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The CrowdStrike Outage and Market-Driven Brittleness
The CrowdStrike Outage and Market-Driven Brittleness
Redundancies are unprofitable. Being slow and careful is unprofitable. Being less embedded in and less essential and having less access to the customers’ networks and machines is unprofitable—at least in the short term, by which these companies are measured. This is true for companies like CrowdStrike. It’s also true for CrowdStrike’s customers, who also didn’t have resilience, redundancy, or backup systems in place for failures such as this because they are also an expense that affects short-term profitability.
The market rewards short-term profit-maximizing systems, and doesn’t sufficiently penalize such companies for the impact their mistakes can have. (Stock prices depress only temporarily. Regulatory penalties are minor. Class-action lawsuits settle. Insurance blunts financial losses.) It’s not even clear that the information technology industry could exist in its current form if it had to take into account all the risks such brittleness causes.
The asymmetry of costs is largely due to our complex interdependency on so many systems and technologies, any one of which can cause major failures. Each piece of software depends on dozens of others, typically written by other engineering teams sometimes years earlier on the other side of the planet. Some software systems have not been properly designed to contain the damage caused by a bug or a hack of some key software dependency.
This market force has led to the current global interdependence of systems, far and wide beyond their industry and original scope. It’s why flying planes depends on software that has nothing to do with the avionics. It’s why, in our connected internet-of-things world, we can imagine a similar bad software update resulting in our cars not starting one morning or our refrigerators failing.
Right now, the market incentives in tech are to focus on how things succeed: A company like CrowdStrike provides a key service that checks off required functionality on a compliance checklist, which makes it all about the features that they will deliver when everything is working. That’s exactly backward. We want our technological infrastructure to mimic nature in the way things fail. That will give us deep complexity rather than just surface complexity, and resilience rather than brittleness.
Netflix is famous for its Chaos Monkey tool, which intentionally causes failures to force the systems (and, really, the engineers) to be more resilient. The incentives don’t line up in the short term: It makes it harder for Netflix engineers to do their jobs and more expensive for them to run their systems. Over years, this kind of testing generates more stable systems. But it requires corporate leadership with foresight and a willingness to spend in the short term for possible long-term benefits.
The National Highway Traffic Safety Administration crashes cars to learn what happens to the people inside. But cars are relatively simple, and keeping people safe is straightforward. Software is different. It is diverse, is constantly changing, and has to continually adapt to novel circumstances. We can’t expect that a regulation that mandates a specific list of software crash tests would suffice. Again, security and resilience are achieved through the process by which we fail and fix, not through any specific checklist. Regulation has to codify that process.
·lawfaremedia.org·
The CrowdStrike Outage and Market-Driven Brittleness
The Collapse of Self-Worth in the Digital Age - The Walrus
The Collapse of Self-Worth in the Digital Age - The Walrus
My problems were too complex and modern to explain. So I skated across parking lots, breezeways, and sidewalks, I listened to the vibration of my wheels on brick, I learned the names of flowers, I put deserted paths to use. I decided for myself each curve I took, and by the time I rolled home, I felt lighter. One Saturday, a friend invited me to roller-skate in the park. I can still picture her in green protective knee pads, flying past. I couldn’t catch up, I had no technique. There existed another scale to evaluate roller skating, beyond joy, and as Rollerbladers and cyclists overtook me, it eclipsed my own. Soon after, I stopped skating.
the end point for the working artist is to create an object for sale. Once the art object enters the market, art’s intrinsic value is emptied out, compacted by the market’s logic of ranking, until there’s only relational worth, no interior worth. Two novelists I know publish essays one week apart; in a grim coincidence, each writer recounts their own version of the same traumatic life event. Which essay is better, a friend asks. I explain they’re different; different life circumstances likely shaped separate approaches. Yes, she says, but which one is better?
we are inundated with cold, beautiful stats, some publicized by trade publications or broadcast by authors themselves on all socials. How many publishers bid? How big is the print run? How many stops on the tour? How many reviews on Goodreads? How many mentions on Bookstagram, BookTok? How many bloggers on the blog tour? How exponential is the growth in follower count? Preorders? How many printings? How many languages in translation? How many views on the unboxing? How many mentions on most-anticipated lists?
A starred review from Publisher’s Weekly, but I wasn’t in “Picks of the Week.” A mention from Entertainment Weekly, but last on a click-through list.
There must exist professions that are free from capture, but I’m hard pressed to find them. Even non-remote jobs, where work cannot pursue the worker home, are dogged by digital tracking: a farmer says Instagram Story views directly correlate to farm subscriptions, a server tells me her manager won’t give her the Saturday-night money shift until she has more followers.
What we hardly talk about is how we’ve reorganized not just industrial activity but any activity to be capturable by computer, a radical expansion of what can be mined. Friendship is ground zero for the metrics of the inner world, the first unquantifiable shorn into data points: Friendster testimonials, the MySpace Top 8, friending. Likewise, the search for romance has been refigured by dating apps that sell paid-for rankings and paid access to “quality” matches. Or, if there’s an off-duty pursuit you love—giving tarot readings, polishing beach rocks—it’s a great compliment to say: “You should do that for money.” Join the passion economy, give the market final say on the value of your delights. Even engaging with art—say, encountering some uncanny reflection of yourself in a novel, or having a transformative epiphany from listening, on repeat, to the way that singer’s voice breaks over the bridge—can be spat out as a figure, on Goodreads or your Spotify year in review.
And those ascetics who disavow all socials? They are still caught in the network. Acts of pure leisure—photographing a sidewalk cat with a camera app or watching a video on how to make a curry—are transmuted into data to grade how well the app or the creators’ deliverables are delivering. If we’re not being tallied, we affect the tally of others. We are all data workers.
In a nightmarish dispatch in Esquire on how hard it is for authors to find readers, Kate Dwyer argues that all authors must function like influencers now, which means a fire sale on your “private” life. As internet theorist Kyle Chayka puts it to Dwyer: “Influencers get attention by exposing parts of their life that have nothing to do with the production of culture.”
what happens to artists is happening to all of us. As data collection technology hollows out our inner worlds, all of us experience the working artist’s plight: our lot is to numericize and monetize the most private and personal parts of our experience.
