I am reading Standards: Recipes for Reality, by Lawrence Busch (http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=12691). I purchased the book because of the review I read in the Wall Street Journal (http://online.wsj.com/article/SB10001424052970204012004577073253871935524.html). Serving an infrastructure business, the electric power industry (http://www.pearlstreetinc.com/) , I deal with standards all the time, but usually not overtly. I’ve only read a […]
I am reading Standards: Recipes for Reality, by Lawrence Busch (http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=12691). I purchased the book because of the review I read in the Wall Street Journal (http://online.wsj.com/article/SB10001424052970204012004577073253871935524.html). Serving an infrastructure business, the electric power industry (http://www.pearlstreetinc.com/) , I deal with standards all the time, but usually not overtly. I’ve only read a small portion of this book so far, but I am impressed with the expansive view the author takes about what constitutes a “standard.” Busch is a professor of sociology at Michigan State University. I am (slowly) working towards a doctorate in Sociology and have been fascinated with the field since I took an intro level course in college. This is a book of philosophy, organizational dynamics, technology, innovation (and how standards inhibit it), and many other things, but it boiled down to, for me, a study in masking the complexity of human endeavor, and the use of standards as a proxy for trust.
Audits, certifications, licenses, playbooks, scripts, recipes, musical notation, compositions, protocols, weights and measurements, tests, titles and occupation, rank, validation, verification, rules, laws, guidelines, norms, tolerances, precision, awards, prizes, authentication – all of these are part of standards and standardization. Standards engender prestige, garner trust, and facilitate mechanization. Any garden hose I might buy in a store will have the same connection to the sprinkler I just used to water the lawn. I can write and post these words because of a standard protocol for transmitting information digitally over the Internet.
I probably felt more comfortable purchasing this book because the author is “a Distinguished Professor in the Center for the Study of Standards in Society in the Department of Sociology at Michigan State University…” Distinguished Professor is capitalized because a professor at a prestigious university holds a higher standard in society than the title of garbage collector. The book is published by MIT Press, which undoubtedly holds a higher “standard” for books on this type of subject that one out of a local community college. Forming an academic “Center” undoubtedly leads to recognition as the “standard” for information and analysis about standards.
I have worked with clients and innovators most of my career who want to revolutionize the electric power industry with technology. But new technology means risk. Infrastructure businesses take as little risk as possible. Not because they are business run by bad people but because their customers only care about one thing – in the case of electricity, that the power stays on for the lowest amount of money possible (and more recently, with an acceptable level of environmental impact). I hate to break it to my clients but my industry mostly wishes for three big dog suppliers of equipment or technology who will respond to a specification (itself a standard of sorts) such that three credible bids can be received and evaluated. It’s a business that craves standards and shuns innovation. Being highly regulated doesn’t foster innovation either.
I have a degree in chemical engineering. I have been walking around, and analyzing, complex engineered systems my entire career. That hasn’t stopped me from being in awe the next time I am at a power plant, a refinery, a recycling center, or even get in my car, buy groceries, cross a bridge, or text my daughters on my cell phone. It all works! Over and over and over again. Sure, there are blips, bumps, service interruptions (it’s 98F and the compressor on my AC just conked out after twenty six years), but this really complex stuff works just about all the damn time. Yes, I know, that just creates unrealistic expectations. The better something works, the better it has to work, or the customer isn’t happy. That’s why we have standards.
Often I think we need fewer standards. Busch points out how the formation of standards clashes with democracy, confers power and influence, and lead to domination. They extend beyond those who “established them, standards take on a life of their own that extends beyond the authorities in both time and space.” I know in my work standards are written by technical committees and it requires time and money to participate in the committee. They are usually written so the “big dogs” win.
But I also think we could use some new standards. A standard of zero outages is unrealistic, yet that is what most of us expect from electricity, water, and fuel suppliers, and Internet service providers. So wouldn’t it be helpful if we had a standard to compare to when we experience outages? Some standard for climate modeling might amp down the rhetoric around global warming. We might be less surprised at catastrophic events if we could benchmark them to a standard.
