Campaign finance laws and its limits

Today, marked the second time the Supreme Court ruled against setting maximum campaign contributions. First, it was a limit on corporations, now it’s the limit an individual can contribute in a given year. The first ruling is called Citizens United and I was initially very against this ruling because I felt that it would give undo influence to corporations. However, based on the argument Lawrence Lessig provides in “Republic Lost” – that at what point does an arbitrary limit on spending make sense? For example, if I decide to spend a lot of money on ads for a specific candidate through multiple different channels. The problem isn’t that I, as an extremely wealthy person or organization, can spend as much as I want, it’s that there’s an inequality between what You, as a poor pleb, are able to spend. This creates an inequity in the free-ness of speech.

We know that the amount of money a person can raise heavily influences their success rate in the election. This isn’t a surprise as the candidate is able to run more ads and reach a broader audience than the candidate with less money. There’s nothing new to this. Furthermore, the current structure of our media makes it amenable to rich people that spend a lot of money. The limit of $123,000/year/candidate didn’t really impact how much money a wealthy individual actually spent on the elections. Based on this biased news source, the Koch brothers spent over $2 million in more than one state. So, the campaign limits didn’t really work as designed regardless of the limits set. The Supreme Court Ruling basically just aligned the law with reality and didn’t change a whole lot.

Campaign Finance reform is just a band aid over a much greater systemic problem. This is something that Lessig was trying to address in his book, other writers have tried to address through different books, and tech leaders through cruise ships off the coast of San Francisco.

However, I think that this Atlantic image really shows the problem:

The Atlantic: Top .01% income growth

We live in a highly unequal society and the finance rules for campaigns was an attempt to set arbitrary limits to control the influence of the wealthiest Americans. It wasn’t working. The Supreme Court admitted it. Now we need to figure out how to actually fix this extremely difficult problem – that some portions of the population refuse to see as a problem.

I don’t have a solution to this problem. Lessig proposes we use laws to encourage accepting public funds and the creation of that fund through taxes. This would eliminate the influence on donations – which directly or indirectly impact the vote from a person in Congress. Creating something that more effectively through the right incentives and behavior modification is a good start to address the inequality we have in our country.

I think that the growing inequality is hurting our country. When we were much more equal in terms of economic status, we were innovating, for real innovation, not applications. We were developing things to send people to the moon. The greater the separation the top percentages has from the bulk of the population the more risk adverse they’ve become. They aren’t helping push us towards bigger and better things. We need the equality to help drive innovation. That’s the root cause of the problem. Campaign Finance reform was attempting to address a symptom and not even well. Let’s figure out how to address the root cause.

Who’s responsible for the internet’s capacity?

AT&T thinks that Netflix is trying to pass off the cost of network connections to end customers. There have been a few different displays of the architecture of the internet. Netflix operations at a different layer than AT&T does – Netflix is an application, so it runs on a layer above the network layer, which AT&T operates. Netflix doesn’t really care who actually sends their bits to the end user – they just care that they get there in a fashion that enables high def video. To this end, they purchase bandwidth from a company, mostly Cogent, and I pay Comcast (others pay AT&T) for me to receive those bits from the bandwidth provider of Netflix. I pay Netflix for access to their content.

Based on this payment model, if there’s not enough bandwidth for Netflix and I’m paying AT&T or another ISP for accessing Netflix, it’s up to them to make sure I have that connection. Content is King, so for me, it’s most important that I can access what I want when I want. That’s why I have an ISP so they can let me see what I want.

I think that the best analogy for content trumping gate keepers are the examples of higher premiums from popular channels. In some cases Timewarner cable pushed for lower rates to show a specific channel to their subscribers. In this example Forbes points out that ESPN costs $5.54 per viewer, they wanted to lower that price and pulled the channel out of rotation. This made a lot of people unhappy and in some cases people left Time warner over the issue.

Essentially, this is the same thing that is happening with Netflix. The ISPs don’t want to pay to upgrade their infrastructure to ensure that the consumers of media online (many of these people paying for higher download speeds and higher data caps). Netflix is providing a service that these people are willing to pay for but cannot control how the ISPs interact with their intermediaries so is in a tough spot. It’s a target because of it’s popularity and has no control of how anything gets to a specific user. That’s why it’s looking at the peer2peer model (which is how Skype keeps their rates low) so it won’t need to go through Cogent and will likely burden other parts of the network very differently.

