The Super-Rich Are More Rich than They Need to Be

Society is degenerating, partly because people who could be accumulating wealth if given the opportunity do not have the opportunity. This is because money is being syphoned to the super-rich, instead of growing among the poor and middle-class. The very wealthy accumulate wealth without regard for the greater good of the economy, which is becoming more and more suitable for small businesspeople.

However, part of the problem is the attitude of the poor and middle-class. Throughout my life, I've observed the attitude of others with regards to changing the world. With rare exception, everyone I've come across simply has no wish to change the world. I don't know if this is because public school beats it out of them, or if it is because of a hereditary attitude that has been promulgating itself since the time when people would be hanged, crucified, or burned for trying to change the world, or perhaps if it is just a personal lack of conviction in their own ideas. Whatever it is, I think it is a problem. Part of the reason the rich can get away with accumulating wealth that should've been ours is because 99% of people are at a loss for what to do with extra wealth when they get it. Maybe a new home theater system. A Winnebago. A trip to the Bahamas. Start a business? Make a film? No, no. That is for people who want to change the world.

The super-rich are going to become more meaningless over time, because our cultural consciousness and economy are becoming decentralized, making centralized wealth less important. But what will replace our major corporations if nobody wants to change the world? They will be replaced with a bunch of mindless sheep begging to be invaded by people with the chutzpah to actually do things. I hear complaints about how Americans aren't accumulating wealth like they used to. I complain about that, because I tend to get stuck in the economic doldrums spending all the money I get on rent and utilities. But I complain about it because I actually have ambitions to change the world, which cannot be realized without extra wealth. Unfortunately, I'm a minority. Most people could care less about accumulating extra wealth, because they are more concerned with living comfortably and quietly smothering themselves with their own down pillows.

I don't care if you want to be a follower rather than a leader. We need followers just as much as we need leaders. All I ask is that if you are going to be a follower, at least try to follow people who are changing the world, rather than just paying a salary. Follow people who challenge you. Follow people who reward enterprise and good decisions. Follow people with a conscience, and with vision. To survive, society needs to constantly change. And it won't change unless we change it. People who refuse to change the world, even if they're not natural leaders, aren't doing anyone any favors.

The Value of Bitcoin

I've seen it said one or two places that the value of bitcoin is in its anonymity, or its lack of corruption due to the lack of centralized banking. I don't believe this to be the case. Dollar transactions can be anonymous, too, and gold has no central bank, but the value of bitcoin is different than the value of gold or dollars. I think the value of bitcoin has to do with the nature of the tangible thing which is coined.

Dollars are pieces of paper with art printed on it. The art is printed in such a way that it is difficult to forge. The value of the dollar is enforced by the United States government, and the open market. It can go up or down, depending on the quality of things bought with it. When a thing is put into circulation in the open market, the value of the dollar is affected by the amount people are willing to pay for the thing. If the thing contributes to the value of the economy, then the value of the dollar goes up.

The value of the dollar bill itself that you carry in your pocket depends on its availability for use in transactions. This depends on the armored vehicles, bank vaults, printing centers, and so forth which manage and create dollar bills. As a physical thing, it is very difficult to create and very difficult to transport when compared to bitcoins. Bitcoins are easy to create and to transport. But they are comparatively more difficult to transfer. It is more difficult to pull a bitcoin out of your wallet and hand it to someone else than it is to pull a dollar out of your pocket and hand it to someone else.

The overhead of transportation and creation of bitcoins is very low, while the overhead of transferrence is very high. This indicates a couple things for the value of bitcoins. For one, complex, long-distance infrastructure of transactions are easy to maintain, provided the "buy it now" attitude is not too highly stressed. I believe this means that bitcoins are good for small, independent businesses that deal primarily in quality of service and quality of product, while dollars are good for more simple, standardized businesses like franchises that deal in immediate products where the quality and service doesn't carry too high a premium. Dollars are good where things remain the same, as with MacDonalds. Bitcoins are good for where things are different, as with Main St. Pawn.

What is needed currently for the value of bitcoin to be optimized, I think, is a decentralized banking infrastructure. This banking infrastructure would provide backing for the businesses that choose to use the bitcoin, so that they are all benefitted by the growth of the bitcoin economy. What I'm talking about is a radically decentralized system of investment banking that anyone can use but that promotes wise investment. Something that connects investors in a way that does not require a "stock market" or any other kind of limiting institution which tries to rule out companies to invest in. This would have to simultaneously fulfill the needs of an investment community of small, diverse businesses, and also prevent "boom/bust" cycles in the bitcoin economy. If such a system were developed, bitcoin would be a great boon to the artisans and small business owners that make up the middle class.