Perhaps more importantly, we should understand that many “standards” are anything but. Standards used in accounting and by financial engineers are often so ambiguous, they allow each firm to apply their own valuation models. Who can you trust when everyone has their own version of the truth? It’s especially insidious because the fact that “numbers” are involved- mathematical, computer, and statistical models and algorithms-masks the fact no real standards are in place for how money is invested and transacted by Wall Street firms. I hope Busch gets into this aspect of standards. Many standards I deal with simply add to the volumes of paperwork, but don’t lead to faster, better, or cheaper.
Finally, it’s interesting to participate in an endeavor that has a decidedly different framework of standards than the one I am used to (engineering and complex systems): fiction writing. Sure, you have to follow rules of grammar and punctuation (style sheets are another form of standard!) and construct a logical flow to your ideas through sentences and paragraphs and chapters. But, after that, what constitutes bad, mediocre, good, great, or superior fiction? If you have a Masters in Fine Arts (MFA), you may enjoy a higher standard for how your fiction will be received by agents and publishers and the academic community (which published the vast majority of short stories).
In one sense, fiction writing may seem like a profession with a weak framework of standards. But maybe not, since a huge pool of would-be novelists (we all have a story to tell, don’t we?) are stopped at the gates of publishing glory by a relatively small band of gatekeepers (agents, editors, professors, etc). Apparently, they know what the standards are but you don’t. You can try to reach readers directly through self-publishing (which ends up being 99% self-promotion), but that’s the wild west of publishing right now. Standards don’t exist.
When a community lacks transparent standards, it has to achieve trust and validation in other ways, usually by a buddy system. Sadly, a buddy system isn’t conducive to innovation either. The Fifty Shades of Gray that has become the 5-million shades of gray kind of tells that story. The community (publishers, writers, agents, bookstores) learns to trust what sells. Self-publishers rely on friends and family to “MAKE SOME NOISE” to send a work viral. That might be a standard for promotion but not necessarily for quality.
Whether your endeavor is governed by set of sophisticated but transparent standards, or a buddy system standing in for a set of weak or non-existent set of standards, it appears that the “system” will converge sooner rather than later and stifle ideas and innovation.
I invite you to learn more at the Center for the Study of Standards in Fiction.Yes, just kidding 🙂
It’s time to get beyond the 1%. Who really controls the economy? Click above
If you leave a comment and a place to send, I’ll provide you a really cool graphic that illustrate the slides rather eloquently
It’s time to get beyond the 1%. Who really controls the economy? Click above
If you leave a comment and a place to send, I’ll provide you a really cool graphic that illustrate the slides rather eloquently
So, last week I arranged to conduct a “forum” at Occupy St Louis (ground zero is a few blocks from my office) on practical solutions to Wall Street. It took me a while to figure out their very democratic system and in the process I had a few great conversations with a union organizer and […]
So, last week I arranged to conduct a “forum” at Occupy St Louis (ground zero is a few blocks from my office) on practical solutions to Wall Street. It took me a while to figure out their very democratic system and in the process I had a few great conversations with a union organizer and a woman from NYC flogging her book and donating the money to the movement. Turns out all I had to do was get on the PA system and announce my workshop. One person showed and we had a fruitful conversation, but our ideas were largely theoretical.
Things at OSL got more organized and this week I agreed to conduct another forum, “Practical Solutions to Wall Street Power and Excesses.” I was actually on the schedule at their FB page and on the written schedule at the site. Yesterday was the big day.The weather was awful, having turned from sunshine to cold autumn rain. I prepared a two page handout and made seven copies, figuring I’d take five home with me.
