Posts tagged ‘Tim Wu’

Be Especially Careful When Media and Pundits "Teach" You the History of Nazi Germany

I once was taking a course on the history of the Roman Empire (Garrett Fagan via the Teaching Company) in which the lecturer at the end of the course engaged the ever-popular topic of "why did the Roman Empire fall?**"  He made an interesting observation that could equally well be applied to many of the great questions of history -- that many explanations said more about the time the explanations were made in than they necessarily said about the historical period being studied.  Edward Gibbon was part of an 18th century anti-religious enlightenment movement and thus concluded the Roman Empire was brought down by Christianity, which made the Romans too docile to fight back against the barbarians.  Similarly Victorians found the Romans fell due to moral dissipation, Marxists discovered it was due to class warfare, and modern academics steeped in environmental sustainability have found that the Empire collapsed due to various man-made environmental disasters (e.g. lead drinking water pipes).

I have found that a lot of what is said about Nazi Germany follows much the same rule.  Because Nazi Germany represents for most the single greatest national embodiment of evil in history, people are always looking to associate what they don't like with Nazi German and Hitler.  I am reminded of this from Tyler Cowen's article this morning about Tim Wu attempting to draw a straight line from monopolies to Hitler.  In an era where many of our public intellectuals consider Trump the reincarnation of Hitler, it is fashionable to try to find ways to connect the dots.  It is a bit odd in this case, since the monopolies that seem to have the most political power in this country (Google, Facebook) are actually arrayed pretty strongly against Trump.  Cowen does not mention it, but if one is worried about economic concentration that is closely linked to government and has long-term stability, one should look at modern France and Germany long before they look at the US.

Cowen links to a great article by Thomas Childers exploding common myths about Nazi Germany that folks like Tim Wu are working from.  I have taken all of Childers' courses at the Teaching Company, including his 12 lecture course focused narrowly on the rise of Nazi Germany and his longer course on the history of WWII, and I recommend him highly.  I have taken 75+ courses at the Teaching company and he is one of my 3-4 favorite lecturers.

If you want to avoid the inter-mediation of historians, I have read two primary source books that really tell a FAR different story about the Nazi's than is commonly understood.  The first is Albert Speer's Inside the Third Reich.  While Speer seems to spare himself a lot, he spares no one else in the Nazi hierarchy and tells an interesting insider's story about a Nazi government that was astonishingly dysfunctional and inefficient.  The other is Gunter Reimann's The Vampire Economy about the insane regulation in the Nazi economy that makes even California look libertarian.  It was written before the war and the Holocaust, so it predates our current biases to project whatever economic system we don't like onto the Nazis.

The Vampire Economy is a study of the actual workings of business under National Socialism. Written in 1939, Günter Reimann's work discusses the effects of heavy regulation, inflation, price controls, trade interference, national economic planning, and attacks on private property, and their impact on human rights and economic development.

I would add that an entire book could be written on the seemingly simple question of "were the Nazi's socialist?"  Because the civics textbooks we had as kids included that stupid "heads I win, tails you lose" political spectrum from communism on the Left to Nazis on the Right, many folks think of the Nazis as "conservative."  And while they received some conservative support for their nationalism and militarism, the Nazis were not conservative -- they were revolutionaries and thought of themselves that way.  They were absolutely against the status quo.    The problem was figuring out what they were revolutionaries FOR.  One Nazi once answered that question as "we're for the opposite."  Which made sense to Germans who had lived through economic hell, but it is not very specific.

There were many socialists in the upper ranks of the Nazis.  It can be said that Hitler seemed less enthusiastic about socialism but in general Hitler was surprisingly indolent about being more specific or making decisions on any policy details.  He preferred that his folks just fight it out (again, see Speer's book).  Folks often assume Hitler hated socialism because he was outwardly so anti-communist.  But I get the impression that he hated socialists and communists, but maybe did not hate their policies -- a bit like a Republican voter might vehemently hate Obamacare but in a poll support most of its individual prescriptions.   To illustrate this, he did not rant against communism but something called judeo-bolshevism, which sounds more like a made up enemy than a description of a set of specific policies.

