I’d say that Jaron Lanier’s worldview is profoundly at odds with my own, yet he is an interesting and provocative thinker who merits our attention. The following is drawn from a conversation posted at Edge:
When you start to use an information network to concentrate information and therefore power, you benefit from a first arrival effect, and from some other common network effects that make it very hard for other people to come and grab your position. And this gets a little detailed, but it was very hard for somebody else to copy Wal-Mart once Wal-Mart had gathered all the information, because once they have the whole world aligned by the information in their server, they created essentially an expense or a risk for anybody to jump out of that system. That was very hard. … In a similar way, once you are a customer of Google’s ad network, the moment that you stop bidding for your keyword, you’re guaranteeing that your closest competitor will get it. It’s no longer just, “Well, I don’t know if I want this slot in the abstract, and who knows if a competitor or some entirely unrelated party will get it.” Instead, you have to hold on to your ground because suddenly every decision becomes strategic for you, and immediately. It creates a new kind of glue, or a new kind of stickiness.
… It can become such a bizarre system. What you have now is a system in which the Internet user becomes the product that is being sold to others, and what the product is, is the ability to be manipulated. It’s an anti-liberty system, and I know that the rhetoric around it is very contrary to that.
… Essentially what happened with finance is a larger scale, albeit more abstract version of what happened with Wal-Mart, where a global system was optimized by being able to build data that could be concentrated locally using a computer network. It tremendously enriched the people who ran the network. It seemed to create savings for people initially who were the end users, the leafs of the network, very much as Google, or Groupon, seem to save them money initially. But then in the long-term it took away more from the income prospects of people than it could offer them in savings, very much as Wal-Mart did. … This is the pattern that we’ll see repeated again and again as new applications of computer networks come up, unless we decide to monetize what people do with their hearts and brains. What we have to do to create liberty in the future is to monetize more and more instead of monetize less and less, and in particular we have to monetize more and more of what ordinary people do, unless we want to make them into wards of the state. That’s the stark choice we have in the long-term. [Emphasis added]
I Lanier’s perspective excessively bleak, and I also place heavier emphasis on the marked improvement in the quality of the goods we consume. But I imagine many readers will recognize many aspects of modern economic life in Lanier’s imaginative reconstruction.






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