Category Archives: Technology

Today’s Nasdaq Illustrates the Phenomenon of Creative Destruction

Those of you who are old enough to remember the dot com bubble bursting some 15 years ago might also remember the handwringing about how Microsoft was becoming a monopoly. Microsoft was the juggernaut that could only be taken down with antitrust suits by the federal government. Other companies simply could not compete with such a well-established corporation; the free market was inadequate.

Fast forward to where Microsoft stands today. The once seemingly invincible company has succumbed to the realities of competition and now finds itself in third place on the Nasdaq index.

James B. Stewart writing for The New York Times explains:

The Nasdaq composite that peaked at 5,048.62 on March 10, 2000, in what turned out to be the height of the technology bubble, bears little resemblance to today’s Nasdaq index. Of the top 20 Nasdaq companies by market capitalization in 2000, only four — Microsoft, Cisco Systems, Intel and Qualcomm — remain in the top 20 today. Eight no longer exist as independent companies, most as a result of bankruptcy or acquisition, and several are shadows of their former selves. The current Nasdaq composite index has only about half as many companies as it did in 2000.

“Joseph Schumpeter was spot on when he said capitalism is all about creative destruction,” said Richard Sylla, an economics professor at New York University’s Stern School of Business and a specialist in the history of markets, referring to the Austrian-American economist who described the phenomenon in 1942 in “Capitalism, Socialism and Democracy.”

In the intervening 15 years, a new generation of entrepreneurs, newly public companies and entire industries have emerged and seized the dominant positions in the Nasdaq index even as their predecessors faltered. Apple, now the world’s largest company by market capitalization, barely registered in 2000, and the first iPhone was not announced until 2007. Over a billion smartphones were shipped in 2014.

The chart below which accompanies the article illustrates this creative destruction of the past decade and a half quite clearly.
Capture

What this tells me is that no matter how large these corporations get, they cannot rest on their laurels. They cannot assume that just because consumers like their product(s) more than the competition today that the same will be true tomorrow. How many people use Myspace today as opposed to Facebook?

It’s the creative destruction of the free market – not additional regulations which ultimately allow consumers to have more choices.

Stop Calling Government Regulation of the Internet “Net Neutrality”

fcc-net-neutrality-voteImage from the FCC by way of Ars Technica

Stop using “net neutrality” to refer to government regulation of the internet.

That’s not what net neutrality is, and it’s certainly not what the government regulations promulgated by the FCC today are, in this case “Common Carrier” Rules.

People who don’t know any better are celebrating todays faux “net neutrality” FCC action as a victory for freedom and free speech on the internet, when in fact, it’s exactly the opposite.

I’ve written extensively about net neutrality and this is very much NOT it.

All the FCC has done today, is impose common carrier regulation on every ISP (oh and by the way, lots of other organizations as well who “provide internet access”. No-one has any idea how the regulations are going to be finalized, what the language will mean, who will be impacted and how… except everyone knows it’s going to cost a lot), instead of just the telephone companies it was already imposed on. Verizon for example, who was already one of the worst violators of net neutrality, even with common carrier regulation already in place for them.

Thus it makes competition and breaking of existing monopolies even harder, while not actually doing a damn thing to secure or improve neutrality… oh and it gives the FCC more control over the internet.

Absolutely none of those are good things.

Common carrier regulation is a big part of what made the current near monopolies on Internet access happen in the first place, because small independent companies, and even large regionals, couldn’t compete with the giant telcom conglomerates under those regulations. So, they all got swallowed up.

I’ve been working with telecommunications companies, and common carrier regulations, for more than 20 years. I’m an expert in governance and regulatory compliance, and I can tell you right now, NOBODY understands these regulations, because they are not capable of being understood.

These regulations and the rulings and case law associated with them go back to 1930s… and in some particulars all the way back to the 1870s. And of course, rather than replace them with something clear when they wanted to make new regulations, congress and the FCC just amended and added on and countermanded and…

I’ve flowcharted them before to try to see what applied how and where and when… the only thing I could come up with was “nobody knows for sure, it all depends what a regulator or judge says at the time”.

This wasn’t a blow for freedom and free speech… This was a giveaway to big corporate donors in the telecommunications industry.

The big telcos have been trying to get their primary competition, non-telco ISPs, burdened with the same regulatory load they labor under, for DECADES. Now, in one stroke, the FCC at the personal direction of the president, has given it to them.

Oh and guess what else common carrier regulation includes… SURVEILLANCE.

All common carriers are required to provide the government and law enforcement “reasonable access” for surveillance, as well as to give up records, usage details, and other subscriber and user data, WITHOUT A WARRANT.

What does “reasonable access” mean? Whatever the government says it means… and if you think I’m exaggerating, I’m not. I’ve dealt with the FBI on this issue, and that’s a direct quote.

Yes, this is not only a massive corporate crony handout, it’s also a huge gimme to the FBI and the NSA, who have wanted all ISPs stuck under common carrier for years as well.

Stop calling government regulation of the internet “net neutrality”. Letting the liars control the language helps them lie to you.

