Showing posts with label mass disability. Show all posts
Showing posts with label mass disability. Show all posts

Tuesday, November 12, 2024

Mass disability measured: in 2016 40% of OECD workers could not manage basic technology tasks

It's hard to imagine how very simple much of our technology environment was in the 1980s. Much of what we interacted with was still understandable in simple mechanical terms. Early Mac OS Classic was vastly easier to understand and work with than anything we can image now; the closest analogy would be year two of the iPhone.

But even 8 years ago only a small slice of humanity could manage their technology environment (Jakob Nielsen from November 2016, thanks Matt Panaro for sharing.)

... The data was collected from 2011–2015 in 33 countries and was published in 2016 by the OECD... In total, 215,942 people were tested, with at least 5,000 participants in most countries... 

... research aimed to test the [job-related including technology] skills of people aged 16–65 ...

...participants were asked to perform 14 computer-based tasks. Instead of using live websites, the participants attempted the tasks on simulated software on the test facilitator’s computer. This allowed the researchers to make sure that all participants were confronted with the same level of difficulty across the years and enabled controlled translations of the user interfaces into each country’s local language ..

The tasks they chose were typical business worker tasks. The kinds of tasks that had lots of training back in the 90s. They never tried anything as tough as the HR software my legally disabled son has to work with at his minimum wage hourly job (we do it for him obviously).

Not all OECD members are equally wealthy but Nielsen reproduces a country-specific bar chart from the study. US numbers are not hugely different from the OECD averages; I've added US numbers based on squinting at the chart (numbers are done as levels, so as we move up the prior skills are assumed):

26% could not use a computer at all (US 20%)

14% could delete an email (US 15%)

29% could manage "reply all" or "Find all emails from John Smith" (US 35%)

5% could do "You want to know what percentage of the emails sent by John Smith last month were about sustainability." (US 5%)

They did not test the ability to maintain multiple malware-free home computers, iPhones, iPads and the like. I'd guess that's more like 0.1%.

Jakob Nielsen has been talking about "usability" as long as I can recall. So eight years ago he put this into the context of computer design and training. Which has been the mainstream interpretation of findings like this over the past 50 years of growing technological complexity. 

50 years is a good amount of time to wait for better software. Now we anticipate AI will monitor computer screens and guide users to complete tasks

But maybe better software won't help. After all, 40% of users couldn't do relatively simple software tasks. Maybe the problem is human cognitive limits.

I have coincidentally used that 40% number in a post rather similar to this the last time Trump won. Around the time that OECD study was published. Forty percent is my guesstimate of the percentage of Americans who cannot hope to earn the approximately $70,000 a year (plus benefits) needed to sustain a single adult in the low-end of American middle-class life. A life with some savings, yearly vacations, secure shelter, even a child or two.

Since at least 2008 I have called this global phenomenon mass disability. Every few years I see the basic concept emerge, typically with more euphemisms, only to be quickly forgotten. It's hard to fix anything when the the fix begins with a very unhappy truth. 

The unhappy truth is the complexity of our technological environment has exceeded the cognitive grasp of most humans. We now have an unsustainable mismatch between "middle-class" work and the cognitive talents of a large percentage of Americans.

There are things to do, some of which Biden started. We probably needed to have started on them back in the 90s. Perhaps Musk will have ideas. It's all on the oligarchs now.

Wednesday, November 06, 2024

Chaos times: American oligarchy

1. I was right about polling being worthless

2. At least Biden was spared humiliation 

3. Americans chose oligarchy willingly. 

4. Our feeble democracy wasn’t going to survive AGI (if we get it)

5. I think the inability of a large number of men and women to meet the always increasing IQ/EQ requirements needed for a middle-class life is the root cause. #massDisability

Now we enter the chaos times.

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:

Monday, February 20, 2023

Be afraid of ChatGPT

TL;DR: It's not that ChatGPT is miraculous, it's that cognitive science research suggests human cognition is also not miraculous.

"Those early airplanes were nothing compared to our pigeon-powered flight technology!"

https://chat.openai.com/chat - "Write a funny but profound sentence about what pigeons thought of early airplanes"

Relax

Be Afraid

ChatGPT is just a fancy autocomplete.

Much of human language generation may be a fancy autocomplete.

ChatGPT confabulates.

