Quotulatiousness

May 24, 2014

Michael Geist – Who’s Watching Whom?

Filed under: Business, Cancon, Government, Law, Liberty — Tags: , , , , — Nicholas @ 10:08

Published on 22 May 2014

One of the most talked about technology tradeoffs today is the question of how much privacy we give up to live in a world of convenience, speed and intelligence. We’re now less anonymous than many people are aware of or comfortable with, and headline-grabbing stories like the Heartbleed Bug don’t provide much reassurance for those of us seeking comfort around data privacy. How can we balance our need for anonymity with the incredible benefits of our connected world? World class Internet privacy expert Dr. Michael Geist helps us understand which current surveillance and privacy issues should be on your mind.

Dr. Michael Geist is a law professor at the University of Ottawa where he holds the Canada Research Chair in Internet and E-commerce Law. He has obtained a Bachelor of Laws (LL.B.) degree from Osgoode Hall Law School in Toronto, Master of Laws (LL.M.) degrees from Cambridge University in the UK and Columbia Law School in New York, and a Doctorate in Law (J.S.D.) from Columbia Law School. Dr. Geist is an internationally syndicated columnist on technology law issues with his regular column appearing in the Toronto Star and the Ottawa Citizen. Dr. Geist is the editor of From “Radical Extremism” to “Balanced Copyright”: Canadian Copyright and the Digital Agenda (2010) and In the Public Interest: The Future of Canadian Copyright Law (2005), both published by Irwin Law, the editor of several monthly technology law publications, and the author of a popular blog on Internet and intellectual property law issues.

Dr. Geist serves on many boards, including the CANARIE Board of Directors, the Canadian Legal Information Institute Board of Directors, the Privacy Commissioner of Canada’s Expert Advisory Board, the Electronic Frontier Foundation Advisory Board, and on the Information Program Sub-Board of the Open Society Institute. He has received numerous awards for his work including the Kroeger Award for Policy Leadership and the Public Knowledge IP3 Award in 2010, the Les Fowlie Award for Intellectual Freedom from the Ontario Library Association in 2009, the Electronic Frontier Foundation’s Pioneer Award in 2008, Canarie’s IWAY Public Leadership Award for his contribution to the development of the Internet in Canada and he was named one of Canada’s Top 40 Under 40 in 2003. In 2010, Managing Intellectual Property named him on the 50 most influential people on intellectual property in the world.

May 23, 2014

“Mammals don’t respond well to surveillance. We consider it a threat. It makes us paranoid, and aggressive and vengeful”

Filed under: Cancon, Government, Liberty — Tags: , , , — Nicholas @ 08:58

Angelique Carson reports on a recent IAPP Canada Privacy Symposium presentation:

If marine biologist-turned-best-selling author Peter Watts is an expert on anything, it’s mammals. Speaking to 400 or so privacy pros and regulators gathered last week at the IAPP Canada Privacy Symposium to talk privacy and data protection, he used that experience to send a rather jarring — and anything but conventional — message:

Mammals don’t respond well to surveillance. We consider it a threat. It makes us paranoid, and aggressive and vengeful. But we’ll never win against the giant corporations and governments that watch us, Watts argued, so all we can develop is a surefire defense.

Think “scorched earth.” If we can’t protect the data, Watts posited, maybe we should burn it to the ground.

Hear him out: Mammals will always respond to the surveillance threat as they would any threat — with aggression, in the same way the natural selection process has shaped every other life form on this planet.

“Anybody who thinks their own behavior isn’t at least partly informed by those legacy circuits has not been paying attention,” he said.

Watts pointed to author David Brin’s assertion during his keynote recently at the IAPP’s Global Privacy Summit that while our instinct is to pass a law aimed at telling governments and corporations to “stop looking” at us, we should instead turn our gaze to them in the name of reciprocity.

“It’s not telling them do not look,” Brin said during his speech. “It’s looking back.”

But Edward Snowden is currently living in Russia after he tried to “look back.” And as someone who’s worked a lot in the past with mammals, Watts knows that, biologically, looking back is a bad idea: “To get into a staring contest with a large, aggressive, territorial mammal primed to think of eye contact as a threat display … I can’t recommend it.”

“Natural selection favors the paranoid,” Watts said.

