#Government contracting consultants US
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mikhrali · 11 months ago
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Unlocking Opportunities: Navigating American Government Contracting
In the vast landscape of business-to-government dealings, American government contracting stands out as a pivotal arena for enterprises aiming to secure lucrative opportunities. The process involves private businesses providing goods and services to federal, state, or local government agencies. This symbiotic relationship between the private sector and the government is not only integral to the functioning of the nation but also presents significant prospects for businesses.
American government contracting is a dynamic and complex system that requires a comprehensive understanding of regulations, compliance standards, and competitive landscapes. To successfully navigate this intricate environment, businesses must be adept at identifying opportunities, submitting compelling proposals, and adhering to stringent procurement processes.
One of the key aspects of business-to-government dealing is the bid proposal. Companies vying for government contracts must craft well-researched and persuasive proposals that clearly articulate their capabilities, experience, and cost-effectiveness. The federal government, in particular, follows a meticulous process that involves detailed evaluation criteria. This is where businesses need to showcase not only their expertise but also their commitment to meeting the unique needs of government agencies.
In recent years, there has been a concerted effort to streamline the American government contracting process and promote fairness and transparency. Various government initiatives aim to create a level playing field for businesses of all sizes, fostering competition and innovation. This evolution has resulted in a more accessible environment for small and minority-owned businesses to participate in the procurement process.
American government contracting spans a wide range of industries, from information technology and defense to healthcare and infrastructure development. As businesses explore these diverse sectors, they must be mindful of the regulatory framework governing each. Federal Acquisition Regulations (FAR) and agency-specific guidelines set the rules for engagement, and compliance is paramount for success in this arena.
Navigating the landscape of business-to-government dealing requires strategic planning and a proactive approach. Businesses should continually monitor government procurement websites, attend industry events, and build relationships with procurement officers. Establishing a strong network within the government contracting community can open doors to valuable insights and opportunities.
In conclusion, while the landscape of American government contracting may seem challenging, it offers unparalleled potential for businesses willing to invest the time and effort required. By understanding the intricacies of the procurement process, crafting compelling proposals, and staying abreast of regulatory changes, enterprises can position themselves to thrive in this critical sector of the economy.
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Federal Government Contracts
Welcome to US Federal Government Contracts, grants and compliance solution consulting services, proposal & grant writing, NDAA, DCAA Audit, Flowdown, etc. We believe that contracting is one of ‘the next big things in the world of business. The networked world is causing a revolution in the way we acquire knowledge and information, the way that relationships are formed and the way that works gets done. Since contracts and ‘terms and conditions are a direct reflection of those relationships and the nature of the work we do for each other, they cannot possibly be immune from the impact of these changes. That is because the wider view of contracting is a critical contributor to the management of complexity.
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psdglobal · 2 years ago
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International Technology Sales | Trade Investment
PSD Global is an international consulting firm, focused on helping growing firms accelerate their international technology sales and business development. Just as when people seek partners for their life, strong friendships and bonds are created through a process of finding other individuals who are compatible, have common interests, and more importantly, common goals. Visit us http://www.psdglobal.com/trade-investment/
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margaretthatchersdead · 2 years ago
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Reasons to end the monarchy: Charles Edition
Well it's the coronation so you know what it's time for.
The entire concept of a monarchy is actively undemocratic. The head of state should not be someone who is only in that position because they were born into a certain family.
Having a monarchy upholds classism as a specific family of great wealth and power are viewed as superior to others.
They stand for a history of racism and imperialism. This country has done some truly terrible things in its history and the monarchy are a symbol of that. In order to attempt to begin to undo the harm that we have done, we need to remove this symbol of oppression.
The royal family have previously lobbied the government to hide their own personal wealth. Despite this, we are obviously aware that they have a large amount of wealth.
Prince Charles has himself lobbied the government on a number of occasions. His 'black spider memos' show that he has repeatedly pressured ministers on a wide range of topics from the Iraq war to badger culling to alternative therapies. He has used his power to lobby the government on subjects that would affect him.
The monarch does not occupy a ceremonial role as is frequently claimed. Ministers and civil servants have to consult the monarch. Civil servants have to get the consent of the royals on pieces of legislation, which can cause delays on implementation.
Even if the monarch did occupy a purely ceremonial role, as a literal billionaire he wields a ridiculously high amount of power over people.
Windsor Castle brings in less money than Windsor Legoland does. The many castles that are owned by the royal family could be used to create spaces for the public to enjoy or to be used as a shelter for the homeless. The Louvre in Paris used to be house of the French monarchy and gets over twenty times the tourists. Edinburgh castle hasn't had the monarchy live in it for centuries and yet still brings in tourism.
Prince Andrew is widely known to be connected to Jeffrey Epstein; yet he has not had to face any repercussions for his actions despite blatantly lying when being asked about his actions. The royal family have defended him and prevented him from facing the consequences of his actions.
They cost around £334 million per year. This money could be used to help the poor, given to the NHS, to repair and build infrastructure, to support small businesses that are struggling, pretty much anything.
The royal household publishes a much lower figure about the cost of the royal family, so they are actively trying to cover up their cost.
Charles has had access to confidential Cabinet papers, undermining our democracy.
He has publicly championed alternative medicine and has repeatedly promoted it. He sent at least seven letters to the Medicines and Healthcare products Regulatory Agency, that then shortly relaxed the rules governing the labeling of herbal products, ones he as part of Charles's Duchy Originals produces.
He lobbied the health secretary regarding greater provision of alternative treatments on the NHS.
In 2018, 46% of Britons wanted him to abdicate immediately after Elizabeth died. He’s barely wanted by the country even with the sheer amount of pro-monarchy propaganda going around. Charles specifically is very unpopular.
In order to speak to him, broadcasters had to sign a 15-page contract, which includes Clarence house attending the rough and fine cut edits of films and if unhappy can remove that contribution, as well as stipulating that all questions directed at him must be pre-approved and vetted by his representative.
His personal wealth is £1.8 billion. He inherited a large amount of this from Elizabeth, with it being exempt from inheritance tax. Having an immunity from this tax when others don’t is ridiculous.
The Duchy of Cornwall was named in the Paradise papers.
The coronation is going to cost £100 million during a cost of living crisis.
People have been banned from protesting Charles with official warning letters were sent to anti-monarchists.
Protestors who block roads, airports and railways could face an entire year behind bars. Locking yourself to others, objects or buildings could go to prison for six months and face an unlimited fine. Police are allowed to head off disruption by stopping and searching protestors that they suspect.
The public were encouraged to swear allegiance to the new King when he gets sworn in, this is a deeply disturbing suggestion.
He's a billionaire who's going to use the public's money to celebrate himself.
The monarch has sweeping immunity from many laws
He owns business parks and small rented cottages, six of the ten top residential homes, 285,000 acres of mineral rich land. He’s ridiculously rich in a country where so many people are facing extreme poverty.
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what-shitfuckery-is-this-ew · 11 months ago
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BOYCOTTING FOR PALESTINE
The Official BDS Boycott Targets
Campaigns
Block the boat: End maritime arms transfer to Israel
Ban Apartheid Israel from Sports (FIFA, Olympics)
CAF get off Israel's train: Boycott CAF
Greenwashing Apartheid
Israeli Spyware
Military Embargo
Farming Injustice
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Consumer Boycotts - a complete boycott of these brands
Cisco
Axa
Puma
Carrefour
HP
Siemens
Chevron
Intel
Caltex
Israeli produce
Re/max
Ahava
Texaco
Sodastream
Intel
Organic Boycott Targets - boycotts not initiated by BDS but still complete boycott of these brands
Disney
Macdonald's
Dominos
Papa Johns
Burger King
Pizza Hut
Wix
Divestments and exclusion - pressure governments, institutions, investment funds, city councils, etc. to exclude from procurement contracts and investments and to divest from these
Elbit Systems
CAF
Volvo
CAT
Barclays
JCB
HD Hyundai
TKH Security
HikVision
Pressure - boycotts when reasonable alternatives exist, as well as lobbying, peaceful disruptions, and social media pressure.
Google
Amazon
AirBnb
Booking.Com
Expedia
Teva
Here are some companies that strongly support Israel (but are not Boycott targets). There is no ethical consumption under capitalism and boycotting is a political strategy - not a moral one. If you did try to boycott every supporter of Israel you would struggle to survive because every major company supports Israel (as a result of attempting to keep the US economy afloat), that being said, the ones that are being boycotted by masses and not already on the organic boycott list are coloured red.
5 Star Chocolate
7Days
7Up
Apple
Arsenal FC
ALDO
Arket
Axe
Accenture
Ariel
Adidas
ActionIQ
Aquafina
Amika
AccuWeather
Activia
Adobe
Aesop
Azrieli Group
American Eagle
Amway Corp
Axel Springer
American Airlines
American Express
Atlassian
AdeS
Aquarius
Ayataka
Audi
Barqs
Bain & Company
Bayer
Bank Leumi
Bank Hapoalim
BCG (Boston Consulting Group)
Biotherm
Bershka
Bloomberg
BMW
Boeing
Booz Allen Hamilton
Burberry
Bath & Body Works
Bosch
Bristol Myers Squibb
Capri Holdings
Costa
Carita Paris
CareTrust REIT
Caterpillar
Coach
Cappy
Caudalie
CeraVe
Check Point Software Technologies
Cerelac
Chanel
Chapman and Cutler
Channel
Cheerios
Cheetos
Chevron
Chips Ahoy!
