the world\u2019s richest 1%<\/span><\/a> own about half of the world\u2019s new wealth and democracy is under attack, I\u2019ve wondered what a conversation between Thom and a reformed economic hit man would sound like. I envisioned us sitting across from each other in front of a blazing fire in the parlor of a Philadelphia inn. I assumed that he had been able to witness all that had transpired since his time until now. Here\u2019s what I came up with:<\/p>\n\u201cSo, Thom,\u201d I ask, \u201cis oligarchy the same as monarchy?\u201d<\/p>\n
\u201cWell now,\u201d he replies, drawing on a clay pipe and blowing the smoke out in tiny ringlets, \u201cthe end result of monarchy and oligarchy is the same; however, monarchy is hereditary while the modern form of oligarchy is based on wealth through dominating businesses that own communications, transportation, technology, and other key sectors of the economy. Although the Revolution lifted Americans out from under the tyranny of the ruling elites of England, today you seem determined to kneel before an oligarchy of your own brand of elites.\u201d<\/p>\n
\u201cWhy? What\u2019s happened since the American Revolution?\u201d<\/p>\n
He waves his pipe at me. \u201cFirst, it\u2019s important to remember that the East India Company was the driving force behind the power of the British Crown. The EIC monopoly dominated global trade, and its large private army supported the British military. Its ships were the sole providers of international communications, and it was heavily invested in emerging technologies that marked the start of the Industrial Revolution. Because I and the other Founding Fathers were aware of the dangers of concentrated power, after independence we passed laws that required corporations to prove they would serve the public interest before they could receive a license to operate. Perhaps even more important, they had to promise not to buy other companies \u2013 in other words, not to create monopolies. Their licenses lasted for a decade or some other specified period of time; to renew them they had to demonstrate that they had met these criteria. Those laws held until the late 1800s when John D. Rockefeller convinced politicians to end them because he wanted to monopolize the oil industry.\u201d<\/p>\n
\u201cIf I recall correctly, both Teddy and Franklin Roosevelt reined in many of the monopolies. So, how did we get to where we are now?\u201d<\/p>\n
\u201cThe fact is that Big Business kept growing \u2013 with a few exceptions, like those you named.\u201d He reaches into a box and tosses a piece of split wood into the fire. \u201cBy the 1970s,\u201d he says, wiping his hands together over the box, \u201cpoliticians had weakened environmental protections, unions, and other institutions that limited the power of corporations. Then along came a gaggle of government and Supreme Court decisions \u2013 including\u00a0Citizens United<\/em>\u00a0\u2013 that gave corporations the rights of individuals and the power to bribe politicians through campaign financing, while at the same time lowering or ending taxes on the rich.\u201d<\/p>\n\u201cI thought you opposed taxes.\u201d<\/p>\n
\u201cI oppose taxes without representation, taxes on the majority of the people imposed by an oligarchy. As I\u2019ve watched things unfold in recent years, I\u2019ve been shocked by the terrible injustice of current U.S. tax laws. The rich and their corporations are the biggest beneficiaries of highways, bridges, ports, airports, electric power grids, and other infrastructure that drives their industries.\u201d He points the stem of his pipe at me. \u201cThey should pay their fair share of the costs to build and maintain these, instead of squeezing taxes out of people who can\u2019t afford to pay and don\u2019t benefit nearly as much. You may recall that America\u2019s involvement in World War II was financed by a 90% tax rate on the wealthiest individuals. But all that got turned around. Today the middle and lower classes subsidize the rich. It\u2019s an insult to those who fought against the tyranny of the King of England in the 1700s and Hitler in the 1900s.\u201d He flicks an ash from his pipe. \u201cAnd those corporations and their wealthy owners are gaining more and more power through what you call AI.\u201d<\/p>\n
\u201cYou see AI as the problem?\u201d<\/p>\n
\u201cLike the adage says, \u2018an axe can be used to build a house or rip it apart.\u2019 AI is simply a tool. The outcome depends on who uses it and to what purpose. I\u2019ve always supported science. In\u00a0The Age of Reason<\/em>, I described the power of science and rational inquiry to unlock human potential. I\u2019d like to think that AI is a technology capable of solving complex problems, enhancing productivity, democratizing access to information, and advancing human progress.\u201d He brushes a stray ash from his jacket. \u201cHowever, recently AI has come under the thumb of a handful of rich people. That\u2019s oligarchy.\u201d<\/p>\n\u201cAre you talking about Elon Musk?\u201d<\/p>\n
\u201cHe conjures the image of a monarch, doesn\u2019t he? But there are fiefdoms as well. Most AI is managed by a small number of corporations. Such centralization is likely to lead to increased inequality, exploitation of people and resources, and the erosion of personal freedoms. Just like what happened here in America under British rule.\u201d He peers deep into my eyes. \u201cAre the hundreds of thousands of Americans who died defending democracy in World Wars I and II and so many other conflicts to have died in vain?\u201d<\/p>\n
I could think of nothing to say.<\/p>\n
He turns away for a long moment. When his eyes meet mine, they are moist. \u201cThat would be a tragedy, an unforgivable crime.\u201d<\/p>\n
Feeling the need to move on, I ask him to talk more about AI and oligarchy.<\/p>\n
