November 2nd, 2016 // 6:58 am @ Oliver DeMille
Washington’s Current Slump
(And the Solution)
Growing or Shrinking?
To pay for the national debt, including the unfunded mandates and entitlements ahead, “Uncle Sam needs more than $429,108.73 per person.”[i] To figure out how this directly impacts you, just write down how much you make a year—and multiply it by the number of years you plan to keep working. (Not a perfectly precise approach, but it will get us in the ballpark.) Then multiply $429,108 by the number of people in your family. Find the difference between the two numbers, and that’s how taxes will impact you in the years ahead.
For many Americans, the taxes in this reality are higher than the total amount of money they’ll make. Which is why politicians want to take most of it from the rich. But when they do, the wealthy find ways to move their businesses and savings abroad or into other financial vehicles—hurting jobs, investment, and making the economic struggles of average Americans even more difficult.
However we slice this, it’s a massive problem. It is already hurting almost all Americans (as seen in the Great Recession beginning in 2008, and growing ever since). Government stimulus, printing of inflationary money, and low gas prices have dampened how deeply we feel this problem right now—but these aren’t going to last forever. At some point the bubble will burst, and the economy is in for a tough time. All of us will be directly impacted.
But Washington hardly seems to notice. During elections most candidates promise real change, but it seldom materializes, at least not in positive ways. In fact, since 2008 we’ve seen a stubbornly sluggish economy. Washington puts out positive statistics each month, but most people aren’t feeling any kind of economic boom. And 90 days later Washington revises its past statistics—they are routinely much worse than originally announced.
Yet for some reason, the initial positive announcements make big headlines, while the revisions are usually buried in fine print. It’s almost as if the mainstream media is trying very hard to make the current Administration look as good as possible, and sway the election in their favor as well.
Safe and Secure
It may also be that Washington actually doesn’t notice how hard this economy is for most Americans. As “Phillip Longman recently noted in the Washington Monthly, the per capita income of Washington, D.C. in 1980 was 29 percent above the average for Americans as a whole; in 2013 that figure was 68 percent.”[ii] That’s 68 percent more! To put this in concrete terms, a person making $15 per hour would be compared to a person making $25 per hour. Or compare a person making $4000 per month to the 68% increase: $6720. Is it any wonder that Washington doesn’t feel the pinch quite so much as Joe American?
Compared to average Americans, Washington is doing a lot better. So why would they worry? For many in the nation’s capital, it must feel like time to fiddle, not worry that Rome is burning. Imagine how you’d be doing with 68 percent more money each month. (68% more of any amount seems fantastic. I’d be fiddling, too.)
Along with the struggling economy—largely a result of Washington’s increasing mountain of red tape that is choking American businesses—the U.S. is continuing to spend a lot of money on national security programs that aren’t working. “Since 9/11,” an investigation in The Atlantic reported, “the United States has spent $1 trillion to protect the homeland. The new security state is vast—and growing.” But “are we any safer?”[iii]
The experts answer that yes, we are a bit safer in some ways.[iv] But not even close to $1 trillion worth—and besides, we are less safe in a number of other ways.[v] Less safe, in fact, than we were when Bush won his second term or Obama was elected the first and second times. Specifically, Al-Qaeda and the Taliban are still around, Iraq is a mess, ISIS is growing, our privacy is dwindling (along with our spending power), and the threats from places like Russia, China, North Korea and Iran have actually increased, along with the growing dangers of cyber and other non-traditional attacks (chemical, biological, lone wolf, dirty bomb, etc.).
It seems the more we spend, the more vulnerable we are. Our lack of a coherent and widely-supported national grand strategy has made things significantly worse over the past decade.
As if this weren’t enough, we are also now facing a growing threat of serious economic conflict with China, which is buying up contracts and supply chains for natural resources around the world. Unlike U.S. firms that work largely on their own capital or that borrowed from banks or investors, all governed by boards and shareholders, Chinese firms are managed by a central government approach—even more controlling than British mercantilism in the 18th and 19th centuries.
