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He knows that what his network is doing is against the national interest. He has just enough conscience to be aware that it is “terrible,” but not nearly enough to stop doing it. It might impair shareholder value, after all.

Mr. Moonves is suggesting that there is no difference in principle between entertainment and news. Both should be judged by the same standard—ratings. If policy speeches don’t attract large enough audiences, cut to a Trump rally.

If the leading purveyors of broadcast journalism make no distinction between news and entertainment, then who can blame viewers for seeing no difference between entertainment and politics?

American politicians and parties have used entertainment to draw audiences for the better part of two centuries. But there used to be countervailing forces, including prestigious broadcast news organizations. Not anymore. Once these organizations served as gatekeepers; now they are open-door enablers.

They are all in the grip of the same misunderstanding, that their business begins and ends with maximizing shareholder value.

They may believe that this is a statutory requirement or a fiduciary duty. If so, they are mistaken

It is Milton Friedman’s theory. “There is one and only one social responsibility of business,” he wrote in “Capitalism and Freedom,” “to use its resources and engage in activities designed to increase its profits.”

corporate law imposes no enforceable legal duty to maximize either profits or share prices.

And it is not politically sustainable. This is the clear meaning of the 2016 presidential election.

As a policy argument, Friedman’s thesis flunks key empirical tests

during the 1970s, inflation, recession, a stagnant stock market and rising competition from abroad created an opening for Friedman’s theory, which soon dominated corporate boardrooms.

In the name of maximizing shareholder value, corporations moved plants and jobs around the world, paid the lowest wages they could get away with, and scheduled work assignments to maintain managerial “flexibility,” whatever the consequences for workers’ families. Meanwhile, their lobbyists engineered a myriad of special interest breaks in the corporate tax code.

Now we can see what four decades of pursuing shareholder value at the expense of everything else has yielded

Public confidence in corporations is at rock-bottom, and public anger is sky-high

The revolt against the corporate economic agenda—free trade, a generous immigration policy, lower corporate taxes and the rest—is sweeping the country.

As the Republican rank and file has turned against corporations and New Democrats have given ground to left-wing populists, big business has been left politically homeless.

It will take corporate America a long time to climb out of this self-created hole.

Its first step should be to back long-overdue proposals for improving workers’ lives and incomes. Paid family leave is an idea whose time has come; so is a catch-up increase in the federal minimum wage; so are stable and predictable schedules for part-time workers.

Allowing workers to share in profits and productivity increases would be another good step.

Above all, corporate leaders should grasp the distinction between immediate gain and self-interest rightly understood. Pushing for the last increment of profit over the next quarter and the one after that comes at the expense of the strategies that can leave firms best positioned for the future.

America needs a new generation of corporate statesmen.

Such trading on information originating outside the company is generally not covered by insider trading regulation.

Insider trading is quite different from market manipulation, disclosure of false or misleading information to the market, or direct expropriation of the corporation’s wealth by insiders.

Regulation of insider trading began in the United States at the turn of the twentieth century, when judges in several states became willing to rescind corporate insiders’ transactions with uninformed shareholders.

One of the earliest (and unsuccessful) federal attempts to regulate insider trading occurred after the 1912–1913 congressional hearings before the Pujo Committee, which concluded that “the scandalous practices of officers and directors in speculating upon inside and advance information as to the action of their corporations may be curtailed if not stopped.”

The Securities Acts of 1933–1934, passed by the U.S. Congress in the aftermath of the stock market crash, though aimed primarily at prohibiting fraud and market manipulation, also targeted insider trading.

As of 2004, at least ninety-three countries, the vast majority of nations that possess organized securities markets, had laws regulating insider trading

Several factors explain the rapid emergence of such regulation, particularly during the last twenty years: namely, the growth of the securities industry worldwide, pressures to make national securities markets look more attractive in the eyes of outside investors, and the pressure the SEC exerted on foreign lawmakers and regulators to increase the effectiveness of domestic enforcement by identifying and punishing offenders and their associates operating outside the United States.

Many researchers argue that trading on inside information is a zero-sum game, benefiting insiders at the expense of outsiders. But most outsiders who bought from or sold to insiders would have traded anyway, and possibly at a worse price (Manne 1970). So, for example, if the insider sells stock because he expects the price to fall, the very act of selling may bring the price down to the buyer.

A controversial case is that of abstaining from trading on the basis of inside information (Fried 2003).

There is little disagreement that insider trading makes securities markets more efficient by moving the current market price closer to the future postdisclosure price. In other words, insiders’ transactions, even if they are anonymous, signal future price trends to others and make the current stock price reflect relevant information sooner.

Accurately priced stocks give valuable signals to investors and ensure more efficient allocation of capital.

The controversial question is whether insider trading is more or less effective than public disclosure.

Insider trading’s advantage is that it introduces individual profit motives, does not directly reveal sensitive intercorporate information, and mitigates the management’s aversion to disclosing negative information (

Probably the most controversial issue in the economic analysis of insider trading is whether it is an efficient way to pay managers for their entrepreneurial services to the corporation. Some researchers believe that insider trading gives managers a monetary incentive to innovate, search for, and produce valuable information, as well as to take risks that increase the firm’s value (Carlton and Fischel 1983; Manne 1966).

Another economic argument for insider trading is that it provides efficient compensation to holders of large blocks of stock

A common contention is that the presence of insider trading decreases public confidence in, and deters many potential investors from, equity markets, making them less liquid (Loss 1970).

Empirical research generally supports skepticism that regulation of insider trading has been effective in either the United States or internationally, as evidenced by the persistent trading profits of insiders, behavior of stock prices around corporate announcements, and relatively infrequent prosecution rates (Bhattacharya and Daouk 2002; Bris 2005).

Despite numerous and extensive debates, economists and legal scholars do not agree on a desirable government policy toward insider trading. On the one hand, absolute information parity is clearly infeasible, and information-based trading generally increases the pricing efficiency of financial markets. Information, after all, is a scarce economic good that is costly to produce or acquire, and its subsequent use and dissemination are difficult to control. On the other hand, insider trading, as opposed to other forms of informed trading, may produce unintended adverse consequences for the functioning of the corporate enterprise, the market-wide system of publicly mandated disclosure, or the market for information.

The result has been a hidden revolution in how information is produced, circulated and acted upon

The world’s liberal democracies now confront a tragedy of the “un-commons.” Information spaces that people assume to be public are strictly ruled by private commercial interests for maximum profit.

The internet as a self-regulating market has been revealed as a failed experiment. Surveillance capitalism leaves a trail of social wreckage in its wake: the wholesale destruction of privacy, the intensification of social inequality, the poisoning of social discourse with defactualized information, the demolition of social norms and the weakening of democratic institutions.

These social harms are not random. They are tightly coupled effects of evolving economic operations. Each harm paves the way for the next and is dependent on what went before.

There is no way to escape the machine systems that surveil u

All roads to economic and social participation now lead through surveillance capitalism’s profit-maximizing institutional terrain, a condition that has intensified during nearly two years of global plague.

Will Facebook’s digital violence finally trigger our commitment to take back the “un-commons”?

Will we confront the fundamental but long ignored questions of an information civilization: How should we organize and govern the information and communication spaces of the digital century in ways that sustain and advance democratic values and principles?

Mark Zuckerberg’s start-up did not invent surveillance capitalism. Google did that. In 2000, when only 25 percent of the world’s information was stored digitally, Google was a tiny start-up with a great search product but little revenue.

By 2001, in the teeth of the dot-com bust, Google’s leaders found their breakthrough in a series of inventions that would transform advertising. Their team learned how to combine massive data flows of personal information with advanced computational analyses to predict where an ad should be placed for maximum “click through.”

Google’s scientists learned how to extract predictive metadata from this “data exhaust” and use it to analyze likely patterns of future behavior.

Prediction was the first imperative that determined the second imperative: extraction.

Lucrative predictions required flows of human data at unimaginable scale. Users did not suspect that their data was secretly hunted and captured from every corner of the internet and, later, from apps, smartphones, devices, cameras and sensors

User ignorance was understood as crucial to success. Each new product was a means to more “engagement,” a euphemism used to conceal illicit extraction operations.

When asked “What is Google?” the co-founder Larry Page laid it out in 2001,

“Storage is cheap. Cameras are cheap. People will generate enormous amounts of data,” Mr. Page said. “Everything you’ve ever heard or seen or experienced will become searchable. Your whole life will be searchable.”

Instead of selling search to users, Google survived by turning its search engine into a sophisticated surveillance medium for seizing human data

Company executives worked to keep these economic operations secret, hidden from users, lawmakers, and competitors. Mr. Page opposed anything that might “stir the privacy pot and endanger our ability to gather data,” Mr. Edwards wrote.

As recently as 2017, Eric Schmidt, the executive chairman of Google’s parent company, Alphabet, acknowledged the role of Google’s algorithmic ranking operations in spreading corrupt information. “There is a line that we can’t really get across,” he said. “It is very difficult for us to understand truth.” A company with a mission to organize and make accessible all the world’s information using the most sophisticated machine systems cannot discern corrupt information.

