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Posts Tagged ‘Andrew Kortina

“My father taught me to work; he did not teach me to love it.”*…

 

04-kinky-labor-supply

 

Over the past few decades, labor force participation has sharply dropped for men ages 20-34. Theories about the root cause range from indolence, to a lack of skills and training, to offshoring, to (perhaps most interestingly) the increasing attractiveness and availability of leisure and media entertainment. In this essay, we propose that the drop in labor participation rate of young men is a result of a combination of factors: (i) a decrease in cost of access to media entertainment leisure, (ii) increases in both the availability and (iii) quality media entertainment leisure, and (iv) a decrease in the marginal signalling utility of (conspicuous) consumption goods for all but the highest earners.

At the macro level, this results in sub-optimal production, as firms are unable to satisfy their demand for labor via the usual mechanism of increasing wages. If you believe that economic productivity and growth are good, this presents a challenge when attempting to design stimulus policy, because subsidies or increases to the minimum wage would yield the same non-result as firms increasing wages. We discuss the potential efficacy of the somewhat radical idea of a tax on human attention or time spent consuming entertainment media as a way to stimulate productivity…

Somewhat radical, indeed…  Economics for the Leisure State: Andrew Kortina (co-founder of Venmo and fin.com; @kortina) and Namrata Patel (Product at Airbnb and former VP, Product + Design at Minted; @namratalpatel) on “Kinky Labor Supply and the Attention Tax.”

* Abraham Lincoln

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As we sample soma, we might send inclusively-calculated birthday greetings to Barbara Bergmann; she was born on this date in 1927.  An economist, she was a trailblazer in the development of feminist economics, contributing important work on topics that ranged from childcare and gender issues to poverty and Social Security.  She was co-founder and President of the International Association for Feminist Economics and a trustee of the Economists for Peace and Security.

Bergmann source

 

“Thus did a handful of rapacious citizens come to control all that was worth controlling in America”*…

 

history-of-capital-ai

The evolution of capitalism (“the capital AI machine”) as a series of levels that were unlocked by new “learning” APIs to humans

 

Consider capitalism as a highly efficient objective function (or “AI”) with its parameters optimized for the satisfaction of our short term desires rather than our long term interests.

Paranoia about runaway feedback loops – in consumer capitalism, artificial intelligence, mass media, ‘Wrestlemania politics,’ etc – ultimately stems from the inscrutability of the emergent behavior of these complex systems to the individual actors and observers operating within them.

Rather than responding with Luddite / anarchist nihilism, we should remember that technological and social systems like these have dramatically reduced our exposure to the unpredictability of the natural world and greatly improved living conditions on a number of dimensions over the past few centuries.

At the same time, we should not ignore warning signs of a dystopian future, nor should we hope that a ‘personnel change’ of institutional leaders will solve our problems.

Because the problems at hand are complex systems problems – where the root causes are not the actors themselves, but the ill-designed structures and incentives that dictate their actions – we should think about redesigning the rules and incentives of social, political, and economic systems as the path forward…

Andrew Kortina explains modern capitalism as a system– one that, for all of its all-too-manifest faults, should be saved; then he starts the conversation about how to do that salvaging: “History of the Capital AI & Market Failures in the Attention Economy.”  Mildly geeky, but richly provocative– which is to say, useful, whether one buys his suggested solutions or not– it’s eminently worthy of a read.

* “Thus did a handful of rapacious citizens come to control all that was worth controlling in America. Thus was the savage and stupid and entirely inappropriate and unnecessary and humorless American class system created. Honest, industrious, peaceful citizens were classed as bloodsuckers, if they asked to be paid a living wage. And they saw that praise was reserved henceforth for those who devised means of getting paid enormously for committing crimes against which no laws had been passed. Thus the American dream turned belly up, turned green, bobbed to the scummy surface of cupidity unlimited, filled with gas, went bang in the noonday sun.  – Kurt Vonnegut, God Bless You, Mr. Rosewater

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As we wonder about the water in which we swim, we might recall that it  was on this date in 1933 that the Agricultural Adjustment Act came into force.  A central piece of New Deal legislation, the AAA aimed to aid farmers devastated by reduced demand for their crops by creating price supports via a series of government purchases (of crops and livestock) and subsidies (essentially payments not to plant/grow).

The program was controversial in its time– it made previously independent farmers dependent on the government– but it worked; average farm income rose 50% from 1932 to 1935.  It’s elements– government purchase and subsidy– survive to this day, evolved into (many of) the provisions of the Farm Bill, passed by Congress every five years or so… even though the constituency of small farmers the Act was intended to serve has largely given way to an agricultural landscape dominated by a handful of gigantic corporate players.

farmer

A Roosevelt County New Mexico farmer and a County Agricultural Conservation Committee representative review the provisions of the Agricultural Adjustment Act (AAA) farm program to determine how it can best be applied on that particular acreage

source

 

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