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Moore Robert

Robert Reich: WhatsApp Is Everything Wrong with the U.S. Economy

The instant messaging service connects millions, but its record-breaking sale won"t generate new jobs.

This originally appeared on Robert Reich"s blog.

 

If you ever wonder what’s fueling America’s staggering inequality, ponder Facebook’s acquisition of the mobile messaging company WhatsApp.

According to news reports today, Facebook has agreed to buy WhatsApp for $ 19 billion.

That’s the highest price paid for a start-up in history. It’s $ 3 billion more than Facebook raised when it was first listed, and more than twice what Microsoft paid for Skype.

(To be precise, $ 12 billion of the $ 19 billion will be in the form of shares in Facebook, $ 4 billion will be in cash, and $ 3 billion in restricted stock to WhatsApp staff, which will vest in four years.)

Given that gargantuan amount, you might think WhatsApp is a big company. You’d be wrong. It has 55 employees, including its two young founders, Jan Koum and Brian Acton.

WhatsApp’s value doesn’t come from making anything. It doesn’t need a large organization to distribute its services or implement its strategy.

It value comes instead from two other things that require only a handful of people. First is its technology — a simple but powerful app that allows users to send and receive text, image, audio and video messages through the Internet.

The second is its network effect: The more people use it, the more other people want and need to use it in order to be connected. To that extent, it’s like Facebook — driven by connectivity.

WhatsApp’s worldwide usage has more than doubled in the past nine months, to 450 million people — and it’s growing by around a million users every day. On December 31, 2013, it handled 54 billion messages (making its service more popular than Twitter, now valued at about $ 30 billion.)

How does it make money? The first year of usage is free. After that, customers pay a small fee. At the scale it’s already achieved, even a small fee generates big bucks. And if it gets into advertising it could reach more eyeballs than any other medium in history. It already has a database that could be mined in ways that reveal huge amounts of information about a significant percentage of the world’s population.

The winners here are truly big winners. WhatsApp’s fifty-five employees are now enormously rich. Its two founders are now billionaires. And the partners of the venture capital firm that financed it have also reaped a fortune.

And the rest of us? We’re winners in the sense that we have an even more efficient way to connect with each other.

But we’re not getting more jobs.

In the emerging economy, there’s no longer any correlation between the size of a customer base and the number of employees necessary to serve them. In fact, the combination of digital technologies with huge network effects is pushing the ratio of employees to customers to new lows (WhatsApp’s 55 employees are all its 450 million customers need).

Meanwhile, the ranks of postal workers, call-center operators, telephone installers, the people who lay and service miles of cable, and the millions of other communication workers, are dwindling — just as retail workers are succumbing to Amazon, office clerks and secretaries to Microsoft, and librarians and encyclopedia editors to Google.

Productivity keeps growing, as do corporate profits. But jobs and wages are not growing. Unless we figure out how to bring all of them back into line – or spread the gains more widely – our economy cannot generate enough demand to sustain itself, and our society cannot maintain enough cohesion to keep us together.

 

Related Stories

• Facebook mega-deal for WhatsApp "a brilliant move"


• Facebook bets big on mobile with $ 19 bn WhatsApp deal


• How We Can Use Social Media to Build a Better World

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Robert Reich: WhatsApp Is Everything Wrong with the U.S. Economy

Robert Dew Settlement Proves Police Still Can’t Wrongfully Arrest Journalists

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Robert Dew Settlement Proves Police Still Can’t Wrongfully Arrest Journalists

Why is Zimbabwe’s Robert Mugabe not a Hero?

by Shenali D Waduge

Robert Mugabe has to be one of the West’s worst nightmares. He is certainly one  amongst the handful remaining Africans that is open against white oppression. Africa needs African leaders rooted in Africa not African leaders that the West hero worships because they are ready to continue white supremacy. This was the difference between Mugabe and Mandela. Robert Mugabe is fighting to reverse the legacy of colonialism, Mandela was prepared to continue Apartheid economy in exchange for black political power that really meant nothing for the blacks. How wrong can Mugabe be when he says the land and natural resources belong to Zimbabwe and not to white colonialists? Mugabe has ruled Zimbabwe since independence in 1980. Mugabe is the only native leader who ever repossessed territory that was usurped by foreign colonisers. And he did so while they were in full occupation and while they were actively farming and prospering. No other African leader has ever re-possessed land while the purloined real estate was actively occupied by the usurpers. Mugabe did it! And he did so single-handedly! That surely must judge his heroism.