This is the economic context in which disinformation wins

In March 2008, Mr. Zuckerberg hired Google’s head of global online advertising, Sheryl Sandberg, as his second in command. Ms. Sandberg had joined Google in 2001 and was a key player in the surveillance capitalism revolution. She led the build-out of Google’s advertising engine, AdWords, and its AdSense program, which together accounted for most of the company’s $16.6 billion in revenue in 2007.

A Google multimillionaire by the time she met Mr. Zuckerberg, Ms. Sandberg had a canny appreciation of Facebook’s immense opportunities for extraction of rich predictive data. “We have better information than anyone else. We know gender, age, location, and it’s real data as opposed to the stuff other people infer,” Ms. Sandberg explained

The company had “better data” and “real data” because it had a front-row seat to what Mr. Page had called “your whole life.”

Facebook paved the way for surveillance economics with new privacy policies in late 2009. The Electronic Frontier Foundation warned that new “Everyone” settings eliminated options to restrict the visibility of personal data, instead treating it as publicly available information.

Mr. Zuckerberg “just went for it” because there were no laws to stop him from joining Google in the wholesale destruction of privacy. If lawmakers wanted to sanction him as a ruthless profit-maximizer willing to use his social network against society, then 2009 to 2010 would have been a good opportunity.

Facebook was the first follower, but not the last. Google, Facebook, Amazon, Microsoft and Apple are private surveillance empires, each with distinct business models.

In 2021 these five U.S. tech giants represent five of the six largest publicly traded companies by market capitalization in the world.

As we move into the third decade of the 21st century, surveillance capitalism is the dominant economic institution of our time. In the absence of countervailing law, this system successfully mediates nearly every aspect of human engagement with digital information

Today all apps and software, no matter how benign they appear, are designed to maximize data collection.

Historically, great concentrations of corporate power were associated with economic harms. But when human data are the raw material and predictions of human behavior are the product, then the harms are social rather than economic

The difficulty is that these novel harms are typically understood as separate, even unrelated, problems, which makes them impossible to solve. Instead, each new stage of harm creates the conditions for the next stage.

Fifty years ago the conservative economist Milton Friedman exhorted American executives, “There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” Even this radical doctrine did not reckon with the possibility of no rules.

With privacy out of the way, ill-gotten human data are concentrated within private corporations, where they are claimed as corporate assets to be deployed at will.

The sheer size of this knowledge gap is conveyed in a leaked 2018 Facebook document, which described its artificial intelligence hub, ingesting trillions of behavioral data points every day and producing six million behavioral predictions each second.

Next, these human data are weaponized as targeting algorithms, engineered to maximize extraction and aimed back at their unsuspecting human sources to increase engagement

Targeting mechanisms change real life, sometimes with grave consequences. For example, the Facebook Files depict Mr. Zuckerberg using his algorithms to reinforce or disrupt the behavior of billions of people. Anger is rewarded or ignored. News stories become more trustworthy or unhinged. Publishers prosper or wither. Political discourse turns uglier or more moderate. People live or die.

Occasionally the fog clears to reveal the ultimate harm: the growing power of tech giants willing to use their control over critical information infrastructure to compete with democratically elected lawmakers for societal dominance.

when it comes to the triumph of surveillance capitalism’s revolution, it is the lawmakers of every liberal democracy, especially in the United States, who bear the greatest burden of responsibility. They allowed private capital to rule our information spaces during two decades of spectacular growth, with no laws to stop it.

All of it begins with extraction. An economic order founded on the secret massive-scale extraction of human data assumes the destruction of privacy as a nonnegotiable condition of its business operations.

We can’t fix all our problems at once, but we won’t fix any of them, ever, unless we reclaim the sanctity of information integrity and trustworthy communications

The abdication of our information and communication spaces to surveillance capitalism has become the meta-crisis of every republic, because it obstructs solutions to all other crises.

Neither Google, nor Facebook, nor any other corporate actor in this new economic order set out to destroy society, any more than the fossil fuel industry set out to destroy the earth.

like global warming, the tech giants and their fellow travelers have been willing to treat their destructive effects on people and society as collateral damage — the unfortunate but unavoidable byproduct of perfectly legal economic operations that have produced some of the wealthiest and most powerful corporations in the history of capitalism.

Where does that leave us?

Democracy is the only countervailing institutional order with the legitimate authority and power to change our course. If the ideal of human self-governance is to survive the digital century, then all solutions point to one solution: a democratic counterrevolution.

instead of the usual laundry lists of remedies, lawmakers need to proceed with a clear grasp of the adversary: a single hierarchy of economic causes and their social harms.

We can’t rid ourselves of later-stage social harms unless we outlaw their foundational economic causes

This means we move beyond the current focus on downstream issues such as content moderation and policing illegal content. Such “remedies” only treat the symptoms without challenging the illegitimacy of the human data extraction that funds private control over society’s information spaces

Similarly, structural solutions like “breaking up” the tech giants may be valuable in some cases, but they will not affect the underlying economic operations of surveillance capitalism.

Instead, discussions about regulating big tech should focus on the bedrock of surveillance economics: the secret extraction of human data from realms of life once called “private.

No secret extraction means no illegitimate concentrations of knowledge about people. No concentrations of knowledge means no targeting algorithms. No targeting means that corporations can no longer control and curate information flows and social speech or shape human behavior to favor their interests

the sober truth is that we need lawmakers ready to engage in a once-a-century exploration of far more basic questions:

How should we structure and govern information, connection and communication in a democratic digital century?

What new charters of rights, legislative frameworks and institutions are required to ensure that data collection and use serve the genuine needs of individuals and society?

What measures will protect citizens from unaccountable power over information, whether it is wielded by private companies or governments?

The corporation that is Facebook may change its name or its leaders, but it will not voluntarily change its economics.

By the end of World War II, however, American corporations were facing severe talent shortages. Their senior executives were growing old, and a dearth of hiring from the Depression through the war had resulted in a shortfall of able, well-trained managers. Finding people who had the potential to rise quickly through the ranks became an overriding preoccupation of American businesses. They began to devise a formal hiring-and-management system based in part on new studies of human behavior, and in part on military techniques developed during both world wars, when huge mobilization efforts and mass casualties created the need to get the right people into the right roles as efficiently as possible. By the 1950s, it was not unusual for companies to spend days with young applicants for professional jobs, conducting a battery of tests, all with an eye toward corner-office potential.

But companies abandoned their hard-edged practices for another important reason: many of their methods of evaluation turned out not to be very scientific.

this regime, so widespread in corporate America at mid-century, had almost disappeared by 1990. “I think an HR person from the late 1970s would be stunned to see how casually companies hire now,”

Many factors explain the change, he said, and then he ticked off a number of them: Increased job-switching has made it less important and less economical for companies to test so thoroughly. A heightened focus on short-term financial results has led to deep cuts in corporate functions that bear fruit only in the long term. The Civil Rights Act of 1964, which exposed companies to legal liability for discriminatory hiring practices, has made HR departments wary of any broadly applied and clearly scored test that might later be shown to be systematically biased.

about a quarter of the country’s corporations were using similar tests to evaluate managers and junior executives, usually to assess whether they were ready for bigger roles.

He has encouraged the company’s HR executives to think about applying the games to the recruitment and evaluation of all professional workers.

Knack makes app-based video games, among them Dungeon Scrawl, a quest game requiring the player to navigate a maze and solve puzzles, and Wasabi Waiter, which involves delivering the right sushi to the right customer at an increasingly crowded happy hour. These games aren’t just for play: they’ve been designed by a team of neuroscientists, psychologists, and data scientists to suss out human potential. Play one of them for just 20 minutes, says Guy Halfteck, Knack’s founder, and you’ll generate several megabytes of data, exponentially more than what’s collected by the SAT or a personality test. How long you hesitate before taking every action, the sequence of actions you take, how you solve problems—all of these factors and many more are logged as you play, and then are used to analyze your creativity, your persistence, your capacity to learn quickly from mistakes, your ability to prioritize, and even your social intelligence and personality. The end result, Halfteck says, is a high-resolution portrait of your psyche and intellect, and an assessment of your potential as a leader or an innovator.

When the results came back, Haringa recalled, his heart began to beat a little faster. Without ever seeing the ideas, without meeting or interviewing the people who’d proposed them, without knowing their title or background or academic pedigree, Knack’s algorithm had identified the people whose ideas had panned out. The top 10 percent of the idea generators as predicted by Knack were in fact those who’d gone furthest in the process.

What Knack is doing, Haringa told me, “is almost like a paradigm shift.” It offers a way for his GameChanger unit to avoid wasting time on the 80 people out of 100—nearly all of whom look smart, well-trained, and plausible on paper—whose ideas just aren’t likely to work out.

