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    • Facebook and the Dispossession of Preferences

      By Gordon Hull

      A little more than a year ago, I floated a version of the thesis that Big Data functions as a form of capitalist accumulation by dispossession.  “Accumulation by Dispossession” is David Harvey’s term for what Marx called “primitive accumulation,” and the basic idea is that capital has to extract value from individuals in a way that pushes them into its system of value extraction.  It does that by depriving them of other sources of value.  For example, the enclosure laws in 16th-Century England served to dispossess commoners and small-scale farmers of the ability to subsist off the land, and so thrust them, “free” into the urban labor pool.  Absent this initial dispossession, the formation of the urban market in “free labor” would have been impossible.  My argument focused on the dispossession of preferences, and was that data analytics function to deprive us of the capacity to form and express preferences outside of the logic of capitalist markets.  That is significant because the more our “preferences” are restricted to those things that we can buy, the more our lives are determined by market logic – and the more things that exceed market logic become invisible.  We are dispossessed of the ability to imagine life differently.

      So.  Back to Facebook.  A recent piece by Sam Biddle in the Intercept, based on a leaked internal FB document, suggests that Facebook is deeply engaged in exactly this process.  According to Biddle:

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    • Hostile Information Architecture

      By Gordon Hull

      Surprise! Facebook is back in the news and the doghouse, this time for allowing vast amounts of user data to find its way to Cambridge Analytica, which then used it to try to elect Donald Trump.  The only surprise is that anyone is surprised.  I’ll review why that is first, then offer a term that gets at what I take to be the real problem: we live in a deliberately-created hostile information architecture.  Let’s first rehearse why the FB-Cambridge Analytica nexus is not a surprise.

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    • Property as Juridical and Biopower (part 3, with a little bit about subjectification)

      By Gordon Hull

      In the two previous posts, I first suggested that Thomas Merrill’s logical argument for why the right to exclude was the sine qua non of any conception of property was inconclusive.  I then offered a brief reading of the Foucauldian distinction between juridical and biopower, applying it to Locke to suggest that in Locke’s case, both aspects of power were present, but juridical was dominant.  In what follows, I want to argue that the opposite is the case with the contemporary Demsetzian account: here, biopower is dominant.  In other words, a look at endpoint historical instances of property theory suggests that the view of power underlying them has changed from Locke’s time to ours, even as the (quasi-juridical) right to exclude remains a common thread.

      To return to Merrill’s thoughts on exclusion, how might we combine exclusion with Foucauldian theories of power?  An initial argument is straightforward, and goes something like this: any conception of property that says the right to exclude is essential retains at the very least that much of a juridical understanding of property.  Since rights are an aspect of juridical power, and since juridical power is about the right to repress and to prevent, it’s easy enough to see the exclusionary right as juridical.  Merrill’s arguments about the priority of the right to exclude over the right to use and develop suggests that any biopolitical emphasis on optimization is ultimately secondary to a basic ability to repress.  Importantly, Merrill extends his argument to commons-based regimes: any internal use privileges are secondary to the initial ability of the villagers to exclude non-members.  In short, even as we increasingly live by biopolitical regimes, juridical power retains its force at the very core of those regimes: the property right which has been the central feature of capitalism.

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    • Property as Juridical and Biopower (part 2)

      By Gordon Hull

      Last time, I suggested that Thomas Merrill’s logical argument for why the right to exclude was the sine qua non of any conception of property was inconclusive.  With that space cleared, I want to focus on what I think a focus on the right to exclude does emphasize.  Merrill is right that property theory has tended to take the right to exclude as fundamental.  A historical dive into how that right is conceptualized says something important about how we have understood power.

      That is, the focus on the right to exclude does show us something important has changed.  If we use Locke and Demsetz as points of comparison (in the sense that they present historical endpoints), it is clear that both theories of property rely on both juridical and biopolitical justifications.  However, in the Lockean case the biopolitical end is subordinate to the juridical one; in the Demsetzian case, the opposite holds.  In other words, we have away moved from a model of property in which juridical power is dominant to one where biopolitical power is dominant.

