How do I get my daughter interested in computers?

I get this question a lot, especially from Silicon Valley tech VCs. Tech execs genuinely want to get more women involved in software, but many find themselves thwarted by their very own daughters.

I think I can help.

“I sent my daughter to coding class, but she just isn’t interested.”

The first mistake is in thinking that the child should have any say in the matter. Kids don’t get to have free will, okay. If your daughter announces that she has no interest in learning algebra, would you allow her to forgo maths? Of course not.

FWIW, I learned to code at the local Boys Club (free day care for poor people). This was in the 1980s; I was six and probably hated it. Was my mother concerned about whether this was a gender-sensitive learning environment? No, we were immigrants, we took what we could get.

“My daughter wants to major in photography/journalism/basket-weaving.”

The second mistake is in allowing your child to believe that a career should be fulfilling and fun. The do-what-you-love mythology has led thousands of students to load up on debt for a degree in what amounts to a hobby.

Work isn’t fun. If work was supposed to be fun, they wouldn’t pay you to do it. Software engineering is no different. Yes, we hear about cool projects like self-driving cars and rockets to Mars, but most Silicon Valley engineers are working on boring stuff like server virtualization and load balancers. My first programming job consisted of generating test vectors for network routers. Don’t get me wrong; my current job is great. But it took many years of crap jobs to get here.

The thing I don’t understand is why people keep agitating for more women to do software in the first place. Sure, we get paid well, but so do actuaries and aircraft mechanics. And those workers don’t get put out to pasture by age 35.

More confusing still, is that the people screaming most loudly about getting girls to code are not themselves coders. Ellen Pao founded Project Include to get more women into tech, but the only engineer on her team is a dude.

The Project Include Team

Nobody becomes a software engineer because they love writing code; they become a software engineer because it allows them to build out ideas. This is a useful skill to have. Except that most software engineers aren’t realizing their own ideas. They’re getting paid to build someone else’s pet project. Software engineers are the wage labourers of the tech industry.

It’s an oft-overlooked fact that Silicon Valley doesn’t care about software engineers — We really worship the Venture Capitalists. Programming is for chumps, which is why we give 74% of software jobs to immigrants. If you’re a Venture Capitalist, the last thing you want is for your child to go into wage slavery. I think that constitutes some sort of dynastic regression.

The most important tech skill, then, isn’t computers or engineering — It’s the art of getting paid to control vast amounts of money. Then you can make programmers build out whatever dumb ideas you like. Parents who want their daughters to succeed in Silicon Valley need not worry about teaching their girls to code: Teach them about capitalism instead.

I’m from the government and I’m here to help

Every few days (hours?), we get a fresh reminder that the crypto industry is full of scams. Ponzi schemes, self-dealings, washed-up celebrity endorsements, blah blah blah. The pearl-clutchers invariably pipe up, knickers all in a twist, and demand that regulators step in and Do Something.

The nine most terrifying words in the English language are: I’m from the government and I’m here to help. –Ronald Reagan

Regulators are helpful, no doubt. It was helpful regulators who made small business investments inaccessible for all but the extremely wealthy. Helpful regulators, as well, who bailed out the big banks. Helpful regulators caused refugee charity groups to lose their bank accounts. Helpful regulators created a bunch of derisking regulations, which helpfully cut off remittances to Mexico and Latin America. Thanks to helpful regulations, 40 million American residents can’t even open a bank account.

It’s because regulators are so damn intrusively helpful that we need decentralized digital currencies in the first place.

Look, there’s a really easy solution for those who want to operate under a regulatory security blanket: Simply transact in your local fiat currency through the national banking system. Like magic, you’ll be barred from transferring funds to OFAC sanctioned countries and end up in a Suspicious Activity Report if you make too many cash deposits. Hooray.

The people who call for greater government oversight don’t want, need, or even use Bitcoin. The imposition of regulatory censorship would put us back at square one, again creating the need for a currency that no one has the power to manipulate.

Chesterton’s Blockchain: Don’t ever suggest regulation for a digital currency until you know how it arose and what purposes it was supposed to serve.

2nd Annual Lehman Brothers Award for the Creative Destruction of Wealth

Every year, my company selects an entity to recognize for their outstanding contribution to creative wealth destruction. Last year’s Lehman Brothers Award went to The DAO, a dumb smart contract that led to an even dumber bailout. We’ve since seen a whole bunch of copycat token offerings, each one bigger and stupider than the last. Pathbreaking pioneers, those DAO creators were.

This year, we chose to honor Google. Since 2014, Google has spent over $265 million on corporate diversity initiatives. After three years of unprecedented effort, Google’s gender gap and racial-demography gap are bigger than ever.

What an exemplary waste of resources!

