The Zero Room

This week, I have been mostly reading:

• New Low for a Bad Patent: Patent Troll Sues Ventilator Company — Joe Mullin at the Electronic Frontier Foundation: You might think that, during the Coronavirus outbreak and concurrent economic downturn, meritless patent threats might ease up a bit. After all, a lot of companies—particularly smaller ones—are having a hard time making ends meet. And about 32% of patent troll lawsuits do target small and medium-sized businesses. But that’s not what’s happening. In fact, lawsuits by patent trolls are up this year—20% higher than in last year, and 30% higher than 2018. By the count of one company that tracks them, patent trolls have filed 470 lawsuits in the first 4 months of 2020. […] Not only are we seeing a rise in overall litigation, but we can see specific cases that are likely to impact companies involved in direct medical response. Last month, we noted the case of Labrador Diagnostics LLC, a patent troll that sued a company that makes and distributes COVID-19 tests, using patents that it acquired from Theranos, the fraudulent blood-testing company. Now, a shell company called Swirlate IP has acquired a patent that describes generic data transmission, and has used it to sue five different companies—including ResMed [PDF], a company that makes ventilators.
• On the Spotify-Joe Rogan Deal and the Coming Death of Independent Podcasting — Matt Stoller: So what is Spotify trying to do? First, Spotify is gaining power over podcast distribution by forcing customers to use its app to listen to must-have content, by either buying production directly or striking exclusive deals, as it did with Rogan. This is a tying or bundling strategy. Once Spotify has a gatekeeping power over distribution, it can eliminate the open standard rival RSS, and control which podcasts get access to listeners. The final stage is monetization through data collection and ad targeting. Once Spotify has gatekeeping power over distribution and a large ad targeting business, it will also be able to control who can monetize podcasts, because advertisers will increasingly just want to hit specific audience members, as opposed to advertise on specific shows.
• Trump Hails “Good Bloodlines” of Henry Ford, Whose Anti-Semitism Inspired Hitler — Robert Mackey at the Intercept: “The company founded by a man named Henry Ford,” Trump’s prepared text appeared to say, “teamed up with the company founded by Thomas Edison — that’s General Electric.” But when Trump came to Ford’s name, he looked up from the text and observed: “good bloodlines, good bloodlines — if you believe in that stuff, you got good blood.” Trump has made no secret of his own belief that he inherited everything from intelligence to an ability to withstand pressure through the “great genes” passed on to him by his parents and grandparents. He has also frequently compared the importance of “good bloodlines” in humans to the breeding of champion racehorses, a view that overlaps in uncomfortable ways with those of eugenicists and racists like Ford.
• Enjoy your climate crisis — via Bruce Sterling:
  

This week, I have been mostly reading:

