Privacy Is Trust, Trust Is Freedom

Remember Google Glasses? Turns out they are still a thing.

Granted, they’re for manufacturing and specialty industrial purposes now. Google discovered that people weren’t quite ready for glasses that recorded everything.

I was talking with someone today about how useful it might be to have Google Glass in construction/maintenance/contracting work. He was remarking how it would be cool to be able to see what employees were doing.

I get it. There’s a strong incentive to minimize employee waste – because many employees really do waste time. And I have no doubt that some companies will try to implement greater levels of employee surveillance as technology increases.

But here’s the thing: only responsible people can create massive value for a business in the long term. Only people who are free will choose to be responsible. And only people who are trusted believe that they are free.

People who are watched – and know it? They’ll feel so much unease about avoiding the perception of unproductiveness that they’ll worry their way into it. Surveillance of any kind is an enemy to long-term productivity – at least of the kind worth keeping. Even a high-knowledge job with exorbitant pay would feel like slavery (and produce about the same poor results) if it was surveilled.

Privacy gives even employees some small piece of space or time to call their own. And ownership will be the better model, even if it isn’t perfect. Turn the cameras off.

Originally published at JamesWalpole.com.

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Elon Musk Wants Talent, Not Diplomas

Elon Musk says skills matter more than diplomas. The founder and CEO of corporate innovation giants Tesla and SpaceX tweeted on February 2 that he is hiring for his artificial intelligence group at Tesla and wants to recruit the most talented people he can find. Talent, to Musk, means “deep understanding” of artificial intelligence and the ability to >pass a “hardcore coding test,” but it doesn’t necessarily include degrees and diplomas.

“A PhD is definitely not required,” Musk wrote. “I don’t care if you even graduated high school.”

Musk went on to say on Sunday that “educational background is irrelevant”:

Musk Didn’t Like School

It’s not surprising that Musk would emphasize ability and knowledge over institutional credentials. Other Silicon Valley technology companies, like Google and Apple, no longer require employees to have a college degree. But Musk also had a personal dissatisfaction with his schooling, saying in a 2015 interview: “I hated going to school when I was a kid. It was torture.”

A billionaire inventor, Musk decided to build a better educational program for his own children and opened his experimental school, Ad Astra, on SpaceX’s Los Angeles campus. He was dissatisfied with the elite private schools they were attending and thought education, even at purportedly “good” schools, could be much improved.

In an interview about Ad Astra, Musk said: “The regular schools weren’t doing the things that I thought should be done. So I thought, well, let’s see what we can do.”

Ad Astra, which means “to the stars,” offers a hands-on, passion-driven learning environment that defies the coercion inherent in most conventional schooling, public or private. It has no grade levels, an emergent, technology-focused curriculum, and no mandatory classes. As Fortune reports, “There are no grades given to students at the school and if the children don’t like a particular class they’re taking, they can simply opt out.”

Schooling as Signaling

Despite a culture and economy now focused around technology and innovation, most conventional schooling is widely incapable of helping young people develop the knowledge and skills they need to do essential 21st-century work. Stuck in a 19th-century curriculum and instruction model, today’s schools are anything but modern.

The trouble is that schooling is more about signaling than learning, so the catalysts to change its basic structure and approach are lacking. It might not matter in the real world that you mastered middle school French, but moving successfully along the schooling conveyor belt offers a signal to potential employers. Economist Bryan Caplan writes about this signaling effect in his book The Case Against Education. He also explains how the quest for more signals, regardless of how hollow they may be, is leading to “credential inflation,” or the pursuit of more diplomas for occupations that really don’t require them.

Writing in The Atlantic, Caplan says:

From kindergarten on, students spend thousands of hours studying subjects irrelevant to the modern labor market. Why do English classes focus on literature and poetry instead of business and technical writing? Why do advanced-math classes bother with proofs almost no student can follow? When will the typical student use history? Trigonometry? Art? Music? Physics? Latin? The class clown who snarks “What does this have to do with real life?” is onto something.

