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Inside the Collapse of Venture for America
Inside the Collapse of Venture for America
In the beginning, VFA was an institution beloved by many of its fellows. “It was a wonderful way to leave college and enter the real world because you’re surrounded by a community and there’s support from the organization,” says Jamie Norwood, co-founder of feminine hygiene brand Winx Health. Norwood and her co-founder, Cynthia Plotch, are a VFA success story. They met as fellows in 2015 and VFA eventually helped them launch their company with a grant and advisement. “We always say, Winx Health would not be here without VFA,” Norwood says.
Norwood and Plotch went through the standard VFA admissions protocol, which was rigorous. It required two written applications, a video interview, and in-person interviews at an event called “Selection Day,” many of which were held in New York City and Detroit over the years. By the end of each university term in May, accepted fellows would get access to Connect, VFA’s job portal, and have until November to land a job. For each fellow hired in a full-time job, VFA received a $5,000 placement fee, paid by partner companies. This fee became a crucial revenue stream for the organization—effectively wedding the professional success of its fellows to its bottom line.
Selection Day interviews were conducted by judges who often pitted interviewees against each other. Candidates were told to organize themselves in order of least to most likely to be successful, or according to whose answers had the most value per word. The format felt ruthless. “People cried” during the interview process, Plotch remembers.
The problems with the business bled into the fellows’ experience in 2023 and 2024, leaving them disenchanted, financially struggling, or expelled en masse from the program for reasons they believe were beyond their control. Despite a multitude of financial red flags, VFA leadership still insisted on recruiting for the 2024 class. “The talent team was traveling nonstop, using prepaid Visa cards since the corporate cards didn’t work,” explains a former director who worked closely with fellows.
Onboarding fresh recruits became increasingly crucial if VFA was going to survive. The organization asked companies for placement fees upfront in 2023, according to internal VFA documents and conversations with former employees. The policy change gave companies pause. Fewer companies signed up as partners, meaning fellows weren’t getting jobs and VFA was losing money.
In the spring of 2023, “there were 15 jobs on opening day,” for a class that eventually grew to over 100 fellows, the former director explains. Gabriella Rudnik, a 2023 fellow, estimates that when training camp began in July 2023, less than half of her peers had jobs, “whereas in previous years it would be closer to like 80 percent.”
Fellows were made to pay the price for the shortage of companies partnering with VFA in 2023. “We weren’t getting more jobs on Connect, and that’s what led to so many fellows being off-boarded,” explains a former director who worked closely with fellows.
Traditionally, VFA gave fellows a deadline of November of their class year to find a job, which typically meant a few stragglers were given extra help to find a position if they were late. In those rare cases during earlier years, fellows were offboarded by the organization, a former director says.
In previous years, expulsion was a much more serious and infrequent occurrence. “Removal from the fellowship was not something done lightly. During my tenure, we instituted an internal investigation process, similar to an HR investigation,” says the former executive who worked at VFA from 2017-20.  In total, at least 40 fellows from the 2023 class were expelled for failing to get jobs that weren’t available, according to research by former VFA fellows who tracked the number of fellows purged from a Slack channel. Records of their participation were removed from the VFA website, the fellows say.
Many fellows had made sacrifices to be part of the highly selective and prestigious VFA, which cited acceptance rates of around 10 percent of applicants. “There were fellows who turned down six-figure jobs to be a part of this program, and were told that the program that Andrew Yang started would live up to its reputation,” says Paul Ford, a 2024 fellow.
Though internal documents show that VFA was slowly imploding for months, in all external communications with fellows, the nonprofit still maintained that 2024 training camp would take place in Detroit.
“From an ethical perspective, it does reek of being problematic,” says Thad Calabrese, a professor of nonprofit management at New York University. “You entered into an arrangement with people who don’t have a lot of money, who believed that you were going to make them whole. Then you’re going to turn around and not make them whole.”
#trends#capitalism#economy#business#startups#VFA#profiles#bts#vc
·archive.is·
Inside the Collapse of Venture for America
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.
#trends#saas#metrics v humanities#software#subscriptions#file management#ethics#corporate#capitalism#vc#startups
·web.archive.org·
Spreadsheet Assassins | Matthew King
Shop Class as Soulcraft
Shop Class as Soulcraft

Summary: Skilled manual labor entails a systematic encounter with the material world that can enrich one's intellectual and spiritual life. The degradation of work in both blue-collar and white-collar professions is driven not just by technological progress, but by the separation of thinking from doing according to the dictates of capital. To realize the full potential of human flourishing, we must reckon with the appeal of skilled manual work and question the assumptions that shape our educational priorities and notions of a good life.

an engineering culture has developed in recent years in which the object is to “hide the works,” rendering the artifacts we use unintelligible to direct inspection. Lift the hood on some cars now (especially German ones), and the engine appears a bit like the shimmering, featureless obelisk that so enthralled the cavemen in the opening scene of the movie 2001: A Space Odyssey. Essentially, there is another hood under the hood.
What ordinary people once made, they buy; and what they once fixed for themselves, they replace entirely or hire an expert to repair, whose expert fix often involves installing a pre-made replacement part.
So perhaps the time is ripe for reconsideration of an ideal that has fallen out of favor: manual competence, and the stance it entails toward the built, material world. Neither as workers nor as consumers are we much called upon to exercise such competence, most of us anyway, and merely to recommend its cultivation is to risk the scorn of those who take themselves to be the most hard-headed: the hard-headed economist will point out the opportunity costs of making what can be bought, and the hard-headed educator will say that it is irresponsible to educate the young for the trades, which are somehow identified as the jobs of the past.
It was an experience of agency and competence. The effects of my work were visible for all to see, so my competence was real for others as well; it had a social currency. The well-founded pride of the tradesman is far from the gratuitous “self-esteem” that educators would impart to students, as though by magic.
Skilled manual labor entails a systematic encounter with the material world, precisely the kind of encounter that gives rise to natural science. From its earliest practice, craft knowledge has entailed knowledge of the “ways” of one’s materials — that is, knowledge of their nature, acquired through disciplined perception and a systematic approach to problems.
Because craftsmanship refers to objective standards that do not issue from the self and its desires, it poses a challenge to the ethic of consumerism, as the sociologist Richard Sennett has recently argued. The craftsman is proud of what he has made, and cherishes it, while the consumer discards things that are perfectly serviceable in his restless pursuit of the new.
The central culprit in Braverman’s account is “scientific management,” which “enters the workplace not as the representative of science, but as the representative of management masquerading in the trappings of science.” The tenets of scientific management were given their first and frankest articulation by Frederick Winslow Taylor
Scattered craft knowledge is concentrated in the hands of the employer, then doled out again to workers in the form of minute instructions needed to perform some part of what is now a work process. This process replaces what was previously an integral activity, rooted in craft tradition and experience, animated by the worker’s own mental image of, and intention toward, the finished product. Thus, according to Taylor, “All possible brain work should be removed from the shop and centered in the planning or lay-out department.” It is a mistake to suppose that the primary purpose of this partition is to render the work process more efficient. It may or may not result in extracting more value from a given unit of labor time. The concern is rather with labor cost. Once the cognitive aspects of the job are located in a separate management class, or better yet in a process that, once designed, requires no ongoing judgment or deliberation, skilled workers can be replaced with unskilled workers at a lower rate of pay.
the “jobs of the future” rhetoric surrounding the eagerness to end shop class and get every warm body into college, thence into a cubicle, implicitly assumes that we are heading to a “post-industrial” economy in which everyone will deal only in abstractions. Yet trafficking in abstractions is not the same as thinking. White collar professions, too, are subject to routinization and degradation, proceeding by the same process as befell manual fabrication a hundred years ago: the cognitive elements of the job are appropriated from professionals, instantiated in a system or process, and then handed back to a new class of workers — clerks — who replace the professionals. If genuine knowledge work is not growing but actually shrinking, because it is coming to be concentrated in an ever-smaller elite, this has implications for the vocational advice that students ought to receive.
