November 14, 2018

Archives for June 20, 2018

Reframing “The Economy”

We’ve seen that conventional thinking about “the economy” struggles to accommodate technologies such as machine learning, robotics, and artificial intelligence — which means it’s ripe for a big dose of reframing. Reframing is a problem-solving strategy that flips our usual ways of thinking so that blind spots are revealed, conundrums resolved, polarities synthesized, and barriers transformed into logistics.

The Santa Fe Institute is on the reframing case: Rolling Stone called it “a sort of Justice League of renegade geeks, where teams of scientists from disparate fields study the Big Questions.” W. Brian Arthur is one of those geeks. He’s also onboard with PARC — a Xerox company in “the business of breakthroughs” — and has written two seminal books on complexity economics: Complexity and the Economy (2014) and The Nature of Technology: What it Is and How it Evolves (2009). Here’s his pitch for reframing “the economy”:

The standard way to define the economy — whether in dictionaries or economics textbooks — is as a “system of production and distribution and consumption” of goods and services. And we picture this system, “the economy,” as something that exists in itself, as a backdrop to the events and adjustments that occur within it. Seen this way, the economy becomes something like a gigantic container . . . , a huge machine with many modules or parts.

I want to look at the economy in a different way. The shift in thinking I am putting forward here is . . . like seeing the mind not as a container for its concepts and habitual thought processes but as something that emerges from these. Or seeing an ecology not as containing a collection of biological species, but as forming from its collection of species. So it is with the economy.

The economy is a set of activities and behaviors and flows of goods and services mediated by — draped over — its technologies: the of arrangements and activities by which a society satisfies its needs. They include hospitals and surgical procedures. And markets and pricing systems. And trading arrangements, distribution systems, organizations, and businesses. And financial systems, banks, regulatory systems, and legal systems. All these are arrangements by which we fulfill our needs, all are means to fulfill human purposes.

George Zarkadakis is another Big Questions geek. He’s an artificial intelligence Ph.D. and engineer, and the author of In Our Own Image: Savior or Destroyer? The History and Future of Artificial Intelligence (2016). He describes his complexity economics reframe in a recent article “The Economy Is More A Messy, Fractal Living Thing Than A Machine”:

Mainstream economics is built on the premise that the economy is a machine-like system operating at equilibrium. According to this idea, individual actors – such as companies, government departments and consumers – behave in a rational way. The system might experience shocks, but the result of all these minute decisions is that the economy eventually works its way back to a stable state.

Unfortunately, this naive approach prevents us from coming to terms with the profound consequences of machine learning, robotics and artificial intelligence.

Both political camps accept a version of the elegant premise of economic equilibrium, which inclines them to a deterministic, linear way of thinking. But why not look at the economy in terms of the messy complexity of natural systems, such as the fractal growth of living organisms or the frantic jive of atoms?

These frameworks are bigger than the sum of their parts, in that you can’t predict the behaviour of the whole by studying the step-by-step movement of each individual bit. The underlying rules might be simple, but what emerges is inherently dynamic, chaotic and somehow self-organising.

Complexity economics takes its cue from these systems, and creates computational models of artificial worlds in which the actors display a more symbiotic and changeable relationship to their environments. Seen in this light, the economy becomes a pattern of continuous motion, emerging from numerous interactions. The shape of the pattern influences the behaviour of the agents within it, which in turn influences the shape of the pattern, and so on.

There’s a stark contrast between the classical notion of equilibrium and the complex-systems perspective. The former assumes rational agents with near-perfect knowledge, while the latter recognises that agents are limited in various ways, and that their behaviour is contingent on the outcomes of their previous actions. Most significantly, complexity economics recognises that the system itself constantly changes and evolves – including when new technologies upend the rules of the game.

That’s all pretty heady stuff, but what we’d really like to know is what complexity economics can tell us that conventional economics can’t.

We’ll look at that next time.

