WATCH: Teen Behind ‘Deez Nuts’ Gives First Interview

MEDIA

…Offers More Nuanced Views than GOP Field

This kid would definitely be a better choice than Donald Trump.
The 15-year-old behind the Internet sensation “Deez Nuts”, Brady Olson, has given his first sit-down interview with a local affiliate KTIV’s Sam Curtiss and has some rather refreshing views for a teenage troll.

“Hopefully, [my joke] paved the way for more than a two party system,” Olson said earnestly. “In Canada they had a debate for the Prime Minister election and they used a four-party debate.” He supports voting rights in overseas territories and his position on immigration, while quite reactionary, is light-years more nuanced than any of the GOP field, especially hothead and proto-fascist Donald Trump.

Though he supports a “wall to keep out” undocumented workers he also supports creating a pathway to citizenship for the ones who are already here.

Why should we care about the political positions of a 15-year-old troll? We shouldn’t really, except that when a random practical joking kid from Iowa is making more sense than most of the GOP field, it should serve as a stark reminder of how far gone the party has become.

Watch the clip below:

Adam Johnson is an associate editor at AlterNet. Follow him on Twitter at@adamjohnsonnyc.

When Big Data Becomes Bad Data

Corporations are increasingly relying on algorithms to make business decisions and that raises new legal questions.

Protesters participate in the March on Washington for Jobs and Freedom in 1963. Among the visible signs are those advocating for equal rights, integrated schools, fair housing and fair employment. (Marion S Trikosko/PhotoQuest/Getty)

A recent ProPublica analysis of The Princeton Review’s prices for online SAT tutoring shows that customers in areas with a high density of Asian residents are often charged more. When presented with this finding, The Princeton Review called it an “incidental” result of its geographic pricing scheme. The case illustrates how even a seemingly neutral price model could potentially lead to inadvertent bias — bias that’s hard for consumers to detect and even harder to challenge or prove.

Over the past several decades, an important tool for assessing and addressing discrimination has been the “disparate impact” theory. Attorneys have used this idea to successfully challenge policies that have a discriminatory effect on certain groups of people, whether or not the entity that crafted the policy was motivated by an intent to discriminate. It’s been deployed in lawsuits involving employment decisions, housing and credit. Going forward, the question is whether the theory can be applied to bias that results from new technologies that use algorithms.

Asians Are Nearly Twice as Likely to Get a Higher Price from The Princeton Review

One unexpected effect of the company’s geographic approach to pricing is that Asians are almost twice as likely to be offered a higher price than non-Asians, an analysis by ProPublica shows. Read the story.

The term “disparate impact” was first used in the 1971 Supreme Court case Griggs v. Duke Power Company. The Court ruled that, under Title VII of the Civil Rights Act, it was illegal for the company to use intelligence test scores and high school diplomas — factors which were shown to disproportionately favor white applicants and substantially disqualify people of color — to make hiring or promotion decisions, whether or not the company intended the tests to discriminate. A key aspect of the Griggs decision was that the power company couldn’t prove their intelligence tests or diploma requirements were actually relevant to the jobs they were hiring for.

In the years since, several disparate impact cases have made their way to the Supreme Court and lowercourts, most having to do with employment discrimination. This June, the Supreme Court’s decision in Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc. affirmed the use of the disparate impact theory to fight housing discrimination. The Inclusive Communities Project had used a statistical analysis of housing patterns to show that a tax credit program effectively segregated Texans by race. Sorelle Friedler, a computer science researcher at Haverford College and a fellow at Data & Society, called the Court’s decision “huge,” both “in favor of civil rights…and in favor of statistics.”

So how will the courts address algorithmic bias? From retail to real estate, from employment to criminal justice, the use of data mining, scoring software and predictive analytics programs is proliferating at an exponential rate. Software that makes decisions based on data like a person’s ZIP code can reflect, or even amplify, the results of historical or institutional discrimination.“[A]n algorithm is only as good as the data it works with,” Solon Barocas and Andrew Selbst write in their article “Big Data’s Disparate Impact,” forthcoming in the California Law Review. “Even in situations where data miners are extremely careful, they can still affect discriminatory results with models that, quite unintentionally, pick out proxy variables for protected classes.”

It’s troubling enough when Flickr’s auto-tagging of online photos label pictures of black men as “animal” or “ape,” or when researchers determine that Google search results for black-sounding names are more likely to be accompanied by ads about criminal activity than search results for white-sounding names. But what about when big data is used to determine a person’s credit score, ability to get hired, or even the length of a prison sentence?

Because disparate impact theory is results-oriented, it would seem to be a good way to challenge algorithmic bias in court. A plaintiff would only need to demonstrate bias in the results, without having to prove that a program was conceived with bias as its goal. But there is little legal precedent. Barocas and Selbst argue in their article that expanding disparate impact theory to challenge discriminatory data-mining in court “will be difficult technically, difficult legally, and difficult politically.”

