Monopoly Now Wants You to Cheat—Just Like Real Capitalists

BOOK REVIEW

Cornered: The New Monopoly Capitalism & The Economics of Destruction, Author: Barry Lynn.

By Nick Cassella – The year was 1904, and Lizzie Maggie wanted to create a board game that acted as “a harsh criticism of wealth disparity.” Upset by the the inequality around her, Maggie aspired to ridicule and condemn the dire outcomes of unbridled capitalism. So she constructed the Landlord’s Game, which intended to educate players on the rules and regulations of realty and taxation. Eventually, it ended up being the precursor to the game-which-nobody-ever-finishes, Monopoly.

A long time has passed since then and it’s safe to say that Maggie’s hope has not been realized. Monopoly’s creator would look at today’s economic landscape and be disheartened.

It appears as if Hasbro is trying to draw attention to Monopoly’s original purpose by releasing a new “cheaters edition” this autumn.

The cheaters edition follows the rules of classic Monopoly, except this version encourages players to break them…They encourage players to cheat in various ways, from collecting rent on another player’s property or stealing money from the bank.

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Updates from Chicago Booth

Google and Facebook have an effective duopoly on online advertising. For the average person, why is that a problem? Prices haven’t gone up. Why should we care?
By Luigi Zingales, Tyler Cowen – Most people don’t perceive that as a problem. The perceived price [for using Google or Facebook] is zero. It’s not really zero, because we are giving up our data in exchange. Google and Facebook’s market power in advertising increases the cost of advertising, which eventually will be reflected in the price of goods.

Antitrust in Europe is much more effective. Look at the price of cell phones and cell-phone services. They are a fraction of the price in the US, with better services. The EU is at the front end of enforcement of competition, while the US has become complacent. In the EU, they have a new directive requiring every bank to give customers access to their data at the customer’s request. That transfer creates competition because it reduces the friction and creates more opportunity for new entry. The monopoly that Facebook and Google have of our data, number one, prevents entry, and number two, gives them tremendous power. more>

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Updates from Ciena

Powering Cable’s Future with Distributed Access

By Wayne Hickey – Legacy Hybrid Fiber Coax (HFC) networks, recently heralded as a blessing, are now stressed to keep up with demand; most head-ends and hubs have become saturated with racks and racks of Converged Cable Access Platform (CCAP) equipment. Analog infrastructure is expensive to operate, maintain, and simply won’t scale to future demands.

While HFC has been around for 20+ years, most traditional cable networks of today are based on Centralized Access Architecture (CAA), where the access network consists of a combination of analog optical and coaxial Radio Frequency (RF) technologies, and the core network (head-ends and hubs) consist of Cable Modem Termination Equipment (CMTS) and Edge Quadrature Amplitude Modulation (EQAM) equipment. EQAM helps deliver broadcast and narrowcast video, and CMTS provides broadband services.

In response to the afore mentioned market forces, cable operators are strategically extending fiber to digital fiber nodes, in a Distributed Access Architecture (DAA). This involves removing coaxial RF active devices like amplifiers and power inserters, and adding more digital fiber nodes. more>

Today, inflation. Tomorrow, crisis?

By Robert J. Samuelson – Until recently, inflation seemed to be dead or, at least, in a prolonged state of remission. It was beaten down by cost-saving technologies and a caution against raising wages and prices instilled by the Great Recession. From 2010 to 2015, annual inflation as measured by the CPI averaged about 1.5 percent, often too small to be noticed.

It’s doubtful that many economists believe that inflation is now so high. Remember those erratic month-to-month swings. But the pervasive nature of the inflation suggests that supply is shrinking compared with demand.

Inflation’s rebound seems to vindicate former Federal Reserve chair Janet L. Yellen, who argued that price increases were in hibernation, not the mortuary. Now, her successor, Jerome H. Powell, faces the tricky task of containing inflation without killing the economy.

