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SunsteinPresident-elect Barack Obama will soon be naming Cass Sunstein, an old friend of his from their University of Chicago Law School days together, the new head the White House Office of Information and Regulatory Affairs (OIRA). OIRA oversees regulation throughout the U.S. government. Basically, Sunstein’s position is the equivalent of the federal regulatory czar.

Sunstein certainly possess excellent qualifications for the job. During his time at the University of Chicago and Harvard Law School, Sunstein has established himself as a leading liberal thinker in the field of law and economics. And, as I have joked in writing about him before, he is so insanely prolific that it seems every time I finish reading one of his new books a new title by him lands on my desk. I am quite convinced that both he and Richard Posner are actually cyborgs. I just don’t understand how two humans can compose words so rapidly!

Anyway, Professor Sunstein’s new position as head of OIRA gives him the ability influence federal regulatory decisions in both a procedural and substantive way. In terms of substance, it gives him an important platform to subtly “nudge” the regulatory philosophy and direction of the Obama Administration on many matters, including Internet policy. So, what has Professor Sunstein had to say about Internet policy in his recent work? Sunstein has developed his thinking about these issues primarily in his two recent books: Republic.com (2000) and Infotopia: How Many Minds Produce Knowledge (2006). But he’s also had a few relevant things to say about Internet issues in his recent book with Richard Thaler, Nudge: Improving Decisions About Health, Wealth, and Happiness (2008).

There are 3 Internet policy-related things from his work that I’d like to focus on here because I find them all quite troubling. Continue reading →

A few months ago, I penned a mega book review about the growing divide between “Internet optimists and pessimists.” I noted that the Internet optimists — people like Chris Anderson, Clay Shirky, Yochai Benkler, Kevin Kelly, and others — believe that the Internet is generally improving our culture, economy, and society for the better. They believe the Net has empowered and liberated the masses, sparked unparalleled human creativity and communication, provided greater personalization and customization of media content, and created greater diversity of thought and a more deliberative democracy. By contrast, the Internet pessimists — including Nick Carr, Andrew Keen, Lee Siegel, and others — argue that the Internet is destroying popular culture and professional media, calling “truth” and “authority” into question by over-glamorizing amateurism and user-generated content, and that increased personalization is damaging deliberative democracy by leading to homogenization, close-mindedness, and an online echo-chamber. Needless to say, it’s a very heated debate!

I am currently working on a greatly expanded version of my “Net optimists vs. pessimists” essay for a magazine in which I will draw out more of these distinctions and weigh the arguments made by those in both camps. I plan on concluding that article by arguing that the optimists generally have the better of the argument, but that the pessimists make some fair points about the downsides of the Net’s radically disintermediating role on culture and economy.

So, this got me thinking that I needed to come up with some sort of a label for my middle-of-the-road position as well as a statement of my personal beliefs. As far as labels go, I guess I would call myself a “pragmatic optimist” since I generally side with the optimists in most of these debates, but not without some occasional reservations. Specifically, I don’t always subscribe to the Pollyanna-ish, rose-colored view of the world that some optimists seem to adopt. But the outright Chicken Little-like Ludditism of some Internet pessimists is even more over-the-top at times. Anyway, what follows is my “Pragmatic (Internet) Optimist’s Creed” which better explains my views. (Again, read my old essay first for some context about the relevant battle lines in this intellectual war).

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Carr Big Switch book coverI just finished reading through The Economist’s new 14-page special report on cloud computing, “Let It Rise” in which Ludwig Siegele provides an outstanding overview of cloud computing and why it is so important:

The rise of the cloud is more than just another platform shift that gets geeks excited. It will undoubtedly transform the information technology (IT) industry, but it will also profoundly change the way people work and companies operate. It will allow digital technology to penetrate every nook and cranny of the economy and of society, creating some tricky political problems along the way.

Even if you are very familiar with cloud computing, I recommend you take a look at the article. Anyway, while I was reading it, I was unsurprised to come across some comments from Nicholas Carr, whose new book The Big Switch: Rewiring the World, from Edison to Google, is essentially an early history of cloud computing and an investigation into its effects on our economy, culture, and society. And that also reminded me that, even though I have mentioned Carr’s book here several times since it was released earlier this year, I have failed to give it a dedicated review. And it certain deserves one because “The Big Switch” is easily one of the most important technology policy books of 2008.

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Siegel Against the Machine book coverOf the titles I included in a mega-book review about Internet optimists and pessimists that I posted here a few months ago, I mentioned Lee Siegel’s new book, Against the Machine: Being Human in the Age of the Electronic Mob.  It is certainly the dourest of the recent books that have adopted a pessimistic view of the impact the Internet is having on our culture, society, and economy. Because Siegel’s book is one of the most important technology policy books of 2008, however, I decided to give it a closer look here.

Siegel’s book essentially picks up where Andrew Keen’s leaves off in Cult of the Amateur: How Today’s Internet is Killing our Culture (2007).  I posted a two-part review of Keen’s book here last year [Part 1, Part 2], but here’s a quick taste of Keen’s take on things.  He argues “the moral fabric of our society is being unraveled by Web 2.0” and that “our cultural standards and moral values are not all that are at stake.  Gravest of all,” Keen continues, “the very traditional institutions that have helped to foster and create our news, our music, our literature, our television shows, and our movies are under assault as well.”

As I noted in my earlier “Net optimists vs. pessimists” essay, after reading Cult of the Amateur, I didn’t think anyone else could ever be quite as over-the-top and Chicken Little-ish as Keen. But after working my way through Siegel’s Against the Machine, I realized I was wrong. It made Keen seem downright reasonable and cheery by comparison! Keen and Siegel seem to be in heated competition for the title “High Prophet of Internet Doom,” but Siegel is currently a nose ahead in that race.

