Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Wednesday, August 30, 2023

Mass disability - dysfunctional web sites, apps for everything

I last wrote about "mass disability" and the Left Behind in a 2021 post. The concept has sometimes seemed on the edge of going mainstream but it's never quite made it. Maybe we're getting closer; a recent Michael Tsai post (No App, No entry) reminded me of my Mastodon thread from a few weeks ago:

What is the crazy that drives Trumpism and the many global equivalents?
It is that the minimal IQ to function well in the modern world is now about 120 and that eliminates most people.

This is both the most important fact of our time and the least palatable. It is the thing that cannot be said and it will be ruin of us if we don't say it ...

I've been saying this for years. Today I was reminded of it while doing some travel booking.
During the bookings I encountered:
1. A web site that didn't work with my older version of Safari (I knew what was wrong and switched to Chrome. 
2. A Delta web site bug (I recognized it as a bug and knew what to do). 
3. Place that was out of rental cards but I new Expedia would have some contracts that would let me find one. 
4. Travel web sites that all needed new credentials...
... These are all routine parts of modern life including maintaining flaky computer systems (let me tell you ...) and phones ...

It was not like this even 35 y ago. Travel agents handled travel complexity. There were no smartphones. Computers were very limited. There was no internet for most. By necessity everyday life was much simpler. Most people could cope with it.

Now most cannot cope.

This is the most important feature of our time. And nobody can talk about it. 

I remember some good discussions on this thread but I can't find any of them now. Perhaps by design Mastodon has a limited memory. (My home instance has no search, so I had to download my archive and search it to find the date of the post. Then I could slowly navigate to it.)

I expanded on the theme a bit later:

Hotel laundry year 2000

1. Insert quarters to buy detergent, operate washer and dryer.

IQ requirement: 65 (my son could do this after a demonstration)

Hotel laundry year 2023

1. Scan QR code to download app whose profit comes from unspent funds.

2. Install app, create account with Apple ID

3. Figure out cryptic UX so can deposit funds (several odd unintuitive steps)

3. Deposit funds, paying just enough to cover this sesh. Pat the 25 cent low transaction penalty... 

4. Spot the scam behind app and avoid it (eg find at minimum)

5. Diagnose why after paying money and confirming machine it’s still not working

6. Authorize specific transaction

7. Start laundry.

(My son could not do this)

8. When complete delete app. 

IQ requirement: minimum 110, higher to spot the scam. 

This is why America is burning.

People are scared and angry and feeling left behind -- and they can't come out and say they are unable to manage their tech. Because that's the ultimate shame.

See also:

Saturday, November 27, 2021

Civilization, complexity and the limits of human cognition - another attempt at explaining the 21st century

The 70s were pretty weird, but I was too young to notice. (Not coincidentally, the Toffler/Farrell Future Shock book was written then.) By comparison the 80s and 90s more or less made sense. In 1992 Fukuyama wrote "The End of History" and that seemed about right for the times.

Things got weird again in the late 90s. I was in a .com startup and I remember valuations getting crazy about 1997, 3 years before the .com crash. We were still picking ourselves up from the crash when 9/11 hit. (A year later, on a purely personal note, my youngest brother vanished.) In the early 00s came Enron and other frauds almost forgotten now. Then in 2008 the real estate collapse and the Great Recession. We were barely recovering from the Great Recession when Trumpism hit. Followed by COVID (which was expected and not at all weird) and the Great Stupidity of the American Unvaccinated (which we did not expect and is perhaps weirdest of all).

Each time the world went off kilter I have tried to figure out a root cause:

At last count my list of contributing factors to the crash of '09 included ...

  1. Complexity collapse: we don't understand our emergent creation, we optimized for performance without adaptive reserve
  2. Mass disability and income skew: The modern world has disenfranchised much of humanity
  3. The Marketarian religion: The GOP in particular (now the Party of Limbaugh), but also many Democrats and libertarians, ascribed magical and benign powers to a system for finding local minima (aka The Market). The Market, like Nature, isn't bad -- but neither is it wise or kind.
  4. The occult inflation of shrinking quality: What happens when buyers can't figure out what's worth buying. Aka, the toaster crisis - yes, really.
  5. performance-based executive compensation and novel, unregulated, financial instruments: a lethal combination. See also - You get what you pay for. The tragedy of the incentive plan.
  6. Disintermediating Wall Street: Wall Street became a fragile breakpoint 
  7. The future of the publicly traded company: A part of our problem is that the publicly traded company needs to evolve
  8. The role of the deadbeats: too much debt - but we know that
  9. Firewalls and separation of powers: a culture of corruption, approved by the American electorate, facilitated dissolving regulatory firewalls
  10. Marked!: Rapid change and the Bush culture made fraud easy and appealing

I put Marked! pretty low on the list, but maybe I should bump it up a bit. The Hall of Shame (Clusterstock) lists a lot more fraud than has made the papers [1]...

By 2010 I was focusing on RCIIIT: The rise of China and India and the effects of IT.

... The Rise of China and India (RCI) has been like strapping a jet engine with a buggy throttle onto a dune buggy. We can go real fast, but we can also get airborne – without wings. Think about the disruption of German unification – and multiply than ten thousand times.

RCI would probably have caused a Great Recession even without any technological transformations.

Except we have had technological transformation – and it’s far from over. I don’t think we can understand what IT has done to our world – we’re too embedded in the change and too much of it is invisible. When the cost of transportation fell dramatically we could see the railroad tracks. When the cost of information generation and communication fell by a thousandfold it was invisible ...

In 2016 and again in 2018 I tried to explain Trumpism by contributing factors (I was too optimistic about Murdoch's health though):

  • 65% the collapse of the white non-college “working class” — as best measured by fentanyl deaths and non-college household income over the past 40 years. Driven by globalization and IT both separately and synergistically including remonopolization (megacorp). This is going to get worse.
  • 15% the way peculiarities of the American constitution empower rural states and rural regions that are most impacted by the collapse of the white working class due to demographics and out-migration of the educated. This is why the crisis is worse here than in Canada. This will continue.
  • 15% the long fall of patriarchy. This will continue for a time, but eventually it hits the ground. Another 20 years for the US?
  • 5% Rupert Murdoch. Seriously. In the US Fox and the WSJ, but also his media in Australia and the UK. When historians make their list of villains of the 21st century he’ll be on there. He’s broken and dying now, but he’s still scary enough that his name is rarely mentioned by anyone of consequence.
  • 1% Facebook, social media, Putin and the like. This will get better.