What’s scarier is the possibility that higher inflation and interest rates will trigger a global financial crisis — some mixture of stock market collapses, bond and loan defaults and banking failures. more>

How Hunter-Gatherers May Hold the Key to our Economic Future

We need to rethink our relationships with the workplace.
By James Suzman – What happened on the Omaheke farms echoes broader trends transforming workplaces across the globe.

The same question also irked John Maynard Keynes when in the winter of 1929 he was contemplating the ruins of his personal fortune. Global stock markets had imploded and the Great Depression was slowly throttling the life out of the Euro-American economy.

To remind himself of the ephemeral nature of the crisis, he penned an optimistic essay entitled “The Economic Possibilities for our Grandchildren”. In it he argued that within a century technical innovation and increases in productivity would usher in a golden era of leisure that would liberate us from the tyranny of the clock, and enable us to thrive on the basis of working no more than fifteen hours per week.

Besides war, natural disasters and acts of God the only significant obstacle he saw to this Utopia being achieved was what he believed was our instinct to strive for more, to work and to create new wealth.

So he took the view that, save a few “purposeful money makers”, we would recognize the economic Utopia for what it was , slow down and “be able to enjoy the abundance when it comes.”

Keynes was right about improved productivity and technological innovation. According to Keynes’s reasoning, on the basis of labor productivity improvements alone we should not be working more than 11 hours a week now.

But, despite having the means to work much less, many of us now work as long and hard as we did before. With the industrial revolution now having merged into the digital revolution there is a good case to be made to suggest that we have reached an inflexion point in the history of work as important as the agricultural revolution. more>

Train PhD students to be thinkers not just specialists

Many doctoral curricula aim to produce narrowly focused researchers rather than critical thinkers. That can and must change.
By Gundula Bosch – Under pressure to turn out productive lab members quickly, many PhD programs in the biomedical sciences have shortened their courses, squeezing out opportunities for putting research into its wider context. Consequently, most PhD curricula are unlikely to nurture the big thinkers and creative problem-solvers that society needs.

That means students are taught every detail of a microbe’s life cycle but little about the life scientific. They need to be taught to recognize how errors can occur. Trainees should evaluate case studies derived from flawed real research, or use interdisciplinary detective games to find logical fallacies in the literature.

Above all, students must be shown the scientific process as it is — with its limitations and potential pitfalls as well as its fun side, such as serendipitous discoveries and hilarious blunders.

This is exactly the gap that I am trying to fill at Johns Hopkins University in Baltimore, Maryland, where a new graduate science program is entering its second year. more>

Updates from GE

Engine Czech: This University Partnership Is Set To Propel Turboprop Engineering To New Heights
By Tomas Kellner – GE has spent the last 100 years building GE Aviation into a leading force in the aerospace industry. Since it was founded in 1918, the business unit, which brought in $27 billion in revenue last year, has introduced key innovations: It built the first jet engine in the United States and the largest and most powerful jet engines in the world; supplied engine parts for the largest commercial jetliner; and pioneered new materials and technologies like composites and 3D printing.

But it’s been only in the last decade that its Business and General Aviation unit, which is building engines and other technology for private and business planes, decided to pay close attention to the multibillion-dollar turboprop market.

“The turboprop segment has been underserved for decades,” says Brad Mottier, who runs the GE Aviation division. “Airframe customers and operators alike complained about the lack of innovation.”

This week, Mottier and his business said they are inviting the sharpest young engineers in the Czech Republic to help them transform the way we power small aircraft. The company will partner with Prague’s Czech Technical University (CVUT) to help bring up a new generation of aerospace engineers.

Why Prague? The Czech capital is the place where GE decided to jump into the turboprop engine market in 2008, when it took a bet on a storied but struggling turboprop manufacturer, Walter Engines.

Just like the Wright brothers, founder Josef Walter started out fixing and building bicycles before venturing into aviation. Established in 1911, his company ran aviation factories in Italy, Spain, Poland and elsewhere in Europe that produced record-breaking engines for planes used by 13 sovereign air forces. more>

Guns and the British empire

BOOK REVIEW

Empire of Guns: The Violent Making of the Industrial Revolution, Author: Priya Satia.
An Enquiry into the Nature and Causes of the Wealth of Nations, Author: Adam Smith.

