“Comcast Owns the Internet” (via Chasing Fat Tails)

At the moment, a great deal of weeping over the defeat of net neutrality is justified. Unfortunately the war for the internet can be lost on more than one front at a time. So, “Chasing Fat Tails” explains.

James Pilant

h/t ars technica Net neutrality has long been the goal of people who care about keeping the Internet free from corporate influence.  The Internet has tremendous potential, but it can only be realized if all users have access to fast speeds that deliver all content at the same rate.  Otherwise Internet Service Providers will be able to privilege some content and users over others, the Internet will balkanize, and the tremendous benefits of a wired … Read More

via Chasing Fat Tails

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Manufacturing Enemies

“Pleas hellp,” Tudor Ureche, a college student who was participating in the U.S. government’s J-1 visa program, wrote in the email. He added that he was suffering from severe back pain from the work, and that his bosses said his temporary visa would be revoked if he complained.

Ureche never received a response. But two months later, at least 200 foreign exchange students walked out of the Pennsylvania factory in protest, saying they spent thousands of dollars to pay for their cultural exchange visa only to end up in grueling factory jobs. (The factory packed Hershey’s candy, but was operated by a subcontractor.)

You can find all this here from today’s Yahoo News.

The J-1 visa program was designed to give students from overseas a taste of the American way of life during the Cold War. Presumably, our honored guests would go home with a new appreciation of the wonders of manufacturing in this great nation. Well, times have changed. Now, we give students a taste of our current corporate decision making process. Our new welcome for these foreign students is a semi-minimum wage job from which room and board are deducted so they have even less money than when they came!

Don’t believe me? Here’s a quote from Yahoo News

The J-1 visa program brings foreign students to the country to work for two months and learn English, and was designed in part to fill seasonal tourism jobs at resorts and seaside towns. The 400 students employed at a Pennsylvania factory that packages Hershey’s candies told The New York Times that even though they make $8.35 an hour, their rent and program fees are deducted from their paychecks, leaving them with less money than they spent to get the visas and travel to the country in the first place.

So, our brilliant, innovative and thoroughly patriotic corporate leaders using subcontractors take idealistic, impressionable youth from foreign cultures, uses them for cheap labor, bullying and abusing them in the process, and then sends them home. Wow, so it seems we Americans don’t have enough enemies in the world, we have to manufacture more of them?

Let’s be blunt. If bringing foreign youth here at their own expense and using them for semi-slave labor isn’t illegal, it should be. If this is in anyway, some weird throwback program to the Cold War, it needs to end now.

We Americans have a responsibility to treat our guests with a modicum of respect. Letting corporations, in particular, Hersheys’ sub-contractors do these things is wrong. It’s vile.

It’s bad enough that Americans have to deal with soulless corporate minions on a regular basis. Subjecting would be friends to these people is more than cruel, it is counterproductive.

James Pilant

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The Average Stock Is Held For 22 Seconds! – The Logical Result of Computer Trading

Michael Hudson

From Michael Hudson

<em>Take any stock in the United States. The average time in which you hold a stock is–it’s gone up from 20 seconds to 22 seconds in the last year. Most trades are computerized. Most trades are short-term. The average foreign currency investment lasts–it’s up now to 30 seconds, up from 28 seconds last month.

What does that mean for you? If you are an actual human being you are competing, when you make a stock purchase, with a supercomputer, like the ones they use to analyze the weather. That is why the amount of time a stock is held is so low – computer trading.

It’s not a level playing field. A more apt comparison might be a gambling house where the table is rigged to favor the owner almost but not quite always every time. You have to have the occasional lucky winner whose stories will keep the others coming in.

An exaggeration?

Okay, how about this from 2009 –

With all of the scrutiny that high-frequency trading is now under in the media and in Congress, the New York Stock Exchange is probably none too thrilled that the Wall Street Journal has uncovered fresh details of NYSE’s giant new datacenter, which the exchange is building in a former New Jersey quarry. The new datacenter will significantly advance the amount of computer-automated trading that already dominates global markets, housing as it will “several football fields of cutting-edge computing equipment for hedge funds and other firms that engage in high-frequency trading,” according to the WSJ. So if you were recently shocked to learn that an estimated 70 percent of stock trading is just computers trading against one another, get ready for that number to go even higher.

Or this –

Fewer and fewer Wall Street traders are human beings. Instead, they’re computersthat execute trades in milliseconds (a millisecond is one thousandth of a second). A forerunner of today’s robotic trading, computerized program trading, was largely responsible for the stock market crash of October 19, 1987, when the Dow Jones industrial average plunged 22.6%.

 

This kind of computer trading or should I say, Algorithmic trading, isn’t going away. So if you are a mere mortal, you might find your ability to make money on stock a little constricted by non-human competitors.

James Pilant

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Rush Limbaugh Refuted

 

I found this on Facebook and I am delighted to put it on my blog for you to see. Rush Limbaugh is not alone in this kind of talk. I have seen a great deal of criticism aimed at the protestors alleging everything from rats and drugs to public sex. This defamation is an attempt to discredit the movement while avoiding talking about the very serious issues that these protestors are raising. I don’t like it. It’s not fair. Although, it is exactly the response I expected from much of our beltway media.