That 1% for Facebook et all is pretty small — but the election of 2016 was on the knife’s edge. That 1% was historically important.

A few months ago I listed 3 causes for the post-COVID supply and labor shock economics of 2021:

1. Wealth became extremely concentrated. 

2. Returns on labor for 40% of Americans fell below modern standard for economic life.

3. Good investments became hard to find.

It's almost 2022 now, so we're into almost 25 years of the world not making sense any more. So now I'm digging even deeper for a root cause.

Today I'm going with Gordon's Lawthe complexity of a complex adaptive system will increase until it reaches a limiting factor. Our civilization is a complex adaptive system and its complexity increased until it hit a limiting factor -- the complexity capacity of the average human. These days between 40 and 50% of American's can't handle civilization 2021 (sometimes I call this mass disability (see also). Witness among other things, The Great Stupidity of the FoxCovians.

It's a variant of the "Future Shock" Toffler wrote about 52 years ago. I don't have a fix; I don't think the world will get less complex. Our technologies are moving too fast. Maybe we'll just get used to not understanding the world and civilization will stumble on regardless. After all, for most of human history the world was incomprehensible -- and we did manage. Sort of. Mostly without civilization though ...

Sunday, January 10, 2021

Biden's essential task is to help the Left Behind

This is the last in a short series of post that began on Nov 11, 2020, shortly after Biden won the presidency for the first time. Back then it looked like McConnell would hold the Senate

In the decades since that post Trump became more insane than usual, a deranged mob of Trump cultists invaded the Capitol building, the Dems took the Senate, and Biden won the presidency for the third or fiftieth time depending how one counts. Truly, I need to finish this series while we still have electricity.

In the first post I wrote about how I think about the Trump voter (and America). I divided the Trump voter up into the religious fundamentalist (sometimes Trump cultist), the despicables (ex: Hawley, Cruz, the WSJ reader), and the Left Behind. The NYT profiled a Left Behind on 11/7/2020 (emphases mine):

... Nick [a] 26-year-old hair stylist ... spent the past few months campaigning for President Trump, taking special satisfaction in offending Biden supporters...

... He did not go to college and prides himself on his independent thinking; he puts himself in the category of street smart, not book smart...

... He had never bothered to register to vote until 2016, when he first heard Mr. Trump debate on television, and saw a political figure who reminded him of himself....

... When Fox News began reporting polls showing Mr. Biden in the lead, Ms. Rocco tried tuning into One America News, the right-wing cable network, which predicted a convincing victory for the president. The Roccos got news from a variety of sources — TikTok, QAnon, the pro-Trump comedian Terrence K. Williams, the YouTube mystic Clif High. “I’m a conspiracy theorist, I guess, if you want to call it that,” Ms. Rocco said...

...  he reminded himself what kept him out there all these months: People had disrespected him. The Facebook group manager who had kicked him off. The neighbor who took his yard sign. Teachers who responded to his daughter’s enthusiasm about Mr. Trump with awkward silence.

“People who don’t like Trump, I honestly think they are very soft people,” he said. “That is why the world is becoming so sensitive today. Back in the day, you could throw a snowball at someone at school and everything was fine. Nowadays, a letter gets sent home: Your child is being mean.”

... His older brother, who he describes as the brainy one, took the other path, winning a scholarship to college. (He is the Biden voter.) But Mr. Rocco’s aspirations were staunchly blue-collar; he chose trade school and went to work at 17...

It's unlikely Nick would have done well at a four year college or succeeded as a knowledge worker. He could marry well, or find an inheritance, or show unusual entrepreneurial talent -- but more likely he's going to be the disrespected Left Behind. In today's America if you aren't a knowledge worker you're probably not going to make over $30/hr, and you're not going to make it into the middle class as an individual [2]. Even in countries with effectively free college this non-knowledge worker cohort is about half the population [2].

America can't survive as a democracy with half its citizens Left Behind. We'll have a January 6 every year -- only the mobs will be larger and have better weapons. Of all the threats we face, this is our greatest near term challenge. Even CO2 driven climate change is a lesser threat.

Biden needs to work out a solution for the Left Behind problem. The good news is that for this problem survival and politics align. The Left Behind are the core of Trump's base and the modern GOP, it's tricky for the GOP to block policies to bring the Left Behind into the middle class. And, after Jan 6, 2021, there's intense awareness of the danger posed by the Left Behind (though that will be quickly forgotten). 

Most importantly the Left Behind are not only white, they are also Black [3], Hispanic, Asian and any slice you like (though more men than women). Helping the Left Behind crosses political boundaries, unlike reducing college debt.

What policies can be put in place so that most non-knowledge workers can earn over $30 an hour? I've written of a few over the years, here's a partial list:

  1. A $15/hour minimum wage. Put pressure at the base.
  2. Subsidize employment directly, or provide direct cash support (family allowance and the like), or do a mixture of both [4].
  3. Learn from Germany and from Quebec's manufacturing sector.
  4. Reduce corporate scale, favor smaller companies that employ more blue collar workers [5]
  5. Get creative about small business generation - including a national small business generator.
  6. Do public works and infrastructure that generate employment. I've been told the pharaohs built pyramids so laborers had work between flooding of the Nile. (The US military is one model for non-college public works employment.)
  7. Review all our tax, accounting, finance and labor policies and revise to favor non-college employment.
This is what Biden needs to focus on.

- fn -

[1] One trade worker and one service worker couple can squeak in it as long as they don't have child care expenses and as long as they stay together.

[2] See also my pre-catastrophe 2015 post on why I was a "fan" (heavy irony) of Trump or a recent post/pre catastrophe retrospective. I've been on this topic for a long time though my thoughts have evolved quite a bit over 17 years.

[3] Deep and pervasive structural racism means there's great potential for increasing four year college participation in Black America. I don't think there's anywhere near that potential for White America.

[4] I think subsidized work has significant political, cultural, economic, psychological, and social advantages over direct cash subsidies -- but I'm not adverse to experimenting. 

[5] "Blue collar" is a historic synonym for Left Behind.


Tuesday, November 17, 2020

Biden's lost agenda

In the Fall of 2020 the American people decided to dump Trump. Americans didn't agree on much else; voters rejected significant change. Overall the result did not surprise me, especially given the summer riots and the "defund the police" movement.