Net neutrality is not government regulation, and these regulations are certainly not net neutrality, nor anything like it. Don’t be taken in by fraud, cronyism, and statism, masquerading as freedom.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Quote of the Day: Refreshingly Honest Edition

Julie B

I think age often brings humility. Back in the day, shoot- I thought I had all the answers. Now, I have to admit to myself that I’m still learning. I’m no longer afraid of saying, “I don’t know” when asked my opinion on something that I don’t understand. I’ve made it a rule to not comment unless I believe that I can defend my view if I’m challenged. I don’t understand the Israel/Palestine conflict enough. Net neutrality confuses me. Bitcoin sounds cool but I don’t get the mining part. It’s not me refusing to take sides because I’m scurred but rather: I’m ignorant and I’ll admit it. -Julie Borowski (Facebook status update)

It’s not possible to be adequately informed on every issue and it’s refreshing to see an intelligent person with a decent sized megaphone say so.

It so happens these very issues I don’t quite have a handle on either. Israel/Palestine is a much more complicated issue than most Americans understand (I don’t necessarily think Israel is always in the right and saying so doesn’t make me an anti-Semite). On Net Neutrality my instinct is just leave the internet alone; its working just fine as it is (but then again, this is just my instinct I could be wrong). Bitcoin – I like the idea and I hope it’s as good as advertised but I also worry it’s a giant “pump and dump” scam. Don’t buy more Bitcoin than you are willing to lose.

Sympathy for Paranoia

cat in the tin foil hat

The moon landing was faked by the U.S. government for propaganda purposes to win the Cold War. The terrorist attacks of 9/11 was actually an inside job as a pretext to go to war. Space aliens landed in Roswell, NM but the government has been covering it up. The Sandy Hook massacre was faked to increase support for new gun control laws; the “victims” were actually actors who are all alive and well today. The Illuminati is the secret entity which actually governs the whole world…

The natural response to these statements is to say “these people are mad barking moonbats” and to keep ourselves as distant as possible from the people making them. Those of us in the liberty movement who want to be taken seriously are very quick to renounce anyone who is within six degrees of Alex Jones or anyone else who states any of the above. It’s difficult enough to be taken seriously about legalizing drugs, the non-aggression principle, free markets, and freedom of association; the last thing we need is to be lumped in with “those people.”

While it is very important to defend the “brand” of the liberty movement, it’s also important to recognize the reasons why people believe some rather nutty things.

[W]hen I say virtually everyone is capable of paranoid thinking, I really do mean virtually everyone, including you, me, and the founding fathers. As the sixties scare about the radical Right demonstrates, it is even possible to be paranoid about paranoids. – Jesse Walker, The United States of Paranoia: A Conspiracy Theory, (p. 24) (Read my book review here)

Once one learns about some of the activities governments been proven to have been involved in, some conspiracy theories no longer seem as outlandish. I used to refer to conspiracy theories and wacky beliefs as “black helicopter” stories and I’m fairly certain that others used the same terminology. Once I learned that black unmarked helicopters were used in the assault by the FBI on the Branch Davidians in Waco, TX,(Napolitano, p.110) I stopped calling such ideas “black helicopter.”

Not everything that sounds crazy is.
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NY Jets RB Learns the Hard Way What Happens When You “Just Cooperate” With the Police

Chris Johnson

With the plethora of news stories about police misconduct, excessive force, non-indictments, and the understandable corresponding outrage to such perceived injustices in the waning days of 2014, certain law and order types thought it proper to offer some advice to stop the bloodshed. Quite simple advice really: obey the laws and/or cooperate with the police.

But maybe instead of “simple” I should say “simplistic.” It seems most of those who offer such advice are middle aged white guys who don’t fit the profile the police look for when they decide to stop someone who “looks suspicious.” Take this jackass by the name of Kelly Ogle for example:

It use to be simple… when you come in contact with a police officer, you do what they say.

Unfortunately, an unrealistic distrust of police officers is being fostered by some protesters, even some public officials, which is disgraceful.

Just “do what they say” and everything will be just fine huh?

Don’t tell that to NY Jets RB Chris Johnson. Johnson was recently pulled over in Orlando, Florida for rolling through a stop sign. According to a source close to Johnson, the police asked permission to search his vehicle. Because Johnson didn’t feel like he “had anything to hide” or wanted to “be cooperative,” he foolishly waived his Fourth Amendment rights and allowed the police to search his vehicle.

What did “cooperating” with the police get him? A second degree misdemeanor charge for having his lawfully owned firearm improperly stored in the vehicle according to Florida law. There’s a good chance that Johnson didn’t know he was breaking the law. As we have heard ad nauseum, ignorance of the law is not a legal defense for breaking the law (unless of course, you happen to be a cop).

Just over a month ago, I offered what I believe to be more constructive advice than that the aforementioned badge worshiper. There is a way to be respectful of the police while firmly and intelligently asserting your rights. It seems that had Johnson followed advice similar to mine than that similar to Kelly Ogle’s, he would likely not have been arrested.

Beyond knowing your rights and knowing how to deal with the police, how is one to know if s/he is committing a crime at any given time? In a country in which the average person commits as many as three felonies every single day (to say nothing of any number of misdemeanors a day), there’s no good answer…at least not yet. There soon may be an “ap for that,” however; if this Kickstarter project called “Atlas” generates enough donations by January 31st (they have a long way to go).

Here’s their promotional video explaining the project:

Even if this project doesn’t quite get off the ground, its good to see that there are people out there thinking about how to mitigate the reality of the numerous criminal laws on the books. But until that day comes, understand that when you are stopped by the police, they stopped you because they have some suspicion that you are breaking a law that you may or may not be aware of. Don’t help them by waiving your rights (“just cooperating”) as Chris Johnson did. You can’t assert your rights if you don’t know what they are. Now that you have found these links (here, here, and here), there is no excuse for ignorance of these rights.

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