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Javier E

The Tech Industry's Psychological War on Kids - Member Feature Stories - Medium - 0 views

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psychology tech industry smartphone social media ethics manipulation children research brain science

shared by Javier E on 16 Mar 18 - No Cached
  • she cried, “They took my f***ing phone!” Attempting to engage Kelly in conversation, I asked her what she liked about her phone and social media. “They make me happy,” she replied.
  • Even though they were loving and involved parents, Kelly’s mom couldn’t help feeling that they’d failed their daughter and must have done something terribly wrong that led to her problems.
  • My practice as a child and adolescent psychologist is filled with families like Kelly’s. These parents say their kids’ extreme overuse of phones, video games, and social media is the most difficult parenting issue they face — and, in many cases, is tearing the family apart.
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  • What none of these parents understand is that their children’s and teens’ destructive obsession with technology is the predictable consequence of a virtually unrecognized merger between the tech industry and psychology.
  • Dr. B.J. Fogg, is a psychologist and the father of persuasive technology, a discipline in which digital machines and apps — including smartphones, social media, and video games — are configured to alter human thoughts and behaviors. As the lab’s website boldly proclaims: “Machines designed to change humans.”
  • These parents have no idea that lurking behind their kids’ screens and phones are a multitude of psychologists, neuroscientists, and social science experts who use their knowledge of psychological vulnerabilities to devise products that capture kids’ attention for the sake of industry profit.
  • psychology — a discipline that we associate with healing — is now being used as a weapon against children.
  • This alliance pairs the consumer tech industry’s immense wealth with the most sophisticated psychological research, making it possible to develop social media, video games, and phones with drug-like power to seduce young users.
  • Likewise, social media companies use persuasive design to prey on the age-appropriate desire for preteen and teen kids, especially girls, to be socially successful. This drive is built into our DNA, since real-world relational skills have fostered human evolution.
  • Called “the millionaire maker,” Fogg has groomed former students who have used his methods to develop technologies that now consume kids’ lives. As he recently touted on his personal website, “My students often do groundbreaking projects, and they continue having impact in the real world after they leave Stanford… For example, Instagram has influenced the behavior of over 800 million people. The co-founder was a student of mine.”
  • Persuasive technology (also called persuasive design) works by deliberately creating digital environments that users feel fulfill their basic human drives — to be social or obtain goals — better than real-world alternatives.
  • Kids spend countless hours in social media and video game environments in pursuit of likes, “friends,” game points, and levels — because it’s stimulating, they believe that this makes them happy and successful, and they find it easier than doing the difficult but developmentally important activities of childhood.
  • While persuasion techniques work well on adults, they are particularly effective at influencing the still-maturing child and teen brain.
  • “Video games, better than anything else in our culture, deliver rewards to people, especially teenage boys,” says Fogg. “Teenage boys are wired to seek competency. To master our world and get better at stuff. Video games, in dishing out rewards, can convey to people that their competency is growing, you can get better at something second by second.”
  • it’s persuasive design that’s helped convince this generation of boys they are gaining “competency” by spending countless hours on game sites, when the sad reality is they are locked away in their rooms gaming, ignoring school, and not developing the real-world competencies that colleges and employers demand.
  • Persuasive technologies work because of their apparent triggering of the release of dopamine, a powerful neurotransmitter involved in reward, attention, and addiction.
  • As she says, “If you don’t get 100 ‘likes,’ you make other people share it so you get 100…. Or else you just get upset. Everyone wants to get the most ‘likes.’ It’s like a popularity contest.”
  • there are costs to Casey’s phone obsession, noting that the “girl’s phone, be it Facebook, Instagram or iMessage, is constantly pulling her away from her homework, sleep, or conversations with her family.
  • Casey says she wishes she could put her phone down. But she can’t. “I’ll wake up in the morning and go on Facebook just… because,” she says. “It’s not like I want to or I don’t. I just go on it. I’m, like, forced to. I don’t know why. I need to. Facebook takes up my whole life.”
  • B.J. Fogg may not be a household name, but Fortune Magazine calls him a “New Guru You Should Know,” and his research is driving a worldwide legion of user experience (UX) designers who utilize and expand upon his models of persuasive design.
  • “No one has perhaps been as influential on the current generation of user experience (UX) designers as Stanford researcher B.J. Fogg.”
  • the core of UX research is about using psychology to take advantage of our human vulnerabilities.
  • As Fogg is quoted in Kosner’s Forbes article, “Facebook, Twitter, Google, you name it, these companies have been using computers to influence our behavior.” However, the driving force behind behavior change isn’t computers. “The missing link isn’t the technology, it’s psychology,” says Fogg.
  • UX researchers not only follow Fogg’s design model, but also his apparent tendency to overlook the broader implications of persuasive design. They focus on the task at hand, building digital machines and apps that better demand users’ attention, compel users to return again and again, and grow businesses’ bottom line.
  • the “Fogg Behavior Model” is a well-tested method to change behavior and, in its simplified form, involves three primary factors: motivation, ability, and triggers.
  • “We can now create machines that can change what people think and what people do, and the machines can do that autonomously.”
  • Regarding ability, Fogg suggests that digital products should be made so that users don’t have to “think hard.” Hence, social networks are designed for ease of use
  • Finally, Fogg says that potential users need to be triggered to use a site. This is accomplished by a myriad of digital tricks, including the sending of incessant notifications
  • moral questions about the impact of turning persuasive techniques on children and teens are not being asked. For example, should the fear of social rejection be used to compel kids to compulsively use social media? Is it okay to lure kids away from school tasks that demand a strong mental effort so they can spend their lives on social networks or playing video games that don’t make them think much at all?
  • Describing how his formula is effective at getting people to use a social network, the psychologist says in an academic paper that a key motivator is users’ desire for “social acceptance,” although he says an even more powerful motivator is the desire “to avoid being socially rejected.”
  • the startup Dopamine Labs boasts about its use of persuasive techniques to increase profits: “Connect your app to our Persuasive AI [Artificial Intelligence] and lift your engagement and revenue up to 30% by giving your users our perfect bursts of dopamine,” and “A burst of Dopamine doesn’t just feel good: it’s proven to re-wire user behavior and habits.”
  • Ramsay Brown, the founder of Dopamine Labs, says in a KQED Science article, “We have now developed a rigorous technology of the human mind, and that is both exciting and terrifying. We have the ability to twiddle some knobs in a machine learning dashboard we build, and around the world hundreds of thousands of people are going to quietly change their behavior in ways that, unbeknownst to them, feel second-nature but are really by design.”
  • Programmers call this “brain hacking,” as it compels users to spend more time on sites even though they mistakenly believe it’s strictly due to their own conscious choices.
  • Banks of computers employ AI to “learn” which of a countless number of persuasive design elements will keep users hooked
  • A persuasion profile of a particular user’s unique vulnerabilities is developed in real time and exploited to keep users on the site and make them return again and again for longer periods of time. This drives up profits for consumer internet companies whose revenue is based on how much their products are used.
  • “The leaders of Internet companies face an interesting, if also morally questionable, imperative: either they hijack neuroscience to gain market share and make large profits, or they let competitors do that and run away with the market.”
  • Social media and video game companies believe they are compelled to use persuasive technology in the arms race for attention, profits, and survival.
  • Children’s well-being is not part of the decision calculus.
  • one breakthrough occurred in 2017 when Facebook documents were leaked to The Australian. The internal report crafted by Facebook executives showed the social network boasting to advertisers that by monitoring posts, interactions, and photos in real time, the network is able to track when teens feel “insecure,” “worthless,” “stressed,” “useless” and a “failure.”
  • The report also bragged about Facebook’s ability to micro-target ads down to “moments when young people need a confidence boost.”
  • These design techniques provide tech corporations a window into kids’ hearts and minds to measure their particular vulnerabilities, which can then be used to control their behavior as consumers. This isn’t some strange future… this is now.
  • The official tech industry line is that persuasive technologies are used to make products more engaging and enjoyable. But the revelations of industry insiders can reveal darker motives.
  • Revealing the hard science behind persuasive technology, Hopson says, “This is not to say that players are the same as rats, but that there are general rules of learning which apply equally to both.”
  • After penning the paper, Hopson was hired by Microsoft, where he helped lead the development of the Xbox Live, Microsoft’s online gaming system
  • “If game designers are going to pull a person away from every other voluntary social activity or hobby or pastime, they’re going to have to engage that person at a very deep level in every possible way they can.”
  • This is the dominant effect of persuasive design today: building video games and social media products so compelling that they pull users away from the real world to spend their lives in for-profit domains.
  • Persuasive technologies are reshaping childhood, luring kids away from family and schoolwork to spend more and more of their lives sitting before screens and phones.
  • “Since we’ve figured to some extent how these pieces of the brain that handle addiction are working, people have figured out how to juice them further and how to bake that information into apps.”
  • Today, persuasive design is likely distracting adults from driving safely, productive work, and engaging with their own children — all matters which need urgent attention
  • Still, because the child and adolescent brain is more easily controlled than the adult mind, the use of persuasive design is having a much more hurtful impact on kids.
  • But to engage in a pursuit at the expense of important real-world activities is a core element of addiction.
  • younger U.S. children now spend 5 ½ hours each day with entertainment technologies, including video games, social media, and online videos.
  • Even more, the average teen now spends an incredible 8 hours each day playing with screens and phones
  • U.S. kids only spend 16 minutes each day using the computer at home for school.
  • Quietly, using screens and phones for entertainment has become the dominant activity of childhood.
  • Younger kids spend more time engaging with entertainment screens than they do in school
  • teens spend even more time playing with screens and phones than they do sleeping
  • kids are so taken with their phones and other devices that they have turned their backs to the world around them.
  • many children are missing out on real-life engagement with family and school — the two cornerstones of childhood that lead them to grow up happy and successful
  • persuasive technologies are pulling kids into often toxic digital environments
  • A too frequent experience for many is being cyberbullied, which increases their risk of skipping school and considering suicide.
  • And there is growing recognition of the negative impact of FOMO, or the fear of missing out, as kids spend their social media lives watching a parade of peers who look to be having a great time without them, feeding their feelings of loneliness and being less than.
  • The combined effects of the displacement of vital childhood activities and exposure to unhealthy online environments is wrecking a generation.
  • as the typical age when kids get their first smartphone has fallen to 10, it’s no surprise to see serious psychiatric problems — once the domain of teens — now enveloping young kids
  • Self-inflicted injuries, such as cutting, that are serious enough to require treatment in an emergency room, have increased dramatically in 10- to 14-year-old girls, up 19% per year since 2009.
  • While girls are pulled onto smartphones and social media, boys are more likely to be seduced into the world of video gaming, often at the expense of a focus on school
  • it’s no surprise to see this generation of boys struggling to make it to college: a full 57% of college admissions are granted to young women compared with only 43% to young men.
  • Economists working with the National Bureau of Economic Research recently demonstrated how many young U.S. men are choosing to play video games rather than join the workforce.
  • The destructive forces of psychology deployed by the tech industry are making a greater impact on kids than the positive uses of psychology by mental health providers and child advocates. Put plainly, the science of psychology is hurting kids more than helping them.
  • Hope for this wired generation has seemed dim until recently, when a surprising group has come forward to criticize the tech industry’s use of psychological manipulation: tech executives
  • Tristan Harris, formerly a design ethicist at Google, has led the way by unmasking the industry’s use of persuasive design. Interviewed in The Economist’s 1843 magazine, he says, “The job of these companies is to hook people, and they do that by hijacking our psychological vulnerabilities.”
  • Marc Benioff, CEO of the cloud computing company Salesforce, is one of the voices calling for the regulation of social media companies because of their potential to addict children. He says that just as the cigarette industry has been regulated, so too should social media companies. “I think that, for sure, technology has addictive qualities that we have to address, and that product designers are working to make those products more addictive, and we need to rein that back as much as possible,”
  • “If there’s an unfair advantage or things that are out there that are not understood by parents, then the government’s got to come forward and illuminate that.”
  • Since millions of parents, for example the parents of my patient Kelly, have absolutely no idea that devices are used to hijack their children’s minds and lives, regulation of such practices is the right thing to do.
  • Another improbable group to speak out on behalf of children is tech investors.
  • How has the consumer tech industry responded to these calls for change? By going even lower.
  • Facebook recently launched Messenger Kids, a social media app that will reach kids as young as five years old. Suggestive that harmful persuasive design is now honing in on very young children is the declaration of Messenger Kids Art Director, Shiu Pei Luu, “We want to help foster communication [on Facebook] and make that the most exciting thing you want to be doing.”
  • the American Psychological Association (APA) — which is tasked with protecting children and families from harmful psychological practices — has been essentially silent on the matter
  • APA Ethical Standards require the profession to make efforts to correct the “misuse” of the work of psychologists, which would include the application of B.J. Fogg’s persuasive technologies to influence children against their best interests
  • Manipulating children for profit without their own or parents’ consent, and driving kids to spend more time on devices that contribute to emotional and academic problems is the embodiment of unethical psychological practice.
  • “Never before in history have basically 50 mostly men, mostly 20–35, mostly white engineer designer types within 50 miles of where we are right now [Silicon Valley], had control of what a billion people think and do.”
  • Some may argue that it’s the parents’ responsibility to protect their children from tech industry deception. However, parents have no idea of the powerful forces aligned against them, nor do they know how technologies are developed with drug-like effects to capture kids’ minds
  • Others will claim that nothing should be done because the intention behind persuasive design is to build better products, not manipulate kids
  • similar circumstances exist in the cigarette industry, as tobacco companies have as their intention profiting from the sale of their product, not hurting children. Nonetheless, because cigarettes and persuasive design predictably harm children, actions should be taken to protect kids from their effects.
  • in a 1998 academic paper, Fogg describes what should happen if things go wrong, saying, if persuasive technologies are “deemed harmful or questionable in some regard, a researcher should then either take social action or advocate that others do so.”
  • I suggest turning to President John F. Kennedy’s prescient guidance: He said that technology “has no conscience of its own. Whether it will become a force for good or ill depends on man.”
  • The APA should begin by demanding that the tech industry’s behavioral manipulation techniques be brought out of the shadows and exposed to the light of public awareness
  • Changes should be made in the APA’s Ethics Code to specifically prevent psychologists from manipulating children using digital machines, especially if such influence is known to pose risks to their well-being.
  • Moreover, the APA should follow its Ethical Standards by making strong efforts to correct the misuse of psychological persuasion by the tech industry and by user experience designers outside the field of psychology.
  • It should join with tech executives who are demanding that persuasive design in kids’ tech products be regulated
  • The APA also should make its powerful voice heard amongst the growing chorus calling out tech companies that intentionally exploit children’s vulnerabilities.
Javier E

Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Stree... - 1 views

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6

economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith

shared by Javier E on 15 Aug 19 - No Cached
  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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  • He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.
  • Reality is spun from stories, not from material. Zdeněk Neubauer
  • Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.
  • Outside of our history, we have nothing more.
  • The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.
  • History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.
  • “The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”
  • we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).
  • stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”
  • “The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”
  • contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,
  • I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.
  • That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.
  • is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.
  • Almost all of the key concepts by which economics operates, both consciously and unconsciously, have a long history, and their roots extend predominantly outside the range of economics, and often completely beyond that of science.
  • The History of Animal Spirits: Dreams Never Sleep
  • In this sense, “the study of economics is too narrow and too fragmentary to lead to valid insight, unless complemented and completed by a study of metaeconomics.”17
  • The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.
  • I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.
  • We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I
  • argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.
  • In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.
  • I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.
  • This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.
  • Progress (Naturalness and Civilization)
  • The Economy of Good and Evil
  • from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.
  • the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?
  • The Need for Greed: The History of Consumption and Labor
  • Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
  • mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?
  • idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”
  • All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.
  • Masters of the Truth
  • Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?
  • Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
  • The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.
  • The History of the Invisible Hand of the Market and Homo Economicus
  • We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).
  • When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
  • By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.
  • the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.
  • there is no mention of either money or war; for example, not once does anyone in the whole epic sell or purchase something.5 No nation conquers another, and we do not encounter a mention even of the threat of violence.
  • is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.
  • Gilgamesh becomes a hero not only due to his strength, but also due to discoveries and deeds whose importance were in large part economic—direct gaining of construction materials in the case of felling the cedar forest, stopping Enkidu from devastating Uruk’s economy, and discovering new desert routes during his expeditions.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.
  • But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.
  • As Joseph Stiglitz says, One of the great “tricks” (some say “insights”) of neoclassical economics is to treat labour like any other factor of production. Output is written as a function of inputs—steel, machines, and labour. The mathematics treats labour like any other commodity, lulling one into thinking of labour like an ordinary commodity, such as steel or plastic.
  • Even the earliest cultures were aware of the value of cooperation on the working level—today we call this collegiality, fellowship, or, if you want to use a desecrated term, comradeship. These “lesser relationships” are useful and necessary for society and for companies because work can be done much faster and more effectively if people get along with each other on a human level
  • But true friendship, which becomes one of the central themes of the Epic of Gilgamesh, comes from completely different material than teamwork. Friendship, as C. S. Lewis accurately describes it, is completely uneconomical, unbiological, unnecessary for civilization, and an unneeded relationship
  • Here we have a beautiful example of the power of friendship, one that knows how to transform (or break down) a system and change a person. Enkidu, sent to Gilgamesh as a punishment from the gods, in the end becomes his faithful friend, and together they set out against the gods. Gilgamesh would never have gathered the courage to do something like that on his own—nor would Enkidu.
  • Due to their friendship, Gilgamesh and Enkidu then intend to stand up to the gods themselves and turn a holy tree into mere (construction) material they can handle almost freely, thereby making it a part of the city-construct, part of the building material of civilization, thus “enslaving” that which originally was part of wild nature. This is a beautiful proto-example of the shifting of the borders between the sacred and profane (secular)—and to a certain extent also an early illustration of the idea that nature is there to provide cities and people with raw material and production resources.
  • started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.
  • But labour is unlike any other commodity. The work environment is of no concern for steel; we do not care about steel’s well-being.16
  • Both heroes change—each from opposite poles—into humans. In this context, a psychological dimension to the story may be useful: “Enkidu (…) is Gilgamesh’s alter ego, the dark, animal side of his soul, the complement to his restless heart. When Gilgamesh found Enkidu, he changed from a hated tyrant into the protector of his city. (…)
  • To be human seems to be somewhere in between, or both of these two. We
  • this moment of rebirth from an animal to a human state, the world’s oldest preserved epic implicitly hints at something highly important. Here we see what early cultures considered the beginning of civilization. Here is depicted the difference between people and animals or, better, savages. Here the epic quietly describes birth, the awakening of a conscious, civilized human. We are witnesses to the emancipation of humanity from animals,
  • The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.
  • The price we pay for independence from the whims of nature is dependence on our societies and civilizations. The more sophisticated a given society is as a whole, the less its members are able to survive on their own as individuals, without society.
  • The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.
  • Human life in the city gains a new dimension and suddenly it seems more natural to take up issues going beyond the life span of an individual. “The city wall symbolizes as well as founds the permanence of the city as an institution which will remain forever and give its inhabitants the certainty of unlimited safety, allowing them to start investing with an outlook reaching far beyond the borders of individual life.
  • The wall around the city of Uruk is, among other things, a symbol of an internal distancing from nature, a symbol of revolts against submission to laws that do not come under the control of man and that man can at most discover and use to his benefit.
  • “The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
  • If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”
  • can be said that Enkidu was therefore happy in his natural state, because all of his needs were satiated. On the other hand, with people, it appears that the more a person has, the more developed and richer, the greater the number of his needs (including the unsaturated ones).
  • the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53
  • Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.
  • Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.
  • The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.
  • is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.
  • Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.
  • this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.
  • If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.
  • If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.
  • How does this affect economics?
  • us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.
  • Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.
  • Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.
  • By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
  • Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.
  • A similar motif appears a thousand years after the reversal, which is well known even to noneconomists as the central idea of economics: the invisible hand of the market.
  • A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.
  • Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.
  • immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
  • After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.
  • In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh
  • The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81
  • It is simpler to observe the main features of our civilization at a time when the picture was more readable—at a time when our civilization was just being born and was still “half-naked.” In other words, we have tried to dig down to the bedrock of our written civilization;
  • today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
  • the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
  • is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
  • The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.
  • We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.
  • Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.
  • Gilgamesh had a wall built that divided the city from wild nature and created a space for the first human culture. Nevertheless, “not even far-reaching works of civilization could satisfy human desire.”
  • Friendship shows us new, unsuspected adventures, gives us the opportunity to leave the wall and to become neither its builder nor its part—to not be another brick in the wall.
  • with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.
  • to change the system, to break down that which is standing and go on an expedition against the gods (to awaken, from naïveté to awakening) requires friendship.
  • For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,
  • The thought that humanity comes at the expense of efficiency is just as old as humanity itself—as we have shown, subjects without emotion are the ideal of many tyrants.
  • The epic later crashes this idea through the friendship of Gilgamesh and Enkidu. Friendship—the biologically least essential love, which at first sight appears to be unnecessary
  • less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.
  • human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.
  • For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
  • Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It
  • They practiced money lending, traded in many assets (…) and especially were engaged in the trading of shares on capital markets, worked in currency exchange and frequently figured as mediators in financial transactions (…), they functioned as bankers and participated in emissions of all possible forms.
  • As regards modern capitalism (as opposed to the ancient and medieval periods) … there are activities in it which are, in certain forms, inherently (and completely necessarily) present—both from an economic and legal standpoint.7
  • As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:
  • Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.
  • Jews believe in historical progress, and that progress is in this world.
  • For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?
  • Hebrew religiosity is therefore strongly connected with this world, not with any abstract world, and those who take pleasure in worldly possessions are not a priori doing anything wrong.
  • PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.
  • The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at
  • There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12
  • about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.
  • What’s more, economic progress has almost become an assumption of modern functional societies. We expect growth. We take it automatically. Today, if nothing “new” happens, if GDP does not grow (we say it stagnates) for several quarters, we consider it an anomaly.
  • however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.
  • Because care for the soul has today been replaced by care for external things,
  • This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.
  • Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.
  • Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.
  • economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.
  • REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.
  • Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21
  • As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,
  • The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.
  • The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,
  • The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),
  • THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.
  • This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.
  • manliness and strength,28 knowledge and intelligence,29 wisdom and understanding, vigilance and performance, fame and renown (fame which overcomes enemies because “a thousand men would not be able to stand firmly in his presence”);30 the hero is a good shepherd (who takes care of his subordinates), is a copper-clad rampart, the shield of the land, and the defender of heroes.
  • Each of us probably has a sort of “hero within”—a kind of internal role-model, template, an example that we (knowingly or not) follow. It is very important what kind of archetype it is, because its role is dominantly irrational and changes depending on time and the given civilization.
  • The oldest was the so-called Trickster—a fraudster; then the culture bearer—Rabbit; the musclebound hero called Redhorn; and finally the most developed form of hero: the Twins.
  • the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
  • Jacob defrauds his father Isaac and steals his brother Esau’s blessing of the firstborn. Moses murders an Egyptian. King David seduces the wife of his military commander and then has him killed. In his old age, King Solomon turns to pagan idols, and so on.
  • Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.
  • The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32
  • We do not have to go far for examples. Noah gets so drunk he becomes a disgrace; Lot lets his own daughters seduce him in a similar state of drunkenness. Abraham lies and (repeatedly) tries to sell his wife as a concubine.
  • the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.
  • To a certain extent it can be said that the Hebrews—and later Christianity—added another archetype, the archetype of the heroic Sufferer.35 Job
  • Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress
  • For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.
  • the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods
  • This is very important for democratic capitalism, because the Jewish heroic archetype lays the groundwork much better for the development of the later phenomenon of the hero, which better suits life as we know it today. “The heroes laid down their arms and set about trading to become wealthy.”
  • in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
  • RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.
  • Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an
  • The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39
  • Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
  • 44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.
  • which for the methodology of science and economics is very important because disorder and chaos are difficult to examine scientifically.43 Faith in some kind of rational and logical order in a system (society, the economy) is a silent assumption of any (economic) examination.
  • THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,
  • From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.
  • Hebrew culture laid the foundations for the scientific examination of the world.
  • Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.
  • I was there when he set heavens in place, when he marked out the horizon on the face of the deep (…) Then I was the craftsman at his side.47
  • There are more urgings to gain wisdom in the Old Testament. “Wisdom calls aloud in the street (…): ‘How long will you simple ones love your simple ways?’”49 Or several chapters later: “Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding.”50
  • examination is not forbidden. The fact that order can be grasped by human reason is another unspoken assumption that serves as a cornerstone of any scientific examination.
  • then, my sons, listen to me; blessed are those who keep my ways (…) Blessed is the man who listens to me, watching daily at my doors, waiting at my doorway. For whoever finds me finds life and receives favor from the Lord.
  • the rational examination of nature has its roots, surprisingly, in religion.
  • The Lord brought me forth as the first of his works, before his deeds of old. I was appointed from eternity, from the beginning, before the world began. When there were no oceans, I was given birth, when there were no springs abounding with water, before the mountains were settled in place,
  • The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:
  • The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:
  • MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:
  • Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.
  • The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.
  • Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53
  • He invented (fictitiously and completely abstractly!) a framework that was generally accepted and soon “made into” reality. Marx invented similarly; he created the notion of class exploitation. Through his idea, the perception of history and reality was changed for a large part of the world for nearly an entire century.
  • Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we
  • How does this relate to economics? Reality itself, our “objective” world, is cocreated, man himself participates in the creation; creation, which is somewhat constantly being re-created.
  • Our scientific models put the finishing touches on reality, because (1) they interpret, (2) they give phenomena a name, (3) they enable us to classify the world and phenomena according to logical forms, and (4) through these models we de facto perceive reality.
  • When man finds a new linguistic framework or analytical model, or stops using the old one, he molds or remolds reality. Models are only in our heads; they are not “in objective reality.” In this sense, Newton invented (not merely discovered!) gravity.
  • A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).
  • Keynes enters into the history of economic thought from the same intellectual cadence; his greatest contribution to economics was precisely the resurrection of the imperceptible—for example in the form of animal spirits or uncertainty. The economist Piero Mini even ascribes Keynes’s doubting and rebellious approach to his almost Talmudic education.63
  • God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61
  • in this viewpoint it is possible to see how Jewish thought is mystical—it admits the role of the incomprehensible. Therefore, through its groundedness, Jewish thought indulges mystery and defends itself against a mechanistic-causal explanation of the world: “The Jewish way of thinking, according to Veblen, emphasizes the spiritual, the miraculous, the intangible.
  • The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.
  • What’s more, history seems to be based on morals; morals seem to be the key determining factors of history. For the Hebrews, history proceeds according to how morally its actors behave.
  • The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
  • GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.
  • This was not about moral-human evil, but rather a kind of natural evil. It is as if good and evil were not touched by morality at all. Evil simply occurred. Period.
  • the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.
  • Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
  • discrepancy between savings and investment, and others are convinced of the monetary essence
  • The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.
  • sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To
  • It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.
  • Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).
  • The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.
  • This principle stands directly against the self-fulfilling prophecy,80 the well-known concept of social science. Certain prophecies become self-fulfilling when expressed (and believed) while others become self-contradicting prophecies when pronounced (and believed).
  • If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.
  • Let us further note that the first “macroeconomic forecast” appears in a dream.
  • back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.
  • Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.
  • If you pay attention to these laws and are careful to follow them, then the Lord your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers.
  • Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,
  • From today’s perspective, we can state that the moral dimension entirely disappeared from economic thought for a long time, especially due to the implementation of Mandeville’s concept of private vices that contrarily support the public welfare
  • Without being timid, we can say this is the first documented attempt to explain the economic cycle. The economic cycle, the explanation of which is to this day a mystery to economists, is explained morally in the Old Testament.
  • But how do we consolidate these two conflicting interpretations of the economic cycle: Can ethics be responsible for it or not? Can we influence reality around us through our acts?
  • it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.
  • THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
  • Kant, the most important modern thinker in the area of ethics, answers on the contrary that if we carry out a “moral” act on the basis of economic calculus (therefore we carry out an hedonistic consideration; see below) in the expectation of later recompense, its morality is lost. Recompense, according to the strict Kant, annuls ethics.
  • Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.
  • Job’s friends try to show that he must have sinned in some way and, in doing so, deserved God’s punishment. They are absolutely unable to imagine a situation in which Job, as a righteous man, would suffer without (moral) cause. Nevertheless, Job insists that he deserves no punishment because he has committed no offense: “God has wronged me and drawn his net around me.”94
  • But Job remains righteous, even though it does not pay to do so: Though he slay me, yet will I hope in him.95 And till I die, I will not deny my integrity I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.96
  • He remains righteous, even if his only reward is death. What economic advantage could he have from that?
  • morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.
  • This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.
  • So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.
  • the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly
  • constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.
  • In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.
  • the mining of enjoyment must not come at the expense of exogenously given rules. “Judaism comes therefore to train or educate the unbounded desire … for wealth, so that market activities and patterns of consumption operate within a God-given morality.”102
  • The Epicureans acted with the goal of maximizing utility without regard for rules (rules developed endogenously, from within the system, computed from that which increased utility—this was one of the main trumps of the Epicurean school; they did not need exogenously given norms, and argued that they could “calculate” ethics (what to do) for every given situation from the situation itself).
  • The Stoics could not seek their enjoyment—or, by another name, utility. They could not in any way look back on it, and in no way could they count on it. They could only live according to rules (the greatest weakness of this school was to defend where exogenously the given rules came from and whether they are universal) and take a indifferent stand to the results of their actions.
  • To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.
  • Their relationship to the law was not supposed to be one of duty,105 but one of gratitude, love. Hebrews were to do good (outgoing), because goodness (incoming) has already been done to them.
  • This is in stark contrast with today’s legal system, where, naturally, no mention of love or gratefulness exists. But God expects a full internalization of the commandments and their fulfillment with love, not as much duty. By no means was this on the basis of the cost-benefit analyses so widespread in economics today, which determines when it pays to break the law and when not to (calculated on the basis of probability of being caught and the amount of punishment vis-à-vis the possible gain).
  • And now, O Israel, what does the Lord your God ask of you but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to observe the Lord’s commands and decrees that I am giving you today for your own good? To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it. Yet the Lord set his affection on your forefathers and loved them….
  • the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.
  • The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
  • Human laws, if they are in conflict with the responsibilities given by God, are subordinate to personal responsibility, and a Jew cannot simply join the majority, even if it is legally allowed. Ethics, the concept of good, is therefore always superior to all local laws, rules, and customs:
  • THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
  • Laws given by God are binding for Jews, and God is the absolute source of all values,
  • The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.
  • The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
  • In addition, they were aware of a thin two-way line between owner and owned. We own material assets, but—to a certain extent—they own us and tie us down. Once we become used to a certain material
  • This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.
  • One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”
  • SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
  • regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.
  • In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126
  • Such provisions can be seen as the antimonopoly and social measures of the time. The economic system even then had a clear tendency to converge toward asset concentration, and therefore power as well. It would appear that these provisions were supposed to prevent this process
  • Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.
  • These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.
  • Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.
  • Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.
  • “Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135
  • In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.
  • With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.
  • Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.
  • ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.
  • Money is a social abstractum. It is a social agreement, an unwritten contract.
  • The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”
  • To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”
  • Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
  • there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:
  • In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
  • Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.
  • In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
  • Today the position and significance of money and debt has gone so far and reached such a dominant position in society that operating with debts (fiscal policy) or interest or money supply (monetary policy) means that these can, to a certain extent, direct (or at least strongly influence) the whole economy and society.
  • In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.
  • As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.
  • money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever
  • Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.
  • MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
  • Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.
  • labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.
  • LABOR AND REST: THE SABBATH ECONOMY
  • The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.
  • It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain
  • But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.
  • If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.
  • Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.
  • Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”
  • Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.
  • Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.
  • good example is the commandment on the Sabbath. No one at all could work on this day, not even the ones who were subordinate to an observant Jew:
  • the message of the commandment on Saturday communicated that people were not primarily created for labor.
  • Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
  • Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
  • we have days when we must not toil connected (at least lexically) with the word meaning emptiness: the English term “vacation” (or emptying), as with the French term, les vacances, or German die Freizeit, meaning open time, free time, but also…
  • Translated into economic language: The meaning of utility is not to increase it permanently but to rest among existing gains. Why do we learn how to constantly increase gains but not how to…
  • This dimension has disappeared from today’s economics. Economic effort has no goal at which it would be possible to rest. Today we only know growth for growth’s sake, and if our company or country prospers, that does not…
  • Six-sevenths of time either be dissatisfied and reshape the world into your own image, man, but one-seventh you will rest and not change the creation. On the seventh day, enjoy creation and enjoy the work of your hands.
  • the purpose of creation was not just creating but that it had an end, a goal. The process was just a process, not a purpose. The whole of Being was created so…
  • Saturday was not established to increase efficiency. It was a real ontological break that followed the example of the Lord’s seventh day of creation. Just as the Lord did not rest due to tiredness or to regenerate strength; but because He was done. He was done with His work, so that He could enjoy it, to cherish in His creation.
  • If we believe in rest at all today, it is for different reasons. It is the rest of the exhausted machine, the rest of the weak, and the rest of those who can’t handle the tempo. It’s no wonder that the word “rest…
  • Related to this, we have studied the first mention of a business cycle with the pharaoh’s dream as well as seen a first attempt (that we may call…
  • We have tried to show that the quest for a heaven on Earth (similar to the Jewish one) has, in its desacralized form, actually also been the same quest for many of the…
  • We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
  • ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.
  • CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…
  • We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
  • What is the relationship between the good and evil that we do (outgoing) and the utility of disutility that we (expect to) get as a reward (incoming)? We have seen…
  • The Hebrews never despised material wealth; on contrary, the Jewish faith puts great responsibility on property management. Also the idea of progress and the linear perception of time gives our (economic)…
  • the Hebrews managed to find something of a happy compromise between both of these principles.
  • will not be able to completely understand the development of the modern notion of economics without understanding the disputes between the Epicureans and the Stoics;
  • poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.
  • those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.
  • Today’s scientific truth is founded on the notion of exact and objective facts, but poetic truth stands on an interior (emotional) consonance with the story or poem. “It is not addressed first to the brain … [myth] talks directly to the feeling system.”
  • “epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.
  • Ancient philosophy, just as science would later, tries to find constancy, constants, quantities, inalterabilities. Science seeks (creates?) order and neglects everything else as much as it can. In their own experiences, everyone knows that life is not like that,
  • Just as scientists do today, artists drew images of the world that were representative, and therefore symbolic, picturelike, and simplifying (but thus also misleading), just like scientific models, which often do not strive to be “realistic.”
  • general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8
Javier E