I got there and no one could locate the PA system (probably stored away so no one would electrocute themselves in the rain), someone was playing loud music (I asked him to turn it down and, in his mind, I guess he did), and someone else apparently was going slightly bonkers with a metal folding chair. So, a couple of young guys screamed out, and others repeated, that the such and such forum would be starting now at the top of the stairs. “We’re all gonna get educated!!” the guy screamed, in a voice that would land my throat in Hall’s cough drop territory for two days.
Turns out I got the education. We had a very civil meeting, a great discussion, which took little prompting. There were 10-20 folks around me at any given time. The one person who looked the least likely to contribute (and looked the “least likely” period) had an impressive command of the facts and figures about Wall Street, the global economic system, and our political process. And he originated the “big idea” which I am going to share with you.
That the movement generate a nationwide petition making a demand that, say, the corporations sitting on $2-trillion in cash currently be forced to invest it, or some portion of it, in this country on things that create jobs. If, within 90 days, they refuse, then the movement (and sympathizers) boycott their businesses, walk out of the job, etc. A national strike.
This seems like a worthwhile idea for the following reasons:
-It’s an action with an immediate affect. this was the biggest complaint about all the other solutions. Everyone kept saying “we need jobs now!”
-It does involve any legislation or tax policy.
-it forces U.S. domiciled corporations to acknowledge that they must be part of the solution in creating jobs here instead of in China or India.
-It involves the unions which can bring organization and numbers to the effort
-It forces awareness because demand (boycott) and the means of production (strikes) both stop at the same time.
-It can build in strength as the movement builds.
Even it such an action turns out to be symbolic, that’s something.
My larger point here is that this is an important exercise for me, working with others who are so frustrated by the current system that they are willing to sleep in public spaces, risk getting beat up and arrested by the police, and so on, to create some alternative means of “hope and change,” since the last movement in the vein (you listening, Obama?) seems to have netted the 99% little, if anything.
I’ve been studying financial engineering, Wall Street, and the global financial system for five years (go figure – I just get interested in these things). I am working on a sociology degree with a focus on these topics. This summer, I was talking with my daughter who is at college and I kept wondering, how come no one is protesting what Wall Street (see my definition) is doing to this country?
Wonder no longer. I am energized!
Here’s what I handed out at my forum:
Solutions for Restraining Wall Street Excesses
First, a proposed definition of “Wall Street”: The circuit of political and financial hegemony that runs through the global financial services firms; the administration and the regulatory agencies under its control; the Congress, its committees and subcommittees, and the agencies it controls through budgetary proceedings; K street and the corporate lobbyists; the Federal Reserve, International Monetary Fund, the World Bank, other central banks, and sovereign bank systems; and elements of the global media. The most important characteristic of Wall Street under this definition is that its power completely and utterly transcends political parties. It is a system unto its own.
Some ideas (talking points) we the people can consider:
• Make the U.S. Federal Reserve accountable to the people. Currently, the Fed operates independently of the President (even though he/she appoints the Chairman and Congress approves) and the Congress, or any official elected by the people, for that matter,
• Enact a transaction tax on all Wall Street activities. If politicians seriously consider a “sales tax” or value added tax on people, then why not a “sales tax” on Wall Street transactions?
• Nationalize the banks. Three years ago, U.S. taxpayers handed them $750-billion, and while they paid most of it back, they also fattened their own compensation packages. Where is the improvement to the economy for the other 99%?
• Repeal the Commodities Futures Modernization Act of year 2000. This act prevents oversight of derivatives and other exotic financial products at the heart of repeated financial crises of the last thirty years.
• Insist that appointments for key positions within the federal government come from outside the system, not the same people that have been corrupting the system for thirty years.
• Force Wall Street to invest a portion of its profits and revenues into rebuilding the infrastructure of this country. Wall Street gets an F for managing the nation’s finances. The American Society of Civil Engineers has given the state of this nation’s infrastructure a D for many years. Invest in infrastructure engineering, not financial engineering.
• Start nation-building here at home. Take every dollar saved as we get out of Iraq and Afghanistan and invest in the foundation of this country – education, infrastructure, and energy.
