Harry,

This is becoming a confused mixture of Sandwichman and me. I almost can't tell who wrote what!

I fully agree with you about the rent-seeking form monopolized land. But you still haven't explained how it all comes about. For example, how did the price of land (and shares) rise ten-fold between the early '80s and 2000 (the dotcom crash)?

Keith


At 13:07 08/01/2011 -0800, you wrote:
Content-Type: multipart/alternative;
        boundary="----=_NextPart_000_0006_01CBAF34.F77792C0"
Content-Language: en-us

Keith,



The problem for the working man is that as his conditions improve and his wages rise, so also do Economic Rents rise removing his advantage and reducing him to penury again.



One of the things that Marx got right was his noting that the Industrial Revolution was financed by Economic Rents. Some idiots support the extracting of Rents from the wages of labor because it provided the wherewithal to finance the Industrial Revolution.



Bah!



Harry



******************************

Henry George School of Los Angeles

Box 655  Tujunga  CA 91042

(818) 352-4141

******************************



From: Keith Hudson [mailto:[email protected]]
Sent: Saturday, December 25, 2010 11:11 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; [email protected]; [email protected]
Subject: Re: [Futurework] A Robot Stole My Job: Automation in the Recession



At 14:03 25/12/2010 -0800, Sandwichman wrote:

Harry,

I would like to recommend a 180-year old book to you. It is called The Working-Mans Companion. The results of Machinery, namely cheap production and increased employment, exhibited and was published by the Society for the Diffusion of Useful Knowledge in 1831 in response to the machine-breaking Swing Riots. The Companion is a rather cheerful and optimistic tract, which attributes the machine-breaking riots of agricultural workers to ignorance of the great value that machinery contributes to their way of life. Patiently and in a most amiable and charitable manner, the author explains to the reader what life would be like without machines and all the wonderful benefits they confer. The books analytical core was a popularization of Says Law of Markets:

"There is no truth so clear, that as the productions of industry multiply, the means of acquiring those productions multiply also. The productions which are created by one producer, furnish the means of purchasing the productions created by another producer; and, in consequence of this double production, the necessities of both the one and the other are better supplied. The multiplication of produce multiplies the consumers of produce."

The consequence of this law is that there is no such thing as a limit to the wants of consumers or to the means available to consumers to satisfy their wants.


This is not quite correct. J-B Say said that as long as there were products that people desired they would gain enough money one way or another to buy them.

In Say's day, the only method available to the masses was by working harder or more efficiently. In modern times -- and particularly for the last 30 years or so -- credit has been thrust upon the masses, such has been the desperation of the powers-that-be (governments, major corporations, banks) that economic growth must keep going.

What have been missing for the past 30 years are uniquely new, initially expensive consumer goods that work their way downwards from the rich to the poor in ever-wider stages of mass production, creating ever-cheaper versions of the same products. Since then, "new" consumer goods (e.g. PCs, mobile phones, kitchen make-overs) are only marginal improvements, fashionable embellishments or amalgamations of goods that are anything from 50 to 150 years since first conceived.

"The thing that hath been, it is that which shall be, and that which is done is that which shall be done: and there is no new thing under the sun." (Ecclesiastes 1:9)

(Isn't the language of the James version gorgeous?!) The unknown author was correct enough in his times (agricultural) but wasn't correct in industrial times (very roughly 1780-1980). He's correct again now.

But maybe both unknown authors (of Ecclesiastes, and The Working-Mans Companion) give us a clue as to what's next. A little further on, the first one writes:

"To every thing there is a season, and a time to every purpose under the heaven" (Ecclesiastes 3:1)

As to the second author, let me now skim down:


[sandwichman] Thus the amount of work to be done is also unlimited and, in fact, expands as a consequence of machinery. The introduction of machinery may indeed displace workers in one particular occupation for a short while but will soon open new opportunities. The advice given to the ordinary worker is to become a capitalist and put aside enough funds so that if wages become depressed one can go out from the market:

[The Working-Mans Companion] "There is a glut of laborers in the market. If you continue in the market of labor during this glut, your wages must fall. What is the remedy? To go out of the market& Become capitalists. When there is too much labor in the market, and wages are too low, do not combine to raise the wages; do not combine with the vain hope of compelling the employer to pay more for labor than there are funds for the maintenance of labor: but go out of the market. Leave the relations between wages and labor to equalize themselves& When wages fall by a glut of labor, you not only continue to work, but you work harder; and thus you increase the evil. You have, in too many cases, nothing but your labor for your support. We say to you, get something else ; acquire something to fall back upon. When there is a glut of labor, go at once out of the market; become yourselves capitalists."


