How the Internet Destroyed the Middle Class

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Jaron Lanier :

Kodak employed more than 140,000 people and was worth $28 billion. They even invented the first digital camera. But today Kodak is bankrupt, and the new face of digital photography has become Instagram. When Instagram was sold to Facebook for a billion dollars in 2012, it employed only 13 people. Where did all those jobs disappear? And what happened to the wealth that all those middle-class jobs created?

Before, when people made contributions to the system that they used, they received formal benefits, which means not only salary but pensions and certain kinds of social safety nets. Now, instead, they receive benefits on an informal basis. And what an informal economy is like is the economy in a developing country slum. It’s reputation, it’s barter, it’s that kind of stuff.

What changed is that at the turn of the [21st] century it was really Sergey Brin at Google who just had the thought of, well, if we give away all the information services, but we make money from advertising, we can make information free and still have capitalism. But the problem with that is it reneges on the social contract where people still participate in the formal economy. And it’s a kind of capitalism that’s totally self-defeating because it’s so narrow. It’s a winner-take-all capitalism that’s not sustaining.

In a market society, a middle class has always required some little artificial help to keep going. There’s always academic tenure, or a taxi medallion, or a cosmetology license, or a pension. There’s often some kind of license or some kind of ratcheting scheme that allows people to keep their middle-class status.

In a raw kind of capitalism there tend to be unstable events that wipe away the middle and tend to separate people into rich and poor. So these mechanisms are undone by a particular kind of style that is called the digital open network.

We don’t realize that our society and our democracy ultimately rest on the stability of middle-class jobs. When I talk to libertarians and socialists, they have this weird belief that everybody’s this abstract robot that won’t ever get sick or have kids or get old. It’s like everybody’s this eternal freelancer who can afford downtime and can self-fund until they find their magic moment or something.

The way society actually works is there’s some mechanism of basic stability so that the majority of people can outspend the elite so we can have a democracy. That’s the thing we’re destroying, and that’s really the thing I’m hoping to preserve. So we can look at musicians and artists and journalists as the canaries in the coal mine, and is this the precedent that we want to follow for our doctors and lawyers and nurses and everybody else? Because technology will get to everybody eventually.

I have 14-year-old kids who come to my talks who say, “But isn’t open source software the best thing in life? Isn’t it the future?” It’s a perfect thought system. It reminds me of communists I knew when growing up or Ayn Rand libertarians. It’s one of these things where you have a simplistic model that suggests this perfect society so you just believe in it totally. These perfect societies don’t work. We’ve already seen hyper-communism come to tears. And hyper-capitalism come to tears. And I just don’t want to have to see that for cyber-hacker culture. We should have learned that these perfect simple systems are illusions. I think seeking perfection in human affairs is a perfect way to destroy them. It just doesn’t work.

Let’s stick with politics for one more. Is there something dissonant about the fact that the greatest fortunes in human history have been created with a system developed largely by taxpayers dollars? Military research and labs at public universities. And many of the people whom the Internet has enriched have become libertarians who earnestly tell you that they are “socially liberal and fiscally conservative,” and resist progressive taxation because of it.

Yeah, no kidding. I was there. I gotta say, every little step of this thing was really funded by either the military or public research agencies. If you look at something like Facebook, Facebook is adding the tiniest little rind of value over the basic structure that’s there anyway. In fact, it’s even worse than that. The original designs for networking, going back to Ted Nelson, kept track of everything everybody was pointing at so that you would know who was pointing at your website. In a way Facebook is just recovering information that was deliberately lost because of the fetish for being anonymous. That’s also true of Google.

http://www.salon.com/2013/05/12/jaron_lanier_the_internet_destroyed_the_middle_class/

:face:
 
Reminds me of The Cult of the Amateur: How Today's Internet Is Killing Our Culture, by Andrew Keen.
 
While I live in the rust belt and drive by acres of parking lots that used to be for the workers, I see no reason to use weak arguements about job loss due to some technology. There wouldn't be people left with good jobs producing steel without that.

The reason Kodak went out of business was a lot of stupid, management decisions. They persisted in telling the consumer what to do and it failed. Maybe their last stop would have been switching to buggy whip production but they just didn't get there. Shame...

Generation back it was Demon Rum that destroyed the middle class. We seem to always be destroying those poor bastards. But, hell, I'll drink to that.
 
Technology used to be a boon for workers back when hand-coding and net administration required people. These days, mastercoders create programming environments that minimize the number of hands on people churning out fresh programs, a dozen people managing servers were replaced by remote log-in and self-correcting software handled by sometimes one part-time or on-call guy, and factories have already automated electronics component manufacturing for years...

...the only thing necessary that cannot be replaced are the database controllers, connection techs making sure the bandwidth is uninterrupted, and the people pulling the materials out of the ground to build more of the cockamamie magic boxes and handheld devices.

Like everything, when the accountants became the real string-pullers via number crunching, less people = less liability (and paychecks/benefits are considered a loss of overhead).
 
Saw that programmer's pay is down 2% over last year.-- slashdot.com

Part of it is sign of the times. When I started out we had to set jumpers and such. Today, one or something can reconfigure something from the other side of the world.

The economy is vastly different from the time I was starting out. That has it ups and downs. But, taking advantage of workers isn't anything new. Most think management here but I'll include unions. Many good jobs remain in our area that wouldn't be here without the changes. That part is all a teeter-totter and always has been.

Change is inevitable. That affected people throughout history. Fortunately, man is adaptable.
 
While I live in the rust belt and drive by acres of parking lots that used to be for the workers, I see no reason to use weak arguements about job loss due to some technology
IOW, job loss to technology is so self-apparent that you have to go into denial mode to evade it.

Sure, with widgets, some of it is technological progress. And some of it is offshoring encouraged -- mandated -- by changes to the law.

But in the areas you're ignoring -- like culture -- the ability of creators to make a living from their work -- even when wildly popular -- has been gutted out. By the exact paradigm change he pointed to : information as the same kind of loss-leader commodity (to drive advertising revenue) that bannannas are in the grocery store. When that happens, as Harlock's link guy points out, creativity becomes the purview of amateurs.

Everybody's creating, and nobody's getting paid for it other than in dribbles.

:face:
 
In the early 50's steel mills were cash cows and union benefited tremendously. Beside the salary increase the benefits rocketed. By the 80's that died off and the mills started their decline with foreign steel replacing American workers and that was the catalyst for massive declines. Technology actually saved jobs from then on. Without technology there would be no operating mills. Many of the old mills are shuttered. The reduced force is so productive they will never be needed.

Everything here is about unintended consequences more than technology. The people in the mills now have much better livelihoods. There health is far better. From the days of heavy production laborer, it is few in production and most with well paying maintenance jobs either for the mill or an outside contractor. A friend of mine is an E.E. and there are more of them around than ever.

Automation has brought jobs back to this country. We can manufacture autos and even computers now and pay workers prevailing wages. Without technology, that wouldn't happen.

Cause and effect. Cause and effect. Cause and effect.
 
We'd better still know how to make stuff, technology or not, because the Chinese workforce is starting to look at their paychecks versus what the American (or even Japanese) equivalent gets, and they are starting to ask for more. Which means, either source out another cheap labor force or American kids are gonna have to give up dreams of living at home until age 30 with dreams of being a video game designer if they want to have healthcare and gold teeth. :lol:
 
Been a working man all my life..did good untill the right to work law killed the unions in Texas
 
Guest":3h9a3hh6 said:
In a market society, a middle class has always required some little artificial help to keep going.
That's a huge assumption. It's popular to blame capitalism but the argument needs to be better than that.
 
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