H/T to Bruce Schneier for the link.

He was for the Veterans Health Administration before he was against it

The Wall Street Journal‘s James Taranto rounds up some amusing-in-hindsight bloviations by Paul Krugman about the efficiencies of the Veterans Health Administration:

There was no ObamaCare in January 2006, when former Enron adviser Paul Krugman wrote this:

    I know about a health care system that has been highly successful in containing costs, yet provides excellent care. And the story of this system’s success provides a helpful corrective to anti-government ideology. For the government doesn’t just pay the bills in this system — it runs the hospitals and clinics.

    No, I’m not talking about some faraway country. The system in question is our very own Veterans Health Administration, whose success story is one of the best-kept secrets in the American policy debate.

The “secret” of the VA’s “success,” Krugman argued, “is the fact that it’s a universal, integrated system.” That saves on administrative costs and allows for efficient record-keeping. Krugman acknowledged that the VA had a history of mismanagement and mediocre care, until “reforms beginning in the mid-1990’s transformed the system.” But wait. Hasn’t it been a universal, integrated system all along? Maybe the secret is something else. At any rate, the Phoenix revelations suggest it’s the system’s failures that are being kept secret.

Krugman lamented that his argument “runs completely counter to the pro-privatization, anti-government conventional wisdom that dominates today’s Washington.” That was 2006, remember, when Republicans had the White House and both houses of Congress. If Krugman is to be believed — a big “if,” to be sure — the Bush administration did a far better job running the VA than the Obama administration is doing now. Which reminds us of something Waldman wrote: “There’s an old saying that when they’re out of office, Republicans argue that government is inefficient and incompetent, and when they get in office, they set about to prove it.”

Krugman concluded that 2006 column as follows:

    Ideology can’t hold out against reality forever. Cries of “socialized medicine” didn’t, in the end, succeed in blocking the creation of Medicare. And farsighted thinkers are already suggesting that the Veterans Health Administration, not President Bush’s unrealistic vision of a system in which people go “comparative shopping” for medical care the way they do when buying tile (his example, not mine), represents the true future of American health care.

Good Glitches,” anyone?

Krugman managed to get two more columns out of the glorious VA. One, in September 2006, also damned Medicare Advantage and complained that the administration opposed the idea of letting elderly vets use Medicare benefits at VA hospitals:

    “Conservatives,” writes Time, “fear such an arrangement would be a Trojan horse, setting up an even larger national health-care program and taking more business from the private sector.”

    Think about that: they won’t let vets on Medicare buy into the V.A. system, not because they believe this policy initiative would fail, but because they’re afraid it would succeed.

OK, but think about this: According to The-Military-Guide.com, “if you’re eligible for any level of VA care, whether it’s high-priority or low-priority, you’re no longer eligible for ACA exchange subsidies.” (ACA is an abbreviation for PPACA, in turn an abbreviation for the Patient Protection and Affordable Care Act, ObamaCare’s official title.) There are worse things than being excluded from ObamaCare, of course — but the VA may be one of them.

May 22, 2014

Here’s a suddenly topical idea that (if implemented) will increase the gender wage gap

Filed under: Business, Economics, Government — Tags: , , — Nicholas @ 08:11

I don’t know why the topic of menstrual sick leave is suddenly a topic of discussion at many media sites, but it’s a bad idea for womens’ equality as Tim Worstall explains:

Standard theory tells us that if we raise the cost to employers of employing a certain class or group of people then the wages paid to that class or group will fall relative to those groups that have not had the extra costs loaded onto their employment. For the employer is paying to get a job done. If we mandate free lunches, or impose employment taxes (like the employer side of social security), or a certain amount of sick leave, then the cost of providing those will be coming from that gross amount that the employer is willing to pay to get that job done. The more we insist that some of those costs be spent on not wages then the less there is that will be paid in wages.

And if we insist that one group or another has an extra set of costs associated with their employment then we’ll end up seeing the wages of that group fall relative to groups that don’t have those associated costs. The provision of paid menstrual leave will act in exactly this manner. Sure, whatever the allowance is not all women will take it. Say that it’s one day a month out of a standard 22 or 23 day working month. If all women religiously took it we would expect female wages to fall by 1/22 or 1/23 relative to those of men (or of post-menopausal women). Not all women would take it, undoubtedly, so the effect would probably be less than this.

