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Javier E

Neal Stephenson's Most Stunning Prediction - The Atlantic - 0 views

  • Think about any concept that we might want to teach somebody—for instance, the Pythagorean theorem. There must be thousands of old and new explanations of the Pythagorean theorem online. The real thing we need is to understand each child’s learning style so we can immediately connect them to the one out of those thousands that is the best fit for how they learn. That to me sounds like an AI kind of project, but it’s a different kind of AI application from DALL-E or large language models.
  • Right now a lot of generative AI is free, but the technology is also very expensive to run. How do you think access to generative AI might play out?
  • Stephenson: There was a bit of early internet utopianism in the book, which was written during that era in the mid-’90s when the internet was coming online. There was a tendency to assume that when all the world’s knowledge comes online, everyone will flock to it
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  • It turns out that if you give everyone access to the Library of Congress, what they do is watch videos on TikTok
  • A chatbot is not an oracle; it’s a statistics engine that creates sentences that sound accurate. Right now my sense is that it’s like we’ve just invented transistors. We’ve got a couple of consumer products that people are starting to adopt, like the transistor radio, but we don’t yet know how the transistor will transform society
  • We’re in the transistor-radio stage of AI. I think a lot of the ferment that’s happening right now in the industry is venture capitalists putting money into business plans, and teams that are rapidly evaluating a whole lot of different things that could be done well. I’m sure that some things are going to emerge that I wouldn’t dare try to predict, because the results of the creative frenzy of millions of people is always more interesting than what a single person can think of.
Javier E

Dave Ramsey Tells Millions What to Do With Their Money. People Under 40 Say He's Wrong. - WSJ - 0 views

  • Ramsey, the well-known and intensely followed 63-year-old conservative Christian radio host, has 4.4 million Instagram followers, 1.9 million TikTok followers and legions more who listen to his radio shows and podcasts.
  • His message is brutal and direct: Avoid debt at all costs. Pay for everything in cash. Embrace frugality.
  • Plenty of 20- and 30-year-olds are pushing back, largely on TikTok. The hashtag #daveramseywouldntapprove, for instance, has 66.8 million views. Many say they don’t want to eat rice and beans every night—a popular Ramsey trope—or hold down multiple jobs to pay off loans. They also say Ramsey is out of touch with their reality.
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  • Rising inflation has led to surging prices for groceries, cars and many essentials. The cost of a college education has skyrocketed in two decades, with the average student debt for federal loans at $37,000, according to the Education Department. Overall debts for Americans in their 30s jumped 27% from late 2019 to early 2023—steeper than for any other age group.
  • home prices have risen considerably, while wages haven’t kept pace.
  • “What Dave Ramsey really misses is any kind of social context,” says Morgan Sanner, a
  • She began paying off $48,000 in student loans (a Ramsey do) and also took out a loan to buy a 2016 Honda (a Ramsey don’t). Her rationale was that it was safer to pay extra for a more reliable car than a junker she could buy with cash. S
  • he feels these sorts of real-life decisions don’t factor into his advice.
  • When she saw a comment from Ramsey online about how people receiving pandemic stimulus payments were “pretty much screwed already,” Israel felt it came across as shaming people. The pandemic shutdowns ended a decadelong economic expansion for Black Americans, a disproportionate number of whom lost their jobs and relied on those checks.
  • “Moralizing financial decisions is very damaging to marginalized groups,” says Israel, who is Black.
  • Many young adults scratch their heads over his advice that people should let their credit scores dwindle and die.
  • People need a good credit score, says Mandy Phillips, a 39-year-old residential mortgage loan originator in Redding, Calif. She uses TikTok and other social media to educate millennials and Gen Z about home buying. Scores are vital when applying for mortgages and rentals.
  • She also takes issue with Ramsey’s advice to only obtain a home loan if you can take out a 15-year fixed-rate mortgage with a down payment of at least 10%. Few younger buyers can pay the large monthly bills of shorter-term mortgages.
  • “That may have worked years ago in the ’80s and ’90s, but that’s not something that is achievable for the average American,” Phillips says.
  • Housing is a particularly hot-button topic. He advises people to only buy a house with their lawfully wedded spouse. Yet many young adults are pooling their finances with partners, friends or roommates to buy their first homes. 
  • Ramsey is perhaps best known for advocating a “debt snowball method”: People with multiple loans pay off the smallest balances first, regardless of interest rate. As you knock out each loan, he says, the money you have to put toward larger debt snowballs. Seeing small wins motivates people to keep going, he says.Conventional economic theory would be to pay off the highest-interest loans first, says James Choi, a finance professor at the Yale School of Management, who has studied the advice of popular finance gurus.
  • Ramsey’s save-not-spend message sounds logical, young adults say. It’s his all-or-nothing approach that doesn’t work for them.
  • Kate Hindman, a 31-year-old administrative assistant in Pasadena, Calif., who has taken an anti-Ramsey stance on TikTok, ended up with $30,000 in credit-card debt after she and her husband faced income-reducing job changes. They’ve since turned it into a consolidation loan with an 8% interest rate and pay about $1,200 a month.
  • She wonders if the debt aversion is generational. Perhaps younger people are less willing to make huge sacrifices to be debt-free. Maybe carrying some amount of debt forever is a new normal.
Javier E

