[HN Gopher] Is America Inc getting less dynamic, less global and...
       ___________________________________________________________________
        
       Is America Inc getting less dynamic, less global and more
       monopolistic?
        
       Author : pseudolus
       Score  : 231 points
       Date   : 2021-09-16 02:29 UTC (20 hours ago)
        
 (HTM) web link (www.economist.com)
 (TXT) w3m dump (www.economist.com)
        
       | [deleted]
        
       | quantum_state wrote:
       | Based on my observations, lots of the traditional large companies
       | are quite feudal ... lots of "yes" people ...
        
         | mrkramer wrote:
         | Nobody is forcing them to work for large companies. There are
         | thousands of jobs available at small and medium sized
         | businesses.
        
       | dzonga wrote:
       | > more unicorns are becoming public. but what's not spoken about
       | a lot is how most of these companies are running on fumes. read
       | any tech company s-1 that's posted on hn these days, high chances
       | the company is cash flow negative. which means if investors
       | withdraw funds the company goes belly up in a day, leaving the
       | regular employees i.e holoi polloi holding the bag.
        
         | Notanothertoo wrote:
         | This is often intentional for tax reasons, see palintir and
         | Spotify.
        
         | dangus wrote:
         | > if investors withdraw funds the company goes belly up in a
         | day
         | 
         | Investors _can 't_ withdraw funds from companies by design.
         | When you sell shares in a public company it's another investor
         | buying it from you.
         | 
         | Runway is runway, it can be looked as a glass half empty
         | ("running on fumes") or half full. If a company runs out of
         | time/funding rounds it can cut costs. It's easier to make a
         | profit when you have high revenue, brand recognition, fewer
         | competitors. That's why growth companies run for years on
         | losses.
        
           | dzonga wrote:
           | pulling funds, as in the 'cash from financing activities'
           | yeah that can be withdrawn. shares are different, in that
           | investors can sell the shares at a loss.
        
         | jlos wrote:
         | FYI its "hoi polloi":
         | 
         | - Hos is the Greek definitive article (i.e. "the")
         | 
         | - Pollos is a Greek word, most generally, meaning "many'
         | 
         | - They are used with the nominative plural ('oi' ending)
         | 
         | - In Greek, the article delclines with the noun so "hos" ->
         | "hoi"
        
       | matttproud wrote:
       | You just noticed?
       | 
       | Snark aside, this trajectory has been clear as day since the
       | 1990s (for anyone willing to broach this question) and brazenly
       | undeniable since the early 2000s.
        
       | mrkramer wrote:
       | Idk about America but The Economist is getting more boring each
       | day.
        
         | bsenftner wrote:
         | The 90's was their integrity apex, and it's been downhill
         | since.
        
       | seaourfreed wrote:
       | $3.5 billion a year go to Lobbyists to corrupt congress. We have
       | mass crony capitalism (on top of the healthy capitalism). That
       | drags the USA down. It needs to be solved.
        
       | [deleted]
        
       | zz865 wrote:
       | One thing is the rest of the world has caught up with America.
       | Imagine in the 60s, 70s much of the world was communist and
       | closed, dirt poor or isolated. Now living in
       | Korea/Poland/Mexico/Turkey people have cars, TVs, cellphones
       | access to travel like most Americans.
        
         | herbst wrote:
         | Cought up is relative, they developed their own way of living
         | and sometimes highly surpassed US living standards years ago.
        
           | zz865 wrote:
           | Definitely I've noticed free public healthcare & education
           | makes people less stressed and better QOL.
        
             | Frost1x wrote:
             | The US thrives on a precariat class now, though. General
             | safety nets that allow people to contribute a reasonable
             | amount and still live comfortably doesn't create a class of
             | people desperate to do any work to survive, ripe for
             | exploitation.
        
       | xyzzy21 wrote:
       | Well, duh, yes!
        
       | ur-whale wrote:
       | https://archive.vn/I1Mq4
        
       | baybal2 wrote:
       | America is becoming more isolationistic, in everything, but
       | economy.
       | 
       | The manufacturing is unfortunately not only not returning to the
       | US, despite efforts of 3 previous administration, but is leaving
       | at the accelerated pace, faster than even at the "peak
       | outsourcing."
       | 
       | Having no real economy, but banks, and McKinsey, while being in a
       | such dependency on imports is a recipe for nothing good. US trade
       | deficit has passed $70B, and we are on the route to see it pass
       | 100 this decade because of enormous government borrowing to fight
       | covid, and stimulate the economy.
       | 
       | Why it is so bad? Because, it tends to spiral out of control,
       | when your only means to pay for basic living necessities is to
       | spin the printing press, and kill the economy even more,
       | precluding any chance at repayment.
       | 
       | People wee saying that US is facing the worst balance of payment
       | crisis in eighties, when it just passed $10B, and the White House
       | was in total panic. Now, fancy economists are now coming, and
       | saying "nah, $70B is normal, we can always print more"
        
         | mjevans wrote:
         | On-shore manufacturing, automation, and making more than just
         | ideas to sell the rest of the world does seem like a good
         | thing.
         | 
         | I wonder why we can't seem to invest in the future (in the
         | USA).
        
           | baybal2 wrote:
           | As a man who worked in OEM electronics for 10 years, I can
           | say, automation will not help USA a dime.
           | 
           | There are far richer Asian countries than China, business
           | people with far more capital to buy fancy tooling. You think
           | they never tried that? They did, and it didn't work largely,
           | or the impact was minimal. Look at Malaysia, or Taiwan.
           | 
           | Hopes on robots, and automation as an economic "Wunderwaffe"
           | is plainly silly, and are largely coming from people who
           | haven't put in a single nail in their life. Don't listen to
           | these men who say that.
        
             | systemvoltage wrote:
             | 100% agreed, as someone who's automated manufacturing
             | lines, the problem of automation is beyond just robotics.
             | It's automation with high reliability, yield, less
             | downtime, high throughput, low costs and have to beat
             | humans in the long tail of weird situations. The reason why
             | your home printer can separate sheets of paper and only
             | pick one sheet at a time is nothing short of a miracle
             | backed by thousands of hours of engineering and years of
             | failures. That said, some applications are very easy and we
             | could automate effortlessly (Pick-and-place tools for
             | example in PCB manufacturing).
        
             | herbst wrote:
             | I don't know about robotics and manufacturing. What i know
             | is that I saved thousands of work hours for different
             | companies by just a few lines of code in the few years I
             | worked in this field.
             | 
             | I don't see how automation will save anyone's economy, but
             | it surely will put a always growing dent in the economy
        
             | rory wrote:
             | Electronics are a particularly complicated thing to
             | manufacture, though.
             | 
             | I know an engineer who started a small business (in the
             | USA) that makes specialized types of plastic-coated copper
             | wiring. The process is 90% automated and runs around the
             | clock. He keeps two employees on at all times, but they
             | basically just change spools and then hang out and watch
             | the machines.
        
         | [deleted]
        
         | gethoht wrote:
         | "enormous government borrowing to fight covid and stimulate the
         | economy" is by no means the reason the trade deficit is what it
         | is or what it will be. The trade deficit is the product of 40
         | years of policy that promotes outsourcing and does little to
         | nothing to protect domestic manufacturing. The only thing that
         | is protected is shareholder profit and tax schemes that protect
         | it at the expense of the rest of society.
        
           | iammisc wrote:
           | Well we saw last election how even mentioning the idea of
           | preferring american business makes you apparently a Nazi. For
           | the past forty years, almost every single american president,
           | regardless of party, has been more than happy to sell out the
           | country's manufacturing base and the media applaud and reward
           | them for it.
        
             | long_time_gone wrote:
             | Not sure to what you are referring, but Biden's "Buy
             | American" executive order gives preference to American
             | companies.
             | 
             | https://www.nbcnews.com/politics/white-house/biden-sign-
             | buy-...
        
               | iammisc wrote:
               | I'm talking about how for the past four years, import
               | tariffs, which are the same.as bidens executive order
               | were castigated simply for the crime of having been
               | initiated by a republican
        
             | kwertyoowiyop wrote:
             | Could you provide a citation for your first claim?
             | 
             | Definitely agree with the second, and you can add "CEO" as
             | well.
        
               | iammisc wrote:
               | My citation for the first claim is the trump campaign.
               | Trump made china's trade with the us a centerpoint of
               | both his campaigns and was called a racist for it. We
               | were told it's just a dog whistle for white supremacy
               | with little evidence, and we saw this line of reasoning
               | continue through the covid pandemic, when reasonable
               | theories, like the lab leak theory, which painted china
               | in a bad light also earned mr trump accusations of
               | racism.
               | 
               | The media cannot stand it when china is criticized. They
               | have a long history of this, like how they hid he one
               | child policy from Americans for years, and then openly
               | persecuted the grad student who uncovered it
        
               | rchaud wrote:
               | > The media cannot stand it when china is criticized.
               | 
               | The same media that has been reporting on Chinese
               | suppression of Hong Kong protests and Uighurs in Xinjiang
               | for several years? That media?
        
               | iammisc wrote:
               | Yup tbat media. The media with a _vested_ interest in
               | ensuring there is always sensational news, but absolutely
               | no interest that its own coverage ever lead to better
               | outcomes.
               | 
               | The media has a vested interest to not only portray china
               | as evil, but to make sure china stays that way, and to
               | thwart american presidents from doing anything to limit
               | china's growth, so that the American media has a powerful
               | short-term source of profits for its owners.
               | 
               | This is not rocket science. Notice how the Hong Kong and
               | Uighur stories are just designed to provoke outrage. The
               | moment anyone suggests a solution or a potential action
               | the US can take, the media fall silent or starts
               | attacking, depending on how likely it is for that action
               | to work.
        
           | baybal2 wrote:
           | You are mistaking a cause, and effect here.
           | 
           | 40 years of "misplaced policy," were a 40 years of actually
           | very deliberate, and well placed policy called "monetary
           | expansion."
           | 
           | Everything to facilitate the sale of US debt around the
           | world, probably including a conscious effort to open door to
           | foreign creditors at the expense of US industry was taken.
           | 
           | Chinese call this schema "You make all the work, and I make
           | all money"
        
             | dragonwriter wrote:
             | > foreign creditors at the expense of US industry was
             | taken.
             | 
             | Inbound capital transfers aren't "at the expense of US
             | industry".
        
               | baybal2 wrote:
               | Loans, are not capital, by the definition.
        
       | mc32 wrote:
       | America Inc., riffs on the now dated "Japan Inc." But... other
       | than cute, it's a poor take.
       | 
       | Japan Inc was Japan Inc _because_ much of their economy was
       | capitalistically centrally planned. The central Gov 't would have
       | monumental plans and would greatly incentivize their keiretsu to
       | follow and undertake such monumental tasks. There was METI at the
       | center making policy for an export driven economy.
       | 
       | That is in no way a parallel to what we are seeing in the US. In
       | the US we are seeing companies become _more_ influential and
       | powerful than the central government and implementing their own
       | policies (Uber in transportation, Facebook /YouTube in content
       | censorship). That is no USA Inc. It's Incs in the USA with global
       | projection. Very different.
        
       | Animats wrote:
       | Yes.
       | 
       | Ten years ago, Jeff Hammerbacher, an early Facebook employee,
       | wrote: "The best minds of my generation are thinking about how to
       | make people click ads. That sucks."
       | 
       | Look at the big names now. Google, which did most of its best
       | work in the early days. Facebook, which is part of the problem,
       | not part of the solution. Amazon, which has figured out how to
       | exploit workers. Microsoft, which is still trying to sell Windows
       | N+1. And the gig economy crowd, which has figured out how to pay
       | below minimum wage and not pay benefits.
       | 
       | What don't we have?
       | 
       | - Really good battery companies. Tesla just packages Panasonic.
       | GM just packages LG. They're not making batteries from raw
       | materials.
       | 
       | - Progress in aircraft. Boeing is still flogging variants of the
       | 737, which first flew in 1967.
       | 
       | - Semiconductors. Does anyone in the US still make commodity RAM?
       | 
       | - Electronics in general. There are few US sources left for small
       | components.
       | 
       | - Telecom. The US no longer has anybody who makes telephone
       | central office equipment. The US can no longer make smartphones.
       | 
       | - Power. The US does not make many large power transformers.
       | 
       | - Appliances. Few US manufacturers remain.
       | 
       | - Manufacturing engineering. Who gets a degree in manufacturing
       | engineering today? Who knows how to lay out a production line?
        
         | random314 wrote:
         | Would you rather watch cabletv or YouTube?
         | 
         | Would you rather fish out a map and look for directions or
         | simply ask your car for navigation directions?
         | 
         | Would a cancer researcher use his library card and read
         | literature or simply Google it?
         | 
         | Would you like to solve the protein folding problem?
         | 
         | All of these have been paid for by advertisements.
        
           | echelon wrote:
           | Outside of protein folding, each of these has been solved for
           | 15+ years.
           | 
           | And protein folding isn't _exactly_ solved.
        
             | random314 wrote:
             | YouTube was solved 15 years ago?
        
               | echelon wrote:
               | > February 14, 2005; 16 years ago
               | 
               | https://en.wikipedia.org/wiki/YouTube
               | 
               | It had a lot of content back then.
               | 
               | Work since has gone into scaling and transcoding, but
               | much more work has gone into ads, platform stickiness,
               | music rights management, abuse detection, etc. Not really
               | solving problems at the forefront of humanity.
        
           | simion314 wrote:
           | >Would you like to solve the protein folding problem?
           | 
           | Isn't Deep Mind a british company that Google bought it?
           | Seems to me that most of the credit should go to UK
           | society/education and just a bit to advertising industry.
        
             | random314 wrote:
             | What was the endgame for Deepmind, a company with no
             | revenue stream? Geoff Hinton was also hired via
             | acquisition.
        
               | simion314 wrote:
               | I do not know, but let's give the credit to the
               | educational system and country of origin too , I see a
               | lot of people give credit to US or SV for shit that is
               | bought by the giants.
               | 
               | Or I see arguments like "why there is any non US company
               | for X ?" and the implication is that SV is the best where
               | in fact SV has the money to buy anything that is
               | promising and sometimes kill it but sometimes like in
               | DeepMind case managed it good enough ot to waste it.
        
               | random314 wrote:
               | The point is, ads engineering is about 10% of Google's
               | engineering workforce. The 90% remaining are producing
               | products like organic search, YouTube, maps, shopping,
               | picasa, gmail, deepmind, Google brain, voice recognition
               | that actually works, self driving, automatic translations
               | and captions etc. Google produces the maximum amount of
               | published research by far.
               | 
               | How do you think these free products get paid for? By the
               | 10% of engineering that does ads. The engineers
               | optimizing ads are actually getting everything else in
               | the company funded, including revenue less Deepmind,
               | which would have folded years ago unless it was purchased
               | by Big Tech.
               | 
               | Sure give credit to the government and educational
               | system, but what is the point of denigrating ads
               | engineers who are funding all of these while also
               | optimizing ads results so that they are relevant to
               | users. Would you rather have them work on cancer
               | research? Do you really think cancer research is
               | desperate for machine learning engineers to help them
               | out?
               | 
               | Or would something like DeepMind, Google brain, automated
               | medical report analysis, smart search of medical archives
               | help them better?
               | 
               | Edit: as an aside, its presumptuous to say that the best
               | minds of our generation are ML and systems engineers. ML
               | engineers are good at math, programming and optimizing
               | models. This doesn't automatically make them great
               | biologists, oncologists, physicists or even
               | mathematicians.
        