• Break the circuit of Wall Street power.
• Force the use of comparative accounting procedures and rigorous standards on corporations. Financial engineering has become so complex, regulators allow each of them to use their own “proprietary models” to value their balance sheets. No one on the outside can discern what their real value is. How do you tax an entity that has the right to report whatever the hell it wants to? How do you invest in a company that offers little real transparency over its activities and accounting?
What are your talking points?
jmakansi@yahoo.com
I’ve been posting on my Facebook page a “fact” or message a day about Wall Street to show my sympathies with this movement, even though my definition of Wall Street is different from that of the movement. I define Wall Street as the the circuit of elite power that runs through Wall Street, Congress and […]
I’ve been posting on my Facebook page a “fact” or message a day about Wall Street to show my sympathies with this movement, even though my definition of Wall Street is different from that of the movement. I define Wall Street as the the circuit of elite power that runs through Wall Street, Congress and the Administration, K Street, and elements of the media.I think the movement’s definition is more like “an economic system that is unjust and unfair to 99% of the population.”
My interest here is to contribute in my own tiny way by getting these people focused on how we got where we are with the corrupt financial and political system we suffer under today and practical things we can all think about to solve the problem, or something more practical than sleeping in public spaces. Not that I object or hold that against them in our democracy. I just think once the occupation ends, governing has to be restarted and there really are concrete steps that can be taken to fix things.
Most of this comes from my studies of financial engineering over the last five years, now embodied in my graduate work towards a Doctorate in Sociology. In any case, I’ve re-posted my daily messages here (in reverse chronological order):
- The current recession is only the latest crisis properly laid at Wall St’s gilded door. What about the junk bond scandal, the Savings and Loan fiasco, the collapse of Long Term Capital Management, and the dot com, telecom, and energy com failures? After each, financial services got stronger for the next round because regulatory oversight got weaker. The system has become a siphon for the few who get transaction fees in current dollars by inflating the perception of future value estimated from their “proprietary” models.
- In 1985, 14% of American business profits went to financial firms. In 2006, at the height of the housing bubble, it was 33%. Today, it is still 25%. Is it even close to appropriate that one of every four dollars of profit comes from moving money around a corrupted system, instead of investing that money for the long-term good of Americans?
- In 2009, the AmericanSociety of Civil Engineers gave the condition of our nation’s infrastructure a grade of D. $2.2-trillion over five years is needed to fix it, accompanied by tens of thousands of jobs. Its pretty clear Wall St gets a F for managing the nation’s finances. We need long term investment in the foundation of the country not minute to minute speculation by the 0.001% that runs Wall Street.
- Â Repeal the Commodity Futures Modernization Act, passed by our Congress in year 2000 expressly to PREVENT regulation and oversight of derivatives and the exotic financial products at the heart of our financial crisis and the profits of the 1%
- Make the Fed transparent. Under current law, no elected representative of American citizens has the right to examine the Fed’s dealings with US banks or other global or central banks.
- Break the circuit of global economic power and influence, the handful of elites in the revolving door through Wall St, DC, K Street, and academia, and the media amplification of their message
- In less than 36 hrs in 2008, the Fed converted Goldman Sachs and the other investment banks into commercial banks so they could receive their share of TARP funds. Government works lightning fast when the right people have their hands out begging.
- When your personal net worth is $4-billion, every zero after that first digit represents the sweat and toil of others in the service of your vision.
- (The lack of) Money is the root of all evil. (with gratitude to Mad Magazine where I read this several decades ago)
- Â Reduce speculating. Expand educating.
- End Financial Engineering. Support Infrastructure Engineering.