By Priya Satia – In the mid-18th century, advanced areas of northwest Europe and east and south Asia enjoyed roughly comparable life expectancy, rates of consumption, and potential for economic growth. But around 1800, in what scholars call the ‘great divergence’, the power and wealth of the West suddenly and dramatically eclipsed that of India, China and the Ottoman Empire.

The British in particular found vindication for their expanding empire in ideas of cultural and racial superiority.

Concerned about Britain’s aggressive pursuit of empire, Adam Smith presumed that the universal capacity for knowledge-sharing would ultimately right the wrongs of colonialism.

We know that history did not play out that way. Why not? Why didn’t knowledge-sharing equalize the world? Was Smith too generous or naive in believing that it had cultural purchase beyond Europe?

Smith’s naivety in fact lay in his presumption that the emerging political inequalities that he observed would not also shape the spread of knowledge. Like liberal thinkers today, he imagined that knowledge-exchange somehow transpires regardless of power relations.

In reality, in the 18th century, as now, power shaped knowledge-sharing everywhere.

In Britain, for instance, government offices engaged in military supply often prohibited contractors from patenting their inventions: a patent would slow the spread of innovation to other contractors and thus slow the production of urgently needed supplies.

While the British government thus abetted the sharing of know-how within Britain, it actively stifled such sharing abroad.

British industrialists copied Asian textiles and pottery without scrupling over ‘intellectual property’, but could rely on their government to minimize the threat of colonial competition with their own manufactures. more>

Stop Saying ‘Smart Cities’

Digital stardust won’t magically make future cities more affordable or resilient.
By Bruce Sterling – The term “smart city” is interesting yet not important, because nobody defines it. “Smart” is a snazzy political label used by a modern alliance of leftist urbanites and tech industrialists.

Smart-city devotees all over this world will agree that London is particularly smart. Why? London is a huge, ungainly beast whose cartwheeling urban life is in cranky, irrational disarray. London is a god-awful urban mess, but London does have some of the best international smart-city conferences.

The digital techniques that smart-city fans adore are flimsy and flashy—and some are even actively pernicious—but they absolutely will be used in cities. They already have an urban heritage. When you bury fiber-optic under the curbs around the town, then you get internet. When you have towers and smartphones, then you get portable ubiquity. When you break up a smartphone into its separate sensors, switches, and little radios, then you get the internet of things.

However, the cities of the future won’t be “smart,” or well-engineered, cleverly designed, just, clean, fair, green, sustainable, safe, healthy, affordable, or resilient. They won’t have any particularly higher ethical values of liberty, equality, or fraternity, either. The future smart city will be the internet, the mobile cloud, and a lot of weird paste-on gadgetry, deployed by City Hall, mostly for the sake of making towns more attractive to capital.

“Smart cities” merely want to be perceived as smart, when what they actually need is quite different. more>

3 Tips For Managing Innovation

By Alan Pentz – We are used to seeing innovators lauded for their brilliance. They are insightful geniuses who see around corners and live ahead of their times. In practice, most innovators stumble into success. Innovation is more about implementation and execution than it is about inspiration.

Don’t discount the importance of ideas. They are the starting point and the motivator to take action, just don’t stick to closely to those original ideas. As a government leader you should be careful to design your project planning to allow for adjustments and learning. Often the best insights come from ideas that occur during implementation. The original idea doesn’t always work but it leads you down a path to something that does. In other words don’t spend all your time planning up front.

Many leaders in government make two related mistakes. They demand too much validation of ideas before allowing them to go forward and once that validation has occurred they over-commit resources. Whatever you decide on most likely won’t work as advertised so why pretend like it will?

A few tips that can help you on the way are:

  • Establish what success looks like
  • Set the key performance indicators
  • Set formal gates or project reviews that projects must pass through

Managing innovation is a dynamic and shifting process. It’s your job as the leader to create the space to allow innovation to happen. more>