Christina Aguilera
Citi Bank
Codral
Cosco
Canada Dry
Citi
Clal Insurance Enterprises
Clean & Clear
Clearblue
Clinique
Champion
Club Social
Coca Cola
Coffee Mate
Colgate
Comcast
Compass
Caesars
Conde Nast
Cooley LLP
Costco
Côte d’Or
Crest
CV Starr
CyberArk Software
Cytokinetics
Crayola
Cra Z Art
Daimler
Dr Pepper
Del Valle
Daim
Doctor Pepper
Dasani
Doritos
Daz
Dior
Dell
Deloitte
Delta Air Lines
Deutsche Bank
Deutsche Telekom
DHL Group
David Off
Disney
DLA Piper
Domestos
Domino’s
Douglas Elliman
Downy
Duane Morris LLP
Dreft Baby Detergent & Laundry Products
Dreyer’s Grand Ice Cream
eBay
Edelman
Eli Lilly
Evian
Empyrean
Ericsson
Endeavor
EPAM Systems
Estee Lauder
Elbit Systems
EY
Forbes
Facebook
Fairlife
Fanta
First International Bank of Israel
Fiverr
Funyuns
Fuze
Fox News
Fritos
Fox Corp
Gatorade
Gamida Cell
GE
Glamglow
General Catalyst
General Motors
Georgia
Gold Peak
Genesys
Goldman Sachs
Grandma’s Cookies
Garnier
Guess
Greenberg Traurig
Guerlain
Givenchy
H&M
Hadiklaim
Huggies
Hanes
HSBC
Head & Shoulders
Hersheys
Herbert Smith Freehills
Hewlett Packard
Hasbro
Hyundai
Henkel
Harel Insurance Investment & Financial Services
Hewlett Packard Enterprise
HubSpot
Huntsman Corp
IBM
Innocent
Insight Partners
Inditex Group
IT Cosmetics
Instacart
Intermedia
Interpublic Group
Instagram
ICL Group
Intuit
Jazwares
Jefferies
John Lewis
JP Morgan Chase
Jaguar
Johnson & Johnson
JPMorgan
Kenon Holdings
Kate Spade
Kirks’
Kinley Water
KKR
KFC
KKW Cosmetics
Kurkure
Keebler
Kolynos
Kaufland
Kevita
Knorr
KPMG
Lemonade
Lidl
Loblaws
Levi Strauss
Louis Vuitton
Life Water
Levi’s
Levi’s Strauss
LinkedIn
Land Rover
L’Oréal
Lego
Levissima
Live Nation Entertainment
Lufthansa
La Roche-Posay
Lipton
Major League Baseball
Manpower Group
Marriott
Marsh McLennan
Maison Francis Kurkdjian
Mastercard
Mattel
Minute Maid
Monster
Monki
Mainz FC
Mellow Yellow
Mountain Dew
Migdal Insurance
Marks & Spencer
Mirinda
McDermott Will & Emery
Motorola
McKinsey
Merck
Michael Kors
Mizrahi Tefahot Bank
Merck KGaA
Micheal Kors
Milkybar
Maybelline
Mount Franklin
Meta
MeUndies
Mattle
Microsoft
Munchies
Miranda
Morgan Lewis
Moroccanoil
Morgan Stanley
MRC
Nasdaq
Naughty Dog
Nivea
Next
NOS
Nabisco
Nutter Butter
No Frills
National Basketball Association
National Geographic
Nintendo
New Balance
Nutella
Newtons
NVIDIA
Netflix
Nescafe
Nestle
Nesquick
Nike
Nussbeisser
Oreo
Oral B
Old spice
Oysho
Omeprazole
Oceanspray
Opodo
P&G (Procter and Gamble)
Pampers
Pull & Bear
Pepsi
Pfizer
Popeyes
Parker Pens
Philadelphia Cream Cheese
Pizza Hut
Powerade
Purina
Phoenix Holdings
Propel
Ponds
Pure Leaf Green Tea
Power Action Wipes
PwC
Prada
Perry Ellis
Prada Eyewear
Pringles
Payoneer
Procter & Gamble
Purelife
Pureology
Quaker Oats
Reddit
Royal Bank of Canada
Ruffles
Revlon
Ralph Lauren
Ritz
Rolls Royce
Royal
S.Pellegrino
Sabra Hummus
Sabre
Sony
SAP
Simply
Smart Water
Sprite
Schwabe
Shell
Soda Stream
Siemens
StreamElements
Schweppes
Sunsilk
Signal
Skittles
Smart Food
Sobe
Smarties
Sephora
Sam’s Club
Superbus
Samsung
Sodastream
Sunkist
Scotiabank
Sour Patch Kids
Starbucks
Sadaf
Stride
Subway
Tang
Tate’s Bake Shop
The Body Shop
Tesco
Twitch
The Ordinary
Tim Hortons
Tostitos
Timberland
Topo Chico
Tapestry
Tropicana
Tommy Hilfiger
Tommy Hilfiger Toiletries
Turbos
Tom Ford
Taco Bell
Triscuit
TUC
Twix
Tottenham Hotspurs
Twisties
Tripadvisor
Uber
Uber Eats
Urban Decay
Upfield
Unilever
Vicks
Victoria’s Secret
V8
Vaseline
Vitaminwater
Volkswagen
Volvo
Walmart
Wegmans
WhatsApp
Waitrose
Woolworths
Wheat Thins
Walkers
Warner Brothers
Warner Chilcot
Warner Music
Wells Fargo
Winston & Strawn
WingStreet
Wissotzky Tea
WWE
Wheel Washing Powder
Wrigley Company
YouTube
Yvel
Yum Brands
Ziyad
Zara
Zim Shipping
Ziff Davis
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mostlysignssomeportents · 7 months ago
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The specific process by which Google enshittified its search
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I'm touring my new, nationally bestselling novel The Bezzle! Catch me SATURDAY (Apr 27) in MARIN COUNTY, then Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!
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All digital businesses have the technical capacity to enshittify: the ability to change the underlying functions of the business from moment to moment and user to user, allowing for the rapid transfer of value between business customers, end users and shareholders:
https://pluralistic.net/2023/02/19/twiddler/
If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan
Which raises an important question: why do companies enshittify at a specific moment, after refraining from enshittifying before? After all, a company always has the potential to benefit by treating its business customers and end users worse, by giving them a worse deal. If you charge more for your product and pay your suppliers less, that leaves more money on the table for your investors.
Of course, it's not that simple. While cheating, price-gouging, and degrading your product can produce gains, these tactics also threaten losses. You might lose customers to a rival, or get punished by a regulator, or face mass resignations from your employees who really believe in your product.
Companies choose not to enshittify their products…until they choose to do so. One theory to explain this is that companies are engaged in a process of continuous assessment, gathering data about their competitive risks, their regulators' mettle, their employees' boldness. When these assessments indicate that the conditions are favorable to enshittification, the CEO walks over to the big "enshittification" lever on the wall and yanks it all the way to MAX.
Some companies have certainly done this – and paid the price. Think of Myspace or Yahoo: companies that made themselves worse by reducing quality and gouging on price (be it measured in dollars or attention – that is, ads) before sinking into obscure senescence. These companies made a bet that they could get richer while getting worse, and they were wrong, and they lost out.
But this model doesn't explain the Great Enshittening, in which all the tech companies are enshittifying at the same time. Maybe all these companies are subscribing to the same business newsletter (or, more likely, buying advice from the same management consultancy) (cough McKinsey cough) that is a kind of industry-wide starter pistol for enshittification.
I think it's something else. I think the main job of a CEO is to show up for work every morning and yank on the enshittification lever as hard as you can, in hopes that you can eke out some incremental gains in your company's cost-basis and/or income by shifting value away from your suppliers and customers to yourself.
We get good digital services when the enshittification lever doesn't budge – when it is constrained: by competition, by regulation, by interoperable mods and hacks that undo enshittification (like alternative clients and ad-blockers) and by workers who have bargaining power thanks to a tight labor market or a powerful union:
https://pluralistic.net/2023/11/09/lead-me-not-into-temptation/#chamberlain
When Google ordered its staff to build a secret Chinese search engine that would censor search results and rat out dissidents to the Chinese secret police, googlers revolted and refused, and the project died:
https://en.wikipedia.org/wiki/Dragonfly_(search_engine)
When Google tried to win a US government contract to build AI for drones used to target and murder civilians far from the battlefield, googlers revolted and refused, and the project died:
https://www.nytimes.com/2018/06/01/technology/google-pentagon-project-maven.html
What's happened since – what's behind all the tech companies enshittifying all at once – is that tech worker power has been smashed, especially at Google, where 12,000 workers were fired just months after a $80b stock buyback that would have paid their wages for the next 27 years. Likewise, competition has receded from tech bosses' worries, thanks to lax antitrust enforcement that saw most credible competitors merged into behemoths, or neutralized with predatory pricing schemes. Lax enforcement of other policies – privacy, labor and consumer protection – loosened up the enshittification lever even more. And the expansion of IP rights, which criminalize most kinds of reverse engineering and aftermarket modification, means that interoperability no longer applies friction to the enshittification lever.
Now that every tech boss has an enshittification lever that moves very freely, they can show up for work, yank the enshittification lever, and it goes all the way to MAX. When googlers protested the company's complicity in the genocide in Gaza, Google didn't kill the project – it mass-fired the workers:
https://medium.com/@notechforapartheid/statement-from-google-workers-with-the-no-tech-for-apartheid-campaign-on-googles-indiscriminate-28ba4c9b7ce8
Enshittification is a macroeconomic phenomenon, determined by the regulatory environment for competition, privacy, labor, consumer protection and IP. But enshittification is also a microeconomic phenomenon, the result of innumerable boardroom and product-planning fights within companies in which would-be enshittifiers try to do things that make the company's products and services shittier wrestle with rivals who want to keep things as they are, or make them better, whether out of principle or fear of the consequences.
Those microeconomic wrestling-matches are where we find enshittification's heroes and villains – the people who fight for the user or stand up for a fair deal, versus the people who want to cheat and wreck to make things better for the company and win bonuses and promotions for themselves:
https://locusmag.com/2023/11/commentary-by-cory-doctorow-dont-be-evil/
These microeconomic struggles are usually obscure, because companies are secretive institutions and our glimpses into their deliberations are normally limited to the odd leaked memo, whistleblower tell-all, or spectacular worker revolt. But when a company gets dragged into court, a new window opens into the company's internal operations. That's especially true when the plaintiff is the US government.
Which brings me back to Google, the poster-child for enshittification, a company that revolutionized the internet a quarter of a century ago with a search-engine that was so good that it felt like magic, which has decayed so badly and so rapidly that whole sections of the internet are disappearing from view for the 90% of users who rely on the search engine as their gateway to the internet.