• Why Your Christian Friends and Family Members Are So Easily Fooled by Conspiracy Theories — Joe Forrest in Medium: No one is immune from conspiratorial thinking, but Christians have a bit more to lose from falling for conspiracy theories than the average person. And I think there a few additional reasons Christians may be susceptible to unhealthy paranoid skepticism. Maybe it’s because, from a young age, many of us were taught the “scientific establishment” was out to destroy our belief in the Bible. Or maybe so many of us were convinced by the Left Behind books that a satanic one-world government was on the horizon, it just makes sense we need to be as vigilant as possible right now. Or maybe because we’ve already been conditioned by our own belief system that there exists a hidden spiritual reality that making the leap to a hidden “shadow government” isn’t all that big of a deal. […] Conspiracy theories speak to our desire to be a part of a story bigger than ourselves. And what blows my mind is that Christians should already believe that to be true. Christians shouldn’t need to buy into conspiracy theories to feel special, or to make sense of the world, or to make their lives feel more exciting. But we’re so enraptured with conspiracy theories, I question if we believe serving the Creator God of the Universe is really enough.
• Modern monetary theory, the economy and the virus — Steven Hail in the Economic Reform Australia Blog: Recently the Treasurer of the Commonwealth of Australia claimed – apparently seriously – that the fact the Government had been on the brink of balancing its budget, and that Australia consequently has a relatively low government debt to GDP ratio, placed him in a better posit- ion to finance what most people are wrongly calling a stimulus package. He is wrong. Countries like Japan, the United Kingdom and the United States have levels of government debt far in excess of our own. This in no sense constrains their budgetary response to the crisis. In the United States, the constraint, as ever, is Congress. The United Kingdom, despite its high government debt and its trade deficit, has been able without any problem, to ‘pay for’ a support package much larger than our own. What should be clear to everyone now is that federal or central governments like those of Australia, New Zealand, the USA, the UK and Japan face no purely financial constraints at all. Never mind a ‘money tree’. They just have a money computer. They can create limitless amounts of their currencies when they need to do so. They are not dependent on the goodwill of the bond market, or of credit ratings agencies.
• The Moral and Strategic Calculus of Voting for Joe Biden to Defeat Trump — or Not — Jeremy Scahill at the Intercept: Among the wild cards of a Biden administration will be the issue of whether he has the actual mental stamina to govern, or if he is going to be frequently disoriented and infrequently seen or heard. Setting aside the protestations of people who pretend they don’t see exactly what everyone else does when Biden speaks in public, we are not actually being asked to vote for Biden as the candidate, because the Biden we see is a shell of his former self. We are being asked to vote for a spin-off of the Obama show, a cast of familiar characters and a few exciting new additions who would take charge of the executive branch, without the popular star of the original show among the visible cast. The fact that the Democrats have forced through a candidate that many people don’t believe is fully functional and will rely on the strength of “the team” assembled around him is a pretty grim statement about the state of democracy in the U.S. If Biden is the best the Democrats have to offer in the face of Trump, the system is rotten.
• The Myth of “Helicopter Money” — Yeva Nersisyan and L. Randall Wray in Project Sydndicate: What MMT actually prescribes has nothing to do with sending “cash” to people or banks. Nor is the Fed “doing MMT” when it engages in QE or lends hundreds of billions to financial institutions. MMT merely underscores the fact that the Fed faces no financial constraints on its ability to buy assets or lend; it does not prescribe any particular action in this direction – and indeed is skeptical of such policies. If there is any MMT feature to the US rescue package, it is the fact that it is not “paid for.” Proponents of MMT have always insisted that we must stop attaching such strings – increased taxes or spending cuts elsewhere (the “PAYGO offset”) – to spending bills. Abolishing such conditions may or may not increase the budget deficit. But, regardless of the budgetary outcome, the spending will always take the form of payments made by the Fed on behalf of the Treasury. No printing press or tax receipts are required.
• Bernie Sanders: The Foundations of American Society Are Failing Us — Bernie Sanders: Should we really continue along the path of greed and unfettered capitalism, in which three people own more wealth than the bottom half of the nation, and tens of millions live in economic desperation — struggling to put food on the table, pay for housing and education and put a few dollars aside for retirement? Or should we go forward in a very new direction? In the course of my presidential campaign, I sought to follow in the footsteps of President Franklin Delano Roosevelt, who, in the 1930s and 40s, understood that in a truly free society, economic rights must be considered human rights. That was true 80 years ago and it remains true today. […] Simply opposing Mr. Trump will not be enough — we will need to articulate a new direction for America. [Meanwhile, Joe Biden has come up with a nickname for Trump. Keep up the good work, Joe!]
• Matt Wuerker:
  
• Why the Neoliberals Won’t Let This Crisis Go to Waste — Alex Doherty interviews Phil Mirowsky in Jacobin: Over and above various national and cultural differences, I think there’s one shared point. Neoliberals really believe that people are inherently bad cognizers — they can’t work their way out of their problems just by thinking. Of course, that sounds like a very negative doctrine: i.e., telling us that people are incapable of understanding the nature of their problems and pursuing their own democratic ends. But for the neoliberals, there’s an upbeat answer: the market. And they have changed the meaning of what a market is from earlier economic thought which tended to treat it as an allocation of scarce resources. They tend to think of it more as an epistemic problem — that the market is the greatest information processor known to mankind. This starts with Hayek but then feeds through the other main thinkers. This is important, because it means that people have to be brought to understand politically that they have to, in a sense, concede that the market knows more than they do. So, they have to adjust their hopes, their fears, to what the market tells them is necessary.
• Coronavirus and the prospect of mass involuntary euthanasia — Hamid Dabashi in Al Jazeera: As journalist Chauncey DeVega explained in a blunt piece for Salon, "Donald Trump and the Republican Party are now openly willing to sacrifice those Americans they consider to be useless eaters" in an effort to "save capitalism". What was merely presumed or suspected before is now in full disclosure. In the now nearly half a century I have lived in the US I had never witnessed such a bold, vicious, cruel demonstration of the laws of the jungle ruling this country. Amid the coronavirus pandemic, one could now see in broad daylight the cruelty that was at work in the mass murder of Native Americans and the business of transatlantic slavery. In good old liberal fashion, the Washington Post and the New York Times opened forums to discuss "the morals" of the choice between sacrificing older people and getting "the economy" back on track, the "pros and cons" of the issue, as they say. Scarcely anyone in such mainstream outlets would question the very foundation of this economics of barbarism.
• Gaping at the Vapid — Wondermark by David Malki !:
  