Aptitude, skills, personal history, psychological stability, discretion, loyalty—companies at the time felt they had a need (and the right) to look into them all. That ambit is expanding once again, and this is undeniably unsettling. Should the ideas of scientists be dismissed because of the way they play a game? Should job candidates be ranked by what their Web habits say about them? Should the “data signature” of natural leaders play a role in promotion? These are all live questions today, and they prompt heavy concerns: that we will cede one of the most subtle and human of skills, the evaluation of the gifts and promise of other people, to machines; that the models will get it wrong; that some people will never get a shot in the new workforce.

scoring distance from work could violate equal-employment-opportunity standards. Marital status? Motherhood? Church membership? “Stuff like that,” Meyerle said, “we just don’t touch”—at least not in the U.S., where the legal environment is strict. Meyerle told me that Evolv has looked into these sorts of factors in its work for clients abroad, and that some of them produce “startling results.”

consider the alternative. A mountain of scholarly literature has shown that the intuitive way we now judge professional potential is rife with snap judgments and hidden biases, rooted in our upbringing or in deep neurological connections that doubtless served us well on the savanna but would seem to have less bearing on the world of work.

We may like to think that society has become more enlightened since those days, and in many ways it has, but our biases are mostly unconscious, and they can run surprisingly deep. Consider race. For a 2004 study called “Are Emily and Greg More Employable Than Lakisha and Jamal?,” the economists Sendhil Mullainathan and Marianne Bertrand put white-sounding names (Emily Walsh, Greg Baker) or black-sounding names (Lakisha Washington, Jamal Jones) on similar fictitious résumés, which they then sent out to a variety of companies in Boston and Chicago. To get the same number of callbacks, they learned, they needed to either send out half again as many résumés with black names as those with white names, or add eight extra years of relevant work experience to the résumés with black names.

a sociologist at Northwestern, spent parts of the three years from 2006 to 2008 interviewing professionals from elite investment banks, consultancies, and law firms about how they recruited, interviewed, and evaluated candidates, and concluded that among the most important factors driving their hiring recommendations were—wait for it—shared leisure interests.

Lacking “reliable predictors of future performance,” Rivera writes, “assessors purposefully used their own experiences as models of merit.” Former college athletes “typically prized participation in varsity sports above all other types of involvement.” People who’d majored in engineering gave engineers a leg up, believing they were better prepared.

the prevailing system of hiring and management in this country involves a level of dysfunction that should be inconceivable in an economy as sophisticated as ours. Recent survey data collected by the Corporate Executive Board, for example, indicate that nearly a quarter of all new hires leave their company within a year of their start date, and that hiring managers wish they’d never extended an offer to one out of every five members on their team

In the late 1990s, as these assessments shifted from paper to digital formats and proliferated, data scientists started doing massive tests of what makes for a successful customer-support technician or salesperson. This has unquestionably improved the quality of the workers at many firms.

In 2010, however, Xerox switched to an online evaluation that incorporates personality testing, cognitive-skill assessment, and multiple-choice questions about how the applicant would handle specific scenarios that he or she might encounter on the job. An algorithm behind the evaluation analyzes the responses, along with factual information gleaned from the candidate’s application, and spits out a color-coded rating: red (poor candidate), yellow (middling), or green (hire away). Those candidates who score best, I learned, tend to exhibit a creative but not overly inquisitive personality, and participate in at least one but not more than four social networks, among many other factors. (Previous experience, one of the few criteria that Xerox had explicitly screened for in the past, turns out to have no bearing on either productivity or retention

When Xerox started using the score in its hiring decisions, the quality of its hires immediately improved. The rate of attrition fell by 20 percent in the initial pilot period, and over time, the number of promotions rose. Xerox still interviews all candidates in person before deciding to hire them, Morse told me, but, she added, “We’re getting to the point where some of our hiring managers don’t even want to interview anymore”

Gone are the days, Ostberg told me, when, say, a small survey of college students would be used to predict the statistical validity of an evaluation tool. “We’ve got a data set of 347,000 actual employees who have gone through these different types of assessments or tools,” he told me, “and now we have performance-outcome data, and we can split those and slice and dice by industry and location.”

Evolv’s tests allow companies to capture data about everybody who applies for work, and everybody who gets hired—a complete data set from which sample bias, long a major vexation for industrial-organization psychologists, simply disappears. The sheer number of observations that this approach makes possible allows Evolv to say with precision which attributes matter more to the success of retail-sales workers (decisiveness, spatial orientation, persuasiveness) or customer-service personnel at call centers (rapport-building)

There are some data that Evolv simply won’t use, out of a concern that the information might lead to systematic bias against whole classes of people

the idea that hiring was a science fell out of favor. But now it’s coming back, thanks to new technologies and methods of analysis that are cheaper, faster, and much-wider-ranging than what we had before

what most excites him are the possibilities that arise from monitoring the entire life cycle of a worker at any given company.

Now the two companies are working together to marry pre-hire assessments to an increasing array of post-hire data: about not only performance and duration of service but also who trained the employees; who has managed them; whether they were promoted to a supervisory role, and how quickly; how they performed in that role; and why they eventually left.

What begins with an online screening test for entry-level workers ends with the transformation of nearly every aspect of hiring, performance assessment, and management.

I turned to Sandy Pentland, the director of the Human Dynamics Laboratory at MIT. In recent years, Pentland has pioneered the use of specialized electronic “badges” that transmit data about employees’ interactions as they go about their days. The badges capture all sorts of information about formal and informal conversations: their length; the tone of voice and gestures of the people involved; how much those people talk, listen, and interrupt; the degree to which they demonstrate empathy and extroversion; and more. Each badge generates about 100 data points a minute.

he tried the badges out on about 2,500 people, in 21 different organizations, and learned a number of interesting lessons. About a third of team performance, he discovered, can usually be predicted merely by the number of face-to-face exchanges among team members. (Too many is as much of a problem as too few.) Using data gathered by the badges, he was able to predict which teams would win a business-plan contest, and which workers would (rightly) say they’d had a “productive” or “creative” day. Not only that, but he claimed that his researchers had discovered the “data signature” of natural leaders, whom he called “charismatic connectors” and all of whom, he reported, circulate actively, give their time democratically to others, engage in brief but energetic conversations, and listen at least as much as they talk.

His group is developing apps to allow team members to view their own metrics more or less in real time, so that they can see, relative to the benchmarks of highly successful employees, whether they’re getting out of their offices enough, or listening enough, or spending enough time with people outside their own team.

Torrents of data are routinely collected by American companies and now sit on corporate servers, or in the cloud, awaiting analysis. Bloomberg reportedly logs every keystroke of every employee, along with their comings and goings in the office. The Las Vegas casino Harrah’s tracks the smiles of the card dealers and waitstaff on the floor (its analytics team has quantified the impact of smiling on customer satisfaction). E‑mail, of course, presents an especially rich vein to be mined for insights about our productivity, our treatment of co-workers, our willingness to collaborate or lend a hand, our patterns of written language, and what those patterns reveal about our intelligence, social skills, and behavior.

people analytics will ultimately have a vastly larger impact on the economy than the algorithms that now trade on Wall Street or figure out which ads to show us. He reminded me that we’ve witnessed this kind of transformation before in the history of management science. Near the turn of the 20th century, both Frederick Taylor and Henry Ford famously paced the factory floor with stopwatches, to improve worker efficiency.

“The quantities of data that those earlier generations were working with,” he said, “were infinitesimal compared to what’s available now. There’s been a real sea change in the past five years, where the quantities have just grown so large—petabytes, exabytes, zetta—that you start to be able to do things you never could before.”

People analytics will unquestionably provide many workers with more options and more power. Gild, for example, helps companies find undervalued software programmers, working indirectly to raise those people’s pay. Other companies are doing similar work. One called Entelo, for instance, specializes in using algorithms to identify potentially unhappy programmers who might be receptive to a phone cal

He sees it not only as a boon to a business’s productivity and overall health but also as an important new tool that individual employees can use for self-improvement: a sort of radically expanded The 7 Habits of Highly Effective People, custom-written for each of us, or at least each type of job, in the workforce.

the most exotic development in people analytics today is the creation of algorithms to assess the potential of all workers, across all companies, all the time.

The way Gild arrives at these scores is not simple. The company’s algorithms begin by scouring the Web for any and all open-source code, and for the coders who wrote it. They evaluate the code for its simplicity, elegance, documentation, and several other factors, including the frequency with which it’s been adopted by other programmers. For code that was written for paid projects, they look at completion times and other measures of productivity. Then they look at questions and answers on social forums such as Stack Overflow, a popular destination for programmers seeking advice on challenging projects. They consider how popular a given coder’s advice is, and how widely that advice ranges.

The algorithms go further still. They assess the way coders use language on social networks from LinkedIn to Twitter; the company has determined that certain phrases and words used in association with one another can distinguish expert programmers from less skilled ones. Gild knows these phrases and words are associated with good coding because it can correlate them with its evaluation of open-source code, and with the language and online behavior of programmers in good positions at prestigious companies.

having made those correlations, Gild can then score programmers who haven’t written open-source code at all, by analyzing the host of clues embedded in their online histories. They’re not all obvious, or easy to explain. Vivienne Ming, Gild’s chief scientist, told me that one solid predictor of strong coding is an affinity for a particular Japanese manga site.

Gild’s CEO, Sheeroy Desai, told me he believes his company’s approach can be applied to any occupation characterized by large, active online communities, where people post and cite individual work, ask and answer professional questions, and get feedback on projects. Graphic design is one field that the company is now looking at, and many scientific, technical, and engineering roles might also fit the bill. Regardless of their occupation, most people leave “data exhaust” in their wake, a kind of digital aura that can reveal a lot about a potential hire.

professionally relevant personality traits can be judged effectively merely by scanning Facebook feeds and photos. LinkedIn, of course, captures an enormous amount of professional data and network information, across just about every profession. A controversial start-up called Klout has made its mission the measurement and public scoring of people’s online social influence.

