Tag Archives: economics

Hypereconomics

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While it is conceivable that PayPal could become a ‘financial API’, capitalizing all of the pieces of a production value chain, PayPal, like eBay, is an artifact of the transition to hyperconnectivity, an arbitrageur exploiting imperfections in hyperconnectivity. Once everyone is directly connected, it is possible to transfer capital between peers, without any mediating exchange service.

Given the capital flow restrictions of central banks, fiat currencies can not be employed in transactions crossing international boundaries. Instead, individuals and organizations will begin to develop their own exchange mechanisms, perhaps based on precious metals (a de facto return to the gold standard), but more likely employing virtual currencies: perhaps kilowatt-hours, abstract ‘labour units’, or other measures of value.

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As capital migrates from friction-filled national and international finance markets into hypereconomic frameworks, institutions dependent upon those frictions will be threatened. Banks will not be able to collect interest. Governments will not be able to tax – customs duties and user fees look to be the only ways governments can generate revenue. Courts will not be able to seize assets. The peculiar arrangement of laws and regulations which keep our economic system stable will grow increasingly meaningless. Governments and courts will try to follow capital flows into hypereconomic zones, only to learn that their mechanisms of control and enforcement are poorly matched to such a fluid environment.

Mark Pesce — Hypereconomics

The Local-Global Flip, Or, “The Lanier Effect”

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The Local-Global Flip, Or, “The Lanier Effect”. Absolutely fascinating interview. Two technologies on the cusp of going mainstream: self-driving cars and (dis)assembling robots. Also, technological efficiencies tend to have a positive benefit to the already wealthy (you save more money) but a negative benefit to the already middle-class or poor (you don’t have any money to begin with). What do we do when machines can do it better?

The University Has No Clothes

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The University Has No Clothes. Data point one:

Nearly half of all students demonstrate “exceedingly small or empirically nonexistent” gains in the skills measured by the Collegiate Learning Assessment, even after two years of full-time schooling, according to a study begun in 2005 by sociologists Richard Arum and Josipa Roksa.

Data point number two:

In the past 30 years, private- college tuition and fees have increased, in constant 2010 dollars, from $9,500 a year to more than $27,000. Public-college tuition has increased from $2,100 to $7,600. Fifteen years ago, the average student debt at graduation was around $12,700; in 2009, it was $24,000. Over the past quarter-century, the total cost of higher education has grown by 440 percent.

Mull those two together.

Idea: Tracking support costs

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It would be sweet to have capability within a support ticketing tool or CRM to track the “cost” of a given client or topic. When the agent logs a transaction, they’d record their perceived cost to the transaction. The system would capture this information against client, topic, and type of support. A type of support might be “one-on-one” or “workshop.”

Obviously the former is a lot less efficient way of supporting. If the system logged this information, it would be much easier to see when we’re “in the red” for one-on-one support, and that we should host a workshop for a given topic.

Economics is not a natural science

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Douglas Rushkoff easily wins the most quotable essay of the day award:

We ended up with an economy based in scarcity and competition rather than abundance and collaboration; an economy that requires growth and eschews sustainable business models. It may or may not better reflect the laws of nature — and that it is a conversation we really should have — but it is certainly not the result of entirely natural set of principles in action. It is a system designed by certain people at a certain moment in history, with very specific interests.

The entire piece is a solid foundation for how we think about changing the system, and the devil will be in the deets.

Micro-currency extrapolation

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Andrew Spittle has a post up on ideas for expanding Spot.Us. The skinny is to give the funding community more power over who is reporting on what stories. In addition to allowing them to choose which stories are funded, they’d also have some amount of influence on who reports on which stories.

Let’s take this one step further. In addition to allowing the community to pitch assignments, they should obviously be able to use a currency to vote on which reporting projects actually move forward. It doesn’t need to be an “official” currency, however; the money that the community uses to green-light journalism assignments could be the same that they use for economic transactions within the local geo-space.

Framework for reinventing classifieds

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This is a framework for inventing a better Craigslist.

It is highly unlikely that newspapers will reclaim the monopoly they had on classified advertising pre-internet. They controlled the platform before the internet, and were able to dictate what information used their print pages to gain readers and audience. Some newspapers have lost control of the platform completely and the ones that haven’t will follow suit. Newspapers won’t be able to reclaim the classified advertising space by using the old mental framework for thinking about classifieds, by pretending they might be able to own the platform and charge access to it. Instead, it’s imperative to take the approach of hacking the platform and adding functionality, value, and convenience.

Remember Friendster? I don’t. I never had an account. It was upstaged by MySpace, where I had an account for a few months before it became uncool to do so. MySpace was then upstaged by Facebook. Yes, I’ll concede that MySpace has a large userbase, but its value in the mindspace of the users is rapidly diminishing and there’s a big need for creativity. Fortunately for everyone involved, there’s a low barrier to disruption on the internet.

The real way local news organizations can upset Craigslist and build a better classifieds is simple: create a micro-currency. In addition to providing a more user-friendly interface and the ability to add better meta data, news organizations with a specific geographic community should establish a currency to “monetize” the local marketplace. As Douglas Rushkoff says, the web, and web 2.0 especially, is breaking existing institutions because it allows people to create value on the periphery again. Local news organizations are in a unique, and therefore advantageous, position to provide the platform with which to capture the value of local transactions.

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