Quotulatiousness

March 21, 2025

Star Trek: Jobs, Money, and Replicators

Filed under: Bureaucracy, Economics, Media, USA — Tags: , , , , , , — Nicholas @ 02:00

Feral Historian
Published 14 Jun 2024

So the Federation doesn’t use money and magic walls give you anything you ask for. What kind of economy are we really looking at here, and is some approximation of this possible without first having those replicators?

First we have to talk about what money is, what a job is (vs just being employed) and a little historical detour into modern efforts at Universal Basic Income. All of which lead to a very hypothetical look at how we might be able to build a rough approximation of a Star Trek economy in the near-term future.

This is all analysis and thought-experiment. I’m not necessarily endorsing any of these ideas, just bouncing things around for consideration.

00:00 Intro
01:00 Qualitatively Distinct Model
02:27 The Triple Revolution
05:00 Jobs ≠ Employment
06:32 Universal Basic Income
11:35 Federation Credit
13:45 Impacts of Currency
15:16 Can We Really Do This?
(more…)

March 9, 2025

QotD: HR metastasized

Filed under: Books, Britain, Business, Economics, Quotations — Tags: , , , — Nicholas @ 01:00

There are really only three management books anyone ever needs to read (soon forthcoming, the fourth, my own precis of those three!) and we can use all of them in explaining this.

The Peter Principle tells us that everyone gets promoted to their own level of incompetence. So, that explains why the people actually running HR departments are incompetent. The second is Parkinson’s Law, which everyone usually takes to be about work expanding to fill the time available etc. In reality the book as a whole is about how bureaucracy will eat an organisation from the inside. Like one of those parasitic wasps where the pupae eat the spider from the inside out. The lesson of this is that proper management of any organisation is a constant battle against the growth of the bureaucracy. Proper managers should — must — spend significant amounts of their time turning a blowtorch on that internal bureaucracy. Real slash and burn, proper Carthaginian Solution on their arses.

The third has the most direct and exact relevance here. Up the Organisation. In which we are told that the personnel department (what we had before Human Resources) should be the secretary of the line manager. Someone wants to hire someone? Sure. The person who decides who to hire is the person doing the hiring. He needs an assistant only in so far as someone should phone up the local rag to put the job ad in.

Now, it is necessary to have someone making sure the details for the paycheque are right, that they enrolled in the company equity scheme, health care is sorted. But that’s some beancounter preferably hundreds of miles away from any actual influence upon anything.

All of which — from that distillation of the finest ponderings upon corporate management civilisation has so far achieved — tells us what to do with Human Resources.

Turn the blowtorches on the power skirts. Possibly even the full Carthaginian. Tho’ who we’ll find to buy as drabs and doxies the usual inhabitants of HR is another matter. Dunno, might be worth ploughing them into the fields and selling the salt instead.

Tim Worstall, “The Invasion Of The Power Skirts”, It’s all obvious or trivial except …, 2024-12-06.

March 7, 2025

Trump marks the overdue end of the Long Twentieth Century, part 2

Filed under: History, Media, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

In The Conservative Woman, N.S. Lyons continues his essay contending that the arrival of Donald Trump, version 2.0, may finally end the era we’ve been living in since immediately after the end of WW2:

The Long Twentieth Century has been characterized by these three interlinked post-war projects: the progressive opening of societies through the deconstruction of norms and borders, the consolidation of the managerial state, and the hegemony of the liberal international order. The hope was that together they could form the foundation for a world that would finally achieve peace on earth and goodwill between all mankind. That this would be a weak, passionless, undemocratic, intricately micromanaged world of technocratic rationalism was a sacrifice the post-war consensus was willing to make.

That dream didn’t work out, though, because the “strong gods” refused to die.

Mary Harrington recently observed that the Trumpian revolution seems as much archetypal as political, noting that the generally “exultant male response to recent work by Elon Musk and his ‘warband’ of young tech-bros” in dismantling the entrenched bureaucracy is a reflection of what can be “understood archetypally as [their] doing battle against a vast, miasmic foe whose aim is the destruction of masculine heroism as such”. This masculine-inflected spirit was suppressed throughout the Long Twentieth Century, but now it’s back. And it wasn’t, she notes, “as though a proceduralist, managerial civilization affords no scope for horrors of its own”. Thus now “we’re watching in real time as figures such as the hero, the king, the warrior, and the pirate; or indeed various types of antihero, all make their return to the public sphere”.

Instead of producing a utopian world of peace and progress, the open society consensus and its soft, weak gods led to civilizational dissolution and despair. As intended, the strong gods of history were banished, religious traditions and moral norms debunked, communal bonds and loyalties weakened, distinctions and borders torn down, and the disciplines of self-governance surrendered to top-down technocratic management. Unsurprisingly, this led to nation-states and a broader civilization that lack the strength to hold themselves together, let alone defend against external threats from non-open, non-delusional societies. In short, the campaign of radical self-negation pursued by the post-war open society consensus functionally became a collective suicide pact by the liberal democracies of the Western world.

But, as reality began to intrude over the past two decades, the share of people still convinced by the hazy promises of the open society steadily diminished. A reaction began to brew, especially among those most divorced from and harmed by its aging obsessions: the young and the working class. The “populism” that is now sweeping the West is best understood as a democratic insistence on the restoration and reintegration of respect for those strong gods capable of grounding, uniting and sustaining societies, including coherent national identities, cohesive natural loyalties, and the recognition of objective and transcendent truths.

