Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

Friday, December 13, 2019

Thoughts on Britain's General Election 2019: Greed is Good

I'm disappointed but unsurprised by the U.K.'s general election. Though neither Boris Johnson nor Jeremy Corbyn (Leader of "Her Majesty's Most Loyal Opposition") are inspirational, it would be a mistake to credit or blame either man for tonight's results. Personally, I don't understand why Labour fielded a candidate who, in 2016, suffered a no confidence vote in which 172 of his 229 fellow Labour MPs opposed him, but that's another topic. Gaffes aside, we must finally admit the public's loss of faith in government's ability to advance public goods. How did we reach this miserable spot, with an out-of-touch millionaire union organizer battling an inept pro-American twat for the mantle of British leadership? I shall offer some clues. 
Voter turnout was between 50 to 75% with an average of 67%, meaning
over 1 out of every 4 British adults has lost faith in their political system,
despite having the numerical power to swing elections.
1. Surveillance Capitalism Tilts the Playing Field against Individual Autonomy and thus Shared Liberal Values

The most surveilled cities in the world are in China, U.S.A., and the U.K. In the 17th century, Cardinal Richelieu reportedly said, "If one would give me six lines written by the hand of the most honest man, I would find something in them to have him hanged." (As a European Catholic, he ought to know.) In 2006, Bruce Schneier echoed his sentiments: "Watch someone long enough, and you'll find something to arrest -- or just blackmail -- with." What, you may ask, does general surveillance have to do with general elections? 

By the time a country has achieved the capability--and insufficient political resistance--to spy on most of its citizens, a security state (aka a police state) is already in place, rendering politics more spectacle than crucible. The most effective propaganda comes from such police states, because the security apparatus controls information, an advantage promoting aligned media operations through which authorities can arrest, frame, sue, and blackmail opponents with impunity. In contrast, non-police states allow lawyers and journalists to gain information on equal footing as private and public security forces, building loyal audiences subject to independent scrutiny. Only the latter dynamic allows voters a reasonable chance at seeing honest, non-biased information. (The truth may be out there, but sometimes it hides well enough to never be found.) What happens to accountability without unbiased information? Politicians and academics, responsible for crafting legislation that protects their fellow residents, receive distorted information, guaranteeing failure. 

Government failures have consequences, of course. NSA whistleblower Edward Snowden once asked, "What do you do when the most powerful institutions in society have become the least accountable to society?" To reach a point where his question holds weight, first there has to be "a system that makes the population vulnerable for the benefit of the privileged." One path leading to certain dystopia involves a system of widespread surveillance rendering the general population dependent on biased information, allowing security and intelligence entities to manipulate voters. The British series Black Mirror, in "Waldo Moment," aptly illustrated our current path: a world where selective editing, enough spending on advertisements, and carnival barkers can make anyone honest to appear dishonest--and vice-versa. In such topsy-turvy environments, even the most earnest citizens eventually give up trying to ascertain the truth. After all, the truth is rarely profitable, whereas propaganda is inherently profitable because it is a form of marketing and therefore financed from birth. 

It was not always this way. In the pre-digital-surveillance age, if a government, billionaire, or corporation wanted to tar your reputation, invade your privacy, or remove you from influence, they'd have to physically reveal themselves (e.g., arrest, spying) or leave evidence behind (e.g., a paper trail, a frivolous lawsuit, a body). The existence of a physical trail limited abuses of power as long as lawyers and journalists had the public's credibility and thus attention. Absent such credibility, voters logically favor short-term over long-term results, an environment in which any government spending decision can appear suspicious. Worse yet, distortions tend to multiply because biased information favors groups over individuals in the same way propaganda overwhelms truth; in times of suspicion, humanity's herd instinct seeks safety in numbers, nuance be damned. Meanwhile, the intangibility of the decay caused by dishonesty accelerates entropy as people with resources try to create estuaries apart from the mainstream to better control their flow of information, a tactic that entrenches existing corruption while allowing the Establishment to slander separatists with charges of insufficient patriotism. 

