Category Archives: Economy

Andrew Yang’s candidacy has a realistic view of America’s digital future

The eye-catcher ….

This afternoon during a town hall meeting in Bedford, New Hampshire, Andrew Yang, contender for the Democratic nomination for president, made the argument that his fellow candidates for president were not aware that the United States is in a fourth industrial revolution.  Just what is this fourth industrial revolution that Mr. Yang is referring to?

You’re in the Matrix, baby…

In his book, “The Fourth Industrial Revolution”, Klaus Schwab describes the environment spawning the revolution of technology and how it impacts work, government, and the economy:

“We have yet to grasp fully the speed and breadth of this new revolution.  Consider the unlimited possibilities of having billions of people connected by mobile devices, giving rise to unprecedented processing power, storage capabilities and knowledge access.  Or think about the staggering confluence of emerging technology breakthroughs, covering wide-ranging fields such as artificial intelligence (AI), robotics, the internet of things (IoT), autonomous vehicles, 3D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing, to name a few.  Many of these innovations are in their infancy, but they are already reaching an inflection point in their development as they build on and amplify each other in a fusion of technologies across the physical, digital, and biological worlds.

We are witnessing profound shifts across all industries, marked by the emergence of new business models, the disruption of incumbents and the reshaping of production, consumption, transportation and delivery systems.  On the societal front, a paradigm shift is underway in how we work and communicate, as well as how we express, inform, and entertain ourselves.  Equally, governments and institutions are being reshaped, as are systems of education, healthcare and transportation, among many others. New ways of using technology to change behavior and our systems of production and consumption also offer the potential for supporting the regeneration and preservation of natural environments, rather than creating hidden costs in the form of externalities.”

We have all heard the buzz terms “automation” and “AI” bandied about.  We take for granted that advanced communications bring us closer to our global neighbors, where we once occupied local space, i.e. being at home or driving thirty minutes to work, some of us now work on a daily basis with a colleague located in Mumbai, Bonn, or London.

Automation, as Mr. Yang reminded us today in Bedford, threatens to replace workers in fast food restaurants, grocery stores, and automobile plants.  But we professionals are threatened, too.  Just yesterday my employer emailed workers sharing the news of a partnership with a tech firm that uses technology that reduces the number of documents attorneys have to review.  The upside is that attorneys may have more time to apply critical thinking skills to activities that they do best: problem solve.  The down side is that we may need fewer attorneys to do certain types of work.

Change is never a factor that should be absent from our expectations

And what of agile response as part of governance?

Not only does government face policy challenges when addressing a changing labor market, government will face challenges from digital platforms capable of providing services government currently has a monopoly on.  Again, citing Mr. Schwab:

“In summary, in a world where essential public functions, social communication and personal information migrate to digital platforms, governments—in collaboration with business and civil society—need to create the rules, checks and balances to maintain justice, competitiveness, fairness, inclusive intellectual property, safety and reliability.

Two conceptual approaches exist.  In the first, everything that is not explicitly forbidden is allowed.  In the second, everything that is not explicitly allowed is forbidden.  Government must blend these approaches.”

One recent example of the challenges government could face from competing platforms is the proposal by Facebook to introduce a stablecoin. A stablecoin is a cryptocurrency that uses an asset or a reserve currency as a back up.  In other words, the asset or reserve currency can be used to as a measure of the stablecoin’s value.  Policy makers such as U.S. Representative Maxine Waters, Democrat of California, have expressed reservations that Facebook and other digital platforms that issue a cryptocurrency could pose a threat to the U.S. government’s ability to regulate currency and promote its economy.

None of the current Democratic candidates nor the incumbent president have expressed how modern financial technology and the currencies that fintech can produce may impact the U.S. economy.  In a changing economy, could a lack of experience in this area contribute to poor policy making regarding governance in the digital 21st century?

Yang so far has the knowledge to govern in a digital 21st century America …

Changes in how Americans will work over the next twenty years and the currency that they will use for exchanging commercial value will require someone who does not make policy based on an analog view of the world.  Observers of technology and government usually lament how policy never keeps up with rapid changes in technology.  Can the United States go four more years with its government’s chief executive completely unaware of how the Fourth Industrial Revolution will impact livelihoods?

Towards a political strategy of increasing black sovereignty …

How white capital spreads like a virus …

I don’t think that one need go through a winding, mundane academic discourse for why blacks in the American jurisdiction need to pursue sovereignty.  Everyday, American social culture tells blacks living in the American jurisdiction that we do not belong here.  Socially, blacks have been lumped into a generic “people of color” box, on the false pretense that non-whites share the negative effects of systemic racism; that we are all in the same boat sitting in steerage while whites enjoy the privilege of capital accumulation, access to credit, better jobs, and higher income.  America’s political left argues that this unequal treatment calls for public and social policy that should somehow put whites and non-whites in equal positions economically and politically.

