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I'm worried about AI psychosis. Specifically, I'm worried about the psychosis that makes our "capital allocators" spend $1.4T on the money-losingest technology in the history of the human race, in pursuit of a bizarre fantasy that if we teach the word-guessing program enough words, it will take all the jobs. That's some next-level underpants-gnomery:
The thing that worries me about billionaires' AI psychosis isn't concern for their financial solvency. No, what I worry about is what happens when the seven companies that comprise a third of the S&P 500 stop trading the same $100b IOU around while pretending it's in all of their bank accounts at once and implode, vaporizing a third of the US stock market.
My concern about a massive collapse in the capital markets isn't that workers will suffer directly. Despite all the Wonderful Life rhetoric about your money being in Joe's house and the Kennedy house and Mrs Macklin's house, the reality is that the media 95% US worker has $955 saved for retirement. You could nuke the whole financial system and not take a dime out of most workers' pockets:
No, the thing that has me terrified about AI is that when it craters and takes the economy with it, that we will respond the same way we have during every financial crisis of the 21st century: with austerity, and austerity breeds fascism.
There's a direct line from every K-shaped recovery to every strong-man who's currently sending masked gunmen into the streets. The Hungarian dictator Viktor Orban rose to power after people who'd been suckered into denominating their mortgages in Swiss francs lost their houses when the currency markets moved suddenly, because the swindlers who'd sold them those mortgages took the position that wanting to live somewhere automatically made you an expert in forex risk, so caveat fuckin' emptor, baby.
Back in America, Obama decided to bail out the banks and not the people. His treasury secretary Tim Geithner told him the banks were headed for a catastrophic crash and could only be saved if he "foamed the runways" with everyday Americans' mortgages. Millions of Americans lost their homes to foreclosure as banks, flush with public cash, threw them out of their homes and then flipped them to investment banks who became the country's worst slumlords:
Americans were understandably not entirely happy with this outcome. So when Hillary Clinton replied to Donald Trump's "Make America Great Again" with "America is already great," her message was, "Vote for me if you think everything is great; vote for Trump if you think everything is fucked":
"Austerity begets fascism" is one of those things that makes a lot of intuitive sense, but it turns out that there's a good empirical basis for believing it. In "Public Service Decline and Support for the Populist Right" four economists from the LSE and Bocconi provide an excellent look at the linkage between austerity and support for fascists:
https://catherinedevries.eu/NHS.pdf
Here's how they break it down. Political scientists have assembled a large, reproducible body of evidence to show that "public service provision is crucial to people’s perceptions of their quality of life and living standards." Good public services are the basis for "the social contract between rulers and the ruled" – pay your taxes and obey the laws, and in return, you will be well served.
When public services go wrong, people don't always know who to blame, but they definitely notice that something is going wrong, so when public services fail, people stop trusting the state, and that social contract starts to fray. They start to suspect that elites are lining their pockets rather than managing the system, and they "withdraw their support" for the system.
Fascists thrive in these conditions. Fascists come to power by mobilizing grievances. By choosing a scapegoat, fascists can create support from people who are justifiably furious that the services they rely on have collapsed. So when you can't get shelter, or health care, or elder care, or child care, or an education for your kids, you become a mark for a fascist grifter with a story about "undeserving migrants" who've taken the benefits that should rightly accrue to "deserving natives."
(This is grimly hilarious, given that the wizened, decrepit rich world is critically dependent on migrants as a source of healthy, working-age workers who pay massive amounts into the system while barely making use of it, many of whom plan on retiring to their home countries when they do reach the age where they're likely to extract a net loss to the benefits system.)
Enter the NHS, a beloved institution that is hailed as the pride of the nation by both the political left and the right. The majority of Britons use the NHS, with only 12-14% of the population "going private," so when the NHS declines, everybody notices (what's more, even people with private care use the NHS for many of their needs).
Britons love the NHS and they want the government to spend more on it. There's "a broad public consensus that the government is not going far enough when it comes to funding." That's because generations of cuts to the NHS have left it substantially hollowed out, with major parts of the service handed over to for-profit entities who overcharge and underserve.
The most tangible and immediate evidence of this slow-motion collapse comes when your local general practitioner ("family doctor" or "primary care physician" in Americanese) shuts down. The UK has lost 1,700 GP practices since 2013.
Reasoning that a GP closure would make people angry at the system, the economists behind the paper wanted to see what happened to people's political beliefs when their GP's office shut. They relied on the GP Patient Survey, a longitudinal study run by NHS England and Ipsos Mori. The survey asks a statistically significant random sample of patients from every GP practice in the NHS and then weights the results "to reflect the demographic characteristics of the local population according to UK Census estimates." It's good data.
The researchers cross-referenced this with various high-quality instruments that measured the political views of Britons, like the U Essex Understanding Society Panel, drawing on 13 years' worth of surveys from 2009-2022, gaining access to a protected version of the dataset with fine-grained geographic information about survey respondents, which allowed them to link responses to the "catchment areas" for specific GPs' office. They combined this data with the British Election Study panel, which has surveyed voters 29 times since 2014.
Most of the paper describes the careful work the researchers did to analyze, cross-reference and validate this data, but what interested me was the conclusion: that people who see a severe degradation in the quality of the services they rely on switch their political affiliation to one of Britain's fascist parties – UKIP, the Brexit Party, or Reform – parties that have called for ethnic cleansing in Britain.
This is what has me scared. We can see the looming economic crises in our near future. If it's not the AI crash that triggers the next wave of austerity, it'll be the oil crisis created by Trump's bungling in the Strait of Epstein. And of course, we could always get a twofer, because the Gulf States that were pouring hundreds of billions into AI data-centers now need every cent to rebuild the LNG shipping terminals and oil refineries that Iran blew up after Trump, Hegseth and Netanyahu started murdering all the schoolgirls they could target. Once they nope out of the AI bubble, that could trigger the collapse.