Today’s populism is more than just a reaction against decades of elite betrayal and terrible governance (though it is that too); it is a deep, suppressed desire for long-delayed action, to break free from the smothering lethargy imposed by proceduralist managerialism and fight passionately for collective survival and self-interest. It is the return of the political to politics. This demands a restoration of old virtues, including a vital sense of national and civilizational self-worth. And that in turn requires a rejection of the pathological “tyranny of guilt” (as the French philosopher Pascal Bruckner dubbed it) that has gripped the Western mind since 1945. As the power of endless hysterical accusations of “fascism” has gradually faded, we have – for better and worse – begun to witness the end of the Age of Hitler.

January 27, 2025

QotD: The bureaucratization of university administration

Filed under: Britain, Bureaucracy, Education, Quotations — Tags: , , , , — Nicholas @ 01:00

On the consolidation of power within the administrative bureaucracy:

    The character of the college as a micro-community of academics is being doubly subverted: from within, by the rapid growth of bureaucratic roles taken up by professional administrators, and from without, by a university seeking to centralise control and elide differences among the colleges. The more uniform the overall environment becomes, the more rapidly it will suffer from the bad decisions inevitably yet to be made.

On the metastasis of overpaid, officious administrators:

    The content of this letter is extremely important, so please read it carefully.” It isn’t often that the university speaks to its employees in this way. This was a follow-up email from the former pro-vice-chancellor for strategy and planning, David Cardwell. He wanted academics to complete his Time Allocation Survey by tabulating how many hours were spent across a vast suite of possible activities. It is characteristic of contemporary Cambridge that the strongest rhetoric it can muster is directed toward this self-serving bureaucratic exercise. Cardwell rubbed shoulders with four other pro-vice-chancellors, all enjoying a salary that is several multiples of the typical university academic, and surpasses the Prime Minister’s.

This administrative overgrowth is, by the way, a historical novelty:

    All of this is new: until 1992, the role of vice-chancellor was covered in short stints by the Heads of House, who paused their college governance while the rest of Cambridge got on with what they were here to do. Now we have not only career administrators at the helm, but their five deputies, for an annual cost of around £1.5 million. All the while, the university fails to find the money to keep important subjects alive, such as the centuries-old study of millennia-old Sanskrit.

I’ve been pointing this out for years. Until very recently, administrative functions in universities were largely filled by senior academics: you got bullied into shouldering the unwelcome burden because somebody had to do it, and you drew the short straw. There is nothing that a serious person despises more than paperwork, especially a scholar, who would much rather be happily buried in whatever esoterica he has made his field of study. Forcing academics into administrative roles ensured that the people filling those offices were incentivized to keep the paperwork to an absolute minimum; the last thing they wanted was to create more of the hateful stuff.

Enter, some decades ago, the professional administrators. Initially, these usually had some sort of academic qualification, and still largely do – albeit typically in fake non-disciplines, “public administration” or what have you – but they were not in any sense scholars. They were managers. Give us your burden, they said; we’ll do all the annoying paperwork for you, and you can concentrate on your very important research, you very important scholars, you. Thus the professoriate, like gullible fools, handed over the keys to the kingdom.

Unlike professors, managers are incentivized to create as much administrative complexity as they can: the more administration there is to perform, the more administrators the institution needs, and the larger the fiefdoms senior administrators can command. Since admin typically has control of the budget, they were easily able to appropriate the necessary funds. The result has been the explosive proliferation of useless eaters with lavish salaries and ridiculous titles like Senior Vice Assistant Dean for Excellence or Junior Associate Student Life Provost. At many universities, administrators now exist in a 1:1 ratio with the student body.

Admin have sucked shrinking university budgets dry, with real intellectual consequences: they aren’t going to fire themselves, and they sure aren’t taking a salary cut, so to make up budget shortfalls academic programs with low enrolment get the axe. Butterfield’s reference to the closure of the Sanskrit program is an example of this; there are many such examples, and they are increasingly common. To brains built out of buzzwords and spreadsheets, everything is either a marketing technique or a revenue stream, and if a program isn’t popular enough to subsidize their summer vacations in Provence or social-justicey enough for them to brag to their beach friends about how progressive they are, it serves no purpose.

This ability of university administrations to close down programs illustrates something else, which is that they are the real power on campus. The academics are mere employees: they will teach whichever students the admin decides to admit, will teach those students whatever the admin says to teach them, will not teach what the admin tell them not to teach, will teach in whatever manner admin decides is best, and will evaluate the results of that instruction in whatever fashion admin mandates they be evaluated.

As members of the managerial class, university administrators are drones of the global managerial hive mind, and instinctively exert a homogenizing influence. Old, parochial practices must be jettisoned in favour of standardizing the institutions they manage.

    As for our age-old titles – of lecturer, senior lecturer, reader and professor – these were replaced with American titles so as to be “more intelligible” to a global audience. … To conjure up a world of “assistant professors” and “associate professors”, who in fact have no supporting relationship to “the professors”, makes a mockery of that venerable system.

Administrators dislike horizontal social relationships amongst faculty. Peer-to-peer network architectures are hard to control; they prefer a server-terminal model, with management as the server through which all communications pass, and professors as the terminals, who can be regulated through systems of permissions. Thus, they set about dissolving those institutions that facilitate conviviality amongst the faculty:

    It was telling that a few years ago the authorities silently closed down the University Combination Room, the 14th-century hall in which academics could freely convene outside their individual colleges.

Administration is also sneaky, adopting governance practices that minimize whatever legacy powers the professoriate still possesses:

    Although in theory Cambridge academics are self-governing, the move to online voting, with minimal announcement, allows for many university policies to be driven through by those who want them enacted.