Toxic Political Culture Has Even Some Slovaks Calling Country 'a Black Hole.' - The New York Times - 0 views

  • Of all the countries in Central and Eastern Europe that shook off communist rule in 1989, Slovakia has the highest proportion of citizens who view liberal democracy as a threat to their identity and values — 43 percent compared with 15 percent in the neighboring Czech Republic
  • Support for Russia has declined sharply since the start of the full-scale invasion of Ukraine in 2022, but 27 percent of Slovaks see it as key strategic partner, the highest level in the region.
  • many of its people — particularly those living outside big cities — feel left behind and resentful, Mr. Meseznikov said, and are “more vulnerable than elsewhere to conspiracy theories and narratives that liberal democracy is a menace.”
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  • The picture is much the same in many other formerly communist countrie
  • Slovakia’s politics are particularly poisonous, swamped by wild conspiracy theories and bile.
  • The foundations of this were laid in the 1990s when Mr. Meciar formed what is still one of the country’s two main political blocs: an alliance of right-wing nationalists, business cronies and anti-establishment leftists. All thrived on denouncing their centrist and liberal opponents as enemies willing to sell out the country’s interests to the West
  • “Meciar was a pioneer,” he said. “He was a typical representative of national populism with an authoritarian approach, and so is Fico.”
  • On the day Mr. Fico was shot, Parliament was meeting to endorse an overhaul of public television to purge what his governing party views as unfair bias in favor of political opponents, a reprise of efforts in the 1990s by Mr. Meciar to mute media critics.
  • The legislation was part of a raft of measures that the European Commission in February said risked doing “irreparable damage” to the rule of law. These include measures to limit corruption investigations and impose what critics denounced as Russian-style restrictions on nongovernmental organizations. The government opposes military aid to Ukraine and L.G.B.T.Q. rights, is often at odds with the European Union and, like Mr. Orban, favors friendly relations with Vladimir V. Putin’s Russia.
  • In the run-up to the election last September that returned Mr. Fico, a fixture of Slovak politics for more than two decades, to power, he and his allies took an increasingly hostile stance toward the United States and Ukraine, combined with sympathetic words for Russia.
  • Their statements often recalled a remark by Mr. Meciar, who, resisting demands in the 1990s that he must change his ways if Slovakia wanted to join the European Union, held up Russia as an alternative haven: “if they don’t want us in the West, we’ll go East.”
  • But, he added, “the frames that the society and its elites use to interpret the conflict remain the same: a choice between a Western path and being something of a bridge between the East and the West, as well as a choice between liberal democracy and illiberal, authoritarian government.”
  • Andrej Danko, the leader of the party, which is now part of the new coalition government formed by Mr. Fico after the September election, said that the attempt to assassinate Mr. Fico represented the “start of a political war” between the country’s two opposing camps.
  • Iveta Radicova, a sociologist opposed to Mr. Fico who is a former prime minister, said Slovakia’s woes were part of a wider crisis with roots that extend far beyond its early stumbles under Mr. Meciar.
  • “Many democracies are headed toward the black hole,” as countries from Hungary in the East to the Netherlands in the West succumb to the appeal of national populism, she said. “This shift is happening everywhere.”
Javier E

Sex-positive feminism had its moment - and now it has been replaced by voluntary celibacy | Arwa Mahdawi | The Guardian - 0 views

  • The campaign – which Fast Company described as “eyebrow-raising”, “controversial” and “tone-deaf” – did not land well. Some critics pointed out that celibacy can be a response to trauma. Others noted that abstaining from sex might be a smart move in a post-Roe US, where one accident could mean you are forced by repressive laws to give birth to a child you are not ready for and can’t possibly afford.
  • The actor Julia Fox was similarly unimpressed. “2.5 years of celibacy and never been better tbh,” she commented on a post about Bumble. Fox hasn’t talked much about her celibacy but last year she told Elle magazine that she just wanted to be left alone and was sick of men. “I feel like knowingly engaging in a heterosexual relationship, you are signing yourself up for an unhealthy dynamic,” she mused.
  • a fascinating change in culture. Sex-positive feminism, which was all about unapologetically celebrating female sexuality, has been on the way out for a few years now, and this feels like its final death knell
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  • some sort of correction was probably due. Sex-positive feminism went from “hey, women shouldn’t feel ashamed about enjoying sex” to “it’s feminist to enjoy being choked while having lots of casual sex” alarmingly quickly.
  • What was meant to liberate women turned into a repackaging of the patriarchy. “It feels like we were tricked into exploiting ourselves,” one twentysomething told BuzzFeed, summing up the general vibe.
  • A new passion for celibacy among young women feels like a natural way of putting that chapter of feminism to bed.
Javier E

Some Silicon Valley VCs Are Becoming More Conservative - The New York Times - 0 views

