The US response to Wikileaks has been an interesting illustration of both the limits and extent of state power in an age of transnational information flows. The problem for the US has been quite straightforward. The Internet makes it more difficult for states (even powerful ones such as the US) to control information flows across their own borders and others. It is much easier than it used to be for actors to hop jurisdictions by e.g. moving a particular Internet based service from one country to another, while still making it possible for people across many countries to access the service. This makes it much harder for the US and other actors to use the traditional tools of statecraft – their jurisdiction does not extend far enough to stop the actors who they would like to stop.

However, there is a set of tools that states _can_ use to greater effect. The Internet and other networks provide some private actors with a great deal of effective transnational power. Banks that operate across multiple jurisdictions can shape financial flows between these jurisdictions. Information companies may be able to reshape flows of information in ways that advantage or disadvantage particular actors. These private actors are often large, relatively immobile, and partially dependent on state approval for their actions. They thus provide a crucial resource for states. Even if states cannot _directly_ regulate small agile actors outside their jurisdiction, they can _indirectly_ regulate them by pressganging big private actors with cross-jurisdictional reach. A few years ago, the US found itself unable to regulate Internet gambling firms which were based in Antigua and selling their services to US customers. But the US _was_ able to tell its banks that they would suffer legal and political consequences if they allowed transactions between US customers and Antiguan gambling firms, helping to drive the latter out of existence.

This is the topic of my “least cited article evah”:http://www.henryfarrell.net/annreview.pdf (PDF), where I argue that:

bq. states are not limited to direct regulation; they can use indirect means, pressing Internet service providers (ISPs) or other actors to implement state policy. For example, states might require ISPs to block their users from having access to a particular site, or to take down sites with certain kinds of content. More generally … a small group of privileged private actors can become “points of control”–states can use them to exert control over a much broader group of other private actors. This is because the former private actors control chokepoints in the information infrastructure or in other key networks of resources. They can block or control flows of data or of other valuable resources among a wide variety of other private actors. Thus, it is not always necessary for a state to exercise direct control over all the relevant private actors in a given issue area in order to be a successful regulator.

And this is exactly what the US is doing in response to Wikileaks. I have no doubt that it was US political pressure which caused Amazon to stop hosting Wikileaks, EveryDNS to break Wikileaks.org’s domain name, eBay/Paypal to stop facilitating financial transactions, Swiss Post to freeze a Wikileaks bank account (in perhaps the first instance in recorded history of a Swiss bank taking residency requirements seriously), and Mastercard and Visa to cease relations with it. This is unlikely to affect the availability of the information that Wikileaks has already leaked. But it may plausibly affect the medium and long run viability of Wikileaks as an organization. This will be a very interesting battle to watch.

Crossposted (with very slightly different text) from “The Monkey Cage”:http://www.themonkeycage.org.

I’ve been wanting to jump back into the steampunk wars and Patrick Nielsen Hayden on Cosma Shalizi on Felix Gilman (to whom many intellectual roads are beginning to lead …) gives me the opening that I was looking for. Cosma’s thesis is that we have already had a singularity.

The Singularity has happened; we call it “the industrial revolution” or “the long nineteenth century”. It was over by the close of 1918.

and says why. To which PNH adds

I hope Shalizi will forgive my quoting his entire post, but it seems to me to have resonance with certain recent arguments over steampunk. It might even hint at why SF (and fantasy!) keep returning to the “long nineteenth century” like a dog to its bone.

Which leads me to the following speculations (below the fold).
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I’ve been reading Doug Saunders’s excellent _Arrival City_ this week. Full of interesting and enlightening facts about migration, about how cities work, about international development. One page, however, brought me up short, so this is a bleg aimed at economists and especially at labour-market economists. Saunders argues (pp.88-9 for those who have a copy) that increased migration of unskilled labour will be a persistent feature in Western economies “during this decade and throughout the century” because of the demographic pressures in those ageing societies. With reproduction rates falling below 2.1 and the proportion of elderly people in the population rising, immigrants can compensate for labour shortages. “… while immigration is not a mandatory solution to labour shortages, the combination of cash-starved governments and higher demographic costs will make it the least painful and most voter-friendly solution.” He then reels off a series of labour-shortage estimates (US to require 35 million extra workers by 2030, Japan 17 million by 2050, the EU 80 million be 2050, Canada 1 million short “by the end of this decade.”)
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X-Mas is coming! For me, for some reason, that’s the season of scanning and making picture books. Last year I finished Squid and Owl. This year I got around to turning all my Haeckelcraft Victorian card images of yore into a proper book, with expanded text and some extra visual flair: Mama In Her Kerchief and I In My Madness: A Visitation of Sog-Nug-Hotep – A Truly Awful Christmas Volume.