[applause]

But wait, there’s more! Google has unlocked many additional achievements deserving of recognition. In the past year alone, the company has received the following honors:

Well done, Google. In your futile quest to discriminate against nobody, you have instead managed to discriminate against *everybody*.

[sustained, thunderous standing ovation]

Our most heartfelt congratulations to Sundar Pichai, Eric Schmidt, and all the other executives who worked so hard to make this happen. In closing, I leave you with some inspirational passages to empower and motivate your workforce in the path forward.

A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers by Lawrence McDonald and Patrick Robinson

Joe Gregory was a regular, run-of-the-mill, ho-hum financial sycophant, devoted to his master, Richard Fuld, but with few of the necessary tools and instincts to serve as president of Lehman Brothers. He suited the boss fine, however, since he posed not even the semblance of a threat and would do anything in the world for the chief.

Joe’s fixation was a subject called diversity. He was consumed with it. His aim was the mission of inclusion. He had an entire department devoted to it, headed up by a managing director. Great rallies were staged in New York’s auditoriums, with free cocktails and hors d’oeuvres served for up to six hundred people, all listening to Joe or one of his henchmen pontificating. “Inclusion! That must be our aim!” he would yell, as if we were running a friggin’ prayer meeting.

In Joe’s view, it was the culture of the corporation that mattered. Joe believed that inclusiveness would carry us to victory. If the culture was right, then all would be right. Which was all very well, but down in the trenches, where a trader might sweat blood to make a couple of million dollars, most of us were a bit tetchy about Joe Gregory going off and spending it on a cocktail party for six hundred people.

That might not have been fair to him, but that’s the way it seemed to us. Especially when it emerged that the top dog in diversity was earning well over $2 million a year and that the diversity division had a bigger budget and more people than risk management!

The Devil’s Casino: Friendship, Betrayal, and the High Stakes Games Played Inside Lehman Brothers by Vicky Ward

Gregory’s diversity program was derided in part because it was as big and expensive to run as some of the revenue-producing divisions. It was more expensive and had more employees than all of risk management. Behind his back, senior executives called the program “Joe’s social science project.” Someone nicknamed him “the Oprah Winfrey of Wall Street.”

Gregory wasn’t dissuaded by such grumblings; he knew the attention and money that Lehman spent on diversity made for good public relations. Indeed, Harvard Business School would even publish a paper on Gregory’s diversity program and its accomplishments.

R3 Should Just Buy Ripple

Previously, we made fun of R3 for complaining about a billion-dollar Option Contract that Ripple decided to terminate. R3 should have used a smart contract!

Now we have the actual court documents (thanks @MrDuke67).

According to Ripple, the Option was given to R3 in exchange for a technology and commercial partnership. Ripple claims that they were fraudulently misled into the partnership, and that R3 failed to deliver anything of value. Not only does Ripple want the agreements declared invalid, they also want R3 to pay punitive damages and legal fees:

But according to R3’s complaint, the Option had no strings attached:

I can’t help but feel sorry for Ripple here. It’s hard to imagine anyone agreeing to a partnership with R3 unless fraudulently induced, and the Option contract does kinda look like a freebie (full text here).

To make matters worse, the Option contract is now worth over a billion dollars, which is almost certainly more than Ripple’s entire company valuation (They raised $55M in last year’s Series B).

So here’s a modest proposal that should make everyone happy:

  • R3 goes to one of its banking partners for a billion-dollar loan*, using the XRP Option as collateral.
  • R3 acquires Ripple for a mix of cash and stock, up to a billion dollars.
  • Withdraw the complaints, exercise the Option, sell the XRP, pay back the loan in full.
  • Burn Ripple’s business to the ground.

Lo and behold, we’ve created shareholder value for all. Blockchains really are like magic.

*Better yet, tokenize the Option Contract and do an ICO.

Anti-Capitalist Propaganda in China

This is what Chinese people think America looks like:

We’re a bunch of greedy capitalists who objectify women and stomp on minorities.

This poster circulated around China in the 1960s. During that time, our National Education Program distributed pro-capitalist propaganda here in the States:

Fast-forward fifty years. Last week, I found myself in an impossible debate with a Chinese national over whether China allows greater freedom than America. He claimed that it was much easier to start a company or invest in business in his country, because they don’t have all the complicated regulations of the US.

That’s sort of true. China is free in the sense that you can litter everywhere and dump toxic waste in the water supply. There are fewer business-stifling regulations, but there are also fewer externality-preventing regulations.

I asked about censorship, capital controls, political prisoners. He replied that the government only did what was necessary to speed up economic growth.

China is basically an authoritarian regime, but two decades of progress have convinced the population that communism is the epitome of economic liberty. Meanwhile, a snapshot of our daily news feed looks exactly like China’s anti-capitalist propaganda from the ’60s. It seems that over the course of a half-century, the US and China have magically traded places.