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A list of assertions from the film: Ayn Rand was very influential to the Silicon Valley of the 90s. There was a dream of large scale cybernetic/emergent self-

A list of assertions from the film: Ayn Rand was very influential to the Silicon Valley of the 90s. There was a dream of large scale cybernetic/emergent self-regulation enabled by computers, which would do away with hierarchical organizations and government as we knew it. This "Californian Ideology" held that government would need to become a facilitator rather than a regulator. Bill Clinton was originally opposed to this ideology, believing in the regulatory role of government. Meanwhile, Federal Reserve Chairman Alan Greenspan had been a follower of Rand's philosophy since the 1950s. In 1992, Greenspan convinced Clinton to cut government spending to lower interest rates and grow the economy, the opposite of Clinton's original intentions as president. A belief emerged called the New Economy, which said the booming economy would be different than previous booms because computers could calculate risk in a way that enabled more feedback and self-regulation. In 1996, Greenspan noticed that rising profits were not tied to rising productivity, and warned of a speculative bubble. He then reversed this outlook due to political pressure. Implied cinematically: Rand's affair with Nathaniel Brandon, which she considered rational, had parallels to Clinton's affair with Monica Lewinsky. The rising economy of the 90s prompted a speculative boom in Southeast Asia. Concerns about this were intercepted and put down by Robert Rubin, former head of Goldman Sachs and believer in computer self-regulation. Carmen Hermasillo (Humdog) raised concerns about cyberspace not being a utopian platform, but rather a corporate profit center for user generated content. The speculative bubble in Southeast Asia collapsed at the same time as Clinton became entangled with the Lewinsky scandal, leaving the treasury to deal with a fiscal crisis in Indonesia. Indonesia signed with the IMF, but their currency collapsed anyways. The IMF loans were really to pay off western investors, who then left.

anamax 14y ago
> In 1992, Greenspan convinced Clinton to cut government spending to lower interest rates and grow the economy, the opposite of Clinton's original intentions as president. Clinton didn't cut total spending at any time during his 8 years. (He did cut defense, but spent that money, and more, elsewhere.) The rate of increase may have decreased somewhat after 94, when the Dems lost both the House and Senate. http://www.factcheck.org/2008/02/the-budget-and-deficit-under-clinton/ http://www.factcheck.org/2008/02/the-budget-and-deficit-unde... shows that the deficit reduction trend started a couple of budget cycles before Clinton's first budget. Note that none of this counts unfunded liabilities. They erase much of the Clinton surplus.

anamax 14y ago

> In 1992, Greenspan convinced Clinton to cut government spending to lower interest rates and grow the economy, the opposite of Clinton's original intentions as president. Clinton didn't cut total spending at any time during his 8 years. (He did cut defense, but spent that money, and more, elsewhere.) The rate of increase may have decreased somewhat after 94, when the Dems lost both the House and Senate. http://www.factcheck.org/2008/02/the-budget-and-deficit-under-clinton/ http://www.factcheck.org/2008/02/the-budget-and-deficit-unde... shows that the deficit reduction trend started a couple of budget cycles before Clinton's first budget. Note that none of this counts unfunded liabilities. They erase much of the Clinton surplus.