Power & Progress: Redirecting TechnologyThe goals and objectives outlined in this StratML rendition are taken from pages 383 - 420 of the book Power and Progress, co-authored by Daron Acemoglu and Simon Johnson.Public AffairsPA_428b502c-4945-11ee-950f-79af1083ea00Perseus Books, LLC, a subsidiary of Hachette Book Group, Inc.Daron AcemogluCo-Author ~ Daron Acemoglu is Institute Professor of Economics at MIT, the university’s highest faculty honor. For the last twenty-five years, he has been researching the historical origins of prosperity, poverty, and the effects of new technologies on economic growth, employment, and inequality. Acemoglu is the recipient of several awards and honors, including the John Bates Clark Medal, awarded to economists under forty judged to have made the most significant contribution to economic thought and knowledge (2005); the BBVA Frontiers of Knowledge Award in economics, finance, and management for his lifetime contributions (2016), and the Kiel Institute's Global Economy Prize in economics (2019). He is author (with James Robinson) of The Narrow Corridor and the New York Times bestseller Why Nations Fail.Simon JohnsonCo-Author ~ Simon Johnson is the Kurtz Professor of Entrepreneurship at MIT and a former chief economist to the IMF. His much-viewed opinion pieces have appeared in the New York Times, the Wall Street Journal, the Financial Times, the Atlantic, and elsewhere. With law professor James Kwak, Simon is the co-author of the bestsellers 13 Bankers and White House Burning and a founder of the widely-cited economics blog The Baseline Scenario.The welfare of all people is maximized_428b516c-4945-11ee-950f-79af1083ea00To redirect the development and usage of technology for the greater benefit of society at large_428b523e-4945-11ee-950f-79af1083ea00Utilitarianismmaximizing the combined welfare of all people in society (p. 2)ScienceScientific inquiry is cumulative, with inventors building on each other's work... Today, scientific discoveries travel at lightning speed, especially when there is a pressing need. (p. 23)VisionVision shapes our choices because it specifies what our aspirations are, what means we pursue to achieve them, what alternatives we will consider and which ones we ignore, and how we perceive the costs and benefits of our actions. (p. 24)InnovationA shared vision among innovators is critical for the accumulation of knowledge and is also central to how we use technology. (p. 24)Technology... everything we do to shape our surroundings and organize production. (p. 10) Techologies do not exist independent of an underlying vision. (p. 25)PowerEconomic and political institutions shape who has the best opportunities to persuade others... Persuasion power is more potent if you have a compelling idea ... But ... that ... depends partly on institutions... Social status is conferred by society's norms and institutions... Social status ... reinforces other power inequities. (p. 87)AgencyHistory is not destiny. People have "agency" -- they can make social, political, and economic choices ... we can ... refashion whose opinions are valued and listened to and who sets the agenda. (p. 88)Narrative & NormsAlter the narrative and change norms_428b52fc-4945-11ee-950f-79af1083ea001Digital TechnologiesMake digital technologies useful to humans and boost productivity _428b53c4-4945-11ee-950f-79af1083ea001.1CorporationsOur current problems are rooted in the enormous economic, political, and social power of corporations, especially in the tech industry.Tech IndustryInvestorsCompaniesLarge InvestorsLarge investors can demand transparency.The concentrated power of business undercuts shared prosperity because it limits the sharing of gains from technological change. But its most pernicious impact is via the direction of technology, which is moving excessively toward automation, surveillance, data collection, and advertising... Choices over the direction of technology should be part of the criteria that investors use for evaluating companies and their effects. (p. 393) ... digital technologies can complement humans by:ProductivityImprove the productivity of workers in their current jobs_e5492a54-4b85-11ee-a4d8-bf82f682ea001.1.1WorkersTasksCreate new tasks with the help of machine intelligence augmenting human capabilities_e5492dba-4b85-11ee-a4d8-bf82f682ea001.1.2InformationProvide better, more useful information for human decision making_e5492f2c-4b85-11ee-a4d8-bf82f682ea001.1.3PlatformsBuild new platforms that bring together people with different skills and needs_e54930a8-4b85-11ee-a4d8-bf82f682ea001.1.4TeachersFor example, digital and AI technologies can increase effectiveness of classroom instruction by providing new tools and better information to teachers. (p. 394)InnovationEncourage the development