition of regional partners to keep a check on China in the Indo-Pacific basin. Myanmar in particular will be an active battleground for influence this year.
  • Preparing for a Post-Chavez Venezuela After a year of successful campaigning for re-election, Venezuelan President Hugo Chavez is in questionable health. Although the ultimate outcome of December's medical treatment for the ailing leader is unpredictable, Chavez's decision to name Vice President Nicolas Maduro as a political successor at the end of 2012 indicates that there is significant concern for his ability to remain in power.
  • Although it remains possible that Chavez will stay in power through the year, for Maduro to capitalize on Chavez's recent political gains, elections may need to be called sooner rather than later, regardless of Chavez's immediate health status.
  • Throughout 2013, Colombia will continue the incremental process of negotiating an end to the conflict with the Revolutionary Armed Forces of Colombia, known by its Spanish acronym FARC.
  • This will be a year of significant transition for Mexico. Policy issues that were bottled up by intra-party competition in the waning years of the National Action Party's administration have begun coming to the fore and will dominate 2013. These include socio-political issues like education, tax and pension reform.
  • The most important issue facing Mexico in 2013 will be energy policy.
  •  
    "At the beginning of 2012, we argued that the international system is undergoing a generational transformation -- the kind that occurs every 20 years or so. The cycle we are now in started in 2008-2009, when global financial contagion exposed the underlying weaknesses of Europe and eventually cracked China's export-oriented economic model. The Middle East then began to deviate from its post-World War II paradigm with an attempted resurgence by Iran, the regional rise of Islamists and the decline of age-old autocratic regimes in the Arab world."
anonymous

Objectivism & Politics, Part 55 - 0 views

  • It is facts, not opinions, results, not premises, that are of most importance to the conservative. Conservatives favor a type of freedom, a form of capitalism that works in the real world, not merely one that works according to the speculative “logic” of this or that intellectual.
  • The notion that trade can define most human relationships rests on the tacit assumption that the individual is a kind atomistic unit without any bonds or ties to the community at large which will profoundly influence his behavior.
  • Social organization through free contract implies that the contracting units know what they want and are guided by their desires, that is, that they are “perfectly rational,” which would be equivalent to saying that they are accurate mechanisms of desire-satisfaction.
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  • In fact, human activity is largely impulsive, a relatively unthinking and undetermined response to stimulus and suggestion.
  • Social bond individualism is civil and viable and constructive except in very abnormal situations.
  • Anarchic individualism is revolutionary and subversive from the very start; it shows a complete despite for all that civilization or the social order has painfully created, and this out of self-righteousness or egocentric attachment to an idea…. It is charged with a lofty disdain for the human condition, not the understanding of charity.
  • Objectivists benefit from the social bonds in the society around them, many of which they regard as irrational (such as the bonds defined by common law, family “duty,” social “obligations,” etc.). But if (per impossible) Objectivism became dominant in a society, many of those bonds would be dissolved. The result would be a social order in which most people (including, perhaps, many Objectivists) would not wish to live. It would be a society dominated by intellectual bullies who would use their aggressiveness and their ability to rationalize their (unconscious and unacknowledged) need for respect and status to manipulate and stomp over their weaker brethren.
  • Within the social world of Objectivism, the belief that the “rational interests of men do not clash” renders it nearly impossible for Objectivsts to settle differences amicably.
    • anonymous
       
      I would prefer a practical policy to the "it doesn't exist" approach.
  • precisely because Objectivists tend to regard all disputes as arising out of contradictory fundamental premises, personal disputes are framed as philosophical disputes involving metaphysical, epistemological, and moral arcana.
  • Once a personal dispute has been translated and rationalized into philosophical abstractions, there is no way it can be solved for the simple reason that the abstractions conceal the real causes of the dispute.
  • Fortunately for Plasil, the Objectivist community is only a small sliver of society: there was a larger non-Objectivist community that she could appeal to for justice and support. But where would she have turned in a society dominated by Objectivists, where Objectivists ran the courts and administered justice?
  • Ponder that question and you will understand why most people do not want an Objectivist society and are in fact repelled by it.
  • Indeed, in such a society, everyone would be on their own and those who could not fend for themselves would be regarded with contempt, as Plasil is among Objectivists to this day. Who would want to live in such a world?
  •  
    Another great Greg S. Nyquist piece. On June 21, 2010. Ayn Rand Contra Human Nature
anonymous