We’re right not to follow the Chinese model, since central controls undermine freedom. But the differences between our system and theirs skew the way economic statistics are reported, meaning that few Americans realize how bad our economic outlook really is. For example, in the latest Fortune 100 rankings of the biggest businesses in the world, the U.S. has 38 companies on the list, all of which are private.[vi] In contrast, China has 18 companies on the list; 16 of these are owned by the government.[vii] Combine the totals of these 16 businesses, and the Chinese government owns by far the biggest business in the world.[viii] Nobody else is even close.
Here’s another way to look at this: of the biggest 5 businesses in the world, one (Walmart) is a U.S. company and the next three are Chinese—all owned by the government in Beijing.[ix] The combined revenues of these three Chinese businesses are double that of Walmart, and over three times the revenue of the fifth biggest company in the world, Royal Dutch Shell oil.[x]
In comparison, Europe is home to 29 of the biggest 100 businesses in the world, 28 of which are private, while 1 is owned by the government of France.[xi] Furthermore, Japan, South Korea, Taiwan and Singapore are home to a total of 11 of the 100, and all are privately owned.[xii] Together Russia, Brazil and Mexico are home to 4 of the world’s largest 100 businesses; 1 (in Russia) is private and the other 3 are government owned (one from each of these nations on the last list).[xiii]
In short, of the world’s biggest 100 businesses and largest producers of global wealth and prosperity, 20 are owned by a government, 16 of them by one single government: China. Yet Washington keeps hobbling American entrepreneurs and investors with increasing regulations that stifle our ability to compete. Yes, China’s economy has slowed a bit this year, but their growth is still way ahead of the United States—and their slowdown will likely mean they’re less willing to keep carrying our debt load (very bad news for our economy).
It’s time for Washington to take note of our gloomy economic outlook, addiction to government overspending and growing debt, and a very expensive and bureaucratic national security apparatus that is more hat than cattle—as the saying goes in Texas. For this vitally important change to happen, we’ve got to stop expecting so much from the White House and demand a lot more from Congress. Until this occurs, we will keep declining in an “attack business, as usual” approach to the economy.
Forward or Back
All this that I have described here is a recipe for major American decline. And it is our current path.
With all that said, I’m an optimist. I believe the best years for America and the world are still ahead. But how soon we initiate those “better years” largely depends on the Congressional elections in 2016. We need a Congress that will finally stand up for the American people (against the executive and judicial branches) and get serious about creating a truly free, booming economy.
We haven’t had such a Congress for decades—and we’ve been in decline ever since that trend started. Such forces of decline are now snowballing, meaning that the actions of the next Congress will largely determine America’s trajectory for the 21st century.
[i] Harry S. Dent, Boom & Bust, July 2016
[ii] Cited in The Atlantic, September 2016, p. 102
[iii] Steven Brill, “Are We Any Safer?” The Atlantic, September 2016
[v] See ibid.
[vi] See Fortune, August 1, 2016, 110-119
July 22nd, 2016 // 2:49 am @ Oliver DeMille
Loyalties and Addictions
Many nations, and the global market as a whole, are moving from the Loyal Economy to an On-Demand Economy. (See Klaus Schwab, The Fourth Industrial Revolution, 2016, 72) This is just what it sounds like. Our societal focus is increasingly on what we want–not what we need, should want, or have already agreed to.
This shift is impacting work, business, management, leadership, professions, and even families, churches and communities in massive ways. It has already taken a significant toll on relationships in our modern society. Indeed, almost no part of human life has remained untouched by this momentous change.
Just think of all the ways damage can be caused by a shift away from loyalty, and changed to whatever someone wants instead, and you’ve got a pretty good indication of the problem. For example, as a society we have historically been known for being loyal customers—we either love or hate the Yankees, Cowboys, Lakers, etc., and many people have traditionally been very passionate about Ford or Chevy, West Coast or East Coast, City or Farm, New York Times or Wall Street Journal, Prada or Gucci, and so on.
As for Republican and Democrat, these attachments were often multi-generational, and as zealously maintained as one’s religion. For a number of people, these labels (GOP or Democrat) defined “who they really were as people” more than any other feature.