Zimbabwe was formerly known as Rhodesia named after Cecil Rhodes – the only Rhodes memory today is that of the Rhodes Scholarship. Cecil Rhodes was defeated but the British were quick to appoint Idi Amin to look after their interests. The Heroes of the whites are those willing to ensure that no blacks will touch any of the land the whites had stolen. They loved Mugabe when he like many other white appointed leaders were ready to dance to the white tune. That however did not last long.

Mugabe was in fact given knighthood in 1994 by the British Government! Sir Robert Mugabe Knight Commander of the Order of the Bath of course he was stripped of the title 7 years later. Lord Doughlas Hurd was foreign secretary when Mugabe was given knighthood and when questioned he said the knighthood may have been given because Mugabe hosted the Commonwealth. Lets hope President Rajapakse is not fooled into this possibility by his advisors!

When these leaders started to shift allegiance, the heroes soon became villains. We all know how Osama, Saddam, Gaddafi fell from grace. BBC wrote glowing reports on Mugabe for 25 years up until the time Mugabe started introducing land reforms. Thereafter the white media started to promote Morgan Tsangvirai’s MDC party after the West started to pumping cash. MDC was no different to South African ANC – both ready to allow the whites to continue the economic hold on their respective countries.

Sanctions became the best way the West knew to deal with Zimbabwe. US froze credit against Zimbabwe and this was how Zimbabwe’s economic troubles started and not during the land reclamation. The white media was quick to relay about whites being forced off the land. Every story will refer to create a false scenario that Zimbabwe’s problem are because the whites lost their land and had to leave and not because the credit was removed. Reclaiming lands did not cause starvation – sanctions against Zimbabwe did. Robert Mugabe has not committed any action against the US, nor supported any terror but he remains on the terror list. Mugabe was wise to strike up alliances that would protect Zimbabwe and protection came. China blocked moves for military intervention that US and Britain was attempting to achieve through the UN.

 Mandela is a hero because he was ready to dance to the tune of the imperialists. 65% blacks in South Africa remain unemployed while 90% of whites remain rich and in possession of over 90% of South Africa’s wealth because Mandela was quite prepared to keep it that way and for maintaining the status quo Mandela remains their hero. Let us not forget that none of the Whites ever confessed to any crimes before the Truth and Reconciliation Commission. Blacks remain very poor in a very rich nation with white South Africans still very rich. This is narrative of reconciliation appears nothing but a bogey to avoid coming down to real terms to discuss violations and the redress of these violations

The whites possessed the title deeds for the finest agricultural land upon which they established 70.000 mega-farms. And they farmed the land for 110 years. The physical labour was provided by the natives of the country. And these people were virtually enslaved.

Mr Mugabe said he embarked on the land-grab programme in 2000 to address the expropriation of land from blacks during white rule that ended after a civil war in 1980. 

 Zimbabwe’s land reforms are an envy to most. Of course we need to always keep in mind that there are sanctions and limitations. But given that the land is now under ownership of Zimbabweans who are slowly putting the land to use, with proper investments and if treated as co-partners instead of mere employees of western foreign governments Zimbabwe would surely prosper. This is a good lesson for other Third World countries ever ready to dole out land to foreign investors and leaving their own people mere employees in lands that belong to the natives.

 The indigenisation policies in the mining sector have added to the land-owning middle class by creating mining entrepreneurs. These are people who have taken advantage of the availability of state shares in foreign owned companies. The state owns 51% of the mineral resources part of which belongs to the community, another percentage is due to the employees.

Another is availed to the entrepreneurs who can purchase them. The rest is used by the state for the benefit of the country. The minerals under Zimbabwean soil belong to Zimbabwe and anyone who needs them must join Zimbabweans on that basis. The West must therefore stop the silly regime change programs that are being replicated the world over simply to put white men on indigenous ground or get indigenous men who would work on behalf of the whites – only a thin line sets both apart.

Let us remind ourselves that it was only after the British were confident that they had created enough ‘Yes Brown/Black Men’ that they decided to give independence and bumped off the real nationalists who would have stood in the way of their outsourced domination.

Global Research

Why is Zimbabwe’s Robert Mugabe not a Hero?

The Alex Jones Show(2nd HOUR-VIDEO Commercial Free) Tuesday November 12 2013: Robert Mazur

The Alex Jones Show(2nd HOUR-VIDEO Commercial Free) Tuesday November 12 2013: Robert Mazur

Militarizing the Boy Scouts former CIA Director & Secretary of Defense Robert Gates to become next president

MassPrivateI

The Boy Scouts of America on Wednesday chose former U.S. Secretary of Defense and CIA director Robert Gates as its next president, who will face the task of repairing divisions in the organization from a heated debate over accepting gay scouts.

