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A Few Thoughts on Data Aggregation

Monday, May 17th, 2010

 

Big Brother on the Make….or perhaps, the take….

Outside of specific and targeted investigational contexts for law enforcement and intelligence, the Federal government really does not need to know what products we buy at the grocery store, what books we buy or check out at the library, the magazines to which we subscribe, our car payments, what kind of food we eat, the websites we visit, how we use our credit cards and where. It’s not actually the government’s business, and presumably, the 4th Amendment indicates they need a compelling interest before they are allowed to snoop.

Senator Chris Dodd (D-Conn) is working hard….to make sure the Feds are watching your every move. Unless you are an illegal alien of course.

What passes for Liberalism these days is a strange ideology – American citizens are to be treated as criminals to be kept under continuous government surveillance but if you are a foreigner who enters the country illegally, you should get special dispensations from police questioning.  Or unless you are a foreign terrorist overseas or in communication with one. WTF?

Epistemology is More Important than Politics

Tuesday, April 27th, 2010

I found this interesting. It is science and technology journalist Micheal Specter at TED where he is blasting “science denial”:

I may be wrong, but I suspect that Specter’s political and perhaps, economic, views, are to the left of my own. That’s ok – he has a scientific-empirical-rational epistemology, which means there’s an intellectual common ground where debates can actually be resolved or final conclusions arrived at that can be recognized as sensible, even if disagreement based on value choices remained.

More and more, I run across people on the Left and Right using magical, tribalistic, emotionally atavistic or other variations of irrational thinking to justify their positions. Worse, this intellectual equivalent of grunting tends to be coupled with a churlishly defiant refusal to honestly consider the costs (monetary or opportunity) involved or the logical, and still less, the unintended, consequences. Am I just getting old, or is this social phenomena getting rapidly worse?

Ignorance is nothing to be ashamed of because we are all, in varying degrees, ignorant about many things. The important choice as individuals and as a society is adopting an epistemology of rational-scientific-empiricism that, if steadily applied, allows us to chip away at our ignorance and become aware of our errors and solve problems.  On the other hand, adopting a posture of belligerent, stubborn, defense of our own ignorance by evading facts, logic and the conclusions drawn from the evidence of experience is the road to certain disaster.

Our epistemic worldview matters.

Thought Experiment

Thursday, April 22nd, 2010

 

Oligarchy is not good.

 ….But as soon as the people got leaders, they cooperated with them against the dynasty for the reasons I have mentioned; and then kingship and despotism were alike entirely abolished, and aristocracy once more began to revive and start afresh. For in their immediate gratitude to those who had deposed the despots, the people employed them as leaders, and entrusted their interests to them; who, looking upon this charge at first as a great privilege, made the public advantage their chief concern, and conducted all kinds of business, public or private, with diligence and caution.

16    But when the sons of these men received the same position of authority from their fathers-having had no experience of misfortunes, and none at all of civil equality and freedom of speech, but having been bred up from the first under the shadow of their fathers’ authority and lofty position-some of them gave themselves up with passion to avarice and unscrupulous love of money, others to drinking and the boundless debaucheries which accompanies it, and others to the violation of women or the forcible appropriation of boys; and so they turned an aristocracy into an oligarchy. But it was not long before they roused in the minds of the people the same feelings as before; and their fall therefore was very like the disaster which befell the tyrants.

                                                       – Polybius

I have made, from time to time, the observation that the elite in American society is trending in its favored policies toward conscious promotion of oligarchy. Over at The Committee of Public Safety, Joseph Fouche quoted a theorist, retired CIA analyst Patrick E. Kennon, who is a delighted advocate of a coming technocratic oligarchy:

“Now, as we enter the twenty-first century, the future of the nation-state is much in doubt…Indeed, tribalism has revived with a brutal savagery from Rwanda and Cambodia to the newly dissolved USSR and the newly unified Germany…At the same time, a kind of shadow empire…is being embraced by elites around the globe. UN bureaucrats and Greenpeace activists, Carlos the Jackal and Mother Theresa, Toyota and Amnesty International, the Cali drug cartel and the World Bank, people who worry about the dollar-yen ratio and people who worry about the ozone layer, all of these consciously or unconsciously look to empire for their profit or salvation. All of these have largely given up on the nation.”

Oligarchs elevate self-interest and class interest over national interest, it’s the signature of oligarchy, be it the Thirty Tyrants or the Soviet nomenklatura. Milovan Djilas knew what the hell he was writing about as much as did Thucydides.

What to do?

The proto-oligarchical class in America, the elite who are the product of “the good schools”, tend to embrace and celebrate progressive taxation and diversity as high moral principles. What if we applied them?

The gateway to membership in the elite and opportunities for fabulous wealth and power runs through the admissions offices of our best universities, the Ivy League and a few other select intitutions and a handful of old, highly exclusive, liberal arts colleges. What if we put a special surtax on the purchase of tuition on a sliding scale that correlated with how many generations that members of a family have matriculated at such schools? Plus a few other tweaks here and there.

For example, a student who is the first in their family to go to college and was accepted by Yale would not be taxed at all, perhaps instead, they would be subsidized with a free ride for four years. But someone like Treasury Secretary Tim Geithner, a Dartmouth grad who was the son of a Dartmouth grad and a Ford Foundation executive, his kids might face a steep penalty, maybe a $ 250,000 per annum fee on top of tuition, then an additional surcharge to their income tax rates if they entered government service or certain professions like, say, hedge fund management, for the next couple of decades. Entering a different field, say becoming a social worker, a bowling alley manager or a policeman would not incur any income tax surcharge.