France in Turmoil | STRATFOR - 0 views

  • The two groups have different economic and social interests, but they are coming together in their angst toward the government and in their anger toward President Nicolas Sarkozy. This presents a dangerous situation for Paris, as it has the potential to spark wider societal unrest unless the government moves to satisfy one of the groups.
  • The origins of the French welfare state go back to the 60-year period of nearly constant turmoil following the 1789 French Revolution. The revolution was followed by the 1793-94 Reign of Terror; the White Terror of 1794; Napoleon Bonaparte’s rule from 1804 to 1814, which included an almost uninterrupted period of pan-European warfare; another White Terror in 1815; and two more revolutions, in 1830 and 1848. The 1848 Revolution took on a particularly socialist tinge, as a nascent working class that was growing amid the country’s industrialization united with the peasantry in protest of their conditions.
  • Under Napoleon III, social order was largely restored for the next 20 years — to be disrupted by the war against Prussia in 1870 — but more importantly, the French social welfare state became a crucial part of the government’s social contract with its citizens. In order to pacify and unite its restive population, the state vowed that it would take care of its citizens from cradle to grave.
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  • The French, in other words, are neither lazy nor illogical. The protesters see the reforms as a threshold that, if crossed by the government, could undermine the foundation of the last 150 years of French society. Thus, while only 7-8 percent of the working population belongs to a labor union — the lowest percentage in the EU and even lower than that in the United States — nearly 70 percent of the population supports the ongoing strikes and believes they should continue if the proposed reforms pass, which they likely will by Oct. 23.
  • The context of the 2010 unrest is therefore not very different from 1995. The French budget deficit is forecast to hit 8.2 percent of GDP, and Paris is being forced by Germany to rein in spending to conform to the EU’s fiscal rules. Germany is making EU-wide fiscal discipline an essential condition of its continued support for EU institutions, a message that was elucidated during the Greek sovereign debt crisis but understood to apply to everyone.
  • In addition to protests from the French middle classes and workers demanding a continuation of the established social contract, there are protests from French citizens who feel they were never offered that social contract in the first place.
  • The protests of the last couple of days in France have seen both groups pour out onto the streets. The rioting and violence are still not in any way at a level that could be construed as threatening to the government; both the 2005 and 2007 riots were more intense. However, the protesters are using more strategic tactics, targeting the country’s energy infrastructure, and hence are less reliant on drawing out the masses to the streets.
  • The youth need a flexible labor market and thus would need substantial portions of the French welfare state to be eroded if their employment situation were to be remedied. Therefore, Paris will have a hard time satisfying both groups.
  • Ultimately, the commitments Paris has made to its people over the last 150 years are incompatible with the commitments it has made to Berlin in the last 20 years.
  • However, the French state has a very clear history of conceding to its population’s demands. At the very least, it is inevitable that Paris will have to give in to one of the groups, either by admitting that the social contract cannot be changed or by offering it in an amended form to the disaffected youth and citizens of immigrant descent.
  • It is likely that it will give in to the more established group — the workers and middle classes — since they have shown with their tactics that they have the ability to seriously threaten the French state’s efforts to function by targeting its energy infrastructure. Simply moving forward with a policy that three-quarters of the population rejects is unsustainable. At the point when Paris gives in to one side, however, France may cease to be at conflict with itself and instead come into conflict with Germany.
  •  
    "Unrest in France sparked by protests against the government continued Oct. 21. The turmoil is ostensibly over proposed government pension reforms, but it is about much more than that. The protests themselves are a confrontation between the government and unionized labor - older generations that want to protect benefits hard won in the 19th century and enhanced in the 1970s and 1980s. At the same time, another group of French citizens - disaffected youths, many of immigrant Arab and African descent - are protesting not for employment benefits, but for employment itself." By StratFor on October 22, 2010.
anonymous

