Real Clear Future
 
 
 
 
 
Tech's Fall from Political Grace





 
 
 
By Robert D. Atkinson
July 19, 2016

 
 
 
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Through the late 1990s, the “tech” industry—which  includes the companies 
that give us computer hardware, software, and Internet  services—was the 
toast of Washington. It symbolized a sparkling future and could  do no wrong. 
Tech would bring growth, opportunity, and freedom. Everyone in the  world of 
policy and politics wanted to be onboard that train, and most feared  doing 
anything that might stunt the growth of the Internet and all that drove,  
touched, or sprung from it. 
Two decades later, things have changed, as evidenced  in recent months by 
the tense standoff between policymakers and the tech  community over thorny 
questions about encryption and the whys and hows of  government access to 
private data for law enforcement and national security  purposes. Indeed, tech 
is now seen as the instigator of a host of annoying  wrongs and egregious 
injustices: the loss of personal privacy and security, the  growth of 
digital-age monopolies, the evisceration of secure jobs, the rise of  
inequality, 
and even the expansion of oppressive dictatorships. This is a  worrisome 
trend, not because the criticisms are valid—in fact, they are  generally 
overblown or flat wrong—but because a false narrative is fueling  political 
opposition that could actually halt the march of innovation, growth,  and 
progress.

 
 
What’s behind tech’s fall from grace? The short answer is that as tech 
grew  to be a major part of the global economy, a large target also appeared on 
its  back. Let’s start with the wide array of “public interest” 
organizations that  now attack tech as a routine part of their missions. In the 
1990s, 
if they  railed about loss of privacy or corporate greed in tech, they 
would have been  ignored. Today, they find such issues to be fertile territory 
for advocacy  campaigns. Indeed, scores of privacy groups and other 
organizations now see  criticizing tech and the business of tech as their 
raison d’
être, whether its  attacking _electronic medical records_ 
(https://www.eff.org/press/releases/medical-privacy-digital-technology-can-leave-your-health-hist
ory-exposed) , _smart meters_ (http://www.stopsmartmeters.org/) ,  
_broadband  innovation_ (http://www.savetheinternet.com/broadband) , _big data_ 
(https://www.washingtonpost.com/news/the-switch/wp/2014/02/27/why-civil-rights-gr
oups-are-warning-against-big-data/) , or the _sharing economy_ 
(http://www.epi.org/event/perspectives-on-the-sharing-economy/) . After all, if 
they 
weren’t here to protect  us from the aforementioned parade of tech horribles, 
then who is?  
On top of this, an array of state, federal, and  foreign regulators jump 
into this treasure trove of attention: much better to  propose regulating and 
prosecuting tech—and thereby generate exciting press  releases—than go 
after prosaic and boring industries like shady payday lenders,  fraudulent mail 
order scams, and other fraudsters.
 
In the 1990s, anyone who wanted to write a book about  how tech was a 
malevolent force in our lives would be hard pressed to find a  publisher; they 
would have been laughed at as if they were wearing a tinfoil  hat. But after 
the Harvard Business Review published Nicholas Carr’s  anti-tech treatise “
_IT Doesn’t Matter_ (https://hbr.org/2003/05/it-doesnt-matter) ” in May 
2003, the floodgates opened. Now,  in fact, IT not only doesn’t seem to matter, 
it’s not even good.  
Carr followed up with five books about how tech makes  us stupid, 
controlled, and shallow. Then came tech critics like Erik  Brynjolfsson, Susan 
Crawford, Martin Ford, Jared Lanier, Larry Lessig, Robert McChesney, Tim Wu, 
and  
Jonathan Zitrain, who variously argue that tech is a threat to our personal  
freedom, our pocketbook, our jobs, and our democracy. Ignonvy Morosov, a 
leading  critic in his own right, _describes_ 
(http://thebaffler.com/salvos/taming-tech-criticism)  the avocation this way: 
“to be a  technology critic in 
America now is to oppose that bastion of vulgar disruption,  Silicon Valley.
” But even that description now seems quaint, as tech critics  like Nick 
Bostrom, James Barrat, and Calum Chase go beyond complaining about  minor 
irritations such as the end of freedom to warn that tech will mean the end  of 
humanity because Skynet is bound to take over and kill us all. Read these  
books and you’ll wonder why Congress is not holding hearings to investigate 
why  the Department of Defense created this awful and nefarious thing called 
the  Internet in the first place. I guess books with titles like The Internet 
is  Great: Spurring Innovation, Powering Productivity, and Expanding 
Consumer  Choice just wouldn’t sell.
 