We are not giving away our value, as a puritanical grandparent might scold; we are giving away our facility to value. We’ve been cored like apples, a dependency created, hooked on the public internet to tell us the worth.
When we scroll, what are we looking for?
While other fast fashion brands wait for high-end houses to produce designs they can replicate cheaply, Shein has completely eclipsed the runway, using AI to trawl social media for cues on what to produce next. Shein’s site operates like a casino game, using “dark patterns”—a countdown clock puts a timer on an offer, pop-ups say there’s only one item left in stock, and the scroll of outfits never ends—so you buy now, ask if you want it later. Shein’s model is dystopic: countless reports detail how it puts its workers in obscene poverty in order to sell a reprieve to consumers who are also moneyless—a saturated plush world lasting as long as the seams in one of their dresses. Yet the day to day of Shein’s target shopper is so bleak, we strain our moral character to cosplay a life of plenty.
(Unsplash) Technology The Collapse of Self-Worth in the Digital Age Why are we letting algorithms rewrite the rules of art, work, and life? BY THEA LIM Updated 17:52, Sep. 20, 2024 | Published 6:30, Sep. 17, 2024 W HEN I WAS TWELVE, I used to roller-skate in circles for hours. I was at another new school, the odd man out, bullied by my desk mate. My problems were too complex and modern to explain. So I skated across parking lots, breezeways, and sidewalks, I listened to the vibration of my wheels on brick, I learned the names of flowers, I put deserted paths to use. I decided for myself each curve I took, and by the time I rolled home, I felt lighter. One Saturday, a friend invited me to roller-skate in the park. I can still picture her in green protective knee pads, flying past. I couldn’t catch up, I had no technique. There existed another scale to evaluate roller skating, beyond joy, and as Rollerbladers and cyclists overtook me, it eclipsed my own. Soon after, I stopped skating. Y EARS AGO, I worked in the backroom of a Tower Records. Every few hours, my face-pierced, gunk-haired co-workers would line up by my workstation, waiting to clock in or out. When we typed in our staff number at 8:59 p.m., we were off time, returned to ourselves, free like smoke. There are no words to describe the opposite sensations of being at-our-job and being not-at-our-job even if we know the feeling of crossing that threshold by heart. But the most essential quality that makes a job a job is that when we are at work, we surrender the power to decide the worth of what we do. At-job is where our labour is appraised by an external meter: the market. At-job, our labour is never a means to itself but a means to money; its value can be expressed only as a number—relative, fluctuating, out of our control. At-job, because an outside eye measures us, the workplace is a place of surveillance. It’s painful to have your sense of worth extracted. For Marx, the poet of economics, when a person’s innate value is replaced with exchange value, it is as if we’ve been reduced to “a mere jelly.” Wait—Is ChatGPT Even Legal? AI Is a False God How Israel Is Using AI as a Weapon of War Not-job, or whatever name you prefer—“quitting time,” “off duty,” “downtime”—is where we restore ourselves from a mere jelly, precisely by using our internal meter to determine the criteria for success or failure. Find the best route home—not the one that optimizes cost per minute but the one that offers time enough to hear an album from start to finish. Plant a window garden, and if the plants are half dead, try again. My brother-in-law found a toy loom in his neighbour’s garbage, and nightly he weaves tiny technicolour rugs. We do these activities for the sake of doing them, and their value can’t be arrived at through an outside, top-down measure. It would be nonsensical to treat them as comparable and rank them from one to five. We can assess them only by privately and carefully attending to what they contain and, on our own, concluding their merit. And so artmaking—the cultural industries—occupies the middle of an uneasy Venn diagram. First, the value of an artwork is internal—how well does it fulfill the vision that inspired it? Second, a piece of art is its own end. Third, a piece of art is, by definition, rare, one of a kind, nonfungible. Yet the end point for the working artist is to create an object for sale. Once the art object enters the market, art’s intrinsic value is emptied out, compacted by the market’s logic of ranking, until there’s only relational worth, no interior worth. Two novelists I know publish essays one week apart; in a grim coincidence, each writer recounts their own version of the same traumatic life event. Which essay is better, a friend asks. I explain they’re different; different life circumstances likely shaped separate approaches. Yes, she says, but which one is better? I GREW UP a Catholic, a faithful, an anachronism to my friends. I carried my faith until my twenties, when it finally broke. Once I couldn’t gain comfort from religion anymore, I got it from writing. Sitting and building stories, side by side with millions of other storytellers who have endeavoured since the dawn of existence to forge meaning even as reality proves endlessly senseless, is the nearest thing to what it felt like back when I was a believer. I spent my thirties writing a novel and paying the bills as low-paid part-time faculty at three different colleges. I could’ve studied law or learned to code. Instead, I manufactured sentences. Looking back, it baffles me that I had the wherewithal to commit to a project with no guaranteed financial value, as if I was under an enchantment. Working on that novel was like visiting a little town every day for four years, a place so dear and sweet. Then I sold it. As the publication date advanced, I was awash with extrinsic measures. Only twenty years ago, there was no public, complete data on book sales. U
·thewalrus.ca·
The Collapse of Self-Worth in the Digital Age - The Walrus
Spreadsheet Assassins | Matthew King
Spreadsheet Assassins | Matthew King
Rhe real key to SaaS success is often less about innovative software and more about locking in customers and extracting maximum value. Many SaaS products simply digitize spreadsheet workflows into proprietary systems, making it difficult for customers to switch. As SaaS proliferates into every corner of the economy, it imposes a growing "software tax" on businesses and consumers alike. While spreadsheets remain a flexible, interoperable stalwart, the trajectory of SaaS points to an increasingly extractive model prioritizing rent-seeking over genuine productivity gains.
As a SaaS startup scales, sales and customer support staff pay for themselves, and the marginal cost to serve your one-thousandth versus one-millionth user is near-zero. The result? Some SaaS companies achieve gross profit margins of 75 to 90 percent, rivaling Windows in its monopolistic heyday.
Rent-seeking has become an explicit playbook for many shameless SaaS investors. Private equity shop Thoma Bravo has acquired over four hundred software companies, repeatedly mashing products together to amplify lock-in effects so it can slash costs and boost prices—before selling the ravaged Franken-platform to the highest bidder.