Humans with cognitive disabilities routinely confabulate and under enough stress most humans will confabulate. 

ChatGPT can’t do arithmetic.

IF a monitoring system can detect a question involves arithmetic or mathematics it can invoke a math system*.


UPDATE: 2 hours after writing this I read that this has been done.

ChatGPT’s knowledge base is faulty.

ChatGPT’s knowledge base is vastly larger than that of most humans and it will quickly improve.

ChatGPT doesn’t have explicit goals other than a design goal to emulate human interaction.

Other goals can be implemented.

We don’t know how to emulate the integration layer humans use to coordinate input from disparate neural networks and negotiate conflicts.

*I don't know the status of such an integration layer. It may already have been built. If not it may take years or decades -- but probably not many decades.

We can’t even get AI to drive a car, so we shouldn’t worry about this.

It’s likely that driving a car basically requires near-human cognitive abilities. The car test isn’t reassuring.

ChatGPT isn’t conscious.

Are you conscious? Tell me what consciousness is.

ChatGPT doesn’t have a soul.

Show me your soul.

Relax - I'm bad at predictions. In 1945 I would have said it was impossible, barring celestial intervention, for humanity to go 75 years without nuclear war.


See also:

  • All posts tagged as skynet
  • Scott Aaronson and the case against strong AI (2008). At that time Aaronson felt a sentient AI was sometime after 2100. Fifteen years later (Jan 2023) Scott is working for OpenAI (ChatGPT). Emphases mine: "I’m now working at one of the world’s leading AI companies ... that company has already created GPT, an AI with a good fraction of the fantastical verbal abilities shown by M3GAN in the movie ... that AI will gain many of the remaining abilities in years rather than decades, and .. my job this year—supposedly!—is to think about how to prevent this sort of AI from wreaking havoc on the world."
  • Imagining the Singularity - in 1965 (2009 post.  Mathematician I.J. Good warned of an "intelligence explosion" in 1965. "Irving John ("I.J."; "Jack") Good (9 December 1916 – 5 April 2009)[1][2] was a British statistician who worked as a cryptologist at Bletchley Park."
  • The Thoughtful Slime Mold (2008). We don't fly like bird's fly.
  • Fermi Paradox resolutions (2000)
  • Against superhuman AI: in 2019 I felt reassured.
  • Mass disability (2012) - what happens as more work is done best by non-humans. This post mentions Clark Goble, an app.net conservative I miss quite often. He died young.
  • Phishing with the post-Turing avatar (2010). I was thinking 2050 but now 2025 is more likely.
  • Rat brain flies plane (2004). I've often wondered what happened to that work.
  • Cat brain simulator (2009). "I used to say that the day we had a computer roughly as smart as a hamster would be a good day to take the family on the holiday you've always dreamed of."
  • Slouching towards Skynet (2007). Theories on the evolution of cognition often involve aspects of deception including detection and deceit.
  • IEEE Singularity Issue (2008). Widespread mockery of the Singularity idea followed.
  • Bill Joy - Why the Future Doesn't Need Us (2000). See also Wikipedia summary. I'd love to see him revisit this essay but, again, he was widely mocked.
  • Google AI in 2030? (2007) A 2007 prediction by Peter Norvig that we'd have strong AI around 2030. That ... is looking possible.
  • Google's IQ boost (2009) Not directly related to this topic but reassurance that I'm bad at prediction. Google went to shit after 2009.
  • Skynet cometh (2009). Humor.
  • Personal note - in 1979 or so John Hopfield excitedly described his work in neural networks to me. My memory is poor but I think we were outdoors at the Caltech campus. I have no recollection of why we were speaking, maybe I'd attended a talk of his. A few weeks later I incorporated his explanations into a Caltech class I taught to local high school students on Saturday mornings. Hopfield would be about 90 if he's still alive. If he's avoided dementia it would be interesting to ask him what he thinks.

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, December 30, 2018

Why the crisis of 2016 will continue for decades to come

I haven’t written recently about why Crisis 2016, sometimes called Crisis-T, happened. For that matter, why Brexit. My last takes were in 2016 …

  • In defense of Donald Trump - July 2016. In which I identified the cause of the crisis, but assumed we’d dodge the bullet and HRC would tend to the crisis of the white working class.
  • Trumpism: a transition function to the world of mass disability - Aug 2016. “How does a culture transition from memes of independence and southern Christian-capitalist marketarianism to a world where government deeply biases the economy towards low-education employment?"
  • After Trump: reflections on mass disability in a sleepless night - Nov 11, 2016. "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.”
  • Crisis-T: What’s special about rural? - Nov 16, 2016: "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.”