\u201cOligarchy,\u201d he said, \u201cis based on dominating communications, transportation, technology, and other key businesses. Think of the East India Company. AI manages all these and is controlled by a few billionaires.\u201d He shakes his head, like a man trying to forget a nightmare. \u201cThat was a word we never even heard of in my day.\u201d<\/p>\n
\u201cBillionaire.\u201d<\/p>\n
\u201cYes.\u201d He rocks back in his chair. \u201cWhat a concept.\u201d<\/p>\n
\u201cMusk recently surpassed the $400 billion mark. Why would anyone want all that money? What can he possibly do with it?\u201d<\/p>\n
\u201cRule the world.\u201d Thom throws his hands into the air, nearly tipping over in his chair. Once he steadies himself, he gives me a sheepish grin. \u201cSorry, I can\u2019t help getting emotional over these issues.\u201d<\/p>\n
\u201cIt was your life.\u201d<\/p>\n
\u201cIn any case,\u201d he continues, \u201cby gaining unfettered control of key industries, Musk might do just that. Rule the world.\u201d<\/p>\n
\u201cA global monarch. A scary thought.\u201d I turn to the notes I\u2019d prepared in anticipation of this conversation. \u201cMusk already owns or controls X Corp. (formerly Twitter), a company that dominates a lot of global communications, Neuralink, one that is developing implantable brain\u2013machine interfaces to facilitate interactions between humans and computers, xAI, a corporation that focuses on advanced AI research and development, SpaceX designs, manufactures and launches advanced rockets and spacecraft, including spy satellites that are watching the world, its subsidiary Starlink already dominates communications in more than one hundred countries, Tesla, a company that leads in electric vehicle development, energy storage, and renewable energy, and The Boring Company, an engineering firm that develops the latest technologies for tunnel construction and other transportation-oriented services.\u201d<\/p>\n
\u201cCommunications, transportation, technology, and science. There you have it. And let\u2019s not forget his political clout, especially over the US\u2019s 47th president.\u201d<\/p>\n
\u201cReminiscent of the East India Company.\u201d<\/p>\n
He stares at his pipe, apparently lost in thought.<\/p>\n
\u201cPatriotic Americans,\u201d I continue, \u201cwent to war to get out from under that monarchy. What can we do now?\u201d<\/p>\n
\u201cDespite the arguments made for arming citizens, that kind of insurrection would be futile against the modern military-industrial-complex.\u201d He taps the bowl of his pipe against the arm of his chair and watches the ashes spill to the floor. \u201cIn my day, we could communicate by horseback just like the English, but today everyone depends on satellites controlled by . . .\u201d<\/p>\n
\u201cMusk.\u201d<\/p>\n
\u201cAh hah.\u201d He smiles. \u201cThink about it. In the 1700s, we faced single-shot muskets with single-shot muskets. Today it\u2019s rifles and AR-15s against very sophisticated drones, missiles, and satellites. No, no. Don\u2019t even think of it. Your rebellion has to be more creative than that. You must win through the vehicles provided by the democracy we created after we won the Revolution, things like democratic oversight, transparency, ethical safeguards, and a commitment to ensuring that AI, satellites, and other technologies serve the common good. Science and technology must be applied to medicine, education, governance, and other areas where they promote fairness and efficiency. Remember the axe analogy; AI is a tool. The true measure of progress lies not in technological innovation, but in using it to uphold the principles of liberty and humanity.\u201d<\/p>\n
\u201cSounds good, but how do we put it into practice?\u201d<\/p>\n
\u201cThe key is to convince everyone \u2013 including the oligarchs \u2013 that their prosperity depends on having a healthy, prosperous, and happy middle class. History shows that monarchies never last \u2013 except those that become ceremonial, like in England. A major factor contributing to the decline of monarchies is that as the rich grow richer and the poor grow poorer, there are fewer and fewer consumers. The economy collapses. So, you can see that one of the solutions is to help the rich understand that their best interests are served by a population that is willing and able to support continued growth. This means investing in education, health care, retirement funds and other social services for everyone, higher wages, new approaches to corporate ownership, such as co-ops, sharing profits with workers, and locally owned public companies in the energy, water and sewer, and transportation sectors \u2013 and higher taxes on the wealthy.\u201d<\/p>\n
\u201cThat\u2019s pretty radical.\u201d<\/p>\n
\u201cWell, it certainly calls for the creativity to envision new approaches to economics, lifestyles, and governance and the courage to implement laws that will make it happen.\u201d<\/p>\n
\u201cYou mentioned growth, but can we keep on growing, can the environment, the earth, handle unlimited growth?\u201d<\/p>\n
\u201cAgain, it\u2019s about a new approach to economics.\u201d<\/p>\n
I take a moment to ponder his words. \u201cActually, I\u2019ve been writing about the need to create a Life Economy that pays people to clean up pollution, regenerate devastated environments, recycle, feed starving and malnourished people, and develop new technologies that don\u2019t ravage the earth. And AI can help make that happen.\u201d<\/p>\n
\u201cThere you go. That\u2019s the kind of growth the world needs today.\u201d<\/p>\n
\u201cIt sometimes seems as though probability is stacked against us.\u201d<\/p>\n
\u201cHistory is made by those who defy probability. After all, who would have guessed that a ragtag army of farmers and fishermen could defeat the world\u2019s greatest military?\u201d He gives me a big Cheshire Cat grin. \u201cOK, I admit it: I did. That\u2019s when I wrote \u2018these are the times that try men\u2019s souls. . .\u2019\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"
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