Of Flying Cars and the Declining Rate of Profit

a particular generational promise—given to those who were children in the fifties, sixties, seventies, or eighties—one that was never quite articulated as a promise but rather as a set of assumptions about what our adult world would be like.

.. Where, in short, are the flying cars? Where are the force fields, tractor beams, teleportation pods, antigravity sleds, tricorders, immortality drugs, colonies on Mars, and all the other technological wonders any child growing up in the mid-to-late twentieth century assumed would exist by now?

.. In 1968, Stanley Kubrick felt that a moviegoing audience would find it perfectly natural to assume that only thirty-three years later, in 2001, we would have commercial moon flights, city-like space stations, and computers with human personalities

.. The usual move in science fiction is to remain vague about the dates, so as to render “the future” a zone of pure fantasy, no different than Middle Earth or Narnia, or like Star Wars, “a long time ago in a galaxy far, far away.”

.. The movie was terrible, but I couldn’t help but feel impressed by the quality of the special effects.

.. They thought we’d be doing this kind of thing by now. Not just figuring out more sophisticated ways to simulate it.”

.. The technologies that have advanced since the seventies are mainly either medical technologies or information technologies—largely, technologies of simulation.

.. The postmodern sensibility, the feeling that we had somehow broken into an unprecedented new historical period in which we understood that there is nothing new; that grand historical narratives of progress and liberation were meaningless

.. all this makes sense in a technological environment in which the only breakthroughs were those that made it easier to create, transfer, and rearrange virtual projections of things that either already existed, or, we came to realize, never would.

.. The postmodern moment was a desperate way to take what could otherwise only be felt as a bitter disappointment and to dress it up as something epochal, exciting, and new.

.. End of work arguments were popular in the late seventies and early eighties as social thinkers pondered what would happen to the traditional working-class-led popular struggle once the working class no longer existed. (The answer: it would turn into identity politics.)

.. What happened, instead, is that the spread of information technologies and new ways of organizing transport—the containerization of shipping, for example—allowed those same industrial jobs to be outsourced to East Asia, Latin America, and other countries where the availability of cheap labor allowed manufacturers to employ much less technologically sophisticated production-line techniques

.. an uneasy awareness that the postwork civilization was a giant fraud.

  1. .. Either our expectations about the pace of technological change were unrealistic
  2. .. or our expectations were not unrealistic (in which case, we need to know what happened to derail so many credible ideas and prospects).

.. the United States and the Soviet Union had been, in the century before, societies of pioneers, one expanding across the Western frontier, the other across Siberia?

.. If it wasn’t unrealistic in 1900 to dream of men traveling to the moon, then why was it unrealistic in the sixties to dream of jet-packs and robot laundry-maids?

.. Future Shock argued that almost all the social problems of the sixties could be traced back to the increasing pace of technological change.

.. by roughly 1850, the effect had become unmistakable. Not only was everything around us changing, but most of it—human knowledge, the size of the population, industrial growth, energy use—was changing exponentially. The only solution, Toffler argued, was to begin some kind of control over the process, to create institutions that would assess emerging technologies and their likely effects, to ban technologies likely to be too socially disruptive ..

.. One of Gingrich’s first acts on winning control of the House of Representatives in 1995 was defunding the OTA as an example of useless government extravagance

.. Auguste Comte, who believed that he was standing on the brink of a new age—in his case, the Industrial Age ..

.. The Industrial Age had developed its own system of ideas—science—but scientists had not succeeded in creating anything like the Catholic Church. Comte concluded that we needed to develop a new science, which he dubbed “sociology,” and said that sociologists should play the role of priests in a new Religion of Society that would inspire everyone with a love of order, community, work discipline, and family values.

.. The old, materialist Industrial Society, where value came from physical labor, was giving way to an Information Age where value emerges directly from the minds of entrepreneurs, just as the world had originally appeared ex nihilo from the mind of God, just as money, in a proper supply-side economy, emerged ex nihilo from the Federal Reserve and into the hands of value-creating capitalists.

.. existing patterns of technological development would lead to social upheaval, and that we needed to guide technological development in directions that did not challenge existing structures of authority—echoed in the corridors of power.

.. Marx argued that, for certain technical reasons, value—and therefore profits—can be extracted only from human labor. Competition forces factory owners to mechanize production, to reduce labor costs, but while this is to the short-term advantage of the firm, mechanization’s effect is to drive down the general rate of profit.

.. Back in the fifties, in fact, many United States planners suspected the Soviet system worked better. Certainly, they recalled the fact that in the thirties, while the United States had been mired in depression, the Soviet Union had maintained almost unprecedented economic growth rates of 10 percent to 12 percent a year—an achievement quickly followed by the production of tank armies that defeated Nazi Germany, then by the launching of Sputnik in 1957, then by the first manned spacecraft, the Vostok, in 1961.