This fortnight, I have been mostly working like a navvy, but also reading:

• Neither Elizabeth Warren Nor Other Congressmen Have a Plan for the COVID-19 Depression — Ted Rall: Kicking the can down the road with suspended debt collection and eviction moratoriums and putting off utilities shut-offs is a guaranteed ineffective, massively counterproductive wallop of magical thinking that pretends not only that everything is about to be fine, but that everyone is going to win the lottery and be able to use their newfound winnings to pay off their coronavirus debts. It’s ridiculous and stupid and unworthy of discussion by serious people.
• I Am Using My Free Time to Not Write a Novel — Scott Bolohan in McSweeney's Internet Tendency: They say the best way to not write a novel is to not write every day. When you first wake up is a particularly good time to not write. But as I join billions of others around the world in quarantine, I worry my newfound free time is going to get in the way of not writing a novel.
• The Financial Literacy Delusion — Agata Soroko in Public Seminar: An analysis I conducted of curriculum documents across the United States and Canada showed that financial literacy standards frame economic well-being primarily as a personal practice, overlooking the various mechanisms that generate inequalities. They ignore the role of Wall Street, the lack of government financial regulation, and a financial system in which crises are par for the course. Financial literacy standards extol the virtues of attaining personal wealth but in forty-one of the forty-three curriculum frameworks I examined, the word “capitalism” does not appear. Financial literacy is silent about the need for decent working conditions, unemployment insurance, paid leave, a living wage. It also leaves unmentioned the subject of rising economic inequality marked by income volatility and unaffordable housing. Mounting student loan bills are presented as a problem of financial smarts, not skyrocketing college tuition. Instead, a financial literacy narrative endures which maintains that people are in debt because they spend their money on luxuries like lattes and avocado toast.
• Scenes from a Multiverse — Jon Rosenberg:
  
• Why Are Farmers Destroying Food While Grocery Stores Are Empty? — Claire Kelloway in the Washington Monthly: Farmers increasingly raise foods on contract for one dominant buyer that can dictate what they grow and how (Heinz, for instance, has their tomato farmers use Heinz crafted seeds). Large swaths of foods may be raised for one specific plant that serves just one purpose, such as bottling milk for grocery stories or processing cheese for restaurants. While highly specialized products and plants create consistency, these rigid supply chains cannot easily redirect their products to different uses if things go awry. Take the case of eggs. Farmers such as Kerry Mergen in Minnesota raise laying hens on contract. Mergen’s 61,000-bird operation was specifically designed to supply eggs for pre-cracked fluid-egg mixes, used almost exclusively in food service. Most of what they produced went to one Cargill plant that temporarily shut down this week due to lost restaurant and food-service customers. Even though grocery stores report egg shortages, grading eggs for retail requires special equipment and likely new contracts with a different large buyer. Instead, the corporation that Mergen raised hens for, Daybreak Foods, decided to euthanize his flock and sell the birds to a rendering plant to become pet food.
• Did you ever wonder what you'd be doing during an apocalypse? — Frankie Boyle in the Overtake: 2020 began with Australia on fire and a billion animals dead. It’s sobering to think that will be the feel-good story of the year. Remember at the beginning of the year when Rod Stewart lamped a security guard and Justin Bieber announced that he had Lyme disease? Dizzying times: it genuinely felt like the world was a wonderful place to be. For many of you, it will have been surprising to learn what was expected of you during an apocalypse. You always wondered whether you would be fleeing; fortifying a bunker; or camping on a motorway roundabout. Turns out you’re working from home. Trying to get a spreadsheet about bodybags finished before the provisional deadline of your own death. Mistakes have been made in the handling of the crisis. Like flying the Buckingham Palace flag at half mast when the Queen’s not in, which is just an advert for burglars. In my local park, someone has tried to cheer people up by chalking “You Got This!” on the ground. Literally the last thing you want to hear in a pandemic.
• To our brothers and sisters of popular movements and organizations — Pope Francis: My hope is that governments understand that technocratic paradigms (whether state-centred or market-driven) are not enough to address this crisis or the other great problems affecting humankind. Now more than ever, persons, communities and peoples must be put at the centre, united to heal, to care and to share. […] Moreover, I urge you to reflect on “life after the pandemic,” for while this storm shall pass, its grave consequences are already being felt. You are not helpless. You have the culture, the method, and most of all, the wisdom that are kneaded with the leaven of feeling the suffering of others as your own. I want all of us to think about the project of integral human development that we long for and that is based on the central role and initiative of the people in all their diversity, as well as on universal access to those three Ts that you defend: Trabajo (work), Techo (housing), and Tierra (land and food) . I hope that this time of danger will free us from operating on automatic pilot, shake our sleepy consciences and allow a humanist and ecological conversion that puts an end to the idolatry of money and places human life and dignity at the centre.
• Tom Toles:
  