Some researchers argue that it makes more sense to design systems from the start in a more considered and discrimination-conscious way. Barocas and Moritz Hardtestablished a traveling workshop called Fairness and Transparency in Machine Learningto encourage other computer scientists to do just that. Some of their fellow organizers are also developing tools they hope companies and government agencies could use to test whether their algorithms yield discriminatory results and to fix them when necessary. Some legal scholars (including the University of Maryland’s Danielle Keats Citron andFrank Pasquale) argue for the creation of new regulations or even regulatory bodies to govern the algorithms that make increasingly important decisions in our lives.

There still exists “a large legal difference between whether there is explicit legal discrimination or implicit discrimination,” said Friedler, the computer science researcher. “My opinion is that, because more decisions are being made by algorithms, that these distinctions are being blurred.”

 

http://www.propublica.org/article/when-big-data-becomes-bad-data?utm_source=et&utm_medium=email&utm_campaign=dailynewsletter&utm_content=&utm_name=

Is Silicon Valley in Another Bubble . . . and What Could Burst It?

CITY BY THE FROTH
In the U.S. alone, nearly 100 tech start-ups are currently considered unicorns.
Photo Illustration by Sean McCabe.
With the tech industry awash in cash and 100 “unicorn” start-ups now valued at $1 billion or more, Silicon Valley can’t escape the question. Nick Bilton reports.
One Thursday morning in early June, the ballroom of the Rosewood Sand Hill hotel, in Menlo Park, was closed for a private presentation. The grand banquet hall appeared worthy of the sprawling resort’s five-star designation: ornate chandeliers hung from the ceiling; silk panels with a silver stenciled design covered the walls. Behind a stage in the 2,800-square-foot room, a large sign bore the name of Andreessen Horowitz, one of Silicon Valley’s most revered venture-capital firms.As breakfast and coffee were offered, the company’s partners mingled with the men and women who endow their $1.5 billion fund. The investors were dressed invariably in business casual, with the top button of their dress shirts noticeably undone. (A mere handful of men stood out in a suit and tie.) Off in the distance, you could make out the faint purr of Bentleys and Teslas ferrying along Sand Hill Road, depositing the Valley’s other top V.C.’s at their respective offices—Greylock Partners, Draper Fisher Jurvetson, and Sequoia Capital, to name just a few—for another day of meetings with founders, reviewing the decks of new start-ups, and searching for the next can’t-miss company.

After some chitchat (Mitt Romney had addressed the group the previous night), Scott Kupor, a managing partner, took the stage to tell the assembled investors what was going on with their money. A16z, as the firm is commonly known in the Valley, had invested hundreds of millions of dollars in some of the industry’s biggest companies—Instagram, Facebook, Box, Twitter, and Oculus VR—along with a number of upstarts, such as Instacart, a grocery-delivery business that had been recently valued at about $2 billion. After the guests found their seats, Kupor began moving through a series of slides depicting the past and present of the tech sector, using data that would help inform the firm’s investments in the future. Each set of numbers had been meticulously researched and culled from sources that included Capital IQ, Bloomberg, and the National Venture Capital Association.

Yet the presentation, which adhered to a16z’s gray-and-deep-orange palette, seemed to have an ulterior motive. Kupor, his hair neatly parted, was eager to assuage any worry about the existence of a tech bubble. While he conceded that there were some eerie similarities with the infamous dot-com bubble of 1999—such as the preponderance of so-called unicorns, or tech start-ups valued at $1 billion and upward—Kupor confidently buoyed his audience with slides that read, “It’s different this time,” and charts highlighting the decrease in tech I.P.O.’s, the metric that eventually pierced the froth in March of 2000. Back then, a company went public almost every single day; now it was down to about once per week. This time around, he noted, the money was flowing backward. Rather than entering a company’s coffers in the public markets, it was making its way to start-ups in late-stage investments. There was little, he suggested, to worry about.

And then, toward the end of his reassuring soliloquy, the ANDREESSEN HOROWITZ sign fell from the wall and landed on the floor with an ominous thud. As the investors looked on, some partners in the Rosewood ballroom laughed awkwardly. Others did not seem so amused.

KIM JONG UN VS. HITLER

While the rest of the country has spent the past year debating gay marriage, policing tactics, Obamacare, and Deflate-gate, the inescapable topic of discussion in Silicon Valley is whether we are in a technology bubble. Marc Andreessen, the co-founder of his eponymous venture firm, is perhaps the leading advocate against the bubble chatter. On his Twitter feed, he has referenced the word “bubble” more than 300 times, repeatedly mocking or refuting anyone on his radar who even hints at such a possibility. One of his arguments, as the slides in the Rosewood ballroom suggested, is the exponential growth of mobile phones, which have fundamentally changed the way we buy and sell virtually everything, from groceries to taxi-like services, and created unprecedented disruption. Also, in contrast to the days of the dot-com boom, many tech companies are creating revenue—in some instances, lots of it.Andreessen’s points are all valid, but the bubble chatter is still impossible to quell, in part, because the signs are increasingly ubiquitous. When I moved to the Bay Area to cover the tech industry for The New York Times,in the summer of 2011, the Valley was still reeling from the bursting of the last bubble, which led to more than $6 trillion in losses, and sent the NASDAQ on a downward spiral similar to the Dow’s amid the Wall Street crash of 1929. In 2000, some start-up C.E.O.’s lost millions of dollars in a matter of hours. Others saw their entire net worth fall to zero in months. People vanished; commuting times were sawed in half; private investment ossified. At the time I arrived, LinkedIn was the only publicly traded social-media company. A little-known upstart with a catchy name, Uber, had just raised a seemingly staggering amount ($11 million) in venture capital. Postmates, Tinder, Instacart, Lyft, and Slack didn’t exist. Silicon Valley was an actual place, not an HBO show.