Let’s not forget that in achieving much of its  promise, tech did exactly 
what it said it would do, and what most consumers  hoped it would do: disrupt 
industries—for the better. But now  the Empire—established industries and 
professions from hotel chains and taxi  drivers—is striking back by banding 
together to elicit sympathy from the public  and a helping hand from 
lawmakers and regulators with the power to throw sand in  tech’s gears. People 
want 
other things to be disrupted, not themselves, and who  can blame them? I 
might even start to doubt tech if it disrupted the think tank  industry 
(actually, I wouldn’t, but I would want to). But that doesn’t make it  right. 
You’d think most U.S. elites would remain on the side  of supportive and 
light-touch policymaking when it comes to tech. But alas, many  of them have 
become doubters, deeply unsure about whether tech is a progressive  force or 
not. Claiming, incorrectly, that tech is responsible for widespread _job  
loss_ (http://www2.itif.org/2013-are-robots-taking-jobs.pdf) , _worker 
insecurity_ 
(https://itif.org/publications/2016/06/20/us-labor-market-far-more-stable-people-think)
 , and _income inequality_ 
(https://itif.org/publications/2016/05/04/think-enterprise-why-nations-need-comprehensive-productivity-strateg
ies) , many elites have become what you might  call “Luddite Light.” The 
unfortunate part is that without the economic  devastation of the Great 
Recession—an event that tech had no part in causing—the  elites would likely be 
more supportive. But with that devastation they have to  find someone or 
something to blame, and it’s easier to fall back on the  
tech-causes-inequality-and-kills-jobs meme, even if it isn’t true. 
Of course, the tech industry is not blameless in its  fall from grace. It 
was too quick to offshore some jobs that might have been  kept in the United 
States. Its willingness to use the global tax system to  reduce its tax 
burden, while legal and understandable, especially given the high  corporate 
tax 
rates in the United States, furthers the view that tech companies  are only 
interested in profits. Moreover, many see the corporate valuations of  some 
startups and personal wealth of some tech titans as obscene. And while many 
 tech companies have robust corporate social responsibility programs, and 
many  tech titans have either given or made commitments to give large amounts 
to  social causes, some have not. It doesn’t help that Silicon Valley often 
radiates  arrogance, as when techies scoff “they just don’t get it” when 
people or  organizations take positions that are different from theirs. Nor 
does the  disdainful view among some in the Valley (though not, to be fair, 
most  established tech companies) that Washington is the problem and anything 
it does  is tainted with corruption and bureaucratic ineptitude. All in 
all, this is not  a good way to win friends and influence people. 
Nevertheless, the mainstreaming of tech criticism has  been deeply 
troubling, because the truth is tech innovation is and will remain  the single 
most 
important driver of human progress, whether in education, health  care, city 
management, or economic dynamism and growth. Doubting tech and  forcing it 
to constantly run through a gauntlet of funhouse scrutiny will mean  less 
technological innovation and progress and reduced U.S. technology-based  
global competitiveness. Only its professional critics will be happy with  that. 

 
Robert D. Atkinson (_@RobAtkinsonITIF_ 
(https://twitter.com/robatkinsonitif) ) is the founder  and president of the 
_Information Technology and  
Innovation Foundation_ (http://www.itif.org/) , a think tank focusing on the 
intersection of  technological innovation and public policy. 

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