of technologies that compement and help human capabilities_e5493206-4b85-11ee-a4d8-bf82f682ea001.2SocietySociety and government must work together to achieve this objective.GovernmentHowever, govenment cannot be the nerve center of innovation, and bureaucrats are not going to design algorithms or come up with new products.Diverse innovation stragegies are also important because automation is not harmful in and of itself... The problem is an unbalanced portfolio of innovations that excesively prioritize automation and surveillance, failing to create new tasks and opportunities for workers. Redirecting technology ... can ... encourage the development of technologies that compement and help human capabilities. (p. 395)Framework & IncentivesInstitute a framework and incentives to induce the private sector to move away from excessive automation and surveillance and toward more worker-friendly technologies_e5493378-4b85-11ee-a4d8-bf82f682ea001.2.1GovernmentPrivate SectorChina... a serious redirection in the West can powerfully influence Chinese investment as well. (p. 396)What is needed is the right institutional framework and incentives shaped by government policies, bolstered by a constructive narrative, to induce the private sector to move away from excessive automation and surveillance, and toward more worker-friendly technologies. (p. 395)PowersCultivate countervailing powers_428b5482-4945-11ee-950f-79af1083ea002Worker OrganizationsLabor unions have been the mainstay of countervailing powers since the beginning of the industrial age... The provided camaraderie for people working together on similar tasks... Workplaces have become much less concentrated and more diverse, so camaraderie is harder to achieve. (p. 396)We cannot redirect technology without building new countervailing powers. And we cannot build countervailing powers without relying on civil society organizations that bring people together around shared issues and cultivate norms of self-governance and political action. (p. 396)Organizational FormsExperiment with new organizational forms_428b5658-4945-11ee-950f-79af1083ea002.1(p. 398)ActionCoordinate collective action_e54934ea-4b85-11ee-a4d8-bf82f682ea002.2ConsumersConsumer choice, the ultimate uncoordinated, individual action, suffers mightily from the collective action dilemma. (p. 398)Civil-Society OrganizationsAlthough other organizations, such as labor unions, can also play these roles, civil-society are important, especially when the main issues ... have effects on large numbers of people and cut across traditional groups.... collective action requires a large group of people acting together to achieve an objective ... Such action is costly for most people, who will have to spend time to become informed, to attend meetings, to change their consumption habits, and occasionally to go out and protest. Those costs multiply when there is a counterpush from companies and sometimes, even worse, from state security services... These dynamics produce the "free-rider" problem: people who share the same values may nevertheless be tempted not to take part in collective action in order to avoid paying the costs... without coordination, only a minority of people who desire social change take part in collective action. (p. 398)ForumProvide a forum for debate and trusted information dissemination_e5493670-4b85-11ee-a4d8-bf82f682ea002.2.1Civil-Society OrganizationsIncentivesCreate both negative and positive incentives to coordinate protests and public pressure on misbehaving companies_e54937ce-4b85-11ee-a4d8-bf82f682ea002.2.2Civil-Society OrganizationsIn addition to providing a forum for debate and trusted information dissemination, civil-society organizations can create both carrots and sticks to coordinate protests and public pressure on misbehaving companies. (p. 399)Ethos & ConnectionsCultivate an ethos for taking part in activities that are good for the public interest and develop links among participants_e5493990-4b85-11ee-a4d8-bf82f682ea002.2.2.1Civil-Society OrganizationsOn the carrot side, they cultivate an ethos for taking part in activities that are good for the public interest and additionally develop links between different people, who then encourage one another to participate. (p. 399)Peer PressureApply peer pressure to induce participation_e5493aee-4b85-11ee-a4d8-bf82f682ea002.2.2.2Civil-Society OrganizationsFor sticks, they can sometimes shame individuals for free riding on the efforts of others. (p. 399)Online CommunitiesBuild new and better online communities_e5493c60-4b85-11ee-a4d8-bf82f682ea002.2.3Online CommunitiesAlthough the optimism of the early 2000s about social media and the internet providing a forum for a digital "public sphere" has been dashed, new and better online communities can be