Category Archives: economics

The dirty secret of capitalism

And the way forward. Granted it’s not full-blown collaborative commons but more like a healthy social democracy of the kind Sanders promotes and Scandinavia has. But I think it’s a necessary stepping stone on that road. The blurb:

“Rising inequality and growing political instability are the direct result of decades of bad economic theory, says entrepreneur Nick Hanauer. In a visionary talk, he dismantles the mantra that ‘greed is good’ — an idea he describes as not only morally corrosive, but also scientifically wrong — and lays out a new theory of economics powered by reciprocity and cooperation.”

Bezos projects capitalism into space

Yes, space exploration is critical but we need to do it for the right reasons. And Bezos and other futurists want it without awareness or regard for the socio-economic system that has created hell on earth. So dump the earth and take our destruction into space? How about we change our worldview and socio-economic system and do it for the right reasons? And invest most of our time, energy and money into saving this world?

“The saying ‘it’s easier to imagine the end of the world than to imagine the end of capitalism’ is very clear in Bezos’ future imaginings. He is unable to challenge the capitalist system from which he’s derived so much wealth. Thus the only positive future he can imagine involves leaving the only planet habitable to human beings. […] We don’t need space colonies; we need to get rid of billionaires and let the future be decided collectively, instead of letting a few powerful men rule the world.”

Their are alternatives to capitalism consistent with the above. As but one example see “From capitalism to the collaborative commons” in this journal issue.

Book: Range: Why Generalists Triumph in a Specialized World

In his new book, Range: Why Generalists Triumph in a Specialized World, David J. Epstein investigates the significant advantages of generalized cognitive skills for success in a complex world. We’ve heard and read many praises for narrow expertise in both humans and AIs (Watson, Alpha Go, etc.). In both humans and AIs, however, narrow+deep expertise does not translate to adaptiveness when reality presents novel challenges, as it does constantly. 

As you ingest this highly readable, non-technical book, please add your observations to the comments below. 

Book: Team Human by Douglas Rushkoff

Team Human by Douglas Rushkoff investigates the impacts of current and emerging technologies and digital culture on individuals and groups and seeks ways to evade or extract ourselves from their corrosive effects.

After you read the book, please post your thoughts as comments to this post or, if you prefer, as new posts. There are interviews and other resources about the book online. Feel free to recommend in the comments those you find meaningful. Also, the audiobook is available through the Albuquerque Public Library but may have a long wait queue (I’m aiming for a record number of ‘q’s in this sentence).

Please use the tag and/or category ‘Rushkoff’ in your new posts. Use any other tags or categories you want. To access categories and tags while composing a post, click ‘Document’ at the top of the options area on the right side of the editing page.

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Starting a new book review

Running on escalators

Ideally, automation would yield a Star Trek reality of increasing leisure and quality of choice and experience. Why isn’t this our experience? An article on Medium offers insight into why this is not occurring on any significant scale.

Evolved behavioral strategies explained by the prisoner’s dilemma damn the majority of humans to a constant doubling down. We exchange the ‘leisure dividend’ (free time) granted by automation for opportunities to outcompete others.

Apparently, the sort of reciprocal social learning that could lead us to make healthy choices with our leisure opportunities depends on us and our competitors being able to mutually track our outcomes across consecutive iterations of the ‘game’. That ‘traceability’ quickly breaks down with the complexity inherent in vast numbers of competitors. When we conclude that any viable competitor may use her leisure dividend to further optimize her competitive position, rather than to pause to enjoy her life, we tend to do the same. Each assumes the other will sprint ahead and so chooses to sprint ahead. Both forfeit the opportunity to savor the leisure dividend.

The prisoner’s dilemma shows that we (most humans) would rather be in a grueling neck-and-neck race toward an invisible, receding finish line than permit the possibility a competitor may increase her lead.

Any strategy that’s so endemic must have evolutionary roots. Thoughts?

