Posts tagged ‘inequality’

Facebook goes even more pro-bot with change in group policy


Why are there antitrust or monopoly laws? Why is the usual interpretation of the Chicago School really, really bad for the United States? Umair Haque’s latest post spells it out pretty well, in my opinion.
   Just an idea: let’s not import any of their dangerous ideas into our society, or allow their ever-growing giants to get more of a foothold in our country (and not pay tax here either). Because we have a tendency to kiss their arses sometimes. Just ask Kim Dotcom. Things like their legal precedents are still persuasive here, and with how different their priorities are, we need to place even less weight on them. Let’s not forget the rules we play by here, and that means whomever enters this market has to play by the same.

Speaking of daft decisions on the other side of the Pacific by dishonest parties who have got too big due to what amounts to lawlessness, Facebook has removed the requirement for users to answer questions when they join a public group. These questions were our way of safeguarding the one public group I still look after there, and over 99 per cent of users (no exaggeration; if anything, an underestimate) who attempted to join were bots. I define bots as including any legitimate account running bot software, which I thought was against Facebook’s T&Cs, but not in practice. I still report a lot of them, though unlike 2014 I won’t do them all. I just can’t report thousands that I might see on a single visit.
   I can imagine why Facebook has done this. This way Facebook hides the number of bots from group moderators (as if we hadn’t known of their problems for the good part of a decade), and protects the bots as they continue their activity across the platform. This will encourage even more bots, and as I identified in an earlier post, I see more bots than humans these days on there (and I’m not even a regular user).
   I knew they were liars and shysters so I imagine this is in keeping with that. Cover up just how badly compromised the platform is by bots.
   I haven’t seen much on this change in Facebook group policy, but as changes go, this has to be the most anti-human, pro-bot move they have made in 17 years. No one ever demanded more rights for bots, but here’s Facebook giving it to them.

Tags: , , , , , , , , , , , , ,
Posted in business, culture, internet, New Zealand, politics, technology, USA | 2 Comments »

Capitalism falls down when it’s rigged


Martin Wolf, writing in the Financial Times, touches on a few points that resonate with my readings over the years.
   He believes capitalism, as a system, is not a bad one, but it is bad when it is ‘rigged’; and that Aristotle was indeed right (as history has since proved) that a sizeable middle class is necessary for the functioning of a democracy.
   We know that the US, for instance, doesn’t really do much about monopolies, having redefined them since the 1980s as essentially OK if no one gets charged more. Hence, Wolf, citing Prof Thomas Philippon’s The Great Reversal, notes that the spikes in M&A activity in the US has weakened competition. I should note that this isn’t the province of “the right”—Philippon also shows that M&A activity reduced under Nixon.
   I alluded to the lack of competition driving down innovation, but Wolf adds that it has driven up prices (so much for the US’s stance, since people are being charged more), and resulted in lower investment and lower productivity growth.
   In line with some of my recent posts, Wolf says, ‘In the past decade, Amazon, Apple, Facebook, Google, and Microsoft combined have made over 400 acquisitions globally. Dominant companies should not be given a free hand to buy potential rivals. Such market and political power is unacceptable. A refurbishment of competition policy should start from the assumption that mergers and acquisitions need to be properly justified.’
   History shows us that Big Tech’s acquisitions have not been healthy to consumers, especially on the privacy front; they colluded to suppress wages before getting busted. In a serious case, according to one company, Google itself commits outright intellectual property theft: ‘Google would solicit a party to share with it highly confidential trade secrets under a non-disclosure agreement, conduct negotiations with the party, then terminate negotiations with the party professing a lack of interest in the party’s technology, followed by the unlawful use of the party’s trade secrets in its business.’ (The case, Attia v. Google, is ongoing, I believe.) Their own Federal Trade Commission said Google ‘used anticompetitive tactics and abused its monopoly power in ways that harmed Internet users and rivals,’ quoting the Murdoch Press. We see many undesirable patterns with other firms there exercising monopoly powers, some of which I’ve detailed on this blog, and so far, only Europe has had the cohones to slap Google with massive fines (in the milliards, since 2017), though other jurisdictions have begun to investigate.
   As New Zealand seeks to reexamine its Commerce Act, we need to ensure that we don’t merely parrot the US and UK approach.
   Wolf also notes that inequality ‘undermines social mobility; weakens aggregate demand and slows economic growth.’ The central point I’ve made before on Twitter: why would I want people to do poorly when those same people are potentially my customers? It seems to be good capitalism to ensure there’s a healthy base of consumers.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in business, internet, politics, USA | No Comments »