Monday, October 31, 2022

Review of The Secret of Our Success: How Culture Is Driving Human Evolution, Domesticating Our Species, and Making Us Smarter by Joseph Henrich

This review was written by Eugene Kernes   

Book can be found in: 
Genre = Sociology
Book Club Event = Book List (12/10/2022)
Intriguing Connections = 1) To Cooperate Or To Defect?, 2) How to Teach? How to Learn?

Watch Short Review

Excerpts

“Beyond status, culture transformed the environments faced by our genes by generating social norms.  Norms influence a vast range of human action, including ancient and fundamentally important domains such as kin relations, mating, food sharing, parenting, and reciprocity.  Over our evolutionary history, norm violation such as ignoring a food taboo, botching a ritual, or failing to give one’s in-laws their due from one’s hunting successes meant reputational damage, gossip, and a consequent loss of marriage opportunities and allies.  Repeated norm violations sometimes provoked ostracism or even execution at the hands of one’s community.  Thus, cultural evolution initiated a process of self-domestication, driving genetic evolution to make us prosocial, docile, rule followers who expect a world governed by social norms monitored and enforced by communities.” – Joseph Henrich, Chapter 1: A Puzzling Primate, Page 23


“Cultural learning refers to a more sophisticated subclass of social learning abilities in which individuals seek to acquire information from others, often by making inferences about their preferences, goals, beliefs, or strategies and/or by copying their actions or motor patters.” – Joseph Henrich, Chapter 2: It’s Not Our Intelligence, Page 31


“What these cases teach us is that humans survive neither by our instinctual abilities to find food and shelter, nor by our individual capacities to improvise solutions “on the fly” to local environmental challenges.  We can survive because, across generations, the selective processes of culture evolution have assembled packages of cultural adaptations – including tools, practices, and techniques – that cannot be devised in a few years, even by a group of highly motivated and cooperative individuals.  Moreover, the bearers of these cultural adaptations themselves often don’t understand much of how or why they work, beyond the understanding necessary for effectively using them.” – Joseph Henrich, Chapter 3: Lost European Explorers, Page 45


Review

Overview:

Culture is prepackaged information accessible to local individuals.  A package composed of knowledge, skills, habits, and values.  Cultural informational content has the ability to improve over generations, making culture adaptive.  Informational content that is learned from other people.  Culture enables a collective brain, rather than individual insight.  As members learn from each other, they do not need to start understanding ideas from nothing, but can proceed from the foundation culture has already enabled.  Success derived from faith in the already accumulated wisdom, rather than just intuition and personal experience.

Natural selection favored individuals who were better cultural learners, as they were able to access and utilize the ever-expanding body of adaptive information available.  The interactions between cultures and genes caused them to coevolve.  Cultural evolution led to the self-domestication of the human species as those who violated norms were punished, while those who complied with norms were rewarded.  Culture overrides many private self-interested decisions, with social self-interest.  Culture makes member behavior more predictable, which facilitates cooperation. 

 

Individual Knowledge Versus Culture:

Humans have adapted to deal with local environments using group intelligence.  Humans do not have instinctual ability or individual capacities to quickly adept to novel local environments.  There are dire consequences to putting humans into environments they do not know, for they will misapply their knowledge to wrong contexts.  Even with food preparations, taking unprepared food from different cultures causes problems, because transferring the raw food does not transfer the knowledge of how to appropriately prepare the food to make the food safe to eat. 

Humans have survived and thrived because of the process of cultural evolution, knowledge that has come in assembled packages of cultural adaptations.  Practices and beliefs acquired over previous generations.  Knowledge that cannot be devised within a few years by intelligent and cooperative individuals.  Not even the bearers of cultural adaptations understand how or why something works, as they only know what is needed to make effective use of them.  The process of learning and attending other members tends to be unconscious.  Knowledge as an unintended consequence of interactions between learning minds over time.

Survival is based on the inheritance of a vast body of knowledge from previous generations.  Information that is stored in daily routines, rituals, and beliefs.  Using information stored in the culture, facilitates development of complex knowledge that is designed to meet local challenges.  Social and generational development, rather than a product of any specific individual’s ingenuity in applying logical skills.  Cultural evolution is often smarter than the individuals.  Complex adaption emerged because natural selection favored individuals who have faith in their cultural inheritance.  Faith in accumulated wisdom from prior generations, rather than their own intuition and personal experience.   

