Don’t ask if artists deserve to be paid.

I frequently encounter comments on this blog and around the web reiterating the thematic question as to whether or not “artists should be paid as much as they are.” The inquiry is typically posed by contrasting the arts to other professions we likely consider more critical, like emergency medicine or teaching or epidemiology.  This attitude is a bit of a shift in for artists, who are historically used to the idea that not even friends and family will take them seriously until they make a living; but regardless of the chimerical mood in the peanut gallery, everyone should rest assured that in general artists still don’t make very much money.  Be happy or unhappy about that as you will.

Often, when I encounter this question asking what “artists deserve to get paid,” it is in regard to wealthy, creative and/or performing artists.   And this is something of a variation on the recurring theme “Why should pro sports stars get paid millions to play a game, when people like nurses struggle to pay their bills?”  This rhetorical and apparently rational question is based on the fallacy that financial value is somehow tied to social value, which it simply will never be in a free-market economy. (Please resist the urge to stump for communism here.)  NFL players are paid millions because football is worth billions, and this has nothing to do with the relative “importance” of the game.

But we should clarify something about semantics right away:  in general, artists are not “paid” in the sense that most people are paid based on a contract with an employer.  Most artists are entrepreneurs, and if the product(s) their business produces sells million of units, they’re going to earn revenue in the millions of dollars. We are not “paying” them a million-dollar salary, and yet comments I read often ask literally, “Should we pay them so much.”  One might think the artists they’re talking about are on the public payroll, and we’re checking a line item in the federal budget.  “Dammit!  We’re paying Kid Rock how much???”  So, the semantics are either carelessly or purposely misleading when employing the words we and pay.

In fact, the question being asked isn’t even comparable to the ongoing debate over the salaries and bonuses that are paid to c-class executives in major companies.  While the government should not impose a maximum compensation package that a business may pay its leadership, we have seen examples of a corporate culture that can aggravate wealth consolidation and even reward failure.  When executives make four-hundred times the salary of a company’s average worker and may also receive an multi-million-dollar golden parachute, even for screwing up a corporation, these occurrences certainly beg the question as to whether or not these people should be paid so much?  And while the thesis inquiry about artists’ pay seems to echo this line of inquiry about top executives, the two subjects have nothing to do with one another.

As stated, most artists function as small businesses and produce works on spec with a wide range of investment from pure sweat to millions of dollars.  They earn revenues through sales of their works ranging from supplemental income, to full-time professional salaries, to cha-ching for a fortunate few.  It doesn’t matter if an independent business sells widgets or cheese boards or record albums; it is simply preposterous to ask whether or not the seller “deserves” the revenue from the units she is able to sell. But of course, that’s not really what the people who pose this question are asking, is it?  What they’re really asking is why they should pay for works produced by artists at all, and they are rationalizing a desire to not pay with a smokescreen of faux-humanist gibberish about creative work being less socially important than work in medicine or education.  But aside from the fact that the teacher and the doctor probably can’t perform a song anyone wants on his iPod, the real folly in this entire line of reasoning is that the doctor, the teacher, the plumber, and the fool asking the question are all economically co-dependent on that artist we’re arbitrarily presuming to remove from the ecosystem.

I know I’ve used the ecosystem analogy before, but it seems to me that it is economic suicide to eradicate a vital business engine just as it can be ecological suicide to eradicate a vital species.  We don’t necessarily know the exact cost of losing a particular beetle to deforestation, but we do know all species are interdependent and, therefore, view diversity as salubrious and extinction as hazardous.  How is an economy any different?  You would likely never be able to follow a path from a new creative venture in Singapore affecting trading that afternoon in Hong Kong, triggering a flurry of international trades, leading to a windfall in Seattle that seeds a company that offers you your next job.  But we do know that this matrix of chaos is what we call the economy, and we, therefore, accept the general principle that a rising tide raises all boats and vice versa.  Thus, most things with intrinsic economic value (i.e. things people want or need) that can be part of the grand game of trade are universally beneficial.  Put it another way, one benefits economically from the financial success of rock bands one hates. So, it is self-destructive to argue in favor of diminishing any legal, fair, and prosperous trade, especially if that trade is as economically diverse as the arts.  Diversity equals stability.