Google is being sued by the DOJ's Antitrust Division, and that means we are getting a very deep look into the company, as its internal emails and memos come to light:
https://pluralistic.net/2023/10/03/not-feeling-lucky/#fundamental-laws-of-economics
Google is a tech company, and tech companies have literary cultures – they run on email and other forms of written communication, even for casual speech, which is more likely to take place in a chat program than at a water-cooler. This means that tech companies have giant databases full of confessions to every crime they've ever committed:
https://pluralistic.net/2023/09/03/big-tech-cant-stop-telling-on-itself/
Large pieces of Google's database-of-crimes are now on display – so much, in fact, that it's hard for anyone to parse through it all and understand what it means. But some people are trying, and coming up with gold. One of those successful prospectors is Ed Zitron, who has produced a staggering account of the precise moment at which Google search tipped over into enshittification, which names the executives at the very heart of the rot:
https://www.wheresyoured.at/the-men-who-killed-google/
Zitron tells the story of a boardroom struggle over search quality, in which Ben Gomes – a long-tenured googler who helped define the company during its best years – lost a fight with Prabhakar Raghavan, a computer scientist turned manager whose tactic for increasing the number of search queries (and thus the number of ads the company could show to searchers) was to decrease the quality of search. That way, searchers would have to spend more time on Google before they found what they were looking for.
Zitron contrasts the background of these two figures. Gomes, the hero, worked at Google for 19 years, solving fantastically hard technical scaling problems and eventually becoming the company's "search czar." Raghavan, the villain, "failed upwards" through his career, including a stint as Yahoo's head of search from 2005-12, a presiding over the collapse of Yahoo's search business. Under Raghavan's leadership, Yahoo's search market-share fell from 30.4% to 14%, and in the end, Yahoo jettisoned its search altogether and replaced it with Bing.
For Zitron, the memos show how Raghavan engineered the ouster of Gomes, with help from the company CEO, the ex-McKinseyite Sundar Pichai. It was a triumph for enshittification, a deliberate decision to make the product worse in order to make it more profitable, under the (correct) belief that the company's exclusivity deals to provide search everywhere from Iphones and Samsungs to Mozilla would mean that the business would face no consequences for doing so.
It a picture of a company that isn't just too big to fail – it's (as FTC Chair Lina Khan put it on The Daily Show) too big to care:
https://www.youtube.com/watch?v=oaDTiWaYfcM
Zitron's done excellent sleuthing through the court exhibits here, and his writeup is incandescently brilliant. But there's one point I quibble with him on. Zitron writes that "It’s because the people running the tech industry are no longer those that built it."
I think that gets it backwards. I think that there were always enshittifiers in the C-suites of these companies. When Page and Brin brought in the war criminal Eric Schmidt to run the company, he surely started every day with a ritual, ferocious tug at that enshittification lever. The difference wasn't who was in the C-suite – the difference was how freely the lever moved.
On Saturday, I wrote:
The platforms used to treat us well and now treat us badly. That's not because they were setting a patient trap, luring us in with good treatment in the expectation of locking us in and turning on us. Tech bosses do not have the executive function to lie in wait for years and years.
https://pluralistic.net/2024/04/22/kargo-kult-kaptialism/#dont-buy-it
Someone on Hacker News called that "silly," adding that "tech bosses do in fact have the executive function to lie in wait for years and years. That's literally the business model of most startups":
https://news.ycombinator.com/item?id=40114339
That's not quite right, though. The business-model of the startup is to yank on the enshittification lever every day. Tech bosses don't lie in wait for the perfect moment to claw away all the value from their employees, users, business customers, and suppliers – they're always trying to get that value. It's only when they become too big to care that they succeed. That's the definition of being too big to care.
In antitrust circles, they sometimes say that "the process is the punishment." No matter what happens to the DOJ's case against Google, its internal workers have been made visible to the public. The secrecy surrounding the Google trial when it was underway meant that a lot of this stuff flew under the radar when it first appeared. But as Zitron's work shows, there is plenty of treasure to be found in that trove of documents that is now permanently in the public domain.
When future scholars study the enshittocene, they will look to accounts like Zitron's to mark the turning points from the old, good internet to the enshitternet. Let's hope those future scholars have a new, good internet on which to publish their findings.
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If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan
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good-chimes · 4 months ago
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Based on @tibbycaps’s very funny convexian hitman au, where vexes Cub and Scar have been ‘voluntarily’ employed as hitmen by the governing NHO.
YR 1, DAY 1 OF CONTRACT
Receptionist: Hello and welcome to the NHO! We are proud to protect the citizens of Hermit City. How can I help you?
Cub: We want to get past those security barriers.
Receptionist: Uh…so you’re…visitors?
Scar: We’re employees!
Cub: Since this morning.
Scar: We have a contract and everything. We’re totally official and definitely allowed in the building.
Receptionist: Um. Do you have your passes?
Cub: Oh, yeah, yeah, of course. Just a moment.
Scar: Do we have passes! Of course we have passes. Cub, give her the passes.
Receptionist: Sir, that’s an aluminum bottle cap.
[The visitors examine the item.]
Scar: Looks like an employee pass to me.
Cub: My bad. What about this?
Receptionist: That’s a penknife. That’s a sandwich wrapper—that’s a library card—I mean, it’s the right shape, but—that’s a driver’s license which is obviously not yours—that’s a fifty-dollar bill—that’s a second driver’s license for a completely different person. Sir, literally none of these things are employee passes.
Cub: Yeahhhhh, but do you get paid enough to notice?
Receptionist: Do you have a line manager? Or, um, a hiring manager? Who’s in charge of you?
[The visitors consult.]
Scar: Someone is, probably.
Cub: Might be Beef.
Receptionist: Uh, Director Beef is, uh, one of the heads of the whole organization. Are you sure?
Cub: Eh.
Scar: He did have a nice suit. Good shoes, too! Shame about the soot stains afterwards.
Receptionist: Okay, I’ll…just ping my boss… and I guess we’ll just start the process to get you passes. Let me take your first and last names, please?
Scar: Mister Scar GoodTimes, and this is Cub.
Receptionist: Cub?
Cub: Yup.
Receptionist: That’s a nickname…?
Cub: No, it’s a full name. Cub. Uhhhhh. Fan.
Receptionist: Sir, did you just look at that baseball pennant?
Cub: Yeah. Huge coincidence.
Receptionist: Okay, I’ll send them to print…orientation booklet…fire exits…do you need any accommodations for your, er, your wings?
Cub: Naw, they’re not real in this dimension. Go straight through physical matter. Walls, people—
Scar: —bars, safe doors—
Receptionist: Um.
Cub: Vex joke. Cultural.
Receptionist: Oh, right, you’re Vex! Like—what were those guys called who ate that policeman on the news…? ConVex!
Cub: Noooooo, no, no, we’re nothing like them. We’re real upstanding citizens.
Scar: I heard those two went to prison.
Cub: To super jail.
Scar: For a thousand years!
Manager: Excuse me, I’m the head of front desk and security, what’s going on here?
Receptionist: Oh, hi, boss, these gentlemen were just—
Manager: I can see what they are! This should have been escalated as soon as they turned up. You should have known to call me the minute you saw a Vex!
Receptionist: They haven’t done anything wrong.
Manager: Not done anything wrong—you mean they haven’t eaten anyone yet.
Cub: I haven’t had my coffee.
Scar: I have! Who do you want us to start with?
Manager: Come with me, please. The Directors want to see you.
Scar: [voice retreating as the visitors are escorted away] This is a fancy office. I like the art.
Cub: Did you know you can turn that photocopier into a laser canon?
Manager: This is why they put you in prison! Stick close to me! Please stop touching things!
NOTICE TO FRONT DESK STAFF
The copier tray is to be loaded from the correct angle only. It is not a ‘useless piece of shit’, you are handling it incompetently.
HR will not be dealing with complaints of ‘substandard management’. HR are here to deal with your pay slips. Complaints of substandard management should be addressed to your manager, who will take appropriate action.
Colleagues are to act with caution around new NHO agents ‘Cub’ and ‘Scar’. Minimal contact is advised. Security can be contacted via the panic buttons.
YR 1, DAY 36 OF CONTRACT
Cub: Hey. Picking up a delivery.
Receptionist: Of course, sir. Have you got a parcel ticket?
Cub: Sure, give me an example and I’ll forge you one right now.
Receptionist: I just needed the number—never mind. Let me take a wild guess based on your deliveries so far: is it the crate that’s green and glowing?
Cub: Huh, thought it would be blue. Maybe a kind of teal.
Receptionist: Well, we only have one that glows. It makes a buzzing sound when you get near it.
Cub: Ohh yeah, that’s the one.
Receptionist: Last time you got a delivery it was snakes.
Cub: Important experimental material.
Receptionist: Can you let us know if it’s snakes again? Only I need to find a heat lamp if you’re out on a mission.
Cub: Oh, yeah, right. I can build a heat lamp for you to keep here. You want something for it?
Receptionist: Okay, sir, for the last time, I don’t know where all your unmarked fifty-dollar bills come from, but it’s not normal to bribe building staff to do our jobs. 
Cub: Yeah? No deal, huh?
Receptionist: …Can you really turn the photocopier into a laser?
NOTICE TO FRONT DESK STAFF
URGENT: ALL STAFF MUST STAY AWAY FROM THE PHOTOCOPIER UNTIL FURTHER NOTICE
YR 1, DAY 82 OF CONTRACT
Receptionist: Good afternoon, welcome to the headquarters of NH—Scar?
Scar: Hello there! How’s it going?
Receptionist: Hey, Scar?
Scar: Uh-huh?
Receptionist: Your whole arm is covered in blood.
Scar: Blood? Oh, this blood? Don’t worry, don’t worry, everything’s fine. It’s not my blood. How was your weekend?
Receptionist: Are you sure it’s not your blood? That looks like someone sliced through your whole sleeve!
Scar: [tastes his own arm gingerly] Wait, yeah, some of it is mine. Just this bit, though.
Receptionist: Don’t eat it, oh my God.
Scar: It’s fine, Cub says we’re immune to all pathogens.
Receptionist: Seriously?
Scar: Nah, I think he just said that because I took his research away from him when he had the flu.
Receptionist: You should go wash that wound. That can’t be healthy. What have they got you doing out there?
