Communication 306 MidTerm Paper (NEED AN A)

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A Political and Economic Basis for Innovation

America 3.0

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A Three act play

New Reality 1

Food Crises & Revolution

The Arab spring uprisings were more to do with food prices than politics.

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Third Shock in 4 years

We are about to enter a new cycle of food price rises

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Population Explosion

All inexorably driven by population growth in places with food and ecology stresses

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The Coming Water Crisis

Lack of water being the most dramatic.

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Ethnic Tensions

In the Mid east, almost every country, including Israel will be wracked by sectarian tensions for years to come. We are a bystander as recent events have shown.

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Starvation=Migration

Ecological stress leads to migration, much of it towards Europe

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European Muslim Tension

This has led to right wing backlash throughout Europe

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Chinese Dissent

According to the New York Times authorities recorded 127,000 so-called mass

incidents in 2010

Even in China, dissent is on the rise and will be accentuated as economic stresses expand.

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Balance of Power

We are entering a new era where “it’s every nation for itself” as Merrill Lynch recently reported. This might look like earlier eras where there was a balance of power, such as the hundred years after the Congress of Vienna in 1814.

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New Reality 2

-We really live in 2 americas

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Gun Control Laws

2 americas once again

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Blue subsidizes Red

California paid $318,000,000,000 in Federal Taxes in 2010

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Rural Power

215,000 citizens

18,000,000 citizens

Today, with the filibuster, 21 of the 50 states, representing 11 percent of the population, can muster the 41 votes to stop a majority in the Senate.

John Barasso-Wyoming

Barbara Boxer-California

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Gridlock

This does not have to be our future.

“Congress has largely been reduced from a lawmaking entity to a political operation.”-New York Times, July 12, 2013

-The people who want to make sure theres no federal gun control, marriage laws, they can always block it

-Nothing happens in Washington (think about it)

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Progressive Federalism

  • “It is one of the happy incidents of the federal system that a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” –Justice Brandeis

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False Narratives

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America 3.0

  • Energy independent
  • Reduced carbon footprint
  • Highly educated public
  • Reduced Inequality
  • Fiscal Sanity

How do we get there?

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America 1.0

  • “We shall be as a city on a hill. The eyes of the world will be upon us…we must be willing to abridge our selves of our superfluities, for the supply of others necessities”-John Winthrop

America 1.0

  • We hold these truths to be self-evident, that all Men are created equal, that they are endowed by their creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness
  • Thomas Jefferson
  • It will be our policy to cultivate tranquility at home and abroad and extend our commerce as far as possible
  • George Washington

1776-1915

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Liberty, equality and anti-imperialism

Federalism

  • “The true theory of our Constitution is that the states are independent as to everything within themselves, and united as to everything respecting foreign nations.”-Thomas Jefferson

The three ideas of Washington and Jefferson made us unique

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Abandoning Federalism and Anti-imperialism

But we have abandoned both Washington’s anti-imperialism and Jefferson’s federalism

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If America were a company

  • “We must lower the center of gravity at IBM”-Sam Palmisano, former CEO

The centralization of power has led to sclerosis and like big companies, we should force change.

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America’s Advantage

  • Freedom and Equality
  • Tranquility and Trade
  • Federalism and Experimentation

We can restore all three elements by 2020 and take advantage of this networked revolution

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The Public Good

Local

Federal

America 1.0

America 1.0 was built on a split between local control and financing of schools, roads bridges and public services and Federal control of big interstate projects like the railroads or interstate highway system.

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It worked pretty well

This combination of local and federal leads to the greatest gain in income per capita in history.

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The Inventive Society

It also lead to a very innovative society where bottom-up enterprise could flourish in regional pockets of experimentation

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America 2.0-Making the World Safe for Democracy

1917-2012

Woodrow Wilson entered the First World War and Federal Government spending began it’s relentless climb

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The Neoconservative Gospel

  • The twin poles of the Neoconservative philosophy first elucidated by Irving Kristol in The Public Interest in 1965:
  • In domestic affairs the national government should shrink (by cutting taxes and business regulations)
  • In foreign affairs the government should grow (by becoming the world’s sole military superpower).

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Conservatives did not understand these two principles could only lead to record deficits.