  • The circle of Republican donors in the nation’s tech capital has long been limited to a few tech executives such as Scott McNealy, a founder of Sun Microsystems; Meg Whitman, a former chief executive of eBay; Carly Fiorina, a former chief executive of Hewlett-Packard; Larry Ellison, the executive chairman of Oracle; and Doug Leone, a former managing partner of Sequoia Capital.
  • But mostly, the tech industry cultivated close ties with Democrats. Al Gore, the former Democratic vice president, joined the venture capital firm Kleiner Perkins in 2007. Over the next decade, tech companies including Airbnb, Google, Uber and Apple eagerly hired former members of the Obama administration.
  • During that time, Democrats moved further to the left and demonized successful people who made a lot of money, further alienating some tech leaders, said Bradley Tusk, a venture capital investor and political strategist who supports Mr. Biden.
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  • after Mr. Trump won the election that year, the world seemed to blame tech companies for his victory. The resulting “techlash” against Facebook and others caused some industry leaders to reassess their political views, a trend that continued through the social and political turmoil of the pandemic.
  • The start-up industry has also been in a downturn since 2022, with higher interest rates sending capital fleeing from risky bets and a dismal market for initial public offerings crimping opportunities for investors to cash in on their valuable investments.
  • Some investors said they were frustrated that his pick for chair of the Federal Trade Commission, Lina Khan, has aggressively moved to block acquisitions, one of the main ways venture capitalists make money. They said they were also unhappy that Mr. Biden’s pick for head of the Securities and Exchange Commission, Gary Gensler, had been hostile to cryptocurrency companies.
  • Last month, Mr. Sacks, Mr. Thiel, Elon Musk and other prominent investors attended an “anti-Biden” dinner in Hollywood, where attendees discussed fund-raising and ways to oppose Democrats,
  • Some also said they disliked Mr. Biden’s proposal in March to raise taxes, including a 25 percent “billionaire tax” on certain holdings that could include start-up stock, as well as a higher tax rate on profits from successful investments.
  • “If you keep telling someone over and over that they’re evil, they’re eventually not going to like that,” he said. “I see that in venture capital.”
  • Some tech investors are also fuming over how Mr. Biden has handled foreign affairs and other issues.
  • Mr. Andreessen, a founder of Andreessen Horowitz, a prominent Silicon Valley venture firm, said in a recent podcast that “there are real issues with the Biden administration.” Under Mr. Trump, he said, the S.E.C. and F.T.C. would be headed by “very different kinds of people.” But a Trump presidency would not necessarily be a “clean win” either, he added.
  • Mr. Sacks said at the tech conference last week that he thought such taxes could kill the start-up industry’s system of offering stock options to founders and employees. “It’s a good reason for Silicon Valley to think really hard about who it wants to vote for,” he said.
  • “Tech, venture capital and Silicon Valley are looking at the current state of affairs and saying, ‘I’m not happy with either of those options,’” he said. “‘I can no longer count on Democrats to support tech issues, and I can no longer count on Republicans to support business issues.’”
  • Ben Horowitz, a founder of Andreessen Horowitz, wrote in a blog post last year that the firm would back any politician who supported “an optimistic technology-enabled future” and oppose any who did not. Andreessen Horowitz has donated $22 million to Fairshake, a political action group focused on supporting crypto-friendly lawmakers.
  • Venture investors are also networking with lawmakers in Washington at events like the Hill & Valley conference in March, organized by Jacob Helberg, an adviser to Palantir, a tech company co-founded by Mr. Thiel. At that event, tech executives and investors lobbied lawmakers against A.I. regulations and asked for more government spending to support the technology’s development in the United States.
  • This month, Mr. Helberg, who is married to Mr. Rabois, donated $1 million to the Trump campaign
Javier E

The Jury, Not the Prosecutor, Decides Who's Guilty - The Atlantic - 0 views

  • Manhattan District Attorney Alvin Bragg is an elected prosecutor who ran as a Democrat in a heavily Democratic city. Trump also received more scrutiny from prosecutors after he became a political figure than he’d ever experienced before. But none of this has any bearing on whether Trump actually committed the crimes with which he was charged.
  • The bar for convicting any defendant in the American justice system is extremely high: It requires a unanimous decision by 12 citizens who deem a crime to have occurred beyond a reasonable doubt
  • The more important question is not what motivated the charges, but whether they were justified and proved to a jury’s satisfaction.
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  • A prosecutor may well have political motivation, but his motivation isn’t what determines a verdict; he must prove his charges in court, through an adversarial process. Despite the yelps that Trump was tried in a kangaroo court, his lawyers had every opportunity to challenge jurors, introduce evidence, question prosecution witnesses, and call their own.
  • Trump is also right to note that his business practices and records didn’t attract anywhere near as much attention before he was a politician. Trump was famous before he was president, but becoming the most famous person on Earth is something else entirely. With the perks of fame comes more scrutiny. (Just ask Hunter Biden.)
  • Supporters of the Trump prosecution should be honest about the possibility of political motive underlying the case. The danger of political bias is an inherent flaw in the system of elected district attorneys that most jurisdictions around the U.S. use.
  • Capone was a notorious gangster, involved in murder, bootlegging, and racketeering, so it seems ludicrous that he was nailed on something as procedural and dry and quotidian as evading taxes.
  • the Capone case. The mobster committed many crimes, but he did them in a way that made them hard to prosecute. Like many organized-crime bosses, he made sure to speak about things elliptically and keep his fingerprints (literal and metaphorical) off things. (Does this sound familiar?) But Capone couldn’t hide financial crimes as effectively. Prosecutors went after him for tax evasion because that’s what they could prove. It is not selective prosecution to go charge someone for a crime for which you have evidence, even if you don’t charge them for the other, more difficult-to-prove crimes. It is realism. It’s also justified and just.
  • Republican cries of political prosecution can also be understood in another, better way. Because Trump’s defenders are unwilling to argue that he didn’t falsify the records or that it shouldn’t be a crime, they’re actually arguing that he should get a pass on crimes they view as minor because he’s a political figure
  • “If they can do this to me, they can do this to anyone,” Trump said at a press conference this morning. Indeed, that’s the point of equal justice under the law.
Javier E