But how do the unemployed of today become capitalists (that is, producers)? Unlike early industrial revolution times when there were many innovative opportunities open to even the working man (and hundreds of "country banks" [in England anyway, with probably many similar ones in America] falling over themselves to finance even highly risky endeavours) where do the unemployed get capital?

They could, however, get increasing amounts of working capital from profits. Perhaps the clue is given by one of the undoubted geniuses of the last century (and still alive), Freeman Dyson. Turning his attention from quantum physics to the latest growth area in science -- genetics -- he's lately been remarking about what he calls "garage-biology".

[Here I'm going to stop. I've decided to make this a separate topic for a posting to three other lists and I would need to re-engineer my head somewhat to continue here and then write de novo. But I will post it to this list also.]

P.S. Here I just want to add a comment to previous discussion above. Even the poorest in the advanced countries have been able to acquire the most sophisticated consumer goods of the last century -- and originally exorbitantly expensive (e.g. cars, TVs, foreign holidays, etc). The only consumer good that the poor desired more than anything else -- a home of their own -- had been denied them until the last few years. But the economic system couldn't supply this except by means of credit which was skilfully disguised as being affordable but which turned out not to be so. The present economic-growth system (with apparently inexhaustible credit) has now reached the end of the road.

Earlymorningpotofteaman


There are only one thing wrong with the book. The workers (for the most part, anyway) who broke machines had nothing against machines, per se. What they were up in arms about was their misery and impoverishment. Breaking the machines was SYMBOLIC.

In a piece about feminism in the New Yorker a few years ago, Ariel Levy wrote, "There are political consequences to remembering things that never happened and forgetting things that did." She was referring to the alleged incidents of "bra burning" that took place in the 1970s. Reports of bra burning were, to paraphrase Mark Twain, "greatly exaggerated." Rather than being a story about an actual event, the alleged bra-burning incident was a simile that a reporter used in comparing feminists to draft resisters who burned draft cards.

If the Society for the Diffusion of Useful Knowledge had still been around in the 1970s, perhaps they could have issued a tract explaining to women the support and comfort provided by brassieres.

On Sat, Dec 25, 2010 at 11:12 AM, Harry Pollard <<mailto:[email protected]>[email protected]> wrote:

I suspect, Michael, that this whole subject would be enjoyed by the 19th

century Luddites.

I repeat, it's a red herring designed to avoid the real problems.

Or, as is the newly popular phrase to describe US politicians, it's kicking

the can down the road!

Merry Christmas!

Harry

******************************

Henry George School of Los Angeles

Box 655  Tujunga  CA 91042

(818) 352-4141

******************************

-----Original Message-----

From: <mailto:[email protected]>[email protected]

[mailto:[email protected]] On Behalf Of Mike Spencer

Sent: Wednesday, December 22, 2010 11:52 AM

To: <mailto:[email protected]>[email protected]

Subject: [Futurework] Re: A Robot Stole My Job: Automation in the Recession

Pitfalls of automation on the way to the singularity:

As scary as this scenario is, taken as a model for the larger trend, it's

heartwarming that the financial cohort was reduced to the role of gofers for

the people who actually *do* stuff and that at least *some* critical stuff

got done under the circumstances.

RISKS-LIST: Risks-Forum Digest  Monday 20 December 2010  Volume 26:Issue 25

Also at: <http://catless.ncl.ac.uk/Risks/26.25.html>http://catless.ncl.ac.uk/Risks/26.25.html

   Date: Tue, 14 Dec 2010 18:07:20 -0500

   From: "Robert L Wears, MD, MS" <<mailto:[email protected]>[email protected]>

   Subject: Health information technology risks

   Since the ECRI Institute recently moved health IT to its 'top 10

   list' of hazardous healthcare technologies for 2011, I thought I

   would offer this case in point.