               | simion314 wrote:
               | I could imagine an alternative universe where big
               | companies would pay fair taxes to UK and then those taxes
               | would have paid more research into protein folding.
               | 
               | I don't have an issue with a honest ad, what I have an
               | issue is on team of people focusing on manipulating
               | others to watch more videos, or stay more on a page, or
               | write a giant comment so they can place more ads(or
               | similar with shitty video games). Money from this evil
               | operations are dirty. You could have won this money in a
               | better way in a better world, we should strive for that
               | better world and at least we can do is give the credit
               | properly.
        
               | random314 wrote:
               | From Deep Mind wikipedia
               | 
               | "Major venture capital firms Horizons Ventures and
               | Founders Fund invested in the company,[18] as well as
               | entrepreneurs Scott Banister,[19] Peter Thiel,[20] and
               | Elon Musk.[21] Jaan Tallinn was an early investor and an
               | adviser to the company.[22] On 26 January 2014, Google
               | announced the company had acquired DeepMind for $500
               | million,[23][24][25][26][27][28] and that it had agreed
               | to take over DeepMind Technologies. The sale to Google
               | took place after Facebook reportedly ended negotiations
               | with DeepMind Technologies in 2013"
        
           | goodpoint wrote:
           | The following technologies have been researched between 1900
           | and 1990 almost entirely with *tax money*:
           | 
           | Semiconductors, computing theory, GPS, GSM, satellites,
           | airplanes, X-ray, optical cables, analog radio transmission
           | and spread spectrum, industrial chemistry, solar power,
           | nuclear power, vaccines, genetic research, and much more.
           | 
           | Private companies putting together a search engine or uber or
           | deliveroo are sitting on the shoulders of giants.
        
         | jauer wrote:
         | > - Telecom. The US no longer has anybody who makes telephone
         | central office equipment. The US can no longer make
         | smartphones.
         | 
         | Adtran (Huntsville, AL & just acquired ADVA), Infinera (fab in
         | Sunnyvale, CA). Both make optical transport systems. Adtran
         | also makes access network systems (POTS, DSL, PON, Ethernet).
         | Adtran has (or had) some manufacturing capability in Alabama.
        
         | baybal2 wrote:
         | > - Manufacturing engineering. Who gets a degree in
         | manufacturing engineering today? Who knows how to lay out a
         | production line?
         | 
         | Apple, Amazon, Google, Facebook, all have engineering centres
         | in China.
         | 
         | When Zuckerberg was flying to suck up to Xi Jinping, he didn't
         | fly there in hopes of getting Facebook.com available in China.
         | What he got from Xi is a permission to setup an office to sell
         | ads, and hire cheap Chinese engineers.
         | 
         | Apple famously tried to conceal even the fact of the existence
         | of their RnD office in China, claiming that they don't have
         | "design centres" outside of USA. Up to some point, people
         | working in Apple RnD centre in China had _a contract clause
         | prohibiting them from posting the fact of their employment
         | there on their LinkedIns._
         | 
         | Google... almost the same story as the two above, it almost
         | felt as if they felt "beshamed" to admit that they were opening
         | an RnD shop in Shenzhen. "A small auxiliary office" that takes
         | a few floors in Shenzhen's biggest building.
         | 
         | Amazon started their Echo, and Fire RnD in USA, and then sent
         | it off to China after a few releases, and repeated flops of
         | Fire.
        
           | echelon wrote:
           | So when does the US collapse for not knowing how to do
           | anything anymore?
        
             | Animats wrote:
             | Around 2030-2035, when China gets annoyed at the US over
             | something and just stops shipping tools and componenets.
             | Consumer goods shipments continue, but nothing that would
             | allow the US to make anything.
        
               | echelon wrote:
               | 10-15 years to re-industrialize or shift to other
               | countries.
               | 
               | Not going to happen.
               | 
               | Why doesn't the US try to onshore critical manufacturing?
               | This is braindead stupid behavior. Existentially risky.
        
               | tbihl wrote:
               | We don't onshore because we are higher up the economic
               | food chain, and can do more specialized work. The people
               | high up that chain in the US are the same class who
               | conceive of minimum standards for living quality for the
               | whole country, effected by things like minimum wages,
               | welfare, and all manner of government safety regulations.
               | 
               | All of those things make a very small overlap between
               | people who need to work such low value manufacturing jobs
               | and those who have the skills and personality to do them.
               | In essence, we've settled in to enormous wealth and
               | safety by cooperating with other countries, and you are
               | proposing that we should cooperate less and be poorer.
               | 
               | I'm not convinced that you're wrong, but that's what
               | you're propounding.
               | 
               | Update: In other words, you're asking the national level
               | version of "why don't we move back to the land and become
               | self sufficient and steer clear of industrial ag and make
               | our own food?" Same answer: we like our wealth, comfort,
               | and safety where we are, thank you very much.
        
               | runawaybottle wrote:
               | Labor costs are too high. Look, once you spend decades
               | paying pennies on the dollar for labor, it's very hard to
               | go back. It's the same when people discovered free music
               | via p2p and YouTube. How do you dial that back?
               | 
               | Nothing short of global war will fix this. Enter war with
               | China where all trade is halted, and I promise you we'll
               | figure out how to on-shore manufacturing in a jiffy. A
               | terrible price, but the only solution.
        
               | pm90 wrote:
               | > Nothing short of global war will fix this. Enter war
               | with China where all trade is halted, and I promise you
               | we'll figure out how to on-shore manufacturing in a
               | jiffy. A terrible price, but the only solution.
               | 
               | Yes, let's start a global military conflict between
               | nuclear powers in the hope that an economic activity
               | that's no longer feasible maybe becomes feasible.
        
               | crocodiletears wrote:
               | In part because we've spent the last two generations
               | scrubbing ourselves of the intellectual capacity to have
               | a coherent dialogue about industrial policy.
               | 
               | Also in part because much of our leadership isn't
               | composed of Americans working for American national
               | interests, it's composed of humanists who perceive
               | themselves to be global citizens and believe in a
               | worldwide frictionless marketplace operating under a
               | universal liberalism that incidentally control American
               | resources.
        
               | pm90 wrote:
               | Leaders who act against the interests of their
               | constituents get voted out. I can't imagine a majority of
               | US politicians holding the thought that American jobs
               | must be sacrificed for the good of the world. The less
               | convoluted reason is that Corporations make a ton more
               | profit by manufacturing overseas and have directed their
               | lobbying dollars into either making politicians look the
               | other way or prohibit them from taking meaningful efforts
               | to save domestic manufacturing.
        
               | esyir wrote:
               | When there's the "America is the cause of all evil" guilt
               | (slight exaggeration), you can. A belief that what you do
               | is moral can get people to align against their own
               | interests.
        
               | pm90 wrote:
               | Just because it's a possibility doesn't mean that it's
               | actually happening. If it was this would certainly be
               | covered by the media, Politicians would have a policy
               | platform to address this etc. There doesn't seem to be
               | any evidence to indicate that's what's happening.
        
         | jmeister wrote:
         | Imagine reducing Amazon to "exploits workers".
         | 
         | For starters, what about all the startups powered by AWS?
         | 
         | Amazon lets my programmer cousins in India buy the latest
         | technical books in days, while my generation used to torrent
         | and print 15-20 years ago.
        
         | zachguo wrote:
         | Well, SpaceX is in the U.S.
        
           | coldtea wrote:
           | Yeah, and who knows, soon might even manage to get to the
           | moon, something we already did in 1969. But now better and
           | cheaper (with tech made 50+ years after the last mission, it
           | would a challenge not to do it better and cheaper - but is it
           | half a century worth of better and cheaper? Considering the
           | dreams then was a moon base and mission to mars coming in the
           | next decades, something that never came to be).
        
             | tbihl wrote:
             | The space race was possibly the pinnacle of the principle
             | that government spending can accelerate technological
             | progress in particular fields by raining money on those
             | fields. The progress puts it way ahead of what could be
             | expected and occurs to the detriment of sectors from which
             | the money was taken.
             | 
             | We now have a good understanding of just how far ahead we
             | pushed ourselves beyond what market forces were going to
             | pursue: 50-60 years, which is pretty cool.
        
         | c54 wrote:
         | I agree with your point, and it makes me really sad.
         | 
         | Let me try to make some optimistic spins?
         | 
         | - Intel is hopefully turning their foundry business around. I
         | think this will be a slow (1-2 decades?) process but will pay
         | results.
         | 
         | - Tesla and SpaceX are actually really positive spins, though I
         | agree Tesla isn't completely isolated from the rest of the
         | eletronics world. It's what we've got and it's not half bad.
         | SpaceX in particular I is world-class at this point and
         | hopefully will continue to get better
         | 
         | - Toyota makes more cars in the US than not. Worst case, these
         | are still functioning production lines staffed by good workers,
         | that talent and working knowledge (hopefully) doesn't just
         | disappear
         | 
         | - A lot of your examples are lower down the value chain, for
         | instance Intel doesn't produce commodity RAM since they
         | famously got out of that game in the 80s(?) to focus on the
         | higher margin CPU business. Maybe this is good?
         | 
         | Ultimately though, I agree that working in ads or finance is
         | largely flat or negative sum to society (as someone who has or
         | is in both). It's worse than that, too. People actively look
         | down on manufacturing, as somehow less exciting and less
         | complex than finance.
        
           | baybal2 wrote:
           | USA sells quite a lot of cars to China, out of all places...
           | 
           | But these are not American cars, these are German cars made
           | in America.
           | 
           | Americans I meet are always surprised when they see how close
           | are manufacturing jobs salaries in China, and US.
        
             | dragonelite wrote:
             | I was surprised when I discovered that the VW group sells
             | like half of their inventory in China and ASEAN region.
        
             | HPsquared wrote:
             | If they're German cars made in America, what about all the
             | American goods made in China?
        
           | pm90 wrote:
           | That's a little naive. No political entity in history has
           | been able to reverse economic decline by looking at what it
           | did best in an earlier age and try to do that again.
           | 
           | There are other countries that are simply better than the US
           | at doing certain things. I don't understand why Americans
           | can't just accept that. Embrace the things we're really good
           | at, work with others to get from them the things they're good
           | at.
        
             | TeMPOraL wrote:
             | There's arguably a strategic need to keep at least some
             | expertise and a minimal operational capacity even for
             | things that are cheaper to import[0]. COVID-19 demonstrated
             | how fragile supply chains are, and that was _just_ a global
             | emergency, and not purposeful economic warfare.
             | 
             | America is good at things at the edge of the value chain.
             | High-end goods. Services. Demand manufacturing[1]. Things
             | that have value during good times, where the earlier links
             | in the chain are healthy, and consumers have plenty of
             | money to spend. In times of crisis, all this can evaporate
             | quickly.
             | 
             | Also, I feel it might be that the kind of jobs America is
             | good at are different from the lower-level jobs in ways
             | that are not conductive to having a healthy middle class.
             | I've read some convincingly-sounding arguments going in
             | this direction, but I can't recall any right now, and I
             | haven't thought about this topic hard enough to come up
             | with one myself.
             | 
             | --
             | 
             | [0] - This is not an unprecedented idea. See Boeing as a
             | point of comparison. From what I read, the company would've
             | been dead long ago if not for government spending. This
             | spending looks wasteful if you look at what gets produced,
             | but not when you realize it's really a way to ensure that
             | manufacturing plants and people knowing how to use them are
             | available in case they're needed for war production.
             | 
             | [1] - Without being too bitter about it in this thread, I
             | feel quite a lot of ways US brings in money are fads and
             | artificial scarcities, created using marketing and
             | intellectual property laws.
        
               | pm90 wrote:
               | I agree with your assessment but I don't think the
               | solution is to try and artificially shore up domestic
               | manufacturing capacity to the extent that it was before.
               | There also isn't any reason to believe that those that
               | supply us with what we want desire the kind of economic
               | warfare you're describing.
               | 
               | As for the middle class: I do agree here, we made a huge
               | mistake gutting the manufacturing sector too quickly. But
               | I suspect where we failed was in providing assistance to
               | the affected communities rather than artificially trying
               | to prop up manufacturing. The increased savings from
               | manufacturing abroad could have been used to fund better
               | healthcare and educational opportunities. Provide some
               | kind of unemployment assistance. Instead all the rewards
               | disproportionately went to a small minority of the
               | owner/shareholder class.
        
               | TeMPOraL wrote:
               | > _I don't think the solution is to try and artificially
               | shore up domestic manufacturing capacity to the extent
               | that it was before._
               | 
               | I agree that fully internalizing this kind of
               | manufacturing is counterproductive. I feel that the
               | optimum level is a limited capacity that could be scaled
               | up quickly in an emergency. It's less efficient short-
               | term, but resiliency always has some costs.
               | 
               | > _Instead all the rewards disproportionately went to a
               | small minority of the owner /shareholder class._
               | 
               | I feel there's some confusion in the way offshoring
               | savings were, and are, being talked about. Possibly a
               | purposeful confusion. The way I see it, one can't say
               | "we're saving money by offshoring", where "we" means "our
               | country/our economy". It's the _private owners
               | /shareholders_ that are saving money. The country only
               | saves if they get to appropriate those savings, e.g.
               | through a tax. If companies start to offshore and the
               | government doesn't adapt taxation, then the country is
               | actually losing on this.
        
             | pydry wrote:
             | >There are other countries that are simply better than the
             | US at doing certain things. I don't understand why
             | Americans can't just accept that.
             | 
             | This is essentially a reworded version of the "ricardian
             | law of comparative advantage" which was treated as gospel
             | as an economic theory in the 1990s-early 2000s.
             | 
             | It's almost dead today. The widely believed built in
             | presumption that comparative advantage was static and
             | unchangrable essentially led to American manufacturing
             | being siphoned off overseas to countries that did not share
             | this view.
             | 
             | Almost all policymakers are now starting to treat this as a
             | geopolitical threat.
        
               | thow-58d4e8b wrote:
               | To expand a bit - Ricardian comparative advantage
               | argument relies on the following assumptions:
               | 
               | - no transportation costs
               | 
               | - no unemployment
               | 
               | - barter economy
               | 
               | - 100% fungible labor - farmer, teacher, chemical
               | engineer, doctor - they're all the same and can switch
               | between jobs instantly, and immediately attain the level
               | of productivity within that sector
               | 
               | - prices are 100% determined by labor costs
               | 
               | - demand for various types of items is static, and never
               | changes
               | 
               | - the demand structure is the same across all countries -
               | i.e. if British prefer tea to coffee, we assume all
               | countries prefer tea to coffee
               | 
               | It's not just a "spherical cow" theory, it's more akin to
               | "if a spherical cow rolls frictionlessly down a valley
               | described by a parabola, then it will oscillate forever".
               | True, but useless.
               | 
               | Keynes, as usual, is ahead of the pack - calling out the
               | theory's unrealistic assumptions, and predicting (in
               | 1930s) that not the production, but the interest rates
               | will do the adjustments - leading to persistent trade
               | imbalances and move the economy further from full
               | employment. Which is exactly what happened
        
               | germandiago wrote:
               | I recommend a read of the Austrian School of economy.
               | 
               | Not as influential as Keynes since he is at the top. But
               | for me, the most correct theories (without being an
               | expert in the matter) come from there.
        