Test determines approximate year of death

Age-at-death forecasting – A new test predicts when a person will die. It’s currently accurate within a few years and is getting more accurate. What psychological impacts might knowing your approximate (± 6 months) death time mean for otherwise healthy people? Does existing research with terminally ill or very old persons shed light on this? What would the social and political implications be? What if a ‘death-clock’ reading became required for certain jobs (elected positions, astronauts, roles requiring expensive training and education, etc.) or decisions (whom to marry or parent children with, whether to adopt, whether to relocate, how to invest and manage one’s finances, etc.)?

Applying artificial intelligence for social good

This McKinsey article is an excellent overview of this more extensive article (3 MB PDF) enumerating the ways in which varieties of deep learning can improve existence. Worth a look.

The articles cover the following:

  • Mapping AI use cases to domains of social good
  • AI capabilities that can be used for social good
  • Overcoming bottlenecks, especially around data and talent
  • Risks to be managed
  • Scaling up the use of AI for social good

The death of the invisible hand (job)

Speaking of metaphors, article by David Sloan Wilson. Some excerpts:

“[Adam] Smith was critical of Mandeville and presented a more nuanced view of human nature in his Theory of Moral Sentiments (1759), but modern economic and political discourse is not about nuance. Rational choice theory takes the invisible hand metaphor literally by trying to explain the length and breadth of human behavior on the basis of individual utility maximization, which is fancy talk for the narrow pursuit of self-interest.”

“The collapse of our economy for lack of regulation was preceded by the collapse of rational choice theory. It became clear that the single minimalistic principle of self-interest could not explain the length and breadth of human behavior. Economists started to conduct experiments to discover the actual preferences that drive human behavior.  […] Actual human preferences are all about regulation. […] Once the capacity for regulation is provided in the form of rewards and punishments that can be implemented at low cost, cooperation rises to high levels.”

“Functioning as large cooperative groups is not natural. Large human groups scarcely existed until the advent of agriculture a mere 10 thousand years ago. This means that new cultural constructions are required that interface with our genetically evolved psychology for human society to function adaptively at a large scale.”

“Theories and metaphors are the cultural equivalent of genes. They influence our behaviors, which have consequences in the real world. Mother nature practices tough love. When a theory or a metaphor leads to inappropriate behaviors, we suffer the consequences at scales small and large. To change our behaviors, we need to change our theories and metaphors.”

“New theories are not good enough, however. We also need to change the metaphors that guide behavior in everyday life to avoid the disastrous consequences of our current metaphor-guided behaviors. That is why the metaphor of the invisible hand should be declared dead. Let there be no more talk of unfettered competition as a moral virtue. Cooperative social life requires regulation. Regulation comes naturally for small human groups but must be constructed for large human groups. Some forms of regulation will work well and others will work poorly. We can argue at length about smart vs. dumb regulation but the concept of no regulation should be forever laid to rest.”

The evolutionary and present significance of reading

In her new book, Reader Come Home: The Reading Brain in a Digital World, author Maryanne Wolf explores how reading affects the brain and mind. What different effects result from consuming digital media rather than print media and long forms rather than tweets, posts, and other microcontent? In her excellent recent article, she says,

Will new readers develop the more time-demanding cognitive processes nurtured by print-based mediums as they absorb and acquire new cognitive capacities emphasized by digital media? For example, will the combination of reading on digital formats and daily immersion in a variety of digital experiences — from social media to virtual games — impede the formation of the slower cognitive processes, such as critical thinking, personal reflection, imagination, and empathy, that are all part of deep reading?

Wolf first addressed the evolution of reading and its implications in her earlier book, Proust and the Squid: The Story and Science of the Reading Brain. She summarizes her thesis in this interview (14 min video).

Stanislas Dehaene, an author whose work we’ve discussed, also investigated the brain circuits involved in reading. Hear him speak on the topic in this video (33 min).

Darwin’s business

The link has videos of all the presentations. The blurb:

“NYU Stern’s Business & Society Program and the Evolution Institute co-hosted a one-day symposium ‘Darwin’s Business: New Evolutionary Thinking About Cooperation, Groups, Firms, Societies’ featuring an international roster of experts on evolution, economics, and human nature. Participants and audience members assessed the possible applications of evolutionary thinking for business and business ethics.”