Tag Archives: Consolidation

Economists still calling computer networks “virtual” while interconnectivity is exposing economic externalities

While artists and designers have discovered there’s no sharp distinction between “real” and “virtual” (aka the New Aesthetic), economists are still talking about “virtual”, even as the networks of computers they’re referring to are exposing the economic externalities the greed of the “first economy” is built on.

Bill Davidow wrote for the Atlantic 10 April 2012, How Computers Are Creating a Second Economy Without Workers,

“Twenty years ago, if you went into an airport you would walk up to a counter and present paper tickets to a human being. That person would register you on a computer, notify the flight you’d arrived, and check your luggage in. All this was done by humans.”
Well, except for that part about “a computer”. And the flight computers in the airplane. And the FAA computers. And….

This is also true:

“Today, you walk into an airport and look for a machine. You put in a frequent-flier card or credit card, and it takes just three or four seconds to get back a boarding pass, receipt, and luggage tag. What interests me is what happens in those three or four seconds. The moment the card goes in, you are starting a huge conversation conducted entirely among machines. Once your name is recognized, computers are checking your flight status with the airlines, your past travel history, your name with the TSA (and possibly also with the National Security Agency). They are checking your seat choice, your frequent-flier status, and your access to lounges.”
While Bruce Sterling can (rightly, I think) say that’s not AI, nonetheless it all happens without much human intervention. And pixelated images of airplanes don’t start to indicate what’s going on in there.

The punchline:

“Here’s the challenge: In the past, every million-dollar increase in economic output generated on the order of ten jobs. In the future, in the productive Second Economy, it may generate only one or two.”
That’s not new. I’m a farmer, and 90% of farm jobs in this country Continue reading

Sterling: Samizdat Quality Quality Oligarch Press

bruce-sterling.jpg Bruce Sterling,, who has studied and practiced paper and online media his en tire career, and who also traveled to the USSR and then to Russia, says Prof. Clemons hasn’t imagined the worst:
(((Well, no — the “worst” would be that the publishers keep grinding out product, only it’s evil propaganda entirely subsidized by ultrawealthy moguls who have made themselves the only public source of news and culture. In other words, the commercial press collapses and it’s replaced by a classically fascist press. (Likely run on bailout money.) THAT’s the worst — with the possible exception of a furious proletarian upheaval that forces everyone to read grimy, poorly-printed copies of PRAVDA.)))
It would be easy to see a path from where we are now (half of U.S. media is owned by only five companies that actively suppress stories they don’t want to hear and promote stupid ones they do want) to Bruce’s scenario.

Exogenous Technological Change

Here’s a good backgrounder video on where the Internet came from and where it may be going: Humanity Lobotomy. See especially the part by Larry Lessig about how printing presses in the early days cost about $10,000 in 2007 dollars, and lots of people had one and published books and pamphlets.

What did the telephone companies have to do with inventing the Internet?
The browser?
The World Wide Web?
What have they had to do with the Internet from the beginning of time?

–Bob Kahn

What did they invent? Continue reading