The End of Consensus Politics in China - 0 views

  • What is the fundamental purpose of Xi's anti-corruption campaign? An attempt to answer this question will not tell us China's political future, but it will tell us something about Xi's strategy -- not only for consolidating his personal influence within the Party, government and military apparatuses, but also and more important, for managing the immense social, economic, political and international pressures that are likely to come to a head in China during his tenure.
  • The announcement July 29 of a formal investigation into retired Politburo Standing Committee member Zhou Yongkang marked something of an end to the first major phase of Xi's anti-corruption campaign.
  • Zhou was known to sit at the apex of at least these three power bases, and his influence likely extended deep into many more, making him not only a formidable power broker but also, at least in the case of his oil industry ties, a major potential obstacle to reform.
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  • Now begins another phase. There are indications that it will center on the military. There are other signs that it will target Shanghai, the primary power base of Jiang Zemin and the locus of financial sector reform in China.
  • the formation of a unified National Security Council chaired by Xi himself and his apparent wresting of the reins of economic and social reform from Premier Li Keqiang, suggest that some other and deeper shift is underway
  • Stratfor believes this shift involves nothing less than an attempt to rework not only the way the Communist Party operates but also the foundations of its political legitimacy.
  • China is in the midst of an economic transformation that is in many ways unprecedented. The core of this transformation is the shift from a growth model heavily reliant on low-cost, low value-added exports and state-led investment into construction to one grounded in a much greater dependence on high value-added industries, services and above all, domestic consumption.
  • China is not the first country to attempt this. Others, including the United States, achieved it long ago. But China has unique constraints: its size, its political system and imperatives, and its profound regional geographic and social and economic imbalances. These constraints are exacerbated by a final and perhaps greatest limit: time
  • China is attempting to make this transition, one which took smaller and more geographically, socially and politically cohesive countries many decades to achieve, in less than 20 years.
  • For the past six years, the Chinese government has kept the economy on life support in the form of massively expanded credit creation, government-directed investment into urban and transport infrastructure development and, most important, real estate construction. In the process, local governments, banks and businesses across China have amassed extraordinary levels of debt. Outstanding credit in China is now equivalent to 251 percent of the country's gross domestic product, up from 147 percent in 2008. Local governments alone owe more than $3 trillion. It is unknown -- deliberately so, most likely -- what portion of outstanding debts are nonperforming, but it is likely far higher than the official rate of 1 percent. 
  • Despite claims that China's investment drive was and is irresponsible -- and certainly there are myriad anecdotal cases of gross misallocation of capital -- it nonetheless fulfills the essential role of jumpstarting the country's effort to "rebalance" to a new, more urban and more consumption-based economic model.
  • This means that in the next few years, China faces inexorable and potentially very rapid decline in the two sectors that have underpinned economic growth and social and political stability for the past two or more decades: exports and construction.
  • And it does so in an environment of rapidly mounting local government and corporate debt, rising wages and input costs, rising cost of capital and falling return on investment (exacerbated by new environmental controls and efforts to combat corruption) and more.
  • Chinese household consumption is extraordinarily weak. In 2013, it was equivalent to only 34 percent of gross domestic product, compared to 69-70 percent in the United States, 61 percent in Japan, 57 percent in Germany and 52 percent in South Korea.
  • Whatever the Chinese government's stated reform goals, it is very difficult to see how economic rebalancing toward a consumption- and services-based economy succeeds within the decade. It is very difficult to see how exports recover. And it is very difficult, but slightly less so, to see how the government maintains stable growth through continued investment into housing and infrastructure construction, especially as the real estate market inevitably cools.
  • The pressures stemming from China's economy -- and emanating upward through Chinese society and politics -- will remain paramount over the next 5-10 years.
  • The above has described only a very small selection of the internal social and economic constraints facing China's government today. It completely neglects public anger over pollution, the myriad economic and industrial constraints posed by both pollution and pervasive low-level corruption, the impact of changes in Chinese labor flows and dynamics, rising education levels and much more. It completely neglects the ambivalence with which many ordinary Chinese regard the Communist Party government.
  • It also neglects external pressures and risks, whether economic or military.
  • Xi knows this. He and his advisers know China's virtually insurmountable challenges better than anyone.
  • The anti-corruption campaign is one of those steps. It serves many overlapping functions: to clear out potential opponents, ideological or otherwise
  • Underlying and encompassing these, we see the specter of something else. The consensus-based model of politics that Deng built in order to regularize decision-making and bolster political stability during times of high growth and that effectively guided China throughout the post-Deng era is breaking down.
  •  
    "Chinese President Xi Jinping's anti-corruption campaign is the broadest and deepest effort to purge, reorganize and rectify the Communist Party leadership since the death of Mao Zedong in 1976 and the rise of Deng Xiaoping two years later. It has already probed more than 182,000 officials across numerous regions and at all levels of government. It has ensnared low-level cadres, mid-level functionaries and chiefs of major state-owned enterprises and ministries. It has deposed top military officials and even a former member of the hitherto immune Politburo Standing Committee, China's highest governing body. More than a year after its formal commencement and more than two years since its unofficial start with the downfall of Chongqing Party Secretary Bo Xilai, the campaign shows no sign of relenting."
anonymous

The Social Effects of the European Crisis - 0 views

  • Tens of thousands of protesters took to the streets in Lisbon and other Portuguese cities March 2 to demand an end to the government's austerity measures and, in some cases, to call for the resignation of Portuguese Prime Minister Pedro Passos Coelho. The European Union considers the Portuguese government a success story in implementing austerity measures after it received a bailout in 2011. However, unemployment doubled in Portugal between 2008 and 2012 and currently affects more than 16 percent of the country's workforce.
  • In Spain, the government announced March 4 that more than five million people in the country are unemployed -- the highest rate seen there in more than three decades -- and a series of suicides committed by people who were to be evicted from their homes has spurred widespread protests.
  • In Greece, reports suggest that the country is going through a shortage of medicines; hundreds of drugs, including antibiotics and anesthetics, are in short supply.
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  • In Portugal, the Secretary of State for Emigrant Communities recently said that up to 240,000 people (roughly 2 percent of the nation's population) have left the country since 2011, due in large part to unemployment and economic contraction.
  • As the recurrent protests in Spain, Greece and Portugal show, there is a growing dissatisfaction in many of the EU member states with the austerity measures proposed by the European Union and applied by national governments.
  • Independent of their ideological orientation, most EU governments have applied the austerity policies proposed by the European Union and the International Monetary Fund. The traditional parties' lack of alternatives to austerity has generated a growing unease among local populations.
  • Such crises of legitimacy are often accompanied by an increase in euroscepticism, since many of these new parties blend anti-establishment rhetoric with opposition to the European Union or Germany's leadership of the bloc.
  • The combination of economic, social and political crises growing in Europe concerns Brussels for a number of reasons.
  • First, political uncertainty often generates instability in the financial markets.
  • Second, and perhaps most important, the economic crisis creates an environment conducive to the growth of extremist political views, both from the left and from the right.
  •  
    "In recent weeks, many European bureaucrats and national leaders have expressed optimism about the future of the economic situation in the European Union and have suggested that the worst of the crisis has passed. However, events over the past few days show that the crisis is not over and that it continues to have a deepening social impact on eurozone states."
anonymous

