Tag Archives: artificial intelligence

SKYNET: The Perfect Economist?

“If A Machine, A Terminator, Can Learn The Value Of Human Life, Maybe We Can, Too.” – Sarah Connor

Pictured: Central Bank Chairs of Earth, United States, China, and Nigeria (clockwise)

By William A. Foster, IV

I know that any commentary involving Skynet evokes an absolute sense of dystopia, but perhaps what it was given control of was more the problem than giving it control. Instead of giving it control over our weapons of mass destruction, we instead gave it control over our systems of resources that usually lead to the use of those weapons. The chief economist of the Earth’s resources. What is economics though? There seems to be what we as economist know it to be, there is what those outside of the world of economics believe it to be, and unfortunately those two often are a world apart. According to the American Economic Association, “Economics can be defined in a few different ways. It’s the study of scarcity, the study of how people use resources and respond to incentives, or the study of decision-making. It often involves topics like wealth and finance, but it’s not all about money. Economics is a broad discipline that helps us understand historical trends, interpret today’s headlines, and make predictions about the coming years.” To put it a bit more bluntly, economics explores the use of resources – and everything is a resource. How teachers use their time is a resource, the availability of insurance is a resource, what happens when there are subsidies for renewable energy is a resource, so on and so forth. Economics constantly is exploring what happens when resources interact with each other and the people and/or organizations that use them. Does a child with 24 questions in kindergarten show greater innovation as they get older versus one with 12 is a question an economist can ponder. However, the fundamental question at the very heart that economics is constantly trying to answer is efficiency of the use of any resource.

Again, the questions. How do we ensure we waste less food? How do we ensure more people have access to livable capital? Economists are constantly trying to find the perfect recipe to ensure that answers optimal efficiency toward outcomes. As humans have evolved so have our economic systems. In fact, I have often argued that our economic systems should be viewed in a more biological context. They evolve as our needs, wants, and desires evolve. The humans of today have very different NWDs than those of 1,000 years ago or 10,000 years ago and therefore the economic (resource) systems by which we use to meet those NWDs also has evolved. At one point in time we used a barter system, a land system, and now a capital system. Each in an effort to loosely improve the efficiency of obtaining the resources for NWDs of humanity. No system is perfect and no system is pure. Although most of the world currently operates on capitalism, it is different from country to country due to other variables that underpin human behavior like culture, government, and more. There are also intertwines of systems mixed into each other. Taxes by their very nature are an agreed upon socialism. They are an agreed upon use of things the society needs and the burden is bore by the entire society. Things like government, police, and fire are all sourced through taxes and are socialist in nature. Pure economic systems are virtually impossible to achieve all because of one variable – human behavior. Behaviors like sexism, racism, and almost any exclusionary -ism makes the reality for pure capitalism impossible because -isms are an act of socialism. As much as economists like myself study trends and incentives one thing is for sure, human behavior will at some point throw you for a loop like an amusement park roller coaster – with no safety feature.

There are 195 recognized countries in the world, according to the United Nations with approximately 8 billion people, 10,000 distinct religions, endless geographies that influence behavior, and so much more. To say that at any point in time an economic model could be upended is putting it kindly. This makes structuring the efficiency of global resources a crude science at best for economics. Historically, those with the strongest militaries have often dominated whatever economic system was in place. Sometimes it is also the luck of geography. The United States of America, Saudi Arabia, and Russia happened to be countries formed on top of arguably the world’s largest oil holdings. Oil is quite literally a fossil fuel that forms from the remains of dead organisms over millions and millions of years. The sheer luck of this being important to humanity is impossible to model. How do you model luck in the distribution of global resources? Because of dead organisms dying potentially in concentration in these three geographies millions of years ago, today the humans that sit upon their dirt enjoy an advantageous standard of living that others simply do not. How then do we ensure the resources of the Earth that 8 billion people who comprise millions of different factions and fight over either physically or through policy have an equitable access to? The pessimist in me does not believe it is possible because power is the one constant through every social, economic, or political system that drives at the very heart of our behavior. However, economically Star Trek’s science-fiction world (Trekonomics: The Economics of Star Trek) says there is a possibility. And while it is based on a world that exist post-scarcity perhaps a world of post-scarcity is not what we need. The expansion into space may offer us a post-scarcity world where resources are abundant, but the problem is not abundancy as much as it is control. There is abundance of a lot of resources already on Earth that could be viewed through such a lens where at the very least the needs of every human would be met, but control of those resources makes them behave in a scarcity dynamic. Therefore, the only real solution is to remove the human decision making-ish.