I’ve decided to make both available for free reading on Issuu – which is where I keep Reason and Persuasion. It’s a pretty good online reader, better than the Blurb preview feature. So: click here to read all of Squid and Owl online. Here for Mama In Her Kerchief and I In My Madness.

A word of warning: I haven’t yet laid hands on a physical copy of Mama In Her Kerchief. I’ve made several books with Blurb now, so there shouldn’t be a problem. When I first made Squid and Owl there was a problem with covers curling. But Blurb was quick to send replacements.

If you aren’t reading “Glenn Greenwald”:http://www.salon.com/news/opinion/glenn_greenwald/2010/12/06/wikileaks/index.html on this, you should be. The latest turn of the screw is that “Visa have said”:http://www.bbc.co.uk/news/business-11938320 they are suspending payments. The good news is that, at least for Europe, this will take time to implement. The Wikileaks donations page is currently “here”:http://213.251.145.96/support.html

Tomorrow sees a vote in the House of Commons on the principle of whether to triple the fees charged to undergraduate students at UK universities and to completely withdraw state funding from all subjects except science, medicine and engineering. That’s the headline proposal, the reality is somewhat more complex since the changes are accompanied by a government-sponsored student loan scheme under which those who fail to secure reasonably paid jobs will not be required to pay and will eventually be forgiven their debt (so some of the cost will end up falling to the taxpayer). The other uncertainty surrounds the level of the permitted fee: government has said that it will only allow a £9000 charge if universities do certain as-yet unspecified things to widen access, but £6000 will usually be inadequate to cover costs.

Whether the changes are distributively regressive or progressive (compared to the status quo) is a matter of some controversy, but the assumption that is is progressive depends on assumptions about future government behaviour (around the adjustment of thresholds for repayment) that are perhaps optimistic. Most of the early evidence suggests that prospective students from low-income figures will be deterred from higher education by the headline figure of the debt they will face (perhaps many many times their current family income) even though the reality is not as scary as that scary scary figure. I’ve been arguing with some other philosophers on “a comments thread at Leiter”:http://leiterreports.typepad.com/blog/2010/12/yet-more-on-student-unrest-in-the-uk-over-the-attack-on-higher-education-funding.html , some of what is below recapitulates that, and some of it is a bit rantish. Apologies for that.
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At Henry’s recommendation, I’m reading (actually, listening to on audiobook) The Half-Made World, by Felix Gilman. It’s great! The mythic clash of Gun and Line, Agent and Engine. Since I’ve been covering the gun angle with the last few posts, I’ll toss in a bit of authentic, vintage steampietism, courtesy of another great Library of Congress online resource, An American Time Capsule: Three Centuries of Broadsides and Other Printed Ephemera (great fun to poke around).

Here is “The Spiritual Rail-Way”:
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Well, I don’t suppose I’ll have another opportunity to make two tintype-related posts in a row, so I’ll take it. I’ve got a little book on my shelf, Tintypes In Gold, by Joseph Henry Jackson (1939). It tells the (non-fiction) stories of four California highwaymen of the gold rush era: Black Bart, Rattlesnake Dick, Dick Fellows and Tom Bell. I bought it because it contains ‘decorations by Giacomo Patri’. Patri also published, in the same year, White Collar – a fantastic wordless novel in linocuts, in the Lynd Ward mold. I think it’s better than anything Ward did. Anyway, I was curious about Tintypes. And now I’ve made a little Flickr set so anyone else who is curious (or a Patri completist) can see as well.

Nothing so special, it turns out. Given the subject matter, I was hoping for something wild and amazing. But I see someone has the entirety of White Collar online (but only in miniature). Also, here’s a nice little bio piece. [click to continue…]

This “post”:http://whimsley.typepad.com/whimsley/2010/12/wikileaks-shines-a-light-on-the-limits-of-techno-politics.html is uniformly excellent, but this is _especially_ good and pithy.

bq. The openness question is always contingent, and to phrase political questions in terms of data is sidestepping the big issue. Your answer to “what data should the government make public?” depends not so much on what you think about data, but what you think about the government. Everyone is in favour of other people’s openness.

The Library of Congress has released an amazing collection of almost 700 images of framed, Civil War-era tintypes and ambrotypes. I’ll stick a few under the fold, but you really should click over and browse the set. (Someone should make a book.)