I believe that if an ISP cannot meet it’s advertised speeds 90% of the time, then they need to update their infrastructure to meet my needs. If they throttle a popular service I’m watching and thus make it unwatchable, they need to upgrade their infrastructure. Most ISPs have an extremely high profit margin, which means that it’s coming out of their infrastructure investment and are not actually adding value.

There are many companies that are responsible for the capacity of the infrastructure and all of them can negatively impact our ability to use the internet. However, from an end user perspective, my ISP is on the hook first, then everyone else.

Protecting the web and user through a Internet Bill of Rights

The guy who helped invent the internet, no not Al Gore, Tim Berners-Lee wants a new Magna Carta for the internet. If he was American it’d be a bill of rights or declaration of independence, if he was an anarchist, it’d be a manifesto. This call for a clear set of rules for the online/cyberspace is nothing new. The first article was written in 1986 – 3 years before the internet was created. This was when kids were using phones and a few other systems to hack things. The most recent was only a few years ago from an internet website.

Creating these documents is an effort in futility. We already have a bill of rights in the US that SHOULD be protecting us from the NSA, GCHQ, CIA, and other organizations. These organizations, at least the US ones, should be forbidden from given information they “accidentally” collect on US citizens to other governments. They do though. We have secret courts with secret interpretations of laws that we as citizens have no idea what they are. How is ANOTHER Magna Carta going to help?

There’s absolutely no reason to expect our governments to abide by these new laws when they are flouting the current laws – attempting to undermine existing laws through intentionally narrower interpretations of rulings – in many cases getting slapped on the wrist later for infractions that have been going on for years.

Creating a new bill of rights, Magna Carter, or whatever will not solve the problem. The problem is not the current set of laws, though that doesn’t help, the root cause of the problem is corruption and arrogance.

Now that it’s been uncovered that the CIA hacked Congress’s Intelligence Committee, one that had been defending the NSA, there’s all sorts of kerfuffle. Congress didn’t care, excepting Ron Wyden (and a few others), until they realized that they were just as likely targets any the average Joe.

Most members of Congress are funded through companies and special interest groups. These include companies that support the NSA and other intelligence organizations. If any of those orgs funded any member of Congress on a committee that oversees anything related to intelligence gathering there’s going to be corruption. Regardless of if it’s quid pro quo or not.

We will never pass a bill of rights for the internet as long as there’s potential conflicts of interest (funded by companies that bills are trying to regulate). We must address corruption before we can hope to have an effective set of rights for the internet or anywhere else.

Russia and the prisoner’s dilemma

For the past few years we’ve been playing a prisoner’s dilemma with Russia. In fact, I’d argue that this goes back farther than just a few years, it might even go back to our two wars in the Iraq and Afghanistan. The US essentially was able to convince through a mixture of sympathy, arm twisting, and out right lies as we know now.

Since then at every turn Russia has been a balancing force or antagonizing force depending on your perspective, to US goals in different parts of the world; specifically in places like Liberia, Syria, and Turkey. In none of these cases was Russia in a position to really push back against the US and definitely could not have pushed for Sanctions against the US.

Now, with the Ukraine crisis it’s not longer through proxies. This is a head to head game against some of the most corrupt politicians on earth. These politicians make our “corrupt” politicians look like kittens. They are not afraid to lock up someone for political dissent, like Pussy Riot or many others. Furthermore, there are a lot of accusations of out right poisoning or murder as well. In the US, there might be calls for sending someone to prison, but truthfully, I don’t think that anyone would be happy if it was incredibly easy to send a duly elected official in the US to prison. We might like it to be easier or whatever, but it’s not and it’s even better that it’s hard for dissenters to be sent to prison.

Obama likely has gained some experience with the brinkmanship that’s happened in the US in the past few months, but that’s really nothing compared to Putin’s experience as a KGB agent and running Russia for the past 15 years. For the Crimea (where Russia has “invaded or not”) this has some serious implications. At this point the US can do a few things, commit militarily, push for sanctions – likely including removing Russia from UN and other international bodies, and little else. To preempt any discussion on sanctions Russia has already said that happens they will simply shift away from the Dollar and stop repaying any US banks.