               | imtringued wrote:
               | The Austrian School of economics is just bad. Everyone
               | knows that Keynes' policies are bandaids that make the
               | wound recover faster. Meanwhile Austrian economists
               | believe that people must let the wound heal as slowly as
               | possible because of a tendency toward masochism and
               | sadism.
               | 
               | The truth lies in neither. The biggest economic problems
               | stem from rigidity. Money has such an extreme degree of
               | rigidity, it is capable of traveling through both space
               | and time unhindered. It's a time machine and massless
               | particle all in one.
               | 
               | The reason why Austrian economics appeals to some people
               | is either because they have an anti government axe to
               | grind and want more trivial reasons to blame the
               | government, they want to be on the receiving end of a
               | regressive money system (gold bugs), macroeconomics are
               | often abandoned in favor of microeconomics which hides
               | the fact that local decision making can still result in
               | seemingly coordinated failure and finally because they
               | have mistaken moral beliefs about an amoral system most
               | notably the myth of the protestant work ethic and the
               | belief that the promise of work is their own personal
               | property and it should be their right to delay redeeming
               | that promise for all eternity.
               | 
               | I will repeat it again. There are no morals in economics.
               | Anyone who worships savings and frugality in monetary
               | terms is worshipping poverty in real terms. Eat your
               | economic cake, it will be bigger tomorrow because of that
               | and when somebody needs you to show restraint and want to
               | borrow your slice, they'll tell you.
        
               | germandiago wrote:
               | Ehat you are saying is not correct.
               | 
               | You are missing that growing in permanent debt has
               | consequences. Some countries have been ruined by external
               | debt. We are on our way.
               | 
               | We people do not manage wealth like that. A call for
               | poverty is to live over our real outcome permanently
               | (this does not mean we cannot invest and have debt as
               | long as we are able to pay and as long as it has expected
               | return in controlled ways).
               | 
               | Eventually you go bankrupt. What is being poorer than not
               | being able to finance your basic services?
               | 
               | And yes, I admit to hsve become somewhat antistate.
               | Because it is a scam, basically, to monopolize services,
               | offer them more expensive, without the innovations that
               | markets could provide you mich faster and on the way
               | saying you are ok thanks to them and that you owe the
               | state everything.
               | 
               | I can deal with market prices and free choice and save a
               | bunch of money, which is MY invested effort, so it is me
               | who should manage it.
               | 
               | States do not give me anything except poor justifications
               | for their existence. The only exceptions could be (and I
               | am not convinced either) security and justice.
               | 
               | I really think they are way more correct than the
               | alternative: that we must be forced in groups under the
               | decisions of ellites. This is not morally right. And,
               | BTW, a higher goal for the sake of others under coaction
               | lead to fascisms and communism. Little by little we lose
               | our freedom. Not a good thing.
        
               | pydry wrote:
               | Comparative advantage (or rather, the fallacious notion
               | that it is inevitable/static) is still weirdly treated as
               | gospel by the Austrian school. E.g.
               | https://mises.org/library/ricardian-law-comparative-
               | advantag...
               | 
               | Austrians are a crotchety bunch and a bit stuck in their
               | ways. They never really tried to explain the rise of
               | China and are still somewhat in denial about it.
        
               | germandiago wrote:
               | The rise of China. Well. Taking into account that they
               | adopted a somewhat economy market in many areas and that
               | when there was more pure communism the economy was
               | worse...
               | 
               | I would say they did not get here faster because of too
               | much intervention honestly...
               | 
               | Nothing is pure capitalism or socialism. As you open the
               | economy the cash flows more. That is what happened...
               | 
               | BTW, I do not consider China a success since they are
               | like one century late from America and on top of that
               | there is no regike that has killed more than the Chinese.
               | Do you really think it is a success? Well... I would say
               | despite of the people managing it, not because of them...
               | 
               | That said, I am not meaning austrians got everything
               | right, just that I find them relatively convincing in
               | many areas. Of course, they are subjrct to criticism, as
               | everyone else.
        
               | pydry wrote:
               | The problem with ascribing China's success to being a
               | market economy is India.
               | 
               | India shared similar population size, geography and
               | wealth to China initially.
               | 
               | India had something closer to a market economy that was
               | less interventionist/communist _and_ for far longer and
               | yet it has grown at a far slower pace.
               | 
               | Austrian predictions from the 90s presumed that China
               | keeping tight control of the economy/currency/inward
               | flows of investment and high level of state ownership was
               | shooting itself in the foot.
        
               | germandiago wrote:
               | I am not an economist to analyze this in-depth. And very
               | likely you have your point.
               | 
               | However, for me the discussion is also ethical: I do not
               | find a reason to have an ellite forcing on all the others
               | through coaction what to do. Whether it maximizes economy
               | or not. In other words: peopke are ends not means for
               | others. That is the fundamental point in my view.
               | 
               | I would not take a regime with over 60 million deaths
               | (big leap forward, Chinese cultural revolution, etc.) as
               | an example of something ethical by any measure.
        
               | imtringued wrote:
               | That's the damn point. Backwards governments can still
               | succeed precisely because of the opposite, they can
               | become (reasonably) good governments.
        
               | germandiago wrote:
               | China is a reasonable government that has over a million
               | Uyghurs muslims in concentration camps.
               | 
               | The history of a reasonably good country that had
               | successes as the Great Leap Forward, the Chinese Cultural
               | revolution and now the Uyghurs, among many others.
               | 
               | You know, Chinese government is not reasonably good at
               | any level by any moral assessment.
               | 
               | Capitalism has been superior in every aspect: as a proof,
               | migration flows went from socialists to capitalists
               | countries, being East/West Germany just one example.
        
               | justicezyx wrote:
               | Which standards judge the backwardness, and what a good
               | one?
        
         | bsenftner wrote:
         | Long before we were born, our parents and their parents sold us
         | out. This is just the lingering remnants, the propaganda for
         | what was never accomplished, America only produces the carrot
         | as a lure for a nation of endless corruptions.
        
         | dluan wrote:
         | The truth is that we're always in late stage capitalism, except
         | for when we can creatively destroy something well enough to
         | keep our minds off of that reality.
        
         | postmeta wrote:
         | Tesla has their own battery factories too, one is already live
         | at Kato in California:
         | https://spectrum.ieee.org/tesla-4680-battery
         | 
         | Tesla is also working with Panasonic and CATL to implement
         | their own factories for 4680 cells and scale production.
        
         | rektide wrote:
         | even within software, it feels.like their is so much room &
         | space for new ideas, innovation & novelty. but the best minds
         | are all paid to captivate attention for big systems, or manage
         | various well established rent-seeking comluter offerings.
         | 
         | it slays me that the engineers, the techies, have never had our
         | day. we havent gotten good. we havent started new things,
         | havent been augmenting & enhancing the world: we've been well
         | paid to do the opposite, to capitvate & control & take
         | technology, to dollop it out in little well managed productized
         | offerings. the whole culture of innovation has dried up. i
         | think of tech as still having so much prowess, skills,
         | potential, and power, but wow, it is so squandered. it is so
         | hard to break off on our own, to step away from the giant
         | faucets of money & to start pursuing the radical, the good, the
         | possible, the exciting. the potential.
         | 
         | and what possibilities do arise, they seem so very quickly
         | picked up, bought out, folded in to the mass corporatized
         | system. comoetition & competency & novelty keep dying before
         | they really get a chamce to bloom. it's the Thiel'ian advice to
         | Facebook to sell, to take the money, get rich now, rather than
         | keep working & trudging on, hoping.
        
         | nemo44x wrote:
         | I'd say open source software and business models around it.
         | Being a developer today and starting a company is so much more
         | dynamic and accessible today than 20 years ago.
         | 
         | I'd also say the creative works has seen a massive revolution
         | from technology. Anyone can make professional
         | video/audio/graphics today and distribute it.
        
         | bobbytit wrote:
         | This has been a deliberate destruction of a once great nation
         | since the moment Kissinger sold the US out to Chairman Mao. The
         | world is now China's bitch but just have woken up to it.
        
           | [deleted]
        
           | JohnWhigham wrote:
           | I'd contend NAFTA was the kiss of death for the US. It's what
           | turned on the country to cheap produce out-of-season, and it
           | got us addicted to cheap electronics. People forget that shit
           | like tape decks and the like used to be prohibitively
           | expensive in the 70s/80s. Nowadays we have people working at
           | McDonalds with $1000 phones in their pockets. I don't think
           | these devices were meant to be had by all. You should have to
           | work for them. Commoditizing electronics looks great from a
           | human rights perspective, sure, but it's proved ruinous for
           | the planet.
        
             | SamoyedFurFluff wrote:
             | > McDonalds with $1000 phones in their pockets. I don't
             | think these devices were meant to be had by all. You should
             | have to work for them.
             | 
             | Aren't they working for them?? At McDonald's?? And honestly
             | they're probably working harder than me, a software
             | engineer, who also has a 1000$ phone. But I also have
             | healthcare, and never have to put up with mopping any
             | flooring.
        
               | JohnWhigham wrote:
               | My point is that electronics should be prohibitively
               | expensive. They have a lot of expensive parts in them.
               | Today's budget iPhone should be something like $2000.
        
               | KingMachiavelli wrote:
               | Actually there are less expensive parts. The parts are
               | more expensive per unit mass but I bet an iPhone consumes
               | about 1/10 of the raw materials as a early 70/80s
               | entertainment boxes. It still just plastic, metal, glass,
               | etc. The old electronics probably used worse chemicals in
               | production as well. The lithium ion battery is probably
               | the one outlier in that it's unique to mobile electronics
               | but old portable electronics would use dozens of non-
               | rechargeable batteries every year.
        
               | JohnWhigham wrote:
               | _The lithium ion battery is probably the one outlier in
               | that it 's unique to mobile electronics but old portable
               | electronics would use dozens of non-rechargeable
               | batteries every year._
               | 
               | Sure, but devices with replaceable batteries are
               | theoretically easier to use longer. The average person
               | buys a mobile phone every other year and discards their
               | old ones. Practically every consumer electronic out there
               | uses rechargeable batteries now which puts a limited
               | lifespan on them.
        
               | bitcurious wrote:
               | That's an opinion; not a point. A point would be some
               | justification for _why_ you think that.
        
               | JohnWhigham wrote:
               | I said it: they have lots of expensive parts in them.
               | They rely on expensive rare earth metals that require
               | lots of capital to extract, and leave wakes of
               | destruction on the landscape. They require lots of
               | plastics that remain inert for thousands of years. If one
               | is spending thousands of dollars on these things, then
               | they better last a long time. Instead we throw them out
               | every other year and begin the cycle anew again.
        
           | mschuster91 wrote:
           | > This has been a deliberate destruction of a once great
           | nation since the moment Kissinger sold the US out to Chairman
           | Mao.
           | 
           | Nope. What has been going on over the last decades is simply
           | the consequence of unregulated capitalism - by design,
           | capitalism seeks to eliminate or reduce cost to increase
           | profit, and China (as well as India and Vietnam) were/are the
           | most cost-efficient locations to produce goods and provide
           | services.
        
             | lotsofpulp wrote:
             | The need for people to have a villain in their stories
             | always disturbed me. I guess it gives people a semblance of
             | control if they "know" something, rather than acknowledging
             | the innumerable causal factors intertwining with each other
             | to create an unknowable future and unattributable past.
             | 
             | I am sure Kissinger played a part in many things, but he
             | seems small pickles compared to labor costs (and hence
             | quality of life) in the US being multiple standard
             | deviations above the mean compared to the rest of the
             | world.
             | 
             | How long did people expect that arbitrage opportunity to
             | not be taken advantage of?
        
               | disgruntledphd2 wrote:
               | The only reason that this could be taken advantage of in
               | any real sense, was the removal of capital controls,
               | which was very much a political choice.
               | 
               | Also, adding China to the WTO was probably a bad thing
               | for the lower half of the income distribution in the
               | developed world.
        
               | lotsofpulp wrote:
               | Unless your nation is self sufficient, there are always
               | costs to capital controls. The choice is not let everyone
               | live happily ever after and restrict trade. Tradeoffs are
               | made to remain competitive on a global playing field.
               | 
               | If China and other countries are bringing 1B+ people
               | online to make products at a fifth of your wages, then it
               | is only a matter of time before the buyers outside the
               | country start buying from them.
        
               | [deleted]
        
             | germandiago wrote:
             | It is true. Capitalism by design seeks that. And you too.
             | And each of us. We seek to live in better conditions.
             | 
             | The side-effect of it is that technology that the day back
             | was not reachable for most is now available for everyone:
             | phones, cheap clothes, cheaper food, hot water,
             | electricity, railways...
             | 
             | BTW I have lived in VN almost 10 years. It is true that VN
             | has factories and workers are much cheaper.
             | 
             | Jobs move there. People buy cheaper products (automatically
             | people that did not have access to something have access to
             | it by the cost reduction).
             | 
             | Workers there get 4 times more of what they would get on
             | their own and an insurance they would not have and do not
             | need to work god knows where, probably selling in the
             | street drinks or similar stuff.
             | 
             | I think that with all its imperfections, capitalism is the
             | better alternative.
             | 
             | Btw we have never had unregulated capitalism... if we had,
             | we would have worse salaries probably but more people could
             | earn a life by themselves. Our friends the politicians are
             | always there to tell you that you have to pay and shut up.
             | For the good of all... lol. I do not buy that.
        
             | imtringued wrote:
             | When it comes to globalization the problem lies in
             | imbalanced trade. If there is no imbalanced trade
             | whatsoever, then globalization cannot cause problems.
             | 
             | Trade surplus nations work more than they should. Trade
             | deficit nations work less than they should. That has strong
             | implication on where "all the jobs" end up.
             | 
             | My favorite example is Greece. "All the jobs" have moved to
             | Germany.
        
         | kcb wrote:
         | > Tesla just packages Panasonic. GM just packages LG. They're
         | not making batteries from raw materials.
         | 
         | That's not really true. Tesla and Panasonic jointly developed
         | their cells. And the latest 4680 cells are fully designed by
         | Tesla. Tesla also seems to be going independent for production
         | at future factories.
        
         | renewiltord wrote:
         | Don't have semiconductors? News to me. I bet if you studied CS
         | and you know any electronics engineers (who should be not too
         | far from your department) they'll know wafer fabs in the US. I
         | haven't been in uni for ages and I know like three fabs in
         | Colorado where I don't even live.
         | 
         | In fact, there are like famous semiconductor companies that
         | make their stuff in the US. Makes me suspect the rest of the
         | list as similar doomsaying.
        
         | baybal2 wrote:
         | > - Semiconductors. Does anyone in the US still make commodity
         | RAM?
         | 
         | Mikron Technology Inc
        
         | ethbr0 wrote:
         | > Who gets a degree in manufacturing engineering today?
         | 
         | https://www.engineering.txstate.edu/Programs/MFGE.html
         | 
         | https://mime.oregonstate.edu/manufacturing-engineering-under...
         | 
         | Or anywhere that offers both an IE and ME degree, you could
         | likely build your own.
        
           | baybal2 wrote:
           | You will be surprised to see where you see _American_
           | process, and manufacturing engineers today.
           | 
           | We had not a few 6 year degreed engineers from USA working in
           | China full time.
           | 
           | Similarly in semiconductor manufacturing, quite a lot of US
           | semiconductor process engineers were working in Taiwan, with
           | its really low salaries, long before the TSMC made advances
           | into the US market.
        
           | pessimizer wrote:
           | That's _Where_ or _How_ , not _Who_.
        