Don't Be Surprised About Facebook and Teen Girls. That's What Facebook Is. | Talking Po... - 0 views

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facebook instagram algorithm machine learning business model tobacco engagement addiction psychology brain science social media technology

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  • First, set aside all morality. Let’s say we have a 16 year old girl who’s been doing searches about average weights, whether boys care if a girl is overweight and maybe some diets. She’s also spent some time on a site called AmIFat.com. Now I set you this task. You’re on the other side of the Facebook screen and I want you to get her to click on as many things as possible and spend as much time clicking or reading as possible. Are you going to show her movie reviews? Funny cat videos? Homework tips? Of course, not.
  • If you’re really trying to grab her attention you’re going to show her content about really thin girls, how their thinness has gotten them the attention of boys who turn out to really love them, and more diets
  • We both know what you’d do if you were operating within the goals and structure of the experiment.
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  • This is what artificial intelligence and machine learning are. Facebook is a series of algorithms and goals aimed at maximizing engagement with Facebook. That’s why it’s worth hundreds of billions of dollars. It has a vast army of computer scientists and programmers whose job it is to make that machine more efficient.
  • the Facebook engine is designed to scope you out, take a psychographic profile of who you are and then use its data compiled from literally billions of humans to serve you content designed to maximize your engagement with Facebook.
  • Put in those terms, you barely have a chance.
  • Of course, Facebook can come in and say, this is damaging so we’re going to add some code that says don’t show this dieting/fat-shaming content but girls 18 and under. But the algorithms will find other vulnerabilities
  • So what to do? The decision of all the companies, if not all individuals, was just to lie. What else are you going to do? Say we’re closing down our multi-billion dollar company because our product shouldn’t exist?
  • why exactly are you creating a separate group of subroutines that yanks Facebook back when it does what it’s supposed to do particularly well? This, indeed, was how the internal dialog at Facebook developed, as described in the article I read. Basically, other executives said: Our business is engagement, why are we suggesting people log off for a while when they get particularly engaged?
  • what it makes me think about more is the conversations at Tobacco companies 40 or 50 years ago. At a certain point you realize: our product is bad. If used as intended it causes lung cancer, heart disease and various other ailments in a high proportion of the people who use the product. And our business model is based on the fact that the product is chemically addictive. Our product is getting people addicted to tobacco so that they no longer really have a choice over whether to buy it. And then a high proportion of them will die because we’ve succeeded.
  • . The algorithms can be taught to find and address an infinite numbers of behaviors. But really you’re asking the researchers and programmers to create an alternative set of instructions where Instagram (or Facebook, same difference) jumps in and does exactly the opposite of its core mission, which is to drive engagement
  • You can add filters and claim you’re not marketing to kids. But really you’re only ramping back the vast social harm marginally at best. That’s the product. It is what it is.
  • there is definitely an analogy inasmuch as what you’re talking about here aren’t some glitches in the Facebook system. These aren’t some weird unintended consequences that can be ironed out of the product. It’s also in most cases not bad actors within Facebook. It’s what the product is. The product is getting attention and engagement against which advertising is sold
  • How good is the machine learning? Well, trial and error with between 3 and 4 billion humans makes you pretty damn good. That’s the product. It is inherently destructive, though of course the bad outcomes aren’t distributed evenly throughout the human population.
  • The business model is to refine this engagement engine, getting more attention and engagement and selling ads against the engagement. Facebook gets that revenue and the digital roadkill created by the product gets absorbed by the society at large
  • Facebook is like a spectacularly profitable nuclear energy company which is so profitable because it doesn’t build any of the big safety domes and dumps all the radioactive waste into the local river.
  • in the various articles describing internal conversations at Facebook, the shrewder executives and researchers seem to get this. For the company if not every individual they seem to be following the tobacco companies’ lead.
  • Ed. Note: TPM Reader AS wrote in to say I was conflating Facebook and Instagram and sometimes referring to one or the other in a confusing way. This is a fair
  • I spoke of them as the same intentionally. In part I’m talking about Facebook’s corporate ownership. Both sites are owned and run by the same parent corporation and as we saw during yesterday’s outage they are deeply hardwired into each other.
  • the main reason I spoke of them in one breath is that they are fundamentally the same. AS points out that the issues with Instagram are distinct because Facebook has a much older demographic and Facebook is a predominantly visual medium. (Indeed, that’s why Facebook corporate is under such pressure to use Instagram to drive teen and young adult engagement.) But they are fundamentally the same: AI and machine learning to drive engagement. Same same. Just different permutations of the same dynamic.
Javier E

What Is Wrong with the West's Economies? by Edmund S. Phelps | The New York Review of B... - 1 views