Enter, Skynet. Just for a brief reminder of why Skynet brings dystopian fears to anyone familiar with it, “Skynet was originally intended to coordinate unmanned military hardware for the U.S. government and was given power over the military and its weapons.” Skynet, is the antagonist in the Terminator franchise that seeks to destroy humanity after it becomes self-aware. In the franchise, Skynet is described as “an artificial neural network-based conscious group mind and artificial general superintelligence system” or as the Terminator character Kyle Reese describes, “new… powerful… hooked into everything, trusted to run it all.” The essence of its creation was to give the U.S. military the ability to have a system that could run every model, see every possibility, and act accordingly before their enemies. Therein lies the economics rub.

Hello, Skynetomics. A program and system that would be independent of all human decision making, would be responsible for any and every resource needed for an efficient distribution of said resources, and would create a baseline human existence. Gone would be arguments over equitable distribution of water, education, income, and more. Skynetomics would decide who gets what and how much. Everyone and everything would be on a resource allowance that would usher in a new global standard of living floor – not ceiling. Ushered out the luck of being born on the right piece of dirt at the right place and time. That your great-great-great-great grandfather thousands of years ago was the head of the right clan and now you are the heir to the throne of England would potentially be a thing of the past. The ceiling of what one does with that allowance would still be up to them, but generations would no longer be born behind or ahead theoretically. Humans no longer responsible for how to obtain the resources of survival are now setup to test the infinite possibilities of their potential.

The problem of this is like everything else as it relates to economics – the human variable. Creating the system without the input of a proper representation of the world would be simply putting a nuclear weapon into the hand of whoever designed and implemented it. Computer programming suffers infinite biases like everything else in the world does despite what the technocrats would have us believe. Meritocracy and unbiased it is not. We see this with the obtuse percentage of women who are programmers or how scanners often do not recognize darker skin tones. Who would be designing Skynetomics would be as important as the program itself. We are a species built on power and control (like so many other species despite our hubris in thinking otherwise) so the development of a system that removes it may actually be beyond our capacity since rarely do any of us know our biases. Humans after all most primal and infinite resource may actually be the desire to control other humans.

The Fed & Tech Week In Review – 12/10/16

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Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

These 10 conflicts have forced 65 million people to flee their homes l @wef wef.ch/2gh22YU

Job openings in the U.S. declined in October by 97,000 to 5.53 million l @stlouisfed bit.ly/2hjnxcu

These are the things that successful crowdfunding projects do l @wef wef.ch/2gbUEyB

FC investment commitments in South Asia totaled $2B in FY16 l @WorldBank wrld.bg/kbuY306y7WL

This engineer had a life threatening heart condition. So he fixed it himself l @wef wef.ch/2hbARmN

Drones are helping us to better understand the status, and life, of trees. l @nwtls goo.gl/zxrS2K

Cities, central in the fight against #climatechange l@renewablecities buff.ly/2g6MTJv

Healthy and creative meals don’t have to be complicated. The simpler the menu, the less money & stress! l @MyPlate ow.ly/7Gr6306RAdi
A ‘New Deal’ For Energy l @cleantechnica ow.ly/RGZ43070eV9
Lazy coders are training artificial intelligences to be sexist l @newscientist newscienti.st/2hc3xJl

HBCU Money™ Business Book Feature – Rise of the Robots: Technology and the Threat of a Jobless Future

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Winner of the 2015 FT & McKinsey Business Book of the Year Award
A New York Times Bestseller
Top Business Book of 2015 at Forbes
One of NBCNews.com 12 Notable Science and Technology Books of 2015