The trades are then a natural home for anyone who would live by his own powers, free not only of deadening abstraction, but also of the insidious hopes and rising insecurities that seem to be endemic in our current economic life. This is the stoic ideal.
#work-life#economy#jobs#business#history#capitalism
·thenewatlantis.com·
Shop Class as Soulcraft
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.
#metrics v humanities#business#consultancies#companies/McKinsey#public-life#ethics#careers#economy#history#americanism#capitalism
·archive.is·
How McKinsey Destroyed the Middle Class - The Atlantic
Why Success Often Sows the Seeds of Failure - WSJ
Why Success Often Sows the Seeds of Failure - WSJ
Once a company becomes an industry leader, its employees, from top to bottom, start thinking defensively. Suddenly, people feel they have more to lose from challenging the status quo than upending it. As a result, one-time revolutionaries turn into reactionaries. Proof of this about-face comes when senior executives troop off to Washington or Brussels to lobby against changes that would make life easier for the new up and comers.
Years of continuous improvement produce an ultra-efficient business system—one that’s highly optimized, and also highly inflexible. Successful businesses are usually good at doing one thing, and one thing only. Over-specialization kills adaptability—but this is a tough to trap to avoid, since the defenders of the status quo will always argue that eking out another increment of efficiency is a safer bet than striking out in a new direction.
Long-tenured executives develop a deep base of industry experience and find it hard to question cherished beliefs. In successful companies, managers usually have a fine-grained view of “how the industry works,” and tend to discount data that would challenge their assumptions. Over time, mental models become hard-wired—a fact that makes industry stalwarts vulnerable to new rules. This risk is magnified when senior executives dominate internal conversations about future strategy and direction.
With success comes bulk—more employees, more cash and more market power. Trouble is, a resource advantage tends to make executives intellectually lazy—they start believing that success comes from outspending one’s rivals rather than from outthinking them. In practice, superior resources seldom defeat a superior strategy. So when resources start substituting for creativity, it’s time to short the shares.
One quick suggestion: Treat every belief you have about your business as nothing more than a hypothesis, forever open to disconfirmation. Being paranoid is good, becoming skeptical about your own beliefs is better.
#tech#trends#startups#faang#companies/google#capitalism#americanism
·archive.is·
Why Success Often Sows the Seeds of Failure - WSJ
The Signal and the Corrective
The Signal and the Corrective

A technical breakdown of 'narratives' and how they operate: narratives simplify issues by focusing on a main "signal" while ignoring other relevant "noise", and this affects discussions between those with opposing preferred signals. It goes into many examples across basically any kind of ideological or cultural divide.

AI summary:

  • The article explores how different people can derive opposing narratives from the same set of facts, with each viewing their interpretation as the "signal" and opposing views as "noise"
  • Key concepts:
    • Signal: The core belief or narrative someone holds as fundamentally true
    • Corrective: The moderating adjustments made to account for exceptions to the core belief
    • Figure-ground inversion: How the same reality can be interpreted in opposite ways
  • Examples of opposing narratives include:
    • Government as public service vs. government as pork distribution
    • Medical care as healing vs. medical care as harmful intervention
    • Capitalism as wealth creation vs. capitalism as exploitation
    • Nature vs. nurture in human behavior
    • Science as gradual progress vs. science as paradigm shifts
  • Communication dynamics:
    • People are more likely to fall back on pure signals (without correctives) when:
      • Discussions become abstract
      • Communication bandwidth is limited
      • Under stress or emotional pressure
      • Speaking to unfamiliar audiences
      • In hostile environments
  • Persuasion insights:
    • It's easier to add correctives to someone's existing signal than to completely change their core beliefs
    • People must feel their fundamental views are respected before accepting criticism
    • Acknowledging partial validity of opposing views is crucial for productive dialogue
  • Problems in modern discourse:
    • Online debates often lack real-world consequences
    • When there's no need for cooperation, people prefer conquest over consensus
    • Lack of real relationships reduces incentives for civility and understanding
  • The author notes that while most people hold moderate views with both signals and correctives, fundamental differences can be masked when discussing specific policies but become apparent in discussions of general principles
  • The piece maintains a thoughtful, analytical tone while acknowledging the complexity and challenges of human communication and belief systems
  • The author expresses personal examples and vulnerability in describing how they themselves react differently to criticism based on whether it comes from those who share their fundamental values
narratives contradicting each other means that they simplify and generalize in different ways and assign goodness and badness to things in opposite directions. While that might look like contradiction it isn’t, because generalizations and value judgments aren’t strictly facts about the world. As a consequence, the more abstracted and value-laden narratives get the more they can contradict each other without any of them being “wrong”.
“The free market is extremely powerful and will work best as a rule, but there are a few outliers where it won’t, and some people will be hurt so we should have a social safety net to contain the bad side effects.” and “Capitalism is morally corrupt and rewards selfishness and greed. An economy run for the people by the people is a moral imperative, but planned economies don’t seem to work very well in practice so we need the market to fuel prosperity even if it is distasteful.” . . . have very different fundamental attitudes but may well come down quite close to each other in terms of supported policies. If you model them as having one “main signal” (basic attitude) paired with a corrective to account for how the basic attitude fails to match reality perfectly, then this kind of difference is understated when the conversation is about specific issues (because then signals plus correctives are compared and the correctives bring “opposite” people closer together) but overstated when the conversation is about general principles — because then it’s only about the signal.
I’ve said that when discussions get abstract and general people tend to go back to their main signals and ignore correctives, which makes participants seem further apart than they really are. The same thing happens when the communication bandwidth is low for some reason. When dealing with complex matters human communication tends not to be super efficient in the first place and if something makes subtlety extra hard — like a 140 character limit, only a few minutes to type during a bathroom break at work, little to no context or a noisy discourse environment — you’re going to fall back to simpler, more basic messages. Internal factors matter too. When you’re stressed, don’t have time to think, don’t know the person you’re talking to and don’t really care about them, when emotions are heated, when you feel attacked, when an audience is watching and you can’t look weak, or when you smell blood in the water, then you’re going to go simple, you’re going to go basic, you’re going to push in a direction rather than trying to hit a target. And whoever you’re talking to is going to do the same. You both fall back in different directions, exactly when you shouldn’t.
It makes sense to think of complex disagreements as not about single facts but about narratives made up of generalizations, abstractions and interpretations of many facts, most of which aren’t currently on the table. And the status of our favorite narratives matters to us, because they say what’s happening, who the heroes are and who the villains are, what’s matters and what doesn’t, who owes and who is owed. Most of us, when not in our very best moods, will make sure our most cherished narratives are safe before we let any others thrive.
Most people will accept that their main signals have correctives, but they will not accept that their main signals have no validity or legitimacy. It’s a lot easier to install a corrective in someone than it is to dislodge their main signal (and that might later lead to a more fundamental change of heart) — but to do that you must refrain from threatening the signal because that makes people defensive. And it’s not so hard. Listen and acknowledge that their view has greater than zero validity.