More Signal Options Beyond Schooling

Fortunately, there are now many other ways beyond conventional schooling to gain skills and knowledge and signal your value to potential employers like Musk. More than 400 “coding bootcamps” are reported to exist around the world, helping people to master in-demand programming and software development skills. The online coding school, Lambda School, which has raised nearly $50 million in venture capital funding since its launch in 2017, has a fascinating business model focused on income share agreements. It is free to attend Lambda, but the company takes a percentage of its graduates’ earnings once they land a high-tech job. If the student doesn’t land a job, she doesn’t pay. Perhaps not surprisingly, it is estimated that Lambda is receiving over 1,000 applications a week from interested students. Other alternatives to college are sprouting, and apprenticeship programs like Praxis continue to be sought-after.

Entrepreneurs like Musk recognize what it takes to succeed in the innovation era, and it has little to do with conventional schooling. Discovering passions, pursuing personal goals, and developing essential skills to build on those passions and achieve those goals has never been easier than it is today with abundant resources and tools literally at our fingertips.

Musk and Tesla may be known for their visionary work in creating autonomous vehicles, but it’s autonomous humans with the agency, creativity, and opportunity to achieve their full potential that are the real breakthroughs.

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Real Democracy Requires a Separation of Money and State

As we enter a new year, the running battle between the world’s governments and the world-changing technology known as “cryptocurrency” continues. As 2019 drew to an end, Swiss president Ueli Maurer asserted that Facebook’s digital currency (not a real cryptocurrency), Libra, has failed “because central banks will not accept the basket of currencies underpinning it.”

Politicians want to regulate — or, if possible, kill — cryptocurrency.

Large firms like Facebook want to capture cryptocurrency’s potential without rocking those governments’ boats.

Cryptocurrency advocates want democracy. Yes, democracy.

Of all the important words in the English language, “democracy” (from the Greek demokratia, “rule by the people”) may be the most fuzzily defined. Some people define it in terms of raw majoritarianism, others as one of various forms of representative government.

I define “democracy” in words used by Thomas Jefferson in the Declaration of Independence. “Democracy,” to my mind, is government that enjoys the “consent of the governed.”

Not just the consent of 50% plus one of the governed, and certainly not just the consent of a few big players who can afford lobbyists and bribes to get their way, but the consent of ALL the governed.

One major hinge on which the door of democracy as I define it swings is control of money — who may create it, how it may be used, and what portion of it must be handed over to government for “public” uses those paying the bills may or may not approve of.

Involuntary taxation is the opposite of the consent of the governed. It’s the opposite of democracy. We can have financial regulators and central banks, or we can have democracy. We can’t have both.

Cryptocurrency threatens the reign of government over money. It bodes a future in which, as an old antiwar slogan puts it, the Air Force will have to hold a bake sale if it wants to buy a new bomber.

That’s the future I want. It’s also the future that politicians, regulators and central bankers fear.

They don’t want to have to ASK you to fund their schemes.  They’re not interested in requesting your consent. They prefer to simply demand your compliance.

The ability to anonymously handle our finances without reporting them to government or involuntarily giving it a cut is a revolutionary development. And it’s here, now. More and more of us are using cryptocurrency, and the politicians are panicking.

While cryptocurrency won’t entirely kill involuntary taxation — land can’t be easily hidden, so we can expect property taxes to persist — it will make the global economy harder for governments to manipulate and milk.

The inevitable future of cryptocurrency, absent a new Dark Age in which we all go back to plowing with mules and reading rotting old books by candlelight, is a future without income and sales taxes (to name two of the biggest and most pernicious).

The ruling class will do everything it can to prevent the coming separation of money and state.

They’ll fail. And democracy will flourish. See you at the bake sale.

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Meet Virgil Griffith: America’s Newest Political Prisoner

On November 29, FBI agents arrested hacker and cryptocurrency developer Virgil Griffith. His alleged crime: Talking.

Yes, really.

The FBI alleges that Griffith “participated in discussions regarding using cryptocurrency technologies to evade sanctions and launder money.”

Griffith, a US citizen who lives in Singapore, gave a talk at conference on blockchain technology in April. Because that conference took place in North Korea, the US government deems him guilty of violating US sanctions on Kim Jong-un’s regime.

But last time I checked, the First Amendment protected Virgil Griffith’s right to speak, without exceptions regarding where or to whom.

And last time I checked,  the US Department of Justice’s jurisdiction didn’t encompass Singapore (where Griffith lives), China (which Griffith traveled through), or North Korea (where Griffith spoke). The charges against him include traveling, while outside US jurisdiction, to places the US government doesn’t like.

