How the World Works

December 1, 2011 By

If you want to seriously level-up your thinking about how the world works, you might want to try reading 3 very ambitious books together: Francis Fukuyama’s The Origins of Political Order, Pankaj Ghemawat’s World 3.0 and David Graeber’s Debt: the first 5000 years. All three are from the reading list that I posted in August, so I am hoping at least some of you have been attacking them.

It’s worth reading them together because they attempt to tell the same story, towards the same purpose — explaining how the world works in some sense — drawing on roughly the same body of raw material. It is illuminating to see the surprising ways in which the stories agree and disagree. All three books are also particularly valuable for me personally, since I hope to take a stab at telling the same story some day.

My version will of course be the definitive one when I write it, but let’s take a look at the versions of the story on the market today.

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The Evolution of the American Dream

November 16, 2011 By

Remember the pigs in George Orwell’s Animal Farm and their sloganeering? In the beginning of the story, when they overthrow the humans, they lead with the chant, “four legs good, two legs bad!” By the end, they’ve  become human-corrupt, and lead the chant, “four legs good, two legs better!”

Just one word changed, and the new and old words both begin with b, bolstering the illusion of continuity and natural evolution.

Let’s call such a slowly shifting narrative, simple enough to be captured in a slogan, and designed to help a small predatory class dominate a larger prey class, a Pig Narrative.  The American Dream is a Pig Narrative. For the record, in case you are immediately curious about my politics, I think this Pigs-and-Prey structure of the world is the natural order of things. You can mitigate its effects, but not change it in any fundamental way. If I had to pick, I’d side with the pigs.  Moving on.

You can compare Pig Narratives on the basis of the degree of prey liberty (or conversely, predator control) they represent, allowing you to plot the evolution over time. If you plot the course of the American Dream through its many rewrites (9 so far by my count, each associated with a major coming-of-age event that defined a generation), you get something like the picture above.

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Technology and the Baroque Unconscious

November 11, 2011 By
This entry is part 5 of 15 in the series Psychohistory

Engineering romantics fall in love with the work of Jorge Luis Borges early in their careers.  Long after Douglas Hofstadter is forgotten for his own work in AI (which seems dated today), he will be remembered with gratitude for introducing Borges to generations of technologists.

Borges once wrote:

“I should define the baroque as that style which deliberately exhausts (or tries to exhaust) all its own  possibilities and which borders on its own parody…I would say that the final stage of all styles is baroque when that style only too obviously exhibits or overdoes its own tricks.”

The baroque in Borges’ sense is self-consciously humorous. Borges’ own work in this sense is a baroque exploration of the processes of  thought. As one critic (see the footnote on this page) noted, Borges writings “serve to dramatize the process of thought in the apprehension of truth.”

Unlike art, complex and mature technology (not all technology) is baroque without being self-conscious. At best there is a collective sensibility informing its design that can be called a baroque unconscious.

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Three Deep Videos and a Roundup

October 26, 2011 By

I am not normally a big consumer of online video content, but in the last couple of months, I’ve watched three very significant videos that together have turned my mind into silly putty. They are incredibly fertile, thought-provoking and demanding without being merely stimulating in an infotainment/mindcandy sense. This is protein, not sugar.

They total about 6 hours, but if you choose to invest a clear-brained morning or afternoon, you will not be disappointed. You should find that you’ve leveled-up your thinking about a lot of stuff that we talk about frequently.

I am also posting a roundup of the last couple of months, since I am now blogging on enough different venues to justify some periodic aggregation.

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The Stream Map of the World

October 4, 2011 By
This entry is part 3 of 15 in the series Psychohistory

For most of the last decade, Israeli soldiers have been making the transition back to civilian life after their compulsory military service  by going on a drug-dazed recovery trip to India, where an invisible stream of modern global culture runs from the beaches of Goa to the mountains of Himachal Pradesh in the north.  While most of the Israelis eventually return home after a year or so, many have stayed as permanent expat stewards of the stream. The Israeli military stream is changing course these days, and starting to flow through Thailand, where the same pattern of drug-use and conflict with the locals is being repeated.

