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  • feedwordpress 14:20:01 on 2018/08/27 Permalink
    Tags: , , , , , , , regulation   

    The Accountable Capitalism Act: It’ll Never Happen, But At Least Now the Conversation Will 

    The past week or so has seen a surge in commentary on the role of corporations in society, a theme familiar to readers of this site. While it might be convenient to peg the trend to Senator Elizabeth Warren’s newly minted Accountable Capitalism Act (more on that in a second), I think it’s more likely that – finally – our collective will is turning to our most logical and obvious instrument of social change, namely, the instrument of business.

    We humans like to organize ourselves into social units. They range from the informal (pickup basketball games) to the elaborately structured (Senate hearings). Our ability to harness collective will is unsurpassed in the animal kingdom, it’s one of our key evolutionary adaptations, driving the success of our species across the globe.

    As I’ve argued elsewhere, one of our most sophisticated social structures is the corporation, which has co-evolved with our various systems of government over the past half millennium or so. The very first corporations were in fact formed (or chartered) by governments – the Dutch East India Company is the most common example of this. In the past century, however, corporations have largely sought to shake the yoke of government regulation – and nowhere have corporations won more freedoms than in the United States, where firms are now considered legal persons with an unrestrained right to “free speech” (IE, the ability to fund political positions).

    So this is where we are today: Large corporations have the legal right to exercise unlimited influence over our political sphere, and the commercial imperative to control (and profit from) nearly all our society’s data. That kind of power will necessarily produce a backlash, on that’s found an articulate, but highly unlikely, argument in Senator Warren’s proposed legislation. From the release announcing the Accountable Capitalism Act:

    For most of our country’s history, American corporations balanced their responsibilities to all of their stakeholders – employees, shareholders, communities – in corporate decisions. It worked: profits went up, productivity went up, wages went up, and America built a thriving middle class.

    But in the 1980s a new idea quickly took hold: American corporations should focus only on maximizing returns to their shareholders. That had a seismic impact on the American economy. In the early 1980s, America’s biggest companies dedicated less than half of their profits to shareholders and reinvested the rest in the company. But over the last decade, big American companies have dedicated 93% of earnings to shareholders – redirecting trillions of dollars that could have gone to workers or long-term investments. The result is that booming corporate profits and rising worker productivity have not led to rising wages.

    Additionally, because the wealthiest top 10% of American households own 84% of all American – held shares-while more than 50% of American households own no stock at all – the dedication to “maximizing shareholder value” means that the multi-trillion dollar American corporate system is focused explicitly on making the richest Americans even richer. 

    Here are a few of the act’s key proposals:

    • Companies with more than $1 billion in revenues must register with, and agree to be regulated by, a new Federal oversight body known as the Office of United States Corporations.  By registering, firms are obliged to “consider the interests of all corporate stakeholders – including employees, customers, shareholders, and the communities in which the company operates.” This enshrines what is often called a “multi-stakeholder philosophy,” the underpinning of B Corps like Patagonia and Kickstarter, into federal law.
    • A corporations’ workers would be empowered to elect at least forty percent of their firms’ board of directors.
    • Long term restrictions on the sale of stock by board directors and corporate officers – three years for stock buy backs, and five years for everything else. This is to insure that a large firms’ managers plan for the long term.
    • A prohibition on political spending of any kind without approval from 75 percent of both directors and shareholders.

    There’s more, but I think you’ve got the point – this is a sweeping and presently impossible piece of legislation that radically rethinks the governance of our most powerful corporations. It guts corporate political spending, upends business’s current compensation structure (often based on stock grants), radically reshapes board governance (giving a near majority control to workers), and creates a massive conservative bogeyman in the form of yet another Federal government oversight entity. In today’s political environment, Warren’s legislation is DOA.

    But in tomorrow’s? Quite possibly not. Senator Warren is widely considered a front-runner for the Democratic nomination in 2020, and her initial opponent won’t be Trump – it’ll be Bernie Sanders, whose supporters likely will find plenty to love in Warren’s new plan.