Huntington on Upheaval - 0 views

  • The very first sentences of Political Order have elicited anger from Washington policy elites for decades now -- precisely because they are so undeniable. "The most important political distinction among countries," Huntington writes, "concerns not their form of government but their degree of government." In other words, strong democracies and strong dictatorships have more in common than strong democracies and weak democracies.
  • hus, the United States always had more in common with the Soviet Union than with any fragile, tottering democracy in the Third World. This, in turn, is because order usually comes before freedom -- for without a reasonable degree of administrative order, freedom can have little value.
  • Huntington quotes the mid-20th century American journalist, Walter Lippmann: "There is no greater necessity for men who live in communities than that they be governed, self-governed if possible, well-governed if they are fortunate, but in any event, governed."
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  • Huntington, who died in 2008, asserts that America has little to teach a tumultuous world in transition because Americans are compromised by their own "happy history."
  • Americans assume a "unity of goodness": that all good things like democracy, economic development, social justice and so on go together. But for many places with different historical experiences based on different geographies and circumstances that isn't always the case.
  • many countries in the developing world are saddled either with few institutions or illegitimate ones at that: so that they have to build an administrative order from scratch. Quite a few of the countries affected by the Arab Spring are in this category. So American advice is more dubious than supposed, because America's experience is the opposite of the rest of the world.
  • For the more complex a society is, the more that institutions are required. The so-called public interest is really the interest in institutions. In modern states, loyalty is to institutions. To wit, Americans voluntarily pay taxes to the Internal Revenue Service and lose respect for those who are exposed as tax cheaters.
  • For without institutions like a judiciary, what and who is there to determine what exactly is right and wrong, and to enforce such distinctions?
  • What individual Arabs and Chinese really want is justice. And justice is ultimately the fruit of enlightened administration.
  • How do you know if a society has effective institutions? Huntington writes that one way is to see how good their militaries are. Because societies that have made war well -- Sparta, Rome, Great Britain, America -- have also been well-governed. For effective war-making requires deep organizations, which, in turn, requires trust and predictability.
  • The ability to fight in large numbers is by itself a sign of civilization. Arab states whose regimes have fallen -- Egypt, Libya, Syria -- never had very good state armies. But sub-state armies in the Middle East -- Hezbollah in Lebanon, the Mehdi Army in Iraq, the various rebel groups in Syria and militias in Libya -- have often fought impressively. Huntington might postulate that this is an indication of new political formations that will eventually replace post-colonial states.
  • Huntington implies that today's instability -- the riotous formation of new institutional orders -- is caused by urbanization and enlightenment. As societies become more urbanized, people come into close contact with strangers beyond their family groups, requiring the intense organization of police forces, sewage, street lighting, traffic and so forth.
  • The main drama of the Middle East and China over the past half-century, remember, has been urbanization, which has affected religion, morals and much else. State autocrats have simply been unable to keep up with dynamic social change.
  • He writes that large numbers of illiterate people in a democracy such as India's can actually be stabilizing, since illiterates have relatively few demands; but as literacy increase, voters become more demanding, and their participation in democratic groupings like labor unions goes up, leading to instability. An India of more and more literate voters may experience more unrest.
  • As for corruption, rather than something to be reviled, it can be a sign of modernization, in which new sources of wealth and power are being created even as institutions cannot keep up. Corruption can also be a replacement for revolution. "He who corrupts a system's police officers is more likely to identify with the system than he who storms the system's police stations."
  • In Huntington's minds, monarchies, rather than reactionary, can often be more dedicated to real reform than modernizing dictatorships. For the monarch has historical legitimacy, even as he feels the need to prove himself through good works; while the secular dictator sees himself as the vanquisher of colonialism, and thus entitled to the spoils of power.
  • Huntington thus helps a little to explain why monarchs such as those in Morocco, Jordan and Oman have been more humane than dictators such as those in Libya, Syria and Iraq.
  • As for military dictatorships, Huntington adds several twists.
  • He writes, "In the world of oligarchy, the soldier is a radical; in the middle-class world he is a participant and arbiter; as the mass society looms on the horizon he becomes the conservative guardian of the existing order.
  • Thus, paradoxically but understandably," he goes on, "the more backward a society is, the more progressive the role of its military..." And so he explains why Latin America and sub-Saharan Africa underwent a plethora of military coups during the middle decades of the Cold War: The officer corps often represented the most enlightened branch of society at the time.
  • Americans see the military as conservative only because of our own particular stage of development as a mass society.
  • The logic behind much of Huntington's narrative is that the creation of order -- not the mere holding of elections -- is progressive.
  • Only once order is established can popular pressure be constructively asserted to make such order less coercive and more institutionally subtle.
  • Precisely because we inhabit an era of immense social change, there will be continual political upheaval, as human populations seek to live under more receptive institutional orders. To better navigate the ensuing crises, American leaders would do well to read Huntington, so as to nuance their often stuffy lectures to foreigners about how to reform.
  •  
    "In 1968, Harvard political scientist Samuel P. Huntington published Political Order in Changing Societies. Forty-five years later, the book remains without question the greatest guide to today's current events. Forget the libraries of books on globalization, Political Order reigns supreme: arguably the most incisive, albeit impolite, work produced by a political scientist in the 20th century. If you want to understand the Arab Spring, the economic and social transition in China, or much else, ignore newspaper opinion pages and read Huntington."
anonymous