This pattern of movement among young Israelis is an example of what I’ve started calling a stream. A stream is not a migration pattern, travel in the usual sense, or a consequence of specific kinds of work that require travel (such as seafaring or diplomacy). It is a sort of slow, life-long communal nomadism, enabled by globalization and a sense of shared transnational social identity within a small population.

I’ve been getting increasingly curious about such streams. I have come to believe that though small in terms of absolute numbers (my estimate is between 20-25 million worldwide), the stream citizenry of the world shapes the course of globalization. In fact, it would not be unreasonable to say that streams provide the indirect staffing for the processes of modern technology-driven globalization. They are therefore a distinctly modern phenomenon, not to be confused with earlier mobile populations they may partly resemble.

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Fixing the Game by Roger L. Martin

September 8, 2011 By

Sometimes the difference between a good book and an Aaargh! book is a single unexamined value. Fixing the Game by Roger L. Martin is an Aargh! book. The phrase that kept running through my head as I read was so close… so close.

The book is two things: an exceptionally clear and original analysis of the question of what ails modern capitalism, and an exceptionally woolly headed prescription for how to fix it. Unlike many books that are strong on analysis, the prescription isn’t bad because it is an anemic afterthought shoved into a last chapter (here, the prescription runs through the entire book, with a goodly fraction of the word count devoted to it). It is weak because its foundational assumptions about the psychology of capitalism are hopelessly idealistic.

That’s what makes the book so frustrating. It could have been so much more. Still the book retains a lot of its value because it is relatively easy to tease apart the parts colored by idealism from the parts that are not.

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The August Reading List Freeze

August 12, 2011 By

August is always a bitch of a month for me, to the point that I agree with David Plotz of Slate that we should get rid of it entirely. It seems to be my de facto annual planning month, though I have no reason anymore to be on an annual planning cycle. In August, I always seem to have far too many things in early stages of development, and too few leaving at the other end. I am currently in the early stages of several rather ambitious blog posts, a couple of new consulting projects and a couple of new personal projects. This year, thanks to my summer travels (I am back in Las Vegas now), I also have piles of unprocessed raw material from stuff I researched on the road, to write about.

So that’s a long, whiny excuse for rather sparse output over the last several weeks. I think I’ve hit my August trough though, so I can only build up momentum from here. But in the meantime, I assume many of you are on vacation, or planning to go on vacation, so I thought I’d share my current reading list, if any of you want to read along. Some of this will show up on the blog, some will not. My reading list piles up so fast that I’ve decided to be brutal. This list is it for the rest of the year. I will not be adding more books to the queue until I am done with these.

  1. Titan by Ron Chernow: Multiple people have recommended this Rockefeller biography to me.
  2. Tycoons by Charles Morris: Seems like a good overview of the Robber Barons
  3. The First Tycoon by T. J. Stiles: A biography of Vanderbilt, probably the founding father of the Robber Baron era.
  4. The Origins of Political Order by Francis Fukuyama: Don’t let the vague neocon associations dissuade you. There’s a reason this guy is so famous. If he writes a history of political order, you need to read it.
  5. World 3.0 by Pankaj Ghemawat: As meaty as Friedman’s The World is Flat is not. I suspect it’s going to become the definitive textbook introduction to globalization for those who actually care about getting the details and numbers right. The title is unfortunately rather uninspired, but the contents are solid gold.
  6. Fixing the Game by Roger L. Martin: Haven’t yet started it, but seems like a really intriguing premise: applying the lessons of the NFL to figuring out how capitalism should be fixed to avoid the kinds of messes we seem to keep getting into.
  7. Quicksilver by Neal Stephenson: I rarely read fiction these days, but everybody keeps telling me to read Stephenson, so I finally caved, especially since it seemed to go well with the rest of this list.  This is the first volume of the Baroque Cycle. If I have time, I may attempt to finish all three volumes this year.
  8. Debt: the first 5000 Years by David Graeber: I like ambitious reframings of everything from a new perspective, and this certainly qualifies. An attempt to rethink all of civilization and society as a manifestation of debt. If you want to sample before you decide, Julio Rodriguez at Wild Intent has attempted a valiant assault on this Mt. Everest scale book (ambition, not raw size).

Yes. There’s a definite theme here. No, the theme won’t take over the blog. I may even decide not to pursue it at all.

