[HN Gopher] Why is China smashing its tech industry?
       ___________________________________________________________________
        
       Why is China smashing its tech industry?
        
       Author : exceptione
       Score  : 246 points
       Date   : 2021-08-02 14:19 UTC (8 hours ago)
        
 (HTM) web link (noahpinion.substack.com)
 (TXT) w3m dump (noahpinion.substack.com)
        
       | nobody0 wrote:
       | More like smashing FAANG-like hegemony and K-12 riddle-solving
       | army bootcamps.
       | 
       | Given Internet companies are ubiquitous, we sort of equate tech
       | firms to them...
        
       | _448 wrote:
       | The USA tech industry did start with hard-tech. The hint is in
       | the name "Silicon Valley". The spur in innovation in the American
       | tech industry started with companies working on projects from the
       | defence and aerospace industry. Along the way they lost the plot,
       | mostly during the dot-com bubble when the
       | investment/banking/family-office industry(that does not
       | understand tech) got heavily involved into it to make quick
       | money! That diversion from hard-tech to click-bait tech has
       | continued even today, because the investors want quick return
       | whereas for hard-tech you have to have a lot of patience to see
       | positive outcome.
       | 
       | One country that, to some extent, successfully emulated the early
       | Silicon Valley type strategy is Israel that has encouraged lot of
       | personnel from defence and aerospace industry to form commercial
       | ventures.
       | 
       | Not many countries understand this point; many go by the PR bling
       | that is spewed by the USA internet companies(mostly pushed by
       | get-rich-quick minded VCs) and try to encourage this type of non-
       | essential startups in the hope of being "successful similar to
       | Silicon Valley". The definition of successful is obviously is
       | being set by these get-rich-quick VCs rather than the country
       | itself. It is not surprising that you see lot of the
       | VCs/Accelerators/Incubators fund me-too type companies in other
       | geographies in the hope that they will be acquired by companies
       | in the US! It is all bait-and-switch game and not meant to
       | develop R&D and innovation that benefits societies at large.
       | Benefits to the society, if at all there is one, is the by-
       | product or after-thought of this whole process.
        
         | cbHXBY1D wrote:
         | I'll never forget how an employee at a Silicon Valley VC tried
         | to dissuade me from joining Microsoft Research because MSFT
         | wasn't "really a 'tech' company." According to the VC, examples
         | of tech companies were Airbnb or the million "Uber for X".
        
         | ativzzz wrote:
         | It's much easier for Israel to justify investing into "hard"
         | tech that accelerates military power because they are
         | surrounded by ideological enemies and are perpetually at war.
        
         | lasagnaphil wrote:
         | It's illuminating (and equally harrowing) to see how much of
         | the fundamental technology we have today has been researched
         | and invented by the military (the Internet is one prime
         | example), in stark contrast to the widespread belief among
         | today's SV techies that free market innovation is what's
         | driving the tech.
        
       | papito wrote:
       | China is "cooling" certain sectors, to spur growth in physical
       | tech and manufacturing. This is where the future power is - not
       | in social networks and ad sales, it's in _stuff_. Just look at
       | what happens when we can 't manufacture our own chips. Car
       | factories halt. Personal computing prices spike. Military tech
       | sputters.
       | 
       | China is doing what the U.S. would normally do in an effective
       | anti-monopoly action, if our system was not broken and the
       | government not bought with its guts by billionaires floating in
       | tax-cut windfall.
       | 
       | Now we have entities that have more legal resources than the
       | government, which is a recipe for disaster (and runaway legalized
       | corruption).
       | 
       | China sees what happens when you let money run loose through
       | power structures, and it does not want the same fate.
        
         | Nbox9 wrote:
         | > This is where the future power is - not in social networks
         | and ad sales, it's in stuff.]
         | 
         | I strongly disagree. The US was not able to win the Vietnam war
         | with 100x the amount of military stuff. Stuxnet halted Iranian
         | nuclear research. US elections were interfered with by foreign
         | hackers. Microsoft's revenue is >$100B a year, and it's mostly
         | software driven.
         | 
         | Information, data, data-analysis, networking and intelligence
         | is where power comes from.
        
           | papito wrote:
           | And how is your example even relevant to a war from a deep
           | pre-Internet era? What about WWII? What about Desert Storm?
           | There is absolutely no guarantee that your adversary does not
           | outplay you in internet cat and mouse games right from the
           | start, like this recent disastrous scenario shows:
           | https://www.defenseone.com/policy/2021/07/it-failed-
           | miserabl...
           | 
           | And then what? If we think future wars will be won by hackers
           | in hoodies, it's _our_ funeral. An out-of-control hacking war
           | _will_ have to escalate to bare metal war. People will want
           | to see explosions on TV, as they lose power and are unable to
           | gas up their cars.
        
       | Animats wrote:
       | China is not "smashing its tech industry". It's cracking down on
       | private Internet companies that acquired too much power through
       | network effects. This is completely consistent with CCP doctrine.
       | Anything that central has to be state-owned.
       | 
       | Xi declared this year that while digitization is important, "we
       | must recognize the fundamental importance of the real economy...
       | and never deindustrialize." Right. China, remember, has a
       | national industrial policy. It's expressed in the national 5 year
       | plan, which is taken seriously and used to set priorities.
       | 
       | What those priorities are is no secret. The current 5 year plan,
       | the 14th, lists them.[1] Specific technology goals are in blue
       | boxes. Semiconductors, gas turbines, biotech, new energy
       | vehicles, robotics, advanced agricultural equipment. Internet
       | services are mentioned in the Plan. One key line section out
       | here: _" We will strengthen the economic supervision of internet
       | platforms in accordance with laws and regulations, clarify
       | platform enterprise positioning and regulatory rules, improve the
       | laws and regulations concerning the identification of monopolies,
       | and crack down on monopolies and unfair competition. ... We will
       | intensify anti-monopoly and anti-unfair competition law
       | enforcement and judicial efforts and prevent the disorderly
       | expansion of capital."_
       | 
       | If you think this isn't to be taken seriously, go back and look
       | at the 13th 5 year plan and check off the completed items.
       | 
       | [1] https://cset.georgetown.edu/wp-
       | content/uploads/t0284_14th_Fi...
        
         | vikiomega9 wrote:
         | I'm still reading up so looking for resources. What's a good
         | introduction that talks about how the Chinese state is looking
         | at individual choices? 5 year planning makes sense but the
         | implementation is key (India for example had similar planning
         | processes). Is there writing on how Xi or the CCP thinks about
         | incorrect choices in the planning or a fail-safe that prevents
         | what happened to the Soviet Union? Have they ever talked about
         | getting things wrong?
        
         | itmayno wrote:
         | " It's cracking down on private Internet companies that
         | acquired too much power through network effects."
         | 
         | Sounds like smashing to me. Smashing down on private companies
         | and innovations. Smashing down on private wealth and power.
         | Smashing down on freedom and growth. You can tell the dictator
         | is getting desperate if he stops the train of innovation.
        
           | mcguire wrote:
           | That makes the assumption that "innovation" is consumer
           | facing internet technology.
        
             | itmayno wrote:
             | Alibaba isn't just consumer facing internet technologies,
             | look up the vast b2b stuff it does. And other types of
             | companies have been smashed as well like evergrande or
             | Wanda.
             | 
             | Also, do you really think innovation will come from state
             | companies? In that case, why didn't 1980 China or 1980
             | Russia thrive?
        
               | TheDong wrote:
               | > Also, do you really think innovation will come from
               | state companies? In that case, why didn't 1980 China or
               | 1980 Russia thrive?
               | 
               | You need a stronger argument to prove that state-
               | associated companies can't innovate.
               | 
               | There's also plenty of counter examples too. The internet
               | itself was largely created via DARPA, a US state-
               | sponsored research agency. Ditto for the space station
               | and most other space-related achievements prior to
               | SpaceX.
               | 
               | I think the more nuanced, and boring, view is that a well
               | functioning state can innovate, and so can well
               | functioning private companies.
               | 
               | This comment probably isn't the place for it, but I do
               | think for-profit companies will tend towards different
               | sorts of innovation than for-the-public-good government
               | agencies... but yeah, not for this comment.
        
               | vajrabum wrote:
               | DARPA doesn't do research or development. They fund it.
        
         | estaseuropano wrote:
         | Basically, its just antitrust which for a decade or two has not
         | really been enforced in the US, which in turn might be a reason
         | for many of the ills we see in economy and society today.
        
         | endymi0n wrote:
         | Wow, it's actually public... in hindsight, I should probably
         | not be surprised, but it has the same eery feel to me like when
         | I learned that Hitler had actually written down all of his
         | plans around eradicating Jews and Germanic world dominance in
         | his book ,,Mein Kampf" a decade before he put it into reality
         | -- it was just that nobody took it seriously since they thought
         | he was a lunatic.
         | 
         | Maybe it's about time to read the Chinese 5 year plans in
         | depth.
        
           | mrkramer wrote:
           | Yea Hitler wrote in Mein Kampf that he hated Jews and
           | Communism so it should've been taken very seriously since a
           | person like him(German nationalist and fanatic) became
           | chancellor. I don't who expected different behavior than what
           | was written in Mein Kampf. Holocaust and WW2 War could've
           | been prevented if Allies(US, UK and France) invaded Germany
           | in 1933-1939 time period. But they expected Hitler to be
           | European shield against Communism and geo-politic partner.
        
         | majormajor wrote:
         | > "we must recognize the fundamental importance of the real
         | economy... and never deindustrialize."
         | 
         | This hasn't been really put to the test yet, has it? What's the
         | cost of labor delta compared to the places where outsourcing
         | from China would be attractive currently?
        
           | Theodores wrote:
           | In the West the accounting means you can't invest in robots
           | that take years to pay for themselves. It is therefore more
           | profitable to outsource and not have the capital investment
           | on the books.
           | 
           | The Germans do it differently and can get a better return
           | investing in themselves.
           | 
           | In China they have invested heavily in the robots that make
           | the robots. Sure they are playing catch up in some areas, for
           | instance, chips where they don't have a TSMC yet.
           | 
           | Even farming, where do those green and yellow tractors go?
           | Cotton picking in China.
           | 
           | Some China tech is way ahead of the rest of the world. The
           | difficulty of competing is getting really hard hence
           | sanctions against Huawei. They had got 5G and The West didn't
           | even know what it was for.
           | 
           | We have seen it before, Japan was way ahead with electronics
           | and commodity cars. But China has a vast internal market and
           | can proceed without making cheap goods for the West. If
           | Western companies want to outsource to Burkina Faso then
           | fine.
           | 
           | Also into the mix is that Chinese brands are desirable in
           | China and increasingly abroad. China has barely got started.
        
             | walshemj wrote:
             | Not in the experience of Harrods and Burberry in the UK
        
           | lasagnaphil wrote:
           | I think that's the hubris China is currently having: as
           | they've grown stricly because of the reliance of export-led
           | growth, they are now dependent on the global economic order
           | as much as the US is (for its import-led growth). And the
           | ones that initially built the factories in China, can always
           | pack up and move to a different country. So global
           | corporations are now kind of "cycling through" a list of
           | alternate underdeveloped countries to build factories in, and
           | keep going until the options are all exhausted. Some
           | countries are quite receptive to this (like Vietnam, which is
           | undergoing a similar transformation like South Korea and
           | China had in the past), but some countries are not (like
           | India, due to its complex cultural/political legacy it's hard
           | for foreign companies to navigate through).
        
             | walshemj wrote:
             | Thats a good point I have started investing a small amount
             | in Vietnam and other frontier countries.
             | 
             | BFRI and VIEL for anyone whos interested.
        
             | tablespoon wrote:
             | > I think that's the hubris China is currently having: as
             | they've grown stricly because of the reliance of export-led
             | growth, they are now dependent on the global economic order
             | as much as the US is (for its import-led growth).
             | 
             | Honestly, I think the PRC's hubris is more than matched by
             | the US's (and Western world's). They're still overconfident
             | from the collapse of the Soviet Union, and seem to think
             | the chips will inevitably fall on their side, so they still
             | engage with a large amount of wishful thinking.
             | 
             | > And the ones that initially built the factories in China,
             | can always pack up and move to a different country. So
             | global corporations are now kind of "cycling through" a
             | list of alternate underdeveloped countries to build
             | factories in, and keep going until the options are all
             | exhausted.
             | 
             | I'm not so sure...
             | 
             | 1) I think it's ultimately the PRC's goal to have domestic
             | champions replace those global corporations in the global
             | economy (e.g. Apple declines as Huawei ascends)
             | 
             | 2) I don't think the PRC is as stupid as the US was, and
             | will not allow those companies to "pack up and move" to the
             | degree it's disruptive to their ability to provide an
             | unmatched manufacturing supply chain.
        
               | lasagnaphil wrote:
               | > Honestly, I think the PRC's hubris is more than matched
               | by the US's (and Western world's).
               | 
               | Yes, I still definitely agree with that one. US's hubris
               | is the undeniably the largest in the world.
               | 
               | > I think it's ultimately the PRC's goal to have domestic
               | champions replace those global corporations in the global
               | economy (e.g. Apple declines as Huawei ascends)
               | 
               | Maybe, maybe not? We'll see if this goes well as planed.
               | Easier said than done.
               | 
               | > I don't think the PRC is as stupid as the US was, and
               | will not allow those companies to "pack up and move" to
               | the degree it's disruptive to their ability to provide an
               | unmatched manufacturing supply chain.
               | 
               | The point is, companies are already doing this. You'll be
               | surprised how much conglomerates like Samsung has already
               | taken production out of China.
        
               | tablespoon wrote:
               | > Maybe, maybe not? We'll see if this goes well as
               | planed. Easier said than done.
               | 
               | My understanding is that China's manufacturing supply
               | chain is so well-developed that companies like Apple
               | don't think they even have a choice except build their
               | stuff there. The only things they're missing are a few
               | things at the very high end. If they lack a commitment to
               | free markets, its conceivable that they could use that
               | advantage to slowly strangle their global competitors
               | (e.g. allow their domestic champions a
               | price/quality/volume advantages, while keeping the value
               | proposition for global companies just good enough that
               | continued dependence makes economic sense). To counter
               | that, the US would also have to take bold steps away from
               | free market dogma, against the interests if its corporate
               | sector, which has relatively more political power, and
               | against its reigning ideologies [1].
               | 
               | > The point is, companies are already doing this. You'll
               | be surprised how much conglomerates like Samsung has
               | already taken production out of China.
               | 
               | I'd be interested to know how truly disentangled they
               | are. My understanding is that even when companies move
               | production away from China, they're still seriously
               | dependent on China's manufacturing supply chain (e.g.
               | they have to ship all the components from China to
               | Vietnam for final assembly). I'm not aware of any efforts
               | to replicate the range of capabilities elsewhere.
               | 
               | [1] The right would have issues with stepping away from
               | free market economics, and I think the left would be
               | skeptical of the international competition aspect.
        
               | vondur wrote:
               | Funny thing I noticed that the last batch of iMac's I
               | purchased were made in Thailand.
        
           | adventured wrote:
           | > This hasn't been really put to the test yet, has it?
           | 
           | Yes. Their textile industry has been gradually leaving for
           | much of the past decade, as cheaper production exists in
           | several other countries at this point. Textile dominance by
           | China peaked around 10-15 years ago. They will lose labor
           | cost sensitive industries to their cheaper competitors as
           | their economy continues to climb, as labor costs continue to
           | climb. It took many decades for the US textile industry - the
           | world's largest for a while in the 20th century - to be worn
           | down by this same process. During the first 2/3 of the 20th
           | century the US was often a leader in inventing new textile
           | technology and manufacturing processes. Toward the waning
           | days many US textile makers tried to modernize and or
           | consolidate their domestic operations as a competitive
           | advantage, it didn't stop the process. Most sent their
           | manufacturing overseas ultimately. China is currently
           | attempting to modernize, reduce labor in the manufacturing
           | process, and that also won't stop the industry from leaving.
           | Textiles are one of the first major industries that tend to
           | leave due to being particularly labor cost sensitivity.
           | 
           | China is still the world's largest textile exporter, and may
           | retain that crown for a long time yet given their size. A
           | large chunk of their market share is going to be gradually
           | dispersed across two dozen other nations.
           | 
           | Vietnam for example became the largest textile exporter to
           | the US in 2019 (pre pandemic), overtaking China. Vietnam's
           | GDP per capita is $3,600 versus $11,800 for China. Vietnam is
           | in the position that China was 15 years ago in that regard.
           | China will struggle to compete with labor that costs 1/2 or
           | 1/3 what theirs does.
        
             | pasabagi wrote:
             | Isn't that just the plan of every developing country? You
             | start with textiles, then move up the value chain until
             | you're a developed country and can pay for socialism or
             | aircraft carriers or whatever you want.
        