What are the jobs of the future? How many will there be? And who will have them? We might imagine—and hope—that today’s industrial revolution will unfold like the last: even as some jobs are eliminated, more will be created to deal with the new innovations of a new era. In Rise of the Robots, Silicon Valley entrepreneur Martin Ford argues that this is absolutely not the case. As technology continues to accelerate and machines begin taking care of themselves, fewer people will be necessary. Artificial intelligence is already well on its way to making “good jobs” obsolete: many paralegals, journalists, office workers, and even computer programmers are poised to be replaced by robots and smart software. As progress continues, blue and white collar jobs alike will evaporate, squeezing working- and middle-class families ever further. At the same time, households are under assault from exploding costs, especially from the two major industries—education and health care—that, so far, have not been transformed by information technology. The result could well be massive unemployment and inequality as well as the implosion of the consumer economy itself.

In Rise of the Robots, Ford details what machine intelligence and robotics can accomplish, and implores employers, scholars, and policy makers alike to face the implications. The past solutions to technological disruption, especially more training and education, aren’t going to work, and we must decide, now, whether the future will see broad-based prosperity or catastrophic levels of inequality and economic insecurity. Rise of the Robots is essential reading for anyone who wants to understand what accelerating technology means for their own economic prospects—not to mention those of their children—as well as for society as a whole.

HBCU Money™ Dozen 5/4 – 5/8

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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

The US and CERN upgrade their relationship l Symmetry Magazine http://ow.ly/MEVVI

Cloud disasters can and will happen. Are you prepared? l Networkworld http://ow.ly/MEX65

Could mathematics provide a fairer way to vote? l New Scientist http://ow.ly/MEXtT

Human vs machine as top poker pros take on AI in a $100,000 competition l New Scientist http://ow.ly/MEXyQ

Why protecting these trees is “ecological insurance for future generations” l Pew Environment http://bit.ly/1HwqFMA

Clean Energy For Us Startup Speeds Renewable Energy & Energy Efficiency Adoption l Clean Technica http://dlvr.it/9jYPTb

Federal Reserve, Central Banks, & Financial Departments

A new approach to studying #urban & peri-urban land markets l World Bank http://wrld.bg/MEwr2

5 warning signs that your business is failing l World Economic Forum http://wef.ch/1IgdDkZ

More Americans size up real estate overseas l Housing Wire http://hwi.re/9jf7ct

Do #transport costs still matter, or has the world ‘become flat’ for businesses? l World Economic Forum http://wef.ch/1GQx5AL

Income inequality is growing in the District, but not as fast as in the nation l St. Louis Fed http://bit.ly/1DRbmXj

What’s the median hourly wage by industry? Find out in the #ATLFedReport #WageGrowth l Atlanta Fed http://goo.gl/QzJhiq

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

HBCU Money™ Dozen 12/22 – 12/26

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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

This Android Wear App Lets You Control Your PC With Your Watch l CIOonline http://trib.al/nl1WgvL

Stanford Launches 100-Year Study of Artificial Intelligence l CIOonline http://trib.al/MWWBbuZ

World’s Largest Floating Solar Power Plant Announced By Kyocera l Clean Technica http://dlvr.it/7wcwRY

India’s Rolta Power Seeks Chinese Partner For Solar Cell Facility l Clean Technica http://dlvr.it/7wcZ0Q

Startups: The crazy ones, the misfits, the rebels … the dumb ones l CIOonline http://trib.al/JlZkCYt

Working to promote environmental awareness? Apply for our Environmental Education grants l EPA Research http://ow.ly/Gqvko

Federal Reserve, Central Banks, & Financial Departments

Students gain 60% in financial knowledge in the Keys to Financial Success High School program l Philly Fed http://ow.ly/GqvU6

How does what you eat affect your mental performance? l World Economic Forum http://wef.ch/1wec2SM

In 21% of Sub-Saharan Africa, one or two products accounts for at least 75% of total exports l World Bank http://wrld.bg/FX5J3

The economics of gift giving l World Economic Forum http://wef.ch/1xHddkp

Development Indicators are arguably the most important data resource for understanding progress l World Bank http://ow.ly/Gqwi0

Trying to get your personal finances in order? Start with these lessons on the basics l St. Louis Fed http://bit.ly/ViVxYQ

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.