I love Gilder, even if he sometimes drives me crazy.

His “Soul of Silicon” was the lighthouse of my early career, and a direct 
precursor to my embracing Radical Centrism.

> On Sep 3, 2018, at 3:17 PM, Billy Rojas <[email protected]> 
> wrote:
> 
> There's still a lot to take issue with in  Gilder's latest transformation, 
> his annual
> re-invention of himself, but there is more now to agree with and be thankful 
> for.
> He still touts Reagan, who, to me, was mostly a dud as a president, but
> maybe we can set that aside to focus on his critique of Silicon Valley.
> 
> Here is someone who at least shares some of my sentiments about Google, et al,
> that the people at the top in these software giants are full of themselves, 
> and
> full of crap. And I agree with Gilder that the technology is amazing but that
> the values that animate the tech industry are bad news, indeed, so such
> anarchism / nihilism / regurgitated libertarianism; plus a heavy dose
> of Leftist politics.
> 
> Some day I want to develop a full-throated critique of Silicon Valley.
> The social values of the Valley cause me considerable anxiety, fear of
> censorship at the top of my list, but including hyper-technophilia,
> ideological Cultural Marxist values a la Brin and others, and so forth,
> and there seem to be some good ideas in Gilder's latest material
> to make productive use of.
> 
> 
> Billy
> 
> ---------------------
> 
> 
> Sage Against the Machine
> 
> A leading Google critic on why he thinks the era of ‘big data’ is done, why 
> he opposes Trump’s talk of regulation, and the promise of blockchain.
> 
> By 
> Tunku Varadarajan
> Aug. 31, 2018 4:30 p.m. ET
>  
> New York
> ‘I rarely have an urge to whisper,” says George Gilder—loudly—as he settles 
> onto a divan by the window of his Times Square hotel room. I’d asked him to 
> speak as audibly as possible into my recording device, and his response, 
> while literal, could also serve as a metaphor: Nothing Mr. Gilder says or 
> writes is ever delivered at anything less than the fullest philosophical 
> decibel.
>  
> Mr. Gilder is one of a dwindling breed of polymath Americans who thrive in a 
> society obsessed with intellectual silos. As academics know more and more 
> about less and less, he opines brazenly on subjects whose range would keep 
> several university faculties on their toes: marriage and family, money and 
> economics, law and regulation, and the social role of technology, a subject 
> that engrosses him at present and the topic of his latest book, “Life After 
> Google: The Fall of Big Data and the Rise of the Blockchain Economy.”
> 
>  
> Mr. Gilder has published 20 books, the best-known of which, “Wealth and 
> Poverty” (1981), sold more than a million copies and made him rich. It was an 
> impassioned defense of the morality and compassion of the free market. Ronald 
> Reagan acknowledged that the book bolstered his confidence in supply-side 
> economics, and he was known to be particularly beguiled by its opening line, 
> which reads: “The most important event in the recent history of ideas is the 
> demise of the socialist dream.”
>  
> Mr. Gilder also had a vast and avid following during the tech boom of the 
> 1990s, when his Gilder Technology Report—an idiosyncratic subscription 
> newsletter—shaped the investing habits of thousands around the world. 
> Analysts spoke of a Gilder Effect, which had investors rushing to buy stock 
> in any new company mentioned in the Report. The newsletter effectively ended, 
> Mr. Gilder tells me, “in the months after the stock market crash of 2000, 
> when I lost nearly all my 106,000 subscribers.”
>  
> Mr. Gilder, 78, is still immersed in the world of tech, but he doesn’t like 
> all that he sees. Google makes him mad, as does Silicon Valley more broadly, 
> and his ire is directed at the “new catastrophe theory” which holds “that 
> artificial intelligence will make human minds obsolete, and that we’ll soon 
> produce machine-learning tools and robotics that excel the capabilities of 
> human brains.” He calls this attitude “Google Marxism”—a phrase he utters 
> with a certain salivary distaste—“because Marx’s essential theme was that the 
> Industrial Revolution of the 19th century had overcome all the challenges of 
> production.” From that point on, Marx held, “human beings would focus on 
> redistributing wealth among the classes rather than creating it.”