But within months I noticed that private money was returning and a cavalcade of start-ups were reshaping the city in their image. Engineers from companies I hadn’t yet heard of began showing up at open houses with checks written out to cover rent for the first few months (a recruiting perk, I later learned). I attended a jungle-themed Halloween extravaganza featuring acrobats, a 600-pound tiger, and other wild animals in order to bolster photo moments that people were posting on a hot new start-up, Instagram. Meanwhile, I was pitched countless apps to find a parking space, or messaging services to tell someone that you are running late. The founders told me their companies were worth tens of millions of dollars. When I asked for their logic, they looked at me as though I were the crazy one. Shortly after the Facebook I.P.O., I learned about a secret group within the social-network company called “T.N.R. 250”; it was an abbreviation of “The Nouveau Riche 250,” comprising Facebook’s first 250 employees, many of whom had become multi-millionaires. The members of T.N.R. 250 privately discussed things they wanted to buy with their windfall, including boats, planes, Banksy portraits, and even tropical islands.

Whenever I even suggested the word “bubble” in my reporting, I became a punching bag. After I scrutinized the ethics (and preposterous valuation) of Path, an ill-fated social network, Michael Arrington, once a nexus of power in Silicon Valley who had invested in the start-up, called me a “pit bull” and said I wasn’t a very noble person. But lately the worries have spread. There are now fast approaching 100 unicorns based in the U.S. alone, and counting. The NASDAQ recently closed at an all-time high, surpassing a record set right before the dot-com crash in 2000. The Shiller P/E ratio, a measure of the ratio of price to earnings, has a number of investors worrying, with The Wall Street Journal noting that it shows stocks are “frothy.”

Lately, in fact, even some of the most aggressive V.C.’s have cowered. Not long after the Andreessen Horowitz presentation, Roger McNamee, co-founder of the private-equity firm Elevation Partners, told CNBC, “We are going to have a correction one of these days.” Bill Gurley, a partner at Benchmark Capital and Andreessen’s nemesis (“my Newman,” as he recently put it, referring to the Seinfeld character), echoed this sentiment on Twitter, venture capitalists’ preferred platform of communication. (Many are staked in it.) “Arguing we aren’t in a bubble because it’s not as bad as 1999,” Gurley tweeted, “is like saying that Kim Jong-un is fine because he’s not as bad as Hitler.” (Gurley declined to comment for this story.)CONTINUED:

http://www.vanityfair.com/news/2015/08/is-silicon-valley-in-another-bubble

New York cops spied on activists against police violence

Nypd

By Sandy English
29 August 2015

A report published last week in Glenn Greenwald’s Intercept has revealed that police spied and exchanged information on activists who led protests against police violence last winter in New York City.

The spying was conducted by a special counterterrorism squad from police working for the New York Metropolitan Transportation Authority (MTA) and the Intelligence Division of the New York Police Department (NYPD).

The protests erupted after the refusal of a grand jury to indict NYPD officer Daniel Pantaleo for the murder of Eric Garner. Pantaleo was videotaped strangling Garner during a targeted arrest for allegedly selling tax-free cigarettes in the borough of Staten Island on July 17 last year.

As he lay on the ground, Garner told police officers on the scene several times that he could not breathe. He was given no first aid and was pronounced dead at the hospital. His death was later ruled a homicide by the city coroner’s office.

Activists obtained 118 pages of police reports from the MTA and 161 pages from the Metro North Railroad through New York’s Freedom of Information Law. The documents cover protests that took place from December 2014 to February 2015 in Grand Central Station in Manhattan where the MTA police have jurisdiction. A number of protests in the timeline occurred there.

The NYPD has not released any documents, but those that have been supplied reveal an information exchange between the NYPD and the MTA police, and the presence of both NYPD as well as MTA undercover officers at the protests.

Police tracked demonstrators as they were moving around Grand Central Station and in the city and identified specific individuals among the demonstrators. One undercover officer sent frequent email updates on the activities of protesters at the station during a protest on Martin Luther King Day in January. These included notice of the presence of Jose LaSalle, a founder of CopWatch Patrol Unit, in an email that includes his photograph.

Another email chain from December includes a chart of upcoming protests, including one organized by high-school students.

It is worth noting that some of the police spying occurred after Democratic Mayor Bill de Blasio called for a halt to the protests against police violence in the aftermath of the shooting death of two NYPD officers in Brooklyn on December 20 by a deranged gunman, although the documents indicate that surveillance of protesters also took place before de Blasio’s plea.

The political atmosphere during the first half of December in New York City was one of intensifying anger at police violence, particularly over the Garner case, but also including the dozens of police shootings in the city over the past decade, as well as the shooting of Michael Brown in Ferguson, Missouri and the refusal in November of a grand jury to indict his killer, Officer Darren Wilson.