[…]

As above, if we formalised this arrangement then we don’t think that all women would take all of those sick days. But we do have evidence that part of the gender pay gap is already caused by this very problem. And formalising the arrangement will lead to more women taking the sick leave than happens currently. That’s just a natural human reaction. All of which means that, if we did institute formal paid menstrual leave then we’d expect to see a widening of the gender pay gap.

As more women entered the formal work force over the last century or so, many governments and regulators have imposed additional costs on businesses by mandating different treatment for women: while they often claimed they were acting out of concern, the typical result was to make women’s work proportionally more expensive than that of men. If women are limited — by law — to a shorter working day, or to have additional breaks, or to be entitled to extra sick days, then the rational response of businesses will be to hire more men and fewer women (even for work that does not require more physical strength). The push for a new category of special treatment for women will have exactly the same effect: making women more expensive as employees than men.

The Ukrainian army and corruption

Filed under: Government, Military, Russia — Tags: , , — Nicholas @ 07:48

At Defense One, Sarah Chayes says that the pitiful state of the Ukraine’s armed forces is a case study in how corruption can hollow out a nation’s defences:

Here’s a contrast that sums up the David and Goliath aspect of the Ukraine crisis. Picture the sleek, white-hulled vessel Vladivostok, one of two Mistral class warships France is selling to Russia, and compare the bedraggled tents some Ukrainian soldiers sleep in with donations of food jumbled outside and rain-soaked blankets drying over a brushwood fire.

The Russian behemoth outmatches its smaller and weaker neighbor, intrinsically. But the gap did not have to be so stark. Nor did the task of confronting irregular separatist militias have to be so hard. At fault is what drove the Maidan protesters to the streets in the first place: corruption. Ukraine is a case study in one of the ways corruption threatens international security: it guts armies. It makes them useless for defending their borders and as allies. United States officials in their rush to aid the Ukrainian military should resist the temptation to turn a blind eye to lingering venality. Ukraine’s future depends on some tough love.

“A modern country cannot exist without a modern army,” Ukraine’s Deputy Defense Minister Petro Mehed said at a press conference last month announcing a major military overhaul. “In recent years, [the Ukrainian] army has been systematically destroyed and disarmed, and its best personnel dismissed.”

In a 2012 analysis Leonid Polyakov, another senior defense official, detailed the corrupt workings with remarkable candor. Chronic underfunding “enhanced the role of the human factor” in choosing among operational priorities. Ostensibly outdated equipment was sold “at unreasonably understated prices” in return for kickbacks. Officers even auctioned off defense ministry land. Gradually, Kyiv began requiring the military to cover more of its own costs, forcing senior officers into business, “which is…inconsistent with the armed forces’ mission,” and opened multiple avenues for corruption. Commanders took to “using military equipment, infrastructure, and…personnel [to] build private houses, [or] make repairs in their apartments.” Procurement fraud was rife, as were bribes to get into and through military academies, and for desirable assignments.

H/T to Tony Prudori for the link.

May 21, 2014

“The VA really is a good example of a single-payer, socialized health system”

Filed under: Bureaucracy, Government, Health, USA — Tags: , , , — Nicholas @ 07:22

J.D. Tuccille on the Veterans Health Administration:

Just a couple of years ago, Paul Krugman pointed to the Veterans Health Administration (VHA) as a “huge policy success story, which offers important lessons for future health reform.” He gloated, “yes, this is ‘socialized medicine.'”

Similarly, a letter touted by Physicians for a National Health Program trumpeted “the success of 22 wealthy countries and our own Department of Veterans Affairs, which use single-payer systems to provide better care for more people at far less cost.”

How could a bloated government bureaucracy achieve such low-cost success? As we found out recently, it’s by quietly sticking veterans on a waiting list and putting off their treatment for months — sometimes until the patients are far too dead to need much in the way of expensive care. Which is to say, calling it a “success” is stretching the meaning of the word beyond recognition.

And, while the White House insists it learned from press reports about the secret waiting lists, Press Secretary Jay Carney acknowledges that the administration long knew about “the backlog and disability claims” that have accumulated in the VHA.