Butterfield understands full well that the problems are hardly unique to Cambridge:

    All this I say of Cambridge. But these issues go right across the university sector … The public need to trust and respect the elite academic institutions they fund; but that respect is waning, as stories continue to reveal politicised teaching, grade inflation, authoritarian campus policies and lurid, even laughable, research grants. The ambitions of our whole education system are ultimately pegged to the achievements at the very pinnacle of academia. If Cambridge can’t resist decline, who can?

The obvious answer is: no one can resist this. Not Cambridge, not Oxford, not University College London, not Harvard, not Princeton, not MIT, and not Whittier College. The problem is too systemic; the rot too deep. Decades of administrative consolidation of power has subsumed the ivory tower into an appendage of the global asset management system. Generations of ideological infection by the mind virus of cultural Marxism, wokeism, critical social justice, gay race communism, whatever you want to call it, has poisoned the minds of too many of the faculty. Generations of steadily declining standards, an inevitable consequence of massively increased enrolment which of unavoidable necessity heavily sampled the fat middle of the IQ distribution, has thinned out the influence of the bell curve’s rarefied tail to statistical irrelevance. After all of this, the only way to save the university is to purge it, of the great mass of low-performing affirmative action students, of the diversity hire academics who substitute clumsy sermonizing for the scholarship they can neither understand nor perform, and most especially of the great tumorous mass of useless administrators.

Such a purge, to be effective, would need to be thorough. To be thorough, it would remove almost everyone in the system. This would be the same as destroying the system. To save the patient, one would have to kill the patient.

Therefore no such purge will take place.

Instead, the system will crumble, buckle under its own weight, and eventually collapse.

As, in fact, it is doing.

John Carter, “Crumbling DIEvory Towers”, Postcards From Barsoom, 2024-10-25.

December 30, 2024

Ted Gioia on 2025’s most likely trends

Filed under: Books, Business, USA — Tags: , — Nicholas @ 03:00

Peeking out from behind the paywall, the latest installment of Ted Gioia‘s arts & culture briefing includes some good news for those of us who still remember when book stores actually sold books (unlike the last time I visited an Indigo store to find that the books were even more of an afterthought than ever):

“Barnes & Noble Book Store” by JeepersMedia is licensed under CC BY 2.0 .

The Barnes & Noble turnaround is really happening — and everybody in the culture business should learn from it.

More than a year ago, I celebrated the arrival of a new boss at Barnes & Noble who actually loves books.

This led him to do all sorts of brave things. He stopped promoting new titles based on kickbacks from publishers, and instead showcased books that people might actually enjoy reading.

This was an example of stealth culture mentioned above. Shoppers had no idea that the promoted books at the front of the store were chosen on the basis of financial incentives, not quality. And new boss Jamie Daunt shook the entire publishing business by turning down the cash.

He also empowered employees in the store, giving them freedom to feature books that they loved. He told his local booksellers to remove every title from every shelf, and “weed out the rubbish”. He wanted the staff to be excited about the books they sold.

I now have a happy update to my previous report.

Barnes & Noble has more than 60 new locations opening this year, and store foot traffic is improving steadily.

In an especially inspiring move, the company recently reopened a huge retail space in DC it had abandoned in 2013. After more than a decade, it returned to the same location and opened a flagship store.

When he took over, Daunt saw that the stores were “crucifyingly boring”. But now the excitement is back. Some visitors even compare Barnes & Noble nowadays to a theme park for books.

According to CNN:

    Kendra Keeter-Gray, a BookTok content creator with over 100,000 followers, told CNN that she and her friends could spend anywhere between 30 minutes to a few hours inside a Barnes & Noble, usually in the BookTok section where they trade recommendations and flip through currently trending novels.

    “When you go to Barnes, it’s like an excursion almost. I would equate it to when I was little and my parents would take me to Six Flags,” she said.

Meanwhile here’s a completely different strategy for the book business …


In Japan, writers can rent out their own shelf at a local bookstore.

The new trend in Japanese bookstores is to sublease the shelves to outsiders. The result is the exact opposite of algorithm-chosen books. Every shelf is filled with surprises.

According to the South China Morning Post:

    “Here, you find books which make you wonder who on earth would buy them,” laughs Shogo Imamura, 40, who opened one such store in Tokyo’s bookstore district of Kanda Jimbocho in April.

    “Regular bookstores sell books that are popular based on sales statistics while excluding books that don’t sell well,” says Imamura … “We ignore such principles”.

December 20, 2024

QotD: A’s hire A’s and B’s hire C’s

Filed under: Bureaucracy, Business, Quotations — Tags: , , — Nicholas @ 01:00

so how does even a little DEI lead to full incompetence contagion? i would like to posit a very simple emergent algorithm rooted in a simple and longstanding organizational idea:

A’s hire A’s and B’s hire C’s. (and you seriously do not want to meet the people C’s hire)

that’s it. that’s all we need to extrapolate and plot it.

this pattern emerges in response to two simple drives affecting all those who lack ability to compete […]

the essence of this is simple: the highly competent (A’s) wish to be surrounded by other highly competent people. an organization of mostly A’s (or at least A’s in management) thrives and gets lots done. it innovates. it rewards achievement and ability. it’s a meritocracy. because that’s what A’s want.

and B’s hate this. they cannot get ahead and they live in fear of A’s beneath them coming for their jobs and hatred of A’s above them who prevent advancement and who make demands for performance.

they do not want their jobs taken, so they respond to this by hiring only those less competent than themselves to work under them (C’s). this is how they hold position and avoid challenge and threat.

ideally, they’d also like to clear any A’s above them out of the way so they can generate some upward mobility. they cannot do this on a meritocratic axis, so they seek another one to supplant it.

they seek to move hiring and promotion to some other quality than ability then reinforce it with doctrine.

the pretext itself is incidental to this process. it does not really matter what it is.

it just has to be “something other than competence” and you land in this self-referential recursive trap.

el gato malo, “the mediocrity downspiral”, bad cattitude, 2024-09-10.