               | adventured wrote:
               | It's not the plan, it is probably an inevitability. If
               | you could automate your textiles, with 1/100th the labor,
               | while retaining it all, you'd still want to keep it even
               | at a reduced labor benefit, rather than see it go to
               | China or elsewhere. China would rather keep all of their
               | textile industry and hyper automate it, than see it leave
               | to countries like Vietnam. Keeping industry like that
               | internally has vast benefits, in terms of profit/savings,
               | capital, technology and economic eco-system, leverage,
               | influence, and so on.
               | 
               | If the US could automate low-value manufacturing through
               | robotics and get a significant cost advantage over China
               | and pull back much of the low-value manufacturing that it
               | lost, while getting very little labor benefit in the
               | process, it would still be ideal for numerous reason to
               | achieve that outcome (tax base, deprive China of that
               | value, onshore capital and technology investment, some
               | construction & maintenance value, wider economic
               | ecosystem, and so on).
               | 
               | China's big problem with this process is of course that
               | they have 1.4 billion people. High-value replacement jobs
               | for so many of their low-value manufacturing workers is
               | something beyond difficult (you don't need 100 million
               | software developers to build China's tech infrastructure;
               | you don't need 10x the workers to build as many planes as
               | Boeing or Airbus do). High-value manufacturing for
               | example doesn't absorb labor like low-value manufacturing
               | does. Their social welfare costs over the next 30-40
               | years will be extraordinary as their demographics rapidly
               | shift toward being an older society. They're already into
               | a workforce decline demographically, those aging &
               | retiring workers begin to shift more to the liability
               | column in terms of cost. They need their workforce
               | employed and pumping tax dollars into the system.
               | Automation is not China's friend, even if they're the
               | ones doing it to themselves (if they had a critical
               | national labor shortage, that would be a different
               | matter).
               | 
               | If China were to take over all of Germany's auto
               | manufacturing (obviously we're talking a huge share of
               | the global auto market), how many jobs is that worth to
               | China and how does that scope to their 1.4 billion
               | context (Germany has a mere 83m people)? What does
               | something like that do for their context. That's the
               | essential China labor and automation problem going
               | forward. They could conquer a lot of high value
               | manufacturing and be worse off overall than they are now,
               | unless they can somehow keep all of their people
               | employed, keep most of their low-value manufacturing
               | employment simultaneously. And if China did use 4x the
               | labor to build the equivalent of Germany's auto output
               | (say they absorb their labor oversupply that way), that
               | then caps the ability for that labor to rise
               | economically, the margins won't be there to support far
               | higher incomes, which has serious social consequences in
               | terms of stability in China long-term. China would
               | probably need to own all high-value manufacturing
               | globally to both keep their people employed and keep
               | incomes rising like they have been.
        
             | [deleted]
        
         | lasagnaphil wrote:
         | Maybe the headline's a bit misleading, but what you're saying
         | is almost exactly what the article is talking about. (The
         | article immediately refutes the notion of "smashing its tech
         | industry" right away)
        
           | ZeroGravitas wrote:
           | The article is mostly weird kremlinology of what the chinese
           | leadership are up to. Which seems unnecessary if they're
           | widely publishing 5 year plans that tell you what they're
           | doing.
           | 
           | Similar to Tesla's secret plan to produce cheaper and cheaper
           | vehicles at larger scale, the boring truth isn't a big click
           | winner.
        
             | seanmcdirmid wrote:
             | Most people, especially in the west, aren't reading Chinese
             | 5 year plans very closely.
        
               | viscanti wrote:
               | What part of the 5 year plan outlined the strategy behind
               | why the CCP went after DIDI? I'm genuinely curious and it
               | might be more useful to link to the relevant parts. Some
               | people might actually be interested in reading those and
               | better understanding this.
        
               | thujlife wrote:
               | anti monopoly?
        
             | Animats wrote:
             | Yes. The 5 year plans contain a lot of verbiage, and sound
             | like political speeches in part. But you look in there and
             | find specific goals. Sometimes very specific: "We will
             | accelerate the large-scale deployment of 5G networks,
             | increase the user penetration rate to 56% ...
             | comprehensively promote the commercial deployment of
             | Internet Protocol Version 6 (IPv6)."
             | 
             | There's identification of very specific technologies that
             | currently need to be imported: "high-purity electronic
             | materials such as photoresists for ICs." There's realism
             | rather than hype: "Promote the demonstration operation of
             | the C919 large passenger aircraft and the serialized
             | development of the ARJ2I regional passenger aircraft." The
             | C919 project, to build an airliner comparable to the Airbus
             | A320, hasn't been going well, although prototypes are
             | flying. So the goal for this plan is merely "demonstration
             | operation". The ARJ2I is a 90-seat or so regional airliner
             | now in early production. So those goals should be met.
             | "Dominate world aircraft industry" might be nice, but
             | that's not in the 5 year plan.
             | 
             | There's a longer range 2035 goals document, in which one
             | goal is to get GDP per capita up into the middle of the
             | developed country range.
        
           | xchaotic wrote:
           | but they're 'smashing' the likes of Ant Financial who were
           | doing predatory, unsecured lending on an unprecedented scale.
           | So IMO the thesis of smashing 'Internet' companies is
           | incorrect - they're just making sure economy doesn't go into
           | bubble territory (lending fuels spending) and the likes of
           | Jack Ma, who are detached from the party don't get too much
           | power/money.
        
             | viscanti wrote:
             | Or Didi who had the nerve to IPO outside of China on the
             | NYSE on a date the CCP thought was too close to a party
             | anniversary.
        
               | sudosysgen wrote:
               | The Chinese central government was always really
               | ambivalent about foreign IPOs. DiDi has too much control
               | over domestic markets for the Chinese to be comfortable
               | with foreign influence. I don't think it has anything to
               | do with the anniversary.
               | 
               | Actually, the CCP never formally accepted the foreign
               | stock ownership structure, for example. It was always a
               | grey area.
        
           | polote wrote:
           | >Maybe the headline's a bit misleading
           | 
           | Nah, a lot of people just don't read the articles before
           | commenting, whether it is on HN or anywhere else
        
       | whatshisface wrote:
       | Don't assume that there's a strategic explanation concerning
       | externally visible factors when the true explanation may concern
       | strategy, but only around internal factors.
        
       | clipradiowallet wrote:
       | Here's a conspiracy theory...China is _not_ smashing its ' tech
       | industry. The CCP could be repositioning [financially] within the
       | sector. Step 1 is to add regulation - which depresses market
       | prices and gives the state more power. Step 2 is to swoop in and
       | buy as much as is available at the [newly] depressed prices.
       | 
       | It's unlikely, but in their position it's what I would want to
       | do.
        
       | ilamont wrote:
       | I believe we're seeing yet another example of an ossified and
       | hierarchal Chinese Communist Party struggling to maintain control
       | over real or imagined internal threats.
       | 
       | Under the CCP, the "rights" pendulum swings wildly for society
       | and the economy, alternating between openness and crackdowns.
       | Some policies seem well thought out, and then you have edicts
       | which seem impulsive and extreme with little regard to long-term
       | consequences or the impact on China's people.
       | 
       | 100 flowers/Great Leap Forward.
       | 
       | Cultural Revolution/Deng reforms.
       | 
       | Tiananmen/hypernationalism.
       | 
       | Tech has enjoyed a relatively open hand for two decades. Now the
       | fist is closed and comes smashing down.
        
         | whydoibother wrote:
         | Why do you have the same poorly informed take posted twice?
         | (https://news.ycombinator.com/item?id=27976920) Couldn't find
         | any other anti-CCP talking points to use?
        
         | zwieback wrote:
         | I also think this much simpler explanation is at least worth
         | considering.
        
       | ppeetteerr wrote:
       | China's investment into hard-tech (semiconductors, etc) doesn't
       | not mean it can't also allow for the growth of consumer tech. For
       | instance, we subsidize farming to keep it state-side but we don't
       | prevent food processing companies from growing and consolidating.
       | 
       | Maybe the point here is that the government in china wants to
       | always be between the consumer and the service, which makes a lot
       | more sense. Maybe Alibaba and the like have a connection to every
       | person and the gov'ment is threatened by that relationship.
       | 
       | There are many possibilities but I don't necessarily agree with
       | the conclusion of the author: that to grow their hard-tech
       | industry, they have to punish consumer tech.
        
         | japhib wrote:
         | > doesn't not mean it can't also allow for the growth of
         | consumer tech
         | 
         | I can't understand this sentence haha ... Too many "nots"
         | 
         | > I don't necessarily agree with the conclusion of the author:
         | that to grow their hard-tech industry, they have to punish
         | consumer tech.
         | 
         | I don't think the author is trying to argue that this strategy
         | is true -- I think they're just trying to explain China's
         | behavior.
        
       | [deleted]
        
       | caeril wrote:
       | > China may simply see things differently. It's possible that the
       | Chinese government has decided that the profits of companies like
       | Alibaba and Tencent come more from rents than from actual value
       | added
       | 
       | Excellent observation, and I hope, for China's sake, that this is
       | the reason.
       | 
       | The United States is likely in for a long-term rude awakening
       | when it finally realizes that an economy predicated on negative-
       | value-add activities like clicking heart icons on photos,
       | repackaging financial securities into products with impossible-
       | to-detangle risk profiles, advertisement and addiction
       | optimization, and political outrage, will not remain any
       | definition of "global superpower" for long.
       | 
       | Facebook and Netflix are excellent examples of companies that
       | contribute greatly to our GDP whilst simultaneously draining our
       | reserves of _actual_ capital and mental health.
        
         | usaar333 wrote:
         | Alibaba and Tencent are hardly purely "get people addicted"
         | companies.
         | 
         | Together, they power nearly the entire retail transaction
         | market in China. Alibaba heavily drives commercial transactions
         | and Tencent powers the vast amount of personal communication
         | (WeChat).
         | 
         | They are quite profitable as effective monopolies, but are very
         | valuable to society.
        
         | rakmos wrote:
         | You missed the giant gaping time sink that is the video game
         | industry.
         | 
         | I also think including this in the discussion will, perhaps,
         | emphasize the nuance of what I believe you're indirectly
         | referencing -- the economics of how humans choose to spend
         | their time (sometimes referred to as the "Attention Economy").
         | 
         | I believe literally optimizing for something such as GDP fails
         | to take into account freedom / liberty which is likely
         | something most on this website would agree is incredibly
         | valuable in a society.
         | 
         | I think the difficulty is in creating a consensus around what
         | is acceptable relative to the "Attention Economy". It might
         | even be impossible given that this seems almost
         | indistinguishable from culture -- and there will likely never
         | be a single unified culture if and until something as paradigm-
         | shifting as a multi-planetary species is realized.
        
           | thedudeabides5 wrote:
           | I dunno man, you ever seen the genZs play fornite? Not sure
           | it's a waste of time so much as training for some weird
           | future in the computer
           | 
           | https://www.youtube.com/watch?v=GKd2KpGkFJ4
        
             | desert_boi wrote:
             | Never felt quite as old as watching that.
        
           | pm90 wrote:
           | The video game industry is one of the key factors to the
           | success of the US technology industry. Some of the most
           | innovative software is written by game developers. As we move
           | into a future where AR/VR and digital worlds will become
           | commerce hubs, the US is arguably incredibly well set up to
           | take advantage of it.
           | 
           | Video game bashing seems like another moral panic to me.
           | People are spending more time playing video games than
           | slaving away flipping burgers. So what?
        
             | ativzzz wrote:
             | The argument I get from the article is that the video game
             | industry will not strengthen the U.S. geopolitically versus
             | China compared to investing into "hard" technology like
             | better semiconductors or more advanced military hardware.
        
               | pm90 wrote:
               | I don't understand why it has to be a choice.
               | 
               | The Video Game industry seems like its doing just fine
               | without Government assistance. The Government can focus
               | on investing in creating manufacturing hubs in the US
               | instead.
               | 
               | Shortage of labor? Create a new Visa and citizenship
               | pathway specifically for electronics engineers, while
               | investing in US universities to expand the EE departments
               | and scholarships related to EE.
               | 
               | Its all possible if the US Government wants to.
        
             | rakmos wrote:
             | Just to clarify, I brought up the gaming industry to
             | highlight the nuance of the discussion and am in no way
             | advocating for bashing it.
             | 
             | As you have articulated, innovation tends to manifest when
             | humans spend their attention on things that also further
             | drive the demand for their attention.
             | 
             | The point being that the context here is significantly more
             | gray than black / white.
        
         | mjol wrote:
         | If you really believe that entertainment doesn't improve the
         | human experience, I feel sorry for you.
        
           | yarky wrote:
           | The OP is probably talking about the psychological impact of
           | washing Netflix restlessly during long periods of time. That
           | generates GDP, but the net impact on society might not be
           | positive. Same thing with the psychological issues associated
           | with social media addiction.
        
             | ub99 wrote:
             | People watched TV for many hours daily for decades now. I
             | agree that it's not healthy, but it's not purely a new
             | technology's fault.
        
               | freebuju wrote:
               | The TV always has been a stationary device. But now you
               | can carry it with you everywhere you go in the form of a
               | Netflix-capable device ala smartphone/laptop.
        
           | goodpoint wrote:
           | There is the occasional bit of entertainment and there is
           | https://en.wikipedia.org/wiki/Escapism#Escapist_societies
           | 
           | One thing is watching some dumb action movie once a week,
           | another thing is filling one's free time with entertainment
           | every day.
        
           | nathias wrote:
           | the US entertainment doesn't improve the human experience
        
           | bordercases wrote:
           | If you really believe that mass culture doesn't denigrate the
           | human experience, I feel sorry for you.
        
         | Rapzid wrote:
         | > economy predicated on negative-value-add activities like
         | clicking heart icons on photos
         | 
         | I think you have this backwards. These social networks are
         | predicated on the businesses that are generating enough
         | revenues to spend on ads with them.
         | 
         | EDIT: To add some more context USA GDP in 2019 was 21.4t .
         | Facebook's revenue is 0.004 of that number.
        
         | vikiomega9 wrote:
         | Indeed, one of the more interesting ideas I've been considering
         | is how does society think about the delayed effects on mental
         | health and attention deficit. For example, one might argue
         | maybe Netflix is easier to moderate at the level of a family or
         | community, like having parental locks on time spent on quality
         | content. But what do you do with Internet Porn? There is enough
         | evidence that novelty stimulation has detrimental effects. For
         | either scenario, the internet has made it easier to consume
         | more and at a faster rate, but we don't have a quick and easy
         | mechanism to talk about these things and develop cultural
         | practices. One of the more interesting ideas for me is finding
         | that balance between liberal individual right to choice and
         | recognizing all systems including human society is a feedback
         | loop and drifts into failure (either expanding freedoms or
         | curbing them).
        
         | will4274 wrote:
         | > Facebook and Netflix are excellent examples of companies that
         | contribute greatly to our GDP whilst simultaneously draining
         | our reserves of actual capital and mental health.
         | 
         | It's not so clear to me that this is true. The fundamental
         | question is - if not this, then what? If you accept that people
         | can only work a certain amount, then a "perfectly" "productive"
         | society involves people working just that amount, and then
         | going home and entertaining themselves the amount that is
         | necessary to recharge, safely, and then repeating. If not
         | Netflix, then what? Alcohol and drunk driving?
         | 
         | I'm not saying watching Netflix is what we should aspire to,
         | but compared to the alternatives, it seems reasonably likely to
         | contribute to economic growth. A passive workforce works.
        
         | aoleinik wrote:
         | Out of curiosity, what _should_ the US be working on? The only
         | two things I can think of that really needs more man hours is
         | space travel and quantum computing, but those fields are
         | generally far from being revenue generating and require
         | mountains of initial investment.
         | 
         | I agree that ad tech and social media are net negatives, but
         | what are the alternatives? A dead economy, where most of the
         | money circulates on necessities?
         | 
         | Not asking this sarcastically or rhetorically - genuinely want
         | some good insight on what people who say the current direction
         | of the US is poor think the direction should be.
        
           | TylerLives wrote:
           | Medicine, robotics, social media that improves people's
           | lives, maybe fix universities (or create an alternative. You
           | can learn a lot on the internet, but social aspect of it can
           | be improved), ...
        
           | dnautics wrote:
           | To some degrees with those two things if you do it wrong,
           | "just adding man hours" to those endeavors can slow progress,
           | not accelerate it
        
         | billytetrud wrote:
         | You have a rosy view of the oppressive actions of an
         | authoritarian government. It should be noted that the author
         | does _not_ think that is the reason China is doing what it 's
         | doing.
         | 
         | Netflix is not draining capitol and not sapping mental health.
         | It was a massive innovation that saved people lots of time
         | (wasted watching TV ads) and money ($10/mo rather than $100/mo
         | for TV). It worked so well every other major media company has
         | copied it's model.
         | 
         | Facebook is often shit on, but it was useful in it's time. It's
         | a tool people can decide to use oe not use, and how to use it
         | if they do. We're learning as a society how to do this.
         | 
         | But it's very clear the solution is not for a government to
         | smash those companies. That is very clearly an evil action.
        
         | dash2 wrote:
         | Freemarket choices of what to spend money on can certainly have
         | problems. It'd be bold to assume that the dictator's choices
         | will be better for their people, though. The USSR spent its
         | money on tanks: https://blogs.warwick.ac.uk/markharrison/entry/
         | the_soviet_ec.... Will China be different? Or sometimes, are
         | tanks the right choice? Let's hope not.
        
         | triceratops wrote:
         | Facebook, sure. Why Netflix? TV and movies have always been
         | around. The US owes its status as a cultural superpower to
         | Hollywood. Too much TV and movie-watching isn't good for a
         | nation, sure, but you could make that argument about any
         | pastime.
        
           | 74d-fe6-2c6 wrote:
           | Communication has also been always around. The problem is the
           | abundance - same with fat and sugar and cocaine. A little is
           | fine, a lot is bad.
        