This should surprise nobody. Canada’s government-run single-payer health system has long suffered waiting times for care. The country’s Fraser Institute estimates [PDF] “the national median waiting time from specialist appointment to treatment increased from 9.3 weeks in 2010 to 9.5 weeks in 2011.”

Likewise, once famously social democratic Sweden has seen a rise in private health coverage in parallel to the state system because of long delays to receive care. “It’s quicker to get a colleague back to work if you have an operation in two weeks’ time rather than having to wait for a year,” privately insured Anna Norlander told Sveriges Radio.

[…]

So the VA really is a good example of a single-payer, socialized health system. Just not in the way that fans of that approach mean.

May 20, 2014

Scotland ratchets up the Nanny State

Filed under: Britain, Government, Law — Tags: , , , , — Nicholas @ 10:27

Last year, the Scottish government introduced legislative proposals to nominate state guardians for all Scottish children, to be called “named persons” and to exercise rather Orwellian powers over the child and the child’s parents. The legislation is now in force, and Stuart Waiton explains why it’s such an intrusive step:

The children’s minister, Aileen Campbell, has been dismissive of those people who have criticised the act as state snooping, or, as many Christian groups have put it, an ‘attack on the family’. For Campbell, the new powers and duties being given to the state guardians are simply another service to help families in trouble and further ensure that children are protected in society. Indeed, Aileen Campbell at times appears to be nonplussed by her critics, incapable of seeing why her caring approach is not instantly celebrated. The claims of state snoops undermining the family, she argues, are simply ‘misunderstandings’ and ‘misrepresentations’ of the new law. When someone raised the point that this act undermined the role of parents in child-rearing, Campbell, somewhat comically, replied, ‘we recognise that parents also have a role’.

However, given the increasing ways in which all children are being categorised as ‘vulnerable’, the way in which all professionals are being educated to put child safety at the top of their agenda, and at time in which ‘early intervention’ is promoted as the only rational approach to solving social problems, there is a serious risk that the relationship between the ‘named person’ and parents will become one predicated on suspicion. Given that the red line for when it is appropriate to intervene in a child’s life is also being downgraded, from the child being seen as at serious risk of harm to mere concerns about their ‘wellbeing’, the potential for unnecessary and potentially destructive state intrusion into family life with this law is significant.

[…] There is also a great danger here that by incorporating every single child in the child-safety rubric, the few children who need state intervention in their lives will get lost in this vast system and not get the support they need. As one concerned parent has noted, when you are looking for a needle in a haystack, why make the haystack bigger?

May 19, 2014

Gillespie – Don’t let the FCC ruin the internet!

Filed under: Bureaucracy, Business, Government, Liberty, Media — Tags: , , , — Nicholas @ 10:51

Nick Gillespie thinks that the uproar about net neutrality may end up with the worst of all possible solutions by letting the FCC control the internet:

Reports of the imminent death of the Internet’s freewheeling ways and utopian possibilities are more wildly exaggerated and full of spam than those emails from Mrs. Mobotu Sese-Seko.

In fact, the real problem isn’t that the FCC hasn’t shown the cyber-cojones to regulate ISPs like an old-school telephone company or “common carrier,” but that it’s trying to increase its regulatory control of the Internet in the first place.

Under the proposal currently in play, the FCC assumes an increased ability to review ISP offerings on a “case-by-case basis” and kill any plan it doesn’t believe is “commercially reasonable.” Goodbye fast-moving innovation and adjustment to changing technology on the part of companies, hello regulatory morass and long, drawn-out bureaucratic hassles.

In 1998, the FCC told Congress that the Internet should properly be understood as an “information service,” which allows for a relatively low level of government interference, rather than as a “telecommunication service,” which could subject it to the sort of oversight that public utilities get (as my Reason colleague Peter Suderman explains, there’s every reason to keep that original classification). The Internet has flourished in the absence of major FCC regulation, and there’s no demonstrated reason to change that now. That’s exactly why the parade of horribles — non-favored video streams slowed to an unwatchable trickle! whole sites blocked! plucky new startups throttled in the crib! — trotted out by net neutrality proponents is hypothetical in a world without legally mandated net neutrality.

