Yet another illustration of why "amateurs study cryptography,
professionals study economics." Cory on the economics of planetary
surveillance.

Udhay

http://www.theguardian.com/technology/2015/mar/10/nsa-gchq-technology-create-social-mobility-spy-on-citizens

Technology should be used to create social mobility – not to spy on citizens

NSA and GCHQ mass surveillance is more about disrupting political
opposition than catching terrorists

Why spy? That’s the several-million pound question, in the wake of the
Snowden revelations. Why would the US continue to wiretap its entire
population, given that the only “terrorism” they caught with it was a
single attempt to send a small amount of money to Al Shabab?

One obvious answer is: because they can. Spying is cheap, and cheaper
every day. Many people have compared NSA/GCHQ mass spying to the
surveillance programme of East Germany’s notorious Stasi, but the
differences between theNSA and the Stasi are more interesting than the
similarities.

The most important difference is size. The Stasi employed one snitch
for every 50 or 60 people it watched. We can’t be sure of the size of
the entire Five Eyes global surveillance workforce, but there are only
about 1.4 million Americans with Top Secret clearance, and many of
them don’t work at or for the NSA, which means that the number is
smaller than that (the other Five Eyes states have much smaller
workforces than the US). This million-ish person workforce keeps six
or seven billion people under surveillance – a ratio approaching
1:10,000. What’s more, the US has only (“only”!) quadrupled its
surveillance budget since the end of the Cold War: tooling up to give
the spies their toys wasn’t all that expensive, compared to the number
of lives that gear lets them pry into.

IT has been responsible for a 2-3 order of magnitude productivity gain
in surveillance efficiency. The Stasi used an army to surveil a
nation; the NSA uses a battalion to surveil a planet.

Spying, especially domestic spying, is an aspect of what the Santa Fe
Institute economist Samuel Bowles calls guard labour: work that is
done to stabilise property relationships, especially the property
belonging to the rich.

The amount a state needs to expend on guard labour is a function of
how much legitimacy the state holds in its population’s reckoning. A
state whose population mainly views the system as fair needs to do
less coercion to attain stability. People who believe that they are
well-served by the status quo will not work to upset it. States whose
populations view the system as illegitimate need to spend more on
guard labour.

It’s easy to see this at work: Bahrain, Saudi Arabia, China and North
Korea spend disproportionate sums on guard labour. Highly
redistributive Nordic states with strong labour laws, steeply
progressive taxation and tenant protection spend less on guard labour.
They attain social stability through the carrot of social programmes,
not the stick of guard labour.

In Capital in the 21st Century, Thomas Piketty uses the wealth
disparity on the eve of the French Revolution as a touchstone for the
moment at which the perception of the state’s illegitimacy goes to
infinity, when even emptying the treasury for guard labour will not
keep the guillotine at bay. Piketty is trying to convince global
elites (or at least the policymakers beholden to them) that it’s
cheaper to submit to a redistributive 1% annual global wealth tax than
it is to buy the guards to sustain our present wealth disparity.

There’s an implied max/min problem here: the intersection of a curve
representing the amount of wealth you need to spend on guards to
maintain stability in the presence of a widening rich/poor gap and the
amount you can save on guards by creating social mobility through
education, health, and social welfare is the point at which you should
stop paying for cops and start paying for hospitals and schools.

This implies that productivity gains in guard labour will make wider
wealth gaps sustainable. When coercion gets cheaper, the point at
which it makes “economic sense” to allow social mobility moves further
along the curve. The evidence for this is in the thing mass
surveillance does best, which is not catching terrorists, but
disrupting legitimate political opposition, from Occupy to the
RCMP’sclassification of “anti-petroleum” activists as a threat to
national security.

Technology also brings productivity gains to social programmes. Basic
sanitation, green revolution crops, cheap material production, and
access to vaccines and mobile internet devices allow states to lift
the desperately poor into a more sustainable existence for less than
ever, affording stability to wealth gaps that might have invoked the
guillotine in previous centuries. The mobile phone is important to
this story, since it’s both a means of raising quality of life –
through access to information and markets – and keeping its users
under close, cheap surveillance.

The neoliberal answer to this is: so what? If the rich can be richer
than ever without the poor having to starve, doesn’t that mean that
the system is working? Boris Johnson’s big cornflakes have been sorted
to the top of the packet, and have produced so much efficiency that
everyone is better off for it, just as market theory predicts.

Even if you think that hereditary dynasties and extreme wealth for the
few and hereditary, extreme poverty for the many is morally fine, the
reality is that extreme wealth concentration distorts policy. We want
policy to reflect the best available evidence, but when legislators
are drawn from, and beholden to, a tiny ruling elite, they can only
make evidence-based policy to the extent that the evidence doesn’t
inconvenience rich people.

It’s obvious that excluding 52% of the population from public life is
bad for the economy in Saudi Arabia. It’s obvious that Canada, a
country characterised by huge wilderness and resource-extraction, is
in terrible danger from climate change and that it’s madness for its
oil-backed Tory government to dismantle its world-class climate and
environment science infrastructure, literally setting fire to the
archives.

It’s obvious that the finance sector is corrupt to the highest levels,
and that the City is the heart of a vast criminal enterprise. It’s
obvious that homeopathy is bunk, even if Prince Charles likes it.

And so on. A state that is beholden to a small number of people is
also beholden to that elite’s sacred cows. It is incompatible with
evidence-based policy.

Why spy? Because it’s cheaper than playing fair. Our networks have
given the edge to the elites, and unless we seize the means of
information, we are headed for a long age of IT-powered feudalism,
where property is the exclusive domain of the super-rich, where your
surveillance-supercharged Internet of Things treats you as a
tenant-farmer of your life, subject to a licence agreement instead of
a constitution.

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((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com))

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