June 21. Lanier is a futurist, but he's a realistic one: no fluffy science fiction technological utopias are dangled here. There's this idea among some popular futurists of a "post-scarcity economy" -- that humans will become digital and upload themselves into the cloud. How this will happen seems to be explained with much hand waving, along the lines of "and then a miracle occurred." However, Lanier argues that the way we use digital technology today is not going to make everything all right in the future. In fact it's just the opposite, and something needs to change. Humans will remain human, and we will continue to have needs. Machines don't have human intelligence and cannot replace us, or be us, in the foreseeable future. They will not make us obsolete; humans are necessary for their existence.
This book was an assignment of a book group I am in, and I really didn't know what it was about except what I learned watching a video of an interview of the author. What I see as the main message upon reading the introduction is that the wealth inequality we are experiencing today is not attributable to politics and finance so much as to digital networking. The amassing of data in huge server farms results in concentration of power and wealth. He who has the biggest computer wins. When we ordinary people get "free" digital services, we pay for them with much more valuable things: freedom of choice, security, privacy. We do this voluntarily, but perhaps not consciously. We are lazy and cheap, and we are paying in unprecedented ways, ways that were not anticipated by the creators of this monster. And the author is one of those creators. I think he is trying to right the wrongs with this book.
So I'm about eleven percent in and I feel like I've gone down the rabbit hole of a brilliant mind. There are multitudes of maxims and axioms and metaphors, and I don't know which are true. It's like a stream of consciousness and the author goes all over the place with lots of arguments for how things got the way they are, what will happen if they continue on the path they're on, and, I suppose, what can and should be done to fix them. But it's complicated. It's economics, essentially, and he looks at it from so many viewpoints and offers so many explanations that my head is spinning.
A very important point is that the income inequality that we are experiencing is, he says, due to computing inequality. It's the information age. Information is the new money and whoever controls the biggest computer wins. And it's winner take all, like American Idol. The rich get richer, the poor get poorer, and the middle class disappears. The system is not sustainable, because the winners need a middle class to sustain them. He says this star system needs to be replaced by the bell curve, where the wealth is more evenly distributed; that the value of the data that the top people profit from is generated by ordinary people, who currently give it away (for small rewards, such as "free" searching and networking). Those ordinary people are the middle class. He argues they should be compensated for what they create.
There was this idealistic idea early in the digital age that information should be free. One result of that is the loss of a living for musicians and journalists, as their products became digitized and freely shared. He says the same thing could happen to heart surgeons and everyone else, given enough technological innovation. We used to worry that computers would take our jobs. At first they generated more jobs as people were needed to develop the technology and run the computers, but that is no longer the case.
June 28. I'm at page 75. The writing is becoming clearer. I knew about wealth inequality, the market crashes and recessions, the loss of jobs and the resulting shrinking of the middle class. What I didn't know was the contribution of digital networks to all that. What began with Wal-Mart, which used big data -- data that was not necessarily digital -- to gain a gigantic edge in global market, has been accelerating. The trend is accumulation of wealth and power at the top. One result has been that there's no one to blame for the losses everyone else has suffered. There are no evil schemers, just the manipulation of huge amounts of data, which is collected from all of us and used to control markets. It's all done by computers -- arm's-length and impersonal -- intended, and unintended, if you believe the author. It starts with treats for the consumer: search engines, social networking, deals and discounts. But the consumer pays by giving away data, data that has value, the accumulation of which could lead to his unemployment. (What good is a hotel discount if you can't afford to travel?)
The author was in on this trend on the ground floor. Some of his colleagues have amassed great wealth. But besides being a "quant," he's a musician and a writer. He has seen what big data has done to the recording and publishing industries. What started as an ideal of free data sharing has cost many people their livings, and he doesn't see it ending with musicians and authors. The trouble is that a middle class is needed to support the system or it will collapse. So he has an idea to restore balance. Compensate people for the value they are currently giving away.