    Regardless of whether the act has any chance of passing without a strong Democratic majority in both houses of Congress, Warren has smartly identified a central issue in our country’s political conversation, and declared it to be fundamental to the Democrats’ platform for 2020. It’s about time someone did.

    More recent reading on the role of capitalism in our society: 

    Louis Hyman: It’s Not Technology That’s Disrupting Our Jobs

    L.M. Sacasas: Technopoly and Anti-Humanism

    Tom Wheeler: Time to Fix It: Developing Rules for Internet Capitalism

    Neil Irwin: Are Superstar Firms and Amazon Effects Reshaping the Economy? 

     

     

     

     
  • feedwordpress 22:31:56 on 2016/02/03 Permalink
    Tags: , , , , , regulation, traffic, , waze   

    The Waze Effect: Flocking, AI, and Private Regulatory Capture 

    The post The Waze Effect: Flocking, AI, and Private Regulatory Capture appeared first on John Battelle's Search Blog.

    Screenshot_2015-04-20-18-03-49-1_resized-738987(image)

    A couple of weeks ago my wife and I were heading across the San Rafael bridge to downtown Oakland for a show at the Fox Theatre. As all Bay area drivers know, there’s a historically awful stretch of Interstate 80 along that route – a permanent traffic sh*t show. I considered taking San Pablo road, a major thoroughfare which parallels the freeway. But my wife fired up Waze instead, and we proceeded to follow an intricate set of instructions which took us onto frontage roads, side streets, and counter-intuitive detours. Despite our shared unease (unfamiliar streets through some blighted neighborhoods), we trusted the Waze algorithms – and we weren’t alone. In fact, a continuous stream of automobiles snaked along the very same improbable route – and inside the cars ahead and behind me, I saw glowing blue screens delivering similar instructions to the drivers within.

    About a year or so ago I started regularly using the Waze app  – which is to say, I started using it on familiar routes: to and from work, going to the ballpark, maneuvering across San Francisco for a meeting. Prior to that I only used the navigation app as an occasional replacement for Google Maps –  when I wasn’t sure how to get from point A to point B.

    Of course, Waze is a revelation for the uninitiated. It essentially turns your car into an autonomous vehicle, with you as a simple robot executing the commands of an extraordinarily sophisticated and crowd-sourced AI.

    But as I’m sure you’ve noticed if you’re a regular “Wazer,” the app is driving a tangible “flocking” behavior in a significant percentage of drivers on the road. In essence, Waze has built a real time layer of data and commands over our current traffic infrastructure. This new layer is owned and operated by a for-profit company (Google, which owns Waze), its algorithms necessarily protected as intellectual property. And because it’s so much better than what we had before, nearly everyone is thrilled with the deal (there are some upset homeowners tired of those new traffic flows, for instance).

    Since the rise of the automobile, we’ve managed traffic flows through a public commons – a slow moving but accountable ecosystem of local and national ordinances (speed limits, stop signs, traffic lights, etc) that were more or less consistent across all publicly owned road ways.

    Information-first tech platforms like Waze, Uber, and Airbnb are delivering innovative solutions to real world problems that were simply impossible for governments to address (or even imagine). At what point will Waze or something like it integrate with the traffic grid, and start to control the lights?

    I’ve written before about how we’re slowly replacing our public commons with corporate, for-profit solutions – but I sense a quickening afoot. There’s an inevitable collision between the public’s right to know, and a corporation’s need for profit (predicated on establishing competitive moats and protecting core intellectual property).  How exactly do these algorithms choose how best to guide us around? Is it fair to route traffic past people’s homes and/or away from roadside businesses? Should we just throw up our hands and “trust the tech?”

    We’ve already been practicing solutions to these questions, first with the Web, then with Google search and the Facebook Newsfeed, and now with Waze. But absent a more robust dialog addressing these issues, we run a real risk of creating a new kind of regulatory capture – not in the classic sense, where corrupt public officials preference one company over another, but rather a more private kind, where a for-profit corporation literally becomes the regulatory framework itself – not through malicious intent or greed, but simply by offering a better way.

    The post The Waze Effect: Flocking, AI, and Private Regulatory Capture appeared first on John Battelle's Search Blog.