We need change and we need it badly – not just on Wall Street but in the media as well.

James Pilant

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Ethics Bob Takes on the Topic of the Wall Street Protests

I consider Ethics Bob to be a buddy. We often write about the same topics. Here is his take on the wall street protests.

James Pilant

From Ethics Bob,

Ethics Bob

entitled –

 Take “Occupy Wall Street” complaints seriously, don’t use force to disperse them

Americans pay attention when a lot of people turn out. And so there’s lots of attention for “Occupy Wall Street,” or OWS for short. Thousands of people, mostly of the Millennial generation (born since 1982) are camping out in Zuccotti Park, just two blocks from Wall Street’s New York Stock Exchange.

The Right doesn’t like OWS: “I think it’s dangerous, this class warfare,” Mitt Romney opines. “Growing mobs,” snarls Eric Cantor. “Anti-American,” Larry Kudlow charges. “The beginning of totalitarianism,” warns Ann Coulter.

OWS comprises lots of people, diverse in temperament, opinion, and goals, but they are engaging in old-fashioned American protest, this one against corporate greed, social inequality, and joblessness.

Some dismiss them as incoherent, but that’s a mistake. They’re angry about the way our society has moved away from the American dream and toward greater and greater inequality. Like them or not, OWS is a growing force. Our country needs to take their complaint seriously. They may be as consequential as Tahrir Square. Or more. Or maybe not.

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Wall Street Protests, the 99 percenters, Spread Around the Globe

NEW YORK, NY - SEPTEMBER 26: A demonstrator ho...
Image by Getty Images via @daylife

It seems the winter of our discontent is spreading around the world. A small movement, the 99 percenters, continues to catch fire. I wonder if the great corporations are having studies done on the globalization of dissent?

Social media is not limited geographically to the United States, and that is increasingly important. The multinationals could organize for decades both on a national and international basis with little competition from dissent but that advantage is gone.

James Pilant

From Radio Netherlands Worldwide

Occupy Wall Street, the US protest against the financial elite and the banking sector, is spreading around the world. There are demonstrations planned for London’s financial district – and also for The Hague and Amsterdam. Occupy The Hague is demanding attention for a gamut of economic and political problems.

The Wall Street protests, which began last month, against “corporate greed and corrupt politics” have not only been repeated elsewhere in the country, in cities like Chicago, Los Angeles and Boston, the movement has spread to Canada and Europe. Demonstrations are planned for 15 October in The Hague and  a day later in Amsterdam. But Occupy The Hague goes beyond a protest against the financial system.

“The protest has scope for a range of opinions and interests,” spokesperson Robin van Boven says, “varying from the economic crisis to the Libyan uprising.”

“All these things are cause for concern. The point is that we want people to be aware of the problems that exist, and join us in looking for a solution. We think that at the moment politicians haven’t taken enough action.”

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Business Ethics in History – Abraham Lincoln

… An old acquaintance in Illinois, having organized a bank under the new National Bank Act, wrote offering some of the stock to Lincoln, who replied with thanks, saying he recognized that stock in a good national bank would be a good thing to hold, but he did not feel that he, as President, ought to profit from a law which had been passed under his administration. “He seemed to wish to avoid even the appearance of evil,” said the banker.

Carl Sandburg’s

Abrahm Lincoln – The War Years, 1861-1864

Page 344

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My response to Andi’s Questions

Andi concluded his comments on my last post by asking me these questions, which I will now try to answer.

Whether protests are morally right or wrong, is difficult. What do you think about the following questions?:

Can a protest really influence decisions that there are fair outcomes for everybody? Or is it only a way to highlight unfair procedures?

I have no utopian vision of a world where everyone has a just outcome. It’s not going to happen. Life is messy and many things unfair. However, governments and economies are man made creations and there is no natural law governing them only numerical limitations, so if outcomes are produced by men those outcomes can be changed by men.

Income inequality only reached this level over many years and as a result of many changes both international and purely domestic. So, what can be changed in one direction can be moved into another.

Change is possible.

Now, can the protestors generate any change in the philosophy of the marketplace. Yes,

Over the last 150 years two basic philosophies have run through American Business. The first set is based on Christianity. It’s most pure economic form is the Social Gospel. This continues to the modern day with parallel visions like Marxism which is essentially an economic religion.

The second set is Social Darwinism. Herbert Spencer will be its prophet and it may very well have culminated philosophically with Milton Friedman. Edmund Spencer took the survival of the fittest concept from Darwin. Milton Friedman added Darwin’s concept of natural selection, that is, the process of evolution must not be interfered with to favor the weak.

These have fluctuated in power and influence. Currently, the debate leans very heavily in the direction of free market fundamentalism, the Chicago School of Economics.

What effect can the Wall Street Protests have?