Biden's agenda is mostly history. Except for the most important part. I'm going to get to that in a future post (it's not student loan forgiveness!), but first I want to reference the future America rejected. I'll use George Packer's summary in the Oct issue of The Atlantic (emphases mine):

America’s Plastic Hour Is Upon Us

... The scale of Biden’s agenda is breathtaking. At its center is a huge jobs program. A Biden administration would invest $2 trillion in infrastructure and clean energy. He proposes creating 3 million jobs in early education, child care, and elderly care—sectors usually regarded as “soft” and neglected by presidential candidates—while raising their pay and status. “This economic crisis has hit women the hardest,” Sullivan said. “These care jobs are primarily jobs filled by women—and disproportionately women of color and immigrant women—but they don’t pay a fair wage, and the opportunities to advance aren’t there. This is a big, ambitious, bold proposal—not an afterthought, but at the core.” Another $700 billion would go to stimulating demand and innovation in domestic manufacturing for a range of essential industries such as medical supplies, microelectronics, and artificial intelligence. Some $30 billion would go to minority-owned businesses as part of a larger effort to reduce the racial wealth gap.

Biden is proposing industrial policy—massive, targeted investment to restructure production for national goals—something that no president has openly embraced since the 1940s. His agenda would also give workers more power, with paid family and medical leave, paid sick days, a public option for health care, and an easier path to organizing and joining unions. It would more than double the federal minimum wage, to $15 an hour ...

Ok, that's the agenda that was. Wave good-bye to it, but don't give up entirely. There's something in there that can be saved.

Thursday, November 12, 2020

What is middle class and what percentage of American voters can't get there?

What would make someone "middle class" in 2020?

I like to think of this in terms of what a "middle class" 30 yo adult should have or be able to do without inherited wealth [1]:

  • basic health, life, dental, and disability insurance.
  • enough savings to live without income for 3 months.
  • at least two weeks of vacation a year plus holiday
  • ability to take the family on a local or auto based holiday
  • cover the basics: food, utilities, broadband, mobile phone, automobile, two laptops, a game console, netflix, a bicycle
  • together with a partner
    • enough income to cover a 15 year mortgage on an average American non-urban home with good-enough public school services
    • enough income to raise up to two children to adulthood (but not pay for their college -- that's upper class)
    • a second car
That's not a comprehensive list, but I think it's not hard to fill in the rest. Things that are often beyond middle class include:
  • international travel
  • paying for children's college education
  • a short commute
  • weekly restaurant meals
  • multiple bicycles
  • substantial savings esp. retirement savings
  • routinely buying work lunch
  • multiple streaming services, cable TV
  • a subscription to the New York Times digital services (this is a problem)
How much compensation, including income and benefits, does it take to be middle class today?

In the absence of good data my impression is that a new teacher is at the very bottom of middle class (compensation increases over time). Salary.com says the range for all teachers is $50K-$74 plus. Add on benefits that are worth at least $10K and the entry to middle class America in 2020 is probably $60K for an individual. 

2014 Pew report article on "middle income" estimated that "a three-person household would have to earn between $42,000 and $126,000. I believe that number omits benefits so it supports my $60K compensation number as a good reference. 

For a 50 week year at 40 hours a week a $60K/year compensation works out to about $30/hour or twice peak minimum wage. Google tells me the hourly wage for a plumber or electrician is about $25/hour, enlisted American soldiers get $20/hour but with benefits and allowances for food, housing, etc they may be in the $25 range. In 2000 motor vehicle manufacturing workers made a similar $20 hour, with benefits that might get compensation up to $22/hour. In US government a GS-7 level is about as high as one can get without a college degree and it maxes out at about $50K/year -- just barely middle class given benefits.

All of these are below my "middle class" threshold though federal employment comes closest.

It's hard to make it into the American middle class range without a college degree or some degree of business ownership [2]. Since no country on earth has gotten much more than 50% of young adults through college this means a middle-class-or-better life, which still comes with quite a bit of economic stress and uncertainty, is only available to about half of Americans.

Half of US voters unable to attain the basics of the bottom of the middle-class is not a politically viable situation. More on that in a post that updates this one.

- fn -

[1] If you live in American for a while it eventually dawns on one that a lot of white folk inherit a substantial amount of money. I'm excluding that from this definition but it does explain some unusual consumption patterns.
[2] Bruce Springsteen, Bill Gates, Steve Jobs, Wayne Gretzky, yada yada ya. Don't make me come down and bop you.

Sunday, October 11, 2020

Electric vehicles will end another non-college job - the auto mechanic

 My Great-Aunt was born in the 19th century. She spent most of her life working in data processing. She, and thousands like her, did read, delete, update operations on paper cards that were passed between thousands of small rectangular desks in a large rectangular building in Montreal. None of her coworkers had a college degree -- I suspect many could not read very well. The work seems impossibly dull, but she enjoyed it and the pension it brought her.

I have one of those desks, I'm typing on it now. It fits nicely in a corner of my living room, and I'm slender enough to fit comfortably in it.

By the 1960s the first business computers wiped out her industry as definitively as the automobile eliminated millions of horses. There would never again be a large scale job that required no particular social, physical, or cognitive skills.

Since that time IT has generated vast numbers of knowledge worker jobs that pay relatively well while eliminating jobs that do not require cognitive skills.

Now electric vehicles are going to do the same thing. Compared to internal combustion engines they are much easier to maintain; their complexity is in batteries and software. Never-college auto mechanics are going to lose their jobs.

There's a lot we can do about this problem. It's not only the right thing to do, it's also essential to our survival. Even if Biden wins in 2020, if his administration doesn't act quickly there will be another Trump in 2024.

Sunday, September 27, 2020

State of the COVID-19 Pandemic - Fall 2020

I've written only a few COVID-19 posts, mostly about masks and activities. Looking back at them today they hold up pretty well. This feels like the right time for a summary.

Obviously the American response has been pretty lousy. Given America's fissiparous culture and lousy record on things like managing gun violence and providing universal good-enough healthcare we were never going to do a terrific job, but Trump took us down a few more levels. The GOP's anti-science and anti-government stance has contributed as well, not least by underfunding the CDC for decades. It does suck that the disease is infectious before symptoms develop.

We will probably get a decent vaccine. Even if Trump, Xi, and Putin screw-up their national evaluations there will be a few nations that do it right. We probably won't get a great early treatment antiviral in the next year or two but our hospital management will keep incrementally improving and we ought to get a decent monoclonal. We are, despite America's almost incomprehensible incompetence, starting to see better masks in use. Masks that protect the wearer as much as they reduce spread. (We could have lightweight PAPRs for use by vulnerable teachers, but that's like asking for a warp drive.) We should get inexpensive antigen tests for use in school and home, and we'll probably figure out how to use them.

