A week on from the shuttering of Reader, does anyone trust Google yet?

Google lied, Reader died.

One week on from the Google Reader news, and two very real trends are becoming clear. We will never trust Google again; and we are all thinking carefully about the sustainability of our online services.

Yesterday, Google announced a new service, Keep. It's… look, it's post-it notes for your phone, OK? There's really only so much technobabble one man can put up with. Android only for the moment, and quite pretty design.

But, here's the thing. Keep is clearly an experiment. It's free on Google Play, it's got no adverts, it's all stored on a centralised service – it is, in other words, Google Reader five years ago.

Would you build your life around it? I wouldn't.

 

 

 

 

 

 

It became a cliché after the closure of Google Reader, but it became a cliché because it is, at heart, true: if you don't pay for a product, you can't expect it to primarily serve you. If it has ads, you aren't the customer, you're the product; but if it doesn't have ads, it's even worse. You aren't using a product, you're using an expensive advertisement the company has created to try and get itself acquired (or acqhired).

It's why, in my list of possible replacements for Google Reader, I thought NewsBlur looked like the best shot. Because it's a service which has the radical business model of getting people to pay for it.

There will always be free services online which are good, and which live long and fruitful lives. Google and Facebook, to name two. And even paid-for services still die in their prime, as happened to mail app Sparrow, acquired by Google last year and shuttered. But as a rule of thumb, if you can't see how a developer can survive while providing you a service you desperately need, they probably can't, and you should expect a change down the line.

But there's one other aspect of sustainability, and it pains me to say it, but: this is why Twitter is closing off its API. Google Reader's API is used by an extraordinary number of feed-reading apps, including Reeder and NetNewsWire for Mac and iOS and Feedly for iOS and Android. Not everyone used them, and the main Reader web app was certainly popular – but once the closure of the sharing features removed the main reason for using the web app, the exodus set in.

And if everyone is using your product through an API, then it's hard to make any money from that. Google doesn't show ads on Reader, because it's always been a hobby for the company, but the sheer number of users who were using it as little more than a pipe mean that even if it had begun to show ads, it would have still been providing an enormous free service to the users of other companies' products.

With that in mind… I can see why Twitter has taken its extraordinarily anti-third-party-developer moves. And I'm not quite as against it as I was. I would like a Twitter which was happy to let me use Tweetbot, happy to let me tell Tumblr who I follow, and didn't try and impose its vision of how I should use its service on everyone else. I would even pay to be a member of that Twitter (although, unfortunately for app.net, I also like all the people I follow on Twitter, so can't quite flounce off somewhere else). But that isn't the choice: the choice is the Twitter we have, or a Twitter which goes the way of Google Reader.

Photograph: Getty Images.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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The Future of the Left: A new start requires a new economy

Creating a "sharing economy" can get the left out of its post-crunch malaise, says Stewart Lansley.

Despite the opportunity created by the 2008 crisis, British social democracy is today largely directionless. Post-2010 governments have filled this political void by imposing policies – from austerity to a shrinking state - that have been as economically damaging as they have been socially divisive.

Excessive freedom for markets has brought a society ever more divided between super-affluence and impoverishment, but also an increasingly fragile economy, and too often, as in housing, complete dysfunction.   Productivity is stagnating, undermined by a model of capitalism that can make big money for its owners and managers without the wealth creation essential for future economic health. The lessons of the meltdown have too often been ignored, with the balance of power – economic and political – even more entrenched in favour of a small, unaccountable and self-serving financial elite.

In response, the left should be building an alliance for a new political economy, with new goals and instruments that provide an alternative to austerity, that tackle the root causes of ever-growing inequality and poverty and strengthen a weakening productive base. Central to this strategy should be the idea of a “sharing economy”, one that disperses capital ownership, power and wealth, and ensures that the fruits of growth are more equally divided. This is not just a matter of fairness, it is an economic imperative. The evidence is clear: allowing the fruits of growth to be colonised by the few has weakened growth and made the economy much more prone to crisis.

