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Words mean things, or so the saying goes. Unfortunately, the world changes so words have to change. That’s where it gets interesting.
English is an adaptable language that mutates easily. The problem is that language is useful for both communication and identity, so people sometimes deliberately use a word in a different way to show what group they belong to. There are also things that defy description.
When the NY Times announced it was installing a complex paywall plan in April 2011, most internet mavens predicted failure. Conventional wisdom has long told us that information is supposed to be free on the internet – despite the fact that this argument leads to the logical conclusion that the internet is literally worthless. Brushing that aside, the NY Times hoped to gain 300k subscribers in its first year and show that there is indeed a value to quality information, possibly making it distinct from information as a commodity.
It worked. In the first three months the NY Times achieved 224k subscribers directly, plus decent income in other areas that were not part of the standard they were to be judged by. People will indeed pay for news on the internet.
The implications of this are potentially vast if we can learn from this experiment.
The gamesmanship of Congress is still reverberating through the world’s financial system with a big drop in stock markets today. But that may be only the start of the problems caused by the self-inflicted calamity. At risk is the source of the USofA’s real power around the globe – not the military, but the US Dollar itself.
The high standard of living enjoyed in the US is based on the fact that our currency is the standard “reserve currency” across the globe. All commodities and many long-term contracts are priced in US Dollars. If, or more likely when, that comes to a screeching halt the implications are vast for our economy and just about everything we do. Where it gets interesting is that, done well, it could be a liberating experience.
It’s been a busy week on the economic front. Congress got its act together, sort of, and passed a debt ceiling raiser that a solid majority of Americans considered “ridiculous”. The Dow Jones Industrial Average dropped 500 points in response to this, a new salvo in the currency war, and uncertainly about jobs. Today it may gain some of that back now that the July jobs report shows solid gains, however.
If stock traders and reporters alike seem to be hopping around like scared bunnies, there’s a reason for it – uncertainty induced fear. If you are afraid for your own future, you’re clearly not alone.
That may sound like small comfort, but it shouldn’t be. Confronting our fears will be the first step to recovery. You can read that as either pop psychology or economics. The source of the fear, however, will take us some time to work out because it’s a major feature of the world we live in.
You first see the lightening spark out of the angry clouds. Perhaps a sense of anxiety rose as the pressure dropped. By the time the heavy wet smell of rain came you may have had a sharp taste of fear in the back of your throat. The deafening roar as the atmosphere falls around you covers sirens wailing out the obvious in the wind.
The thunderstorms that roll through the Midwest leave a mark on every sense as the experience washes over the lives of those caught in it. The recent debt ceiling debate in Washington progressed like a storm, building its way to a climax that never had a chance to live up to its intro. With the rain passed the damage assessment will take time – but the mark on everyone’s heart and mind is clear. We’re going to watch storms more closely for at least a while.
What that means after this political storm is not obvious, but it is visceral.
Barataria - The work of Erik Hare 