Members of the Left that take this position lack an appreciation for how much time and man has not changed.  Europeans came to North America, the Caribbean, and South America under a charter from monarchs that, in a nutshell, required exploitation of the land and people found in these places.  Monarchs wanted to expand their national power and enrich their coffers in order to finance the competition they experienced between each other.  They borrowed gold from wealthy members of their respective societies and encouraged their surplus labor with promises of religious freedom, greater incomes, and landownership of their own, to help conquer these new worlds.  By these initiatives, western culture would spread and flourish with non-Europeans being either absorbed as best they could or eliminated.

Non-Europeans were never meant to be included in the governance of these new lands or in the distribution of natural resources i.e. land, minerals, etc., that accompanied conquest.  Blacks were brought to the western hemisphere as chattel slaves, the tools that would plant and harvest the tobacco and cotton plantations of the American south and the sugar plantations of the Caribbean.

And like a virus, this occupation by capital of non-white spaces continues in the form of gentrification, where generous monetary policies by America’s central bank inflated assets already held mostly by American descendants of Europeans which provided the collateral that backed the loans that were used to buy homes under stress in black neighborhoods.  Americans of European descent no longer need to use armed force to wrest land from non-whites.  Central banks now aid Europeans with capital to spread their influence.

Reparations won’t happen …

For the past two or three years, a movement of American descendants of slaves (ADOS) has been advocating for government policy that delivers on past promises by the United States government to provide slaves with land as recompense for physical bondage.  ADOS believes that providing a direct capital infusion to descendants of black American slaves is the best approach to closing the wealth gap between whites and blacks while compensating blacks for the labor stolen from them and used to build the American economy.

Politically, ADOS doesn’t have a chance.  There is no definitive support in either chamber of Congress for any reparations initiative.  The only black American in the race for the Democratic nomination for president, U.S. Senator Cory Booker, Democrat of New Jersey, has not made reparations a campaign narrative. Given his standing in the polls, he does not have the political capital to offer a policy proposal on the matter.  Without a champion in the executive or the Congress providing stewardship for policy or legislation, reparations will not happen.

The current system poses an existential threat to blacks …

After 500 years in the western hemisphere, if blacks are still fighting to close a capital gap that eliminates the buffer between blacks and devastating unemployment, homelessness, and bankruptcies, then it is time to shift paradigms and create a new political economy.  Civil rights violations stemming from race discrimination. Lack of jobs stemming from race discrimination. Poor education funding resulting from racial discrimination. These issues should be non-existent where blacks are not subject to policies and laws designed by whites for the benefit of whites.

It is time for blacks living in the American jurisdiction to pursue public policy and law that generates a parallel political economy where law, technology, and politics converge to provide blacks with a sovereignty that better ensures their survival.

Rural areas have a demand for technical skills

The Internet Innovation Association, a broadband advocacy group, citing research by National Public Radio and Harvard University, found that when it comes to training that will get rural residents further ahead economically, rural residents place a higher priority on computer and technical skills.  Twenty-five percent of respondents cited computer and technical skills followed closely behind by 24% saying that a first or more advanced degree would best help a rural resident keep or find a better job in her community.

Coming in at 17% were writing and research skills, presentation and public speaking, and skills for starting a business.

This data seems in line with the observation that the United States is moving further into an information economy.  These skills are increasingly necessary for workers seeking to make a living in an economy where extraction, production, and storage of knowledge is a process taking place more and more online.  To be a competing port of call in the information trade, rural residents will have to garner these skills on varying levels.

What should state and local law and policy makers be doing?  They should first continue to encourage deployment of infrastructure necessary for carrying additional “load”, to use an electric grid term.  With more rural residents learning computer skills, the United States will need the digital capacity that can accommodate more digital workers.  A continuously minimum regulatory infrastructure is key.  State and local governments should bear in mind that broadband infrastructure requires significant amounts of investment.

USTelecom reports that $1.6 billion has been invested in broadband since 1996, the year that the Communications Act was amended to reflect a public policy that encourages advanced communications.  This investment has paid off not only in terms of  more advanced communications infrastructure, but with the addition of edge providers such as Netflix, Facebook, and Amazon.

Law and policy makers who are sincerely mindful of the need for an economy that can accommodate demand for digital workers should always remember that investment and a light touch regulatory scheme works.