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> The problem is a management pattern: removing people and organizational slack because they don’t generate immediate profit, and then expecting the knowledge to still be there when it’s needed.

I think that's still a symptom. The real problem is ideology: the monomaniacal focus on profit-making business, which infects our political leaders, down to capitalists and business leaders, down to the indoctrinated rank-and-file. Towards the end of the cold war, the last constraint on it were abolished, the the victory over the Soviet Union made it unquestioned.

The Chinese don't have that ideological problem. Their government appears to not give a shit about how much profit individual business make, they care about building out supply chains and a capabilities. They will bury the West, so long as the West remains in the thrall of libertarian business ideology.



The US is stuck in this weird irony where they recognize that Soviet-style central planning is a disaster but can't recognize that it's what megacorps do when they're insulated from competition. Internal politics, perverse incentives and a system that can sustain massive inefficiencies right up until the point that it doesn't.

In general productive economic activity generates a surplus and that surplus allows for slack. Human beings intuitively understand this. Hobbies are frequently de facto training for things that aren't currently happening but might later. Family-owned and operated businesses are much less likely to try to outsource their core competency for the sake of quarterly profits.

But regulatory capture and market consolidation causes the surplus to go to the corporate bureaucracies capturing the regulators instead of human beings with self-determination and goals other than number go up, and then the system optimizes for capturing the government rather than satisfying the people. "When you legislate buying and selling the first things to be bought and sold are the legislators." You throw away the competitive market and subject yourselves to the unaccountable bureaucracy, and then try to pretend it's not the same thing because this time the central planners are wearing business suits.


I wonder if it would work if top US companies implemented a system like the NFL draft, where companies competing for top engineers out of college get to pick from the best engineers inversely proportionally based on how they did before financially.

While it sounds counter intuitive, it maintains a good distribution of talent across the industry.

But that system would only work if healthy competition was the goal, not moneymaking.


The thing that sustains these companies isn't having the best engineers.

Suppose someone new made a better mobile OS than Android. What would happen?

Google has convinced a lot of third party apps to use their anti-competitive attestation system that has no real security value but makes it so those apps won't run on a competing operating system even if it implements all of the same APIs, so it immediately has a major barrier to gaining traction. That should be an antitrust violation.

Then the incumbents would copy any innovative features the new OS has so it no longer has an advantage. On paper this is what the patent system is supposed to prevent, but in practice is does the opposite. If you as a practicing entity tried to sue a major incumbent for patent infringement, they would counter-sue and have an arsenal of thousands of patents that could keep you bogged down in litigation for years. Just the cost of litigation could bankrupt a smaller company even if they won, and there is enough ambiguity in the system that they're pretty likely to lose when the incumbent only has to find one patent out of thousands they were unintentionally infringing, or a court is willing to enforce one that ought not to have been granted. So then everyone has to file a bunch of patents for the purposes of mutually-assured destruction and can't really enforce them, which favors larger companies that can afford the overhead. It certainly doesn't protect the little guy and we would be better off without them.

Your suggestion is also essentially unworkable. NFL teams all have the same number of players and play the same game. Amazon and TSMC each have a very different business and largely aren't competing for the same people. Does Garmin get the same number of picks as Foxconn even though they don't employ nearly as many people? How many picks does a startup get? Do we count Apple as doing poorly because the gross margins on hardware are lower than they are on pure licensing, or Nvidia as doing poorly because they have higher margins but lower revenue? How are we accounting for engineers in other countries? What about engineers in China who work for companies in China who are contractors for international companies? What if a corporate contractor has more than one corporate customer? How do we account for open source? How do we distinguish engineers from IT staff or research mathematicians or prevent companies from giving willing workers a job description that doesn't match the work they're doing?

It's also probably worth pointing out that systems like that are essentially price fixing schemes by the industry to pay workers less than they would otherwise be able to get if other companies weren't prohibited from outbidding them for talent.


Yes - ultimately it's the same system. Far from being daring and innovatory, it's backward-looking, unimaginative, and bureaucratic.

Vision for the future is limited to grandiose fantasies straight out of 1950s pulps and the "heroic" creation of narcissistic corporations that are cynically extractive and treat employees and customers with equal contempt.