We can argue about the appropriate level of progressive taxation but the basic idea is that we could make it increasingly expensive for a family to continue to perpetuate itself, generation after generation, at the political and economic heart of American power. Not impossible, that would be un-American, but very, very expensive.

The net result would be far greater “diversity” at our flagship educational institutions – far more white ethnics whose last names end in vowels, Catholics, Jews, Eastern Orthodox, Asian-Americans, Hispanics, Southerners, Midwesterners and Westerners, people hailing from small towns or blue collar socioeconomic backgrounds. Currently favored demographic groups might be markedly reduced under such a system but since most of them come from long established UMC to UC families with great connections, they’ll be ok even going to Big State U. and getting a third tier school degree.  No worries.

Thoughts?

Senator Dodd’s Bill for the Establishment of an Oligarchy

Tuesday, April 6th, 2010

 

Senator Chris Dodd (D-Connecticut) is working hard in Washington…. to make sure that only those who are already  Rich and Powerful   will have a shot at being rich and powerful.

From Rick Tumlinson at Huffington Post

  • Start-ups have to register with the Security Exchange Commission and then wait 4 months minimum for it to review their filing. This is a lifetime in the fast moving world of start-ups. (Keep in mind you and your employees are living hand to mouth everyday there is no money coming in.)
  • Accredited investors (those who can legally invest in start-ups) would be limited to those with assets of over2.5 million (up from1 million) or a personal income of450,000 (up from250,000). This knocks mom and dad and uncle Bill right out of the game for most entrepreneurs. How many multi-millionaires in your family and close friends?
  • Removing the federal pre-emption which provides a single set of national regulations and forcing companies to deal with state-by-state variations in rules. Most start-ups are kitchen table corporations at first. We have no money to pay lawyers to figure things out for us. That’s why we are looking for funds in the first place. Duh!

This is so egregiously wrongheaded and economically counterproductive on so many levels that it’s hard to know where to begin. Even the big money Obama backers of Silicon Valley are calling this bill “insane” . There’s literally no upside to these provisions which limit the field of potential start-up investors to a professional insider’s club skilled at wheedling favors from the SEC behind closed doors. That may be the objective of these rules. 

You middle-class serfs can get back to the fields now. Creating start-ups and making investments are not for your kind.

Innovating Institutional Cultures

Monday, January 11th, 2010

John Hagel is in a small category of thinkers who manage to routinely be thinking ahead of the curve ( he calls his blog, where he features longer but more infrequent posts than is typical,  Edge Perspectives). I want to draw attention to the core conclusion of his latest:

Challenging Mindsets: From Reverse Innovation to Innovation Blowback

Innovation blowback

Five years ago, John Seely Brown and I wrote an article for the McKinsey Quarterly entitled “Innovation Blowback: Disruptive Management Practices from Asia.” In that article, we described a series of innovations emerging in Asia that were much more fundamental than isolated product or service innovations. We drew attention to a different form of innovation – institutional innovation. In arenas as diverse as motorcycles, apparel, turbine engines and consumer electronics, we detected a much more disruptive form of innovation.

In these very diverse industries, we saw entrepreneurs re-thinking institutional arrangements across very large numbers of enterprises, offering all participants an opportunity to learn faster and innovate more effectively by working together. While Western companies were lured into various forms of financial leverage, these entrepreneurs were developing sophisticated approaches to capability leverage in scalable business networks that could generate not just one product innovation, but an accelerating stream of product and service innovations.

…. Institutional innovation is different – it defines new ways of working together, ways that can scale much more effectively across large numbers of very diverse enterprises. It provides ways to flexibly reconfigure capability while at the same time building long-term trust based relationships that help participants to learn faster. That’s a key breakthrough – arrangements that support scalable trust building, flexibility and learning at the same time. Yet this breakthrough is occurring largely under the radar of most Western executives, prisoners of mindsets that prevent them from seeing these radical changes.

Read the whole thing here.

Hagel is describing a mindset that is decentralized and adaptive with a minimum of barriers to entry that block participation or information flow. One that should be very familiar to readers who are aware of John Boyd’s OODA Loop, the stochastic/stigmergic innovation model of John Robb’s Open Source Warfare, Don Vandergriff’s Adaptive Leadership methodology and so on. It’s a vital paradigm to grasp in order to navigate and thrive in the 21st century.

Western executives (think CEO) may be having difficulty grasping the changes that Hagel describes because they run counter to cultural trends emerging among this generation of transnational elites ( not just big business). Increasingly, formerly quasi-meritocratic and democratic Western elites in their late thirties to early sixties are quietly embracing oligarchic social stratification and use political or institutional power to “lock in” the comparative advantages they currently enjoy by crafting double standards through opaque, unaccountable authorities issuing complex and contradictory regulations, special exemptions and insulating ( isolating) themselves socially and physically from the rest of society. It’s a careerism on steroids reminiscient of the corrupt nomenklatura of the late Soviet period.

As the elite cream off resources and access for themselves they are increasingly cutting off the middle-class from the tools of social mobility and legal equality through policies that drive up barriers to entry and participation in the system. Such a worldview is inherently zero-sum and cannot be expected to notice or value non-zero sum innovations.

In all probability, as an emergent class of rentiers, they fear such innovations when they recognize them. If allowed to solidify their position into a permanent, transnational, governing class, they will take Western society in a terminal downward spiral.


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