Our understanding of the American pandemic is not great. Data is getting harder to find for many states. That won't change unless Trump loses -- and even then it will take months to rebuilt. A few states may have good data collection so we will have to rely on them to sample pandemic progress. Universities and non-profits are trying to close the gap. Getting local prevalence data in Google Maps will help. There's still a chance states will adopt Google/Apple contact tracing (paging Minnesota, damnit).

On the bright side our knowledge of the innate immune system and of viral infection sequelae (myocarditis [1]!) is growing ten times faster than normal. Even in the QAnon world we can still do some science.

On the public front the situation is mixed at best. It will be a miracle if we don't see a big rise in numbers as winter settles in and we move indoors. Pandemic social and economic distress is amplified by the longterm issues of never-college income, information technology disruption, demographic shifts, and the legacies of American slavery. Remote work has been pretty successful though -- getting people out of air conditioned offices is a big deal.

Less unhappily, unknown sequelae aside, the vast majority of people under 40 with good innate immune systems seem to tolerate SARS-CoV-2 pretty well (though some will die horribly after months of struggle and the myocarditis thing is a bit worrisome). It also seems that a modest amount of ventilation dramatically reduces infectivity -- and, despite lack of public guidance and Trump's CDC sabotage, I think ventilation is improving. There don't seem to be big outbreaks in gyms or ice arenas for example -- though there's also no useful data. COVID-19 will become endemic, but over decades, as we develop true herd immunity, it will become more like the other coronavirae that we live with.

Between our various failures, residual strengths, and the peculiarities of COVID-19 much of America is more-or-less implementing some version of slow motion infection of the under 30 and more-or-less leaving the 40+ to protect themselves. The elite 40+ segment of Americans are learning to buy and wear user-protective masks, the non-elite are kind of screwed. But that's America in the year 2020.

- fn -

[1] Lots of people are wondering how common myocarditis is with viral infections. We've always known of viral myocarditis, but it's not like we did cardiac MRIs on everyone with a cold. The decrease in MIs during COVID precautions is certainly interesting. This review isn't perfect, but it's a good start.

Saturday, May 04, 2019

Gordon's platform 2020

It is my privilege to announce that I will running for the Presidency of the United States of America.

I understand that, as a foreign born dual citizen of the United States and Canada I am technically not eligible for the Presidency. On the other hand, America elected Donald Trump. Compared to him I’m eminently qualified.

My Presidential Platform is achievable and focuses on our core challenges as a nation and wannabe world leader ...

  1. Free community college. This was, I think, part of HRC’s platform. Didn’t get much media coverage but just makes sense. Unlike free college, which is dumb. Quebec basically does this and it has worked very well for them. A lot of health care workers can be trained in 3 years of community college.
  2. Restore ACA, including the individual tax penalties for non-participation, with a public option that leverages experience from Canada and Veterans Health Administration. Incorporate broad support for physical activity (aka exercise) in health care system. Attack agricultural subsidies for unhealthy foods and subsidize healthy foods. Move the dial on obesity and lifestyle diseases.
  3. Restore Obama’s carbon control framework, not including a carbon tax. I love the idea of a carbon tax, but I’ve seen my fellow citizens. Some costs are better buried.
  4. Increase employment income of the non-college. Reduce taxation incentives that favor automation (it will happen anyway, but slower is better). Create plug-and-play packages for small businesses that employ non-college. Provide subsidies for training in skills accessible to non-college. Extend the framework used for disabled employment to subsidize and support non-college work including public sector employment. Subsidize minimum wage. Tax breaks to employers that promote employment. This will be a core pillar of my administration.
  5. Strong antitrust; promote competition among corporations and consumer choice. May include breaking up several MegaCorp.
  6. Transit, bikes, walkability, parks, attractive infrastructure. Make car ownership optional. Require new motor vehicles to incorporate technology that makes pedestrians and cyclists safer. Require autonomous vehicles to meet strict standards for safety of the non-armored.
  7. Taxes. Of course. VAT. Restore the "death tax”. Various forms of wealth tax. Tax soda and the like. Fund my platform, start to beat back dysfunctional wealth concentration.
  8. Attack political corruption, particularly post-political employment, at every level. Public funding for elections including mandated free media time.

There’s more, but you get the idea.

Vote for me. 

Whatever my name is.

Sunday, April 21, 2019

Healthcare reform 2020: Public option based on the VA healthcare model

Medicare for All won’t work in 2020. We have an insurmountable path dependency problem.

We can, however, implement the ACA public option. It should be based on the VA model for healthcare delivery, which is basically the American version of the UK’s NHS. It’s not luxurious, but it’s more than good enough healthcare.

Wednesday, April 18, 2018

Dyer on the 21st century crisis of mass unemployment

I believe this is true — though I’d be more confident if one of my favorite economists thought this was plausible (emphases mine):

If The Model Is Broken, Fix It | Gwynne Dyer

… The political model of Western-style democracy, which grew up alongside and then within a capitalist economic model, is now broken. Exhibit Number One is Donald Trump, but there’s lots of other evidence too.

One-third of French voters backed Marine Le Pen, a cleaned-up, user-friendly neo-fascist, in last year’s presidential election. In last September’s German election, one-eighth of the electorate voted for Alternative for Germany, a party whose more extreme wing is neo-Nazi – but it is now leads the opposition in the Bundestag, the German parliament.

Last month in Italy, the two biggest parties to emerge from the election were both led by populist rabble-rousers, one from the left and one from the right. Not to mention Brexit in Britain. And in every case the themes that dominated the populists’ rhetoric were racism, nationalism, hostility to immigrants – and jobs.

Trump rarely talked about anything else during the presidential election campaign: immigrants are stealing the jobs, free-trading American businessmen are exporting the jobs, the foreigners are eating America’s lunch….

Trump may not know a lot, but he knows One Big Thing. We are living in a new era of mass unemployment, and nobody has noticed. As Trump said the night after he won the New Hampshire primary in February 2016: “Don’t believe those phony numbers when you hear 4.9 and 5 percent unemployment. The number’s probably 28, 29, as high as 35. In fact, I even heard recently 42.”

It’s not really 42 percent, but it’s not 4.1 percent (the current official US rate) either. According to Nicholas Eberstadt’s ‘Men Without Work’, the real unemployment rate among American men of prime working age (24-55) – including those who don’t get counted because they have given up looking for work – is 17 percent.