 

** Including arguments that it did not fall -- eg that it continued for another 1000 years as the Byzantine Empire (who called themselves Romans right to the end) or that it continued through Visigothic and Ostrogothic culture that looked a lot like Roman culture.

What if the Interstate Highway System Became Obsolete Every Five Years?

Tim Wu believes he has diagnosed the problems of public Wi-fi.  Public wi-ife is a great idea, he says, but the problem is that municipalities have not recognized they need to spend real money on it.

It's hard to dislike the idea of free municipal wireless Internet
access. Imagine your town as an oversized Internet cafe, with invisible
packets floating everywhere as free as the air we breathe....

Not quite. The basic idea of offering Internet access as a public
service is sound. The problem is that cities haven't thought of the
Internet as a form of public infrastructure that"”like subway lines,
sewers, or roads"”must be paid for.

It could be, however, there are a few tiny differences between public wi-fi and public roads:

  • Any wi-fi system you install today will be dated in three years and obsolete in five. In fact, given the long delay in public projects between design (and presumably technology selection) and deployment, the system may well be obsolete on the day it gets turned on.  Would we have made the same public highway investment we did if roads went obsolete every five years?
  • Roads don't tend to have private competitors.  And when roads are constructed by private entities, say in a new housing development, you can absolutely bet that the municipality doesn't feel the need to invest in "public" roads to run beside them.

Wu admits that both cable and DSL have a much lower cost to serve urban customers, which is why private efforts for urban wi-fi tend to fail.  Free municipal wi-fi will therefore be more expensive to build and operate than if you just provided direct public subsidy payments to poorer people to use existing private solutions.  Further, a huge part of the investment will go towards giving away free access to people who already have internet service from a private supplier and are willing and able to pay for it.

Note that Wu never actually names a goal for municipal wi-fi or a
problem it is solving, just this beautiful vision of a city-wide
internet cafe (are we going to provide municipal coffee too?)  This fascination with municipal wi-fi reminds me of nothing so much as a similar fascination with light rail.  You can see it in his opening comment about the "oversized internet cafe."  This is an aesthetic, not an economic, vision.  Our light rail project here in Phoenix is the same way.  It will haul passengers more expensively and at a far higher investment and with less flexibility than our bus and road system.   With the investment we are putting into the system we could have instead bought cars for every rider and had money left over.  It makes zero sense for the density and commuting patterns of this city, but still we are doing it, because there is a subset of people who love light rail as some sort of pleasing aesthetic vision.  Name any goal either one is trying to solve (e.g. access to transportation or internet) with public investments in light rail or municipal wi-fi and those goals could be solved more cheaply some other way. 

Postscript:  A while back, I wrote about another danger of municipal wi-fi:  That bureaucrats in charge of the system will try to protect their jobs by blocking new competitors:

[the municipal wi-fi authority] can use its government authority to block new entrants. ...  Take another large government network business: The Post
Office.  The USPS tried like hell to get the government to block Fedex,
and almost succeeded.  The government continues to block competition to
the USPS for first class local mail.  Heck, the USPS has tried at
various times to argue that it should have authority over email and the
Internet.  The government blocks new cigarette manufacturers to protect
the settlement money it gets from the old-line tobacco companies and it
blocks usage of Love Field in Dallas to protect D/FW airport.
Bureaucracies never, ever let themselves die, and there is no way a
municipal broadband business will ever let itself be killed by a
competitor - that competitor will be blocked, even if that likely means
that local broadband consumers have to stick with higher costs and
outdated technologies.

You see something very similar with municipal water systems trying to get the government to limit the growth of bottled water.  It happens all the time.  Already, examples exist of municipalities trying to shut down wi-fi competition from private companies.

Boston's Logan International Airport is attempting to pull the plug on
Continental Airlines' free Wi-Fi node, which competes with the airport's
$7.95-a-day pay service.

In an escalating series of threatening letters sent over the last few weeks,
airport officials have pledged to "take all necessary steps to have the (Wi-Fi)
antenna removed" from Continental's frequent flyer lounge....