How has my thinking changed two years later? Now I’d add a couple of tweaks, especially the way quirks of America’s constitution amplified the crisis. Today’s breakdown:

  • 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.

Rupert Murdoch will finally die, though his malignant empire will grind on for a time. Patriarchy can’t fall forever, eventually that process is done. We now understand the risks of Facebook and its like and those will be managed. So there’s hope.

But the crisis of the white non-college will continue and our constitution will continue to amplify that bloc’s political power in rural areas. Even if civilization wins in 2020 the crisis of 2016 will continue. It will test human societies for decades to come.

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

Wednesday, June 28, 2017

All those "Democrats and white middle class" articles explained in four lines.

I’m going to translate the subtexts and signals of What’s Wrong With the Democrats? - The Atlantic into plain language:

  1. Democrats should have disowned Black Livers Matter.
  2. Democrats shouldn’t run a woman for the presidency.
  3. Democrats should have lied more.
  4. Democrats should have paid more attention to the economic collapse of the non-college (peak human, mass disability)

I agree with the fourth. I was worried about that before Trump took over. I don’t agree with #3, I think lying works a lot better on the GOP base than the Dem base.

Number one and two remind me of the Al Gore’s choice to embrace gun management measures. It was a progressive and brave act, but Americans showed they didn’t want it. Dems have not pushed it since.

I don’t think we’ll see a woman running for the presidency of the United States in the next ten years. Maybe 20 years. I was shocked that almost half of white college educated women voted for Trump. HRC was less excellent than Obama, but she was pretty good. Since white men are  hopeless the lack of support from white women was a killer.

I also think Dems will shy away from BLM like movements - at least for another decade. We won’t say that loudly, but watch what happens. American racism is stronger than many thought.

The are sad predictions. I hope I’m wrong, but I don’t have a lot of faith in post-Trump America. 

Now that we’ve got that out of the way, can journalists top writing these articles?

Saturday, December 31, 2016

Crisis-T: blame it on the iPhone (too)

It’s a human thing. Something insane happens and we try to figure out “why now?”. We did a lot of that in the fall of 2001. Today I looked back at some of what I wrote then. It’s somewhat unhinged — most of us were a bit nuts then. Most of what I wrote is best forgotten, but I still have a soft spot for this Nov 2001 diagram …

Model 20010911

I think some of it works for Nov 2016 too, particularly the belief/fact breakdown, the relative poverty, the cultural dislocation, the response to modernity and changing roles of women, and the role of communication technology. Demographic pressure and environmental degradation aren’t factors in Crisis-T though.

More than those common factors I’ve blamed Crisis-T on automation and globalization reducing the demand for non-elite labor (aka “mass disability”). That doesn’t account for the Russian infowar and fake news factors though (“Meme belief=facts” and “communications tech” in my old diagram). Why were they so apparently influential? 

Maybe we should blame the iPhone …

Why Trolls Won in 2016 Bryan Mengus, Gizmodo

… Edgar Welch, armed with multiple weapons, entered a DC pizzeria and fired, seeking to “investigate” the pizza gate conspiracy—the debunked theory that John Podesta and Hillary Clinton are the architects of a child sex-trafficking ring covertly headquartered in the nonexistent basement of the restaurant Comet Ping Pong. Egged on by conspiracy videos hosted on YouTube, and disinformation posted broadly across internet communities and social networks, Welch made the 350-mile drive filled with righteous purpose. A brief interview with the New York Times revealed that the shooter had only recently had internet installed in his home….

…. the earliest public incarnation of the internet—USENET—was populated mostly by academia. It also had little to no moderation. Each September, new college students would get easy access to the network, leading to an uptick in low-value posts which would taper off as the newbies got a sense for the culture of USENET’s various newsgroups. 1993 is immortalized as the Eternal September when AOL began to offer USENET to a flood of brand-new internet users, and overwhelmed by those who could finally afford access, that original USENET culture never bounced back.