             | triceratops wrote:
             | Entertainment on TV has been abundant for nearly 50 years,
             | ever since the advent of cable.
        
           | jefftechentin wrote:
           | Not sure how valid but I think a case from this hypothesized
           | Chinese Government perspective can be made even without
           | criticizing Netflix itself.
           | 
           | When Hollywood was built in the 1920's it was not exactly the
           | backbone of the economy. The article argues that the Chinese
           | Government sees value in the economy beyond GDP goes up and
           | cash flows good. Technology and manufacturing are important
           | to national security.
           | 
           | The article quote Xi Jinping saying "we must recognize the
           | fundamental importance of the real economy... and never
           | deindustrialize." I guess the national question for the other
           | super power is how important is this "real economy" to
           | itself. Is too much talent and labor sucked up in profitable
           | activity that is suboptimal for a nation? Are these 21st
           | century company's like Netflix good enough for our nation?
        
             | triceratops wrote:
             | > "we must recognize the fundamental importance of the real
             | economy... and never deindustrialize."
             | 
             | This is a valid point, and I tend to agree with it. However
             | I see entertainment as part of the "real" economy. It's an
             | incredibly old industry, provides real value to nearly
             | every human being, creates high-, medium-, and low-skilled
             | employment across a wide variety of disciplines, can allow
             | your culture to punch above its weight, and produces art
             | that endures across generations and centuries (for example,
             | Shakespeare).
        
               | lasagnaphil wrote:
               | The real problem is that when the basic infrastructure
               | that maintain the entertainment industry is gone, then
               | the whole thing breaks down in shambles. For example,
               | someday there might be a global shortage of electronics
               | due to geo-political factors, and then you will have no
               | chips to make those fancy consoles and PCs with.
        
               | triceratops wrote:
               | That's the thing about the entertainment industry though.
               | It's been around since the amphitheater was the pinnacle
               | of technology.
               | 
               | Literally all you need to entertain people is talent and
               | a space.
        
           | mc32 wrote:
           | Netflix provides on-demand all you can view content. It
           | doesn't require any "cooling period" before the next episode.
           | You don't have to engage with family, friends or work. You
           | can stream all day and live in fantasyland.
        
             | triceratops wrote:
             | TV has been like that since the advent of cable.
        
               | dragonwriter wrote:
               | > TV has been like that since the advent of cable.
               | 
               | No, it hasn't. It has been somewhat since the much more
               | recent introduction of "on demand" programming to cable,
               | but that was basically just the introduction of streaming
               | into cable in response to streaming services.
        
               | triceratops wrote:
               | Sorry, I meant once cable rolled around, there's always
               | been something to watch on TV. It may not have been
               | interesting to normal people, but to an addict that's not
               | going to matter. There was also the option of buying or
               | renting a ton of movies or DVDs and watching them one
               | after the other. This honestly reeks of a moral panic to
               | me.
               | 
               | I think "on-demand" is a blessing. We are no longer tied
               | to broadcaster schedules, have to remember to "program
               | the DVR", writers don't have to write a cliffhanger every
               | 12 minutes for an ad break.
        
             | tomjen3 wrote:
             | That was the case with cable and, before that, radio.
        
             | WalterBright wrote:
             | > You can stream all day and live in fantasyland.
             | 
             | I tried that. It soon becomes utterly boring, no matter how
             | good the show is.
        
               | mc32 wrote:
               | It probably depends on inner will and psychological stage
               | of mind. Do you mind being unproductive and such.
        
               | WalterBright wrote:
               | Maybe I'm different. Passive entertainment is dull to me.
               | I don't watch other people play sports, I want to play
               | them myself. Traveling and looking at sights rapidly gets
               | very dull.
        
             | 411111111111111 wrote:
             | That's been the case with books before Netflix too...
             | 
             | To be fair, the quantity and availability of
             | novels/fictions was pretty low before the fifties, so I
             | guess there is some truth to it... Though the timeframe is
             | definitely longer then only Netflix's existence
        
               | mc32 wrote:
               | With books you have to actually read. It's an active
               | thing. Vegging out on the couch or bed even, is passive.
               | Often you don't even have to think because it's mostly
               | action with lots of repetition and little mystery.
        
               | senko wrote:
               | You're moving the goalposts. Whether reading is better
               | than watching is an interesting debate unrelated to the
               | topic at hand.
               | 
               | I'd happily veggie out on a couch with a favorite book
               | series and live in fantasyland for days (alas, real world
               | interferes...).
        
               | mc32 wrote:
               | I don't think so. Of course we can read pulp. Evenso, I
               | doubt people would read as much pulp as they'd watch all
               | you can stream programming.
               | 
               | Given the option of gorging on books or gorging on
               | Netflix over a long weekend dawn till dusk, I bet most
               | people would choose Netflix. If you randomly divided the
               | people into those two groups and made them read and the
               | others watch, more readers would wash out than watchers.
        
               | Apocryphon wrote:
               | Just wait until VR fulfills its hype.
        
           | crossroadsguy wrote:
           | Netflix has one of darkest UX patterns hidden in plain sight.
           | Or not even hidden maybe.
        
             | hiq wrote:
             | Can you be more explicit? Are you talking about auto-play?
        
         | epivosism wrote:
         | Is there a name for the question of distinguishing useful
         | economic activity from rent-seeking? It seems tied up in lots
         | of other system/corruption/control related questions - cancer,
         | budget spending, regulation etc.
         | 
         | It feels like there can never be a trustable implementation of
         | a "value or rentseeking?" oracle, since the system implementing
         | it would also be under selection and pressure from the virtual
         | gains to be had from corruption.
        
           | kmeisthax wrote:
           | I don't think there is such a name. But you're on the right
           | track about it being difficult to distinguish between value
           | and rent-seeking.
           | 
           | One thing to note is that governments themselves are, by
           | definition, rent-seekers. This is inherent to how a
           | government - a monopoly on the legitimate use of violence
           | within an area - works. Once you are sovereign within a
           | territory you can extract rents in the form of taxes, and if
           | you _don 't_ extract enough you will be deposed by someone
           | who does.
           | 
           | Most governments also tend to encourage their own industries
           | to rent-seek as well. If your country needs heavy industry or
           | scientific research or cultural behemoths, it's far easier
           | and politically defensible to construct new narrow property
           | regimes (e.g. copyright, patents, PDOs, etc) for those
           | companies to exploit rather than just paying them subsidies.
           | These regimes can be selectively weakened when you need to
           | build your industry domestically (what the US did to the UK,
           | or what China did to the US) and then strengthened later when
           | you need to protect it internationally (what the US forced
           | into WIPO).
           | 
           | Very little of capitalism is actually adding value, in the
           | sense that you have a business that hires people, buys
           | materials, and turns them into goods and services at a
           | prevailing market rate. At the lowest rungs of the chain,
           | sure - you might have, say, petite-borgeouis crustaceans
           | hiring workers to cook food and sell it to people who need
           | it. But that's not where most of the actual profit is.
           | Compare that to, say, a fast-food franchise; which doesn't
           | usually run any restaurants or sell any food. They instead
           | sell trademark rights and supplier relationships. In
           | particularly egregious systems like McDonalds, they even rent
           | their franchisees the land that the restaurant must be housed
           | in.
           | 
           | Left-wing critiques of capitalism are typically extra-cynical
           | about this, and would consider even the small profit Mr.
           | Krabs makes on burgers to be rent, not value. This is usually
           | in the context of the employee-business relationship,
           | however; not the business-customer one. Small businesses
           | generally don't extract a premium on the goods or services
           | they sell just because they're the only company that
           | _happens_ to own a stove or know some secret recipe. But in
           | the context of employees, they _are_ getting paid less for
           | their labor, albeit in exchange for not having to bear up-
           | front capital costs or deal with inconsistent revenue.
           | Whether or not this constitutes rent or value is most likely
           | a political opinion, not something that you could actually
           | devise some economic criteria for.
        
             | epivosism wrote:
             | Excluding the direct political arguments, is there hope for
             | a clean way to distinguish these types of activities:
             | 
             | * Someone who literally figures out a new, cheap way to
             | make a drug which cures a real disease
             | 
             | * Someone who, as soon as they get the right to, imposes
             | license fees which serve no valid purpose, and profits in
             | status & wealth from these new duties.
        
               | alexashka wrote:
               | Sure, it'd be a matter of simplifying the law code and
               | posting everyone's financial information for everyone to
               | have access to.
               | 
               | In other words, once it becomes feasible to 'follow the
               | money', it'll be somewhat trivial to see who's doing what
               | and to what ends.
               | 
               | Notice that this problem doesn't exist in smaller
               | communities, because everyone knows what everyone else is
               | up to.
               | 
               | This is a data access problem that persists because it is
               | profitable for people who have the power to keep everyone
               | else in the dark regarding their machinations.
        
               | kmeisthax wrote:
               | No, because they're the same thing. We pay for inventions
               | with rent seeking behavior. One person's justified
               | license fees are another person's patent or copyright
               | trolling.
               | 
               | The original idea with these sorts of things, at least in
               | the US, is that we'd have administrative procedures and
               | court adjudication to limit the harm that could come from
               | that behavior. In practice, the administrative procedures
               | are only a bar to the least knowledgeable plaintiffs, and
               | the mere threat of litigation over a marginally valid
               | claim is often enough to coerce most defendants into a
               | settlement. _Nobody_ wants to actually litigate whether
               | or not a patent is obvious, or a copyright owner has been
               | surreptitiously seeding their own works on BitTorrent.
               | 
               | There's also a question about whether or not your two
               | examples are, in practice, always different cases. What
               | if the person in the first example decides to not license
               | their drug at all, so they can do the manufacturing
               | themselves and control the price? That would be identical
               | behavior to the second example... but they still made a
               | useful invention. They're the same person.
               | 
               | You could legally restrict "non-practicing entities" from
               | enforcing patent rights, but that's only a subset of all
               | rent-seeking patent owners. Remember: the entire point of
               | the system is to enable rent-seeking in lieu of up-front
               | payments.
        
           | exceptione wrote:
           | I think you are looking for the term Real Economy?
           | 
           | From https://en.wikipedia.org/wiki/Real_economy
           | 
           | "The real economy concerns the production, purchase and flow
           | of goods and services (like oil, bread and labour) within an
           | economy. It is contrasted with the financial economy, which
           | concerns the aspects of the economy that deal purely in
           | transactions of fiat money and other financial assets, which
           | represent ownership or claims to ownership of real sector
           | goods and services."
        
             | epivosism wrote:
             | Hmmm, that's an interesting distinction; But someone who
             | intelligently evaluates startups and picks a more genuinely
             | productive one (likely to discover new pure gains) to give
             | money to seems to qualify as a valid outcome. Unlike things
             | which are very hard to justify, like directly impeding such
             | people for selfish reasons.
             | 
             | Perhaps it's about selfishness?
        
               | nostrademons wrote:
               | I think one useful distinction might be "Imagine that the
               | state collapsed and you could no longer count on guys
               | with guns to defend your pieces of paper. What happens to
               | your income?"
               | 
               | The obvious losers would be landlords (the literal
               | definition of "rent-seeking"), because without that piece
               | of paper, there's just a tenant that lives in that
               | apartment and you have no claim on any of their money. A
               | carpenter who actively builds a house, however, is
               | creating value: even without the state, people still need
               | houses, and he has useful skills for things people want.
               | Financial assets would crash, trademarks would become
               | worthless, there'd be open season on patents. Medical
               | care is still creating value. People who grow and prepare
               | food would be very useful. Software engineering is in the
               | middle: _new_ software that people use is creating value,
               | but just sitting on a service that you own exclusive
               | rights to because it 's protected by copyright & trade
               | secret laws is rent-seeking.
               | 
               | This also illustrates a lot of the confusion between the
               | two. Without the state to enforce contracts, there's no
               | way to tie "the value you create now" with "getting paid
               | for it later". When a carpenter builds a house, he now
               | owns a house that he can pay for later - but without the
               | state to enforce his right to the deed of his house, he's
               | got nothing to sell and no reason to invest the labor in
               | the first place. Same with the service that the software
               | engineer creates and the drug that the biologist
               | discovers.
               | 
               | You could look at rent-seeking as "property rights that
               | have extended beyond the public's attention span".
        
         | cryptica wrote:
         | I was thinking along the same lines so it's interesting to see
         | that others have come to the same conclusion.
         | 
         | IMO, large parts of the tech industry are artificial and fueled
         | entirely by monetary policy.
         | 
         | If reserve banks in the west stopped expanding the money
         | supply, large parts of the tech industry would be wiped out;
         | they would quickly be revealed as negative-value industries.
         | 
         | With limited autonomy over their own global monetary policies,
         | this was the only way China could fix this problem.
        
         | danjac wrote:
         | I'll bet you could pick up a random op-ed from a 1960s Readers'
         | Digest and someone would be making the argument that Americans
         | spend too much time watching TV and pouring their creative
         | energies into advertising, cosmetics and pop records while the
         | Soviets are conquering outer space and South East Asia.
        
           | jszymborski wrote:
           | Yah, there is this incomprehensible gnawing notion that
           | crushing oppression is somehow a great way to innovate, and
           | that liberty and self-expression is no more than dalliance.
        
           | ethanbond wrote:
           | Thankfully our competition at the time were agricultural
           | societies LARPing as industrial ones and then a big pile of
           | ruins in Europe.
           | 
           | Not so today
        
           | Apocryphon wrote:
           | And at least back then you could point to statistical trends
           | indicating that American poverty, income inequality, and
           | standard of living were all trending in a desirable
           | trajectory.
           | 
           | Also, the moon landing.
        
             | dash2 wrote:
             | Yes, but it was also a time when Paul Samuelson and other
             | economists predicted that the USSR would overtake US GDP by
             | 1984: https://marginalrevolution.com/marginalrevolution/201
             | 0/01/so...
        
           | throw_m239339 wrote:
           | The big difference here is that US manufacturing didn't over
           | rely on the soviet back then, nor where they massively buying
           | US bonds...
           | 
           | What's the equivalent of Shenzen in US?
        
             | epicureanideal wrote:
             | Interestingly, despite not having large, obvious,
             | centralized manufacturing hubs, the US is not far behind
             | China in overall manufacturing output, despite putting far
             | less effort into it.
             | 
             | https://www.brookings.edu/research/global-manufacturing-
             | scor...
             | 
             | US is at 18% of global manufacturing vs China's 20%, but
             | the US only gets 12% of it's overall GDP from manufacturing
             | compared to China's 27%, and with about half the percentage
             | of it's workforce (with a much smaller workforce).
        
               | sudosysgen wrote:
               | Only if you measure manufacturing in dollars, which is
               | then artificially inflated by the military sector.
               | 
               | If the US had to manufacture the products that are
               | currently manufactured in China, the amount of dollars
               | generated would be lower, or the share of people employed
               | in manufacturing would explode. GDP would of course
               | decrease.
        
         | anotherman554 wrote:
         | I'm surprised you put Netflix in there with Facebook. Do they
         | not have television in China?
        
           | nceqs3 wrote:
           | Yeah I agree with the FB part but Netflix? The chinese
           | audience consumes huge amounts of video content.
        
             | caeril wrote:
             | Asia/Pacific region consumes, on average, 154 minutes per
             | day of all media, compared to North America's 293.
             | 
             | I'm old enough to remember the general optimism we in
             | technology had about the unlocking of human productive
             | potential as automation and globalization freed us from the
             | constraints of scarcity. Marshall Brain, Clay Shirky, and
             | many others write extensively on this zeitgeist.
             | 
             | But that's not what ultimately happened. the zombification
             | of our attention that began in the 1950s has accelerated in
             | the last two decades. We're not volunteering our free time
             | to space exploration collectives, life extension self-
             | experimentation in biohacking hackerspaces, or even
             | traditional enterprises like Habitat for Humanity.
             | 
             | We're clicking heart icons on posts bemoaning billionaires
             | conducting private space exploration, getting angry at
             | CRISPR researchers on Twitter, and passively consuming
             | "marathons" of Hollywood renditions of dystopian future
             | worlds.
             | 
             | This is to say nothing of the fact that we don't even have
             | all that much more free time to begin with. Not because
             | we're all working for SpaceX or in cancer research
             | laboratories, but because the vast majority of the very
             | people CAPABLE of doing so (IQ is in limited supply and not
             | evenly distributed) are actively recruited to make iphone
             | apps more addictive, make pornography engagement higher,
             | and make front-running retail options order flow faster.
             | 
             | Apropos of Netflix (or in this specific example, Amazon
             | Prime Video): There are likely 40 million hours passively
             | poured into marathons of The Expanse in North America, by
             | people with an average IQ in excess of 115 (just by virtue
             | of the type of audience). What if half (approximately the
             | NA/Asia split) of those hours were instead poured into
             | activities that actually got us closer to the technologies
             | depicted?
             | 
             | Well, the Chinese are doing it. We're not.
        
               | coryrc wrote:
               | The Expanse (and Star Trek before it, etc) provides the
               | inspiration to make the effort. They aren't the problem.
               | It gnaws at me daily that I'm not working for SpaceX, and
               | only because of science fiction like that. I don't (yet)
               | because of work/life balance first and money second.
               | Maybe I should apply for BO.
        