In the Kafkaesque realm of health care, software giant Epic’s 1990s-era UI is still widely used for electronic medical records, a nuisance that arguably puts millions of lives at risk, even as it accrues billions in annual revenue and actively resists system interoperability. SAP, the antiquated granddaddy of enterprise resource planning software, has endured for decades within frustrated finance and supply chain teams, even as thousands of SaaS startups try to chip away at its dominance. Salesforce continues to grow at a rapid clip, despite a clunky UI that users say is “absolutely terrible” and “stuck in the 80s”—hence, the hundreds of “SalesTech” startups that simplify a single platform workflow (and pray for a billion-dollar acquihire to Benioff’s mothership). What these SaaS overlords might laud as an ecosystem of startup innovation is actually a reflection of their own technical shortcomings and bloated inertia.
Over 1,500 software startups are focused on billing and invoicing alone. The glut of tools extends to sectors without any clear need for complex software: no fewer than 378 hair salon platforms, 166 parking management solutions, and 70 operating systems for funeral homes and cemeteries are currently on the market. Billions of public pension and university endowment dollars are being burned on what amounts to hackathon curiosities, driven by the machinations of venture capital and private equity. To visit a much-hyped “demo day” at a startup incubator like Y Combinator or Techstars is to enter a realm akin to a high-end art fair—except the objects being admired are not texts or sculptures or paintings but slightly nicer faces for the drudgery of corporate productivity.
As popular as SaaS has become, much of the modern economy still runs on the humble, unfashionable spreadsheet. For all its downsides, there are virtues. Spreadsheets are highly interoperable between firms, partly because of another monopoly (Excel) but also because the generic .csv format is recognized by countless applications. They offer greater autonomy and flexibility, with tabular cells and formulas that can be shaped into workflows, processes, calculators, databases, dashboards, calendars, to-do lists, bug trackers, accounting workbooks—the list goes on. Spreadsheets are arguably the most popular programming language on Earth.
·web.archive.org·
Spreadsheet Assassins | Matthew King
Meta’s Big Squeeze – Pixel Envy
Meta’s Big Squeeze – Pixel Envy
These pieces each seem like they are circling a theme of a company finding the upper bound of its user base, and then squeezing it for activity, revenue, and promising numbers to report to investors. Unlike Zitron, I am not convinced we are watching Facebook die. I think Koebler is closer to the truth: we are watching its zombification.
·pxlnv.com·
Meta’s Big Squeeze – Pixel Envy
Google’s A.I. Search Errors Cause a Furor Online
Google’s A.I. Search Errors Cause a Furor Online
This February, the company released Bard’s successor, Gemini, a chatbot that could generate images and act as a voice-operated digital assistant. Users quickly realized that the system refused to generate images of white people in most instances and drew inaccurate depictions of historical figures.With each mishap, tech industry insiders have criticized the company for dropping the ball. But in interviews, financial analysts said Google needed to move quickly to keep up with its rivals, even if it meant growing pains.Google “doesn’t have a choice right now,” Thomas Monteiro, a Google analyst at Investing.com, said in an interview. “Companies need to move really fast, even if that includes skipping a few steps along the way. The user experience will just have to catch up.”
·nytimes.com·
Google’s A.I. Search Errors Cause a Furor Online
Transcript: Ezra Klein Interviews Nilay Patel
Transcript: Ezra Klein Interviews Nilay Patel
if you just think about the business model of the internet as — there’s a box that you can upload some content into, and then there’s an algorithm between you and an audience, and some audience will find the stuff you put in the box, and then you put an infinity amount of stuff into the box, all of that breaks.
more and more of the stuff that you consume is designed around pushing you towards a transaction. That’s weird. I think there’s a vast amount of white space in the culture for things that are not directly transactable.
We constantly ask huge amounts of the population to do things that are very rote. Keep inputting this data on forms, keep filling out this tax form. Some lawyers arguing for the Supreme Court, a lot of them just write up various contracts. And that’s a good job in the sense that it pays well, it’s inside work, but it doesn’t ask you to be that full of a human being.
I think a lot of organizations are not set up for a lot of people to use judgment and discernment. They treat a lot of people like machines, and they don’t want them doing things that are complicated and step out of line and poke at the assumptions in the Excel doc. They want the Excel doc ported over without any mistakes.
I think a lot of organizations are not set up for a lot of people to use judgment and discernment. They treat a lot of people like machines, and they don’t want them doing things that are complicated and step out of line and poke at the assumptions in the Excel doc.
I distinctly remember life before computers. It’s an experience that I had quite viscerally. And that shapes my view of these tools. It shapes my view of these companies. Well, there’s a huge generation now that only grew up in this way. There’s a teenage generation right now that is only growing up in this way. And I think their natural inclination is to say, well, this sucks. I want my own thing. I want my own system of consuming information. I want my own brands and institutions.And I don’t think that these big platforms are ready for that moment. I think that they think they can constantly be information monopolies while they are fending off A.I.-generated content from their own A.I. systems. So somewhere in there all of this stuff does break. And the optimism that you are sensing from me is, well, hopefully we build some stuff that does not have these huge dependencies on platform companies that have no interest at the end of the line except a transaction.
these models in their most reductive essence are just statistical representations of the past. They are not great at new ideas.And I think that the power of human beings sort of having new ideas all the time, that’s the thing that the platforms won’t be able to find. That’s why the platforms feel old. Social platforms like enter a decay state where everyone’s making the same thing all the time. It’s because we’ve optimized for the distribution, and people get bored and that boredom actually drives much more of the culture than anyone will give that credit to, especially an A.I. developer who can only look backwards.
the idea is, in my mind at least, that those people who curate the internet, who have a point of view, who have a beginning and middle, and an end to the story they’re trying to tell all the time about the culture we’re in or the politics we’re in or whatever. They will actually become the centers of attention and you cannot replace that with A.I. You cannot replace that curatorial function or that guiding function that we’ve always looked to other individuals to do.
I think as the flood of A.I. comes to our distribution networks, the value of having a powerful individual who curates things for people, combined with a powerful institution who protects their integrity actually will go up. I don’t think that’s going to go down.