In an ideal world, any argumentation would start with laying out its own background assumptions, including stating if what it says should be taken as a corrective on top of its opposite or a complete rejection of it.
#narratives#mental models#communication#storytelling#misinfo#persuasion#difficult-convos#themes#bias#capitalism#psychology#politics#rhetoric
·everythingstudies.com·
The Signal and the Corrective
Divine Discontent, Disruption’s Antidote
Divine Discontent, Disruption’s Antidote
in their efforts to provide better products than their competitors and earn higher prices and margins, suppliers often “overshoot” their market: They give customers more than they need or ultimately are willing to pay for. And more importantly, it means that disruptive technologies that may underperform today, relative to what users in the market demand, may be fully performance-competitive in that same market tomorrow. This was the basis for insisting that the iPhone must have a low-price model: surely Apple would soon run out of new technology to justify the prices it charged for high-end iPhones, and consumers would start buying much cheaper Android phones instead! In fact, as I discussed in after January’s earnings results, the company has gone in the other direction: more devices per customer, higher prices per device, and an increased focus on ongoing revenue from those same customers.
Apple seems to have mostly saturated the high end, slowly adding switchers even as existing iPhone users hold on to their phones longer; what is not happening, though, is what disruption predicts: Apple isn’t losing customers to low-cost competitors for having “overshot” and overpriced its phones. It seems my thesis was right: a superior experience can never be too good — or perhaps I didn’t go far enough.
Jeff Bezos has been writing an annual letter to shareholders since 1997, and he attaches that original letter to one he pens every year. It included this section entitled Obsess Over Customers: From the beginning, our focus has been on offering our customers compelling value. We realized that the Web was, and still is, the World Wide Wait. Therefore, we set out to offer customers something they simply could not get any other way, and began serving them with books. We brought them much more selection than was possible in a physical store (our store would now occupy 6 football fields), and presented it in a useful, easy-to-search, and easy-to-browse format in a store open 365 days a year, 24 hours a day. We maintained a dogged focus on improving the shopping experience, and in 1997 substantially enhanced our store. We now offer customers gift certificates, 1-Click shopping, and vastly more reviews, content, browsing options, and recommendation features. We dramatically lowered prices, further increasing customer value. Word of mouth remains the most powerful customer acquisition tool we have, and we are grateful for the trust our customers have placed in us. Repeat purchases and word of mouth have combined to make Amazon.com the market leader in online bookselling.
This year, after highlighting just how much customers love Amazon (answer: a lot), Bezos wrote: One thing I love about customers is that they are divinely discontent. Their expectations are never static — they go up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of improvement happening at a faster rate than ever before. It may be because customers have such easy access to more information than ever before — in only a few seconds and with a couple taps on their phones, customers can read reviews, compare prices from multiple retailers, see whether something’s in stock, find out how fast it will ship or be available for pick-up, and more. These examples are from retail, but I sense that the same customer empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries as well. You cannot rest on your laurels in this world. Customers won’t have it.
when it comes to Internet-based services, this customer focus does not come at the expense of a focus on infrastructure or distribution or suppliers: while those were the means to customers in the analog world, in the online world controlling the customer relationship gives a company power over its suppliers, the capital to build out infrastructure, and control over distribution. Bezos is not so much choosing to prioritize customers insomuch as he has unlocked the key to controlling value chains in an era of aggregation.
consumer expectations are not static: they are, as Bezos’ memorably states, “divinely discontent”. What is amazing today is table stakes tomorrow, and, perhaps surprisingly, that makes for a tremendous business opportunity: if your company is predicated on delivering the best possible experience for consumers, then your company will never achieve its goal.
In the case of Amazon, that this unattainable and ever-changing objective is embedded in the company’s culture is, in conjunction with the company’s demonstrated ability to spin up new businesses on the profits of established ones, a sort of perpetual motion machine
Owning the customer relationship by means of delivering a superior experience is how these companies became dominant, and, when they fall, it will be because consumers deserted them, either because the companies lost control of the user experience (a danger for Facebook and Google), or because a paradigm shift made new experiences matter more (a danger for Google and Apple).
#companies/amazon#product strategy#business/strategy#business/models#capitalism#companies/apple#faang
·stratechery.com·
Divine Discontent, Disruption’s Antidote
Quality software deserves your hard‑earned cash
Quality software deserves your hard‑earned cash
Quality software from independent makers is like quality food from the farmer’s market. A jar of handmade organic jam is not the same as mass-produced corn syrup-laden jam from the supermarket. Industrial fruit jam is filled with cheap ingredients and shelf stabilizers. Industrial software is filled with privacy-invasive trackers and proprietary formats. Google, Apple, and Microsoft make industrial software. Like industrial jam, industrial software has its benefits — it’s cheap, fairly reliable, widely available, and often gets the job done.
Big tech companies have the ability to make their software cheap by subsidizing costs in a variety of ways:
Google sells highly profitable advertising and makes its apps free, but you are subjected to ads and privacy-invasive tracking. Apple sells highly profitable devices and makes its apps free, but locks you into a proprietary ecosystem. Microsoft sells highly profitable enterprise contracts using a bundling strategy, and makes its apps cheap, also locking you into a proprietary ecosystem.
I’m not saying these companies are evil. But their subsidies create the illusion that all software should be cheap or free.
Independent makers of quality software go out of their way to make apps that are better for you. They take a principled approach to making tools that don’t compromise your privacy, and don’t lock you in. Independent software makers are people you can talk to. Like quality jam from the farmer’s market, you might become friends with the person who made it — they’ll listen to your suggestions and your complaints.
Big tech companies earn hundreds of billions of dollars and employ hundreds of thousands of people. When they make a new app, they can market it to their billions of customers easily. They have unbeatable leverage over the cost of developing and maintaining their apps.
#software#platforms#indie#dev#capitalism#faang#apps
·stephango.com·
Quality software deserves your hard‑earned cash
An Audacious Plan to Halt the Internet’s Enshittification and Throw It Into Reverse
An Audacious Plan to Halt the Internet’s Enshittification and Throw It Into Reverse
But more than anything, they were able to merge with major competitors and buy out small ones. Google made one good product, search, a quarter of a century ago. That opened conduit to the capital markets that gave Google an effectively limitless budget to buy competitors.So it didn’t matter that everything Google made in-house failed — videos, social media, wifi balloons, smart cities, they couldn’t even keep an RSS Reader alive!Because they were able to buy other peoples’ companies — mobile, ad tech, videos, maps, documents, satellites, server management. Google isn’t Willy Wonka’s magic idea factory, they’re Rich Uncle Pennybags, spending other peoples’ money to buy the products they themselves are too ossified and lumbering to create.
They were able to sell goods below cost, which let the deepest-pocketed companies bankrupt their competitors, and prevent new companies from entering the market. Think of Amazon, which tried to buy diapers.com, got rejected, and then lit $100m on fire selling diapers below cost, until diapers.com went bankrupt.
When Apple reversed Office and built iWork, Microsoft just had to suck it up. In the ensuing decades, Apple — and Microsoft, Facebook, Google and other tech giants — have secured changes to law, regulation and their interpretations that make doing unto them as they did unto others radioactivelyillegal.
Tech companies can twiddle the knobs whenever they want, without explanation or transparency, and we can’t get a law passed to make them stop compulsively touching their knobs, because in the world of five giants websites each filled with screenshots of the other four, they can easily agree that these rules are bad, and they can mobilize their monopoly casino winnings to make sure they never pass.