               | gamblor956 wrote:
               | It seems you're just complaining that more people aren't
               | doing work for free, in their free time away from work?
               | 
               | But even there, you're wrong about the
               | activities/technologies you're complaining about. HfH,
               | food banks, shelters, and other non-profits with limited
               | capacity for volunteer work have wait lists several
               | months long in my area. Only billionaires can explore
               | space right now, so why would the rest of us be forming
               | space exploration collections for something that is still
               | a decade or two away? Tons of people self-experiment or
               | participate in bio-hacking; this simply isn't the forum
               | for them to discuss their projects.
               | 
               |  _Well, the Chinese are doing it. We 're not. _
               | 
               | Really? Citation needed that millions of Chinese are
               | working in the free time on any of what you talked about.
        
         | duxup wrote:
         | The problem is making those predictions. I'm not sure anyone
         | out there is able to decide 'this business is a net good only
         | do that' and come out ahead without stumbling just as much.
         | 
         | That's pretty much a game of predict the future, get it wrong
         | on economy scale and you don't have anyone doing anything not
         | according to plan... you can / will get a disaster even if you
         | get it right here or there.
         | 
         | And I'm not sure that's the point anyway. China could simply
         | ban "clicking heart icons on photos" and wipe out domestic
         | demand outright, and as far as risky financial deals ... China
         | seems to have no problem with that.
        
         | tablespoon wrote:
         | Or even more succinctly: financial value != value to society.
         | Sometimes there's alignment, but very frequently there is not.
        
           | billytetrud wrote:
           | When it's out of alignment, usually it's because of
           | regulatory capture.
        
             | triceratops wrote:
             | Not always. Tobacco generated enormous profits even when
             | there was no regulatory heat on it.
        
             | tablespoon wrote:
             | > When it's out of alignment, usually it's because of
             | regulatory capture.
             | 
             | No. The GGP's examples are a direct counterexample to that
             | idea.
             | 
             | Being a little more general: based on past experience, I
             | interpret general complaints about "regulatory capture"
             | without further clarification as complaints about
             | regulation in general and advocacy for "market solutions"
             | as an alternative. However, a poorly regulated market will
             | almost certainly result in a great many monopolies and
             | businesses that convert some negative externality into
             | private profit, which are the apotheosis of the idea that
             | financial value != value to society.
        
           | jjoonathan wrote:
           | Yeah, the day I realized that the economic notion of value
           | was weighted according to the wealth of those creating the
           | demand, while the colloquial definition generally isn't, _a
           | lot_ of mismatched puzzle pieces fell into place. It was
           | probably the single most successful update to my worldview
           | (measured in terms of predictive power) that I have ever
           | made.
        
             | techbio wrote:
             | Can you expand on this insight about weighting value and
             | its predictive power or share a source?
        
               | wombatmobile wrote:
               | Economists and markets define the value of something as
               | whatever someone will pay for it today.
               | 
               | Successful parents and sage founders define value
               | differently.
               | 
               | They don't see dollars. They see sense.
        
               | techbio wrote:
               | This is the definition of value I am familiar with--
               | whatever the buyer will pay.
               | 
               | I am unsure what colloquial definition GP refers to as
               | the counterpoint. Surely you aren't both suggesting sense
               | and dollars are non-overlapping?
        
               | majormajor wrote:
               | I have a similar but different take on the weighting
               | around politics.
               | 
               | Our politicians are influence (unavoidably!) by the
               | people who have the most time and money to spend lobbying
               | them. Even if you reformed lobbying, this would still be
               | the case - even if it was all just letter-writing with no
               | money attached. Wealthy people could send way more
               | letters than harried poor ones.
               | 
               | So the more you have, the more influence you get. BUT the
               | more you have, the more you can fend for yourself, so
               | also the less you need much of that influence! And then
               | the government being unaligned with the needs of most
               | people starts making a lot of sense, without even needing
               | malicious conspiracies.
               | 
               | There's neither profit for businesses nor politicians in
               | giving poor people what they need.
        
             | goodpoint wrote:
             | This is economy "101": market are influenced my market
             | forces. The stronger a player is, the more it can influence
             | a market.
             | 
             | AKA: you vote with your wallet but some people vote 0
             | times, some 1, some can cast one million times - if you do
             | the math.
        
             | nostrademons wrote:
             | With free capital markets, the stewards of that capital are
             | ostensibly responsible to the consumers that generate its
             | revenue. Jeff Bezos can afford to dally in space
             | exploration, but if he fails to appoint a capable successor
             | CEO for Amazon, then eventually consumers will go
             | elsewhere, the value of Amazon stock will fall to zero, and
             | he won't be able to afford his pet projects anymore. Hence
             | there's an ultimate check on his ability to "vote with his
             | dollars", even though he has hundreds of billions of them.
             | 
             | A further productive update to your worldview might be "The
             | degree of centralization of power is proportional to how
             | far out of equilibrium a market can get." This doesn't just
             | function at the macro level (i.e. Google/Facebook/Bezos
             | being able to horribly misallocate capital based on their
             | past successes). It also explains things like bad
             | executives within a corporation: because decision-making is
             | centralized and the results of a decision won't be seen for
             | years, a bad executive can waste billions of dollars and
             | thousands of man-years, but ultimately they're going to get
             | kicked out (or the company goes bankrupt) and the
             | organization will return to market norms. This is also one
             | reason for the liquidity premium (and hence high
             | compensation) for executives: since the consequences of a
             | bad hire are so bad and so future-loaded, companies tend to
             | be overcautious in their hiring, which means only people
             | with excellent pedigrees are considered and they can demand
             | a premium for it.
             | 
             | Also very relevant to historical China, which had this
             | habit of centralizing extreme power with the emperor.
             | Things would go great if you had a good emperor. But
             | occasionally they'd make a blunder (like the cessation of
             | the Ming treasure fleets) that profoundly altered the
             | course of human history. The European powers had much more
             | decentralized decision-making. When Columbus was turned
             | down by the kings of England, France, and Portugal, he
             | tried Spain, and the rest is history.
        
           | bennysomething wrote:
           | Who's "value to society" people's values vary that's why we
           | have markets so people can decide what they value by deciding
           | to buy it.
        
             | [deleted]
        
             | tablespoon wrote:
             | > Who's "value to society" people's values vary that's why
             | we have markets so people can decide what they value by
             | deciding to buy it.
             | 
             | That's a difficult question to answer generally, however
             | it's also clearly not one that markets "solve." That's easy
             | to see with the example of addictive drugs (which the
             | market shows can be very profitable), unless you're willing
             | to argue there's social value in destroying many people's
             | lives through addiction.
             | 
             | That's not to say that financial value and social value
             | aren't _sometimes_ aligned, it just that you can 't assume
             | the former implies the latter.
        
               | bennysomething wrote:
               | The point I'm trying to make is people often use the term
               | "value to society" like it's an answered question. We
               | know it's not answered as that people's values vary.
               | Centrally deciding what is useful has proven to be
               | disastrous (see the Soviet Union and every other
               | centrally planned economy). Free markets allow us to
               | express our values at an individual level rather than
               | having an authority deciding what to value.
        
               | tablespoon wrote:
               | I know the point you're trying to make; _it 's
               | ubiquitous_. The point I'm making is that "free markets"
               | won't answer the question either, and often result in
               | things that are obviously against "value to society."
               | 
               | One little thing I find annoying is that whenever someone
               | points out some issue with free markets, someone always
               | seems to reply with something that amounts to "have you
               | considered free markets?" Whatever the problem, markets
               | are the solution, even if the problem stems from markets
               | themselves.
               | 
               | The Soviet Union had serious problems, but it's a mistake
               | to reason from that to the conclusion that markets are in
               | some way ideal. They have their own problems, and we
               | don't have access to an ideal system, so we have to try
               | to deal with individual problems and make tradeoffs.
        
               | neutronicus wrote:
               | I also think it's wrong to assume that the example of the
               | Soviet Union proves anything.
               | 
               | Maybe Free Markets were the best you could do with the
               | quantitative decision-making tools available to Stalin,
               | and maybe central planning with modern AI/ML/Operations
               | Research techniques would be more successful than a free-
               | market approach.
               | 
               | Or maybe, the Soviet Union would have done just fine if
               | there were no United States trying to thwart it at every
               | turn.
        
               | bennysomething wrote:
               | The violence and suppression in the Soviet union started
               | immediately. Trying to control the economy from the
               | centre requires individuals give up choice not just in
               | what they buy, but where they work.
               | 
               | As troksky said "In a country where the sole employer is
               | the State, opposition means death by slow starvation. The
               | old principle: who does not work shall not eat, has been
               | replaced by a new one: who does not obey shall not eat."
               | 
               | Who gets to decide what is allocated to whom? Giving
               | these starting conditions it's no wonder in every single
               | attempt at this has resulted in a death toll in the
               | millions. Nothing the USA did from the outside forced
               | these countries to starve, imprison and murder their own
               | people. Why didn't this happen in the USA? Or the rest of
               | the west? Why only in regimes that tried to control more
               | aspects of an individuals life then ever attempted
               | before? Most of the argument I am making is a poor rehash
               | of "the road to serfdom".
               | 
               | https://www.goodreads.com/book/show/299215.The_Road_to_Se
               | rfd...
               | 
               | Blaming the west for the terrors of Soviet Russia is as
               | mistaken as blaming the allies for what the Nazis did in
               | Europe.
        
               | sudosysgen wrote:
               | This is not really correct. There is no inherent reason
               | to remove choice in what you buy or where you work.
               | Individuals in the Soviet Union once they had access to
               | an urban habitation and once they were done with their
               | first job after university were actually allowed to
               | change jobs as they wished. If you had no university
               | education, then you could change jobs as often as you
               | wanted. And then you could buy what you wanted with your
               | money. If it didn't exist then yes, invention was
               | complicated and bureaucratic.
               | 
               | Beyond that, the argument of starvation is flawed,
               | because Russia in the market system had worse famine than
               | the USSR, and crucially, the USSR ended famine in the
               | Russian Empire, not started it. You can argue there were
               | unnecessary famines, and you'd be right, but saying that
               | famine is an inevitable component of the Soviet system is
               | wrong because there were one/two, at the beginning, and
               | then none after.
               | 
               | The actual limit to Central Control assuming that the
               | people doing the central control are willing to let
               | consumer goods follow what people want is data and the
               | ability to process it. In the USSR this was very low -
               | data collection was manual and plans were updated every 5
               | years. The bureaucracy opposed every attempt to improve
               | the situation as that would usurp their power. Beyond
               | that the freedom that individuals can have as far as what
               | to buy and which jobs to build is only limited by what
               | others are willing to work for.
               | 
               | It's also not true that they attempted to control more
               | aspects of someone's life as ever before. Feudal states
               | had much more control than the Soviet state on their
               | inhabitants. Some capitalist states had more control.
               | 
               | There are arguments to be made here. A poor rehash of a
               | poor book written by an author who openly admitted that
               | he started with conclusions and worked backwards from
               | there is not one.
               | 
               | The reality is much more complex than market=good
               | everything else=bad. Heck, even the Soviet weren't always
               | opposed to markets. Their ideology didn't even explicitly
               | oppose markets, only class distinction in production.
        
               | Apocryphon wrote:
               | Wasn't the rise of fascism in Germany directly caused by
               | crippling and humiliating terms levied at Versailles
        
               | bennysomething wrote:
               | But hardly an excuse to try to exterminate an entire
               | groups of people and invade other countries. Don't think
               | anyone argues Hitler national socialism would have been
               | fine if it wasn't for the allies. But they do argue
               | communism might have worked of it wasnt for the USA.
        
               | dragonwriter wrote:
               | > Don't think anyone argues Hitler national socialism
               | would have been fine if it wasn't for the allies.
               | 
               | I'd be surprised if there aren't neo-Nazis that argue
               | exactly that, just as modern Leninists argue that Soviet
               | Communism might have worked out great for everyone if it
               | wasn't for the USA.
        
               | dragonwriter wrote:
               | > Wasn't the rise of fascism in Germany directly caused
               | by crippling and humiliating terms levied at Versailles
               | 
               | No. That, along with the rise of Communism in Russia, the
               | rise of Italian fascism, and...was among the _indirect_
               | causes.
        
               | andyzweb wrote:
               | _What do you think the Russians talk about in their
               | councils of state, Karl Marx? They get out their linear
               | programming charts, statistical decision theories,
               | minimax solutions, and compute the price-cost
               | probabilities of their transactions and investments, just
               | like we do._
               | 
               | - Arthur Jensen (Network, 1976)
        
               | dash2 wrote:
               | _Red Plenty_ is a fabulous book about exactly this
               | attempt to develop tools to plan the economy. Not a
               | success, in the end, but it gave rise to great advances
               | in the maths of dynamic optimization.
        
               | bennysomething wrote:
               | Are you arguing that this worked? Their centrally planned
               | economy was a disaster of ineffeciency compared to
               | western price based systems.
        
               | sudosysgen wrote:
               | It worked and it didn't. In large parts the bureaucrats
               | actually opposed linear programming methods, but really
               | the biggest issue was data, not planning. They had no
               | automated data collection systems to speak of.
               | 
               | Beyond that, the Soviet economy was solidly middling as
               | far as the world was concerned.
        
               | goodpoint wrote:
               | > Free markets allow us to express our values at an
               | individual level rather than having an authority deciding
               | what to value.
               | 
               | This is not correct. The authority is there, it's just
               | less visible.
               | 
               | Market forces are extremely unequal: a small percentage
               | of humanity, e.g. 0.1% influence 90% of the value of the
               | housing market in all popular cities in developed
               | countries.
        
               | bennysomething wrote:
               | Where is that figure from? What does influence mean in
               | this context?
        
         | powerapple wrote:
         | Some personal opinion here: top Chinese internet companies
         | makes most their money domestically, the top US companies are
         | real international companies, and Facebook makes $5 billion of
         | ad money from China, can you imagine that? It is other
         | countries are losing money because their users contribute to
         | the success of Facebook, YouTube but they are not making enough
         | tax revenue from it. All these _like_ economy is not good for
         | society, but the situation is different in US than China.
        
         | mountainb wrote:
         | China produces more steel in a month than the US does in an
         | entire year of all types. US steel production is around 7% of
         | Chinese steel production. Could the US ramp up steel production
         | etc. on a crash basis under war conditions? Yes, but the
         | overall picture is not great, given that China could also ramp
         | up its production under the same constraints.
        
           | [deleted]
        
           | onepointsixC wrote:
           | China could not ramp up steel production because it imports
           | the raw materials from far away, mostly from Australia. Most
           | of the raw materials, including energy and even food are
           | imported into China. None of those supply chains would be
           | left untouched in a war.
        
             | adventured wrote:
             | And the first thing the US should do in the case of a large
             | scale war involving China, is hand Australia nuclear
             | weapons for its self-defense. It would guarantee an
             | extraordinary cost if China were to decide to destroy
             | Australia to try to annex their land for resource
             | extraction. In the coming decades China will have the
             | military capability to invade Australia, given China's
             | rapid naval expansion. It's not a sure thing that the US
             | could stop them. If China is cut off from their required
             | resources, they'll invade somewhere as a response.
             | Australia needs a plan for if all else fails, an ultimate
             | deterrence to invasion (which France and Britain possess
             | for similar deterrence reasons).
        
               | sudosysgen wrote:
               | China is never going to attempt to do such a stupid thing
               | as invade Australia thousands of kilometers away for
               | resources.
               | 
               | It's much simpler, cheaper and faster to simply import
               | the ores via land from Asia. Which is one of the core
               | reasons for the BRI.
        
               | adventured wrote:
               | Throughout all of recorded history there has yet to be a
               | superpower or empire that didn't do incredibly stupid
               | things, courtesy of over-estimating its position and
               | power. Modern China will not be an exception. They'll
               | overreach repeatedly just as every other prior great
               | power has.
               | 
               | China considers Australia to be within its primary sphere
               | of influence (a rapidly expanding sphere as far as China
               | is concerned, as they push outward militarily).
               | 
               | Japan was willing to invade Indonesia, Malaysia, Papua
               | New Guinea and Australia during its Empire days. China is
               | a drastically more potent superpower than the Empire of
               | Japan ever was and China's military reach will be far
               | greater.
               | 
               | In an Asia war scenario (which is what we're talking
               | about here), Australia is absolutely on the table to be
               | invaded by China. It's a prime candidate if China's foes
               | attempt an inevitable resource blockade (which would see
               | the BRI targeted early on). Invading Australia also
               | disables a critical, reliable ally for the US side. The
               | US & Co. would need vast regional resource supplies to
               | sustain for long at all in a conflict with China in Asia;
               | China would know that, and would understand that
               | Australia is one of the most important resource suppliers
               | both regionally and globally. At a minimum China would
               | seek to cripple Australia functionally, and an invasion
               | is ideal toward that ultimately (otherwise the
               | Australians would just keep rebuilding and repairing
               | damage).
               | 
               | European empires would never seek to conquer territory in
               | Asia, it's too far away. Britain would never seek to
               | conquer India, it's too far away.
               | 
               | China sends its vast fishing fleets to illegally plunder
               | South American fishing waters. It has blanketed much of
               | Africa for resource extraction purposes. It certainly
               | considers Australia as a resource target within its
               | reach. And it's more than that, China had already fallen
               | into the mindset of considering Australia to be
               | increasingly within its sphere of influence and control,
               | which is why the CCP has gotten so angry at Australia in
               | the recent political-economic conflict between the two.
               | They had plans for Australia and assumed they would be
               | dictating terms going forward.
        