·nytimes.com·
Transcript: Ezra Klein Interviews Nilay Patel
How Big Tech and Silicon Valley are Transforming the Military-Industrial Complex | Costs of War
How Big Tech and Silicon Valley are Transforming the Military-Industrial Complex | Costs of War
Given the often-classified nature of large defense and intelligence contracts, a lack of transparency makes it difficult to discern the true amount of U.S. spending diverted to Big Tech. Yet, research reveals that the amount is substantial, and growing. According to the nonprofit research organization Tech Inquiry, three of the world’s biggest tech corporations were awarded approximately $28 billion from 2018 to 2022, including Microsoft ($13.5 billion), Amazon ($10.2 billion), and Alphabet
From 2021 through 2023, venture capital firms reportedly pumped nearly $100 billion into defense tech startup companies — an amount 40 percent higher than the previous seven years combined.
·watson.brown.edu·
How Big Tech and Silicon Valley are Transforming the Military-Industrial Complex | Costs of War
How McKinsey Destroyed the Middle Class - The Atlantic
How McKinsey Destroyed the Middle Class - The Atlantic

The rise of management consulting firms like McKinsey played a pivotal role in disempowering the American middle class by promoting corporate restructuring that concentrated power and wealth in the hands of elite managers while stripping middle managers and workers of their decision-making roles, job security, and opportunities for career advancement.

Key topics:

  • Management consulting's role in reshaping corporate America
  • The decline of the middle class and the rise of corporate elitism
  • McKinsey's influence on corporate restructuring and inequality
  • The shift from lifetime employment to precarious jobs
  • The erosion of corporate social responsibility
  • The role of management consulting in perpetuating economic inequality
what consequences has the rise of management consulting had for the organization of American business and the lives of American workers? The answers to these questions put management consultants at the epicenter of economic inequality and the destruction of the American middle class.
Managers do not produce goods or deliver services. Instead, they plan what goods and services a company will provide, and they coordinate the production workers who make the output. Because complex goods and services require much planning and coordination, management (even though it is only indirectly productive) adds a great deal of value. And managers as a class capture much of this value as pay. This makes the question of who gets to be a manager extremely consequential.
In the middle of the last century, management saturated American corporations. Every worker, from the CEO down to production personnel, served partly as a manager, participating in planning and coordination along an unbroken continuum in which each job closely resembled its nearest neighbor.
Even production workers became, on account of lifetime employment and workplace training, functionally the lowest-level managers. They were charged with planning and coordinating the development of their own skills to serve the long-run interests of their employers.
At McDonald’s, Ed Rensi worked his way up from flipping burgers in the 1960s to become CEO. More broadly, a 1952 report by Fortune magazine found that two-thirds of senior executives had more than 20 years’ service at their current companies.
Top executives enjoyed commensurately less control and captured lower incomes. This democratic approach to management compressed the distribution of income and status. In fact, a mid-century study of General Motors published in the Harvard Business Review—completed, in a portent of what was to come, by McKinsey’s Arch Patton—found that from 1939 to 1950, hourly workers’ wages rose roughly three times faster than elite executives’ pay. The management function’s wide diffusion throughout the workforce substantially built the mid-century middle class.
The earliest consultants were engineers who advised factory owners on measuring and improving efficiency at the complex factories required for industrial production. The then-leading firm, Booz Allen, did not achieve annual revenues of $2 million until after the Second World War. McKinsey, which didn’t hire its first Harvard M.B.A. until 1953, retained a diffident and traditional ethos
A new ideal of shareholder primacy, powerfully championed by Milton Friedman in a 1970 New York Times Magazine article entitled “The Social Responsibility of Business is to Increase its Profits,” gave the newly ambitious management consultants a guiding purpose. According to this ideal, in language eventually adopted by the Business Roundtable, “the paramount duty of management and of boards of directors is to the corporation’s stockholders.” During the 1970s, and accelerating into the ’80s and ’90s, the upgraded management consultants pursued this duty by expressly and relentlessly taking aim at the middle managers who had dominated mid-century firms, and whose wages weighed down the bottom line.
Management consultants thus implemented and rationalized a transformation in the American corporation. Companies that had long affirmed express “no layoff” policies now took aim at what the corporate raider Carl Icahn, writing in the The New York Times in the late 1980s, called “corporate bureaucracies” run by “incompetent” and “inbred” middle managers. They downsized in response not to particular business problems but rather to a new managerial ethos and methods; they downsized when profitable as well as when struggling, and during booms as well as busts.
Downsizing was indeed wrenching. When IBM abandoned lifetime employment in the 1990s, local officials asked gun-shop owners around its headquarters to close their stores while employees absorbed the shock.
In some cases, downsized employees have been hired back as subcontractors, with no long-term claim on the companies and no role in running them. When IBM laid off masses of workers in the 1990s, for example, it hired back one in five as consultants. Other corporations were built from scratch on a subcontracting model. The clothing brand United Colors of Benetton has only 1,500 employees but uses 25,000 workers through subcontractors.
Shift from lifetime employment to reliance on outsourced labor; decline in unions
The shift from permanent to precarious jobs continues apace. Buttigieg’s work at McKinsey included an engagement for Blue Cross Blue Shield of Michigan, during a period when it considered cutting up to 1,000 jobs (or 10 percent of its workforce). And the gig economy is just a high-tech generalization of the sub-contractor model. Uber is a more extreme Benetton; it deprives drivers of any role in planning and coordination, and it has literally no corporate hierarchy through which drivers can rise up to join management.
In effect, management consulting is a tool that allows corporations to replace lifetime employees with short-term, part-time, and even subcontracted workers, hired under ever more tightly controlled arrangements, who sell particular skills and even specified outputs, and who manage nothing at all.
the managerial control stripped from middle managers and production workers has been concentrated in a narrow cadre of executives who monopolize planning and coordination. Mid-century, democratic management empowered ordinary workers and disempowered elite executives, so that a bad CEO could do little to harm a company and a good one little to help it.