Step one: consolidated industries eliminate competition through predatory pricing and acquisitions. Step two: tech companies play a high-speed shell-game on the back end, and use their consolidation to bigfoot any attempt to constrain their twiddling (like privacy, labor, or fair trading laws). Now we come to step thre: where tech companies embrace tech laws, laws that make it illegal to twiddle back at them, the IP laws that create felony contempt of business-model, criminalizing the adversarial interoperability, that once acted as garbage collection for enshittified, bloated, top-heavy companies, letting nimble, innovative players drain off their users, eat their lunch and dance on their graves.Put these three factors together — consolidation, unrestricted twiddling for them, a total ban on twiddling for us — and enshittification becomes inevitable.
We don’t want to wait that long for a new good internet, and we don’t have to. Because tech is different: it is universal. It is interoperable, and that means we have options we’ve never had before.Interoperability options: options that devolve control over technology from giant companies to small companies, co-ops, nonprofits, and communities of users themselves.Interop is how we seize the means of computation.
First things first: we need to limit twiddling.Pass comprehensive federal privacy laws with private right of action, meaning that you can sue if your privacy is violated, even if the local public prosecutor doesn’t think you deserve justice.End worker misclassification through the so-called gig economy, meaning that every worker is entitled to minimum wages, a safe workplace, and fair scheduling.Apply normal consumer protection standards to ecommerce platforms and search engines, banning deceptive advertising, fake reviews, and misleading search results that put fake businesses and products ahead of the best matches.
Then we need to open the walled gardens. Laws like the EU’s Digital Markets Act will force tech platforms to stand up APIs that allow new platforms to connect to them. This interop will make switching costs low. So you can leave Facebook or Twitter and go to Mastodon, Diaspora — or Bluesky or some new platform — and still exchange messages with the people you left behind, and participate in the communities that matter to you, and connect with the customers you rely on.
To make mandatory APIs work, we need to make robust interoperability preferable to behind-the-scenes fuckery, we need to align tech giants’ incentives so they encourage competition, rather than sabotaging it.
in addition to the mandatory interop that’s already coming down the pike, we need to restore the right to mod, tinker, reverse and hack these services.
If we have the right to mod existing service to restore busted API functionality, then any company that’s tempted to nerf its API has to consider the possibility that you are going to come along and scrape its site or reverse its apps to make the API work again.That means that the choice for tech giants isn’t “Keep the API and lose my discontented users or nerf the API and screw my competitors.” It’s: “Keep the API and lose my discontented users or, nerf the API and get embroiled in unquantifiable guerilla warfare against engineers who have the attackers’ advantage, meaning I have to be perfect, and they only have to find and exploit a single error I make.”
Governments should require that every tech company that sells them a product or service has to promise not to interfere with interop.That’s just prudent public administration. Lincoln insisted that every rifle-supplier for the Union army used interoperable tooling and ammo. Of course he did! “Sorry boys, war’s cancelled, our sole supplier decided not to make any more bullets.”
Every digital system procured by every level of government should come with a binding covenant not to impede interop — from the cars in government motor-pools to Google Classroom in public schools to iPhones in public agencies.
Your shareholders’ priorities are your problem. Public agencies are charged with doing the people’s business.
It’s frankly surreal that the way we keep Facebook’s partners from abusing your info is by asking Facebook to decide what is and isn’t acceptable.Remember: Cambridge Analytica was a Facebook partner. So whether you’re using an API or you’re fielding an interoperable app that relies on scraping and reversing, you will be bound by those same laws, passed by democratically accountable lawmakers in public proceedings, not by shareholder accountable corporate executives in closed-door meetings.
They’re just able to buy their way to dominance, merging with competitors, until they have the money and the unity of purpose to capture our laws, to give them the freedom to abuse us without limit, and to criminalize anything we do to defend ourselves.To stop them we need to block new merger, and unwind existing ones, limit their ability to twiddle the back end to keep their users and business customers in a constant state of confusion, and restore our ability to twiddle back, to give ourselves an internet operated by and for the people who use it: the new, good internet that is the worthy successor to the old, good internet.
Remember when tech workers dreamed of working for a big company for a few years, before striking out on their own to start their own company that would knock that tech giant over?Then that dream shrank to: work for a giant for a few years, quit, do a fake startup, get acqui-hired by your old employer, as a complicated way of getting a bonus and a promotion.Then the dream shrank further: work for a tech giant for your whole life, get free kombucha and massages on Wednesdays.And now, the dream is over. All that’s left is: work for a tech giant until they fire your ass, like those 12,000 Googlers who got fired six months after a stock buyback that would have paid their salaries for the next 27 years.
“Some day, there will be a crisis, and when crisis comes, ideas that are lying around can move from the fringe to the center in an instant.”
Niche InternetNiche Internet#enshittification#capitalism#faang#internet#platforms
·doctorow.medium.com·
An Audacious Plan to Halt the Internet’s Enshittification and Throw It Into Reverse
Monopoly by the Numbers — Open Markets Institute
Monopoly by the Numbers — Open Markets Institute
Antitrust laws have not been effectively enforced or applied to specific market realities.
A generation ago, small, independent operations defined the entire industry. Today, the businesses of beef, pork, and poultry slaughter are all dominated by four giants at the national level. But that greatly understates the problem, as in many regions, a single corporation holds a complete monopoly. Two firms, Dean Foods and the Dairy Farmers of America control as much as 80-90 percent of the milk supply chain in some states and wield substantial influence across the entire industry. As our Food & Power website details, the story is much the same in food-processing, egg production, grain production, and produce farming.
Monopolists have captured control over many lines of manufacturing as well. Corning, an American glass manufacturer, sells 60 percent of all the glass used in LCD screens, and Owens Illinois holds a near monopoly over market for glass bottles in the US. Rexam, a British company, holds a dominant position over the international supply of bottle caps and pharmaceutical bottles.
Hospital corporations across America have also been buying up physician practices in recent years. Hospital ownership of physician practices more than doubled between 2004 and 2011, from 24 to 49 percent. In drug stores, meanwhile, the pending takeover of Rite Aid by Walgreen’s would reduce the market to two giants, along with CVS.
Pharmaceutical companies have been merging at a record pace in recent years, and drug makers often use their concentrated market power to raise the prices of generic drugs, such as Digoxin, Daraprim, Naloxone, and standard vaccines.
Whirlpool’s takeover of Maytag in 2006 gave it control of 50 to 80 percent of U.S. sales of washing machines, dryers, and dishwashers and a very strong position in refrigerators. Maytag also controls the Jenn-Air, Amana, Magic Chef, Admiral, and KitchenAid brands and holds a dominant position over supply of Sears Kenmore products.
The FTC successfully blocked a proposed merger of Staples and Office Depot, but the market is still highly concentrated after Office Depot’s 2013 acquisition of Office Max. Collectively, the two firms control 69 percent of the entire office supplies market.
China’s vitamin cartel controls 100 percent of the market for U.S. Vitamin C, which is also known as ascorbic acid and which is used in almost all preserved foods.
#capitalism#americanism#stats#monopolies#public-life#economy
·openmarketsinstitute.org·
Monopoly by the Numbers — Open Markets Institute
Microincentives and Enshittification – Pluralistic
Microincentives and Enshittification – Pluralistic
For Google Search to increase its profits, it must shift value from web publishers, advertisers and/or users to itself. The only way for Google Search to grow is to make itself worse.