In what universe is it the US government’s business where an individual travels to or what that individual says while he’s there, inside or outside the US itself? Certainly not any kind of universe in which America remains a free society.

What kind of state arrests people for going where they please and saying what they choose without that state’s permission? A police state.

Griffith’s arrest is wholly illegal under the US Constitution and wholly unacceptable to anyone who holds freedom as a cardinal value.

Virgil Griffith is just the latest political prisoner of the US government to come to public notice.

The US government imprisoned US Army intelligence analyst Chelsea Manning, journalist Barrett Brown, and others for telling us the truth about that government’s conduct, and would love to do the same to Julian Assange,  Edward Snowden, and others for the same reason.

The US government imprisoned Ross Ulbricht for running a web site on which people bought and sold things that government didn’t want them to buy and sell.

The US government has held, and continues to hold, too many political prisoners to name in a single column.

The US government increasingly attempts to dictate where all of us may go, and what we may say while there, on pain of arrest and imprisonment.

That’s not right. That’s not freedom. That’s not America.

Virgil Griffith and the others I mention aren’t the criminals — their persecutors are. At some point, we must bring them to justice if human freedom is to survive. Until then, resist much, obey little.

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Outschool.com Takes Education Out Of Schooling

Supporting education beyond schooling is a key feature of many educational technology platforms. While some may be integrated into conventional classrooms, complementing a traditional curriculum, emerging technology is increasingly helping to separate education from schooling and catalyze new models of K-12 learning. As its name implies, Outschool.com is focused on out-of-school learning that helps families and organizations to access high-quality content in an array of subjects. Its flexibility and variety engage learners around the world and facilitate the expansion of new learning communities outside of standard schooling.

Instructors choose to share their knowledge and passions, and they are publicly rated by participants, offering transparency and accountability.

Founded by Amir Nathoo in 2015, Outschool now offers over 10,000 live, video-enabled classes for young people ages three to 18. Connecting online in small groups with dynamic instructors, learners select content ranging from typical academic subjects to more adventurous classes such as pet trick training, forensic science, engineering with Minecraft, and wilderness survival skills.

Prices vary by topic and course length, but the introductory wilderness survival class, for example, costs $45 for a total of three, 45-minute classes. Instructors choose to join Outschool to share their knowledge and passions, and they are publicly rated by participants, offering transparency and accountability. They undergo background checks and are then free to offer whatever courses interest them while catering to learner, and parent, demand. Teachers set their own prices and Outschool takes 30 percent of the enrollment fee.

Supporting Passion-Driven Learning

Trained as an engineer, Nathoo’s inspiration for launching Outschool was tied to his own childhood experiences.

My parents were both teachers and although I had an amazing standard education in the U.K., my most impactful learning happened outside of school,

he says. In the early 1980s, Nathoo’s parents bought him a computer, a BBC Micro, and he spent hours tinkering with it. “They gave me unlimited screen time,” recalls Nathoo. “I loved playing computer games and I became inspired to try creating games myself.”

Spotting their son’s burgeoning passion for computers, Nathoo’s parents found a retired economics professor who liked computer science and offered to mentor Nathoo. “That learning experience based on my interests has turned into a career in technology,” he says.

When I think of the skills and learning that I use today, so much of that happens outside of school. Being a technologist and an entrepreneur, it’s always been my idea to apply technology to enable more of the out-of-school learning that has been so valuable to me.

Prior to starting San Francisco-based Outschool, Nathoo worked as a project lead for Square, the payment processing company. He was intrigued by how technology-driven marketplace models such as Airbnb, Lyft, and Etsy revolutionized entire industries, and he was dissatisfied that the same level of transformation was not occurring in education.

As Nathoo began to create the Outschool digital platform, he was intentionally looking for models outside of the existing education system. “The real lightbulb moment came when I learned more about homeschooling,” says Nathoo. He was introduced to this type of education from a San Francisco friend who was homeschooling her children. “There are a bunch of presumptions about homeschooling that I really didn’t see among the homeschoolers in the Bay Area,” says Nathoo.