The differences which used to provide a convincing cover story - no single Great Leader, a functional consumer economy, votes that appear to make a difference - are being dismantled now.

What's left are the same mechanisms of total monitoring (updated with modern tech) and reality-denying totalitarian oppression, run for the exclusive benefit of a tiny oligarchy which self-selects the very worst people in the system.


> megacorps do when they're insulated from competition. Internal politics, perverse incentives and a system that can sustain massive inefficiencies right up until the point that it doesn't.

You just described Lucent.


That's the end stage. The bigger problem is the companies rotting from the inside even though they're still alive, because they use their resources to suppress your alternatives to them while they're slowly dying on top of you.


Yes, many Americans and other Westerners believe that the so-called "socialist" economies, like those of the Soviet Union and of Eastern Europe were non-capitalist.

This is only an illusion created by the fact that the communists were careful to rename all important things, to fool the weaker minds that the renamed things are something else than what they really are.

In reality, the "socialist" economies were more capitalist than the capitalist economies of USA and Western Europe. They behaved exactly like the final stage of capitalism, where monopolies control every market and there is no longer any competition.

Unfortunately, after a huge sequence of mergers and acquisitions started in the late nineties of the last century, the economies of USA and of the EU states resemble more and more every year the former socialist economies, instead of resembling the US and W. European economies of a few decades ago.


Everyone wants to tag the evil with their opposition's name. The evil is concentration of power. But no one wants to call it that because then they can't pretend that it's something different when they're doing it themselves.

Witness the people who keep proposing to solve market consolidation with higher taxes. Higher taxes go to the government, and therefore the interests that have captured the government. Are we going to solve it by taking money from Warren Buffet and giving it to Larry Ellison? Do we benefit from increased funding for Palantir? No, you have to break up the consolidated markets through some combination of antitrust enforcement and peeling back the regulatory capture that prevents new competitors from entering the market.


> Higher taxes go to the government, and therefore the interests that have captured the government.

There is at least a chance for it to be redistributed, unlike private wealth.


Let's have a quick look at the federal budget. The big ticket items are social security, medicare, net interest and military/VA. Together those are more than half the budget.

Social security is the biggest of them. Older people have more wealth than younger people on net and social security is structured to make higher payments to people who made more money when they were younger, which is significantly correlated with having more wealth right now. So it's a massive transfer payment system that transfers money from the poor to the rich. Meanwhile it uses its own special tax which is significantly more regressive than the ordinary income tax and doesn't tax corporate income at all. Notice in particular that we could instead be solving "grandma doesn't starve" with a UBI that makes uniform payments to everyone and not disproportionate payments to the rich, and comes from a tax which is also paid by corporations.

Net interest is a naked transfer to people with enough capital to invest in government bonds.

Most of the military and VA budgets go to government contractors who work hard to sustain an uncompetitive bidding process with thick margins.

Medicare uses the same bad tax as social security and those dollars go to the healthcare industry which has thoroughly captured the government. The AMA lobbies to limit the number of medical residency slots and sustain a doctor shortage and healthcare corporations have established a thicket of laws to limit competition, impair price transparency and promote over-consumption.

That's where the majority of the government budget goes, and the remaining minority of the money is also going in significant part to government contractors and regulatory capture industries. The government takes tax money from the middle class and gives it to the rich and huge corporations.

We don't need any more "redistribution" like that. If you think you can get the government to stop doing that and instead give the money the poor and middle class then first prove you can do it with the existing money before even thinking about collecting more. You have a nutrient deficiency because you're infested with tapeworms, not because you don't have enough food.


I'd argue we need both massive antitrust, and higher taxes on the wealthy to prevent them from amassing the power to prevent the antitrust.


And change in laws regarding the legalized corruption (Citizens United, ...). And fight for real freedom of speech.

This is very complex problem that needs to be tackled from all sides simultaneously, the entrenched interests are already well setup to defend themselves.


Citizens United was a pretty pro-speech decision and is unfairly maligned, and "money is speech" predates it by quite a few years. The real problem is when huge corporations control the flow of information.