Google’s product managers are each charged with finding ways to increase the profitability of their little corner of the googleverse. That increased profitability can only come from enshittification. Every product manager on Google Search spends their workdays figuring out how to remove a Jenga block. What’s worse, these princelings compete with one another. Their individual progression through the upper echelons of Google’s aristocracy depends as much on others failing as it does on their success. The org chart only has so many VP, SVP and EVP boxes on it, and each layer is much smaller than the previous one. If you’re a VP, every one of your colleagues who makes it to SVP takes a spot that you can no longer get. Those spots are wildly lucrative. Each tier of the hierarchy is worth an order of magnitude more than the tier beneath it. The stakes are so high that they are barely comprehensible. That means that every one of these Jenga-block-pulling execs is playing blind: they don’t — and can’t — coordinate on the ways they’re planning to lower quality in order to improve profits. The exec who decided to save money by reducing the stringency of phone number checking for business accounts didn’t announce this in a company-wide memo. When you’re eating your seed-corn, it’s imperative that you do so behind closed doors, and tell no one what you’ve done. Like any sleight-of-hand artist, you want the audience to see the outcome of the trick (the cost savings), not how it’s done (exposing every searcher in the world to fraud risk to save a buck).
Google/Apple’s mobile duopoly is more cozy than competitive. Google pays Apple $15–20 billion, every single year, to be the default search in Safari and iOS. If Google and Apple were competing over mobile, you’d expect that one of them would drop the sky-high 30 percent rake they charge on in-app payments, but that would mess up their mutual good thing. Instead, these “competitors” charge exactly the same price for a service with minimal operating costs.
your bank, your insurer, your beer company, the companies that make your eyeglasses and your athletic shoes — they’ve all run out of lands to conquer, but instead of weeping, they’re taking it out on you, with worse products that cost more.
#capitalism#trends#enshittification#companies/google#faang#companies/apple
·pluralistic.net·
Microincentives and Enshittification – Pluralistic
Elon Musk’s Shadow Rule
Elon Musk’s Shadow Rule
There is little precedent for a civilian’s becoming the arbiter of a war between nations in such a granular way, or for the degree of dependency that the U.S. now has on Musk in a variety of fields, from the future of energy and transportation to the exploration of space. SpaceX is currently the sole means by which NASA transports crew from U.S. soil into space, a situation that will persist for at least another year. The government’s plan to move the auto industry toward electric cars requires increasing access to charging stations along America’s highways. But this rests on the actions of another Musk enterprise, Tesla. The automaker has seeded so much of the country with its proprietary charging stations that the Biden Administration relaxed an early push for a universal charging standard disliked by Musk. His stations are eligible for billions of dollars in subsidies, so long as Tesla makes them compatible with the other charging standard.
In the past twenty years, against a backdrop of crumbling infrastructure and declining trust in institutions, Musk has sought out business opportunities in crucial areas where, after decades of privatization, the state has receded. The government is now reliant on him, but struggles to respond to his risk-taking, brinkmanship, and caprice
Current and former officials from NASA, the Department of Defense, the Department of Transportation, the Federal Aviation Administration, and the Occupational Safety and Health Administration told me that Musk’s influence had become inescapable in their work, and several of them said that they now treat him like a sort of unelected official
Sam Altman, the C.E.O. of OpenAI, with whom Musk has both worked and sparred, told me, “Elon desperately wants the world to be saved. But only if he can be the one to save it.
later. “He had grown up in the male-dominated culture of South Africa,” Justine wrote. “The will to compete and dominate that made him so successful in business did not magically shut off when he came home.”
There are competitors in the field, including Jeff Bezos’s Blue Origin and Richard Branson’s Virgin Galactic, but none yet rival SpaceX. The new space race has the potential to shape the global balance of power. Satellites enable the navigation of drones and missiles and generate imagery used for intelligence, and they are mostly under the control of private companies.
A number of officials suggested to me that, despite the tensions related to the company, it has made government bureaucracies nimbler. “When SpaceX and NASA work together, we work closer to optimal speed,” Kenneth Bowersox, NASA’s associate administrator for space operations, told me. Still, some figures in the aerospace world, even ones who think that Musk’s rockets are basically safe, fear that concentrating so much power in private companies, with so few restraints, invites tragedy.
Tesla for a time included in its vehicles the ability to replace the humming noises that electric cars must emit—since their engines make little sound—with goat bleats, farting, or a sound of the owner’s choice. “We’re, like, ‘No, that’s not compliant with the regulations, don’t be stupid,’ ” Cliff told me. Tesla argued with regulators for more than a year, according to an N.H.T.S.A. safety report
Musk’s personal wealth dwarfs the entire budget of OSHA, which is tasked with monitoring the conditions in his workplaces. “You add on the fact that he considers himself to be a master of the universe and these rules just don’t apply to people like him,” Jordan Barab, a former Deputy Assistant Secretary of Labor at OSHA, told me. “There’s a lot of underreporting in industry in general. And Elon Musk kind of seems to raise that to an art form.”
Some people who know Musk well still struggle to make sense of his political shift. “There was nothing political about him ever,” a close associate told me. “I’ve been around him for a long time, and had lots of deep conversations with the man, at all hours of the day—never heard a fucking word about this.”
the cuts that Musk had instituted quickly took a toll on the company. Employees had been informed of their termination via brusque, impersonal e-mails—Musk is now being sued for hundreds of millions of dollars by employees who say that they are owed additional severance pay—and the remaining staffers were abruptly ordered to return to work in person. Twitter’s business model was also in question, since Musk had alienated advertisers and invited a flood of fake accounts by reinventing the platform’s verification process
Musk’s trolling has increasingly taken on the vernacular of hard-right social media, in which grooming, pedophilia, and human trafficking are associated with liberalism
It is difficult to say whether Musk’s interest in A.I. is driven by scientific wonder and altruism or by a desire to dominate a new and potentially powerful industry.
#tech#faang#govt#defense sector#space#future#americanism#capitalism#business#vc#expose#people/elon musk#profiles#public-life
·newyorker.com·
Elon Musk’s Shadow Rule
Panic Among the Streamers
Panic Among the Streamers
Netflix could buy 10 top quality screenplays per year with the cash they’ll spend on that one job.  They must have big plans for AI.There are also a half dozen AI job openings at Disney. And the tech-based streamers (Apple, Amazon) already have made big investments in AI. Sony launched an AI business unit in April 2020—in order to “enhance human imagination and creativity, particularly in the realm of entertainment.”
When Spotify launched on the stock exchange in 2018, it was losing around $30 million per month. Now it’s much larger, and is losing money at the pace of more than $100 million per month.
But the real problem at Spotify isn’t just convincing people to pay more. It runs much deeper. Spotify finds itself in the awkward position of asking people to pay more for a lousy interface that degrades the entire user experience.
Boredom is built into the platform, because they lose money if you get too excited about music—you’re like the person at the all-you-can-eat buffet who goes back for a third helping. They make the most money from indifferent, lukewarm fans, and they created their interface with them in mind. In other words, Spotify’s highest aspiration is to be the Applebee’s of music.
They need to prepare for a possible royalty war against record labels and musicians—yes, that could actually happen—and they do that by creating a zombie world of brain dead listeners who don’t even know what artist they’re hearing. I know that sounds extreme, but spend some time on the platform and draw your own conclusions.
#spotify#streaming#faang#tech#trends#business#enshittification#capitalism
·honest-broker.com·
Panic Among the Streamers
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.