Apart from addressing a problem that doesn’t yet exist, if you are going to pin your hopes for free expression and constant innovation on a government agency, the FCC is about the last place to start. For God’s sake, we’re talking about the agency that spent the better part of a decade trying to figuratively cover up Janet Jackson’s tit by fining Viacom and CBS for airing the 2004 Super Bowl.

South Korean coast guard to be “dismantled” after ferry disaster

Filed under: Asia, Government — Tags: , , , — Nicholas @ 09:53

K.J. Kwon, Paula Hancocks and Jethro Mullen report for CNN:

South Korea’s President made an emotional apology Monday over the ferry disaster that killed close to 300 people last month and said she would dismantle the country’s coast guard.

“As the President who should be responsible for people’s life and security, I am sincerely apologizing to the people for having to suffer pain,” said President Park Geun-hye in a televised speech. “The final responsibility for not being able to respond properly lies on me.”

The Sewol ferry sank en route to the resort island of Jeju on April 16, leaving more than 304 people dead or missing. Most of the passengers were high school students on a field trip.

“As a President, I feel a sense of sorrow for not being able to protect them during their family trip,” said Park, whose approval ratings have dropped significantly in the weeks since the sinking.

The Sewol disaster caused widespread outrage in South Korea over lax safety standards and the failure to rescue more people as the ship foundered.

[…]

“After serious consideration, I’ve decided to dismantle the coast guard,” Park said. “The investigation and information roles will be transferred to the police while the rescue and salvage operation and ocean security roles will be transferred to the department for national safety which will be newly established.”

“Parallel construction” and Godwinizing the NSA

Filed under: Government, History, USA, WW2 — Tags: , , , — Nicholas @ 09:33

At Popehat, Clark uses an excerpt from a Bruce Schneier post to make a larger point. Here’s what Bruce wrote last year:

This dynamic was vitally important during World War II. During the war, the British were able to break the German Enigma encryption machine and eavesdrop on German military communications. But while the Allies knew a lot, they would only act on information they learned when there was another plausible way they could have learned it. They even occasionally manufactured plausible explanations. It was just too risky to tip the Germans off that their encryption machines’ code had been broken.

And this is Clark’s take:

We know that the NSA collects all sorts of information on American citizens. We know that the FBI and the CIA have full access to this information. We know that the DEA also has full access to that data. And we know that when the DEA busts someone using information gleaned by the electronic panopticon of our internal spy organization, they take pains to hide the source of the information via the subterfuge of parallel construction.

The insight is this: our government is now dealing with the citizenry the same way that the British dealt with the Nazis: treating them as an external existential threat, spying on them, and taking pains to obfuscate the source of the information that they use to target their attacks.

Yeah, Godwin’s law, whatever, whatever. My point is NOT that the NSA is the same as the Nazi party (in fact, my argument has the NSA on the opposite side). My point is that the government now treats ordinary civilians as worthy of the same sort of tactics that they once used against the Nazis.

H/T to Bernard King for the link.

May 16, 2014

The built-in confusion about net neutrality

While I’ve been following the net neutrality debate, I was still unconvinced that either side had the answers. In a post from 2008, ESR helps to explain why I was confused:

Let it be clear from the outset that the telcos are putting their case for being allowed to do these things with breathtaking hypocrisy. They honk about how awful it is that regulation keeps them from setting their own terms, blithely ignoring the fact that their last-mile monopoly is entirely a creature of regulation. In effect, Theodore Vail and the old Bell System bribed the Feds to steal the last mile out from under the public’s nose between 1878 and 1920; the wireline telcos have been squatting on that unnatural monopoly ever since as if they actually had some legitimate property right to it.

But the telcos’ crimes aren’t merely historical. They have repeatedly bargained for the right to exclude competitors from their networks on the grounds that if the regulators would let them do that, they’d be able to generate enough capital to deploy broadband everywhere. That promise has been repeatedly, egregiously broken. Instead, they’ve creamed off that monopoly rent as profit or used it to cross-subsidize competition in businesses with higher rates of return. (Oh, and of course, to bribe legislators and buy regulators.)

Mistake #1 for libertarians to avoid is falling for the telcos’ “we’re pro-free market” bullshit. They’re anything but; what they really want is a politically sheltered monopoly in which they have captured the regulators and created business conditions that fetter everyone but them.

OK, so if the telcos are such villainous scum, the pro-network-neutrality activists must be the heroes of this story, right?