.. We are used to thinking of the Politburo as a group of unimaginative gray bureaucrats, but they were bureaucrats who dared to dream astounding dreams.

The dream of world revolution was only the first.

.. most of them—changing the course of mighty rivers, this sort of thing—either turned out to be ecologically and socially disastrous

most were not military in nature: as, for instance, the attempt to solve the world hunger problem by harvesting lakes and oceans with an edible bacteria called spirulina,

  • or to solve the world energy problem by launching hundreds of gigantic solar-power platforms into orbit and beaming the electricity back to earth.
  • .. American victory in the space race meant that, after 1968, U.S. planners no longer took the competition seriously.

.. the direction of research and development shifted away from anything that might lead to the creation of Mars bases and robot factories.

.. the United States never did abandon gigantic, government-controlled schemes of technological development. Mainly, they just shifted to military research

.. by the seventies, even basic research came to be conducted following military priorities.

.. One reason we don’t have robot factories is because roughly 95 percent of robotics research funding has been channeled through the Pentagon, which is more interested in developing unmanned drones than in automating paper mills.

.. the technologies that did emerge proved most conducive to surveillance, work discipline, and social control.

.. provided the means by which employers have created “flexible” work regimes that have both destroyed traditional job security and increased working hours for almost everyone.

.. what will the epitaph for neoliberalism look like?

.. a form of capitalism that systematically prioritized political imperatives over economic ones. Given a choice between a course of action that would make capitalism seem the only possible economic system, and one that would transform capitalism into a viable, long-term economic system, neoliberalism chooses the former every time.

.. There is every reason to believe that destroying job security while increasing working hours does not create a more productive .. workforce.

.. It’s possible, in fact, that the very dead weight of the apparatus created to ensure the ideological victory of capitalism will sink it.

.. choking off any sense of an inevitable, redemptive future that could be different from our world is a crucial part of the neoliberal project.

.. the change shifted government-directed research away from programs like

  • NASA or alternative energy sources and
  • toward military, information, and medical technologies.

.. the preferred weapon almost everywhere remains the AK-47, a Soviet design named for the year it was introduced: 1947.

.. private enterprise is now funding twice as much research as the government

.. “Basic,” “curiosity-driven,” or “blue skies” research—the kind that is not driven by the prospect of any immediate practical application, and that is most likely to lead to unexpected breakthroughs—occupies an ever smaller proportion of the total

.. The Human Genome Project .. has mainly served to establish that there isn’t very much to be learned from sequencing genes that’s of much use to anyone else

.. Research and development is still driven by giant bureaucratic projects.

.. The increasing interpenetration of government, university, and private firms has led everyone to adopt the language, sensibilities, and organizational forms that originated in the corporate world.

.. the last thirty years have seen a veritable explosion of the proportion of working hours spent on administrative tasks at the expense of pretty much everything else.

.. In my own university, for instance, we have more administrators than faculty members, and the faculty members, too, are expected to spend at least as much time on administration as on teaching and research combined.

.. The growth of administrative work has directly resulted from introducing corporate management techniques.

.. everyone winds up spending most of their time trying to sell things: grant proposals; book proposals; assessments of students’ jobs and grant applications; assessments of our colleagues; prospectuses for new interdisciplinary majors; institutes; conference workshops; universities themselves

.. No major new works of social theory have emerged in the United States in the last thirty years. We have been reduced to the equivalent of medieval scholastics, writing endless annotations of French theory from the seventies, despite the guilty awareness that if new incarnations of Gilles Deleuze, Michel Foucault, or Pierre Bourdieu were to appear in the academy today, we would deny them tenure.

.. It is now the domain of professional self-marketers.

.. Jonathan Katz

.. You will spend your time writing proposals rather than doing research. Worse, because your proposals are judged by your competitors, you cannot follow your curiosity, but must spend your effort and talents on anticipating and deflecting criticism rather than on solving the important scientific problems. . . . It is proverbial that original ideas are the kiss of death for a proposal, because they have not yet been proved to work.

.. tell those same people they will receive no resources at all unless they spend the bulk of their time competing against each other to convince you they know in advance what they are going to discover.

.. the spread of the corporate ethos within the academy and research institutes themselves has caused even publicly funded scholars to treat their findings as personal property.

.. Those thinkers most likely to make a conceptual breakthrough are the least likely to receive funding, and, if breakthroughs occur, they are not likely to find anyone willing to follow up on their most daring implications.

.. the United States and Germany, the two rival powers that spent the first half of the twentieth century fighting two bloody wars over who would replace Britain as a dominant world power—wars that culminated, appropriately enough, in government-sponsored scientific programs to see who would be the first to discover the atom bomb. It is significant, then, that our current technological stagnation seems to have begun after 1945, when the United States replaced Britain as organizer of the world economy.