#history#americanism#capitalism#health#healthcare#jobs#legal#metrics v humanities#govt#public-life
·hbr.org·
Why Do Employers Provide Health Care in the First Place?
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).
#platforms#internet#metrics v humanities#capitalism#community#Reddit#business/strategy#business/models#guides
·techdirt.com·
Seven Rules For Internet CEOs To Avoid Enshittification
In Praise of Idleness, by Bertrand Russell | Harper's Magazine
In Praise of Idleness, by Bertrand Russell | Harper's Magazine
Originally written in 1932! From the Harper's Magazine archives.
I believed all that I was told and acquired a conscience which has kept me working hard down to the present moment. But although my conscience has controlled my actions, my opinions have undergone a revolution. I think that there is far too much work done in the world, that immense harm is caused by the belief that work is virtuous, and that what needs to be preached in modern industrial countries is quite different from what always has been preached.
what a man earns he usually spends, and in spending he gives employment. As long as a man spends his income he puts just as much bread into people’s mouths in spending as he takes out of other people’s mouths in earning. The real villain, from this point of view, is the man who saves. If he merely puts his savings in a stocking, like the proverbial French peasant, it is obvious that they do not give employment. If he invests his savings the matter is less obvious, and different cases arise.
In view of the fact that the bulk of the expenditure of most civilized governments consists in payments for past wars and preparation for future wars, the man who lends his money to a government is in the same position as the bad men in Shakespeare who hire murderers. The net result of the man’s economical habits is to increase the armed forces of the State to which he lends his savings. Obviously it would be better if he spent the money, even if he spent it on drink or gambling.
In these days, however, no one will deny that most enterprises fail. That means that a large amount of human labor, which might have been devoted to producing something which could be enjoyed, was expended on producing machines which, when produced, lay idle and did no good to anyone.
If he spent his money, say, in giving parties for his friends, they (we may hope) would get pleasure, and so would all those on whom he spent money, such as the butcher, the baker, and the bootlegger. But if he spends it (let us say) upon laying down rails for surface cars in some place where surface cars turn out to be not wanted, he has diverted a mass of labor into channels where it gives pleasure to no one
#history#work/productivity#capitalism#americanism#opinion#lifestyle#metrics v humanities
·harpers.org·
In Praise of Idleness, by Bertrand Russell | Harper's Magazine
What If Instead of Trying to Manage Your Time, You Set It Free?
What If Instead of Trying to Manage Your Time, You Set It Free?
Within maybe 10 minutes of meeting, he showed me this terrifying — to him it was probably wonderful — spreadsheet of how he accounted for every hour of the day for the last couple of years. That’s probably not even as unusual as we might think, but there was a score at the end of the thing based on whether he had spent enough hours doing the different categories of things he wanted to be doing. I don’t know if he secretly feels punished by his own system or if he feels empowered by it. There’s not really any way for me to know. My skepticism is more about that rhetoric and way of thinking of time as being offered as a solution to someone who doesn’t have control of their time — that if they controlled their time in this gridlike way, they could succeed in life. I think that person has the potential to use that way of thinking very self-punitively.
Since you mentioned kids: A couple of weeks ago, I was hanging out with a friend who has a 3-year-old, and it took us half an hour to walk two blocks. There is a way in which, as you were saying, you could view that experience as potentially boring, but you could also see that the reason we were walking slowly is that kids are looking at stuff in a weird way! It’s a way I appreciate trying to imagine. For time spent like that, the whole question of “What are you getting out of this?” would be absurd.
A life of total efficiency and convenience? Well, why? What is left if you were to make everything superconvenient? It is helpful to make certain things more efficient, but that can tip over into becoming its own end, which moves the focus away from that larger question of why.
I want to be in contact with things, people, contexts that make me feel alive. I have a specific definition of alive, which is I want to feel like I am being changed. Someone who’s completely habitual, is set in their ways of thinking and doing, that type of person is liable to see days in a calendar as being pieces of material that you use to achieve your goals. There’s all kinds of degrees between that and someone who’s so completely open to every moment that they’re dysfunctional or something, but I want to live closer to that second pole.
#philosophy#capitalism#americanism#work/productivity#lifestyle#ethics#metrics v humanities
·nytimes.com·
What If Instead of Trying to Manage Your Time, You Set It Free?
The Umami Theory of Value
The Umami Theory of Value
a global pandemic struck, markets crashed, and the possibility of a democratic socialist presidency in America started to fade. Much of our work with clients has been about how to address new audiences in a time of massive fragmentation and the collapse of consensus reality.
All the while, people have been eager to launch new products more focused on impressions than materiality, and “spending on experiences” has become the standard of premium consumption.
it’s time to reassess the consumer experience that came along with the neoliberal fantasy of “unlimited” movement of people, goods and ideas around the globe.
Umami, as both a quality and effect of an experience, popped up primarily in settings that were on the verge of disintegration, and hinged on physical pilgrimages to evanescent meccas. We also believe that the experience economy is dying, its key commodity (umami) has changed status, and nobody knows what’s coming next.
Umami was the quality of the media mix or the moodboard that granted it cohesion-despite-heterogeneity. Umami was also the proximity of people on Emily’s museum panel, all women who are mostly not old, mostly not straight, and mostly doing something interesting in the arts, but we didn’t know exactly what. It was the conversation-dance experience and the poet’s play and the alt-electronica-diva’s first foray into another discipline. It was the X-factor that made a certain MA-1 worth 100x as much as its identical twin.
“Advanced consumers” became obsessed with umami and then ran around trying to collect ever-more-intensifying experiences of it. Things were getting more and more delicious, more and more expensive, and all the while, more and more immaterial. Umami is what you got when you didn’t get anything.
What was actually happening was the enrichment of financial assets over the creation of any ‘real wealth’ along with corresponding illusions of progress. As very little of this newly minted money has been invested into building new productive capacity, infrastructure, or actually new things, money has just been sloshing around in a frothy cesspool – from WeWork to Juicero to ill-advised real estate Ponzi to DTC insanity, creating a global everything-bubble.
Value, in an economic sense, is theoretically created by new things based on new ideas. But when the material basis for these new things is missing or actively deteriorating and profits must be made, what is there to be done? Retreat to the immaterial and work with what already exists: meaning. Meaning is always readily available to be repeated, remixed, and/or cannibalized in service of creating the sensation of the new.
The essential mechanics are simple: it’s stating there’s a there-there when there isn’t one. And directing attention to a new “there” before anyone notices they were staring at a void. It’s the logic of gentrification, not only of the city, but also the self, culture and civilization itself. What’s made us so gullible, and this whole process possible, was an inexhaustible appetite for umami.
eyond its synergistic effect, umami has a few other sensory effects that are relevant to our theory. For one, it creates the sense of thickness and body in food. (“Umami adds body…If you add it to a soup, it makes the soup seem like it’s thicker – it gives it sensory heft. It turns a soup from salt water into a food.”) For another, it’s released when foods break down into parts. (“When organic matter breaks down, the glutamate molecule breaks apart. This can happen on a stove when you cook meat, over time when you age a parmesan cheese, by fermentation as in soy sauce or under the sun as a tomato ripens. When glutamate becomes L-glutamate, that’s when things get “delicious.””) These three qualities: SYNERGY, IMPRESSION OF THICKNESS, and PARTS > WHOLE, are common to cultural umami, as well.