Some have argued that there is no economic harm in under-paying or not paying for entertainment media that is consumed.  Without so much as a wink, lobbyist Matt Schruers in July of 2013 wrote an article on behalf of the CCIA (Computer & Communications Industry Association) that rather astonishingly stated that “money not spent on pirated content is, in many cases, still spent.”  Hard to argue with that, but the implication that no harm is done as long as the money goes into the economy somehow is a shell game. Let’s make an evening of it…

You can save about twelve bucks by pirating three movies instead of renting them.  And with that twelve dollars, you can order a pizza to eat while watching one of your pirated films.  So, like Schruers said, that money still goes into the economy, right?  Yes, but at this point, you should probably skip the movies and the pizza and go back to economics class because what you’ve actually done is consume about $24 worth of goods and put $12 into the economy. Multiply that activity by millions of consumers and watch what happens, not just to one industry, but quite possibly to your job.  Because further exacerbating the folly of this false logic, you’ve just fed one sector of the economy that is considerably less robust than the sector you chose to starve. The core motion picture industry employs nearly two million Americans making over $100 billion in wages, and that contributes substantially to support jobs all over the country in completely unrelated industries. Like pizzerias.  Still, in some minds, that kind of wealth in the movie business translates into “they’re so rich, they don’t need my four dollar rental fee,” and this is the perfect attitude to adopt if you hope to go from being the guy ordering that pizza to one day applying for the job of delivering it.  It is far better for your overall economic health to rent one movie, buy one pizza, and tip the delivery guy for a grand total of about $18 and thus feed three tiers of the economy in a single night’s use of your disposable income.  It’s the same thing prudent investors do when they spread their bets.  Diversity equals stability.

It is a conundrum.  The technology that makes paying for creative works functionally optional fosters the notion that it is morally optional and, therefore, rationally objectionable. This leads to earnest discussion as to whether or not producers even “deserve” revenue for the things we consume; and once again, we see an example in which the technology that is supposed to connect us all actually blinds some of us to the ways in which we really are connected.

Is an old conservative message working with new progressives?

As American progressives, especially New Yorkers, honor the passing this week of Mario Cuomo, editorials and eulogies in various forms will cite the former governor’s famous keynote address at the 1984 Democratic National Convention.  In this speech, Cuomo challenged President Reagan’s statement that America is “a shining city on a hill,”  which comes from Matthew 5:14; and it is a phrase that has been synonymous with America’s unique capacity for divinely presumed exceptionalism since John Winthrop first invoked the words in advance of founding the Massachusetts Bay Colony.  (All credit to historian Sarah Vowell for making these connections in her book The Wordy Shipmates.)

Cuomo addressed Reagan directly, accusing the president of living in an ivory tower from which “the city” may indeed look shiny to him and his wealthy friends, but down on street level, where people work, struggle, and endure deprivations like homelessness, the American city is neither shiny nor on a hill.  Progressives like me didn’t think much of Reagan’s rhetoric that often glossed over real challenges (like energy and climate issues) that we are only now beginning to take seriously.  And we didn’t buy into supply-side economics or the deregulatory agenda that helped foster a culture of “conspicuous consumption,” which continues to distort the principles of responsible capitalism to the extent that contemporary progressives seem to have broken faith with the idea that the system remains a rational, economic model for a free society.

This understandable frustration, combined with an equal measure of distrust in government, appears to be leading many social progressives toward economic libertarianism that, ironically enough, champions the same deregulatory paradigm long-cherished by the trickle-down, supply-side conservatives.  What’s different this time is that it isn’t financial services, extraction industries, or the manufacturing sector promising the “market will solve everything if government gets off our backs,” it’s the high-tech industry, the disruptors of Silicon Valley.  Many of us democrats and progressives marveled at Reagan’s ability to teach the conservative, working-class base to vote against its own self-interests, and now the technocrats appear to be teaching progressives to do the same thing.