Climate change just became solvable because of math - 0 views

  • For years, economists’ best estimates of the cost of climate inaction were giant but not quite big enough to stimulate immediate and adequate action. The cost of inaction was, in a sense, high enough to be terrifying but too low to be galvanizing
  • now a groundbreaking new study has raised the estimated cost of inaction by so much that it makes acting seem like a bargain, and even makes it makes sense for wealthy countries to act alone, regardless of what their peers are doing. It’s a rare academic paper that could change everything.
  • Until the new paper, the most commonly used economic models were predicting climate impacts on the world economy on the order of about $200 in losses per ton of carbon emitted, or around 2 percent of world GDP (the monetary value of everything people produce) per degree of warming
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  • But while those are huge numbers by any measure (world GDP is around $100 trillion), they aren’t big enough to motivate most leaders to justify mitigation, which will also cost a whole lot of money.
  • To put it in terms the authors use, the recently enacted Inflation Reduction Act will cost Americans roughly $80 per ton of carbon emissions avoided, and while each ton not pumped into the atmosphere would save the world $200 as a whole, it would only save Americans about $40 of that $200, making it feel to some altruistic but not self-evident in purely economic terms.
  • In their new paper, economists Adrien Bilal of Harvard and Diego Känzig of Northwestern take a fresh look at the data
  • They show that the social cost of carbon is likely far bigger — six times bigger — than previously estimated: losses of more than $1,000 per ton, or around 12 percent of world GDP per degree of warming.
  • — roughly equivalent to the economic drag on big economies if they were permanently at war.
  • Suddenly, that $80 Americans are spending on reducing one ton of carbon emissions is netting them $200 or so in U.S. economic activity.
  • Bilal and Känzig argue that it’s very much worth it for countries of means to spend the money now to avoid much greater costs down the line
  • the potential losses are so vast it makes sense for these countries to go ahead and act on their own to avoid climate change losses, even if other nations do nothing.
  • What’s different about your methodology and how did it lead you to the numbers you've come up with?
  • Adrien Bilal: So virtually all of the previous work that's been done on the subject has relied on comparisons of different countries that heat up or cool down at different points in time. The U.K. gets a little hotter in one year, and then Germany stays cool. And then you look at how GDP in the U.K. evolves following that change in temperature.
  • that generally gives you numbers in the vicinity of $150 per ton of carbon emitted and a 2 percent decline in GDP per degree Celsius in warming
  • we think that is quite different from what climate change is actually doing to the world. It's not only that the U.K. is going to heat up a little more than Germany, but the whole world is heating up because of climate change. And, in particular, oceans are also heating up. And when the whole planet warms, that has potentially really different implications for the climate system, increased frequency of extreme weather events that then have big local impacts. 
  • that's actually what geoscientists have been telling us for a long time, but it simply hadn't percolated into economics. And so we took that perspective very seriously and thought, "Well, what happens when we basically compare years where the world is very hot to years where the world is cooler?" And that gives you a much larger effect of climate change on the economy.
Javier E

It feels like the social order is crumbling in Germany | The Spectator - 0 views

  • . The concept of irrational German angst has become a bit of a cliche over the years, but this time the threats to social cohesion feel very real
  • a wave of aggression against politicians and activists. Last year alone there were 3,691 offences against officials and party representatives, 80 of which were violent
  • This series of assaults on politicians and activists fuel wider fears around the state of Germany’s post-war order
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  • The rise in political violence combined with a rapidly shifting party landscape in which a right-wing force is emerging as a major player reminds many Germans of the 1920s and 30s
  • Despite proportional representation, the Social Democrats and the Christian Democrats shared over 70 per cent of the vote from 1953 to 2005. Now polls suggest they are now heading for a record low of 46 per cent, and the right-wing Alternative für Deutschland (AfD) is the second most popular party in many surveys.
  • the country had a reputation for being one of the most stable democracies in the world. West Germany bounced back from Nazism with low crime rates, an ‘economic miracle’ starting in the 1950s and two major parties seemingly able to cover most voters’ needs
  • a new spate of scandals has sparked fears that far-right sentiments may be more embedded than political polling suggests. 
  • blatant disregard for the country’s post-war taboos by members of the wealthy elite cast unsettling doubts over the idea that this only about the great unwashed.
  • The feverish moral panic has triggered a range of knee-jerk reactions
  • Gigi D’Agostino’s song will be banned from the Oktoberfest as well as a number of similar events around the country. Prominent politicians are pushing for a ban of the entire AfD. The political violence is to be combatted with harsher punishments specifically for attacks on politicians. 
  • This verboten culture is unlikely to do anything but provoke a backlash
  • Instead of attempting to ban the symptoms of this shattering of certainties, politicians should be thinking about their causes. What Germany needs right now isn’t moral outrage but level-headed pragmatism. 
Javier E