Which is a bigger problem, that corporations can pay for political ads, or that one corporation has 90% search market share? That there are political ads on Facebook or Twitter, or that those corporations control what's in the feed of hundreds of millions of people because use of their algorithm is tied to the network effect instead of having a federated system like RSS or email?


Sorry, no. Both are problem. And it is not pro-speech at all, it is pro-$$$. It is a standard practice to drown the unwanted speech in the noise of the paid-for 'speech'. Nothing about pro-speech for ordinary people there.

Furthermore, Citizen's United makes it harder to make any necessary legislative changes. Including the anti-trust. Focusing only on one issue while leaving the other heads of the hydra intact just plays into its strengths.


> And it is not pro-speech at all, it is pro-$$$.

Suppose you don't own a major media outlet or social media company and you have something to say that the major media outlets and social media companies don't like. What are your options for getting more than six people to hear what you have to say if you're not allowed to spend money?

> It is a standard practice to drown the unwanted speech in the noise of the paid-for 'speech'.

This is literally the opposite of what happens. The companies that own distribution channels can make speech they don't like disappear, or even just speech that doesn't drive sufficient "engagement", by putting it at the end of the feed behind six trillion lolcats and enough rage bait to keep everyone glued to the screen. Then the only way to be seen when your message isn't a dopamine hit is to pay money.

> Furthermore, Citizen's United makes it harder to make any necessary legislative changes. Including the anti-trust.

Citizens United has very little to say about anti-trust. What argument are you making that it would prevent e.g. laws requiring adversarial interoperability or break ups of large companies? For that matter, much of the interoperability problem comes from companies using laws like the CFAA and DMCA 1201, and then you don't even need laws to be passed, you need them to be repealed.


Cirizens United has everything to say about anti-trust. Big companies that would be subject to anti-trust use their $$$ to buy politicians to squash any anti-trust legislation.

Isn't it absolutely obvious? Are you paid bot?


Plus a systematic way of keeping the Gini coefficient of wealth small in a sustainable way. I'm a fan of establishing sovereign wealth funds whose dividends are paid out equally per capita for this purpose.


A sovereign wealth fund has the government deciding what to invest in, which is both a magnet for corruption and a good way to get below-market returns through mismanagement. It also requires an extremely oppressive build-up period where the government is collecting money in taxes to seed the fund instead of providing services to the population, which is why the countries that have one are basically all countries that net export huge amounts of oil, and China which exports everything else.

Meanwhile you don't need the government to use tax dollars to buy stocks in specific companies. If you want a UBI then use VAT. Then it comes from every company instead of having government bureaucrats choose which ones, and gets paid out immediately instead of needing a generation of build-up.


The things amassing power to prevent antitrust are corporations, not individuals. It does nothing to make Bill Gates sell shares in Microsoft to pay taxes when the corporation stays the same size. If anything it makes it worse because then more corporations are controlled by Wall St rather than founders and they're significantly more inclined to turn the screws to juice short-term profits.


wow!! straight to the dome.

thought about this too - but not as expressively as you put it.

e.g in China - for early stage ventures - there's cut throat competition - then as Thiel would put it with heavy competition profits trend towards 0 - by then the tech is perfected or close to perfect - then the state uses its funds to back a monopoly. that's how you get a BYD.


And to complete the reversal what is now referred to as the "golden age of capitalism" i.e the post WW2 USA was actually very socialist. Strong social movement and unions and social spending that created a wealth working/middle class with a bunch of spending power.

Inequality society producea inequal economy (and vice versa) which is the economy of any developing country. Few rich,. miniscule middle class and lots of poor people in slums snd poverty.


West: We need profits and then we’ll try to build something useful.

China: We need to build this useful thing and then later let’s try to make profits, too.


What do you think the war in the gulf is about, the US cannot compete with China so they are destroying the global system that enabled them. There is no plan to have a peace with Iran, only perpetual war and the destruction of the middle east, starvation in East Asia and poverty and nationalist wars in Europe, potentially with Russia taking over vast swathes of Eastern Europe again. Suddenly Russia is the one in charge of the China-Russia relationship. It's such a stupid plan for the US that you might think it was designed by Putin himself.


You started well, but then the train got derailed...