To deliver a new sharing political economy, major shifts in direction are needed. First, with measures that tackle, directly, the over-dominance of private capital. This could best be achieved by the creation of one or more social wealth funds, collectively held financial funds, created from the pooling of existing resources and fully owned by the public. Such funds are a potentially powerful new tool in the progressive policy armoury and would ensure that a higher proportion of the national wealth is held in common and used for public benefit and not for the interests of the few.

Britain’s first social wealth fund should be created by pooling all publicly owned assets,  including land and property , estimated to be worth some £1.2 trillion, into a single ring-fenced fund to form a giant pool of commonly held wealth. This move - offering a compromise between nationalisation and privatization - would bring an end to today’s politically expedient sell-off of public assets, preserve what remains of the family silver and ensure that the revenue from the better management of such assets is used to boost essential economic and social investment.

A new book, A Sharing Economy, shows how such funds could reduce inequality, tackle austerity and, by strengthening the public asset base, rebalance the public finances.

Secondly, we need a new fail safe system of social security with a guaranteed income floor in an age of deepening economic and job insecurity. A universal basic income, a guaranteed weekly, unconditional income for all as a right of citizenship, would replace much of the existing and increasingly means-tested, punitive and authoritarian model of income support. . By restoring universality as a core principle, such a scheme would offer much greater security in what is set to become an increasingly fragile labour market. A basic income, buttressed by a social wealth fund, would be key instruments for ensuring that the potential productivity gains from the gathering automation revolution, with machines displacing jobs, are shared by all.  

Thirdly, a new political economy needs a radical shift in wider economic management. The mix of monetary expansion and fiscal contraction has proved a blunderbuss strategy that has missed its target while benefitting the rich and affluent at the expense of the poor. By failing to tackle the central problem  – a gaping deficit of demand (one inflamed by the long wage squeeze and sliding investment)  - the strategy has slowed recovery.  The mass printing of money (quantitative easing) may have helped prevent a second great depression, but has also  created new and unsustainable asset bubbles, while austerity has added to the drag on the economy. Meanwhile, record low interest rates have failed to boost private investment and productivity, but by hiking house prices, have handed a great bonanza to home owners at the expense of renters.

Building economic resilience will require a more central role for the state in boosting and steering investment programmes, in part through the creation of a state investment bank (which could be partially financed from the proposed new social wealth fund) aimed at steering more resources into the wealth creating activities private capital has failed to fund.

With too much private credit used for financial speculation and property, and too little to small companies and infrastructure, government needs to play a much more direct role in creating credit, while restricting the almost total freedom currently handed to private banks.  Tackling the next downturn, widely predicted to land within the next 2-3 years, will need a very different approach, including a more active fiscal policy. To ensure a speedier recovery from recessions, future rounds of quantitative easing should, within clear constraints, boost the economy directly by financing public investment programmes and cash handouts (‘helicopter money’).  Such a police mix – on investment, credit and stimulus - would be more effective in boosting the real economic base, and would be much less pro-rich and anti-poor in its consequences.

These core changes would greatly reform the existing Anglo-Saxon model of capitalism and provide the foundations for building support for a new direction for progressive politics. They would pioneer new tools for building a fairer, more dynamic and more stable economy. They could draw on experience elsewhere such as the Alaskan annual citizen’s dividend (financed by a sovereign wealth fund) and the pilot basic income schemes launching in the Netherlands, Finland and France.  Even mainstream economists, including Adair Turner, former chairman of the Financial Services Authority, are now talking up the principle of ‘helicopter money’. For these reasons, parts of the package are likely to prove publicly popular and command support across the political divide. Together they would contribute to a more stable economy, less inequality, and a more even balance of power and opportunity.

 

Stewart Lansley is the author of A Sharing Economy, published in March by Policy Press and of Breadline Britain, The Rise of Mass Impoverishment (with Joanna Mack).