Sunday, September 14, 2014

"As the Economy Gets Ever Better at Satisfying our Immediate, Self-serving Needs, Who is Minding the Future?"

The future will happen with or without you.
From The American Scholar:
A half-hour east of Seattle, not far from the headquarters of Microsoft, Amazon, and other icons of the digital revolution, reSTART, a rehab center for Internet addicts, reveals some of the downsides of that revolution. Most of the clients here are trying to quit online gaming, an obsession that has turned their careers, relationships, and health to shambles. For the outsider, the addiction can be incomprehensible. But listening to the patients’ stories, the appeal comes sharply into focus. In a living room overlooking the lawn, 29-year-old Brett Walker talks about his time in World of Warcraft, a popular online role-playing game in which participants become warriors in a steampunk medieval world. For four years, even as his real life collapsed, Walker enjoyed a near-perfect online existence, with unlimited power and status akin to that of a Mafia boss crossed with a rock star. “I could do whatever I wanted, go where I wanted,” Walker tells me with a mixture of pride and self-mockery. “The world was my oyster.”

Walker appreciates the irony. His endless hours as an online superhero left him physically weak, financially destitute, and so socially isolated he could barely hold a face-to-face conversation. There may also have been deeper effects. Studies suggest that heavy online gaming alters brain structures involved in decision making and self-control, much as drug and alcohol use do. Emotional development can be delayed or derailed, leaving the player with a sense of self that is incomplete, fragile, and socially disengaged—more id than superego. Or as Hilarie Cash, reSTART cofounder and an expert in online addiction, tells me, “We end up being controlled by our impulses.”

Which, for gaming addicts, means being even more susceptible to the complex charms of the online world. Gaming companies want to keep players playing as long as possible—the more you play, the more likely you’ll upgrade to the next version. To this end, game designers have created sophisticated data feedback systems that keep players on an upgrade treadmill. As Walker and his peers battle their way through their virtual worlds, the data they generate are captured and used to make subsequent game iterations even more “immersive,” which means players play more, and generate still more data, which inform even more immersive iterations, and so on. World of Warcraft releases periodic patches featuring new weapons and skills that players must have if they want to keep their godlike powers, which they always do. The result is a perpetual-motion machine, driven by companies’ hunger for revenues, but also by players’ insatiable appetite for self-aggrandizement. Until the day he quit, Walker never once declined the chance to “level up,” but instead consumed each new increment of power as soon as it was offered—even as it sapped his power in real life.

On the surface, stories of people like Brett Walker may not seem relevant to those of us who don’t spend our days waging virtual war. But these digital narratives center on a dilemma that every citizen in postindustrial society will eventually confront: how to cope with a consumer culture almost too good at giving us what we want. I don’t just mean the way smartphones and search engines and Netflix and Amazon anticipate our preferences. I mean how the entire edifice of the consumer economy, digital and actual, has reoriented itself around our own agendas, self-images, and inner fantasies. In North America and the United Kingdom, and to a lesser degree in Europe and Japan, it is now entirely normal to demand a personally customized life. We fine-tune our moods with pharmaceuticals and Spotify. We craft our meals around our allergies and ideologies. We can choose a vehicle to express our hipness or hostility. We can move to a neighborhood that matches our social values, find a news outlet that mirrors our politics, and create a social network that “likes” everything we say or post. With each transaction and upgrade, each choice and click, life moves closer to us, and the world becomes our world.

And yet … the world we’re busily refashioning in our own image has some serious problems. Certainly, our march from one level of gratification to the next has imposed huge costs—most recently in a credit binge that nearly sank the global economy. But the issue here isn’t only one of overindulgence or a wayward consumer culture. Even as the economy slowly recovers, many people still feel out of balance and unsteady. It’s as if the quest for constant, seamless self-expression has become so deeply embedded that, according to social scientists like Robert Putnam, it is undermining the essential structures of everyday life. In everything from relationships to politics to business, the emerging norms and expectations of our self-centered culture are making it steadily harder to behave in thoughtful, civic, social ways. We struggle to make lasting commitments. We’re uncomfortable with people or ideas that don’t relate directly and immediately to us. Empathy weakens, and with it, our confidence in the idea, essential to a working democracy, that we have anything in common.

Our unease isn’t new, exactly. In the 1970s, social critics such as Daniel Bell, Christopher Lasch, and Tom Wolfe warned that our growing self-absorption was starving the idealism and aspirations of the postwar era. The “logic of individualism,” argued Lasch in his 1978 polemic, The Culture of Narcissism, had transformed everyday life into a brutal social competition for affirmation that was sapping our days of meaning and joy. Yet even these pessimists had no idea how self-centered mainstream culture would become. Nor could they have imagined the degree to which the selfish reflexes of the individual would become the template for an entire society. Under the escalating drive for quick, efficient “returns,” our whole socioeconomic system is adopting an almost childlike impulsiveness, wholly obsessed with short-term gain and narrow self-interest and increasingly oblivious to long-term consequences.