Rather than thinking as individuals, culture enables a group’s collective brain.  The group’s collective brain is limited to the population size and the social interconnectedness.  Members loss or becoming disconnected reduces the transmission of cultural information, which can lead to loss of skill and complex technologies. 

Those copying the practices of highly skilled and knowledge expert, often do not become as skilled or knowledgeable as them.  As copies can be worse than the original, there can be generational information loss.  Cumulative cultural evolution has to overcome the information loss, and is best able to do so when there is a large population that is highly socially interconnected.  While most individuals will be worse than the guide used to learn from, there will be individuals who develop skills and knowledge surpassing their teachers. 

As more individuals are trying to learn something, there is a higher chance that someone can become better than the individual they are learning from.  Interconnectedness means that more individuals can access skilled and successful guides, thereby increasing the chance of exceeding them.  Access to different highly skills and knowledgeable guides means that the information can be recombined in creative ways. 

Westerners are trained to seek out behaviors that explain why something happened.  Within this culture, claiming that the behavior was the outcome of custom is not an appropriate reason.  There is a lot of pressure for explicit reasons which makes them have an illusion that people have explicit causal models and clear reasons, even though they do not. 

 

Self-Domestication:

Cultural evolution self-domesticated the human species.  As culture developed social norms, those who violated the norms provoked ostracism or removal from sociality.  Making the members of the community prosocial and rule followers in which members of the community monitor and enforce social norms.

Culture and evolution are intertwined.  Genes have evolved brains with abilities to learn from others.  Ability to learn from others disseminates knowledge across society, giving rise to large amount of knowledge about a lot of things.  Rather than hunting abilities, humans as cultural species can copy others.  But not just any other person.  Learners use a wide range of cues to find out to whom they should selectively pay attention to and learn from.  Cues that help determine who in the community is likely to possess the required knowledge and skills that would enable development of individuals’ skills.  Teaching is the other side of cultural learning.  Guides become active transmitters of information.

Cultures influence society development even at an early age.  As children play out and practice adult roles and skills.  Maturity involves apprenticeships that develop complex skills and areas of knowledge, and an understanding of how to build romantic and peer relationships.

Individuals seek to cooperate with others, but also do not want to be exploited.  Social norms solve that social dilemma problem.  As more individuals trust each other, there are more opportunities for exploitation.  But culture has enabled third party monitors, and mental models to overcome trust inhibiting situations.  Locally transmitted and shared rules can be enforced by third parties who monitor, reward, and sanction.  Culture contains information on how to handle situations and relationships that makes people more prosocial and directs away from exploitative opportunities.

Communities are forged by social norms that harness, extend, and suppress social instincts.  Social rules are learned by observing others, and are then internalized.  Judging others is based on cultural learning, which create self-reinforcing stable social behavior.  People would not be as cooperative without social norms and beliefs.  The human species have constructed social environments that penalized antisocial individual and norm violators, while reward the more sociable individuals.  What makes community members cooperative and coordinate with each other is the social norms, beliefs, and worldviews which facilitate an anticipation of each other’s behavior.

Culture enables biological modification, without the need for genetic changes.  Individuals become psychologically rewarded for agreeing with others.  Changing individual preferences and valuations.  Society functions depends on the cultural packages of social norms.  What makes people do the appropriate behavior and avoid inappropriate behavior, is not self-interest, but automatic norm following.  Cultural learning systems have the ability to override may instinctual or innate inclinations.  Acquiring values and practices that appear to go against instinctual or innate inclinations.

Languages have evolved for improved cultural transmission.  Changed in response to local contexts, physical environments, and social norms.  Enabling communication to become more efficient and have higher quality.  Communications includes not only verbal language, but many non-verbal elements.  Linking meaning and inferring intentions of communication to an immense range of behaviors.

 

Prestige Status or Dominance Status:

The availability of adaptive information in the minds of others facilitated a prestige status.  Status based on cultural learning, rather than just the genetic dominance status.  As evolution made humans cultural learners, the question became whom to learn from.  Guides were those who possessed information likely to be valuable to the learner.  Learns need to be with their guides for long durations, and at crucial junctures.  Learns benefit more from guides who are willing to share nonobvious aspects, or not actively conceal the secrets of their success.  Individuals developed a motivation to seek out skilled and knowledgeable models, and became willing to defer to the guide to gain their cooperation or acquiescence.  Deference is a reward that enables the prestigious individuals to share their information to the learners.