 

Kevin Rhodes writes about individual growth and cultural change, drawing on insights from science, technology, disruptive innovation, entrepreneurship, neuroscience, psychology, and personal experience, including his own unique journey to wellness — dealing with primary progressive MS through an aggressive regime of exercise, diet, and mental conditioning. Check out his latest LinkedIn Pulse article: “Rolling the Rock: Lessons From Sisyphus on Work, Working Out, and Life.”

Colorado Supreme Court: Respondents’ Complaint Asserted Timely Claim Seeking Declaration that Ordinance Violated City Charter

The Colorado Supreme Court issued its opinion in City of Boulder v. Public Service Co. of Colorado on Monday, June 18, 2018.

Declaratory Judgment Actions—C.R.C.P. 57—C.R.C.P. 106—Municipal Ordinances—Finality.

This case arises out of respondents’ challenge to petitioner city’s attempt to create a light and power utility. Respondents assert that the ordinance establishing the utility violates the city’s charter. Respondents thus seek a declaratory judgment deeming that ordinance null and void. The city asserted that respondents’ complaint was, in reality, an untimely C.R.C.P. 106 challenge to a prior ordinance by which the city had concluded that it could meet certain prerequisites for the formation of the utility as prescribed by the city charter. The district court agreed with the city and dismissed respondents’ complaint for lack of jurisdiction. A division of the court of appeals, however, vacated the district court’s judgment, concluding that neither of the pertinent ordinances was final and therefore respondents’ complaint was premature.

The supreme court reversed the division’s decision and remanded the case for further proceedings on respondents’ declaratory judgment claim. Although the court agreed with the city that the division erred, contrary to petitioners’ position and the premises on which the courts below proceeded, the court agreed with respondents that the complaint asserted a viable and timely claim seeking a declaration that the ordinance establishing the utility violated the city charter. Accordingly, the court concluded that the district court had jurisdiction to hear respondents’ declaratory judgment claim, and the court remanded the case to allow that claim to proceed.

Summary provided courtesy of Colorado Lawyer.

Colorado Supreme Court: Jury’s Refusal to Convict on Pattern of Abuse Charge Does Not Necessitate Retrial on Only Single Act

The Colorado Supreme Court issued its opinion in In re People v. Stackhouse on Monday, June 18, 2018.

Double Jeopardy.

Pursuant to C.A.R. 21, the People challenged a district court order granting Stackhouse’s motion to compel the People to elect a particular allegation of sexual assault on a child as their sole basis for proceeding in Stackhouse’s retrial. The supreme court held that the district court erred when it concluded that the jury in Stackhouse’s first trial had necessarily concluded that he did not commit multiple acts of assault, and therefore that he could not be retried for more than a single assault. The court made the rule to show cause absolute, reversed the district court’s order, and remanded the case to the district court for further proceedings.

Summary provided courtesy of Colorado Lawyer.

Tenth Circuit: Unpublished Opinions, 6/20/2018

On Wednesday, June 20, 2018, the Tenth Circuit Court of Appeals issued no published opinion and four unpublished opinions.

Brooks v. Gabriel

Allen v. Lang

Burnett v. Miller

Mielnicki v. Wal-Mart Stores, Inc.

Case summaries are not provided for unpublished opinions. However, some published opinions are summarized and provided by Legal Connection.

Hon. Stephen J. Sletta and Hon. Regina Walter to Retire from El Paso County Court

On Thursday, June 15, 2018, the Colorado State Judicial Branch announced the retirement of Hon. Stephen J. Sletta and Hon. Regina Walter. Both judges sit on the El Paso County Court, and their retirements will be effective on January 7, 2019.

Judge Sletta was appointed to the El Paso County Court in 1991. He mostly presides over a docket of civil cases, including traffic violations and misdemeanor charges. Prior to his appointment to the bench, he was in private practice for 15 years. He received his undergraduate degree from Colorado College and his law degree from the University of Colorado School of Law.

