Saturday, July 03, 2010

Ya gotta read this

Errol Morris' recent 5-part series on the Anosognosic’s Dilemma (published in the NY Times) is one of the most mind-blowing things I've read in a long time.  From the article:

Wheeler had walked into two Pittsburgh banks and attempted to rob them in broad daylight.  What made the case peculiar is that he made no visible attempt at disguise.  The surveillance tapes were key to his arrest.  There he is with a gun, standing in front of a teller demanding money.  Yet, when arrested, Wheeler was completely disbelieving.  “But I wore the juice,” he said.  Apparently, he was under the deeply misguided impression that rubbing one’s face with lemon juice rendered it invisible to video cameras.

What Morris does so brilliantly in the series is to explore the ways in which we ALL engage in acts of self deception -- in effect convincing ourselves that we are 'wearing the juice' -- even when no one else is buying our acts of self deception.  Turns out there is an entire name for this phenomenon: The Dunning-Kruger Effect.

As Dunning read through the article, a thought washed over him, an epiphany.  If Wheeler was too stupid to be a bank robber, perhaps he was also too stupid to know that he was too stupid to be a bank robber — that is, his stupidity protected him from an awareness of his own stupidity.

Dunning wondered whether it was possible to measure one’s self-assessed level of competence against something a little more objective — say, actual competence.  Within weeks, he and his graduate student, Justin Kruger, had organized a program of research.  Their paper, “Unskilled and Unaware of It: How Difficulties of Recognizing One’s Own Incompetence Lead to Inflated Self-assessments,” was published in 1999.[3]

Dunning and Kruger argued in their paper, “When people are incompetent in the strategies they adopt to achieve success and satisfaction, they suffer a dual burden: Not only do they reach erroneous conclusions and make unfortunate choices, but their incompetence robs them of the ability to realize it.  Instead, like Mr. Wheeler, they are left with the erroneous impression they are doing just fine.”

It became known as the Dunning-Kruger Effect — our incompetence masks our ability to recognize our incompetence. 

I highly recommend reading the whole series.  I think it has the potential to change how we look at the world, ourselves, and each other. 

Tuesday, June 22, 2010

stuff they didn't teach you in school

David Wong, the Senior Editor of Cracked.com has a new post titled: The 10 Most Important Things They Didn't Teach You In School.  As you would expect, it's funny and racy and irreverent. But it's also surprisingly thoughtful.  In fact, the #1 most important thing they didn't teach you in school is so good I want to quote it here:

#1. Social Studies: Life is Hard and You Will Die, Get Over It


We're not foolish enough to think one semester of this course can deprogram years of Hollywood bullshit. That's why we make this a daily class, that continues from K through 12.

Many of you will get very depressed in your 20s, and some of you will stay that way the rest of your lives. Over the years your garage band will break up, you career dream will fall through, a girl will break your heart, you'll be unhappy with your body, you'll lose your parents, your favorite pet will die, you will endure at least one very terrible injury that requires hospitalization and breaks new boundaries for what kind of pain you thought was possible.

And your childhood memories will be exploited to buy vast amounts of cocaine. Deal with it.

The reason why this will lead to depression, where it may not have done so for an equivalent person 200 years ago, is because you were raised on illogical stories where things always work out for the main character for utterly arbitrary reasons. Han Solo can shoot straight, but none of the bad guys can--even though they train more. John McClane beats the terrorists because he has toughness and perseverance--something the bad guys lack, even though they should be equally desperate. If a guy and a girl are right for each other, they always wind up together, careers and geography and personal hang-ups be damned.

Here's the problem: these fantasies were created by adults, as a means of escape from the real world. You, however, have been watching them since you were five--for most of us these were our first impressions of how the adult world works, even if on a subconscious level. You had no context to realize they were bullshit. It sounds frivolous, but that doesn't change the fact that some of you reading this will not survive the long process of learning how different the real world is.

If it helps, try to remember that you're still one of the one percent of humanity that was born in a time and place where there is such a thing as anesthesia.

Chapters Include:
I. You Can Die at Any Moment, Get Over It;
II. Required Reading: The Road, by Cormac McCarthy;
III. Roleplay Exercise: Various Scenes from The Road, by Cormac McCarthy;
IV. Yes, It Takes 10,000 Hours to Get Really Good at Something, But At Least You're Not Scavenging Through a Post-Apocalyptic Wasteland.

Definitely check out the whole article for a few good laughs and few insights that will make you nod in appreciation.