This is what we have to look forward to with this Crimea Crisis. Russia and the US are both in a no-blink position over this. The US believes that Russia is in the wrong with their actions in Crimea and Ukraine, while Russia believes it is doing nothing wrong.

We’re entering a pretty terrifying time with these stand offs. At this point we don’t know how the people are playing the Prisoner’s Dilemma. Are they all playing the game as if we’re going to have another turn? In all the other cases I’d say that yes, we’ve played as if there will be more turns. However, people are arguing we’re on the brink of another cold-war. I can’t make a claim either way for that – I look back at movies from the 80’s and at times have difficulty remembering the context that movie was filmed in. However, thinking about the tension in this situation and the fear that the other guy is only planning on one interaction that it’s this and never another move, that’s pretty terrifying – especially since I want to keep playing.

What’s the difference between Ma Bell and Comcast?

If you were born in the 80’s or before you know that Ma Bell was the only phone company in town. Born any later than that you were born into a world without a single monopoly for telecommunication. That’s right, we’ve had a point in our collective history where there was only a single phone company. There are rules in place that prevent something similar from happening with Comcast, but we’ve been there before. However, I believe there are critical differences. AT&T knew they were a monopoly and they were a state sanctioned monopoly. They did everything in their power to keep prices down to prevent being broken up. AT&T actually had a broader monopoly than what Comcast could ever hope to have. They made the phones that worked on the line, they made all the telecom technology that made it work, and they designed the services that made it work. This is something called a natural monopoly, which I’ve written about before. A former founder of Comcast has declared Comcast a natural monopoly.

The biggest difference between Comcast and AT&T, back in the day, was that they did everything they could to keep the government happy. Was it perfect, no clearly not, there were shady business practices, but we as a society benefited greatly from Bell Labs. To this stay is still one of the greatest research facilities that ever existed. If it wasn’t for Bell Labs our current way of life would be very different. I highly suggest checking out the book on it.

Comcast claims to be pushing innovation with their X1 Xfinity platform, but that’s not really true, it’s simply a new operating system pushing content. Voice activation isn’t innovation and if that’s your main selling point then you’re in serious trouble. As I mentioned yesterday, the Netflix deal is a major concern, the Verge is saying the Internet is fucked and that we need to be contacting the FCC daily to un-fuck it.

I’m not entirely sure that the FCC can fix it. Congress has greatly hamstrung the FCC in dealing with internet companies, furthermore, their solution of calling the internet a Utility won’t work. If you aren’t aware we’ve had big pushes to deregulate the utility industry which unfortunately hasn’t really made rates better in many cases or in the long run. I think that it’s fair to say that in the telecom industry this is true as well. The impact of the AT&T break up has been this long term collection of conglomerates that continually increase price as well as “Fees” which similar to baggage fees are hidden from the “price” of the service. So, treating the internet like a utility isn’t going to work. What we need to do is treat it like a road.

Everyone that uses a car on the road is taxed based on use (Gasoline taxes) everyone pays for a portion of the maintenance based on other local taxes too. No, these aren’t perfect and are going to be under pressure based on hybrid and electric cars – and new models are being proposed. Of course one way to do this is through toll roads (which really never work) or through some sort of black box in the car to measure mileage (which no one wants).

Essentially it’s a pay for bandwidth consumed, so if you’re a high consumer of bandwidth you’d pay more, but the rates need to be realistic and the goal would be to cover expenses and continually improve service while making it cheaper. Which brings me back to AT&T – the president of Bell Labs had one mantra anything could be tested but only if it could lead to a “Better, cheaper or both” network. A public internet similar to a road that was paid to continually get cheaper, better, more secure, and faster is the only way to truly un-fuck the internet. It’s not likely to happen because it’s not a capitalist response. However, the internet these days is similar to public transpiration – it’s goal isn’t to make money, it’s goal is to enable economic activity. If think of it that way, then we can see the long term benefit of the whole economy rather than singular actors.