2. Is Democracy a Design Problem?
Yes. But it’s a little complicated.
Cusp Conference 2009, Chicago - 09/16/09
Gong Szeto
@atomiota: twitter
Friday, September 18, 2009
6. Swaps, Forwards on Ford Credit vs. GM Credit
Hedge, Arbitrage using Futures on Steel, Light Crude; Options on Futures
Options on Stock
Stock, Bonds
META ECONOMY
Brand ~$105 Trillion
Production REAL ECONOMY
$13.8 Trillion
Product
“Redesigning Democracy” Cusp Conference 2009 Gong Szeto @atomiota
Friday, September 18, 2009
13. Want Democracy, Kill Democracy
“Uniting and Strengthening America by
Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism”
Friday, September 18, 2009
28. First, some people decide to have a democracy
Friday, September 18, 2009
29. They decide to create a system to govern themselves.
the many decide who those few are
Friday, September 18, 2009
30. Or, a few people decide that they can govern a people
Friday, September 18, 2009
31. And create a regime of the few to rule the many
Friday, September 18, 2009
32. Throughout history, we’ve seen many variations,
each with different emphases of state and economy
Gray = Predominance of The State over individual liberties both personal and economic
Blue = Predominance of an unencumbered “free marketplace” relative to role of The State
Friday, September 18, 2009
33. Throughout history, we’ve seen many variations,
each with different emphases of state and economy
Gray = Predominance of The State over individual liberties both personal and economic
Blue = Predominance of an unencumbered “free marketplace” relative to role of The State
State
State State
State
State
Economy
Economy
Economy
Economy Economy Economy
*: All these systems are all formal systemic responses to Capitalism, either PRO- or ANTI-
eg: definition of private property ownership and means of production ownership
Friday, September 18, 2009
34. There are formal names to these different systems
Fascist Authoritarian Socialist Democratic Libertarian Anarchism
State
State State
State
State
Economy
Economy
Economy
Economy Economy Economy
Friday, September 18, 2009
35. There are formal names to these different systems
Fascist Authoritarian Socialist Democratic Libertarian Anarchism
State
State State
State
State
Economy
Economy
Economy
Economy Economy Economy
Corporatist Planned-Mixed Mixed Regulated Unregulated Agorist
Capitalist Capitalist
Friday, September 18, 2009
36. Comparison of Political-Economic Systems
MORE STATE REPRESENTATIVE MORE INDIVIDUAL
Fascist Authoritarian Socialist Democratic Libertarian Anarchism
State
Economy
Theoretical
Corporatist Planned-Mixed Mixed Regulated Unregulated Agorist
Capitalist Capitalist
Friday, September 18, 2009
37. Comparison of Political-Economic Systems
ORDER EQUALITY LIBERTY
MORE STATE REPRESENTATIVE MORE INDIVIDUAL
Fascist Authoritarian Socialist Democratic Libertarian Anarchism
State
Economy
Theoretical
Corporatist Planned-Mixed Mixed Regulated Unregulated Agorist
Capitalist Capitalist
Friday, September 18, 2009
38. Comparison of Political-Economic Systems
Extreme Economic Extreme Personal
Liberty Liberty
Fascist Autocratic Socialist Democratic Libertarian Anarchic
Free Speech NO NO YES YES YES YES
Assembly NO NO YES YES YES YES
Religious Freedom NO NO YES YES YES YES
Free Press NO NO YES YES YES YES
Free Elections NO NO YES YES YES YES
Private Property NO YES YES YES YES YES
Production STATE MIXED MIXED FREE FREE FREE
Health Care STATE STATE MIXED FREE MARKET FREE MARKET FREE MARKET
Economy PLANNED PLANNED MIXED MIXED-FREE FREE FREE
# Political Parties 1 1 2++ 2 PRIMARY “1” 0
Raison d’etre? Nationalism Anti-class conflict Egalitarianism Liberty Gov’t Dangerous Gov’t Illegitimate
Friday, September 18, 2009
39. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State State
State
Economy
Economy Economy
Friday, September 18, 2009
40. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State State
State
Non-Profits
Non-Profits
Non-Profits
Economy
Economy Economy
Friday, September 18, 2009
41. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State State
State
Non-Profits
Non-Profits
Non-Profits
Economy
Economy Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
42. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State
$6K $47K $39K
State
State
Non-Profits
per capita per capita per capita
Non-Profits
Non-Profits
income Economy
income
Economy income
Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
43. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State State
$4.4T Non-Profits
$13.8T State
$338BNon-Profits
GDP GDP GDP
Non-Profits
Economy
Economy Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
44. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
$16B $27.4B $1.7B
State State
State
Non-Profits
Trade Trade Trade
Non-Profits
Non-Profits
Economy
Surplus Deficit
Economy Surplus
Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
45. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State
#57 #17 #4
State
State
Non-Profits
Least Least Least
Non-Profits
Non-Profits
Corrupt Economy
Corrupt
Economy Corrupt
Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
46. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State
#136 #18 #1
State
State
Non-Profits
Democracy Democracy Democracy
Non-Profits
Non-Profits
IndexEconomy
Index
Economy Index
Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
47. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State
8% 12% 0%
State
State
Non-Profits
below nat’l below nat’l below nat’l
Non-Profits
Non-Profits
poverty line poverty line poverty line
Economy
Economy Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
48. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
12 State
0
State 3
State
# times # times # times
Non-Profits Non-Profits
“democracy”
Economy “democracy”
Non-Profits
“democracy”
mentioned in mentioned in
Economy mentioned in
Economy
constitution constitution constitution
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
49. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
State State
Guns? Non-Profits Guns? State
Guns?Non-Profits
ILLEGAL Economy HELL YES Non-Profits
Economy
DEPENDS
Economy
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
50. Comparison of Political-Economic Systems
Communist Autocracy Representative Democracy Socialist Democracy
“Planned-Market” Economy “Free Market” Economy “Mixed” Economy
Capital
State Capital Capital
State
Punishment? Punishment?