As Defense Secretary, Gates supported President Barack Obama’s withdrawal of the “Don’t Ask, Don’t Tell” policy that prevented gays and lesbians from serving openly in the military. Congress repealed the ban in 2010 and it was lifted in 2011.  

Gates will succeed Wayne Perry, who led the scouting organization through the emotionally charged debate in May when the council voted to lift a century-old ban on openly gay scouts.

The ban on gay scouts will officially end on Jan. 1, 2014. A prohibition on openly gay adult leaders remains in place.

Gates, 70, served in various roles in the CIA including head of the intelligence agency from 1991 to 1993.

President George W. Bush appointed him defense secretary in 2006 and he was retained by Obama, making him the only defense secretary to be asked to remain in office by a newly elected president, according to the Department of Defense.

He has also served as president of Texas A&M University. 

BoyScouts trained to fight terrorists & more in the Law Enforcement Explorer Program:

The Explorers program, a coeducational affiliate of the Boy Scouts of America that began 60 years ago, is training thousands of young people in skills used to confront terrorism, illegal immigration and escalating border violence — an intense ratcheting up of one of the group’s longtime missions to prepare youths for more traditional jobs as police officers and firefighters. (Germany had the Hitler Youth program, which bears a striking resemblance to the “explorer program”)

“This is about being a true-blooded American guy and girl,” said A. J. Lowenthal, a sheriff’s deputy here in Imperial County, whose life clock, he says, is set around the Explorers events he helps run. “It fits right in with the honor and bravery of the Boy Scouts.”

The training, which leaders say is not intended to be applied outside the simulated Explorer setting, can involve chasing down illegal border crossers as well as more dangerous situations that include facing down terrorists and taking out “active shooters,” like those who bring gunfire and death to college campuses. In a simulation here of a raid on a marijuana field, several Explorers were instructed on how to quiet an obstreperous lookout.

“Put him on his face and put a knee in his back,” a Border Patrol agent explained. “I guarantee that he’ll shut up.”

Many law enforcement officials, particularly those who work for the rapidly growing Border Patrol, part of the Homeland Security Department, have helped shape the program’s focus and see it as preparing the Explorers as potential employees. The Explorer posts are attached to various agencies, including the Federal Bureau of Investigation and local police and fire departments, that sponsor them much the way churches sponsor Boy Scout troops.

“Our end goal is to create more agents,” said April McKee, a senior Border Patrol agent and mentor at the session here.

Membership in the Explorers has been overseen since 1998 by an affiliate of the Boy Scouts calledLearning for Life, which offers 12 career-related programs, including those focused on aviation, medicine and the sciences.

More than 2,000 law enforcement posts across the country are the Explorers’ most popular, accounting for 35,000 of the group’s 145,000 members, said John Anthony, national director of Learning for Life. Since the attacks of Sept. 11, 2001, and the wars in Iraq and Afghanistan, many posts have taken on an emphasis of (indoctrinating)fighting terrorism and other less conventional threats. 
http://www.newsmax.com/US/robert-gates-defense-secretary/2013/10/30/id/533987
http://www.nytimes.com/2009/05/14/us/14explorers.html?_r=3&hp&
http://www.salinesheriff.org/expscout.html 
http://gaexplorers.com/
http://www.margatefl.com/police/npd/explorers.htm
http://www.thelibertypapers.org/2009/05/14/boy-scout-training-put-him-on-his-face-and-put-a-knee-in-his-back/

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http://massprivatei.blogspot.com/2013/11/militarizing-boy-scouts-former-cia.html

Militarizing the Boy Scouts former CIA Director & Secretary of Defense Robert Gates to become next president

VIDEO: Military Creates Real Life Iron Man Suit

The technology that turned Tony Stark from civilian to cyborg is moving from the big screen to the battlefield! The United States Army has commissioned the real-life production of a “tactical assault light operator suit” and its’ capabilities are insane! Once inside, soldiers would essentially become superhuman. Just like Jarvis, a hyper-responsive on-board computer offers enhanced situational awareness, plus basic life support like heat, air conditioning and oxygen. Sounds like Robert Downey Jr. may have some serious competition!

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VIDEO: Military Creates Real Life Iron Man Suit

VIDEO: Military Creates Real Life Iron Man Suit

The technology that turned Tony Stark from civilian to cyborg is moving from the big screen to the battlefield! The United States Army has commissioned the real-life production of a “tactical assault light operator suit” and its’ capabilities are insane! Once inside, soldiers would essentially become superhuman. Just like Jarvis, a hyper-responsive on-board computer offers enhanced situational awareness, plus basic life support like heat, air conditioning and oxygen. Sounds like Robert Downey Jr. may have some serious competition!

