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Piketty on Capital: A Footnote

by Henry Farrell on April 5, 2014

I’m sure that there’s going to be plenty more discussion here on Thomas Piketty’s Capital in the Twenty-First Century (there’s lots of good arguments to be had, but it is every bit the major work that people say it is), but in the meantime, a correction. Dean Baker, in a somewhat grumpy review, says:

bq. Rather than continuing in this vein, I will just take one item that provides an extraordinary example of the book’s lack of attentiveness to institutional detail. In questioning his contribution to advancing technology, Piketty asks: “Did Bill [Gates] invent the computer or just the mouse?” Of course the mouse was first popularized by Apple, Microsoft’s rival. It’s a trivial issue, but it displays the lack of interest in the specifics of the institutional structure that is crucial for constructing a more egalitarian path going forward.

I’ve been seeing the Gates quote circulate a bit among left-leaning friends, very likely because of its structural similarity to a notorious claim by a rather different big sweeping economics book that precipitated a lot of derision (nb though that Gabriel Rossman, despite repeated calumny from He Who Must Not Be Named, decided in retrospect that the mistake wasn’t that big of a deal). Whichever which way, Dean’s use of the Piketty quote is unfortunately rather misleading. What Piketty actually says (p.512 of the proofs version of the book, which I assume maps on to the final text):

bq. “As for Bill Gates and Ronald Reagan, each with his own cult of personality (Did Bill invent the computer or just the mouse? Did Ronnie destroy the USSR single-handedly, or with the help of the pope?), it may be useful to recall that the US economy was much more innovative in 1950-1970 than in 1990-2010, to judge by the fact that productivity growth was nearly twice as high in the former period as in the latter, and since the United States was in both periods at the world technology frontier, this difference must be related to the pace of innovation.”

In other words, Piketty isn’t claiming that Bill Gates invented the computer, or the mouse, any more that he’s claiming that Saint Ronald went in there like Rambo with his missile launcher (with or without the help of trusty sidekick JP-II) to bring the Soviet Union to its knees. He’s engaging in sarcastic hyperbole to illustrate the ludicrous way in which popular wisdom attributes vast historical changes to the intervention of singular, godlike culture heroes. This is quite unambiguous in context, especially as Piketty has talked some pages before about Gates’ actual role (in a brief discussion of operating systems). Taken out of context, as it is in Baker’s review, it wrongly suggests that Piketty is ignorant or sloppy to a quite extraordinary degree.

Now, to be clear, I don’t think that this is deliberate dishonesty on Baker’s part. I can see how this kind of mistake can happen (I rely on notes myself when writing reviews; there but for the grace of God …). I also think that the broader point that Piketty’s book has little to say about institutions is a fair one. But Baker’s misattribution to Piketty of a bewilderingly stupid-sounding claim that Piketty obviously does not make is the kind of thing that could go viral (and already is going semi-hemi-quasi viral). Thus, I think, it’s worth pointing out that it’s just not so.

Update: Dean Baker has modified his review to say that the Gates bit was a “throwaway line,” which helps imo clarify his real disagreement.

Journalism and Astroturfing

by Henry Farrell on March 27, 2014

Back when Nick Confessore broke the Tech Central Station scandal, another journalist wrote a very good piece about the problems that you got when journalism merged into astroturfing.

bq. For years — literally years — I’ve been writing about Astroturf organizing and that trendsetting operation in the trade, DCI — home of that Johny Appleseed of the plastic and the green, Tom Synhorst. Simply put, Astroturf organizers are in the business of creating phony grassroots support, or rather the appearance of grassroots support, for this or that cause. You got the money and the cause? They’ll bring the front groups, the push-polls, the oped payola, you name it. …The secret of ‘turf is a simple one. Advertisements and paid spokesman may influence us to some degree. We hear their opinions, see them on TV and such. But because they’re paid, because they’re essentially advertisements, we also tend to tune them out, or at least bracket them off in our minds. … For years, the trendsetter in Astroturf has been DCI. And a couple days ago, if you were watching really closely, a tiny sentence changed on an out-of-the-way page on the TechCentralStation website. The sentence that read … “Tech Central Station is published by Tech Central Station, L.L.C.” now reads … “Tech Central Station is published by DCI Group, L.L.C.” It wasn’t an accident. It was because this article — ‘Meet the Press’ by Nick Confessore — was about to be published by The Washington Monthly.

