Paul Fernhout writes: Fortune reports: "China has unseated North America as the global investment leader in financial technology, or "fintech," according to Citigroup's latest report on "digital disruption.""
Paul Fernhout writes: "An organization that advocates for professional drivers has urged New York to ban self-driving cars from the state's roads for 50 years. The Upstate Transportation Association fears that self-driving cars will eliminate thousands of jobs and damage the local economy."
Paul Fernhout writes: Hope Reese and Nick Heath at TechRepublic ask: "Internet platforms like Amazon Mechanical Turk let companies break jobs into smaller tasks and offer them to people across the globe. But, do they democratize work or exploit the disempowered?"
The article says: "Just over half of Turkers earn below the US federal minimum wage of $7.25 per hour, according to a Pew Research Center study."
The article quotes people who believe: "it will become increasingly common for computer systems to orchestrate labor".
That trend was also was the beginning of Marshall Brain's "Manna" short story...
Paul Fernhout writes: Frank Acland writes at E-Cat World that a report by Mosier-Boss, Forsley and McDaniel, released for public access by US Defense Threat Reduction Agency report on LENR, claims that it is possible to replicate the original Pons and Fleischmann effect with a certain Palladium co-deposition technique.
Paul Fernhout writes: The law firm Littler Mendelson P.C. has produced a report called "The Transformation of the Workplace Through Robotics, Artificial Intelligence, and Automation: Employment and Labor Law Issues, Solutions, and the
Legislative and Regulatory Response".
The report's introduction states: "As innovation continues to outpace legislation, the 21st Century technologies streaming into the workplace pose novel compliance challenges for employers. Rather than listing a dozen areas of employment and labor law and applying them generally to robotics, AI, and automation, this Report uniquely divides these disruptive technologies into four categories. Each category is then viewed through the lens of the most applicable employment and labor challenges and solutions."
Paul Fernhout writes: The MIT Media Lab sadly informs us: "Seymour Papert, whose ideas and inventions transformed how millions of children around the world create and learn, died Sunday, July 31, 2016 at his home in East Blue Hill, Maine. He was 88. Papert's career traversed a trio of influential movements: child development, artificial intelligence, and educational technologies. Based on his insights into children's thinking and learning, Papert recognized that computers could be used not just to deliver information and instruction, but also to empower children to experiment, explore, and express themselves. The central tenet of his Constructionist theory of learning is that people build knowledge most effectively when they are actively engaged in constructing things in the world. As early as 1968, Papert introduced the idea that computer programming and debugging can provide children a way to think about their own thinking and learn about their own learning...."
Papert created the Logo programming language. He advised the Lego Mindstorms project (named after his book) and the OLPC project. Papert's "Hard Fun" essay gets at the core of why being a techy is enjoyable. Papert's work also helped inspire our Garden Simulator as an educational microworld. How has Seymour Papert's work affected you?
Paul Fernhout writes: FarmBot is an open-source gantry-crane-style outdoor robot for tending a garden bed. The project is crowdfunding a first production run and has raised US$398,708 of their US$100,000 goal — with three days left to go. The cost is US$2,900. The onboard control system is based around a Raspberry Pi 3 computer and an Arduino Mega 2560 Microcontroller. Many of the parts are 3D printable.
Paul Fernhout writes: According to Keith Girard, writing for The Improper Magazine, "Donald Trump, the self-pronounced "law and order" candidate, stole at least seven classic rock songs used by his campaign during the GOP convention, infuriating the artists who own the rights to them."
Obviously, "stole" is a loaded word when talking about copyright infringement... Might this indicate a Trump administration could by sympathetic to reducing the scope and duration of copyright? Link to Original Source
I feel his article leaves out some fundamental political aspects of the situation like I brought together in "Beyond a Jobless Recovery: A heterodox perspective on 21st century economics"). His article of course assumes consumer demand is infinite (despite Maslow's hierarchy of needs suggesting people more to more low-cost self-actualization activities over time). It assumes that the business benefits of employing a human will always outweigh the costs for many jobs (despite strikes, lawsuits, quality, illness, turnover). It assumes humans will always have special advantages over AIs and robots. It ignores whether some aspects of the economy (like long pipelines to become a professor) are really needed or are just protectionism. It ignores the social impact of rich/poor divides on working conditions and the operation of a capitalist economy itself. It ignores the value to the worker of the intrinsic nature of the work (i.e. some people may just be less happy in service jobs compared to agriculture or manufacturing). It ignores deeper issues of rethinking work as play (like Bob Black wrote about). It also ignores (incidentally, in relation to humans vs. robots) that "comparative advantage" only applies theoretically when you have "full employment". The article jumps between proving some points with numbers and then making other points as "strong hunches" or by quoting suggestions about technological unemployment from fifty years ago (quoting Herbert Simon). His prescription is of course mostly just more "education" — which is nice job security for a professor.:-) But, within those sorts of limits, it's an excellent article which makes many good points, especially about the dynamics of economic networks as different parts of them are automated. The article has many interesting facts and figures. His points on how jobs are a mix of tasks which different near-term prospects for automation is excellent. And his point about human jobs changing as people work together with automation is well made. So, his article provides a good base for further study and/or rebuttal of the mainstream position. His article could be a good starting point for anyone writing an economic simulation, to see what really happens to economic networks based on distributing the right to consume based on perceived contribution to production as such networks undergo severe stress from automation.