Gaming Tree - 0 views

  • Socially conscious games -- as well as educational ones that raise social issues -- have increasingly been making headlines.
  • But are kids and their parents paying attention? Apparently, they are. A 2008 Pew Internet & American Life Project study of 1,102 U.S. teens ages 12 to 17 found that 97 percent of them play some kind of digital game, with 44 percent saying they play games that teach them about "a problem in society." The games about the U.S. government have generated a significant following. Fifty-seven percent of students who played Do I Have a Right? -- one of the first free Web games iCivics released last yearin the classroom went on to play it, unprompted, at home. In addition, 550,000 unique players have played the three judicial branch games featured on Ourcourts.org more than 700,000 times, per iCivics.
  • These numbers have not gone unnoticed by philanthropic experts, especially with charitable giving taking a dip since the recession. But they don't want to reach adults only; they feel it's an opportunity to attract a younger audience, too.
  •  
    Can gamers bring about social change? AdWeek explores the question in their special digital issue on gaming. There's a desire among some gamers to show that the medium can do more than just entertain. I'm skeptical, but I'll reserve my judgment for now.
anonymous

In defence of equality - 0 views

  • In our book The Spirit Level, Kate Pickett and I demonstrated that, first, many problems which are more prevalent lower down the social ladder are worse in societies with bigger income differences, and second, that almost everyone would benefit from reduced inequality.
  • Writing in the August 2010 edition of Prospect, Matthew Sinclair from the Taxpayers Alliance claimed our research was “simply untrue.”
  • While Snowdon is described as a “public health researcher,” in actual fact he has no public health qualifications and appears never to have published research in a peer-reviewed journal. Instead, his main contribution to public health is a diatribe against tobacco control and a denial of the ill effects of second-hand smoke.
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  • What The Spirit Level shows is that more equal societies enjoy better physical and mental health, lower homicide rates, fewer drug problems, fewer teenage births, higher maths and literacy scores, higher standards of child wellbeing, less bullying in schools, lower obesity rates, and fewer people in prison.
  • This left us with 23 rich market societies. We took our data from the best sources, such as the World Health Organisation, the United Nations and the World Bank. To double-check our findings, we then repeated our analyses for the 50 US states, to see if more unequal states showed the same consistent tendency to have more of these health and social problems. In almost 30 different cross-national analyses, we show the same tendency for one problem after another to be significantly worse in societies with bigger income differences.
  • Our critics also ignore the fact that these relationships have been widely demonstrated by other researchers. For example, as early as 1993 in the Criminal Justice Review, Hsieh and Pugh reviewed 34 studies of income inequality and violent crime and found a consistent correlation between the two—the authors estimated that it would need 58 new studies which found no effect in order to overturn this result. But studies since then have continued to confirm the link.
  • Similarly, our review of research papers published in peer-reviewed journals found that the tendency for health to be worse in more unequal societies has been demonstrated well over 100 times (see Social Science and Medicine, 2006).
  •  
    "In response to recent criticism, the authors of The Spirit Level defends its claim that there is always a link between social problems and inequality." By Richard Wilkinson and Kate Pickett at Prospect Magazine on August 10, 2010.
anonymous

Sorkin vs. Zuckerberg - 0 views

  • What is important in Zuckerberg’s story is not that he’s a boy genius. He plainly is, but many are. It’s not that he’s a socially clumsy (relative to the Harvard elite) boy genius. Every one of them is. And it’s not that he invented an amazing product through hard work and insight that millions love. The history of American entrepreneurism is just that history, told with different technologies at different times and places. Instead, what’s important here is that Zuckerberg’s genius could be embraced by half-a-billion people within six years of its first being launched, without (and here is the critical bit) asking permission of anyone. The real story is not the invention. It is the platform that makes the invention sing. Zuckerberg didn’t invent that platform. He was a hacker (a term of praise) who built for it. And as much as Zuckerberg deserves endless respect from every decent soul for his success, the real hero in this story doesn’t even get a credit. It’s something Sorkin doesn’t even notice. For comparison’s sake, consider another pair of Massachusetts entrepreneurs, Tom First and Tom Scott. After graduating from Brown in 1989, they started a delivery service to boats on Nantucket Sound. During their first winter, they invented a juice drink. People liked their juice. Slowly, it dawned on First and Scott that maybe there was a business here. Nantucket Nectars was born. The two Toms started the long slog of getting distribution. Ocean Spray bought the company. It later sold the business to Cadbury Schweppes. At each step after the first, along the way to giving their customers what they wanted, the two Toms had to ask permission from someone. They needed permission from a manufacturer to get into his plant. Permission from a distributor to get into her network. And permission from stores to get before the customer. Each step between the idea and the customer was a slog. They made the slog, and succeeded. But many try to make that slog and fail. Sometimes for good reasons. Sometimes not. Zuckerberg faced no such barrier. For less than $1,000, he could get his idea onto the Internet. He needed no permission from the network provider. He needed no clearance from Harvard to offer it to Harvard students. Neither with Yale, or Princeton, or Stanford. Nor with every other community he invited in. Because the platform of the Internet is open and free, or in the language of the day, because it is a “neutral network,” a billion Mark Zuckerbergs have the opportunity to invent for the platform.
    • anonymous
       
