How the World Works

If you want to seriously level-up your thinking about how the world works, you might want to try reading 3 very ambitious books together: Francis Fukuyama’s The Origins of Political Order, Pankaj Ghemawat’s World 3.0 and David Graeber’s Debt: the first 5000 years. All three are from the reading list that I posted in August, so I am hoping at least some of you have been attacking them.

It’s worth reading them together because they attempt to tell the same story, towards the same purpose — explaining how the world works in some sense — drawing on roughly the same body of raw material. It is illuminating to see the surprising ways in which the stories agree and disagree. All three books are also particularly valuable for me personally, since I hope to take a stab at telling the same story some day.

My version will of course be the definitive one when I write it, but let’s take a look at the versions of the story on the market today.

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The Towers of Priority

First, let me get an announcement out of the way: Tempo is now out on the Kindle. Buy it, give it as a gift, tweet it etc. Whew! That’s a big, high-priority item checked off my to-do list.

Speaking of priorities. I had one of my weirder Aha! moments: you can use the well-known Towers of Hanoi game as a metaphor to understand the behavior of Maslow’s hierarchy of needs (or any similar hierarchy of priorities) under changing life circumstances, and the role of compartmentalization as a costly coping strategy. Here’s a picture:

If the details and implications of the metaphor aren’t immediately obvious, read on for the help-text.

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The Evolution of the American Dream

Remember the pigs in George Orwell’s Animal Farm and their sloganeering? In the beginning of the story, when they overthrow the humans, they lead with the chant, “four legs good, two legs bad!” By the end, they’ve  become human-corrupt, and lead the chant, “four legs good, two legs better!”

Just one word changed, and the new and old words both begin with b, bolstering the illusion of continuity and natural evolution.

Let’s call such a slowly shifting narrative, simple enough to be captured in a slogan, and designed to help a small predatory class dominate a larger prey class, a Pig Narrative.  The American Dream is a Pig Narrative. For the record, in case you are immediately curious about my politics, I think this Pigs-and-Prey structure of the world is the natural order of things. You can mitigate its effects, but not change it in any fundamental way. If I had to pick, I’d side with the pigs.  Moving on.

You can compare Pig Narratives on the basis of the degree of prey liberty (or conversely, predator control) they represent, allowing you to plot the evolution over time. If you plot the course of the American Dream through its many rewrites (9 so far by my count, each associated with a major coming-of-age event that defined a generation), you get something like the picture above.

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Technology and the Baroque Unconscious

This entry is part 5 of 15 in the series Psychohistory

Engineering romantics fall in love with the work of Jorge Luis Borges early in their careers.  Long after Douglas Hofstadter is forgotten for his own work in AI (which seems dated today), he will be remembered with gratitude for introducing Borges to generations of technologists.

Borges once wrote:

“I should define the baroque as that style which deliberately exhausts (or tries to exhaust) all its own  possibilities and which borders on its own parody…I would say that the final stage of all styles is baroque when that style only too obviously exhibits or overdoes its own tricks.”

The baroque in Borges’ sense is self-consciously humorous. Borges’ own work in this sense is a baroque exploration of the processes of  thought. As one critic (see the footnote on this page) noted, Borges writings “serve to dramatize the process of thought in the apprehension of truth.”

Unlike art, complex and mature technology (not all technology) is baroque without being self-conscious. At best there is a collective sensibility informing its design that can be called a baroque unconscious.

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The Gervais Principle V: Heads I Win, Tails You Lose

At the heart of all tragedy, the Greeks saw a phenomenon they called hamartia: a fatal error born of unavoidable ignorance. Combined with a fundamental moral flaw, hamartia inevitably led on to destruction. For the Greeks, humans were cursed not just with mortality of the flesh, but also hamartia-driven mortality of the spirit. Hamartia was the Gods being Divine Jerks, randomly toying with human lives for their own pleasure, through cat-and-mouse games the latter could not hope to win.