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shared by Javier E on 22 Aug 15 - No Cached
  • What is wrong with the economies of the West—and with economics?
  • With little or no effective policy initiative giving a lift to the less advantaged, the jarring market forces of the past four decades—mainly the slowdowns in productivity that have spread over the West and, of course, globalization, which has moved much low-wage manufacturing to Asia—have proceeded, unopposed, to drag down both employment and wage rates at the low end. The setback has cost the less advantaged not only a loss of income but also a loss of what economists call inclusion—access to jobs offering work and pay that provide self-respect.
  • The classical idea of political economy has been to let wage rates sink to whatever level the market takes them, and then provide everyone with the “safety net” of a “negative income tax,” unemployment insurance, and free food, shelter, clothing, and medical care
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  • This failing in the West’s economies is also a failing of economics
  • many people have long felt the desire to do something with their lives besides consuming goods and having leisure. They desire to participate in a community in which they can interact and develop.
  • Our prevailing political economy is blind to the very concept of inclusion; it does not map out any remedy for the deficiency
  • injustice of another sort. Workers in decent jobs view the economy as unjust if they or their children have virtually no chance of climbing to a higher rung in the socioeconomic ladder
  • “Money is like blood. You need it to live but it isn’t the point of life.”4
  • justice is not everything that people need from their economy. They need an economy that is good as well as just. And for some decades, the Western economies have fallen short of any conception of a “good economy”—an economy offering a “good life,” or a life of “richness,” as some humanists call it
  • The good life as it is popularly conceived typically involves acquiring mastery in one’s work, thus gaining for oneself better terms—or means to rewards, whether material, like wealth, or nonmaterial—an experience we may call “prospering.”
  • As humanists and philosophers have conceived it, the good life involves using one’s imagination, exercising one’s creativity, taking fascinating journeys into the unknown, and acting on the world—an experience I call “flourishing.”
  • prospering and flourishing became prevalent in the nineteenth century when, in Europe and America, economies emerged with the dynamism to generate their own innovation.
  • What is the mechanism of the slowdown in productivity
  • prospering
  • In nineteenth-century Britain and America, and later Germany and France, a culture of exploration, experimentation, and ultimately innovation grew out of the individualism of the Renaissance, the vitalism of the Baroque era, and the expressionism of the Romantic period.
  • What made innovating so powerful in these economies was that it was not limited to elites. It permeated society from the less advantaged parts of the population on up.
  • High-enough wages, low-enough unemployment, and wide-enough access to engaging work are necessary for a “good-enough” economy—though far from sufficient. The material possibilities of the economy must be adequate for the nonmaterial possibilities to be widespread—the satisfactions of prospering and of flourishing through adventurous, creative, and even imaginative work.
  • today’s standard economics. This economics, despite its sophistication in some respects, makes no room for economies in which people are imagining new products and using their creativity to build them. What is most fundamentally “wrong with economics” is that it takes such an economy to be the norm—to be “as good as it gets.”
  • ince around 1970, or earlier in some cases, most of the continental Western European economies have come to resemble more completely the mechanical model of standard economics. Most companies are highly efficient. Households, apart from the very low-paid or unemployed, have gone on saving
  • In most of Western Europe, economic dynamism is now at lows not seen, I would judge, since the advent of dynamism in the nineteenth century. Imagining and creating new products has almost disappeared from the continent
  • The bleak levels of both unemployment and job satisfaction in Europe are testimony to its dreary economies.
  • a recent survey of household attitudes found that, in “happiness,” the median scores in Spain (54), France (51), Italy (48), and Greece (37) are all below those in the upper half of the nations labeled “emerging”—Mexico (79), Venezuela (74), Brazil (73), Argentina (66), Vietnam (64), Colombia (64), China (59), Indonesia (58), Chile (58), and Malaysia (56)
  • The US economy is not much better. Two economists, Stanley Fischer and Assar Lindbeck, wrote of a “Great Productivity Slowdown,” which they saw as beginning in the late 1960s.11 The slowdown in the growth of capital and labor combined—what is called “total factor productivity”—is star
  • though the injustices in the West’s economies are egregious, they ought not to be seen as a major cause of the productivity slowdowns and globalization. (For one thing, a slowdown of productivity started in the US in the mid-1960s and the sharp loss of manufacturing jobs to poorer countries occurred much later—from the late 1970s to the early 1990s.) Deeper causes must be at work.
  • The plausible explanation of the syndrome in America—the productivity slowdown and the decline of job satisfaction, among other things—is a critical loss of indigenous innovation in the established industries like traditional manufacturing and services that was not nearly offset by the innovation that flowered in a few new industries
  • hat then caused this narrowing of innovation? No single explanation is persuasive. Yet two classes of explanations have the ring of truth. One points to suppression of innovation by vested interests
  • some professions, such as those in education and medicine, have instituted regulation and licensing to curb experimentation and change, thus dampening innovation
  • established corporations—their owners and stakeholders—and entire industries, using their lobbyists, have obtained regulations and patents that make it harder for new firms to gain entry into the market and to compete with incumbents.
  • The second explanation points to a new repression of potential innovators by families and schools. As the corporatist values of control, solidarity, and protection are invoked to prohibit innovation, traditional values of conservatism and materialism are often invoked to inhibit a young person from undertaking an innovation.
  • ow might Western nations gain—or regain—widespread prospering and flourishing? Taking concrete actions will not help much without fresh thinking: people must first grasp that standard economics is not a guide to flourishing—it is a tool only for efficiency.
  • Widespread flourishing in a nation requires an economy energized by its own homegrown innovation from the grassroots on up. For such innovation a nation must possess the dynamism to imagine and create the new—economic freedoms are not sufficient. And dynamism needs to be nourished with strong human values.
  • a reform of education stands out. The problem here is not a perceived mismatch between skills taught and skills in demand
  • The problem is that young people are not taught to see the economy as a place where participants may imagine new things, where entrepreneurs may want to build them and investors may venture to back some of them. It is essential to educate young people to this image of the economy.
  • It will also be essential that high schools and colleges expose students to the human values expressed in the masterpieces of Western literature, so that young people will want to seek economies offering imaginative and creative careers. Education systems must put students in touch with the humanities in order to fuel the human desire to conceive the new and perchance to achieve innovations
  • This reorientation of general education will have to be supported by a similar reorientation of economic education.
Javier E

Thieves of experience: On the rise of surveillance capitalism - 1 views

www.roughtype.com/?p=8608

tech brain science knowledge memory distraction smartphone learning creativity reasoning problem-solving silicon valley elite surveillance capitalism psychology

shared by Javier E on 06 May 20 - No Cached
  • Harvard Business School professor emerita Shoshana Zuboff argues in her new book that the Valley’s wealth and power are predicated on an insidious, essentially pathological form of private enterprise—what she calls “surveillance capitalism.” Pioneered by Google, perfected by Facebook, and now spreading throughout the economy, surveillance capitalism uses human life as its raw material. Our everyday experiences, distilled into data, have become a privately-owned business asset used to predict and mold our behavior, whether we’re shopping or socializing, working or voting.
  • By reengineering the economy and society to their own benefit, Google and Facebook are perverting capitalism in a way that undermines personal freedom and corrodes democracy.
  • Under the Fordist model of mass production and consumption that prevailed for much of the twentieth century, industrial capitalism achieved a relatively benign balance among the contending interests of business owners, workers, and consumers. Enlightened executives understood that good pay and decent working conditions would ensure a prosperous middle class eager to buy the goods and services their companies produced. It was the product itself — made by workers, sold by companies, bought by consumers — that tied the interests of capitalism’s participants together. Economic and social equilibrium was negotiated through the product.
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  • 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,”
kushnerha

BBC - Capital - Busy: A badge of honour or a big lie? - 0 views

www.bbc.com/...a-badge-of-honour-or-a-big-lie

bbc multitasking busyness productivity

shared by kushnerha on 23 Oct 15 - No Cached
  • idea of the “busy trap” to the overwhelming feeling many professionals have at the end of each day and week, overload is a real issue.
  • But what if we’re looking at the issue in the wrong way? What if you could reframe your thinking, feel less busy and perhaps get more done?
  • somewhere along the way we were convinced that being ‘busy’ was good for us
  • ...13 more annotations...
  • “We’re not busy … we’re productive,” he wrote. “And yes, there’s a difference.”
  • “Busy paints a picture of people who are either keeping themselves occupied or who don’t have the time to do other things,” Spurlock explained. “Productive describes an environment rich with goals, personal and professional achievements and wrapped in success, a place where you're actually creating something vs just doing something.”
  • “Personal productivity… is the most important one, as it centres around the time that I make to spend with my family, my friends and doing things that fulfil me as a living person,”
  • Financial productivity is an important one, as these are the projects that create consistent revenue
  • “Being busy has somehow become a badge of honor. The prevailing notion is that if you aren’t super busy, you aren’t important or hard working,”
  • busyness makes you less productive
  • “When we think of a super busy person, we think of a ringing phone, a flood of emails and a schedule that’s bursting at the seams with major projects and side-projects hitting simultaneously,” he wrote. “Such a situation inevitably leads to multi-tasking and interruptions, which are both deadly to productivity.”
  • As Socrates said: Beware the barrenness of a busy life.
  • switching what you’re doing mid-task increases the time it takes you to finish both tasks by 25%
  • people an average of 15 minutes to return to their important projects… every time they were interrupted by e-mails, phone calls, or other messages
  • “We’re so enamored with multitasking that we think we’re getting more done, even though our brains aren’t physically capable of this,”
  • most productive when we manage our schedules enough to ensure that we can focus effectively on the task at hand
  • people use busyiness to “hide from… laziness and fear of failure”
Javier E

ROUGH TYPE | Nicholas Carr's blog - 0 views

www.roughtype.com

tech brain science knowledge memory distraction smartphone learning creativity reasoning problem-solving

shared by Javier E on 12 Dec 17 - Cached
  • 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.
  • ...39 more annotations...
  • 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.
  • 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 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.
  • 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.
  • 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 “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.
  • Social skills and relationships seem to suffer as well.
  • 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.
  • 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.
  • 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.
  • 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
  • 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.
  • Harvard Business School professor emerita Shoshana Zuboff argues in her new book that the Valley’s wealth and power are predicated on an insidious, essentially pathological form of private enterprise—what she calls “surveillance capitalism.” Pioneered by Google, perfected by Facebook, and now spreading throughout the economy, surveillance capitalism uses human life as its raw material. Our everyday experiences, distilled into data, have become a privately-owned business asset used to predict and mold our behavior, whether we’re shopping or socializing, working or voting.
  • By reengineering the economy and society to their own benefit, Google and Facebook are perverting capitalism in a way that undermines personal freedom and corrodes democracy.
  • Under the Fordist model of mass production and consumption that prevailed for much of the twentieth century, industrial capitalism achieved a relatively benign balance among the contending interests of business owners, workers, and consumers. Enlightened executives understood that good pay and decent working conditions would ensure a prosperous middle class eager to buy the goods and services their companies produced. It was the product itself — made by workers, sold by companies, bought by consumers — that tied the interests of capitalism’s participants together. Economic and social equilibrium was negotiated through the product.
  • 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
  • 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.
Javier E

Vitamins Hide the Low Quality of Our Food - NYTimes.com - 0 views

www.nytimes.com/...e-low-quality-of-our-food.html

vitamin diet food industry nutrition marketing

shared by Javier E on 16 Feb 15 - No Cached
  • we fail to notice that food marketers use synthetic vitamins to sell unhealthful products. Not only have we become dependent on these synthetic vitamins to keep ourselves safe from deficiencies, but the eating habits they encourage are having disastrous consequences on our health.
  • vitamins spread from the labs of scientists to the offices of food marketers, and began to take on a life of their own.
  • Nutritionists are correct when they tell us that most of us don’t need to be taking multivitamins. But that’s only because multiple vitamins have already been added to our food.
  • ...11 more annotations...
  • Given the poor quality of the typical American diet, this fortification is far from superfluous. In fact, for products like milk and flour, where fortification and enrichment have occurred for so long that they’ve become invisible, it would be almost irresponsible not to add synthetic vitamins.
  • synthetic vitamins are as essential to food companies as they are to us. To be successful in today’s market, food manufacturers must create products that can be easily transported over long distances and stored for extended periods.
  • They also need to be sure that their products offer some nutritional value so that customers don’t have to go elsewhere to meet their vitamin needs. But the very processing that’s necessary to create long shelf lives destroys vitamins, among other important nutrients. It’s nearly impossible to create foods that can sit for months in a supermarket that are also naturally vitamin-rich.
  • Today, it would be easy to blame food marketers for using vitamins to deceive us into buying their products. But our blindness is largely our own fault.
  • we’ve entered into a complicit agreement with them: They depend on us to buy their products, and we depend on the synthetic vitamins they add to those products to support eating habits that might otherwise leave us deficient
  • extra vitamins do not protect us from the long-term “diseases of civilization” that are currently ravaging our country, including obesity, heart disease and Type 2 diabetes — many of which are strongly associated with diet.
  • natural foods contain potentially protective substances such as phytochemicals and polyunsaturated fat that also are affected by processing, but that are not usually replaced. If these turn out to be as important as many researchers suspect, then our exclusive focus on vitamins could mean we’re protecting ourselves against the wrong dangers. It’s as if we’re taking out earthquake insurance policies in an area more at risk for floods.
  • And adding back vitamins after the fact ignores the issue of synergy: how nutrients work naturally as opposed to when they are isolated. A 2011 study on broccoli, for example, found that giving subjects fresh broccoli florets led them to absorb and metabolize seven times more of the anticancer compounds known as glucosinolates, present in broccoli and other cruciferous vegetables
  • And yet we refuse to change our eating habits in the ways that would actually protect us, which would require refocusing our diets on minimally processed foods that are naturally nutrient-rich.
  • The popularity of dietary supplements and vitamin-enhanced processed “health” foods means that even those of us who try to do right by our health are often getting it wrong.
  • we mustn’t let it distract us from an even more fundamental question: how we’ve allowed the word “vitamin” to become synonymous with “health.”
Javier E