Paul Fernhout writes: Mark Bittman wrote an op-ed in the New York Times suggesting a basic income as a solution to increasing automation leading to job loss. He concludes: "We have achieved a level of social equality barely imagined by progressives 50 years ago, but economic equality has gotten much worse. No one knows what the world will look like in 50 years, but if we resign ourselves to dystopia — in which capital has full control, as it nearly does now — we'll surely have one. Let's resolve to build something better. In the long run we know that we'll make the transition from capitalism to some less destructive and hopefully more just system. Why not begin that transition now? If there is going to be a global market that will further enrich capitalists, there must be guarantees that the rest of the population can at least afford housing and food. And things can be even better than that: We'll have the robots work for us."
Paul Fernhout writes: An article in the Harvard Business Review by William H. Davidow and Michael S. Malone suggests: "The "Second Economy" (the term used by economist Brian Arthur to describe the portion of the economy where computers transact business only with other computers) is upon us. It is, quite simply, the virtual economy, and one of its main byproducts is the replacement of workers with intelligent machines powered by sophisticated code.... This is why we will soon be looking at hordes of citizens of zero economic value. Figuring out how to deal with the impacts of this development will be the greatest challenge facing free market economies in this century.... Ultimately, we need a new, individualized, cultural, approach to the meaning of work and the purpose of life. Otherwise, people will find a solution — human beings always do — but it may not be the one for which we began this technological revolution."
This follows the recent Slashdot discussion of "Economists Say Newest AI Technology Destroys More Jobs Than It Creates" citing a NY Times article and other previous discussions like Humans Need Not Apply. What is most interesting to me about this HBR article is not the article itself so much as the fact that concerns about the economic implications of robotics, AI, and automation are now making it into the Harvard Business Review. These issues have been otherwise discussed by alternative economists for decades, such as in the Triple Revolution Memorandum from 1964 — even as those projections have been slow to play out, with automation's initial effect being more to hold down wages and concentrate wealth rather than to displace most workers. However, they may be reaching the point where these effects have become hard to deny despite going against mainstream theory which assumes infinite demand and broad distribution of purchasing power via wages.
As to possible solutions, there is a mention in the HBR article of using government planning by creating public works like infrastructure investments to help address the issue. There is no mention in the article of expanding the "basic income" of Social Security currently only received by older people in the USA, expanding the gift economy as represented by GNU/Linux, or improving local subsistence production using, say, 3D printing and gardening robots like Dewey of "Silent Running". So, it seems like the mainstream economics profession is starting to accept the emerging reality of this increasingly urgent issue, but is still struggling to think outside an exchange-oriented box for socioeconomic solutions. A few years ago, I collected dozens of possible good and bad solutions related to this issue. Like Davidow and Malone, I'd agree that the particular mix we end up will be a reflection of our culture. Personally, I feel that if we are heading for a technological "singularity" of some sort, we would be better off improving various aspects of our society first, since our trajectory going out of any singularity may have a lot to do with our trajectory going into it.
Paul Fernhout writes: Nick Hanauer's a billionaire who made his fortune as one of the original investors in Amazon. He suggests President Obama should restore US overtime regulations to the 1970s to boost the economy (quoted by PBS NewsHour): "In 1975, more than 65 percent of salaried American workers earned time-and-a-half pay for every hour worked over 40 hours a week. Not because capitalists back then were more generous, but because it was the law. It still is the law, except that the value of the threshold for overtime pay--the salary level at which employers are required to pay overtime--has been allowed to erode to less than the poverty line for a family of four today. Only workers earning an annual income of under $23,660 qualify for mandatory overtime. You know many people like that? Probably not. By 2013, just 11 percent of salaried workers qualified for overtime pay, according to a report published by the Economic Policy Institute. And so business owners like me have been able to make the other 89 percent of you work unlimited overtime hours for no additional pay at all.
The Obama administration could, on its own, go even further. Many millions of Americans are currently exempt from the overtime rules--teachers, federal employees, doctors, computer professionals, etc.--and corporate leaders are lobbying hard to expand "computer professional" to mean just about anybody who uses a computer. Which is almost everybody. But were the Labor Department instead to narrow these exemptions, millions more Americans would receive the overtime pay they deserve. Why, you might ask, are so many workers exempted from overtime? That's a fair question. To be truthful, I have no earthly idea why. What I can tell you is that these exemptions work out very well for your employers....