That journalist was Joshua Micah Marshall of Talking Points Memo. Today, as part of its “very cool new section … which is being sponsored by the Pharmaceutical Research and Manufacturers of America,” Talking Points Memo published this piece about “the data sharing effort to cure cancer.” [click to continue…]

Anyone Remember Tech Central Station?

by Henry Farrell on March 27, 2014

Josh Marshall tells us that he has wonderful news.

bq. Today I’m really excited to announce that we’ve launched a very cool new section to our popular Idea Lab vertical called Idea Lab: Impact, which is being sponsored by the Pharmaceutical Research and Manufacturers of America. I’ve wanted to take Idea Lab in this direction for some time. Ideal Lab focuses science, cutting edge technology, the tech industry and the economics, policy and politics that surrounds those issues and sometimes on the gizmos we all use everyday. Idea Lab: Impact will have a different focus. How is science and applied technology affecting real human lives? How is it impacting people and communities living on the margins of global wealth and on the margins of the technological transformations of the 21st century – whether that’s in subsaharan Africa or Appalachia or in congested great cities of the world. Basically, how is and how can science and technology change the lives of people in their every day lives – not only with their gadgets and not only for people who command great wealth, but real world impacts for everyone.

People who’ve been blogging as long as I have may remember another website with PHrMA funding which set out to tell us about the awesome innovating power of innovative innovation, the unlamented Tech Central Station. TCS dished out money to Glenn Reynolds and other bullshit merchants in the marketplace of ideas to provide cover for a whole variety of unsalubrious corporate agendas. Josh Marshall isn’t Glenn Reynolds – the sponsorship is public and I imagine that there’ll be some quality control. But still, PhRMA’s agenda on innovation involves some very, very shitty stuff indeed. There are a whole bunch of big sleazy lobby groups on Capitol Hill, but PhRMA is arguably the sleaziest.

And in that spirit, I’d like to introduce a very cool new non-sponsored section myself, “Bullshit Lab: Impact,” focused on the very cool ways in which PhRMA lobbying is affecting real human lives and impacting people and communities living on the margins of global wealth and on the margins of the technological transformations. Except maybe losing the “impacting,” since it isn’t a verb ever seen outside corporate press releases. How, for example, is PhRMA lobbying advancing the ball on shovelling insanely demanding IP requirements into international trade agreements? What are the impactful ways in which PhRMA is impacting high drug prices? What are the cutting edge techniques in which PhRMA is pushing back on patent reform for AIDS drugs in South Africa (with the lobbying help of James Glassman, whose name devoted readers may recognize from previous episodes of sponsored hackery like, well … Tech Central Station). Feel free to treat this post’s comments sections as an opportunity to provide further examples, and unleash the real world impacts of innovative lobbying innovations!!

Update – see the comments below for responses from and debate with Josh Marshall, and this follow-up post for more discussion.

All the things I knew I didn’t know …

by Henry Farrell on March 25, 2014

This apology by former NSA head Michael Hayden to Angela Merkel is pretty interesting as apologies go.

bq. Although I’m not prepared to apologize for conducting intelligence against another nation, I am prepared to apologize for embarrassing a good friend. I am prepared to apologize for the fact we couldn’t keep whatever it was we may or may not have been doing secret and therefore put a good friend in a very difficult position. Shame on us. That’s our fault.

Hayden is very explicitly _not_ apologizing to Merkel for the US tapping her cellphone. He considers this part of the ordinary business of relations between nations; even “good friends.” He’s apologizing because the US was _caught_ doing it, hence putting Merkel in “a very difficult position.” I was in a radio debate with _Die Zeit_ editor Josef Joffe a few months ago, where he drew an analogy between this scandal and the kind of everyday stuff that you know, happens in marriages, when husbands hire private detectives to spy on their wives and makes sure that they’re not cheating and vice versa. Hayden’s apology actually goes one step further in the weirdness stakes – the cheating spouse apologizes not for having cheated, but for not having hid the affair (which he/she still resolutely refuses to confirm or deny) well enough, hence making for social awkwardness. [click to continue…]

Wonders of the Invisible World

by Henry Farrell on March 10, 2014

[Warning: Over-long ruminations and significant _True Detective_ spoilers below the fold]

Nic Pizzolato, the executive producer and writer of _True Detective_ says in interview that the show owes a lot to weird fiction writers like Thomas Ligotti and Laird Barron. I’ve no doubt that’s true. However, the show’s organizing tensions aren’t those of Ligotti, Barron and their crowd; they more closely resemble those of another and much better writer of the supernatural; Robert Aickman. [click to continue…]