Cloud, Entrepreneur, Cloud

A couple of weeks ago, I started working at a place called Brick and Mortar, here in Moscow. Working not in the sense that I have a job, but in the actual sense of the word—I work here. Anything, including writing this post, which I consider "work," I tend to do here. Another kind of work I can do here, which I haven't yet done but which I intend to do, is contract through a service called oDesk.com. Both of these platforms—B&M and oDesk—are related in a deeply philosophical way, which I will examine below.

Let's start with Brick and Mortar. B&M is advertised as a community workspace, or a co-working space. But these concepts don't really get to the heart of the matter. "Community workspace" is especially far off. I might be able to see it as meaning that it is both a community and a workspace, but the lexico-grammatical meaning of the phrase seems to indicate that it is exactly what it says: a "community workspace," where "community" is an adjective and "workspace" is a noun. And "community" as an adjective indicating "this workspace is a community" is a very esoteric reading of the word indeed. More likely, it indicates that B&M is a workspace intended for use by the general community, which isn't quite right.

But even if the esoteric reading is correct, and B&M chooses to market themselves as a workspace which is a community, or workspace community, I still think this misses the mark. The library is a workspace community. The University of Idaho is a workspace community. Hell, every single business in America is a workspace community. It just doesn't seem to do the idea justice.

So I propose a new way of thinking about it.

B&M is not just a workspace community, but a specific kind of community. Now I'm going to draw my inspiration from one particular office here. It is a more or less typical office, of course, where a person named Jordan sits down and does his work. But it is not just an arm of B&M; it is an actual business, fully operational and (I assume) independent. A sign sits on the interior office window: "Palouse PC Computer Repair." A sign is a sure sign of independence.

The implication of this business within B&M is that B&M is the kind of place which independent businesses are intended to grow out of. In this way, it's much more like a business incubator than a workspace community. Yet it goes farther, because the full implications of the word "community" remain intact. It is the kind of place where "business incubator" and "workspace community" are fused inextricably together. This entirely new kind of concept, the likes of which I've never seen before, may represent a dramatic shift in the business dynamic of America.

There are three different phrases I've come up with to describe what B&M is. One is, "entrepreneurial bank." It's a bank, not of money, but of entrepreneurial spirit. Collected here at the workspace is a reserve of freelancing, independent, entrepreneurial spirit. See, Moscow is a young person's town, and a lot of college kids live here, many, if not most, of whom have an overabundance of entrepreneurial spirit. Some of that has found its way here, and so what we have is an excess of entrepreneurial spirit, which we then loan out to the world at large.

But the fact that it is gathered here in one place, in one specific building, is significant. It leads me to my next characterization: "non-academic university." In a university, each of the professors is pretty much independent, just like the workers here. Nevertheless, they organize themselves into co-working groups, which do research in teams for the purpose of furthering human knowledge. That is their goal. Strip out the "knowledge" part of that goal and replace it with the more general word "progress," and you basically have B&M—a non-academic university.

But my favorite phrase, because of its currency, involves the most groundbreaking human achievement of our age: the Internet. In this vein, B&M is an "entrepreneurial cloud." Just like Amazon's EC2 is a computing cloud, B&M is a cloud of entrepreneurs. But B&M hasn't yet realized what I believe is a serious groundbreaking prospect for this kind of place. An "entrepreneurial cloud," to be more like a "cloud computing platform," seems to indicate that the community at large here in Moscow, if they so choose, can upload specific limited-time requests to the cloud for the us to perform.

Say, for instance, that the Moscow Arts Commission, a wing of the Moscow City Government, decides they want to make Moscow, Idaho a national hub for the arts—just as, through the U of I's Lionel Hampton Jazz Festival, the city is a national hub for jazz music. What they could do, if our workspace grew big enough, is contact B&M with a request for proposal. B&M then, as a community, could identify each individual entrepreneur or freelancer in the workspace who has any applicable skill, and if they agree to sign on, contract with them to fulfill the goals of the Arts Commission. Once the goals are fulfilled, just like Amazon's cloud computer, B&M will return to its natural state, ready for another project. All further gruntwork, if there is any, would be taken up by a dedicated entity—probably a wing of the Moscow City Government, or the local arts business community, or whatever.

Now this idea in itself is exciting enough. But there is yet another exciting prospect based on a simple fact: B&M is made up not of computers, but of people. And people can actually originate goals, rather than merely fulfill them. It's still like a cloud, but more like a storm cloud, which makes lightening of entrepreneurial inspiration. The end result may perhaps be that Moscow Idaho, or any other city which seriously entertains this approach, will become among the most interesting places on the planet.

