by
Tim O'Reilly
archive/dissertation
Nick Srnicek,
Douglas Rushkoff,
Robert W. McChesney,
Christian Fuchs,
Tim O'Reilly,
Franklin Foer,
McKenzie Wark,
Mark Andrejevic,
Evgeny Morozov,
Wolfgang Streeck
possibly relevant for my dissertation
Meanwhile, there is an incentive to cut income for ordinary workers. Cutting wages drives up net income and thus the price of the stock in which executives are increasingly paid. Those executives who are not motivated by cupidity are held hostage. Any CEO who doesn’t keep growing the share price or who considers other interests than those of the shareholders is liable to lose his or her job or be subject to lawsuits. Even Silicon Valley firms whose founders retain controlling positions in their companies are not immune from pressure. Because so much of the compensation of their employees is now in stock, they can only continue to hire the best talent as long as the stock price continues to rise.
aligns with what i said in my contractor piece
Algorithmically derived knowledge is a new source of asymmetric market power. Hal Varian noted this problem in 1995, writing in a paper called “Economic Mechanism Design for Computerized Agents” that “to function effectively, a computerized agent has to know a lot about its owner’s preferences: e.g., his maximum willingness-to-pay for a good. But if the seller of a good can learn the buyer’s willingness-to-pay, he can make the buyer a take-it-or-leave it offer that will extract all of his surplus.” If the growing complaints of Uber drivers about lower fares, too many competing drivers, and longer wait times between pickups are any indication, Uber is optimizing for passengers and for its own profitability by extracting surplus from drivers.
Once companies take money from venture capitalists, they are committed to aiming for an exit. A typical venture fund is a partnership with a ten-year time horizon. Most of the investments are made within the first two to three years, with some money reserved for additional investment in the companies that are most promising. Once an entrepreneur takes money from a venture capitalist, he or she is promising to sell or go public within the lifetime of the fund. Yet VCs know that the vast majority of their deals will fail. Jon Oringer, the founder and CEO of Shutterstock, put it well in his advice to entrepreneurs: “What venture capital firms do is spread some number of millions of dollars to some number of companies. They’re not really rooting for every single one. All they need is for a few of them to succeed. It’s the way the model works. They have a totally different risk profile than you do. This is your only game in town. For the venture capital firm, it’s one of a hundred games in town.”
good explanation of VC funding. could be useful
The skills needed to take advantage of new technology proliferate and are developed over time through communities of practice that share expertise with each other. Over time, the new skills are routinized and it becomes easier to train lots of people to exercise them. It is at that point that they begin to affect productivity and improve the wages and incomes of large numbers of people.
[...]
[...] As coding becomes routinized, the educational needs of those practicing it become less demanding. For many types of programming, people need the equivalent of vocational training rather than an advanced software engineering or math degree. And that’s exactly what we see with the rise of coding academies and boot camps.
he agrees with my coding bootcamp theory!
[...] But beyond being pro-technology the government has also uncritically accepted much of Silicon Valley's rhetoric of disruptive innovation. It is remarkable that the Bay Area technology industry can continue to see itself as a collection of scrappy non-conformist outsiders while accumulating the greatest collection of private fortunes in the world. [...]
the way the industry sees itself - useful to draw out for Tribune piece
An investigation by Vanessa Houlder of the Financial Times showed that up to a third of the price gap between hotels and Airbnb rentals is due to tax differences, with hotels being subject to business taxes and value-added taxes that almost all Airbnb hosts avoid, while many Airbnb hosts benefit from the Sharing Economy allowance mentioned above. Airbnb also avoids costs such as commercial-level fire and safety protection and accessibility features, which its competitors must pay to install. [...]
also think about the labour implications ... more flexible, less "downtime" ie squeezing out more work per dollar
The Sharing Economy is a movement: it is a movement for deregulation. Major financial institutions and influential venture capital funds are seizing an opportunity to challenge rules made by democratic city governments around the world, and to reshape cities in their own interests. It’s not about building an alternative to a corporate-driven market economy, it’s about extending the deregulated free market into new areas of our lives. An enthusiasm for “the end of ownership,” the title of one Andreessen Horowitz blog post on the Sharing Economy, is difficult to take seriously when it comes from those who actually own the companies involved. [...]
Before this most recent trial, Uber CFO Brent Callinicos mentioned in a meeting with potential investors that Uber could easily raise rates to between 25% and 30%. Venture capitalist Mike Novogratz asked him a question: “You’ve got happy employees, you’ve got happy customers, you’ve got happy shareholders. The holy triumvirate are all really excited about your company. Why are you going to risk that and push the employees’ salary down 5%?” Callinicos responded “because we can."
it's about powerrrr. even the execs openly admit it
Uber has taken advantage of its drivers’ vulnerability by imposing more and more strenuous rules. Drivers must accept 90% of ride requests or they get a notification to “Please improve your acceptance rate if you want to continue to use the Uber platform.” Drivers claim to have been deactivated for being critical of the company on Twitter.
can set arbitrary metrics and drivers basically have to acquiesce. no regulators stepping in here and, as of yet, no established union structures to advocate on their behalf
also remember they must keep their rating really high (no appeal process, since there isnt a work contract)
Sharing Economy reputation systems have become fronts for hierarchical and centralized disciplinary systems, which have nothing to do with notions of “peer-to-peer” reputation, “algorithmic regulation” or regulation with a “lighter touch” through ratings. We trust strangers on Sharing Economy platforms for the same reason we trust hotel employees and restaurant waiters: because they are in precarious jobs where customer complaints can lead to disciplinary action. [...]
this is good