               | sudosysgen wrote:
               | China has literally zero expeditionary abilities. 95% of
               | their military is based on area denial, the remaining 5%
               | on taking Taiwan, which they can barely do as of today.
               | 
               | There is zero evidence that China is developing the
               | capability of invading anyone except Taiwan for the next
               | 25 years, and heaps of evidence to the contrary.
               | 
               | There is stupid and then there is literally physically
               | impossible.
               | 
               | As far as Britain invading India, it's not like if they
               | had just one day woke up and decided to do it. They built
               | up the capability to invade colonies over _literally
               | centuries_ before being able to start the invasion around
               | 1760. Meanwhile China didn 't even start building that
               | capability. They don't even plan to deploy stealth
               | carrier craft, up until today their projects are for
               | export only, nor blue water invasion craft, etc...
               | 
               | Anyways, it's almost impossible to invade Australia in
               | 2021. Even the US would seriously struggle.
        
             | sudosysgen wrote:
             | Well, no.
             | 
             | China is food-safe in calories. Not in dollars, because
             | China produces less expensive food than they import.
             | 
             | While yes the raw materials are currently imported from
             | Australia, in war-time they would be imported from Russia
             | and Central Asia. Preparations are being made right now to
             | facilitate this.
             | 
             | China is also #4 in iron ore reserves, they just aren't as
             | economical as Australia's. Of course that doesn't matter
             | much in wartime.
        
           | thehappypm wrote:
           | Is it so impressive when you consider that the US has a
           | population of about 20% China's? It's just one sector, of
           | many many.
        
             | epicureanideal wrote:
             | Agreed. Also, steel production is something that
             | industrialized countries have been doing for over 100
             | years. It isn't exactly high tech. It just requires lots of
             | raw materials and lots of energy.
             | 
             | It would not take any special creativity (merely an act of
             | will, which would certainly be present in wartime) for the
             | US to scale its steel and other raw materials production
             | incredibly quickly. Sure, there might be a lag time before
             | all the new capacity comes online, but that would not be
             | happening at SF housing approval rates, instead at Liberty
             | Ship construction rates.
        
         | dufdudh wrote:
         | I don't know how to tell you this but all of the things you
         | listed are fine and wildly common both in China and SEA in
         | general. I'm not sure if you were just attacking social media
         | at large but that too is wildly popular. Facebook can only
         | dream of having the social integration that Weechat enjoys.
        
         | Mizza wrote:
         | Hijacking this comment a bit, but I haven't watched real TV in
         | a very long time but have been tuning in again because of the
         | Olympics and Jeopardy.
         | 
         | I'm seeing an incredible amount of ads for companies that let
         | you gamble real money on your phone. Sometimes it's back to
         | back to back to back commercials for online app casinos. This
         | seems really dangerous and a sign of a tragically unhealthy and
         | predatory economy - I can't think of anything more negative-
         | value-add than gambling. Has there been a regulatory change
         | that allows this, or has this been going on for some time?
        
           | neutronicus wrote:
           | I listen to a lot of basketball podcasts and they are _all_ ,
           | even the biggest national ones, trying to get people to
           | gamble
           | 
           | It seems like it's gotten a lot worse after COVID, though
        
             | subsubzero wrote:
             | In the US its been crazy, before gambling was heavily
             | frowned upon in the big four sports: Michael Jordan was
             | heavily scrutinized for gambling, not on sports but just
             | gambling for fun on his days off(when he was playing). The
             | 49ers owner(Previous owner) Eddie DeBartolo Jr. was banned
             | from the NFL as an owner due to trying to get a gambling
             | license.
             | 
             | Now the NBA is heavily pushing gambling and the revenue
             | that comes with it, In addition the NFL is also pushing
             | fantasy football which is veiled gambling, a few years ago
             | every commerical for an NFL game had 50% of its ads set to
             | either draftkings or fanduel which are both gambling sites.
             | So I see a huge predatory gambling cloud enveloping all
             | sports which is a really sad turn of affairs.
        
             | lamontcg wrote:
             | There was a court decision recently (2 years ago?) that
             | started to open up online gambling in the US.
             | 
             | I follow soccer, and right after that mlssoccer.com started
             | publishing vegas betting odds for all the games, and ESPN
             | FC started using UK betting odds for EPL and EUFA
             | competitions.
             | 
             | They're definitely warming up Americans to the idea of
             | normalizing betting and sports betting in the mainstream.
        
           | Sebguer wrote:
           | If you look at Twitch there are plenty of big streamers
           | spending their times on websites like Stake which is
           | literally just an unregulated BTC casino.
        
           | jurmous wrote:
           | In the Netherlands gambling is either done by the state owned
           | company with all profit going to state treasury or heavily
           | regulated when done online. All to prevent gambling
           | addiction.
           | 
           | https://en.wikipedia.org/wiki/Holland_Casino
           | 
           | It seems harmful to let gambling be unregulated...
           | 
           | Even loot boxes in games are illegal
           | https://boundingintocomics.com/2020/10/30/netherlands-
           | rules-...
        
             | xiaq wrote:
             | I lived in Eindhoven for two years and passed by its
             | Holland Casino every week. I never knew it was run by the
             | Dutch state!
             | 
             | There is a Chinese Internet slang "Zhi Shang Shui " ("IQ
             | tax"), used to describe products with questionable actual
             | value, like pseudoscience-based health products, luxurious
             | goods with crazy price tags. The idea is that only people
             | with poor judgement would buy such products, and in doing
             | so are being taxed for low IQ.
             | 
             | But a state-run casino... that's a literal IQ tax.
        
               | sudosysgen wrote:
               | We have a similar motto in French, "la taxe des cons"
               | 
               | We also have state-run casinos in Quebec, as well as
               | state-run lotteries. They have a legal monopoly on
               | gambling, except for some exceptions for bars and online
               | betting which is practically unregulated.
        
             | throwaway0a5e wrote:
             | >It seems harmful to let gambling be unregulated...
             | 
             | It seems barely any better make a state revenue stream out
             | of it.
        
               | sangnoir wrote:
               | This view is predicated on whether you trust your
               | government to do the right thing or not. The government
               | is already trusted with policy and handling opiates,
               | without going _Perdue pharma_
        
               | allopp wrote:
               | Realistically, your choices are:
               | 
               | - corporation's primary revenue stream
               | 
               | - local government's major revenue stream
               | 
               | - state/federal government's minor revenue stream
               | 
               | - criminal org's major revenue stream (prohibition)
               | 
               | Given those choices, state+ size governments are least
               | likely to paperclip-optimize for gambling "revenue", and
               | federal/national government would care the most about
               | negative externalities since they compete with other
               | nations, on metrics removed from raw "tax" revenue.
               | 
               | And the US has state lottos already.
        
               | sydd wrote:
               | It is. If it would be totally banned it would result in
               | an emergence of a black market.
               | 
               | We have the same thing on Hungary, there is one state
               | controlled gambling company that's under heavy regulation
               | (18+ only, full with warning signs against gambling,
               | barely any advertisements, has only a few old-school
               | products like scratch cards)
        
               | throwaway0a5e wrote:
               | Sure a black market would be worse, but why not just
               | regulate it. Government shouldn't have an incentive to
               | ensure that gambling exists and remains profitable which
               | they do so long as they're running it. Government
               | shouldn't be directly engaged in the business of any vice
               | for that reason.
        
               | dematz wrote:
               | To add to the other reply, governments can be pretty good
               | at unoptimizing the user's experience. As opposed to,
               | like, game companies trying to make it really easy and
               | tempting to pay for stuff on your phone, the specific
               | government person in charge of this stuff is (hopefully)
               | not walking home with pockets full of money if they get
               | people to gamble.
               | 
               | If it's something like a police officer whose funding
               | comes from collecting fines, sure, there are really bad
               | incentives there. But if the government casino department
               | isn't eating what it kills then it doesn't seem like a
               | problem.
        
               | sangnoir wrote:
               | Because the government is less prone to bouts of greed.
               | 
               | No stockholders who expect infinite profit growth, no CxO
               | with bonuses dependent on increasing revenue, and has
               | public oversight by default: government should be the
               | only entity trusted to directly engage in any vice
               | business. They are the only entity I trust to put honest
               | effort in _decreasing_ their user base.
        
               | horsawlarway wrote:
               | The government still has that incentive if it's taxing
               | companies that profit from gambling.
        
           | heavyset_go wrote:
           | I've been getting a lot of gambling related ads from Google
           | on YouTube, which is a bad look for an advertising company.
           | Why can't Google find clients that run legitimate businesses?
        
           | armadsen wrote:
           | I'm in Southern Africa right now and was watching the
           | Olympics on local TV and noticed the same thing. Some
           | commercial breaks consisted of nothing but back to back ads
           | for the same local-market (ie. southern African) sports
           | betting app. It was weird.
        
           | autokad wrote:
           | I remember Jim Cramer on CNBC saying he wouldn't recommend
           | fossil fuel, gun, and cigarette companies because of ethical
           | reasons. then he went on to push one of those gambling
           | companies, who on his show said it was their goal to get
           | every family in America gambling on their platform.
           | 
           | I'm like, you said that? are you trying to get banned?
        
           | lucasyvas wrote:
           | I live in Canada and noticed these same ads - what is this
           | garbage? It seemed insanely predatory and unethical.
           | 
           | I've never seen anything like this in my life and had the
           | exact same reaction.
        
             | steve_adams_86 wrote:
             | I realized these things must be heavily invested in and/or
             | making a ton of money if they can afford so many Olympic ad
             | spots. I hope it's investment money that's being pissed
             | away on ad spots, but my fear is that these kinds of apps
             | are very successful and really raking it in.
        
           | whymauri wrote:
           | >Has there been a regulatory change that allows this, or has
           | this been going on for some time?
           | 
           | It was actually less regulated. There were gambling sites for
           | children based on electronic collectibles from video games.
           | It was becoming a billion dollar industry before Steam put
           | their foot down.
           | 
           | A friend was close to launching a venture in the space and
           | their first year revenue projections were around 600k
           | assuming middling/unimpressive growth (he was a teenager at
           | the time, didn't really register how fucked up the business
           | was). Medium-sized ventures in this space raked in several
           | million and the largest were definitely bringing in tens of
           | millions of dollars. I know at some point there were concerns
           | of money laundering...
           | 
           | Playtika just IPO'd for 12B and they seem to mostly make
           | gambling apps. I've seen people play them on planes and it's
           | slightly disturbing. I took an SF -> Miami redeye once and a
           | lady seemingly played it during the entire flight.
        
             | JTbane wrote:
             | There are still tons of games out there with gacha/loot box
             | style elements, basically gambling for kids.
        
           | smhost wrote:
           | sports betting was legalized in 2018 (https://en.wikipedia.or
           | g/wiki/Murphy_v._National_Collegiate_...)
        
           | bostonsre wrote:
           | You watched real tv on your computer or real tv/cable tv? If
           | on your computer... maybe jeaopardy viewers are more likely
           | to gamble? I don't recall seeing any gambling commercials
           | while watching the olympics on hulu live tv (am on the live
           | tv and no ads bundle which for some reason includes lots of
           | ads).
        
         | itmayno wrote:
         | The native citizens will come to HN and offer some
         | rationalization. The non citizens will offer others. The reason
         | is very simple. The dictator is paranoid about losing control
         | and getting killed. Simple as that.
         | 
         | Long version: when you are facing internal party conflicts,
         | alliance between US-UK-Japan-Australia-India-Taiwan-South
         | Korea-EU which accounts for 90% of worlds wealth and war power
         | 10x the magnitude and is against you, floods that gets worse
         | every year, extreme heatwave that will eventually make Shanghai
         | unlivable, delta Covid lockdowns, capital flight, demographic
         | crisis, supply chain moving out, internal resistance from Hong
         | Kong and tibet and xinjiang, and young generation lying flat.
         | You are paranoid as hell and afraid to lose control so as to
         | not get killed.
        
           | desert_boi wrote:
           | Not quite the https://en.wikipedia.org/wiki/Eight-
           | Nation_Alliance.
        
           | lasagnaphil wrote:
           | And the alliance countries you've listed are also suffering
           | from those exact same problems (climate change, Covid
           | lockdowns, capital flight, demographic crisis,
           | deindustrialization, widespread unrest, a hopeless young
           | generation). And debatably, some of them have much worse on
           | some fronts than China.
           | 
           | I do think that every country in this world, whether it be
           | the US, China, or my country, are experiencing the same
           | effects from the current configuration of global capitalism
           | (environmental destruction, extreme inequality, housing
           | crisis, cutthroat job competition, long working hours,
           | alienation, depression), and the only thing it's different is
           | how state governments are responding to the crisis. Out of
           | all the governments in the world, China seems ahead of some
           | Western countries in a few aspects (as a one-party state
           | being able to control and crack down on a lot of things and
           | enable strict policies against over-financialization and
           | deindustrialization). However, I still do think that China's
           | strong state measures are only a stopgap measure for the more
           | fundamental political and philosophical problems that the
           | entire world has right now.
        
             | itmayno wrote:
             | Sure some countries have some of the same problems, I don't
             | disagree. However, the magnitude of the problem is 10x
             | worse for China. Remember that China is still extremely
             | poor - 600M lives on $100/month. And another 500M lives on
             | $1000/month. All this is the party's doing, and the people
             | won't forget it. So when things goes bad like it is now for
             | China, it will go really bad for its dictator.
             | 
             | Also other countries prob don't have the problem of "what
             | if the dictator was killed or dies early, and civil war and
             | political struggle ensues"
        
               | scarmig wrote:
               | The 500M who live on $1k/month is a point of pride for
               | the CCP; it's one of the legitimizers (probably the
               | primary one) for its rule. China from 1980 onwards has
               | produced the largest and most rapid wealth generation
               | process in history.
               | 
               | Now, you can come up with counterfactuals about why it
               | would have happened anyway, and that's a pretty
               | reasonable position to take. But acting like the
               | $1k/month figure is somehow damning of the CCP totally
               | misunderstands the domestic situation in China.
        
               | lasagnaphil wrote:
               | In counterpoint, many people in the US will never forget
               | when the political leaders have transformed an mainly
               | industrial country which gave stable jobs for their
               | households, into a deindustrialized husk of a country led
               | by greedy bankers, rentiers, and scammers. All this is
               | the two parties of the US's doing, and the people won't
               | forget it.
               | 
               | We've seen plenty how democratic countries can go through
               | civil war and political struggle, this isn't something
               | that only happens to dictatorships. And I am just so
               | tired of the dichotomies most people have in their minds
               | for the current form of state governments, both China and
               | the US's political systems are complex and nuanced enough
               | that you can't really call it communism/capitalism or
               | dictatorship/democracy anymore. I was just comparing
               | about which government is actually more competent than
               | the other for dealing with the current problems in the
               | world. One seems just a little bit more competent than
               | the other, but that's as far as it can get.
        
               | bigbillheck wrote:
               | > All this is the party's doing, and the people won't
               | forget it.
               | 
               | By at least one metric, the PRC has managed to eliminate
               | 'extreme poverty' (even Brookings agrees:
               | https://www.brookings.edu/blog/future-
               | development/2021/01/25...)
        
           | dash2 wrote:
           | This is the basic story that Acemoglu and Robinson tell:
           | ultimately, inclusive political institutions (their rather
           | fluffy term for liberal democracy) will win because they
           | allow for creative destruction and renewal in the economy.
           | Dictatorship never creates lasting economic growth, because
           | the dictator is supported by the status quo elites, who
           | eventually become dinosaurs.
           | 
           | I'm not sure I believe it, but it's a bold prediction and
           | worth thinking about.
        
         | Taylor_OD wrote:
         | I understand the facebook hate but is netflix included here
         | because its... entertainment? I guess we should get rid of the
         | arts as a whole.
        
         | mc32 wrote:
         | It would be quite interesting to see a cleaving between us in
         | the "West" and those who follow China's model.
         | 
         | I can see the disadvantage of the saccharine part of our
         | economy and the advantages of focusing on nuts and bolts.
         | 
         | It's the difference between letting people decide what's right
         | for them and having a more planned society. Obviously planned
         | societies have been a recurring theme in history, most notably
         | socialism and its chronological counterpart national socialism.
         | Neither made good faith efforts and both resulted in millions
         | of deaths. But we also experienced unnecessary deaths from
         | unregulated parts of the economy, though not as many deaths and
         | at least it involved more free will.
        
           | vikiomega9 wrote:
           | One idea that seems to make sense to me is that social
           | mobility is the equivalent of starvation in a socialist
           | setup. What we see today with the poorer sections of society
           | especially African Americans is a strong indicator that all
           | systems of power should be viewed critically and with
           | compassion. The vast majority of the poor in America for
           | example are obese and that's one cost I can think of that we
           | pay for the current system. Btw, I'm not saying poverty is
           | the cause, just that the system is setup to maximize free
           | market outcomes that are not good but we put up with them,
           | https://www.washingtonpost.com/lifestyle/food/the-true-
           | conne...
        