As said earlier, this is an entirely new idea. And it has stunning and broad-reaching implications. Like the Internet, it may harken in a completely new era in business. See, on the Internet, there are websites like the afore-mentioned oDesk—cloud-compute inspired businesses. oDesk's innovation is called "homesourcing:" businesses, anywhere in the world, can "homesource" work to any individual anywhere in the world, practically instantly. Thus a budding fashion design shop can quickly assemble a team of customer service agents without setting up a physical call center, for example. One agent may be in India, another may be in Idaho; it doesn't matter because it's all done "on the cloud."

But oDesk is different from B&M. While B&M stresses entrepreneurial spirit, oDesk stresses contracted labor. When you work at oDesk, you are very much working for a boss at a (more or less) established firm. But when you work at B&M, the assumption is, generally, that you are the firm. This isn't a rule, of course; anyone here can work for whomever they choose. But the point is that B&M is a hub for entrepreneurial spirit, whereas oDesk is a platform for contracted labor.

And both companies say something profound about us in the United States. Taken together, oDesk and B&M represent a new way of thinking, a dual modality of American labor. The old way of thinking goes like this: Nathan Foster applies for a job at CostCo. The new way of thinking goes like this: America applies for a job at America. Places like B&M, across the country (and yes, there is more than one place like this), form entrepreneurial ideas, and contract out to places like oDesk. Thus we can all contribute to a vast cloud of "business happenings" everywhere around the world, simultaneously.

That's the vision, anyway. And I believe the new way of thinking, more accurately and concretely than any discourse I've yet seen, expresses the American concept of "honor." Honor, to me, is loyalty plus leadership. And while in the old way of thinking these two were completely separate (i.e. the job applicant has loyalty while the employer has leadership), in this new age each individual can have both qualities simultaneously. A person can simultaneously contract with oDesk and originate ideas in exactly the same space, among exactly the same people. I can come from the cloud, into entrepreneurship, and go back into the cloud, seamlessly. This is the fundamental innovation these two businesses represent, and needless to say, I'm excited about the prospects of both.

Art and Business

In my filing cabinet at home, I have a dollar bill.

It is a special dollar bill. I had it when I was in the mental hospital years ago. When I was in that place, I had only a couple of dollars to my name. And every couple of days the hospital would send around a cart and allow you to give them your money for whatever they had for sale. I decided early on that while I would buy perhaps a couple of items, I would save exactly one dollar and never spend it. The mental hospital took away everything important to me—it took away my freedom, my dreams, my artistic capabilities. I was spiritually broke. I was NOT going to let them make me financially broke as well. So I saved that one dollar bill, and still have it to this day.

A lot of people do things similar to what I did. Businesses everywhere take the first dollar they earn, have it framed, and hang it on their walls. I think we're doing something very interesting when we do this.

See, when I took that dollar and decided not to spend it, I grew the United States economy by exactly one dollar. And now, to me, that dollar bill is worth more than $1. I would not sell it for $1 (or something worth $1)—if I ever do sell it, it will be for more than a dollar.

For me, personally, that dollar has increased my wealth. I can put a measurement on it: Say I'm not willing to let go of the dollar and all it means to me for less than $50. If that's the case, I have increased my personal wealth by exactly $49. And I would have grown the economy. See, when I bought the dollar bill for $1, I grew the economy by $1. The number on my bank account is decreased by $1. When I put the dollar back into circulation, I diminish the economy by $1. But when the other person buys it for $50, it grows the economy by $50, causing a net growth of $49.

Of course, so far, I've talked only about my personal wealth. I, personally, am not willing to sell that dollar for less than $50 (we're assuming). However, the real question is of course whether or not someone else agrees with me. Otherwise, it's ridiculous to say I've grown the economy. I may have grown my own psychological economy, but I haven't grown the U.S. economy. Getting others to agree is a work of art.

By saving this particular dollar, I am making an artistic statement brimming with social commentary. That dollar is fine art. It tells a story involving one man and the mental health system. It gives a moral lesson of patience and frugality. It criticizes systemic exploitation in the psychiatric establishment. It has a happy ending: I left the hospital victorious because I didn't spend it. And it improves the value of the person who buys it: They can hang it on their wall now and share in my triumph against the system. (If they buy my story about it, that is.)

