Category: Personal Thoughts

Three Years in Chile

Three years ago last week, I was in New York getting the last few things together before my trip to Chile. I’d never been to South America, barely spoke Spanish and really had no idea what to expect when I got off the plane. As I waited in the airport lounge at JFK, it still didn’t feel real. It was just like any other of the numerous flights that Jesse and I had taken during our year and a half running Entrustet.

It didn’t feel like we were going to a foreign country that had promised us $40,000 (that we couldn’t verify we’d actually receive), to a place where we didn’t speak the language, 16 hours from home.

Three years later, I’m still here. I’ve spent 27 of the past 36 months in Chile, learned Spanish, immersed myself into another culture, pushed myself out of my comfort zone, made incredible friends, started multiple businesses, taught at three universities, wrote two books and received my permanent residence. It’s been a long road, but after three years, I think I finally pretty much get Chile.

What have I learned over the past thee years? What’s changed in my life and in Chile? And why am I still here? Why did I stay? And what’s next?

It was a big change coming from the US and resettling in Chile. I’m very privileged in that in the US things usually came easily for me. I almost always knew what to say, how to talk my way into and out of situations, all the cool local tricks, the best places to eat, the best parks, the hidden treasures. I knew what body language meant and what each local reference or slang word really and truly meant. It wasn’t very difficult to be successful.

When I first got to Chile, I was completely lost. I could get around the city, order food, get a drink at a bar, but could barely keep a real conversation. I had to concentrate all the time. I wasn’t myself: I couldn’t be the leader that I was used to.

I didn’t know the culture, I didn’t know what slang meant. Even though most people were very friendly, I really learned what it is like to be an outsider. I wasn’t in on the inside jokes, the turns of phrase, longstanding friendships and so much more. It really made me appreciate how hard it must be to be an immigrant in the US. When people say “immigrants should just learn English” I used to think, yea, they should. But it takes a big effort and it’s not as easy I used to think.

Even after three years, I’m still not truly able to express myself perfectly in Spanish. I’m still not fast enough to make the same jokes I do in English. I probably tell half the stories that I would in English. And the ones that I do tell are half as good as the ones I tell in English! It’s really made me realize what it’s like to be an outsider, or at least someone without all of the built in advantages that I’ve been lucky enough to have.

I certainly miss things. First, my family and friends. In the US I lived my entire life in Milwaukee and Madison and was always within 90 minutes of my family and friends. I miss good customer service. I miss good cheese. I miss being able to listen to every conversation that’s going on around me without actually trying. I miss 250 different beer choices. I miss having a yard. I miss telling an awesome joke with perfect timing. I miss top quality, spicy and flavorful food that doesn’t cost an arm and a leg. I miss my bike. I miss going to northern Wisconsin. Kopps ice cream. Watching all of my favorite sports on a big HDTV instead of illegally streamed on my little computer.

chilean beach

But I can get used to many of the small things because Chile really is an amazing country. I love being close to the pacific and the beach. Amazing seafood. Some great new friends. Playing more soccer. Sun 80% of the year. Being close to Argentina for long weekends. Traveling and exploring in South America. Peruvian food. Pisco sours. Going out dancing. Friends that have taken me into their homes, their families. Asados. The metro. Incredible business opportunities. An amazing $7 bottle of wine. Hearing the entire country scream goaaaaaal, when Chile scores. I certainly miss these things when I go back to the US.

As with all things, there are things that I’ll never get used to. Santiago’s pollution, especially in winter, makes the city just a few notches above unlivable. I’ll never get used to the massive amounts of dust. The classism. The Chilean “two dogs meeting” interview ritual. The rigid conservatism and class structure. Price fixing in big businesses. Going to three separate cash registers to buy an empanada. Waiting in long lines. Customer service reps who flat out lie to you. Living in small apartments. My new expat friends leaving every 6-12 months. So many smokers! Massive inequality and the inability for many people to see outside their own bubble of their own experience.

santiago smog

 

Chile’s changed, mostly for the better, since I arrived in 2010. My two favorite changes are the smoking ban in public places, plus the crackdown on drunk driving. Both of these laws have made Chile much more livable. I might not even still be in Chile if they hadn’t passed the smoking ban. It used to be terrible!