             | ethbr0 wrote:
             | Typically, degree programs don't exist without students. ;)
        
         | [deleted]
        
         | fourtrees wrote:
         | I'd disagree with aircraft. The modern 737, the NG or the MAX,
         | is a world apart from the plane that first flew in '67. Almost
         | everything except for the seating configuration has been
         | upgraded or changed on the plane. The type-rating laws also
         | provides Boeing with an incentive to keep the plane just
         | similar enough that a crew can transfer from one class to
         | another without too much training. It's also not Boeing's fault
         | that there's a huge international market for a plane of that
         | size and range.
         | 
         | Boeing does have its faults though.
        
           | AdrianB1 wrote:
           | Trimmers auctioned by wires and pulleys, requiring more brute
           | force than a fit male pilot, that is not modern by any
           | standards, it is backward compatibility for profits.
        
         | swlkr wrote:
         | Micron makes RAM in the US
        
           | Frost1x wrote:
           | Mushkin used to, but I suspect it stopped quite awhile back
           | now browsing their website. It's apparently now owned by
           | another company as of 2013. I used to exclusively purchase
           | Mushkin memory for systems prior to transitioning to laptops
           | where I rarely swapped memory out. Good to know there's at
           | least something left at Micron.
        
         | ModernMech wrote:
         | > "The best minds of my generation are thinking about how to
         | make people click ads. That sucks."
         | 
         | I noticed this around the same time. It was 2010 and I was
         | still in grad school, my lab mate and I used to poke fun of
         | what we called the "Twitter researchers", who were working on
         | what we perceived to be very boring projects (i.e. figure out
         | the optimal ranking of N articles on a page to maximize some
         | objective function). They also didn't like the research, but
         | Twitter/Facebook/Microsoft/Google was paying for their tuition
         | and stipend, so they didn't have much of a choice. When the big
         | grant funding agencies are funding projects at a rate of around
         | 20% - 25%, if you're a researcher hurting for federal dollars
         | then that big tech money looks really good. I can only imagine
         | this dynamic being replicated at universities across the
         | country, how many young minds are wasted on this pursuit. And
         | for what? So Google can sell more ads and become even richer?
         | So Facebook can suck all of your attention just to make you
         | depressed and suffer from body dysmorphia and an eating
         | disorder?
         | 
         | I'm in the robotics field, and in our lab we used to draw a
         | clear line that whatever we worked on would not have a direct
         | military application, because we couldn't stand the thought of
         | our work being used to kill people. Obviously the line is
         | blurry (will my localization algorithm be used on a predator
         | drone?), but there was always at least an eye toward ethical
         | considerations in our research group. We always asked ourselves
         | "How could this be used to hurt people?" It was in our culture,
         | because our work had such obvious evil implications. Just watch
         | pretty much any sci-fi movie ever, there was no shortage of
         | ideas about how robotics research could go wrong.
         | 
         | But there's not a lot of sci-fi source material on how page-
         | ranking algorithms can destroy society. These "Twitter
         | researchers" as I called them never really had a notion that
         | their work could be used for evil purposes, and who could blame
         | them? In 2010 it seemed so benign. But looking around at the
         | state of social media, maybe there should have been more
         | conversations early on about the ethical implications of the
         | research they were doing.
        
           | germandiago wrote:
           | Unfortunately every thing has a bad use. Even the knife I am
           | using to cut meat. That is not a reason to forbid it...
           | 
           | Forbiding is not the way to go. The way to go is to make
           | people aware of the dangers and implications of their choices
           | and convince them why we should avoid damaging others.
           | Empathy is key here: just do not do to others what you do not
           | want for you seems to me like the most basic of the rules.
           | 
           | Imposing a view of what others can or cannot do is absurd,
           | harmful and also we can miss all the good things we can do
           | with things that can also be misused.
        
             | ModernMech wrote:
             | No one is talking about banning anything, at least I'm not.
             | Yes, everything can be misused, which is why it's important
             | to at least ask the questions about how and in what ways.
             | When some technology can be so badly misused, more so than
             | a knife, it's important to have a culture around the proper
             | handling of that power. Take nuclear energy for example.
             | Yes it can be used for great evil, but we should not ban
             | research into nuclear energy because it can be used for
             | good as well. Nonetheless, there are still grave ethical
             | considerations that go into producing this research. The
             | greater the ethical considerations, the more thoroughly we
             | need to consider all the implications of this technology,
             | good and bad, rather than "move fast and break things".
             | 
             | Social media is one of those things. It doesn't present
             | itself with the same raw force of nuclear power, but it has
             | proven to have an undeniable power over the human mind.
             | Despite the evidence we have now, though, it still seems
             | that ethical considerations of social media are not being
             | taken seriously enough by the people with the most power of
             | social media platforms, and this worries me.
        
               | germandiago wrote:
               | > there are still grave ethical considerations that go
               | into producing this research
               | 
               | I would like to know which ones. If you do something to
               | not harm, why do you have to be blamed because other
               | misuse it? I do not think this is the right line of
               | thinking if you mean that we should not do it just on the
               | basis that "someone evil could misuse it". Of course, as
               | an individual you can refuse to research if you think it
               | can yield those results, but never blame it on a
               | researcher that someone else misused their invention.
               | 
               | Social media is a fight because there is an obsession for
               | censorship from some interested parties, in part. That is
               | why.
               | 
               | I do not believe in those super powers as much in the
               | sense that you can always stay away from it as much as
               | you wish. It is a matter of self-discipline also, even if
               | it is indeed a "powerful weapon".
        
               | ModernMech wrote:
               | What I have in mind is not refusing to do the research at
               | a society level. That's what I personally chose to do,
               | but others may see it differently. The research will get
               | done if it's valuable.
               | 
               | What I'm talking about is twofold: a cultural recognition
               | and appreciation of the ethical issues, and secondly
               | appropriate safeguards to prevent maluse of said
               | technology, where appropriate.
               | 
               | Take nuclear weapons for instance. I personally wouldn't
               | have involved myself in building them, but others did and
               | here we are. We as a society don't just let that
               | technology run amok though. There are laws about their
               | proliferation, organizations dedicated to keeping their
               | use in check, and a society-level understanding that
               | their use have such terrible consequences that they can
               | never, ever be taken lightly.
               | 
               | With this environment, so far we've averted armed nuclear
               | conflict. But it's important to realize this is a
               | purposeful thing. People dedicate their lives to this
               | pursuit. It takes _effort_ to build this shared
               | understanding of their dangers.
               | 
               | I agree with you that an individual researcher is not to
               | blame if they are doing careful, considered research. If
               | the attitude is "the implications of my research are not
               | my concern. That is for someone else to worry about" then
               | I do have a problem with that. And yes, that is a real
               | opinion I have heard expressed by a researcher in deep
               | fakes, and it deeply dismayed me.
        
           | petra wrote:
           | Ethically , are robotics a good idea ? Who knows. People do
           | need good jobs, or even just jobs, and it doesn't seem more
           | robots are going to help with that.
        
             | ModernMech wrote:
             | Depends on the robot really. Robots that help the elderly
             | manage their dementia and loneliness? Great. Robots that
             | help wheelchair bound people navigate? Great. Robots that
             | help clean up nuclear disasters? Great.
             | 
             | What would not be great is if we just allow a handful of
             | people to own all the robots in the world (and their
             | output), just as we allow a handful of people to own all
             | the capital producing equipment in the world. Then we're
             | just where we are today, but even worse off. This is
             | actually my nightmare, and partly why I don't do much
             | robotics anymore these days...
             | 
             | Remember, people only need jobs because we as a society
             | have decided if they don't have jobs, we will allow them to
             | go hungry and suffer exposure of the elements due to
             | homelessness. This is perhaps necessary when there's so
             | much work to be done you want people working instead of
             | idle and comfortable. But if the robots can do all the
             | work, then why do people need jobs? Only if the benefits of
             | that work accrue to a handful of people rather that society
             | as a whole.
        
               | germandiago wrote:
               | If robots are expensive at first, some people will have
               | them first. This is a basic law of economy (scarcity).
               | 
               | It is interesting about peoplr must havr jobs or not. If
               | you do not provide value and someone has to pay those
               | costs with their work, is that fair? Even if we have
               | robots: who maintains them, manufacture, program the AI?
               | 
               | You want tha some people work doing that and the rest
               | enjoy a life as good as the ones who work hard and people
               | who benefit from them just be privileged?
               | 
               | Something does not match well here.
               | 
               | You do your contribution and find a place in society. If
               | your contribution is not great, I do not find a reason to
               | be in exactlythe same position as others. Yes you have
               | the right to live and so on. But do not expect a Ferrari
               | at your door and a luxury life.
        
             | bsenftner wrote:
             | Robots are a fantastic idea. It's the journalists telling
             | society everyone will be out of work that is the source of
             | society stress - that and the billionaires driving
             | capitalism into the dirt while ignorantly driving the
             | ignorant society they engineered for their benefit to a
             | violent revolution that will destroy them and their
             | children.
        
             | Atreiden wrote:
             | This is the argument for UBI. Robots _will_ displace human
             | workers. They already are. We can either capitalize on all
             | of this human capital by offering basic income, or we can
             | let income + wealth inequality slowly destroy society by
             | rendering the bottom X% (where X is modeled by an
             | exponentially increasing function) destitute.
        
               | germandiago wrote:
               | wealth inequality is natural by definition, whether you
               | like it or not.
               | 
               | And imposing others share the fruit of their value,
               | unethical.
        
               | imtringued wrote:
               | > wealth inequality is natural by definition, whether you
               | like it or not.
               | 
               | Considering the huge variety in "natural by definition
               | wealth inequality" across countries it feels like we have
               | enough freedom to choose how much inequality we want.
               | What we definitively know we is that we can make wealth
               | inequality much worse than it has to be. Just take a look
               | at South Africa. 30% unemployment by nature. Thank god we
               | chose a different "natural by definition wealth
               | inequality". What your argument also fails to consider is
               | that wealth inequality is getting worse over time
               | implying there must have been a natural shift rather than
               | a political one.
               | 
               | >And imposing others share the fruit of their value,
               | unethical.
               | 
               | If you refuse to share work, then you must share income
               | by definition.
               | 
               | Consider a society that only needs a 4 hour work week.
               | One person decides to work 8 hours because they like
               | their job and talk about how amazing work is and people
               | should work more. One person no longer has to work. The
               | hard working person will then look at the unemployed
               | person and then tell everyone how lazy he is.
               | 
               | Before you invoke the lump of labor fallacy, you have to
               | realize that the argument relies on Say's law which
               | assumes that the hard working person worked because he
               | wasn't satisfied with the products and services one can
               | obtain in a 4 hour work week, essentially that all the
               | money that person earns will be spent and therefore
               | generate demand for the person that is unemployed. The
               | truth is far more pessimistic.
               | 
               | The hard working person will insist that he should keep
               | his money even though he has no intention to spend it,
               | essentially denying that say's law even exists (empirical
               | evidence shows it's being broken all the time). This
               | insistence is what keeps the lazy person unemployed. That
               | unemployed person still needs 1 hour of services and
               | goods (housing and food). The bandaid answer is to tax
               | the hard working person and transfer the bare minimum to
               | the unemployed person and it works because making
               | everyone spend all their money is never going to happen,
               | there are too many morally inclined people on this planet
               | that insist on a oddly specific and harmful form of
               | saving.
        
               | germandiago wrote:
               | It is natural that if it takes you half a life make
               | incomings you are careful how you spend them... I do not
               | find the problem there.
               | 
               | There are plenty of people that take bad decisions or
               | take jobs with lower income or no jobs at all and they
               | try to blame the rest. I do not feel responsible for the
               | bad decisions of others. I am not morally forced to help
               | them.
               | 
               | You can be sure that if they are people I know and I know
               | their stories I could help. But that is very, I mean,
               | VERY different from being morally responsible for the
               | failures of others.
               | 
               | Saving harmful? First, it is good in that it will lower
               | the inflation lolol. But leaving that apart... so it is
               | bad to not spend the money so we must force them?
               | Seriously, I do not understand anything.
               | 
               | In order to make money u mist provide services or goods.
               | If u have money is bc ur service is serving others, at
               | least in a free market... so tell me why those people
               | that took yhe trouble to serve others and take risks
               | should be penalized. Do not tell me they do it for money
               | not for serving others... that is not important. The
               | important thing is that the side-effects is satisfying a
               | demandand that u bought either bc it is better than the
               | competition or cheaper.
               | 
               | In my view it should be much more penalized a person that
               | does not want to work bc they say those jobs are all shit
               | and expects the welfare to rescue them.
               | 
               | Sorry to be so harsh with the topic, because I know that
               | there are people who are not like that. But the problem
               | is not helping itself, it is systematizing it. At that
               | point people abuse it.
        
               | germandiago wrote:
               | > Consider a society that only needs a 4 hour work week.
               | One person decides to work 8 hours because they like
               | their job and talk about how amazing work is and people
               | should work more. One person no longer has to work. The
               | hard working person will then look at the unemployed
               | person and then tell everyone how lazy he is.
               | 
               | This is difficult to say: you mean a person that works
               | has exactly the same skills? In the case they have, you
               | still can have a 4h/day person that is more skilled. That
               | person will still have a job.
               | 
               | And yes, if a person works harder, it will get more from
               | it. They cannot be blamed for working I think. In any
               | case people should be blamed for not wanting to work and
               | wanting to live from others. I do not find a problem with
               | the reverse reasoning. Just my opinion, I understand your
               | point, though.
        
               | yifanl wrote:
               | What percentage of their value do you think the average
               | worker currently makes (Pick any specific occupation
               | you'd like, if this is too vague)? If its less than 100%,
               | how would you propose they petition to increase it to be
               | 100%, as ethics would dictate?
        
               | germandiago wrote:
               | You are telling me your employer must give you 100% of
               | the profit? What about:
               | 
               | - building the business
               | 
               | - maintaining it healthy (this can incur additional
               | expenses at unpredictable times)
               | 
               | - the jobs it generates (that never mind, they are bad in
               | your mind I suppose or they just do it to earn money!
               | They do... but you also pick the job in the first place
               | to make money!)
               | 
               | - the expenses they have to pay in case of firing someone
               | if it does not produce.
               | 
               | - social security they pay and contribute for everyone
               | (at least in the spanish system)
               | 
               | Do you find ethical to just ask for more money go and
               | leave them bankrupt, without any regard of how they coud
               | survive, when you just went pick up a position when much
               | of that business was built? Really? I find it unethical
               | also.
               | 
               | Get your best deal, with your employer, they will give
               | you what they think they can or _want_ , but by mutual
               | contract. If you do not like it, go move to the next
               | chance, it is not anyone's fault. Nothing bad into it. It
               | is how you do in life: you choose what you drink (and
               | what you do not!), who you join, where you go... nothing
               | different here.
        
               | yifanl wrote:
               | The employer is absolutely a force multiplier, which is
               | why I say value and not revenue generated.
        
               | germandiago wrote:
               | Ok, then I see we agree on something: you work for your
               | employer because it is your best alternative.
               | 
               | Otherwise, the logical consequence would be that we would
               | not. I believe in win-win deals. The voluntary ones are
               | by definition like that. You can take a bad decision,
               | yes. But still, you get my point.
        
               | scatters wrote:
               | And what if it's greater than 100%? Should it then be
               | decreased; what do your ethics say in that case?
        