             | mc32 wrote:
             | It doesn't help that in much of the media and mainstream
             | culture we admire slackers and dumbing things down. Get
             | high, get drunk, watch dumb shows and have fun doing dumb
             | things.
             | 
             | It's less so in Asia. On the other hand we keep on shipping
             | jobs overseas so people on the bottom keep on getting sold
             | out for even lower prices.
             | 
             | People used to be able to get by as a janitor or
             | landscapers. Janitors and landscapers have been replaced by
             | low cost labor. We can have foreign workers and have
             | economic viability for people who don't go beyond high
             | school. We still have mechanics, but not sure how long that
             | will be an option with electrification of autos where there
             | are diff requirements.
        
       | cainxinth wrote:
       | They want a big, powerful, capable tech industry... that will
       | never even think of challenging the supremacy of the government.
       | 
       | This is their way of reminding the tech sector of that latter
       | part.
        
         | deltasixeight wrote:
         | This article is more than your classic "the CCP is just making
         | moves to solidify it's own power."
         | 
         | The article claims the actions taken by China also represent
         | real philosophies about what constitutes economic health. They
         | don't want their greatest minds optimizing ad tech or finding
         | tax loop holes.
        
           | dotcommand wrote:
           | > This article is more than your classic "the CCP is just
           | making moves to solidify it's own power."
           | 
           | "And so, in classic CCP fashion, it was time to smash."
           | 
           | It's your standard state propaganda.
           | 
           | At least he attempts to cover his bases: "China's leaders
           | famously want to prevent the emergence of alternative centers
           | of power, but is the West so different in this regard?"
           | 
           | "For those outside China's byzantine, opaque nexus of party,
           | government, and big business, it's very difficult to figure
           | out what's going on." I guess Noah Smith is in the inside so
           | he knows his stuff?
           | 
           | It's your standard "CCP bad because CCP is friends with iran
           | due to BRI" propaganda you find all over traditional and
           | social media.
           | 
           | The real question is who is noah smith and why was his
           | article spammed on hn? That would be an interesting article.
        
           | cainxinth wrote:
           | There's some truth to that, but call me cynical, when asked
           | to guess whether a nation's actions are primarily motivated
           | by power seeking or philosophical principles, I usually
           | assume power was the dominant factor.
        
             | deltasixeight wrote:
             | Power is an important factor, but to assume it's the only
             | factor is irrational.
             | 
             | Think about it like this, China built the biggest high
             | speed rail network in the world and doing such a thing
             | wasn't just about "power" it was done because the regime
             | cares about it's people. Centralized governments aren't
             | automatically evil. Like all people in general, more likely
             | a central power has complicated motivations that span
             | across many dimensions. Power solidification is just one
             | dimension.
             | 
             | Sort of a tangent but California can't even ring the shitty
             | bart around the bay. Likely because not enough of the key
             | people in critical places care.
        
               | jcranmer wrote:
               | > Think about it like this, China built the biggest high
               | speed rail network in the world and doing such a thing
               | wasn't just about "power" it was done because the regime
               | cares about it's people.
               | 
               | The US built its massive interstate highway system for
               | various reasons, including to enable more rapid movement
               | of military assets in times; to enable rapid evacuation
               | of cities in case of nuclear strikes; to promote better
               | connectivity between major population centers; to enable
               | white people to flee the cities; and to destroy prominent
               | black neighborhoods. You'll note that by the latter
               | elements, there is definitely a sense of punishing
               | certain political outgroups that was sometimes pretty
               | explicit in the designs. So did the US government care
               | about its people or not?
               | 
               | I don't know how the micropolitics of China affected the
               | location of right-of-way choices to help or punish local
               | residents within urban areas, but there are definitely
               | areas of China's internal planning that are rather
               | explicitly designed to punish political outgroups, such
               | as encouraging Han migration to dilute the indigenous
               | populations of Tibet and Xinjiang. And of course there's
               | the Hukou system, designed to prevent rural people from
               | moving to cities.
               | 
               | > Sort of a tangent but California can't even ring the
               | shitty bart around the bay. Likely because not enough of
               | the key people in critical places care.
               | 
               | The US planning process has a notorious effect in that it
               | makes it very easy for local activists to block projects
               | (NIMBY--Not In My Back Yard). This was adopted partly in
               | response to projects like the Cross-Bronx Expressway that
               | actively destroyed the local neighborhoods for the
               | benefits of people who lived elsewhere.
               | 
               | Is being responsive to the people who are going to bear
               | the brunt of your development really a sign that you
               | don't care about your people?
        
               | sudosysgen wrote:
               | The Hukou system is not designed to punish rural people.
               | 
               | It exists fundamentally to reduce rent-seeking, which is
               | why it exists in some form or another in every economy
               | where there is strong government control of housing. If
               | you remove the Hukou system, everyone will flood to the
               | cities, and you will have overpopulation. You can also
               | liberalize housing, in which case people will pay around
               | 30% of their income in rent which the CCP think is not
               | economically productive. This happened in Beijing and Xi
               | has been floating the idea of literally building another
               | city and moving industries there to reduce rental
               | pressures.
               | 
               | Or you limit migration into the cities to the speed of
               | new constructions, which enables you to set a low rent
               | and, according to the CCP, have better economic outcomes.
               | You limit migration by disincentivizing people who move
               | to the cities without following the quota, hence the
               | Hukou system.
               | 
               | As far as incentivizing Han migration, I can't speak to
               | recent efforts, but for a long time Han migration was
               | incentivized because, well, there weren't much people in
               | Xinjiang and there were a lot of resources and a border
               | with the now-hostile USSR that needed to be exploited. So
               | the CCP under Mao did everything they could to get as
               | many people into Xinjiang. That included allowing Uyghurs
               | to have 3 times as many children as the Han. But
               | otherwise if you need more people into Xinjiang they're
               | not going to be Uyghurs because, well, they're already in
               | Xinjiang.
        
           | bsder wrote:
           | This breaks down when you consider that they are smashing
           | Alibaba. Alibaba, like Amazon, is more about logistics than
           | tech.
           | 
           | It's hard to argue that shlepping stuff around efficiently
           | isn't "economic health".
           | 
           | As much as I hate Amazon and WalMart for being predatory, I
           | applaud their logistics advances.
        
           | whatshisface wrote:
           | Tax loopholes would be accounting, not technology.
        
             | ASalazarMX wrote:
             | _Fintech agrees and has motioned to change the subject_
        
             | deltasixeight wrote:
             | Finance is the more broader term here. China likely also
             | doesn't want their greatest minds working on High Frequency
             | Trading algorithms.
             | 
             | The article is about tech, but from a broader perspective
             | letting the free market completely decide allocation of
             | resources in all sectors of the economy is something China
             | never completely bought into. After all it is technically a
             | communist.
        
       | xmly wrote:
       | "Fake-tech" industry, more precisely. If you can read Chinese,
       | you know people in China percepts whether the company is a real-
       | tech company based on whether they have been sanctioned by US.
       | And most of Chinese think the fake-techs consumes too much
       | resource and contributes too little, the more resources should be
       | put on the real-tech companies.
        
       | volta83 wrote:
       | > There are certainly those in America who believe that Facebook
       | and Google produce little of value relative to the profit they
       | rake in; maybe China's leaders, for reasons that will remain
       | forever opaque to us, have simply reached the same conclusion.
       | 
       | Arguably, capturing most of your country's top talent with absurd
       | salaries and putting them to work on world-critical challenges
       | like... how to generate more revenue from advertisement or... how
       | to create as many "phone-addicts" as possible... could be
       | quantified as producing tons and tons of negative value.
       | 
       | If China's crackdown on "consumer-facing tech" is about this,
       | that could be a very good thing for China long term.
       | 
       | I grew up wanting to work on NASA and putting stuff on space, and
       | during university got offered 10x the NASA salaries at FAANG
       | companies, and was to week to just say "no thanks".
       | 
       | 10 years later I am starting to wonder what my legacy is going to
       | be.
        
         | adventured wrote:
         | > Arguably, capturing most of your country's top talent with
         | absurd salaries and putting them to work on world-critical
         | challenges like... how to generate more revenue from
         | advertisement or... how to create as many "phone-addicts" as
         | possible... could be quantified as producing tons and tons of
         | negative value.
         | 
         | And where is that happening? It's not happening in the US,
         | China or Europe. The ad tech segment would be lucky to rank at
         | the median on talent in the tech industry, much less the wider
         | economy.
         | 
         | What you're referring to is a myth, a slander that gets thrown
         | around HN freely because it makes for a great, vicious
         | soundbite to stab (primarily) the US with. It always goes
         | entirely unsupported, nobody dares to even try to support the
         | claim (because it's obviously false and won't stand up to even
         | light scrutiny).
         | 
         | The majority of the top US talent is working on ad tech? No,
         | that's not actually happening. Not remotely close. The claim is
         | off by far more than an order of magnitude. The best talent at
         | Google are not even working on ad tech.
         | 
         | Pfizer, Merck, Amgen, Regeneron, Moderna, Biogen, Gilead,
         | AbbVie, Abbott, Bristol-Myers, Eli Lilly, Illumina, Intuitive
         | Surgical, Apple, Microsoft, Adobe, Nvidia, Intel, AMD, Texas
         | Instruments, Cisco, Qualcomm, Micron, LAM, KLA, Applied
         | Materials, SpaceX, Tesla, Caterpillar, Honeywell, DuPont,
         | General Dynamics, Lockheed, Northrop, Boeing, 3M, Boston
         | Scientific, Stryker, Edwards Lifesciences, Johnson & Johnson,
         | Medtronic, Monsanto.
         | 
         | That's a super short list that instantly destroys the claim and
         | doesn't include the vast brilliance at work in US universities
         | (which also outweighs the entire US ad tech industry all by
         | itself). It also excludes the huge number of foreign industrial
         | firms in the US filled full of brilliant persons that are also
         | not concerned with ad tech.
         | 
         | NASA has more elite minds in its employment than all of the US
         | ad tech industry combined.
         | 
         | There are probably more top minds working on just CRISPR right
         | now in the US than in the entire ad tech field. Which is to
         | say, the position of the ad tech field is drastically
         | overstated.
         | 
         | IBM is a debased giant, that has languished badly. And yet they
         | have a top shelf quantum computing division. You think the best
         | talent at IBM is working on ad tech? No.
         | 
         | TI or Cisco's best talent is all dedicated to ad tech? No.
         | 
         | The best engineering minds at Illinois Tool Works or John
         | Deere, they're all working on ad tech? No.
         | 
         | All the smartest minds at LAM, KLA and Applied Materials are
         | working on ad tech? No.
         | 
         | The great engineers at Nvidia, AMD, SpaceX or Caterpillar,
         | they're all working on ad tech? Uh, no.
         | 
         | The insurance industry has more top talent than the ad tech
         | industry. The property/casualty segment all by itself is
         | dramatically larger than the entire ad tech field, including
         | all dollars spent on digital advertising in the US.
         | 
         | Compensation != top talent. Otherwise all the smartest people
         | in the world would be hedge fund managers and absolutely nobody
         | would ever work for NASA or NSA. That's not actually how things
         | work in reality.
        
         | alexashka wrote:
         | Every passing minute is another chance to turn it all around -
         | Vanilla Sky (the movie) :)
        
         | atom_arranger wrote:
         | I have a similar experience. I grew up wanting to work in
         | robotics but found pure software work to be as enjoyable (maybe
         | not as "meaningful", but as enjoyable), and much more
         | lucrative.
         | 
         | Not sure why coding CRUD pays so much more than what robotics
         | tends to. I guess there's more material costs, costs to get a
         | company started and profitable could be higher.
        
         | jszymborski wrote:
         | Another comment mentioned this, but I think Tencent and Alibaba
         | are poor stand-ins for the sort of companies that aim to make
         | phone-addicts.
        
         | fksadfji12 wrote:
         | Even if you get rid of FAANG companies, it's not like NASA is
         | going to pay you more.
         | 
         | You just lose the choice to work at a FAANG company for 10x the
         | salary...
        
         | jorblumesea wrote:
         | It might actually have the opposite effect. Working for a
         | highly bureaucratic government run firm might not appeal to
         | many entrepreneurs and engineers. The CCP is not exactly known
         | for ideological flexibility or just outsider thinking in
         | general. Imagine working for the government, and that's the
         | main engineering opportunities you have. Imagine your only
         | opportunities being huge multi year hard engineering projects.
         | 
         | There are many people who enjoy working in fast paced
         | environments or building cutting edge experiences and products.
         | 
         | You could see the US brain drain top Chinese technical talent
         | because the US has diversity of opportunity. There's Space X
         | and Tesla, but also Uber and Google.
        
         | closeparen wrote:
         | I think some zero-autonomy zero-respect enterprise IT drudgery
         | is more likely than the space program, if we didn't have access
         | to these "absurd" wages. Which are, coincidentally, just about
         | enough to own homes for our families within range of our
         | offices.
        
         | nemo44x wrote:
         | > 10 years later I am starting to wonder what my legacy is
         | going to be.
         | 
         | Isn't this a major reason people start families? Having kids
         | and people and things to take care of gives life a lot of
         | meaning to many people. So much so that the vapid trivialities
         | of the everyday modern life are mere amusements we gratefully
         | accept rather than the daily struggle most people that ever
         | lived before us had to endure.
        
         | f00zz wrote:
         | > "That's just from EU consumers, never mind the rest of the
         | world - spending so much on mobile netlink that companies can
         | clear more than thirty billion in profit, in profit alone, over
         | two years. Think of the gross! So you tell me - is that the
         | best way of spending humanity's money, webbing friends, playing
         | games on the bus? A fraction of a single percent of that money,
         | we could have bases on Mars in five years. Destiny -
         | possibility - glorious - but, no, we'll keep frittering our
         | money on games, on cosmetics, on flim-flam, and we'll turn
         | round in five hundred years and still be right here where we
         | are now."
         | 
         | - from Adam Roberts' sci-fi novel "Gradisil"
        
           | dematz wrote:
           | I mean, I can see the point. Maybe facebook is getting money
           | but not actually creating value for people.
           | 
           | ...but if we get Mars bases, so what? I'd rather play video
           | games on earth than farm potatoes on Mars. Call it a lack of
           | imagination but yeah.
        
       | duxup wrote:
       | Seems like this is just a typical kleptocracy or some
       | authoritarian type system at work where ultimately if it doesn't
       | benefit those in power it has a higher risk of running into
       | trouble when someone is seen as a possible threat / or simply
       | because it is convenient to make room for something those in
       | power support.
        
       | ffggvv wrote:
       | american liberals really wish we could be china. you can sense it
       | in how they talk. and some of that arrogance and desire for power
       | seeps through their claims that it's for the best for everyone.
       | and of course they should be in control because they know what's
       | best for society. it's the same people that want to ban large
       | soda containers
       | 
       | their goal is likely the same as the ccp too. destroy any power
       | that isnt the government.
        
       | fallingfrog wrote:
       | Another perspective:
       | 
       | https://www.asiafinancial.com/china-seen-ushering-in-new-era...
        
       | mcguire wrote:
       | Alternative hypothesis: This _is_ just another round in the
       | infighting between China 's party, government, and big business,
       | one that the party and government intends to win.
       | 
       | China's big, customer-facing "tech industry" (I agree with that
       | part of the argument) lives in the same environment as that of
       | the rest of the world, with the same ability to generate the same
       | large profits. Those large profits provide a power base that
       | threatens the party, which in turn uses its governmental power to
       | smack down anything threatening.
        
       | citilife wrote:
       | The U.S. has been in the process of delisting Chinese companies.
       | 
       | I personally suspect that China wanted to get a jump on the
       | effort and in turn force U.S. pension & hedge funds to lose
       | $400B.
       | 
       | https://www.wsj.com/articles/investors-rethink-china-bets-af...
       | 
       | That's a huge amount of money and will dramatically and
       | negatively impact the public pension funds.
       | 
       | It's not about the tech, it's about the economic war between
       | China and the United States. At the same time, the CCP is
       | exerting it's authority over these companies to tighten it's
       | control.
        
         | ffggvv wrote:
         | a lot of chinese also hold baba and some of these stocks
        
       | saiya-jin wrote:
       | I don't think they are smashing tech industry per se, just those
       | in it who grew bold enough they thought they can actually do/say
       | what they want, and not remain forever in servitude to those
       | wielding real power.
       | 
       | Be a good boy and stay a good boy and you shall be rewarded, at
       | least domestically. This doesn't foster international success so
       | easily but that's another story.
        
       | avmich wrote:
       | Hard to judge this approach. On one hand, spartan approach to
       | economy of USSR after WWII allowed the growth of 1960-s. On the
       | other hand, it also helped with the collapse of 1980-s. Maybe
       | China's trying to take that into account.
       | 
       | I'd actually argue with the idea that China is doing this
       | intentionally. Maybe it's not due to the centralized planning
       | that tech sector gets smashed - maybe it's a much simpler reason
       | behind that.
        
       | djanogo wrote:
       | I am not surprised after seeing how US tech companies created
       | their own rules what public can discuss and undermined
       | democratically elected leaders. They don't want Chinese versions
       | of Jack D, MarkZ, and numerous MSM groups. No country would want
       | social media companies that US now has.
        
       | jeswin wrote:
       | Asia is headed towards war - it almost seems inevitable. Xi has
       | publicly committed to not leaving Taiwan invasion to the next
       | generation.
       | 
       | China is focused on building an industrial base that complements
       | its military power while generating cash, and internet software
       | startups aren't going to help.
       | 
       | For the rest of Asia, they'd do well to militarize; for Japan and
       | Australia to consider getting nuclear weapons or hosting them,
       | and for India to rapidly increase stockpiles.
        