But in the Digital Age we’re losing many of these connections. A lot of people now switch allegiance to sports team based on how the best clubs are playing this season, and we change “favorite” recording artists or television shows almost as often as we change our socks nowadays. We press “Like” one day, and don’t press it the next. Just follow the Twittersphere—changing loyalties is new a national hobby. Or addiction.
With the endless options of the Internet constantly streaming in front of us, it’s not surprising that many customers—most customers in fact—consistently try out new options. Why not? Maybe the next one will be better.
The same is true of many companies. It used to be that good employees were given numbered pins each year or decade—to show how long they’d been at the company. The ideal was once to work your whole life with one organization, move up the ranks a little or a lot, and retire in the same company and town where you started your first job. The whole company threw a party, and you were presented with a gold watch, an engraved silver pen, or another memento of your long-term loyalty.
Today few companies exhibit such loyalty. Some, in fact, routinely purge upper-level management in order to replace more expensive employees with cheaper, younger models who are decades from earning a pension. The laws have made it much easier to carry your retirement savings with you from company to company, and a lot of people are constantly on the lookout for a better job elsewhere. There are popular apps dedicated to this habit.
Given today’s technology, and the nimbleness big organizations must somehow try to exhibit in order to remain relevant, such changes aren’t surprising. In fact, they may simply be the new way of things, the new normal. The old is always being replaced with the new. This week. In fact, in the news cycle Monday’s “crises” and “tragedies” often go unmentioned by Thursday.
Thus it isn’t shocking that our political leanings are going through an era of upheaval as well. During modern periods of economic and cultural stability, a majority of voters stick with the parties. Whether you like this approach or not, it’s usually the reality. Such majorities may be “silent” most of the time, but on election day they vote like the experts knew they would. They toe the party line.
Parties or Menus
We have seen this kind of stability erode a great deal since 2006. The iconic memory of 9/11, followed by the failure to find weapons of mass destruction in Iraq or win the wars in Iraq or Afghanistan easily and quickly, threw the electorate for a loop, and the Great Recession that followed moved us decisively away from political stability—at least for a while. China, Russia, the Middle East, North Korea, fluctuating prices, an economy that never seems to recover, and so many other things contribute to a growing sense of chaos, and of things getting worse.
Indeed, elections seem to get crazier and crazier. Predictions by the top experts, and the masses of talking heads, are now routinely wrong.
This isn’t driven by a cycle, however, meaning that we can’t chalk it all up to “a phase” the nation is going through before it reverts back to its traditional, normal behaviors. Cycles and trends do sometimes explain things that happen, but this time something more is going on. The rise of nearly-ubiquitious digital mobility is still in its infancy, and it is quickly restructuring politics (along with marriage, family, community, education, career, business, the economy, etc.).
Voters are less and less likely to be Loyalty Voters, emotionally attached to one party that stands for their culture, their beliefs, their family traditions. Indeed, in a world where more and more people are routinely questioning their birth culture and family traditions, they’re not likely to let loyalties based on these things get in the way of change.
Specifically, we are entering a Pragmatic Era in politics, where people want on-demand government. They want a menu of options to choose from, not a political party and its bureaucracy. They don’t really want to choose between candidates. They want a little of what one candidate has, but without the rest of his ideas. They want some of what another candidate promotes, minus his personal views, or his stand on [fill in the blank…]. They like what they hear from one candidate on one day, but disagree with what she says the next.
It’s not so much a targeted electorate where the candidates try to win over the biggest special interests—like it has been for the past two decades. What’s emerging now is, to repeat, a growing clamor for on-demand politics. Voters want to unbundle government. They want to be able to select “yes” items and “no” items from every candidate running for high office.
In other words, they want Washington to live in the Digital Age. They want to directly email—or, better still, text—presidential candidates and have an on-going dialogue with them, and then continue the dialogue after the president is elected.
“I liked your speech yesterday at Georgetown, except for the part on naval upgrading. What actually needs to happen is…”
Moreover, they want the President to answer their email.
“Thanks, Amy. I see your point. I’m meeting with the Joint Chiefs later today and I’m going to tell them your recommendation—and order them to do it. They really need it. Good thing you’re on our side and sent me that email.”