The AI Revolution Is Already Losing Steam - WSJ - 0 views

  • Most of the measurable and qualitative improvements in today’s large language model AIs like OpenAI’s ChatGPT and Google’s Gemini—including their talents for writing and analysis—come down to shoving ever more data into them. 
  • AI could become a commodity
  • To train next generation AIs, engineers are turning to “synthetic data,” which is data generated by other AIs. That approach didn’t work to create better self-driving technology for vehicles, and there is plenty of evidence it will be no better for large language models,
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  • AIs like ChatGPT rapidly got better in their early days, but what we’ve seen in the past 14-and-a-half months are only incremental gains, says Marcus. “The truth is, the core capabilities of these systems have either reached a plateau, or at least have slowed down in their improvement,” he adds.
  • the gaps between the performance of various AI models are closing. All of the best proprietary AI models are converging on about the same scores on tests of their abilities, and even free, open-source models, like those from Meta and Mistral, are catching up.
  • models work by digesting huge volumes of text, and it’s undeniable that up to now, simply adding more has led to better capabilities. But a major barrier to continuing down this path is that companies have already trained their AIs on more or less the entire internet, and are running out of additional data to hoover up. There aren’t 10 more internets’ worth of human-generated content for today’s AIs to inhale.
  • A mature technology is one where everyone knows how to build it. Absent profound breakthroughs—which become exceedingly rare—no one has an edge in performance
  • companies look for efficiencies, and whoever is winning shifts from who is in the lead to who can cut costs to the bone. The last major technology this happened with was electric vehicles, and now it appears to be happening to AI.
  • the future for AI startups—like OpenAI and Anthropic—could be dim.
  • Microsoft and Google will be able to entice enough users to make their AI investments worthwhile, doing so will require spending vast amounts of money over a long period of time, leaving even the best-funded AI startups—with their comparatively paltry warchests—unable to compete.
  • Many other AI startups, even well-funded ones, are apparently in talks to sell themselves.
  • the bottom line is that for a popular service that relies on generative AI, the costs of running it far exceed the already eye-watering cost of training it.
  • That difference is alarming, but what really matters to the long-term health of the industry is how much it costs to run AIs. 
  • Changing people’s mindsets and habits will be among the biggest barriers to swift adoption of AI. That is a remarkably consistent pattern across the rollout of all new technologies.
  • the industry spent $50 billion on chips from Nvidia to train AI in 2023, but brought in only $3 billion in revenue.
  • For an almost entirely ad-supported company like Google, which is now offering AI-generated summaries across billions of search results, analysts believe delivering AI answers on those searches will eat into the company’s margins
  • Google, Microsoft and others said their revenue from cloud services went up, which they attributed in part to those services powering other company’s AIs. But sustaining that revenue depends on other companies and startups getting enough value out of AI to justify continuing to fork over billions of dollars to train and run those systems
  • three in four white-collar workers now use AI at work. Another survey, from corporate expense-management and tracking company Ramp, shows about a third of companies pay for at least one AI tool, up from 21% a year ago.
  • OpenAI doesn’t disclose its annual revenue, but the Financial Times reported in December that it was at least $2 billion, and that the company thought it could double that amount by 2025. 
  • That is still a far cry from the revenue needed to justify OpenAI’s now nearly $90 billion valuation
  • the company excels at generating interest and attention, but it’s unclear how many of those users will stick around. 
  • AI isn’t nearly the productivity booster it has been touted as
  • While these systems can help some people do their jobs, they can’t actually replace them. This means they are unlikely to help companies save on payroll. He compares it to the way that self-driving trucks have been slow to arrive, in part because it turns out that driving a truck is just one part of a truck driver’s job.
  • Add in the myriad challenges of using AI at work. For example, AIs still make up fake information,
  • getting the most out of open-ended chatbots isn’t intuitive, and workers will need significant training and time to adjust.
  • That’s because AI has to think anew every single time something is asked of it, and the resources that AI uses when it generates an answer are far larger than what it takes to, say, return a conventional search result
  • None of this is to say that today’s AI won’t, in the long run, transform all sorts of jobs and industries. The problem is that the current level of investment—in startups and by big companies—seems to be predicated on the idea that AI is going to get so much better, so fast, and be adopted so quickly that its impact on our lives and the economy is hard to comprehend. 
  • Mounting evidence suggests that won’t be the case.
Javier E

Opinion | The GOP has a lock on some states, Democrats others. It's not healthy. - The Washington Post - 0 views

