Today for my podcast, I read Capitalists Hate Capitalism, my latest column from Locus Magazine. It’s a meditation on the difference between feudalism and capitalism, and how to know which one you’re living under.

I recorded this on a day when I was home between book-tour stops (I’m out with my new techno crime-thriller, The Bezzle). Catch me this Wednesday (Apr 17) in Chicago at Anderson’s Books, then in Torino for the Biennale keynote on Apr 21, then in Marin County at Book Passage Corte Madera on Apr 27, then in Winnipeg, Calgary, Vancouver, and beyond! The canonical link for the schedule is here.

Varoufakis’s argument turns on an important distinction between two types of income: profits and rents. These terms have colloquial meanings that are widely understood, but Varoufakis is interested in the precise technical definitions used by economists.

For an economist, ‘‘profit’’ is income obtained by mixing capital – tools, machines, systems – with your employees’ labor. The value created by that labor is then divided between the worker, who draws a wage, and the capitalist, who takes the rest as profit.

‘‘Rent,’’ meanwhile, was income derived from owning something that the capitalist needs in order to realize a profit. In feudal times, hereditary lords owned plots of land that serfs were bound to, and those serfs owed an annual rent to their lords. This wasn’t a great deal for the serfs, but it also needled the nascent capitalist class, who would have very much preferred to have those lands enclosed for sheep grazing. The sheep would produce wool, which could be woven into cloth in the ‘‘dark, Satanic mills’’ of the industrial revolution. The former serfs, turned off their land, could be set to work in those factories.

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Today for my podcast, I read Subprime gadgets, originally published in my Pluralistic blog:

I recorded this on a day when I was home between book-tour stops (I’m out with my new techno crime-thriller, The Bezzle). Catch me on April 11 in Boston with Randall Munroe, on April 12th in Providence, Rhode Island, then onto Chicago, Torino, Winnipeg, Calgary, Vancouver and beyond! The canonical link for the schedule is here.

The promise of feudal security: “Surrender control over your digital life so that we, the wise, giant corporation, can ensure that you aren’t tricked into catastrophic blunders that expose you to harm”:

https://locusmag.com/2021/01/cory-doctorow-neofeudalism-and-the-digital-manor/

The tech giant is a feudal warlord whose platform is a fortress; move into the fortress and the warlord will defend you against the bandits roaming the lawless land beyond its walls.

That’s the promise, here’s the failure: What happens when the warlord decides to attack you? If a tech giant decides to do something that harms you, the fortress becomes a prison and the thick walls keep you in.

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Today for my podcast, I read The majority of censorship is self-censorship, originally published in my Pluralistic blog. It’s a breakdown of Ada Palmer’s excellent Reactor essay about the modern and historical context of censorship.

I recorded this on a day when I was home between book-tour stops (I’m out with my new techno crime-thriller, The Bezzle. Catch me tomorrow (Monday) in Seattle with Neal Stephenson at Third Place Books. Then it’s Powell’s in Portland, and then Tuscon. The canonical link for the schedule is here.

States – even very powerful states – that wish to censor lack the resources to accomplish totalizing censorship of the sort depicted in Nineteen Eighty-Four. They can’t go from house to house, searching every nook and cranny for copies of forbidden literature. The only way to kill an idea is to stop people from expressing it in the first place. Convincing people to censor themselves is, “dollar for dollar and man-hour for man-hour, much cheaper and more impactful than anything else a censorious regime can do.”

Ada invokes examples modern and ancient, including from her own area of specialty, the Inquisition and its treatment of Gailileo. The Inquistions didn’t set out to silence Galileo. If that had been its objective, it could have just assassinated him. This was cheap, easy and reliable! Instead, the Inquisition persecuted Galileo, in a very high-profile manner, making him and his ideas far more famous.

But this isn’t some early example of Inquisitorial Streisand Effect. The point of persecuting Galileo was to convince Descartes to self-censor, which he did. He took his manuscript back from the publisher and cut the sections the Inquisition was likely to find offensive. It wasn’t just Descartes: “thousands of other major thinkers of the time wrote differently, spoke differently, chose different projects, and passed different ideas on to the next century because they self-censored after the Galileo trial.”