I found that there was this group of people customizing and curating their kids’ learning and giving them a lot more freedom than they would typically have. And they were doing it socially, hiring teachers, forming groups and creating a much more dynamic style of learner-directed education. To me, this looked like the future.

Nathoo realized that this was the learner-directed education model outside of schooling that he was seeking to support and scale. The path forward became clear: create a product that served this existing audience, build a business around it and then use this business to make the ideas of learner-directed education mainstream.

I had the belief that once other parents had seen the power of this model, at first after school and on weekends, we could cause a big change in how people saw kids learning,

he says.

Global Reach, Local Impact

With a product plan, bold vision and seed capital from Y Combinator and others in 2016, Nathoo and his team built the Outschool platform and launched the first Outschool class in 2017. Since then, more than 60,000 learners worldwide have attended Outschool classes.

During his initial days incubating the Outschool idea within California homeschooling networks, Nathoo contacted Julie Schiffman who had been actively homeschooling her children for years and was very involved in the local homeschooling community. A former public school special education teacher, Schiffman left teaching because she was distraught by what she saw as a widespread practice of over-labeling and over-medicating many children with disabilities while offering limited support to children with serious emotional and behavioral disorders.

Nathoo’s vision is to make interest-based, learner-directed education a mainstream option for many more young people.

“It was insanely depressing and I had to leave the profession altogether in order to preserve my health,” says Schiffman. She began wondering how she could help to fix the problems of conventional schooling. At first, she believed that change could come from within the system, but after she started researching alternative education models, like homeschooling, she became convinced that lasting change would need to come from outside the system, by embracing and helping to expand new and better models of education.

When Nathoo called Schiffman on the phone one day in 2015 to tell her about his Outschool idea, she was spellbound. “I had to literally sit down and stable myself,” Schiffman recalls. “I fully recognized from the moment he told me what he was working on that this was the education revolution.” Schiffman’s children have used Outschool for some of their interest-based learning, including classes on building their own YouTube channels and video-editing. The relevant content and global reach mean that learners frequently take classes with peers and instructors all over the world, often retaining connections long after a class ends.

Outschool continues to expand, raising $8.5 million in Series A funding from Union Square Ventures and Reach Capital earlier this year. Nathoo expects Outschool’s digital platform to grow quickly, but he is also focused on helping to support co-learning communities, micro-schools, and other experimental education models.

Our goal is to provide a service to these types of in-person learning centers so that the kids there can get access to teachers and content to pursue their interests and to fulfill their learning goals.

Schiffman is in the process of opening one of these in-person community centers in Marin County, California, where she plans to rent out space to various instructors and vendors offering a host of different classes. She has been getting advice from Nathoo on how to make her community learning model, known as Home Base, scalable and replicable, with the aim of growing to multiple locations within the next two years. Nathoo explains how Outschool can help:

Local learning centers can focus on providing a great, local, social environment while not worrying about content, and kids can access far more teachers and content globally through this combination of online and in-person learning.

Ultimately, Nathoo’s vision is to make interest-based, learner-directed education a mainstream option for many more young people. He wants more children to have the opportunity he did to pursue passions outside of a conventional classroom that can ultimately lead to fulfilling lives and livelihoods. Now as a parent himself, Nathoo can relate even more personally to what parents want for their children’s education and well-being. He says:

When parents realize that letting kids pursue their interests is a way to get them excited about learning and is a better way to help their kids thrive in the world, that’s really powerful to see.

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Open Borders Are a Trillion-Dollar Idea

Tearing down all barriers to migration isn’t crazy—it’s an opportunity for a global boom.

The world’s nations, especially the world’s richest nations, are missing an enormous chance to do well while doing good. The name of this massive missed opportunity—and the name of my book on the topic—is “open borders.”

Critics of immigration often hyperbolically accuse their opponents of favoring open borders—a world where all nationalities are free to live and work in any nation they like. For most, that’s an unfair label: They want more visas for high-skilled workers, family reunification, or refugees—not the end of immigration restrictions. In my case, however, this accusation is no overstatement. I think that free trade in labor is a massive missed opportunity. Open borders are not only just but the most promising shortcut to global prosperity.