Today’s voters want the government to respond the way Amazon does. Immediately. In fact, they want to be able to sign up for the President’s Prime service—free answers within the hour, and nearly-immediate government implementation of whatever you tell the Oval Office to do.
“Get your policy implemented by Tuesday at 8 p.m., if you order it in the next 8 hours and 41 minutes. To get it by Monday at 8 p.m., pay an extra $3.99 and click here…”
As a result of this shift in voter expectations from their government (and the fact that government is still stuck in the 60s–or maybe the 70s–ways of doing things), hardly anyone is truly happy with any election anymore. Presidents Bush and Obama may well be the last loyalty-backed presidents. Indeed, barring a major military threat that unites the nation against a common enemy and brings back a loyalistic approach, most future presidents may well be one-termers.
That’s worth repeating. We may be entering an epoch of one-term presidencies. We’ve already seen the voters moving this way with their seeming schizophrenia in presidential versus Congressional elections. They routinely put one party’s candidate in the White House and simultaneously fill the Congress with the opposing party.
Again, what the voters really want is a truly on-demand system, where they can elect national leaders and direct their actions issue by issue, “no” on this, “yes” on that—preferably with a click of their computer—er, smartphone. This is leading in the direction of more democracy, specifically a more democratic system built around online voting. And, honestly, most modern Americans see this idea as excellent, obvious, and overdue.
In response, I have two words:
If you have studied them in depth, you know exactly what I mean.
But most people haven’t.
And that means we’re in for a wild political ride just ahead. It might contain a series of one-termer presidents (the nation swinging pendulum-like to and fro, then back again, over and over), a serious party shakeup with a new dominant national political party (or two), or it might be something even more surprising.
Whatever is coming, there is a widespread sense that it’s big. And we don’t even have Steve Jobs to walk out on a black stage in his black t-shirt and announce the future. If he were still around, he’d tell us to hold on to our hats, because this flight into the Era of populism, globalism, voter pragmatism, and digital-age on-demand revolution is just beginning. And the only thing we know for sure is that it’s going to get bumpy.
(Solution: It’s more important than ever for regular people to deeply study the core principles of freedom! The politicians and “experts” aren’t going to fix this for us—they’re the ones piloting the current chaos. For a beginning reading list of core freedom principles—and audios to go with each— join Black Belt in Freedom)
June 8th, 2016 // 12:08 am @ Oliver DeMille
Washington’s “Grin and Bear It” Message About an Economy that’s Still Struggling
The Need/Desire Question
In a 1927 issue of Harvard Business Review Paul Mazur of Lehman Brothers wrote the following prescription for the nation: “We must shift America from a needs to a desires culture.” How? “People must be trained to desire, to want new things, even before the old have been entirely consumed. We must shape a new mentality in America. Man’s desires must overshadow his needs.” (Cited in The Happiness Equation by Neil Pasricha, p. 78.)
What a thing to say! And it has happened, just as Mazur recommended. But in the process, something else happened as well. Not only were people convinced to want more and newer things, but government got caught up in the same quest. And people began desiring many more and new things from government as well. This changed our entire culture.
More recently, President Obama has assured the nation that a slow growth economy is the new normal. But is this good news? Or very bad news masked by a smile? Truth: it’s certainly not good news. (See the new report: “The World is Flat: Surviving Slow Growth” in the March/April issue of Foreign Affairs)
But before we address this, let’s take a little quiz. Just for fun.
Messages and Meanings
The following quote is about what nation?
(1) “_____________ will not be able to grow its economy…without…privatizing state-owned companies, [and] loosening regulations…”
Or consider this:
(2) “It may have…an undervalued currency, a debt-to-GDP ratio of 250 percent, and an average annual GDP growth rate over the last decade of less than 1 percent…. [but] Life expectancy is among the highest in the world; crime rates are among the lowest. The…people enjoy excellent health care and education.”
(3) “Middle-class wages stopped rising more than 30 years ago, but…low interest rates…and easy credit obscured the problem, allowing people to bridge the gap between their stagnant incomes and their spending.” How? By going into massive debt.