Whereas at mid-century a typical large-company CEO made 20 times a production worker’s income, today’s CEOs make nearly 300 times as much. In a recent year, the five highest-paid employees of the S&P 1500 (7,500 elite executives overall), obtained income equal to about 10 percent of the total profits of the entire S&P 1500.
as Kiechel put it dryly, “we are not all in this together; some pigs are smarter than other pigs and deserve more money.” Consultants seek, in this way, to legitimate both the job cuts and the explosion of elite pay. Properly understood, the corporate reorganizations were, then, not merely technocratic but ideological.
corporate reorganizations have deprived companies of an internal supply of managerial workers. When restructurings eradicated workplace training and purged the middle rungs of the corporate ladder, they also forced companies to look beyond their walls for managerial talent—to elite colleges, business schools, and (of course) to management-consulting firms. That is to say: The administrative techniques that management consultants invented created a huge demand for precisely the services that the consultants supply.
Consulting, like law school, is an all-purpose status giver—“low in risk and high in reward,” according to the Harvard Crimson. McKinsey also hopes that its meritocratic excellence will legitimate its activities in the eyes of the broader world. Management consulting, Kiechel observed, acquired its power and authority not from “silver-haired industry experience but rather from the brilliance of its ideas and the obvious candlepower of the people explaining them, even if those people were twenty-eight years old.”
A deeper objection to Buttigieg’s association with McKinsey concerns not whom the firm represents but the central role the consulting revolution has played in fueling the enormous economic inequalities that now threaten to turn the United States into a caste society.
Meritocrats like Buttigieg changed not just corporate strategies but also corporate values.
GM may aspire to build good cars; IBM, to make typewriters, computers, and other business machines; and AT&T, to improve communications. Executives who rose up through these companies, on the mid-century model, were embedded in their firms and embraced these values, so that they might even have come to view profits as a salutary side effect of running their businesses well.
When management consulting untethered executives from particular industries or firms and tied them instead to management in general, it also led them to embrace the one thing common to all corporations: making money for shareholders. Executives raised on the new, untethered model of management aim exclusively and directly at profit: their education, their career arc, and their professional role conspire to isolate them from other workers and train them single-mindedly on the bottom line.
American democracy, the left believes, cannot be rejuvenated by persuading elites to deploy their excessive power somehow more benevolently. Instead, it requires breaking the stranglehold that elites have on our economics and politics, and reempowering everyone else.
·archive.is·
How McKinsey Destroyed the Middle Class - The Atlantic
The Man Who Killed Google Search
The Man Who Killed Google Search
The relentless pursuit of growth and revenue by Google's ads and finance teams, led by Prabhakar Raghavan, has compromised the quality and integrity of Google Search, leading to the ouster of Ben Gomes, who prioritized user experience over profits
Under Raghavan, Google has become less reliable, less transparent, and is dominated by search engine optimized aggregators, advertising, and outright spam.
Google is the ultimate essential piece of online infrastructure, just like power lines and water mains are in the physical realm.
In April 2011, the Guardian ran an interview with Raghavan that called him “Yahoo’s secret weapon,” describing his plan to make “rigorous scientific research and practice… to inform Yahoo's business from email to advertising,” and how under then-CEO Carol Bartz, “the focus has shifted to the direct development of new products.” It speaks of Raghavan’s “scientific approach” and his “steady, process-based logic to innovation that is very different to the common perception that ideas and development are more about luck and spontaneity,” a sentence I am only sharing with you because I need you to see how stupid it is, and how specious the tech press’ accolades used to be. This entire article is ridiculous, so utterly vacuous that I’m actually astonished. What about Raghavan’s career made this feel right? How has nobody connected these dots before and said something? Am I insane?
Sundar Pichai, who previously worked at McKinsey — arguably the most morally abhorrent company that has ever existed, having played roles both in the 2008 financial crisis (where it encouraged banks to load up on debt and flawed mortgage-backed securities) and the ongoing opioid crisis, where it effectively advised Purdue Pharma on how to “growth hack” sales of Oxycontin. McKinsey has paid nearly $1bn over several settlements due to its work with Purdue. I’m getting sidetracked, but one last point. McKinsey is actively anti-labor.
·wheresyoured.at·
The Man Who Killed Google Search
Saving the Liberal Arts - David Perell
Saving the Liberal Arts - David Perell
  • The decline of Liberal Arts is driven by both financial and ideological factors.
    • Universities prioritize career-focused majors due to funding cuts and student demand for practical skills.
    • The high cost of college tuition pushes students to focus on getting a high-paying job after graduation.
    • Professional skills become obsolete quickly, while a Liberal Arts education provides a foundation of knowledge that is timeless.
    • Liberal Arts education is considered "fundamental knowledge" that is slow to change and provides a broader perspective.
  • People are sacrificing their well-being for work without questioning why.
  • Obsession with productivity discourages people from pursuing non-income producing knowledge.
  • The decline of leisure time reduces opportunities for contemplation and reflection.
  • The Liberal Arts provide timeless and fundamental knowledge that is applicable across situations.
    • Universities prioritize filtering students for the labor market over nurturing their potential.
    • The tenure system can incentivize research over teaching and responsiveness to student needs.
  • A Liberal Arts education helps people question societal structures and appreciate life beyond materialism.
  • Critique of universities for prioritizing job placement over a well-rounded education.
There’s a trade-off between practicality and timelessness. Knowledge at the top of the chart, such as fashion and commerce, is immediately actionable, but decays the fastest. They’re relevant in everyday life for social and earning an income, but their specifics have a short half-life. Meanwhile, culture and nature are deeper on the chart. They offer fundamental knowledge. Their lessons apply everywhere, even if they’re beyond the scope of conscious thought in most people’s day-to-day lives. The further down the layers you travel, the longer it will take for the knowledge to pay off, but the longer that information will stay relevant and the more widely applicable it will be.
by pushing students to pursue what is immediately profitable instead of what’s ultimately meaningful, they will devalue fundamental knowledge. That’s because the business models for income share agreements and student debt insurance only work if the students make a lot of money after college.
In a study conducted during her time there, three quarters of freshmen said college was essential to developing a meaningful philosophy of life. By contrast, only a third said that it was essential to financial well-being. Today, those fractions have flipped.