Within dominance relationship, individuals follow the dominant out of fear.  Submit or cooperate to not provoke the dominant.  Individuals seek out prestigious individuals.  Learners then to shift their values and practices to become more similar to the prestigious individual.  Learners pay deference to prestigious individuals and learn from them, while prestigious individuals are rewarded by individuals willing to defer to their values even if they do not agree with them.

Dominance and prestige based strategies influence groups in different ways to gain their status.  Dominance strategies tend to give credit to themselves, humiliate other, manipulate, and be overbearing.  Prestige based strategies tend to give credit to the group, and self-deprecate.

Prestige status is associated with individuals with great skill, knowledge, and successful outcome in tasks and activities that people care about.  Prestigious people are sought for knowledge in their locally valued domains, and deferred to which makes them very influential across a wide range of domains.  Prestige status forms the basis of leadership even in egalitarian societies, with no formal leadership roles or hierarchy.  Prestigious people tend to be known for their generosity, and are rarely ill-tempered or erratic. 

Prestigious individuals are generous to improve their statue, this generosity makes their social network more overall prosocial.  The individual increases the probability that other people become more generous and cooperative. 

Culture has made older individuals important information resources.  Culture changed the relationship between older and younger individuals, as there is information transmission within the relationship.  In noncultural species, individuals are limited to what can be acquired through experience which is little use to others because they lack the learning abilities to extract the information.  Aging can diminish the physical body, but for a species with cultural learning, those aging possess valuable information that they can transmit to younger generations.  Knowledge becomes less useful when the contexts change.  Knowledge from older individuals is beneficial when faced with similar contexts as older generations. 

Media exposure, for whatever reason and even without trying, creates attention cues for others to unconsciously perceive that individual as a worthy model.  The individual becomes a shared point of reference for everyone, making other seek out what they think.  Generating emulation within the group.  Creating a feedback loop where people want to hear more from the individual, because of a mistaken belief that others were attending to that particular person. 

 

Culture, and Food:

Most natural food is toxic, to deter predators from eating them.  The reason why there appears so much food available, is because of the already detoxified products in stores.  Cooking has become the modus operandi way of consuming food, which influenced genetic evolution to make humans addicted to cooked food. 

Cooking makes for more accessible to digestion, and does a lot of pre-digestion activities such as detoxification.  Cooking increases energy available through consumption.  Facilitating energy saving that reduced gut tissue, while also preventing diseases associated with gut tissue.  Every saving that facilitated the species to be able to have and maintain bigger brains. 

 

Caveats?

This book features primarily the beneficial aspects of culture.  Although there is an acknowledgement that cultures can have harmful aspects, there is a lack of ways to recognize the harmful aspects.  This leads to the problem of identifying what cultural aspects are beneficial or harmful, which are dependent on perspective, and contexts.  Contexts can change how a cultural aspect impacts its people, by making prior beneficial or harmful aspects have different consequences.  As much of culture is unconscious, what is missing are ways to recognize cultural aspects and values, and if experimentation with the aspects can find and promote an understanding of better alternatives. 

Although there are examples of gene-culture evolution, they have mixed qualities and add to a confusion.  Some are based on seeing the result, and rollbacking to identify the process that made the result.  But there could have many different unmentioned factors that influenced the process and result.  Other times there is a clear understanding on how gene-culture coevolved.  

Humans are compared and elevated above animals.  But there is research indicating that other animals have culture, with many of the same implications.  Animals might not have had best gene and culture combination to make them dominate, but that is no reason to diminish them.  Animals have adapted to fit their environments, using their physiology.

 


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest the book?
•What is culture?
•What is a cultural species? 
•What is cultural evolution?
•How did humans self-domesticate themselves?
•Do humans use instinctual ability or individual capacity to survive?
•What information does culture possess?
•Why is culture referenced as being usually smarter than the individual? 
•From whom do people learn?
•Why can culture have information loss?
•How can culture overcome information loss?
•How did culture and genes coevolve? 
•What is prestige status?
•What is dominance status?
•How is cultural learning different from social learning? 
•What are some marriage norms and how are they enforced? 
•How did complex communicative tools develop? 
•How do social norms spread to other groups? 
•Are there harmful consequences to social norms? 