What is most interesting to me about all three of these quotes is how applicable they are to the United States today. Just re-read item 1 above. It could be a very realistic (and important) “To Do” list for Washington in 2016. Yet it was written about today’s Russia under Putin. (Foreign Affairs, May/June 2016, p. 20)
Still, Washington does need to heed its message:
- privatize state-owned companies that are a drain on taxpayers and gum up the free market
- loosen regulations that are killing small business and sending investment capital to other nations
Item 2 above could also seem to be about the United States, but in fact it describes today’s Japan: “It may have…an undervalued currency, a debt-to-GDP ratio of 250 percent, and an average annual GDP growth rate over the last decade of less than 1 percent…. [but] Life expectancy is among the highest in the world; crime rates are among the lowest. The…people enjoy excellent health care and education.” (Foreign Affairs, March/April 2016, p. 50)
The intended message here is clear: “If the people have good health care, education, and a stable economy, everything is good. A growth economy isn’t necessary.”
Starts and Stops
In fact, in the United States, “Middle-class wages stopped rising more than 30 years ago, but…low interest rates…and easy credit obscured the problem, allowing people to bridge the gap between their stagnant incomes and their spending.” (Ibid., pp. 50-51)
But how have Americans masked falling wages? The answer is illuminating:
- By going into massive mortgage debt (eventually leading to the housing bubble crash and the Great Recession).
- By using credit cards, car loans, student loans and building up major consumer debt. The average U.S. household has over 97 thousand dollars of debt and growing. (The Motley Fool, January 2015)
- By more than doubling the amount of work they do, with both parents typically now in the full-time workforce, instead of just one breadwinner.
- By working longer hours. The average workweek in the United States is now 46.7 hours, not the 1950s model of 40 hours and a crisp 9-5 workday. (USA Today: Modern Woman, Fall/Winter 2015) Over the course of a month, that’s an extra 29 hours—almost an extra workday every week compared to American workers of the 1950s.
- By depending on increasing amounts of government support, including “free” public school education, “free” health care for those who qualify, and a number of even more direct government programs and assistance.
In all this, according to Gallup, less than 20 percent of U.S. workers love their job. Around 80 percent are in jobs they hate, dislike, or feel less than passionate about. Moreover, most Americans don’t believe that their current job will ever get them ahead financially. They’re just barely paying the bills—if that.
Still, the current message from Washington and labor experts is that things are fine, that the economy has improved under president Obama’s leadership, and that we should be grateful. Most people won’t see financial increases anytime soon, “but don’t sweat it.” Like people in Japan, we are assured that we should just be happy for general stability and get used to a stagnant economy.
Fewer jobs, more college-grads who are unemployed or (underemployed) and living with their parents, more three-generation households, falling home values, rising costs of food and necessities—these are the new normal. “And it’s okay,” Washington assures us. “If things get really bad, there are more government programs than ever to help you make ends meet.”
Don’t worry, be happy.
Regulations or Solutions
“Don’t desire so much anymore,” we’re told. “Make do with less. Except when it comes to big government. We’ll give you more of that!”
But how does this message from today’s Washington jive with the reality? Truth: “An economy that grows at one percent doubles its average income approximately every 70 years, whereas an economy that grows at three percent doubles its average income about every 23 years—which, over time, makes a big difference in people’s lives.” (Foreign Affairs, March/April 2016, p. 42)
Factor inflation into these numbers—on the basics like food, housing, education, and transportation—and one percent growth means the average household falls further behind each and every month. At three to four percent growth, in contrast, like the overall average from 1945-2005 in the United States, families can improve their standard of living over time—and even help their kids do better than themselves.
Right now this level of growth is found mostly in Asia, certainly not in North America or Europe. Thus the increasing American realization that our children and grandchildren are likely to be worse off than we are, while their Chinese counterparts will probably experience upgraded lifestyles and standards of living in the decades ahead.