Wednesday, June 16, 2010

the roots of power

Three really insightful paragraphs from the classic 1977 book, Poor People's Movements:

Common sense and historical experience combine to suggest a simple but compelling view of the roots of power in any society.  Crudely but clearly stated, those who control the means of physical coercion, and those who control the means of producing wealth, have power over those who do not.  This much is true whether the means of coercion consists in the primitive force of a warrior caste or the technological force of a modern army.  And it is true whether the control of production consists in control by priests of the mysteries of the calendar on which agriculture depends, or control by financiers of the large-scale capital on which industrial production depends. Since coercive force can be used to gain control of the means of producing wealth, and since control of wealth can be used to gain coercive force, those two sources of power tend over time to be drawn together within one ruling class.

Common sense and historical experience also combine to suggest that these sources of power are protected and enlarged by the use of that power not only to control the actions of men and women, but also to control their beliefs.  What some call superstructure, and what others call culture, includes an elaborate system of beliefs and ritual behaviors which defines for people what is right and what is wrong and why; what is possible and what is impossible; and the behavioral imperatives that follow from these beliefs.  Because this superstructure of beliefs and rituals is evolved in the context of unequal power, it is inevitable that beliefs and rituals reinforce inequality, by rendering the powerful divine and the challengers evil.  Thus the class struggles that might otherwise be inevitable in sharply unequal societies ordinarily do not seem either possible or right from the perspective of those who live within the structure of belief and ritual fashioned by those societies.  People whose only possible recourse in struggle is to defy the beliefs and rituals laid down by their rulers ordinarily do not.

What common sense and historical experience suggest has been true of many society is no less true of modern capitalist societies, the United States among them.  Power is rooted in the control of coercive force and in the control of the means of production.  However, in capitalist societies this reality is not legitimated by rendering the powerful divine, but by obscuring their existence....

--Frances Fox Piven and Richard A. Cloward, Poor People's Movements: Why They Success, How they Fail, p. 1-2.

For more on the way that culture normalizes and obscures the true workings of society, please see my earlier posts on Freire. For a very different look at the role of culture and what it can mean to suddenly see and understand the culture all around us, check out this brilliant speech by the late novelist David Foster Wallace titled, This is Water.

Monday, June 14, 2010

Are markets actually calling on governments to raise taxes?

It seems to me that the markets are actually calling for higher taxes.  Because look -- the markets seem to want deficit reduction.  Got it.  But if you do deficit reduction through spending cuts you kill the recovery and send the economy into a double dip recession.  So the only way to get deficit reduction plus growth is through increasing taxes.  For Greece, or the UK, or Germany, or the U.S. to cut deficits through cutting spending right now would be complete insanity. 

Monday, June 07, 2010

This is the "NAFTA and WTO Recession" and it's not gonna end until trade policy changes

If we had the NAFTA debate to do all over again, I think the soundbite that could have won it for us would have been this:

NAFTA would make it illegal to do any manufacturing in this country. 

It's exactly the sort of cut-to-the-marrow soundbite that the right loves to use to polarize debate -- to say 'you're either with us or you are America-hating scum.'  And unlike conservative talking points this soundbite has the added benefit of being true.

Here's why it's true:

For-profit corporations in this country are required by law to maximize profits for shareholders.  That's what it means to be a for-profit company.  So if a U.S. company can have its product manufactured here for $17 dollars an hour or manufactured in another country for $1 an hour -- the U.S. company is required, through its legal obligation to shareholders, to offshore the production to the lowest cost manufacturing center. 

But here's the thing.  We very well may get to have the NAFTA and WTO debates all over again -- because the recession we are going through right now is the direct result of NAFTA & WTO.  And the recession is not going to end (in any meaningful lasting way) until trade policy changes. 

Both of these trade agreements were based on absolute intellectual horseshit.  The idea was that yes, the U.S. would end up sending a lot of manufacturing jobs to lower cost production countries. BUT! the argument went, everything would be okay because U.S. workers would still be the ones designing and managing and marketing those products -- and those management jobs would grow and would be far better jobs than the lousy manufacturing jobs they replaced. 

Here's why that's complete nonsense: 

Under currently international trade agreements, Hewlett Packard could offshore every single job in the company -- manufacturing, design, marketing, legal, etc. to India -- leaving one single job left in the U.S. for the CEO (if he chose to live in Malibu or something).  And we can't all be the CEO of HP.  The U.S. economy needs at least 150 million jobs in order for our people to survive. We need a natural diversity of different types of job to match the natural diversity in our population -- namely we need an economy such that anyone with a strong back and a good attitude can make a middle class standard of living in this country -- and that's what we had before NAFTA & the WTO. 

