Posts Tagged ‘control’
“The violence of positivity does not deprive, it saturates; it does not exclude, it exhausts”*…
Scheduling note: your correspondent is hitting the road again, so regular service will be interrupted; it should resume on Friday the 7th…
Author and psychoanalyst Josh Cohen on Byung-Chul Han’s critiques of digital capitalism…
I came across Byung-Chul Han towards the end of the previous decade, while writing a book about the pleasures and discontents of inactivity. My first researches into our culture of overwork and perpetual stimulation soon turned up Han’s The Burnout Society, first published in German in 2010. Han’s descriptions of neoliberalism’s culture of exhaustion hit me with that rare but unmistakable alloy of gratitude and resentment aroused when someone else’s thinking gives precise and fully formed expression to one’s own fumbling intuitions.
At the heart of Han’s conception of a burnout society (Müdigkeitsgesellschaft) is a new paradigm of domination. The industrial society’s worker internalises the imperative to work harder in the form of superego guilt. Sigmund Freud’s superego, a hostile overseer persecuting us from within, comes into being when the infantile psyche internalises the forbidding parent. In other words, the superego has its origin in figures external to us, so that, when it tells us what to do, it is as though we are hearing an order from someone else. The achievement society of our time, Han argues, runs not on superego guilt but ego-ideal positivity – not from a ‘you must’ but a ‘you can’. The ego-ideal is that image of our own perfection once reflected to our infantile selves by our parents’ adoring gaze. It lives in us not as a persecutory other but as a kind of higher version of oneself, a voice of relentless encouragement to do and be more.
With this triumph of positivity, the roughness of the demanding boss gives way to the smoothness (a key Han term) of the relentlessly encouraging coach. On this view, depression is the definitive malaise of the achievement society: the effect of being always made to feel that we’re running hopelessly behind our own ego-ideal, exhausting ourselves in the process.
The figure of the achievement subject gives rise to some of Han’s most vivid evocations of psychic and bodily debilitation:
The exhausted, depressive achievement-subject grinds itself down … It is tired, exhausted by itself, and at war with itself. Entirely incapable of stepping outward, of standing outside itself, of relying on the Other, on the world, it locks its jaws on itself; paradoxically, this leads the self to hollow and empty out. It wears out in a rat race it runs against itself…
… Han’s critique of contemporary life centres on its fetish of transparency; the compulsion to self-exposure driven by social media and fleeting celebrity culture; the reduction of selfhood to a series of positive data-points; and the accompanying hostility to the opacity and strangeness of the human being…
… Under the rule of digital capitalism, time itself is severed from any ‘narrative or teleological tension’, that is, from any discernible purpose or meaning, and so, like the digital paintings in an immersive show, it ‘disintegrates into points which whizz around without any sense of direction.’ In such a regime of time, there is no possibility of Erfahrung, which depends on a sense of narrative continuum and duration. There is only the proliferation of its pale counterpart Erlebnis: the discrete event that ‘amuses rather than transforms’, as Han would later put it in The Palliative Society…
… Because power so often involves coercion, Han argues, there has been a tendency to see them as inextricable. But it is only when power is poor in mediation, felt as alien to our own lives and interests, that it resorts to threatened or actual violence. Whereas when power is at the ‘highest point of mediation’ – when it seems to speak from a recognition of its subjects’ needs and desires – it is more likely to receive those subjects’ willing consent. One could conceive of a power, therefore, that has no sanctions at its disposal, but which is nonetheless rendered absolute by its subjects’ full identification with it.
The less it relies on the threat of punitive measures to back it up, the more power maximises itself. ‘An absolute power,’ writes Han, ‘would be one that never became apparent, never pointed to itself, one that rather blended completely into what goes without saying.’ This is precisely what happens in digital capitalism’s burnout society, where the power of capital consists not in its power to oppress but in the voluntary surrender of its subjects to their own exploitation.
Han draws on the German-American theologian Paul Tillich’s conception of power as ipsocentric, that is, as Han puts it, centred around ‘a self whose intentionality consists of willing-itself’, cultivating and bolstering its own status. God is the ultimate embodiment of power because, in the words of G W F Hegel, ‘he is the power to be Himself’. This will to persist in one’s own existence, to cling to one’s own selfhood, is the basic premise of the Western mode of being. We can discern it at work in the empty narcissism of social media and the culture of self-display in which we’re all enjoined to participate. Self-exploitation is, in a sense, a twisted variant on the Cartesian cogito: I am seen therefore I am. In making myself perpetually visible, I may empty myself out, lose the last vestiges of my interiority. But, in cleaving to the bare bones of a self-image, some form of my existence survives.