But this isn’t a static reality. It is based on the current policies and agendas of Washington. These can be changed. For starters, just adopt the suggestions Westerners often give to Russia, as outlined above:
- reduce/remove numerous government regulations that are killing small businesses and driving investment capital and high-growth corporations—and jobs—to other nations
- stop federal overspending in so many government agencies by simply cutting their budgets—significantly—to spark increased investment and business growth
Just these two changes would significantly reboot the U.S. economy.
Americans can become a more frugal and a resilient people once again, no doubt. But they would rather be a more innovative and entrepreneurial people—and they have proven that they are incredibly good at it—if government will just cut away the red tape and let free enterprise thrive again.
May 19th, 2016 // 8:19 am @ Oliver DeMille
We need to start.
First, it is clear to almost everyone that the Drone Revolution has drastically changed the world—probably in ways that we can’t really undo. Whatever other functions they’ll eventually fulfill, drones are the ultimate war machine. They can be programmed to do things unimagined in earlier wars, like search out specific people from certain races, religions, viewpoints, business or educational backgrounds, etc.
They can be programmed to target a specific person. And all his/her friends. Everyone he/she loves. Those who agree with him/her on political issues. Governments can use drones on their own people, as well as in battle.
Very few people are taking this very seriously. On the one hand, it’s so potentially monstrous that we don’t like to think about it. Imagine drone technology in the hands of a Stalin, a Hitler, a Nero, Caligula or Mao, Saddam Hussein or an ISIS sympathizer in your neighborhood. If history has taught us anything, it’s that bad guys do sometimes rise to great power.
It will happen again, and drone tech combined with computing power is a recipe for disaster.
On the other hand, if we did want to stop it, what would we do? Most people believe it’s a fait accompli. No chance of turning it around. They’re probably right.
Second, the Crowdsourcing Revolution isn’t over—it’s just beginning. It has largely put the newspaper industry on the ropes, and the book industry is also now under the gun as Amazon grows. In fact, many brick and mortar malls are increasingly empty as Internet sales on many types of products and services soar. Education at all levels is facing serious competition from free online learning sources, and big swaths of the health care sector are being crowdsourced as well.
The good side of crowdsourcing makes a lot of things less expensive, easier to find, and quicker to obtain (or learn). The downside is that the large companies that control the data have algorithms that can influence us in ways we never imagined. For example, a man texts his wife to find out where a certain kind of cereal is in the pantry, and within minutes his smartphone chimes and offers him a coupon for the same cereal—from the supermarket closest to his home. Or if he texted from the office, it lists the grocery store nearest to his work.
This kind of data-mine-marketing is becoming a commonplace experience for those who use certain apps, and while it might feel a bit creepy at first, over time people get used to it—and even grow to expect it. Very Minority Report. How much governments and private organizations are using this kind of tech is unclear, but it’s growing. Add personal location tracking technology to the mix, and we really are living in a surveillance state.
Third, there’s a new buzzword floating around in economic circles: “Crowd-Based Capitalism.” The idea is that in the emerging 21st Century economy we’re evolving a whole new economic model. Not socialism. Not capitalism. Certainly not free enterprise. A new approach. As one book from MIT put it, we’re moving into a “Sharing Economy,” where “the end of employment” is being replaced with “the rise of crowd-based capitalism.”
The idea that employment as we’ve known it for the last six decades is increasingly outdated. For example, in the May 2016 issue of The Atlantic an article showed how one couple used up their entire life and retirement savings—and the entire life savings of the husband’s elderly parents—to put their two daughters through college. The idea of college training being essential is now being taken to incredible levels: The savings of two couples wiped out, just so their offspring could graduate with a degree—in an economy that doesn’t value degrees like it used to. (See “My Secret Shame,” The Atlantic, May 2016)
A truly new economy is emerging, but most people haven’t realized it yet. They’re still caught in the old—and paying for it in tragic ways.
Another example: When 2016 presidential candidate Ted Cruz said the following, “The less government, the more freedom. The fewer bureaucrats, the more prosperity. And there are bureaucrats in Washington right now who are killing jobs…”, the response was immediate. Two professors, one from Yale and the other from Berkeley, replied that the opposite is true: The bigger the government, the more freedom, and the bigger the bureaucracy, the more prosperity. (“Making America Great Again,” Foreign Affairs, May/June 2016)
A lot of people actually believe them.