Why didn’t we notice? Because the unemployed weren’t protesting in the streets like they did in the Great Depression of the 1930s, although the rate is getting up to Depression era levels. After the Second World War, all the Western democracies built welfare states, mainly so a new generation of radical populist leaders would not come to power the next time there is mass unemployment.

It has worked, in the sense that there is not blood in the streets this time around, but the jobless millions are very angry even if the welfare state means that they are not starving. They do vote, and unless something is done to ease their anger, next time they may vote for somebody who makes Trump look good by comparison.

But if the problem is unemployment, then the answer is not obvious, because the main cause of unemployment in Western countries is not immigration or ‘offshoring’ jobs, as Trump pretends. It is computers.

One-third of American manufacturing jobs have vanished in the past 20 years, and the vast majority of them (85 percent) were destroyed by automation. The algorithms and the robot arms have already killed the Rust Belt, and there is a plausible prediction that almost half of existing American jobs may be automated out of existence in the next 20 years.

What would our politics look like then? Not very democratic, unless we do something to ease the anger of the unemployed. This doesn’t just mean giving them more money – a massive expansion of the welfare state – but also finding way of taking the shame out of unemployment, because it is the humiliation of being seen as a loser that breeds the anger…

I’ve called this ‘mass disability’, because to me it’s a mismatch between the skills the majority of humans have and the skills needed to earn a middle class or better income.

I don’t have any other explanation for why the entire western world is simultaneously in crisis other than what I wrote about in 2010 - Globalization (China) and Information Technology.

See also:

Sunday, October 15, 2017

Understanding century 21 - IT, Globalization and urban-urban migration

In the 90s the world kind of made sense. Since then, not so much. I don’t know if teens truly are experiencing an anxiety epidemic, but any American growing up in the new millennium has reason to be anxious.

I think the root causes of our disruption are globalization (China and India) and information technology (AI, robots, advertising supported web, etc) leading to peak human/mass disability and the collapse of the GOP.

I’m now considering a third factor — namely urban-urban migration (though it may be a consequence of globalization and IT rather than a root cause). The population required to sustain a viable local economy keeps increasing; this is absolutely not what we expected when the net was young. Once a city of 10,000 was viable, then a city of 50,000, then a few hundred thousand. We seem too heading towards a million as baseline.

This is politically potent here because the structure of American government gives disproportionate power to low population density regions. The pain of these communities is politically consequential. This is usually described as a “rural” crisis, but these aren’t “rural” in the traditional sense. They are regions around large towns and small cities that are no longer economically viable.

I was a family medicine resident and a young physician in communities like these. Recent stories feel familiar — they remind me of my desolate drives along the Erie Canal and the IT driven end of the mill town. It’s a worldwide thing.

Humans have been migrating from rural areas to cities for centuries. It’s often been socially disruptive. It still is, particularly because of the way American government works. The dying regions have power, and as they lose their cognitive elite they are ever more desperate and easier to deceive.

See also

Tuesday, March 21, 2017

Broken world: applying for a minimum wage job via a corporate HR web site

My #1 son is a special needs adult. He’s excited to start at $10/hour job running food around a sports stadium. It’s work he can do — he’s got a great sense of direction and he is reasonably fit.

The job engagement process is run by an archaic corporate web site that looks like it was built for IE 3. The site claims to support Safari but warns against Chrome. It is not useable on a smartphone.

The HR process requires managing user credentials, navigating a complex 1990s style user interface, and working around errors made by the HR staff — who probably also struggle with the software. He would not have the proverbial snowball’s chance without my ability to assume his digital identity.

Sure, #1 is below the 5th percentile on standard cognition tests — but this would have been a challenge to the 15th percentile back in the 90s. In the modern era, where most non-college young people are primarily familiar with smartphones, this is a challenge to the 30th percentile.

Which means the people might want to do this job are being shut out by the HR software created to support the job. Which probably has something to do with this.

The world is broken.

#massdisability

Saturday, March 18, 2017

All our family healthcare visits are now billed as CPT E&M Code "Level Four"

Very few people will understand what that subject line means.

The short version is that the way we account for physician services was born broken in 1994 and it is now in a state of advanced collapse.

It can’t go on and it can’t stop.

Don Berwick, the best CMS administrator we’ve ever had (forced out by GOP) said this five years ago:

.. Dr. Donald Berwick, the immediate past administrator of the Centers for Medicare and Medicaid Services (CMS), which administers the Medicare program, said a small portion of the billing increase is likely caused by outright fraud, but in the majority of cases hospitals are legally boosting profits by targeting the vulnerabilities of Medicare’s payment system. “They are learning how to play the game,” Berwick said about the hospitals....

... Berwick, the former CMS head, said patients haven’t changed. What’s changed is the aggressiveness of how hospitals bill. “They are smart,” Berwick said. “If you create a payment system in which there is a premium for increasing the number of things you do or the recording of what you do, well, that’s what you’ll get.”...

See also

Saturday, December 17, 2016

Piketty's latest work on inequality is wrong about education.

The NYT has a readable summary of Thomas Piketty, Emmanuel Saez and Gabriel Zucman’s US income research. Much of it is familiar, but I was struck by this paragraph:

[since 1979] … Younger adults between 20 and 45 years old have seen their after-tax incomes flatline.

But over the same period, seniors in the bottom half have seen their after-tax incomes grow by over 70 percent. The bulk of that gain represents increased health care spending through Medicare.

Growth rates of a few percent a year do add up; health care is eating everything. Maybe it’s time to reread my old health care post.

Their findings are very important, but one of their recommendations falls flat (emphases mine) …

improving education and job training, equalizing distribution of human and financial capital, and increasing labor bargaining power, combined with a return to steeply progressive taxation

No, education and job training aren’t the answer. Roughly 40-50% of the US population has an IQ of less than 100. People with an IQ of under 100 have many skills, but they are not going to succeed in an academic program. Canada has the world’s highest “college” (includes 2 year vocational programs) graduation rate, and even they top out at around 56% of the population. I’m not sure why economists struggle with this basic arithmetic, my guess is they spend too much time with the cognitive elite.

What is the answer? We need to flip our thinking. We can’t change people to fit the work available in the natural post-industrial economy. We need to change the work to fit the humans. We need to incentivize work that is meaningful and rewarding across the cognitive spectrum. Germany did some of that by biasing their economy towards manufacturing. We can do some of that too (sorry Germany, that’s going to hurt you!), but we’re going to have to think more broadly. We’ll need to provide direct or indirect subsidies for work that’s productive even if it can’t compete with automation. We’ll have to apply work support lessons from the US military (long history of productive work across cognitive spectrum) and from traditional disability work support programs.