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    • Property as Juridical and Biopower (part 1)

      By Gordon Hull

      In a 1998 paper, Thomas W. Merrill argues that the presence of the right to exclude others is the necessary and sufficient condition for the presence of a property right.  In this, he views himself as arguing against a “nominalist” interpretation of the right.  This nominalist interpretation, associated with legal realism and the familiar Hohfeldian “bundle of rights,” says that property is best conceived as being located in a conventionally established set of rights, the exact contours of which will vary between jurisdictions and time periods, and within which no one element is necessary.  At the risk of importing a somewhat anachronistic term, we might say that the Hohfeldian bundle leads somewhat directly to a “family resemblance” theory of property (Julie Cohen applies it to property in the paper I’m using below; the approach has also been used to good effect for privacy, and with explicit reference to Wittgenstein).  In defense of this proposition, Merrill offers three kinds of justifications: a logical one, a historical one, and one based on established legal use.  More about the first in a moment; the latter two rely on accumulated historical record and precedent.

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    • The NRA went down to Georgia

      I live in North Carolina, the state legislature for which has been basically bought by Art Pope, a smaller-scale Koch brother (the Koch brothers themselves, meanwhile, have been successfully buying the federal government).  The NC legislature has done some truly staggering things, so I’m pretty jaded on the topic of what state legislatures can do.  But the sheer cynicism of the Georgia GOP is worth noting.  When Delta Airlines decided to end its discount program for NRA members, Georgia’s lieutenant governor Casey Cagle immediately took to Twitter to announce that he would scuttle a tax break the airline was about to receive. Cagle, of course, has an A+ rating with the NRA and has received the organization’s endorsement.

      In any sane universe, this would inspire a talk about whether Cagle’s behavior broke laws against corruption.  Therefore, it’s legal in this universe and no doubt the NRA is just exercising it’s Free Speech money-words in manner that just happened to be persuasive.  Just like the Charles Koch and his wife weren’t in any way involved in corruption when they sent a $500,000 check to Paul Ryan’s campaign almost immediately after the GOP passed its handout to billionaire donors tax reform package.

      Good riddance to yet another corporate giveaway. The problem here is the process, not the unexpectedly happy result (some Georgia conservatives even learned the term "crony capitalism" once their brothers in the NRA had been made to suffer so greatly), but in the meantime, Mr. Cagle, I don’t know what bet you lost, but the NRA got your soul.

    • John Perry Barlow (1947-2018)

      John Perry Barlow, Grateful Dead lyricist and one of the early advocates for a libertarian cyberspace free of governmental regulation, as well as founder of the Electronic Frontier Foundation (EFF), died yesterday.  The EFF notice is here.  Barlow is perhaps best known for his "Declaration of the Independence of Cyberspace."  As we look at  a world where authoritarian  governments use Twitter to arrest and imprison protesters, and where  the NSA is apparently intercepting and recording pretty much everything online, Barlow's vision can seem too optimistic, or even naive.  But viewed as critique, it also reminds us that the Internet is a human creation, and its regulation can be changed by human laws and human interventions.  The EFF is a lasting contribution to that critical vision, and is a frequent litigant defending privacy and other rights online.

      I had the chance to bring Barlow in for a talk many years ago when I was  at Colorado College.  He was thoughtful, engaged, and a genuine pleasure to host.  He will be missed.

    • Healthcare and the Nature of the Firm

      By Gordon Hull

      Yesterday, a group of very rich and influential corporations – Amazon, Berkshire Hathaway and JPMorgan Chase – announced that they would be teaming up to form an independent healthcare company for their employees.  From the NYT:

      “The alliance was a sign of just how frustrated American businesses are with the state of the nation’s health care system and the rapidly spiraling cost of medical treatment. It also caused further turmoil in an industry reeling from attempts by new players to attack a notoriously inefficient, intractable web of doctors, hospitals, insurers and pharmaceutical companies.  It was unclear how extensively the three partners would overhaul their employees’ existing health coverage — whether they would simply help workers find a local doctor, steer employees to online medical advice or use their muscle to negotiate lower prices for drugs and procedures. While the alliance will apply only to their employees, these corporations are so closely watched that whatever successes they have could become models for other businesses.”