During the period from December 4 to December 15, large demonstrations against police violence took place throughout the city, some of them partly spontaneous, with tens of thousands of workers and youth protesting in Washington Square Park on December 15.

After the December 20 shooting, however, elements of the state apparatus attempted to go on a counteroffensive. Police union officials claimed that de Blasio had blood on his hands for his supposed tolerance of anti-police-violence protests, and the NYPD staged a near-mutiny when cops turned their backs on de Blasio on several occasions in what became a political mobilization of the police. Over the next few weeks, NYPD officers then performed a systematic slowdown in arrests and citations for minor crimes across the city.

While police surveillance and intimidation of protesters during this period were undoubtedly intensified, these practices certainly did not begin from scratch. Spying on protesters in New York City who have not broken the law and represent no threat to public safety is the modus operandi of the NYPD and other state agencies, including the FBI and the Department of Homeland Security.

The NYPD has a long and well-documented history of spying on and harassing Muslims in the aftermath of the terrorist attacks of September 11, 2001. More recently New York cops have video-recorded, photographed, followed and intimidated nonviolent protesters, such as those involved in the 2011 Occupy Wall Street protests in Zuccotti Park in Lower Manhattan. The NYPD also subjected these protesters to beatings, pepper spraying and the use of LRAD sound cannons. One of the most egregious state attacks on protesters’ democratic rights was the frame-up of organizer Cecily MacMillan in 2014.

There can be little doubt that the documents published by the Intercept are only the tip of an iceberg of sustained and extensive surveillance of organizers of and participants in protests against police violence, not only in New York City, but throughout the United States.

 

http://www.wsws.org/en/articles/2015/08/29/poli-a29.html

Why the Rich Love Burning Man

Burning Man became a festival that rich libertarians love because it never had a radical critique at its core.

burning-man

In principle the annual Burning Man festival sounds a bit like a socialist utopia: bring thousands of people to an empty desert to create an alternative society. Ban money and advertisements and make it a gift economy. Encourage members to bring the necessary ingredients of this new world with them, according to their ability.

Introduce “radical inclusion,” “radical self-expression,” and “decommodification” as tenets, and designate the alternative society as a free space, where sex and gender boundaries are fluid and meant to be transgressed.

These ideas — the essence of Burning Man — are certainly appealing.

Yet capitalists also unironically love Burning Man, and to anyone who has followed the recent history of Burning Man, the idea that it is at all anticapitalist seems absurd: last year, a venture capitalist billionaire threw a $16,500-per-head party at the festival, his camp a hyper-exclusive affair replete with wristbands and models flown in to keep the guests company.

Burning Man is earning a reputation as a “networking event” among Silicon Valley techies, and tech magazines now send reporters to cover it. CEOs like Mark Zuckerberg of Facebook and Larry Page of Alphabet are foaming fans, along with conservative anti-tax icon Grover Norquist and many writers of the libertarian (and Koch-funded) Reason magazine. Tesla CEO Elon Musk even went so far as to claim that Burning Man “is Silicon Valley.”

Radical Self-Expression

The weeklong Burning Man festival takes place once a year over Labor Day weekend in a remote alkali flat in northwestern Nevada. Two hours north of Reno, the inhospitable Black Rock Desert seems a poor place to create a temporary sixty-thousand-person city — and yet that’s entirely the point. On the desert playa, an alien world is created and then dismantled within the span of a month. The festival culminates with the deliberate burning of a symbolic effigy, the titular “man,” a wooden sculpture around a hundred feet tall.

Burning Man grew from unpretentious origins: a group of artists and hippies came together to burn an effigy at Baker Beach in San Francisco, and in 1990 set out to have the same festival in a place where the cops wouldn’t hassle them about unlicensed pyrotechnics. The search led them to the Black Rock Desert.

Burning Man is very much a descendent of the counterculture San Francisco of yesteryear, and possesses the same sort of libertine, nudity-positive spirit. Some of the early organizers of the festival professed particular admiration for the Situationists, the group of French leftists whose manifestos and graffitied slogans like “Never Work” became icons of the May 1968 upsurge in France.

Though the Situationists were always a bit ideologically opaque, one of their core beliefs was that cities had become oppressive slabs of consumption and labor, and needed to be reimagined as places of play and revolt. Hence, much of their art involved cutting up and reassembling maps, and consuming intoxicants while wandering about in Paris.

You can feel traces of the Situationists when walking through Black Rock City, Burning Man’s ephemeral village. Though Black Rock City resembles a city in some sense, with a circular dirt street grid oriented around the “man” sculpture, in another sense it is completely surreal: people walk half-naked in furs and glitter, art cars shaped like ships or dragons pump house music as they purr down the street.

Like a real city, Burning Man has bars, restaurants, clubs, and theaters, but they are all brought by participants because everyone is required to “bring something”:

The people who attend Burning Man are no mere “attendees,” but rather active participants in every sense of the word: they create the city, the interaction, the art, the performance and ultimately the “experience.” Participation is at the very core of Burning Man.