Similarly, when Facebook was first founded in 2004, it was only available to Harvard students … The trend has remained fairly consistent: the wealthy, urban, and highly-educated are the first to benefit from and use new technologies while the poor, rural, and less educated lag behind. That margin has shrunk drastically since 2004, as cheaper computers and broadband access became attainable for most Americans.

…  the vast majority of internet users today do not come from the elite set. According to Pew Research, 63 percent of adults in the US used the internet in 2004. By 2015 that number had skyrocketed to 84 percent. Among the study’s conclusions were that, “the most pronounced growth has come among those in lower-income households and those with lower levels of educational attainment” …

… What we’re experiencing now is a huge influx of relatively new internet users—USENET’s Eternal September on an enormous scale—wrapped in political unrest.

“White Low-Income Non-College” (WLINC) and “non-elite” are politically correct [1] ways of speaking about the 40% of white Americans who have IQ scores below 100. It’s a population that was protected from net exposure until Apple introduced the first mass market computing device in June of 2007 — and Google and Facebook made mass market computing inexpensive and irresistible.

And so it has come to pass that in 2016 a population vulnerable to manipulation and yearning for the comfort of the mass movement has been dispossessed by technological change and empowered by the Facebook ad-funded manipulation engine.

So we can blame the iPhone too.

- fn -

[1] I think, for once, the term actually applies.

Sunday, August 28, 2016

Trumpism: a transition function to the world of mass disability.

We know the shape of the socioeconomic future for the bottom 40% in the post globalization post AI  mass disability world.

But how do we get there? How does a culture transition from memes of independence and southern Christian-capitalist marketarianism to a world where government deeply biases the economy towards low-education employment?

There needs to be a transition function. A transform that is applied to a culture. With the anthropology perspective I’ve long sought Arlie Hochschild makes the case that Trump is, among other things, a transition function that erases Tea Party Marketarianism and embraces the heresy of government support (albeit for the “deserving”).

In a complex adaptive system we get the transition function we need rather than the one we want. No guarantee we survive it though.

See also:

Saturday, October 05, 2013

For American adults are poverty and disability the same thing?

[Preface 9/6/13: I am enjoying the app.net discussion thread on this with @duerig and @clarkgoble. When reading this, try substituting TRREP - Trait that Reduces Relative Economic Productivity for the word "disability". Also, please note disability is not inability. In my experience parenting/coaching two children with disabilities I think of managing disability like building a railroad across mountainous terrain. Sometimes reinforce, somethings divert, always forward.]

-- 

Anosmia is not a disability.

Well, technically, it is. Humans are supposed to come with a sense of smell. For most of human existence anosmia was a significant survival problem. At the least, it helps to known when food has gone bad. So Anosmia is a biological disability.

In today's America though, there's not much obvious economic downside to anosmia. Diminished appetite is more of a feature than a defect. There are many jobs where a keen sense of smell is a disadvantage -- including, I can assure you, medical practice. Anosmia is a biological disability, but it's not an economic disability. Not here and now anyway -- once it would have been.

Disability is contextual, it's the combination of variation, environment and measured outcome that defines disability.

What about if I lose my right leg? Am I disabled then? Well, if I delivered mail I'd have a problem -- but in my job an insurance company would snort milk out its proverbial nose if I tried to claim longterm disability.

I think you can see where I'm going with this. Stephen Hawking is an extreme example -- you can have a lot of physical disability and not be economically disabled.

So how can I become disabled? 

Probably not through my "risky" CrossFit hobby,  but my benign bicycle commute is another matter. Until that glorious day when humans are no longer allowed to drive cars, I'm at risk of a catastrophic head injury. An injury that may impact my cognitive processing, my disposition to use cognition ("rationality"), my judgment and temperament -- and leave me as completely disabled for high income work as if I were 85 [1]. At that point, barring insurance, I'm economically disabled and impoverished.

Clearly, acquired cognitive injury can be disabling. So what of congenital cognitive disorders like low functioning autism or severe impulse disorders? Impulsivity, inability to plan, very low IQ ... Clearly disabling. Without income support from family or government, extreme poverty is likely.