First, they shift the discussion. For most of the previous year, the public was assailed with tales of the dangers of deficit spending, a discussion focus of the American beltway elites but a subject with precious little importance to the great mass of Americans.

Second, it makes the wealthy and the beltway elites uncomfortable. The disdain and over reactions from the right wing media are palpable. You have to understand that in this country, the wealthy are insulated from virtually any criticism. Over the last forty years wealth has become a sign of virtue in many circles. They live in world where the media idealizes them, where the government is an ally which takes their needs seriously and where the lower classes are discussed as overpaid, lazy, fat and lacking initiative. To hear a contrary dialogue is to them astonishing. Let them be astonished.

Third, and most critical, the movement is laying the groundwork for groups of citizens to follow, a template for action. This means that in the future when there is a policy placed before the public, these groups spawned by this political action will be able to present alternatives or start initiatives of their own. Policy battles that have been one-sides will become disputes where more than one point of view is heard.

James Pilant

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Andi comments on the previous post – The 99 Percenters – Why is New York the Center of their Protests?

This is a comment on a previous post –  The 99 Percenters – Why is New York the Center of their Protests?

(The article was actually motivated by one of my reader’s comments on Facebook and while I hope there are elements of a call for economic justice implied in it, I didn’t have any ethical argument except for inequality itself – James Pilant)

Here’s Andi’s response to the post –

While reading this article, I wondered about the ethics and what the author wanted us to tell. Is it the question whether it is morally right that people do the protests in NY or is it the question if it’s ethically that 1 percent of the population in NY owns about 44 percent of all income?! Or is it the more general question whether it is ethically to do protests in the street?

To answer this question it is necessary to know the definition of an ethical decision. A decision is ethically if it affects others, has alternative courses of action and is perceived as ethically relevant by one or more parties.
By comparing the questions with the definition, it becomes clear that the second question cannot be discussed under ethical terms. Only the questions whether it is ethically to to protests or to do them in NY, has alternative courses of actions.
Therefore I focus on protests and try to state my opinion about it.

To answer the question with the postmodern ethical theory (= decision is morally right if the person follows his emotions in a situation), I would say that doing protests to point to abuses is morally okay because it is a good medium to raise high attention in the press and in tv newscasts. But that’s only half of the story. To answer this question in a more rational view, the combination of postmodern ethical theories and ethics of rights and justice is needed. Here the question of fair procedures or fair outcomes comes up.

Whether protests are morally right or wrong, is difficult. What do you think about the following questions?:

Can a protest really influence decisions that there are fair outcomes for everybody? Or is it only a way to highlight unfair procedures?

My great thanks to Andi for taking the time to comment and not just to comment but to comment with intelligence and insight. I want Andi to know that author identification is up to the contributor. If you want to be clearly identified with e-mail, blog links, etc.., you have only to ask and I will modify the posting.

Thanks!!!

James Pilant

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The 99 Percenters – Why is New York the Center of their Protests?

There are a lot of good reasons for centering the protests in New York, the proximity of the video and print media, the enormous number of opinion leaders in the area, and certainly the ability to recruit and maintain large numbers of protestors.

This would have been very difficult in Washington. Most of that city is a ghetto with little of the private infrastructure available in a modern metropolitan area.

But the history of Wall Street has to be a factor. It’s been a center of corporate power in the United States for almost two full centuries, and only the excesses of the Gilded Age rival the current levels of self-contentedness and pride among the wealthy today.

But there is also this article below. It has some powerful observations about why New York is such a good venue for the 99 percenters. —

Christopher Ketcham writing in McClatchy’s has a new article entitled –

Occupy Wall Street: The new populists?

The focal point, however, is specific: Manhattan. The capital of the finance corporations whose speculation, chicanery and outright fraud have produced havoc and pain for so many Americans. It sets the model nationally for a metastasizing economic regression: the maldistribution of wealth into the hands of the few.

Out of the 25 largest cities in the United States, New York is the most unequal when it comes to income distribution. In New York, the top 1 percent of households claimed 44 percent of all income during 2007 (the last year for which data are available). That’s almost twice the record-high levels among the 1 Percenters nationwide, who claimed 23.5 percent of all national income in 2007. During the housing bubble that ended in our current calamity, the average income for the 1 Percenters in New York went up 119 percent.

Meanwhile, the number of homeless in the city rose to an all-time high last year, with 113,000 men, women and children retreating night after night to municipal shelters. The real hourly median wage in New York between 1990 and 2007 fell by almost 9 percent. Young men and women age 25 to 34 with a bachelor’s degree and a year-round job in New York saw their earnings drop 6 percent. Middle-income New Yorkers – defined broadly as those earning between $29,000 and $167,000 – saw a 19% decrease in earnings. Almost 11 percent of the population in New York, about 900,000 people, lives in what the federal government describes as “deep poverty,” which for a four-person family means an income of $10,500; the average 1 Percenter household in New York makes about that same amount every day.

(Read more: http://www.mcclatchydc.com/2011/10/07/126534/occupy-wall-street-the-new-populists.html#ixzz1aKQk8zI2)

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