Participation sounds egalitarian, but it leads to some interesting contradictions. The most elaborate camps and spectacles tend to be brought by the rich because they have the time, the money, or both, to do so. Wealthier attendees often pay laborers to build and plan their own massive (and often exclusive) camps. If you scan San Francisco’s Craigslist in the month of August, you’ll start to see ads for part-time service labor gigs to plump the metaphorical pillows of wealthy Burners.

The rich also hire sherpas to guide them around the festival and wait on them at the camp. Some burners derogatorily refer to these rich person camps as “turnkey camps.

Silicon Valley’s adoration of Burning Man goes back a long way, and tech workers have always been fans of the festival. But it hasn’t always been the provenance of billionaires — in the early days, it was a free festival with a cluster of pitched tents, weird art, and explosives; but as the years went on, more exclusive, turnkey camps appeared and increased in step with the ticket price — which went from $35 in 1994 to $390 in 2015 (about sixteen times the rate of inflation).

Black Rock City has had its own FAA-licensed airport since 2000, and it’s been getting much busier. These days you can even get from San Carlos in Silicon Valley to the festival for $1500. In 2012, Mark Zuckerberg flew into Burning Man on a private helicopter, staying for just one day, to eat and serve artisanal grilled cheese sandwiches. From the New York Times:

“We used to have R.V.s and precooked meals,” said a man who attends Burning Man with a group of Silicon Valley entrepreneurs. (He asked not to be named so as not to jeopardize those relationships.) “Now, we have the craziest chefs in the world and people who build yurts for us that have beds and air-conditioning.” He added with a sense of amazement, “Yes, air-conditioning in the middle of the desert!”

The growing presence of the elite in Burning Man is not just noticed by outsiders — long-time attendees grumble that Burning Man has become “gentrified.” Commenting on the New York Times piece, burners express dismay at attendees who do no work. “Paying people to come and take care of you and build for you . . . and clean up after you . . . those people missed the point.”

Many Burners seethed after reading one woman’s first-person account of how she was exploited while working at the $17,000-per-head camp of venture capitalist Jim Tananbaum. In her account, she documented the many ways in which Tananbaum violated the principles of the festival, maintaining “VIP status” by making events and art cars private and flipping out on one of his hired artists.

Tananbaum’s workers were paid a flat $180 a day with no overtime, but the anonymous whistleblower attests that she and others worked fifteen- to twenty-hour days during the festival.

The emergent class divides of Burning Man attendees is borne out by data: the Burning Man census (yes, they have a census, just like a real nation-state) showed that from 2010 to 2014, the number of attendees who make more than $300,000 a year doubled from 1.4% to 2.7%. This number is especially significant given the outsize presence 1 percenters command at Burning Man.

In a just, democratic society, everyone has equal voice. At Burning Man everyone is invited to participate, but the people who have the most money decide what kind of society Burning Man will be — they commission artists of their choice and build to their own whims. They also determine how generous they are feeling, and whether to withhold money.

It might seem silly to quibble over the lack of democracy in the “governance” of Black Rock City. After all, why should we care whether Jeff Bezos has commissioned a giant metal unicorn or a giant metal pirate ship, or whether Tananbaum wants to spend $2 million on an air-conditioned camp? But the principles of these tech scions — that societies are created through charity, and that the true “world-builders” are the rich and privileged — don’t just play out in the Burning Man fantasy world. They carry over into the real world, often with less-than-positive results.

Remember when Facebook CEO Mark Zuckerberg decided to help “fix” Newark’s public schools? In 2010, Zuckerberg — perhaps hoping to improve his image after his callous depiction in biopic The Social Network donated $100 million to Newark’s education system to overhaul Newark schools.

The money was directed as a part of then–Newark Mayor Cory Booker’s plan to remake the city into the “charter school capital of the nation,” bypassing public oversight through partnership with private philanthropists.

Traditionally, public education has been interwoven with the democratic process: in a given school district, the community elects the school board every few years. School boards then make public decisions and deliberations. Zuckerberg’s donation, and the project it was attached to, directly undermined this democratic process by promoting an agenda to privatize public schools, destroy local unions, disempower teachers, and put the reins of public education into the hands of technocrats and profiteers.

This might seem like an unrelated tangent — after all, Burning Man is supposed to be a fun, liberating world all its own. But it isn’t. The top-down, do what you want, radically express yourself and fuck everyone else worldview is precisely why Burning Man is so appealing to the Silicon Valley technocratic scions.

To these young tech workers — mostly white, mostly men — who flock to the festival, Burning Man reinforces and fosters the idea that they can remake the world without anyone else’s input. It’s a rabid libertarian fantasy. It fluffs their egos and tells them that they have the power and right to make society for all of us, to determine how things should be.

This is the dark heart of Burning Man, the reason that high-powered capitalists — and especially capitalist libertarians — love Burning Man so much. It heralds their ideal world: one where vague notions of participation replace real democracy, and the only form of taxation is self-imposed charity. Recall Whole Foods CEO John Mackey’s op-ed, in the wake of the Obamacare announcement, in which he proposed a healthcare system reliant on “voluntary, tax-deductible donations.”

This is the dream of libertarians and the 1 percent, and it reifies itself at Burning Man — the lower caste of Burners who want to partake in the festival are dependent on the whims and fantasies of the wealthy to create Black Rock City.