               | yifanl wrote:
               | That feels like it'd be a small minority of cases,
               | because the person who determines how much value an
               | employee provides usually is incentivized to minimize how
               | much to pay that employee.
        
               | germandiago wrote:
               | If you pay too little to an employee he will just go
               | somewhere else. The magic of the market! That is why I am
               | all for free market (real, free market) with minimum
               | regulations. Because employers end up fighting for the
               | workforce and it benefits the workers.
               | 
               | This depends on more variables, but the goal is to avoid
               | barriers and regulations so that the wealth increases,
               | since these break monopolies or de-facto monopolies (via
               | absurd regulations).
        
           | golemiprague wrote:
           | If you use the military to protect yourself why don't you
           | want to sell them products to help them do their job? Are
           | those people below you just because they do a job you don't
           | want to do? Or do you think you don't need the military?
        
             | adwn wrote:
             | You make a valid point. I understand why ModernMech doesn't
             | want their work to be used to inflict harm on others, but
             | at the same time, they're enjoying the freedom afforded by
             | the military that protects them.
             | 
             | The sad truth of our reality is that as long as there are
             | people willing to inflict violence against us, we need
             | people who can plausibly threaten to inflict violence in
             | return. It is hypocritical to condemn your country's
             | military in general, while depending on said military for
             | protection. [1]
             | 
             | [1] It isn't necessarily hypocritical to condemn _certain
             | militar actions or policies_ , though.
        
           | Jesus_piece wrote:
           | Agreed completely. Crazy to see this endless iteration on ad
           | optimization and maximizing screen time has made
           | disinformation, polarization, and conspiracy so common.
           | Really destroying society from the bottom up IMO
        
             | sangnoir wrote:
             | > Crazy to see this endless iteration on ad optimization
             | and maximizing screen time has made disinformation,
             | polarization, and conspiracy so common. Really destroying
             | society from the bottom up IMO
             | 
             | I'd argue the technology that did most of the heavy-lifting
             | for disinformation, polarization, and conspiracy was AM
             | radio, followed by cable TV. Smartphones, the web and
             | social media were not the cause, but a natural progression
             | of, and an amplifier of a pre-existing trend.
             | 
             | There are no technological solutions to the human
             | condition, but technology amplifies aspects of it.
        
             | germandiago wrote:
             | Instead of whining it would be a good idea to make people
             | aware of the stuff we care about and help them take better
             | decisions.
             | 
             | I have available weapons and drugs. zmI do not use either.
             | I am convinced it is a bad decision except in probably very
             | extreme conditions.
             | 
             | We cannot be blaming others just for doing ads. No demand,
             | no offer. Got it? Easy as that.
             | 
             | We all like a world we do not have, we always find
             | problems. But that is not a reason to say what is bad or
             | good. The market will decide :D
             | 
             | I do not get stressed at all with all these Betting houses
             | (now fashionable in Spain) or drugs or anything: just need
             | to be responsible.
        
               | arrosenberg wrote:
               | > We cannot be blaming others just for doing ads.
               | 
               | We regulate gambling and tobacco for the same reason we
               | should regulate this. Google and Facebook ads have been
               | scientifically tuned to hijack your brain chemistry for
               | money. This isn't blame, or whining, it's simply
               | acknowledging that these companies weaponized visual
               | stimulus and data collection to sell ads on the internet.
               | No amount of personal responsibility is going to solve a
               | human society level problem.
        
               | germandiago wrote:
               | I would like to see those reports. Are there any links?
               | Not because I do not believe you, but because I am
               | genuinely interested.
               | 
               | That said... well, I still think that at the end, nothing
               | can beat having good information. Close Facebook, Google
               | and put ads blockers.
        
               | arrosenberg wrote:
               | What reports? A simple search will provide you with all
               | the info you need on any of those topics.
               | 
               | And again, the whole thrust of my argument is that
               | telling people to close Facebook is the same as telling
               | them to stop smoking. It's naive and ignores the reality
               | of brain chemistry and addiction.
        
               | germandiago wrote:
               | ah. So if I have all the information known for years from
               | tobacco and I smoke and get into trouble, then I blame it
               | on not having regulations?
               | 
               | Seriously? I was not taught like that at my home sorry.
               | It is not the way it should.
               | 
               | You do something and, unless fooled or cheated, you are
               | responsible for the consequences.
        
               | arrosenberg wrote:
               | That's a really weird (borderline bad-faith) way of
               | reading what I wrote, and it kind of explains your
               | viewpoint.
               | 
               | > So if I have all the information known for years from
               | tobacco and I smoke and get into trouble, then I blame it
               | on not having regulations?
               | 
               | If you, as a fully-informed, grown adult in 2021 make
               | that choice, then no. In the real world, that's not how
               | people get addicted to cigarettes. People generally get
               | addicted when they are young, uninformed, and highly
               | susceptible to the marketing aimed at them. Plenty of
               | people living today remember doctors recommending
               | cigarettes for pregnant women - it's silly to assume
               | every person is going to know the risks of these things
               | from the very minute they decide to engage in them. Just
               | look at how quickly Juul took over high schools - you are
               | really going to tell me that a 15 year old trying to fit
               | in is making a full informed, long term decision about
               | tobacco usage? Absurd. Or the Oxycotin epidemic - all
               | those people were addicted to drugs because of Sackler's
               | marketing and the corruption of their doctors - how does
               | one take personal responsibility for following medical
               | advice?
               | 
               | Social media is now where tobacco was in the 70s and 80s
               | before all the information was released in a narrative
               | form that the public could easily digest. All that
               | knowledge about the risks comes from the process of
               | bringing that information into the public light.
        
               | germandiago wrote:
               | Do you see 10 year old people smoking? Usually no.
               | Teenagers? Probably they start there. Then, when do you
               | think they should get that information in education? It
               | is a real question.
               | 
               | That would prevent way more I guess. Of course, in our
               | law, trying to sell cigarrettes actively to underage is
               | illegal and I find that regulation reasonable.
               | 
               | But trying to protect adults from their own
               | irresponsibility is a totally different story. It is
               | their problem.
               | 
               | I get your point and in some way you are right also. I am
               | just advocating for little regulation, but, of course, I
               | am talking also about adults here.
               | 
               | I did not mean underage people. If you target underage
               | for gambling or any addiction in bad faith, that is an
               | attempt to cause damage and punishable.
               | 
               | But that does not mean that the most important thing is
               | to have the information there and decide. Again, I am
               | talking about adults.
               | 
               | By the way, talking about regulations. In my country you
               | can open a university only if it has 8 or 9 degrees
               | offered. If I want to open the best CS degree in the
               | country as a University, I cannot. Do you find it
               | reasonable? Do you think this goes in the interest of
               | consumers? Do you think the state abuses its position by
               | doing so? (Clearly yes). That is why I do not want
               | regulations. You give them the power and they end up
               | regulating even your position to go to the toilet. That
               | said, I find under/overage, even if it is arbitrary
               | (there are teenagers that are responsible people),
               | reasonable, to protect them from unscrupulous people.
               | 
               | But I do not need my life to be ruled in the name of so
               | many things, that is bad and it goes against us if you
               | think of it carefully.
               | 
               | But you will always have responsible teenagers and
               | irresponsible adults. We should not help people that do
               | not want to be helped.
               | 
               | The same way we should help people that have trouble. We
               | should, I think, honestly, but... that we should does not
               | mean we should have that responsibility unconditionally
               | and coactively.
               | 
               | You know what? It can look selfish to you but you are
               | going to have way more autonomous, responsible and self-
               | sufficient people if you apply this rule. A good outcome
               | IMHO.
        
         | bobthepanda wrote:
         | With planes the 737 upgrading is a feature, not a bug.
         | 
         | It is extremely costly to develop a new airplane and to train
         | staff on it, at the price point and fuel efficiency for
         | airlines to sell ever cheaper tickets. Airbus is doing the
         | exact same with its neo models. Bombardier and Embraer were
         | driven into the arms of the duopoly because they cannot afford
         | to develop new aircraft. Russia, China, and Japan have all
         | tried their hand at pumping billions of dollars into commercial
         | aircraft manufacturing and haven't been successful.
        
           | torresmo wrote:
           | You seem to be describing the low hanging fruit case
           | mentioned in the article.
        
           | selfhoster11 wrote:
           | Yes, but come on. 1967. We surely have made a lot of progress
           | since then. 50 years of holding back is a bit much. Are we
           | going to still hear "but retraining is soooooo difficult" in
           | 2067?
        
             | gruez wrote:
             | maybe we reached peak aircraft? After all, we don't
             | complain that we're using a knife design from a few hundred
             | years ago.
        
           | jessaustin wrote:
           | While this is plausible for aircraft in general, in the case
           | of the 737 Max it clearly isn't true. Boeing would have been
           | better off not killing hundreds of passengers and losing
           | $20B.
        
         | mschuster91 wrote:
         | > The US no longer has anybody who makes telephone central
         | office equipment.
         | 
         | You don't need that kind of equipment any more since the advent
         | of VoIP and software-defined radio/networking.
         | 
         | > The US can no longer make smartphones.
         | 
         | Apple is US-based as is the world's leading provider of mobile
         | communication chips Qualcomm (and for what it's worth I
         | seriously believe Apple is going to go vertical on that part
         | too!), and with Google you have a second US-based vendor of
         | operating systems.
         | 
         | Or are you referring to the capability of produce _all_
         | components of a smartphone on US soils?
        
       | orangepurple wrote:
       | "America Inc" properly referred to as the United States, a
       | federal corporation
       | 
       | https://www.law.cornell.edu/definitions/uscode.php?width=840...
        
       | LurkingPenguin wrote:
       | I don't know about "America Inc" but as an expat American living
       | in Asia who recently visited after not having been back for a
       | couple of years, I didn't leave with the view that things were
       | improving. To the contrary, while I do think that the massive
       | "stimulation" of the economy has made things seem less worse,
       | America today seems a lot less healthy than the America I left.
        
         | matttproud wrote:
         | The same. I left the country about a decade ago. I don't
         | observe much positive dynamism when I return: grinding morass
         | and retrograde motion. Reactionary politics, regulatory
         | capture, graft, and naive faith in the market hold such a
         | disproportionate sway on the levers of power. What is big is
         | too damned big, and it crowds out everything else. The
         | exceptions to this don't outweigh the general trend.
         | Consolidation in the private and underinvestment in public
         | goods are the most striking.
         | 
         | From a raw cultural perspective, it strikes me how commercially
         | uniform the country became: outside of enjoying differences
         | topography and pre-homogenization (what remains of walkable old
         | towns), I deeply don't find much of a compelling reason to
         | travel within the country due to how damned cookie cutter it
         | feels.
         | 
         | I am sufficiently concerned about this trajectory (among a suit
         | of other more significant concerns) to aim to get a second
         | citizenship for my family.
        
           | defterGoose wrote:
           | Whaddya mean? _Everybody_ loves Chipotle!  /s
        
             | lotsofpulp wrote:
             | While I do like Chipotle, a lot of homogenization is simply
             | the result of efficiency. Cookie cutter succeeds because
             | cookie cutter is what people want.
             | 
             | The pace of homogenization might have increased because
             | technology greatly enables it. If you want a product just
             | type "best whatever's" into Reddit or wire cutter or
             | consumer reports and you can have thousands of people's
             | experiences distilled down within minutes. Same thing for
             | food and travel.
             | 
             | Do I want to take chances on various stores owned by
             | various owners sourcing goods from various places?
             | 
             | Or do I want to get my sister a gift from Target, where if
             | she does not like it, she can go home and return at the
             | Target near her home.
        
               | fearfulofview4 wrote:
               | Trillions of flies eating feces doesn't make it haute
               | cuisine.
        
           | LurkingPenguin wrote:
           | > From a raw cultural perspective, it strikes me how
           | commercially uniform the country became: outside of enjoying
           | differences topography and pre-homogenization (what remains
           | of walkable old towns), I deeply don't find much of a
           | compelling reason to travel within the country due to how
           | damned cookie cutter it feels.
           | 
           | If you love nature, America is still one of the best
           | countries to travel in. It has some of the most magnificent
           | natural places and is massive, so even if you're driven away
           | from popular parks because of overtourism, there are many
           | less popular places that are amazing.
           | 
           | Unfortunately, the camping plans for my visit were severely
           | hampered by wildfires, which looks to be a permanent fixture
           | of the American west going forward.
        
         | bricemo wrote:
         | What are some things you saw that made you feel it wasn't
         | improving or less healthy?
        
           | LurkingPenguin wrote:
           | Economically, it seems like the disparity between the haves
           | and have nots has increased significantly. Price inflation is
           | not an illusion. In the Bay Area, it felt like no matter
           | where I ate a meal, it always cost at least $20.
           | 
           | The supply chain issues are also real and seeing bare
           | shelves, empty car lots, throughout the duration of my visit
           | was disturbing.
           | 
           | I noticed a significant decline in the quality of service at
           | many businesses. The labor shortage is apparent, and many
           | service workers seemed not to care about their work, which
           | reflected in their attitudes towards customers.
           | 
           | On a personal level, I felt that people were less friendly
           | and, more worryingly, less respectful. The public cursing
           | everywhere I went was really unattractive.
           | 
           | I'm sure some of this is that I have been changed by living
           | in East Asia, where people tend to be more polite (if not
           | friendly) and focus less on the individual than the group.
           | But I don't think it was just me 100% either. I believe the
           | increased politicization of just about every subject is a
           | part of this.
        
             | Vadoff wrote:
             | Did you visit during the pandemic?
        
             | refurb wrote:
             | Well if your sample is limited to "SF bay area" then I
             | could see why. Quality of life has definitely been
             | degrading in California.
        
               | LurkingPenguin wrote:
               | I spent time in Oregon and Washington too.
        
       | silksowed wrote:
       | cant point to anything in particular but this just seems off.
        
       | ravenstine wrote:
       | When it is stated that the American economy is "free-market", I
       | find that to be a non-starter.
       | 
       | Yes, a certain amount of the price of goods and services is
       | determined organically, but the market is by no means "free" in
       | the way that people think it is. It's heavily regulated,
       | influenced by powerful industry lobbies, and substantially
       | dictated by how the federal and state governments want to trade
       | with other nations. It might not be overtly communistic or
       | totalitarian, but that doesn't make it Laissez-faire, and it
       | never really was in the first place.
       | 
       | If we had a free market, then we wouldn't be allowing a small
       | number of corporations to drive down prices, invite regulation,
       | and collude with the press so as to snuff out meaningful
       | competition. Some would argue that this is indeed a free market
       | by the virtue that it is what the market has chosen, but not
       | really. It's hardly different from feudalism.
        
         | germandiago wrote:
         | True.
        
         | mtberatwork wrote:
         | Eh, this argument often crops up in some variation. It's
         | essentially the "No true Scotsman" argument for the free
         | market. _The free market hasn 't failed it just wasn't "free"
         | enough!_ ... and so forth.
        
       | ngcc_hk wrote:
       | Monopolistic... you miss Chiba sharp power and more net power.
        
         | thehappypm wrote:
         | Chibas are a huge problem. Who thought it was a good idea to
         | breed Chihuahuas and Shiba Inus?
        
