Venkat Rao

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The opening of a Venkat Rao post, in which he updates the country mouse-city mouse divide for our Digital Age:

“The fable of the town mouse and the country mouse is probably the oldest exploration of the tensions involved in urbanization, but it seems curiously dated today.  The tensions explored in the fable — the simple, rustic pleasures and securities of country life versus the varied, refined pleasures and fears of town life  – seem irrelevant today. In America at least, the ‘country’ such as it is, has turned into a geography occupied by industrial forces.  The countryside is a sparsely populated, mechanized food-and-resource cloud. A system of national parks, and a scattering of ‘charming’ small towns and villages pickled in nostalgia, are all that liven up a landscape otherwise swallowed up by automated modernity.

In America, larger provincial towns and cities that are just a little too large and unwieldy to be nostalgically pickled, but not large enough to be grown into metropolitan regions, appear to be mostly degenerating into meth-lab economies or ossifying into enclaves of a retreating rich.

So the entire canvas of the town mouse/country mouse fable is being gradually emptied out. If there is a divide today, it is between two new species of mice: metro mice and cloud mice.”

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Jerry Mouse leaves the sticks to visit Manhattan, 1945:

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The opening of “Realtechnik, Nausea and Technological Longing,” Venkat Rao’s recent blog post which neatly explains how new inventions, often simple ones, upend accepted orders:

“The story of barbed wire is one of the most instructive ones in the history of technology. The short version is this: barbed wire (developed between 1860 to 1873) helped close the American frontier, carved out the killing fields of World War I, and by spurring the development of the tank as a counter-weapon, created industrial-era land warfare. It also ended the age-old global conflict between pastoral nomads and settled agriculturalists (of animals, vegetables and minerals) and handed a decisive victory to the latter. Cowboys and Indians alike were on the wrong side of the barbed wire fence. Quite a record for a technology that had little deep science or engineering behind it.

Barbed wire is an example of a proximal-cause technology that eventually disturbed multiple human balances of powers, starting with the much-mythologized cowboys-versus-ranchers balance. When things finally stabilized, a new technological world order had emerged, organizing everything from butter to guns differently.  Barbed wire was not a disruptive innovation in the Clayton Christensen sense. It was something far bigger. Its introduction marked what Marshall McLuhan called a break boundary in technological evolution: a rapid, irreversible and wholesale undermining of a prevailing planet-wide technological equilibrium. So ironically, the ultimate boundary-maker of physical geography was a boundary breaker in technology history.”

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The opening of “Welcome to the Future Nauseous,” a really fun Venkat Rao essay that argues that the future is always arriving and that we are unwilling or unable to process and acknowledge it so we instead assign it to some distant point:

“Both science fiction and futurism seem to miss an important piece of how the future actually turns into the present. They fail to capture the way we don’t seem to notice when the future actually arrives.

Sure, we can all see the small clues all around us: cellphones, laptops, Facebook, Prius cars on the street. Yet, somehow, the future always seems like something that is going to happen rather than something that is happening; future perfect rather than present-continuous. Even the nearest of near-term science fiction seems to evolve at some fixed receding-horizon distance from the present.

There is an unexplained cognitive dissonance between changing-reality-as-experienced and change as imagined, and I don’t mean specifics of failed and successful predictions.

My new explanation is this: we live in a continuous state of manufactured normalcy. There are mechanisms that operate — a mix of natural, emergent and designed — that work to prevent us from realizing that the future is actually happening as we speak. To really understand the world and how it is evolving, you need to break through this manufactured normalcy field. Unfortunately, that leads, as we will see, to a kind of existential nausea.” (Thanks TETW.)

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I don’t think corporations have necessarily entered into a certain and permanent decline as information technology expert Venkat Rao does inA Brief History of the Corporation: 1600 to 2100,” but I really enjoyed his essay. I always like thinking about things building up or falling apart–stasis isn’t that interesting. The opening of Rao’s work:

“On 8 June, a Scottish banker named Alexander Fordyce shorted the collapsing Company’s shares in the London markets. But a momentary bounce-back in the stock ruined his plans, and he skipped town leaving £550,000 in debt. Much of this was owed to the Ayr Bank, which imploded. In less than three weeks, another 30 banks collapsed across Europe, bringing trade to a standstill. On July 15, the directors of the Company applied to the Bank of England for a £400,000 loan. Two weeks later, they wanted another £300,000. By August, the directors wanted a £1 million bailout.  The news began leaking out and seemingly contrite executives, running from angry shareholders, faced furious Parliament members. By January, the terms of a comprehensive bailout were worked out, and the British government inserted its czars into the Company’s management to ensure compliance with its terms.

If this sounds eerily familiar, it shouldn’t. The year was 1772, exactly 239 years ago today, the apogee of power for the corporation as a business construct. The company was the British East India company (EIC). The bubble that burst was the East India Bubble. Between the founding of the EIC in 1600 and the post-subprime world of 2011, the idea of the corporation was born, matured, over-extended, reined-in, refined, patched, updated, over-extended again, propped-up and finally widely declared to be obsolete. Between 2011 and 2100, it will decline — hopefully gracefully — into a well-behaved retiree on the economic scene.

In its 400+ year history, the corporation has achieved extraordinary things, cutting around-the-world travel time from years to less than a day, putting a computer on every desk, a toilet in every home (nearly) and a cellphone within reach of every human.  It even put a man on the Moon and kinda-sorta cured AIDS.

So it is a sort of grim privilege for the generations living today to watch the slow demise of such a spectacularly effective intellectual construct. The Age of Corporations is coming to an end. The traditional corporation won’t vanish, but it will cease to be the center of gravity of economic life in another generation or two. They will live on as religious institutions do today, as weakened ghosts of more vital institutions from centuries ago.

It is not yet time for the obituary (and that time may never come), but the sun is certainly setting on the Golden Age of corporations. It is time to review the memoirs of the corporation as an idea, and contemplate a post-corporate future framed by its gradual withdrawal from the center stage of the world’s economic affairs.” (Thanks TETW.)

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