Umami hunting was a way for the West to consume an exotic, ethnic, global “taste” that was also invisible and up to their decoding / articulation.
when something is correctly salted, Chang argues, it tastes both over and undersalted at once. As a strange loop, this saltiness makes you stand back and regard your food; you start thinking about “the system it represents and your response to it”. He argues that this meta-regard keeps you in the moment and connected to the deliciousness of your food. We counter that it intensifies a moment in a flow, temporarily thickening your experience without keeping you anywhere for long.
strong flavors, namely umami, mark a surge of intensity in the flow of experience. It also becomes clear that paradox itself is at the heart of contemporary consumption. For example: “This shouldn’t be good but it is” “This doesn’t seem like what it’s supposed to be” “This is both too much and not enough” “I shouldn’t be here but i am” “This could be anywhere but it’s here”
Parts > Whole is just another way of saying a combination of things has emergent properties. In itself this doesn’t mean much, as almost any combination of things has emergent properties, especially in the domains of taste and culture. Coffee + vinegar is worse than its constitutive parts. A suit + sneakers is a greater kind of corny than either worn separately. Most emergence is trivial. The Umami Theory of Value centers on losing your sense of what’s trivial and what’s valuable.
If you tried to unpack your intuition, the absence of the there-there would quickly become evident. Yet in practice this didn’t matter, because few people were able to reach this kind of deep self-interrogation. The cycle was simply too fast. There was never time for these concoctions to congeal into actual new things (e.g. create the general category of K-Pop patrons for Central European arts institutions). We can’t be sure if they ever meant anything beyond seeming yummy at the time.
This was not meant to be a nihilistic, Gen-X faceplant (“nothing means anything any more”), since we think that perspective can paper over the nuances of consumer experience, business realities, and cultural crisis. Instead, we wanted to link macroeconomic and macrotrend observations to everyday experience, especially in the context of burgeoning collapse.
#culture#trends#marketing#finance#economy#capitalism#future#internet#academic#generations/genz#definitions
·nemesis.global·
The Umami Theory of Value
Limbic platform capitalism
Limbic platform capitalism
The purposive design, production and marketing of legal but health-demoting products that stimulate habitual consumption and pleasure for maximum profit has been called ‘limbic capitalism’. In this article, drawing on alcohol and tobacco as key examples, we extend this framework into the digital realm. We argue that ‘limbic platform capitalism’ is a serious threat to the health and wellbeing of individuals, communities and populations. Accessed routinely through everyday digital devices, social media platforms aggressively intensify limbic capitalism because they also work through embodied limbic processes. These platforms are designed to generate, analyse and apply vast amounts of personalised data in an effort to tune flows of online content to capture users’ time and attention, and influence their affects, moods, emotions and desires in order to increase profits.
#marketing#social media#capitalism#trends#wellness#wellbeing#internet#advertising#academic#generations/genz#definitions
·tandfonline.com·
Limbic platform capitalism
Interview with Kevin Kelly,editor, author, and futurist
Interview with Kevin Kelly,editor, author, and futurist
To write about something hard to explain, write a detailed letter to a friend about why it is so hard to explain, and then remove the initial “Dear Friend” part and you’ll have a great first draft.
To be interesting just tell your story with uncommon honesty.
Most articles and stories are improved significantly if you delete the first page of the manuscript draft. Immediately start with the action.
Each technology can not stand alone. It takes a saw to make a hammer and it takes a hammer to make a saw. And it takes both tools to make a computer, and in today’s factory it takes a computer to make saws and hammers. This co-dependency creates an ecosystem of highly interdependent technologies that support each other
On the other hand, I see this technium as an extension of the same self-organizing system responsible for the evolution of life on this planet. The technium is evolution accelerated. A lot of the same dynamics that propel evolution are also at work in the technium
Our technologies are ultimately not contrary to life, but are in fact an extension of life, enabling it to develop yet more options and possibilities at a faster rate. Increasing options and possibilities is also known as progress, so in the end, what the technium brings us humans is progress.
Libraries, journals, communication networks, and the accumulation of other technologies help create the next idea, beyond the efforts of a single individual
We also see near-identical parallel inventions of tricky contraptions like slingshots and blowguns. However, because it was so ancient, we don’t have a lot of data for this behavior. What we would really like is to have a N=100 study of hundreds of other technological civilizations in our galaxy. From that analysis we’d be able to measure, outline, and predict the development of technologies. That is a key reason to seek extraterrestrial life.
When information is processed in a computer, it is being ceaselessly replicated and re-copied while it computes. Information wants to be copied. Therefore, when certain people get upset about the ubiquitous copying happening in the technium, their misguided impulse is to stop the copies. They want to stamp out rampant copying in the name of "copy protection,” whether it be music, science journals, or art for AI training. But the emergent behavior of the technium is to copy promiscuously. To ban, outlaw, or impede the superconductivity of copies is to work against the grain of the system.
the worry of some environmentalists is that technology can only contribute more to the problem and none to the solution. They believe that tech is incapable of being green because it is the source of relentless consumerism at the expense of diminishing nature, and that our technological civilization requires endless growth to keep the system going. I disagree.
Over time evolution arranges the same number of atoms in more complex patterns to yield more complex organisms, for instance producing an agile lemur the same size and weight as a jelly fish. We seek the same shift in the technium. Standard economic growth aims to get consumers to drink more wine. Type 2 growth aims to get them to not drink more wine, but better wine.
[[An optimistic view of capitalism]]
to measure (and thus increase) productivity we count up the number of refrigerators manufactured and sold each year. More is generally better. But this counting tends to overlook the fact that refrigerators have gotten better over time. In addition to making cold, they now dispense ice cubes, or self-defrost, and use less energy. And they may cost less in real dollars. This betterment is truly real value, but is not accounted for in the “more” column
it is imperative that we figure out how to shift more of our type 1 growth to type 2 growth, because we won’t be able to keep expanding the usual “more.”  We will have to perfect a system that can keep improving and getting better with fewer customers each year, smaller markets and audiences, and fewer workers. That is a huge shift from the past few centuries where every year there has been more of everything.
“degrowthers” are correct in that there are limits to bulk growth — and running out of humans may be one of them. But they don’t seem to understand that evolutionary growth, which includes the expansion of intangibles such as freedom, wisdom, and complexity, doesn’t have similar limits. We can always figure out a way to improve things, even without using more stuff — especially without using more stuff!
the technium is not inherently contrary to nature; it is inherently derived from evolution and thus inherently capable of being compatible with nature. We can choose to create versions of the technium that are aligned with the natural world.
Social media can transmit false information at great range at great speed. But compared to what? Social media's influence on elections from transmitting false information was far less than the influence of the existing medias of cable news and talk radio, where false information was rampant. Did anyone seriously suggest we should regulate what cable news hosts or call in radio listeners could say? Bullying middle schoolers on social media? Compared to what? Does it even register when compared to the bullying done in school hallways? Radicalization on YouTube? Compared to talk radio? To googling?
Kids are inherently obsessive about new things, and can become deeply infatuated with stuff that they outgrow and abandon a few years later. So the fact they may be infatuated with social media right now should not in itself be alarming. Yes, we should indeed understand how it affects children and how to enhance its benefits, but it is dangerous to construct national policies for a technology based on the behavior of children using it.
Since it is the same technology, inspecting how it is used in other parts of the world would help us isolate what is being caused by the technology and what is being caused by the peculiar culture of the US.
You don’t notice what difference you make because of the platform's humongous billions-scale. In aggregate your choices make a difference which direction it — or any technology — goes. People prefer to watch things on demand, so little by little, we have steered the technology to let us binge watch. Streaming happened without much regulation or even enthusiasm of the media companies. Street usage is the fastest and most direct way to steer tech.