      This is akin to the conceit that genius and innovation happens in compartments instead of in an ecosystem. For instance: We value and treasure our freedom, but the freedom we idolize (self determination) comes because there are a plethora of institutions (law, legal, federal and local governments) that make the freedom possible. In other words, there's a bit of social architecture that drives opportunity. Tangent: Libertarians and Objectivists dream of how much *better* it would be if the government simply rolled out of key industries and responsibilities. But instead of Galt's Gulch, we'd get Somalia.
  • Zuckerberg is a rightful hero of our time. I want my kids to admire him. To his credit, Sorkin gives him the only lines of true insight in the film: In response to the twins’ lawsuit, he asks, does “a guy who makes a really good chair owe money to anyone who ever made a chair?”
  •  
    "'The Social Network' is wonderful entertainment, but its message is actually kind of evil." By Lawrence Lessig at The New Republic on October 1, 2010.
anonymous

New Statesman - Facebook, capitalism and geek entitlement - 0 views

  • The film's basic formula is the familiar blogs-to-bling-and-bitches redemptive parable of male geek culture, with the added bonus that it happens to be based on real events. The protagonist, Facebook's co-founder Mark Zuckerberg, is a brilliant 19-year-old coder. His painful social ineptitude, as told here, gets him savagely dumped by his girlfriend, after which, drunk and misunderstood, he sets up a website to rate the physical attractiveness of the women undergraduates of Harvard, thus exacting his revenge upon the female sex that has so cruelly spurned his obvious genius.
  • The Social Network is an expertly crafted and exhaustively modern film, and one of its more pertinent flashpoints is the reminder that a resource that redefined the human interactions of 500 million people across the globe was germinated in an act of vengeful misogyny.
  • This is no reflection on the personal moral compass of Sorkin, who is no misogynist, but who understands that in rarefied American circles of power and privilege, women are still stage-hands, and objectification is hard currency.
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  • This is what Facebook is about, and ultimately what capitalist realism is about: life as reducible to one giant hot-or-not contest, with adverts.
  • There is a certain type of nerd entitlement that is all too easily co-opted into a modern mythology of ruthless capitalist exploitation, in which the acquisition of wealth and status at all costs is phrased as a cheeky way of getting one's own back on those kids who were mean to you at school.
  • The protagonist is invariably white and rich and always male -- Hollywood cannot countenance female nerds, other than as minor characters who transform into pliant sexbots as soon as they remove their glasses -- but these privileges are as naught compared to the injustice life has served him by making him shy, spotty and interested in Star Trek. He has been wronged, and he has every right to use his l33t skills to bend the engine of humanity to his purpose.
  • For me, being a geek is about community, energy and celebration of difference -- but in the sterile fairytale of contemporary capitalism, successful geekery is about the rewards of power and the usefulness of commodifying other humans as a sum of likes, interests and saleable personal data.
  •  
    "The Social Network is an elegant psychodrama of contemporary economics. " By Laurie Penny at New Statesman on October 1, 2010. Referred to by Nicholas Schiller.
anonymous

The Real New Deal - 0 views

  • Money, an item not necessarily intrinsically desirable or usable but serving as a stand-in for the complex wants and valuations of untold individuals, is an unnatural idea that required centuries to take hold.
  • Endism, especially when attached to the sort of nouns we were once prone to capitalize, can become a bad habit when used as anything more than a literary device to call attention to events worthy of it. The Great Depression was certainly worthy of its capital letters; even if nothing exactly ended, plenty changed. But what? And with what, if any relevance for present circumstances?
    • anonymous
       
      Hat Tip to Robin Hanson at Overcoming Bias for pointing me toward this article. http://www.overcomingbias.com/2010/03/great-depression.html
    • anonymous
       
      And this 'endism' is quite present in the current anger over health-care reform. It's not merely a loss, it is elevated to historical travesty.
  • Whether we realize it or not, we are still reacting to those portrayals more than we are to the actions themselves. What really changed was the way the world’s elite thought of themselves and their institutions.
    • anonymous
       
      This falls under the category of "lies we tell ourselves." Of course, less cynically, we can call it the standard act of national mythmaking. It's akin to the fact that humans remember what they *need* to remember, not what was.
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  • In crude political form, this Whiggish inclination toward progress was encapsulated in the functionalist view retailed by Norman Angell around the turn of the last century, which held that countries that traded with each other would develop economic self-interests too intertwined to justify war.
    • anonymous
       
      This strikes me as something generally true, but not necessarily a truism. Libertarians will often postulate the "trade kills war" argument, without appreciating that it's not an iron-clad law or even - necessarily - the most likely outcome. It strikes me as more a naive, though admirable, conceit of what they *wish* as opposed to what IS.
  • If markets had come to play a more prominent part in the industrial West, it was not because markets had just been invented. It was because social and political systems had evolved in which powerful elites were willing to tolerate institutions that diffused economic power and weakened the state at the expense of private enterprise. This was the core meaning of liberalism in its original formulation.
  • The Crash of 1929, the subsequent economic slump and, particularly, the duration of the Depression took most contemporaries completely by surprise. Indeed, the uniquely severe catastrophe of the 1930s is so unusual that modern analysts should be cautious in drawing lessons from it.
    • anonymous
       