Burning Man foreshadows a future social model that is particularly appealing to the wealthy: a libertarian oligarchy, where people of all classes and identities coexist, yet social welfare and the commons exist solely on a charitable basis.

Of course, the wealthy can afford more, both in lodging and in what they “bring” to the table: so at Burning Man, those with more money, who can bring more in terms of participation, labor and charity, are celebrated more.

It is a society that we find ourselves moving closer towards the other 358 (non–Burning Man) days of the year: with a decaying social welfare state, more and more public amenities exist only as the result of the hyper-wealthy donating them. But when the commons are donated by the wealthy, rather than guaranteed by membership in society, the democratic component of civic society is vastly diminished and placed in the hands of the elite few who gained their wealth by using their influence to cut taxes and gut the social welfare state in the first place.

It’s much like how in my former home of Pittsburgh, the library system is named for Andrew Carnegie, who donated a portion of the initial funds. But the donated money was not earned by Carnegie; it trickled up from his workers’ backs, many of them suffering from overwork and illness caused by his steel factories’ pollution. The real social cost of charitable giving is the forgotten labor that builds it and the destructive effects that flow from it.

At Burning Man the 1 percenters — who have earned their money in the same way that Carnegie did so long ago — show up with an army of service laborers, yet they take the credit for what they’ve “brought.”

Burning Man’s tagline and central principle is radical self-expression:

Radical self-expression arises from the unique gifts of the individual. No one other than the individual or a collaborating group can determine its content. It is offered as a gift to others. In this spirit, the giver should respect the rights and liberties of the recipient.

The root of Burning Man’s degeneration may lie in the concept itself. Indeed, the idea of radical self-expression is, at least under the constraints of capitalism, a right-wing, Randian ideal, and could easily be the core motto of any of the large social media companies in Silicon Valley, who profit from people investing unpaid labor into cultivating their digital representations.

It is in their interest that we are as self-interested as possible, since the more we obsess over our digital identity, the more personal information of ours they can mine and sell. Little wonder that the founders of these companies have found their home on the playa.

It doesn’t seem like Burning Man can ever be salvaged, or taken back from the rich power-brokers who’ve come to adore it and now populate its board of directors. It became a festival that rich libertarians love because it never had a radical critique at its core; and, without any semblance of democracy, it could easily be controlled by those with influence, power, and wealth.

Burning Man will be remembered more as the model for Google CEO Larry Page’s dream of a libertarian state, than as the revolutionary Situationist space that it could have been.

As such, it is a cautionary tale for radicals and utopianists. When “freedom” and “inclusion” are disconnected from democracy, they often lead to elitism and reinforcement of the status quo.

 

https://www.jacobinmag.com/2015/08/burning-man-one-percent-silicon-valley-tech/

How Colleges Train For Work, Not For Thought

Prof. Larry Wilkerson discusses the role universities play in prepping a work force rather than an intellectual force.

JARED BALL, PRODUCER, TRNN: Welcome, everyone, back to the Real News Network. I’m Jared Ball here in Baltimore.

While leading Democratic party politicians are now hawking new plans for a debt-free college experience, which of course sounds great to what are now the most indebted college graduates in world history, there are still some concerned about the kind of education even those not having to pay at all would receive. In a recent article for Harper’s magazine William Deresiewicz describes a situation where, as he says, colleges have sold their soul to the market.

To discuss this is Larry Wilkerson, former chief of staff to Colin Powell and a professor at the College of William and Mary. We welcome back Col. Wilkerson to the Real News. Welcome back.

LARRY WILKERSON, FMR. CHIEF OF STAFF TO COLIN POWELL: Thanks, Jared. Good to be with you.BALL: So tell us what you think about this article. It suggests that neoliberalism has taken hold, and the designs of the corporate world are all that most universities are being encouraged, at least, to be concerned about. What do you see is the problem here with this trend?

WILKERSON: This is an age-old problem, as you probably know. It goes way back in the life of universities, certainly argued majorly in or on campuses like Oxford University, Cambridge University in England, and other, older schools. It is typified by on the one side the humanists, the exponents of liberal arts, of teaching young men and young women how to think critically as opposed to skills enhancement and training, and those on the other side of the argument exemplified at that time by the Huxley brothers, scientists, by those who reflect what we’re talking about today when we say STEM, science, technology, engineering and so forth.

And what is increasingly becoming the case, and I think is the real object of the article in Harper’s and others who are talking about this in great detail today, and that is the predatory capitalist state, which is what we have become in addition to being a national security state. That predatory capitalist state wants, one, workers who are not going to question things. That is to say, they can’t think critically. And it wants people who are more or less inured to what they produce, do, and mean in daily existence. That is to say, they want workers who are compliant with the structure that we’ve created in this country, the structure that works for minimum wages, that does things that need to be done for the corporate good, and so forth.

It’s a meaner argument, if you will, today. I can give the Huxley brothers their due, as they argued for example with John Henry Cardinal Newman about whether a liberal arts education or a science-based education was the best. And like Plato and Aristotle I would probably argue that somewhere in between is probably the best kind of education. That is to say, you need scientists who can think critically too, and therefore be good voters and so forth, and you need humanists that know something, liberal arts people who know something about science, engineering, math, and so forth. That’s the ideal world.