So the prosperity that we saw over the last 20 years was an illusion.  Suddenly, TVs and electronics and clothes got really really cheap.  And we felt wealthy because we could buy more of them.  But all the while, the core of our economy was being hollowed out as manufacturing jobs were being sent overseas.  Specifically, that cheap big screen TV at Best Buy was only cheap because it came at the expense of a unionized manufacturing job in the U.S.  The $500 you saved on the TV came out of the salary of an American worker.  And now 20 years later, SURPRISE! all the manufacturing jobs are gone and they aren't coming back.  An entire generation of American men with only a high school education has been sacrificed to the beautiful equations of Milton Friedman that turn out, in the real world, to only benefit his corporatist friends.  And then endless cheap credit kept the illusion of prosperity going, even as we had run out of jobs and the salaries that went with them.  But now that bubble has popped and all of the gauges are showing empty, empty, empty. 

As the Obama administration strives to jump start the economy -- there is quite literally nowhere to pump the stimulus money.  You can't pump it into traditional manufacturing -- because those jobs are gone.  So they try to pump it into green manufacturing and energy efficiency -- which is great.  Until you realize that U.S. corporations are still required by law to maximize profits for their shareholders and Chinese manufacturers can make anything we can make here -- and only pay their workers $1 an hour (sometimes less).  So then you realize that the hundreds of billions of dollars we are pumping into green manufacturing -- is really just the U.S. government funding the R&D that is going to make Chinese manufacturers rich. 

So Obama and his boys Tim Geithner & Larry Summers then try to reinflate the housing bubble through tax credits and guarantees for big banks to take big risks again -- because really, other than financial ponzi schemes, we don't really make anything in this country anymore.  But how long is that papering over of the problem gonna last?  Until the mid-terms in November?  Until the 2012 presidential election at the latest.  But then the clock runs out again. 

So when the double dip recession comes and the economy completely flatlines because we don't have any manufacturing jobs in this country (and the white collar research and design jobs are not nearly enough to make up for the jobs that are lost) -- I propose that we start the debate about rebuilding our economy by canceling NAFTA and dismantling the WTO.

Quite literally the kids in black were correct and the white (University of Chicago) guys with Ph.D's were terribly, catastrophically wrong. 


Tuesday, May 25, 2010

communist and corporatist kitsch

The other day, I had a cup of "The People's Green Tea" made by the The Republic of Tea (those nice cylindrical tins with the paper wrappers you can get at Whole Foods).  The branding of the tea seems intentionally to invoke the People's Republic of China and Maoist simplicity.  And I got to thinking -- communism and communist kitsch is irresistible to corporate marketers because communism is fundamentally aspirational and communal.  Marketers know that people want not just a product but an experience, a brand that appeals to their aspirations in life.  Furthermore, people want connection with others.  And communism supplies a readily recognizable utopian ideal and communal emphasis.  Which is kinda fascinating when you think about it -- that both communism and corporatism are appeal to the same fundamental human desires for transcendence and connection. 

Sunday, May 16, 2010

the measure of a relationship

For me, the measure of any relationship -- romantic, friendship, work, family -- is that when we have a disagreement, can we talk about it thoroughly and openly enough such that we are able to reach a higher synthesis?  The ideal synthesis speaks to the relative truth of both of our positions while transcending our prior partial views on the matter.  I think we've all had relationships where people come to loggerheads and have to "agree to disagree" (permanent stalemate) or find ways to water each other down through some sort of lowest common denominator compromise (where neither person gets what he or she wants).  But those sorts of compromises, don't strike me as sustainable (I suppose they are sustainable in the very very short term but they fall apart in the short, medium, and long term). 

For me some of the greatest joys in life come from talking through something in a way that leads to an "aha moment" -- the intimacy of discovering a new higher truth bigger than the one we held before.  I've had jobs where my boss and I traded drafts (of grant proposals, press releases, speeches, etc.) back and forth -- and each person's ideas sparked a new burst of creativity and discovery in the other.  And I've also had jobs where the boss just had not done his/her (personal psychological) work, wasn't a great writer, or was just a dick -- where each disagreement led to stalemate or a series of lowest common denominator compromises until the draft was incoherent.  The same thing happens in friendships, intimate relationships, family relationships, etc. -- some are characterized by heart dialogue and higher synthesis and some are characterized by endless conflict and unresolved disagreement.  The higher synthesis relationships make me feel happy to be alive while it seems to me that the endlessly conflicted ones are not really worth spending much effort on because that relationship is not gonna be sustainable for any length of time anyway.