Principled bigotry is still, you know, bigotry

by Henry Farrell on March 5, 2014

Conor Friedersdorf makes some remarkably wrong-headed claims in a post on gay marriage in the _Atlantic._

In America, there is plenty of homophobia, plenty of anti-gay bigotry, and plenty of people whose antagonism to gays and lesbians is rooted in hatred. Sometimes the language of religious liberty is used to justify behavior that is anything but Christ-like. But the Slate article is implicitly trafficking in its own sort of prejudice. The working assumption is that homophobia, anti-gay bigotry, and hatred are obviously what’s motivating anyone who declines to provide a service for a gay wedding. … . In [Christian] circles, there are plenty of ugly attitudes toward gays and lesbians, as well as lots of people who think gay and lesbian sex and marriage is sinful, but bear no ill will toward gays and lesbians themselves.

[click to continue…]

You may want to not just focus on the obvious questions. My gloomy prediction: it’s going to transform Europe’s debate about energy, in a largely negative direction. The current battle between environmentalists and business interests about how to deal with global warming is already heavily lopsided in favor of the business interests. Very shortly, it’s going to be a three way battle between (1) environmentalists, (2) business interests, and (3) people arguing that European security requires energy independence (many of (3) being funded by (2), which doesn’t mean that they don’t have a point). Efforts to find a quick and dirty way of escaping dependence on Russian gas are likely to focus on fracking as the obvious low cost alternative, and will ditch regulations that get in the way of hydraulic fracturing a-go-go. This, in turn, will create new and powerful business interests who have an interest in keeping the fossil fuel racket going as long as possible. Which means that Europe will scuttle backwards even more quickly from its global commitments, and from any process that might oblige it to make new ones. And then, basically, goodbye to any hope of tackling global warming in this generation or the the next, since Europe is the only major global actor plausibly willing to push for action.

There may be plausible counter-arguments to this (obviously – I’m not an energy economist). It could be, for example, that renewables can be scaled up quickly and easily enough to provide an alternative source of energy security. It could be that there’s some basic logical or factual flaw in my argument (wouldn’t be the first time). I’d really, really love to be wrong on this. But at the moment, I’m not seeing how.

Short Announcements

by Henry Farrell on March 1, 2014

(1) Three Quarks Daily is resuming its prize for best blog post in politics and social science. People should vote – there’s a decent prize – but should strongly consider posts on less well known blogs by less well known bloggers, since most of the social value of prizes like this comes from disseminating information on good writers who might otherwise not get attention. I liked this by Quinn Norton, and this piece by Xavier Marquez, myself.

(2) The Baffler has a blog and indeed has had one for a while, with good posts like this by George Scialabba. It also, obviously continues to have good articles, like this piece on Cambridge, MA and Aaron Swartz, and this takedown of Andrew Sorkin’s Dealbook. As well as other good articles that aren’t made freely available online too …

More on US hypocrisy

by Henry Farrell on February 24, 2014

The piece that Marty Finnemore and I wrote on US hypocrisy and Snowden has led to a follow up debate at Foreign Affairs. Michael A. Cohen of the Century Foundation wrote a rebuttal to our piece; Marty and I wrote a response to the rebuttal. Foreign Affairs allows us to put up a version on the WWW for six months – so here it is, for comments, disagreement etc.
[click to continue…]

The Liberal Surveillance State

by Henry Farrell on January 19, 2014

Long time readers of Sean Wilentz will remember him for greatest hits like his notorious piece on the “cutthroat, fraudulent politics that lie at the foundation of Obama’s supposedly uplifting campaign,” involving “the most outrageous deployment of racial politics since the Willie Horton ad campaign in 1988 and the most insidious since Ronald Reagan kicked off his 1980 campaign in Philadelphia, Mississippi, praising states’ rights,” or his claim that not only was Obama’s “most obvious change to liberal politics” the color of his skin, but Obama was the second coming of Jimmy Carter and a starry-eyed Russia-hugger to boot. So it’s very, very weird to see Wilentz criticizing Edward Snowden on the grounds that his “disgruntlement with Obama … was fueled by a deep disdain for progressive politics” – given his own track record on Obama’s brand of progressivism, why on earth would he believe this to be a problem?