Series Home | Part I | Part II | Part III | Part IV | Part V | Part VI | ebook

 

For the Greeks, any divine purpose, even subtly malicious randomness, in the ordering of the universe, was preferable to purposelessness. At least the gods cared enough to be cruel.

Nietzsche saw tragedy differently. For Nietzsche, God was dead and only the flesh was real. There was only the indifferent Great Bureaucrat of  the material universe, Chancellor Entropy, apathetically offering humans a form to fill out, with just one simple check-box choice: “death or booga booga?”

The Clueless disdainfully ignore the reams of fine print, and proudly check: death.

After trying, and failing to understand the fine print, the Losers cautiously check: booga booga.

Finally, the Sociopath frowns doubtfully at the form, and asks: “Can I speak with your supervisor?”

“Certainly,” says the Great Bureaucrat. “There’s some additional paperwork for that I am afraid. Just fill these out, and take them over there. Godot will be right with you.”

Welcome to the penultimate episode of the Gervais Principle series. The saga of two-plus years and 20,000-plus words of booga-booga that you have already endured is now winding its way to a tortuous conclusion.

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Ubiquity Illusions and the Chicken-Egg Problem

I enjoy thinking about chicken-and-egg problems. They lead to a lot of perception-refactoring. Some common examples include:

  1. You need relevant experience to get a good job, you need a good job to get relevant experience.
  2. You need good credit to get a loan, you need to get loans to develop good credit.
  3. You need users to help you build a better product, you need a better product to get users.

This post is about one particular way to solve the problem, using what I call a ubiquity illusion. It is one version of what is colloquially known as the fake-it-till-you-make-it method.

Creating a ubiquity illusion is the most readily available method for solving a chicken-egg problem. It is, to be perfectly honest, not the best method. There are other methods that are superior, but they are generally not available to most people.

Ubiquity illusions are like the sculpture above (The Awakening, by J. Seward Johnson, photograph by Ryan Sandridge, Creative Commons 2.5 Attribution). It is actually five separate pieces strategically buried to give the impression of a much larger buried sculpture, of which three are visible above.

Let’s talk magic.

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The Milo Criterion

There is a saying that goes back to Milo of Croton: lift a calf everyday and when you grow up, you can lift a cow. The story goes that Milo, a famous wrestler in ancient Greece, gained his immense strength by lifting a newborn calf one day when he was a boy, and then lifting it every day as it grew. In a few years, he was able to lift the grown cow. The calf grew into a cow at about the rate that Milo grew  into a man. A rather freakish man apparently, since grown cows can weigh over  1000 lb.  The point is, the calf grew old along with the boy.

I have been pondering this story for a couple of years, and it has led me to a very fertile idea about product design and entrepreneurship.

I call it the Milo Criterion: products must mature no faster than the rate at which users can adapt. Call that ideal maximum rate the Milo rate.

It seems like a simple and almost tautological thought, but it leads to some subversive consequences, which is one reason I have been reluctant to talk about it. The most subversive effect is that it has led me to abandon lean startup theory, which is now orthodoxy in the startup world.

As a consequence, I have mostly abandoned notions like product-market-fit, minimum viable product, pivots and the core value of “lean.”  I only use the terms to communicate with people who think in those terms.  And I can’t communicate very much within that vocabulary.

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Fixing the Game by Roger L. Martin

Sometimes the difference between a good book and an Aaargh! book is a single unexamined value. Fixing the Game by Roger L. Martin is an Aargh! book. The phrase that kept running through my head as I read was so close… so close.

The book is two things: an exceptionally clear and original analysis of the question of what ails modern capitalism, and an exceptionally woolly headed prescription for how to fix it. Unlike many books that are strong on analysis, the prescription isn’t bad because it is an anemic afterthought shoved into a last chapter (here, the prescription runs through the entire book, with a goodly fraction of the word count devoted to it). It is weak because its foundational assumptions about the psychology of capitalism are hopelessly idealistic.