Scar: Oh, y’know, this and that, we solve problems. We’re problem solvers. In fact we signed a contract to do that, so I guess we keep solving problems forever. Can I have one of these mints?
YR 1, DAY 145 OF CONTRACT
Cub: Gooood afternoon. What a beautiful day. Y’know, this kind of day makes me think, the thing about human perception—
Receptionist: The what.
Cub: The thing about human perception is it’s subjective. I did a PhD on this. So sometimes you could think you saw someone bring something into the office that you need to write down in the biohazards register, but actually, you could report to your boss there wasn’t anything there.
Receptionist: Sir, you are trying to hide an eight-foot-tall Venus fly trap behind your back. It’s taller than you are.
Cub: Seven foot at most.
Receptionist: [sighs] I guess I didn’t see anything. You want a mint?
NOTICE TO FRONT DESK STAFF
Cascaded from Legal: Employees are required to familiarize themselves with the new and expanded Dispute Resolution Policy.
Pursuant to this, threatening to eat your senior manager is NOT an approved method of settling conflicts and WILL result in disciplinary action.
Lava traps are ALSO EXPLICITLY DISALLOWED.
YR 2, DAY 407 OF CONTRACT
Receptionist: Cub, you don’t have to bribe me to get into the building after hours. You literally work here. I know you have a 24-hour pass. Just use it on the main door.
Cub: Yeah, but where’s the fun in that?
Receptionist: Try bribing an IT tech for codes to the secure areas instead.
Cub: Got those already. Phishing email. But y’know, all the techs make triple what they pay you.
Scar: And! I wanted a mint.
Receptionist: The mints are FREE.
Scar: It tastes better if it’s not!
Receptionist: That doesn’t make ANY sense! You two get back here and explain!
NOTICE TO FRONT DESK STAFF
Please find attached the Employee Satisfaction Survey. As always, we look forward to listening to your views to make NHO a Great Place To Work. Participation is mandatory.
Our recent payment settlement unfortunately means no raises this financial year.
Operational note: does any Front Desk team member know how to disconnect the ex-photocopier from the power supply without it immediately blowing up? You are all being very unhelpful about it???
YR 3, DAY 763 OF CONTRACT
Receptionist: Oh, hey, Scar.
Scar: …
Receptionist: Wait—Scar? Buddy? Are you okay?
Scar: Have you seen Cub?
Receptionist: Not since last week, I think.
Scar: Oh.
Receptionist: It’s the night shift. Was he supposed to meet you?
Scar: Yeah. They gave him a solo mission, and I dunno what time he was supposed to get back, either, but it wasn’t two o’clock in the morning. I’m just gonna…hey, can I wait down here? Until he gets in?
Receptionist: Sure. If you pull the chairs together, I guess you could make a kind of bed. I’ll keep an eye on the cameras.
-
Scar: I mean, nothing can take down Cub, right? That man’s a tank, I tell you. A genuine tank.
Receptionist: Yeah. Definitely.
Scar: He would have called me if something went wrong.
Receptionist: He would’ve.
Scar: What time is it?
Receptionist: Just gone 3am.
-
Receptionist: Look, if you’re not going to sleep, I’m ordering you pizza.
Scar: Ooooh. Let’s get wings and make a night of it while we wait. Catch!
Receptionist: This is two hundred dollars.
Scar: Yeah, can we get sides?
-
Receptionist: Just gone 4am, before you ask.
Scar: I didn’t ask!
Receptionist: I saw you open your mouth. You’re really worried, aren’t you.
Scar: Noooo, I’m not worried. I never worry about Cub.
Receptionist: Cub’s always seemed way too capable to have a problem with a mission.
Scar: Yeah.
Receptionist: You two go back a long way, huh?
Scar: There’s just the two of us. It’s always been just the two of us. And, I’ll be honest, I like this work, we have fun doing it, but why’d they send him out solo? And you know what’s worse, I can’t even ask! If we put a foot out of line, we— [breaks off into a coughing fit]
Receptionist: Are you okay?
Scar: I’m fine, I’m fine! I’m fresh as a daisy.
Receptionist: It sure sounded like your own throat just tried to cut you off.
Scar: Well, maybe I just care a lot about the office Data Combustion Policy.
Receptionist: I think you mean the Data Protection Policy? On second thoughts, I remember last year’s Christmas party, so maybe not—oh, hey.
Scar: What?
Receptionist: I saw something on the cameras, is that—
Cub: Yo.
Scar: Oh my God Cub I was so worried.
Cub: ‘m fine. [blurrily] Are those buffalo wings?
Scar: You are so not fine. You can have wings when you’re lying down!
Cub: ‘m taking these wings.
Receptionist: Here’s the first aid kit. You need to close the bag or the rest of the wings will fall out, guys. Guys. Look where you’re going. You have to open the doors before you go through them. Take the first aid kit with you!
YR 5, DAY 1561 OF CONTRACT
Receptionist: Good morning, and welcome to—oh, it’s you two. You brought a guest?
Cub: Howdy. This is Grian.
Grian: Apparently I work here now. Apparently I have “limited employment options”. Someone told me I’m lucky I’m not dead.
Scar: Haha, Mondays, am I right! So he’ll need a pass, and maybe a helping hand if she spaces out in the atrium.
Receptionist: Sure…oh, Grian, you’re on the system already. Here, take a temporary pass, and we’ll have your real one ready by lunchtime. Uh, if you need any help—
Grian: Wait, my date of birth is wrong on your screen. It’s the year before.
Receptionist: Did you just…read that backwards from the others side of my computer?
Scar: Wow, Grian, another nosebleed?
Grian: Shut up.
Cub: Your brain must be shrivelled up like a raisin by now.
Grian: Still works better than Scar’s!
Scar: [leans on the reception desk as the other two leave, bickering] Sooo…Grian’s not allowed outside without a Director’s approval.
Receptionist: Is that right?
Scar: Scary stuff, huh? If you happened to see him leave with us, and we just forgot to show you a permit…can I convince you into some sort of deal? As a friend?
Receptionist: You know, you can just ask a friend to do you a favor, you don’t have to pay me. I’ve known you for five years. I’m not gonna turn you in.
Cub: [calls] You coming, Scar?
Scar: I gotta go! Grian’s just a Watcher, she’s not dangerous. Grab some cash from Cub’s bottom desk drawer. They don’t even search our office anymore, so it’s just labelled ‘proceeds of crime (not)’. Cub’s traps will let you past.
Receptionist: Wait, are you—was that person—a Watcher—holy shit—
Scar: See ya later! Get the money!
Receptionist: [rolls eyes] Of course, sir. Have a nice day.
*chau Grian uses he/she pronouns
*Check out tibby’s chau tag!
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lady-raziel · 7 months ago
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long reaction to the update
ok. so they put out an update video! since i've been commentating for the last three days i might as well subject you all to more of my thoughts today.
main takeaway: this was a good apology video. i mean it. short and to the point, no overproduction, heartfelt and honest (and not a ukelele to be seen. thank god.) they took ownership of the situation, apologized, and restated how much they value their relationship with the fandom.
their solution is to make the watcher tv platform into kind of an iteration of patreon where content is available for early access before it is released onto youtube later. this is clearly a better option than paywalling everything for everyone. i'm not sure what the relative breakdown of costs turns out to be when you compare how much they were making on patreon after the platform took their cut VS how much it costs in overhead to run and maintain their own platform (how much it costs annually to contract via Vimeo, essentially). but i'm sure that's part of the calculation.
all things considered, that does seem like the best option out of all the alternatives. it allows them to not completely abandon any of the pans they have simmering over the fire for the time being. i don't think i ever thought they were going to just say "oops, forget about the streaming thing! let's pretend that never happened!" because at this point they've invested quite a lot of time and money into it, and i don't disagree that keeping it in some iteration may help them make up some of the funds they're lacking.
i would say, it's fine to keep the streamer. this is one of the ok outcomes, all things considered-- but if they're going to do it, they've GOT to do it smart from this point forward. listen to both the fans and the consultants intimately. both are going to have valid points, and both are going to be right. listening to too much of either side will sink this thing because each has motives and expertise that the other doesn't. if the fans say $6 is too much, listen to them-- but have conversations with business consultants about how much you realistically need to charge to make things work.
also, i'd use this whole situation as a learning experience. watcher is a young company, and it's literally inevitable that mistakes will happen. what's different is that the watcher crew haven't really been in a position before where they've been on the receiving end of the internet-angry-justice-hammer to this extent. it's one thing to watch it happen to others, but it's a position of extreme privilege (and a bit of hubris) to think "but that won't happen to me, because i'm built different." naw, man-- two things in life are inevitable: death and fuckups. the callout posts get us all in the end.
what's really important is that they use this as a wakeup call that even the most loyal fandoms will only follow you so far to the cliff's edge, and you don't want to push that. you have to strike a balance between the passion projects that you think are worthy and the stuff that maybe doesn't excite you as much anymore but the people want to see. a little fanservice keeps the lights on, as unfair as that might seem. i'm gonna make 50 markiplier choccy milk memes just so i can make one niche political joke once and a while for 6 likes. it is what it is.
i'd also use this as a chance to take a very careful look at company structure and finances. it's not fun to do and nobody likes it. trust me-- this is hard whether you're a single adult trying to pay the bills or the freaking US government (speaking from experience on both-- i have to read the president's budget for work frequently). but you all have to ask hard questions about the ratio of creative staff you take on VS staff for administrative and other business roles, as well as the costs and benefits of everything you spend money on. how many staff members are essential to location shoots? can this video be shot with 2 cameras instead of 3 and thus you don't need another cameraperson? you might even have to come to the decision that instead of pitching a new show it makes more sense to use those funds to hire your essential non-creative roles or contract firms or freelancers.
paying staff a fair wage with benefits speaks highly of what watcher wants their values to be. it's hard to find such a position in a creative role and still actually get to work on things you care about. but it would be much worse if watcher didn't make realistic decisions about finances and it lead to the death of the company and everyone losing their jobs. the whole watcher company can work, in my opinion, but not without some sacrifices. they're going to have to run it more like a business and less like a youtube-channel-turned-business in the future if they want to survive.