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Today for my podcast, I read How I Got Scammed, originally published in my Pluralistic blog. It’s a story of how the attacker has to get lucky once, while the defender has to never make a single mistake.

This is my last podcast before I take off for my next book-tour, for my new novel, The Bezzle. I’m ranging far and wide: LA, San Francisco, Seattle, Vancouver, Calgary, Phoenix, Portland, Providence, Boston, New York City, Toronto, San Diego, Salt Lake City, Tucson, Chicago, Buffalo, as well as Torino and Tartu.

My first two stops are Weller Bookworks in Salt Lake City on Feb 21 and Mysterious Galaxy in San Diego on Feb 22, followed by LA (with Adam Conover!), Seattle (with Neal Stephenson!), and Portland. The canonical link for the schedule is here.

I wuz robbed.

More specifically, I was tricked by a phone-phisher pretending to be from my bank, and he convinced me to hand over my credit-card number, then did $8,000+ worth of fraud with it before I figured out what happened. And then he tried to do it again, a week later!

Here’s what happened. Over the Christmas holiday, I traveled to New Orleans. The day we landed, I hit a Chase ATM in the French Quarter for some cash, but the machine declined the transaction. Later in the day, we passed a little credit-union’s ATM and I used that one instead (I bank with a one-branch credit union and generally there’s no fee to use another CU’s ATM).

A couple days later, I got a call from my credit union. It was a weekend, during the holiday, and the guy who called was obviously working for my little CU’s after-hours fraud contractor. I’d dealt with these folks before – they service a ton of little credit unions, and generally the call quality isn’t great and the staff will often make mistakes like mispronouncing my credit union’s name.

That’s what happened here – the guy was on a terrible VOIP line and I had to ask him to readjust his mic before I could even understand him. He mispronounced my bank’s name and then asked if I’d attempted to spend $1,000 at an Apple Store in NYC that day. No, I said, and groaned inwardly. What a pain in the ass. Obviously, I’d had my ATM card skimmed – either at the Chase ATM (maybe that was why the transaction failed), or at the other credit union’s ATM (it had been a very cheap looking system).

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(Image: Cryteria, CC BY 3.0, modified)

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This week on my podcast, I read my latest Locus Magazine column. “What kind of bubble is AI?” In it, I ask what will be left behind after the AI bubble bursts:

You’ve got one week left to back the Kickstarter for my next novel, The Bezzle, the followup to Red Team Blues. I’m preselling hardcovers, ebooks, and an audiobook read by Wil Wheaton. Please consider backing it and helping support my work (including this podcast!).

But the most important residue after the bubble popped was the mil­lions of young people who’d been lured into dropping out of university in order to take dotcom jobs where they got all-expenses paid crash courses in HTML, Perl, and Python. This army of technologists was unique in that they were drawn from all sorts of backgrounds – art-school dropouts, hu­manities dropouts, dropouts from earth science and bioscience programs and other disciplines that had historically been consumers of technology, not producers of it.

This created a weird and often wonderful dynamic in the Bay Area, a brief respite between the go-go days of Bubble 1.0 and Bubble 2.0, a time when the cost of living plummeted in the Bay Area, as did the cost of office space, as did the cost of servers. People started making technology because it served a need, or because it delighted them, or both. Technologists briefly operated without the goad of VCs’ growth-at-all-costs spurs.

The bubble was terrible. VCs and scammers scooped up billions from pension funds and other institutional investors and wasted it on obviously doomed startups. But after all that “irrational exuberance” burned away, the ashes proved a fertile ground for new growth.

Contrast that bubble with, say, cryptocurrency/NFTs, or the complex financial derivatives that led up to the 2008 financial crisis. These crises left behind very little reusable residue. The expensively retrained physicists whom the finance sector taught to generate wildly defective risk-hedging algorithms were not able to apply that knowledge to create successor algo­rithms that were useful. The fraud of the cryptocurrency bubble was far more pervasive than the fraud in the dotcom bubble, so much so that without the fraud, there’s almost nothing left. A few programmers were trained in Rust, a very secure programming language that is broadly applicable elsewhere. But otherwise, the residue from crypto is a lot of bad digital art and worse Austrian economics.

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