When the #internet was just for #academics….#broadband

Democrats are wary of Facebook, Google, and Twitter. Hillary Clinton’s loss in the November 2016 elections allegedly compounded by a misinformation game played by the Russians via social media has the Democrats in Congress asking themselves if a little more transparency i.e. regulation of social media practices is necessary in order to prevent any more shenanigans from Russia.

In the net neutrality debates, Democrats and grass roots progressives have taken the position that due to their gatekeeper position, internet access providers such as AT&T, Comcast, and Verizon are in a position to negatively impact the innovative internet portal and social media services that Facebook and Google provide. Democrats argue that we don’t want to discourage the creation of the next Facebook by allowing Comcast to throttle speeds from potential upstarts or block a consumer’s access to the new Twitter. Now these members of Congress appear a bit wary of the cat that they have been snuggling up to; being scraped by the FANGs (Facebook, Amazon, Netflix, Google) is not fun.

What I find ironic is that these congressmen were no where to be found as the FANGs were busy building a business model on acquiring consumer data from the droppings that consumers leave all over the internet. This data collection didn’t impact the politicians, who thrive on political intelligence so having a master information collector or two on their donor page didn’t hurt. It wasn’t until the FANGs messed with the source of a politician’s livelihood i.e. the vote, that the FANGs fell under deeper scrutiny.

It is up to the individual to choose whether to use FANG services. I have little to no use for Facebook myself. Amazon, Google, and Netflix deliver pretty much what they promise: logistics and content. What’s amusing is that highly educated, professionals in the Congress have yet to figure out the business model that social media relies on for its survival.

I think it is best that the internet go back to what it was meant to be: a way to connect information seekers with data. The irony is that internet service providers have been providing their networks as a part of the larger data transmission scheme for over two decades but seem to be catching the most heat from congressmen that support the companies providing the most abuse.

What happens when the State abandons black Americans?

In their book, The Sovereign Individual: Mastering the Transition to the Information Age, James Dale Davidson and Lord William Rees-Mogg describe the demise of the welfare state with the political changes the information age will bring about. Those who can garner, manipulate, organize, distribute, and monetize information and use today’s digital technology to deploy this new capital from anywhere in the world will be able to achieve a level of individual sovereignty such that the protection services of the old nation-state will no longer be needed. The internet, cyberspace, will be their new jurisdiction, and with capital in the form of information, they will be able to carve out a minimized or tax-free environment in whatever physical jurisdiction they choose.

Information losers, according to Davidson and Rees-Mogg, won’t like this new world. This information-based economy will challenge their welfare state “employee” status. It is a welfare state employee status because in exchange for the “work” that they do at the polls i.e. their vote, information losers are awarded with transfer payments such as Medicaid, Medicare, food stamps, and low-income housing. As the hoarders of the new capital, information, choose lower tax jurisdictions, information losers are left holding the bag containing reduced benefits, the result of a lowered tax base.

The recent tax reform legislation passed by a GOP-led Congress and signed by President Donald Trump is a small indicator of the leverage the wealthy have, especially those who make their income as sole proprietors or partners in a business where they are now beneficiaries of a 20% reduction in the taxes they would normally pay on pass-through income. Congress and the President will now have to reduce or eliminate programs made infeasible by a $1.5 billion tax cut.

There is no guarantee that tax cut goody bags will be continually given out in the future. If the GOP loses both chambers of Congress in this year’s midterms, then Democrats will pursue a rewrite of the tax reform, or at least put on a good show effort.  I say a good show effort because the response by the wealthy will be, “Remember the two trillion dollars we have stashed overseas? How about we keep it there?”

Black Americans are not in the information age game even though blacks over-index on social media sites and, as a proportion of their population, own as many smartphones as whites and Latinos. Black Americans are under-indexed when it comes to employment in information technology. In an article for The Huffington Post, Jamal Simmons noted that black women may be able to scrape up $36,000 for a tech start-up, but white males scrape up on average $1.3 million in start-up funds.

And while blacks and Latinos continue to represent low single-digit proportions of actual STEM employees (technologists, mathematicians, engineers), there are plenty of black consumers of entertainment content on Facebook and Instagram. This content is low value. It differs from information which can be used as an input for production.

You may ask, “Don’t blacks have a right to consume entertainment?” My answer would be, “It’s not about rights to consumer content. It’s about channeling as much time and energy into mining and distributing information that creates knowledge that solves the deep well of problems in the black community.

Meanwhile, the State apparatus that blacks have disproportionately relied on for economic support and political protection is becoming bankrupt. Based on this recent tax reform, one would not sound too cynical in concluding that the GOP was in cahoots with the plot to blow it all up.  The information winners will not think twice about leaving information losers behind.

ISPs, not edge providers, reflect the reality of communications and connectivity

Within the Communications Act of 1934, Congress created the Federal Communications Commission for the purpose of regulating interstate and foreign commerce in communications. Congress intended the Commission to make available a rapid,efficient, nation-wide, and world-wide wire and radio communications network and provide that network at reasonable rates for the nation-state’s consumers. Congress wanted a nation-state, barely a hundred years into its industrial revolution and in the middle of its worst recession, to have the ability to connect all of its citizens.

The episodes of connection via a phone call were not expected to take up the 135 minutes a day that the average person spent on social media in 2017. Earlier today in an op-ed on Axios.com, Evan Spiegel wrote about the difference between social media and his communications app, Snapchat. In his words:

“The personalized newsfeed revolutionized the way people share and consume content. But let’s be honest: this came at a huge cost to facts, our minds and the entire media industry.

This is a challenging problem to solve because the obvious benefits that have driven the growth of social media – more friends! more likes! more free content! – are also the things that will undermine it in the long run.

  • New alternatives for self-expression, including services like text messaging, WhatsApp, and Snapchat are part of a shift towards using communication applications to express yourself rather than posting on social media, because communication apps are oriented around talking with your close friends, free from judgment.
  • Social media fueled “fake news” because content designed to be shared by friends is not necessarily content designed to deliver accurate information. After all, how many times have you shared something you’ve never bothered to read?”

Social media is a bulletin board that you placed on the front of your dorm room, open to a myriad of Post-It notes left by dorm mates and easily read by everyone else, is my summation of Mr Spiegel’s distinction between his service and Facebook. Snapchat; another form of private communication similar to texting or voice calls versus the barroom brawl that is social media.

As concerned as progressive congressional Democrats appear to be about Russia’s ability to use the permeability of Facebook, Twitter, and Google to allegedly upend an election, they do not appear to be in any rush to apply onerous privacy rules to social media, a business model designed for fake news.

Social media was a “god send” for the State. Social media aggregates people into groups that can be operationalized and manipulated. A lot less expensive than tapping phone lines in order to get the pulse of society. Facebook, Twitter, and Google are media outlets and as such are in a position to create messaging and target it toward certain groups. Facebook doesn’t ask “What’s on your mind” for no reason.

Some consumers want balance. They are using the ear buds to create space in the real world and don’t mind connecting where there is value in social media exchange, but they want the option of withdrawing to a position where their smartphone, at the end of the day, is merely for texting and sending/receiving voice calls.

Congress and the Commission should keeps their focus on the infrastructure aspect of communications and leave the bulletin board behavior to the kids.