What you do not need is colleges and universities that are focused on getting jobs for people, and getting jobs in a society that is increasingly plutocratic, that is to say, the only people with the really good jobs are at the very top, and everybody else is a worker bee for those people. That’s what these colleges and universities are tending towards now, and that’s what the advertisements, that’s what the brouhaha in U.S. News and World Report and other places like that is all about. Oh, you’re spending $200,000 for Jane’s education. Then Jane needs to get a job, and she doesn’t need an education. What she needs is training and skills enhancement. Well, that’s not the purpose of a university.

BALL: But this sounds like, to me at least, that this is an expansion, as you said, of a much longer existing problem. That is, that for many, that is for working whites, for poor working whites in this country and certainly for African-descended people and indigenous people, there has long been a history of teaching those communities only to be part of the workforce. That is, with Native American residential schools, with the industrial schools of the 19th century for African-Americans, for the establishment of a public school system in this country in general that was designed specifically to prepare white working people for their roles in society, that this has long been an issue.

So how is this discussion, other than upping it, so to speak, into the upper echelons of society, how is this a change in terms of the history of this country’s education, generally speaking?

WILKERSON: It’s not a change in the sense that you just expressed it, that it has all this complexity, all this nuance and all these different parts to it. For example, there is the part of minority education, the part of minorities being shorted for 400 years, still being shorted. I worked in the DC public school system, for example, for Colin Powell for ten years. It is for all intents and purposes I was segregated when I worked in it as it was in 1850, if it existed at that time. I mean this is no, nothing news to people who’ve worked in inner city schools, that minorities get short shrift when it comes to education.

But this is a bigger argument. It’s a huge argument at the very top of what you might call the sophistication of education argument. And it is first of all, should everyone get a university education, well, I for one, I’m talking about. The answer to that question is no. no matter how egalitarian you may be, everyone in the world does not need to be a philosopher, does not need to be a Ph.D in nuclear physics, and so forth. They don’t have the intellectual capacity, and frankly–and this is more important–they don’t have the inclination.

There are plenty of people that ought to run automotive repair shops, ought to be tradesmen and craftsmen and so forth. And we’ve sort of lost that in this culture today because what we are is a finance giant. We service people, we finance things. We don’t do any real making of anything anymore. But there is a niche, a huge niche in our society for artisans. For craftsmen. For people who by their own wishes don’t want what I’m talking about when I say a university education. And in many cases, aren’t intellectually equipped for it.

So that’s the first division you have to make, and you do have to make that division. We’ve been very [inaud.] by allowing the market to make that division, which is why we get so many idiots who are billionaires, and so many bright people who are not making any money at all. It’s a hypocritical stance in this country that we take on merit and education, and so forth.

But back to the argument, the university takes in people who are intellectually, mentally predisposed to and want to be critical thinkers. That’s not everybody in society. I daresay if a study were done, and it were done over time, you’d probably find 30-40 percent of any given society that really ought to have a university education of the type I’m talking about. Other types of education that mostly community colleges can offer, that are in fact sort of a combination of what I mean by education and what I mean by skills enhancement that are aimed at particular niches in society for example, computer training being the latest example of that on a broad base, ought to be done also. But this is a sort of combination of the university and the artisan segments of society.

The Germans do this really well. They have trade schools and they have universities. And they know everyone’s not going to university, by inclination or by capability. So they identify those people and send those people to university. Those who want trades and good jobs in trades, like working at Mercedes or BMW or whatever, they then send to trade school. Because they want to go to trade school, and because they have intellectual and other capacity to do that. This is the way education should be divided in this country. But hypocrites that we are, hypocrites that we’ve always been, we say everyone should have a $250,000 or more university education. That’s pure poppycock.

BALL: Larry Wilkerson, thanks again for joining us here at the Real News.

WILKERSON: Thanks for having me on, Jared.

BALL: And thank you for joining us here at the Real News. For everyone involved, again, I’m Jared Ball here in Baltimore. And as always, as Fred Hampton used to say, to you we say peace if you’re willing to fight for it. So peace everybody, and we’ll catch you in the whirlwind.

 

Jared A. Ball is the author of “I MiX What I Like: A MiXtape Manifesto” (AK Press, 2011) and co-editor of “A Lie of Reinvention: Correcting Manning Marable’s Malcolm X” (Black Classic Press, 2012). Ball is an associate professor of communication studies at Morgan State University in Baltimore, Maryland and can be found online at IMixWhatILike.org.

 

http://www.alternet.org/education/how-colleges-train-work-not-thought?akid=13408.265072.1tPeuq&rd=1&src=newsletter1041316&t=16

Puerto Rico: a US debt colony hounded by hedge funds

By Jerome Roos On August 21, 2015

Post image for Puerto Rico: a US debt colony hounded by hedge fundsWhy was Puerto Rico allowed to default while Greece was not? Just follow the money: the default was on the poor, while US hedge funds profit once more.

Photo by Alvin J. Báez

On August 1, Puerto Rico defaulted on part of its enormous $72 billion debt, paying back only $628,000 on a $58 million loan that was due at the start of the month. The default, which marks the most serious credit event in US state and municipal bond markets since the city of Detroit filed for bankruptcy in 2013, has led many to draw obvious comparisons to Greece – and understandably so.