The fundamental basis of this erosion of meaningful experience, argues Han, is felt at the level of temporality. The accelerated time of digital capitalism effectively abolishes the practice of ‘contemplative lingering’. Life is felt not as a temporal continuum but as a discontinuous pile-up of sensations crowding in on each other. One of the more egregious consequences of this new temporal regime is the atomisation of social relations, as other people are reduced to interchangeable specks in the same sensory pile-up. Trust between people, grounded in both the assumption of mutual continuity and reliability, and in a sense of knowing the other as singular and distinct, is inexorably corroded: ‘Social practices such as promising, fidelity or commitment, which are temporal practices in the sense that they commit to a future and thus limit the horizon of the future, thus founding duration, are losing all their importance.’…
Consumer culture, with its compulsion for novelty and perpetual stimulation, likewise erodes the bonds of shared experience that engender meaningful narratives. The fire around which human beings would once have gathered to hear stories has been displaced by the digital screen, ‘which separates people as individual consumers.’ Time, love, art, work, narrative; these are the key zones of experience hollowed out by the disintegrative logic of digital capitalism. Each is a rich store of transformative encounter, or Ehrfahrung, which the ‘non-time’ of the present has reduced to empty instances of Erlebnis…
How the “suffocating system” of digital capital creates hollowed-out lives: “The winter of civilization,” the thought of @byungchulhan.bsky.social in @aeon.co. Eminently worth reading in full.
* Byung-Chul Han, The Burnout Society
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As we analyze ambition, we might send careful birthday greeting to Charles Ponzi; he was born on this date in 1882. A con artist, he swindled his way across Canada and the U.S. in the early 1920s, promising clients a 50% profit within 45 days or 100% profit within 90 days, by buying discounted postal reply coupons in other countries and redeeming them at face value in the U.S. as a form of arbitrage. In reality, Ponzi was paying earlier investors using the investments of later investors. While this type of fraudulent investment scheme wasn’t invented by Ponzi, it became so identified with him that it now is referred to as a “Ponzi scheme“. The scam for which he’s known ran for over a year before it collapsed, costing his “investors” $20 million (over $300 million at current value).
Ponzi schemes have grown since Ponzi’s time (Bernie Madoff‘s version is estimated to have totalled around $65 billion) and are alive and well in the U.S.

“Don’t throw the baby out with the bath water”*…

From Dynomight (and here), an argument that algorithms, while problematic today, aren’t necessarily evil…
What does “algorithmic ranking” bring to mind for you? Personally, I get visions of political ragebait and supplement hucksters and unnecessary cleavage. I see cratering attention spans and groups of friends on the subway all blankly swiping at glowing rectangles. I see overconfident charlatans and the hollow eyes eyes of someone reviewing 83 photo she just made her boyfriend take of her in front of a sunset. Most of all, I see dreams of creative expression perverted into a desperate scramble to do whatever it takes to please the Algorithm.
Of course, lots of people like algorithmic ranking, too.
I theorize that the skeptics are right and algorithmic ranking is in fact bad. But it’s not algorithmic ranking per se that’s bad—it’s just that the algorithms you’re used to don’t care about your goals. That might be an inevitable consequence of “enshittification”, but the solution isn’t to avoid all algorithms, but just to avoid algorithms you can’t control. This will become increasingly important in the future as algorithmic ranking becomes algorithmic everything…
Dynomight elaborates on the problem, its genesis, and a plausible answer: “Algorithmic ranking is unfairly maligned,” from @dynomighty.bsky.social.
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As we rethink rankings, we might recall that on this date in 1969 a group at the top of most lists took it to the roof: The Beatles performed on the rooftop of their Apple Corps headquarters at 3 Savile Row, in central London’s office and fashion district. Joined by guest keyboardist Billy Preston, the band played a 42-minute set before the Metropolitan Police arrived and ordered them to “reduce the volume.” It was the final public performance of their career. The concert ended with “Get Back,” after which John Lennon quipped, “I’d like to say thank you on behalf of the group and ourselves, and I hope we’ve passed the audition.”
The full concert footage is available at the invaluable Internet Archive. Here, a taste of “Get Back”…
“Where you have a concentration of power in a few hands, all too frequently men with the mentality of gangsters get control. History has proven that.”*…
In 2018, John Coates wrote a paper that argued that “in the near future roughly twelve individuals will have practical power over the majority of US public companies.” That article has now become a book in which he has expanded his analysis. FT Alphaville reports…
…
The 2018 paper was focused on index funds, and that is the bit most people have freaked out about. After all, even Vanguard’s founder Jack Bogle raised the dangers of a narrow clutch of rapidly growing passive investment giants controlling more and more of the corporate world.