   Shortly before midnight on a Monday evening, a large urban

   academic medical center suffered a major IT system crash which

   disabled virtually all IT functionality for the entire campus and

   regional outpatient clinics.  The outage affected ADT, financial,

   medical records, laboratory ordering and reporting, imaging

   ordering and reporting, and pharmacy systems.  (Two

   semi-independent subsystems, EKG, and picture archiving, were

   still functional in a limited sense).  The outage persisted for 67

   hours, and forced the cancelation of all elective procedures on

   Wednesday and Thursday, involving 52 major procedures and numerous

   minor procedures (such as colonoscopies).  All ambulance traffic

   was diverted to other hospitals during the outage (estimated 70

   diversions).  There were substantial delays in obtaining

   laboratory and radiology results on existing inpatients, so

   despite the reduction in the numbers of incoming patients, it was

   difficult to clear out the hospital as physicians delayed

   discharges pending those results.  Not surprising to the readers

   of RISKS, the outage was due to a concatenation of small failures

   and long-standing but unapparent underlying latent conditions.

   The triggering event was a hardware failure in a critical network

   component.  This was repaired but required major servers to be

   manually restarted.  During restart, the servers halted and

   reported critical errors; it was then discovered that certain file

   permissions had been changed that prevented the clinical systems

   from rebooting, and operators from reverting to prior versions.

   (It should be noted that these systems had not been rebooted for

   over 26 months).  Ultimately it was found that these changes

   resulted from an attempt to install "high availability" failover

   capability two years prior.  The high availability project had

   been plagued with problems from the start, and eventually was

   halted prior to completion, but some changes that had been made

   were never completely rolled back, unknown to the system's

   managers.  These changes, in the presence of the network fault,

   had the effect of triggering an attempt to execute high

   availability failover processes that were nonexistent and thus led

   to the reboot failures.  Once this issue was discovered and

   corrected, clinical servers could be restarted.  The databases

   then underwent extensive integrity checks, and when these were

   satisfactory, services were resumed on Friday at 1600.

   Backloading the clinical and financial data accumulated during the

   outage took considerably longer than the downtime did.  There was

   no evidence this event was due to external agency, malware,

   hacking, etc.  Interestingly, no pre-existing data were lost

   during the crash and downtime.  A previous risk analysis had

   estimated direct costs for complete downtime at $56,000 per hour,

   so the total direct cost (not including lost revenue from canceled

   cases or diverted patients) is likely close to $4 million.  As far

   as is known, no patients were injured during this event.  The

   risks here are multiple, but a few salient point are worth

   emphasizing.  First, it was difficult initially for frontline

   workers to convince help desk personnel that the system was

   unavailable due to the partitioning of the network secondary to

   the initiating hardware failure.  Second, it was difficult to

   understand the nature of the failure or to uncover the ultimate

   cause of the event.  Third, the organization was slow in

   activating its own internal disaster plan - an incident management

   group was not convened until 1530 Tuesday, roughly 16 hours into

   the incident.  Fourth, the social element of the sociotechnical

   system that is a hospital was able to quickly reorganize in

   multiple ways and keep essential services operating in at least

   some fashion for the duration.  Many of these adaptations were

   made "on the fly"; one of the most interesting was rescheduling

   financial staff (who now had nothing to do, since no bills could

   be produced), using them as runners to move orders, materials, and

   results around the organization.  Fifth, as has been frequently

   noted in RISKS, maintenance played an important part in this

   failure.  The irony of the role of "high availability" resulting

   in unavailability is rich indeed.  Sixth, as Richard Cook has

   pointed out, a working system, even with known flaws, is a

   precious resource, so the reluctance to ever submit to a full

   restart over the course of two years, which included multiple

   large and small maintenance downtimes, is understandable, even

   though that might have identified problems like the undocumented

   permission and script changes at a time when they might have been

   more easily recognized and corrected.  As more and more care

   delivery organizations with little experience in managing

   clinical, as opposed to business, systems install more and more

   advanced, clinical HIT systems -- systems that have not been

   developed from a safety-critical computing viewpoint -- more

   frequent and potentially more consequential failures are likely.

   Robert L Wears, MD, MS University of Florida 1-904-244-4405

(ass't) Also Imperial College London <mailto:[email protected]>[email protected] +44

   (0)791 015 2219

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Sandwichman
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