Category Archives: Political economy and visibility

Bessemer blues

The recent, decisive defeat of the unionization drive in Amazon’s fulfillment facility of Bessemer, Alabama can be understood to teach many lessons, not necessarily mutually complementary. First of all, specifically local conditions were in play, which can call into question the overall strategy of attempting to start the U.S. unionization of Amazon from the Deep South. The outcome, however, can equally be read as a sign that, in the current crisis economy, workers are prepared to put up with more or less any employer practices and work conditions whatsoever in order not to jeopardize their employment status, especially for jobs with efficiency wages. It can, alternatively, be seen as confirmation that giant tech companies, for all their claims to discontinuity and disruption, have mastered the traditional playbook of pugilistic industrial relations developed by old-economy businesses in the past fifty years. It can be interpreted as a statement that the progressive electoral coalition that swept the Democratic Party back into power at the federal level between November and January has not effected a sea-change in public opinion with regard to labor rights and representation. It can further be considered, in conjunction with the easy passage of Prop. 22 in California last Fall, as evidence that there is scant public belief that the ills of the soft underbelly of the tech economy can be righted by means of twentieth-century policy solutions.

Whatever the lessons learned, the unavoidable conclusion is that, in the United States at least, the power of Big Tech will not be reined in by organized labor alone (despite the fact that industrial militancy in the Amazon workforce continues, in less conventional and institutionalized ways). Nonetheless, recent media attention focused on Amazon workplace practices has created a series of PR embarrassments for the company: it remains to be seen whether they will ultimately cement a certain organizational reputation, and if such a reputation in turn can have regulatory or, especially, financial implications down the line (as has recently been the case in other jurisdictions).

Routinization of influence, exacerbation of outrageousness

How is the influencer ecosystem evolving? Opposing forces are in play.

On the one hand, a NYT story describes symptoms of consolidation in the large-organic-online-following-to-brand-ambassadorship pathway. As influencing becomes a day job that is inserted in a stable fashion in the consumer-brand/advertising nexus, the type of informal, supposedly unmediated communication over social media becomes quickly unwieldy for business negotiations: at scale, professional intermediaries are necessary to manage transactions between the holders of social media capital/cred and the business interests wishing to leverage it. A rather more disenchanted and normalized workaday image of influencer life thereby emerges.

On the other hand, a Vulture profile of an influencer whose personal magnetism is matched only by her ability to offend (warning: NSFW) signals that normalization may ultimately be self-defeating. The intense and disturbing personal trajectory of Trisha Paytas suggests that the taming of internet celebrity for commercial purposes is by definition a neverending Sisyphean endeavor, for the currency involved is authenticity, whose seal of approval lies outside market transactions. The biggest crowds on the internet are still drawn by titillation of outrage, although their enactors may not thereby be suited to sell much of anything, except themselves.

Behavioral redefinition

Vice reports on a Tokyo-based company, DeepScore, pitching software for the automatic recognition of ‘trustworthiness’, e.g. in loan applicants. Although their claimed false-negative rate of 30% may not sound particularly impressive, it must of course be compared to well-known human biases in lending decisions. Perhaps more interesting is the instrumentalization cycle, which is all but assured to take place if DeepScore’s algorithm gains wide acceptance. On the one hand, the algorithm’s goal is to create a precise definition for a broad and vague human characteristic like trustworthiness—that is to say, to operationalize it. Then, if the algorithm is successful on its training sample and becomes adopted by real-world decision-makers, the social power of the adopters reifies the research hypothesis: trustworthiness becomes what the algorithm says it is (because money talks). Thus, the behavioral redefinition of a folk psychology concept comes to fruition. On the other hand, however, instrumentalization immediately kicks in, as users attempt to game the operationalized definition, by managing to present the algorithmically-approved symptoms without the underlying condition (sincerity). Hence, the signal loses strength, and the cycle completes. The fact that DeepScore’s trustworthiness algorithm is intended for credit markets in South-East Asia, where there exist populations without access to traditional credit-scoring channels, merely clarifies the ‘predatory inclusion’ logic of such practices (v. supra).

Market concentration woes

Just followed the Medium book launch event for the print edition of Cory Doctorow’s latest, How to Destroy Surveillance Capitalism (free online version here). The pamphlet, from August 2020, was originally intended as a rebuttal of Shoshana Zuboff’s The Age of Surveillance Capitalism [v. supra]. The main claim is that the political consequences of surveillance capitalism were not, as Zuboff maintains, unintended, but rather are central and systemic to the functioning of the whole. Hence, proposed solutions cannot be limited to the technological or economic sphere, but must be political as well. Specifically, Doctorow identifies in trust-busting the main policy tool for reining in Big Tech.

With hindsight of the 2020 election cycle and its aftermath, two points Doctorow made in the presentation stand out most vividly. The first is the link between market power and the devaluing of expert opinion that is a necessary forerunner of disinformation. The argument is that “monopolies turn truth-seeking operations [such as parliamentary committee hearings, expert testimony in court, and so forth] into auctions” (where the deepest pockets buy the most favorable advice), thereby completely discrediting their information content for the general public. The second point is that most all of the grievances currently voiced about Section 230 (the liability shield for online publishers of third-party materials) are at some level grievances about monopoly power.

Reddit mobs rampaging on the stockmarket

I am following (just like everyone else) the developing GameStop story. Beyond the financial technicalities, what is interesting for present purposes is that the dynamics of internet virality seem to be finding a close parallel in stock valuation. The term “meme stock” is telling. In other words, at present the online coordination mechanisms, the capital, and the nihilistic boredom are all available to craft an alternative description of reality, which in turn is self-reinforcing (until it isn’t).