built. (p. 399)Democratic InstitutionsPathways for democratic institutions to cultivate new and better online communities are critical. (p. 399)Periodic elections to select representatives are not the only aspect of democratic politics. Self-governance, both at workplaces and more broadly, may be as important as elections. (p. 399) There are some digital technologies that can play a helpful role rather than a harmful one, and finding ways to encourage their development is crucial. (p. 400)ForumsCreate new forums in which debate and exchange of opinions can be carried out_e5493de6-4b85-11ee-a4d8-bf82f682ea002.2.3.1For example, digital tools are well suited for creating new forums in which debate and exchange of opinions can be carried out in real time and within a prespecified set of rules. (p. 400)MeetingsEnable larger-scale cross-cutting associations_e5493f62-4b85-11ee-a4d8-bf82f682ea002.2.3.2Online meetings and communication can reduce participation costs, enabling larger-scale cross-cutting associations. Digital tools can also ensure that even in large meetings, individuals can participate in debate by making comments or recording their approval or disapproval. If these tools are well designed, they can help empower and amplify diverse voices ... (p. 400)Online ToolsContinuously update pro-democratic online tools as new challenges develop_e54940de-4b85-11ee-a4d8-bf82f682ea002.2.3.3as a complemen, rather than as a full substitute, to traditional, in-person civic engagement. (p. 401)PoliciesArticulate policy solutions based upon the new narrative, research, and expertise_428b573e-4945-11ee-950f-79af1083ea003The existence of countervailing powers and even new institutions by themselves will not redirect technology. Specific policies that change incentives and encourage socially beneficial innovations are necessary. (p. 402)IncentivesInstitute government subsidies for developing more socially beneficial technologies_428b5810-4945-11ee-950f-79af1083ea003.1Market Incentives for Redirection ~ Government subsidies for developing more socially beneficial technologies are one of the most powerful means of redirecting technology ... (p. 4.2)MetricsMeasure the impact of digital technology_58bf89a2-4a0e-11ee-9800-1fb6f282ea003.2Determining how different digital technologies are used and their impact on wages, inequality, and surveillance [is hard] ... Nevertheless, there are a number of principles useful for creating a framework for measuring the impact of digital technology. (p. 403)SurveillancePrevent the most intrusive forms of surveillance and data collection on employees_58bf8d76-4a0e-11ee-9800-1fb6f282ea003.2.1OSHAA government agency such as OSHA could develop clear guidelines that prevent the most intrusive forms of surveillance and data collection on employees ... (p. 403)EmployeesData CollectionRegulate data collection on consumers and citizens_58bf8e70-4a0e-11ee-9800-1fb6f282ea003.2.2... other agencies could similarly regulate data collection on consumers and citizens. (p. 403)PatentsCease enforcing patents on technologies that are aimed at worker or citizen surveillance_58bf8f56-4a0e-11ee-9800-1fb6f282ea003.2.3Federal Government... the federal government could also decide not to enforce patents on technologies that are aimed at worker or citizen surveillance. (p. 403)PrivacyIdentify and subsidize technologies that provide tools for worker and user privacy_58bf9032-4a0e-11ee-9800-1fb6f282ea003.2.4WorkersTechnology UsersConversely, technologies that provide tools for worker and user privacy can also be identified and subsidized. (p. 403)LaborSubsidize technologies that raise the labor share_c19d219a-4ad7-11ee-801e-69ca1583ea003.2.5... introduction of robots and other automation technologies almost always leads to significantly lower labor share. Likewise, technologies that create new tasks for workers tend to raise the labor share. On this basis, technologies that raise the labor share can be encouraged via subsidies. (p. 404)FocusEncourage greater focus on human-complementary and human-empowering technologies_c19d237a-4ad7-11ee-801e-69ca1583ea003.2.6... subsidies for research that are human complementary can be provided on the basis of more detailed data about whether new methods are complementing humans or automating work when used in practice... new digital technologies can complement humans by creating new tasks... What policy makers should strive for is cultivating a plurality of approaches to encourage a greater focus on human-complementary and human-empowering technologies. (p. 404)Big TechBreak up big tech_c19d249c-4ad7-11ee-801e-69ca1583ea003.3Breaking up big tech... High levels of market concentration and gargantuan monopolies can choke off innovation and distort its direction... a handful of companies are