  • We have watched the national polarization that divides Americans in eerily equal numbers play out in vastly uneven ways, state to state. But talk of “red” and “blue” doesn’t capture either the full extent of the imbalance, or the knock-on consequences for the formation and pursuit of sound public policy.
  • It happened pretty quickly. In the early 2000s, three-fifths of the states saw reasonable political balance between the two major parties
  • Today, “trifecta” government, meaning one-party control of the governorship and both legislative bodies, has become the norm across the 50 states. In 40 states, containing 83 percent of the American population, one party enjoys trifecta dominance, and often by overwhelming margins.
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  • The roots of this phenomenon have been well studied. They include the cultural aggression of elite institutions and the predictable reaction to it, the nationalization of issues abetted by the collapse of local media and the pernicious effects of the antisocial media.
  • The gerrymandering that once exaggerated a dominant party’s political margin is no longer much of a factor; social clustering and these other factors have often done a more effective job than the political bosses ever did. In many jurisdictions today, one would have to reverse gerrymander, mixing geographies and crossing all kinds of legal boundary lines, to produce a truly competitive electorate.
  • Our campaign messages, as they had to, mostly centered on specific, new ideas: ethics reforms, access to health insurance, property tax caps, automatic tax refunds and many more, all couched in rhetoric stressing Indianans’ commonality as people, and the need for every part of the state to participate fully in its better future. Boy, is that passé.
  • Ideas fashioned not to stroke the erogenous zones of a riled-up minority of left or right, but to speak to the broader public in pursuit of a general election victory, evoke our common interest instead of our differences and antagonisms. But such campaigns rarely make sense these days.
  • Political campaigns need not necessarily be dispiriting, narrowcasting mudfests. They can be vehicles, in fact the best possible vehicles, for floating constructive ideas to an attentive public. Ideas proposed by a successful campaign have a higher likelihood of enactment after the election
  • Once in office, to make effective change, we had to engage with our Democratic counterparts, even in the years when we achieved full but narrow legislative control.
  • In 2024, 30 states feature not only trifecta government but 2-to-1 majorities in at least one house. In that setting, both campaigns and governance look totally different than they do in genuine two-party polities.
  • This year, our next governor ran a smart race and won his victory fair and square. The problem is that neither he, nor any of his competitors, had an incentive to offer their soon-to-be employers a sense of how Indiana could move forward.
  • What voters saw instead, besides attacks on each other, were political advertisements centered on “standing up to China,” taking on foreign drug cartels and closing the Mexican border. It became difficult to tell whether these folks were running for secretary of state or secretary of homeland security.
  • Wise policy and good government can and do emerge in lopsided states. But competition, always and everywhere, fosters innovation. In politics, it also compels a sensitivity and an outreach to the widest possible audiences.
  • The contours of the current system don’t conduce to those outcomes; until that changes, we have to hope for candidates who, elected by 5 percent of the state, somehow come to consider their duty of service to all the rest.
Javier E

Dilemma on Wall Street: Short-Term Gain or Climate Benefit? - The New York Times - 0 views

  • team of economists recently analyzed 20 years of peer-reviewed research on the social cost of carbon, an estimate of the damage from climate change. They concluded that the average cost, adjusted for improved methods, is substantially higher than even the U.S. government’s most up-to-date figure.
  • That means greenhouse gas emissions, over time, will take a larger toll than regulators are accounting for. As tools for measuring the links between weather patterns and economic output evolve — and the interactions between weather and the economy magnify the costs in unpredictable ways — the damage estimates have only risen.
  • It’s the kind of data that one might expect to set off alarm bells across the financial industry, which closely tracks economic developments that might affect portfolios of stocks and loans. But it was hard to detect even a ripple.
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  • In fact, the news from Wall Street lately has mostly been about retreat from climate goals, rather than recommitment. Banks and asset managers are withdrawing from international climate alliances and chafing at their rules. Regional banks are stepping up lending to fossil fuel producers. Sustainable investment funds have sustained crippling outflows, and many have collapsed.
  • In some cases, it’s a classic prisoner’s dilemma: If firms collectively shift to cleaner energy, a cooler climate benefits everyone more in the future
  • in the short term, each firm has an individual incentive to cash in on fossil fuels, making the transition much harder to achieve.
  • when it comes to avoiding climate damage to their own operations, the financial industry is genuinely struggling to comprehend what a warming future will mean.
  • A global compact of financial institutions made commitments worth $130 trillion to try to bring down emissions, confident that governments would create a regulatory and financial infrastructure to make those investments profitable. And in 2022, the Inflation Reduction Act passed.
  • What about the risk that climate change poses to the financial industry’s own investments, through more powerful hurricanes, heat waves that knock out power grids, wildfires that wipe out towns?
  • “If we think about what is going to be the best way to tilt your portfolios in the direction to benefit, it’s really difficult to do,”
  • “These will probably be great investments over 20 years, but when we’re judged over one to three years, it’s a little more challenging for us.”
  • Some firms cater to institutional clients, like public employee pension funds, that want combating climate change to be part of their investment strategy and are willing to take a short-term hit. But they aren’t a majority
  • And over the past couple of years, many banks and asset managers have shrunk from anything with a climate label for fear of losing business from states that frown on such concerns.
  • On top of that, the war in Ukraine scrambled the financial case for backing a rapid energy transition. Artificial intelligence and the movement toward greater electrification are adding demand for power, and renewables haven’t kept up
  • All of that is about the relative appeal of investments that would slow climate change
  • If you bought some of the largest solar-energy exchange-traded funds in early 2023, you would have lost about 20 percent of your money, while the rest of the stock market soared.
  • There is evidence that banks and investors price in some physical risk, but also that much of it still lurks, unheeded.
  • “I’m very, very worried about this, because insurance markets are this opaque weak link,” Dr. Sastry said. “There are parallels to some of the complex linkages that happened in 2008, where there is a weak and unregulated market that spills over to the banking system.”
  • Regulators worry that failing to understand those ripple effects could not just put a single bank in trouble but even become a contagion that would undermine the financial system.
  • But while the European Central Bank has made climate risk a consideration in its policy and oversight, the Federal Reserve has resisted taking a more active role, despite indications that extreme weather is feeding inflation and that high interest rates are slowing the transition to clean energy.
  • “The argument has been, ‘Unless we can convincingly show it’s part of our mandate, Congress should deal with it, it’s none of our business,’”
  • a much nearer-term uncertainty looms: the outcome of the U.S. election, which could determine whether further action is taken to address climate concerns or existing efforts are rolled back. An aggressive climate strategy might not fare as well during a second Trump administration, so it may seem wise to wait and see how it shakes out.
  • big companies are hesitating on climate-sensitive investments as November approaches, but says that “two things are misguided and quite dangerous about that hypothesis.”
  • One: States like California are establishing stricter rules for carbon-related financial disclosures and may step it up further if Republicans win
  • And two: Europe is phasing in a “carbon border adjustment mechanism,” which will punish polluting companies that want to do business there.
  • at the moment, even European financial institutions feel pressure from the United States, which — while providing some of the most generous subsidies so far for renewable-energy investment — has not imposed a price on carbon.
  • The global insurance company Allianz has set out a plan to align its investments in a way that would prevent warming above 1.5 degrees Celsius by the end of the century, if everyone else did the same. But it’s difficult to steer a portfolio to climate-friendly assets while other funds take on polluting companies and reap short-term profits for impatient clients.
  • “This is the main challenge for an asset manager, to really bring the customer along,” said Markus Zimmer, an Allianz economist. Asset managers don’t have sufficient tools on their own to move money out of polluting investments and into clean ones, if they want to stay in business,
  • “Of course it helps if the financial industry is somehow ambitious, but you cannot really substitute the lack of actions by policymakers,”
  • According to new research, the benefit is greater when decarbonization occurs faster, because the risks of extreme damage mount as time goes on. But without a uniform set of rules, someone is bound to scoop up the immediate profits, disadvantaging those that don’t — and the longer-term outcome is adverse for all.
Javier E