Judge Walter was appointed to the El Paso County Court in August 2008. Prior to her appointment, she was an El Paso County Court magistrate for 21 years, working in the juvenile court. She was also a deputy public defender prior to her appointment as a magistrate. She received her undergraduate degree from Colorado College and her law degree from the University of Tulsa College of Law.

Applications are now being accepted for both upcoming vacancies. Eligible applicants must be qualified electors of El Paso County and must have been admitted to practice law in Colorado for five years. Application forms are available on the State Judicial website or from Justice Carlos A. Samour, Jr., the ex officio chair of the Fourth Judicial District Nominating Commission. Applications must be received no later than 4 p.m. on July 23, 2018; anyone wishing to nominate another must do so no later than July 16, 2018.

For more information about the vacancies, click here.

Colorado Supreme Court: Colorado Court Lacks Jurisdiction to Award Attorney Fees for Foreign Action

The Colorado Supreme Court issued its opinion in Roberts v. Bruce on Monday, June 18, 2018.

Attorney Fees—Statutory Interpretation.

In this case, the supreme court considered whether a trial court may award attorney fees under C.R.S. § 13-17-102 for conduct occurring outside Colorado courts. Reviewing the plain language of 13-17-102, the court concluded that an award of attorney fees pursuant to that section is limited to conduct occurring in Colorado courts and therefore affirmed the judgment of the court of appeals.

Summary provided courtesy of Colorado Lawyer.

Colorado Supreme Court: Foundational Documents Insufficient to Create Homeowners Association for Common Land

The Colorado Supreme Court issued its opinion in McMullin v. Hauer on Monday, June 18, 2018.

Colorado Common Interest Ownership Act—Common Interest Communities—Homeowners’ Associations.

The supreme court reviewed the court of appeals’ opinion affirming the trial court’s order finding that the recorded instruments in this case were sufficient to create both a common interest community by implication and an unincorporated homeowners’ association. The court held that the recorded instruments were insufficient under the Colorado Community Interest Ownership Act to create a common interest community by implication. Accordingly, the court reversed the court of appeals’ judgment and remanded the case for further proceedings consistent with this opinion.

Summary provided courtesy of Colorado Lawyer.

Colorado Supreme Court: District Court Erred in Requiring Party to Settle for Anticipated Loss Because That Would Require Giving Up Contractual Rights

The Colorado Supreme Court issued its opinion in United States Welding, Inc. v. Advanced Circuits, Inc. on Monday, June 18, 2018.

Breach of Contract—Mitigation—Settlement Offer—Accord and Satisfaction.

U.S. Welding, Inc. (Welding) sought review of the court of appeals’ judgment affirming the district court’s order awarding it no damages whatsoever for breach of contract with Advanced Circuits, Inc. (Advanced). Notwithstanding its determination following a bench trial that Advanced breached its contract to purchase from Welding all its nitrogen requirements during a one-year term, the district court reasoned that by declining Advanced’s request for an estimate of lost profits expected to result from Advanced’s breach before the contract term expired, Welding failed to mitigate.

The supreme court reversed the court of appeals’ judgment concerning the failure to mitigate and remanded the case for further proceedings. The court held that the district court erred by requiring Welding to settle for a projection of anticipated lost profits, rather than its actual loss, as measured by the amount of nitrogen Advanced actually purchased from another vendor over the contract term, because an aggrieved party is not obligated to mitigate damages from a breach by giving up its rights under the contract.

Summary provided courtesy of Colorado Lawyer.

Tenth Circuit: Unpublished Opinions, 6/19/2018

On Tuesday, June 19, 2018, the Tenth Circuit Court of Appeals issued four published opinions and two unpublished opinions.

Cole v. City of Aurora

UET RR, LLC v. Comis

Case summaries are not provided for unpublished opinions. However, some published opinions are summarized and provided by Legal Connection.