dominating the direction of digital technologies and especially AI... breaking up the largest tech giants to reduce their dominance and create room for greater diversity of innovations is an important part of redirecting technology... breakup and more broadly antitrust shojuld be considered as a complementary tool to the more fundamental aim of redirecting technology away from automation, surveillance, data collection, and digital advertising. (p. 405)TaxesReform taxation_c19d2636-4ad7-11ee-801e-69ca1583ea003.4Tax Reform... the US has taxed labor at an average rate of about 25 percent over the last four decades because of payroll and federal income taxes, while imposing a much lower taxes on equipment and software capital... A company investing in automation equipment or software today pays a tax of less than 5 percent -- fully 20 percentage points lower than the taxes it faces when it hires workers to perform the same tasks. (p. 406) PayrollsSignificantly reduce or eliminate payroll taxes_c19d276c-4ad7-11ee-801e-69ca1583ea003.4.1(p. 407)Capital GainsModestly increase taxes on capital gains_c19d2898-4ad7-11ee-801e-69ca1583ea003.4.2(p. 407)LoopholesClose tax loopholes_c19d2aaa-4ad7-11ee-801e-69ca1583ea003.4.3Multinational Corporations... simultaneously close tax loopholes, including schemes that minimize tax liabilities of multinational corporations. (p. 407)WorkersInvest in workers._c19d2bfe-4ad7-11ee-801e-69ca1583ea003.5WorkersCompaniesInvesting in Workers. The tax incentives for investment in equipment and software are not available to companies when it comes to investments in workers. (p. 407)Capital & LaborEqualize the rates at which capital and labor are taxed_c19d2d20-4ad7-11ee-801e-69ca1583ea003.5.1Equalizing the rates at which capital and labor are taxed is an important step in removing the bias in favor of automation ahead of hiring and investing in workers. (p. 407)TrainingPovide training for low-skilled workers_c19d2e56-4ad7-11ee-801e-69ca1583ea003.5.2Low-Education Workers... training of low-education workers was an important pillar of shared prosperity before the 1980s.Worker marginal productivity can be raised by post-schooling training. (p. 407) Institutional solutions and government subsidies to training could rectify the ... underinvestment problem. (p. 408)LeadershipLead the redirection of technology_c19d2f8c-4ad7-11ee-801e-69ca1583ea003.6GovernmentThe government is not the engine of innovation, yet it can play a central role in redirecting technological change through taxes, subsidies, regulations, and agenda setting. (p. 408)Government Leadership to Redirect Technological Change. Research TeamsConvene and fund research teams to develop digital technologies that complement human skills_c19d30ea-4ad7-11ee-801e-69ca1583ea003.6.1US Government... the US government could convene and fund research teams to develop digital technologies that complement human skills to be used in education and health care, and commit to deloying them in US schools and Veterans Administration hospitals, providing they meet the requisite technical standards.Education SectorHealth Care SectorUS SchoolsVeterans AdministrationThis is not, we hasten to point out, traditional "industrial policy," which involves bureaucrats attempting to pick winners, either in terms of companies or specific technologies. (p. 409) Technologies & BenefitsIdentify classes of technologies that have more socially beneficial consequences_c19d3248-4ad7-11ee-801e-69ca1583ea003.6.2Instead of picking winners, redirecting technology is much more about identifying classes of technologies that have more socially beneficial consequences. (p. 410)EmpowermentEncourage the development of technologies that are more complementary to workers and citizen empowerment_c19d3374-4ad7-11ee-801e-69ca1583ea003.6.3WorkersCitizens(p. 410)Privacy & Data OwnershipStrengthen the protection of user privacy._c19d34c8-4ad7-11ee-801e-69ca1583ea003.7Privacy Protection and Data Ownership. (p. 410)ApprovalRequire platforms to get explicit approval from users on what data they will collect and how they will use it._c19d3644-4ad7-11ee-801e-69ca1583ea003.7.1(p. 410)OwnershipProvide ownership rights to users for their data_c19d3770-4ad7-11ee-801e-69ca1583ea003.7.2... providing ownership rights to users for their data ... may be more effective than privacy regulation. (p. 411)IncomeEnsure that users receive income from their data_c19d38b0-4ad7-11ee-801e-69ca1583ea003.7.2.1Data Unionscan negotiate prices and terms for all users or subgroups, thus circumventing "divide-and-conquer" strategies by platforms (p. 411)ModelsProvide models for other types of workplace organizations_c19d3a22-4ad7-11ee-801e-69ca1583ea003.7.3Data Unionscould additionally provide models for other types of workplace organizations.Workplace