last thing i'll add is that while i do think this was a good apology video, i still think they hurt themselves by not putting out some sort of statement on Friday or Saturday just to say that they were formulating a response. As i've said in other posts, it's ok and in fact beneficial to not make a kneejerk reaction, but it's also very important to communicate that you SEE what's happening. you SEE what people are saying and THAT'S why you need more time to respond. saying nothing and leaving the angry public to wonder if you dropped your phone off the Hoover Dam or just don't care? that's a fumble. it's a common mistake companies make in a crisis, but that doesn't mean it doesn't erode trust fast.
this could have been handled better in many ways. we see that, and i'm glad watcher says they see that too. crucial going forward is taking all this and patching the errors that caused all this to fall apart and learning from the experience.
tbh at this point what i'm most sad about is that the watcher crew have probably been too stressed out and upset to appreciate some of the absolute bangers people have been laying down to clown on them. i think if it wasn't about them they might be touched by the collective attitude and creative spirit. /j
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sapphia · 3 months ago
Note
Can I get more info about what's going on in nz? I watch global news regularly and nothing about this has come up and I find this highly disturbing.
we elected a neoliberal nightmare of a government who are destroying our health system, water system, ferry and rail system, environment and democracy for profit. people are literally dying in hospitals because there is no doctor in hospitals in multiple rural towns and they just have a consultation on an ipad. the government are trying to frame Health NZ as having a budget deficit of 1.5 billion when in reality that deficit exists because they provided like 3 billion dollars with of tax cuts they couldn’t afford. National cuts spending to health every time they get in government and the disjointed DHB system has been unable to keep up financially with the growing population and health needs.
i personally have just been FUCKED by national as for the last two years i have been navigating our labyrinth of a health system, not working due to being intensely suicidal, trying to find therapy to get better and there just isn’t any available. so i payed for a private autism diagnosis to try and access funding for therapy through the ministry of disability and also get under their umbrella because they actually treat you like a person there and also don’t actively seem to want you dead like they do in the mental health system. but the process took so long that by the time i got my diagnosis and through the referral system, national had yoinked the funding and deemed that therapy will no longer be covered by the disability funding system. all therapies. for disabled people.
oh also they’re like trying to start a race war or something as both minor parties in the 3-way coalition government are trying to negate the Treaty of Waitangi in law, and they’re also attacking the judiciary and had to be told to stop by our attorney general, who they ignored obviously.
our prime minister answers every question with “i say to you” followed by just a literal lie, they’re all just lying through their teeth, i literally have an OIA request about when David Seymour, our deputy-PM-in-waiting (don’t ask) said that preschool education needed to be reviewed because they were being prevented from teaching phonics. they’re not. someone just expressed concern that that might be happening to him, and apparently he is basing government policy on that?? or at least using it to falsely justify it to the nation.
their ideas are all bad and disproven by evidence-based studies, despite their slogan being “we’re going to make evidence-based decisions”. New Zealand has hit a funding wall where we’ve kicked the can too far down the road on like everything and it’s all starting to collapse at once and this government are not only letting it happen, they’re actively helping it along because they’ve all got shares in private rival companies or mates they want to give contracts to (our former national PM got paid insane money to write an insanely biased report attacking our ministry of social housing) or they’ve had their careers helped along by lobbying firms or they want to work for lobbying firms after they leave parliament.
the speaker of the house (who is right now being accused of not dealing with racism within his own party because of course he isn’t, he’s gerry fucking brownlee, the most hated man in christchurch) has allowed lobbyists unprecedented unrecorded entry to parliament. the minister for conservation keeps “forgetting” to write his lobby dinners in his diary. one of them told an mp “he’s not in mexico anymore”. no one is getting in trouble for this shit while the left are being raked over the coals. there’s like so much more. no one can keep up. and nothings being done about it.
tldr; help
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mariacallous · 2 years ago
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This story is part of a joint investigation between Lighthouse Reports and WIRED. To read other stories from the series, click here.
Mitch Daniels is a numbers guy, a cost-cutter. In the early 2000s, he tried and failed to rein in congressional spending under then-US president George W. Bush. So when he took office as Indiana governor in 2005, Daniels was ready to argue once again for fiscal discipline. He wanted to straighten out Indiana’s state government, which he deemed rife with dysfunction. And he started with its welfare system. “That department had been rocked by a series of criminal indictments, with cheats and caseworkers colluding to steal money meant for poor people,” he later said.
Daniels’ solution took the form of a $1.3 billion, 10-year contract with IBM. He had lofty ambitions for the project, which started in 2006, claiming it would improve the benefits service for Indiana residents while cracking down on fraud, ultimately saving taxpayers billions of dollars.
But the contract was a disaster. It was canceled after three years, and IBM and Indiana spent a decade locked in a legal battle about who was to blame. Daniels described IBM’s sweeping redesign and automation of the system—responsible for deciding who was eligible for everything from food stamps to medical cover—as deficient. He was adamant, though, that outsourcing a technical project to a company with expertise was the right call. “It was over-designed,” he said. “Great on paper but too complicated to work in practice.” IBM declined a request for comment. 
In July 2012, Judge David Dryer of the Marion County Superior Court ruled that Indiana had failed to prove IBM had breached its contract. But he also delivered a damning verdict on the system itself, describing it as an untested experiment that replaced caseworkers with computers and phone calls. “Neither party deserves to win this case,” he said. “This story represents a ‘perfect storm’ of misguided government policy and overzealous corporate ambition.” 
That might have been an early death knell for the burgeoning business of welfare state automation. Instead, the industry exploded. Today, such fraud systems form a significant part of the nebulous “govtech” industry, which revolves around companies selling governments new technologies with the promise that new IT will make public administration easier-to-use and more efficient. In 2021, that market was estimated to be worth €116 billion ($120 billion) in Europe and $440 billion globally. And it’s not only companies that expect to profit from this wave of tech. Governments also believe modernizing IT systems can deliver big savings. Back in 2014, the consultancy firm McKinsey estimated that if government digitization reached its “full potential,” it could free up $1 trillion every year. 
Contractors around the world are selling governments on the promise that fraud-hunting algorithms can help them recoup public funds. But researchers who track the spread of these systems argue that these companies are often overpaid and under-supervised. The key issue, researchers say, is accountability. When complex machine learning models or simpler algorithms are developed by the private sector, the computer code that gets to define who is and isn’t accused of fraud is often classed as intellectual property. As a result, the way such systems make decisions is opaque and shielded from interrogation. And even when these algorithmic black holes are embroiled in high-stakes legal battles over alleged bias, the people demanding answers struggle to get them. 
In the UK, a community group called the Greater Manchester Coalition of Disabled People is trying to determine whether a pattern of disabled people being investigated for fraud is linked to government automation projects. In France, the digital rights group La Quadrature du Net has been trying for four months to find out whether a fraud system is discriminating against people born in other countries. And in Serbia, lawyers want to understand why the introduction of a new system has resulted in hundreds of Roma families losing their benefits. “The models are always secret,” says Victoria Adelmant, director of New York University’s digital welfare state project. “If you don’t have transparency, it’s very difficult to even challenge and assess these systems.” 
The rollout of automated bureaucracy has happened quickly and quietly, but it has left a trail of scandals in its wake. In Michigan, a computer system used between 2013 and 2015 falsely accused 34,000 people of welfare fraud. A similar thing happened in Australia between 2015 and 2019, but on a larger scale: The government accused 400,000 people of welfare fraud or error after its social security department started using a so-called robodebt algorithm to automatically issue fines.
Another scandal emerged in the Netherlands in 2019 when tens of thousands of families—many of them from the country’s Ghanaian community—were falsely accused of defrauding the child benefits system. These systems didn’t just contribute to agencies accusing innocent people of welfare fraud; benefits recipients were ordered to repay the money they had supposedly stolen. As a result, many of the accused were left with spiraling debt, destroyed credit ratings, and even bankruptcy. 
Not all government fraud systems linked to scandals were developed with consultancies or technology companies. But civil servants are increasingly turning to the private sector to plug knowledge and personnel gaps. Companies involved in fraud detection systems range from giant consultancies—Accenture, Cap Gemini, PWC—to small tech firms like Totta Data Lab in the Netherlands and Saga in Serbia.
Experts in automation and AI are expensive to hire and less likely to be wooed by public sector salaries. When the UK surveyed its civil servants last year, confidence in the government’s ability to use technology was low, with around half of respondents blaming an inability to hire top talent. More than a third said they had few or no skills in artificial intelligence, machine learning, or automation. But it’s not just industry experience that makes the private sector so alluring to government officials. For welfare departments squeezed by budget cuts, “efficiency” has become a familiar buzzword. “Quite often, a public sector entity will say it is more efficient for us to go and bring in a group of consultants,” says Dan Sheils, head of European public service at Accenture.
The public sector lacks the expertise to create these systems and also to oversee them, says Matthias Spielkamp, cofounder of German nonprofit Algorithm Watch, which has been tracking automated decision-making in social welfare programs across Europe since 2017. In an ideal world, civil servants would be able to develop these systems themselves and have an in-depth understanding of how they work, he says. “That would be a huge difference to working with private companies, because they will sell you black-box systems—black boxes to everyone, including the public sector.” 
In February 2020, a crisis broke out in the Dutch region of Walcheren as officials realized they were in the dark about how their own fraud detection system worked. At the time, a Dutch court had halted the use of another algorithm used to detect welfare fraud, known as SyRI, after finding it violated people’s right to privacy. Officials in Walcheren were not using SyRI, but in emails obtained by Lighthouse Reports and WIRED through freedom-of-information requests, government employees had raised concerns that their algorithm bore striking similarities to the one just condemned by the court.
Walcheren’s system was developed by Totta Data Lab. After signing a contract in March 2017, the Dutch startup developed an algorithm to sort through pseudonymous information, according to details obtained through a freedom-of-information request. The system analyzed details of local people claiming welfare benefits and then sent human investigators a list of those it classified as most likely to be fraudsters. 