• Home Alone at the White House: A Sour President, With TV His Constant Companion — Katie Rogers and Annie Karni in the New York Times: Aides said the president’s low point was in mid-March, when Mr. Trump, who had dismissed the virus as “one person coming in from China” and no worse than the flu, saw deaths and infections from Covid-19 rising daily. Mike Lindell, a Trump donor campaign surrogate and the chief executive of MyPillow, visited the White House later that month and said the president seemed so glum that Mr. Lindell pulled out his phone to show him a text message from a Democratic-voting friend of his who thought Mr. Trump was doing a good job. Mr. Lindell said Mr. Trump perked up after hearing the praise. “I just wanted to give him a little confidence,” Mr. Lindell said.
• Bye, Amazon — Tim Bray: May 1st was my last day as a VP and Distinguished Engineer at Amazon Web Services, after five years and five months of rewarding fun. I quit in dismay at Amazon firing whistleblowers who were making noise about warehouse employees frightened of Covid-19.
• Why CO2 Isn’t Falling More during a Global Lockdown — Benjamin Storrow in E&E News, via SciAm: The numbers illustrate just how intertwined oil is with the global economy. Cars and planes can be parked en masse, and yet widespread oil consumption continues. “The crisis shows how challenging decarbonizing the economy purely through behavioral adjustment would be,” Houser said, noting that individual decisions about not driving or flying deliver only limited emissions reductions. “What we need are technological solutions that allow our economy to operate at 100% with 5%-8% annual reductions going forward,” he said.
• The “marshmallow test” said patience was a key to success. A new replication tells us s’more. — Brian Resnick in Vox: It was the follow-up work, in the late ’80s and early ’90s, that found a stunning correlation: The longer kids were able to hold off on eating a marshmallow, the more likely they were to have higher SAT scores and fewer behavioral problems, the researchers said. The results were taken to mean that if only we could teach kids to be more patient, to have greater self-control, perhaps they’d achieve these benefits as well. But the studies from the ’90s were small, and the subjects were the kids of educated, wealthy parents. In fairness to Mischel and his colleagues, their findings, as written in 1990, were not so sweeping. In the study linking delay of gratification to SAT scores, the researchers acknowledged the possibility that with a bigger sample size, the magnitude of their correlation could decrease. They also mentioned that the stability of the home environment may play a more important role than their test was designed to reveal. It also wasn’t an experiment. The results also didn’t necessarily mean that teaching kids to delay their gratification would cause these benefits later on. “The findings of that study were never intended to be prescriptions for an application,” Yuichi Shoda, a co-author on the 1990 paper linking delay of gratification to SAT scores, says in an email. “Our paper does not mention anything about interventions or policies.” […] Yet their findings have been interpreted to be a prescription by school districts and policy wonks. “If you’re a policy maker and you are not talking about core psychological traits like delayed gratification skills, then you’re just dancing around with proxy issues,” the New York Times’s David Brooks wrote in 2006. It’s not hard to find studies on interventions to increase delaying gratification in schools or examples of schools adopting these lessons into their curricula. Sesame Street’s Cookie Monster has even been used to teach the lesson.
• 30 million Americans are unemployed. Here’s how to employ them. — David Roberts interviews Pavlina Tcherneva in Vox: One big confusion is that people think the job guarantee is going to replace some must-do, ongoing, critical programs. But we are not replacing EPA inspectors or FDA inspectors, who have to be there at all times. If you have a care project — environmental care, community care — you could add a lot more hands, a lot more people to shadow teachers or nurses to do on-the-job training. These programs can be a buffer that absorbs unemployed people, and then, as they are ready to move on to better jobs, they leave. In recessions, social needs become more acute. We need extra helping hands for the food kitchens or the homeless shelters. It is the nature of the job guarantee that whenever there are more needs, there are more people to do them. Essentially it is a coordinating mechanism.