 

Saturday, December 10, 2016

It's time to take those gains

I’ve seen this movie before …

How the Twinkie Made the Superrich Even Richer

… The Teacher Retirement System of Texas has invested in the fund that bought Hostess. And that fund has reaped 27 percent net during the three years it owned Hostess, significantly more than the stock market returned in that period.

“You need to get people in whom you trust and who will keep up our fund,” said Fran Plemmons, a former president of the Texas Retired Teachers Association who was a teacher and principal for 25 years. “If they do that, you need to get out of the way.”…

Extreme financial engineering. Nonsensical corporate valuations. Money from nothing. Investors pleased with “people in whom you trust”. Huge S&P gains over 10 years without matching productivity gains. P/E at about 26. Dr Evil assumes the presidency.

It’s time James.

Saturday, November 26, 2016

Peak Human and Mass Disability are the same thing

For reference - DeLong’s Peak Human and my Mass Disability are synonyms. Both refer to a surplus of productive capacity relative to labor supply, particularly the supply of non-elite cognitive labor.

I like the term ‘mass disability’ because we have a long history of supported labor for people we have traditionally called ‘cognitively disabled’.

Ok, that’s not the whole story.

I also like the term because I have a personal agenda to support persons with traditional cognitive disabilities. Using the term ‘disability’ forces us to think about how individual features become abilities or disabilities depending on the environment — something Darwin understood. Addressing the needs of the majority of human beings can also help the most disadvantaged.

Wednesday, November 16, 2016

Crisis-T: What's special about rural?

I think 40% of Americans are disabled in the context of the modern work environment because of automation and globalization. That’s why we have “Crisis-T”.

Crisis-T is particularly associated with white non-college voters in the “rural” rust belt of America. I think I can talk to that. I did my residency in Williamsport PA (Appalachia North - and quite beautiful), my medical practice in Michigan’s Upper Peninsula, and we often traveled across the Northeast to visit family in Montreal.

Eight years ago I wrote about traveling across the northern tier …

Gordon's Notes: History and demographics - notes from a long commute

I've driven from the Great Lakes region to Montreal about twenty times over the past thirty years.

The route has changed.

Two years ago we stopped traveling along the old Erie Canal route. The northern US border, from the Lakes to Vermont, had become too depressing. There were too many signs of dying communities. History moved on eighty years ago, but the post-9/11 collapse of Canadian tourism and the the lousy US economy of the past decade have accelerated the long decline.

This year we're seeing the same changes along the Canadian route. Businesses are vanishing, gas stations are closing, communities are disappearing. In the towns we visited we saw almost no children. I suspect the causes are similar to the American changes, but the demographic decline seems even more marked. Some of these northern communities depended on the lumber trade; they would have had good years before the housing crash, very bad times now.

Fifteen years ago we thought that the net might allow these communities to prosper. I was a small town physician for five years in the 90s, and I liked where I lived.

Maybe that will still happen, but there's a lot of competition from places with better airports and milder climates.

It's a story as old as the ghost towns of the old west. These communities are small enough that a few energetic people will keep a few of them alive, but most will fade away.

Update 8/26/10: Three of the cities on the list of the top 10 dying American Cities were related to the old Erie canal and NE manufacturing route: Cleveland, Buffalo and Albany.

Four years ago I wrote about the sadness of losing mill towns. We just don’t need the paper any more …

Gordon's Notes: When paper dies, what will happen to all the mill towns?

Between Minnesota and Montreal, across Wisconsin and the UP and along the 17, there are hundreds of communities. Most are a few thousand people.

When we drive that route, we always wonder -- how did these people come to live there? Why do they stay?

No, it's not smart-ass urban elite kind of question. We know some of the answers. Emily grew up on a mill town north of nowhere…

We both practiced medicine in an even smaller but less remote mill town.

So we know how people can end up in those towns -- and we know why many stay. It's a bit surprising to many, but mill towns can be very pleasant places to live -- assuming the mill is modern and downwind (though you get used to the smell). There's work for a wide range of people there -- not just for the elite. There are usually forests, and they're not all tree farms. We liked our towns a lot.

Of course not all of the towns we pass through are mill towns. Some are agricultural centers, some are government towns, and a few are former industrial centers turning into college towns.

Many of those towns have their own problems, especially because the live-anywhere-work-on-the-net vision of 1995 didn't work out. Mill towns though, they have bigger problems.

Twenty-five years after it was proclaimed dead, paper is finally going away ...

… Newspapers and magazines are shrinking. … Lexmark has stopped making inkjet printers. China makes its own paper.

The end of paper, or at least it's semi-retirement, has a bright side. We burned a lot of carbon and energy moving that paper around (though the replacement is hardly energy-free). It's not all bright though. A lot of very fine towns are going to be facing some hard transitions ...

The globalization and automation that disabled 40% of working age Americans isn’t unique to rural areas, but those areas have been ailing for a long time. They’ve been impacted by automation ever since the railroad killed the Erie canal, and the harvester eliminated most farm workers. Once we thought the Internet would provide a lifeline to rural communities, but instead it made Dakka as close as Escanaba.

The root causes of crisis-T apply everywhere, rural areas are just a bit ahead of the curve.

 

Mass Disability - how did I come up with 40%?

How, a friend asked, did I come up with the 40% number for “mass disability” that I quoted in After Trump: reflections on mass disability in a sleepless night?

I came up with that number thinking about the relationship of college education, IQ curves, and middle class status. The thesis goes like this…

  1. Disability is contextual. In a space ship legs are a bit of a nuisance, but on earth they are quite helpful. The context for disability in the modern world is not climbing trees or lifting weights, it’s being able to earn an income that buys food, shelter, education, health care, recreation and a relatively secure old age. That is the definition of the modern “middle class” and above; a household income from $42,000 ($20/hr) to $126,000. It’s about half of Americans. By definition then half of Americans are not “abled”.
  2. I get a similar percentage if I look at the percentage of Americans who can complete a college degree or comparable advanced skills training. That’s a good proxy for reasonable emotional control and an IQ to at least 105 to 110. That’s about 40% of Americans — but Canada does better. I think the upper limit is probably 50% of people. If you accept that a college-capable brain is necessary for relative economic success in the modern world then 50% of Americans will be disabled.