The redacted emails show local officials agonizing over whether their algorithm would be dragged into the SyRI scandal. “I don’t think it is possible to explain why our algorithm should be allowed while everyone is reading about SyRI,” one official wrote the week after the court ruling. Another wrote back with similar concerns. “We also do not get insight from Totta Data Lab into what exactly the algorithm does, and we do not have the expertise to check this.” Neither Totta nor officials in Walcheren replied to requests for comment. 
When the Netherlands’ Organization for Applied Scientific Research, an independent research institute, later carried out an audit of a Totta algorithm used in South Holland, the auditors struggled to understand it. “The results of the algorithm do not appear to be reproducible,” their 2021 report reads, referring to attempts to re-create the algorithm’s risk scores. “The risks indicated by the AI algorithm are largely randomly determined,” the researchers found. 
With little transparency, it often takes years—and thousands of victims—to expose technical shortcomings. But a case in Serbia provides a notable exception. In March 2022, a new law came into force which gave the government the green light to use data processing to assess individuals’ financial status and automate parts of its social protection programs. The new socijalna karta, or social card system, would help the government detect fraud while making sure welfare payments were reaching society’s most marginalized, claimed Zoran Đorđević, Serbia’s minister of social affairs in 2020. 
But within months of the system’s introduction, lawyers in the capital Belgrade had started documenting how it was discriminating against the country’s Roma community, an already disenfranchised ethnic minority group. 
Mr. ​​Ahmetović, a welfare recipient who declined to share his first name out of concern that his statement could affect his ability to claim benefits in the future, says he hadn’t heard of the social card system until November 2022, when his wife and four children were turned away from a soup kitchen on the outskirts of the Serbian capital. It wasn’t unusual for the Roma family to be there, as their welfare payments entitled them to a daily meal provided by the government. But on that day, a social worker told them their welfare status had changed and that they would no longer be getting a daily meal.
The family was in shock, and Ahmetović rushed to the nearest welfare office to find out what had happened. He says he was told the new social card system had flagged him after detecting income amounting to 110,000 Serbian dinars ($1,000) in his bank account, which meant he was no longer eligible for a large chunk of the welfare he had been receiving. Ahmetović was confused. He didn’t know anything about this payment. He didn’t even have his own bank account—his wife received the family’s welfare payments into hers. 
With no warning, their welfare payments were slashed by 30 percent, from around 70,000 dinars ($630) per month to 40,000 dinars ($360). The family had been claiming a range of benefits since 2012, including financial social assistance, as their son’s epilepsy and unilateral paralysis means neither parent is able to work. The drop in support meant the Ahmetovićs had to cut back on groceries and couldn’t afford to pay all their bills. Their debt ballooned to over 1 million dinars ($9,000). 
The algorithm’s impact on Serbia’s Roma community has been dramatic. ​​Ahmetović says his sister has also had her welfare payments cut since the system was introduced, as have several of his neighbors. “Almost all people living in Roma settlements in some municipalities lost their benefits,” says Danilo Ćurčić, program coordinator of A11, a Serbian nonprofit that provides legal aid. A11 is trying to help the Ahmetovićs and more than 100 other Roma families reclaim their benefits.
But first, Ćurčić needs to know how the system works. So far, the government has denied his requests to share the source code on intellectual property grounds, claiming it would violate the contract they signed with the company who actually built the system, he says. According to Ćurčić and a government contract, a Serbian company called Saga, which specializes in automation, was involved in building the social card system. Neither Saga nor Serbia’s Ministry of Social Affairs responded to WIRED’s requests for comment.
As the govtech sector has grown, so has the number of companies selling systems to detect fraud. And not all of them are local startups like Saga. Accenture—Ireland’s biggest public company, which employs more than half a million people worldwide—has worked on fraud systems across Europe. In 2017, Accenture helped the Dutch city of Rotterdam develop a system that calculates risk scores for every welfare recipient. A company document describing the original project, obtained by Lighthouse Reports and WIRED, references an Accenture-built machine learning system that combed through data on thousands of people to judge how likely each of them was to commit welfare fraud. “The city could then sort welfare recipients in order of risk of illegitimacy, so that highest risk individuals can be investigated first,” the document says. 
Officials in Rotterdam have said Accenture’s system was used until 2018, when a team at Rotterdam’s Research and Business Intelligence Department took over the algorithm’s development. When Lighthouse Reports and WIRED analyzed a 2021 version of Rotterdam’s fraud algorithm, it became clear that the system discriminates on the basis of race and gender. And around 70 percent of the variables in the 2021 system—information categories such as gender, spoken language, and mental health history that the algorithm used to calculate how likely a person was to commit welfare fraud—appeared to be the same as those in Accenture’s version.
When asked about the similarities, Accenture spokesperson Chinedu Udezue said the company’s “start-up model” was transferred to the city in 2018 when the contract ended. Rotterdam stopped using the algorithm in 2021, after auditors found that the data it used risked creating biased results.
Consultancies generally implement predictive analytics models and then leave after six or eight months, says Sheils, Accenture’s European head of public service. He says his team helps governments avoid what he describes as the industry’s curse: “false positives,” Sheils’ term for life-ruining occurrences of an algorithm incorrectly flagging an innocent person for investigation. “That may seem like a very clinical way of looking at it, but technically speaking, that's all they are.” Sheils claims that Accenture mitigates this by encouraging clients to use AI or machine learning to improve, rather than replace, decision-making humans. “That means ensuring that citizens don’t experience significantly adverse consequences purely on the basis of an AI decision.” 
However, social workers who are asked to investigate people flagged by these systems before making a final decision aren’t necessarily exercising independent judgment, says Eva Blum-Dumontet, a tech policy consultant who researched algorithms in the UK welfare system for campaign group Privacy International. “This human is still going to be influenced by the decision of the AI,” she says. “Having a human in the loop doesn’t mean that the human has the time, the training, or the capacity to question the decision.” 
Despite the scandals and repeated allegations of bias, the industry building these systems shows no sign of slowing. And neither does government appetite for buying or building such systems. Last summer, Italy’s Ministry of Economy and Finance adopted a decree authorizing the launch of an algorithm that searches for discrepancies in tax filings, earnings, property records, and bank accounts to identify people at risk of not paying their taxes. 
But as more governments adopt these systems, the number of people erroneously flagged for fraud is growing. And once someone is caught up in the tangle of data, it can take years to break free. In the Netherlands’ child benefits scandal, people lost their cars and homes, and couples described how the stress drove them to divorce. “The financial misery is huge,” says Orlando Kadir, a lawyer representing more than 1,000 affected families. After a public inquiry, the Dutch government agreed in 2020 to pay the families around €30,000 ($32,000) in compensation. But debt balloons over time. And that amount is not enough, says Kadir, who claims some families are now €250,000 in debt. 
In Belgrade, ​​Ahmetović is still fighting to get his family’s full benefits reinstated. “I don’t understand what happened or why,” he says. “It’s hard to compete against the computer and prove this was a mistake.” But he says he’s also wondering whether he’ll ever be compensated for the financial damage the social card system has caused him. He’s yet another person caught up in an opaque system whose inner workings are guarded by the companies and governments who make and operate them. Ćurčić, though, is clear on what needs to change. “We don’t care who made the algorithm,” he says. “The algorithm just has to be made public.”
Additional reporting by Gabriel Geiger and Justin-Casimir Braun.
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ptseti · 5 months ago
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PRIVATE MILITARY COMPANIES IN AFRICA: SERVING WHOSE INTERESTS?
Insecurity in Africa has proved profitable for several shadowy private military companies (PMCs). Non-state ‘guns for hire’ are contracted in by top government officials and foreign companies, often involved in extractive industries. In this clip, Zimbabwean lawyer and activist Brian Kagoro (@tamukaKagoro77) points out that PMCs are partly responsible for keeping conflicts in Africa on a slow boil, as it ensures their services are needed. Some are well-known, such as the Wagner Group, now incorporated into Russia’s armed forces. The French Foreign Legion was active in the Sahel during France’s Operation Barkhane (2014 - 2022). US companies CACI and Academi are among the most prominent PMCs present in Africa. Others are Secopex from France, Britain’s Aegis Defence Services, Ukraine’s Omega Consulting Group, South Africa’s Dyck Advisory Group and Xeless from Germany.
Why are all these ‘guns for hire’ in Africa if not for the interests of foreign entities milking the continent dry? Should Africa sort its security challenges out without using PMCs?
Video credit: Kigali Today
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justinspoliticalcorner · 4 months ago
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Sam Delgado at Vox:
Over the last century, people have started demanding more from the businesses where they shop. Whether it be a pair of jeans or the food on their plates, consumers want to know that what they’re buying isn’t just good quality but also ethically and sustainably made. In the early 20th century, groups like the National Consumers League and the now-defunct League of Women Shoppers organized consumers to take advantage of their power in an effort to improve labor protections and the rights of workers in the United States. Today, ethically minded consumers are also motivated by climate change and animal rights, as the consequences of our overconsumption have become clearer.
Fast-forward 90 years and the global marketplace has become exponentially more complex. Globalization has remade how and where corporations make products. If it was difficult for activists at the turn of the 20th century to identify ethically made products, the challenge to the modern consumer is even greater. You might think regulations or legislation could compel companies to produce more ethically made goods. But ultimately, no one government is responsible for a supply chain that crosses borders and oceans. In a globalized economy, nobody is in charge. So “corporate social responsibility” — or the idea that companies can hold themselves accountable — emerged, responding to this consumer demand. In practice, corporate social responsibility can look like companies donating to charities every year, committing to net-zero emissions by a certain date, or focusing on labor practices. To prove they’re doing this work, companies will partner with nonprofits or hire third-party consultants to audit their supply chains, and then measure and report their progress in annual reports, press releases, and on their websites.
[...] Corporate social responsibility went mainstream during the new wave of globalization and the growth of multinational corporations that followed in the second half of the 20th century. As these businesses expanded their reach and production speed, they sought to cut their costs by contracting cheaper labor in other countries with weak worker protections. This idea of outsourcing wasn’t necessarily new. Businesses in the US already had a history of moving to Southern states where they knew corporate regulation was more relaxed and labor would be less expensive, made possible by the racist legacy of slavery and Jim Crow laws. A century later, new technology — particularly the internet — made it even easier for companies to scale up and outsource their operations. By moving overseas, companies could obscure unsafe working conditions from American consumers, who might’ve known very little about how their products were being made.