There are way more foreigners in Chile now compared to 2010. When I first got to Chile people asked us incredulously “why are you here???” Now it’s fairly typical to see foreigners in parts of the city. Rents have gone up 30-100%, depending on neighborhoods. I wouldn’t be here if it weren’t for the ban. There’s been a micro brewery renaissance, with a huge increase in of good beer. People seem to be more accepting of foreigners. Chile has become much more livable over the past three years.

Business-wise, from 2010-2013, the startup scene is completely different. While there were a few successful Chilean startups and entrepreneurs prior to Startup Chile, the program really has changed the mentality in the country. In 2010, people would ask me what I did and when I answered that I had my own business, they’d ask “where do you work” again, then look at me as if I were homeless. Now its cool. Probably too cool. I worry that the country has been sold a narrative of startup rockstars, heroes, gurus and celebrities that when the first round fails might ruin entrepreneurship in the country.

Asech, the Chilean entrepreneurs association, should be the model for the rest of the world. They are a lobby group that pushed through a law that allowed companies to register online in one day, for free. Before it cost $2000+ and took 2-3 months. They’ve convinced banks to let entrepreneurs open bank accounts, which was nearly impossible before. There are way more coworking spaces. More chilean startups and some incredible opportunities.

But there’s still not much funding. Not many Chilean success stories. Big companies and established players still crowd out entrepreneurs. The people with money still generally have an aristocratic yet provincial, anticompetitive attitude that seeks to divide up the riches and keep their place in the economy, not create new innovation and grow the economy. And the new rich still isn’t thinking bigger. The government isn’t helping much by allowing anticompetitive banks and large companies to gouge consumers and price fix.

I used to socially liberal and be very free market: I believed that if you just got government out of the way, economies will work. After being in Chile for three years, I’m even more socially liberal and still generally believe in getting the government out of the way, but my zeal has been tempered.

In Chile, I’ve seen what happens when there’s little to no competition and the government doesn’t really enforce price fixing or monopoly laws or just doesn’t have big enough penalties to stop basically institutionalized price fixing and corruption by large companies. Along with tax structures that benefit those in power to keep their wealth, and be extractors, sucking out wealth from society, rather than creating new, innovation and expanding the economy for everyone.

I have a better realization of what its like to try to move up in the world and how hard many people work for little money. I see what a problem inequality is and can be. People are physically, mentally, emotionally divided. The rich live physically separated from the rest, consuming different entertainment, different food, different clothes, everything. They never meet and talk, which causes misunderstanding, jealousy and a lack of empathy. This phenomenon is happening more and more in the US and I don’t want it to happen after I’ve seen what its like in Chile.

Overall, coming to Chile has been an incredible experience. I’ve learned so much about myself and about the world, made great friends, learned spanish and gotten to explore an incredible country and part of the world. I’m currently teaching entrepreneurship at three universities and working on a two projects that I think have the potentially to be very interesting over the next few months. I don’t know what my future really holds, but I’ll always be thankful that Jesse and I took the risk to come to Chile back in 2010.

Thanks to everyone who’s helped me in Chile, helped me learn about myself and this great country. I couldn’t have done it without you all. A final thanks to my parents, who haven’t demanded that I come back yet.

Siren Servers: Why Are We Ok With Giving Away Our Data?

Note: Jaron Lanier is one of the most important thinkers in our world right now. Most of the ideas in this post are from Lanier’s book Who Owns The Future. Anything in quotes is directly from Lanier.

The most powerful entities in today’s word are those that have the most data and the most powerful computers to crunch this data in a meaningful way. They are the “gargantuan cloud computer services that are concentrating wealth and influence in our era.” Whether they are “national intelligence agencies, the famous silicon valley companies with nursery school names, the stealthy high finance schemes and others,”…”they use their gigantic corporate repositories of information about our lives for huge benefit by a super-rich few.” So says Jaron Lanier in his book Who Owns The Future.

The siren server business model is to suck up as much data as possible and use powerful computers to create massive profits, while pushing the risk away from the company, back into the system.  The model currently works by getting people to freely give up their data for non-monetary compensation, or sucking up the data surreptitiously.

Lanier continues:

All these schemes are quite similar. The biggest computers can predictably calculate wealth and clout on a broad, statistical level. For instance, an insurance company might use massive amounts of data to only insure people who are unlikely to get sick. The problem is that the risk and loss that can be avoided by having the biggest computer still exist. Everyone else must pay for the risk and loss that the Siren Server can avoid.