So I could say that the real number is 50%, but college students mess up the income numbers. The 40% estimate for functionally disabled Americans adjusts for that.

As our non-sentient AI tech and automation gets smarter the “ability” threshold is going to rise. Somewhere the system has to break down. I think it broke on Nov 8, 2016. In a sense democracy worked — our cities aren’t literally on fire. Yet.

Friday, November 11, 2016

After Trump: reflections on mass disability in a sleepless night

I’m having trouble sleeping. There are a few boring reasons for that, but the election is not helping. So it’s time to write while sleep-impaired. I’ll try to keep this short, but I’m also going to break it into sections.

Context

My son has a substantial cognitive disability and little prospect of self-sustaining employment. His temperament is different from mine. I am novelty-seeking and instinctively skeptical of authority, he loves routine and structure. I am Vulcan, he is Klingon.

I am elite. He is not. Obama is my ideal President, he declared for Trump (though, interestingly, he chose to abstain in the end). I used to be uneasy around police, he loves K9 cops.

My son’s growth and development has shaped my life and thought for 20 years. He has informed my thinking about mass disability, something I’ve been writing about for 8 years. Because of him I have sympathy even for the Deplorables, angry and lost in a world that doesn’t want them any more.

The Big Picture

I don’t think any period in human history has seen as much cultural change as America 1950-2016. Civil Rights. Feminism. Gay Rights. Atheist Rights. Gender Rights. I have a flexible mind, and I feel a bit awed by all I have had to unlearn and learn. It’s not just America that’s changed of course. I believe that, in addition to ecological collapse and economics, the 9/11 world is a reaction to the education and empowerment of women.

And then there’s the demographic transformation of America. There’s a fertility transition that continues to drop family size; without immigration America’s population would be shrinking.  There’s the rapid aging of the post-war boomers. There’s the transition of the euro-american to minority status.

Now add China. No period of human history has seen anything comparable to the rise of China — if only because it is nation of a billion people. The economic transformation is severe; there is a limit to how quickly economies can adapt.

And, of course, no period of human history has seen an intelligent machine. We live in the AI era. Not the sentient AI era, or at least not so far as I know. But we now have distributed, almost ubiquitous, machine intelligence. Pre-AI technologies have already eliminated much of the work that supported the non-college middle class. The service work that remains pays far less and demands strong emotional control. A control that many men, and some women, don’t have.

The AI era is the era of mass disability. An era when the work that is valued and compensated requires cognitive and emotional skills that perhaps 40% of the US population does not have. No, more college will not help.

Extreme cultural transformation. Demographics. China. The AI era and mass disability. I haven’t even mentioned that pre-AI technologies wiped out traditional media and enabled the growth of Facebook-fueled mass deception alt-media.

We should not be surprised that the wheels have come off the train.

The GOP in 2016

We will lose the consumer protections and financial regulation slowly built over the past 8 years. We will lose Obamacare. The Gender Rights movement will stall.

I’ve seen some talk of the Senate minority slowing this, but we are also going to lose the filibuster.  We are unlikely to win the House or Senate in 2018 — so this will happen.

This will be sad and it will hurt a lot of people, not least Trump supporters.

It may not be as bad as some fear though. ObamaCare was failing. It was a tough political compromise that ran into GOP hellfire; the GOP blocked the post-launch fixes any big legislation needs. It was from the start intensely corporate and bureaucratic, with a misguided focus on analytics and top-down controls. GOP Representatives and Senators are not going to risk the wrath of their constituents, especially the non-college whites who are at risk of losing coverage. There will be a replacement. It will cover fewer people but perhaps it can be built up.

CO2 control seems to be hopeless now, but I’m not so sure about that. Sure, Trump is an idiot, but not everyone in the GOP truly believes that global warming is a good idea. There’s a chance the GOP will make changes that Obama could never get past the GOP.

This was all going to happen with any large GOP victory. Indeed, with his political core of white non-college voters Trump is going to be more cautious that Cruz or Ryan.

Trump: the mass disability conversation

I once wrote a blog post titled "Donald Trump is a sign of a healthy democracy. Really.”. It was really prescient:

… I enjoy seeing the GOP suffer for its (many) sins, and it would be very good for the world if the GOP loses the 2016 presidential election, but Trump won’t cause any lasting political damage. Unless he runs as a third party candidate he’ll have no real impact on the elections.

Hah-hah. Laughs on me.

This part holds up better:

Trump appears to be channeling the most important cohort in the modern world — people who are not going to complete the advanced academic track we call college. Canada has the world’s highest “college” graduation rate at 55.8%, but that number is heavily biased by programs that can resemble the senior year of American High School …

… about 40-50% population of Canadians have an IQ under 100. Most of this group will struggle to complete an academic program even given the strongest work ethic, personal discipline, and external support…

… this cohort, about 40% of the human race, has experienced at least 40 years of declining income and shrinking employment opportunities. We no longer employ millions of clerks to file papers, or harvest crops, or dig ditches, or fill gas tanks or even assemble cars. That work has gone, some to other countries but most to automation. Those jobs aren’t coming back.

The future for about half of all Americans, and all humans, looks grim. When Trump talks to his white audience about immigrants taking jobs and betrayal by the elite he is starting a conversation we need to have.

It doesn’t matter that Trump is a buffoon, or that restricting immigration won’t make any difference. It matters that the conversation is starting. After all, how far do you think anyone would get telling 40% of America that there is no place for them in current order because they’re not “smart” enough?

Yeah, not very far at all.

This is how democracy deals with hard conversations. It begins with yelling and ranting and blowhards. Eventually the conversation mutates. Painful thoughts become less painful. Facts are slowly accepted. Solutions begin to emerge…

I guess we’re having the conversation now. Too bad we didn’t have it four years ago. Obama, my ideal president, missed that one. He wasn’t alone, as recently as 2015 I complained “Both DeLong and Krugman missed the college vs. no-college white middle-age cohort, and I think that’s the important story” (K had a false start in 2012.)

Late in the campaign Obama picked up the theme with work on labor market monopsony and “predistribution”. Some of the Bernie Sanders themes that Clinton adopted, like free community college, were a first step. Overall though my team missed this one. It was a huge miss. They should have been reading Gordon’s Notes …

Trump: white nationalism and patriarchy

Half of college educated white women voters voted for Trump. I can’t quite get my head around that one. That cohort would have given Clinton the election.

Half.