In this manner, modern times have brought invisible and intertwined plagues: the diminution of the individual; the loss of faith in collective action; and greater difficulty achieving mutually-beneficial political changes. Powerful entities can seemingly be stopped only by other large powerful entities--not the ballot box or determined individuals. Within this paradigm, entities able to afford surveillance--or protection from it--can better protect their preferred people, including political players, who are often egotistical fronts distracting from or justifying previous economic and banking decisions. As such, we know about Jamal Khashoggi's murder not because of independent journalism or lawyers but because a state with surveillance and military power comparable to Saudi Arabia disclosed its investigation--presumably after it received approval from an even more powerful state. 

In a world where groups are advantaged a priori over individuals, constant surveillance means supposedly "free," democratic Britain eventually becomes fundamentally similar to so-called repressive, totalitarian China--with almost everyone lacking time, legal knowledge, and translation skills to escape a fishbowl existence where most information is controlled or provided out of context. 

[Bruce Schneier: "If we are observed in all matters, we are constantly under threat of correction, judgment, criticism, even plagiarism of our own uniqueness... Too many wrongly characterize the debate as 'security vs. privacy.' The real choice is liberty versus control."]

2. Misinformation Means Democratic Representatives are Less Effective and Less Responsive

If elites and politicians do not receive accurate information, they cannot fix or even identify existing problems, much less future ones, and the public tends to shift allegiance to the executive branch (aka the police and military), who are closer to the ground and who have the necessary technology to gather the best information. 
Meanwhile, in Singapore, a former British colony, the PM is sharing math formulas on Twitter.
There's a reason misinformation affects so-called totalitarian states less: as long as they value technology, which allows efficient tracking of tangible items, they operate from an advantageous starting point by not placing abstract ideals above concrete economic gains. The more government becomes corrupt or inefficient, the more soul-selling becomes logical under a cost-benefit analysis. 

[Meanwhile, in Scotland, where politicians are still respected and respectable: 

"I don’t pretend that every single person who voted SNP yesterday will necessarily support [Scottish] independence, but there has been a strong endorsement in this election of Scotland having a choice over our future; of not having to put up with a Conservative government we didn’t vote for and not having to accept life as a nation outside the EU." -- SNP Leader Nicola Sturgeon] 

3.  Personal Gain Trumps Collective Concern as Politicians Become Increasingly Out-of-Touch

The world's economic engine isn't as complicated as it seems. Countries that successfully provided viable alternatives to entrenched interests using immigrants, private sector competitors, and/or uncompromising political leaders (e.g., M. Thatcher) minimized self-serving corruption--as long as they improved consumer access to greater choices. Unfortunately, as technology became essential and the cost of competing in larger markets increased, traditional methods of exacting honesty from corrupt groups dissolved. As I wrote earlier, no matter how true one's outrage, power is now necessary to combat power, and too often, power tends to bargain with itself, making compromises further violating the individual. 

An additional factor explains our amoral political arena. In the post-Thatcher and post-Reagan world, elections are "winner take-all" contests, with losing districts certain to receive less or same government funding at the same time as winning districts receive more. Within countries where government is directly involved in medical care, education, and transportation, elections matter greatly in terms of employment growth and therefore economic success. Not swimming with the tide may mean economic stagnation, and as consumer debt soaks the world, the promise of a dollar means more than the promise of hope, justice, or equality. 


4. Conclusion

To summarize, as power and information consolidate and promote biased information, most people lose faith in public institutions. Consequently, voters are unable to depend on abstract ideals, and whichever candidate convinces a majority they will have more money will usually prevail--even if voters don't tend to understand inflation

Do you have enough clues to solve the mystery yet? 