.. the moment we stop imagining bureaucracy as a phenomenon limited to government offices, it becomes obvious that this is precisely what we have become.

.. cemented the dominance of conservative managerial elites, corporate bureaucrats who use the pretext of short-term, competitive, bottom-line thinking to squelch anything likely to have revolutionary implications of any kind.

.. No population in the history of the world has spent nearly so much time engaged in paperwork.

.. we need to rethink some of our most basic assumptions about the nature of capitalism. One is that capitalism is identical with the market, and that both therefore are inimical to bureaucracy, which is supposed to be a creature of the state.

.. they were right to insist that the mechanization of industrial production would destroy capitalism; they were wrong to predict that market competition would compel factory owners to mechanize anyway.

.. the current form of capitalism, where much of the competition seems to take the form of internal marketing within the bureaucratic structures of large semi-monopolistic enterprises

Defenders of capitalism make three broad historical claims:

  1. first, that it has fostered rapid scientific and technological growth;
  2. second, that however much it may throw enormous wealth to a small minority, it does so in such a way as to increase overall prosperity;
  3. third, that in doing so, it creates a more secure and democratic world for everyone.

It is clear that capitalism is not doing any of these things any longer.

.. many of its defenders are retreating from claiming that it is a good system and instead falling back on the claim that it is the only possible system

.. they mean to convince us that technological progress is indeed continuing, that we do live in a world of wonders, but that those wonders take the form of modest improvements (the latest iPhone!)

there’s the problem of trying to convince the world you are leading the way in technological progress when you are holding it back. The United States,

  • with its decaying infrastructure,
  • paralysis in the face of global warming, and
  • symbolically devastating abandonment of its manned space program just as China accelerates its own,

.. it will not happen within the framework of contemporary corporate capitalism—or any form of capitalism. To begin setting up domes on Mars, let alone to develop the means to figure out if there are alien civilizations to contact, we’re going to have to figure out a different economic system.

.. whatever replaces capitalism is based on a far more egalitarian distribution of wealth and power—one that no longer contains either the super-rich or the desperately poor willing to do their housework.

General Mattis’s Challenge

“To change anything in the Navy is like punching a feather bed. You punch it with your right and you punch it with your left until you are finally exhausted, and then you find the damn bed just as it was before you started punching.” — Franklin Roosevelt, 1940 San Diego — What the former assistant secretary of the Navy said is descriptive of the entire military. Each service’s culture, and interservice rivalries, and bureaucratic viscosity are resistant to reform. Which is why the next secretary of defense, retired Marine Corps General James Mattis, has the most difficult management challenge in American government.

.. For about $500,000 in expenditures, the 9/11 attackers did over $2 trillion in damage to the United States and the world economy. The linked physical and cyber infrastructures of complex societies are vulnerable to such asymmetries.

.. The nation just experienced a raucous presidential campaign during which there was silence about the crisis of the entitlement state — an aging population’s pension and health-care entitlements swallowing government resources, with alarming national-security implications. But technology, pursued determinedly, has the potential to make peace through making deterrent strength less expensive.

Trump Is Wise to Surround Himself with Generals

How can the most disliked and most distrusted president-elect in American history signal that he’s competent and capable of leading the nation? By appointing people from the nation’s most trusted institution to important positions. We can’t forget that in an era when trust for government and other civic institutions is plunging, the military has retained strong public support.

And it has that support for a reason. In 15 years of war since 9/11, the military has consistently fought with honor, courage, and excellence. The best military in the world isn’t built by accident, nor is it maintained through negligence. The generals who are responsible for some of the military’s greatest recent successes — whether it’s the brilliant push to Baghdad in the 2003 Iraq invasion or the intelligence innovations that empowered the deadliest aspects of the Surge — have proven that they’re worthy of respect. And in polarized times, respect is a precious commodity.

.. A general is accustomed to dealing with bloated bureaucracies and making them bend to his will. The military has an extremely sharp and deadly spear, but behind that small tip is a bureaucracy so unwieldy that it can make you weep with frustration.

.. Selecting retired generals for key national-security posts is a key signal that Trump is shunning a law-enforcement approach to the war on terror. For the time being, the longstanding debate about whether terrorism is primarily a police challenge (like fighting a Mafia on steroids) or a military challenge is over. And that’s very welcome news

.. but if the Founders of that republic had the slightest concern that former officers were less qualified to govern, they wouldn’t have wanted the commander in chief of the Continental Army to become our nation’s first president.

Pentagon buries evidence of $125 billion in bureaucratic waste

Pentagon leaders had requested the study to help make their enormous back-office bureaucracy more efficient and reinvest any savings in combat power. But after the project documented far more wasteful spending than expected, senior defense officials moved swiftly to kill it by discrediting and suppressing the results.