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[Note: I updated this discussion and chart in a subsequent essay. See: “Are You An Internet Optimist or Pessimist? The Great Debate over Technology’s Impact on Society.”]

A number of very interesting books have been released over the past year or two which debate how the Internet is reshaping our culture and the economy. I’ve reviewed a couple of them here but I have been waiting to compile a sort of mega-book review once I found a sensible way to conceptually group them together. I’m not going to have time to cover each of them here in the detail they deserve, but I think I have at least found a sensible way to categorize them. For lack of better descriptors, I’ve divided these books and thinkers into two camps: “Internet optimists” versus “Internet Pessimists.” Here’s a list of some of the individuals and books (or other articles and blogs) that I believe epitomize these two camps of thinking:

Adherents & Their Books / Writings

Internet Optimists

Internet Pessimists

Yochai Benkler, The Wealth of Networks

Andrew Keen, The Cult of the Amateur

Chris Anderson, The Long Tail and “Free!”

Lee Siegel, Against the Machine

Clay Shirky, Here Comes Everybody

Nick Carr, The Big Switch

Cass Sunstein, Infotopia

Cass Sunstein, Republic.com

Don Tapscott, Wikinomics

Todd Gitlin, Media Unlimited

Kevin Kelly & Wired mag in general

Alex Iskold, “The Danger of Free

Mike Masnick & TechDirt blog

Mark Cuban

And here’s a rough sketch of the major beliefs or key themes that separate these two schools of thinking about the impact of the Internet on our culture and economy:

Beliefs / Themes

Internet Optimists

Internet Pessimists

Culture / Social

Net is Participatory

Net is Polarizing

Net yields Personalization

Net yields Fragmentation

a “Global village

Balkanization

Heterogeneity / Diversity of Thought

Homogeneity / Close-mindedness

Net breeds pro-democratic tendencies

Net breeds anti-democratic tendencies

Tool of liberation & empowerment

Tool of frequent misuse & abuse

Economics / Business

Benefits of “free” (“Free” = future of media / business)

Costs of “free” (“Free” = end of media / business)

Increasing importance of “Gift economy

Continuing importance of property rights, profits, firms

“Wiki” model = wisdom of crowds; power of collective intelligence

“Wiki” model = stupidity of crowds; errors of collective intelligence

Mass collaboration

Individual effort

So, what to make of this intellectual war? Who’s got the story right?

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In a previous essay, I critiqued Andrew Keen’s thesis that our culture was better off in the age of scarcity than it is in today’s world of media and cultural abundance. In this essay, I want to make a few comments about his latest anti-Web 2.0 rant regarding how, in addition to destroying art and culture, the age of abundance and “amateur” content creation is going to result in the death of advertising.

In an AdWeek guest editorial this week, Keen argues that:

Web 2.0 is, in truth, the very worst piece of news for the advertising industry since the birth of mass media. In the short term, the Web 2.0 hysteria marks the end of the golden age of advertising; in the long term, it might even mark the end of advertising itself.

[…]

[F]or the advertiser, media content is indeed losing its value, a value historically derived from its scarcity. This devaluation of media isn’t hard to quantify: It can be measured everywhere, in falling CPM and the failure of social networks to develop viable business models. No new technology—neither the false dawn of mobile, nor the holy grail of personalized, targeted advertising—is going to save the advertising business now. No, the truth is that advertising can only be saved if we can re-create media scarcity. That means less user-generated content and more professionally created information and entertainment, less technology and more creativity. The advertising community desperately needs more gatekeepers, more professional creative authorities, more so-called media “elites” who will curate, filter and organize content. That’s the way to re-establish the value of the message. It’s the one commercial antidote to Web 2.0’s radically destructive cultural democracy.

Oh my, where to begin…

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Andrew Keen is the web’s favorite whipping boy these days, and in some ways he has it coming. His latest book, The Cult of the Amateur: How Today’s Internet is Killing Our Culture, is an anti-all-things-Web 2.0 screed. Keen lambastes “Internet democracy” (specifically the Wiki model of collaborative creation) and decries the rising tide of user-generated everything. When you get right down to it, Keen’s view of the world is unapologetically techno-conservative and culturally elitist. He’s angry that there are fewer intermediaries minding the culture. As a result, he argues, “professional” media (by which he means to say “better” media) is giving way to “amateur” media (which he regards as synonymous with, well… crap).

Unsurprisingly, the blogosphere has fought back with a vengeance and called Keen every nasty name in the book. But the best and most level-headed critique of Keen’s work is still this old essay by the ever-insightful Clay Shirky. Clay’s response rightly concedes that Keen in correct in pointing out that some important things have been lost with the rise of the Internet. There certainly are fewer intermediaries filtering our culture for us, and that will sound like a great thing to many of us. But it’s important to realize that some of those mediating forces serve a valuable role. Editors, for example, play an important, but often overlooked, role in terms of improving the quality of great deal of media content of all varieties (journalism, books, movies, music, etc). The blogosphere is becoming an editor-free zone, and at times it really shows. There are times when some particularly insulting things are said or silly mistakes are made that probably would have been corrected had a good editor been responsible for overseeing the final product.

On the other hand, the unfiltered Web 2.0 experience is wonderfully refreshing. Sometimes it’s nice to see what the uninhibited exchange of ideas results in. Regardless, the bottom line is that the editing profession (broadly defined) is changing because of the Internet. That is undeniable. And other mediating forces or institutions are seeing their power or relative importance in the cultural creation process diminished as the Internet-spawned disintermediation continues unabated.

Will that create short term problems? Undeniably. But Keen thinks these developments are contributing to a sort of cultural catastrophe and that we are collectively much worse off because of this disintermediation and empowerment of the “amateur.” This goes much too far in my opinion.

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