However, the book finally comes good on a promise made in the original paper to also explore the implications of the rise of private equity. It is the missing piece of the puzzle. As Coates puts it in the intro:
A “problem of twelve” arises when a small number of actors acquires the means to exert outsized influence over the politics and economy of a nation. In US history, problems of twelve have recurred, as the result of a clash of two fundamental forces: economies of scale in finance on the one hand, and constitutional commitments to fragmented and limited political power on the other. Each time, the “problem” has been two-sided. The concentration of wealth and power in a small number of hands threatens the political system and the people generally, and the political response can threaten the financial institutions in which wealth and power are accumulating, even when those institutions create economic benefits.
Today, two late-twentieth century institutions — index funds and private equity funds — are creating a new problem of twelve. As financial organizations, they amass and invest capital, and have been primarily scrutinized through a financial lens. As with other financial institutions, they pool savings from dispersed individuals and channel it to fund major projects. They facilitate capitalism, which has created huge benefits for humanity — wealth, health, and much longer life spans — along with inequality, misery, and the existential threat of climate change. Finance creates value by facilitating change, but distributes the gains unequally, and magnifies the gales of “creative destruction.”
But both kinds of funds are now so large, and have influence over so much of the economy, that they have economic and political power, whether they want it or not. Their power makes them targets of political threats. Both institutions exhibit “economies of scale.” Both are active politically — directly, and indirectly — through their control of businesses.
Their growing and concentrated wealth and power threatens the foundations of a democratic republic built on Montesquieu’s separation of powers as well as federalism — the “checks and balances” taught to every civics student. In a predictable response, the republic is increasingly threatening each type of institution with new restrictions, burdens, and limits. Because index funds certainly, and private equity funds possibly, create value within the US economy, the threats to them are as important as their potential threats to American democracy…
In a thoughtful analysis, FT Alphaville asks, is this a problem to be solved or a dilemma to be managed? “The ‘Problem of Twelve’ — redux” (gift article) from @FTAlphaville.
* Lord Acton (perhaps better known for his remark in an 1887 letter to an Anglican bishop, “power tends to corrupt, and absolute power corrupts absolutely.”)
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As we contemplate consolidation, we might spare a thought for Fischer Black; he died on this date in 1995. An economist, he is best remembered as the co-creator of the Black-Scholes model, a technique for valuing financial options. The model established that an option could be priced from a set-in-stone mathematical equation, which allowed the Chicago Board Options Exchange (C.B.O.E.), a new organization, to expand their business to a new universe of financial derivatives. Within a year, more than twenty thousand option contracts were changing hands each day. Four years after that, the C.B.O.E. introduced the “put” option—thus institutionalizing the bet that the thing you were betting on would lose. “Profit at all prices” had joined the mainstream of both economic theory and practice, and by 2007, the international financial system was trading derivatives valued at one quadrillion dollars per year.
The Nobel Prize is not given posthumously, so it was not awarded to Black in 1997 when his co-author Myron Scholes received the economics honor for their landmark work on option pricing along with Robert C. Merton, another pioneer in the development of valuation of stock options. However, when announcing the award that year, the Nobel committee did prominently mention Black’s key role.
As Warren Buffett (whose birthday is today) observed: “The Black–Scholes formula has approached the status of holy writ in finance … If the formula is applied to extended time periods, however, it can produce absurd results. In fairness, Black and Scholes almost certainly understood this point well. But their devoted followers may be ignoring whatever caveats the two men attached when they first unveiled the formula.” Indeed, the “ruthless” application of the model has led to a number of disasters for investors (c.f. Long-Term Capital Management).
“Life is really simple, but we insist on making it complicated”*…
One of the dominant themes of the last few years is that nothing makes sense. Donald Trump is president, QAnon has mainstreamed fringe conspiracy theories, and hundreds of thousands are dead from a pandemic and climate change while many Americans do not believe that the pandemic or climate change are deadly. It’s incomprehensible.
I am here to tell you the the reason that so much of the world seems incomprehensible is that it is incomprehensible. From social media to the global economy to supply chains, our lives rest precariously on systems that have become so complex, and we have yielded so much of it to technologies and autonomous actors that no one totally comprehends it all.