Book Details
Publisher:         Princeton University Press
Edition ISBN:  9780691166858
Pages to read:   340
Publication:     2015
1st Edition:      2015
Format:            eBook

Ratings out of 5:
Readability    5
Content          5
Overall           5






Friday, October 28, 2022

Review of Harriet the Spy by Louise Fitzhugh

This review was written by Eugene Kernes   

Book can be found in: 
Genre = Novel
Intriguing Connections = 1) Stories Worthy of Children, 2) Some Kind of Friendship

Watch Short Review

Excerpts

“”Since I could write.  Ole Golly told me if I was going to be a writer I better write down everything, so I’m a spy that writes down everything”” – Louise Fitzhugh, Chapter 2, Page 36


“Of course not.  Can you see Mata Hari in a gym suit?  First of all, if you wear your spy clothes everyone knows you’re a spy, so what have you gained?  No, you have to look like everyone else, then you’ll get by and no one will suspect you.” – Louise Fitzhugh, Chapter 5, Page 87


“Sport was pulling at her sleeve.  He whispered frantically, “you can’t quit.  This is a SCHOOL.” But it was too late.  Even that mild thing, Beth Ellen, was laughing her head off.” – Louise Fitzhugh, Chapter 7, Page 151


Review

Overview:

Harriet wants to be a writer.  To practice, Harriet writes down everything about everyone.  To be a writer, Harriet became a spy.  Carrying around spy tools and writing supplies on a belt while going on spy routes around the neighborhood.  Always carrying a notebook, with thoughts on everyone.  Harriet is a spy, but is also learning what it is to be a spy.  A spy is not supposed to get caught.  For Harriet, it was worse than getting caught, as the notebook was misplaced and was picked up by a classmate who then started to read the content to everyone.  The content containing many details that the classmates did not want to hear about themselves.  This created discord and friction even among Harriet’s friends, which brings with it an understanding of the value of friendship. 

This is a book about negotiation skills, and emotional turmoil.  Teaching not only how to be a spy, but also how to treat others.  Teaching how to belong to a community. 

 

Caveats?

This book does not make light of emotional turmoil.  Which makes the book very difficult emotionally.  But bringing with it an understanding on how to manage emotions.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest the book?
•Who is Harriet?
•Who are Harriet’s friends?
•Who are Harriet’s classmates?
•Why is Harriet a spy?
•Why does Harriet write everything down?
•Who does Harriet spy on?
•How does Harriet lose the notebook?
•What happens when classmates read the notebook?
•How does Harriet react to how classmates treat Harriet after they read the notebook?
•How do Harriet’s friends treat Harriet after they read the notebook?
•How do Harriet’s emotions change through the book?

Book Details
Publisher:         Dell Publishing
Edition ISBN:  044034475
Pages to read:   296
Publication:     1984
1st Edition:      1964
Format:            Paperback

Ratings out of 5:
Readability    4
Content          3
Overall           3






Monday, October 24, 2022

Review of A History Of The Federal Reserve: Volume 2, Book 2 1970-1986 by Allan H. Meltzer

This book review was written by Eugene Kernes   


Watch Short Review

Excerpts

“The Bretton Woods system of fixe but adjustable exchange rates broke down because no major country or group of countries was willing to subvert domestic policy to improve international policy.  Exchange rate stability was a public good; no country was willing to pay much to supply it.  The United States chose to maintain high employment even if its policy required rising inflation, as it did after 1965.” – Allan H. Meltzer, Chapter 5: International Monetary Problems, 1964-1971, Page 754


“Friedman and Schwartz (1963) emphasize the importance of money growth and inflation.  Their work was well known but largely ignored by most members of FOMC.  Economists in the Nixon administration understood the importance of money growth for inflation but yielded to political pressures.” – Allan H. Meltzer, Chapter 7: Why Monetary Policy Failed Again in the 1970s, Page 860


“the Volcker FOMC, Volcker himself, and his successor Alan Greenspan put greater weight on inflation control.  Interest rates increased at times during recessions or periods of rising unemployment if needed to control inflation.   By 1994 the Federal Reserve finally accepted monetarist criticism and adopted counter-cyclical policies by reducing money growth during expansions and raising it during contractions.” – Allan H. Meltzer, Chapter 9: Restoring Stability, 1983-86, Page 1206-1207


Review

Overview:

During this era, the Federal Reserve had to deal with high unemployment and high inflation, known as stagflation.  Myopic in policy, which produced temporary economic fixes.  The short-term seemingly random policy changes were made without much concern for long-term consequences of its actions.  There was more pressure on lowering unemployment than inflation, which caused the government to stimulate the economy while reducing pressure on anti-inflation programs.  Errors in understanding the interactions between economic factors precipitated in procyclical bias.