In an article that appeared yesterday in The Washington Post, writer Larry Downes offers old-school, industry-serving declarations dressed up in the new lingo used by the tech industry elite. Touting what he calls “Big Bang Disruptions,” Downes is not only promoting a new book, he is serving up classic, conservative rhetoric, sprinkled with a dash of Schumpeter, and folded into byte-sized hors d’oeuvres that smell tasty and fresh, but are really just pigs in a blanket again.  It’s just another business sector saying, “Get out of the way, and technology (i.e. the market) will meet all challenges and bring about prosperity.” And the reason I think this GOP stand-by is now playing among progressives is the aforementioned disenchantment with government in general and the nature of the Internet, which many see as an antidote to or substitute for government.  I honestly think we’re at a baby-with-the-bathwater moment when faith in both private and public systems is so low, that even traditional progressives are susceptible to messages like this one from Downes:

“We see . . . the FDA’s growing discomfort with new technologies, such as the DNA testing service 23andMe, that are being translated into new products and services circling the moribund health care industry, giving patients access to information about their own bodies that have long been the exclusive fiefdom of medical professionals.”

Of course such populist ebullience must be tempered in light of this piece by Sarah Zhang, which appeared Tuesday on Gizmodo; it reports that the supposedly self-empowering 23andMe is entering into deals with large biotech firms to sell the DNA data people have been voluntarily providing to the company through its app.  Not that I don’t hand it to guys who figured out how to make billions from spit, but Downes’s implication that their business model is going to solve the underlying flaws in American healthcare by disrupting the “fiefdom of medical professionals” is farcical.  Of course, nobody should be surprised that selling user data is where the money is, not only for these high-tech expectorant collectors, but for most of the companies Downes is assuring us will “build the future” if the damned regulators will just stay out of the way.

And I have little doubt they will build the future, but on the chance that it starts to look like a future we don’t like, on the chance we don’t want to allow our genetic data to be sold like bundled securities, I have to ask my fellow progressives precisely what hedge against this kind of corporate practice might they propose other than government?  We could argue about it on Facebook and Twitter, I suppose, but because Silicon Valley is interconnected by an incestuously small pool of venture capital, this “representation” through social media only makes more money for the new elite in their new towers. And from up there, America really does look a lot like a shiny city on a hill, doesn’t it?

It is also worth noting that some of the most successful Silicon Valley firms don’t have a particularly good track record for abiding by rules and regulations in the first place.  In their own words, they like to “break things” and “get big fast” and “apologize later,” meaning they’ll settle lawsuits and pay fines after  a few million dollars is a mere drop in their over-valued buckets.  As such, I think a little skepticism is warranted in response to the assertion that a shiny future is somehow being delayed by the prospect of regulatory oversight.

Rules are ignored, broken, and fought against daily by these companies, so where is the unfettered prosperity?  The economy is certainly healthier than it was when we were on the brink of disaster, but is the gap closing or widening between the ultra-rich and everyone else?  One need only look in Silicon Valley’s own neighborhood to see that not much trickles down from those particular hills to the streets below. And if an industry is not closing that gap through legitimate creative destruction, but is potentially widening that gap with with destructive destruction, then it has no right to say to the public, “Back off. We got this.”

“The Internet is Not the Answer” with Andrew Keen (podcast)

Keen-Internet book jacket

Andrew Keen’s new book, The Internet is Not the Answer (Atlantic Monthly Press), goes on sale today.  This is the third book Keen has written about the Internet and digital-age culture. A native of London, Keen first became an Internet entrepreneur in the US with the founding of Audiocafe.com in 1995, and this new book cites his own personal conversion from early evangelist of techno-utopian ideas to an observer with a more critical view of how and why the evolution of the Web is failing to fulfill many of its founding ideals.  Through first-hand accounts and solid research, Keen describes how some of the most influential technology leaders abandoned the egalitarian and democratizing goals of the Internet in favor of business strategies that have produced, and will continue to produce, a winner-take-all-economy that only serves to exacerbate wealth stratification throughout the market.   While economics are the central theme of this new book, Keen also discusses culture, sociology, and in particular privacy, saying that we are voluntarily creating a surveillance state that would be the envy of the East German Stasi.

Keen believes, as I do, that government must play a role — that if we naively think the Internet obviates the role of regulation and law enforcement through representative government, that we are only empowering an oligarchy and not ourselves.  The Internet is Not the Answer is an approachable read for anyone with no prior knowledge of digital-age issues, and for all its seriousness and dire warnings, Keen’s writing is lighthearted, personal, at times very funny, and is ultimately optimistic.

For more information about Andrew, visit www.ajkeen.com.

The Internet is Not the Answer is reviewed here by Michael Harris for The Washington Post.