Over time, you can tell pretty quickly who you can riff and improvise with and who you can't.  And in the very best relationships, you are doing the dance of thesis, antithesis, synthesis all the time without a lot of conflict or disagreement because you've created enough space (trust + love + communication) for an ever-unfolding dialogue of exploration and discovery. 

I guess this makes me a Hegelian (thesis, antithesis, synthesis).  [And my boy Ken Wilber borrows this idea from Hegel and adopts it to Buddhism (even though I don't think it has anything to do with Buddhism -- the steps towards transcendence in Buddhism seem to go thesis, antithesis, nothingness, everythingness).]  But really it's Marx too -- Marx borrowed from Hegel, believing that the march of history consisted of thesis, antithesis, (higher) synthesis.

For me, one of the best resources for learning how to have the sort of dialogue that can lead to a higher synthesis is the book: Difficult Conversations: How to Discuss What Matters Most.

Wednesday, May 12, 2010

What if one could look up the credit score of every company -- just like they are able to look up the credit scores of customers?

All of us are walking around with a credit score hanging over our heads.  If you go to make any major purchase on credit -- a car or house -- even renting an apartment or applying for a credit card -- the lender will want to know your credit score.  A credit score is a measure of character -- it gives a numerical value for how trustworthy you are based solely on your past history.  It gives the lender a reasonable understanding of his/her/its risk and the likelihood that you will repay the loan.

Which I guess is fine as far as that goes.

But when I'm looking to buy a mutual fund, where is the credit score that tells me how trustworthy the financial services company is?  When I go to buy a car, where's the credit score that tells me how likely it is that company will follow through on its warranty?  When I buy a house, where is the credit score that tells me how trustworthy the builder is?  

See, the odd thing about our market economy is that it is completely asymmetrical.  Consumers, regular human beings, are all walking around with a number over our heads (instantly available online) that tells lenders exactly how much we're good for.  But there is no objective measure that tells us whether the company on the other side of the deal is trustworthy or not. In short, labor and consumers are graded, but in our capitalist system, capital itself never gets graded (which is how they are able to steal your 401(k), the U.S. Treasury, and the wealth of the entire planet...). 

That's really the problem with Wall Street right now.  There is no objective measure that tells us the credit score of Goldman Sachs, Bank of America, Morgan Stanley etc.  That's why Retail Investors are Fleeing the Stock Market and YTD Domestic Flows Into Stocks Are Negative. Indeed if these companies were given a credit score based on their past history -- no one would ever do business with them again because they are not creditworthy.  That's the crazy thing about the present political moment -- the U.S. and the E.U. are throwing trillions of dollars at companies that, if they were a person, would not qualify for even the most basic entry-level credit card. 

In some ways then, Yelp and Zagat's Guide and Consumer Reports and Edmunds Car Buyers Guides and even customer reviews on Amazon.com are an attempt by people to create a credit score for companies and products.  But it still seems to me that there is an ENORMOUS UNMET DEMAND for a single trustworthy measure of the creditworthiness of major corporations themselves (not a particular product that the company sells -- but the company itself).  And really, if we could build a system to score the trustworthiness of each corporation, it could become the basis for reregulation the economy --  requiring every company to live up to the highest standards of creditworthiness or lose their license to operate in our economy.

Update #1:  Branding is an attempt, by corporations, to finesse the issue of creditworthiness -- to create the impression and emotional sensation of trust, without any bona fide data to back it up.  In fact, branding is the opposite of creditworthiness in a way -- in human terms it's the equivalent of a person applying for a credit card saying, 'don't bother researching my credit history -- look at how pretty I am!'  Branding intentionally lights up the emotional parts of the brain associated with desire so that we will turn off the rational parts of the brain used to assess risk -- in order to sell products at a higher profit margin.  So at the core then of the capitalist system there is this disconnect (between the brand image and the actual product itself), this built in incentive to lie in order to generate ever higher profits.  Thus one of the key functions of the public sector is to reign in this impulse to lie that always appears in the marketplace.  That's the point of regulation, to correct for the defects that are an inherent part of a market economy.

Saturday, May 08, 2010

going to church vs. seeing a psychologist

Okay last post for the day...

A while back I spoke with a friend who used to be a church pastor but who now does one-on-one (psychological) counseling with people.  I asked her which one she preferred.  "Oh being a counselor is soooo much better than being a pastor!" she said. Surprised, I asked her why.  She explained that when people come to church, they are looking to sit back and be entertained.  When someone goes for counseling, they are looking to do work, they are looking to grow and change and become a better person. 