The Federal Reserve learned from its experiences, and made changes such using different economic models for decision making, and changing how they interact with the economy and citizens.  During 1975, Congress tasked the Federal Reserve to publicly announce a 12-month money growth target, have long-term policies for economic production, and make reports to Congress at open hearings before the banking committees.  Volcker, and successors, changed how the Federal Reserve operated by focusing more on inflation control, and using counter-cyclical money growth policies. 

 

Addendum:

There was conflict between domestic and foreign objectives.  Governments were not willing to sacrifice domestic policy of lower unemployment for international policy.  Much like many nations, the United States focused on high employment even at the expense of inflation.  Citizens choose temporary unemployment over wage reduction, making wages sticky. 

Controlling inflations requires patience and persistence, which the Federal Reserve lacked during the era.  Lacked long-term objectives, and ability to achieve them.  There was research and ideas about managing money growth and information.  They were ignored by the FOMC, while government economists accepted them.  Even though government economics accepted that money growth led to inflation, it yielded to political pressures.  Monetary policy had managed economic factors to maintain economic stability when the Federal Reserve started to reducing volatility of output and limiting inflation.

 

Caveats?

This is not an introductory book on monetary policy.  To understand much of the history presented, would require the reader to have a background in monetary policy.


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest the book?
•What is stagflation?
•How did the Federal Reserve make decisions?
•What did the Federal Reserve learn from this era?
•How did the Federal Reserve manage employment, and inflation?
•How did international objective influence national policy?
•Why was money growth a target?
•How did Congress shape the Federal Reserve?


Book Details
Publisher:         The University of Chicago Press
Edition ISBN:  9780226519944
Pages to read:   572
Publication:     2009
1st Edition:      2009
Format:            Hardcover

Ratings out of 5:
Readability    3
Content          3
Overall           3






Friday, October 21, 2022

Review of Beyond Order: 12 More Rules For Life by Jordan B. Peterson

This review was written by Eugene Kernes   

Book can be found in: 
Book Club Event = Book List (12/24/2022)

Watch Short Review

Excerpts

“People depend on constant communication with others to keep their minds organized.  We all need to think to keep things straight, but we mostly think by talking.” – Jordan B. Peterson, Rule I: Do Not Carelessly Denigrate Social Institutions Or Creative Achievement, Page 26


“The relationship between this brilliant dramatic representation and how we use, or misuse, the gifts of our culture is obvious: the careless demolition of tradition is the invitation to the (re)emergence of chaos.  When ignorance destroys culture, monsters will emerge.” – Jordan B. Peterson, Rule II: Imagine Who You Could Be, And Then Aim Single-Mindedly At That, Page 76


“Leaving everything hidden in the fog because you are afraid of the danger you may find there will be of little help when fate forces you to run headlong toward what you have refused to see.” – Jordan B. Peterson, Rule III: Do Not Hide Unwanted Things In The Fog, Page 106


Review

Overview:

Mental health depends on more than just the individual, for sanity has been delegated to society.  Communication with others maintains the brain and keeps the mind organized.  Thinking is mostly done through talking.  Talking about the past and future clarifies what matters and how to proceed.  Talking about behaviors informs the appropriate ways to judge others.  Social feedback reminds of appropriate behavior, with deviations getting negative reactions.  Physical and mental health depends on interactions, even with close relations.   Requiring continuous negotiations with the partner to maintain peace. 

Laws create order needed for social cohesion, but cannot perfectly codify the complexity of behavior and contexts.  Even with important rules, rigid rule following causes problems.  Creation comes from the chaos of deviating behaviors.  Dynamic responses that facilitate change.  Tolerance is needed for the order of law, and the chaos of deviation.  Stability and change are outcomes of the interactions of social institutions and need to be managed to find the appropriate mixture of order and chaos. 

Traditions and cultures inform behavior.  Carelessly destroying the culture brings with it chaos, inappropriate behavior.  Genuine authority constrains arbitrary exercise of power, because the authoritative agent cares for those within the agents responsibility.  Someone needs to take responsibility for getting things done, and by doing so, they create opportunities for them. 

