[ldubost]

> So the dynamics have always existed in previous platforms, it's just been ratcheted up to a higher level with social media.

I remember a friend saying the "optimization is killing us". The whole economy is getting better at what it does and as it happens there are many side effects.

Those with no ethics will manage to harvest the social media technology for their profit and not for society. It applies also to taxes where companies are getting master at dodging them. Liers are getting masters at lying and we have to fight to rebuke the lies (the documentary has a quote about how much more effort is required to fight disinformation than to create it)

He also argues that optimization is poison to yourself ! But that's off subject.

[TeMPOraL]

Optimization per se isn't the problem, much like thinking isn't (and arguably one is quite likely synonymous to the other at a fundamental level). The problem is with what you optimize for, and how hard.

So most companies aren't optimizing for a goal of "maximize our pockets AND maximize world happiness AND maximize the value our users get from us" with a proviso to not optimize too hard, so that unknown but desirable values that aren't expressed in the goal function don't get optimized away. No, they just optimize for "maximize our pockets", and do it hard. And when they do it like this, any sense of ethics or dignity is one of the first to fly out of the window.

Similarly, the optimization being "poison to yourself" is not as much a danger of optimization per se - wanting to improve yourself is a useful and noble desire! The problems usually start when you focus on a narrow goal too hard, to the exclusion of everything else in your life.

As for the market and how things are: my belief is that we're in a tipping point where the market, as an optimizer, is getting out of control and needs to be reined in. It's worth remembering that the main force behind market optimization is competition - I'll find a new trick to undercut you, you'll find a new trick to undercut me further, etc. until we reach diminishing returns, and the price of goods/services settles at barely above costs. Here are things I strongly believe to be true (and rather self-evident) about competition:

1) In a competitive environment, once one party figures out a trick that gives them advantage, everyone else has to do the same or risk getting outcompeted.

2) You don't have to compete only on production efficiency - you can also compete on quality (in the direction of getting away with lower quality for the same, or slightly lower, price), on business models, on ethics (any ethical principle you can skirt will open up new avenues for free profit), on advertising, on adherence to laws, etc.

So over the past centuries, the market had a lot of low-hanging fruits to pick. New materials, new processes, economies of scale, innovations in transport - all allowed to provide better goods for less. But now, I believe, we've run out of these easy wins - most competition happens on the grounds of lowering quality, business models (Everything as a Service, DRM, razor-and-blades, etc.), ethics (see e.g. social media companies), advertising (better RoI than making marginally better product), legality (Ubers and AirBnBs of the world running on a "break laws, and use VC money to keep regulators at bay until the market is cornered and competitors are destroyed").

The market is no longer optimizing us for giving us best possible goods at lowest possible price. Instead, it gives us worst sellable crap at highest possible price, by tacking on hidden and indirect costs.

That's why I'm increasingly in favor of regulating some business models out of existence - particularly the ad-subsidized everything, razor-and-blades everything, and "move fast and break laws" ones. The market's role in society is to make our lives better. The market has optimized past that. So the easy and socially destructive tricks need to be cut off, so that the market can return to optimizing for betterment of consumers.

[thu2111]

they just optimize for "maximize our pockets", and do it hard

That's not the case.

Consider the purest examples: Google routinely incorporates factors beyond short term profit into their ranking functions. For instance they ranked SSL using websites higher than non-SSL using websites, to encourage use of encryption. The ads "quality score" system penalises advertisers whose ads appear to be low quality, defined by users not finding them useful. The constant shovelling of social justice themes into the search engine homepage.

The biggest problem these firms have is that they are not focused exclusively on maximising profit. Profit is an excellent metric! It is the sum of all the happiness and utility you are creating across all your customer and userbase, minus effort expended, in a single quantifiable number. Think of all the happiness created by Apple, Amazon, Google and yes even Facebook and Twitter. Hundreds of millions of people use the services of these firms, often for free, and they use it because they like it.

The problem big tech firms have is they explicitly got on board with "let's maximize world happiness" as a goal. Dumb dumb dumb. Nobody agrees what world happiness is, but there sure are a lot of activists who will always be convinced you're not doing enough about it. Once you go down that path you'll never stop walking, and the further you walk, the more abusive the activists get. It's so subjective and unquantifiable you can never tell if you've done enough.

my belief is that we're in a tipping point where the market, as an optimizer, is getting out of control and needs to be reined in

Isn't that just a classical Marxist or Malthusian collapse proposal? People have been predicting that capitalism will somehow collapse in on itself for hundreds of years, it never has because it's a fundamentally natural, evolved and stable system. The alternatives, not so much.