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Domain: freakonomics.com
Stories and comments across the archive that link to freakonomics.com.
Stories · 7
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Ford Eyes Use of Customers' Personal Data To Boost Profits (threatpost.com)
According to industry-watchers, Ford is looking to profit off the data it can collect from its 100 million customers. In addition to the data collected from its infotainment systems and mobile apps, "Ford's CEO recently suggested that the data collected by the company's financial services arm also represents a valuable, low-overhead asset," reports Threatpost. From the report: "We have 100 million people in vehicles today that are sitting in Ford blue-oval vehicles," said Ford CEO Jim Hackett during a Freakonomics Radio podcast. "The issue in the vehicle, see, is: We already know and have data on our customers. By the way, we protect this securely; they trust us. We know what people make. How do we know that? It's because they borrow money from us. And when you ask somebody what they make, we know where they work, you know. We know if they're married. We know how long they've lived in their house because these are all on the credit applications. We've never ever been challenged on how we use that. And that's the leverage we got here with the data."
The comments, which were amplified by several auto-industry sources and the Detroit Free Press, sparked alarm in the Twitterverse. Against the backdrop of privacy disasters at Facebook and other stalwarts of the internet economy, the fear for many is that Ford sees selling access to consumers based on their lifestyle as a way forward. Is Ford considering selling consumer data as a revenue stream? Hackett stopped short of saying that -- and indeed, the data could instead simply be useful to the company internally, as a way to increase the value (and profit) of its other businesses. -
VC, Entrepreneur Says Basic Income Would Work Even If 90% People 'Smoked Pot' and Didn't Work (techinsider.io)
An anonymous reader cites a story on TI: The chief complaint people lodge at universal basic income -- a form of income distribution that gives people money to cover basic needs regardless of whether they work or not -- is that it'll make them lazy. Sam Altman doesn't buy it. In a recent episode of the Freakonomics podcast, entitled "Is the World Ready for a Guaranteed Basic Income?" Altman argued basic income could support huge amounts of productivity loss and still carry the economy on its shoulders. "Maybe 90% of people will go smoke pot and play video games, but if 10% of the people go create incredible new products and services and new wealth, that's still a huge net-win," Altman says. "And the American puritanical ideal that hard work for its own sake is valuable -- period -- and that you can't question that, I think that's just wrong." [...] The complaint Altman addressed on the Freakonomics podcast is a common one. Study after study, however, has shown that giving people extra money makes them feel financially secure. That security ends up leading to empowerment, not de-motivation. -
After 150 Years, the American Productivity Miracle Is 'Over' (qz.com)
An anonymous reader shares an article on Quartz: Economist Robert Gordon has spent his career studying what makes the US labor force one of the world's most productive. And he has some bad news. American workers still produce some of most economic activity per hour of any economy in the world. But the near-miraculous productivity growth that essentially transformed the US into one of the world's most affluent societies is permanently in the country's rearview mirror. In his new book, The Rise and Fall of American Growth, the Northwestern University professor lays out the case that the productivity miracle underlying the American way of life was largely a one-time deal. It was driven by a flurry of technologies -- electric lights, telephones, automobiles, indoor plumbing -- that fundamentally transformed millions of American lives within a matter of decades. By comparison, Gordon argues, today's technological advancements -- Uber, Facebook, Amazon.com -- will touch the productivity of the American economy lightly -- if at all. And a combination of demographic factors, such as the aging of the US population, and sociological problems such as growing inequality and educational performance that's worsened in comparison to many other rich nations, will stymie economic growth for the foreseeable future.For those not following Gordon's work, he has been expressing these views for quite some time now. Here's his TED talk from 2013 It shouldn't come as a surprise that many strongly disagree with Gordon's views. Kevin Kelly wrote in 2013: I think Robert Gordon is wrong about his conclusion: According to Gordon growth has stalled in the internet age. This question was first asked by Robert Solow in 1987 and Gordon's answer is that there are 6 'headwinds' six negative, or contrary forces which deduct growth from the growth due to technology in the US (Gordon reiterates he is only speaking of the US). The six 'headwinds' slowing down growth are the aging of the US population, stagnant levels of education, rising