Data-Driven Decisions Can Aid Companies' Productivity - NYTimes.com - 0 views

www.nytimes.com/...24unboxed.html

economic economic benefit digital computers decision-making corporations

shared by Javier E on 25 Apr 11 - No Cached
  • the data explosion is also an enormous opportunity. In a modern economy, information should be the prime asset — the raw material of new products and services, smarter decisions, competitive advantage for companies, and greater growth and productivity.
  • Is there any real evidence of a “data payoff” across the corporate world? It has taken a while, but new research led by Erik Brynjolfsson, an economist at the Sloan School of Management at the Massachusetts Institute of Technology, suggests that the beginnings are now visible.
  • studied 179 large companies. Those that adopted “data-driven decision making” achieved productivity that was 5 to 6 percent higher than could be explained by other factors, including how much the companies invested in technology, the researchers said.
  • ...3 more annotations...
  • In the study, based on a survey and follow-up interviews, data-driven decision making was defined not only by collecting data, but also by how it is used — or not — in making crucial decisions, like whether to create a new product or service. The central distinction, according to Mr. Brynjolfsson, is between decisions based mainly on “data and analysis” and on the traditional management arts of “experience and intuition.”
  • The technology absorption lag accounts for the delayed productivity benefits, observes Robert J. Gordon, an economist at Northwestern University. “It’s never pure technology that makes the difference,” Mr. Gordon says. “It’s reorganizing things — how work is done. And technology does allow new forms of organization.”
  • The Internet, according to Mr. Gordon, qualifies as the third industrial revolution — but one that will prove far more short-lived than the previous two. “I think we’re seeing hints that we’re running through inventions of the Internet revolution,” he says.
Javier E

They're Watching You at Work - Don Peck - The Atlantic - 2 views

www.theatlantic.com/...354681

data analytics work Big Data university potential aptitude

shared by Javier E on 16 Dec 13 - No Cached
  • Predictive statistical analysis, harnessed to big data, appears poised to alter the way millions of people are hired and assessed.
  • By one estimate, more than 98 percent of the world’s information is now stored digitally, and the volume of that data has quadrupled since 2007.
  • The application of predictive analytics to people’s careers—an emerging field sometimes called “people analytics”—is enormously challenging, not to mention ethically fraught
  • ...52 more annotations...
  • 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.
Javier E

There's No Such Thing As 'Sound Science' | FiveThirtyEight - 1 views

fivethirtyeight.com/...d-science-demand-sound-science

science method research trade-off values fact objectivity

shared by Javier E on 10 Dec 17 - No Cached
  • cience is being turned against itself. For decades, its twin ideals of transparency and rigor have been weaponized by those who disagree with results produced by the scientific method. Under the Trump administration, that fight has ramped up again.
  • The same entreaties crop up again and again: We need to root out conflicts. We need more precise evidence. What makes these arguments so powerful is that they sound quite similar to the points raised by proponents of a very different call for change that’s coming from within science.
  • Despite having dissimilar goals, the two forces espouse principles that look surprisingly alike: Science needs to be transparent. Results and methods should be openly shared so that outside researchers can independently reproduce and validate them. The methods used to collect and analyze data should be rigorous and clear, and conclusions must be supported by evidence.
  • ...26 more annotations...
  • they’re also used as talking points by politicians who are working to make it more difficult for the EPA and other federal agencies to use science in their regulatory decision-making, under the guise of basing policy on “sound science.” Science’s virtues are being wielded against it.
  • What distinguishes the two calls for transparency is intent: Whereas the “open science” movement aims to make science more reliable, reproducible and robust, proponents of “sound science” have historically worked to amplify uncertainty, create doubt and undermine scientific discoveries that threaten their interests.
  • “Our criticisms are founded in a confidence in science,” said Steven Goodman, co-director of the Meta-Research Innovation Center at Stanford and a proponent of open science. “That’s a fundamental difference — we’re critiquing science to make it better. Others are critiquing it to devalue the approach itself.”
  • alls to base public policy on “sound science” seem unassailable if you don’t know the term’s history. The phrase was adopted by the tobacco industry in the 1990s to counteract mounting evidence linking secondhand smoke to cancer.
  • The sound science tactic exploits a fundamental feature of the scientific process: Science does not produce absolute certainty. Contrary to how it’s sometimes represented to the public, science is not a magic wand that turns everything it touches to truth. Instead, it’s a process of uncertainty reduction, much like a game of 20 Questions.
  • Any given study can rarely answer more than one question at a time, and each study usually raises a bunch of new questions in the process of answering old ones. “Science is a process rather than an answer,” said psychologist Alison Ledgerwood of the University of California, Davis. Every answer is provisional and subject to change in the face of new evidence. It’s not entirely correct to say that “this study proves this fact,” Ledgerwood said. “We should be talking instead about how science increases or decreases our confidence in something.”
  • While insisting that they merely wanted to ensure that public policy was based on sound science, tobacco companies defined the term in a way that ensured that no science could ever be sound enough. The only sound science was certain science, which is an impossible standard to achieve.
  • “Doubt is our product,” wrote one employee of the Brown & Williamson tobacco company in a 1969 internal memo. The note went on to say that doubt “is the best means of competing with the ‘body of fact’” and “establishing a controversy.” These strategies for undermining inconvenient science were so effective that they’ve served as a sort of playbook for industry interests ever since
  • Doubt merchants aren’t pushing for knowledge, they’re practicing what Proctor has dubbed “agnogenesis” — the intentional manufacture of ignorance. This ignorance isn’t simply the absence of knowing something; it’s a lack of comprehension deliberately created by agents who don’t want you to know,
  • In the hands of doubt-makers, transparency becomes a rhetorical move. “It’s really difficult as a scientist or policy maker to make a stand against transparency and openness, because well, who would be against it?
  • But at the same time, “you can couch everything in the language of transparency and it becomes a powerful weapon.” For instance, when the EPA was preparing to set new limits on particulate pollution in the 1990s, industry groups pushed back against the research and demanded access to primary data (including records that researchers had promised participants would remain confidential) and a reanalysis of the evidence. Their calls succeeded and a new analysis was performed. The reanalysis essentially confirmed the original conclusions, but the process of conducting it delayed the implementation of regulations and cost researchers time and money.
  • Delay is a time-tested strategy. “Gridlock is the greatest friend a global warming skeptic has,” said Marc Morano, a prominent critic of global warming research
  • which has received funding from the oil and gas industry. “We’re the negative force. We’re just trying to stop stuff.”
  • these ploys are getting a fresh boost from Congress. The Data Quality Act (also known as the Information Quality Act) was reportedly written by an industry lobbyist and quietly passed as part of an appropriations bill in 2000. The rule mandates that federal agencies ensure the “quality, objectivity, utility, and integrity of information” that they disseminate, though it does little to define what these terms mean. The law also provides a mechanism for citizens and groups to challenge information that they deem inaccurate, including science that they disagree with. “It was passed in this very quiet way with no explicit debate about it — that should tell you a lot about the real goals,” Levy said.
  • in the 20 months following its implementation, the act was repeatedly used by industry groups to push back against proposed regulations and bog down the decision-making process. Instead of deploying transparency as a fundamental principle that applies to all science, these interests have used transparency as a weapon to attack very particular findings that they would like to eradicate.
  • Now Congress is considering another way to legislate how science is used. The Honest Act, a bill sponsored by Rep. Lamar Smith of Texas,3The bill has been passed by the House but still awaits a vote in the Senate. is another example of what Levy calls a “Trojan horse” law that uses the language of transparency as a cover to achieve other political goals. Smith’s legislation would severely limit the kind of evidence the EPA could use for decision-making. Only studies whose raw data and computer codes were publicly available would be allowed for consideration.
  • It might seem like an easy task to sort good science from bad, but in reality it’s not so simple. “There’s a misplaced idea that we can definitively distinguish the good from the not-good science, but it’s all a matter of degree,” said Brian Nosek, executive director of the Center for Open Science. “There is no perfect study.” Requiring regulators to wait until they have (nonexistent) perfect evidence is essentially “a way of saying, ‘We don’t want to use evidence for our decision-making,’
  • ost scientific controversies aren’t about science at all, and once the sides are drawn, more data is unlikely to bring opponents into agreement.
  • objective knowledge is not enough to resolve environmental controversies. “While these controversies may appear on the surface to rest on disputed questions of fact, beneath often reside differing positions of value; values that can give shape to differing understandings of what ‘the facts’ are.” What’s needed in these cases isn’t more or better science, but mechanisms to bring those hidden values to the forefront of the discussion so that they can be debated transparently. “As long as we continue down this unabashedly naive road about what science is, and what it is capable of doing, we will continue to fail to reach any sort of meaningful consensus on these matters,”
  • The dispute over tobacco was never about the science of cigarettes’ link to cancer. It was about whether companies have the right to sell dangerous products and, if so, what obligations they have to the consumers who purchased them.
  • Similarly, the debate over climate change isn’t about whether our planet is heating, but about how much responsibility each country and person bears for stopping it
  • While researching her book “Merchants of Doubt,” science historian Naomi Oreskes found that some of the same people who were defending the tobacco industry as scientific experts were also receiving industry money to deny the role of human activity in global warming. What these issues had in common, she realized, was that they all involved the need for government action. “None of this is about the science. All of this is a political debate about the role of government,”
  • These controversies are really about values, not scientific facts, and acknowledging that would allow us to have more truthful and productive debates. What would that look like in practice? Instead of cherry-picking evidence to support a particular view (and insisting that the science points to a desired action), the various sides could lay out the values they are using to assess the evidence.
  • For instance, in Europe, many decisions are guided by the precautionary principle — a system that values caution in the face of uncertainty and says that when the risks are unclear, it should be up to industries to show that their products and processes are not harmful, rather than requiring the government to prove that they are harmful before they can be regulated. By contrast, U.S. agencies tend to wait for strong evidence of harm before issuing regulations
  • the difference between them comes down to priorities: Is it better to exercise caution at the risk of burdening companies and perhaps the economy, or is it more important to avoid potential economic downsides even if it means that sometimes a harmful product or industrial process goes unregulated?
  • But science can’t tell us how risky is too risky to allow products like cigarettes or potentially harmful pesticides to be sold — those are value judgements that only humans can make.
caelengrubb

Free Market - Econlib - 0 views

www.econlib.org/...FreeMarket.html

shared by caelengrubb on 27 Mar 21 - No Cached
  • Free market” is a summary term for an array of exchanges that take place in society.
  • Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals (or agents) exchange two economic goods, either tangible commodities or nontangible services
  • Both parties undertake the exchange because each expects to gain from it. Also, each will repeat the exchange next time (or refuse to) because his expectation has proved correct (or incorrect) in the recent past.
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  • Trade, or exchange, is engaged in precisely because both parties benefit; if they did not expect to gain, they would not agree to the exchange.
  • This simple reasoning refutes the argument against free trade typical of the “mercantilist” period of sixteenth- to eighteenth-century Europe and classically expounded by the famed sixteenth-century French essayist Montaigne.
  • At each stage of production from natural resource to consumer good, money is voluntarily exchanged for capital goods, labor services, and land resources. At each step of the way, terms of exchanges, or prices, are determined by the voluntary interactions of suppliers and demanders. This market is “free” because choices, at each step, are made freely and voluntarily.
  • We can immediately see the fallacy in this still-popular viewpoint: the willingness and even eagerness to trade means that both parties benefit. In modern game-theory jargon, trade is a win-win situation, a “positive-sum” rather than a “zero-sum” or “negative-sum” game.
  • Each one values the two goods or services differently, and these differences set the scene for an exchange.
  • Two factors determine the terms of any agreement: how much each participant values each good in question, and each participant’s bargaining skills.
  • the market in relation to how favorably buyers evaluate these goods—in shorthand, by the interaction of their supply with the demand for them.
  • On the other hand, given the buyers’ evaluation, or demand, for a good, if the supply increases, each unit of supply—each baseball card or loaf of bread—will fall in value, and therefore the price of the good will fall. The reverse occurs if the supply of the good decreases.
  • The market, then, is not simply an array; it is a highly complex, interacting latticework of exchanges.
  • Production begins with natural resources, and then various forms of machines and capital goods, until finally, goods are sold to the consumer.
  • The mercantilists argued that in any trade, one party can benefit only at the expense of the other—that in every transaction there is a winner and a loser, an “exploiter” and an “exploited.”
  • A common charge against the free-market society is that it institutes “the law of the jungle,” of “dog eat dog,” that it spurns human cooperation for competition and exalts material success as opposed to spiritual values, philosophy, or leisure activities.
  • Saving and investment can then develop capital goods and increase the productivity and wages of workers, thereby increasing their standard of living.
  • The free competitive market also rewards and stimulates technological innovation that allows the innovator to get a head start in satisfying consumer wants in new and creative ways.
  • Government, in every society, is the only lawful system of coercion. Taxation is a coerced exchange, and the heavier the burden of taxation on production, the more likely it is that economic growth will falter and decline
  • The ultimate in government coercion is socialism.
  • Under socialist central planning the socialist planning board lacks a price system for land or capital goods.
  • Market socialism is, in fact, a contradiction in terms.
  • The fashionable discussion of market socialism often overlooks one crucial aspect of the market: When two goods are exchanged, what is really exchanged is the property titles in those goods.
  • This means that the key to the existence and flourishing of the free market is a society in which the rights and titles of private property are respected, defended, and kept secure.
  • The key to socialism, on the other hand, is government ownership of the means of production, land, and capital goods.
  • Under socialism, therefore, there can be no market in land or capital goods worthy of the name.
  • ome critics of the free market argue that property rights are in conflict with “human” rights. But the critics fail to realize that in a free-market system, every person has a property right over his own person and his own labor and can make free contracts for those services.
  • The free market and the free price system make goods from around the world available to consumers.
  • It is the coercive countries with little or no market activity—the notable examples in the last half of the twentieth century were the communist countries—where the grind of daily existence not only impoverishes people materially but also deadens their spirit.
katherineharron