You shouldn’t need to attend four years of college to earn a living. Instead, we should make it cheap and expedient for young people to receive a professional education and develop practical skills. After a year of training in the classroom, they can do an apprenticeship where they can get paid to learn instead of paying to learn.
These changes will help young adults achieve financial stability, build economically rewarded skills, and break free from parental dependence. They should study the Liberal Arts when they’re older. Rather than forcing students to slog through Dostoevsky when they are 18 — when they’re all wondering, rightly, how this is going to help them find a job — we should create schools for amateurs of all ages so they can read Crime and Punishment and The Brothers Karamazov later, when they have the life experience to appreciate it.
Today, most students are only able to formally study the Liberal Arts between the ages of 18 and 30. They only have four years during their undergraduate degree, and only the most academically ambitious of them continue their studies into graduate school. Of those who pursue a master’s degree, most stay in academia.
But if students could take Liberal Arts classes later in life, a much greater percentage would learn for the joy of it. Once again, the religious metaphor holds. No Church expects its congregants to only study the Bible for four years, with an option to keep studying as long as you plan to become a priest. But that’s what we do with the Liberal Arts.
Plato would have criticized today’s Westerners who compromise an erudite life and salivate over wealth instead, even when they’re swimming in riches.49 In a criticism of his contemporaries, he observed that their love of wealth “leaves them no respite to concern themselves with anything other than their private property. The soul of the citizen today is entirely taken up with getting rich and with making sure that every day brings its share of profit. The citizen is ready to learn any technique, to engage in any kind of activity, so long as it is profitable. He thumbs his nose at the rest.”
To prevent these failure modes, there are three guidelines Liberal Arts schools should follow: Don’t focus on practical skills, prize free thinking over ideology, and target an older audience of professionally established people.
A market-driven curriculum will create McDegree programs where students study the kinds of self-help books you find in the philosophy section of an airport bookstore. Think of already-popular books like Aristotle’s Way: How Ancient Wisdom Can Change Your Life, which reduces the great Greek philosopher into a self-help guru.
People who are employed struggle to pursue a Liberal Arts education not just because they have busy schedules, but because the material can feel so disconnected from daily reality.
With the extended focus on Professional Education at the early stage of a career, we should create opportunities for students to receive a Civilized Education throughout their life where they can appreciate life beyond the almighty Dollar.
Wesleyan President Michael Roth, the author of the best book I’ve read on the Liberal Arts, once wrote: “Education is for human development, human freedom, not the molding of an individual into a being who can perform a particular task. That would be slavery.” Up until now, our colleges have followed a philosophy of giving young people freedom early and waiting until the postgraduate years to focus on a profession. Only toward the end of the 20th century did a bachelor’s degree become a prerequisite for most jobs and professional academic study such as a master’s or a PhD. We should return to a world where Civilized Education is not mandatory. Where students can postpone the Liberal Arts to acquire technical skills that are rewarded in the economic marketplace. Students are already asking for the changes, as shown by the changing composition of majors.
College was once a place to explore the True, the Good, and the Beautiful without regard for utility. But today, it’s seen as a means toward the end of finding a job. Ideas that aren’t economically valuable are belittled as useless knowledge. Materialism has become our North Star. As a society, we measure progress in changes to the material world, where we prioritize what we can see and measure. We evaluate ourselves by productivity, our economy by the availability of cheap goods, and our civilization by the rate of technological progress. We’ve forgotten about our human need for wonder, beauty, and contemplation. Today, we worship the Factual, the Useful, and the Monetizable.
Don’t get me wrong. The fruits of clean water and modern medicine are miraculous. But what good is a materialistic utopia if it comes at the cost of a spiritual one? We are more indebted, depressed, and suicidal than ever before. And yet, we continue to worship technological progress and material abundance as if they will elevate the soul. As so, we run and run and run — hoping that all that effort will save us. But if people feel too constrained to pursue wonder and beauty as ends in themselves, are we really making progress?
Mistaking money for cultural well-being is like mistaking a roof for a home. ROI-brain only speaks in the language of materialism, and we should be skeptical of it. Otherwise, our lives will follow the leash of cheap pleasures and distracting dopamine hits. Corporations, too, will continue to sell instant improvements without regard for their long-term effects.
Taken all together, the Liberal Arts is the meta-recognition of our world.
If we cannot question the systems that guide our lives, we will be enslaved to them. Nor will we be saved by comfort, pleasure, or a respectable job that impresses our family at the Thanksgiving table. Only with a Liberal Arts education will we develop the capacity to thrive as conscious adults. By studying the foundations of how we think, who we are, and how we got here, we’ll gain control over our minds and create a more flourishing civilization.
·perell.com·
Saving the Liberal Arts - David Perell
How a new way to vote is gaining traction in states — and could transform US politics
How a new way to vote is gaining traction in states — and could transform US politics
example of a system influencing incentives in politics
even more important, many advocates argue, is how the two reforms together can change how candidates and elected officials of all stripes approach their jobs, by adjusting the incentive structure they operate under. Increasingly, many states and districts are solidly red or blue, meaning the general election is uncompetitive, and the key race takes place in the primary. That’s a problem, because the primary electorate is by and large smaller, more partisan and more extreme than the general electorate. Right now, with politicians worrying more about the primary than the general, they’re more focused on playing to their base than on reaching beyond it and solving problems, critics argue.
By allowing multiple candidates to advance, Final Four/Five shifts the crucial election from the primary to the general. And RCV means the votes of Democrats in red districts and Republicans in blue ones still matter, even if their top choice remains unlikely to win. Together, it means candidates are rewarded for paying attention to the entire general electorate, not just a small slice of staunch supporters. As a result, it encourages candidates — and elected officials, once in office — toward moderation and problem-solving, and away from extremism.