Siren Servers suck all data and a vast majority of profits, putting traditional businesses out of business and concentrating wealth and power in the hands of a small, elite few. Instead of paying people in dollars for their data, siren servers pay them in candy or lower front end costs. They convert industries that used to have a bell curve distribution into industries that have winner take all, star systems.

compensation in siren server world

Some examples:

  • Instagram – Takes your data in exchange for taking photos, putting filters and sharing them.
  • Twitter – Takes your data in exchange for connecting with friends and reading the news.
  • Foursquare – Your location data in exchange for restaurant reviews and social networking
  • Facebook – Takes your data in exchange for being able to brag about yourself and stalk your friends.
  • Amazon – Give us your reviews for free and purchase data and we’ll give you lower upfront prices.
  • Huffington Post, Medium – Give us your content for free and we’ll give you “exposure.”
  • Google – Use gmail, google docs, search, browser, android, blogger, youtube, calendar, google plus for free, in exchange for using your data.

All of these services then take your data and use it to concentrate wealth and power for themselves.

Put another way, what is Facebook worth with zero users? Zero dollars. But Facebook has 1.1b users and is worth $110b. All 1.1b users create monetary value for Facebook whenever they add a friend, post an update, add a photo or like a page. But the vast majority never see a dime.

So who gets monetary compensation on Facebook? Zuckerberg, who controls the entire company. The small group of VCs who invested. The public shareholders. And maybe a few million people who have businesses that run on top of Facebook. So if Facebook is worth $0 with 0 users, why do only a tiny percentage of people actually get any monetary compensation from Facebook?

Short term, the model works. Brilliantly. The company makes huge profits and eliminates competition from the marketplace, and gives people a useful new service. But long term, as more and more industries go to the siren server model, and more compensation is pushed off the books, how do people have income? How do they survive? In the internet age, fewer people are getting financially compensated for their actions that have real monetary value to others. We’ve designed technology to push value off the books for more people. See the candy graph above.

Fine you say. Facebook is just entertainment. But what happens when Google perfects the driverless car? Or a software company is able to write an algorithm to perform surgeries? Or take care of people in nursing homes? Or clean city streets? Or even write most basic computer code? All these software companies are able to perfect these tasks by watching real humans perform the task hundreds of thousands, if not millions, of times. Once they get the data for free or cheap, these future Siren Servers will be able to sell their software for money and take over the market, pushing monetary compensation to an elite few and eliminating the old industries.

There was always creative destruction and new industries have always replaced old ones. But the difference today is that we’ve decided to allow our inputs to be compensated with candy, rather than money and that these servers are now powerful enough to transform industries from what used to be a bell curve shaped distribution to a winner take all, star system.

Our decision to give our data away for candy instead of money to companies that push risk away from themselves and have little to no skin in the game is producing massive inequality and unemployment, eliminating the middle class. It paints a bleak picture of our future unless we change.

What do you think?

If you’re interested in reading more, pick up Jaron Lanier’s two books, You Are Not a Gadget and Who Owns the Future, or list to one of his podcasts.

Three News Articles

I was featured in three different news articles this week for three different ideas and I thought I’d share.

Dealing with digital Afterlife – Financial Times

Emma Thomas interviewed me for an article about people with interesting jobs, focusing on the digital death space. My favorite part where I talk about the impact that working with digital death had on my outlook on working and living. It makes no sense to me to be working on things that don’t really matter, like an iphone app for fart noises or other fairly useless ideas. If you have the ability and drive to do a startup, do something that matters.

The Most Interesting Entrepreneurs in Chile

An article talking about different people in the Chilean entrepreneurial ecosystem. There are clearly better homegrown Chilean entrepreneurs than me, but it’s fun to be on the list.

La Condonería: Condones y educación sexual a un click de distancia

This article in PulsoSocial (spanish) talks about one of my new projects, an ecommerce site that allows people to buy condoms online in Chile. I’m really enjoying this project mostly because of the blog and chat we have. Most people didn’t have a well developed sex education course in high school or college, so we answer basic questions that we get via our chat in blog post form. It’s been one of our biggest successes so far and makes selling a product much more interesting and rewarding.

How To Deal With A Smart, Disruptive School Kid

Or how to deal with a kid like me.