Like Greece, Puerto Rico has been mired in a protracted recession that has seen unemployment rise, living standards fall and countless people leave their homeland in search of better life opportunities abroad. Like Greece, Puerto Rico is buckling under an unsustainable debt load that its leaders claim “cannot be paid.” And like Greece, Puerto Rico is effectively a ward of the larger union of which it is a part: Greece of the Eurozone and Puerto Rico of the United States.

But for all these obvious similarities, there is one puzzling difference: while Puerto Rico was allowed to default on its debts without drawing much ire – or interest – from the US government, Greece has not been able to do the same. Why was Puerto Rico allowed to default while Greece was not? The answer is simple: first follow the rules, then follow the money – and you will see.

When it comes to the rules, part of the answer surely lies in the peculiar institutional arrangement Puerto Rico finds itself in. As a commonwealth – or ade facto colony – of the United States, Puerto Rico and its public corporations can neither turn to the IMF for a bailout loan, as nominally “sovereign” nations like Greece and Portugal have done in recent years, nor file for Chapter 9 bankruptcy in the US, as state municipalities like Detroit and Stockton, CA. have.

The result is to leave the country in a sort of legal and financial limbo from which the only possible escape is either a bailout from the federal government or a unilateral suspension of payments on the debt. Since the former does not appear to be forthcoming (at least not for now), the latter has become all but inevitable. Experts widely believe further missed payments are still ahead.

When it comes to the money, however, we encounter the real reason why the US creditors have been so reluctant to intervene: because Puerto Rico basically just defaulted on its own people. The non-payment of August 1 was strictly limited to bonds held by the Public Finance Corporation, in which almost 900,000 poor and mostly rural Puerto Ricans – powerless pensioners and small savers – have invested their life savings through their local not-for-profit credit unions.

As one of them just toldThe New York Times, “they told me this was safe, that the legal protections were strong. They told me this was the best place to put my money, and I trusted them.”

But the bonds were not safe and those who sold them were not to be trusted. What most Puerto Rican savers and pensioners did not know was that their island’s awkward legal status under US law had allowed the big players on Wall Street to effectively turn their homeland into a casino. Because Puerto Rico’s government was in dire need of external financing, and because its public bonds are governed by a so-called “triple-exemption rule” that makes interest paid on them free of all city, state and federal taxes in the mainland United States, the banks saw a potential boom market.

As Eric Draitser wrote for teleSUR on the day before the default:

Barclays, Morgan Stanley, Goldman Sachs, JP Morgan, Bank of America-Merrill Lynch, and many others rushed to underwrite massive loans in the form of bond purchases in order to then turn around and sell those bonds to hedge funds and other investors in the US and around the world, thereby raking in tremendous profits on the underwriting fees. Essentially, Wall Street banks came in with enormous capital, then transferred the risk on to other speculators, while making handsome profits as middlemen.

Hedge fund managers clearly got drunk on the high yields, zero-taxes, steep discounts and strong constitutional protections that these Puerto Rican bonds offered. As late as 2014, Jeffrey Gundlach of DoubleLine Capital referred to investing in Puerto Rico as his “best idea,” while John Paulson – who gained notoriety for his speculative bets in Greece in recent years – even praised the economically moribund US debt colony as “the Singapore of the Caribbean.”

Now, what has largely gone unmentioned in the media since the default is that the Puerto Rican government did, on the same day, repay most of its nearly $500 million in other obligations to the big hedge funds and other institutional investors. The default, in other words, was a strategic decision by the Puerto Rican government – presumably undertaken under the pressure of the hedge funds themselves – to avoid losing access to future credit.

As a journalist for The Independent summarized the situation: “Some have called the $58 million default a calculated effort, as Puerto Rico paid ‘the big guys’ with the legal power to sue, while it shortchanged the low-risk creditors in its own backyard.” Or, as James Henry, an investment scholar at Columbia University, put it:

They have selectively defaulted. They are defaulting on publicly-traded stuff and trying to negotiate private agreements with hedge funds. Hedge funds have a lot of clout in governments and are likely going behind the scenes to help influence who gets paid back. If Puerto Rico ever wants to borrow again they have to pay back these guys. That’s the vulture approach.

Meanwhile, even though it cannot apply for an IMF bailout, the Puerto Rican government has already called in the help of three ex-IMF officials, including the Fund’s former deputy chief economist Anne Krueger, for advise on how to proceed. In a report published at the end of June, the three advisors called on the government to fire thousands of teachers, close schools, increase property taxes, suspend the minimum wage and slash the amount of paid holidays in half.

Perhaps, then, Puerto Rico’s default is not all that different from Greece’s non-default after all. Barely a month after Eurozone officials incorporated Greece as a de facto economic protectorate, US investors appear to be adamant to exact the same kind of discipline from their own long-standing debt colony. Default, it seems, is fine – as long as the bankers and the vultures are repaid.

Jerome Roos is a PhD researcher in International Political Economy at the European University Institute, and founding editor of ROAR Magazine. Follow him on Twitter at @JeromeRoos.

 

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