December 10, 2024

Countering the “Managerial Revolution”

Filed under: Books, Bureaucracy, Business, Economics — Tags: , , , , , , — Nicholas @ 04:00

Tim Worstall discusses the rise of the managerial class — described in 1941’s Managerial Revolution by James Burnham — and how detrimental to individual enterprises and the wider economy managerialism has been:

This, rather joyously, explains a lot about the modern world. We could go back to the mid-1980s and the bloke who ran the ‘baccy company written up in Barbarians at the Gates. In which he, as CEO, had a fleet of private planes, the company paid for his 11 country club memberships and so on. His salary was decent, sure, but the corporation rented him all the trappings of a Gatsbyesque — and successful — capitalist. Until the actual capitalists — the barbarians — turned up at those gates and started demanding shareholder returns.

Or we can think of the bureaucratic classes in the UK in more recent decades. Moving effortlessly between this NGO, that quasi-governmental body and a little light sitting on the right government inquiry. All at £1500 a day and a damn good pension to follow.

Or, you know, adapt the base idea to taste. There really is a bureaucratic and managerial class that gains the incomes and power of the capitalists of the past without having to do anything quite so grubby as either risk their own money or, actually, do anything. They, umm, administer, and the entire class is wholly and absolutely convinced that everything must be administered and they’re the right people to be doing that.

You know, basically David Cameron. Met him once, when he was just down from uni. At a political meeting – drinkies for the Tory activists in a particular council ward, possibly a little wider than that. Hated him on sight which I agree has saved me much time over the decades. And I was right too. There is nothing to Cameroonism other than that the right sort of people should be administering — the managerial revolution.

Sure, sure, we used to have the aristocracy which assumed the same thing but we did used to insist that they could chop someone’s head off first — show they had the capability. Also, they didn’t complain nor demand a pension when we did that to them if they lost office.

But the bit that really strikes me. France — and thereby the European Union — seems to me to be where this Managerial Revolution has gone furthest. Get through the right training (the “enarques“) and you’re the right guy to be a Minister, run a political party, manage the oil company, sort out the railways etc. You don’t have to succeed or fail at any of them, you’re one of the gilded class that runs the place. Because, you know, everything needs to be run and one of this class should do so.

The divergence or even active conflict of interests between the owners and the non-owning managers is part of the larger Principal-Agent Problem.

September 18, 2024

QotD: Freelancing

Filed under: Business, Humour, Quotations — Tags: , , — Nicholas @ 01:00

That’s the ultimate difference between being a wage slave and a freelancer: the former has to put up with the megalomaniac infantile whining of their incompetent boss, whereas a freelancer has to put up with 12 of them.

A wage slave gets time off in lieu. A freelancer fits swing shifts between the daytime work.

You always have to keep a Plan B ready in case you need to fill gaps in your schedule. From the start of my freelancing career, I was a sub-editor SLASH writer. This evolved into journalist SLASH author SLASH print production. Then journalist SLASH trainer SLASH digital publishing. Plans C, D and E have proved most valuable.

It’s a pain in the arse. You have to get multiple business cards printed. You have to keep multiple career histories and CVs updated – something that LinkedIn, which itself accelerated the fad for wankers inventing dipshit slasher job titles, cannot handle at all.

Alistair Dabbs, “Multitasking is a myth: It means doing lots of things equally badly. Some people just like to take the p*ss”, The Register, 2019-09-27.

September 15, 2024

QotD: “Primordial” Marxism

By “primordial Marxism” I mean Marx’s original theory of immiseration and class warfare. Marx believed, and taught, that increasing exploitation of the proletariat would immiserate it, building up a counterpressure of rage that would bring on socialist revolution in a process as automatic as a steam engine.

Inconveniently, the only place this ever actually happened was in a Communist country – Poland – in 1981. I’m not going to get into the complicated historiography of how the Soviet Revolution itself failed to fit the causal sequence Marx expected; consult any decent history. What’s interesting for our purposes is that capitalism accidentally solved the immiseration problem well before then, by abolishing Marx’s proletariat through rising standards of living – reverse immiseration.

The most forward-thinking Marxists had already figured out this was going to be a problem by around 1910. This began a century-long struggle to find a theoretical basis for socialism decoupled from Marxian class analysis.

Early on, Lenin developed the theory of the revolutionary vanguard. In this telling, the proletariat was incapable of spontaneously respond to immiseration with socialist revolution but needed to be led to it by a vanguard of intellectuals and men of action which would, naturally, take a leading role in crafting the post-revolutionary paradise.

Only a few years later came one of the most virulent discoveries in this quest – Fascism. It is not simplifying much to say that Communists invented Fascism as an escape from the failure of class-warfare theory, then had to both fight their malignant offspring to death and gaslight everyone else into thinking that the second word in “National Socialism” meant anything but what it said.

During its short lifetime, Fascism did exert quite a fascination on the emerging managerial-statist elite. Before WWII much of that elite viewed Mussolini and Hitler as super-managers who Got Things Done, models to be emulated rather than blood-soaked tyrants. But Fascism’s appeal did not long survive its defeat.

Marxists had more success through replacing the Marxian economic class hierarchy with other ontologies of power in which some new victim group could be substituted for the vanished proletariat and plugged into the same drama of immiseration leading to inevitable revolution.