       | Barrin92 wrote:
       | > If true, that would be bad news for the spiritual home of free-
       | market capitalism
       | 
       | I'd question the premise that the US is the land of free-market
       | capitalism. America is the home of Hamilton's American system, of
       | the Rockefellers and the gilded age, and of monopolistic
       | competition (now Bezos and Amazon).
       | 
       | Startups like to describe themselves as free-market oriented but
       | they're either giants-in-waiting or dead. There's no equilibrium
       | of middle-sized, free market startup capitalism. That
       | Jeffersonian ideal you're more likely to find in the artisanal,
       | small and debt avoiding family business in the German Southwest,
       | say.
       | 
       | Same goes for trade. With trade volume only constituting a
       | quarter of the GDP[1] the US is one of the most domestic
       | economies in the world. Compared to France and the UK at 60% or
       | Germany and South Korea at 85%. It very much explains America's
       | bipartisan streak for protectionism compared to much of Europe
       | and Asia.
       | 
       | [1]https://en.wikipedia.org/wiki/List_of_countries_by_trade-
       | to-...
        
         | iammisc wrote:
         | This is true... But only on the coasts. In the majority of this
         | country, the people there don't care about silicon valley and
         | many people own businesses.
        
           | pessimizer wrote:
           | But they operate on extremely low wages supplemented by
           | government transfer payments.
        
             | iammisc wrote:
             | I imagine many would say that's due to the inflationary
             | pressure of living in a country with wealthy coastlines.
        
           | tonyedgecombe wrote:
           | But they all shop at Walmart.
        
             | iammisc wrote:
             | I'm not 100% sure what this has to do with business
             | ownership.
        
         | herbst wrote:
         | From a outside perspective this free market thingy was never
         | more than a movie plot in the US
        
           | gverrilla wrote:
           | I think you're making it smaller than it really is. At this
           | point, it's part of a world religion A LOT of people live by,
           | it's taught in schools and universities, it's made premise
           | for a lot of fake science, etc. Predicted precisely by Guy
           | Debord, 50y ago - but you won't see it being studied in
           | universities because it hurts how they earn their bread :/
        
             | herbst wrote:
             | I really don't know. As mentioned I just see it from the
             | outside. Our schools don't make America today a example for
             | a great free market, the opposite might even be true. In
             | fact the US is sometimes portrait as a danger to our 'free'
             | market.
        
               | imtringued wrote:
               | The fact that there is even the idea of a global reserve
               | currency shows that the free market isn't as prevalent as
               | people think. In principle people should be free to pick
               | whatever currencies they want to conduct trade with.
        
         | pessimizer wrote:
         | > With trade volume only constituting a quarter of the GDP[1]
         | the US is one of the most domestic economies in the world.
         | 
         | Because _net_ trade volume is massively and surrealistically
         | _negative_ and has been for a very long time, assuming the fact
         | that exports being small in relation to total domestic
         | production means that Americans consume an unusual proportion
         | of domestic products is not a good assumption.
         | 
         | Especially when you bring up Germany and South Korea, who are
         | massive exporters with huge trade surpluses.
        
         | bell-cot wrote:
         | IANAL (...not a linguist) - but to me "spiritual home of free-
         | market capitalism" very much emphasizes that, while many in the
         | U.S. may _talk_ big about free markets, the current reality is
         | quite different.
        
         | HPsquared wrote:
         | There's a word for these German businesses:
         | 
         | https://en.m.wikipedia.org/wiki/Mittelstand
        
       | twofornone wrote:
       | I very much agree with the assertion that our economy is getting
       | less dynamic, in the sense that everywhere you go in the US it
       | seems like everything, and i mean everything, is being
       | steamrolled by bigger and bigger corps and morphed into a bland,
       | dumbed down, mass appealing corporate monoculture, designed
       | (probably by MBAs) exclusively with profits in mind and no actual
       | interest in developing any sort of soul or true differentiation.
       | Random example, walk into a hardware store (everywhere you go its
       | either lowes, home depot, or maybe ace, cross country) and tell
       | me if there's a real difference between any of the tool
       | manufacturers. On the one hand, the convenience of cheap and
       | fairly durable goods is great. On the other, it seems like
       | everyone is afraid to stray too far from what works to really
       | innovate or compete. Most cars look pretty similar. The same
       | restaurants exist literally from coast to coast, everywhere you
       | go the US is starting to look more and more generic.
       | 
       | Mostly it probably has to do with economies of scale, but at this
       | point I'd rather spend an extra 10%+ on goods and services if it
       | meant a return to true differentiation and a wider variety of
       | consumer culture.
        
         | foofoo4u wrote:
         | This reflects one of the greatest dissatisfaction I have with
         | touring the United States, which is the ubiquity of franchises.
         | I can tour cities across the country and I always see the same
         | companies: Starbucks, Target, 7Eleven, Panda Express, Petco,
         | etc. It doesn't matter if I go to Salem, Austin, or Los
         | Angeles. I see the same stores with the same shopping centers.
         | There is a lost sense of culture.
         | 
         | The same goes for billboards. It's always the same companies
         | marketing: Ford, McDonalds, etc. Why do we hardly ever see
         | small brands marketing? I'd be inclined to keep billboards if
         | small brands utilized them to help their business, but that is
         | rarely the case. Given this, why do we still tolerate
         | billboards to the same mega-corporations? Everyone already
         | knows they exist and what they sell. How much more exposure do
         | they really need at the expense of the natural beauty of our
         | towns and our own mental state?
        
           | megaman821 wrote:
           | I can't say I have too much trouble going to interesting
           | eateries and coffee shops around cities in America. I agree
           | with you the retail shops are pretty much the same
           | everywhere.
           | 
           | I see (and have bought from) small brands online (especially
           | ones that advertise on social networks and podcasts). In my
           | circles a lot of other people have to. I just assume that
           | these advertisements are a lot more effective than
           | billboards, so billboards are left to the larger companies
           | doing more brand marketing.
        
         | LamdbaMamba wrote:
         | I'm seeing more and more discussion on a stuck mono culture,
         | and I have to say I agree with it. This is an interesting write
         | up on the phenomenon.
         | 
         | https://paulskallas.substack.com/p/is-culture-stuck
        
       | oenetan wrote:
       | https://ghostarchive.org/archive/bUsjL
       | 
       | https://archive.is/GOYrX
        
       | JoeAltmaier wrote:
       | The whole world, not just a nation.
        
       | dukeofdoom wrote:
       | America was built in the last century. New high tech cities are
       | being built all over the world now. They are paying top money so
       | getting top talent and top firms to work for them. America is
       | getting left behind, and routed around when needed. The
       | corporations have left their home base for greener pastures.
        
         | kcb wrote:
         | > New high tech cities are being built all over the world now.
         | They are paying top money so getting top talent and top firms
         | to work for them.
         | 
         | Where? China, who has effectively no immigration? Definitely
         | not Europe.
        
           | herbst wrote:
           | I am not sure what qualifies as high tech city. But we have
           | all the big names plus a healthy startup culture here in
           | Switzerland. Adding the good wages, low taxes, the high
           | living standard and the stable society it's obvious why we
           | draw in tech talent from the whole world and only very few
           | are leaving.
        
           | vgatherps wrote:
           | China has a billion people and is a major top-talent provider
           | to the USA. They can source internally and/or provide
           | enticing alternatives at home for talent who might otherwise
           | leave for the US.
        
         | ramphastidae wrote:
         | Any specific cities you want to mention?
        
           | dukeofdoom wrote:
           | Dubai is one I visited personally. But there are other middle
           | east cities with tons of money. Many cities in China, South
           | Asia and Europe are growing and modernizing too. Even former
           | Eastern Block countries are going through a building boom.
           | Some of these places don't really need America for anything.
           | They can trade between each other.
        
           | renewiltord wrote:
           | I'd say Shenzhen is one of these. Went from a provincial
           | small city to a global powerhouse in twenty years.
        
       | hikerclimber1 wrote:
       | Hopefully Boeing fails and hopefully the western us burns.
        
       | bonnie76 wrote:
       | https://web.archive.org/web/20210916034205/https://www.econo...
        
       | hikerclimber1 wrote:
       | yes.
        
       | orionblastar wrote:
       | People are refusing to work minimum wage jobs and causing small
       | businesses to shut down. My relatives have a Japanese Steakhouse
       | with Sushi and they are short people working. Meanwhile Covid
       | means reduced hours and mask wearing.
        
         | toofy wrote:
         | Often, not always but often, owners of businesses are refusing
         | to run a business at a more reasonable personal salary.
         | Sometimes owners should temper what they personally expect in
         | monetary returns.
         | 
         | We would never expect a business owner to work for less than a
         | livable wage and we definitely shouldn't expect its employees
         | to either.
         | 
         | If a business can't provide both its owner _and_ its employees
         | a livable wage, then it should probably go under since it would
         | seem that either it's product isn't valuable enough or it's
         | being mismanaged to the point that it can't provide a livable
         | wage to anyone.
        
         | OJFord wrote:
         | Well then obviously they need to be paid a bit more than
         | minimum wage? If you can't fill the jobs at that price, you pay
         | more, surely?
        
         | gethoht wrote:
         | It's a very very good thing that people are refusing to work
         | for minimum wage. You want employees worth a damn? Pay for it.
        
         | trainsplanes wrote:
         | What's the relevance of mask wearing when it comes to business?
         | 
         | Never heard anyone complaining about business being bad because
         | people have to wear shoes.
        
           | snakeboy wrote:
           | It's less pleasant to work in a mask, especially anything
           | involving manual labor or a hot kitchen.
           | 
           | Shoes are a bad comparison. The vast majority of people have
           | always lived in a society where wearing shoes is the status
           | quo. This is not the case for masks.
        
         | wnevets wrote:
         | why haven't they tried paying more than minimum wage?
        
           | josephcsible wrote:
           | Because a lot of businesses, mainly small ones, can't afford
           | to.
        
             | wnevets wrote:
             | Why not? Being short staff implies there is more business
             | than the current staff can handle. There are tech startups
             | (aka small businesses) that would kill for that problem.
        
               | lotsofpulp wrote:
               | Because the business owners took out loans assuming x
               | labor costs, and now that labor costs are y > x, they
               | would need to default on the loan.
               | 
               | No reason to not let them suffer from their erroneous
               | assumptions though. But politically, I expect them to be
               | bailed out.
        
               | wnevets wrote:
               | >No reason to not let them suffer from their erroneous
               | assumptions though.
               | 
               | Why not? If we were talking about a tech company, would
               | you feel the same way?
        
               | lotsofpulp wrote:
               | >Why not?
               | 
               | The feedback mechanism for identifying errors is failure
               | as is the incentive to correct them. Otherwise, we end up
               | in a privatize the profits, socialize the risks
               | situation. As we currently are.
               | 
               | For example, I bid for land for commercial real estate. I
               | have been outbid by another developer who assumes they
               | can pay more for the land because their labor costs will
               | be lower for the business. They want to bet they can get
               | away with paying bottom tier wages, whereas I want to pay
               | higher wages. Or have more redundancies or use higher
               | quality materials. Of course, the land gets sold to them
               | at the higher price, they get to build the business.
               | 
               | Why should they get bailed out? They wanted to take on
               | more risk, in the form of not allow much wiggle room for
               | labor costs or using subpar materials. That is their
               | fault, and society benefits from the market sending a
               | signal from that developers failure to better allocate
               | resources.
               | 
               | >If we were talking about a tech company, would you feel
               | the same way?
               | 
               | Yes.
        
             | outside1234 wrote:
             | Charge more
        
               | josephcsible wrote:
               | The loss of sales will hurt more than the extra revenue
               | per sale will help.
        
               | dunco wrote:
               | what is your evidence for this?
               | 
               | High wage countries don't seem to have a shortage of
               | places to eat. if competitors are subject to the same
               | labor market, all prices should go up together which
               | would not give you a competitive disadvantage. certainly
               | a lesser disadvantage than not being able to open because
               | you are unwilling to pay the market labour rate.
        
               | josephcsible wrote:
               | > what is your evidence for this?
               | 
               | That's a textbook example of price elasticity from
               | economics 101. You can also think about it this way: if
               | that weren't the case, they would have already raised
               | their prices even before there was a labor shortage.
               | 
               | > all prices should go up together which would not give
               | you a competitive disadvantage
               | 
               | Not a competitive disadvantage, but still a disadvantage.
               | Take restaurants for example. If every restaurant in the
               | world raised all of their prices by the exact same amount
               | at the exact same time, they wouldn't lose any business
               | to each other, but they'd still lose a bunch of business
               | to people eating at home.
        
               | kwertyoowiyop wrote:
               | That's the theory, but is it true in practice? How do you
               | KNOW for certain that if they raised their prices by X,
               | their revenue would fall by > X?
        
             | kingTug wrote:
             | If your business can't survive without an army of minimum
             | wage slaves it doesn't deserve to be in business to begin
             | with.
        
               | tppiotrowski wrote:
               | Unless they get seed money
        
               | colinmhayes wrote:
               | How can you possibly be confident in what it means for a
               | business to deserve to exist? If they're not doing
               | anything illegal and they're not losing money they
               | deserve to exist, beyond that there's no way to say.
        
               | truckerbill wrote:
               | Laws don't dictate our collective ethical code fully.
               | They are more like minimum requirements for the state to
               | maintain order, with some hard won ethical mandates
               | thrown in. It's easy to justify that statement on ethical
               | grounds IMO
        
             | AndrewKemendo wrote:
             | An increasingly popular response to this that I've seen is
             | "Then they shouldn't be in business"
             | 
             | I find the argument irksome, as it ignores a lot of the
             | peculiarities and variances between markets, but at least
             | it's an interesting perspective.
        
               | nemo44x wrote:
               | Especially considering this was caused by the government
               | passing out money for too long in addition to telling
               | everyone to not bother paying their rent. Plenty of
               | places have been offering $15-$20/hour and have struggled
               | to find help since why would you work when unemployment
               | pays more?
        
               | sangnoir wrote:
               | A _lot_ of people used the time they were involuntarily
               | let go to up-skill into better-paying careers. This
               | resulted in a labor shortage in minimum-wage jobs,
               | regardless of unemployment benefits (that have since
               | lapsed in a chunk of states). Market forces are at play
               | here, there 's no reason to special-case labor when small
               | businesses can handle increases in the other costs (gas,
               | lumber, aluminum, steel, etc), the only reason I can
               | think of is because they think they can bully the
               | suppliers (of labor), or lobby the government to do that
               | on their behalf.
        
               | defterGoose wrote:
               | What's irksome about it? It's an indicator that
               | inflation/prices have outpaced wages. Should we no longer
               | be concerned with livability? Only with returns on
               | capital?
        
               | lotsofpulp wrote:
               | The response is in context of someone complaining they
               | cannot afford something.
               | 
               | If I am complaining that I cannot afford a private chef
               | in my home, then the answer is for me to figure out how
               | to earn more. Or go without a chef.
               | 
               | It is the same thing for a restaurant. Either figure out
               | how to make more money (even if it means closing the
               | business and changing your line of work, or figure out
               | how make do without the chef).
        
             | Germanika wrote:
             | They can't afford not to. The alternative is shutting down,
             | no?
        
         | phaemon wrote:
         | You mean people like you? Or are you working there for minimum
         | wage?
        
       | m12k wrote:
       | I mean, IP is by its very nature designed to be monopolistic, and
       | with the decline of manufacturing and the rise of tech, IP is
       | making up a bigger and bigger part of the US economy. So of
       | course it's becoming more monopolistic.
        