OrganizationsSection 230Repeal Section 230 of the Communications Decency Act._c19d3b76-4ad7-11ee-801e-69ca1583ea003.8Internet PlatformsUnder public pressure, tech platforms have recently taken some steps to limit misinformation and extreme content. But they are unlikely to do much themselves for a simple reason: their business model thrives on controversial and sensational material.Government RegulatorsThis means that government regulation has to play a role ...CongressCentral to the regulation of the tech industry is Section 230 of the 1996 Communications Decency Act, which protects internet platforms against legal action or regulation because of the content they host... make platforms accountable when they promote such content. (p. 412) AdvertisingImpose an advertising tax_c19d3cc0-4ad7-11ee-801e-69ca1583ea003.9Digital Advertising Tax. We advocate a nontrivial advertising tax to encourage alternative business models, such as those based upon subscriptions. (p. 413)WealthImpose wealth taxes_c19d3edc-4ad7-11ee-801e-69ca1583ea003.10Wealth Taxes. ... with the need for additional tax revenues for bolstering the social safety net and other investments ... well-administered wealth taxes can raise valuable revenue. (p. 414)Corporate IncomeCombine wealth taxes with corporate income taxes_c19d403a-4ad7-11ee-801e-69ca1583ea003.11... wealth taxes should be combined with corporate income taxes, imposed directly on company profits, which are easier to assess and collect. (p. 415)Wealth & Social SafetyRedistribute wealth and strengthen the social safety net_c19d41a2-4ad7-11ee-801e-69ca1583ea003.12WorkersThere is considerable evidence suggesting that people are more satisfied and are more engaged with their community when they feel that they are contributing value to society. (p. 416)Redistribution and Strengthening the Social Safety Net. The US needs a better social safety net and better and more reasonable redistribution. (p. 415) Although robust redistribution and improved social safety nets, by themselves, are not going to reduce the power of large tech companies, they can be an effective tool in reducing large inequalities ... universal basic income (UBI) ... is ... not ideal for bolstering the social safety net ... because it transfers resources not just to those who need them but to everybody... UBI is also likely the wrong type of solution to our current predicament, especially compared to measures aimed at creating new opportunities for workers. (p. 416)Social Safety NetsStrengthen existing social safety nets_c19d435a-4ad7-11ee-801e-69ca1583ea003.12.1... rather than search for fanciful transfer mechanisms, society should strengthen its existing social safety nets and crucially attempt to combine this with the creation of meaningful, well-paying jobs for all demographic groups -- which means redircting technology. (p. 417)JobsCreate meaningful, well-paying jobs for all demographic groups_c19d44c2-4ad7-11ee-801e-69ca1583ea003.12.2EducationDeploy human-complementary AI to improve educational outcomes and create meaningful new jobs_c19d4634-4ad7-11ee-801e-69ca1583ea003.13Schools... schooling is deficient in many nations, especially for students from low socioeconomic backgrounds... schools are one of the areas where human-complementary AI can be most fruitfully deployed to improve outcomes and create meaningful new jobs. (p. 417)Minimum WagesRequire minimum wages as part of a broader package aimed at redirecting technology away from automation._c19d479c-4ad7-11ee-801e-69ca1583ea003.14(p. 419)AcademiaReform academia_c19d490e-4ad7-11ee-801e-69ca1583ea003.15AcademiaUniversities... universities build the perspectives, interests, and skills of millions of talented young people who will work in the technology sector.Academics... top academics often work with leading tech firms and also directly influence public opinion.Grants & ConsultationsRequire greater transparency of grant funding and consulting engagements from tech companies_c19d4a8a-4ad7-11ee-801e-69ca1583ea003.15.1Academics... many academics in computer science, engineering, statistics, economics, and physics departments -- and, of course, business schools -- in leading universities receive grants and consulting engagements from tech companies.Tech CompaniesWe believe it is imperative to require greater transparency of such funding relationships and potentially establish some limits to restore greater independence and autonomy to academia. (p. 420)Basic ResearchIncrease government funding for basic research_c19d4bfc-4ad7-11ee-801e-69ca1583ea003.15.2GovernmentsMore government funding for basic research would also remove the dependence of academics on corporate sponsors.2023-05-312023-09-04https://shapingwork.mit.edu/power-and-progress/OwenAmburOwen.Ambur@verizon.net