To see the massive missed opportunity of which I speak, consider the migration of a low-skilled Haitian from Port-au-Prince to Miami. In Haiti, he would earn about $1,000 per year. In Miami, he could easily earn $25,000 per year. How is such upward mobility possible? Simply put: Human beings are much more productive in Florida than in Haiti—thanks to better government policies, better management, better technology, and much more. The main reason Haitians suffer in poverty is not because they are from Haiti but because they are in Haiti. If you were stuck in Haiti, you, too, would probably be destitute.

But borders aren’t just a missed opportunity for those stuck on the wrong side on them. If the walls come down, almost everyone benefits because immigrants sell the new wealth they create—and the inhabitants of their new country are their top customers. As long as Haitians remain in Haiti, they produce next to nothing—and therefore do next to nothing to enrich the rest of the world. When they move, their productivity skyrockets—and so does their contribution to their new customers. When you see a Haitian restaurant in Miami, you shouldn’t picture the relocation of a restaurant from Port-au-Prince; you should picture the creation of a restaurant that otherwise would never have existed—not even in Haiti itself.

The central function of existing immigration laws is to prevent this wealth creation from happening—to trap human talent in low-productivity countries. Out of all the destructive economic policies known to man, nothing on Earth is worse. I’m not joking. Standard estimates say open borders would ultimately double humanity’s wealth production. How is this possible? Because immigration sharply increases workers’ productivity—and the world contains many hundreds of millions of would-be immigrants. Multiply a massive gain per person by a massive number of people and you end up with what the economist Michael Clemens calls “trillion-dollar bills on the sidewalk.”

Or do we? An old saying warns, “If it seems too good to be true, it probably is.” Far lower levels of immigration already inspire vocal complaints. After presenting my basic case in Open Borders, I strive to evaluate all the common (and many not-so-common) objections to immigration. My bottom line: While open borders are undeniably unpopular, they deserve to be popular. Like every social change, immigration has downsides. Yet when we patiently quantify the downsides, the trillions of dollars of gains of open borders dwarf any credible estimate of the harms.

The simplest objection to open borders is logistical: Even the largest countries cannot absorb hundreds of millions of immigrants overnight. True enough, but no reasonable person expects hundreds of millions to come overnight, either. Instead, immigration usually begins slowly and then snowballs. Puerto Ricans have been legally allowed to move to the United States since 1904, but it took almost a century before Puerto Ricans in the United States came to outnumber the population left on the island. Wasn’t the European migration crisis an unmanageable flood of humanity? Hardly. Despite media outcry, total arrivals from 2014 to 2018 came to less than 1 percent of the population of the European Union. Many European countries—most notably West Germany during the Cold War—have swiftly absorbed much larger inflows in the past.

The standard explanation for these asymmetric public reactions is that resistance to immigration is primarily cultural and political, not economic or logistical. While West Germans welcomed millions of East German migrants, a much lower dose of Middle Eastern and African migration has made the whole EU shiver. Aren’t economists who dwell on economic gains just missing the point?

Yes and no. As a matter of political psychology, cultural and political arguments against immigration are indeed persuasive and influential. That does not show, however, that these arguments are correct or decisive. Does immigration really have the negative cultural and political effects critics decry? Even if it did, are there cheaper and more humane remedies than immigration restriction? In any case, what is a prudent price tag to put on these cultural and political effects?

Let’s start with readily measurable cultural and political effects. In the United States, the most common cultural complaint is probably that—in contrast to the days of Ellis Island—today’s immigrants fail to learn English. The real story, though, is that few first-generation immigrants have ever become fluent in adulthood; it’s just too hard. German and Dutch immigrants in the 19th century maintained their stubborn accents and linguistic isolation all their lives; New York’s Yiddish newspapers were a fixture for decades. For their sons and daughters, however, acquiring fluency is child’s play—even for groups like Asians and Hispanics that are often accused of not learning English.

Native-born citizens also frequently worry that immigrants, supposedly lacking Western culture’s deep respect for law and order, will be criminally inclined. At least in the United States, however, this is the reverse of the truth. The incarceration rate of the foreign-born is about a third less than that of the native-born.

What about the greatest crime of all—terrorism? In the United States, non-citizens have indeed committed 88 percent of all terrorist murders. When you think statistically, however, this is 88 percent of a tiny sum. In an average year from 1975 to 2017, terrorists murdered fewer than a hundred people on U.S. soil per year. Less than 1 percent of all deaths are murders, and less than 1 percent of all murders are terrorism-related. Worrying about terrorism really is comparable to worrying about lightning strikes. After you take a few common-sense precautions—do not draw a sword during a thunderstorm—you should just focus on living your life.