But public awareness of the costs of globalization started to grow in the early 1990s, thanks to stories and reports from human rights organizations and newsrooms that laid out the abysmal working conditions and standards of major brands, often in their factories overseas. Nike, the world’s biggest shoe seller, faced backlash after multiple stories came out about grueling conditions and the use of child labor in its contracted factories, sparking boycotts and protests against Nike from consumers and activists alike. Businesses saw how consumers could rise against them if they weren’t careful about what went on in their supply chains, leading to more companies developing their own voluntary corporate social responsibility initiatives to address their environmental and social impacts.
Today, corporate social responsibility programs are widespread. They often refer to commitments a company makes toward a particular area of social impact, like diversity, ethical sourcing, or the environment. It usually looks like this: A company will set goals around one or more of these areas, assess its progress, and then publish its results. To legitimize these programs, companies will hire social auditing firms, seek certifications from multi-stakeholder initiatives (MSIs) like the Fair Labor Association or Fair Trade to show they meet certain standards, or develop codes of conduct around labor and human rights. Such programs matter to consumers, and they’re willing to pay more for sustainably made products — and hey, if something is good for both the world and for business, what’s the harm?
Corporate social responsibility in practice
Corporate social responsibility is everywhere today, driven by consumer demand and a growing socially conscious workforce. One 2023 study found that over 80 percent of companies are increasing their budgets for sustainability initiatives. Chief sustainability officers are now common, and more companies are disclosing the exact factories their products are made in and the reported conditions. But it’s hard to know how honest or effective these programs really are at protecting labor and the environment. Part of the issue is they’re voluntary. While companies must comply with local, federal, and international laws, that’s the end of their legal obligations. Beyond that, there’s no requirement for corporate social responsibility programs to show their methodology or metrics for calculating their progress and no obligation to release all results from a social audit. A company can change its corporate social responsibility programs at any point, or drop them entirely. [...]
The rise of worker-driven social responsibility
Around the same time that corporate social responsibility was taking off in the 1990s, a group of farmworkers in a rural Florida town called Immokalee had a meeting that would challenge the status quo, from the bottom of the supply chain all the way to the top. The farmworkers were Mexican, Guatemalan, and Haitian migrants, and they harvested buckets of tomatoes in grueling conditions for as long as 12 hours a day, receiving poverty wages for providing crucial produce to US grocery stores and restaurants. The fields they worked in were rife with verbal and physical abuse, sexual harassment, wage theft, and, in the worst cases, involuntary servitude. Tired of the exploitation they encountered in the fields, the Immokalee farmworkers discussed how they could really change the way things were done. This 1993 meeting marked the beginning of the Coalition of Immokalee Workers (CIW) and, later on, the first ever worker-driven social responsibility program. Lucas Benitez, one of the founders of the CIW, told me that, at first, the farmworkers thought their employers, the tomato growers, had all the power. “Then we came to see and recognize what was essentially an invisible hand that was putting that pressure further and further down on the supply chain,” Benitez said via an interpreter. “That started at the top, because it’s those retailers that fundamentally dictate to growers the conditions under which that food is being produced. And so that’s really where the power lay, and so that’s where we turned.” In 2001, the CIW set its sights on Taco Bell and called for a boycott over the reportedly abysmal conditions in its tomato supply chain. Four years later, Taco Bell signed an agreement that included vital demands from the CIW: Taco Bell would pay a premium for its tomatoes that would go directly to workers’ paychecks, it would only buy from growers who met the code of conduct that protected workers, and this would be monitored and enforced by an investigative body with help from the CIW. It was all backed by a legally binding contract. A binding contract is crucial to worker-driven social responsibility, a sharp contrast to those toothless corporate social responsibility initiatives.
Vox takes a look at the worker-driven social responsibility trend.
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eirianerisdar · 2 years ago
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I think I’m done.
I’ve written many posts about my experience as a doctor. Some of them are funny, some of them sad. Some of them poignant.
But I think I’m done being a doctor in the current public healthcare system where I live.
I’m a Family Medicine resident. I rotated through two and a half years of hosptial residencies, and I’m in my first year of clinic-only practice. It should sound good; no more 26-38 hour shifts on top of 12 hour workdays.
But I’m currently seeing 33-37 patients from 9-1 pm daily and 24 patients from 2-5 pm daily. I also sometimes work 6-10 pm. Each of these clinic sessions also includes a solid 1.5 inches of seperate lab results I’m expected to screen during consultation time. I work Monday through to half of Saturday. Im expected to also complete a dermatology university diploma on top of this. I have exams in family medicine this year, the year after that, and two years after. Three and a half years more at least until I’m a specialist.
I can’t do it. I can’t keep giving each patient only 5 minutes of time as I’m doing now. I didn’t become a doctor to have to balance whether I should see my patient’s third complaint or ask them to book another session so I can have time to pee and eat.
Peeing and eating is like…the lowest level of Maslow’s hierarchy of needs. I’ve spent all of my adult working years, from 23 years of age til now, chasing that. The right to pee and eat and drink.
The department head has his head so far up his ass with bootlicking the government that last quarter he pulled workforce away from chronic cases for half-full covid clinics and made us each therefore have to review 56 cases per four hour session. When we raised the issue of patient safety one of his associate consultants said, “I know it’s hard! Let’s get through this together!”
He is famed for picking on whether residents punctuate the numbering of their past medical history lists with brackets or periods.
Nope. Nope. Nope.
This afternoon between patients, I suddenly realised I had lost my voice. I’d been speaking too much. Moreover, I think my autistic brain had finally clicked over into the “dude you better go non verbal or you’ll die” function. Of course, I couldn’t actually afford to be non verbal. I plowed through the remaining cases so dissociated I nearly blacked out.
If I pass these next two years’ exams, I become senior resident. I will have the privilege of not being entrusted with 33 cases every four hours, but 40.
40 cases; all of them episodic patients, not chronic. This means all of them come in with new complaints, as in multiple. Time per patient gets knocked down to four minutes.
Respectfully, Fuck That.
I’m waiting until I get contract gratuity this summer, do the damn exam that everyone agrees is insane, and then I’ll apply to a plethora of private clinics in September and kiss this bloody department goodbye.
I want to be able to spend more than two minutes comforting a crying patient, dammit.
If I don’t leave soon I’ll break, and that’ll compromise patient safety over anything else.
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pettyrevenge-base · 9 months ago
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Friends called me a Fake Engineer, I bought their dinner.
My daughter 17, asked me to post this here. And Im the Dad who does as the women in my life tell me, which is how I ended up in a restaurant tonight with snobs. So the characters, my wife, wife’s coworker 1 and her husband arrogant engineer 1(AE1), wife’s coworker 2 and her husband my CPA, and Lastly AE2 and his wife. Each couple has two teenage children with us.
We are at a Japanese steakhouse in America where the chefs cook in front of you. CW1 and AE1 invited all of us for their youngest daughter’s birthday. Since their daughter is close with our daughter. So the parents are at one table and the teens at another. At the teen table my daughters (17 and 14) order sushi appetizers, mocktails, and shrimp with scallops. At our table the Sake is flowing along with a few top shelf drinks. My wife and I order our appetizers, drinks and dinners. We are all paying for ourselves and I see AE1 and AE2 seem to in competition for who can spend the most. My CPA and I chuckle at them and stay out of the fray. Until AE2 hears my daughter order and says to her, “careful now your daddy is only and agricultural engineer. He doesnt make as much as us real engineers.” For context they are structural engineers with Bachelor degrees, Im an agricultural engineer with a PHD. I work for governments, private investors, and several agro corporations. I own my own consulting firm. I help build sustainable reusable gardens. And this work allows me to travel to poorer countries and help them use what they have to start growing their own food. Apparently these men thought All I did was travel to impoverished places and teach people to dig in the dirt. They believed I did all this work for free and therefore made very little money. Im not “rich” by any stretch, but Im comfortable. We dont do extravagance, so we have savings and my wife works. However in 2023 I was awarded a handsome contract to design tower gardens in several states. Its a seven figure contract over three years. Back to dinner These guys ask me about the most ridiculous things. Like “is it good to grow onions and carrots in the same garden?” And were laughing at me and my work until their wives told them to stop. I chalk it up to drunken arrogance and dont even bother to answer. My CPA was laughing so hard he almost fell out of his chair. Apparently, he is AE1’s CPA as well. And knows the ins and outs of both our finances. AE1 taunts CPA to tell the table what he brought home last year after bonuses. CPA pulled up the figures on the phone and tells us. Its about 1/3 of what I brought home in 2023. The CPA says “I have yours up want me to share?” I decline. And he nods. Que another round of taunts. I go to the restroom and find the waiter. I pay for the whole check and leave a generous tip on top of what they added for a big party. After our sobert the waiter thanks me in front of everyone for the tip and wishes everyone a good night. AE1 and AE2 stare at me for a moment. I smile nod and tell CPA to tell them my income last year. After which I simply said goodnight. Petty absolutely, gratifying damn right.
Source: reddit.com/r/pettyrevenge
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mostlysignssomeportents · 10 months ago
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The long sleep of capitalism’s watchdogs
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There are only five more days left in my Kickstarter for the audiobook of The Bezzle, the sequel to Red Team Blues, narrated by @wilwheaton! You can pre-order the audiobook and ebook, DRM free, as well as the hardcover, signed or unsigned. There's also bundles with Red Team Blues in ebook, audio or paperback.
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One of the weirdest aspect of end-stage capitalism is the collapse of auditing, the lynchpin of investing. Auditors – independent professionals who sign off on a company's finances – are the only way that investors can be sure they're not handing their money over to failing businesses run by crooks.
It's just not feasible for investors to talk to supply-chain partners and retailers and verify that a company's orders and costs are real. Investors can't walk into a company's bank and demand to see their account histories. Auditors – who are paid by companies, but work for themselves – are how investors avoid shoveling money into Ponzi-pits.
Attentive readers will have noticed that there is an intrinsic tension in an arrangement where someone is paid by a company to certify its honesty. The company gets to decide who its auditors are, and those auditors are dependent on the company for future business. To manage this conflict of interest, auditors swear fealty to a professional code of ethics, and are themselves overseen by professional boards with the power to issue fines and ban cheaters.