Vibrators instead of the cacophony of ringing bells on cell phones is one example of a marketplace technological solution
The long-term effects of AI will affect our society to a greater degree than electricity and fire, but its full effects will take centuries to play out. That means that we’ll be arguing, discussing, and wrangling with the changes brought about by AI for the next 10 decades. Because AI operates so close to our own inner self and identity, we are headed into a century-long identity crisis.
What we tend to call AI, will not be considered AI years from now
What we are discovering is that many of the cognitive tasks we have been doing as humans are dumber than they seem. Playing chess was more mechanical than we thought. Playing the game Go is more mechanical than we thought. Painting a picture and being creative was more mechanical than we thought. And even writing a paragraph with words turns out to be more mechanical than we thought
out of the perhaps dozen of cognitive modes operating in our minds, we have managed to synthesize two of them: perception and pattern matching. Everything we’ve seen so far in AI is because we can produce those two modes. We have not made any real progress in synthesizing symbolic logic and deductive reasoning and other modes of thinking
we are slowly realizing we still have NO IDEA how our own intelligences really work, or even what intelligence is. A major byproduct of AI is that it will tell us more about our minds than centuries of psychology and neuroscience have
There is no monolithic AI. Instead there will be thousands of species of AIs, each engineered to optimize different ways of thinking, doing different jobs
Now from the get-go we assume there will be significant costs and harms of anything new, which was not the norm in my parent's generation
The astronomical volume of money and greed flowing through this frontier overwhelmed and disguised whatever value it may have had
The sweet elegance of blockchain enables decentralization, which is a perpetually powerful force. This tech just has to be matched up to the tasks — currently not visible — where it is worth paying the huge cost that decentralization entails. That is a big ask, but taking the long-view, this moment may not be a failure
My generic career advice for young people is that if at all possible, you should aim to work on something that no one has a word for. Spend your energies where we don’t have a name for what you are doing, where it takes a while to explain to your mother what it is you do. When you are ahead of language, that means you are in a spot where it is more likely you are working on things that only you can do. It also means you won’t have much competition.
Your 20s are the perfect time to do a few things that are unusual, weird, bold, risky, unexplainable, crazy, unprofitable, and looks nothing like “success.” The less this time looks like success, the better it will be as a foundation
#advice#tech#trends#future#profiles#interviews#technical#capitalism
·noahpinion.substack.com·
Interview with Kevin Kelly,editor, author, and futurist
Dirt: Coping with things
Dirt: Coping with things
Coping with things is the prevailing mood in my corner of the universe. As I write this, America has just completed an election in which many people voted primarily for the idea of voting. The prevailing candidate? Less an individual than an avatar of civility and liberalism.
We are a country founded on an idea and not an identity.
Americans have a way of obscuring reality through grand symbolism and none of the accompanying semiotic rigor. As if the facade of democracy can be upheld by not looking too closely at increasingly undemocratic outcomes — our high tolerance for multiculturalism tenuously predicated on everyone struggling equally. The difference between idea and identity is both our saving grace and our downfall. Democracy: watch the gap.
The idea of the American individual, part of the national optimism that fueled the Space Race, is far less prominent than the citizen-consumer. Attaining a degree of celebrity, still a coveted means to financial stability, thrusts one into the category of “celebrity,” where image overtakes personhood.
Lifestyle, like work, is something we can only see in aggregate. Technological gains don’t relieve the pressure for ownership; they merely reinforce it.
#capitalism#politics#metrics v humanities#culture#themes#economy#govt/policy#americanism
·dirt.substack.com·
Dirt: Coping with things
Dirt: The indomitable human spirit
Dirt: The indomitable human spirit
what stretches ahead is a banal ending that refuses to end: the slow violence of capitalism and climate change, a future of could-haves and should-haves void of capital-M meaning.
A core reason behind this genre’s popular success lies in the fact that it lacks the cloying, naïve quality so often associated with positivity. While this partially stems from the aesthetic and language employed—which, thanks to its poetic tenor, internet avant-garde style, and general high-low approach, reads as more online-experimental for those in-the-know and less cheesy iFunny reposts for Boomers—these would matter little if it weren’t for the honest realism that underpins this trend’s optimism
Unlike the deluded optimism espoused by politicians, technologists, and millionaires—which views progress as linear or believes that technology will save us from ourselves or thinks that watching celebrities sing will solve crisis—this trend, like the pessimists it responds to, recognizes that there seems to be no turning back from the precipice.
The genre positions the exercise and resilience of the “Indomitable Human Spirit” at the scale of a single life at the center of its philosophical optimism—not our ability to save the future, but rather our willingness to try and endure with grace.
#trends#tiktok#viral#capitalism#culture#internet#themes#plots#generations/genz
·dirt.substack.com·
Dirt: The indomitable human spirit
Can a universal basic income help address homelessness? | Hacker News Discussion
Can a universal basic income help address homelessness? | Hacker News Discussion
The number one thing UBI doesn't handle well is rent inflation. You hand out $1000 dollars per person monthly, expect rents to go up by about $1000 monthly as landlords realise there is all this extra disposable income in peoples' hand right now.However, this is just an exaggerated effect of monopolies sucking out all aggregate disposable income out of economy that is already happening. Monopolies by definition don't have price down pressures, so they always price expand to capture anything people might have extra. Since landlording is the biggest aggregate monopoly in the world, landlords capture any disposable workers' income. No matter if they get a raise from their boss, the landlord always takes it away.
One of the biggest strengths of UBI is that it eliminates the beurocracy and waste associated with determining who "deserves" assistance. The dominant model in the US is expecting homeless people with drug problems to solve both their addiction and homelessness at the same time by themselves before they are deemed worthy of being helped, which needless to say is barely assistance at all. Having a gaurenteed income stream would make it easier to gain a foothold.
#discourse#ethics#politics#housing#capitalism#economy#govt/policy
·news.ycombinator.com·
Can a universal basic income help address homelessness? | Hacker News Discussion
callings
callings
by Molly Mielke
What is our purpose on this planet? Do we have a responsibility to one another? Who even are we?Answering those questions alone is asking a lot of a person. The easier option is to choose from the platter of social-strata-acceptable possibilities we’re presented with for education, occupation, geographical location, personality, etc, and call it a day.
if you spend all your time constantly sketching (probably quickly outdated) pictures of your thinking on the bigger questions we’ve all been tasked with answering, you neglect the actual doing that would reveal answers with richer hues
incredible opportunities are unlocked by constructing a digitally consumable caricature of yourself that makes you legible to literally anyone in the world. It’s probably the most far-ranging bat signal possible to find people who think and feel similarly to you.
There’s simply so much friction in the process of turning belief into action online — meaning that most of the time all you actually get from internet attention is internalized impossible-to-attain expectations for yourself and an extremely confused ego.
If you care about personally choosing the shape, scale, and direction of your impact on the world, you might find that playing off-the-shelf games turns out to be a remarkably risky bet. There’s just no money/time-back guarantee that any of the off-the-shelf options will continue to fit you as your desires evolve. And maybe that’s ok — but continually reinventing yourself is a tiring and time-consuming task that too often leads you away from the real “calling”-finding-and-defining work.
In my book, big things are only worth committing to if the answer to the question “would you do this thing even if no one was watching?” is an immediate and unequivocal yes
#philosophy#lifestyle#career#multidisciplinary#capitalism
·mindmud.substack.com·
callings