Ahh, but what of those born with average IQ, average rationality, average judgment, average temperament? Employment is likely -- but earnings will be limited. To be average in the economy of 2013 is to sit on the borderline of poverty -- and of disability. The difference will be decided by other factors, factors like race, location, and family wealth. An average person who looks and acts "white" and is born to a middle class family in Minnesota may make it into the dwindling middle class (for a time), an average person who looks and acts "black" and is born to a poor family in Mississippi is going to be impoverished.

Which brings me to my question - for American adults are poverty and disability the same thing? Not entirely -- race, residence, and family income have an impact, particularly within some ill-defined "middle range" of "native disability". Not entirely -- but they are clearly related. 

How related? Consider this OECD graph of poverty rates across nations with very different cultures, attitudes and histories:

 Pov taxtrans

Across Finland, Denmark, Sweden and the US we see a "natural" or baseline (pre-transfer) adult poverty rate of 24-32%, with Swede and the US both at 28%. Not coincidentally, 30% is what I suspect our baseline rate of mass disability is today.

We can and should deal with poverty-enhancing factors like racism, unfunded schools and the like. That will make a difference for many -- and, if all goes well, we might get the US baseline poverty rate to be more like Denmark's. We'll go from 28% to 24%. Ok, maybe, in a perfect world, we get our baseline rate from 28% to 20%. Maybe.

To really deal with poverty though, we need to understand what real disability is. Economic disability in 2013 isn't a missing leg, it's poor judgment, weak rationality, low IQ, disposition to substance abuse. To conquer poverty, we will need to conquer disability - either with Danish style income transfers or with something better.

I think we can do better.

- fn -

[1] Social security is simply a form of insurance for age-related disability with an arbitrary (but pragmatic) substitution of chronology for disability measurement.

See also

 

Saturday, August 03, 2013

Sympathy for Economists

A good feature of teenagers is that they sometimes sleep in. So Emily and I can chat on a quiet Saturday morning about wearable tech (remember 1988?), and how 2013 feels a bit like 1997 or 2007 or 1923. The times when technological change seems to rev up again. To be followed, if recent  history is any guide, by yet another crash.

Which brings us to Economics, and especially to economists like Brad DeLong and Paul Krugman

I suspect that DeLong, and even Krugman, believe that the fundamental drivers of our economic instability are the simultaneous and related rise of both digital technologies and China and India (RCIIIT). Both DeLong and Krugman, have, at various times, written about the disruptive impact of "smart" robots (including robot/human pairings) and the related rise of 'mass disability'. Both, I suspect, share my opinion of the economic consequences of artificial sentience.

These aren't however, topics they can discuss in the context of models and mechanisms. How do you measure technological disruption? Economists still struggle to describe the productivity impacts of typewriters. Corporations can't make an internal business case for products like Yammer. We can't measure technological disruptions, and what we can't measure we can't model. What Economists can't model they can't discuss, and so they look through a keyhole into a dimly lit room and see monsters, but can't speak of them.

But the situation for Economics is even worse than that. There is a reason Krugman rants about economists who cling to models when all their predictions fail and yet retain academic respect. A discipline without falsifiability can be scholarly, but it can't be a science. It can't progress.

Economics thus lies between the Scylla of the monsters than can't be mentioned, and the Charybdis of the non-falsifiable.

No wonder Economists are dismal.

Monday, January 21, 2013

Why ending the war on drugs may have unintended consequences

Imagine you have very limited or no legal employment opportunities. Or perhaps you have some opportunities, but they pay poorly.

Dealing drugs may be a semi-rational choice then. American jails are famously nasty, but if you can avoid prolonged incarceration and drug trade violence you can earn money.

If we end the failed war on drugs though, those income opportunities vanish. Walmart and Philip Morris take the profits, and distribution becomes another high-competition minimum wage option.

Ending the war on drugs, without providing an answer to mass disability, may have unintended consequences.

We might do better to keep drugs illegal, but reform prisons -- turn them into enhanced skills development programs.

Tuesday, July 10, 2012

Is labor lumpish in whitewater times?

Krugman is famously dismissive about claims of structural aspects to underemployment (though years ago he wasn't as sure). DeLong, I think, is less sure.

Krugman points to the uniformity of underemployment. If there were structural causes, wouldn't we see areas of relative strength? It seems a bit much to claim that multiple broad-coverage structural shocks would produce such a homogeneous picture.