But reality is still reality. Crowd-based capitalism means more government, and this isn’t the path to a great economy. The thing that is actually rising to replace the 1945-2008 era of employment it is a reboot of entrepreneurship and small business ventures.
The new economy can go in one of two directions:
- Government reduces the amount of anti-business and job-stifling regulations, and spurs a major entrepreneurial boom. This will create a lot more jobs, opportunities, and incentives for increased global investment in the U.S. economy.
- Government keeps increasing business-stifling regulations and takes the profits from businesses (big and small) to create a “sharing economy.” This will create a much higher rate of dependency on government welfare and state programs, reduce the number of people fully employed (making enough to live in the middle or upper class), and drive investment to other nations.
How the so-called “sharing economy” differs from socialism is actually academic. Yes, on paper it has a somewhat different structure than Marxian socialism. But for the regular people it’s going to feel pretty much the same. A few wealthy and powerful elites at the top, a small middle class of managers and professionals who work mostly for the elites, and a burgeoning underclass living largely off government programs.
Two books* on this topic are: (1) The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism by Arun Sundrarajan, and (2) Saving Capitalism: For the Many, Not the Few by Robert Reich.
For the other side of the argument—why freedom and free enterprise are the real answer—see my latest book, entitled Freedom Matters.
Middle America is still experiencing a serious economic struggle. Things are getting worse, not better. As one report on the heartland put it: “On every sign, in every window, read the vague and anxious urgings…Remember the Unborn; …Don’t Text; Don’t Litter; Buy My Tomatoes (Local!); Let Us Filter Your Water; We Can Help With Your Bankruptcy. Then bigger gas stations sprawled on crossroad corners, unoccupied storefronts…another consignment store.” (“The Country Will Bring Us No Peace,” Esquire, May 2016)
As an ad for Shinola products reminds us: “There’s a funny thing that happens when you build factories in this country. It’s called jobs.” We haven’t seen very many factories built here for a long time. Crowd-based capitalism isn’t a solution.
Together, these three changes in our world are a very big deal:
- The Drone Revolution
- The Crowd-Sourcing Revolution
- The Post-Employment Economy
If you have more ideas on these important developments, share them. If not, learn more about them.
The future can be determined by a few elites who think about such things, or by all of us. The more regular people engage such important topics, the more influence we’re likely to have.
The truth is, we’ve forgotten Watergate and Kent State. (See “The Cold Open,” Esquire, May 2016) We’ve forgotten Nixon and that the 2000 presidential election was decided by the intervention of the Supreme Court. (Ibid.) We’ve forgotten a lot of things.
As one report put it: “We’ve forgotten how easily we can be lied to.” (Ibid.) If we let them, Washington and the media will just tell us what the elites want us to know—and think.
March 31st, 2015 // 5:57 am @ Oliver DeMille
(Transportation without Representation)
It’s a big thing in the print media, right now. It shows up in article after article. Where do property rights end and airspace rights begin? When the jet planes or smaller Cessna’s were flying above at 21,000 feet or even 900 feet, most people didn’t care if they went directly over one’s property.
But what happens in the coming Drone Era when drones fly 10 or 20 feet above your backyard on their way to deliver a book, a box of peaches, or toilet paper to your neighbors? (Popular Science, January 2015, page 71) Is that a violation of your property? Or your privacy? Certainly, if they run into your tree or hit your power line, you’re going to call it a bit intrusive, but what if they just fly past?
And, as more people are asking, how can you tell if they are simply delivering the morning paper or taking video of your family as they fly by? Or both? And who owns that drone that will be flying past, anyway? Amazon? WalMart? The government? Which government—state, local, federal? Or a private individual, like your teenage daughter’s stalker who is hoping to catch a glimpse of her in a swimsuit?