© Matthew Mehdi Rafat (2019)

Bonus I: "The worst illiterate is the political illiterate. He hears nothing, sees nothing, takes no part in political life. He doesn't seem to know that the cost of living, the price of beans, of flour, of rent, of medicines all depend on political decisions. He even prides himself on his political ignorance, sticks out his chest and says he hates politics. He doesn't know that from his political non-participation comes the prostitute, the abandoned child, the robber, and, worst of all, corrupt officials." (From 1988, paraphrased, "Terra Nossa: Newsletter of Project Abraço, North Americans in Solidarity with the People of Brazil, Τόμοι 1-7") 

Bonus II: as you can see from the charts below, the British pound increased 3% relative to the US dollar once it was clear the Conservative Party would gain substantial seats. This currency increase helps the British government, which settles debt in USD, as well as British multinational corporations, which have debt denominated in US dollars. Seen one way, though British exports may become more expensive, voting Conservative or creating propaganda in favor of Conservative votes has generated a paper return of billions of pounds. 


Bonus III: Dave Chappelle, playing host of fictional show, "I Know Black People" on Comedy Central.

Chappelle: "How can black people rise and overcome?"

White Contestant: "Get out and vote." [buzz]

Chappelle: "That is incorrect, I'm afraid."


Bonus IV: re: my comment above on gender influencing the election, please see the following graph. 

Monday, March 29, 2010

Wealth Distribution

From UC Santa Cruz Professor G. William Domhoff:

http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

Wealth Concentration: As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers)

Estate Tax: Figures on inheritance tell much the same story. According to a study published by the Federal Reserve Bank of Cleveland, only 1.6% of Americans receive $100,000 or more in inheritance. Another 1.1% receive $50,000 to $100,000. On the other hand, 91.9% receive nothing (Kotlikoff & Gokhale, 2000). Thus, the attempt by ultra-conservatives to eliminate inheritance taxes -- which they always call "death taxes" for P.R. reasons -- would take a bite out of government revenues for the benefit of less than 1% of the population.

You should read the entire article (click on link above). The charts are especially fascinating.

Update: per the Federal Reserve Bulletin (September 2014, Vol 100, No 4) aka the 2013 Tri-Annual Survey of Consumer Finances from 2010 to 2013, about 1 in 5 American families earns over 100,000 USD each year.

As of 2013, if you are between 18 to 35 years old and your net worth is more than 10,400 USD, you are better off than half of all American families in your age group.  

Monday, March 15, 2010

Who's Running the Show?

From SJ Merc, Internal Affairs column, March 14, 2010:

A new report from the Fair Political Practices Commission — California's elections watchdog — mines years of campaign and lobbyist reports and turns up this nugget:

Over the past decade, 15 special-interest groups have spent more than $1 billion in an all-out bid to influence the state's affairs. They spent that money to sink ballot initiatives and boost candidates. They fed it directly to political parties' war chests. (Democrats came out slightly ahead of Republicans.) And they spent hundreds of millions wining and dining lawmakers and other state officials.

Almost a fifth of the cash came from one group: the politically powerful California Teachers Association ($211.8 million). The teachers union was followed by an affiliate of the Service Employees Union International ($107.5 million), a pharmaceutical industry group ($104.9 million) and two deep-pocketed Indian tribes ($83.6 million and $69.3 million). Rounding out the top 15 are some other big names, such as Pacific Gas & Electric, Chevron, AT&T and Philip Morris. (For the full report, go to www.fppc.ca.gov/reports/Report38104.pdf.)

So when we talk about special interests influencing state governments, remember: it's the teachers and other unions who have provided the most grease to Sacramento. Is it any wonder Sacramento provides teachers and unions with special benefits unavailable to most private sector workers? I'll end with this gem from the article:

"The conclusion is inescapable," reads the report's executive summary. "A handful of special interests have a disproportionate amount of influence on California elections and public policy."

Sunday, August 9, 2009

Money Quotes

Two interesting links (Link1 and Link2) to quotes about money--here's one that caught my eye:

"If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.” — Sir Josiah Stamp, Director, Bank of England, 1940

More here.