Fortunately, I fly under the radar (esp. under Paul's), so I am free to wonder about labor in the post-AI era complicated by the the rise of China and India and the enabling effect of IT on financial fraud. Stories like this catch my attention ...

Fix Law Schools - Atlantic Vincent Rougeau  Mobile

... the jobs and high pay that used to greet new attorneys at large firms are gone, wiped away by innovations such as software that takes seconds to do the document discovery that once occupied junior attorneys for scores of (billable) hours while they learned their profession..

Enhanced search and discovery is only one small piece of the post-AI world, but there's a case to be made that it wiped out large portions of a profession. Brynjolfsson and McAfee expand that case in Race Against the Machine [1], though almost all of their fixes [1] increase economic output rather than addressing the core issue of mass disability. The exception, perhaps deliberately numbered 13 of 19, is easy to miss ...

13. Make it comparatively more attractive to hire a person than to buy more technology through incentives, rather than regulation. This can be done by, among other things, decreasing employer payroll taxes and providing subsidies or tax breaks for employing people who have been out of work for a long time. Taxes on congestion and pollution can more than make up for the reduced labor taxes.

Of course by "pollution ... tax" they mean "Carbon Tax" [1]. The fix here is the same fix that has been applied to provide employment for persons with cognitive disabilities such as low IQ and/or autism. In the modern world disability is a relative term that applies to a larger population.

If our whitewater times continue, we will either go there or go nowhere.

[1] They're popular at the "Singularity University" and their fixes are published in "World Future Society". Outcasts they are. Their fan base probably explains why the can't use the "Carbon" word, WFS/SU people have a weird problem with letter C. 

See also:

Saturday, November 26, 2011

Mass disability goes mainstream: disequilibria and RCIIT

I've been chattering for a few years about the rise of mass disability and the role of RCIIT (India, China, computers, networks) in the Lesser Depression. This has taken me a bit out of the Krugman camp, which means I'm probably wrong.

Yes, I accept Krugman's thesis that the proximal cause of depression is a collapse in demand combined with the zero-bound problem. Hard to argue with arithmetic.

I think there's more going on though. Some secular trends that will be with us even if followed Krugman's wise advice. In fact, under the surface, I suspect Krugman and DeLong believe this as well. I've read Krugman for years, and he was once more worried about the impact of globalization and IT than he's now willing to admit. Sometimes he has to simplify.

For example, fraud has always been with us -- but something happened to make traditional fraud for more effective over the past thirteen years. I think that "something" was the rise of information technology and associated complexity; a technology that allowed financiers to appear to be contributing value even though their primary role was parasitic.

Similarly, the rise of China and India is, in the long run, good for the entire world. In the near future, however, it's very hard for world economies to adjust. Income shifts to a tiny fraction of Americans, many jobs are disrupted, people have to move, to change careers, etc. It takes time for new tax structures to be accepted, for new work to emerge. IT has the same disruptive effect. AI and communication networks will further limit the jobs we can take where our economic returns are equal or greater than the minimum wage.

I think these ideas are starting to get traction. Today Herman Gans is writing in the NYT about the age of the superfluous worker. A few days ago The Economist reviewed a book about disequlibria and IT

Economics Focus: Marathon machine | The Economist

... Erik Brynjolfsson, an economist, and Andrew McAfee, a technology expert, argue in their new e-book, “Race Against the Machine”, that too much innovation is the bane of struggling workers. Progress in information and communication technology (ICT) may be occurring too fast for labour markets to keep up. Such a revolution ought to be obvious enough to dissuade others from writing about stagnation. But Messrs Brynjolfsson and McAfee argue that because the growth is exponential, it is deceptive in its pace...

... Progress in many areas of ICT follows Moore’s law, they write, which suggests that circuit performance should double every 1-2 years. In the early years of the ICT revolution, during the flat part of the exponential curve, progress seemed interesting but limited in its applications. As doublings accumulate, however, and technology moves into the steep part of the exponential curve, great leaps become possible. Technological feats such as self-driving cars and voice-recognition and translation programmes, not long ago a distant hope, are now realities. Further progress may generate profound economic change, they say. ICT is a “general purpose technology”, like steam-power or electrification, able to affect businesses in all industries...