     
  • feedwordpress 16:59:35 on 2014/06/16 Permalink
    Tags: , , , , , IAB, regulation, tony fadell   

    Else 6.16.14: Internet Ads Grow, Apple Ads Blow 

    The post Else 6.16.14: Internet Ads Grow, Apple Ads Blow appeared first on John Battelle's Search Blog.

    IAB 6.14

    Up and to the right, baby.

    Lots of advertising news in this issue of Signal, as the bi-annual IAB report shows strong gains (YAY, Internet!). To the links:

    Internet Ads Surge 19% in Just One Year – WSJ That’s strong growth for an industry working on its 21st year. (IAB report)

    The Three Phases Of Mobile Advertising – BubbaVC Sometimes the best posts are really simple.

    For Apple, Marketing Is a Whole New Game – Advertising Age Apple once commanded unequalled respect from the ad world. Not any longer. Typically, the piece forgets that it all comes down to product….

    Only Apple – Daring Fireball – Regardless of how the company markets itself, if you don’t read John Gruber on all things Apple, you’re not getting the full scoop. Of course, he’s in the tank, but he’s smart nevertheless on the heels on WWDC, a must read.

    We need to regulate emotion-detecting technology  - Slate Oh shit, now tech can read our emotions – time to get ahead of it, this Slate piece argues. Not sure we know how to, I might retort.

    The Promise of a New Internet – The Atlantic Maybe it doesn’t have to all come down to a place controlled by the NSA, Facebook, and Apple. Maybe mesh networking can save the core values of the Internet after all?

    Facebook to Let Users Alter Their Ad Profiles – NYTimes.com I chose this version of the story because it’s such an amazing win for Facebook from a spin point of view. Other headlines: Facebook to Use Web Browsing History For Ad Targeting and Facebook’s New Ads Are Nosier Than Ever. Get my point?!

    Is Tony Fadell the next Steve Jobs or … the next Larry Page? – Fortune Or are we simply building him up because it makes a good headline? Seriously, Fadell is a talented executive, and this is a good profile of a key guy in the tech scene.

    Window into Airbnb’s hidden impact on S.F. – San Francisco Chronicle Look what a little data-driven journalism yields – insights into how Airbnb is changing the SF landscape.

    The post Else 6.16.14: Internet Ads Grow, Apple Ads Blow appeared first on John Battelle's Search Blog.

     
  • feedwordpress 01:55:56 on 2014/03/03 Permalink
    Tags: , , , , , , , , kurzweil, , regulation, , utility   

    Else 3.3.14: Is The Internet A Utility? 

    The post Else 3.3.14: Is The Internet A Utility? appeared first on John Battelle's Search Blog.

    elecutilThe week was dominated by Google related stories, but the top dialog had to do with the Internet itself. I’m sensing something of a shift in society’s beliefs about the Internet’s central role in our humanity. Five years ago, no one wanted to talk about Internet access as a basic human right. In 2012, the UN called it exactly that. With access consolidating into what looks like a natural monopoly, might regulation as a utility be far behind?

    Real Time (Medium) Another, denser version of previous essays asking whether it isn’t time to call the Internet a basic utility. “..the immaterial organisation of the internet has now become the most dominant force on this side of the planet...” Unfortunately, this piece is too dense. Try this one instead: The Internet Is Fucked (TechCrunch) in which the author enjoins: “Go ahead, say it out loud. The internet is a utility.There, you’ve just skipped past a quarter century of regulatory corruption and lawsuits that still rage to this day and arrived directly at the obvious conclusion.” Of course, that created a rejoinder: More? - “The Internet is an incredibly useful tool in modern society, but it isn’t essential to the basic functioning of society. Utilities are.” My take: The Internet is a basic need now for the info-organism we are all becoming. So I’m leaning toward the utility camp, I’m afraid. There’s a new book on the subject, should you be interested.

    The Monuments of Tech  (NYTimes.com) A meditation, with far too photos, on the meaning of the campuses built by Google, Twitter, Apple, Facebook. Have you read The Circle yet? Read The Circle. Then read this.

