Americans Own Less Stuff, and That’s Reason to Be Nervous

Silicon Valley has morphed and commercialized the term “sharing”. You aren’t “sharing” when you use Uber or AirBnB; you aren’t pooling resources when you use Netflix or Amazon Books. You’re renting. You’re renting from a centralized company which outsources the generation of actual value to others, and pays them as little as possible. You aren’t shifting your dependence from yourself to a community, but from yourself to a company that wants nothing more than to make money.

I might add that Silicon Valley et al has not simply cleverly redefined the meaning of ’sharing’ to cover their rental practices, but even the meaning of community has been totally warped out of shape. A community used to be a group of geographically proximate people whose collective survival depended on getting over their sometimes conflicting mutual interests and opinions in order to survive; now we use the term ’community’ to cover collections of isolated loners who are on average many hundreds of kilometres apart but are united by a common and often generally speaking controversial opinion that puts them at odds with their actual neighbours. The Information Superhighway was meant to usher in the Global Village but instead it begat a landscape of virtual ghettoes.

Rules Won’t Save Twitter. Values Will.

Values would require that Twitter make tough calls on high-profile and obviously malevolent figures, including tossing them off as a signal of its intent to keep it civil.

And Mr. Jones is not even an edge case: His bilious lies, including that the murders of the Sandy Hook Elementary children were “synthetic, completely fake, with actors,” clearly sully the platform.

Twitter has certainly appeared to have adjusted the rules for Donald Trump. While the president has not descended down the same demented rabbit hole as Alex Jones, many argue that he has violated various Twitter rules, by threatening violence (he did so against North Korea and later Iran) and by systematic harassment of people (the list is too long).

.. Yes, many sources assure me that there is indeed a pull-emergency-brake plan for him, but it hasn’t come to that. Yet.

.. In any case, if you get kicked off Twitter, you can always unload your twisted mind on your very own website.

..  His intent was to tamp down widespread rumors that Twitter was “shadow banning” — who comes up with these creepy terms? — some conservative users. The idea is that their posts mysteriously don’t show up in search results. Twitter did not do that, Mr. Dorsey said, “period.”

.. It was opened by Mr. Dorsey, who sat cross-legged on the stage, leading a 10-minute meditation for his most fervent followers — Twitter’s employees flown in from across the globe.

.. The event had a very Silicon Valley feel-good vibe, and veered awfully close to becoming a spoof of itself.

 

Steve Bannon’s clever idea to save the GOP from brutal midterms

Bannon was in Rome to learn from and provide support to the unusual coalition of populists and nationalists who together won half the vote in Italy’s recent elections and have formed a government. Bannon sees that sort of coalition — mixing left and right, old and young — as his goal for the United States. “Europe is about a year ahead of the United States. . . . You see populist-nationalist movements with reform [here]. . . . You could begin to see the elements of Bernie Sanders coupled with the Trump movement that really becomes a dominant political force in American politics.”

.. The Republican Party’s strategy, for now, appears to be to make the midterm elections a series of local contests focusing on the tax cut and the healthy economy. Bannon views this as fundamentally misguided. “You have to nationalize the election,” he said. Bannon understands that voters are moved from the gut more than through a wonky analysis of taxes. “This is going to be an emotional [election] — you’re either with [House Minority Leader] Nancy Pelosi or you’re with Donald Trump.

.. Bannon is most focused on the issue of immigration because it hits both the heart and the head. “Immigration is about not just sovereignty, it’s about jobs.”

.. He believes that the Trump coalition can attract up to a third of Sanders supporters who see trade and immigration as having created unfair competition for jobs, particularly for working-class blacks and Hispanics.

.. “You’re not going to be able to take the Hispanic and black community from the STEM system in grammar school to our best engineering schools . . . to the great jobs in Silicon Valley, unless you start to limit these H-1B visas and this unfair competition . . . from East Asia and South Asia.”