>  
>  
>  
>  
>  
>  
> Marx was convinced that the steam turbine, electrification and what William 
> Blake called “dark satanic mills” were a final stage in social evolution—“an 
> eschaton.” Mr. Gilder loves abstruse words, and this one, which signifies a 
> kind of climax in human attainment, is a particular favorite. “Google and the 
> Silicon Valley people also imagine that their artificial intelligence, their 
> machine learning, their cloud computing, is an eschaton—another ‘end of 
> history’ moment. And it’s just preposterous.”
>  
> In truth, Mr. Gilder says, Google is at the end of its “paradigm,” which he 
> defines as “avoiding the challenge of security across the internet by giving 
> away most of its products for free, and financing itself with an ingenious 
> advertising strategy.” Mr. Gilder also contends that Google believes 
> capitalism is at an end—that “this is the winner-take-all universe,” as he 
> puts it, “and the existing generation of capitalists are the final 
> capitalists. That’s their vision.” And if you believe that “machines can 
> re-create new machines in a steady cascade of greater capabilities that are 
> beyond human comprehension and control, you really believe that’s the end of 
> the human race.”
>  
> Mr. Gilder rejects the premise. “Machines can’t be minds,” he says. 
> “Information theory shows that.” Citing Claude Shannon, the American 
> mathematician acknowledged as the father of information theory, Mr. Gilder 
> says that “information is surprise. Creativity always comes as a surprise to 
> us. If it wasn’t surprising, we wouldn’t need it.” However useful they may 
> be, “machines are not capable of creativity.” Human minds can generate 
> counterfactuals, imaginative flights, dreams. By contrast, “a surprise in a 
> machine is a breakdown. You don’t want your machines to have surprising 
> outcomes!”
>  
> The narrative of human obsolescence, Mr. Gilder says, is giving rise to a 
> belief that the only way forward is to provide redundant citizens with some 
> sort of “guaranteed annual income,” which would mean the end of the market 
> economy: “If everyone gets supported without any kind of growing up and 
> facing the challenges of life, then our capitalist culture would collapse.”
>  
> Mr. Gilder worries deeply about the state of capitalism in America, and 
> President Trump’s adamant focus on the trade gap irks him. “To the extent 
> that the U.S. is the world’s leading capitalist power and welcomes foreign 
> investment, it can’t possibly run a trade surplus.” Mr. Trump “is a 
> politician, and his chief goal is to communicate to the unions in the Midwest 
> that he’s on their side. Besides, it’s a lot easier to blame China than it is 
> to really explain the widespread campaign in the colleges of this country to 
> suppress manufacturing and industry in the United States.”
>  
> As we talk of capitalism and America’s universities, Mr. Gilder sits upright, 
> unable to mask his indignation. “The point is that we didn’t want 
> manufacturing in this country, and we suppressed it. All of our colleges are 
> devoted to stopping things rather than starting them.” The “whole focus” of 
> science in American higher education, he says, is on “the dangers and perils 
> of technology rather than its promise.”
>  
> America’s university system, says Mr. Gilder, is “incredibly corrupt and 
> ideological.” How did it come to be like that? Surely, I observe, it wasn’t 
> that way when he graduated from Harvard in 1962. “It was beginning to get 
> that way,” he says, as he revs his engines for a fresh sortie. “The rise of 
> affluence through the 1960s created this kind of amazing irresponsibility 
> that resulted in a whole generation losing track of reality.”
>  
> The pithy aperçu is Mr. Gilder’s forte. He tells me here that “human beings 
> have a propensity to believe in leftism”—in the idea that government can 
> “answer all of their problems, guarantee their future, and relieve them of 
> the challenges of life.” The idea of a “completely providential government” 
> arose in America, and a “whole generation of young people were given college 
> loans in a fabulous national mistake, in which the Republicans participated.” 
> These loans were used by the university system to “increase perks and tenured 
> luxuries and ideological distractions”—all of which led to the “diversity 
> campaigns and CO2 panics” that currently dominate university faculties.