To resolve problems, requires acknowledging and dealing with them.  Ignored problems do not go away, and can be exacerbated by the avoidance to resolve them.  Sins of commission are those acts that are purposely done knowing that they are wrong.  Sins of omission are those acts which should have been done, but were not. 

No individual has complete knowledge of anything.  But ideologues have a pretentious claim on having that amount of knowledge.  This is a totalitarian claim on knowledge, which facilities problematic behavior when prediction fail to materialize. 

Autonomous consciousness needs to be built, and requires the individual to make their own mistakes and learn from them.  By being overprotective to others, the individual weakens their character.  Individuals need to learn what they hate doing, so that they can avoid doing the things that they hate, to avoid making a miserable life.  Individuals also need to build skills which require dedication and hard work.

Individuals are more complicated than simply good or evil.  A simplifying division used for justification of self-righteous hatred.  A division purposely creating terror that leads to conflict and destruction.

A relationship requires constant negotiation with the partner.  The arrangement is not a zero-sum game, but relationship needs many coordination activities.  Negotiation means figuring out how both partners can help each other.  Without negotiating peace, each partner will slowly aggravate each other causing conflict. 

 

Caveats?

The book is filled with examples that try to define reasons for a claim, but not enough explanations of the content.  The reasons for the claim do not necessarily lead to the claim.  The use of the claims can be exaggerated, and create contradictions with other claims being made. 


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest the book?
•What is needed for mental health?
•What is communication used for?
•Why are laws needed?
•Why is deviation behavior needed?
•How to manage order and chaos? 
•How does culture work? 
•How to resolve problems?
•What are sins of commission, and sins of omission? 
•What is genuine authority? 
•What is an ideologue? 
•What happens to those overprotected? 
•How to build skill?
•How does writing impact memory?
•How to maintain a relationship?

Book Details
Publisher:         Portfolio [Penguin Random House]
Edition ISBN:  9780593084656
Pages to read:   308
Publication:     2021
1st Edition:      2021
Format:            eBook

Ratings out of 5:
Readability    4
Content          2
Overall           2






Monday, October 17, 2022

Review of Life After Google: The Fall of Big Data and the Rise of the Blockchain Economy by George Gilder

This review was written by Eugene Kernes  

Book can be found in: 
Book Club Event = Book List (10/29/2022)

Watch Short Review


Excerpts

“Google understands that most advertising most of the time is value-subtracted.  That is, to the viewers, ads are overwhelmingly minuses, or even mines.  The digital world has accordingly responded with ad-blockers, ad-filters, mutes, Tivos, ad-voids, and devices to help viewers escape the minuses, the covert exactions, that pay for their free content.” – George Gilder, Chapter 3: Google’s Roots and Religions, Page 38


“While most of us welcome “free” on the understanding that it means “no charge,” what we really want is to get what we ordered rather than what the authority chooses to provide.  In practice, “free” means insecure, amorphous, unmoored, and changeable from the top.” – George Gilder, Chapter 5: Ten Laws of the Cryptocosm, Page 50


“Midas’s error was to mistake gold, wealth’s monetary measure, for wealth itself.  But wealth is not a thing or a random sequence.  It is inextricably rooted in hard won knowledge over extended time.” – George Gilder, Chapter 8: Markov and Midas, Page 93


Review

Overview:

There are many technology companies, but it is Google’s product of information distribution that has become ubiquitous.  Giving Google vast influencing power over the economy, and policies.  Providing seemingly free products.  Paying for them not with money, but with something far scarcer, time.  Directing attention away from the wanted content, with distracting advertisements.  Collecting a lot of data on the users which can be used for improvements, but the data is also centralized which attracts thieves.  While not providing enough security, for the product is free.  Free products that also attract malware. 

There is a trend to utilize algorithms, and develop Artificial Intelligence.  Seen as superior to the brain.  Which makes humans appear to be substandard and useless.  But AI cannot think, as AI needs human intelligence to program it.  AI needs humans to structure information for AI to learn.  Humans provide the goals and targets for AI to obtain an output.  Algorithms are logical machines that have deterministic outcomes.  But wealth is created from knowledge based on informational discoveries and surprises.

 

Advertisements, And Consequences Of Free Products:

The internet was meant to remove unwanted advertisements that were disruptive during the television era.  The internet was meant to provide only the advertisements that were wanted.  But under Google’s guidance, the internet is full of unwanted ads and contains a lot of bots and malware.  Rather than empowering the individual, the internet has empowered those with money.