The most cogent objection to immigration, though, is that productivity depends on politics—and politics depend on immigration. Native-born citizens of developed countries have a long track record of voting for the policies that made their industries thrive and their countries rich. Who knows how vast numbers of new immigrants would vote? Indeed, shouldn’t we expect people from dysfunctional polities to bring dysfunctional politics with them?

These are fine questions, but the answers are not alarming. At least in the United States, the main political division between the native- and foreign-born is engagement. Even immigrants legally able to vote are markedly less likely than native-born citizens to exercise this right. In the 2012 U.S. presidential election, for example, 72 percent of eligible native-born citizens voted versus just 48 percent of eligible immigrants. Wherever they politically stand, then, immigrants’ opinions are relatively inert.

In any case, immigrants’ political opinions don’t actually stand out. On average, they’re a little more economically liberal and a little more socially conservative, and that’s about it. Yes, low-skilled immigrants’ economic liberalism and social conservatism are more pronounced, but their turnout is low; in 2012, only 27 percent of those eligible to vote opted to do so. So while it would not be alarmist to think that immigration will slightly tilt policy in an economically liberal, socially conservative direction, warning that “immigrants will vote to kill the goose that lays the golden eggs” is paranoid.

Note, moreover, that free immigration hardly implies automatic citizenship. Welcoming would-be migrants is a clear-cut blessing for them and the world. Granting citizenship is more of a mixed bag. While I am personally happy to have new citizens, I often dwell on the strange fact that the Persian Gulf monarchies are more open to immigration than almost anywhere else on Earth. According to the Pew Research Center, 76 percent of people in Kuwait—and 88 percent in the United Arab Emirates—are foreign-born. Why do the native-born tolerate this? Probably because the Gulf monarchies generously share their oil wealth with citizens—and jealously protect the value of citizenship by making naturalization almost impossible. You do not have to ignore the Gulf monarchies’ occasional mistreatment of immigrants to realize that it is much better to welcome immigrants with conditions than to refuse to admit them at all. Migrants—mostly from much poorer parts of the Islamic world—accept this deal, however unfair, exactly because they can still do far better in the Gulf than at home.

In Open Borders, I have the space to address many more concerns about immigration in more detail. What I can’t do, I confess, is address the unmeasured and the unmeasurable. In real life, however, everyone routinely copes with ambiguous dangers—“unknown unknowns.” How do we cope?

For starters, we remember Chicken Little. When people’s warnings about measured dangers turn out to be wrong or overstated, we rightly discount their warnings about unmeasured and unmeasurable dangers. This is how I see mainstream critics of immigration. Their grasp of the basic facts, especially their neglect of the tremendous gains of moving labor from low-productivity countries to high-productivity countries, is too weak to take their so-called vision seriously.

Our other response to unmeasured and unmeasurable dangers, however, is to fall back on existing moral presumptions. Until same-sex marriage was legalized in certain countries, for example, how were we supposed to know its long-term social effects? The honest answer is, “We couldn’t.” But in the absence of strong evidence that these overall social effects would be very bad, a lot of us have now decided to respect individuals’ right to marry whom they like.

This is ultimately how I see the case for open borders. Denying human beings the right to rent an apartment from a willing landlord or accept a job offer from a willing employer is a serious harm. How much would someone have to pay the average American to spend the rest of his or her life in Haiti or Syria? To morally justify such harm, we need a clear and present danger, not gloomy speculation. Yet when we patiently and calmly study immigration, the main thing we observe is: people moving from places where their talent goes to waste to places where they can realize their potential. What we see, in short, is immigrants enriching themselves by enriching the world.

Do I seriously think I am going to convert people to open borders with a short article—or even a full book? No. My immediate goal is more modest: I’d like to convince you that open borders aren’t crazy. While we take draconian regulation of migration for granted, the central goal of this regulation is to trap valuable labor in unproductive regions of the world. This sounds cruel and misguided. Shouldn’t we at least double-check our work to make sure we’re not missing a massive opportunity for ourselves and humanity?

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