Mullainathan expressed amazement at how little most creative and professional workers (himself included) know about what makes them effective or ineffective in the office. Most of us can’t even say with any certainty how long we’ve spent gathering information for a given project, or our pattern of information-gathering, never mind know which parts of the pattern should be reinforced, and which jettisoned. As Mullainathan put it, we don’t know our own “production function.”

Over time, better job-matching technologies are likely to begin serving people directly, helping them see more clearly which jobs might suit them and which companies could use their skills. In the future, Gild plans to let programmers see their own profiles and take skills challenges to try to improve their scores. It intends to show them its estimates of their market value, too, and to recommend coursework that might allow them to raise their scores even more. Not least, it plans to make accessible the scores of typical hires at specific companies, so that software engineers can better see the profile they’d need to land a particular job

Knack, for its part, is making some of its video games available to anyone with a smartphone, so people can get a better sense of their strengths, and of the fields in which their strengths would be most valued. (Palo Alto High School recently adopted the games to help students assess careers.) Ultimately, the company hopes to act as matchmaker between a large network of people who play its games (or have ever played its games) and a widening roster of corporate clients, each with its own specific profile for any given type of job.

When I began my reporting for this story, I was worried that people analytics, if it worked at all, would only widen the divergent arcs of our professional lives, further gilding the path of the meritocratic elite from cradle to grave, and shutting out some workers more definitively. But I now believe the opposite is likely to happen, and that we’re headed toward a labor market that’s fairer to people at every stage of their careers

For decades, as we’ve assessed people’s potential in the professional workforce, the most important piece of data—the one that launches careers or keeps them grounded—has been educational background: typically, whether and where people went to college, and how they did there. Over the past couple of generations, colleges and universities have become the gatekeepers to a prosperous life. A degree has become a signal of intelligence and conscientiousness, one that grows stronger the more selective the school and the higher a student’s GPA, that is easily understood by employers, and that, until the advent of people analytics, was probably unrivaled in its predictive powers.

the limitations of that signal—the way it degrades with age, its overall imprecision, its many inherent biases, its extraordinary cost—are obvious. “Academic environments are artificial environments,” Laszlo Bock, Google’s senior vice president of people operations, told The New York Times in June. “People who succeed there are sort of finely trained, they’re conditioned to succeed in that environment,” which is often quite different from the workplace.

because one’s college history is such a crucial signal in our labor market, perfectly able people who simply couldn’t sit still in a classroom at the age of 16, or who didn’t have their act together at 18, or who chose not to go to graduate school at 22, routinely get left behind for good. That such early factors so profoundly affect career arcs and hiring decisions made two or three decades later is, on its face, absurd.

I spoke with managers at a lot of companies who are using advanced analytics to reevaluate and reshape their hiring, and nearly all of them told me that their research is leading them toward pools of candidates who didn’t attend college—for tech jobs, for high-end sales positions, for some managerial roles. In some limited cases, this is because their analytics revealed no benefit whatsoever to hiring people with college degrees; in other cases, and more often, it’s because they revealed signals that function far better than college history,

Google, too, is hiring a growing number of nongraduates. Many of the people I talked with reported that when it comes to high-paying and fast-track jobs, they’re reducing their preference for Ivy Leaguers and graduates of other highly selective schools.

This process is just beginning. Online courses are proliferating, and so are online markets that involve crowd-sourcing. Both arenas offer new opportunities for workers to build skills and showcase competence. Neither produces the kind of instantly recognizable signals of potential that a degree from a selective college, or a first job at a prestigious firm, might. That’s a problem for traditional hiring managers, because sifting through lots of small signals is so difficult and time-consuming.

all of these new developments raise philosophical questions. As professional performance becomes easier to measure and see, will we become slaves to our own status and potential, ever-focused on the metrics that tell us how and whether we are measuring up? Will too much knowledge about our limitations hinder achievement and stifle our dreams? All I can offer in response to these questions, ironically, is my own gut sense, which leads me to feel cautiously optimistic.

Google’s understanding of the promise of analytics is probably better than anybody else’s, and the company has been changing its hiring and management practices as a result of its ongoing analyses. (Brainteasers are no longer used in interviews, because they do not correlate with job success; GPA is not considered for anyone more than two years out of school, for the same reason—the list goes on.) But for all of Google’s technological enthusiasm, these same practices are still deeply human. A real, live person looks at every résumé the company receives. Hiring decisions are made by committee and are based in no small part on opinions formed during structured interviews.

each industry, as it (mostly) legally can, designs products that are difficult to resist and sometimes addictive.

The issues of auto and gun safety, of drug, alcohol and tobacco addiction, and of hyperconsumption of unhealthy food are not as distinct as we’ve long believed; really, they’re quite similar. For example, the argument for protecting people against marketers of junk food relies in part on the fact that antismoking regulations and seatbelt laws were initially attacked as robbing us of choice; now we know they’re lifesavers.

Until now (and, sadly, perhaps well into the future), corporations have been both more nimble and more flush with cash than the public health arms of government

“What we need,” Freudenberg said to me, “is to return to the public sector the right to set health policy and to limit corporations’ freedom to profit at the expense of public health.”

The turning point in the tobacco wars was when the question changed from the industry’s — “Do people have the right to smoke?” — to that of public health: “Do people have the right to breathe clean air?” Note that both questions are legitimate, but if you address the first (to which the answer is of course “yes”) without asking the second (to which the answer is of course also “yes”) you miss an opportunity to convert the answer from one that leads to greater industry profits to one that has literally cut smoking rates in half.

Similarly, we need to be asking not “Do junk food companies have the right to market to children?” but “Do children have the right to a healthy diet?”

The question is not only, “Do we have a right to bear arms?” but also “Do we have the right to be safe in our streets and schools?”

n short, says Freudenberg: “The right to be healthy trumps the right of corporations to promote choices that lead to premature death and preventable illnesses. Protecting public health is a fundamental government responsibility

“Shouldn’t science and technology be used to improve human well-being, not to advance business goals that harm health?” Two other questions that can be answered “yes.”

Under-funding this stimulus will drag the global economy down. And any appearance that corporations are getting a more fair deal than individuals will make people not want to comply. A lack of compliance will drag on the crisis.

When it falls into ruin, the entire global economy drags. We saw that happen during the financial crisis of 2008.

Congress could under-fund the US coronavirus stimulus package. If they do, they put not only the economy but the effort to fight the virus at risk.

this weekend the Senate was unable to pass aid legislation

Democrats also rejected the bill over a lack of labor protections that would only mandate corporations keep employees "to the extent possible." They want more limits on executive compensation and share buybacks, and they want more money for healthcare workers. They accuse Republicans of being cheap, and writing a deal that favors corporations over average Americans.

The only proposal that comes close to being generous enough for individuals comes from Democratic Rep. Rashida Tlaib. It would give a prepaid card with $2,000 to every American. That card would then be recharged with $1,000 monthly until one year after the end of the coronavirus crisis. This is the kind of plan that will make Americans believe the government has their back, not just the backs of big corporations.

The distrust that is bred by corruption will make it much harder to fight this virus, potentially dragging out the crisis. The vast majority of Americans already think that our lack of trust in each other and our government makes it hard to solve problems, according to Pew Research. If Americans feel like this whole aid package is a handout to big corporations — which they also distrust — they may stop listening to authorities.

Goldman Sachs estimates that the recession brought on by fighting off coronavirus will trough in April, knocking 10% off US GDP. Over time, bank analysts wrote last week, the economy should begin to grow again incrementally. How fast depends on how well Americans comply with government social-distancing mandates. Americans have to want to comply.

Small and midsize companies make up 83% of the US economy, and thousands of workers are already out of a job across the country. Means-testing initial payments to individuals — that is, restricting who gets the checks based on income — is a waste of time.

Historians and sociologists of science say that since the tobacco wars of the 1960s, corporations trying to block legislation that hurts their interests have employed a strategy of creating the appearance of scientific doubt, usually with the help of ostensibly independent researchers who accept industry funding.

“The whole doubt-mongering strategy relies on creating the impression of scientific debate,” said Naomi Oreskes, a historian of science at Harvard University and the co-author of “Merchants of Doubt,” a book about such campaigns. “Willie Soon is playing a role in a certain kind of political theater.”

Environmentalists have long questioned Dr. Soon’s work, and his acceptance of funding from the fossil-fuel industry was previously known. But the full extent of the links was not; the documents show that corporate contributions were tied to specific papers and were not disclosed, as required by modern standards of publishing.

“What it shows is the continuation of a long-term campaign by specific fossil-fuel companies and interests to undermine the scientific consensus on climate change,” said Kert Davies, executive director of the Climate Investigations Center, a group funded by foundations seeking to limit the risks of climate change.

Many experts in the field say that Dr. Soon uses out-of-date data, publishes spurious correlations between solar output and climate indicators, and does not take account of the evidence implicating emissions from human behavior in climate change.