Russia has no need for Eastern Europe (they have enough land and resources, why saddle yourself with hostile population?), as long as the said Easter Europe is not threatening them with NATO bases/missiles (US has repeatedly shown that they do not hesitate to use their muscle if they think they can get away with it, so Russia's paranoia is not entirely unfounded).

Even if Russia somehow took over Eastern Europe (most likely way: they learn from US how to do soft 'regime change'), they have no chance against China (China is just so much bigger and better organized; the population's mentality also matters a lot). China and Russia are rather complementary, there is not reason for confrontation between them.

But you are correct, what US is doing is really totally stupid ... although it seems designed by Netanyahu, not Putin.


> Russia has no need for Eastern Europe

They sure do like to sell to them.

> Easter Europe is not threatening them with NATO bases/missiles

This never made much sense. Attacking a NATO buffer pre-emptively, brining your forces out and closer to existing NATO weapons, is basically putting you in the same situation with less resources. The issue is not about weapons "threatening". ICBMs can reach anywhere and smaller munitions from local seaboards (subs). This idea that NATO is somehow threatening by proximity is not credible. The answer to it would not be to rush headlong into a conflict to bring those forces to bear and bring your border to theirs anyway.

It looks more like the Ukraine conflict has been about securing resources, testing capabilities, and demographics (tied to capabilities). Russia wanted more resources to sell to partners and wanted to test the (declining) capability of it's own forces.


You are applying western thinking (acquiring captive markets, NATO is a force of good, surely not threatening) to Russia. Big fail, they think differently.

It is obviously clear that Ukraine is not about securing resources: Given the costs of war (Russia knew the sanctions will be coming, just did not think their funds will be frozen), the cost-benefit is simply not there. Given the obvious economic drawbacks of attacking Ukraine, the only explanation that makes sense is the national security one. You go to war to 'test capabilities' only if it is a minor thing without serious consequences, which Ukraine war definitively does not fit.


If China cannot get oil from the middle east what happens to China and China-Russia relations? I didn't say there would be hostilities just Russia would become potentially the more dominant partner.

If NATO expansion is the reason for the war in Ukraine (not imperialism) then why has the war not stopped now we know Ukraine will never join NATO?


1) Russia will happily supply China with oil and other resources, and China will pay by industrial good and all other stuff they produce. China is working really hard on getting rid of dependence on foreign energy sources, any leverage Russia might get if it became the sole supplier of oil/gas to China is very temporary and Russia knows it. Furthermore, unlike USA, it has no delusion of ever dominating China - China already has them by the balls.

2) mostly face saving, but also: Ukraine will remain openly hostile, NATO or not, planning to have hostile (EU) forces on its territory as 'security guarantor'. Russians still believe Ukraine will collapse (those men will eventually run out/economy will collapse/EU will not send its children to die on the eastern front) and they will be able to have a friendly (or at least truly neutral) government there. Russia's paranoia about the west is really strong, well founded and well documented.


  > Russia's paranoia about the west is really strong, well founded and well documented.
It's an act, and everyone in Russia knows that it's an act. Acting this way gets the dumber kind of Western politicians to carefully tiptoe around Russia; that is the value this act provides.


There are many western authoritative sources documenting that.

Have a look at William Burn's 'Nyet means nyet' depeshe. Or Merkel's memoirs. Or George Kennan's statement's in the 90's on the wisdom of expanding NATO.

But, ultimately, one believes what he/she wants to believe....

Do you think it is better to not carefully tiptoe around Russia? Do you consider full-on sanctions, total refusal (except Trump) to diplomatically engage them, open intelligence, military and financial support of Ukraine 'carefully tiptoing'?What do you propose instead? Open WW3? I am really curious.


You listed joke sources. Merkel, in particular, has been utterly discredited for her naivety toward Russia. Her sucking on Russian gas left Germany lagging in the transition to renewables and EVs, and the German economy is now paying a double price by also having to bear a part of the economic burden of the war.

As to Russia, virtually no-one in Russian academic foreign policy circles, nor in the influential semi-formal circles of imperialists and neo-nazis, nor anywhere inbetween, is paranoid about the US, NATO and the West in general. What is there to be paranoid about? They see the West in general as utterly impotent, making big words, but not backing it up with a stick. This week one year ago, Trump wrote "Vladimir, STOP!" in response to a massive air attack on Kyiv. Putin didn't, and what followed? A bunch of nothing.