But then the whole article – an attempted hack job on Snowden, Greenwald, Assange and the liberals who like them – is weird like that. In one sense, I can understand why the New Republic went for it – it’s perhaps the purest exercise in even~the~liberal~New Republic~ism that the magazine has published since its change in ownership. Yet it’s also so obviously intellectually shoddy and incoherently argued that you’d have thought that any half-way competent editor would have decided that no amount of contrarianism was worth the damage to the magazine’s brand. [click to continue…]

Dwarf Fortress: A Marxist Analysis

by Henry Farrell on January 7, 2014

bq. It is telling in this regard that previous versions of the game used to have an internal monetary economy, with dwarves receiving payment for labor and buying commodities collectively produced in turn. But contradictions occurred between the dwarves’ collective possession of the means of production and the commodified basis for such an economy, and it became unworkable within the game. The game’s designers have abandoned it, and its only remnant is the ability to produce coinage, fulfilling no real purpose. (Indeed, this right of monarchs only achieves true significance beyond questions of prestige in the mercantilist period of absolutism, arguably.) Trade exists, of course, as it does in all feudal societies. This takes the classically feudal form of long distance trade undertaken in dedicated seasons with definite trading partners, the trades themselves taking place at the equivalents of the yearly fair-sites of high medieval France and Italy.

With additional Durkheim and Bloch too! (via David Auerbach on Twitter)

Update: It's catching

Why TPP Counts

by Henry Farrell on December 13, 2013

Paul Krugman yesterday:

I’ve been getting a fair bit of correspondence wondering why I haven’t written about the negotiations for a Trans Pacific Partnership, which many of my correspondents and commenters regard as something both immense and sinister. The answer is that I’ve been having a hard time figuring out why this deal is especially important. … The big talk about TPP isn’t that silly. But my starting point for things like this is that most conventional barriers to trade — tariffs, import quotas, and so on — are already quite low, so that it’s hard to get big effects out of lowering them still further. The deal currently being negotiated involves only 12 countries, several of which already have free trade agreements with each other. It’s roughly, though not exactly, the TPP11 scenario analyzed by Petri et al (pdf). They’re pro-TPP, and in general pro-liberalization, yet even so they can’t get big estimates of gains from that scenario — only around 0.1 percent of GDP. And that’s with a model that includes a lot of non-standard effects.

[click to continue…]

Dead to Rights

by Henry Farrell on December 11, 2013

Jillian York has a piece in the new _Democracy_ which starts by criticizing my earlier article on tech intellectuals, before going on to say many good things of her own. As she notes:

If all you had to go by was Farrell’s piece, your image of the tech intellectual would be of a mid-to-late-career male, likely occupying the world of academia, with one foot deep in Silicon Valley. Farrell’s essay is conspicuously missing tech intellectuals of a certain stripe—namely, women. Apart from Rebecca MacKinnon, whose work is revered but whose profile was already prominent due to her prior career in journalism, Farrell fails to recognize the valuable and often-dissenting contributions made by women technology intellectuals.

… Even in areas where both men and women have something to say, men somehow crowd out the women in the popular discourse. In his piece, Farrell looks beyond pop-culture tech intellectualism and into the spaces where the dark side of technology is being debated. Evgeny Morozov is surely the best-known voice on the subject (and Farrell spends a lot of time on him). Meanwhile, only a fraction of the publicity goes to prominent women like MacKinnon (whom he mentions but doesn’t discuss) as well as emerging voices such as lawyers Marcia Hofmann and Jennifer Granick, academic Biella Coleman, and journalist Quinn Norton who offer a look at the digital threats facing the world today. When it comes to the intersection of technology and policy—the space inhabited by Larry Lessig—women like Pamela Samuelson, Susan Crawford, Latanya Sweeney, and Kate Crawford provide valuable insights through their public speaking and writing. And in the mainstream media, women like The New York Times’s Jenna Wortham, The Wall Street Journal’s Julia Angwin, and Forbes’s Kashmir Hill assume the role of public intellectual when, for example, they dissect the surveillance state or the ways in which large tech corporations track their customers. And yet when one thinks of a tech intellectual, a white male is invariably the image that comes to mind.

Jillian is absolutely right. I can make two pleas in mitigation – that the article did, acknowledge, in passing, the overwhelming white-maleness of the dominant tech intellectuals, and that I did apologize in a follow up blog post for not giving MacKinnon’s excellent book the central role it deserved. But they are at best pleas in mitigation. As an explanation – but certainly not as an excuse – I only realized after the piece had been published (and I started getting well deserved grief on Twitter) that my operating definition of a tech intellectual _was_ one which took a certain self-referential status hierarchy (in which men have tended systematically to do better than women) as a given. As a first approximation, a proper discussion would have looked at how this definition of who ‘counts’ as a tech intellectual is itself part of a tacit power dynamic. It would then have gone on to look at how this and other definitions are being contested between different groups with different definitions, and used this as a springboard for a much broader discussion, which would have included many of the women that Jillian mentions, as well as many other people too. If I’d tried to do this (and obviously, I would surely still have gotten lots of things wrong, opened myself up to useful criticism and pushback etc) I think it would have been a better and more useful article. I’m sorry that I didn’t – but I’m very glad that someone else has started this broader conversation (and done a much better job of it than I ever could have).