Recent Posts
- What Debussy, data mining and modeling have in common…
- Turning Traditional Economics Inside Out
- C-IRA Poster for the International Conference on Complex Systems
- The lack of error and uncertainty analysis in our science and technical communications is as pernicious as the ‘partisan divide’
- It’s just not that hard: Earth Day at 50
Recent Comments
- jmakansi on When a Favorite Short Story Expands to a Novel…
- Ronald Gombach on When a Favorite Short Story Expands to a Novel…
- Kathy Schwadel on When a Favorite Short Story Expands to a Novel…
- jmakansi on So Vast the Prison: Takes No Prisoners Regarding the Universal Plight of Women
- Elena on So Vast the Prison: Takes No Prisoners Regarding the Universal Plight of Women
Archives
- September 2020
- August 2020
- July 2020
- April 2020
- March 2020
- July 2017
- June 2017
- April 2017
- March 2017
- January 2017
- July 2016
- May 2016
- November 2015
- October 2015
- August 2015
- May 2015
- March 2015
- January 2015
- November 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- August 2013
- July 2013
- June 2013
- April 2013
- February 2013
- January 2013
- November 2012
- October 2012
- September 2012
- August 2012
- March 2012
- November 2011
- October 2011
- July 2011
- June 2011
- December 2010
- November 2010
- March 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- Error gathering analytics data from Google: Error 404 (Not Found)!!1 *{margin:0;padding:0}html,code{font:15px/22px arial,sans-serif}html{background:#fff;color:#222;padding:15px}body{margin:7% auto 0;max-width:390px;min-height:180px;padding:30px 0 15px}* > body{background:url(//www.google.com/images/errors/robot.png) 100% 5px no-repeat;padding-right:205px}p{margin:11px 0 22px;overflow:hidden}ins{color:#777;text-decoration:none}a img{border:0}@media screen and (max-width:772px){body{background:none;margin-top:0;max-width:none;padding-right:0}}#logo{background:url(//www.google.com/images/branding/googlelogo/1x/googlelogo_color_150x54dp.png) no-repeat;margin-left:-5px}@media only screen and (min-resolution:192dpi){#logo{background:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) no-repeat 0% 0%/100% 100%;-moz-border-image:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) 0}}@media only screen and (-webkit-min-device-pixel-ratio:2){#logo{background:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) no-repeat;-webkit-background-size:100% 100%}}#logo{display:inline-block;height:54px;width:150px} 404. That’s an error. The requested URL /analytics/v2.4/data?ids=ga:66373148&metrics=ga:pageviews&filters=ga%3ApagePath%3D%7Enancial-engineering%2F.%2A&start-date=2024-11-25&end-date=2024-12-25 was not found on this server. That’s all we know.
- Error gathering analytics data from Google: Error 404 (Not Found)!!1 *{margin:0;padding:0}html,code{font:15px/22px arial,sans-serif}html{background:#fff;color:#222;padding:15px}body{margin:7% auto 0;max-width:390px;min-height:180px;padding:30px 0 15px}* > body{background:url(//www.google.com/images/errors/robot.png) 100% 5px no-repeat;padding-right:205px}p{margin:11px 0 22px;overflow:hidden}ins{color:#777;text-decoration:none}a img{border:0}@media screen and (max-width:772px){body{background:none;margin-top:0;max-width:none;padding-right:0}}#logo{background:url(//www.google.com/images/branding/googlelogo/1x/googlelogo_color_150x54dp.png) no-repeat;margin-left:-5px}@media only screen and (min-resolution:192dpi){#logo{background:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) no-repeat 0% 0%/100% 100%;-moz-border-image:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) 0}}@media only screen and (-webkit-min-device-pixel-ratio:2){#logo{background:url(//www.google.com/images/branding/googlelogo/2x/googlelogo_color_150x54dp.png) no-repeat;-webkit-background-size:100% 100%}}#logo{display:inline-block;height:54px;width:150px} 404. That’s an error. The requested URL /analytics/v2.4/data?ids=ga:66373148&dimensions=ga:date&metrics=ga:pageviews&filters=ga%3ApagePath%3D%7Enancial-engineering%2F.%2A&start-date=2024-11-25&end-date=2024-12-25 was not found on this server. That’s all we know.