That conversation has really stuck with me because it rings true from my experience. 

And it got me wondering whether perhaps, the purpose of religion is NOT to help people become more ethical, but rather to make people feel righteous about stuff they are already doing (usually homophobia, male domination, reinforcing the status quo, etc.)

Because really when you think about it, religious people are some of the LEAST ethical people in society.  Ask any waitress in America about the horrible tips from people who come to brunch straight from church and you'll see what I'm talking about.  And people who really want to grow, who really want to challenge themselves, and who really want to change who they are to become better people -- almost always go see a counselor/therapist to help them get there.  It's really quite fascinating. 

Please boycott the American Cancer Society

Talk about being a card carrying member of the veal pen, Holy shit! 

This week, the White House released an advanced copy of a report from the President’s Cancer Panel.  It's surprisingly good.  Among the findings:

It calls on America to rethink the way we confront cancer, including much more rigorous regulation of chemicals. Traditionally, we reduce cancer risks through regular doctor visits, self-examinations and screenings such as mammograms. The President’s Cancer Panel suggests other eye-opening steps as well, such as giving preference to organic food, checking radon levels in the home and microwaving food in glass containers rather than plastic.

More importantly, the report suggests that the dangers of cancer from chemicals in the environment are a huge problem that deserves more attention.

“Only a few hundred of the more than 80,000 chemicals in use in the United States have been tested for safety,” the report says. It adds: “Many known or suspected carcinogens are completely unregulated.”

The President’s Cancer Panel report will give a boost to Senator Feinstein’s efforts. It may also help the prospects of the Safe Chemicals Act, backed by Senator Frank Lautenberg and several colleagues, to improve the safety of chemicals on the market.

Finally, finally(!) we have a rigorous scientific study that will get lots of attention and begin the process of regulating some of the 80,000 synthetic chemicals in our environment that are untested and unregulated -- and likely causing cancer in children and adults.

So what does the American Cancer Society do with this good news? In a statement this week they poured cold water all over it and said it went too far:

A dire government report on cancer risks from chemicals and other hazards in the environment has drawn criticism from the American Cancer Society, which says government experts are overstating their case. 

WTF!?  Complete and total insanity.  Or rather, this is what your brain looks like on corporatism. 

The American Cancer Society is one of the wealthiest non-profits in the world.  For every $1 spent on direct service, approximately $6.40 is spent on compensation and overhead.  Their board is chock full of wealthy corporatists and pharmaceutical executives who don't make money on prevention -- they only make money on new drugs to treat cancer.  So faced with the opportunity to REDUCE cancer by regulating synthetic chemicals in the environment that may cause cancer, the American Cancer Society says "no thanks."


That's cool.  Fuck 'em.  If the American Cancer Society won't step up to prevent and reduce toxins in the environment (for fear it would hurt the interests of their corporate board members) then I say we boycott their ass. 

So please don't give money to the American Cancer Society -- no matter how nice those return address labels they send you for free in the mail might be.  Thanks!  

Also if the American Cancer Society wants to be the PR firm for wealth industrialists (read: toxic polluters) and pharmaceutical companies, that's fine.  But they should have their 501(c)(3) non-profit status revoked as a result.   


Update #1:  Yeah, yeah I know that the American Cancer Society statement was kinda nuanced and said a few nice things about regulation as well.  But they also knew full well that they are an issue validator (meaning that people look to them to lead on the issue of cancer -- and if they don't choose to lead on a particular fight, no one else is going to get out further in front than they are. Issue validators, because they are closer to the issue than the general public, give the signal to the wider community when something is worth fighting and when it is not).  And when Dr. Michael Thun, an epidemiologist from the cancer society, posts a statement calling the report unbalanced -- they knew full well how it would be used in the debate to knock down attempts at regulation.  It's really quite shameful. 

If you want to reduce cancer causing toxic chemicals in the environment, please donate to the Environmental Working Group instead.

Update #2.  Apparently, this is not the first time that the American Cancer Society has gone out of its way to oppose efforts to alert the public about environmental causes of cancer.  From the May 10, 2010 edition of the New York Times:

New York unveiled what it billed as the nation’s first comprehensive statewide cancer map, which became available Monday on the Web site of the State Department of Health. The creation of the map was opposed by the American Cancer Society when it was proposed two years ago...

It's really hard to overstate how completely vile it is for a group called the American Cancer Society to go out of its way to shield industrial polluters from scrutiny, so that the the pharmaceutical companies on their board can make more money.