      One way in which we fundamentally misunderstand a time period is in projecting our current political definitions on a period in gross violation of the political norms of the time.
  • Conventional wisdom tends to treat President Hoover as a clueless advocate of laissez faire who refused to stimulate the economy in the dramatic downturn. Franklin Roosevelt, on the other hand, was the heroic leader who both saved the day and transformed the American economy through his promotion of the New Deal. Conventional wisdom is still very much with us.
  • Hoover did not advocate “do-nothing” policies.
  • Roosevelt’s interventions were neither as thorough nor as systematically revolutionary as they have often been portrayed.
  • Above all, FDR’s worst policies were animated by a desire to repress business, by distrust of competition and a general disdain for the market. Those were, of course, precisely the qualities that made his policies extremely popular. FDR’s economic policies scored mixed successes at best, but his political strategy succeeded by any measure long before U.S. entry into World War II, and subsequent generations have not ceased to conflate the former with the latter.
  • So thoroughly has the West taken for granted the triumph of the more abstract liberal nation-state that its denizens must remind themselves how fragile its origins were and how little emotional loyalty it has commanded.
  • Even in America, where visceral support for individualism and self-reliance remains strong, this has always been so. In good times, economic systems are supported by inertia and utilitarian compromise that appeal to the broad center. In hard times abstract convictions tend to melt away. The American preference for the free market is neither as common nor as “American” as many suppose.
    • anonymous
       
      But our identities are inventions and are mostly divorced from a close reading of history. As America nears a genuine crisis point, the current phenomenon of the "Tea Party" is going to be less relevant. It will eventually become "quaint" and irrelevant. At least, that is my hope (and current Generational prediction).
  • Seen as a reversion to older habits, the odd mix of regulation, make-work, intervention, protectionism, nationalism and (as in Germany and elsewhere) anti-Semitism that characterized the Western policy response to the Depression suddenly seems less like an incoherent flaying in all directions and more like elements of a uniform retrenchment in social relations.
    • anonymous
       
      Which is why the narratives don't stick on a closer read.
  • It seems odd that humans in their day-to-day interactions think of buying or selling as the most natural of activities, recreating markets unprompted in the most dismal of circumstances. Yet there is something about the ideology of a market system, or of any generally decentralized order, that seems inconceivable to most people.
  • Economists have a hard time dealing with nationalism.
    • anonymous
       
      Again: Nationalism - in its current form - is a modern social invention.
  • A severe economic crisis implicates the entire system of political economy, regardless of how narrow the source of that crisis may be. Thus those with long-simmering fears and resentments—as well as those with more venal or ideological motives—see crisis as an opportunity to strike out at the system.
  • Anti-market movements, whether pushed by Populists or Progressives in the United States or the various forms of socialism in Europe, took for granted that vigorous political action was the only way to impose order and bring social harmony to an unfettered market economy. But the specific remedies and the zeal with which reformers sought to repudiate the past belie ideological origins more than technocratic ones.
  • He had mastered the politics of trust.
  • Roosevelt deserves credit for largely resisting these ideological enthusiasms. On balance, he dealt with the crisis pragmatically and forthrightly.
  • If FDR had left out the high-flying rhetoric and only pursued an attenuated New Deal—namely the financial policies that economists now agree truly helped us out of the Depression—would he be as celebrated a figure as he is today? Not likely.
  • The end of World War II furnishes still more evidence that political images leave a wider trace in historical memory than actual policies.
  • Thanks to Truman we were once again moving in the direction of a competitive, open-access market economy. Had there been a lingering recession and a continuation of older, harmful regulations into the 1946–48 period, Truman, not his predecessor, would have been blamed. Yet Truman’s stellar reputation today owes nothing to his economic achievements, which most of those who today praise his foreign policy acumen know nothing about.
    • anonymous
       
      I'll raise my hand on this one. Even with my better-than-nothing knowledge of US history, I knew nothing about this.
    • anonymous
       
      They weren't in the stories I learned about.
  • In any event, we would do well to bear in mind how important, yet also how unnatural, the modern system of impersonal finance and trade really is. If we would preserve that system as a basis for our prosperity, we must recognize that many of the regulatory solutions we apply to our current crisis may themselves induce responses that can generate new crises. History suggests, too, that fears of the market and the political pressures it generates will wax and wane as crises deepen or ease. Patience and prudence are, therefore, the best watchwords for government amid the many trials and errors we will surely endure in the months, and perhaps years, ahead.
  • Indeed, many of his interventions—for example, his attempts to balance the budget by raising taxes in 1932, and strengthening support for the gold standard—worsened the economy for reasons orthodox theory would have predicted. On the other hand, Hoover initiated the Reconstruction Finance Corporation to support failed banks, to fund public works, subsidize state relief and otherwise engage in policies that presaged the widely praised interventions of the Roosevelt era.
  • Economic historians stress that it was in the realm of monetary and not fiscal policy that FDR had the most success.
    • anonymous
       