         | [deleted]
        
         | mensetmanusman wrote:
         | IP is designed to allow a certain subset of solutions to be
         | monopolize by inventors for ~ half the life of the inventor
         | (although most patents are abandoned after a few years). It
         | shouldn't, ideally, block all possible solutions.
         | 
         | In my experience (have applied for over 50 patents), the act of
         | understanding and inventing around other peoples patents has
         | very often lead to brainstorming resulting in superior
         | solutions (this was an unforeseen advantage of good US IP law
         | that other countries are trying to replicate).
         | 
         | I would note that my ventures are in the area of atoms and not
         | bits :)
        
           | OneEyedRobot wrote:
           | Looking at the US Constitution, IP law should be designed to
           | heavily encourage innovation. I would think that the actual
           | details of law would reflect that rather than maximizing the
           | value of an idea to it's owner.
           | 
           | To be fair, the current results should have been predictable.
           | A small, finely focused and self-interested group can usually
           | defeat an unruly mass.
           | 
           | >I would note that my ventures are in the area of atoms and
           | not bits :)
           | 
           | Good for you. My own bias and personal experience highly
           | tends towards that, including US manufacture. Thinking about
           | the article at the top, I wonder sometimes what the 'economy'
           | even is anymore. I tend to distrust articles on it as all the
           | news tends to involve internet-based FIRE 'industries' and
           | surveillance marketing startups. I'm not feeling the love for
           | those segments.
        
           | Buttons840 wrote:
           | Of course, a downside is a person can set out to invent
           | something entirely on their own, succeed in doing so, and
           | then find out what they've done is illegal. That's a big
           | downside.
           | 
           | Paul Graham said if you're successful you will be sued by
           | patent owners. How many are discouraged from even trying?
        
             | mensetmanusman wrote:
             | This is where experience comes in, and the need for good
             | mentors. In many cases, you can explicitly define your
             | solution with certain key differences relative to prior
             | work.
             | 
             | That is why it is wise to have good patent lawyers on your
             | team. You may still get sued, but your likelihood to
             | prevail can be increased.
             | 
             | Companies know this, that is why it is often cheaper for,
             | say, Apple to purchase entire start ups than to sue them.
             | The inventor still benefits in this case (actually, they
             | can benefit more than typical inventors when this happens).
        
           | ramblenode wrote:
           | > this was an unforeseen advantage of good US IP law that
           | other countries are trying to replicate
           | 
           | More common, from what I've seen, is smaller countries
           | reluctant to adopt liberal US-style IP law and being
           | pressured to do so by the US State Department as a condition
           | in trade negotiations and foreign aid. The US delegation was
           | the principal pusher of IP reform in the TPP, and this
           | evaporated when the US left.
        
             | mensetmanusman wrote:
             | The benefits of strong IP law are not apparent at first. It
             | happened in the US through trial and error during both
             | world wars and then up through the decades, e.g.
             | https://en.m.wikipedia.org/wiki/Bayh-Dole_Act
             | 
             | I only know this due to some policy courses I took during
             | IAP when I was at MIT.
        
         | poorjohnmacafee wrote:
         | The decline of industry/manufacture is largely a fake thing
         | American politicians pushed over the decades to enrich their
         | overseas partners. It will definitely come back, especially
         | with the rise of ESG where environment concerns means _short_
         | supply chains, not shipping everything across the pacific and
         | polluting the crap out of planet unnecessarily.
        
           | Notanothertoo wrote:
           | The gov has subsidized it at every level, including making it
           | cheaper to send to shenghai than new York.
        
       | GoodJokes wrote:
       | Who wrote this article? Can't tell.
        
       | [deleted]
        
       | 1vuio0pswjnm7 wrote:
       | "... and Apple is reportedly building a search engine."
       | 
       | Often Ive wondered they dont build a social network.
        
         | mschuster91 wrote:
         | Because building a social network is _hard_. Not
         | technologically, any half decent coding school grad can put out
         | a basic Twitter clone in a week worth of coding... but you have
         | to spend _lots_ of money to get users (either via advertising
         | or via developing features no one else has), and the larger you
         | get the more you _have_ to spend on moderation.
         | 
         | Apple markets itself as family friendly, which _directly_
         | collides with the tendency of people to post copyright-
         | protected content, abuse of all kinds, pornography and
         | similarly disgusting content, and not to mention consumers of
         | CSAM who will invade _any_ new platform that crops up to avoid
         | getting booted off in seconds.
        
         | 1vuio0pswjnm7 wrote:
         | The reason why I pondered this question is the "disagreement"
         | between Zuckerberg and Cook. Apple could capture some of
         | Facebooks market if Cook was so inclined.
        
         | meragrin_ wrote:
         | They already have a social network. It just requires a hardware
         | purchase to actually join it.
        
           | 1vuio0pswjnm7 wrote:
           | Thats more or less what Ive thought about. But then there was
           | this bit about opening up FaceTime to people who dont own
           | their hardware.
        
           | 1vuio0pswjnm7 wrote:
           | Thats more or less what Ive thought about. But then there was
           | this bit about opening up FaceTime to people who dont own
           | Apple hardware.
        
         | thehappypm wrote:
         | They sure do have a social network! iMessage, FaceTime, etc.
         | Even email is a social network. It doesn't need to look exactly
         | like Facebook to be a social network.
        
         | lupin_sansei wrote:
         | They've tried a couple of social networks around iTunes but
         | they failed.
        
           | silvestrov wrote:
           | They don't (want to) understand that social network means
           | that users talk to each other.
           | 
           | The iTunes stuff was unidirectional from 'artists' (i.e. ad-
           | agencies) to users.
        
             | sangnoir wrote:
             | MobileMe included user-to-user communication (iChat), as
             | well as a Gallery that could host publicly-accessible
             | pictures. If you squint a bit, those were social network
             | features. Unfortunately, MobileMe bombed pretty badly - and
             | very publicly.
        
             | meragrin_ wrote:
             | > They don't (want to) understand that social network means
             | that users talk to each other.
             | 
             | No, I think they perfectly understand that. The iPhone is
             | their social network. You can use it to manage your
             | contacts, call, send messages(both long and short), share
             | photos and videos, and video chat. What more else do they
             | need that they don't already have?
        
         | sho_hn wrote:
         | Doesn't feel like that would be in Apple's DNA at all. A lot of
         | their brand identity is a certain Disney-like pristine
         | safeness, and they use it to sell lifestyle products that allow
         | customers to associate with and embody that identity. A social
         | network is all about self-expression and human mess.
         | 
         | Just compare customization/personalization options in Apple
         | software and other software, historically. MySpace it ain't.
         | Apple products are not the ones you import your personality
         | into.
         | 
         | They've certainly dabbled in social features here and there,
         | but none of them have been useful enough to be a hit with
         | customers, I'd argue because what they're willing to do within
         | the limits of their brand guidelines doesn't make for easy
         | social success. Unclear if a working formula exists somewhere
         | in that space on the spectrum.
        
           | [deleted]
        
         | eightysixfour wrote:
         | I think they do have one, it just doesn't look like a feed. It
         | is "built in" across a number of apps on Apple devices like
         | iMessage, Photo Streams, Memojis, Calendar, and Facetime.
         | They're even adding Status to iMessage in iOS15.
        
       | netcan wrote:
       | _Testing prevailing hypotheses,_ in this sense, is a treacherous
       | game. Number of business starts, IPOs, patents and most attempted
       | refinements of such measures are very crude measures.
       | 
       | For example, Cowen later softened some of his positions on
       | learning how much of the data he commented on was retail driven.
       | Retail is relevant, but he was accidentally modeling the retail
       | market where he intended to model the economy.
       | 
       | Besides crude metrics, there are always implied assumptions
       | connecting new business starts, IPOs or unicorn milestones to the
       | bigger picture.
       | 
       | In short, this is rhetoric. Hypotheses testing is fine
       | figuratively, but let's remember where the pitfalls are.
       | 
       | IMO, it's worth noting where a lot of this is coming from: market
       | caps. These are very much monopoly-related. The bull case
       | expectation for a 2020s Great Company is 25-40% profit margins,
       | double digit growth or potential for such. This is possible
       | because Alphabet, FB, Apple & such do not need to borrow or raise
       | to grow.
       | 
       | This fuels a fire of speculative startup investing at the lower
       | tiers, the only place where capital _is_ required.
       | 
       | The problem is, IMO, that there's almost no relationship between
       | FB's size and gross economic output, productivity, economic
       | utility, etc. Online communication is great, but online
       | communication isn't better because FB is 10X bigger. Google's
       | freeware is great, but we were getting search, gmail, etc when
       | Google was 10X smaller.
       | 
       | Where's the relationship between aggregate revenue (nevermind
       | profit) at JPMorgan, Alphabet or FB and economic utility?
       | 
       | IMO Cowen, The Economist and much of this cohort/generation of
       | economists have an economic worldview that totally lacks an
       | adequate model for market structure/maturity and such. This has
       | led to a lot foolishness.
       | 
       | If you are Ford in 1921, the world is young. You get more
       | efficient each year. Cost per car decreases, but you can outrun
       | this by making more cars. The market is growing in both dollars
       | and number of cars. If you are intel in 2021, same game. The
       | world is young. Moore's law only tells half the tale. Transistors
       | halve in price and size every two years, but the number of
       | transistors produced increases by more than than. The more they
       | make, the more we want. Gotta mine that crypto, train GPT-N, etc.
       | We need more chips every year, and the cheaper they get the more
       | we need.
       | 
       | If productivity keeps goes up, but we don't need more and more
       | cars... the market contracts and this is now a different game.
       | 
       | If $Nbn worth of grocery shopping that once happened in
       | supermarkets now happens on amazon, the markets value this is a
       | net capital gain, because $Nbn at amazon is presumably more
       | profit generative in the long run. That doesn't society bought
       | more groceries, or received much more value.
       | 
       | This is not _that_ hard. Look to the largest companies. What are
       | they outputting? How much of it? How good is it? What changed? I
       | get that it 's harder to add up than the number of cars coming
       | out of factories but, it's still less abstract than viewing the
       | world through a purely financial lens.
        
         | TheOtherHobbes wrote:
         | It's a fundamental problem with corporate accounting.
         | 
         | In the real world externalities have real effects, whether
         | they're ecological costs or business losses created by
         | monopolistic growth.
         | 
         | That's not even counting second order effects like loss of
         | experimentation and fundamental research - not packaging
         | existing tech, but inventing completely new and unimagined
         | classes of tech through (ideally) genius math, but next best is
         | original blue sky research.
         | 
         | On Wall St externalities are ignored. The show only continues
         | because it's fundamentally and polemically about _denying
         | reality_ in favour of an entirely imaginary world of financial
         | story-telling.
        
           | netcan wrote:
           | Sure, but i'm not even talking about externalities or 2nd
           | order effects. I'm talking about first order effects.
           | 
           | Google, FB, JPM, etc. achieve 350% growth over 5 years. OK.
           | Does that mean they produce 350% as much utility?
           | 
           | If these were Tesla, we'd also count the number of cars and
           | the conversation would be a lot more grounded. We'd quickly
           | realize that the market values Tesla's future in a certain
           | way, Ford's another. We wouldn't accidentally conclude that
           | the economy is suddenly making way more cars.
           | 
           | What is it that the economy is doing more _of_?
        
       | gethoht wrote:
       | This is a big fat "Duh". Capitalistic monopolies also largely
       | explain a majority of the supply chain issues we've been facing
       | for the past few years, largely driven by "Just in time"
       | production.
        
         | Frost1x wrote:
         | There's this idea that resiliency and efficiency aren't trade
         | offs and I agree some times, they aren't always direct trade
         | offs, but they seem to be a lot of the time. Efficiency usually
         | means cutting redundancy and redundancy is exactly what creates
         | resiliency (backups, parallel paths, so on).
        
       | sbt wrote:
       | yes. lol
        
       | rundmc wrote:
       | You mean that isn't the plan?
        
       | nottorp wrote:
       | Judging by my limited knowledge of US industrial history, that
       | title needs an "again" added at the end.
       | 
       | I vaguely remember Edison fighting AC solutions (as opposed to
       | his DC solutions) by spreading FUD instead of attempting to
       | compete on technical merits. So, no news here?
        
         | bsenftner wrote:
         | Are you over a hundred and forty years old? The 1880's-90's is
         | when this took place. To vaguely remember, you'd need to be at
         | least a teen during the era...
        
           | nottorp wrote:
           | Vaguely remember READING about it. If you actually need that
           | spelled out.
        
       | pm90 wrote:
       | 2008: Worst economic recession in a generation
       | 
       | 2008-2020: 3 Presidential terms with pretty lax antitrust
       | enforcement.
       | 
       | That's a long time for the monopolistic tendencies to bloom.
       | Which is to say, yes, it is more monopolistic now (but doesn't
       | need to continue being that way).
        
       | phendrenad2 wrote:
       | Yes. It's impossible to do battle with an entrenched industry.
       | Just don't. That's why every startup these days is trying to find
       | a niche the entrenched industries missed.
        
       | cheriot wrote:
       | > since the start of the covid-19 pandemic America Inc has been
       | anything but stagnant. Applications to start new businesses have
       | soared. In the first six months of 2021 around 2.8m new
       | businesses were born, 60% more than in the same period in pre-
       | pandemic 2019
       | 
       | When people have something to fall back on they take more risks.
       | Kind of like how the most successful large companies are in tech.
       | Those founders had less downside than someone opening a
       | restaurant.
        
         | betwixthewires wrote:
         | That's one thing to see from all of this, but another that
         | shouldn't be ignored is when cash is cheap in an economy people
         | engage in businesses that are not otherwise viable, which leads
         | to asset bubbles among other things.
        
         | orangepurple wrote:
         | 2.8m new businesses were born but how many had revenue over
         | $50?
         | 
         | Probably only tens or hundreds of thousands
        
           | newsclues wrote:
           | Lots of new businesses are MLM, or dependant on government
           | funding without any plans for sustainable business
        
             | chrsig wrote:
             | I mean...lots of businesses in tech are dependent on VC
             | funding without any plans for sustainable business.
        
               | stanfordkid wrote:
               | pretty false... a lot may stay dependent, but all need to
               | present plausible plans for generating revenue.
        
         | bricemo wrote:
         | This is the opposite of what the article is saying. The economy
         | was getting scary so people headed out on their own. Did you
         | mean to say "when people have _nothing_ to fall back on"?
        
           | cheriot wrote:
           | I mean the extended unemployment and stimulus checks gave a
           | some people room to try new things. A lot of people
           | struggled, but there's a reason some are reluctant to return
           | to their shitty old jobs.
        
             | hirako2000 wrote:
             | How much was the stimulus check for an average income
             | employee ?
        
               | NationalPark wrote:
               | The median US income is about $30k, so most people were
               | eligible for some if not all the money. But everyone
               | (that was laid off) was eligible for the $600 per week
               | unemployment benefit, and the expanded child tax credit
               | also provided a lot of cash. Child poverty in the US was
               | cut in half by some metrics over the last year - these
               | were very impactful programs for most people.
        
           | cehrlich wrote:
           | People who have a lot can afford to gamble.
           | 
           | People who have a little can't afford to gamble.
           | 
           | People who have nothing can't afford not to gamble.
        
             | zpeti wrote:
             | So why are the majority of entrepreneurs in their 20s? Why
             | doesn't the rate of entrepreneurship increase with age?
        
               | EliRivers wrote:
               | _Why doesn 't the rate of entrepreneurship increase with
               | age?_
               | 
               | I thought it DID increase with age. A quick search
               | suggests that to be the case, but I stand by to be
               | corrected.
               | 
               | https://www.statista.com/statistics/693467/rate-of-new-
               | entre...
        