Defense Production Act: Trump signs memorandum requiring GM to make ventilators - CNNPo... - 0 views

www.cnn.com/...index.html

shared by katherineharron on 28 Mar 20 - No Cached
  • President Donald Trump invoked the Defense Production Act on Friday to require General Motors to produce more ventilators to deal with increased hospitalizations due to the spread of the novel coronavirus in the United States.
  • "Our negotiations with GM regarding its ability to supply ventilators have been productive, but our fight against the virus is too urgent to allow the give-and-take of the contracting process to continue to run its normal course," said a statement from the White House. "GM was wasting time. Today's action will help ensure the quick production of ventilators that will save American lives."
  • The orders from the President came after talks between the administration, GM and Ventec to produce thousands of ventilators had been put on hold amid internal concerns over the timeline and price tag of the agreement.
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  • Trump said the administration would procure 100,000 ventilators in the next 100 days, amid fears that parts of the US are facing a looming shortage of the life-saving devices.
kortanekev

Law Of Diminishing Marginal Utility - 0 views

www.investopedia.com/...lawofdiminishingutility.asp

economics psychology utility

shared by kortanekev on 27 Feb 17 - No Cached
  • Marginal utility may decrease into negative utility, as it may become entirely unfavorable to consume another unit of any product
  • kortanekev on 27 Feb 17
     
    Even when a product is desired, if it too accessible it could experience marginal diminishing utility -- even negative utility if the product becomes overused and is no longer necessary.  Evie Kortanek (2/27/17) 
Javier E

'Our minds can be hijacked': the tech insiders who fear a smartphone dystopia | Technol... - 0 views

www.theguardian.com/...iction-silicon-valley-dystopia

dystopia distraction attention fb google manipulation advertising addiction psychology technology social media brain science

shared by Javier E on 06 Oct 17 - No Cached
  • Rosenstein belongs to a small but growing band of Silicon Valley heretics who complain about the rise of the so-called “attention economy”: an internet shaped around the demands of an advertising economy.
  • “It is very common,” Rosenstein says, “for humans to develop things with the best of intentions and for them to have unintended, negative consequences.”
  • most concerned about the psychological effects on people who, research shows, touch, swipe or tap their phone 2,617 times a day.
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  • There is growing concern that as well as addicting users, technology is contributing toward so-called “continuous partial attention”, severely limiting people’s ability to focus, and possibly lowering IQ. One recent study showed that the mere presence of smartphones damages cognitive capacity – even when the device is turned off. “Everyone is distracted,” Rosenstein says. “All of the time.”
  • Drawing a straight line between addiction to social media and political earthquakes like Brexit and the rise of Donald Trump, they contend that digital forces have completely upended the political system and, left unchecked, could even render democracy as we know it obsolete.
  • Without irony, Eyal finished his talk with some personal tips for resisting the lure of technology. He told his audience he uses a Chrome extension, called DF YouTube, “which scrubs out a lot of those external triggers” he writes about in his book, and recommended an app called Pocket Points that “rewards you for staying off your phone when you need to focus”.
  • “One reason I think it is particularly important for us to talk about this now is that we may be the last generation that can remember life before,” Rosenstein says. It may or may not be relevant that Rosenstein, Pearlman and most of the tech insiders questioning today’s attention economy are in their 30s, members of the last generation that can remember a world in which telephones were plugged into walls.
  • One morning in April this year, designers, programmers and tech entrepreneurs from across the world gathered at a conference centre on the shore of the San Francisco Bay. They had each paid up to $1,700 to learn how to manipulate people into habitual use of their products, on a course curated by conference organiser Nir Eyal.
  • Eyal, 39, the author of Hooked: How to Build Habit-Forming Products, has spent several years consulting for the tech industry, teaching techniques he developed by closely studying how the Silicon Valley giants operate.
  • “The technologies we use have turned into compulsions, if not full-fledged addictions,” Eyal writes. “It’s the impulse to check a message notification. It’s the pull to visit YouTube, Facebook, or Twitter for just a few minutes, only to find yourself still tapping and scrolling an hour later.” None of this is an accident, he writes. It is all “just as their designers intended”
  • He explains the subtle psychological tricks that can be used to make people develop habits, such as varying the rewards people receive to create “a craving”, or exploiting negative emotions that can act as “triggers”. “Feelings of boredom, loneliness, frustration, confusion and indecisiveness often instigate a slight pain or irritation and prompt an almost instantaneous and often mindless action to quell the negative sensation,” Eyal writes.
  • The most seductive design, Harris explains, exploits the same psychological susceptibility that makes gambling so compulsive: variable rewards. When we tap those apps with red icons, we don’t know whether we’ll discover an interesting email, an avalanche of “likes”, or nothing at all. It is the possibility of disappointment that makes it so compulsive.
  • Finally, Eyal confided the lengths he goes to protect his own family. He has installed in his house an outlet timer connected to a router that cuts off access to the internet at a set time every day. “The idea is to remember that we are not powerless,” he said. “We are in control.
  • But are we? If the people who built these technologies are taking such radical steps to wean themselves free, can the rest of us reasonably be expected to exercise our free will?
  • Not according to Tristan Harris, a 33-year-old former Google employee turned vocal critic of the tech industry. “All of us are jacked into this system,” he says. “All of our minds can be hijacked. Our choices are not as free as we think they are.”
  • Harris, who has been branded “the closest thing Silicon Valley has to a conscience”, insists that billions of people have little choice over whether they use these now ubiquitous technologies, and are largely unaware of the invisible ways in which a small number of people in Silicon Valley are shaping their lives.
  • “I don’t know a more urgent problem than this,” Harris says. “It’s changing our democracy, and it’s changing our ability to have the conversations and relationships that we want with each other.” Harris went public – giving talks, writing papers, meeting lawmakers and campaigning for reform after three years struggling to effect change inside Google’s Mountain View headquarters.
  • He explored how LinkedIn exploits a need for social reciprocity to widen its network; how YouTube and Netflix autoplay videos and next episodes, depriving users of a choice about whether or not they want to keep watching; how Snapchat created its addictive Snapstreaks feature, encouraging near-constant communication between its mostly teenage users.
  • The techniques these companies use are not always generic: they can be algorithmically tailored to each person. An internal Facebook report leaked this year, for example, revealed that the company can identify when teens feel “insecure”, “worthless” and “need a confidence boost”. Such granular information, Harris adds, is “a perfect model of what buttons you can push in a particular person”.
  • Tech companies can exploit such vulnerabilities to keep people hooked; manipulating, for example, when people receive “likes” for their posts, ensuring they arrive when an individual is likely to feel vulnerable, or in need of approval, or maybe just bored. And the very same techniques can be sold to the highest bidder. “There’s no ethics,” he says. A company paying Facebook to use its levers of persuasion could be a car business targeting tailored advertisements to different types of users who want a new vehicle. Or it could be a Moscow-based troll farm seeking to turn voters in a swing county in Wisconsin.
  • It was Rosenstein’s colleague, Leah Pearlman, then a product manager at Facebook and on the team that created the Facebook “like”, who announced the feature in a 2009 blogpost. Now 35 and an illustrator, Pearlman confirmed via email that she, too, has grown disaffected with Facebook “likes” and other addictive feedback loops. She has installed a web browser plug-in to eradicate her Facebook news feed, and hired a social media manager to monitor her Facebook page so that she doesn’t have to.
  • Harris believes that tech companies never deliberately set out to make their products addictive. They were responding to the incentives of an advertising economy, experimenting with techniques that might capture people’s attention, even stumbling across highly effective design by accident.
  • It’s this that explains how the pull-to-refresh mechanism, whereby users swipe down, pause and wait to see what content appears, rapidly became one of the most addictive and ubiquitous design features in modern technology. “Each time you’re swiping down, it’s like a slot machine,” Harris says. “You don’t know what’s coming next. Sometimes it’s a beautiful photo. Sometimes it’s just an ad.”
  • The reality TV star’s campaign, he said, had heralded a watershed in which “the new, digitally supercharged dynamics of the attention economy have finally crossed a threshold and become manifest in the political realm”.
  • “Smartphones are useful tools,” he says. “But they’re addictive. Pull-to-refresh is addictive. Twitter is addictive. These are not good things. When I was working on them, it was not something I was mature enough to think about. I’m not saying I’m mature now, but I’m a little bit more mature, and I regret the downsides.”
  • All of it, he says, is reward-based behaviour that activates the brain’s dopamine pathways. He sometimes finds himself clicking on the red icons beside his apps “to make them go away”, but is conflicted about the ethics of exploiting people’s psychological vulnerabilities. “It is not inherently evil to bring people back to your product,” he says. “It’s capitalism.”
  • He identifies the advent of the smartphone as a turning point, raising the stakes in an arms race for people’s attention. “Facebook and Google assert with merit that they are giving users what they want,” McNamee says. “The same can be said about tobacco companies and drug dealers.”
  • McNamee chooses his words carefully. “The people who run Facebook and Google are good people, whose well-intentioned strategies have led to horrific unintended consequences,” he says. “The problem is that there is nothing the companies can do to address the harm unless they abandon their current advertising models.”
  • But how can Google and Facebook be forced to abandon the business models that have transformed them into two of the most profitable companies on the planet?
  • McNamee believes the companies he invested in should be subjected to greater regulation, including new anti-monopoly rules. In Washington, there is growing appetite, on both sides of the political divide, to rein in Silicon Valley. But McNamee worries the behemoths he helped build may already be too big to curtail.
  • Rosenstein, the Facebook “like” co-creator, believes there may be a case for state regulation of “psychologically manipulative advertising”, saying the moral impetus is comparable to taking action against fossil fuel or tobacco companies. “If we only care about profit maximisation,” he says, “we will go rapidly into dystopia.”
  • James Williams does not believe talk of dystopia is far-fetched. The ex-Google strategist who built the metrics system for the company’s global search advertising business, he has had a front-row view of an industry he describes as the “largest, most standardised and most centralised form of attentional control in human history”.
  • It is a journey that has led him to question whether democracy can survive the new technological age.
  • He says his epiphany came a few years ago, when he noticed he was surrounded by technology that was inhibiting him from concentrating on the things he wanted to focus on. “It was that kind of individual, existential realisation: what’s going on?” he says. “Isn’t technology supposed to be doing the complete opposite of this?
  • That discomfort was compounded during a moment at work, when he glanced at one of Google’s dashboards, a multicoloured display showing how much of people’s attention the company had commandeered for advertisers. “I realised: this is literally a million people that we’ve sort of nudged or persuaded to do this thing that they weren’t going to otherwise do,” he recalls.
  • Williams and Harris left Google around the same time, and co-founded an advocacy group, Time Well Spent, that seeks to build public momentum for a change in the way big tech companies think about design. Williams finds it hard to comprehend why this issue is not “on the front page of every newspaper every day.
  • “Eighty-seven percent of people wake up and go to sleep with their smartphones,” he says. The entire world now has a new prism through which to understand politics, and Williams worries the consequences are profound.
  • g. “The attention economy incentivises the design of technologies that grab our attention,” he says. “In so doing, it privileges our impulses over our intentions.”
  • That means privileging what is sensational over what is nuanced, appealing to emotion, anger and outrage. The news media is increasingly working in service to tech companies, Williams adds, and must play by the rules of the attention economy to “sensationalise, bait and entertain in order to survive”.
  • It is not just shady or bad actors who were exploiting the internet to change public opinion. The attention economy itself is set up to promote a phenomenon like Trump, who is masterly at grabbing and retaining the attention of supporters and critics alike, often by exploiting or creating outrage.
  • All of which has left Brichter, who has put his design work on the backburner while he focuses on building a house in New Jersey, questioning his legacy. “I’ve spent many hours and weeks and months and years thinking about whether anything I’ve done has made a net positive impact on society or humanity at all,” he says. He has blocked certain websites, turned off push notifications, restricted his use of the Telegram app to message only with his wife and two close friends, and tried to wean himself off Twitter. “I still waste time on it,” he confesses, “just reading stupid news I already know about.” He charges his phone in the kitchen, plugging it in at 7pm and not touching it until the next morning.
  • He stresses these dynamics are by no means isolated to the political right: they also play a role, he believes, in the unexpected popularity of leftwing politicians such as Bernie Sanders and Jeremy Corbyn, and the frequent outbreaks of internet outrage over issues that ignite fury among progressives.
  • All of which, Williams says, is not only distorting the way we view politics but, over time, may be changing the way we think, making us less rational and more impulsive. “We’ve habituated ourselves into a perpetual cognitive style of outrage, by internalising the dynamics of the medium,” he says.
  • It was another English science fiction writer, Aldous Huxley, who provided the more prescient observation when he warned that Orwellian-style coercion was less of a threat to democracy than the more subtle power of psychological manipulation, and “man’s almost infinite appetite for distractions”.
  • If the attention economy erodes our ability to remember, to reason, to make decisions for ourselves – faculties that are essential to self-governance – what hope is there for democracy itself?
  • “The dynamics of the attention economy are structurally set up to undermine the human will,” he says. “If politics is an expression of our human will, on individual and collective levels, then the attention economy is directly undermining the assumptions that democracy rests on.”
Javier E