This week, I have been mostly reading:

• Michael de Adder (via Digby):
  
• The government is going to beat coronavirus using modern monetary theory — Richard Murphy: Last night Gary Gibbon of Channel 4 News reported that the Coronavirus Emergency Bill included an increase in the UK government contingency fund for unexpected expenditure from just over £10 billion a year to more than £260 billion in the coming year. This morning I admit that I can find no reference to this in the media, or in the draft Bill itself, but I have a very strong suspicion that the figure was reported with good reason. Whether precisely correct or not, what this additional provision demonstrates is three things. The first is that additional government expenditure happens because the government decrees that it should. Second, the government can decree this without first having raised tax revenue to ensure that the expenditure is funded. And, third, the government can also do this without the prior consent of bond markets: there was no guarantee or underwriting from them for this action.
• What Trump's coronavirus briefings are really about — Windsor Mann in the Week: He prefers to discuss things that have nothing to do with the pandemic, such as his "very popular" wife and "Sleepy Joe Biden." While he has not called for the coronavirus to be locked up, he said, "We're building a wall." His logorrhea occasionally takes him into the unchartered territories of pseudo-empathy and complete sentences, as when he said, "Life is fragile" and "The whole concept of death is terrible." Also terrible is the credit Trump isn't getting. More than anything, he wants to be commended. On Sunday, he complained that "nobody said thank you" after he donated part of his presidential salary to fighting the coronavirus. He donated $100,000, which is $30,000 less than what he spent on silencing a porn star.
• As Bad As the COVID-19 Crisis Is Now, Life Will Eventually Go Back to Being Normal-Bad Again — Matthew Brian Cohen at McSweeny's Internet Tendency: While we might make coronavirus testing, and possibly even treatment, free of charge, rest assured, once this blows over, you will continue to go into debt for any other health issue. Nothing can stop the American way of life, not even a pandemic. We will not let this virus prevent our insurance companies from gouging us for basic services the way our Founding Fathers intended. We will not let COVID-19 change who we are — cruel, capitalist, and dog eat dog. Look, Americans are some of the toughest people in the world. We’ve been through a hell of a lot as a country – slavery, civil and world wars, recession after recession after recession, and we courageously ignored the lessons of all of them. I’m confident we can get through this epidemic without losing sight of the systemic problems that got us into this mess in the first place.
• Matt Wuerker:
  