Most importantly, each of these mutations offered the international managerial elite a privileged role as the vanguard of the new revolution – a way to justify its supremacy and its embrace of managerial state socialism. This is how we got the Great Inversion – Marxists in the middle and upper classes, anti-Marxists in the working class being dismissed as gammons and deplorables.

Leaving out some failed experiments, we can distinguish three major categories of substitution. One, “world systems theory”, is no longer of more than historical interest. In this story, the role of the proletariat is taken by oppressed Third-World nations being raped of resources by capitalist oppressors.

Though world systems theory still gets some worship in academia, it succumbed to the inconvenient fact that the areas of the Third World most penetrated by capitalist “exploitation” tended to be those where living standards rose the fastest. The few really serious hellholes left are places (like, e.g. the Congo) where capitalism has been thwarted or co-opted by local bandits. But in general, Frantz Fanon’s wretched of the Earth are now being bourgeoisified as fast as the old proletariat was during and after WWII.

The other two mutations of Marxian vanguard theory were much more successful. One replaced the Marxian class hierarchy with a racialized hierarchy of victim groups. The other simply replaced “the proletariat” with “the environment”.

Eric S. Raymond, “The Great Inversion”, Armed and Dangerous, 2019-12-23.

August 23, 2024

QotD: The decline of the British working class

Filed under: Britain, Economics, History, Politics, Quotations, USA — Tags: , , , , , — Nicholas @ 01:00

It’s easy enough to locate [the beginning of the inversion] – World War II. The war effort quickened the pace of innovation and industrialization in ways that are easy to miss the full significance of. In Great Britain, for example, wartime logistical demands – especially the demands of airfields – stimulated a large uptick in road-making. All that infrastructure outlasted the war and enabled a sharp drop in transport costs, with unanticipated consequences like making it inexpensive for hungry (and previously chronically malnourished!) working-class people in cities to buy meat and fresh produce.

Marxists themselves were perhaps the first to notice that the “proletariat” as their theory conceived it was vanishing, assimilated to the petty bourgeoisie by the postwar rise in living standards and the propagation of middlebrow culture through the then-new media of paperback books, radio, and television.

In the new environment, being “working class” became steadily less of a purchasing-power distinction and more one of culture, affiliation, and educational limits on upward mobility. A plumber might make more than an advertising copywriter per hour, but the copywriter could reasonably hope to run his own ad agency – or at least a corporate marketing department – some day. The plumber remained “working class” because, lacking his A-level, he could never hope to join the managerial elite.

At the same time, state socialism was becoming increasingly appealing to the managerial and upper classes because it offered the prospect not of revolution but of a managed economy that would freeze power relationships into a shape they were familiar with and knew how to manipulate. This came to be seen as greatly preferable to the chaotic dynamism of unrestrained free markets – and to upper-SES people who every year feared falling into poverty less but losing relative status more, it really was preferable.

In Great Britain, the formation of the National Health Service in 1947 was therefore not a radical move but a conservative one. It was a triumph not of revolutionary working-class fervor overthrowing elites but of managerial statism cementing elite power in place.

During the long recovery boom after World War II – until the early 1970s – it was possible to avoid noticing that the interests of the managerial elite and the working classes were diverging. Both the U.S. and Great Britain used their unmatched industrial capacity to act as price-takers in international markets, delivering profits fat enough to both buoy up working-class wages and blur the purchasing-power line between the upper-level managerial class and the owners of large capital concentrations almost out of existence.

The largest divergence was that the managerial elite, like capitalists before them, became de-localized and international. What mobility of money had done for the owners of capital by the end of the 19th century, mobility of skills did for the managerial class towards the end of the 20th.

As late as the 1960s, when I had an international childhood because my father was one of the few exceptions, the ability of capital owners to chase low labor costs was limited by the unwillingness of their hired managers to live and work outside their home countries.

The year my family returned to the U.S. for good – 1971 – was about the time the long post-war boom ended. The U.S. and Great Britain, exposed to competition (especially from a re-industrialized Germany and Japan) began a period of relative decline.

But while working-class wage gains were increasingly smothered, the managerial elite actually increased its ability to price-take in international markets after the boom. They became less and less tied to their home countries and communities – more willing and able to offshore not just themselves but working-class jobs as well. As that barrier eroded, the great hollowing out of the British industrial North and the American Rust Belt began.

The working class increasingly found itself trapped in dying towns. Where it wasn’t, credentialism often proved an equally effective barrier to upward mobility. My wife bootstrapped herself out of a hardscrabble working-class background after 1975 to become a partner at a law firm, but the way she did it would be unavailable to anyone outside the 1 in 100 of her peers at or above the IQ required to earn a graduate degree. She didn’t need that IQ to be a lawyer; she needed it to get the sheepskin that said she was allowed to be a lawyer.

The increasingly internationalized managerial-statist tribe traded increasingly in such permissions – both in getting them and in denying them to others. My older readers might be able to remember, just barely, when what medical treatment you could get was between you and your physician and didn’t depend on the gatekeeping of a faceless monitor at an insurance company.

Eventually, processing of those medical-insurance claims was largely outsourced to India. The whole tier of clerical jobs that had once been the least demanding white-collar work came under pressure from outsourcing and automation. effectively disappearing. This made the gap between working-class jobs and the lowest tier of the managerial elite more difficult to cross.

In this and other ways, the internationalized managerial elite grew more and more unlike a working class for which both economic and social life remained stubbornly local. Like every other ruling elite, as that distance increased it developed a correspondingly increasing demand for an ideology that justified that distinction and legitimized its power. And in the post-class-warfare mutations of Marxism, it found one.

Eric S. Raymond, “The Great Inversion”, Armed and Dangerous, 2019-12-23.

June 20, 2024

The “Idiot Nephew Theory” of show business management

Filed under: Business, Media, USA — Tags: , , , , — Nicholas @ 05:00

Ted Gioia recalls his hopes of getting into the entertainment industry after graduation:

The story of how I became a strategy consultant is shameful.

I was a student at Stanford’s Graduate School of Business, and needed a job after graduation. I wanted to work in the music or entertainment industries — but I soon learned this was an impossible dream.

They didn’t want me. And they didn’t want my classmates either.

Hundreds of companies came to our business school to recruit talent, and they included most of the leading US corporations. So I talked with everybody — Coca Cola, Morgan Stanley, Atari, Procter & Gamble, you name it.

But no record label or movie studio ever showed up. They didn’t even send job listings.

Can you guess why?

I asked around on campus and was told the following (off the record):

    Come on, Ted. You will never see the entertainment business recruit here. Those folks are not looking for business talent.

    They give the choice jobs to their family members — the idiot nephew gets hired, not an MBA. Even better if it’s an idiot son.

    And if there are other openings? Well … You’ve heard about the casting couch, haven’t you? Let me give you a hint — that couch isn’t just for auditioning the cast.

    But you wouldn’t want a job there even if they gave you one. When time comes for a promotion, the drooling idiot nephew moves up — not you.

I’ve never shared that story before — because I know how people inside the music business hate hearing it.

And maybe it’s not a fair story.

All I can say is that I found this advice very helpful. I stopped planning on a career in the music business. And I also developed a very useful theory to explain why record labels are so bad at making strategic decisions.

I call it the “Idiot Nephew Theory”:

    THE IDIOT NEPHEW THEORY: Whenever a record label makes a strategic decision, it picks the option that the boss’s idiot nephew thinks is best.

And what does the idiot nephew decide? That’s easy — they always do whatever the company lawyer recommends.


Maybe this theory is wrong. All I can say is that it helps me predict events in the entertainment industry with a surprising degree of accuracy.

I always operate on the assumption that there’s no business strategy in the music or movie business — only legal maneuvering.

Years later, when the music business got totally reamed by tech companies — a phase we’re still living through, by the way — I wasn’t surprised in the least. The record labels respond to every new music technology by litigating, but whenever they encounter a company with more legal clout than them (Apple or Google/YouTube, for example), they simply gave up.

In the future, you can test this theory yourself. You will see that it possesses great explanatory power.

May 22, 2024

The new queen of the AWFLs

Filed under: Government, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 03:00

Elizabeth Nickson on the rise of new NPR CEO, Katherine Maher:

Banner for Christopher Rufo’s article on Katherine Maher at City Journal.
https://christopherrufo.com/p/katherine-mahers-color-revolution

The polite world was fascinated last month when long-time NPR editor Uri Berliner confessed to the Stalinist suicide pact the public broadcaster, like all public broadcasters, seems to be on. Formerly it was a place of differing views, he claimed, but now it has sold as truth some genuine falsehoods like, for instance, the Russia hoax, after which it covered up the Hunter Biden laptop. And let’s not forget our censor-like behaviour regarding Covid and the vaccine. NPR bleated that they were still diverse in political opinion, but researchers found that all 87 reporters at NPR were Democrats. Berliner was immediately put on leave and a few days later resigned, no doubt under pressure.

Even more interesting was the reveal of the genesis of NPR’s new CEO, Katherine Maher, a 41-year-old with a distinctly odd CV. Maher had put in stints at a CIA cutout, the National Democratic Institute, and trotted onto the World Bank, UNICEF, the Council on Foreign Relations, the Center for Technology and Democracy, the Digital Public Library of America, and finally the famous disinfo site Wikipedia. That same week, Tunisia accused her of working for the CIA during the so-called Arab Spring. And, of course, she is a WEF young global leader.

She was marched out for a talk at the Carnegie Endowment where she was prayerfully interviewed and spouted mediatized language so anodyne, so meaningless, yet so filled with nods to her base the AWFULS (affluent white female urban liberals) one was amazed that she was able to get away with it. There was no acknowledgement that the criticism by this award-winning reporter/editor/producer, who had spent his life at NPR had any merit whatsoever, and in fact that he was wrong on every count. That this was a flagrant lie didn’t even ruffle her artfully disarranged short blonde hair.

Christopher Rufo did an intensive investigation of her career in City Journal. It is an instructive read and illustrative of a lot of peculiar yet stellar careers of American women. Working for Big Daddy is apparently something these ghastly creatures value. I strongly suggest reading Rufo’s piece linked here. It’s a riot of spooky confluences.

Intelligence has been embedded in media forever and a day. During my time at Time Magazine in London, the bureau chief, deputy bureau chief and no doubt the “war and diplomacy” correspondent all filed to Langley and each of them cruised social London ceaselessly for information. Tucker Carlson asserted on his interview with Aaron Rogers this week that intelligence operatives were laced through DC media and in fact, Mr. Watergate, Bob Woodward himself, had been naval intelligence a scant year before he cropped up at the Washington Post as “an intrepid fighter for the truth and freedom no matter where it led”. Watergate, of course, was yet another operation to bring down another inconvenient President; at this juncture, unless you are being puppeted by the CIA, you don’t get to stay in power. Refuse and bang bang or end up in court on insultingly stupid charges. As Carlson pointed out, all congressmen and senators are terrified by the security state, even and especially the ones on the intelligence committee who are supposed to be controlling them. They can install child porn on your laptop and you don’t even know it’s there until you are raided, said Carlson. The security state is that unethical, that power mad.

Now, it’s global. And feminine. Where is Norman Mailer when you need him?

April 4, 2024

Boeing and the ongoing competency crisis

Niccolo Soldo on the pitiful state of Boeing within the larger social issues of collapsing social trust and blatantly declining competence in almost everything:

By now, most of you have heard of the increasingly popular concept known as “the competency crisis”. For those of you who haven’t, the competency crisis argues that the USA is headed towards a crisis in which critical infrastructure and important manufacturing will suffer a catastrophic decline in competency due to the fact that the people (almost all males) who know how to build/run these things are retiring, and there is no one available to fill these roles once they’re gone. The competency crisis is one of the major points brought up by people when they point out that America is in a state of decline.

As all of you are already aware, there is also a general collapse in trust in governing institutions in the USA (and all across the West). Cynicism is the order of the day, with people naturally assuming that they are being lied to constantly by the ruling elites, whether in media, government, the corporate world, and so on. A competency crisis paired with a collapse in trust in key institutions is a vicious one-two punch for any country to absorb. Nowhere is this one-two combo more evident than in one of America’s crown jewels: Boeing.

I’m certain that all of you are familiar with the “suicide” of John Barnett that happened almost a month ago. John Barnett was a Quality Control Manager working for Boeing in the Charleston, South Carolina operation. He was a “lifer”, in that he spent his entire career at Boeing. He was also a whistleblower. His “suicide” via a gunshot wound to the right temple happened on what was scheduled to be the third and last day of his deposition in his case against his former employer.

In more innocent and less cynical times, the suggestion that he was murdered would have had currency only in conspiratorial circles, serving as fodder for programs like the Art Bell Show. But we are in a different world now, and to suggest that Barnett might have been killed for turning whistleblower earns one replies like “could be”, “I’m pretty sure that’s the case”, and the most common one of all: “I wouldn’t doubt it”. No one believes that Jeffrey Epstein killed himself. Many people believe the same about John Barnett. The collapse in trust in ruling institutions has resulted in an environment where conspiratorial thinking naturally flourishes. Maureen Tkacik reports on Boeing’s downward turn, using Barnett’s case as a centre piece:

    “John is very knowledgeable almost to a fault, as it gets in the way at times when issues arise,” the boss wrote in one of his withering performance reviews, downgrading Barnett’s rating from a 40 all the way to a 15 in an assessment that cast the 26-year quality manager, who was known as “Swampy” for his easy Louisiana drawl, as an anal-retentive prick whose pedantry was antagonizing his colleagues. The truth, by contrast, was self-evident to anyone who spent five minutes in his presence: John Barnett, who raced cars in his spare time and seemed “high on life” according to one former colleague, was a “great, fun boss that loved Boeing and was willing to share his knowledge with everyone,” as one of his former quality technicians would later recall.

Please keep in mind that this report offers up only one side of the story.

A decaying institution:

    But Swampy was mired in an institution that was in a perpetual state of unlearning all the lessons it had absorbed over a 90-year ascent to the pinnacle of global manufacturing. Like most neoliberal institutions, Boeing had come under the spell of a seductive new theory of “knowledge” that essentially reduced the whole concept to a combination of intellectual property, trade secrets, and data, discarding “thought” and “understanding” and “complex reasoning” possessed by a skilled and experienced workforce as essentially not worth the increased health care costs. CEO Jim McNerney, who joined Boeing in 2005, had last helmed 3M, where management as he saw it had “overvalued experience and undervalued leadership” before he purged the veterans into early retirement.

    “Prince Jim” — as some long-timers used to call him — repeatedly invoked a slur for longtime engineers and skilled machinists in the obligatory vanity “leadership” book he co-wrote. Those who cared too much about the integrity of the planes and not enough about the stock price were “phenomenally talented assholes”, and he encouraged his deputies to ostracize them into leaving the company. He initially refused to let nearly any of these talented assholes work on the 787 Dreamliner, instead outsourcing the vast majority of the development and engineering design of the brand-new, revolutionary wide-body jet to suppliers, many of which lacked engineering departments. The plan would save money while busting unions, a win-win, he promised investors. Instead, McNerney’s plan burned some $50 billion in excess of its budget and went three and a half years behind schedule.

There is a new trend that blames many fumbles on DEI. Boeing is not one of those. Instead, the short-term profit maximization mindset that drives stock prices upward is the main reason for the decline in this corporate behemoth.

March 15, 2024

Peter Turchin’s notion of the “overproduction of elites”

Filed under: Books, Bureaucracy, Economics, Education, USA — Tags: , , , , , , — Nicholas @ 03:00

Severian is on a mini-vacation at the moment, but still managed to find time to share some thoughts about Turchin’s “overproduction of elites”:

University graduation – a large crowd of students at a graduation ceremony in Ottawa, Ontario. This was the thumbnail image used on the “Elite overproduction” Wikimedia page, which seemed quite appropriate.
Photo by Faustin Tuyambaze via Wikimedia Commons.

Let us consider “the overproduction of elites”. Those who love Peter Turchin’s work love this phrase, as it finally gives a name to a phenomenon we’ve all noticed: The creation, promotion, and indeed valorization of what would more properly be called social barnacles — they don’t move, can’t change, and eventually bring whatever they infest to a complete halt. Those who dislike his work often haven’t read it, so they object to the use of the word “elite” — again, these are social barnacles; what’s elite about them?

Which is precisely Turchin’s point — “elite” is a descriptor of their lifestyle, and most importantly their self-image; it is almost perfectly opposed to their actual utility. The modern Ed Biz is set up to do little else but produce these (pseudo) elites, and therefore a kind of Say’s Law takes hold. Say’s Law, you’ll recall, is vulgarly summarized as “Supply creates its own demand,” and that’s what we see with the (pseudo) elites churned out by every college in the land — they expect, indeed they demand, “jobs” commensurate with their “education”, and thus make-work “jobs” in the Apparat are brought into being.

They take out massive student loans to get the “jobs”; they “work” the “jobs” to service the debt, and so on.

But that’s true of most “white-collar” “jobs” these days. What separates the “elites”, in Turchin’s usage, from the rest of them is not their utility, or lack thereof — the economy, such as it is, would function just as well (or not) with far fewer lawyers, accountants, insurance adjusters, and so on. The difference, comrades, is what we must call Revolutionary Class Consciousness, stealing nationalizing socializing liberating a phrase from Lenin.

An accountant, I’d wager, views his work as a technical specialty. They’re “rude mechanicals” (that’s Shakespeare, darlin’; evidently Mr. Ringo is an educated man). Maybe not so “rude” — accountants make good scratch; they’re middle to upper-middle class, economically — but basically technicians. Accounting is a highly-trained, well-compensated job, but that’s all it is: A job. Accounting is what an accountant does; it’s not what an accountant IS. Contrast that to the overproduced “elites”, in Turchin’s sense, and you see what Turchin’s sense really means: An “elite” really IS his job title.

Note the shift: His job title. As we all know, so many of the overproduced “elite” do no meaningful work. How could they? We could easily do this for most any “job” in the Apparat, but one example will suffice. Consider “Journalist”. Formerly called “Reporter”, and back then it required some actual productive output. Some “shoe leather”, as the phrase was. To find out what they were up to at City Hall, you actually had to physically go down to City Hall and follow the Mayor around. These days — the days when Reporters are now Journalists — it’s just stenography. And not even real stenography, Claudine Gay-style stenography — the Mayor’s press secretary (who probably went to college with you) emails you a press release; you change a word or two and then reprint it, basically verbatim, under your byline.

A monkey could be trained to do it. Hell, a chatbot could be trained to do it, and that’s probably a good quick-and-dirty definition of a Turchin-style overproduced “elite”: If whatever “work” he does could easily be replaced by a chatbot, with no appreciable drop-off in either productivity or quality. Because that’s the key to understanding these people: They know damn good and well, at some almost-but-not-quite conscious level, that they’re social barnacles. That is the “base” upon which the “superstructure” — again stealing terms from Onkel Karl — of their Revolutionary Class Consciousness is built.

February 18, 2024

Indigo’s very bad third quarter may not be all bad news

Filed under: Books, Business, Cancon — Tags: — Nicholas @ 05:00

In the latest SHuSH newsletter, Ken Whyte discusses Indigo’s latest earnings report and points out a few things that may indicate better things to come if the firm continues its “refocus” on bookselling as its primary line of business:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Indigo Books & Music last week reported its third quarter financial results, covering the months of October to December 2023. Because retailers make most of their money in advance of the holiday season, Indigo’s third quarter is its most important quarter — the one that makes or breaks the year. It wasn’t good.

Revenue for the three-month period was $371 million compared to $423 million in the same period last year. Net income for the quarter was $10 million compared to $34.3 million in the prior year. Given that the company had already lost more than $40 million in the first two quarters of the year and that its fourth quarter is traditionally soft, Indigo is looking at another annus horribilis come its March 31 year end.

After every quarter, Indigo’s CEO and CFO discuss the company’s results and take questions from shareholders on a conference call. I tuned in to this quarter’s call to hear company founder Heather Reisman, recently returned as CEO, admit that it was a “challenging” time for the business. She attributed the poor performance to the ongoing repercussions of last winter’s ransomware attack, overbuys of the wrong kind of general merchandise (non-book items such as dildos, blankets, and cheeseboards), and “the premature launch of our new e-commerce platform”.

Amid all the ugly results, I heard a few things that might strike anyone interested in the Canadian book publishing industry as positive.

You’ll remember that Heather spent a few months in the doghouse last summer after announcing a terrible fiscal 2023. She retired and then un-retired in September and, on her return, pledged to take SHuSH‘s advice, clear her shelves of the dildos and cheeseboards that represent half of Indigo’s business, and recommit to selling books. I wasn’t sure if she meant it or just wanted the business community to know she was up on SHuSH. Apparently she meant it.

On the call, she spoke at length of her “transformation plan” to “connect meaningfully with book lovers”. She apparently spent the autumn shrinking her general merchandise inventory — much of the poor financial performance was due to unloading it at steep discounts. In fact, if you back out the aggressive discounting of unwanted crap, Indigo’s recent holiday season hit a slightly higher level of profitability than the prior year. Heather meanwhile reinvested in book inventory, “consistent with our long-term brand mission to inspire reading”.

I was heartened by this, more so when it emerged on the call that there are sound business reasons for recommitting to books. The printed word turned out to be Indigo’s most resilient retail channel last year. It was down only 8 percent. General merchandise was down 18.5 percent. Heather thinks general merchandise was hit especially hard because the guy she’d hired to run the place in her absence didn’t have the right assortment in stores at Christmas. That may be true, but 18.5 percent is still a big drop.

The 8 percent decline in books looks okay in relation to the rest of Canada’s retail economy. Canadian Tire just announced its results from the last quarter of 2023 and revenue was down 17 percent across the board. That suggests books more than held their own in a weak environment.

It seems reasonable to expect that if Indigo follows through on Heather’s promise and refocuses its brand and its marketing efforts and its in-store experience on books and reading, the business has a future. It will take time, as she repeatedly reminded listeners on the call. There’s still a canopy bed in the middle of the company’s flagship bookstore in Ottawa.

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