Thanks for checking us out. Please take a look at the rest of our videos and articles.

To stay in the loop, bookmark our homepage.

VIDEO: Military Creates Real Life Iron Man Suit

Can Robert Griffin III Save the NFL?

Washignton’s Robert Griffin III warms up before playing the Buffalo Bills during a preseason game at FedEx Field on Aug. 24, 2013 in Landover, Md.

Photo by Patrick Smith/Getty Images

It’s a widely held and probably comforting view that sports are driven by “transformative” athletes, a procession of unprecedented individual talents—Pelé, Michael Jordan, Tiger Woods—that heroically drag their games to ever-escalating heights. Occasionally these players prompt physical transformations and rule changes, but usually their impact is more nebulous. Jordan never made anyone seriously consider raising the height of the hoop. He just played basketball better and more shrewdly than anyone else, and in doing so, he altered basketball’s cultural footprint, clearing the way for Kobe Bryant, LeBron James, maybe even Andrew Wiggins.

Robert Griffin III, 23 years old with a twice-reconstructed right knee, is, we’re told, one of these transformative athletes. This offseason, Griffin has been the subject of two full-length books, Dave Sheinin’s RG3: The Promise and Ted Kluck’s Robert Griffin III: Athlete, Leader, Believer, and both frame Griffin as an epochal, superhuman talent. “Someday historians may look back at the Redskins’ second play from scrimmage in their win over the Saints and pinpoint it as the moment offensive football changed forever in the NFL,” writes Sheinin. Kluck’s explicitly faith-based book goes even further, offering up RG3 as a sort of Cartesian theological proof: “RG3 and football should remind us of who it is that we really worship. … There’s something in Robert’s game that suggests that God made him to do exactly this, exactly now.” Take that, Tim Tebow.

Griffin was also the focus of a recent hourlong ESPN special that documented his rehabilitation process, his family life, and his insatiable thirst for Gatorade. And in May, Washington fans unearthed Griffin’s wedding registry and showered him and his fiancée with gifts, the sort of desperate affection normally lavished on a coveted free agent or a star player feared to be on the verge of departure. If Sunday football is America’s secular religion, all of this hagiography and breathless devotion has made Griffin seem like some blessed apparition: precious, magical, fleeting. We love him, and because we love him, we can’t stop worrying about him.

On Monday night, Griffin will embark on what’s likely to be the most scrutinized, parsed and reparsed, second-, third-, and fourth-guessed season in the history of American professional sports. Some of this has to do with his position as arguably the most popular player in the country’s most popular game. Mostly it is because of that right knee, a body part that’s become a microcosm for America’s mixed-up love affair with football.

As an athlete, marketing conduit, and general ambassador for the human race, Robert Griffin III leaves awfully little to be desired. A Texas high school football legend who was also a basketball star and an Olympic-caliber hurdler, Griffin passed on Stanford and Harvard to stay close to home at Baylor University, where he graduated with a 3.67 GPA, a degree in political science, and the 2011 Heisman Trophy. The following spring, Washington swung a blockbuster trade to draft Griffin second overall, after Andrew Luck. Before taking his first snap, the young quarterback had signed lucrative endorsement deals with Gatorade, Adidas, Subway, Nissan, and other corporate interests.  

Griffin did not disappoint any of his new employers. In his first season, he was named the NFL’s offensive rookie of the year, leading the league in yards per passing attempt and yards per rushing attempt while setting a rookie record for quarterback rating. This was one of the most electrifying debut seasons in football history, one in which RG3 appeared to usher the sport into a new era athletically, aesthetically, and culturally.

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Can Robert Griffin III Save the NFL?

Robert Gibbs: Obama Needs To Address Public, Make Case For Syria

ROBERT GIBBS: It’s really incumbent on the president to go speak directly to the American people about what’s at stake for this country and how we face down dictators that use chemical weapons against their own people. It’s an important message to be heard not just in Damascus, but in Iran and by Hezbollah

###

GIBBS: I think he will get the votes. I think the Senate will be much easier. I think it will be very, very difficult in the House, I think folks will spend a lot of time on the phones.

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Robert Gibbs: Obama Needs To Address Public, Make Case For Syria

Robert Zimmerman: No Liftoff for These Space Flights of Fancy

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Robert Zimmerman: No Liftoff for These Space Flights of Fancy

Conspiracy Theory Rock By Robert Smigel

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