inequality, outsourcing and globalization, environmental constraints, and household and government debt. I agree with Gordon about these headwinds, particularly the first one, which he also sees as the most important. Where Gordon is wrong is his misunderstanding and underestimating of the power of technological growth before it meets these headwinds. First, as mentioned above, he underestimates the value of the innovations that the internet has brought us. They seem trivial compared to running water and electric lights, but in fact, as billions around the world show us, they are just as valuable. [...] So the 3rd Industrial Revolution is not really computers and the internet, it is the networking of everything. And in that regime we are just at the beginning of the beginning. We have only begun to connect everything to everything and to make little network minds everywhere. It may take another 80 years for the full effect of this revolution to be revealed. In the year 2095 when economic grad students are asked to review this paper of Robert Gordon and write about why he was wrong back in 2012, they will say things like "Gordon missed the impact from the real inventions of this revolution: big data, ubiquitous mobile, quantified self, cheap AI, and personal work robots. All of these were far more consequential than stand alone computation, and yet all of them were embryonic and visible when he wrote his paper. He was looking backwards instead of forward." You might also find Freakonomics' Stephen J. Dubner views on this interesting. -
Even On eBay, Women Get Paid Less For Their Labor (sciencemag.org)
sciencehabit writes: Women in the United States are paid only 79 cents on the dollar compared with men doing the same job. But at least gender melts away in the digital economy of the Internet, right? Nope. A study of more than 1 million auctions on the online commerce site eBay finds that women receive consistently less money than men for selling the very same products. T: The oft-cited "cents on the dollar" claims, though, ought perhaps be taken with a grain of salt; it depends who's counting, and what. -
Short Sleepers Might Be Benefiting From a DNA Mutation
An anonymous reader writes: As someone definitely not in that category, I envy people who can get along with little sleep. I have sometimes secretly believed they're exaggerating. Maybe not. The BBC reports on DNA research that says there might be a genetic basis for the very low sleep needs that some people have. The article says that UC-San Francisco researchers "compared the genome of different family members. They discovered a tiny mutation in a gene called DEC2 that was present in those who were short-sleepers, but not in members of the family who had normal length sleep, nor in 250 unrelated volunteers. When the team bred mice to express this same mutation, the rodents also slept less but performed just as well as regular mice when given physical and cognitive tasks." If it's stuck in the genes, though, I guess I'll still want more hours in a row if I don't want to start hallucinating. So how many hours do you need? I seem to get along with six or seven, but sleep past noon on the occasional weekend day. Update: 07/09 19:24 GMT by T : The latest Freakonomics podcast has some interesting things to say about the economics of sleep, and hours-per-night is a big part of it. -
A New Class of Nuclear Reactors
prunedude tips this quote from a post at Freakonomics about Japan's nuclear crisis: "The folks over at IV Insights, the blog associated with Nathan Myhrvold's Intellectual Ventures, point out that it was the complete loss of power that disabled the cooling systems protecting the plant's reactors. Which raises the question: Is there nuclear technology that could withstand such a catastrophe? Possibly. TerraPower, an Intellectual Ventures spin-off that also boasts Bill Gates as an investor, is working on a new reactor design called a traveling wave reactor that uses fast reactor technology, rather than the light water technology used at the Fukushima Daiichi plant. The two biggest advantages of the fast reactor design is that it requires no spent fuel pools and uses cooling systems that require no power to function, meaning the loss of power from the tsunami might not have crippled a fast reactor plant so severely." -
Academic Credentials and Wikiality
An anonymous reader writes "A prominent Wikipedia administrator and Wikia employee has been caught lying to the media and 'other' professors about his academic credentials. Wikipedia's Essjay has been representing himself as 'a tenured professor of theology at a private university in the eastern United States; I teach both undergraduate and graduate theology. My Academic Degrees: Bachelor of Arts in Religious Studies (B.A.), Master of Arts in Religion (M.A.R.), Doctorate of Philosophy in Theology (Ph.D.), Doctorate in Canon Law (JCD).' His real identity came to light after Wikia offered him a job: It turns out that he is really 24 years old with no degree living in Louisville, KY. Wikipedia's co-founder, Jimbo Wales, says 'I regard it as a pseudonym and I don't really have a problem with it.' How will this affect Wikipedia's already shaky reputation with the academic world?"