Mostly I am trying to flesh out the thinking around this year’s summer blockbuster hit, A Brief History of the Corporation to figure out just how deep the rabbit-hole goes. Though I hate to admit it, that piece did share some rather unpleasant characteristics with Michael Bay’s movies, so I am trying to think through some Oscar-season type follow ups.

Here’s to all of us seeing this beast of a month through. I’ll be in Hawaii over Labor Day weekend, so there is that to look forward to.

The Four Kinds of Economies

June 29, 2011 By

I don’t normally do straight-up reblogs here, but the new post, Unifying the Value Universe from Greg Rader at onthespiral.com is very relevant to some themes we are starting to attack here. It divides up value exchange into four types of economics: gift, transactional, relationship and attention that can be neatly arranged in a 2×2. As with any 2×2, the identification of the axis variables to use is key, and I think the ones Greg has picked really might be the right ones: relatedness of the parties and refinement of the value-add being exchanged (in the sense of rough vs. polished). Click on and read.  He has a more detailed analysis of how this diagram works and in particular, of transactions that cross quadrant boundaries.


A Brief History of the Corporation: 1600 to 2100

June 8, 2011 By

On 8 June, a Scottish banker named Alexander Fordyce shorted the collapsing Company’s shares in the London markets. But a momentary bounce-back in the stock ruined his plans, and he skipped town leaving £550,000 in debt. Much of this was owed to the Ayr Bank, which imploded. In less than three weeks, another 30 banks collapsed across Europe, bringing trade to a standstill. On July 15, the directors of the Company applied to the Bank of England for a £400,000 loan. Two weeks later, they wanted another £300,000. By August, the directors wanted a £1 million bailout.  The news began leaking out and seemingly contrite executives, running from angry shareholders, faced furious Parliament members. By January, the terms of a comprehensive bailout were worked out, and the British government inserted its czars into the Company’s management to ensure compliance with its terms.

If this sounds eerily familiar, it shouldn’t. The year was 1772, exactly 239 years ago today, the apogee of power for the corporation as a business construct. The company was the British East India company (EIC). The bubble that burst was the East India Bubble. Between the founding of the EIC in 1600 and the post-subprime world of 2011, the idea of the corporation was born, matured, over-extended, reined-in, refined, patched, updated, over-extended again, propped-up and finally widely declared to be obsolete. Between 2011 and 2100, it will decline — hopefully gracefully — into a well-behaved retiree on the economic scene.

In its 400+ year history, the corporation has achieved extraordinary things, cutting around-the-world travel time from years to less than a day, putting a computer on every desk, a toilet in every home (nearly) and a cellphone within reach of every human.  It even put a man on the Moon and kinda-sorta cured AIDS.

So it is a sort of grim privilege for the generations living today to watch the slow demise of such a spectacularly effective intellectual construct. The Age of Corporations is coming to an end. The traditional corporation won’t vanish, but it will cease to be the center of gravity of economic life in another generation or two.  They will live on as religious institutions do today, as weakened ghosts of more vital institutions from centuries ago.

It is not yet time for the obituary (and that time may never come), but the sun is certainly setting on the Golden Age of corporations. It is time to review the memoirs of the corporation as an idea, and contemplate a post-corporate future framed by its gradual withdrawal from the center stage of the world’s economic affairs.

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The Disruption of Bronze

February 2, 2011 By

I pride myself on my hard-won sense of history. World history is probably the subject I’ve studied the most on my own, starting with Somerset Plantagenet Fry’s beautifully illustrated  DK History of the World at age 15.  I studied the thing obsessively for nearly a year, taking copious notes and neglecting my school history syllabus. It’s been the best intellectual investment of my life. Since then, I periodically return to history to refresh my brain whenever I think it my thinking is getting stale. Most recently, I’ve been reading Gibbon’s Decline and Fall of the Roman Empire and Alfred Thayer Mahan’s The Influence of Sea Power Upon History. My tastes have gradually shifted from straightforward histories by modern historians to analytical histories with a specific angle, preferably written by historians from eras besides our own.

The big value to studying world history is that no matter how much you know or think you know, one new fact can completely rewire your perspectives. The biggest such surprise for me was understanding the real story (or as real as history ever gets) of how iron came to displace bronze, and what truly happened in the shift between the Bronze Age and the Iron Age.

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