Opinion | How Capitalism Went Off the Rails - The New York Times - 0 views

  • Last year the Edelman Trust Barometer found that only 20 percent of people in the G7 countries thought that they and their families would be better off in five years.
  • Another Edelman survey, from 2020, uncovered a broad distrust of capitalism in countries across the world, “driven by a growing sense of inequity and unfairness in the system.”
  • Why the broad dissatisfaction with an economic system that is supposed to offer unsurpassed prosperity?
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  • easy money. In an eye-opening new book, “What Went Wrong With Capitalism,” he makes a convincing case.
  • “When the price of borrowing money is zero,” Sharma told me this week, “the price of everything else goes bonkers.”
  • To take just one example: In 2010, as the era of ultralow and even negative interest rates was getting started, the median sale price for a house in the United States hovered around $220,000. By the start of this year, it was more than $420,000.
  • Nowhere has inflation (in the broad sense of the term) been more evident than in global financial markets. In 1980 they were worth a total of $12 trillion — equal to the size of the global economy at the time. After the pandemic, Sharma noted, those markets were worth $390 trillion, or around four times the world’s total gross domestic product.
  • But the worst hit is to capitalism itself: a pervasive and well-founded sense that the system is broken and rigged, particularly against the poor and the young. “A generation ago, it took the typical young family three years to save up to the down payment on a home,” Sharma observes in the book. “By 2019, thanks to no return on savings, it was taking 19 years.”
  • First, there was inflation in real and financial assets, followed by inflation in consumer prices, followed by higher financing costs as interest rates have risen to fight inflation
  • For wealthier Americans who own assets or had locked in low-interest mortgages, this hasn’t been a bad thing. But for Americans who rely heavily on credit, it’s been devastating.
  • Since investors “can’t make anything on government bonds when those yields are near zero,” he said, “they take bigger risks, buying assets that promise higher returns, from fine art to high-yield debt of zombie firms, which earn too little to make even interest payments and survive by taking on new debt.”
  • The hit to the overall economy comes in other forms, too: inefficient markets that no longer deploy money carefully to their most productive uses, large corporations swallowing smaller competitors and deploying lobbyists to bend government rules in their favor, the collapse of prudential economic practices.
  • “The most successful investment strategy of the 2010s,” Sharma writes, citing the podcaster Joshua Brown, “would have been to buy the most expensive tech stocks and then buy more as they rose in price and valuation.”
  • In theory, easy money should have broad benefits for regular people, from employees with 401(k)s to consumers taking out cheap mortgages. In practice, it has destroyed much of what used to make capitalism an engine of middle-class prosperity in favor of the old and very rich.
  • The social consequence of this is rage; the political consequence is populism.
  • “He promised to deconstruct the administrative state but ended up adding new rules at the same pace as his predecessor — 3,000 a year,” Sharma said of Trump. “His exercise of presidential authority to personal ends shattered historic precedents and did more to expand than restrict the scope of government. For all their policy differences, both leading U.S. candidates are committed and fearless statists, not friends of competitive capitalism.”
  • We are wandering in fog. And the precipice is closer than we think.
Javier E

AI scientist Ray Kurzweil: 'We are going to expand intelligence a millionfold by 2045' | Artificial intelligence (AI) | The Guardian - 0 views