Sound creepy? A lot of people think so. In fact, Audi has taken advantage of this rising realization that drones are going to be part of our lives and made a commercial—a “horror” commercial, if there is even such a genre. Here’s how it unfolds:
A group of business people are standing in a lobby, waiting to go to the parking lot. A company spokesman tells them to act normal, “don’t run.” We all wonder what he means. Then the crowd leaves the building and we see the menace: a fleet of drones hovering above the parking lot like attackers in Hitchcock’s classic horror film “The Birds.”
“Stay calm,” everyone is told. But, of course, they all run away instead—sprinting for their cars, briefcases and handbags with coattails flapping in the wind as they go. There is screaming, drones dart down at the people like fighters on a sci-fi movie; everyone panics.
Except one guy. He quickly but calmly opens the door to his car, which just happens to be an Audi, and gets in. He tells the car computer to plot him a course to what seems to be his off-the-grid getaway—a cabin by the lake.
As he drives, the car is pursued by attacking drones, targeting it like an army of invading Cylons, or like X-wings racing along the surface of the Death Star. “The force, Luke. The force…”
But the Audi evades them, causing two of them to crash into each other. And “Luke” races off to safety. The voice in the commercial tells us that some technology is very helpful—no need to be afraid. If technology attacks, other, better technology will help us fight back.
It’s funny. It’s catchy. And it hits on a theme that is all too real for many people: Do we really want drones invading our personal airspace, every few minutes, all day long? Is there anything we can do to stop it? Or is it just a fait accompli?
Big Brother is Coming?
For decades, Hollywood has sold the dangers of technology gone wrong. The huge, awkward “communicators” of 1970s Star Trek have become a reality; in fact we now have phones much tinier than those once imagined on screen. On the one hand, technology is fascinating, and interesting to us all. On the other, are there real threats? Could fleets of robots be flying past our homes every day, every hour, without our permission? Answer: “Yes. Absolutely.”
Is this just “A Happy March to the Future” or should we be sounding the alarm, Paul Revere-like: “Big Brother is Coming”? Is it “A Better World!” or are we facing a major case of “Transportation without Representation!”?
Will the government be the problem in the Drone Era (sending its drones to spy on its own citizens), or will it be the solution (protecting us from private drone infringements)? Here are three thoughts on this:
- 13% of those polled by The Atlantic believe that within ten years 75% or more of Americans will own a personal drone. (The Atlantic, November 2014, page 84)
- Instead of checking your bags and paying the extra fees, travelers might be able to ship their luggage directly via their personal drone—the bags will be waiting for you at your hotel’s front desk. Nice.
- From an article in Popular Science: “Humphreys [director of the Radionavigation Laboratory at the University of Texas] thinks regular Joes will want to defend their privacy too [just like governments and corporations do].” Humphreys said: “I have a sense that a shotgun is going to be first thing they’ll grab…” (op cit., Popular Science) Joe Biden will prefer a double-barreled shotgun, no doubt.
But just like in Biden’s neighborhood, in many places shooting within city limits or populated areas is illegal. And shooting the drone itself is illegal as well. (Ibid.)
Behind the Curtain
So, what about your property and privacy rights? There are a lot of questions here. If the government considers a foreign drone flying over U.S. airspace a breach of national security, how can it logically argue that a drone flying over your private property doesn’t reduce your rights—especially if it is taking pictures or shooting video?
But make no mistake, this is exactly what governments are going to argue. If the water and mineral rights for your property are separate from land ownership, for example, why would airspace be any different?
Maybe there will be an airspace market, with special plat maps and zoning commissions, and lots of extra fees paid to attorneys—so that some people can own their own, personal airspace above their yards. Certainly the Clintons and Bushes will want to get in on this, just like they owned their own computer servers.
And, if airspace goes up for sale on the private exchange, maybe some of your neighbors—and various corporations—will want to license or own the airspace just above your yard.
In all of this, one thing seems to stand out: it’s not really the drones that are scary. Audi got it wrong. It’s the people who make the decisions. Heck, now it seems that they even own the air…
Checks and balances could help. If only the majority of voters truly believed in them anymore.
Only parents and educators have the real power to resurrect a society that truly believes in checks and balances. This is a generational battle, and if we lose it again in the current generation (like we did in the last 2), it will likely remain lost for a very long time to come.