That’s what makes the book so frustrating. It could have been so much more. Still the book retains a lot of its value because it is relatively easy to tease apart the parts colored by idealism from the parts that are not.

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The August Reading List Freeze

August is always a bitch of a month for me, to the point that I agree with David Plotz of Slate that we should get rid of it entirely. It seems to be my de facto annual planning month, though I have no reason anymore to be on an annual planning cycle. In August, I always seem to have far too many things in early stages of development, and too few leaving at the other end. I am currently in the early stages of several rather ambitious blog posts, a couple of new consulting projects and a couple of new personal projects. This year, thanks to my summer travels (I am back in Las Vegas now), I also have piles of unprocessed raw material from stuff I researched on the road, to write about.

So that’s a long, whiny excuse for rather sparse output over the last several weeks. I think I’ve hit my August trough though, so I can only build up momentum from here. But in the meantime, I assume many of you are on vacation, or planning to go on vacation, so I thought I’d share my current reading list, if any of you want to read along. Some of this will show up on the blog, some will not. My reading list piles up so fast that I’ve decided to be brutal. This list is it for the rest of the year. I will not be adding more books to the queue until I am done with these.

  1. Titan by Ron Chernow: Multiple people have recommended this Rockefeller biography to me.
  2. Tycoons by Charles Morris: Seems like a good overview of the Robber Barons
  3. The First Tycoon by T. J. Stiles: A biography of Vanderbilt, probably the founding father of the Robber Baron era.
  4. The Origins of Political Order by Francis Fukuyama: Don’t let the vague neocon associations dissuade you. There’s a reason this guy is so famous. If he writes a history of political order, you need to read it.
  5. World 3.0 by Pankaj Ghemawat: As meaty as Friedman’s The World is Flat is not. I suspect it’s going to become the definitive textbook introduction to globalization for those who actually care about getting the details and numbers right. The title is unfortunately rather uninspired, but the contents are solid gold.
  6. Fixing the Game by Roger L. Martin: Haven’t yet started it, but seems like a really intriguing premise: applying the lessons of the NFL to figuring out how capitalism should be fixed to avoid the kinds of messes we seem to keep getting into.
  7. Quicksilver by Neal Stephenson: I rarely read fiction these days, but everybody keeps telling me to read Stephenson, so I finally caved, especially since it seemed to go well with the rest of this list.  This is the first volume of the Baroque Cycle. If I have time, I may attempt to finish all three volumes this year.
  8. Debt: the first 5000 Years by David Graeber: I like ambitious reframings of everything from a new perspective, and this certainly qualifies. An attempt to rethink all of civilization and society as a manifestation of debt. If you want to sample before you decide, Julio Rodriguez at Wild Intent has attempted a valiant assault on this Mt. Everest scale book (ambition, not raw size).

Yes. There’s a definite theme here. No, the theme won’t take over the blog. I may even decide not to pursue it at all.

Mostly I am trying to flesh out the thinking around this year’s summer blockbuster hit, A Brief History of the Corporation to figure out just how deep the rabbit-hole goes. Though I hate to admit it, that piece did share some rather unpleasant characteristics with Michael Bay’s movies, so I am trying to think through some Oscar-season type follow ups.

Here’s to all of us seeing this beast of a month through. I’ll be in Hawaii over Labor Day weekend, so there is that to look forward to.

The Four Kinds of Economies

I don’t normally do straight-up reblogs here, but the new post, Unifying the Value Universe from Greg Rader at onthespiral.com is very relevant to some themes we are starting to attack here. It divides up value exchange into four types of economics: gift, transactional, relationship and attention that can be neatly arranged in a 2×2. As with any 2×2, the identification of the axis variables to use is key, and I think the ones Greg has picked really might be the right ones: relatedness of the parties and refinement of the value-add being exchanged (in the sense of rough vs. polished). Click on and read.  He has a more detailed analysis of how this diagram works and in particular, of transactions that cross quadrant boundaries.