The answer to your question about tiptoeing is abundantly clear to anyone familiar enough with Russian culture to know what zek and kagebeshnik mean and how to deal with them. Politely asking them to stop has never worked. The idea that you have to talk with people in the language they understand is hardly a novel one.


Sigh, joke sources. Burns and Kennan also, right? Anybody who actually understood Russians is a joke. Study a bit, and not only neocon think tank sources, but from the people who actually understood Russians (there are practically none left in recent administrations).

Russians are paranoid, among other things, about nuclear decapitation strikes. For the same reasons, they have repeatedly explicitly strongly opposed missile sites in Poland and Romania.

I am really curious, what do you think the west should have done? Bomb Russians directly? I mean, what else is left?


I don't think what you have said represents William Burns at all: https://www.youtube.com/watch?v=iP8BfC1e0Ug


They don't "actually understand Russians" and I don't need to study them to see through it. I was born in the USSR. Lived experience makes most foreign "Russia experts" look like the nerds who are very into Japanese or Korean culture and have memorized a bit of superficial trivia, but don't actually know at all how the society functions and are completely helpless at navigating it.

For example, Kennan warned in 1997 that accepting Eastern European countries into NATO would trigger a pivot toward authoritarianism in Russia. The pivot was well underway by that time. The breaking point was the genocidal war against Chechens that Russia launched in late 1994. Internally, it eroded the positions of the reformists and liberals who were seen as weak, and contributed to the rise of the alliance between crony oligarchs and KGB old-timers to undermine democracy and market reforms and restore state-controlled monopolies as their personal piggy banks. Exernally, the Chechen war proved to Russia's neighbors that Russia was no different from the USSR and that transgressions into their countries were only a matter of time. This made them run toward NATO was fast as they could. And personally, Putin, who had started out as an enforcer to St Petersburg's major, was already on his meteoric rise and had broken through to Moscow and joined the presidential administration by 1996.

For reasons that still elude me, western "Russia experts" prefer to believe noble-savage type myths like "NATO paranoia" and not treat Russians as capable people who have their own agenda. It's almost comical how they refuse to listen to what Russians are discussing among themselves, and that applies especially to your question about what should've been done:

  > I am really curious, what do you think the west should have done? Bomb Russians directly? I mean, what else is left?
Yes. That's what Igor Girkin, the commander of the 2014 invasion force, has said. First, that he and his commandos who attacked the city of Slovyansk are directly responsible for igniting the war. Second, that if NATO had intervened in support of Ukraine and bombed them like the Serbian forces in Yugoslavia, they would have lost and that would have been the end of it.

The second opportunity was on the eve of the full-scale invasion in 2022. Had forces like the 82nd and 101st Airborne been deployed to likely attack paths such as Hostomel airport, the invasion would have been called off out of fear of direct confrontation with the US. Instead, Biden acted like a chicken and publicly promised "No boots on the ground," which Russians took as a green light to go ahead.

The third major opportunity was during the 2022 Kharkiv counteroffensive, when Ukraine made a major breakthrough and Russian forces became so disorganized that they collapsed without a combat in many sections of the frontline. Instead of supporting the counteroffensive with everything they've got, NATO members got spooked by Russian nuclear blackmail and tried to micromanage Ukraine's combat operations. The counteroffensive stalled and Russian forces dug in. The war is now going as most wars do once entrenched positions are established: heavy casualties and minimal territorial changes.

The policy of tiptoeing around Russia has not yielded results because of a fundamental misunderstanding of Russia among western "Russia experts." They interpret fake acts such as "NATO paranoia" as genuine fear, in which case it makes sense to issue reassuring statements (like Biden's). But the fear is not genuine; it is simply a way for Russians to probe how far they can go. Overstating fears to extort concessions is such a basic manipulation technique that I cannot understand how "Russia experts" fail to recognize it. It's a strange plague upon the field. Military experts, by comparison, have been much more reasonable in their assessments and recommendations. The current mainstream recommendation is to stop wasting expensive air defense missiles on shooting down each arrow that Russia fires into Ukraine, and blow up the launchers in Russia instead. The fear of striking Russian launchers that fire at major European cities every night is indefensibly absurd.