Tiger, Tea, Political Economy

by Henry Farrell on November 28, 2013

tigertea

The BBC has a short article on the background to Judith Kerr’s The Tiger Who Came to Tea. It quotes another children’s author, who suggests that some of the imagery stems from Kerr’s experience as a little girl whose family fled from the Nazis (tigers, like Nazis, are dangerous). This seems to me improbable – the tiger is hungry, but genial, and little Sophie embraces him. But what I’ve always liked about the book when reading it to my children is the ordinary world into which the tiger irrupts. You can tell a lot about the political economy of 1950s or 1960s middle class life in a London flat from reading it. It’s a world where the milkman still comes around every day, and the grocer has a delivery boy. But it’s also a world where a moderately hungry tiger can quickly consume all the food in the flat (the pictures suggest that the cupboard shelves are rather bare) – the grocery’s delivery boy can carry everything that he needs to in the basket mounted on the front of his bicycle, because there isn’t much to carry. Perhaps most strange from the perspective of a modern American child, there’s a limited supply of water – the tiger has drunk so much from the tap that Sophie cannot have a bath.

This isn’t nearly as strange to me, or Irish people of my generation, as I suspect it is to most middle class Americans. I grew up in a professional family, but many of the things that Americans take for granted (and, as best as I can tell from TV, novels etc, took for granted back then too) would have seemed like the most sybaritic of luxuries. Britain was somewhat better off, obviously, but not by much. David Lodge’s comic novel, Changing Places plays up some of the differences between the material standards of living in the US and Britain for comic effect, but he really doesn’t have to exaggerate much (when I was a child, we lived for a year in a flat in Darlington – much of what he describes is familiar). The life I have today would have been unimaginable to me as a child, or even a teenager. Which is all a roundabout way of getting towards saying that ordinary life in the US today, for people who are middle class or higher is a life of extraordinary material abundance, even from the perspective of other Western nations in recent memory. If you’re one of the people enjoying this life, you likely have a great deal to be grateful for. So happy Thanksgiving.

William Weaver has died

by Henry Farrell on November 20, 2013

The Guardian has an obituary here ; good translators so rarely get the attention they deserve. I knew him mostly through his translations of Italo Calvino – my Italian is (or was) just about good enough that I could begin to appreciate what an extraordinary job he did. His translations are not only lovely in themselves, but perfectly capture Calvino’s mixture of gravity and sly humour. I’ve quoted Weaver’s lovely rendition of a couple of key passages from _Citte Invisibili_ before:

Contemplating these essential landscapes, Kublai reflected on the invisible order that sustains cities, on the rules that decreed how they rise, take shape and prosper, adapting themselves to the seasons, and then how they sadden and fall in ruins. At times he thought he was on the verge of discovering a coherent, harmonious system underlying the infinite deformities and discords, but no model could stand up to comparison with the game of chess. … Now Kublai Khan no longer had to send Marco Polo on distant expeditions; he kept him playing endless games of chess. Knowledge of the empire was hidden in the pattern drawn by the angular shifts of the knight, by the diagonal passages opened by the bishop’s incursions, by the lumbering, cautious tread of the king and the humble pawn … By disembodying his conquests to reduce them to the essential, Kublai had arrived at the extreme operation: the definitive conquest, of which the empire’s multiform treasures were only illusory envelopes; it was reduced to a square of planed wood.

But Marco Polo, it turns out, understands the chessboard in a very different way.

Then Marco Polo spoke: “Your chessboard, sire, is inlaid with two woods, ebony and maple. The square on which your enlightened gaze is fixed was cut from the ring of a trunk that grew in a year of drought: you see how its fibers are arranged? Here a barely hinted knot can be made out: a bud tried to burgeon on a premature spring day, but the night’s frost forced it to desist. … Here is a thicker pore: perhaps it was once a larvum’s nest; not a woodworm, because, once born, it would have begun to dig, but a caterpillar that gnawed the leaves and was the cause of the tree’s being chosen for chopping down … This edge was scored by the woodcarver with his gouge so that it would adhere to the next square, more protruding …

[viaThe Browser]