Unfortunately, no.

Your typical network-neutrality activist is a good-government left-liberal who is instinctively hostile to market-based approaches. These people think, rather, that if they can somehow come up with the right regulatory formula, they can jawbone the government into making the telcos play nice. They’re ideologically incapable of questioning the assumption that bandwidth is a scarce “public good” that has to be regulated. They don’t get it that complicated regulations favor the incumbent who can afford to darken the sky with lawyers, and they really don’t get it about outright regulatory capture, a game at which the telcos are past masters.

[…]

In short, the “network neutrality” crowd is mainly composed of well-meaning fools blinded by their own statism, and consequently serving mainly as useful idiots for the telcos’ program of ever-more labyrinthine and manipulable regulation. If I were a telco executive, I’d be on my knees every night thanking my god(s) for this “opposition”. Mistake #2 for any libertarian to avoid is backing these clowns.

In the comments, he summarizes “the history of the Bell System’s theft of the last mile”.

May 15, 2014

The NSA’s self-described mission – “Collect it all. Know it all. Exploit it all.”

Filed under: Government, Liberty, Media, Technology — Tags: , , , , — Nicholas @ 07:31

In The Atlantic, Conor Friedersdorf reviews Glenn Greenwald’s new book, No Place to Hide:

NSA - New Collection Posture

Collect it all. Know it all. Exploit it all.

That totalitarian approach came straight from the top. Outgoing NSA chief Keith Alexander began using “collect it all” in Iraq at the height of the counterinsurgency. Eventually, he aimed similar tools at hundreds of millions of innocent people living in liberal democracies at peace, not war zones under occupation.

The strongest passages in No Place to Hide convey the awesome spying powers amassed by the U.S. government and its surveillance partners; the clear and present danger they pose to privacy; and the ideology of the national-security state. The NSA really is intent on subverting every method a human could use to communicate without the state being able to monitor the conversation.

U.S. officials regard the unprecedented concentration of power that would entail to be less dangerous than the alternative. They can’t conceive of serious abuses perpetrated by the federal government, though recent U.S. history offers many examples.

[…]

But it is a mistake (albeit a common one) to survey the NSA-surveillance controversy and to conclude that Greenwald represents the radical position. His writing can be acerbic, mordant, biting, trenchant, scathing, scornful, and caustic. He is stubbornly uncompromising in his principles, as dramatized by how close he came to quitting The Guardian when it wasn’t moving as fast as he wanted to publish the first story sourced to Edward Snowden. Unlike many famous journalists, he is not deferential to U.S. leaders.

Yet tone and zeal should never be mistaken for radicalism on the core question before us: What should America’s approach to state surveillance be? “Defenders of suspicionless mass surveillance often insist … that some spying is always necessary. But this is a straw man … nobody disagrees with that,” Greenwald explains. “The alternative to mass surveillance is not the complete elimination of surveillance. It is, instead, targeted surveillance, aimed only at those for whom there is substantial evidence to believe they are engaged in real wrongdoing.”

That’s as traditionally American as the Fourth Amendment.

Targeted surveillance “is consistent with American constitutional values and basic precepts of Western justice,” Greenwald continues. Notice that the authority he most often cites to justify his position is the Constitution. That’s not the mark of a radical. In fact, so many aspects of Greenwald’s book and the positions that he takes on surveillance are deeply, unmistakably conservative.

May 12, 2014

Amazon gets a patent for a decades-old photographic technique

Filed under: Bureaucracy, Business, Government, Technology — Tags: , , — Nicholas @ 06:42

Stephen Shankland provides another exhibit in the patent-system-is-broken case:

Amazon - Studio Arrangement patent

Photographers are hooting derisively at a patent Amazon won in 2014 for a photography lighting technique that’s been in use for decades, a patent that’s helped undermine the credibility of the patent system.

Amazon’s patent 8,676,045, granted in March and titled “Studio Arrangement,” describes a particular configuration of the photography subject in the foreground and a brightly lit white screen behind, an approach that “blows out” the background to cleanly isolate the subject.

It’s a fine idea, but not a novel invention, argued David Hobby, a professional photographer since 1988 who runs the Strobist site that for years has been a popular source of advice on flash photography. He used the approach himself as a staff photographer on his first job decades ago for a business publication.