      The CEOs were very clear that they weren’t sure what they were going to do, but that they intended to improve the healthcare cost problem for their employees and corporations.  This announcement falls only a couple of weeks after a consortium of hospitals announced that they’d be forming an independent drug company to supply them with cheap generic drugs.  That announcement was spurred in part by the recent behaviors of investors who scoop up old drugs for rare diseases, and then raise the price enormously, knowing that the drug is uncommon enough that there won’t be market competition.  But the behavior of those who exponentially raise the prices of EpiPens and Daraprim is really only an exemplar of the more general pricing strategy of Pharma, as the Times reported with regard to the doubling of the price of rheumatoid arthritis drug Humira since 2012. 

      What the Amazon/JPMorgan/Berkshire Hathaway consortium and the hospital consortium have in common, then, is that they are committing to find new ways to make health care cheaper.  And they are doing so by attempting to internalize costs that they would otherwise have to pay for on the market.  Two thoughts:

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    • Intellectual Property, Creative Commons and Neoliberal Biopower

      By Gordon Hull

      In “Intellectual Property’s Leviathan,” Amy Kapczynski argues that both advocates of strong IP protection, and critics from the creative-commons (CC) side tend to view the state in the same way: “both those who defend robust private IP law and their most prominent critics … typically describe the state in its first instance as inertial, heavy, bureaucratic, ill-informed, and perilously corruptible and corrupt” (131-2).  On the pro-IP side, neoliberal economic doctrine (she cites Hayek) view the state’s role as establishing markets and getting out of the way.  The state otherwise lacks the information to decide winners and losers efficiently, and in any case, it would tend to be corrupted by political or other sectarian interests (ignore for the moment the corruptibility of markets).  On the creative commons side, which Kapczynski identifies with Yochai Benkler and Lawrence Lessig, there is a tendency to adopt exactly the same view of the state: “the commons, they suggest, is a concept that seeks not only to liberate us from predatory and dysfunctional markets, but also from predatory and dysfunctional states” (137).  As she points out, IP does present a number of obvious instances of regulatory capture, so the fear is not an irrational one.  The irony behind this distancing, however, is that both views also require the state to be a functioning entity capable of creating and executing reasonably coherent policy.  For the pro-IP camp, the state has to be able to administer a property regime (and a complex regulatory bureaucracy); for the commons camp, the state has to be able to do things like fund basic research through agencies like the NIH.

      Kapczynski’s point is an important one, and I have only a couple of things to add.  First, she notes that the commons theorists tend to treat infrastructural projects and commons-based private ordering systems in the same camp.  As she notes, this is a strange move:

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    • Revising Foucault on Neoliberalism: the Role of Monopolies (part 2)

      By Gordon Hull

      As I suggested last time, the current neoliberal expansion of IP hinges on the acceptance of monopolies, and the relation between deadweight loss (as advanced by Arrow) and incentives theory (as advanced by Demsetz) is accordingly essential to understanding it.  Here I want to expand on that point, and then say something about contemporary theory.

      The debate is one that Demsetz’s side is winning.  When term limits came before the Supreme Court in Eldred v. Reno, a set of seventeen economists – including such neoclassical luminaries as Arrow, James Buchanan, Ronald Coase, and Milton Friedman – submitted an amicus curiae brief to the Supreme Court opposing the 1998 Copyright Term Extension Act (CTEA).  These economists made arguments precisely in terms of incentives and deadweight loss: a further increase in term length is highly unlikely to make a meaningful difference to incentives to create works, while likely to burden the public with reduced access, and other creators with greater licensing fees.  They conclude:

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