In the information economy of the 21st century, it is not capital accumulation that creates growth and prosperity, but, rather, the virtuous cycle of innovation and demand. The more innovators and entrepreneurs we have converting ideas into products and services, the higher our standard of living, and the more people who can afford to consume these products and services, the greater the incentive to innovate. Thus, the key to growth and prosperity is to fully include as many Americans as possible in our economy, both as innovators and consumers.
In plain English, the real economy is you: Raise wages, and one increases demand. Increase demand and one increases jobs, wages and innovation. The real economy is simply the interplay between consumers and businesses. On the other hand, as we've learned from the past 40 years of slow growth and record stock buybacks, not even an infinite supply of capital can persuade a CEO to hire more workers absent demand for the products and services they produce.
The twisted irony is, when you work more hours for less pay, you hurt not only yourself, you hurt the real economy by depressing wages, increasing unemployment and reducing demand and innovation. Ironically, when you earn less, and unemployment is high, it even hurts capitalists like me...."
If overtime pay is generally good for the economy, should most IT professionals really be exempt from overtime regulations?
Paul Fernhout writes: Caroline Murray reports for the Sacandaga Express: "Just this year, the Broadalbin-Perth Central School District completed Phase 1 of a plan to install high-tech security cameras in every school across the district. For the first time, high school and middle school students started off the school year with security cameras pointed at them from every direction, including hallways, staircases, and public rooms, such as the cafeteria and gymnasium. For some veteran students, the cameras feel a bit invasive. "It is like '1984' with big brother," senior Hunter Horne said while walking down the hallway.... Superintendent Stephen Tomlinson said safety is the driving force behind the technology, however, admitted student behavior also plays a role in utilizing the equipment. Tomlinson said students have rights, and he wants to respect their privacy, but their rights change when students step foot on school grounds.... Tomlinson said he already notices the culture has changed in the high school. He believes the amount of bullying and vandalism in the hallway is greatly reduced already. Gennett said faculty and teachers have peace of mind now, knowing the entire school is under surveillance. "It would be very difficult to find a location in our buildings where you can hide, or you can go, and intentionally do something that is not acceptable in our buildings," Tomlinson said. Some of the administrators view the security cameras as entertaining. Seniors Smith and Horne said certain staff members will call-out students over the loud speaker, and tell them to take off their hats."
One question not addressed in the article is whether forcing a child to submit to total one-way surveillance is a form of bullying or in some other way a vandalism of privacy or democracy? See also David Brin's "The Transparent Society" for another take on surveillance, where all the watchers are also watched.
Paul Fernhout writes: Just noticed this two-year old Atlantic article on how US Millennials (aka Generation Y) are not buying houses or cars as much as previous generations, but are buying smartphones instead and using those phones to get on-demand access to things like Zipcars or other "sharing economy" services. It says: "In 2010, adults between the ages of 21 and 34 bought just 27 percent of all new vehicles sold in America, down from the peak of 38 percent in 1985. Miles driven are down, too. Even the proportion of teenagers with a license fell, by 28 percent, between 1998 and 2008.... Just as car sales have plummeted among their age cohort, the share of young people getting their first mortgage between 2009 and 2011 is half what it was just 10 years ago, according to a Federal Reserve study.... Smartphones compete against cars for young people's big-ticket dollars, since the cost of a good phone and data plan can exceed $1,000 a year. But they also provide some of the same psychic benefits — opening new vistas and carrying us far from the physical space in which we reside.... If the Millennials are not quite a post-driving and post-owning generation, they'll almost certainly be a less-driving and less-owning generation. That could mean some tough adjustments for the economy over the next several years.... Education is the "obvious outlet for the money Millennials can spend," Perry Wong, the director of research at the Milken Institute, told us, noting that if young people invest less in physical things like houses, they'll have more to invest in themselves. "In the past, housing was the main vehicle for investment, but education is also a vehicle." In an ideas economy, up-to-date knowledge could be a more nimble and valuable asset than a house."
Of course, education via the internet or through FOSS educational simulations may not cost that much either. Also, we are also seeing the bubble on student loan borrowing nearing the bursting point, where more and more young people are deciding to bow out of the entire academic credentialing arms race given the uncertainty of a financial return on such an investment (as much as education via schools or other venues may have other non-financial benefits).
Paul Fernhout writes: ITWorld has a slideshow that begins with: "As Halloween approaches, some may be creeped out by vampires and zombies and other minor evils. But IT workers know that just a few words can carry more horror than most ordinary souls can imagine — with nightmarish results ranging from wasted IT resources to botched rollouts to failed projects. Presented for your approval: 10 short sentences that will truly make your blood run cold this Halloween."