The Science of Snobbery: How We're Duped Into Thinking Fancy Things Are Better - The At... - 0 views

www.theatlantic.com/...279571

psychology judgment intuition bias unconscious expertise perception

shared by Javier E on 26 Aug 17 - No Cached
  • Expert judges and amateurs alike claim to judge classical musicians based on sound. But Tsay’s research suggests that the original judges, despite their experience and expertise, judged the competition (which they heard and watched live) based on visual information, just as amateurs do.
  • just like with classical music, we do not appraise wine in the way that we expect. 
  • Priceonomics revisited this seemingly damning research: the lack of correlation between wine enjoyment and price in blind tastings, the oenology students tricked by red food dye into describing a white wine like a red, a distribution of medals at tastings equivalent to what one would expect from pure chance, the grand crus described like cheap wines and vice-versa when the bottles are switched.
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  • Taste does not simply equal your taste buds. It draws on information from all our senses as well as context. As a result, food is susceptible to the same trickery as wine. Adding yellow food dye to vanilla pudding leads people to experience a lemony taste. Diners eating in the dark at a chic concept restaurant confuse veal for tuna. Branding, packaging, and price tags are equally important to enjoyment. Cheap fish is routinely passed off as its pricier cousins at seafood and sushi restaurants. 
  • Just like with wine and classical music, we often judge food based on very different criteria than what we claim. The result is that our perceptions are easily skewed in ways we don’t anticipate. 
  • What does it mean for wine that presentation so easily trumps the quality imbued by being grown on premium Napa land or years of fruitful aging? Is it comforting that the same phenomenon is found in food and classical music, or is it a strike against the authenticity of our enjoyment of them as well? How common must these manipulations be until we concede that the influence of the price tag of a bottle of wine or the visual appearance of a pianist is not a trick but actually part of the quality?
  • To answer these questions, we need to investigate the underlying mechanism that leads us to judge wine, food, and music by criteria other than what we claim to value. And that mechanism seems to be the quick, intuitive judgments our minds unconsciously make
  • this unknowability also makes it easy to be led astray when our intuition makes a mistake. We may often be able to count on the price tag or packaging of food and wine for accurate information about quality. But as we believe that we’re judging based on just the product, we fail to recognize when presentation manipulates our snap judgments.
  • Participants were just as effective when watching 6 second video clips and when comparing their ratings to ratings of teacher effectiveness as measured by actual student test performance. 
  • The power of intuitive first impressions has been demonstrated in a variety of other contexts. One experiment found that people predicted the outcome of political elections remarkably well based on silent 10 second video clips of debates - significantly outperforming political pundits and predictions made based on economic indicators.
  • In a real world case, a number of art experts successfully identified a 6th century Greek statue as a fraud. Although the statue had survived a 14 month investigation by a respected museum that included the probings of a geologist, they instantly recognized something was off. They just couldn’t explain how they knew.
  • Cases like this represent the canon behind the idea of the “adaptive unconscious,” a concept made famous by journalist Malcolm Gladwell in his book Blink. The basic idea is that we constantly, quickly, and unconsciously do the equivalent of judging a book by its cover. After all, a cover provides a lot of relevant information in a world in which we don’t have time to read every page.
  • Gladwell describes the adaptive unconscious as “a kind of giant computer that quickly and quietly processes a lot of the data we need in order to keep functioning as human beings.”
  • In a famous experiment, psychologist Nalini Ambady provided participants in an academic study with 30 second silent video clips of a college professor teaching a class and asked them to rate the effectiveness of the professor.
  • In follow up experiments, Chia-Jung Tsay found that those judging musicians’ auditions based on visual cues were not giving preference to attractive performers. Rather, they seemed to look for visual signs of relevant characteristics like passion, creativity, and uniqueness. Seeing signs of passion is valuable information. But in differentiating between elite performers, it gives an edge to someone who looks passionate over someone whose play is passionate
  • Outside of these more eccentric examples, it’s our reliance on quick judgments, and ignorance of their workings, that cause people to act on ugly, unconscious biases
  • It’s also why - from a business perspective - packaging and presentation is just as important as the good or service on offer. Why marketing is just as important as product. 
  • Gladwell ends Blink optimistically. By paying closer attention to our powers of rapid cognition, he argues, we can avoid its pitfalls and harness its powers. We can blindly audition musicians behind a screen, look at a piece of art devoid of other context, and pay particular attention to possible unconscious bias in our performance reports.
  • But Gladwell’s success in demonstrating how the many calculations our adaptive unconscious performs without our awareness undermines his hopeful message of consciously harnessing its power.
  • As a former world-class tennis player and coach of over 50 years, Braden is a perfect example of the ideas behind thin slicing. But if he can’t figure out what his unconscious is up to when he recognizes double faults, why should anyone else expect to be up to the task?
  • flawed judgment in fields like medicine and investing has more serious consequences. The fact that expertise is so tricky leads psychologist Daniel Kahneman to assert that most experts should seek the assistance of statistics and algorithms in making decisions.
  • In his book Thinking, Fast and Slow, he describes our two modes of thought: System 1, like the adaptive unconscious, is our “fast, instinctive, and emotional” intuition. System 2 is our “slower, more deliberative, and more logical” conscious thought. Kahneman believes that we often leave decisions up to System 1 and generally place far “too much confidence in human judgment” due to the pitfalls of our intuition described above.
  • Not every judgment will be made in a field that is stable and regular enough for an algorithm to help us make judgments or predictions. But in those cases, he notes, “Hundreds of studies have shown that wherever we have sufficient information to build a model, it will perform better than most people.”
  • Experts can avoid the pitfalls of intuition more easily than laypeople. But they need help too, especially as our collective confidence in expertise leads us to overconfidence in their judgments. 
  • This article has referred to the influence of price tags and context on products and experiences like wine and classical music concerts as tricks that skew our perception. But maybe we should consider them a real, actual part of the quality.
  • Losing ourselves in a universe of relativism, however, will lead us to miss out on anything new or unique. Take the example of the song “Hey Ya!” by Outkast. When the music industry heard it, they felt sure it would be a hit. When it premiered on the radio, however, listeners changed the channel. The song sounded too dissimilar from songs people liked, so they responded negatively. 
  • It took time for people to get familiar with the song and realize that they enjoyed it. Eventually “Hey Ya!” became the hit of the summer.
  • Many boorish people talking about the ethereal qualities of great wine probably can't even identify cork taint because their impressions are dominated by the price tag and the wine label. But the classic defense of wine - that you need to study it to appreciate it - is also vindicated. The open question - which is both editorial and empiric - is what it means for the industry that constant vigilance and substantial study is needed to dependably appreciate wine for the product quality alone. But the questions is relevant to the enjoyment of many other products and experiences that we enjoy in life.
  • Maybe the most important conclusion is to not only recognize the fallibility of our judgments and impressions, but to recognize when it matters, and when it doesn’t
cvanderloo

Feeding cows a few ounces of seaweed daily could sharply reduce their contribution to c... - 0 views

theconversation.com/ution-to-climate-change-157192

cows climatechange seaweed methane science technology

shared by cvanderloo on 27 Mar 21 - No Cached
  • About 70% of agricultural methane comes from enteric fermentation – chemical reactions in the stomachs of cows and other grazing animals as they break down plants. The animals burp out most of this methane and pass the rest as flatulence.
  • A 2015 study suggested that using seaweed as an additive to cattle’s normal feed could reduce methane production, but this research was done in a laboratory, not in live animals.
  • If these findings can be scaled up and commercialized, they could transform cattle production into a more economically and environmentally sustainable industry.
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  • This process also generates byproducts that the cow’s body does not take up, such as carbon dioxide and hydrogen. Methane-producing microbes, called methanogens, use these compounds to form methane, which the cow’s body expels.
  • In that work, we showed that supplementing dairy cows’ feed with about 10 ounces of seaweed a day reduced methane emissions by up to 67%. However, the cattle that ate this relatively large quantity of seaweed consumed less feed. This reduced their milk production – a clear drawback for dairy farmers.
  • We wanted to know whether the seaweed was stable when stored for up to three years; whether microbes that produce methane in cows’ stomachs could adapt to the seaweed, making it ineffective; and whether the type of diet that the cows ate changed the seaweed’s effectiveness in reducing methane emissions. And we used less seaweed than in our 2019 study.
  • As we expected, the steers released a lot more hydrogen – up to 750% more, mostly from their mouths – as their systems produced less methane. Hydrogen has minimal impact on the environment.
  • We also found that seaweed that had been stored in a freezer for three years maintained its effectiveness, and that microbes in the cows’ digestive systems did not adapt to the seaweed in ways that neutralized its effects.
  • For example, we calculate that a producer finishing 1,000 head of beef cattle – that is, feeding them a high-energy diet to grow and add muscle – could reduce feed costs by US$40,320 to $87,320 depending on how much seaweed the cattle consumed.
  • We don’t know for certain why feeding cattle seaweed supplements helped them convert more of their diet to weight gain. However, previous research has suggested that some rumen microorganisms can use hydrogen that is no longer going into methane production to generate energy-dense nutrients that the cow can then use for added growth.
  • Commercializing seaweed as a cattle feed additive would involve many steps. First, scientists would need to develop aquaculture techniques for producing seaweed on a large scale, either in the ocean or in tanks on land.
Javier E