               | [deleted]
        
               | HPsquared wrote:
               | They're the ones with nothing, I guess.
        
               | input_sh wrote:
               | Cause it gets more difficult to gamble when you have a
               | child to support. You're more likely to look for a cushy
               | job when it's not just your life at stake.
        
               | andyferris wrote:
               | Kids means you are less free to gamble?
        
               | Frost1x wrote:
               | In my perspective, yes. A child has needs and there's a
               | baseline cost in resources to supply those needs, not
               | just material needs like food, clothing, shelter but more
               | integible needs like time with their parent. As a parent
               | you have responsibility to meet that baseline and should
               | do so with as little risk as possible to provide
               | stability for the child who is dependent on you and has
               | no other options.
               | 
               | If you can meet all their needs, then whatever you have
               | in excess certainly can be gambled if it can improve both
               | of your odds, but only beyond that baseline threshold.
               | That resource threshold for a parent is going to be
               | higher than for a single person in the same situation, so
               | you inherently have less resources to gamble than someone
               | without a kid.
               | 
               | I would consider less resources as being less free to
               | take unneeded risk, although it really just means you
               | have less you can risk not that you have less ability to
               | risk (unless of course you're already at or below that
               | child's baseline needs where you're making sacrifices of
               | your own needs for them). You could make further
               | sacrifices on your own needs to gamble if that doesn't
               | effect the child but chances are, it's going to effect
               | both of you.
               | 
               | Theres an absolute magnitude of wealth/resources one
               | needs to exceed before they start playing the capital
               | gamble gamble, at least when your risk has significant
               | effects on someone else, _especially your own child_.
        
               | panxyh wrote:
               | Yes.
        
               | [deleted]
        
               | dr_dshiv wrote:
               | "2018 research published in the Harvard Business Review
               | found that the average age at which a successful founder
               | started their company is 45."
               | 
               | https://www.cnbc.com/2021/05/27/super-founders-median-
               | age-of...
        
               | ashtonkem wrote:
               | "Successful" is quite the qualifier. Are more 45 year
               | olds starting businesses, or are they more just more
               | effective when they do it?
        
           | baybal2 wrote:
           | > Did you mean to say "when people have nothing to fall back
           | on"?
           | 
           | This is better than sitting doing nothing, starving, and
           | waiting for a handout to come, as happened in many, many
           | countries.
           | 
           | My strongest belief is that America needs an economic shock
           | therapy, to spring out of economic lethargy.
           | 
           | Lets face it. America is no longer the financial superpower.
           | China is currently world biggest foreign investor, and
           | creditor, and has banks that make Morgan's balance sheet look
           | like pocket change.
           | 
           | Betting on banks to lead America's return to prominence is
           | futile. It's akin to trying to wing a card game against a
           | professional card trickster who lives off ripping off
           | casinos.
           | 
           | Nor is the dream of service the dream of "service economy"
           | feeding much of the country materialised. You can't earn much
           | FX selling McKinsey consultants, nor are they are much needed
           | around the world, because the world doesn't have American
           | problems.
        
             | reducesuffering wrote:
             | You're exaggerating the bank size difference, ICBC is only
             | 25% larger in assets.
             | 
             | If you meant to convey all Chinese banks against just JPM,
             | sure, but that's a silly comparison because there are many
             | more US banks that when also compared in aggregate the %
             | difference is still roughly the same.[0]
             | 
             | [0]https://en.wikipedia.org/wiki/List_of_largest_banks
        
             | ak217 wrote:
             | > America needs an economic shock therapy
             | 
             | It's hard to overstate just how bad the track record of
             | "economic shock therapy" strategies is. Tens of millions of
             | people have died, and hundreds of millions more lost their
             | basic freedoms, because leaders thought they could "shock
             | therapy" their way out of economic problems.
        
             | roenxi wrote:
             | > My strongest belief is that America needs an economic
             | shock therapy...
             | 
             | There is a strand of thinking that turns up sometimes,
             | something like "they will realise their choices are making
             | things worse, then make different choices!". I have not
             | seen that work out well very often. People usually persist
             | in their mistakes with little heed for the results.
             | 
             | The correct approach is almost always to move directly in a
             | better direction.
        
               | HPsquared wrote:
               | It's often the case that reformers (of anything, not just
               | government) lack an understanding of _why_ people are
               | making choices that appear sub-optimal. They make or
               | encourage changes to the visible things, without fixing
               | the underlying hidden causes. Such changes are usually
               | unsustainable.
        
             | otikik wrote:
             | What America needs is the rich stopping buying politicians
             | and gaslighting other Americans, and start paying more
             | taxes.
        
               | ipatec wrote:
               | why pay more taxes when there's no accountability and
               | responsibility regarding spending? spending needs to get
               | under control before raising taxes is even a thing.
        
               | syshum wrote:
               | Too many people, especially high income software dev's,
               | that government can not spend enough money. So to them
               | them the spending is not out of control at all, they want
               | the 3, 4, 8 trillion spending because they have bought
               | into the government-side economic model that inflation is
               | good, government spending is good, and the "evil rich"
               | (who if you ask them is always someone that makes more
               | than them. They are not "the rich" it is the others....)
               | needs to just pay "their fair share"
               | 
               | of course they will not define what what "fair share" is,
               | just that is "more than they are paying now" however much
               | that is...
               | 
               | I firmly believe even if we had a 110% tax rate it would
               | not be "enough" for some of these people
        
               | otikik wrote:
               | You are confused because the word "rich" has two
               | meanings. Agreed, a lot of devs are "rich", compared to
               | the average citizen. But the problem is not "they
               | slightly more than me and they are bad because I'm
               | envious". It's "they make so much money that they are
               | writing their own laws with it, and they're killing my
               | country and my planet in the process". That is a
               | different kind of "rich". It's "I can buy a full news
               | studio if I want"-rich.
               | 
               | That second class is who the people are referring to when
               | they say "the rich".
               | 
               | And most of them are paying much less taxes over their
               | income than you or I, in percentage. They are so wealthy
               | that they can afford to pay full teams of people who
               | specialize in tax evading, and that costs them 1% of
               | their income, but then they avoid paying taxes on the
               | rest.
               | 
               | The usual "fair share" tax is a gradual tax. For example.
               | 10% for the first $10000 earned. 15% for the next $20000.
               | And so on. Such a tax can never reach 110%, by
               | definition. It cuts a dev salary by 40% or even 50%. For
               | one of these rich people, it can go to 70% or 80%, but it
               | would be orders of magnitude more, in absolute numbers.
               | But as I said, none of them pays that. They'd rather
               | provoke a war than pay that.
               | 
               | And then make you pay for it.
        
               | defterGoose wrote:
               | Do you agree that "getting the money out of politics"
               | might help your accountability gripe?
        
               | robertlagrant wrote:
               | The big money (and thus influence) in politics is in the
               | spending of it, not the salaries/donations. And politics
               | without that money is pointless.
        
               | nescioquid wrote:
               | When you raise money from donors to win election to an
               | office, those donors effectively become your
               | constituency, rather than the people living in your state
               | or district. Those donors will also offer you strangely
               | sumptuous speaking fees or a lucrative lobbying position
               | after you leave office.
               | 
               | If politicians' incentives can be aligned with their
               | constitutional constituencies (not donors), they can make
               | decisions that are actually in the best interest of those
               | they represent, rather than the highest bidder.
               | 
               | Are you saying it is simply having some power over the
               | budget that corrupts politicians, and not what they have
               | to do in order to obtain that power that corrupts them?
        
               | newswasboring wrote:
               | You really think rich people will suddenly start paying
               | taxes because government is more efficient? I don't think
               | that is their gripe. If that was the case thet would not
               | be lobbying for complex tax codes which exempt yachts.
        
               | robertlagrant wrote:
               | > You really think rich people will suddenly start paying
               | taxes because government is more efficient?
               | 
               | Erm. I didn't really say anything to do with that.
        
               | imtringued wrote:
               | A lot of the "spending" was used for tax cuts instead of
               | infrastructure. It's kind of funny how Trump burned huge
               | holes into the state budget and yet it's the
               | infrastructure bill that is going to ruin everything.
        
               | verall wrote:
               | Because right now the middle class is paying the bill and
               | the working class is getting abused. The ownership class
               | just skates on, doing less to justify their existence
               | every year.
               | 
               | Or do you feel like a billionaire space race is a good
               | use of society's efforts?
        
             | KarlKemp wrote:
             | Services and manufacturing are fungible and the rest of
             | your tough guy act is even less convincing.
             | 
             | Bill Gates, Zuckerberg, and Elon Musk all came from at
             | least upper-middle class background. None of them was ever
             | at risk of starvation.
             | 
             | The carrot-and-stick approach to motivation works-in an
             | extremely small band of human experience. But as it works
             | in that band, which is the lower middle class, it draws
             | people in from both sides: those richer ease up a bit,
             | those immediately below put in an extra hour. That's why
             | it's sort of the default experience. It's also a "winnable
             | struggle" so it makes for good stories and is
             | overrepresented in film and literature.
             | 
             | But, once you leave that narrow band, other forces are
             | clearly at work. If inflicting pain on homeless people
             | worked to motivate them to successfully get off the
             | streets, there wouldn't be any homeless people. Because
             | life on the streets sucks. If you think they are "lazy",
             | have you ever toyed with the idea of just quitting and
             | checking out an underpass with a good view? No...? But you
             | do have a vague idea what laziness is? So then: that's not
             | it.
        
               | zpeti wrote:
               | How about Brian Chesky (son of social workers), Marc
               | Andreesen (son of seed factory worker), or just Jeff
               | bezos with a pretty shitty family background:
               | 
               | At the time of Bezos' birth, his mother was a 17-year-old
               | high school student and his father was 19 years old.[18]
               | After completing high school despite challenging
               | conditions, Jacklyn attended night school while bringing
               | Bezos along as a baby.[19] After his parents divorced,
               | his mother married Cuban immigrant Miguel "Mike" Bezos in
               | April 1968.[20] Shortly after the wedding, Mike adopted
               | four-year-old Bezos, whose surname was then legally
               | changed from Jorgensen to Bezos.[21]
               | https://en.wikipedia.org/wiki/Jeff_Bezos
               | 
               | We can all pick examples to fit our narratives
        
               | [deleted]
        
               | fragmede wrote:
               | How does Bezos' background disprove the notion that
               | homeless people aren't homeless because they're lazy?
               | That if only we made life just a little more horrible for
               | them, that they would realize being homeless sucks, stop
               | being lazy, and just go get one of those job things, and
               | then pull themselves up by their bootstraps. (A feat
               | which is literally impossible, mind you)
        
               | robertlagrant wrote:
               | I think the examples are to counter the cherry-picking of
               | entrepreneurs who are from middle class backgrounds.
        
               | lotsofpulp wrote:
               | The salient point is that certain class of people are
               | likelier take risks because failing will not leave their
               | children hungry. Obviously, poor people can also take
               | risks, but the ones that fail do not get to try again and
               | you do not hear about them again.
               | 
               | Bezos is a ridiculous example to use anyway, as he
               | obviously made bank working in finance before he took
               | risks on Amazon such that he was never risking being
               | homeless.
               | 
               | Just the simple fact that your parents own a home where
               | you are welcome to live can be enough for you to be able
               | to take risks. And Zuckerberg and Gates and others were
               | not middle class, they were at least upper middle and I
               | would bet their parents (dentists and prominent lawyers)
               | were already above 90th percentile in wealth.
               | 
               | I love when people tell me examples of extremely poor
               | people taking risks and hitting it big, and at the same
               | time lament how people irresponsibly have children and
               | debt they could not handle. Celebrate them when the
               | gamble pays off, but shit on them when it does not.
        
               | robertlagrant wrote:
               | > I love when people tell me examples of extremely poor
               | people taking risks and hitting it big, and at the same
               | time lament how people irresponsibly have children and
               | debt they could not handle. Celebrate them when the
               | gamble pays off, but shit on them when it does not.
               | 
               | How often does this happen? Who says those two things
               | simultaneously?
        
               | lotsofpulp wrote:
               | Maybe not simultaneously, but I grew up in an immigrant
               | family where everyone's parents had farmland and houses
               | in the original country. Almost all the families and
               | cousins are pretty successful business/real estate
               | owners/operators, who champion themselves, while ignoring
               | the fact that they all had houses and farmland to go back
               | to in their original country in case they failed.
               | 
               | But many, especially the older generations, also like to
               | complain about people not striking it out on their own as
               | a causal factor for why they remain poor.
               | 
               | It is a popular trope in culture too. It makes people
               | feel good about themselves if they can forget about the
               | shoulders they stood on, and for those who do not have
               | shoulders to stand on, it gives them hope.
        
               | [deleted]
        
               | TheOtherHobbes wrote:
               | We can indeed. You left out this part:
               | 
               | After Mike had received his degree from the University of
               | New Mexico, the family moved to Houston, Texas, so that
               | he could begin working as an engineer for Exxon.[22] Jeff
               | Bezos attended River Oaks Elementary School in Houston
               | from fourth to sixth grade.[23] Bezos' maternal
               | grandfather was Lawrence Preston Gise, a regional
               | director of the U.S. Atomic Energy Commission (AEC) in
               | Albuquerque.[24] Gise retired early to his family's ranch
               | near Cotulla, Texas, where Bezos would spend many summers
               | in his youth.[25]
               | 
               | [...] He accepted an estimated $300,000 from his parents
               | and invested in Amazon.[47][51][52] He warned many early
               | investors that there was a 70% chance that Amazon would
               | fail or go bankrupt.
               | 
               | The one thing many CEOs have in common is early access to
               | resources and tinkering opportunities which aren't
               | available to most of the population.
               | 
               | Which is the exact opposite of your point.
        
         | [deleted]
        
         | tppiotrowski wrote:
         | Does anyone know if applying for PPP loans played a part in
         | this? Anecdotally saw some people register businesses for the
         | sole purpose of collecting PPP but am not sure if they were
         | successful.
         | 
         | Edit: I appear to be wrong here. After some Googling it appears
         | that PPP loan was based on previous years tax returns to I
         | don't think you could collect PPP the first year to establish a
         | business.
        
           | disillusioned wrote:
           | Not only that but technically you were only able to apply for
           | PPP if your company existed before February 15th, 2020, to
           | explicitly prevent this sort of behavior.
        
           | whateveracct wrote:
           | How would that work? Collect PPP and use it to pay yourself
           | salary? I thought you had to show the people were already
           | employed and paid when you apply. I'm sure it was a mess
           | though.
        
             | tppiotrowski wrote:
             | Sole proprietors were eligible for PPP to cover lost income
             | but it was based on previous years Schedule C so first year
             | business owners likely couldn't apply
        
             | fragmede wrote:
             | Your hypothetical scammer just got $20,000 deposited into
             | their bank account. I don't think adhering to the letter of
             | the loan, and repaying it, is a huge concern of theirs.
             | Withdraw it all, and go live somewhere cheap for a couple
             | years.
        
             | syshum wrote:
             | That is if you assume people played by the rules, and there
             | was actually validation controls in place
             | 
             | from what I have seen of the PPP and other covid programs
             | the concern was getting the money out as fast as possible
             | not validating claims. There was a SHIT ton of fraud...
             | most of which will never be discovered
        
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       (page generated 2021-09-16 23:03 UTC)