         | paxys wrote:
         | This is stupid. China is the last country in the world to want
         | war, considering its 100% export-driven economy.
        
         | deltasixeight wrote:
         | War is unlikely.
         | 
         | Globalization of all economies means everybody loses in a war.
         | The devastation will harm everyone in a significant way.
         | 
         | The most likely outcome is just perpetual political squabbling
         | and the continuous feeling that war is omnipresent but
         | realistically will never occur.
         | 
         | China likely plans to dominate the US from a prestige
         | standpoint. Better GDP, higher technology, that kind of thing
         | and they already have the momentum for it.
        
           | I-M-S wrote:
           | https://en.wikipedia.org/wiki/The_Great_Illusion
        
         | cyberpunk wrote:
         | Can you elaborate on why you think it seems inevitable?
         | 
         | From my armchair, I can't see a benefit to China for kicking
         | off a superpower war; they're already pulling ahead in STEM,
         | their economy is fairly safe and not really that dependant on
         | exports, quality of life is improving massively, infra is
         | improving.. ?
        
           | jeswin wrote:
           | I don't mean imminent war, but that it's headed there. From
           | articles in Chinese news sites, it seems Xi wants to attach
           | reunification to his legacy. The thing with dictatorships is
           | that ultimately it will depend on what one person wants to
           | achieve.
           | 
           | Xi is of course not going to risk a war that he won't win
           | easily. So there's enough time for the rest of the world to
           | reverse the wholesale shift of industrial capacity into
           | China.
           | 
           | Taiwan had nuclear program in the 70s which would have
           | prevented war and invasion. That was nipped under pressure
           | from everyone else, so I imho defending a democratic nation
           | must be a shared responsibility.
        
             | Apocryphon wrote:
             | At this point, China could probably achieve reunification,
             | even just de facto reunification, through economic control.
             | No need for open combat, which would threaten economic
             | stability.
        
         | dotcommand wrote:
         | > For the rest of Asia, they'd do well to militarize; for Japan
         | and Australia to consider getting nuclear weapons or hosting
         | them,
         | 
         | The idea that we'd ever let Japan have a nuke is ludicrous. Do
         | you really think we'd let a country we nuked twice have such
         | weapons? There is a reason why we are still occupying Japan 75+
         | years after ww2. And no, it isn't to "protect" japan.
         | 
         | > and for India to rapidly increase stockpiles.
         | 
         | I don't think china would mind one bit. After all, it wasn't
         | china that sanctioned india when they developed nukes...
         | 
         | http://edition.cnn.com/WORLD/asiapcf/9805/13/india.us/
         | 
         | If there is a war in asia, it will be a war for liberation -
         | not from china, but from the west. It's so funny how we truly
         | deluded ourselves into thinking we are the good guys in asia
         | and not the murderous colonial powers that we truly are. We
         | really need to start seeing the world as it is rather than the
         | disneyfied nonsense you read on "news". Or we are in for a rude
         | awakening.
        
           | jeswin wrote:
           | > The idea that we'd ever let Japan have a nuke is ludicrous.
           | Do you really think we'd let a country we nuked twice have
           | such weapons?
           | 
           | Not ludicrous at all - Trump was open to Japan and Korea
           | acquiring nukes. [1]
           | 
           | > After all, it wasn't china that sanctioned india when they
           | developed nukes...
           | 
           | That was at a time when India's wasn't clearly aligned to the
           | US. Subsequently it was the US which drafted the Nuclear
           | Suppliers Group (NSG) exemption for India.
           | 
           | > If there is a war in asia, it will be a war for liberation
           | - not from china, but from the west.
           | 
           | What liberation? People hold favorable views of the West
           | (compared to China) in East Asia, South East Asia, or India.
           | Many of them are now in disputes with China, which often
           | involve violence. The situation is different in West Asia -
           | but it's always been that way.
           | 
           | > It's so funny how we truly deluded ourselves into thinking
           | we are the good guys in asia and not the murderous colonial
           | powers that we truly are.
           | 
           | Modern western influence is largely positive compared to the
           | alternatives.
           | 
           | 1: https://www.ft.com/content/c927017c-f398-11e5-9afe-
           | dd2472ea2...
        
             | dotcommand wrote:
             | > Not ludicrous at all - Trump was open to Japan and Korea
             | acquiring nukes. [1]
             | 
             | Don't link to paywalls. Who is talking about Trump? I'm
             | talking about the US. Also, Trump was open to a lot of
             | things. Including Mexico paying for the wall.
             | 
             | > That was at a time when India's wasn't clearly aligned to
             | the US. Subsequently it was the US which drafted the
             | Nuclear Suppliers Group (NSG) exemption for India.
             | 
             | Countries like india, china, russia are never "clearly
             | aligned" with anyone. They are too big for that.
             | 
             | > What liberation? People hold favorable views of the West
             | (compared to China) in East Asia, South East Asia, or
             | India.
             | 
             | That's because we are the dominant occupying power with
             | dominant propaganda and wealth. The leaders of these
             | "subjugated" nations could easily turn the propaganda
             | against the US. Look how quickly our propaganda was able to
             | turn the sentiment against china. How easily do you think
             | Japan, Korea, Philippines, etc could turn their nations
             | sentiment against the US.
             | 
             | > Many of them are now in disputes with China, which often
             | involve violence.
             | 
             | What disputes, violence? The only real dispute seems to be
             | with the US and the west ( aka china's and asia's former
             | european colonizers ). That's another danger, that asians,
             | africans, etc are going to pick up on.
             | 
             | > The situation is different in West Asia - but it's always
             | been that way.
             | 
             | What violence? Is it china that invaded afghanistan, iraq
             | and sanctioned iran?
             | 
             | > Modern western influence is largely positive compared to
             | the alternatives.
             | 
             | No. It hasn't been. Not for the aborigines. Not for the
             | natives. Not for the africans. Not for the indians. Etc.
             | That's the point. It's actually modern chinese influence
             | has even been more positive. Considering the wealth of
             | japan, korea and much of asia has been due to trade with
             | china. And that's why we are "pivoting to asia" - a place
             | we do not belong. A place, btw, we caused the deaths of
             | tens of millions of innocent people.
             | 
             | But we shall see how history pans out.
        
           | s1artibartfast wrote:
           | Japan and the US are close allies based on common interests:
           | Japan is one of the few countries that hates China more than
           | the USA.
           | 
           | The people of Japan and the US have very favorable opinions
           | of each other[1]. Of the two, Japan has _more_ favorable
           | views of the USA than the other way around.
           | 
           | The US would love to station nukes in Japan, but this would
           | cross a red line for China.
           | 
           | https://www.pewresearch.org/global/2015/04/07/americans-
           | japa...
           | 
           | https://www.pewresearch.org/global/2016/09/13/hostile-
           | neighb...
        
             | whydoibother wrote:
             | "Japan and the US are close allies based on common
             | interests:"
             | 
             | Doing imperialism and committing war crimes?
             | 
             | "Japan is one of the few countries that hates China more
             | than the USA."
             | 
             | Yeah, they made that obvious in WW2.
             | https://en.wikipedia.org/wiki/Nanjing_Massacre
        
       | ru552 wrote:
       | I think it's because they want their best and brightest working
       | on physics, materials, technological breakthroughs, etc., instead
       | of ad tech.
        
         | 908B64B197 wrote:
         | I think a lot of western bright minds would be working on
         | physics, materials, technological breakthroughs if the pay
         | wasn't abysmal and working conditions exploitative.
        
           | swagasaurus-rex wrote:
           | I know several people that got STEM degrees. One worked for
           | Boeing, moved into progamming at an ad tech company. One had
           | a math degree, got into programming at a real estate firm.
           | One had a physics degree, is now an electrician.
           | 
           | The ridiculously expensive college education can't even
           | prepare us for our own workforce, which has very little
           | demand for engineering, sadly.
        
         | dicomdan wrote:
         | You're giving a lot of benefit of the doubt to the
         | dictatorship. Establishing complete control over emerging power
         | structures (tech industry) is more likely to be their goal.
        
           | deltasixeight wrote:
           | This is a one sided view and also represents classic bias of
           | the western viewpoint.
           | 
           | Sure a "dictator" (more accurately "central power" for China)
           | wants to consolidate power but to think the dictator is a one
           | dimensional being and that all actions a dictator takes only
           | serves that single minded motivation of power solidification
           | is really not reasonable.
           | 
           | Consolidating power is only one aspect of their motivation
           | that much is true. However the article is not about this
           | aspect of the CCP. The actions taken by the regime here
           | represent broad views about what constitutes economic health.
           | The OPs comment is spot on, and captures the main point of
           | the article.
        
           | andy_ppp wrote:
           | We don't actually know why anyone in power does anything. One
           | thing I do know is we as the West need to figure out how to
           | come together and defend democratic and liberal values, as
           | without them we are seriously lost. We should start by not
           | giving any more money and technology to a Chinese state that
           | clearly do not have our best interests at heart. I think the
           | west is in real danger of just falling apart over the next 50
           | years if we lose our reasons for existing and instead spend
           | our time arguing about cultural issues. We spend so much time
           | right now looking inward at our small differences we can't
           | see the reason why our nations became worthwhile in the first
           | place.
        
             | papito wrote:
             | What I do notice is that the Chinese "rulers" seem to be
             | more concerned about long-term well-being of its people,
             | rather than trolling and performative assholery on Twitter.
             | 
             | You might describe it as a dictatorship, but it's more
             | data-driven than you might suspect. The Chinese keep the
             | pulse on decisions they make, and if it's unpopular - it's
             | gone. Of course there is a line - you can't go head-on
             | against the Party and call them out directly. Compare this
             | situation here, where we are trying to patch up our
             | infrastructure and instead have to deal with a collection
             | of spectacular douches in _Congress_ , propagandizing
             | against science to such an extent that our top
             | epidemiologist has to get a security detail.
             | 
             | Who would you bet on in this movie?
        
               | andy_ppp wrote:
               | Pithy response: Tell that to the Uyghur Muslims? Are they
               | not Chinese people?
               | 
               | More serious response: I don't want to live under a
               | dictatorship where a generational change could lead to
               | corruption and suffering on a much bigger scale. I think
               | America as a project might also be lost and we should
               | consider if this crazy idea (democracy, freedom of
               | religion, free speech etc.) is worth fighting for. I
               | think it is and I believe in the values that the US has,
               | despite some very obvious mistakes America isn't ethnic
               | cleansing Muslims or having a press that can't criticise
               | the government. I will bet on America not because China
               | won't win but because I still believe the (relative)
               | peace and prosperity of the post war period isn't worth
               | throwing away as easily as some want. We need someone
               | focused on this in a clear way and to get Americans stop
               | arguing amongst themselves and look at the bigger
               | picture.
        
               | papito wrote:
               | I by no means suggest that the Chinese system is
               | superior. It's a sort of system that can descend into
               | runaway corruption pretty easily.
               | 
               | What I am saying is, given the decay of the western
               | society, which is our fault entirely, our chances of
               | staying ahead are slim.
               | 
               | The problem is, the Chinese have a team. They do not
               | easily sell out. We, however, have an entire layer of
               | high-level government that will readily go to the highest
               | bidder. This is not sustainable. The only way to fix this
               | is a crisis that unites us, but if a global pandemic did
               | not do it, what will?
        
             | throwaway4good wrote:
             | "We don't actually know why anyone in power does anything."
             | 
             | This is a not true. Dictators do long speeches. Often quite
             | explicitly stating why they do what they do.
             | 
             | Funnily sometimes in democracies there is a bigger space
             | betweeen what is done and what is communicated.
        
               | simiones wrote:
               | Those speeches usually contain about as much actual
               | information as a corporate PR statement: they, at best,
               | tell you why the dictator _wants others to think_ they
               | are doing something.
               | 
               | The only logical way to interpret the intentions of
               | political leaders is to look at their effects. Anything
               | else, even personal diaries, are likely full of
               | interested reasoning and outright lies.
        
               | throwaway4good wrote:
               | If we are talking about the stuff here (regulation of
               | internet companies) there plenty of speeches, 5-year
               | plans, writings in party newspapers that explains the
               | thinking behind the actions.
        
               | andy_ppp wrote:
               | Okay so is the article right? It's not about smashing
               | innovation but saying popularity is the wrong metric and
               | (CCP) power should be the driving force behind technology
               | development? Do the powerful really always state there
               | objectives obviously like some dastardly Bond villain?
        
           | 88840-8855 wrote:
           | In my eyes China is a technocratic autocracy, not a
           | dictatorship. This would explain the hypothesis why they want
           | their brains to work on rockets rather than ad tech, as OP
           | assumed.
        
             | tablespoon wrote:
             | It's an authoritarian oligarchy currently trending towards
             | more autocracy. I think people often have an unfortunate
             | lack of political vocabulary, and therefor loosely use
             | terms like "dictatorship" for any system with a large
             | amount of political repression.
        
               | refenestrator wrote:
               | I know this is just semantics but I actually like
               | 'technocratic autocracy' better than any sort of
               | oligopoly to describe China. There are no other poles of
               | power, the army even reports directly to the party rather
               | than the government. And, so far, they've been quite
               | dynamic on the technocratic front, people get fired for
               | incompetence despite having a political base.
        
               | tablespoon wrote:
               | > There are no other poles of power, the army even
               | reports directly to the party rather than the government.
               | 
               | I think you have a point with your use of "technocratic,"
               | but it is an oligarchy. The party is the oligos.
               | Autocracy implies stuff like the army reports to the
               | leader, not the party. I think things are trending that
               | way, but I don't think it's historically accurate (at
               | least for the last several decades).
        
               | refenestrator wrote:
               | You're right, I was thinking of oligopoly more in the
               | terms where it's usually applied to Russia and the ruling
               | 'set' all have different, separate power bases.
        
             | mensetmanusman wrote:
             | This might have been true, but then Xi changed the law to
             | be ruler for life.
        
               | 9999px wrote:
               | He can be voted out at any time. Western democracies
               | don't even have democratic recall outside of the neutered
               | impeachment process. GTF outta here with your completely
               | ignorant takes on Chinese politics, you clearly have
               | never been there nor read much about it.
               | 
               | Term limits are horrible for the working class in the
               | U.S. Constant political turnover means groups like ALEC
               | basically run our legislating process. Killing term
               | limits for certain offices means that as someone gains
               | experience and competence, they continue to lead, whereas
               | in the U.S. they'd arbitrarily have to leave office right
               | when they're getting the lay of the land.
               | 
               | It'd be like firing our senior dev and putting in a
               | junior - no wonder shit never gets done in the States.
        
               | jcranmer wrote:
               | > Western democracies don't even have democratic recall
               | outside of the neutered impeachment process.
               | 
               | Paging California. Paging California. Which is now in the
               | process of its second recall of a governor.
        
         | ugjka wrote:
         | He who makes the hottest chips is he who rules
        
         | bennysomething wrote:
         | Google works on and tech so it can fund everything else it
         | does, i.e. the services we actually use.
        
         | usaar333 wrote:
         | Unfortunately, the best and brightest often also like money.
         | 
         | This incentivizes said people to emigrate.
        
         | jayd16 wrote:
         | So what happens when non-Chinese software and service tech
         | continues to dominate because China decided it wasn't
         | important?
         | 
         | Clearly these sectors are powerful or they wouldn't be
         | targeted. Whats the plan to make them obsolete beyond taking
         | Chinese software down a peg?
        
           | sudosysgen wrote:
           | It will never dominate in China because of the Great
           | Firewall, and Chinese ad-tech will never dominate abroad for
           | similar reasons.
        
         | LatteLazy wrote:
         | I don't think you're wrong, but to air the other side: people
         | don't want breakthrough tech, they want cheaper mortgages.
         | That's why we spent trillions on mortgage subsidies and haven't
         | even tried to build a Mars colony.
         | 
         | The USSR fell because people didn't care about space
         | exploration and Opera, they wanted washing machines and pop
         | music.
        
         | rvn1045 wrote:
         | The scale that these companies operate on requires huge
         | innovations in software engineering and computer science. Think
         | about all the distributed systems that have come out of places
         | like Facebook and Google over the last 2 decades.
        
           | infogulch wrote:
           | Which they promptly keep to themselves and utilize to
           | maximally exploit their users time and attention. Technology
           | is a tool, not a generic force for good. Tools are agnostic
           | to human value. If technology is being used exploitatively
           | then it's a problem.
        
             | jonfw wrote:
             | They don't keep it all to themselves, giant technology
             | companies have open sourced things like mapreduce,
             | kubernetes, golang, react, kafka, and more.
        
               | sudosysgen wrote:
               | How many years did it take for Google to release
               | MapReduce?
        
           | dilap wrote:
           | I think that's overstating. To be sure some real tech
           | challenges in distributing work horizontally, but I don't
           | think it's created anywhere _near_ the amount of value that
           | 's come out of e.g. space race research.
        
             | polynomial wrote:
             | This is a really solid question with no clear cut answer on
             | the surface. I wonder what sort of research is being done
             | here?
        
             | rvn1045 wrote:
             | You don't think map reduce, tensorflow and the countless
             | other systems that have been open sourced haven't had huge
             | impact outside of their original use cases at these
             | companies?
        