First, thank you for taking your time to write a proper response.

Second, I must respectfully disagree.

The reformist/liberals lost it by mismanaging the transition in the 90's. And the society at large was not ready anyway.

And it was not about the turn toward authoritarianism, but a turn towards anti-west as such; those are not the same.

I totally agree that Russians are capable and have their own agenda, no noble savages there. NATO paranoia is not noble-savages, it is, at its roots, historically well-founded self-preservation instinct.

Btw, your choices of wording in several places (Putin is 'enforcer', 'Girkin's invasion force (of, initially, maybe 60 men)', Chechen 'genocide', Russian's 'full scale invasion' (maybe 1/4 manpower of what USA used in Iraq) is rather strange and reeking of just a little bias (are you, perchance, from Ukraine?).

Regarding 'what the west should have done':

In 2014: a) do you sincerely believe that Russia would have let NATO bomb Donbas like Serbia? b) that would have been a very sharp escalation from what was, at that time, not yet as bloody conflict. Such an action would have required a long logistical and planning preparation and great political will for such an costly and risky action; there was simply nobody in the west politically ready for that. The consent was not manufactured yet. It was simply political impossibility, not a realistic course of action that could have been taken. c) what about Crimea? should had the west bombed the Russians there, going to direct war with them? d) 'they would have lost and would have been the end of it': full-on wishful thinking

Before the invasion of 2022: One of the reasons why Russia attacked in february 2022 (and not some other time) was the apparent preparation of a major Ukrainian offensive to retake Donbas. Believing that a show of force by NATO would have not elicited a response is supremely naive. It is on the same level as 'we will push NATO eastward, and Russia won't be able to do anything about that' (The Grand Chessboard by Zbigniew Brzezinski). Eventually, the real red line war crossed and the war ensued. Anyway, there was no political will to preemptively escalate; furthermore it would have broken the narrative of 'unprovoked aggression by Russia'.

Fall 2022 during Kharkiv offensive: That offensive achieved great results, mainly due to major local force superiority (the Russians refrained from conscription and major recruitment, and sent home plenty of soldiers whose half-year duty expired). Expecting the Russians to totally collapse everywhere was about as realistic, as expecting the Ukrainians to totally collapse in February/March. The west was applying the salami slice strategy, incrementally increasing the support of Ukraine (they basically scoured the whole Earth of USSR equipment and sent it to Urkaine). Maybe, they could have sent some western equipment (that was subsequently sent in 2023), but it is unclear how much difference that would have made. Or you mean actively employing NATO airforce/groundpower?

Military experts (Mike Milley) have said in the fall 2022 that this is a high water mark for Ukraine, and they should negotiate now. He was piled-upon; with a hindsight, he was right.

I do not understand: The fear of striking Russian launchers that fire at major European cities every night is indefensibly absurd.

You are advocating for NATO to strike at Russian launchers firing at Ukrainian cities? Because the Ukrainian are doing that, as much as they can.

You know, the main reason I believe the Russia's attack was due to national security reasons and not due to 'imperialistic expansion of territory/capturing natural resources' is simply that there is no economic payoff in the latter. The cost of the war and the inevitable economic sanctions is simply punishingly high. On the other hand, people/countries are willing to suffer greatly in order to ensure their (perceived) security.

To sum up: What you consider 'realistic options that west should have taken', I see as 'highly escalatory and very risky actions that were politically unfeasible'. From the point of view of Ukraine very desirable, from the west's point of view too risky. Simply because Ukraine does not matter to the West sufficiently for the West to be willing to risk their own citizens.


You seem to be extremely fond of Russian propaganda.


That's the easy way out, isn't it? Why argue on merit of anything you don't like, just name it Russian propaganda.

Or, perchance, you want to provide a concrete argument why are my statements incorrect? (No, 'it fits Russian narrative' is not argument about correctness, it is an argument about the narrative.)


I think this is the wrong place to debate politics tbh, better luck next time.




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