·azmirror.com·
How a new way to vote is gaining traction in states — and could transform US politics
Interview with Leo Chang, Staff Designer at Darkroom Studios, on Visual Design
Interview with Leo Chang, Staff Designer at Darkroom Studios, on Visual Design
There are certain design principles you can apply to this like composition, hierarchy, color theory, and so on, but to the regular consumer, it’s the gestalt of all your design decisions that ultimately makes an emotional connection. We know emotion is so much of what drives purchasing behavior so the more nebulous goal of visual design is often pulling those levers in just the right ratio to elicit a desired connection to your product.
ven something as foundational as increasing white space in your design can instantly improve a customer’s perception of your brand’s worth when it’s done intentionally.
almost all clients agree that they need better look and feel in their digital experience, that they are looking to add some type of emotional signal that’s missing. But when it comes time to accept changes that address those problems, I’ve had several instances where clients are resistant to solutions that depart too significantly from what they’re already comfortable with. Usually that reservation is overcome when I correlate the visual changes to the ways in which the user experience is improved and the resulting impact on business performance. There will be also times when a client expresses to us that they’ve never been satisfied with their brand or website and they point to competitors that evoke certain emotional qualities that they are aspiring to capture. In those cases it’s quite rewarding to be able to translate those more nebulous feelings into concrete terminology that gives us specific visual principles to bring in or improve on.
·anthonyhobday.com·
Interview with Leo Chang, Staff Designer at Darkroom Studios, on Visual Design
David Ayer Says ‘Suicide Squad’ Broke Him: ‘Hollywood Is Like Watching Someone You Love Get F—ed by Someone You Hate’
David Ayer Says ‘Suicide Squad’ Broke Him: ‘Hollywood Is Like Watching Someone You Love Get F—ed by Someone You Hate’
Example of executives having a superficial understanding of what makes movies appealing; believing they can follow formula and turn a movie into something it isn’t
“Come right off ‘Fury,’ right? I had the town in my hand — could’ve done anything, and I did do anything,” Ayer continued. “And [I] go on this journey with [‘Suicide Squad’]. And the same thing — authentic, truthful, let’s do all the rehearsal, let’s really get in each other’s souls. Let’s create this amazing, collaborative thing, right? And then ‘Deadpool’ opened, right? And they never tested ‘Batman v. Superman,’ so they were expecting a different result, and then they got hammered by all the critics. Then it’s like, ‘Okay, we’re going to turn David Ayer’s dark, soulful movie into a fucking comedy now.’”
·variety.com·
David Ayer Says ‘Suicide Squad’ Broke Him: ‘Hollywood Is Like Watching Someone You Love Get F—ed by Someone You Hate’
Why Do Employers Provide Health Care in the First Place?
Why Do Employers Provide Health Care in the First Place?
In 2017, Americans spent $3.5 trillion on health care — a level nearly equal to the economic output of Germany, and twice as much as other wealthy countries spend per person, on average. Not only is this a problem for the people seeking care; it’s also a problem for the companies they work for. Currently, about half of Americans are insured through an employer, and in recent years companies have borne the financial brunt of rising costs. Frustrated, many employers have shifted the burden to workers, with average annual deductibles rising by more than 50% since 2013.
·hbr.org·
Why Do Employers Provide Health Care in the First Place?
Google has a company strategy, not a product strategy
Google has a company strategy, not a product strategy
The VP in charge of Google Plus hosted the Friday all-hands several times to get us all excited about what they were building. It was obvious to me and many others that there was no reason for people already on Facebook to switch from Facebook. Someone asked a direct question, but the VP deflected and talked about how easy it would be to group your friends with the Circles feature — which was not at all a reason to switch.It seemed like Google didn’t have the processes or experience to get the product strategy right. “Who are our potential users and what does it take to win them?” is product strategy 101. Maybe someone raised this question in an exec review, but it didn’t become a launch blocker. Google+ never took off, and was eventually shut down.
If Google didn’t start with a conviction that they needed the product, it makes sense that they wouldn’t have the stamina to keep iterating and investing. Most other companies don’t have the money to build and launch products with such little conviction and oversight. Other companies need their products to succeed, so they try harder & smarter to make the products successful.
IME people often don’t realize that product strategies are actually way more important and influential than company strategies. Simply because it’s the products that have an impact on people’s lives, not the company.
Google has a company strategy, but they don’t make product strategies.
Google’s company strategy is “Hire all the smart people.” Hire all the smart people and let them build. Hire all the smart people so they can’t work at a competitor. Hire all the smart people even if we don’t have something important for them to work on.Google acts like a venture capitalist, investing in promising people with the expectation that most will fail. They invest broadly in search of the idea that will deliver 100x. Let 1000 flowers bloom, and see which are the best.
·jackiebavaro.substack.com·
Google has a company strategy, not a product strategy
The Myth of Education
The Myth of Education
The purpose of education is to socialise human beings into a life of complete institutional dependency. School teaches you that justice must come from someone in institutional authority, that meaningful activity must come from a ‘career path,’ that if you want to express yourself you must first gain access to centralised speech platforms,1 that if you want to do something, you must first of all gain a licence or a qualification and that, above all, your own desires and instincts are invalid.
·expressiveegg.org·
The Myth of Education
Seven Rules For Internet CEOs To Avoid Enshittification
Seven Rules For Internet CEOs To Avoid Enshittification
People forget that when Bezos introduced Amazon Prime, Wall St. flipped out, because they insisted that it would cost way too much for too little benefit. But, through it all Amazon survived (and thrived) because Bezos just kept telling investors exactly what his plan was, and never backed down, no matter what Wall St. kept saying to him.
This is too easily forgotten, but your users are everything if you run an internet business. They’re not “the product.” They’re what makes your site useful and valuable, and often provide the best marketing you could never buy by convincing others to join and providing you with all of the best ideas on how to improve things and make your service even better for the users. The moment you’re undermining your own community, you’re beginning to spiral downward.
As you’re developing a business model, the best way to make sure that you’re serving your users best, and not enshittifying everything, is to constantly make sure that you’re only capturing some of the value you’re creating, and are instead putting much more out into the world, especially for your community.
Push the power to make your service better out from the service to the users themselves and watch what they do. Let them build. Let them improve your service. Let them make it work better for you. But, you have to have some trust here. If you’re focused on “Rule 3” you have to recognize that sometimes your users will create value that you don’t capture. Or even that someone else captures. But in the long run, it still flows back to you, as it makes your service that much more valuable.