Though often described on conservative news programs as a “Harvard astrophysicist,” Dr. Soon is not an astrophysicist and has never been employed by Harvard. He is a part-time employee of the Smithsonian Institution with a doctoral degree in aerospace engineering. He has received little federal research money over the past decade and is thus responsible for bringing in his own funds, including his salary.

Though he has little formal training in climatology, Dr. Soon has for years published papers trying to show that variations in the sun’s energy can explain most recent global warming. His thesis is that human activity has played a relatively small role in causing climate change.

As the oil-industry contributions fell, Dr. Soon started receiving hundreds of thousands of dollars through DonorsTrust, an organization based in Alexandria, Va., that accepts money from donors who wish to remain anonymous, then funnels it to various conservative causes.

Gavin A. Schmidt, head of the Goddard Institute for Space Studies in Manhattan, a NASA division that studies climate change, said that the sun had probably accounted for no more than 10 percent of recent global warming and that greenhouse gases produced by human activity explained most of it.“The science that Willie Soon does is almost pointless,” Dr. Schmidt said.

Dr. Soon has found a warm welcome among politicians in Washington and state capitals who try to block climate action. United States Senator James M. Inhofe, an Oklahoma Republican who claims that climate change is a global scientific hoax, has repeatedly cited Dr. Soon’s work over the years.

Dr. Oreskes, the Harvard science historian, said that academic institutions and scientific journals had been too lax in recent decades in ferreting out dubious research created to serve a corporate agenda.

How do we reconcile our enjoyment of social media even as we understand that the corporations who control them aren’t always acting in our best interests?

hat was because the underlying economic conditions hadn’t been changed or “disrupted,” to use a favorite Silicon Valley phrase. Google has to serve its shareholders, just like NBCUniversal does. As a result, many of the unappealing aspects of the legacy-media model have simply carried over into a digital age — namely, commercialism, consolidation, and centralization. In fact, the new system is even more dependent on advertising dollars than the one that preceded it, and digital advertising is far more invasive and ubiquitous

the popular narrative — new communications technologies would topple the establishment and empower regular people — didn’t accurately capture reality. Something more complex and predictable was happening. The old-media dinosaurs weren’t dying out, but were adapting to the online environment; meanwhile the new tech titans were coming increasingly to resemble their predecessors

I use lots of products that are created by companies whose business practices I object to and that don’t act in my best interests, or the best interests of workers or the environment — we all do, since that’s part of living under capitalism. That said, I refuse to invest so much in any platform that I can’t quit without remorse

these services aren’t free even if we don’t pay money for them; we pay with our personal data, with our privacy. This feeds into the larger surveillance debate, since government snooping piggybacks on corporate data collection. As I argue in the book, there are also negative cultural consequences (e.g., when advertisers are paying the tab we get more of the kind of culture marketers like to associate themselves with and less of the stuff they don’t) and worrying social costs. For example, the White House and the Federal Trade Commission have both recently warned that the era of “big data” opens new avenues of discrimination and may erode hard-won consumer protections.

I’m resistant to the tendency to place this responsibility solely on the shoulders of users. Gadgets and platforms are designed to be addictive, with every element from color schemes to headlines carefully tested to maximize clickability and engagement. The recent news that Facebook tweaked its algorithms for a week in 2012, showing hundreds of thousands of users only “happy” or “sad” posts in order to study emotional contagion — in other words, to manipulate people’s mental states — is further evidence that these platforms are not neutral. In the end, Facebook wants us to feel the emotion of wanting to visit Facebook frequently

social inequalities that exist in the real world remain meaningful online. What are the particular dangers of discrimination on the Internet?

That it’s invisible or at least harder to track and prove. We haven’t figured out how to deal with the unique ways prejudice plays out over digital channels, and that’s partly because some folks can’t accept the fact that discrimination persists online. (After all, there is no sign on the door that reads Minorities Not Allowed.)

just because the Internet is open doesn’t mean it’s equal; offline hierarchies carry over to the online world and are even amplified there. For the past year or so, there has been a lively discussion taking place about the disproportionate and often outrageous sexual harassment women face simply for entering virtual space and asserting themselves there — research verifies that female Internet users are dramatically more likely to be threatened or stalked than their male counterparts — and yet there is very little agreement about what, if anything, can be done to address the problem.

What steps can we take to encourage better representation of independent and non-commercial media? We need to fund it, first and foremost. As individuals this means paying for the stuff we believe in and want to see thrive. But I don’t think enlightened consumption can get us where we need to go on its own. I’m skeptical of the idea that we can shop our way to a better world. The dominance of commercial media is a social and political problem that demands a collective solution, so I make an argument for state funding and propose a reconceptualization of public media. More generally, I’m struck by the fact that we use these civic-minded metaphors, calling Google Books a “library” or Twitter a “town square” — or even calling social media “social” — but real public options are off the table, at least in the United States. We hand the digital commons over to private corporations at our peril.

6. You advocate for greater government regulation of the Internet. Why is this important?

I’m for regulating specific things, like Internet access, which is what the fight for net neutrality is ultimately about. We also need stronger privacy protections and restrictions on data gathering, retention, and use, which won’t happen without a fight.

I challenge the techno-libertarian insistence that the government has no productive role to play and that it needs to keep its hands off the Internet for fear that it will be “broken.” The Internet and personal computing as we know them wouldn’t exist without state investment and innovation, so let’s be real.

there’s a pervasive and ill-advised faith that technology will promote competition if left to its own devices (“competition is a click away,” tech executives like to say), but that’s not true for a variety of reasons. The paradox of our current media landscape is this: our devices and consumption patterns are ever more personalized, yet we’re simultaneously connected to this immense, opaque, centralized infrastructure. We’re all dependent on a handful of firms that are effectively monopolies — from Time Warner and Comcast on up to Google and Facebook — and we’re seeing increased vertical integration, with companies acting as both distributors and creators of content. Amazon aspires to be the bookstore, the bookshelf, and the book. Google isn’t just a search engine, a popular browser, and an operating system; it also invests in original content

So it’s not that the Internet needs to be regulated but that these big tech corporations need to be subject to governmental oversight. After all, they are reaching farther and farther into our intimate lives. They’re watching us. Someone should be watching them.

But nothing worked particularly well until they began an inspired public relations offensive that cast capitalism as the handmaiden of Christianity.The two had been described as soul mates before, but in this campaign they were wedded in pointed opposition to the “creeping socialism” of the New Deal

Accordingly, throughout the 1930s and ’40s, corporate leaders marketed a new ideology that combined elements of Christianity with an anti-federal libertarianism.

Powerful business lobbies like the United States Chamber of Commerce and the National Association of Manufacturers led the way, promoting this ideology’s appeal in conferences and P.R. campaigns. Generous funding came from prominent businessmen

In a shrewd decision, these executives made clergymen their spokesmen.

businessmen worked to recruit clergy through private meetings and public appeals. Many answered the call

The most important clergyman for Christian libertarianism, though, was the Rev. Billy Graham.

In his initial ministry, in the early 1950s, Mr. Graham supported corporate interests so zealously that a London paper called him “the Big Business evangelist.” The Garden of Eden, he informed revival attendees, was a paradise with “no union dues, no labor leaders, no snakes, no disease.” In the same spirit, he denounced all “government restrictions” in economic affairs, which he invariably attacked as “socialism.”

Dwight D. Eisenhower fulfilled that prediction. With Mr. Graham offering Scripture for Ike’s speeches, the Republican nominee campaigned in what he called a “great crusade for freedom.

Elected in a landslide, Eisenhower told Mr. Graham that he had a mandate for a “spiritual renewal.”

Although Eisenhower relied on Christian libertarian groups in the campaign, he parted ways with their agenda once elected. The movement’s corporate sponsors had seen religious rhetoric as a way to dismantle the New Deal state.

But the newly elected president thought that a fool’s errand. “Should any political party attempt to abolish Social Security, unemployment insurance, and eliminate labor laws and farm programs,” he noted privately, “you would not hear of that party again in our political history.”

Unlike those who held public spirituality as a means to an end, Eisenhower embraced it as an end unto itself.

Uncoupling the language of “freedom under God” from its Christian libertarian roots, Eisenhower erected a bigger revival tent, welcoming Jews and Catholics alongside Protestants, and Democrats as well as Republicans. Rallying the country, he advanced a revolutionary array of new religious ceremonies and slogans.

The rest of Washington consecrated itself, too. The Pentagon, State Department and other executive agencies quickly instituted prayer services of their own. In 1954, Congress added “under God” to the previously secular Pledge of Allegiance. It placed a similar slogan, “In God We Trust,” on postage that year and voted the following year to add it to paper money; in 1956, it became the nation’s official motto.

During these years, Americans were told, time and time again, not just that the country should be a Christian nation, but that it always had been one. They soon came to think of the United States as “one nation under God.” They’ve believed it ever since.

President George W. Bush’s tax cuts had similar effects between 2001 and 2007: real growth in the absence of new investment.

over the course of the last century, net business investment atrophied while G.D.P. per capita increased spectacularly. And the source of that growth? Increased consumer spending, coupled with and amplified by government outlays.