.. Now this strikes me as entirely wrong. The reason that not enough Hispanic and black students end up in Silicon Valley has much more to do with a broken education system, particularly for poorer kids, than the modest number of skilled Asian immigrants who get work visas.
.. The most likely result of limiting these visas is that talented immigrants will simply go elsewhere — Canada, Britain, Australia — and start successful companies there.
.. The Democratic Party is too far to the left on many of these issues, embracing concepts such as sanctuary cities, which only reinforces its image as a party that is more concerned with race, identity and multiculturalism than the rule of law.

.. I wrote last month that Trump would try to fight the midterm elections on immigration and added, “Do not be surprised if Trump also picks a few fights with black athletes.”

.. He predicted the next major battle would be over the proposed wall along the U.S.-Mexico border. “The wall is not just totemic. The wall is absolutely central to his program. . . . As we come up on Sept. 30, if [Congress’s] appropriations bill does not include spending to fully build his wall . . . I believe he will shut down the government.”

.. Bannon doesn’t think the fighting and the rancor in the United States are going away any time soon. The “battle between nationalists and globalists is at the fundamental roots of what America is, what America will be,”

Why corporate America loves Donald Trump

American executives are betting that the president is good for business. Not in the long run

MOST American elites believe that the Trump presidency is hurting their country. Foreign-policy mandarins are terrified that security alliances are being wrecked. Fiscal experts warn that borrowing is spiralling out of control. Scientists deplore the rejection of climate change. And some legal experts warn of a looming constitutional crisis.

.. Bosses reckon that the value of tax cuts, deregulation and potential trade concessions from China outweighs the hazy costs of weaker institutions and trade wars.

.. the investment surge is unlike any before—it is skewed towards tech giants, not firms with factories. When it comes to gauging the full costs of Mr Trump, America Inc is being short-sighted and sloppy.

.. The benefits for business of Mr Trump are clear, then: less tax and red tape, potential trade gains and a 6-8% uplift in earnings.

.. During the Obama years corporate America was convinced it was under siege when in fact, judged by the numbers, it was in a golden era, with average profits 31% above long-term levels.

Now bosses think they have entered a nirvana, when the reality is that the country’s system of commerce is lurching away from rules, openness and multilateral treaties towards arbitrariness, insularity and transient deals.

.. so far this month 200-odd listed American firms have discussed the financial impact of tariffs on their calls with investors. Over time, a mesh of distortions will build up.

.. American firms have $8trn of capital sunk abroad; foreign firms have $7trn in America; and there have been 15,000 inbound deals since 2008. The cost involved in monitoring all this activity could ultimately be vast. As America eschews global co-operation, its firms will also face more duplicative regulation abroad. Europe has already introduced new regimes this year for financial instruments and data.

.. The expense of re-regulating trade could even exceed the benefits of deregulation at home. That might be tolerable, were it not for the other big cost of the Trump era: unpredictability. At home the corporate-tax cuts will partly expire after 2022.

.. Bosses hope that the belligerence on trade is a ploy borrowed from “The Apprentice”, and that stable agreements will emerge. But imagine that America stitches up a deal with China and the bilateral trade deficit then fails to shrink, or Chinese firms cease buying American high-tech components as they become self-sufficient

.. Another reason for the growing unpredictability is Mr Trump’s urge to show off his power with acts of pure political discretion.

  • He has just asked the postal service to raise delivery prices for Amazon, his bête noire and the world’s second-most valuable listed firm.
  • He could easily strike out in anger at other Silicon Valley firms—after all, they increasingly control the flow of political information.
  • He wants the fate of ZTE, a Chinese telecoms firm banned in America for sanctions violations, to turn on his personal whim.

.. When policy becomes a rolling negotiation, lobbying explodes. The less predictable business environment that results will raise the cost of capital.

.. Mr Trump expects wages to rise, but 85% of firms in the S&P 500 are forecast to expand margins by 2019

.. Either shareholders, or workers and Mr Trump, are going to be disappointed.

.. In a downturn, American business may find that its fabled flexibility has been compromised because the politics of firing workers and slashing costs has become toxic.

.. American business may one day conclude that this was the moment when it booked all the benefits of the Trump era, while failing to account properly for the costs.