The financial crisis currently consuming the U.S. has led tech industry leaders, such as Microsoft’s Steve Ballmer, to speak out in favor of quick Congressional action. Tech stocks, as well as general stocks, have plummeted, and there is confusion over why this crisis is happening and spreading so fast. One explanation that makes a lot of sense draws on network and information theory.
“[The U.S.] market economy is nothing more than a vast, parallel-processing information network,” explains noted economist John Rutledge in his new book Lessons From a Road Warrior. Network theory, the examination of interconnected systems, can help us understand the current market crisis, because it can aid in identifying and understanding cascading information network failures.
When a “super node” in a network goes down, for example, it has the potential to take down the whole system, since these key nodes are connected to many others. Perhaps the most familiar crash of this sort is a power blackout. If a storm or accident takes down a single power line, it can lead to a power loss for a whole city. That type of crash, Rutledge explains, is exactly what is happening now.
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Read more here.
This is a good article by Harvard professor Harry Lewis. He worries that the ease of spreading lies on the Net puts us at risk of losing “a thoughtful, analytical, educated citizenry, capable of sharing responsibility for the long-term welfare of the nation.” Here’s a excerpt from his piece:
“If he wins, Barack Obama is going to be sworn in on a Koran instead of the Bible. Trig isn’t Sarah Palin’s baby, it’s her daughter Bristol’s. Obama refuses to say the Pledge of Allegiance. Here’s the list of books Palin wanted to ban from the library …
All these claims — none of them true — turned up in the e-mail inboxes of millions of Americans this summer. In spite of both campaigns’ efforts to correct the record about their candidates, the rumors linger on and spread.”
Nine months after Barack Obama, John McCain has unveiled his own technology plan for America. At last, both candidates can be graded for their long-term friendliness to the tech sector. You can read my analysis here, but the upshot is that Obama has multiple weaknesses, particularly when it comes to taxes, property rights, labor and government waste that harms America’s tech sector. McCain’s weakness is the transparency issue, but overall he looks better positioned than Obama on issues that matter most to innovators in the tech community.
This is nice to see, especially given his recent comments about Internet use…
So-called consumer groups may be calling for antitrust action against Google right now, but Intel is actually facing charges. Unfortunately, antitrust has come to be used by under-performing companies to slow down their competitors in the the hyper-competitive tech sector. This trend is not only bad news for consumers, but it may put American companies at risk now that foreign governments are getting more interested in the game. Here’s my recent article on the issue.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.