Two Kinds of Extra Understanding: Pre and Post

We argue here in this proposal for an educational remedy that two dimensions of understanding must be added to “retro-fit” education.

In the first addition, call it pre-understanding, a student is given an overview not only of the field but of his or her life as well as the “techno-commercial” environment that characterizes the globe.

Pre-understanding includes such “overall cautions” offered to you by Calderón de la Barca’s 17th century classic Spanish play, Life is a Dream (SpanishLa vida es sueño). A student would perhaps ask: “what would it be like if I faced this “dreamlike quality” of life, as shown by the Spanish play, and suddenly realized that a life of “perfect myopia” is not what I want.

Hannah Arendt warns similarly of a life “like a leaf in the whirlwind of time.”

Again, I, the student ask: do I want such a Hannah Arendt-type leaf-in-the-whirlwind-like life, buried further under Calderón de la Barca’s “dream state”?

But that’s not all: while I’m learning about these “life dangers,” all around me from my block to the whole world, humanity does its “techno-commerce” via container ships and robots, hundreds of millions of vehicles and smartphones, multilateral exchange rates, and tariff policies. Real understanding has one eye on the personal and the other on the impersonal and not one or the other.

All of these personal and impersonal layers of the full truth must be faced and followed, “en face,” as they say in French (i.e., “without blinking”).

Call all this pre-understanding which includes of course a sense of how my “field” or major or concentration fits into the “architecture of knowledge” and not in isolation without connections or a “ramification structure.”

Post-understanding comes from the other end: my lifelong effort, after just about all that I learned about the six wives of King Henry VIII and the “mean value theorem”/Rolle’s theorem in freshman math, have been completely forgotten and have utterly evaporated in my mind, to re-understand my life and times and book-learning.

Pre-and post-understanding together allows the Wittgenstein phenomenon of “light falls gradually over the whole.”

Without these deeper dimensions of educational remedy, the student as a person would mostly stumble from “pillar to post” with “perfect myopia.” Education mostly adds to all the “fragmentariness” of the modern world and is in that sense, incomplete or even disorienting.

Education in this deep sense is supposed to be the antidote to this overall sense of modern “shapelessness,” to use Kierkegaard’s term.

India-Watching

ICRIER Working Paper № 407

India’s Platform Economy and Emerging Regulatory Challenges

by Rajat Kathuria, Mansi Kedia and Kaushambi Bagchi

Abstract

The phenomenal rise of the platform economy has reshaped how economies operate across the world. The importance of digital platforms has never been more evident than in combatting the ongoing coronavirus (COVID-19) pandemic. Even with the threat of a global recession looming large, technology companies are witnessing a surge in demand for their services. Platforms distinguish themselves from traditional markets by demonstrating speed and scale of innovation and fostering efficient and productive interaction between buyers and sellers. Enterprises using platform-based business models have expanded beyond social media, travel and entertainment to sectors like financial services, healthcare, logistics and transportation. With the objective of building evidence for policy-making in this sector, this study undertakes an in-depth analysis of the impact generated by the platform economy in India, by estimating consumer surplus from the use of platforms, analyzing its impact on traditional businesses either by transformation or disruption. The estimated consumer surplus is Rs. 438.75 per individual per month, amounting to a collective annual surplus of Rs. 3620 billion for India. At current exchange rates this would amount to $47 billion. 

The growth of platforms has also been accompanied by global concern against their anti-competitive practices, the spread of fake news and harmful content, political bias, etc. The paper discusses regulatory changes and areas of concern for market competition, labour and employment, fake news and misinformation, consumer protection, counterfeit goods and data privacy in India.

[Read full article, archived PDF]

[Executive summary, archived PDF]

Essay 79: Past and Present Thinking

History is “forever new” and we keep asking “what’s new?” but the past is “forever suggestive” and so we inquire here as to whether the past gives us interesting echoes of the more recent.

Specifically, we juxtapose the “closing of the gold window” in August 1971 (Nixon) and the British gold standard gyrations between 1925 and 1931, when England left gold (i.e., September 1931).

At the time, under Nixon, the U.S. also had an unemployment rate of 6.1% (August 1971) and an inflation rate of 5.84% (1971).

To combat these problems, President Nixon consulted Federal Reserve chairman Arthur Burns, incoming Treasury Secretary John Connally, and then Undersecretary for International Monetary Affairs and future Fed Chairman Paul Volcker.

On the afternoon of Friday, August 13, 1971, these officials along with twelve other high-ranking White House and Treasury advisors met secretly with Nixon at Camp David. There was great debate about what Nixon should do, but ultimately Nixon, relying heavily on the advice of the self-confident Connally, decided to break up Bretton Woods by announcing the following actions on August 15:

Speaking on television on Sunday, August 15, when American financial markets were closed, Nixon said the following:

“The third indispensable element in building the new prosperity is closely related to creating new jobs and halting inflation. We must protect the position of the American dollar as a pillar of monetary stability around the world.

“In the past 7 years, there has been an average of one international monetary crisis every year …

“I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interests of the United States.

“Now, what is this action—which is very technical—what does it mean for you?

“Let me lay to rest the bugaboo of what is called devaluation.

“If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today.

“The effect of this action, in other words, will be to stabilize the dollar.”

Britain’s own experience in the twenties is explained like this:

“In 1925, Britain had returned to the gold standard.

(editor: This Churchill decision was deeply critiqued by Keynes.)

“When Labour came to power in May 1929 this was in good time for Black Friday on Wall Street in the following October.

“After the Austrian and German crashes in May and July 1931, Britain’s financial position became critical, and on 21st September she abandoned the gold standard.

London was still the world’s financial capital in 1931, and the British abandonment of the gold standard set off a chain of reactions throughout the world.

“Strangely enough Germany and Austria maintained the gold standard…”

(Europe of the Dictators, Elizabeth Wiskemann, Fontana/Collins, 1977, page 92-93)

Nixon’s policies gave us the demise of Bretton Woods, while the economic gyrations of 1925-1931 were part of the lead-up to World War II.

The setting is both “infinitely different” across the decades but the feeling of “flying blind” applies to both cases: U.S.A. “closing the gold window,” August 1971 and Britain’s overturning Churchill’s 1925 return to the gold standard, by 1931. One gets the sense of “concealed turmoil” and a lot of “winging it” in both cases. Policy-makers disagreed and they all saw the world of their moments “through a glass, darkly.”