The report, issued in January 2015, identified “a clear path” for the Defense Department to save $125 billion over five years. The plan would not have required layoffs of civil servants or reductions in military personnel. Instead, it would have streamlined the bureaucracy through attrition and early retirements, curtailed high-priced contractors and made better use of information technology.

.. their report revealed for the first time that the Pentagon was spending almost a quarter of its $580 billion budget on overhead and core business operations such as accounting, human resources, logistics and property management.

.. The data showed that the Defense Department was paying a staggering number of people — 1,014,000 contractors, civilians and uniformed personnel — to fill back-office jobs far from the front lines. That workforce supports 1.3 million troops on active duty

.. The cost-cutting study could find a receptive audience with President-elect Donald Trump. He has promised a major military buildup and said he would pay for it by “eliminating government waste and budget gimmicks.”

.. Among other options, the savings could have paid a large portion of the bill to rebuild the nation’s aging nuclear arsenal, or the operating expenses for 50 Army brigades.

.. But some Pentagon leaders said they fretted that by spotlighting so much waste, the study would undermine their repeated public assertions that years of budget austerity had left the armed forces starved of funds. Instead of providing more money, they said, they worried Congress and the White House might decide to cut deeper.

.. After the board finished its analysis, however, Work changed his position. In an interview with The Post, he did not dispute the board’s findings about the size or scope of the bureaucracy. But he dismissed the $125 billion savings proposal as “unrealistic”

.. Work said the board fundamentally misunderstood how difficult it is to eliminate federal civil service jobs — members of Congress, he added, love having them in their districts — or to renegotiate defense contracts.

.. Some Defense Business Board members warned that exposing the extent of the problem could have unforeseen consequences.

“You are about to turn on the light in a very dark room,” Kenneth Klepper, the former chief executive of Medco Health Solutions, told Work in the summer of 2014, according to two people familiar with the exchange. “All the crap is going to float to the surface and stink the place up.”

.. “Elements of the culture are masterful at ‘waiting out studies and sponsors,’ with a ‘this too shall pass’ mindset.”

.. he revealed that early findings had determined the average administrative job at the Pentagon was costing taxpayers more than $200,000, including salary and benefits.

..

Former defense secretaries William S. Cohen, Robert M. Gates and Chuck Hagel had launched similar efficiency drives in 1997, 2010 and 2013, respectively. But each of the leaders left the Pentagon before their revisions could take root.

.. “Because we turn over our secretaries and deputy secretaries so often, the bureaucracy just waits things out,” said Dov Zakheim, who served as Pentagon comptroller under President George W. Bush. “You can’t do it at the tail end of an administration. It’s not going to work. Either you leave the starting block with a very clear program, or you’re not going to get it done.”

.. It then broke down how the Defense Department was spending $134 billion a year on business operations — about 50 percent more than McKinsey had guessed at the outset.

.. Almost half of the Pentagon’s back-office personnel — 457,000 full-time employees — were assigned to logistics or supply-chain jobs. That alone exceeded the size of United Parcel Service’s global workforce.

.. Work explained he was worried Congress might see it as an invitation to strip $125 billion from the defense budget and spend it somewhere else.

.. uniformed military leaders were receptive at first. They had long groused that the Pentagon wasted money on a layer of defense bureaucracies — known as the Fourth Estate — that were outside the control of the Army, Air Force and Navy. Military officials often felt those agencies performed duplicative services and oversight.

.. McKinsey consultants had also collected data that exposed how the military services themselves were spending princely sums to hire hordes of defense contractors.

.. The average cost to the Army for each contractor that year: $189,188, including salary, benefits and other expenses

.. On Feb. 6, 2015, board members briefed Frank Kendall III, the Pentagon’s chief weapons-buyer. Kendall’s operations were a major target of the study

.. he went to Work and warned that the findings could “be used as a weapon” against the Pentagon.

.. Worse, the board was unable to secure an audience with Carter, the new defense secretary.

.. Work and other senior officials had already “concluded that the report, while well-intentioned, had limited value.”

.. called the board’s recommendations too ambitious and aggressive. “They, perhaps, underestimated the degree of difficulty we have in doing something that in the commercial sector would seem to be very easy to do.”

.. “If we had a longer timeline, yes, it would be a reasonable approach,” he said. “You might get there eventually.”

.. On June 2, 2015, Navy Secretary Ray Mabus delivered a speech at the American Enterprise Institute, a conservative think tank. He complained that 20 percent of the defense budget went to the Fourth Estate

.. He singled out the Defense Finance and Accounting Service and the Defense Logistics Agency, which together employ about 40,000 people, as egregious examples.