    Welcome to Googletown (The Verge) As long as we’re talking tech monuments, here’s a full blown deep dive into the relationship between Google and its Silicon Valley home, Mountain View. As one might expect, it’s fraught. But I’ve spent time in Mountain View before Google got there. Not that much has changed, outwardly. If Google keeps growing the way it’s planning to grow, that won’t be the case.

    Are the robots about to rise? Google’s new director of engineering thinks so (The Guardian) Part of me wonders why they let Ray Kurzweil out of the building at Google. But this is worth reading in any case. Related: Kurzweil’s review of Spike Jonze’ Her. 

    When quantified-self apps leave you with more questions than answers (The Daily Dot ) Something of a takedown on admittedly kludgy first generation self trackers. “I tweet a lot, but it’s mostly nonsense. I don’t have a whole lot of use for “data” about myself.” I just started using the Nike Fuelband. I’ll post plenty about that I’m sure, as the first week has proven interesting.

    Can Privacy Be Saved? (The New York Review of Books) Don’t you love articles that ask questions, then fail to answer them? Me too. This is a review of various government reports and Presidential speeches arising from the Snowden revelations. The essay makes a strong case for – making a stronger case for privacy. It ends by citing Orwell, Dick, and Bradbury. It does not answer the question – which may well be the answer after all.

    To Be Clear: Do Not Build Your Brand House On Land You Don’t Own (Searchblog) In case you missed it, a small reminder about the perils of building on rented land.

    The post Else 3.3.14: Is The Internet A Utility? appeared first on John Battelle's Search Blog.

     
  • feedwordpress 18:42:04 on 2014/02/10 Permalink
    Tags: , , , , , , progress, regulation   

    else 2.10: “Information that was never designed for a human to see” 

    The post else 2.10: “Information that was never designed for a human to see” appeared first on John Battelle's Search Blog.

    This week, we were thinking about data post-language, reading the tea leaves of algorithms, and wondering how to protect the first principles of the web. As always, if you want to keep up with what we’re reading/thinking about on a weekly basis, the best way is to subscribe to the “else” feed, either as an email newsletter or through RSS. And tweet us links!

     

    We’re Leaving — The Bygone BureauI like this take on the discussion of the “post-verbal” in Her as suggesting a time when data supplants language. It was a very brief moment in the movie, but I think it’s at the crux of how we will relate to our machines going forward.

    Your Eyes or My Words — Joanne McNeil
    In a talk she gave at Lift, Joanne McNeil explores reading the “tea leaves” guess work of understanding algorithms. “Sometimes the information was surprising and made you wonder why that person spends so much time thinking of you. This is information that was never designed for a human to see.”

    You Can Now Edit Your Cheesy Facebook “Look Back” Video — Slate
    Facebook’s look back videos were poignant and nostalgic, but sometimes the algorithms were missing the mark, so it exposed the ability to edit. This is what happens when we let algorithms tell our stories for us.

    How Facebook Has Changed in 10 Years — Courtesy of an Ex-Employee —Re/code
    There were plenty of retrospectives celebrating Facebook last week, but this insight from a former employee exploring the “capital-R rules” shows exactly how much the normative rules of a system evolve in the span of ten short years. “No, you can’t let moms join Facebook because Facebook is for students.” to “No, you can’t allow anonymity because Facebook is built on real identity.”

    Attempting to Code the Human Brain — WSJ.com
    Facebook-backed Vicarious is teaching algorithms to imagine the shape of cows. “If you invent artificial intelligence, that’s the last invention you’ll ever have to invent.”

    As Technology Gets Better, Will Society Get Worse? — The New Yorker
    Tim Wu questions what “progress” means if it results in comforts that eventually kill us.

    Tim Berners-Lee: we need to re-decentralise the web — Wired UK
    Post-NSA, TBL warns against localized internet: “I want a web that’s open, works internationally, works as well as possible and is not nation-based.”

    #recap: Defending an Unowned Internet — Cyborgology
    Whitney Erin Boesel posted a nice recap of this Berkman talk discussing the consolidation of most of the web into corporate ownership (ex AWS). Video from the conversation is here in full.

    The post else 2.10: “Information that was never designed for a human to see” appeared first on John Battelle's Search Blog.

     
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