Tuesday, February 3, 2009

A Fun Re-Post about Money

I posted this article a long time ago, but it didn't get too many hits. That made me sad, because it's one of my favorite posts. Here's one part I thought was hilarious:

James Boswell: "In civilized society, personal merit will not serve you so much as money will. Sir, you may make the experiment. Go into the street, and give one man a lecture on morality, and another a shilling, and see which one will respect you the most."

Like Chris Rock's stand-up comedy, it's funny because there's some truth to it. (And to those who haven't seen Chris Rock in action, I highly recommend Never Scared.)

Anyway, the post with the money quotes is here.

Saturday, April 26, 2008

Two Reading Tips: Money and China

National Geographic Magazine is probably one of the most overlooked publications in the U.S. This month's (April 2008) issue focuses on China and is absolutely fantastic. In addition to the articles and pictures, there is a detailed map of modern-day China.

I also read a newer publication, Lapham's Quarterly, Vol 1, No. 2, titled, About Money. All of the articles in the Spring volume's journal are about--you guessed it--money. There are too many interesting tidbits to quote everything, but the writers include everyone from Alexis de Tocqueville to Orson Welles. I especially enjoyed the Benjamin Franklin and Jim Cramer pieces. Here are some quotes from the journal:

Thomas Jefferson: "Money, not morality, is the principle of commercial nations."

Roger Starr: "It is not the accumulation of money which is vicious, but overconsumption...[the very poor] are "dehumanized because his relative poverty deprives him of the human responsibility of choice."

Henry Ford(!): "The automobile business was not on what I would call an honest basis, to say nothing of being, from a manufacturing standpoint, on a scientific basis, but it was no worse than business in general." "How much gasoline it [a car] used was of no great moment..." (In 1922, oil was around $3.50 a barrel)

James Boswell: "In civilized society, personal merit will not serve you so much as money will. Sir, you may make the experiment. Go into the street, and give one man a lecture on morality, and another a shilling, and see which one will respect you the most."

Tocqueville: "What grips the heart most powerfully is not the peaceful possession of a precious object but the imperfectly satisfied desire to possess it and the constant fear of losing it."

Elias Cannetti: "What is that happens in an inflation? The unit of money suddenly loses its identity. The crowd it is part of starts growing and, the larger it becomes, the smaller becomes the worth of each unit...Just as one can go on counting upward to any figure, so money can be devalued to any depth... [Are you listening, Bernanke?] An inflation cancels out distinctions between men which had seemed eternal and brings together in the same inflation crowd people who before would scarcely have nodded to each other in the street."

Upton Sinclair: "The assumption [in the entertainment business] was that they would live happily ever after, though never was it shown how that miracle would be achieved, and though the divorce rate in America was continually increasing."

Andrew Carnegie: In bestowing charity, the main consideration should be to help those who will help themselves; to provide part of the means by which those who desire to improve may do so; to give who desire to use the aids by which they may rise; to assist, but rarely or never to do all. Neither the individual nor the race is improved by alms-giving. Those worthy of assistance, except in rare cases, seldom require assistance."

Sallust: "Growing love of money, and the lust for power which followed it, engendered every kind of evil. Avarice destroyed honor, integrity, and every other virtue, and instead taught men to be proud and cruel, to neglect religion, and to hold nothing too sacred to sell."

Jack Weatherford: "Compared with the physical force of the military and the spiritual authority of religion, money offered a third and completely novel way to organize society. Without regard to rank, class, or standing, anyone with the proper coin could buy a goat or a turnip, a jug of wine or a basket of fish, a parcel of land for a vineyard or a pinch of salt to flavor dinner...In the global economy that is still emerging, the power of money will supersede that of any nation, combination of nations, or international organization now in existence. The newly ascended financial elites hold no brief or loyalty for any particular country, and the third revolution in the history of money threatens to erode the value of kinship, religion, occupation, and citizenship as the defining components of civil and social life."

Tim Parks: "The real scandal of money, and particularly usury, as we have already said, is that it does not respect traditional hierarchies. The merest artisan can make a fortune and start strutting around in expensive crimson. The feudal order breaks down."