A while back I bought America and the Tintype [amazon], by Steven Kasher. It’s a pretty good book – for some reason not included on the list of tintype-related titles on the LOC’s flickr page – but a bit pricey. I’ll just quote a bit from the intro and concluding essays: [click to continue…]

Back in 2009, I made a bet with Bryan Caplan, with the winning condition for Caplan being that “the average Eurostat harmonised unemployment rate for the EU-15 over the period 2009-18 inclusive should exceed that for the US by at least 1.5 percentage points”, my interpretation being that the difference offsets the effects of the high US rate of incarceration. The EU-15 average rate was slightly below the US rate for 2009, and slightly above the US in 2010, so, for the first two years, the difference averages out to near zero.

If I were looking only at labor markets, I’d be grimly confident at this point. Although the eurozone encompasses some very different economies, overall, eurozone labor markets dealt with the immediate consequences of the global financial crisis relatively well. Meanwhile, the performance of the US labor market has been disastrous. The employment-population ratio has plummeted, back to the levels of 1970 before the large-scale entry of women into the labor market, while long-term unemployment is far above any previous level. Unsurprisingly, this is the time the Republicans have chosen to throw the long-term unemployed off benefits[1]. Meanwhile, the collapse of the housing market has greatly reduced labor mobility. The adverse effects of these developments are likely to persist for years, and the 2010 election outcome forecloses any hope of active policy response.
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I get nostalgic for old Rankin/Bass stop-motion holiday specials. I just watched Jack Frost with the kids. Somehow I never noticed this as a kid myself, but there is some interesting monetary policy involved. The evil Kublai Kraus has taxed away all the ‘real money’ – down to the last kaputnik – from the inhabitants of January Junction. But every winter Jack Frost is responsible for a massive helicopter drop of cash, in effect, in the form of icicles, which the townfolk saw into slices and use as ‘ice coins’. The economy then does ok until spring – not great, mind you. They aren’t rich. But there is a lot more buying and selling in the market. So the town loves Jack. He’s sort of a genius loci, not of a place, but of a part of the calendar: the holiday shopping season. (The story isn’t actually about this.)

Zombie economics is all well and good. But maybe we need a volume on the Economics of Elfland. ‘The Magic of Money’ is a standard theme. It’s mysterious stuff, how it grows and breeds and exerts strange power over the mind, charming whole populations. All gold, in an economic sense, is fairy gold. It lasts as long as the spell it casts lasts. So how has the general subject of economics – not just money and gold – been treated in fairy tales? There’s Midas, of course. Bit of a cautionary tale, that one. I can’t think of too many examples, but I expect they would tend to be along Jack Frost lines. The magical creation of money is an invitation to satire. Are there fairy tales about elves crashing the economy with fairy gold-induced hyper-inflation? Or saving the economy with a heroic helicopter drop? Stories about elves themselves fleeing Elfland for the human world, with its relatively stable currencies? Hedge fund managers practicing crude ‘hedge magic’, to get rich quick, only to call up dark forces beyond their control or comprehension?

UPDATE: The whole Jack Frost special is on YouTube. (Oddly enough, it’s in the Public Domain, its Wikipedia entry says. Can’t imagine why.) Economically speaking, it’s also nice for the scene in which everyone gives everyone else an empty package, in which they imagine they find the thing they want the most. Sort of a cross between a potlatch ceremony, Plato’s Form of the Good, and Wittgenstein’s beetle in a box.

Frank Field, the Joe Lieberman of British politics, “has been advising the ConDem government”:http://www.guardian.co.uk/politics/2010/dec/03/frank-field-welfare-sacred-cows on welfare reform. Here’s a sentence to contemplate:

bq. This goal of changing the distribution of income will be achieved by ensuring that poorer children in the future have the range of abilities necessary to secure better paid, higher skilled jobs.

Of course, I can see a way in which that might work. The newly educated poorer children, frustrated at the stultifying low-wage jobs on offer to them, rise up and change the income distribution by expropriating the expropriators. I doubt that’s the mechanism that Field has in mind though.

Some feel we should take a more active approach to managing comments. I think we do pretty well on the whole (although the Lord love you, you are a grumpy lot). Question of the day: is the unremitting, permanent badness of Matthew Yglesias’ comments the result of intentional sabotage, or can it be chalked up to his policy of utterly ignoring them at all times? I favor the former explanation, because he’s influential enough that I can imagine some testy Republican or two taking it on as a volunteer project to wreck it up constantly. There was never a time when they were good, either, even in the early days. He was assigned what I consider to be, in John Emerson’s formulation, an Al-bot; a rotating crew of people commenting as “Al” day and night there and at Kevin Drum’s and Ezra Klein’s with the result that every single thread was derailed. Final note: why has Digby never been promoted to the big leagues, despite her obvious rightness and acerbic wit? Sexism, or a lust for mindless contrarianism that she will never satisfy?
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