Google followed an unconventional strategy of making its content and information free.  Making information part of a commons, available to all.  Google wanted to organize the world’s information, and make it available.  This would have also displaced existing advertising regime.

Nothing is ever free.  Rather than paying for products with money directly, people are paying for products with their attention.  Time is the ultimate scarcity.  Time is what customers pay with free products.  People welcome free when it means no charge, but what is wanted are the ordered content, rather than the content the authority chooses to provide.  In economics, money measure scarcity of time.

Advertising is usually value-subtracting.  Advertising distracts from watching content.  Many products arose to prevent advertising, the source of the free content.  What Google did was try to use search results, to have viewers see the advertising that they wanted to see.  Transforming advertising into valuable information.  Based on measurement of advertisement effectiveness and quality, advertisers were forced to improve their advertising or remove those that were ineffective.  Google itself created an ad-blocker, which would apply to ads condemned by the Coalition for Better Ads.  Blocking ads it deemed inappropriate, which might be an illegal act for a search engine.  Ad-blocking is detrimental to the unwanted advertisement industry.

Not charging for software services, means avoiding liability for buggy products.  Free products avoid liabilities to real customers, such as preventing development of appropriate security.  Free products are not stolen, therefore do not develop measures to prevent hacking and theft.  Security of information is delegated to the customers. 

 

Artificial Intelligence:

Within the industry of AI, there are claims that machines will be much smarter and have access to more multidimensional data, that individuals would want to delegate their decisions to the machine.  Everything becomes seen as an algorithm that can be controlled through machine learning.  For the AI industry, the superiority of AI algorithm intelligence is making human intelligence inferior and the humans unemployable.  As AI is making homo sapiens obsolete, there are Silicon Valley leaders who favor federally guaranteed annual income to compensate those who are obsolete.  Making more and more people who are unemployed forever.  AI is incredible technology that can improve human life.  The problem is the human mind is seen as a sub-optimal computer, meant to evolve into a silicon based superior machine.

Marxism started with a belief that the industrial revolution solved many problems of production.  Although the ideology has become known for revolutionary methods of rectifying workers grievances.  Silicon Valley has a neo-Marxism trend of repeating the same error as prior Marxists, that of making human labor and mind obsolete.  A world in which the machine supplement human activities is a utopian vision from Silicon Valley.  Ironically, the vision is shared by their critics who have a dystopian view.  The collaboration between utopian and dystopian views is possible because of Google’s monopoly of information and intelligence.

Computer power has become delegated to centralized propriety clouds, moving more data between distances without degradation.  Computers have become cheaper because of this delegation.  The “cloud” is an external hard drive for collecting a gargantuan amount of data, containing processors, connected by fiber-optic lines that consume immense amount of electrical power with the outcome of radiating immense amount of heat. 

Gödel argued that all logical systems had a variety of paradoxes.   Logical systems depended on unproved propositions.  Consistency was no assurance that the system was correct.  Gödel’s Incompleteness Theorem precipitated the creation of a mathematics of information.

Path to knowledge in a logical machine is deterministic and dictatorial.  The machine can potentially gather and process data quickly using a combination of algorithms to produce a single outcome.  A centralized processor of all data gathered under a single operator.  As private data is oppositional to how Google wants to process all data, then Google’s claims about wanting privacy are inconsistent with what it wants. 

Deterministic logic prevents surprises that enable discovery and creation.  Technology needs to transcend deterministic mathematic logic to make progress.  Deterministic machines are free from surprise, as the answers are implicit in the question.  But information is surprise, the discovery of the unexpected.  Within information theory, order defines the expected, but there are degrees of freedom in the message that allow for entropy. 

Consciousness depends on faith for it acts even without full knowledge and therefore obtains surprises.  Machines lack consciousness, lacking surprises.  A logical system that is incomplete and needs an oracle.  Knowledge of the incompleteness is the human condition, manifested in consciousness. 

 

Wealth, and Knowledge:

Gold was mistaken to be wealth by Midas.  Gold is the monetary measure of wealth, but not wealth itself.  Wealth is not a thing or random sequence.  Wealth is knowledge accrued over time.  Knowledge is the source of wealth.  Knowledge provides the understanding on how to utilize matter, and improve upon prior knowledge.

Many firms are using algorisms to make a profit.  Firms within the financial industry make trades that make no sense because of algorisms, but these trades do create profit.  Without understanding the reason for success, then no knowledge is added to improve and provide productive investments. 