>  
> The only way to undo this “vast blunder,” says Mr. Gilder, is to forgive 
> student loans across the board and “extract the money from all the college 
> endowments and funds that were used to just create useless departments and 
> political campaigns.” More than $1.5 trillion in student-loan money is 
> outstanding, according to the Federal Reserve. That money, Mr. Gilder says, 
> “wasn’t deployed to improve education. Not a scintilla of evidence has been 
> adduced that learning has been improved. It was used entirely to lavish on 
> bureaucracies that, in turn, paid tribute to government and leftist nihilism.”
>  
> The impact of these loans, and of the academic ecosystem they engendered, has 
> been catastrophic, in Mr. Gilder’s view. “The result was to destroy the 
> entrepreneurial optimism of a whole generation of young people, to drive them 
> toward socialism, which they now tend to favor, and to even dissuade them 
> from marriage.” The last is a consequence of debt, “which cripples them for 
> the future.” Any benefit that education might confer on the young is, in Mr. 
> Gilder’s dark view, nullified by the economic burden inflicted on them, which 
> “leaves these kids impotent in the world.”
>  
> We turn to national politics, and Mr. Gilder reaffirms his view—which he’s 
> expressed often—that Reagan set the gold standard for the modern American 
> presidency. “I hope Trump emulates him,” Mr. Gilder says. “I don’t know 
> Trump, but he beat all my candidates, and he’s got something going for him. 
> He’s a man of action, and I think too much stress is placed on his verbiage.” 
> He credits the president with having “rolled back the climate-change cult in 
> government to some degree. He’s appointing good justices, who can actually 
> see through leftist claims, and he’s dismantling the reach of the 
> administrative state.”
>  
> Although Mr. Gilder is a critic of Google, he disapproves of Mr. Trump’s talk 
> of regulating the search engine—a prospect the president raised in a tweet 
> describing its results as “rigged” against him and possibly “illegal.” This 
> is no time, Mr. Gilder says, “for American conservatives to advocate an 
> expansion of the administrative state into social networks and search 
> engines.” If right-leaning content ranks low on Google, that shows that 
> “conservatives still have a long way to go if they are to prevail in the 
> opinion wars on social media. They cannot expect the government to do it for 
> them.”
>  
> For all the gloom about Silicon Valley that appears to suffuse his new book, 
> Mr. Gilder insists that he’s not a tech-pessimist. “I think technology has 
> fabulous promise,” he says, as he describes blockchain and cryptocurrency as 
> “a new technological revolution that is rising up as we speak.” He says it 
> has generated “a huge efflorescence of peer-to-peer technology and 
> creativity, and new companies.” The decline of initial public offerings in 
> the U.S., he adds, has been “redressed already by the rise of the ICO, the 
> ‘initial coin offering,’ which has raised some $12 billion for several 
> thousand companies in the last year.”
>  
> It is clear that Mr. Gilder is smitten with what he calls “this cryptographic 
> revolution,” and believes that it will heal some of the damage to humanity 
> that has been inflicted by the “machine obsessed” denizens of Silicon Valley. 
> Blockchain “endows individuals with control of their data, their identity, 
> the truths that they want to assert, their transactions, their visions, their 
> content and their security.” Here Mr. Gilder sounds less like a tech guru 
> than a poet, and his words tumble out in a romantic cascade.
> 
> With the cryptographic revolution, he says, “we’re now in charge of our own 
> information. For the first time in history, really, you don’t have to prove 
> who you are, or what you are, before a transaction.” A blockchain allows 
> users “to be anonymous if they wish, while also letting them keep a 
> time-stamped record of all their previous transactions. It allows us to 
> establish unimpeachable facts on the internet.”
>  
> That evokes trust in the internet, “without having to trust or rely on Sergey 
> Brin, Larry Page, Mark Zuckerberg, or whoever the paladins of the new economy 
> may be.” In the age of the almighty machine, Mr. Gilder believes, this is a 
> notable victory for mankind.
>  
> Mr. Varadarajan is a fellow at Stanford University’s Hoover Institution.
>  
>  
>  
>  
>  
> Paul Cameron, Ph.D.
> Chairman, Family Research Institute
> POB 62640
> Colorado Springs, CO 80962
> 303 681 3113
> www.familyresearchinst.org <http://www.familyresearchinst.org/>
> 
> ____________________________________________________________
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