In other words: No one’s driving. And if we hope to retake the wheel, we’re going to have to understand, intimately, all of the ways we’ve lost control…
The internet might be the system that we interact with in the most direct and intimate ways, but most of us have little comprehension of what lies behind our finger-smudged touchscreens, truly understood by few. Made up of data centers, internet exchanges, huge corporations, tiny startups, investors, social media platforms, datasets, adtech companies, and billions of users and their connected devices, it’s a vast network dedicated to mining, creating, and moving data on scales we can’t comprehend. YouTube users upload more than 500 hours of video every minute — which works out as 82.2 yearsof video uploaded to YouTube every day. As of June 30, 2020, there are over 2.7 billion monthly active Facebook users, with 1.79 billion people on average logging on daily. Each day, 500 million tweets are sent— or 6,000 tweets every second, with a day’s worth of tweets filling a 10-million-page book. Every day, 65 billion messages are sent on WhatsApp. By 2025, it’s estimated that 463 million terabytes of data will be created each day — the equivalent of 212,765,957 DVDs…
What we’ve ended up with is a civilization built on the constant flow of physical goods, capital, and data, and the networks we’ve built to manage those flows in the most efficient ways have become so vast and complex that they’re now beyond the scale of any single (and, arguably, any group or team of) human understanding them. It’s tempting to think of these networks as huge organisms, with tentacles spanning the globe that touch everything and interlink with one another, but I’m not sure the metaphor is apt. An organism suggests some form of centralized intelligence, a nervous system with a brain at its center, processing data through feedback loops and making decisions. But the reality with these networks is much closer to the concept of distributed intelligence or distributed knowledge, where many different agents with limited information beyond their immediate environment interact in ways that lead to decision-making, often without them even knowing that’s what they’re doing…
Ceding control to vast unaccountable networks not only risks those networks going off the rails, it also threatens democracy itself. If we are struggling to understand or influence anything more than very small parts of them, this is also increasingly true for politicians and world leaders. Like the captain of the container ship, politicians and voters have less and less control over how any of these networks run. Instead they find themselves merely managing very small parts of them — they certainly don’t seem to be able to make drastic changes to those networks (which are mainly owned by private corporate industries anyway) even though they have a very direct impact on their nations’ economies, policies, and populations. To paraphrase the filmmaker Adam Curtis, instead of electing visionary leaders, we are in fact just voting for middle managers in a complex, global system that nobody fully controls.
The result of this feels increasingly like a democratic vacuum. We live in an era where voters have record levels of distrust for politicians, partly because they can feel this disconnect — they see from everyday reality that, despite their claims, politicians can’t effect change. Not really. They might not understand why, exactly, but there’s this increasing sense that leaders have lost the ability to make fundamental changes to our economic and social realities. The result is a large body of mainstream voters that wants to burn down the status quo. They want change, but don’t see politicians being able to deliver it. It feels like they’re trapped in a car accelerating at full throttle, but no one is driving.
They may not be able to do much about it, but there are mainstream politicians and elected leaders who see this vacuum for what it is — and see how it provides them with a political opportunity. Figures like Donald Trump and Boris Johnson certainly don’t believe in patching up the failures of this system — if anything, they believe in accelerating the process, deregulating, handing more power to the networks. No, for them this is a political vacuum that can be filled with blame. With finger-pointing and scapegoating. It is an opportunity to make themselves look powerful by pandering to fears, by evoking nationalism, racism, and fascism.
Donald Trump has still not conceded the 2020 election despite Joe Biden’s clear victory, and is leaning in part on the fact that the United States has a complex and sometimes opaque voting system that most of the public doesn’t understand to spread conspiracy theories about glitchy or malfeasant voting machines switching or deleting millions of votes. It’s perhaps no coincidence that some of the highest-profile figures on the right — like ex-Trump-adviser Steve Bannon or Brexit Party leader Nigel Farage — have backgrounds in the financial industry. These are political players who have seen how complicated things have become and can sense the gap in public comprehension but want to fill it with chaos and conspiracies rather than explanations…
As Tim Maughan (@TimMaughan) explains, vast systems, from automated supply chains to high-frequency trading, now undergird our daily lives — and we’re losing control of all of them: “The Modern World Has Finally Become Too Complex for Any of Us to Understand” (the first of a series of monthly columns that will “locate ways that we can try to increase our knowledge of the seemingly unknowable, as well as find strategies to counter the powerlessness and anxiety the system produces”).
* Confucius
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As we contemplate complexity, we might send emergent birthday greetings to Per Bak; he was born on this date in 1948. A theoretical physicist, he is credited with developing the concept (and coining the name) of “self-organized criticality,” an explanation of how very complex phenomena (like consciousness) emerge from the interaction of simple components.





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