This new impulsiveness is most obvious in the business world, where an increasingly fanatical and self-justifying emphasis on quarterly earnings, share price, and executive bonuses has led to a pattern of self-serving, high-risk strategies. This “short-termism,” as economists call it, helped bring down financial markets in 2008—and it continues to destabilize the economy and the job market and undercut the future of the middle class. French economist Thomas Piketty blames rising inequality on capital’s natural tendency to replicate faster than the overall economy. But the more immediate culprit may be the institutionalization of an economic model so focused on quick, self-serving rewards, and so inured to long-term social costs, that it is destroying the economic foundations on which real prosperity depends.

This industrial-scale impulsiveness isn’t confined to the business world. The media, academia, nonprofits, and think tanks—the very institutions that once helped counter the individual pursuit of quick, self-serving rewards—are themselves obsessed with the same rewards. Most troubling, our political institutions, once capable of mobilizing resources and people to win wars, solve problems, and drive real progress, now settle for rapid wins while avoiding complex, perennial challenges, such as education reform, climate change, or preventing the next financial meltdown. The worst recession in three quarters of a century should have led us to rethink an economic model based on automatic upgrades and short-term gains. Instead, we’ve continued to focus our economic energies, entrepreneurial talents, and innovation on getting the biggest returns in the shortest time possible. Worse, we’ve done so even though fewer and fewer of us can afford to keep up with the Sisyphean pursuit of ever-faster gratification—a frustration expressed in the angry populism now paralyzing our politics. From top to bottom, we are becoming a society ruled by impulse, by the reflexive reach for quick rewards. We are becoming an Impulse Society.

To truly understand our predicament, we must realize that this crisis is a consequence not of our failures but of our extraordinary successes. Over the past century, and especially the past four decades, we have created a sophisticated, self-feeding socioeconomic system that is marvelously efficient at catering to our desires. Even as the economy has split between the haves and the have-nots, the miracles of cost-reducing business strategies and powerful personal technologies mean that all but the poorest among us have nonetheless gained an extraordinary measure of self-gratifying power. Indeed, in many respects, our economic system now indulges our desires with such speed and efficiency and personalized precision that it’s getting harder to know where we stop and the market begins. I don’t merely mean that clever marketers have gotten inside our heads or that our smartphones now feel like body parts—although both are true. I mean that our preferences, attitudes, and identities have become so intertwined with the offerings of the marketplace that we have internalized many of the market’s values and reflexes—particularly the market’s relentless drive for ever greater, ever faster, more efficient returns. Put another way, the marketplace and the self, our economy and our psychology, are fusing in ways we’ve never before experienced.

If we could step back a century, before the rise of the consumer economy, we would be struck not only by the lack of affluence and technology but also by the distance between people and the economy, by the separation of economic and emotional life. People back then weren’t any less wrapped up in economic activities. The difference lay in where most of that activity took place. A century ago, economic activity occurred primarily in the physical world of production. People made things: they farmed, crafted, cobbled, nailed, baked, brined, brewed. They created tangible goods and services whose value could be determined, often as not, by the measurable needs and requirements of their physical, external lives.

That relationship changed with the rise of the consumer economy. Sophisticated, large-scale industrial systems assumed the task of making many of the things we needed, and also began to focus on the things we wanted. As the consumer economy matured, an ever-larger share of economic activity came from discretionary consumption, driven not by need but by desire, and thus by the intangible criteria of people’s inner worlds: their aspirations and hopes, identities and secret cravings, anxieties and ennui. As these inner worlds came to play a larger role in the economy—and, in particular, as companies’ profits and workers’ wages came to depend increasingly on the gratification of ephemeral (but conveniently endless) appetites—the entire marketplace became more attuned to the mechanics of the self. Bit by bit, product by product, the marketplace drew closer to the self.

For most of the 20th century, this merger proceeded at a gradual pace. But starting in the 1970s, the convergence was kicked into overdrive by two powerful shocks. The first was the collapse of America’s postwar economic boom in the face of high oil prices, inflation, and rising foreign competition. As corporate profits fell, it was clear that many U.S. firms had grown too complacent and inefficient to prosper in a faster, more global economy. With company shares trading at historic lows, activist investors launched an economic coup. They bought struggling companies, broke them up, and sold the pieces, often for substantial profit. As takeover fever spread (encouraged by the parallel deregulatory fever then sweeping Washington), even healthy companies embraced defensive strategies to boost profits and share prices and keep investors happy. Companies laid off workers and began moving operations overseas. As important, they began paying their executives in company stock, thereby ensuring that those executives would do whatever was necessary to keep share prices high. Corporate strategy and investor desire were now effectively fused.

The “shareholder revolution,” as Wall Street dubbed it without irony, was a shock to the nation’s business psyche. For more than half a century, corporate America, heavily pressured by labor and an openly interventionist government, had hewed to a paternalistic capitalism, under which a large share of profits was reinvested in everything from worker training to community charities. But those times were over, for according to many conservative economists, it was partly such misplaced corporate generosity that had weakened U.S. companies in the first place. For these critics, the only way American companies could help society was, paradoxically, to jettison the older notion that business had any separate, social obligations other than making maximum profit. As Milton Friedman, an icon of conservative economics, argued in a seminal New York Times essay, “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.” And the best way for government to help this happen was to turn companies loose, by cutting taxes and regulations, and thereby allow the efficiencies of the marketplace to find the most direct route back to wealth....MUCH MORE
HT: we had a number of cites, the most recent was The Big Picture.

See also:
The Business Of Instant Gratification Appears to Have Promise