             | japhib wrote:
             | The tech is less visible and more boring but I'm doubtful
             | that this is true:
             | 
             | > I don't think it's created anywhere near the amount of
             | value that's come out of e.g. space race
             | 
             | The space race gave us a lot of tangible,
             | physics/materials/hard-engineering related tech. Software
             | gives us a lot of internet infrastructure, communications,
             | algorithms, etc. that are incredibly useful for the average
             | consumer. Lots of people in this thread complaining about
             | the negative value of ads and such, but the communications
             | infrastructure, knowledge sharing, social change due to
             | marginalized people being able to communicate things far
             | and wide ... there's a lot of intangible benefits that have
             | come as a direct result of focusing heavily on consumer
             | internet.
        
               | hvasilev wrote:
               | vastly overrated compared to focusing on actual tech.
        
           | drevil-v2 wrote:
           | Distributed systems that, more or less, are only really
           | needed to run similar social networks as Facebook or Google?
           | 
           | That's like saying the Cook maybe fat and morbidly obese but
           | look at how efficiently he consumes such a large number of
           | calories every day.
        
       | toss1 wrote:
       | The Western financial elites thought they were exploiting cheap
       | Chinese labor by promoting outsourcing of manufacturing - it
       | would make for far greater profits.
       | 
       | Meanwhile the Chinese were exploiting the West's myopic focus on
       | quarterly profits to gain access to and experience in fabricating
       | and designing the top western technology.
       | 
       | The scale of this strategic blunder by the Western societies will
       | be considered of historic importance.
       | 
       | The analysis in this article brings that into focus as well as
       | anything I've yet seen. If the West does not rapidly regain focus
       | on the things that matter -- real manufacturing, engineering, and
       | AI (not consumerist opiates for the masses) -- we are soooo
       | screwed.
        
         | nemo44x wrote:
         | > The analysis in this article brings that into focus as well
         | as anything I've yet seen. If the West does not rapidly regain
         | focus on the things that matter -- real manufacturing,
         | engineering, and AI (not consumerist opiates for the masses) --
         | we are soooo screwed.
         | 
         | When China can build a decent airplane then I'll be interested.
         | Until then, they produce/replicate relatively simple tech and
         | for whatever massive scale they have in their manufacturing,
         | they lack sophistication and complexity in many ways. They're
         | doing their thing and doing it well but they don't produce
         | sophisticated, leading edge things or processes for the most
         | part.
         | 
         | The USA has never manufactured more than it does today. Don't
         | confuse manufacturing labor force size with outputs. High tech
         | manufacturing in the USA leads the world by a significant
         | margin today. Much of what China is manufacturing is considered
         | routine and trivial.
        
           | toss1 wrote:
           | Excellent points, about leadership in innovation - there are
           | many ways in which the West still leads, and in many ways
           | China is still merely a copycat - e.g., note how critical
           | China sees it to get access to the tech and local ownership.
           | 
           | But, China is advancing, making some genuine homegrown
           | breakthroughs and is certainly much further along the
           | learning curve than the West in many areas such as solar
           | panels.
           | 
           | Mostly, it is key to note that China recognizes this, has a
           | long term strategic plan and is executing on the plan.
           | 
           | Unless we make appropriate structural & strategic changes, at
           | the very least, treating a far wider swath of tech as
           | sufficiently strategic to require development & production at
           | home or among allied countries, we are on a slippery slope.
           | 
           | Edit: Plus, by the time we see them making stuff as good or
           | better than in the West, it will be too late to catch up.
           | Those growth curves tend to be exponential (compound interest
           | on knowledge gains, network effects of multiple experts or
           | multipl6field leadership, etc.).
        
           | [deleted]
        
         | clydethefrog wrote:
         | Taking a quick look at the YC S21 offering that is posted here
         | - it seems all this capital is still mostly based on software
         | that stimulates more consuming.
        
           | toss1 wrote:
           | Yup, consume now, profit some this quarter. Nevermind putting
           | in the effort to invent new technologies that could profit
           | and dominate for decades.
           | 
           | It is exactly the myopic financialist's approach. It works
           | great for a while, juicing artificial growth. Meanwhile it
           | starves the real growth engines, so when it stops working,
           | there is no hope of recovery before failure (but the finance
           | wizards have by then moved on).
           | 
           | Normally this applies at the scale of companies, but here it
           | applies on the scale of nations or societies.
           | 
           | Ignore at our peril.
        
           | orky56 wrote:
           | Startup seeks to raise funding or generate profits as quickly
           | as possible -> VCs invest and hope for 50x return within 10
           | years -> Liquidity event may take startup public where they
           | focus on quarterly profit
           | 
           | This is a system of private funding that generates maximum
           | profits within a 5-10 year horizon while China and its public
           | funding and actions is focusing on generating foundational
           | returns and innovation that will last well beyond that 10
           | year horizon. The US approach of subsidies for loss leaders
           | and laissez faire when it comes to regulation is kicking the
           | can and optimized to pump out millionares/billionaires that
           | can provide outsized returns to people in the market
           | (employees/founders/congress/entrepreneurs) but less for
           | people on the sideline.
        
       | [deleted]
        
       | DamnYuppie wrote:
       | China saw how the tech companies in the USA have too much power
       | to influence conversations. They want no part of that, they want
       | absolute control and if they have to destroy part of their
       | economy to make sure it happens then so be it.
        
         | celeritascelery wrote:
         | I don't get it. Why wouldn't you just put them under your
         | control? Now you have all that power.
        
       | FL33TW00D wrote:
       | At what point do individual freedoms / economic freedoms (eg
       | starting a company that builds addictive non-productive
       | platforms) inhibit human progress? Perhaps China is right on this
       | one.
        
       | up_and_up wrote:
       | How does this inspire founders to startup a company in China?
       | Does this inspire me to invest more money in China?
        
       | rektide wrote:
       | > _Governments of the Industrial World, you weary giants of flesh
       | and steel, I come from Cyberspace, the new home of Mind. On
       | behalf of the future, I ask you of the past to leave us alone._
       | [1]
       | 
       | Because cyberspace is ascendant over the old powers. Alas, sure,
       | it's a pretty sad capitalist shell of what cyberspace could be,
       | but it's still striding past the encumbered old giants.
       | 
       | [1] https://www.eff.org/cyberspace-independence
        
         | spiritplumber wrote:
         | I miss being that optimistic. What happened?
        
           | hprotagonist wrote:
           | and down they forgot/as up they grew
        
           | hosh wrote:
           | Software ate the world.
           | 
           | I also remember feeling that optimistic about technology. It
           | wasn't until this past year, I am getting an inkling of what
           | happened. It's a continuation of much longer trends that I
           | didn't see until I started studying Carol Sanford's work on
           | regenerative paradigms, responsible business, etc.
           | 
           | The dominant worldview these days is that of the machine
           | world view. It sees the world as complex machinery, with
           | people as cogs. It denies the power of living systems to be
           | able to live and grow on their own, instead, forcing them to
           | intermediate through the machine.
           | 
           | As such, software eating the world is a continuation of that
           | worldview.
           | 
           | I think perhaps, this is the "punk" in cyberpunk; that even
           | though people become part of the machine, they can still
           | change the world for the better against old powers. Old
           | powers didn't understand how the emerging technology works,
           | so there's a window of time. Perhaps, that, technologists
           | will maintain a tech gap over old powers. But the old powers
           | had been eaten by machines a long time ago, and when new tech
           | companies arose, that machine world view became further
           | entrenched.
           | 
           | It didn't solve for the fundamental problem: living systems
           | are not machines. We are capable of growing and changing on
           | our own. We are not consumers. We are not users. Living
           | systems are what makes software come alive; why would we want
           | software to eat us?
        
           | tablespoon wrote:
           | > I miss being that optimistic. What happened?
           | 
           | The optimism turned out to be naive? I mean, regardless of
           | whatever "cyberspace" was originally imagined to be, in
           | actuality it turned out to be bunch of Facebooks. And more
           | often than not it's allowed low-quality garbage to be spread
           | with unprecedented effectiveness.
           | 
           | Or to summarize in 1996 terminology: cyberspace turned out to
           | be land of timecubes.
        
             | distribot wrote:
             | The printing press also allowed low-quality garbage to be
             | spread with unprecedented effectiveness.
             | 
             | I'm not convinced that previous systems of more centralized
             | distribution of information (television networks and
             | woodblock printing) were better than the ones that
             | succeeded it.
        
               | tablespoon wrote:
               | > The printing press also allowed low-quality garbage to
               | be spread with unprecedented effectiveness.
               | 
               | I'd dispute that, after making one clarification to my
               | original comment: I meant "unprecedented _relative_
               | effectiveness. " At no other time has any rando with a
               | batshit insane idea been able to spread it with near
               | equal access to same the tools people use to spread real
               | knowledge and understanding. To contrast it with the
               | previous system, it's like hiring a bunch of incompetents
               | and then getting rid of code review.
        
             | creamytaco wrote:
             | Cyberspace does not exist in isolation, it's a network
             | reflecting to a large extent the sum of its parts. In the
             | early / mid 90s, before the masses moved in, "cyberspace"
             | was for the most part what Barlow imagined it to be.
             | 
             | The race to the bottom, adtech, consumerist takeover only
             | started when the "stupid" society at large became the
             | majority, so for the west this process was really
             | inevitable. China, being a dictatorship on top of a closed-
             | feedback system and unwilling to let capitalism run
             | unrestricted, has a much better chance of controlling the
             | process and using it to shape society according to a
             | central vision. We should be worried.
        
             | rektide wrote:
             | dismay is I think due but "turned out to be" is not at all
             | how I see it. the conquest of massified consumerism over
             | the frontier is a true story, but the frontier is still out
             | there, still ready, still awaiting, still vast beyond our
             | wildest imaginings. the excitement of a new liberation, out
             | of corporate data centers & back in to power, back into
             | freedom & exploration, building new connective mediums and
             | places, is more compelling to me personally than ever. and
             | increasingly more feasible, as we get better at developing
             | systems and software.
             | 
             | in the aughs Tim O'Reilly was talking about chasing the
             | alpha geeks. by contrast we seem fixated on the muck & mire
             | of the lowest experiences, these days, and we have few
             | visible free radicals pushing the ascent. I believe the
             | former to be not worthy of fixation, and the latter to be
             | imminently close to rediscovering themselves, & they will
             | be equipped with vastly better means to pioneer onward
             | with.
        
             | pierre wrote:
             | I still believe the pendulum will swing back to something
             | else... internet 2021 is not the final state of the
             | cyberspace, and things will evolve as connectivity, cost of
             | hosting and ubiquity of computer systems increase.
             | 
             | What will be the web once we move to a new 3D / AR media or
             | a metaverse platform? What id the internet become
             | distributed again (I see some seed in blockchain / DAO), or
             | if connectivity become ubiquitous (think smart dust).
             | 
             | We are just at the beginning of this journey, and the GAFAM
             | of today are the IBM of tomorrow.
        
           | fidesomnes wrote:
           | FAANG interviews.
        
           | ThrowawayR2 wrote:
           | What happened was that the silly people who wrote that
           | twaddle managed to forget (somehow) that the millions of
           | miles of fiber optics and copper cabling, the millions of
           | processors that go into servers and backbone routers, the
           | thousands of satellites and microwave links, and so forth are
           | all possible only because of the "Industrial World" and all
           | the uncounted thousands of acres of land on which that
           | infrastructure rests and the businesses that run them are
           | under the jurisdiction of "Governments".
           | 
           | There never was and can never be a cyberspace independent of
           | the physical world. All there was was a brief moment of being
           | ignored until the powers that be realized " _Oh, hmm, looks
           | like that Internet thingamajig is kind of important now;
           | better start ruling it._ "
        
       | granularity wrote:
       | > And of course you need firmware as well.
       | 
       | Love this. It's like Obama's "the bubble sort would be the wrong
       | way to go". Clearly Mr Smith has done his homework on the subject
       | of military technology and has learned a Technical Fact:
       | "firmware exists". He probably even knows that it goes between
       | hardware and software!
        
       | mrkramer wrote:
       | Why is US smashing its tech industry that's the question.
        
       | steve76 wrote:
       | marxists and liberals don't believe in rules. Just power. Burn
       | the world if you have to. That's why no one wants them around and
       | wherever they go the smart nice rich people flee like a movie
       | monster is attacking their village.
       | 
       | There are rules, unavoidable ones. No one likes to be told what
       | to do from far away. It's best to leave martial affairs for a
       | return to civil life as fast as possible. Life and everything
       | that comes with it is there for you. You're not there to act as
       | some fuel source for a rapidly devolving, senile, incompetent
       | auditor. With no principles to reign them in, no humanitarianism,
       | marxists can never quit the conflict and always do themselves in.
       | 
       | The world is much too big and complex to govern through brutality
       | and bullying. Trying to qualify expertise is like trying to stop
       | a flood. People are smart and adapt and work their way up and
       | their shortcuts and mistakes are amplified to everyone instead of
       | being siloed into their own lives.
       | 
       | Laws are there to put a limit on the violence, not add to it. If
       | you're making things worse, just go away. Governments are not
       | there to turn self proclaimed intellectual progressives into
       | movie stars.
        
       | rapjr9 wrote:
       | Another potential explanation is China is preparing for a
       | possible cyberwar and after seeing the USA population manipulated
       | by social networking during elections has decided they want their
       | population to be less vulnerable to outside manipulation.
        
       | magwa101 wrote:
       | Power, that's why China is smashing it's tech industry. In the US
       | the industry, as a whole, has a massive influence on politics,
       | culture and society. In China that is a non starter for the
       | government. It is about maintaining power and nothing else.
        
       | ftr45 wrote:
       | the question should be: ''why aren't any other governments doing
       | that?''
        
       | johnnyApplePRNG wrote:
       | I thought it was well known why Jack Ma/Ant were being crushed?
       | 
       | He spoke out against and essentially insulted the government in a
       | speech last year, and immediately disappeared from the limelight.
       | [0]
       | 
       | [0] https://entrepreneurshandbook.co/the-speech-that-cost-
       | jack-m...
        
         | geodel wrote:
         | Jack Ma was essentially engaging in payday loan type shady
         | business. Being some kinda free speech warrior is western media
         | POV.
        
       | Gollapalli wrote:
       | This probably isn't a popular opinion, but I think China may be
       | genuinely right here. Innovation requires solving genuinely hard
       | technical problems. Consumer Internet is, in general, not that.
       | 
       | I genuinely hope that America makes a similar shift in it's own
       | VC sector.
        
         | fma wrote:
         | Haven't read the article - but this is my sentiment for many
         | years. I went to undergrad for computer engineering, then a
         | masters in electrical engineering...hoping to do actual
         | engineering work. And I end up having a career in web app
         | development because that's where the money is at.
         | 
         | I am surprised that those who continue to work on "genuinely
         | hard technical problems" do so when web app/dev has so many
         | jobs with pretty damn good pay.
         | 
         | As an anecdote, my wife has a PhD in chemistry from a top
         | program. Majority of her peers in grad school ended up taking
         | classes in CS, Data Science, drop their program and work at a
         | tech company.
         | 
         | When she graduated...I remember sitting with her at a career
         | website and just looking at the differences in quantity of jobs
         | for hard sciences vs IT (my wife's career now has nothing w/
         | her hard earned degree)
        
         | salt-thrower wrote:
         | You can broaden that statement and say that almost all the
         | CRUD-app bullshit which devs get employed for these days isn't
         | that, either. I've worked as a dev for insurance, B2B fintech,
         | and athletic wear companies. They're all doing trivial CRUD
         | problems behind the scenes, where the only real challenge is
         | dealing with asinine management and organizational issues.
         | 
         | And even if the consumer internet problems _are_ technically
         | challenging, like problems of scale for Facebook, you can argue
         | pretty easily that solving them to increase Facebook 's power
         | and profitability is a net negative for society.
         | 
         | For China to simply say "no" to that and invest more heavily in
         | the physical economy is... a smart move, by my estimation. It
         | tracks with what I'd do in my "king for a day" fantasy. Not
         | that I think they're out there building a utopia - they're
         | still a repressive regime - but they're wisely avoiding a class
         | of problems that the West has jumped into headfirst.
        
       | ajmurmann wrote:
       | In discussions like this people will always call out how our
       | smartest minds are being wasted on serving advertisements. While
       | I despise advertisements and the economy around it, I wonder how
       | accurate that assertion actually is.
       | 
       | So much of the work done at Google and Facebook seems to be
       | solving general computing problems. That's how we got things like
       | React and k8s that aren't specific to advertisements at all. On
       | top we constantly complain about app the projects cancelled by
       | Google. All these projects were build by someone and rarely are
       | directly related to serving advertisements. Not to mention all
       | the very valuable products provided by Google many of us use
       | every day that provide tremendous value despite Google's ultimate
       | goal of serving ads. Gmail, Maps, Docs, Calendar, YouTube, Google
       | Voice and probably many more. Not to mention products we ridicule
       | for their unnecessary changes and internal competitors like
       | Meet/Hangouts. Pie on the sky stuff like self driving cars. AI
       | advancements like Tensor flow. They have a leading security
       | project that slowed down all out CPUs ;)
       | 
       | What percentage of work at Google is in fact directly "wasted" on
       | advertisements?
        
       | AzzieElbab wrote:
       | Is it just a big fu to investors of now delisted companies?
        
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