This is why I am somewhat confused that our economy isn't an art-based economy. In fact, people often claim, falsely, that we need to be less "artistic" about our economy and produce more physical things in factories. I can't think of anything more Marxist and further from the truth. When you produce physical things, you're stealing wealth from the Mother Earth and selling it for hardly any more value than it was worth in the first place. This is what China does: the Communist Party extracts wealth from their banks, who extract wealth from the workers, who extract wealth from the Earth. There's no growth, regardless of what the numbers say: it's just exploitation. When you make art, however, whatever you do is nothing but pure added value. If you're an artist, the materials you work with, whatever they are, are worth hardly anything compared to the worth of the final piece of art. China's Communist Party could never allow this, because it gives so much wealth and power to individual artists, when they want all the wealth and power for themselves. So why on Earth is our economy so eager to profit off of stuff other than art while almost completely ignoring this treasure trove of business opportunity?

For whatever reason, we have not developed the infrastructure necessary for an art-based economy. Certain art forms have taken some steps, of course—Western music is based on the accumulation of hundreds of years of deep meditation and hard work. The twelve-tone musical system and our system of musical notation have allowed for extremely complex and rich musical ideas unmatched by any other culture. In music from other cultures, it's rare to find even basic harmony, let alone key changes, because in their musical systems such concepts don't make any sense. They have spent less time developing their musical infrastructure.

Fashion has had a similar experience. (Well, women's fashion at least. Which is why I wear women's clothes so often. Shh.) Before Louis IV, people wore traditional dress which remained unchanged for years. But to increase the glory of the kingdom, I suppose, they began to think of ways to change the fashion of the time. Now, as a result of developments in the fashion art's artistic infrastructure, we have a kind of fashion grammar rich with all kinds of innovative concepts (collars, collar stands, a-line forms, shifts, hour-glass forms, etc.) This rich array of elements in the art's infrastructure is what allows our fashion to be so complex, exciting, and ever-changing.

So in a couple of art forms, some basic infrastructure has been developed. The business infrastructure may also be developed to some extent, but, I would argue, not enough.

Think of the things investors look at before they invest in a business. They look at the psychological characteristics of the CEO. Are they a leader? Do they have drive? Are they motivated? Excited? Do they work well with others? The answers to these questions determine whether or not the company will succeed. They look at the product. Is it something people want? Does it satisfy a need? If they put it on a shelf, will it move? They look at history. Has this person ran successful businesses in the past? Have products like this sold well in the past? They look at the research. Is there concrete, empirical evidence that the product will sell? They also look at the intent. Does the company have a solid plan moving forward? Does this plan take into account incomes and costs? When investors look into these things, in depth, they can gauge how much they and the economy will benefit.

See, when we think of artists, we have this notion that you just go out into the world and be yourself and somehow, unexplainably, end up being brilliant and make tons of money. I think this is nonsense. What is someone buying when they buy your art? If you can't answer that question, I'm sorry, but you shouldn't become an artist. Imagine if we treated businesses this way. "I'm going to be a businessman. I'm going to go out in the world, be myself, and make a business that's brilliant in some unexplainable way, and people will be inspired for some unexplainable reason, and I'll make tons of money." I wouldn't invest in this person, would you?

People don't buy art just because you're so awesome they can't stand not spending their money on you. But I think people tend to think this is how it works. So what we need to do, then, is think less about what art says about the artist, and more about what it says about the person who spends money on it. This means that instead of being subjective, we must be objective. I know... that sounds sacrilegious. But it's true. I make movies as well as music. But I invest more in my movies than my music. Why? Because the people who listen to music want to have a shared experience with their friends and their communities, which usually implies a live performance. And I can't perform my music live. So I know no matter how good the music is, it's never going to sell. The only way it would sell is if it were so popular that a shared experience would be implied regardless of whether or not it's live.

Movies, on the other hand, play a slightly different cultural role. If people wanted a shared experience of film and video, there would've never been such a thing as television, and people wouldn't sit alone in dark rooms at night trancing out in front of it. Yes, I know, there is also radio. But how do people listen to music on the radio? In their cars, with the windows rolled down, and as loud as possible! They obviously want to share their experience! But people who watch television, on the other hand, don't do it with the curtains self-consciously drawn. So I've made a business decision: I'm going to invest in film more than music.

And another thing: I'm not going to even think of distributing my films with a distributor without some kind of business sense about whether or not the stuff would sell. Otherwise, I'm wasting everybody's time.

This is how we artists need to think. We need to think of art as a business, objectively, with detailed numerical measurements of potential for making money. If we do this, we can grow ourselves and the economy. And, by the way, we won't in any way diminish our creativity or value as an artist. Creativity is not measured by how "true to ourselves" we are. It is measured by how inspired the work is. And how inspired the work is is measured by how inspired people are by looking at it. How inspired we are is merely a convenient way of gauging whether it will inspire others. And, by the way, if it inspires others, it'll sell. We need to think about this. If we don't, we're wasting everybody's time.