Knowledge and learning are the mechanisms by which wealth is created within capitalism.  Rather than create wealth, wealth is being distributed in a zero-sum game.  Knowledge is created with laboriously investigations within companies, but the Securities and Exchange Commission has made inside trading illegal.  Which moved trading to algorithmic formulas because a computer cannot be indicted, although no creative investment is made either. 

Universities make a fortune by selling a paper that comes at great cost to people.  Students obtain massive debts while preventing them from becoming entrepreneurs that would enrich future generations.

 

Security Measures, And Lack Thereof:

Although there are people making claims about the superiority of the machines over their limited human customers, the breakdown of the security system reduced the worth of the machines.  Nations with better security systems are becoming more prominent.  Security is a fundamental, basic, and indispensable component of information technology for the services they provide, rather than a benefit from retro-fixes. 

Centralization of data informs hackers where the most important data is, putting everyone at risk.  Centralization makes information vulnerable to manipulation and theft by those in power.  An alternative would be to have power and information distributed in a peer-to-peer system.  The author predicts that the centralized and free information that collect customer data are not likely to survive distributed peer-to-peer technology, which has been termed a cryptocosm. 

 

Money:

Gold provided a stable economic foundation that could be used to plan for long term projects without fear of inflation due to counterfeit money or fiat money that erodes future payments.  Without the gold standard, money does not have an external frame of reference.  Money has become a self-referential logical system that can be manipulated by central banks for their governments.

Bitcoins is like a precious metal which has a predetermined supply.  Demand by users changes its value.  A recognized but illusive originator of bitcoin is Satoshi.  But Satoshi is nowhere to be found.  The lack of leadership means that there is no third party that governments or hackers can infiltrate.  Without taking control of bitcoin, there is distributed security. 

Cryptocurrencies provide for anonymous exchange and security needed for transactions.  They also provide proof of record needed to defend against governments and businesses spurious claims. 

 

Additional Information:

Successful firms utilize extensively their era’s abundant resource designated by declining prices, while saving the scarce resource.  Data and bandwidth have become the abundant resource, while customer patience is scarce.

Scarce bandwidth means that it will be allocated preferentially, no matter the laws.  But if bandwidth is abundant, then neutrality laws are unnecessary.  The irony is that a network neutrality campaign deters investment into improving the bandwidth.  While Google supports internet neutrality, for government to intervene on Google behave.  But Google depends on bandwidth abundance, that are penalized by network neutrality laws.

Applications tend to lock people in them.  People provide them with lots of information, but need to petition to move their information to another application.

 

Caveats?

Some caveats for the book includes that the book is less about Google, and more about how the internet functions.  Google provides and controls a major internet function.  A company whose actions influence how other functions operate, and the policies that regulate how other companies behave.  Showcasing the negative consequences of how the internet operations, and the alternative methods that are taking root. 

There is a lot of esoterica in the book.  Would help understand the content if the reader already knows the esoterica.  Among the ideas, there is a poor transition between topics, and a lack of explanation for some claims.  Related content is sporadically placed which makes it difficult to put together into a coherent understanding. 

There is a contradiction when discussing security.  In part, the author claims that security has been delegated to the customers, making it seem as a negative consequence of the internet companies not providing security.  But in another part, blockchains are described as peer-to-peer distributed security as a positive consequence.  Decentralized security cannot be both a positive and negative consequence of products.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest the book?
•Why is Google the target of this book?
•What do free products provide? 
•How are free products paid for?
•How is data centralization used?
•What are the benefits and consequences of algorithms and artificial intelligence?
•What is wealth?
•How is knowledge generated?
•What value do advertisements provide? 
•What impact do ad-blockers have?
•Why is security lax? 
•What are the limits to artificial intelligence?
•What is the cloud?
•What is Gödel’s Incompleteness Theorem?
•What is the cryptocosm?
•What is blockchain?
•What are cryptocurrencies? 
•What is the value of an education?
•How does Google manage bandwidth? 
•How did John von Neumann influence the digital (information) age?
•Can superior intelligences be governed? 
•Where does value come from a network? 


Book Details
Publisher:         Regnery Gateway [Salem Media Group]
Edition ISBN:  9781621576136
Pages to read:   268
Publication:     2018
1st Edition:      2018
Format:            eBook

Ratings out of 5:
Readability    4
Content          4
Overall           4