Between 1900 and 2000, real gross domestic product per capita (the output of goods and services per person) grew more than 600 percent. Meanwhile, net business investment declined 70 percent as a share of G.D.P. What’s more, in 1900 almost all investment came from the private sector — from companies, not from government — whereas in 2000, most investment was either from government spending (out of tax revenues) or “residential investment,” which means consumer spending on housing, rather than business expenditure on plants, equipment and labor.

According to the Organization for Economic Cooperation and Development, retained corporate earnings that remain uninvested are now close to 8 percent of G.D.P., a staggering sum in view of the unemployment crisis we face.

So corporate profits do not drive economic growth — they’re just restless sums of surplus capital, ready to flood speculative markets at home and abroad. In the 1920s, they inflated the stock market bubble, and then caused the Great Crash. Since the Reagan revolution, these superfluous profits have fed corporate mergers and takeovers, driven the dot-com craze, financed the “shadow banking” system of hedge funds and securitized investment vehicles, fueled monetary meltdowns in every hemisphere and inflated the housing bubble.

we doubt the moral worth of consumer culture. Like the abstemious ant who scolds the feckless grasshopper as winter approaches, we think that saving is the right thing to do. Even as we shop with abandon, we feel that if only we could contain our unruly desires, we’d be committing ourselves to a better future. But we’re wrong.

Consumer spending is not only the key to economic recovery in the short term; it’s also necessary for balanced growth in the long term. If our goal is to repair our damaged economy, we should bank on consumer culture — and that entails a redistribution of income away from profits toward wages, enabled by tax policy and enforced by government spending.

In two nonfiction books, scheduled to be published in January, technology experts examine similar consumer-ranking techniques already in widespread use.

While a federal law called the Fair Credit Reporting Act requires consumer reporting agencies to provide individuals with copies of their credit reports on request, many other companies are free to keep their proprietary consumer scores to themselves.

Befitting the founder of a firm that markets reputation management, Mr. Fertik contends that individuals have some power to influence commercial scoring systems.

“This will happen whether or not you want to participate, and these scores will be used by others to make major decisions about your life, such as whether to hire, insure, or even date you,”

“Important corporate actors have unprecedented knowledge of the minutiae of our daily lives,” he writes in “The Black Box Society: The Secret Algorithms That Control Money and Information” (Harvard University Press), “while we know little to nothing about how they use this knowledge to influence important decisions that we — and they — make.”

Data brokers amass dossiers with thousands of details about individual consumers, like age, religion, ethnicity, profession, mortgage size, social networks, estimated income and health concerns such as impotence and irritable bowel syndrome. Then analytics engines can compare patterns in those variables against computer forecasting models. Algorithms are used to assign consumers scores — and to recommend offering, or withholding, particular products, services or fees — based on predictions about their behavior.

It’s a fictional forecast of a data-deterministic culture in which computer algorithms constantly analyze consumers’ profiles, issuing individuals numeric rankings that may benefit or hinder them.

Think of this technique as reputation engine optimization. If an algorithm incorrectly pegs you as physically unfit, for instance, the book suggests that you can try to mitigate the wrong. You can buy a Fitbit fitness tracker, for instance, and upload the exercise data to a public profile — or even “snap that Fitbit to your dog” and “you’ll quickly be the fittest person in your town.”

Professor Pasquale offers a more downbeat reading. Companies, he says, are using such a wide variety of numerical rating systems that it would be impossible for average people to significantly influence their scores.

“Corporations depend on automated judgments that may be wrong, biased or destructive,” Professor Pasquale writes. “Faulty data, invalid assumptions and defective models can’t be corrected when they are hidden.”

Moreover, trying to influence scoring systems could backfire. If a person attached a fitness device to a dog and tried to claim the resulting exercise log, he suggests, an algorithm might be able to tell the difference and issue that person a high score for propensity toward fraudulent activity.

“People shouldn’t think they can outwit corporations with hundreds of millions of dollars,” Professor Pasquale said in a phone interview.Consumers would have more control, he argues, if Congress extended the right to see and correct credit reports to other kinds of rankings.

By removing the tangible product from the center of commerce, surveillance capitalism upsets the equilibrium. Whenever we use free apps and online services, it’s often said, we become the products, our attention harvested and sold to advertisers

this truism gets it wrong. Surveillance capitalism’s real products, vaporous but immensely valuable, are predictions about our future behavior — what we’ll look at, where we’ll go, what we’ll buy, what opinions we’ll hold — that internet companies derive from our personal data and sell to businesses, political operatives, and other bidders.

Unlike financial derivatives, which they in some ways resemble, these new data derivatives draw their value, parasite-like, from human experience.To the Googles and Facebooks of the world, we are neither the customer nor the product. We are the source of what Silicon Valley technologists call “data exhaust” — the informational byproducts of online activity that become the inputs to prediction algorithms

Another 2015 study, appearing in the Journal of Computer-Mediated Communication, showed that when people hear their phone ring but are unable to answer it, their blood pressure spikes, their pulse quickens, and their problem-solving skills decline.

The smartphone has become a repository of the self, recording and dispensing the words, sounds and images that define what we think, what we experience and who we are. In a 2015 Gallup survey, more than half of iPhone owners said that they couldn’t imagine life without the device.

So what happens to our minds when we allow a single tool such dominion over our perception and cognition?

Not only do our phones shape our thoughts in deep and complicated ways, but the effects persist even when we aren’t using the devices. As the brain grows dependent on the technology, the research suggests, the intellect weakens.

he has seen mounting evidence that using a smartphone, or even hearing one ring or vibrate, produces a welter of distractions that makes it harder to concentrate on a difficult problem or job. The division of attention impedes reasoning and performance.

internet companies operate in what Zuboff terms “extreme structural independence from people.” When databases displace goods as the engine of the economy, our own interests, as consumers but also as citizens, cease to be part of the negotiation. We are no longer one of the forces guiding the market’s invisible hand. We are the objects of surveillance and control.

Social skills and relationships seem to suffer as well.

In both tests, the subjects whose phones were in view posted the worst scores, while those who left their phones in a different room did the best. The students who kept their phones in their pockets or bags came out in the middle. As the phone’s proximity increased, brainpower decreased.

In subsequent interviews, nearly all the participants said that their phones hadn’t been a distraction—that they hadn’t even thought about the devices during the experiment. They remained oblivious even as the phones disrupted their focus and thinking.

The researchers recruited 520 undergraduates at UCSD and gave them two standard tests of intellectual acuity. One test gauged “available working-memory capacity,” a measure of how fully a person’s mind can focus on a particular task. The second assessed “fluid intelligence,” a person’s ability to interpret and solve an unfamiliar problem. The only variable in the experiment was the location of the subjects’ smartphones. Some of the students were asked to place their phones in front of them on their desks; others were told to stow their phones in their pockets or handbags; still others were required to leave their phones in a different room.

the “integration of smartphones into daily life” appears to cause a “brain drain” that can diminish such vital mental skills as “learning, logical reasoning, abstract thought, problem solving, and creativity.”

 Smartphones have become so entangled with our existence that, even when we’re not peering or pawing at them, they tug at our attention, diverting precious cognitive resources. Just suppressing the desire to check our phone, which we do routinely and subconsciously throughout the day, can debilitate our thinking.

They found that students who didn’t bring their phones to the classroom scored a full letter-grade higher on a test of the material presented than those who brought their phones. It didn’t matter whether the students who had their phones used them or not: All of them scored equally poorly.

A study of nearly a hundred secondary schools in the U.K., published last year in the journal Labour Economics, found that when schools ban smartphones, students’ examination scores go up substantially, with the weakest students benefiting the most.

Data, the novelist and critic Cynthia Ozick once wrote, is “memory without history.” Her observation points to the problem with allowing smartphones to commandeer our brains

Because smartphones serve as constant reminders of all the friends we could be chatting with electronically, they pull at our minds when we’re talking with people in person, leaving our conversations shallower and less satisfying.

In a 2013 study conducted at the University of Essex in England, 142 participants were divided into pairs and asked to converse in private for ten minutes. Half talked with a phone in the room, half without a phone present. The subjects were then given tests of affinity, trust and empathy. “The mere presence of mobile phones,” the researchers reported in the Journal of Social and Personal Relationships, “inhibited the development of interpersonal closeness and trust” and diminished “the extent to which individuals felt empathy and understanding from their partners.”

The evidence that our phones can get inside our heads so forcefully is unsettling. It suggests that our thoughts and feelings, far from being sequestered in our skulls, can be skewed by external forces we’re not even aware o

 Scientists have long known that the brain is a monitoring system as well as a thinking system. Its attention is drawn toward any object that is new, intriguing or otherwise striking — that has, in the psychological jargon, “salience.”

even in the history of captivating media, the smartphone stands out. It is an attention magnet unlike any our minds have had to grapple with before. Because the phone is packed with so many forms of information and so many useful and entertaining functions, it acts as what Dr. Ward calls a “supernormal stimulus,” one that can “hijack” attention whenever it is part of our surroundings — and it is always part of our surroundings.

Imagine combining a mailbox, a newspaper, a TV, a radio, a photo album, a public library and a boisterous party attended by everyone you know, and then compressing them all into a single, small, radiant object. That is what a smartphone represents to us. No wonder we can’t take our minds off it.

