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On Bigging, and Failing

Everyone loves an end-of-year top ten list, and we can pick from this Biggest Tech Lies of 2018 almost at random:

5. If we’re bigger, it will create more competition. – Everyone who runs a pseudo-monopoly

The most devastating merger of the year was AT&T and Time-Warner’s unholy union into a media machine with a telecom background operating under an FCC with seemingly no interest in policing anti-competitive practices. We still don’t know what the worst of the consequences will be, but we’ve already seen it strong-arm rival cable providers into paying more for HBO and the shut down of a beloved streaming service that wasn’t too big to fail. When AT&T argued that it needed to be bigger in order to create more competition, no one thought that would mean it just wants to plan a bunch of streaming services that will compete with each other and line AT&T’s pockets no matter which one you choose.

We can argue the legality of big companies merging with big companies until we’re blue in the face, but bigness is one of the biggest problems in the world today. The bigger companies are, the more power they acquire and the more difficult it becomes to hold them accountable. Current antitrust regulations have proven inadequate, and they are even more useless when the FTC is so bad at enforcing them.

Companies like Facebook and Twitter are too big to enforce their own policies, Amazon is too big for small businesses to compete against, and telecoms are so big they write laws prohibiting your city from building its own network. Venture capitalists now want to feel that your startup can become either accomplish the impossible feat of toppling one of these giants or that you at least have a solid plan to be acquired by one of the big boys. Bigness doesn’t create competition, it pulls everything into a black hole that’s hostile to consumers and citizens around the world.

It’s practically every problem incarnate, joined as one: Giant companies. By existential ethos, they cannot care about workers, conditions or any negative externalities of the doing of their business. Even the construct ‘big problem’ is itself a kind exacerbated by terminology. In this way, the supposed empirical challenges of capitalism should have actually been understood as a roadmap, as they have been by some, no doubt. But these roads are a leading to a fundamental weakness, a dysfunction in the system itself. It could have been that this way of organizing an economy would work if and only if monopolies and all other rule violations were avoided and all participants observed the rules for the health of the system, if not for the board itself. But the entire endeavor has been predicated instead on getting away with as much transgression as possible. “Tie it up in court for years, damn the torpedoes.” There’s some corollary with ‘Ships being safer kept in the harbor,’ but, we’ll work on that.

Image: Battle of Mobile Bay, by Louis Prang

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Elevation of Silicon Valley

The lowest point in San Jose is 13 feet below sea level and though it has its high points, I agree that the tech boom is probably done. The way in which profits are squeezed from marginal web apps has gone the way of wide brim ties for the moment, and though Musk remains a hero at the major news outlets there seems to be only shadow chasing for the big start-up fashion show funding carnival that was all the rage until the lights came on. And despite the hype, even autonomous vehicles appear to be circling back to their original question: how?

BUT… the economy is… booming? Okay, the business news will all turn negative as we reach full employment and wages go up because anything that is good for workers must be bad. The captains of cronyism continue their long-term project of undermining capitalism from within. Now they’ll have pay higher wages or else. I kid. Will the know-nothings in power begin to learn to love the tariffs as they slingshot back at US? How many socialists will take the oath of office after November? Can capitalism be crippled without putting representative democracy in traction, too? This is to say nothing of the boiling racism at the heart of every policy question from immigration to the environment to voting rights.

Okay, enough vacation. Everybody back to work.

Image: Author photo from a somewhat great height.

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Zwischenzug

A San Francisco couple challenges the Waxman-Markey climate change bill wending it’s way through congress. Yawn.

A San Francisco couple who are both lawyers for the EPA challenges the Waxman-Markey climate change bill wending it’s way through congress. Scandal.

Check out the video in question. After the scary music, they offer disclaimers about not representing the government or speaking for the president. And I can’t tell from a straight-up amateur video that these people are any more overzealous or weird than the editorial page editor of the Washington Post Kaplan Test Prep Daily. They work at the EPA, and have for many years. They have strong opinions about cap-and-trade – they think it won’t spur the urgent technological innovations and investments needed to usher in the mammoth energy transition necessary to drastically reduce carbon emissions.

At some level, I don’t care how amateurish their videos might be – which also means that at some level, I do.  But I’m sympathetic to the argument that the bill, which gives away emission permits, doesn’t do enough. The EPA has every right to make sure their employees aren’t misrepresenting official policy – precisely because what their employees say carries more weight. That being the case, I’m interested in what they think. Most of what we hear about the climate bill is how much passing it will damage the economy. You can imagine that a couple of climate change deniers who were EPA lawyers would be feted as dissidents and we, treated to a new round of cable cause celebre. Harnessing the power of n, where n is anything other than coal or petroleum, will necessarily revolutionize much what we see and do. How are we possibly going to accomplish it? Let’s argue about that for a while.