Chamath Palihapitiya, Founder and CEO Social Capital, on Money as an Instrument of Change

During his View From The Top talk, Chamath Palihapitiya, founder and CEO of Social Capital, discussed how money is an instrument of change which should be used to make the world a better place. “Money drives the world for better or for worse. Money is going to be made and allocated – you have a moral imperative to get it and then use it to make a difference.“

It’s Not Technology That’s Disrupting Our Jobs

The history of labor shows that technology does not usually drive social change. On the contrary, social change is typically driven by decisions we make about how to organize our world. Only later does technology swoop in, accelerating and consolidating those changes.

.. Consider the Industrial Revolution. Well before it took place, in the 19th century, another revolution in work occurred in the 18th century, which historians call the “industrious revolution.” Before this revolution, people worked where they lived, perhaps at a farm or a shop. The manufacturing of textiles, for example, relied on networks of independent farmers who spun fibers and wove cloth. They worked on their own; they were not employees.

In the industrious revolution, however, manufacturers gathered workers under one roof, where the labor could be divided and supervised. For the first time on a large scale, home life and work life were separated. People no longer controlled how they worked, and they received a wage instead of sharing directly in the profits of their efforts.

This was a necessary precondition for the Industrial Revolution.

.. the creation of factory technology was possible only because people’s relationship to work had already changed. A power loom would have served no purpose for networks of farmers making cloth at home.

.. our current historical moment is better understood as a second industrious revolution

.. Over these four decades we have seen an increase in the use of day laborers, office temps, management consultants, contract assemblers, adjunct professors, Blackwater mercenaries and every other kind of worker filing an I.R.S. form 1099. These jobs span the income ranks, but they share what all work seems to have in common in the post-1970s economy: They are temporary and insecure.

.. In the last 10 years, 94 percent of net new jobs have appeared outside of traditional employment.
.. services like Uber and online freelance markets like TaskRabbit were created to take advantage of an already independent work force; they are not creating it.
.. Uber is a symptom, not a cause... shortly after World War II, a Milwaukee man named Elmer Winter founded Manpower, the first major temp agency, to supply emergency secretaries.

.. The emergence in the 1970s of a new, strictly financial view of corporations, a philosophy that favored stock and bond prices over production, of short-term gains over long-term investment. Theories of “lean” corporate organization became popular, especially those sold by management consultants and business gurus.

.. Pundits have offered many paths forward — “portable” benefits, universal basic income, worker reclassification — but regardless of the option, the important thing to remember is that we do have a choice.

 

How to Debate a Populist

In the 1960s, much like today, people with opposing viewpoints struggled to communicate with one another. Yet there was a civility to that era’s public debate that is nowhere to be found today, owing to liberal elites’ understanding that refusing to engage would only reinforce the “us versus them” mentality that fuels radicalism.

.. Dutschke tried to “unmask” Dahrendorf – the liberal establishment intellectual – as exploitative and undemocratic; Dahrendorf countered that Dutschke’s revolutionary rhetoric was naive, more hot air than substance, and ultimately dangerous.
.. The debate began with Thadden detailing his political views, offering an unapologetic assessment of Germany’s role in WWII, and explaining the rise of the NPD. Dahrendorf, a sociology professor, followed with an analysis of the NPD’s diverse membership, which included old Nazis, disillusioned identity seekers, and opportunistic anti-modernists.
..  Dahrendorf was adamant that the NPD’s fate should be decided by the voters, rather than the courts, which had declared the Communist Party illegal. Kaul reiterated this idea in a passionate statement (which had undoubtedly been agreed in advance by East German leaders) about the exclusion of West Germany’s Communists from the debate. Other panelists agreed. A liberal democracy, Dahrendorf concluded, cannot exclude radicals on one side, while tolerating those on the other.
.. It is hard to imagine today’s mainstream politicians and public intellectuals engaging publicly in such profound and mutually respectful debates with today’s radicals and upstarts, whether populists, economic nationalists, Euroskeptics, or something else. Those on the far left and the far right certainly are not engaging one another in this manner. Each side would rather preach to its own audience, accessible within media bubbles where there is little demand for genuine discussion of opposing views.
.. Many establishment leaders nowadays – the so-called elites who are the standard-bearers of the liberal democratic order – seem to believe that the risks of engaging with radical figures are too great: more exposure could mean more legitimacy. But this stance is itself highly risky, not least because it has translated into a willful blindness to the social changes that have fueled extremist ideologies – an approach that comes across to many as arrogant.
.. Recall US Democratic presidential candidate Hillary Clinton’s flippant assertion that half of her rival Donald Trump’s supporters comprised a “basket of deplorables.”
.. One cannot simply wish away extremists. Letting radical movements run their course, as some have suggested, is both reckless and dangerous, given the amount of damage they can do before they fail. To fulfill their responsibility as stewards of the public good, cultural and political “elites” must eschew elitism and find formats and formulas that enable more constructive engagement among diverse groups, including – as difficult as it may be – radical and populist movements.
.. Dahrendorf rightly proclaimed that extremists’ success was a measure of democratic elites’ failings. Like the NPD in the 1960s, the far-right Alternative for Germany (AfD) owes its success in last September’s federal election to the refusal of the country’s political, economic, and academic elites to engage constructively with the public, much less with those the public believed were willing to address their concerns.
.. Defenders of liberal democracy must debate the populists not to change the populists’ minds, but to make the public understand what each party really stands for, not simply against. Yes, this could mean giving populists more airtime, and it risks normalizing extreme views. But the threats associated with an aggressively polarized public sphere – one that extremists have proved adept at exploiting – are much greater.