What is different here from other theories about wealth inequality is that blame is not being laid and punishment and/or restitution are not being demanded. It is an argument that what seemed like a good idea at the time has gotten out of control. The problem isn't necessarily digital networks; it's how they are being used. If they can be used to spread wealth rather than concentrate it, a balance could be reached. I hope the people at the top are listening. Though game theory experiments have shown that natural selection weeds out the consistent defectors, I am not optimistic that the short-term thinking and greed that got us into this mess will change fast enough. The author says none of this was intentional, but someone has to have wondered if all their gains meant losses for everyone else: that it was a zero-sum game. Did they know the losers were the very people they relied upon to obtain and maintain their position at the top of the heap? Did they care? The most frustrating thing is that there is no incentive for them to change because they have a safety net -- you and me. After their risky behavior in the mortgage industry caused massive losses to the public, they were bailed out by their victims. They paid no fines and served no time. In fact, some of them are now financial experts, professors, and government advisors. THEY TOOK ALL THE PROFITS AND WE TOOK ALL OF THE RISK. This downplaying of the guilty by the author and his positive suggestions of ways to get out of the mess are more productive than anger, but the more I think about the way things got this way, the madder I get. Okay, off the soapbox and back to the hopeful message of this book. The author terms his solution the "humanistic information economy."
July 1. Just finished chapter 12 on free will. As with most discussions I've read and heard on the subject, I found it incomprehensible.
July 4. I was listening to an interview on the radio. They talked about the recovery, stock market, jobs, housing, the banking failures, the continued risky behavior of Wall Street and whether regulation (Dodd-Frank) is enough to head off another. Digital networking and big data are never mentioned in the news. Is Lanier the only person who sees this? He says regulation won't be able to keep up with Siren Servers.
July 5. Important points. The author's description of the problem: Digital Networking (Big Data) and the value of ordinary human contribution to such data increasingly being taken off the books and wealth and power being concentrated around Siren Servers. The author's term for the proposed solution: Humanistic Information Economics. The author's term for systems that support the middle class, such as unions, tenure, social programs, licenses, copyrights, etc: Levees. His description of how the digital networking economy currently works: the most successful businesses are the Siren Servers; the advertisers are the Customers; we (or the personal information we give away) are the Product.
The Sixth Interlude, at page 211 ("The Pocket Protector in the Saffron Robe"), is an amusing skeptical look at the weird combination of tech and new age in Silicon Valley. He talks about est, Gurdjieff, The Secret, The Singularity.
An important part of the recovery he proposes has to do with the economic theories of one Ted Nelson explained in Chapter 18. Nelson, whose ideas predated the information age, called the concept Xanadu, and I don't really understand it, but an important part is two-way linking, which would allow sources of data to be tracked, and compensated.
July 12. I'm nearing the end, but what a struggle it has been! The proposed solutions to the problems are as vague as the problems themselves. The thing is it's a whole cluster of interrelated systems and the relationships are in flux and it's all growing exponentially. It's the economy. You might as well explain (and predict) the weather while humans pump carbon into the atmosphere. Anyway, what's important is that technology moves much too fast for regulation to keep up. The author proposes instead finding a way to compensate ordinary people who contribute the data. That would involve ownership of digital rights, or licensing of so much of what we are currently giving away. It's an unpopular concept, but it would even the playing field, expanding rather than shrinking markets, and generating income for the middle class. How is that to be done? It's complicated and messy, and it would involve middlemen and lawyers. But basically, the argument is that a commercial solution would work better than government regulation.
In the chapters on "creepiness," regarding security, privacy, and identity, he looks at good and bad ways our data is and can be used.
July 13. Though I was tempted many times, I'm glad I didn't abandon the book. The Seventh Interlude, titled "Limits are for Mortals" is about Singularity University, and his opinions on the whole thing pretty much reflect mine. I've met three singularitarians, and their faith in salvation by technology is scary. The parallels with fundamentalist religion are obvious to everyone except them. High theater combined with cutting edge technology is not new. The premise of this movement that Lanier objects to is the mistaken idea that technology has taken on a life of its own, that its increasing rate of growth will render humans obsolete. Yet at the same time it's claimed that humans will become immortal, perhaps with accelerating medical technology, perhaps by somehow becoming digital. Lanier, who has worked on some of the technology around this, says humans are behind the acceleration and will continue to be necessary. He says, "If you structure a society on not emphasizing human agency, it's the same thing operationally as denying people clout, dignity, and self-determination."