  • American computer scientist and techno-optimist Ray Kurzweil is a long-serving authority on artificial intelligence (AI). His bestselling 2005 book, The Singularity Is Near, sparked imaginations with sci-fi like predictions that computers would reach human-level intelligence by 2029 and that we would merge with computers and become superhuman around 2045, which he called “the Singularity”. Now, nearly 20 years on, Kurzweil, 76, has a sequel, The Singularity Is Nearer
  • no longer seem so wacky.
  • Your 2029 and 2045 projections haven’t changed…I have stayed consistent. So 2029, both for human-level intelligence and for artificial general intelligence (AGI) – which is a little bit different. Human-level intelligence generally means AI that has reached the ability of the most skilled humans in a particular domain and by 2029 that will be achieved in most respects. (There may be a few years of transition beyond 2029 where AI has not surpassed the top humans in a few key skills like writing Oscar-winning screenplays or generating deep new philosophical insights, though it will.) AGI means AI that can do everything that any human can do, but to a superior level. AGI sounds more difficult, but it’s coming at the same time.
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  • Why write this book? The Singularity Is Near talked about the future, but 20 years ago, when people didn’t know what AI was. It was clear to me what would happen, but it wasn’t clear to everybody. Now AI is dominating the conversation. It is time to take a look again both at the progress we’ve made – large language models (LLMs) are quite delightful to use – and the coming breakthroughs.
  • It is hard to imagine what this would be like, but it doesn’t sound very appealing… Think of it like having your phone, but in your brain. If you ask a question your brain will be able to go out to the cloud for an answer similar to the way you do on your phone now – only it will be instant, there won’t be any input or output issues, and you won’t realise it has been done (the answer will just appear). People do say “I don’t want that”: they thought they didn’t want phones either!
  • The most important driver is the exponential growth in the amount of computing power for the price in constant dollars. We are doubling price-performance every 15 months. LLMs just began to work two years ago because of the increase in computation.
  • What’s missing currently to bring AI to where you are predicting it will be in 2029? One is more computing power – and that’s coming. That will enable improvements in contextual memory, common sense reasoning and social interaction, which are all areas where deficiencies remain
  • LLM hallucinations [where they create nonsensical or inaccurate outputs] will become much less of a problem, certainly by 2029 – they already happen much less than they did two years ago. The issue occurs because they don’t have the answer, and they don’t know that. They look for the best thing, which might be wrong or not appropriate. As AI gets smarter, it will be able to understand its own knowledge more precisely and accurately report to humans when it doesn’t know.
  • What exactly is the Singularity? Today, we have one brain size which we can’t go beyond to get smarter. But the cloud is getting smarter and it is growing really without bounds. The Singularity, which is a metaphor borrowed from physics, will occur when we merge our brain with the cloud. We’re going to be a combination of our natural intelligence and our cybernetic intelligence and it’s all going to be rolled into one. Making it possible will be brain-computer interfaces which ultimately will be nanobots – robots the size of molecules – that will go noninvasively into our brains through the capillaries. We are going to expand intelligence a millionfold by 2045 and it is going to deepen our awareness and consciousness.
  • Why should we believe your dates? I’m really the only person that predicted the tremendous AI interest that we’re seeing today. In 1999 people thought that would take a century or more. I said 30 years and look what we have.
  • I have a chapter on perils. I’ve been involved with trying to find the best way to move forward and I helped to develop the Asilomar AI Principles [a 2017 non-legally binding set of guidelines for responsible AI development]
  • All the major companies are putting more effort into making sure their systems are safe and align with human values than they are into creating new advances, which is positive.
  • Not everyone is likely to be able to afford the technology of the future you envisage. Does technological inequality worry you? Being wealthy allows you to afford these technologies at an early point, but also one where they don’t work very well. When [mobile] phones were new they were very expensive and also did a terrible job. They had access to very little information and didn’t talk to the cloud. Now they are very affordable and extremely useful. About three quarters of people in the world have one. So it’s going to be the same thing here: this issue goes away over time.
  • The book looks in detail at AI’s job-killing potential. Should we be worried? Yes, and no. Certain types of jobs will be automated and people will be affected. But new capabilities also create new jobs. A job like “social media influencer” didn’t make sense, even 10 years ago. Today we have more jobs than we’ve ever had and US average personal income per hours worked is 10 times what it was 100 years ago adjusted to today’s dollars. Universal basic income will start in the 2030s, which will help cushion the harms of job disruptions. It won’t be adequate at that point but over time it will become so.
  • Everything is progressing exponentially: not only computing power but our understanding of biology and our ability to engineer at far smaller scales. In the early 2030s we can expect to reach longevity escape velocity where every year of life we lose through ageing we get back from scientific progress. And as we move past that we’ll actually get back more years.
  • What is your own plan for immortality? My first plan is to stay alive, therefore reaching longevity escape velocity. I take about 80 pills a day to help keep me healthy. Cryogenic freezing is the fallback. I’m also intending to create a replicant of myself [an afterlife AI avatar], which is an option I think we’ll all have in the late 2020s
  • I did something like that with my father, collecting everything that he had written in his life, and it was a little bit like talking to him. [My replicant] will be able to draw on more material and so represent my personality more faithfully.
  • What should we be doing now to best prepare for the future? It is not going to be us versus AI: AI is going inside ourselves. It will allow us to create new things that weren’t feasible before. It’ll be a pretty fantastic future.
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