Comment by nz

5 days ago

This is a long comment, but I swear it is going somewhere (new terminology).

Someone once said (I think Kay), that "a change in notation is worth 20 IQ points". Historically, people struggled with presently-mundane basic concepts, such as Darwin's Evolutionary Theory, and Maupertuis' Principle of Least Action, because they lacked the "notation" (concepts, really), that would have allowed them to integrate them into their consciousness (or otherwise were not willing to discard or diminish another pre-existing notation, like biblical stories).

The younger generations have the advantage of being exposed to a much greater variety of notations than any previous generation, thanks to the internet, and its unrestricted nature. There is a lot of alpha in being able to instantly find numbers, and compare them with other numbers. Those aggregations, and second-hand experiences (I did not need to get murdered by federal officers personally, in order to start questioning the legitimacy of the government more aggressively), are a kind of substitute for a few decades of lived experience (by the time you turn 30 or 40, you are old enough to understand a lot of the dynamics, but too old to do much about it).

What this does, in effect, is create an acute awareness of what I like to call "sign-flip institutions" (I have never heard/read this term used before). A sign-flip institution, is an institution, in which a "customer's" minus is their plus, the overwhelming majority of the time.

So for example, a bank is a sign-flip institution (unless you never take out any loans). This is in fact _codified_ in how they do their accounting. To a customer, a loan is (in the accounting terminology), a _liability_, while deposits are _assets_. To a bank (ask any accountant who works at a bank), loans are _assets_, while deposits are _liabilities_. Just that framing, means that a bank "performs" better, when it minimizes deposits and maximizes loans.

Historically, most sign-flip institutions were heavily regulated[0] (to prevent them from impoverishing the populace, or worse). In banking, it used to be the law that they could not give mortgages for housing, unless the purchaser can pay 1/3 of the mortgage up front. This kept housing prices very low. It also kept bank performance low. After decades of bribery (sorry, lobbying), the banks got those regulations removed, and now the housing prices are so high that people _have_ to go into debt to (not own, no), but _have access_ to a home[1], that they may never fully pay off.

Combine this with the fact that we have very aggressive anti-vagrancy laws (you are not even allowed to sleep in your own car/van, in an empty parking lot), and it should be no surprise that people will say that society is rigged, that those who govern (cities, states, federations, corporations, banks, etc), are illegitimate.

Most AI companies, are openly marketing themselves sign-flip institutions! I don't know how true this is in practice[2], but given their round-the-clock FUD-based marketing, one would think that they are designed to turn your time into their money. That they are designed to turn you into money.

The only surprising thing about this story is that it took a nation, known for school shootings, this long to get violent against the executive/governing class. It took them this long, to learn to leave their smartphones at home, and to bring their molotov cocktails instead[3].

[0]: Hospitals, for example, were not allowed to make a profit before 1978.

[1]: Landlords get a lot of hate, but, most of the landlords that I've spoken to, are in the same exact situation as most home-owners (mortgage, debt, inflation), which means that they are really just arms-length employees of the _true_ landlords, the banks. Similarly, if you peel back the finances of most AI companies (maybe even most Silicon Valley companies), I am sure you will banks at the center of that web.

[2]: My big suspicion/fear is that the anti-AI sentiment is being cultivated to scapegoat the nerds, and to protect the bankers/executives.

[3]: Most Americans stereotype the French, as a nation of sad artists, but to the contrary, their protests are glorious.

Try to find an old graph theory proof (eg of the five colour theorem) and be amazed at how describing things in terms of a walk around a zoo is so much less clear than sets of vertices, edges, paths, etc. The history of mathematics is full of examples of good notation making a big difference, though of course this is often because the notation contains some insights about what structures are important.

One of most important things I've learned as I have gotten older is that optimization is all about degree. Is it good that housing prices are higher? No, clearly not. Is it good that I can get a 30-year mortgage when I am 25 and live in a house and eventually pay it off? Yes, it is good (I just paid it off last year.) Does the existence of that 30-year mortgage inflate the housing market? It definitely does if there is not enough housing. And yes I gladly paid 2x the cost of the house in interest, because I got to live in it the entire time vs. paying rent on someone else's asset. Good public policy must have specific aims in mind or there are many unintended consequences.

I can't tell how much of this post is describing/LARPing a point of view, or expressing your actual beliefs. The last few paragraphs make me think it's what you actually think though.

Glorious as a personal sentiment isn't exactly how I'd describe the French Revolution.

Yes, stirring up anti-AI hatred is fine as long as it's directed at your I-Banker/PE friends from school who majored in economics, but totally bad if it's directed at you since you majored in Comp Sci (the source of AI to begin with) and went into tech.

"Just that framing, means that a bank "performs" better, when it minimizes deposits and maximizes loans"- is this how you think finance actually works? Maybe first learn how things work before inventing your own terminology or "notation" like sign-flip institution. It's not worth 20 IQ points if it's wrong. The younger generations (and I am a member) are certainly no smarter or wiser than previous generations. Many sure seem to think they are though.