The irony of the smartphone is that the qualities that make it so appealing to us — its constant connection to the net, its multiplicity of apps, its responsiveness, its portability — are the very ones that give it such sway over our minds.

Phone makers like Apple and Samsung and app writers like Facebook, Google and Snap design their products to consume as much of our attention as possible during every one of our waking hours

Social media apps were designed to exploit “a vulnerability in human psychology,” former Facebook president Sean Parker said in a recent interview. “[We] understood this consciously. And we did it anyway.”

A quarter-century ago, when we first started going online, we took it on faith that the web would make us smarter: More information would breed sharper thinking. We now know it’s not that simple.

As strange as it might seem, people’s knowledge and understanding may actually dwindle as gadgets grant them easier access to online data stores

In a seminal 2011 study published in Science, a team of researchers — led by the Columbia University psychologist Betsy Sparrow and including the late Harvard memory expert Daniel Wegner — had a group of volunteers read forty brief, factual statements (such as “The space shuttle Columbia disintegrated during re-entry over Texas in Feb. 2003”) and then type the statements into a computer. Half the people were told that the machine would save what they typed; half were told that the statements would be erased.

Afterward, the researchers asked the subjects to write down as many of the statements as they could remember. Those who believed that the facts had been recorded in the computer demonstrated much weaker recall than those who assumed the facts wouldn’t be stored. Anticipating that information would be readily available in digital form seemed to reduce the mental effort that people made to remember it

The researchers dubbed this phenomenon the “Google effect” and noted its broad implications: “Because search engines are continually available to us, we may often be in a state of not feeling we need to encode the information internally. When we need it, we will look it up.”

as the pioneering psychologist and philosopher William James said in an 1892 lecture, “the art of remembering is the art of thinking.”

Only by encoding information in our biological memory can we weave the rich intellectual associations that form the essence of personal knowledge and give rise to critical and conceptual thinking. No matter how much information swirls around us, the less well-stocked our memory, the less we have to think with.

As Dr. Wegner and Dr. Ward explained in a 2013 Scientific American article, when people call up information through their devices, they often end up suffering from delusions of intelligence. They feel as though “their own mental capacities” had generated the information, not their devices. “The advent of the ‘information age’ seems to have created a generation of people who feel they know more than ever before,” the scholars concluded, even though “they may know ever less about the world around them.”

That insight sheds light on society’s current gullibility crisis, in which people are all too quick to credit lies and half-truths spread through social media. If your phone has sapped your powers of discernment, you’ll believe anything it tells you.

A second experiment conducted by the researchers produced similar results, while also revealing that the more heavily students relied on their phones in their everyday lives, the greater the cognitive penalty they suffered.

When we constrict our capacity for reasoning and recall or transfer those skills to a gadget, we sacrifice our ability to turn information into knowledge. We get the data but lose the meaning

We need to give our minds more room to think. And that means putting some distance between ourselves and our phones.

Google’s once-patient investors grew restive, demanding that the founders figure out a way to make money, preferably lots of it.

nder pressure, Page and Brin authorized the launch of an auction system for selling advertisements tied to search queries. The system was designed so that the company would get paid by an advertiser only when a user clicked on an ad. This feature gave Google a huge financial incentive to make accurate predictions about how users would respond to ads and other online content. Even tiny increases in click rates would bring big gains in income. And so the company began deploying its stores of behavioral data not for the benefit of users but to aid advertisers — and to juice its own profits. Surveillance capitalism had arrived.

Google’s business now hinged on what Zuboff calls “the extraction imperative.” To improve its predictions, it had to mine as much information as possible from web users. It aggressively expanded its online services to widen the scope of its surveillance.

Through Gmail, it secured access to the contents of people’s emails and address books. Through Google Maps, it gained a bead on people’s whereabouts and movements. Through Google Calendar, it learned what people were doing at different moments during the day and whom they were doing it with. Through Google News, it got a readout of people’s interests and political leanings. Through Google Shopping, it opened a window onto people’s wish lists,

The company gave all these services away for free to ensure they’d be used by as many people as possible. It knew the money lay in the data.

the organization grew insular and secretive. Seeking to keep the true nature of its work from the public, it adopted what its CEO at the time, Eric Schmidt, called a “hiding strategy” — a kind of corporate omerta backed up by stringent nondisclosure agreements.

Page and Brin further shielded themselves from outside oversight by establishing a stock structure that guaranteed their power could never be challenged, neither by investors nor by directors.

What’s most remarkable about the birth of surveillance capitalism is the speed and audacity with which Google overturned social conventions and norms about data and privacy. Without permission, without compensation, and with little in the way of resistance, the company seized and declared ownership over everyone’s information

The companies that followed Google presumed that they too had an unfettered right to collect, parse, and sell personal data in pretty much any way they pleased. In the smart homes being built today, it’s understood that any and all data will be beamed up to corporate clouds.

Google conducted its great data heist under the cover of novelty. The web was an exciting frontier — something new in the world — and few people understood or cared about what they were revealing as they searched and surfed. In those innocent days, data was there for the taking, and Google took it

Google also benefited from decisions made by lawmakers, regulators, and judges — decisions that granted internet companies free use of a vast taxpayer-funded communication infrastructure, relieved them of legal and ethical responsibility for the information and messages they distributed, and gave them carte blanche to collect and exploit user data.

Consider the terms-of-service agreements that govern the division of rights and the delegation of ownership online. Non-negotiable, subject to emendation and extension at the company’s whim, and requiring only a casual click to bind the user, TOS agreements are parodies of contracts, yet they have been granted legal legitimacy by the court

Law professors, writes Zuboff, “call these ‘contracts of adhesion’ because they impose take-it-or-leave-it conditions on users that stick to them whether they like it or not.” Fundamentally undemocratic, the ubiquitous agreements helped Google and other firms commandeer personal data as if by fiat.

n the choices we make as consumers and private citizens, we have always traded some of our autonomy to gain other rewards. Many people, it seems clear, experience surveillance capitalism less as a prison, where their agency is restricted in a noxious way, than as an all-inclusive resort, where their agency is restricted in a pleasing way

Zuboff makes a convincing case that this is a short-sighted and dangerous view — that the bargain we’ve struck with the internet giants is a Faustian one

but her case would have been stronger still had she more fully addressed the benefits side of the ledger.

there’s a piece missing. While Zuboff’s assessment of the costs that people incur under surveillance capitalism is exhaustive, she largely ignores the benefits people receive in return — convenience, customization, savings, entertainment, social connection, and so on

hat the industries of the future will seek to manufacture is the self.

Behavior modification is the thread that ties today’s search engines, social networks, and smartphone trackers to tomorrow’s facial-recognition systems, emotion-detection sensors, and artificial-intelligence bots.

All of Facebook’s information wrangling and algorithmic fine-tuning, she writes, “is aimed at solving one problem: how and when to intervene in the state of play that is your daily life in order to modify your behavior and thus sharply increase the predictability of your actions now, soon, and later.”

“The goal of everything we do is to change people’s actual behavior at scale,” a top Silicon Valley data scientist told her in an interview. “We can test how actionable our cues are for them and how profitable certain behaviors are for us.”

This goal, she suggests, is not limited to Facebook. It is coming to guide much of the economy, as financial and social power shifts to the surveillance capitalists

Combining rich information on individuals’ behavioral triggers with the ability to deliver precisely tailored and timed messages turns out to be a recipe for behavior modification on an unprecedented scale.

it was Facebook, with its incredibly detailed data on people’s social lives, that grasped digital media’s full potential for behavior modification. By using what it called its “social graph” to map the intentions, desires, and interactions of literally billions of individuals, it saw that it could turn its network into a worldwide Skinner box, employing psychological triggers and rewards to program not only what people see but how they react.

spying on the populace is not the end game. The real prize lies in figuring out ways to use the data to shape how people think and act. “The best way to predict the future is to invent it,” the computer scientist Alan Kay once observed. And the best way to predict behavior is to script it.

competition for personal data intensified. It was no longer enough to monitor people online; making better predictions required that surveillance be extended into homes, stores, schools, workplaces, and the public squares of cities and towns. Much of the recent innovation in the tech industry has entailed the creation of products and services designed to vacuum up data from every corner of our lives

“The typical complaint is that privacy is eroded, but that is misleading,” Zuboff writes. “In the larger societal pattern, privacy is not eroded but redistributed . . . . Instead of people having the rights to decide how and what they will disclose, these rights are concentrated within the domain of surveillance capitalism.” The transfer of decision rights is also a transfer of autonomy and agency, from the citizen to the corporation.

What we lose under this regime is something more fundamental than privacy. It’s the right to make our own decisions about privacy — to draw our own lines between those aspects of our lives we are comfortable sharing and those we are not

Other possible ways of organizing online markets, such as through paid subscriptions for apps and services, never even got a chance to be tested.