State Punishment?
VARIES BY FORBIDDEN
Non-Profits Non-Profits
Non-Profits
Economy
STATE
Economy Economy
MOBILE
NO Civil Rights/Assembly YES Civil Rights/Assembly YES Civil Rights/Assembly
NO Freedom of Speech YES Freedom of Speech YES Freedom of Speech
NO Free Elections YES Free Elections YES Free Elections
NO Freedom of Religion YES Freedom of Religion YES Freedom of Religion
NO Free Press YES Free Press YES Free Press
YES Universal Health Care NO Universal Health Care YES Universal Health Care
SOME Private Property Rights YES Private Property Rights MOST Private Property Rights
YES Pursue Personal Profit YES Pursue Personal Profit YES Pursue Personal Profit
Friday, September 18, 2009
53. Democracy and Capitalism
“Buying In” and “Buying & Selling”?
Democracy Capitalism
Friday, September 18, 2009
54. Democracy and Capitalism
Mindshare and Marketshare?
Democracy Capitalism
Friday, September 18, 2009
55. Democracy and Capitalism
Moral Sentiment and Price Sentiment?
Democracy Capitalism
Friday, September 18, 2009
56. Democracy and Capitalism
Operating Principles and Operating Systems?
Democracy Capitalism
Friday, September 18, 2009
57. Two rulebooks
Wealth, Power, Status
Equality
Order Basic Needs, Survival
“Homo-Democraticus” “Homo-Economicus”
(~cooperation) (~competition)
Friday, September 18, 2009
58. Democracy and Capitalism
Democracy’s Two Main Concerns
Equality Order
Friday, September 18, 2009
59. Democracy and Capitalism
Applying Set Theory
Due Process Nat’l Defense
Civil Rights Justice
Equality Order
Gender Rights Police
Race Rights Rule of Law
Friday, September 18, 2009
60. Democracy and Capitalism
Applying Set Theory
Anti-Trust
Due Process Nat’l Defense
Finance Regulation
Civil Rights Justice
Contract Enforcement
Equality Economic Order
Equality + Order
Gender Rights Wealth Redistribution Police
Externalities
Race Rights Rule of Law
Social Nets
Friday, September 18, 2009
61. Democracy and Capitalism
LIBERTARIAN Democratic Capitalism LIBERAL Democratic Capitalism
(“Freedom to...”) (“Freedom from...”)
Economic Economic
Equality Order Equality Order
Equality + Order Equality + Order
Capitalism
Stronger
Minimum Regulations
Interference (Prevent Excesses)
(De-regulation)
Trade-off
Capitalism Maximum Economic Freedom
Liberty for Security
Market takes Emphasis on
care of most Social Safety Nets
things
Social Contract!
Social Contract...What’s That?
Friday, September 18, 2009
62. Ideological matrix that emerges from these
two rulebooks
State is Good
Left Right
State is Dangerous
Friday, September 18, 2009
63. Ideological matrix that emerges from these
two rulebooks
State is Good
Social Order: Nation Social Order: Community
Liberal Communitarian
Left Right
Personal Freedom Economic Freedom
Equality Order
Federal Government States Rights
Libertarian Conservative
Social Order: Individual Social Order: Tribe
State is Dangerous
Friday, September 18, 2009
64. Everyday Paradoxes
“I am against outsourcing American jobs” “I shop at Walmart”
“Homo-Democraticus” “Homo-Economicus”
Friday, September 18, 2009
65. Everyday Paradoxes
“I believe in strong anti-trust laws” “I own 1000 shares of Microsoft”
“Homo-Democraticus” “Homo-Economicus”
Friday, September 18, 2009
66. Everyday Paradoxes
“The Corporatization of America is bad” “My clients are all Fortune 500”
“Homo-Democraticus” “Homo-Economicus”
Friday, September 18, 2009
70. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
physiological
air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
71. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
physiological
air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
72. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
physiological
air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
73. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
physiological
air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
74. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
physiological
air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
75. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
esteem
achievement, status, reputation, respect of/by others
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
Capitalism physiological
(freedom to consume, air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
allocation of capital)
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
76. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
Democracy esteem
achievement, status, reputation, respect of/by others
(tribe politics,
how to live together)
belongingness and love
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
Capitalism physiological
(freedom to consume, air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
allocation of capital)
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
77. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
Democracy esteem
(tribe politics,
how to live together)
Robust, Resilient Systems
achievement, status, reputation, respect of/by others
belongingness and love
and Experiences
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
Capitalism physiological
(freedom to consume, air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
allocation of capital)
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
78. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
Democracy esteem
(tribe politics,
how to live together)
Robust, Resilient Systems
achievement, status, reputation, respect of/by others
belongingness and love
and Experiences
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
Capitalism physiological
(freedom to consume, air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
allocation of capital)
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009
79. transcendance
helping others
to self-actualize
self-
actualization
personal growth, self-fulfillment
aesthetic
beauty, balance, form
Where Design Lives
cognitive
knowledge, meaning, self-awareness
Democracy esteem
(tribe politics,
how to live together)
Robust, Resilient Systems
achievement, status, reputation, respect of/by others
belongingness and love
and Experiences
family, affection, relationships, work group
safety
protection, safety, order, law, limits, stability
Capitalism physiological
(freedom to consume, air, food, drink, shelter, warmth, sex, sleep, exercise, freedom from disease
allocation of capital)
Maslow’s Hierarchy of Needs
Updated (1990’s)
Friday, September 18, 2009