If you’re charging for something that was once free, you’re taking away value from your community. You’re changing the nature of the bargain, and ripping away the trust that your community put in you. Instead, always look for something new that is worth paying for above and beyond what you already offered.
There are ways to monetize that don’t need to overwhelm, that don’t need to suck up every bit of data, that don’t need to rely on taking away features users relied on. Focus on adding more scarce value, and figuring out ways to charge for those new things which can’t be easily replicated.
You start learning acronyms like “ARPU” (average revenue per user) and such. And then you’re being measured on how much you’re increasing those metrics, which means you need to squeeze more out of each individual user, and you’re now deep within the enshittification stage, in which you’re trying to squeeze your users for more money each quarter (because now everything is judged in how well you did in the last 3 months to improve that number).
·techdirt.com·
Seven Rules For Internet CEOs To Avoid Enshittification
Reddit API AMA and User Revolt
Reddit API AMA and User Revolt
good roundup of comments about the Reddit API debacle caused by CEO Steve Huffman
Reddit is rumored to have plans to go public, but they need better leadership than the current team. Huffman has shown no leadership skills. He doesn’t know how to read the room. Most importantly, he lacks the social empathy to lead a social platform. Even more disappointing is the lack of comments or intervention from Reddit co-founder Alexis Ohanian, the always chatty — who seems to have advice for every other founder, except for his co-founder. […] In an attempt to monetize the content generated by the community, Huffman forgot that it is the people who make the platform. The community is the platform. It is something the owners of social media platforms forget. […] It happened with MySpace. It has happened with Twitter. It is now happening with Reddit. They never learn from past mistakes. They assume that because they own the platform, they own the community. Every time they forget that important thing, they erode the community’s trust. And once that trust goes, so does the unfettered loyalty. People start looking for options.
I have zero faith in Steve Huffman’s ability to lead Reddit. What kind of chief executive officer posts this comment after a massive community backlash?
closing off 3rd party API access mostly serves an IPO, not OpenAI. If Reddit merely wanted to restrict the ability to scrape its data, they could have done so without killing off clients – e.g. via licensing deals. However, perhaps if access to training data is seen as an elbows-out brawl, I could see how Reddit would be extremely protective of its data. I mean, lyrics websites, map makers, and dictionaries go to great lengths to protect their data. It would not be a giant stretch for Reddit to do so as well.
Huffman is right that, in the end, the whole situation reflects a product problem: the native Reddit apps, both on desktop and on mobile, are ugly and difficult to use. (In particular, I find the nested comments under each post bizarrely difficult to expand or collapse; the tap targets for your fingers are microscopic.) Reddit didn’t really navigate the transition to mobile devices so much as it endured it; it’s little wonder that millions of the service’s power users have sought refuge in third-party apps with more modern designs.
·mjtsai.com·
Reddit API AMA and User Revolt
The Computer is a Feeling
The Computer is a Feeling
  1. The computer is a feeling, not a device.
  2. By this we mean that what makes a computer a computer has nothing to do with commands, compilers, or even machines. For us, computer is the specific feeling of artifacts that allow for intimate systems of personal meaning.
  3. This point has been obscured for two reasons. First: the language we use to talk about computing - established decades ago - has lost its original meaning and force.
  4. Consider the term “personal computer”. This phrase used to distinguish what was special in the moment about the devices that gave us computer feelings: the Apple II, the Commodore 64, the Windows PC. They were personal – not big mainframes – and they were computers – a kind of device that runs instructions. 
  5. Both of these features are now ubiquitous. Computer-devices are now everywhere, nearly all of them personal in some sense. This comes from the commodification of hardware. What was previously scarce and expensive is now simply an implementation detail: computerization is the cheapest way to control any machine, whether it is a toaster or a fridge or a car or a smartphone. 
  6. These devices may have the hardware of a computer inside, they may even run a computer operating system like Linux, but they're not computers in the emotional sense that we mean. “Computer”, once an apt term for both the technology and the feeling it gave, has become less descriptive with time. 
  7. Second: the modern internet exerts a tyranny over our imagination. The internet and its commercial power has sculpted the computer-device. It's become the terrain of flat, uniform, common platforms and protocols, not eccentric, local, idiosyncratic ones. This is out of necessity: if two or two hundred or two million or two billion computers are going to communicate with each other, they simply must agree on quite a bit. 
  8. The triumph of the internet has also impoverished our sense of computers as a tool for private exploration rather than public expression. The pre-network computer has no utility except as a kind of personal notebook, the post-network computer demotes this to a secondary purpose. 
  9. We live in a world of ubiquitous computer-devices, but fading computer-feeling. Consider the smartphone, an indisputably "personal computer." The smartphone is for you; it sits in your pocket. The smartphone is a computer; it is made of silicon and software.
  10. But the smartphone is not a philosophically meaningful computer. It gives only dim flashes of computer-feeling. Accepting it as a COMPUTER feels silly, wrong.
  11. Do you dream about your smartphone? 
  12. Does it feel like a place that you can inhabit and shape and reconfigure? 
  13. Does it give you a sense of possibility? 
  14. Computers are a feeling, not a device.
  15. An old dogma is that true computer-feeling emanates from certain technical commitments. Open source and free software partisans hold to the orthodoxy that the computer-feeling depends on the capability to read and write source code. 
  16. The modern era highlights the absurdities of this creed. We live in a world awash in resources shilling the self-help doctrine of “learn to code”. But, as yet, the computer-feeling continues to ebb away. Programming is a means to evoke a computer-feeling, but no iron law requires that one will use it for this purpose. 
  17. This orthodoxy is also a kind of fetishism. “Programming” can conjure a computer-feeling, but it is not the computer-feeling itself. The sense that programming is the only way celebrates the tools, but not the experience. We want the experience. 
  18. Making “computer” mean computer-feelings and not computer-devices shifts the boundaries of what is captured by the word. It removes a great many things – smartphones, language models, “social” “media” – from the domain of the computational. It also welcomes a great many things – notebooks, papercraft, diary, kitchen – back into the domain of the computational. 
  19. The agenda is to expand our understanding of what makes the computer-feeling. 
  20. The agenda is to advance the computer-feeling in devices, objects, and cultures.
·docs.google.com·
The Computer is a Feeling