Enter monopolization. Over the past 40 years, the US government conducted a failed experiment in allowing companies to form monopolies on the theory that these would be "efficient." From Boeing to Facebook, Cigna to InBev, Warner to Microsoft, it has been a catastrophe. The American corporate landscape is dominated by vast, crumbling, ghastly companies whose bad products and worse corporate conduct are locked in a race to see who can attain the most depraved enshittification quickest.
The accounting profession is no exception. A decades-long incestuous orgy of mergers and acquisitions yielded up an accounting sector dominated by just four firms: EY, KPMG, PWC and Deloitte (the last holdout from the alphabetsoupification of corporate identity). Virtually every major company relies on one of these companies for auditing, but that's only a small part of corporate America's relationship with these tottering behemoths. The real action comes from "consulting."
Each of the Big Four accounting firms is also a corporate consultancy. Some of those consulting services are the normal work of corporate consultants – cookie cutter advice to fire workers and reduce product quality, as well as supplying dangerously defecting enterprise software. But you can get that from the overpaid enablers at McKinsey or BCG. The advantage of contracting with a Big Four accounting firm for consulting is that they can help you commit finance fraud.
Remember: if you're an executive greenlighting fraud, you mostly just want to be sure it's not discovered until after you've pocketed your bonus and moved on. After all, the pro-monopoly experiment was also an experiment in tolerating corporate crime. Executives who cheat their investors, workers and suppliers typically generate fines for their companies, while escaping any personal liability.
By buying your cheating advice from the same company that is paid to certify that you're not cheating, you greatly improve your chances of avoiding detection until you've blown town.
Which brings me to the idea of the "bezzle." This is John Kenneth Galbraith's term for "the weeks, months, or years that elapse between the commission of the crime and its discovery." This is the period in which both the criminal and the victim feel like they're better off. The crook has the victim's money, and the victim doesn't know it. The Bezzle is that interval when you're still assuming that FTX isn't lying to you about the crazy returns they're generating for your crypto. It's the period between you getting the shrinkwrapped box with a 90% discounted PS5 in it from a guy in an alley, and getting home and discovering that it's full of bricks and styrofoam.
Big Accounting is a factory for producing bezzles at scale. The game is rigged, and they are the riggers. When banks fail and need a public bailout, chances are those banks were recently certified as healthy by one of the Big Four, whose audited bank financials failed 800 re-audits between 2009-17:
https://pluralistic.net/2020/09/28/cyberwar-tactics/#aligned-incentives
The Big Four dispute this, of course. They claim to be models of probity, adhering to the strictest possible ethical standards. This would be a lot easier to believe if KPMG hadn't been caught bribing its regulators to help its staff cheat on ethics exams:
https://www.nysscpa.org/news/publications/the-trusted-professional/article/sec-probe-finds-kpmg-auditors-cheating-on-training-exams-061819
Likewise, it would be easier to believe if their consulting arms didn't keep getting caught advising their clients on how to cheat their auditing arms:
https://pluralistic.net/2023/05/09/dingo-babysitter/#maybe-the-dingos-ate-your-nan
Big Accounting is a very weird phenomenon, even by the standards of End-Stage Capitalism. It's an organized system of millionaire-on-billionaire violence, a rare instance of the very richest people getting scammed the hardest:
https://pluralistic.net/2021/06/04/aaronsw/#crooked-ref
The collapse of accounting is such an ominous and fractally weird phenomenon, it inspired me to write a series of hard-boiled forensic accountancy novels about a two-fisted auditor named Martin Hench, starting with last year's Red Team Blues (out in paperback next week!):
https://us.macmillan.com/books/9781250865854/redteamblues
The sequel to Red Team Blues is called (what else?) The Bezzle, and part of its ice-cold revenge plot involves a disillusioned EY auditor who can't bear to be part of the scam any longer:
https://www.kickstarter.com/projects/doctorow/the-bezzle-a-martin-hench-audiobook-amazon-wont-sell
The Hench stories span a 40-year period, and are a chronicle of decades of corporate decay. Accountancy is the perfect lens for understanding our modern fraud economy. After all, it was crooked accountants who gave us the S&L crisis:
https://scholarworks.umt.edu/cgi/viewcontent.cgi?article=10130&context=etd
Crooked auditors were at the center of the Great Financial Crisis, too:
https://francinemckenna.com/2009/12/07/they-werent-there-auditors-and-the-financial-crisis/
And of course, crooked auditors were behind the Enron fraud, a rare instance in which a fraud triggered a serious attempt to prevent future crimes, including the destruction of accounting giant Arthur Andersen. After Enron, Congress passed Sarbanes-Oxley (SOX), which created a new oversight board called the Public Company Accounting Oversight Board (PCAOB).
The PCAOB is a watchdog for watchdogs, charged with auditing the auditors and punishing the incompetent and corrupt among them. Writing for The American Prospect and the Revolving Door Project, Timi Iwayemi describes the long-running failure of the PCAOB to do its job:
https://prospect.org/power/2024-01-26-corporate-self-oversight/
For example: from 2003-2019, the PCAOB undertook only 18 enforcement cases – even though the PCAOB also detected more than 800 "seriously defective audits" by the Big Four. And those 18 cases were purely ornamental: the PCAOB issued a mere $6.5m in fines for all 18, even though they could have fined the accounting companies $1.6 billion:
https://www.pogo.org/investigations/how-an-agency-youve-never-heard-of-is-leaving-the-economy-at-risk
Few people are better on this subject than the investigative journalist Francine McKenna, who has just co-authored a major paper on the PCAOB:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4227295
The paper uses a new data set – documents disclosed in a 2019 criminal trial – to identify the structural forces that cause the PCAOB to be such a weak watchdog whose employees didn't merely fail to do their jobs, but actually criminally abetted the misdeeds of the companies they were supposed to be keeping honest.
They put the blame – indirectly – on the SEC. The PCAOB has three missions: protecting investors, keeping markets running smoothly, and ensuring that businesses can raise capital. These missions come into conflict. For example, declaring one of the Big Four auditors ineligible would throw markets into chaos, removing a quarter of the auditing capacity that all public firms rely on. The Big Four are the auditors for 99.7% of the S&P 500, and certify the books for the majority of all listed companies:
https://blog.auditanalytics.com/audit-fee-trends-of-sp-500/
For the first two decades of the PCAOB's existence, the SEC insisted that conflicts be resolved in ways that let the auditing firms commit fraud, because the alternative would be bad for the market.
So: rather than cultivating an adversarial relationship to the Big Four, the PCAOB effectively merged with them. Two of its board seats are reserved for accountants, and those two seats have been occupied by Big Four veterans almost without exception:
https://www.pogo.org/investigations/captured-financial-regulator-at-risk
It was no better on the SEC side. The Office of the Chief Accountant is the SEC's overseer for the PCAOB, and it, too, has operated with a revolving door between the Big Four and their watchdog (indeed, the Chief Accountant is the watchdog for the watchdog for the watchdogs!). Meanwhile, staffers from the Office of the Chief Accountant routinely rotated out of government service and into the Big Four.
This corrupt arrangement reached a crescendo in 2019, with the appointment of William Duhnke – formerly of Senator Richard Shelby's [R-AL] staff – took over as Chief Accountant. Under Duhnke's leadership, the already-toothless watchdog was first neutered, then euthanized. Duhnke fired all four heads of the PCAOB's main division and then left their seats vacant for 18 months. He slashed the agency's budget, "weakened inspection requirements and auditor independence policies, and disregarded obligations to hold Board meetings and publicize its agenda."
All that ended in 2021, when SEC chair Gary Gensler fired Duhnke and replaced him with Erica Williams, at the insistence of Bernie Sanders and Elizabeth Warren. Within a year, Williams had issued 42 enforcement actions, the largest number since 2017, levying over $11m in sanctions:
https://www.dlapiper.com/en/insights/publications/2023/01/pcaob-sets-aggressive-agenda-for-2023-what-to-expect-as-agency-enforcement-expands
She was just getting warmed up: last year, PCAOB collected $20m in fines, with five cases seeing fines in excess of $2m each, a record:
https://www.dlapiper.com/en/insights/publications/2024/01/pcaobs-enforcement-and-standard-setting-rev-up-what-to-expect-in-2024
Williams isn't shy about condemning the Big Four, publicly sounding the alarm that 40% of the 2022 audits the PCAOB reviewed were deficient, up from 34% in 2021 and 29% in 2020:
https://www.wsj.com/articles/we-audit-the-auditors-and-we-found-trouble-accountability-capital-markets-c5587f05
Under Williams, the PCAOB has enacted new, muscular rules on lead auditors' duties, and they're now consulting on a rule that will make audit inspections much faster, shortening the documentation period from 45 days to 14:
https://tax.thomsonreuters.com/news/pcaob-rulemaking-could-lead-to-more-timely-issuance-of-audit-inspection-reports/
Williams is no fire-breathing leftist. She's an alum of the SEC and a BigLaw firm, creating modest, obvious technical improvements to a key system that capitalism requires for its orderly functioning. Moreover, she is competent, able to craft regulations that are effective and enforceable. This has been a motif within the Biden administration:
https://pluralistic.net/2022/10/18/administrative-competence/#i-know-stuff
But though these improvements are decidedly moderate, they are grounded in a truly radical break from business-as-usual in the age of monopoly auditors. It's a transition from self-regulation to regulation. As @40_Years on Twitter so aptly put it: "Self regulation is to regulation as self-importance is to importance":
https://twitter.com/40_Years/status/1750025605465178260
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Berliners: Otherland has added a second date (Jan 28 - THIS SUNDAY!) for my book-talk after the first one sold out - book now!
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If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/01/26/noclar-war/#millionaire-on-billionaire-violence
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Back the Kickstarter for the audiobook of The Bezzle here!
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Image: Sam Valadi (modified) https://www.flickr.com/photos/132084522@N05/17086570218/
Disco Dan (modified)
https://www.flickr.com/photos/danhogbenspics/8318883471/
CC BY 2.0: https://creativecommons.org/licenses/by/2.0/
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