Online surveillance came to be viewed as normal and even necessary by politicians, government bureaucrats, and the general public

Google and other Silicon Valley companies benefited directly from the government’s new stress on digital surveillance. They earned millions through contracts to share their data collection and analysis techniques with the National Security Agenc

As much as the dot-com crash, the horrors of 9/11 set the stage for the rise of surveillance capitalism. Zuboff notes that, in 2000, members of the Federal Trade Commission, frustrated by internet companies’ lack of progress in adopting privacy protections, began formulating legislation to secure people’s control over their online information and severely restrict the companies’ ability to collect and store it. It seemed obvious to the regulators that ownership of personal data should by default lie in the hands of private citizens, not corporations.

The 9/11 attacks changed the calculus. The centralized collection and analysis of online data, on a vast scale, came to be seen as essential to national security. “The privacy provisions debated just months earlier vanished from the conversation more or less overnight,”

Unionization rates in the U.S. have declined for decades. "Unionization is highest in the public sector, but this has been challenged by state and local austerity since the recession in 2008-09," Warner said.

Warner said that the role of the federal government is to provide funds to states and local governments to support critical public services, such as schools and roads

While the federal government can play a redistributive role, as with the recent COVID relief package, this is less likely in states that have more corporate influence in their legislative policymaking,

"In the new political economy of place, the corporate interests undermine the potential for inclusive economic growth."

Stocks fell 4.5% in New York

Some pockets of the market reacted positively to the Fed moves. Signs of stress in the corporate debt sector eased, with the CDX Investment Grade index spread tightening. Bond ETFs eligible for central-bank purchases rallied and the dollar retreated versus major peers.

Group of 20 finance ministers and central bank chiefs separately joined an emergency call to work on a joint response to the economic blow dealt by the pandemic.

U.S. unemployment rate may hit 30% in the second quarter, along with a 50% drop in gross domestic product. Morgan Stanley expects the U.S. economy to plummet 30% in the second quarter.

The package included several unprecedented steps for the Fed, including intervention in the corporate bond market, purchases of commercial asset-backed mortgages and exchange-traded funds, and, if Congress clears the way, a significant Main Street lending program directly aimed at aiding small businesses.

emergency facilities will employ a total of $300 billion, backed by $30 billion from the Treasury’s Exchange Stabilization Fund.

Fed said a week ago it would buy at least $500 billion of Treasuries and $200 billion of agency MBS. The Fed will now make those purchases unlimited and will take on a slew of new efforts, many aimed at directly aiding employers and households, as well as cities and states.

Sneakily, empowerment had turned into a theory that applied to the needy while describing a process more realistically applicable to the rich. The word was built on a misaligned foundation; no amount of awareness can change the fact that it’s the already-powerful who tend to experience empowerment at any meaningful rate. Today “empowerment” invokes power while signifying the lack of it. It functions like an explorer staking a claim on new territory with a white flag.

highly marketable “women’s empowerment,” neither practice nor praxis, nor really theory, but a glossy, dizzying product instead. Women’s empowerment borrows the virtuous window-dressing of the social worker’s doctrine and kicks its substance to the side. It’s about pleasure, not power; it’s individualistic and subjective, tailored to insecurity and desire.

The new empowerment doesn’t increase potential so much as it assures you that your potential is just fine. Even when the thing being described as “empowering” is personal and mildly defiant (not shaving, not breast-feeding, not listening to men, et cetera), what’s being mar­keted is a certain identity.

When consumer purchases aren’t made out to be a path to female empowerment, a branded corporate experience often is. There’s TEDWomen (“about the power of women”), the Forbes Women’s Summit (“#RedefinePower”) and Fortune’s Most Powerful Women Conference (tickets are $10,000).

This consumption-and-conference empowerment dilutes the word to pitch-speak, and the concept to something that imitates rather than alters the structures of the world. This version of empowerment can be actively disempowering: It’s a series of objects and experiences you can purchase while the conditions determining who can access and accumulate power stay the same. The ready partici­pation of well-off women in this strat­egy also points to a deep truth about the word “empowerment”: that it has never been defined by the people who actually need it. People who talk empowerment are, by definition, already there.

I have never said “empowerment” sincerely or heard it from a single one of my friends. The formulation has been diluted to something representational and bloodless — an architectural rendering of a building that will never be built.But despite its nonexistence in honest conversation, “empowerment” goes on thriving. It’s uniquely marketable, like the female body, which is where women’s empowerment is forced to live.

Like Sandberg, Kardashian is the apotheosis of a particular brand of largely contentless feminism, a celebratory form divorced from material politics, which makes it palatable — maybe irresistible — to the business world. Advertisement Continue reading the main story The mistake would be to locate further empowerment in choosing between the two. Corporate empowerment — as well as the lightweight, self-exculpatory feminism it rides on — feeds rav­enously on the distracting performance of identity, that buffet of false opposition.

Even if the corporatization of our society is so complete that it is objectively impossible to avoid giving money to entities that are at that very moment working to undermine our political freedoms, every religious and ethically-minded institution should be urging those under its influence to be aware and resist wherever possible.

In sum, you should absolutely be supporting corporations that put human values ahead of profit, and doing your best to keep your dollars away from ones that exploit workers and try to obstruct democracy, whether directly by stripping workers of their rights or indirectly by supporting the exclusionary social fantasies of religious reactionaries.

The economics community just hasn't spent much time over the past couple of decades focusing on the effect that machine intelligence is likely to have on the labor marke

The Digital Revolution is different because computers can perform cognitive tasks too, and that means machines will eventually be able to run themselves. When that happens, they won't just put individuals out of work temporarily. Entire classes of workers will be out of work permanently. In other words, the Luddites weren't wrong. They were just 200 years too early

Slowly but steadily, labor's share of total national income has gone down, while the share going to capital owners has gone up. The most obvious effect of this is the skyrocketing wealth of the top 1 percent, due mostly to huge increases in capital gains and investment income.

Robotic pets are growing so popular that Sherry Turkle, an MIT professor who studies the way we interact with technology, is uneasy about it: "The idea of some kind of artificial companionship," she says, "is already becoming the new normal."

robots will take over more and more jobs. And guess who will own all these robots? People with money, of course. As this happens, capital will become ever more powerful and labor will become ever more worthless. Those without money—most of us—will live on whatever crumbs the owners of capital allow us.

Economist Paul Krugman recently remarked that our long-standing belief in skills and education as the keys to financial success may well be outdated. In a blog post titled "Rise of the Robots," he reviewed some recent economic data and predicted that we're entering an era where the prime cause of income inequality will be something else entirely: capital vs. labor.

while it's easy to believe that some jobs can never be done by machines—do the elderly really want to be tended by robots?—that may not be true.

Third, as more people compete for fewer jobs, we'd expect to see middle-class incomes flatten in a race to the bottom.

The question we want to answer is simple: If CBTC is already happening—not a lot, but just a little bit—what trends would we expect to see? What are the signs of a computer-driven economy?

if automation were displacing labor, we'd expect to see a steady decline in the share of the population that's employed.

Second, we'd expect to see fewer job openings than in the past.

In the economics literature, the increase in the share of income going to capital owners is known as capital-biased technological change

Fourth, with consumption stagnant, we'd expect to see corporations stockpile more cash and, fearing weaker sales, invest less in new products and new factories

Fifth, as a result of all this, we'd expect to see labor's share of national income decline and capital's share rise.

We're already seeing them, and not just because of the crash of 2008. They started showing up in the statistics more than a decade ago. For a while, though, they were masked by the dot-com and housing bubbles, so when the financial crisis hit, years' worth of decline was compressed into 24 months. The trend lines dropped off the cliff.

Corporate executives should worry too. For a while, everything will seem great for them: Falling labor costs will produce heftier profits and bigger bonuses. But then it will all come crashing down. After all, robots might be able to produce goods and services, but they can't consume them

in another sense, we should be very alarmed. It's one thing to suggest that robots are going to cause mass unemployment starting in 2030 or so. We'd have some time to come to grips with that. But the evidence suggests that—slowly, haltingly—it's happening already, and we're simply not prepared for it.

the first jobs to go will be middle-skill jobs. Despite impressive advances, robots still don't have the dexterity to perform many common kinds of manual labor that are simple for humans—digging ditches, changing bedpans. Nor are they any good at jobs that require a lot of cognitive skill—teaching classes, writing magazine articles

in the middle you have jobs that are both fairly routine and require no manual dexterity. So that may be where the hollowing out starts: with desk jobs in places like accounting or customer support.

In fact, there's even a digital sports writer. It's true that a human being wrote this story—ask my mother if you're not sure—but in a decade or two I might be out of a job too

Doctors should probably be worried as well. Remember Watson, the Jeopardy!-playing computer? It's now being fed millions of pages of medical information so that it can help physicians do a better job of diagnosing diseases. In another decade, there's a good chance that Watson will be able to do this without any human help at all.

Take driverless cars.

The next step might be passenger vehicles on fixed routes, like airport shuttles. Then long-haul trucks. Then buses and taxis. There are 2.5 million workers who drive trucks, buses, and taxis for a living, and there's a good chance that, one by one, all of them will be displaced

There will be no place to go but the unemployment lin

we'll need to let go of some familiar convictions. Left-leaning observers may continue to think that stagnating incomes can be improved with better education and equality of opportunity. Conservatives will continue to insist that people without jobs are lazy bums who shouldn't be coddled. They'll both be wrong.

The modern economy is complex, and most of these trends have multiple causes.