What do we understand that? We need to resurrect anthropology and fuse it with journalism. How? I’ve no idea, but we need a way to explain ourselves to ourselves. A NYT piece made a good start with an interview of some of these women. Rage about the Black Lives Matter movement and critiques of police (prime job for the blue collar) were a factor; as well as susceptibility to Facebook-fueled right wing agitprop. I suspect these women are also relatively comfortable with traditional male-female roles. They want a “strong leader”; maybe they favor “enlightened patriarchy”. (The article had one significant error, it claimed white college-educated women voted for HRC. They did not. If they had we wouldn’t be talking about this.)

The whites are acting like a tribe. It’s different from acting like we own the country. This is shades of old racism mixed with aggrievement, loss, and bitterness. Unfortunately, unlike other tribes, the white tribe votes.

Reagan pioneered the use of white racism to win power. Trump has kicked it up several notches. He has summoned  our demons at just the right wrong time. Now we live with the consequences. Trump isn’t going to beat these demons back, he is much more racist than Reagan was (more than most of us imagined).

On the other hand the GOP is going to get nervous about this. The party is not going to be comfortable with overt white racism. There will be some GOP help with stuffing the Nazis and Klansmen back in the bottle. We will need that help.

The Resistance

In my home town of St Paul Minnesota a mob has been blocking a freeway. That’s dumb team. Stop doing that. We need more leadership. There’s a guy I know who’s going to be out of a job in seven weeks…

Ok, so Obama is probably going to want to take a break. We are going to need someone though. This isn’t just one crazy election. Remember the “Big Picture”. There are huge forces at work, especially the lack of demand for non-elite labor (what I call “mass disability”). If you think we’re in trouble now, imagine what’s going to happen to China in the next few years. (Russia is toast.)

We need to oppose Trump. He’s a twisted wreck. I suspect, however, that he’s going to find a lot of long knives in DC. The GOP leadership are not nice people, and they prefer Pence to Trump (not that Pence is good news).

We need to oppose Trump, but we also need to remember why we have Trump. We need to focus on the big picture - there are solutions. We live in whitewater times; we need to hold onto each other while we try to steer the raft. Because there’s a waterfall ahead …

See also: 

I’ve been writing about this for a bit over 8 years …

KRISTOF: Watching the Jobs Go By - his weakest column in years 2/2004. Very early thoughts in this direction.

Why your daughters should be roofers — not architects 3/2004. Precursor ideas.

On redistribution 6/2004. From an article in The Atlantic: “It is doubtful that in any society with universal suffrage the majority is going to sit on the sidelines and watch, generation after generation, while a handful of investors and corporate managers reap almost all the benefits of technological and economic progress."

The limits of disaster predictions: complex adaptive systems 2/2007. We have survived doom before.

Mass disability and Great Depression 2.0 3/2008. 

"I believe that about 20% of adult Americans aged 25 to 65 are effectively disabled in our current globalized post-industrial economy. I believe this number will rise as our population ages. I believe this is the fundamental problem, along with network effects, driving modern wealth concentration.

Over time the economy will change to develop niches for unused capacity (servant economy?), but the transition need not be comfortable. In the meantime technological shocks, such as ubiquitous robotics, may induce new disruptions to a non-equilibrium economic structure — risking extensive economic breakdown."

Causes of the Great Recession: China, GPSII and RCIIIT. Now for Act III 4/2010

Civilization is stronger than we think: Structural deficits and complex adaptive systems 5/2010. Hope.

Post-industrial employment: adjusting to a new world 5/2010. College is not the answer.

Unemployment and the new American economy - with some fixes. 1/2011 “In a virtualized economy workers with average analytic and social IQ less than 125 are increasingly disabled. Since this average falls with age the rate of disability is rising as the we boomers accumulate entropy …Start applying the lessons learned from providing employment to cognitively impaired adults to the entire US population.” Looking back this is when my thinking about mass disability began to crystallize.

Mass disability goes mainstream: disequilibria and RCIIT 11/2011. I thought we’d have the conversation then, but it didn’t go forward. Unfortunately.

Life in the post-AI world. What’s next? 9/2011

The Post-AI era is also the era of mass disability One of my favorites. 12/2012

Addressing structural underemployment (aka mass disability) 5/2013 Some ideas on solutions. Good ideas by the way.

Donald Trump is a sign of a healthy democracy. Really. 8/2015

Trump explained: Non-college white Americans now have higher middle-aged death rates than black Americans 11/2015 “Both DeLong and Krugman missed the college vs. no-college white middle-age cohort, and I think that’s the important story” 

Trumpism: a transition function to the world of mass disability 8/2016

How does the world look to Trump’s core supporters? 9/2016.

After Trump: information wants to be free, but knowledge is expensive 11/2016. This feels fixable, but it’s a fundamental problem.

Sunday, November 06, 2016

After Trump: information wants to be free, but knowledge is expensive

Fourteen  months ago I wrote that Trump was a sign of a healthy democracy.

That one might rank up with my Peak Oil prediction. I’m really not very good at the precision business. It’s hard to know what the future will be like, it’s harder to know when the future will be.

Trump now looks more like a cardiac arrest. Not a bit of chest pain that inspires healthier living; a full out arrest with defibrillators, chest compression and, at best, a long slow recovery. Whatever Systems we had to prevent something like Trump, they didn’t work. We have a political never event; the worst of America contending for the presidency.

When the plane crashes, when the healthy patient dies, we do a root cause analysis. Usually half a dozen things went wrong all at once; multiple safeguards failed. Some of these we know about. We had the Great Recession. We had home and wealth loss concentrated in the non-college population. We had globalization. We had, have, will have the AI world eliminating jobs — especially for the non-college. We have a demographic transition form white protestant to a mix of peoples. We have rapid evolution of social mores and constant technology churn. We have the secularization of America, the end of a historic religious consensus. We have the collapse of the GOP’s historic coalition of the wealthy and the white working class.

Those are big things. But I think we needed something else to create Trump. We needed to eliminate reality.

In our era it started with right wing AM talk radio and Rupert Murdoch’s media empire — not least Fox News. Today it manifests as a torrent of consensual hallucination racing across Facebook. Most of America, especially the non-college, live in world of dreams with only a loose connection to reality. I didn’t see that coming.

How can we correct this? The economics are not good. It takes money to do run the New York Times, almost nothing to create a false news story. The New York Times costs $200 a year — only the elite can read it now. Breitbart is free — supported by AARP ads.

Making knowledge available only to the elite is not a great survival strategy.

See also: