Economics

Economics and The Wealth of the Commons Conference

Thursday, May 9th, 2013

The Wealth of the Commons: A world beyond market & state is finally available online in its entirety.

I’ll post a review in the fullness of time, but for now I recommend reading the 73 essays in the book (mine is not the essay I’d contribute today, but think it useful anyway) not primarily as critiques of market, state, their combination, or economics — it’s very difficult to say anything new concerning these dominant institutions. Instead read the essays as meditations, explorations, and provocations for expanding the spaces in human society — across a huge range of activity — which are ruled not via exclusivity (of property or state control) but are nonetheless governed to the extent needed to prevent depredation.

The benefits of moving to commons regimes might be characterized any number of ways, e.g., reducing transaction costs, decreasing alienation and rent seeking, increasing autonomy and solidarity. Although a nobel prize in economics has been awarded for research on certain kinds of commons, my feeling is that the class is severely under-characterized and under-valued by social scientists, and thus by almost everyone else. At the extreme we might consider all of civilization and nature as commons upon which our seemingly dominant institutions are merely froth.

Another thing to keep in mind when reading the book’s diverse essays is that the commons “paradigm” is pluralistic. I wonder the extent to which reform of any institution, dominant or otherwise, away from capture and enclosure, toward the benefit and participation of all its constituents, might be characterized as commoning?

Whatever the scope of commoning, we don’t know how to do it very well. How to provision and govern resources, even knowledge, without exclusivity and control, can boggle the mind. I suspect there is tremendous room to increase the freedom and equality of all humans through learning-by-doing (and researching) more activities in a commons-orientated way. One might say our lack of knowledge about the commons is a tragedy.

Later this month the Economics and the Commons Conference, organized by Wealth of the Commons editors David Bollier and Silke Helfrich, with Michel Bauwens, will bring together 240 researchers, practitioners, and advocates deeply enmeshed in various commons efforts. There will be overlapping streams on nature, work, money, infrastructure, and the one I’m coordinator for, knowledge.

I agreed to coordinate the stream because I found exchanges with Bollier and Helfrich stimulating (concerning my book essay, a panel on the problematic relationship of Creative Commons and commons, and subsequently), and because I’m eager to consider knowledge commoning (e.g., free software, culture, open access, copyright reform) outside of their usual venues and endlessly repeated debates, and because I feel that knowledge commons movements have failed dismally to communicate their pertinence to each other and with the rest of the world — thus I welcome the challenge and test case to communicate the pertinence of all knowledge commons movements to other self-described commoners — and finally, to learn from them.

Here are the key themes I hope we can explore in the stream:

  • All commons as knowledge commons, e.g., the shared knowledge necessary to do anything in a commons-oriented way, easily forgotten once exclusivity and control take hold.
  • Knowledge enclosure and commoning throughout history, pre-dating copyright and patent, let alone computers.
  • How to think about and collaborate with contemporary knowledge commoners outside of the contractually constructed and legal reform paradigms, eg transparency and filesharing activists.
  • How can we characterize the value of knowledge commons in ways that can be critiqued and thus are possibly convincing? What would a knowledge commons research agenda look like?
  • If we accept moving the provisioning of almost all knowledge to the commons as an achievable and necessary goal, what strategies and controversies of existing knowledge commons movements (tuned to react against burgeoning enclosure and make incremental progress, while mostly accepting the dominant “intellectual property” discourse) might be reconsidered?

This may appear vastly too much material to cover in approximately 5 hours of dedicated stream sessions, but the methodology consists of brief interventions and debates, not long presentations, and the goal is provocation of new, more commons-oriented, and more cross-cutting strategies and collaborations among knowledge commoners and others, not firm conclusions.

I aim for plenty of stream documentation and followup, but to start the public conversation (the conference has not been publicized thus far due to a hard limit on attendees; now those are settled) by asking each of the “knowledge commoner” participants to recommend a resource (article, blog post, presentation, book, website…) that will inform the conversation on one or more of the themes above. Suggestions are welcome from everyone, attending or not; leave a comment or add to the wiki. Critiques of any of the above also wanted!

Inequality Promotion data point: Intellectual Protectionist CEO pay

Tuesday, May 7th, 2013

Confirming my biases we have For Media Moguls, Paydays That Stand Out. Media company CEOs are the highest compensated of any industry, and are far more highly compensated relative to market capitalization than any other (as has often been pointed out, media companies are a small part of the overall economy and in theory ought to just be bought out in order to end their assault on freedom of communications).

But an even higher proportion of the most compensated CEOs are dependent on intellectual protectionism than is accounted for by the media category. #1 is the CEO of Oracle, #6 is the CEO of Nike (I’m guessing that suppression of counterfeiting is significant), and would-be (due to late filing) #2 is the CEO of Activision-Blizzard, a gaming software company.

Why are IP CEOs unusually highly compensated (thus unusually contributing to inequality)? Why? The article cites concentrated ownership and weak governance of media companies (which begs another question) and concludes:

For the time being, traditional media business models are prospering and the leaders of the incumbents are fat and happy. But that might make them bigger, slower targets and in the end, easier to overtake.

I wouldn’t count on it. If you think inequality is a problem (inherently or because it leads to inequality of power, then law) then intellectual protectionism must be attacked on policy and product fronts.

Non-auditable accounting software

Wednesday, May 1st, 2013

Software Freedom Conservancy has a plan to help all non-profit organizations (NPOs) by creating an Open Source and Free Software accounting system usable by non-technical bookkeepers, accountants, and non-profit managers. You can help us do it by donating now.

To keep their books and produce annual government filings, most NPOs rely on proprietary software, paying exorbitant licensing fees. This is fundamentally at cross purposes with their underlying missions of charity, equality, democracy, and sharing.

You can help Conservancy fix this problem by . We seek to
raise $75,000 to employ a developer for one year to make substantial progress on this project.

This project has the potential to save the non-profit sector millions in licensing fees every year. Even non-profits that continue to use proprietary accounting software will benefit, since the existence of quality Open Source and Free Software for a particular task curtails predatory behavior by proprietary software companies, and creates a new standard of comparison.

But, more powerfully, this project’s realization will increase the agility and collaborative potential for the non-profit sector — a boon to funders, boards, and employees — bringing the Free Software and general NPO communities into closer collaboration and understanding.

I contributed to the above blurb (and would love to hear critiques of the broad claims therein about free software and non-profit missions), but not to my favorite part of the plan: phase 0, in which existing free software accounting software will be evaluated, with expert input from non-profit organizations currently using various packages, in order to choose a base for further development. How many funding campaigns propose to build something without any understanding of what already exists? Almost all as far as I can tell, and almost always a suboptimal move, is my hunch.

This move is in line with one way of looking at Software Freedom Conservancy’s role: to save free software projects from the suboptimality of another kind of NIH — starting an independent non-profit organization — projects (about 30 so far, git probably the best known) join Software Freedom Conservancy, which takes care of administration such as accounting and provides other services.

I’m generally impressed by Software Freedom Conservancy’s work (read the annual report, pretty and informative) and have served on its project evaluation committee (i.e., intake; applying to join Software Freedom Conservancy is a good motivator to get a lot of best practices in place) for about a year and joined its board the beginning of this year, recently announced.

Please donate to the campaign to improve free software accounting for non-profits. In a past role as non-profit manager at Creative Commons, I absolutely hated the internal non-transparency and dependency of our accountants using a proprietary accounting package tied to a particular Windows server. Doing anything about it was nowhere near the top of my list of things I would’ve or could’ve done given more time or hindsight, but I would’ve been really, really happy if someone else had fixed it, much like I was really happy that CiviCRM became a viable free software customer/donor/constituent/funder relationship management system at the right time for us to scrap a very simple in-house system and not become locked into one of the awful proprietary packages (not soon enough to avoid listening to sales pitches in which the salespeople blatantly lied about implementation costs and product capabilities). Now is the time for someone else to take care of the accounting situation — please help by donating — as I just did.

Oh, and even if you don’t care about non-profits at all, I’m pretty confident that this project will help free software accounting in general, and help is badly needed — LWN’s series on the subject last year is gripping reading. Seriously, it is ridiculous that such fundamental infrastructure for running organizations of all kinds and thus society is itself non-auditable.

Freedom At Stake As Oracle Clings To Java API Copyrights In Google Fight

Monday, April 29th, 2013

Developer Freedom At Stake As Oracle Clings To Java API Copyrights In Google Fight (dated 2013-03-30; I failed to complete this post in one sitting and let it sit…):

Oracle lost in their attempt to protect their position using patents. They lost in their attempt to claim Google copied anything but a few lines of code. If they succeed in claiming you need their permission to use the Java APIs that they pushed as a community standard, software developers and innovation will be the losers. Learning the Java language is relatively simple, but mastering its APIs is a major investment you make as a Java developer. What Android did for Java developers is to allow them to make use of their individual career and professional investment to engage in a mobile marketplace that Sun failed to properly engage in.

Johan Söderberg, Hackers GNUnited! (2008; appeared as chapter in book I also contributed to; Söderberg’s text stuck with me, as I’ve quoted an extended bit of it before):

Intellectual property rights prevent mobility of employees in so forth that their knowledge are locked in in a proprietary standard that is owned by the employer. This factor is all the more important since most of the tools that programmers are working with are available as cheap consumer goods (computers, etc.). The company holds no advantage over the worker in providing these facilities (in comparison to the blue-collar operator referred to above whose knowledge is bound to the Fordist machine park). When the source code is closed behind copyrights and patents, however, large sums of money is required to access the software tools. In this way, the owner/firm gains the edge back over the labourer/programmer.

These kinds of critiques of intellectual protectionism from the perspective of developer freedom to do their trade, in addition to developer freedom to modify and control their computing environment, to tinker, are too rare. I’m also reminded of the fun title Noncompete Agreements Are The DRM Of Human Capital. So are copyright and patent.

Back to Developer Freedom At Stake…:

Will our economy thrive and be more competitive because companies can easily switch from one service provider to the other by leveraging identical APIs? Or will our economy be throttled by allowing vendors to inhibit competition through API lock-in? And should this happen only because a handful of legacy software vendors wanted to protect their franchises for a few more years?

Clearly this isn’t just about developer freedom. Nor is it just about user freedom — non-users are affected by anti-competitive practices — and the freedom of all is put at risk.

Bonus: What do APIs have in common with advertising?

Why DRM in HTML5 and what to do about it

Tuesday, April 23rd, 2013

Kẏra writes Don’t let the myths fool you: the W3C’s plan for DRM in HTML5 is a betrayal to all Web users.

Agreed, but what to do about it?

In the short term, the solution is to convince W3C that moving forward will be an embarrassing disaster, nevermind what some of its for-profit members want. This has been accomplished before, in particular 2001 when many wanted W3C to have a RAND (allowing so-called Reasonable And Non-Discriminatory fees to be required for implementing a standard) patent policy, but they were embarrassed into finally doing the right thing, mandating RF (Royalty Free) patent licensing by participants in W3C standards.

One small way to help convince the W3C is to follow Kẏra’s recommendation to sign the Free Software Foundation’s No DRM in HTML5 petition.

Long term, the only way the DRM threat is going to be put to rest is for free cultural works to become culturally relevant, if not dominant (the only unambiguous example of such as yet is Wikipedia exploding the category known as “encyclopedia”). One of Kẏra’s points is “The Web doesn’t need big media; big media needs the Web.” True, but individual web companies do fear big media and hope for an advantage over competitors by doing deals with big media, including deals selling out The Web writ large (that’s the “Why” in this post’s title).

To put it another way, agitation for “Hollyweb” will continue until Hollywood is no longer viewed as the peak of culture. I don’t mean just, and perhaps not even, “Hollywood movies”, but also the economic, ethical, social and other assumptions that lead us to demand delivery of more pyramids over protecting and promoting freedom and equality.

I don’t have a petition to recommend signing in order to help increase the relevance and dominance and hence unleash the liberation potential of knowledge commons. Every bit of using, recommending, building, advocating for as policy, and shifting the conversation toward intellectual freedom helps.

Waiting out DRM (and intellectual protectionism in general) is not a winning strategy. There is no deterministic path for other media to follow music away from DRM, and indeed there is a threat that a faux-standard as proposed will mean that DRM becomes the expectation and demand of/by record companies, again. In general bad policy abets bad policy and monopoly abets monopoly. The reverse of each is also true. If you aren’t helping make freedom real and real popular, you hate freedom!☻

Pat Choate and Intellectual Protectionism

Saturday, April 13th, 2013

From at least the mid-1980s through the mid-1990s Pat Choate seemed to me to be the go-to pundit for anti-foreign (where “foreign” means “not USian”) punditry. His basic view seemed to be that foreign businesses, governments, and people were bad and sought to undermine everything USian. Hence he was opposed to trade and immigration, and sought a variety of nationalist and nativist policies to fight this conspiracy. I hated everything he wrote. “Protectionist” was a charitable description of him.

He ran for VP with Ross Perot in 1996. I ceased to notice him from about that time, probably largely because I started to cut back on following the spectacle of current events around then.

Today I learned via two posts at Techdirt that Choate had by 2005 (date of a book he wrote titled Hot Property, with hilarious burning compact disc book cover art) added intellectual protectionism to his repertoire:

We recently posted about an absolutely ridiculous NY Times op-ed piece in which Pat Choate argued both that patent laws have been getting weaker, and that if we had today’s patent laws in the 1970s that Apple and Microsoft wouldn’t have survived since bigger companies would just copy what they were doing and put them out of business. We noted that this was completely laughable to anyone who knew the actual history. A day or so ago, someone (and forgive me, because I can no longer find the tweet) pointed me on Twitter to a 45 minute excerpt from a documentary about the early days of Microsoft and Apple and it’s worth watching just to show how laughably wrong Choate obviously is.

I’m sorry to report that I get some dim satisfaction from learning that Choate’s trajectory led him to intellectual protectionism and feel some additional validation for using that term to describe copyright, patent, trademark, and nearby.

I also noticed today, in searching for “intellectual protectionism”, that Rick Falkvinge is thinking about using the term. I endorse that, though more recently my preferred expansion of “IP” is Inequality Promotion — “intellectual” and “protect” each sound nice, and there’s precious little about equality in “IP” discourse. But there is a bit about inequality in the first use I can find of “intellectual protectionism” more or less in contrast to “intellectual property”, a 1999 OECD publication The Future of the Global Economy: Towards a Long Boom? in a description of a “high friction world” scenario:

This is a winner-take-all economy where a small knowledge elite captures most of the economic value. The economic structure rewards a few and leaves the great majority behind. The resulting social friction of a two-tier society consisting of “knows” and “know-nots” consumes much of the economy’s potential in a vicious cycle.

The fruits of innovation drive economic growth in some parts of the world, creating local islands of prosperity. Highly educated knowledge workers do very well, but a modest education produces little economic benefit. Low wages characterise most service and manufacturing work. Overall, organisations evolve very slowly and remain mainly traditional in form. The “fast” gradually pull away from the “slow”. Highly divergent outcomes result as a few countries do well behind high-security shields and others fall behind. Intellectual protectionism is rife and the free flow of ideas is highly constrained by those who want to protect the value of their intellectual property and those who want to prevent the informational “pollution” of their populations.

How I earned a 286% return in less than 1 year investing in the Free Software Foundation

Monday, April 1st, 2013

At the FSF’s annual conference last year I pledged to donate 100BTC to the FSF, and did so on April 6. I bought about 121.95 bitcoins, for a price of about US$4.92/BTC (made easier thanks to Greg Maxwell’s vouching for me on #bitcoin-otc; thanks!) and haven’t given any thought to the remainder till today. As I write this the USD/BTC price is approximately US$105.40/BTC.

((21.95*105.40)-(121.95*4.92))/(121.95*4.92) = 2.8559218925522587

You too can invest! How to buy bitcoins. Donate to the FSF and other “notable” bitcoin-accepting organizations, many of which I endorse. Results not typical.

For the long term, I’m sticking with my prediction of almost two years ago that “governments and any other entity with a large measure of control over how it can demand payment will launch their own cryptocurrencies, seeking endowments for themselves much as Bitcoin’s inventor and early adopters may have gained.”

I have a similar long-term prediction for seasteading: “if seasteads did meet engineering and economic challenges, they would merely be used by states to stake exclusive claims to all of the planet’s surface.”

April 1 birthday gifts

Monday, April 1st, 2013

Wish me “happy birthday” on Facebook, “endorse” me for “scalability” on LinkedIn.

More seriously, why not give a gift to all? Extrapolate a bit from notices found on individual works (examples abound, often stipulating a public license, but a see classic one, stipulating public domain):

Unless stated otherwise, everything by me, Mike Linksvayer, published anywhere, is hereby placed in the public domain.

Evocation and scalability before equivocation and specification of edge cases and mechanisms to handle them.

Other random acts of kindness, calculated acts generating positive externality, and atavistic art, all welcome.

What to do about democratically elected terrorist regimes?

Sunday, March 31st, 2013

For example, the United States.

Massive amounts of analysis and punditry has been offered regarding what do about non-elected terrorist regimes and non-state terrorists.

But what of democracies that engage in terror? Is analysis lacking because would-be analysts are too caught up in the mythology of the same regimes, or because coercion is off the table and imagining non-coercive solutions isn’t fun? Why should coercive solutions be off the table anyway? A criminal organization with fair internal governance is still a criminal organization. Those who commit and authorize crimes should be brought to justice, their organizations brought under supervision (one idea involving more democracy: extra-jurisdictional franchise), and laws to deter and penalize such crime strengthened.

Or we could leave the solution to the market, assuming that democratically elected terrorist regimes will eventually bankrupt themselves.

10 years

Sunday, March 24th, 2013

2003-03-19 you did not stop the U.S. invasion of Iraq.

Don’t feel bad about not going to protests if you didn’t. Those are bullshit spectacle. Stopping war takes years of good politics; I don’t mean whatever you think constitutes goodness on petty “domestic” and “economic” issues.

You are responsible for mass murder and torture of some hundreds of thousands.

That will cost you not the $50 billion estimated by U.S. regime supporters, nor the $700 billion estimated by some in 2005. No, nearly $4 trillion. Not the usual 10x underestimate of financial war costs, but nearly 100x:

Total US federal spending associated with the Iraq war has been $1.7 trillion through FY2013. In addition, future health and disability payments for veterans will total $590 billion and interest accrued to pay for the war will add up to $3.9 trillion.

I haven’t written about the steady progression of these numbers for years because they cease to be news, I have purposefully followed current news less and less, and the non-financial tragedies you’ve inflicted are far more outrageous.

But a 10 year anniversary seems an occasion to raise the issue again, even if I missed it by several days due to aforementioned not following the news.

What have you done to exonerate yourself of the crime of mass murder? A martyr won’t absolve you, so the least you could do is to help save Bradley Manning.

“You” is not limited to U.S. citizens. The world, including its states, is highly interdependent, and voter/elected politician only one channel of responsibility.

Oppose “your” and all security states and all their theater and propaganda, including hate of people in other jurisdictions. All lies and delusion. This has to be the beginning of what I referred to as good politics above.