      I can't even tell you the difference between those two things. I would venture to guess that a *lot* of people with strong convictions about government intrusion can't either.
  • What is one to make of the widespread popularity of protectionism and high tariffs throughout the Western world? Nationalist policies of every stripe, whether in the form of cartelization of industry in the United States or of more widespread regulation and control in Europe, especially in Germany, were not natural accompaniments to any neutral, technocratic view of recovery.
  • large-scale systems based on anonymous exchange were a recent phenomenon.
    • anonymous
       
      We have a stubborn inability to understand that businesses are technologies like anything else we create. A chief conceit of neocons is the idea that our current economic system is somehow closer to a blank slate than those with more government power. Since it is our corporate system that is the "newish" thing, it puts supporters on the right in the uncomfortable position of being Progressives of at least one stripe.
  • The current Chair of the Council of Economic Advisors, Christina Romer, wrote in her widely cited article, “What Ended the Great Depression?” (1992), that “unusual fiscal policy contributed almost nothing to the recovery from the Great Depression.” The consensus view is that FDR’s policy success was the abandonment of the gold standard in 1933.
  • Harry Truman left office in 1953 a very unpopular man. Almost no one at the time gave him credit for overseeing a period of rapid recovery that was much broader and more impressive than anything that happened under Roosevelt’s tenure—and this at a time when most economists predicted a deep postwar recession.
anonymous

Conversational Narcissism: How to Avoid It - 3 views

  • In The Pursuit of Attention, sociologist Charles Derber shares the fascinating results of a study done on face-to-face interactions, in which researchers watched 1,500 conversations unfold and recorded how people traded and vied for attention.
  • Dr. Derber discovered that despite good intentions, and often without being aware of it, most people struggle with what he has termed “conversational narcissism.”
  • Conversational narcissists always seek to turn the attention of others to themselves.
  • ...20 more annotations...
  • it takes much more subtle forms, and we’re all guilty of it from time to time.
  • the enjoyment of a good conversation is becoming more of a rarity these days. In our time of cell phones, text messaging, and emails, we’re having less face-to-face interactions, and thus when we do meet up with people in the flesh, our social skills can be a bit rusty.
  • A good conversation is an interesting thing; it can’t be a solely individual endeavor—it has to be a group effort.
  • Each individual has to sacrifice a little for the benefit of the group as a whole and ultimately, to increase the pleasure each individual receives.
  • During a conversation, each person makes initiatives. These initiatives can either be attention-giving or attention-getting. Conversational narcissists concentrate more on the latter because they are focused on gratifying their own needs. Attention-getting initiatives can take two forms: active and passive.
  • The response a person gives to what someone says can take two forms: the shift-response and the support-response.
  • The shift-response if often very subtle. People put in a nice transition to disguise it by prefacing their response with something like, “That’s interesting,” “Really? “I can see that,” right before they make a comment about themselves.
  • Most conversational narcissists–careful not to appear rude– will mix their support and shift responses together, using just a few more shift-responses, until the topic finally shifts entirely to them. 
  • it’s fine to share things about yourself, as long as you loop the conversation back to the person who initiated the topic.
  • Conversational narcissism can take an even subtler form. Instead of interjecting about themselves and trying to initiate a new topic, conversational narcissists can simply withhold their support-responses until the other person’s topic withers away and they can take the floor.
  • three forms support-responses can take
  • Background acknowledgments
  • Supportive assertions
  • Supportive questions
  • A conversational narcissist can kill someone’s story dead in its tracks by withholding these support-responses, especially by not asking any questions.
  • Conversationalist narcissists will also show their disinterest in the speaker by delaying their background acknowledgments
  • Good conversationalists place their background acknowledgments in just the rights spots, in the small natural pauses in the conversation.
  • The narcissist tries to adhere to social expectations by giving the speaker some cursory acknowledgments, but they’re not really listening, and so they throw them in there just a few seconds off.
  • one more form of conversational narcissism to avoid is the “Well, enough about me, I want to hear more about you!” tactic.
  • Once someone introduces a topic, your job is to draw out the narrative from them by giving them encouragement in the form of background acknowledgments and supportive assertions, and moving their narrative along by asking supportive questions.
  •  
    "In a time where a lot of the old social supports people relied upon have disappeared, people have become starved for attention. They bring this hunger to their conversations, which they see as competitions in which the winner is able to keep the attention on themselves as much as possible. And this is turning the skill of conversation-making into a lost art."
  •  
    I think this sort of competitive behavior in conversations has existed far longer than modern communications devices. I have mys suspicions about this claim: "In our time of cell phones, text messaging, and emails, we're having less face-to-face interactions, and thus when we do meet up with people in the flesh, our social skills can be a bit rusty." There are plenty of cultures, even fairly large subcultures within the US, that take this "narcissism" as a given. As a Midwesterner (where talking in general can almost seem rude), I experience this a lot. But there are also things like Spanish classes that teach students to swap "um" and "er" for "eh," and to make that sound loung and loud to avoid "giving away" the attention in a conversation.
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