Growing up, I was a teacher’s worst nightmare. I was really smart. I got high standardized test scores. I read books. I went to a top public high school, so I had all of the advantages. But I “never realized my potential” in school.

sleeping in class

I got bad grades. I disrupted class. I challenged teachers’ authority. I slept through class. See preferred technique above. I got the right answers but refused to show my work. I got my first detention in 1st grade music class for tripping a friend, but skipped it to play in the intramural soccer championships. In second grade, I refused to learn cursive because “we’ll never need to use it.” In fourth grade, I refused to write in my assignment notebook because I would finish my homework in class.

In fifth grade I made a teacher’s life miserable because she called people living in Africa in the 1500s “African American” and I never let her live it down. In sixth grade, I flunked art class. In seventh, I got kicked out of an english class for the final two months of the year because I made the teacher cry. In 8th grade, I was written up seemingly 100 times.

In high school, one teacher threatened to flunk me even though I had an A average on my tests because I “wasn’t a good class citizen and didn’t participate in class.” Another teacher referred my case to the guidance counsellor because he thought I had a disease because I slept in his class so much. I even got a death threat from another student because I got a higher grade on my term paper and he couldn’t fathom that I was smart because I didn’t add anything in class. And that’s just scratching the surface.

Why? Because I was a smart boy. I was bored out of my mind. I hated the rules. I didn’t care about the process, just the end product. I was messy. I didn’t have good penmanship. I didn’t like to sit still. I thought I was smarter than the teachers, and in some cases I was.

I was also struggling find my place with my peers, so I took on the role of the class clown. And I was good at it. I challenged authority. I pointed out when teachers were wrong. I did the bare minimum. I made their lives miserable because they were boring me to death.

By the end of high school, I wanted to go to a college that as I liked to put it “treated me like a number, not a name,” where I could do my own thing. I went to Wisconsin, found things I was interested in and have been successful since then.

For some smart kids, school is terrible. It tries to beat the creativity out of you. It tries to make you conform. To write and draw between the lines. Luckily, school never had a chance with me. Many of my smart friends had similar problems. And I’ve met kids and parents who have this same problem today.

So how should schools and parents deal with smart kids who are like me? Here’s a list of ten things parents can do to help their smart kids survive school.

1. Find teachers who are willing to work with you

My parents were at wits end, but they constantly demanded that teachers find challenging work for me, or give me alternative assignments. For example, in fifth grade I read 400 page biography of Jackie Robinson and wrote a book report instead of reading a 75 page book that was assigned. Or in 8th grade when a teacher agreed to let me do my own research papers on topics that I wanted. Thanks Ms. Marco, Ms. Keane, Mr. Lauasser, Mr. Gilbert and more.

2. Demand that your kid learns on his own

My parents didn’t really care what my grades were, but if I wasn’t reading and writing on my own outside of school, I was in trouble. Make a deal with your kid that you’ll relax a bit on grades if they continue to learn outside of school.

3. Tell your kids it’s not acceptable to disrupt other kids’ learning

Although I didn’t always follow this rule, I knew I would get in trouble at home if I was disrupting class for others. That led directly to my sleeping in class kick.

4. Teach Life Lessons

My parents explained that while I may be smarter than some of my teachers and that I was bored, life isn’t fair and that I’d have bosses or businesses dealings with people who were unfair, not as smart as me and where I didn’t get to set the rules.

5. Find a non academic outlet outside of school

My parents pushed me to take up reffing soccer at age 12. It gave me power, responsibility and someone to scream at me when I screwed up. It kept me in line. Check out programs like Exosphe.re, Sector67100state and others in your area.

6. Find what interests your kid and let them work on it

I wrote stories about hockey and soccer. I learned math from baseball stats. I loved learning about foreign countries. I put most of my effort into learning through things I liked. Play to their strengths.

7. Let them fail

Your kid is likely arrogant. Let him fail. I refused to write in my assignment notebook and I forgot my work a few times. My parents didn’t make excuses for me and made me take lower grades.

8. Force him to accept the consequences of his actions

Don’t let him blame other people when he fails and things go wrong.

9. Help him learn from his mistakes

Don’t “I told you so” him. It won’t work. Say “maybe it would have been better if you did X next time” and leave it at that. Your kid is smart. He gets it. He just doesn’t want to admit it.

10. Plan for the long run

My parents always told me that they would be furious if I got bad grades that didn’t let me get into a decent college. They tolerated lots of bullshit as long as I kept decent grades. Set your long term expectations clearly and demand that they follow them.

Did you ever have these problems? How did your parents and teachers deal with you?