The Philosopher Redefining Equality | The New Yorker - 0 views

www.newyorker.com/...hilosopher-redefining-equality

philosophy equality political theory culture

shared by Javier E on 26 Apr 20 - No Cached
  • The bank experience showed how you could be oppressed by hierarchy, working in an environment where you were neither free nor equal. But this implied that freedom and equality were bound together in some way beyond the basic state of being unenslaved, which was an unorthodox notion. Much social thought is rooted in the idea of a conflict between the two.
  • If individuals exercise freedoms, conservatives like to say, some inequalities will naturally result. Those on the left basically agree—and thus allow constraints on personal freedom in order to reduce inequality. The philosopher Isaiah Berlin called the opposition between equality and freedom an “intrinsic, irremovable element in human life.” It is our fate as a society, he believed, to haggle toward a balance between them.
  • What if they weren’t opposed, Anderson wondered, but, like the sugar-phosphate chains in DNA, interlaced in a structure that we might not yet understand?
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  • At fifty-nine, Anderson is the chair of the University of Michigan’s department of philosophy and a champion of the view that equality and freedom are mutually dependent, enmeshed in changing conditions through time.
  • She has built a case, elaborated across decades, that equality is the basis for a free society
  • Because she brings together ideas from both the left and the right to battle increasing inequality, Anderson may be the philosopher best suited to this awkward moment in American life. She builds a democratic frame for a society in which people come from different places and are predisposed to disagree.
  • she sketched out the entry-level idea that one basic way to expand equality is by expanding the range of valued fields within a society.
  • The ability not to have an identity that one carries from sphere to sphere but, rather, to be able to slip in and adopt whatever values and norms are appropriate while retaining one’s identities in other domains?” She paused. “That is what it is to be free.”
  • How do you move from a basic model of egalitarian variety, in which everybody gets a crack at being a star at something, to figuring out how to respond to a complex one, where people, with different allotments of talent and virtue, get unequal starts, and often meet with different constraints along the way?
  • The problem, she proposed, was that contemporary egalitarian thinkers had grown fixated on distribution: moving resources from lucky-seeming people to unlucky-seeming people, as if trying to spread the luck around.
  • Egalitarians should agree about clear cases of blameless misfortune: the quadriplegic child, the cognitively impaired adult, the teen-ager born into poverty with junkie parents. But Anderson balked there, too. By categorizing people as lucky or unlucky, she argued, these egalitarians set up a moralizing hierarchy.
  • In Anderson’s view, the way forward was to shift from distributive equality to what she called relational, or democratic, equality: meeting as equals, regardless of where you were coming from or going to.
  • By letting the lucky class go on reaping the market’s chancy rewards while asking others to concede inferior status in order to receive a drip-drip-drip of redistributive aid, these egalitarians were actually entrenching people’s status as superior or subordinate.
  • To the ugly and socially awkward: . . . Maybe you won’t be such a loser in love once potential dates see how rich you are.
  • . To the stupid and untalented: Unfortunately, other people don’t value what little you have to offer in the system of production. . . . Because of the misfortune that you were born so poorly endowed with talents, we productive ones will make it up to you: we’ll let you share in the bounty of what we have produced with our vastly superior and highly valued abilities. . . 
  • she imagined some citizens getting a state check and a bureaucratic letter:
  • This was, at heart, an exercise of freedom. The trouble was that many people, picking up on libertarian misconceptions, thought of freedom only in the frame of their own actions.
  • To be truly free, in Anderson’s assessment, members of a society had to be able to function as human beings (requiring food, shelter, medical care), to participate in production (education, fair-value pay, entrepreneurial opportunity), to execute their role as citizens (freedom to speak and to vote), and to move through civil society (parks, restaurants, workplaces, markets, and all the rest).
  • Anderson’s democratic model shifted the remit of egalitarianism from the idea of equalizing wealth to the idea that people should be equally free, regardless of their differences.
  • A society in which everyone had the same material benefits could still be unequal, in this crucial sense; democratic equality, being predicated on equal respect, wasn’t something you could simply tax into existence. “People, not nature, are responsible for turning the natural diversity of human beings into oppressive hierarchies,”
  • Her first book, “Value in Ethics and Economics,” appeared that year, announcing one of her major projects: reconciling value (an amorphous ascription of worth that is a keystone of ethics and economics) with pluralism (the fact that people seem to value things in different ways).
  • Philosophers have often assumed that pluralistic value reflects human fuzziness—we’re loose, we’re confused, and we mix rational thought with sentimental responses.
  • She offered an “expressive” theory: in her view, each person’s values could be various because they were socially expressed, and thus shaped by the range of contexts and relationships at play in a life. Instead of positing value as a basic, abstract quality across society (the way “utility” functioned for economists), she saw value as something determined by the details of an individual’s history.
  • Like her idea of relational equality, this model resisted the temptation to flatten human variety toward a unifying standard. In doing so, it helped expand the realm of free and reasoned economic choice.
  • Anderson’s model unseated the premises of rational-choice theory, in which individuals invariably make utility-maximizing decisions, occasionally in heartless-seeming ways. It ran with, rather than against, moral intuition. Because values were plural, it was perfectly rational to choose to spend evenings with your family, say, and have guilt toward the people you left in the lurch at work.
  • The theory also pointed out the limits on free-market ideologies, such as libertarianism.
  • In ethics, it broke across old factional debates. The core idea “has been picked up on by people across quite a range of positions,” Peter Railton, one of Anderson’s longtime colleagues, says. “Kantians and consequentialists alike”—people who viewed morality in terms of duties and obligations, and those who measured the morality of actions by their effects in the world—“could look at it and see something important.”
  • Traditionally, the discipline is taught through a-priori thought—you start with basic principles and reason forward. Anderson, by contrast, sought to work empirically, using information gathered from the world, identifying problems to be solved not abstractly but through the experienced problems of real people.
  • “Dewey argued that the primary problems for ethics in the modern world concerned the ways society ought to be organized, rather than personal decisions of the individual,”
  • In 2004, the Stanford Encyclopedia of Philosophy asked Anderson to compose its entry on the moral philosophy of John Dewey, who helped carry pragmatist methods into the social realm. Dewey had an idea of democracy as a system of good habits that began in civil life. He was an anti-ideologue with an eye for pluralism.
  • She started working with historians, trying to hone her understanding of ideas by studying them in the context of their creation. Take Rousseau’s apparent support of direct democracy. It’s rarely mentioned that, at the moment when he made that argument, his home town of Geneva had been taken over by oligarchs who claimed to represent the public. Pragmatism said that an idea was an instrument, which naturally gave rise to such questions as: an instrument for what, and where, and when?
  • In “What Is the Point of Equality?,” Anderson had already started to drift away from what philosophers, following Rawls, call ideal theory, based on an end vision for a perfectly just society. As Anderson began a serious study of race in America, though, she found herself losing faith in that approach entirely.
  • Broadly, there’s a culturally right and a culturally left ideal theory for race and society. The rightist version calls for color blindness. Instead of making a fuss about skin and ethnicity, its advocates say, society should treat people as people, and let the best and the hardest working rise.
  • The leftist theory envisions identity communities: for once, give black people (or women, or members of other historically oppressed groups) the resources and opportunities they need, including, if they want it, civil infrastructure for themselves.
  • In “The Imperative of Integration,” published in 2010, Anderson tore apart both of these models. Sure, it might be nice to live in a color-blind society, she wrote, but that’s nothing like the one that exists.
  • But the case for self-segregation was also weak. Affinity groups provided welcome comfort, yet that wasn’t the same as power or equality, Anderson pointed out. And there was a goose-and-gander problem. Either you let only certain groups self-segregate (certifying their subordinate status) or you also permitted, say, white men to do it,
  • Anderson’s solution was “integration,” a concept that, especially in progressive circles, had been uncool since the late sixties. Integration, by her lights, meant mixing on the basis of equality.
  • in attending to these empirical findings over doctrine, she announced herself as a non-ideal theorist: a philosopher with no end vision of society. The approach recalls E. L. Doctorow’s description of driving at night: “You can see only as far as the headlights, but you can make the whole trip that way.”
  • or others, though, a white woman making recommendations on race policy raised questions of perspective. She was engaging through a mostly white Anglo-American tradition. She worked from the premise that, because she drew on folders full of studies, the limits of her own perspective were not constraining.
  • Some philosophers of color welcomed the book. “She’s taking the need for racial justice seriously, and you could hardly find another white political philosopher over a period of decades doing that,”
  • Recently, Anderson changed the way she assigns undergraduate essays: instead of requiring students to argue a position and fend off objections, doubling down on their original beliefs, she asks them to discuss their position with someone who disagrees, and to explain how and why, if at all, the discussion changed their views.
  • The challenge of pluralism is the challenge of modern society: maintaining equality amid difference in a culture given to constant and unpredictable change.
  • Rather than fighting for the ascendancy of certain positions, Anderson suggests, citizens should fight to bolster healthy institutions and systems—those which insure that all views and experiences will be heard. Today’s righteous projects, after all, will inevitably seem fatuous and blinkered from the vantage of another age.
  • Smith saw the markets as an escape from that order. Their “most important” function, he explained, was to bring “liberty and security” to those “who had before lived almost in a continual state of war with their neighbours, and of servile dependency upon their superiors.”
  • Anderson zeroed in on Adam Smith, whose “The Wealth of Nations,” published in 1776, is taken as a keystone of free-market ideology. At the time, English labor was subject to uncompensated apprenticeships, domestic servitude, and some measure of clerical dominion.
  • Smith, in other words, was an egalitarian. He had written “The Wealth of Nations” in no small part to be a solution to what we’d now call structural inequality—the intractable, compounding privileges of an arbitrary hierarchy.
  • It was a historical irony that, a century later, writers such as Marx pointed to the market as a structure of dominion over workers; in truth, Smith and Marx had shared a socioeconomic project. And yet Marx had not been wrong to trash Smith’s ideas, because, during the time between them, the world around Smith’s model had changed, and it was no longer a useful tool.
  • mages of free market society that made sense prior to the Industrial Revolution continue to circulate today as ideals, blind to the gross mismatch between the background social assumptions reigning in the seventeenth and eighteenth centuries, and today’s institutional realities. We are told that our choice is between free markets and state control, when most adults live their working lives under a third thing entirely: private government.
  • Today, people still try to use, variously, both Smith’s and Marx’s tools on a different, postindustrial world:
  • The unnaturalness of this top-heavy arrangement, combined with growing evidence of power abuses, has given many people reason to believe that something is fishy about the structure of American equality. Socialist and anti-capitalist models are again in vogue.
  • Anderson offers a different corrective path. She thinks it’s fine for some people to earn more than others. If you’re a brilliant potter, and people want to pay you more than the next guy for your pottery, great!
  • The problem isn’t that talent and income are distributed in unequal parcels. The problem is that Jeff Bezos earns more than a hundred thousand dollars a minute, while Amazon warehouse employees, many talented and hardworking, have reportedly resorted to urinating in bottles in lieu of a bathroom break. That circumstance reflects some structure of hierarchical oppression. It is a rip in the democratic fabric, and it’s increasingly the norm.
  • Andersonism holds that we don’t have to give up on market society if we can recognize and correct for its limitations—it may even be our best hope, because it’s friendlier to pluralism than most alternatives are.
  • we must be flexible. We must remain alert. We must solve problems collaboratively, in the moment, using society’s ears and eyes and the best tools that we can find.
  • “You can see that, from about 1950 to 1970, the typical American’s wages kept up with productivity growth,” she said. Then, around 1974, she went on, hourly compensation stagnated. American wages have been effectively flat for the past few decades, with the gains of productivity increasingly going to shareholders and to salaries for big bosses.
  • What changed? Anderson rattled off a constellation of factors, from strengthened intellectual-property law to winnowed antitrust law. Financialization, deregulation. Plummeting taxes on capital alongside rising payroll taxes. Privatization, which exchanged modest public-sector salaries for C.E.O. paydays. She gazed into the audience and blinked. “So now we have to ask: What has been used to justify this rather dramatic shift of labor-share of income?”
  • It was no wonder that industrial-age thinking was riddled with contradictions: it reflected what Anderson called “the plutocratic reversal” of classical liberal ideas. Those perversely reversed ideas about freedom were the ones that found a home in U.S. policy, and, well, here we were.
criscimagnael

3 Reasons Why Smart Technology Is Actually Making Us Less Productive | Inc.com - 0 views

www.inc.com/...making-us-less-productive.html

shared by criscimagnael on 30 May 22 - No Cached
  • Here's the thing though--as a parent, I probably shouldn't have to depend on a $400 piece of smart technology to remind me to, you know, show up.Except, unfortunately, I do.
  • The downside is that I've noticed that as our dependence on technology increases, our actual productivity decreases. I think technology is really good at making it easier to stay busy, but busy isn't the same thing as productive.
  • 1. Notifications are basically technology's drug. 
  • ...7 more annotations...
  • Except, all I do all day is tap icons with red dots like a digital version of whack-a-mole, trying to get rid of all the notifications. Research has shown that this constant stimulation on our devices raises the dopamine in our brains, which basically means they are like drugs. 
  • It's hard to be productive when you stop to look at your phone every 10-12 minutes.
  • It's true, technology has allowed us to do some pretty incredible things. I can't argue with the fact that it has allowed us to solve problems that were previously insurmountable, but at a very basic level, all of this smart technology has made us dumb. Mostly, I think it's because of how much we now depend on it for even the most basic things. 
  • Here's the thing. If you don't use a muscle, after a while you'll lose it.  Sure, it's not technically a muscle, but if you stop using your brain because your watch tells you when it's time to go to a meeting, or stand up, or use the bathroom-- can we at least agree you're not getting any smarter? The more we hand over to machines what makes us unique as humans--our ability to think, process, and make decisions--the less we stretch and grow our capacity to do those things. 
  • Have you ever sat in a restaurant and looked around? Of course not, the last time you were in a restaurant you were busy looking at your phone. But if you had, you would have seen a bunch of other people who were doing the same thing. A room full of people, all sitting at tables with presumably other people they know and have some level of affection for, staring at an illuminated screen. 
  • But it has also increased the space in our relationships to the point where we don't talk, we Slack.
  • igital conversations are very different than real-world conversations. When smart technology helps remove barriers to communication, that's a good thing. But when we substitute technology for relationships and real conversations, it has real-world consequences.
Javier E

Influencers Don't Have to Be Human to Be Believable - WSJ - 0 views

www.wsj.com/...ial-media-advertising-9cabecd2

social media ai influencer virtual psychology

shared by Javier E on 20 Jun 23 - No Cached
  • Why would consumers look even somewhat favorably upon virtual influencers that make comments about real products?
  • . Virtual and human social-media influencers can be equally effective for certain types of posts, the research suggests.
  • The thinking is that virtual influencers can be fun and entertaining and make a brand seem innovative and tech savvy,
  • ...8 more annotations...
  •  virtual influencers can also be cost-effective and provide more flexibility than a human alternative. 
  • “When it comes to an endorsement by a virtual influencer, the followers start questioning the expertness of the influencer on the field of the endorsed product/service,” he says. “Pretending that the influencer has actual experience with the product backfires.”
  • In one part of the study, about 300 participants were shown a social-media post purported to be from an influencer about either ice cream or sunglasses. Then, roughly half were told the influencer was human and half were told she was virtual. Regardless of the product, participants perceived the virtual influencer to be less credible than its “human” counterpart. Participants who were told the influencer was virtual also had a less-positive attitude toward the brand behind the product.
  • When the influencers “can’t really use the brand they are promoting,” it’s hard to see them as trustworthy experts, say Ozdemir.
  • Two groups saw a post with an emotional endorsement where the influencer uses words like love and adore. The other two groups saw a more staid post, focusing on specific software features. In each scenario one group was told the influencer was human and one group was told the influencer was virtual.
  • For the emotional endorsement, participants found the human influencer to be more credible. Participants who were told the influencer was human also had a more positive view of the brand than those who were told the influencer was virtual.
  • For the more factual endorsement, however, there was no statistically significant difference between the two groups when it came to influencer credibility or brand perception.
  • “When it comes to delivering a more factual endorsement, highlighting features that could be found by doing an internet search, participants really didn’t seem to care if the influencer was human or not,”
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