Reagan & Bush’s Legacy

Budget Priorities

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The Free Rider Problem

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The National Security State

Rise of the Plutocracy

Although tax cuts for the rich led to record incomes for the top 0.01%, it killed the middle class.

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Savage Capitalism

The Crash of 2008

Productivity & Wages

“There appears to be a new tendency to substitute against labor. It’s permanent, as long as there are alternatives like outsourcing and robotics.”-Allen Sinai

The Outsourcing Revolution

Robots & Jobs

Labor vs. Capital

“Only 30% of the American workforce is actively engaged in their work”-Gallup

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Oligopoly

Number and Percentage of U.S. Manufacturing Industries in which Largest Four Companies Accounted for at Least 50 Percent of Shipment Value in Their Industries

How the Other Half Lives

Bottom 2 Quintiles (40% U.S. Population)

Recovery without employment

4 million fewer workers

We have recovered from the crash of 2008 on a GDP basis, with 4 million fewer workers.

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Fiscal Cliff or Sanity?

Reduce our Military Footprint

Declining Foreign Oil Dependence

Renewable Energy

That’s enough for 600 Million lightbulbs

The Soft Power Era

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It is no longer a question: the sources of leadership, innovation and change are coming from Decentralized, Networked enterprises and governments.

Scale and Fragmentation Coexist

Proctor & Gamble, Coca Cola, WalMart, Pepsico, Colgate Palmolive, Kimberly Clark. General Mills, Kraft, Kellogg, Costco, Whole Foods, Altria, Mondelez

VDC

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Jobs, Sustainability and Education

Progressive Federalism

I use California as an example of how New Federalism would work. It could apply to any state.

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Reversal of Fortunes

Energy Technology Efficiency

Invest, Divest & Prosper

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Plug-In Hybrids

Modern Nuclear Power

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Cooperation between builders and insurance co’s

Sustainable Agriculture

Steinbeck Innovation Cluster

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Transportation and Walkable Cities

LA-San Francisco in 2 hours with minimal pollution

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Federalist Health Care

California Lifestyle

Health Behavior

Schools

Education

  • Double Teacher Salaries
  • U.S. High School Teacher-$36,000 (1.2x average income)
  • Korean High School Teacher-2.5x average income

Cut State University Tuition

  • 1978 tuition cost for a California Resident-$400
  • 2012 tuition cost for a California Resident-$21,000

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The Virtuous Circle

A Cambrian Moment

  • Cloud Computing
  • Graphic Processing Chips/systems-GPU’s
  • Social Networks
  • Big Data Analytic Engines
  • Sentiment Analysis
  • 2nd Screen-ubiquitous computing
  • Transmedia
  • 5D-building immersive worlds

The Imagination Economy

The Magic of Innovation

The Return of the Golden State

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80 1990 1995 2000 2005 2010

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Fo od

P ri

ce In

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2004 2006 2008 2010 2012

Tunisia (300+) Libya (10000+)

Egypt (800+)

Mozambique (6)

Cameroon (40) Yemen (12)

Haiti (5), Egypt (3), Cote d'Ivoire (1) Somalia (5)

Somalia (5)

India (4)

Mauritania (2)

Sudan (3) Tunisia (1)

India (1), Sudan (1)

Mozambique (13)

Algeria (4), Saudi Arabia (1) Mauritania (1), Sudan (1), Yemen (300+)

Oman (2), Morocco (5) Iraq (29), Bahrain (31)

Syria (900+) Uganda (5)

Burundi (1)

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80

19901995200020052010

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F

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P

r

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I

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2004 2006 2008 2010 2012

Tunisia (300+)

Libya (10000+)

Egypt (800+)

Mozambique (6)

Cameroon (40)

Yemen (12)

Haiti (5), Egypt (3),

Cote d'Ivoire (1)

Somalia (5)

Somalia (5)

India (4)

Mauritania (2)

Sudan (3)

Tunisia (1)

India (1),

Sudan (1)

Mozambique (13)

Algeria (4), Saudi Arabia (1)

Mauritania (1), Sudan (1), Yemen (300+)

Oman (2), Morocco (5)

Iraq (29), Bahrain (31)

Syria (900+)

Uganda (5)

Burundi (1)