... There will also be growing pains. Technology allows firms to offshore back-office tasks, for instance, or replace cashiers with automated kiosks. Powerful new systems may threaten the jobs of those who felt safe from technology. Pattern-recognition software is used to do work previously accomplished by teams of lawyers. Programmes can do a passable job writing up baseball games, and may soon fill parts of newspaper sections (those not sunk by free online competition). Workers are displaced, but businesses are proving slow to find new uses for the labour made available. Those left unemployed or underemployed are struggling to retrain and catch up with the new economy’s needs.

As a result, the labour force is polarising. Many of those once employed as semi-skilled workers are now fighting for low-wage jobs. Change has been good for those at the very top. Whereas real wages have been falling or flat for most workers, they have increased for those who have advanced degrees. Owners of capital have also benefited. They have enjoyed big gains from the increased returns on investments in equipment. Technology is allowing the best performers in many fields, such as superstar entertainers, to dominate global markets, crowding out those even slightly less skilled. And technology has yet to cut costs for health care, or education. Much of the rich world’s workforce has been squeezed on two sides, by stagnant wages and rising costs.

In time the economy will adjust  -- unless exponential IT transformation actually continues [1]. Alas, the AI revolution well is underway and technology cycles are still brutally short.  I don't see adjustment happening within the next six years. The whitewater isn't calming.

[1] That is, of course, the Singularity premise, as previously reviewed in The Economist.

Update 12/3/2011: And how does the great stagnation play into this - Gordon's Notes: Ants, corporations and the great stagnation?

Sunday, March 14, 2010

Political reform: Let's license legislators

Americans are grumpy. It's been a bleak decade, and the next one doesn't look too promising. Our politicians are going to have to work through the end of American exceptionalism, the beginning of the end of oil, the age of mass disability, the challenge of CO2 management, the rise of China and India, the Fall of North Korea, nukes galore, the ghost of Malthus and sentient machines.

Just kidding about the last one. Skynet is fifty years ahead and we don't survive it, so no need to worry.

America has the talent to manage these problems. Trouble is, none of the people we need are crazy enough to run for office, and voters wouldn't like 'em anyway. GOP voters would especially dislike the rationalists we need - and we Dems need a sane GOP opposition.

So how do we grow a sane government? I've thought of drafting people to serve, but it's easy to come up with too many objections. I really can't come up with a great alternative to elections, though I still like the idea of taxing campaign related activities at 50% to enable publicly funded campaigns.

So what can we do to improve the system we have now? Let's license legislators. After all, we license lawyers, accountants, physicians, barbers, and realtors -- why not legislators?

It's not hard to image an appropriate curriculum -- starting with courses and evaluation on basic probability, logic 101, business operations, economics, history of science, history, and comparative theology. An intensive 12 month program should do it for most legislators. Grading could be pass-fail -- I'm fine with that.

Legislators would, like physicians, redo their board exams every five years.

Clearly we'd need to compromise on certain topics. For this group there's no problem with "teaching the controversy". By all means, give biologists and Creationists equal time to discuss natural selection. We can balance climate scientists with hobbyists and eccentrics. Different religions can argue for their own creation myths; and our exam questions can cover both scientific and Hindu explanations of biological diversity.

As is the common custom we'll grandfather in current politicians. Maybe we'll even have an interim time when licensure is only needed for those seeking public financing. Eventually though, all legislators will be licensed.

Or we can just stay as we are and die in the cold and the dark. We always have a choice.

See also:

Monday, February 23, 2009

Causes of the crash of '08 - how much fraud?

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]...

Good old fraud didn't cause the crash of '08, so I'm not going to move it up from the bottom of my list. I think it's more of a cofactor -- the primary drivers of the crash also made fraud easy, profitable, and almost culturally acceptable. In turn fraud, at more levels than we can imagine, accelerated the downturn.

One interesting note. Emily remembers John McCain's reaction when the crash began in the fall of 2008. McCain said "fire Cox". At the time that seemed rather odd, and McCain was criticized for coming up with Chris Cox (#18 on the list). In retrospect, one wonders how much political insiders knew about the amount of fraud in the system. Politicians of both parties spent a lot of time with people like Allen Stanford, and I'm guessing, despite the photographed smiles, that they felt a severe need for soap every time they shook his hand ...

[1] Inanely, we have to plow through a lot of links to get to the interesting ones, including a number of unfair listings - though this one's fair.