May 11, 2014

The NSA worked very hard to set themselves up for the Snowden leaks

Filed under: Government, Liberty, Technology — Tags: , , , , , — Nicholas @ 10:30

A few days back, Charles Stross pointed out one of the most ironic points of interest in the NSA scandal … they did it to themselves, over the course of several years effort:

I don’t need to tell you about the global surveillance disclosures of 2013 to the present — it’s no exaggeration to call them the biggest secret intelligence leak in history, a monumental gaffe (from the perspective of the espionage-industrial complex) and a security officer’s worst nightmare.

But it occurs to me that it’s worth pointing out that the NSA set themselves up for it by preventing the early internet specifications from including transport layer encryption.

At every step in the development of the public internet the NSA systematically lobbied for weaker security, to enhance their own information-gathering capabilities. The trouble is, the success of the internet protocols created a networking monoculture that the NSA themselves came to rely on for their internal infrastructure. The same security holes that the NSA relied on to gain access to your (or Osama bin Laden’s) email allowed gangsters to steal passwords and login credentials and credit card numbers. And ultimately these same baked-in security holes allowed Edward Snowden — who, let us remember, is merely one guy: a talented system administrator and programmer, but no Clark Kent — to rampage through their internal information systems.

The moral of the story is clear: be very cautious about poisoning the banquet you serve your guests, lest you end up accidentally ingesting it yourself.

Market disruption and innovation

Filed under: Bureaucracy, Business, Government — Tags: , , , , — Nicholas @ 10:19

Innovation often leads to challenges to established markets. Existing players in those established markets have three choices when faced with a disruptive new competitor or technological change: they can innovate themselves, they can retrench and avoid direct competition, or they can do what most incumbents do — get the government regulators to fight their battles for them.

Market incumbents do not like disruption. Uber, the ride-sharing service that has loosened the stranglehold of the taxi cartels, has been the object of government attacks and vigilante attacks both. Various regulatory agencies have tried with varying degrees of success to shut it down, London’s taxi drivers are even as we speak promising “chaos” in response to the firm’s success, French vigilantes have attacked its drivers, and in Seattle — blessed Seattle! — self-styled anarchists are targeting its cars and drivers. “Anarchists” for state-enforced cartel economics to increase private profit — somebody is unclear on the concept, it seems.

A great deal of the program of the old Left — from its full-on Marxist wing to its Proudhonian anarchist wing — is in the process of being accomplished by 21st-century capitalism. The means of production have been radically democratized, with multi-billion-dollar firms springing up out of garages and dorm rooms. The privileged position of dominant old-line financiers is being undermined rapidly by innovations such as Kickstarter, which blurs the line between the altruistic and the consumerist. The life expectancy of large corporations has collapsed, from about 75 years in the 1960s to 15 years and declining today. When Pierre-Joseph Proudhon called for “a war of labor against capital; a war of liberty against authority; a war of the producer against the non-producer; a war of equality against privilege,” he certainly did not have in mind Uber or Outbox; his most famous motto was, after all, “Property is theft.” (I think there is rather more to his idea of property than that simplistic formulation communicates, but this is not the place for that particular essay.) But the characteristics of those firms — relatively modest capital requirements, subverting various kinds of political authority in the form of licensure and regulation enacted in the interests of market incumbents, empowering efficient producers to compete with rent-seeking non-producers, and, above all, undermining the privileged place of state-sanctioned monopolies and cartels — looks a lot more like what the 19th-century revolutionaries had in mind than the USPS does. If what you mean by “capitalism” is the East India Company, then capitalism is not very attractive; if what you mean by “capitalism” is Kickstarter, then it is.

Not that a man transported from the 19th century to our own time would recognize that. If we could transport M. Proudhon or any of his contemporaries to the here and now, their eyes would not register any economic system with which they were familiar at the sight of the daily wonders we take for granted. They wouldn’t see capitalism; they’d see magic. But the DMV, the USPS, the housing project, and the prison would all be familiar to their 19th-century eyes. Our choice is not really between neat ideological verities with their roots in Adam Smith or Karl Marx, but between the DMV and the Apple store. Each model has its downsides, to be sure, but it does not seem like a terribly difficult choice to me.

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