• Supply chains: a neoliberal crisis — Alistair Cartwright in Counterfire: The Atlantic magazine has highlighted how today’s ‘just-in-time’ distribution methods, which only keep 15-30 days worth of products in stock, have exacerbated the problem. The supplies manager at The Medical University of South Carolina put it like this: “I guess we’ve done a good enough job within the health-care supply chain of getting pricing down to the point that the vendors don’t have a lot of extra margin or slack to play with.” […] The more health is treated as a commodity, the more the production and distribution of essential medical equipment become keyed to the fluctuations of the market. One of neoliberalism’s favourite catchphrases even finds its way into an official NHS emergency response framework: ‘just in time’ contracts with suppliers will be activated in the event of a pandemic.
• Anti-Corbyn Labour officials worked to lose general election to oust leader, leaked dossier finds — Jon Stone at the Independent: Tactics by anti-Corbyn staff evidenced in the report include channelling resources to candidates associated with the right wing of the party, refusing to share information with the leader’s office, and “coming into the office and doing nothing for a few months” during the election campaign. The report says hostile staff created a chat so they could pretend to work while actually speaking to each other, with one participant stating that “tap tap tapping away will make us look v busy”. An election night chat log shows that 45 minutes after the exit poll revealed that Labour had overturned the Conservative majority, one senior official said the result was the “opposite to what I had been working towards for the last couple of years”, describing themselves and their allies as “silent and grey-faced” and in need of counselling.
• Timeline of the Coronavirus Pandemic and U.S. Response — Ryan Goodman and Danielle Schulkin at Just Security: In our view, the timeline is clear: Like previous administrations, the Trump administration knew for years that a pandemic of this gravity was possible and imminently plausible. Several Trump administration officials raised strong concerns prior to the emergence of COVID-19 and raised alarms once the virus appeared within the United States. While some measures were put in place to prepare the United States for pandemic readiness, many more were dismantled since 2017. In response to COVID-19, the United States was slow to act at a time when each day of inaction mattered most–in terms of both the eventual public health harms as well as the severe economic costs. The President and some of his closest senior officials also disseminated misinformation that left the public less safe and more vulnerable to discounting the severity of the pandemic.
• Joe Biden says he ‘doesn’t have enough information’ on Iran to have a view. How odd – he negotiated the nuclear deal — Robert Fisk in the Independent: A few days ago, Bernie Sanders announced that US sanctions should not be contributing to Iran’s “humanitarian disaster” and that its economic war against Tehran should, at least temporarily, during the coronavirus crisis, be lifted. So what did Joe think about that? Well, the wordsmith frontrunner responded with this imperishable statement: “I don’t have enough information about the situation in Iran right now.” Now this was very odd. Was not Biden the vice president under the Obama administration that actually negotiated the Iran nuclear accord – and which Donald Trump tore up in 2018? Even weirder was Biden’s continuing blather on the subject. “There’s a lot of speculation from my foreign policy team that they’re [sic] in real trouble and they’re [sic] lying. But I would need more information to make that judgement. I don’t have the national security [sic] information available.” Well, he could have fooled me. Clearly Biden isn’t planning to help the Iranians, although – like a lot of voters – I’m not quite clear whom he’s accusing of lying. Does he think the Iranians are telling fibs? Or the Trump administration? Since the Iranians initially kept quiet about shooting down a Ukrainian airliner and may well have dissembled about the start of the coronavirus – and then Trump originally denied that the coronavirus even existed – we can safely conclude that both Iran and Trump lie through their teeth. So I guess it doesn’t matter what Biden meant. Which is one of his problems.
• Provenance unknown, via Bruce Sterling:
  
• The coronavirus response calls into question the future of super — Warwick Smith in the Conversation: The trouble with money is most people are so busy looking at it they are blind to what’s going on in the real economy - by which I mean the production and distribution of goods and services. […] If Australia as a whole consumes fewer goods and services in one year, it is likely to reduce rather than increase its future wealth because it is fully utilised labour and capital that drives investment and productivity. That’s what lies at the core of misunderstandings about the superannuation system. Foreign investment aside, it can’t allow an entire society to save for the future to support itself in retirement.
• What Everyone’s Getting Wrong About the Toilet Paper Shortage — Will Oremus in Medium: In short, the toilet paper industry is split into two, largely separate markets: commercial and consumer. The pandemic has shifted the lion’s share of demand to the latter. People actually do need to buy significantly more toilet paper during the pandemic — not because they’re making more trips to the bathroom, but because they’re making more of them at home. With some 75% of the U.S. population under stay-at-home orders, Americans are no longer using the restrooms at their workplace, in schools, at restaurants, at hotels, or in airports. […] If you’re looking for where all the toilet paper went, forget about people’s attics or hall closets. Think instead of all the toilet paper that normally goes to the commercial market — those office buildings, college campuses, Starbucks, and airports that are now either mostly empty or closed. That’s the toilet paper that’s suddenly going unused. […] Because toilet paper is high volume but low value, the industry runs on extreme efficiency, with mills built to work at full capacity around the clock even in normal times. That works only because demand is typically so steady. If toilet paper manufacturers spend a bunch of money now to refocus on the retail channel, they’ll face the same problem in reverse once people head back to work again.