Tuesday, January 20, 2009

Performance-based compensation and novel financial instruments: an explosive combination

Econbrowser draws a connection between known problems with performance-based compensation, given to CEOs to “align” their interests with those of shareholders, lack of regulatory oversight, and financial innovation (emphases mine) …

Econbrowser: Executive compensation

… That the incentives for CEOs need not necessarily coincide with those of the shareholders is a well understood phenomenon that is a special case of what economists call the principal-agent problem. This arises in situations when an agent (in this case, the CEO) has better information about what is going on than the principals (in this case, the shareholders) who rely on the agent to perform a certain task. One way to try to cope with these problems of asymmetric information is to tie the agent's compensation directly to performance.

What caused that principle to go so badly awry in the present instance? I believe there was an unfortunate interaction between financial innovations and lack of regulatory oversight, which allowed the construction of new financial instruments with essentially any risk-reward profile desired and the ability to leverage one's way into an arbitrarily large position in such an instrument. The underlying instrument of choice was a security with a high probability of doing slightly better than the market and a small probability of a big loss. For example, a subprime loan extended in 2005 would earn the lender a higher yield in the event that house prices continued to rise, but perform quite badly when the housing market turned down. By taking a leveraged position in such assets, the slightly higher yield became an enormously higher yield, and while the game was on, the short-term performance looked wonderful. If the agent is compensated on the basis of current performance alone, and the principal lacks good information on the exact nature of the risks, the result is a tragically toxic incentive structure…

In point form then the contributing factors were:

  1. the well known principal-agent problem
  2. poorly designed performance based compensation (an attempt to mitigate the principal-agent problem, but the time scales are not aligned)
  3. leverage without regulatory oversight
  4. novel financial instruments with a no more than average* (probably below average when expenses are incorporated) expected value but a skewed probability distribution – so there was a high probability of slightly above average returns and a low probability of catastrophic failure

It’s a persuasive argument, consistent with Lewis and Einhorn on repairing the financial world, Lewis (again) reporting on the “end of Wall Street” and Henry Blodget writing for the Atlantic – Why Wall Street Always Blows It.

My take away lessons are:

  1. We need to be very careful with performance based compensation. The problem isn’t that it’s not an effective incentive, the problem is that it’s too effective an incentive. The physician “pay for performance” crowd should pay attention to this, but they won’t.
  2. We need regulatory oversight. Yeah, we knew that.
  3. Novel financial instruments, whether they provide new ways to skew probability (2008), or new forms of leverage (1929), need to set off red flashing lights and screaming alarms in the Treasury, Congress, the White House and the Federal Reserve. Our government and regulatory agencies need to be doing continuous “war gaming” about how new technologies will transform finance, and constantly about how to avert future catastrophic scenarios.

See also:

  1. Jumping the canyon of Great Depression II
  2. Stimulus and the scale of under-utilized global productive output
  3. Lewis and Einhorn: repairing the financial world
  4. The role of the deadbeats
  5. Complexity collapse
  6. Disintermediating Wall Street
  7. The future of the publicly traded company
  8. Marked!
  9. Mass disability and income skew
  10. The occult inflation of shrinking quality
  11. You get what you pay for. The tragedy of the incentive plan.

* In this sense “average” refers not to the averaging over the lifespan of the instrument, but rather all the probable outcomes – an expected value calculation really.

Tuesday, January 06, 2009

GD II: How large is the unused economic capacity?

I must be up to at least 30 Crackpot points in my recent economics threads, but I just can't help myself.

I swear, I'm going to stop soon, just not quite yet.

In past recessions, and even recently, I've read of estimates of the unused capacity of the US economy, and how much must be done to move us closer to using all of our capacity.

So today's question is whether the US economy is the right denominator.

What if we're now so entangled economically with China that the right denominator is not the US workforce, but rather the US and Chinese (and perhaps Indian) workforce? That's a rather bigger number; it could absorb a lot of stimulus ...

Crank roll:
  1. Lewis and Einhorn: repairing the financial world
  2. The role of the deadbeats
  3. Complexity collapse
  4. Disintermediating Wall Street
  5. The future of the publicly traded company
  6. Marked!
  7. Mass disability and income skew
  8. The occult inflation of shrinking quality