This is a study about the NHS, but it's not just about the NHS. It's perfectly reasonable to assume that people react this way when they experience cuts to their road maintenance, their schools, their community centers, and any other service they rely on. Fascism – what Hannah Arendt called 'organized loneliness' – can only take root when people stop believing that their society will reward their lawfulness with an orderly and humane existence.
The crisis is coming, but whether we do austerity when it gets here is our choice. Everywhere we turn, political leaders are rejecting generations of failed austerity in favor of "sewer socialism" – the idea that you get people to trust their government by earning that trust. Zohran Mamdani is fixing 100,000 potholes in the first 100 days, despite the multi-billion dollar deficit that outgoing Mayor Eric Adams created by "running the city like a business":
In Canada and the UK, party leaders like Avi Lewis (NDP) and Zack Polanski (Greens) are vowing to fight the coming crises by spending, not cutting. Compare that with UK fascist leader Nigel Farage, who says that if he's elected, he'll create a "paramilitary style" British ICE, building concentration camps for 24,000 migrants, with the hope of deporting 288,000 people per year:
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David Seymour, New Zealand’s neoliberal nightmare, went on national tv and told the country that the labour government’s school lunch program was serving unappealing “woke” foods that kids were throwing in the bin.
They were eating this:
They’re now eating this:
Turns out you can’t turn <$8 a serving into <$3 a serve without serving the poorest kids in the county literal slop.
Austerity in action. We did this so landlords like our Prime Minister don’t have to pay their taxes when they profit off selling assets in their property portfolio.
He’s since sold three houses.
That profit came directly from the mouths of hungry kids.
This is why you shouldn’t make businessmen your Prime Minister (or president).
As the price of food and other basics soars, more people are shoplifting. While some see stealing as necessary, for others it’s a form of resistance. Sophie K Rosa reports.
Shoplifters who spoke to Novara Media said the cost of living crisis had pushed them to steal more of life’s essentials. “A couple of times I’ve been on the verge of crying when I go to buy Sainsbury’s Basics apple and blackcurrant squash and realise the price has doubled in the past three months,” said John.
Lara, a culture worker from London, has started shoplifting groceries more frequently; she said it has become more socially acceptable in her circles. “I know that other people do it, and I’ve seen how other people do it, and that really helped,” she said. Previously, she avoided stealing because her upbringing and wider moralism had convinced her it was “a shameful thing” to do.
“Before, I would have described stealing as this really anti-Islamic thing to do,” she said. Shoplifting is also especially frowned-upon by “parents who come from a working-class or lower middle-class background,” she said, because of how classist ‘scrounger’ stereotypes “trickle down to how we surveil and shame each other.”
Nowadays however, Lara sees shoplifting as “one of the few guerrilla tactics we have available to us.”
Alan, a construction worker from London, who, like John and Anna, has been shoplifting around half his groceries in recent months, has “no moral qualms” about stealing from supermarkets. “I just think that the stuff in the world is ours, all of ours,” he said, “and that we’ve invented a really stupid system for the distribution of resources which doesn’t treat them as ours, and treats them as things that can be used for capitalists to make profit.”
He wouldn’t steal things if it meant that “someone’s labour went unrewarded”, he said, but all shoplifting affects is “the profits of shareholders” he said. “[I have] no concerns about that at all.”
[...]
While, for many, shoplifting feels like a form of resistance to untenable living conditions, no one who spoke to Novara Media was sure how to build solidarity between shoplifters. Alan shoplifts food for rough sleepers, but wishes there were more organised approaches to shoplifting – like the mass stealing and redistribution of food that occurred in Greece following the 2008 financial crisis.
Lara believes shoplifting could be “revolutionary” if it could be “more of an organised operation” that involved “getting workers on side”.
“I think it would be really radical if there would be a widespread recognition and acceptance of stealing as a necessary mechanism for resistance,” she says. “If you can’t afford the things that you have to buy, then the logic should be that you just take them.”
Royal aides say the rise is because of a Buckingham Palace building project and the funding will come down again.
"We're told public finances are tight, we can't afford a winter fuel allowance, but we can pay for an increase for the Royal Family. It's completely wrong."
In light of the conservative philosophy that "cuts = efficiency", consider:
A skeleton is not a more "efficient" body.
All other parts are needed for it to function.
Even "foreign bodies" live in symbiosis to form the flora on our skin and in our guts. Protecting us from infection and helping us better digest food. They are part of the body.
Even just bone and muscle is not enough when the means to sustain our energy needs are stripped out.
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Nigeria’s economic crisis deepens: Children facing death penalty for protesting cost of living
By Maggie Vascassenno
In Nigeria, 29 children aged 14 to 17 could face the death penalty after being arraigned in Abuja on Nov. 1 with 76 others for participating in protests against the country’s severe cost-of-living crisis.
The children were charged with multiple felonies, including treason and public disturbance, despite Nigeria’s Child Rights Act, which prohibits criminal proceedings against children or sentencing them to death. Bail was set at an impossible 10 million naira ($5,900) per defendant; some have endured 90 days in detention without adequate food.
Four children collapsed in court from exhaustion. They should be freed and allowed to unite with their families.
Nigeria, one of Africa’s top oil producers, continues to struggle with extreme poverty, rampant corruption, and high inflation. A significant portion of its 210 million people face food insecurity, and the inflation rate is at a 28-year high. Meanwhile, the government has implemented austerity measures at the behest of the World Bank, which is dominated by the U.S.
