Survival of the friendliest: how cooperation plays a positive role in evolution

The dominant story about biological evolution is a bloody tale of competition and survival of the fittest. There’s no purpose or morality in nature.  There’s no Creator imposing an Intelligent Design.  Rather, random mutations during cell division result in offspring with a diversity of traits. Those offspring with fitter traits tend to survive and breed.  Weaker offspring die out.  Over many generations, beneficial traits accumulate, leading to evolution and the eventual creation of new species.

Kinda brutal. Just what libertarians would love.

Super Cooperators: Altruism, Evolution, and Why We Need Each Other to Succeed offers a more nuanced story about evolution.  The book presents recent research in biology and mathematical game theory that challenges the primacy of competition as a force in biological and cultural evolution.  According to the new paradigm, cooperation plays a much more significant role in the success of species in than in the dominant approach.

Nowak writes that natural selection is not a sufficient foundation for evolution.

I propose that “natural cooperation” be included as a fundamental principle to bolster those laid down by Darwin. Cooperation can draw living matter upward to higher levels of organization. It generates the possibility for greater diversity by new specializations, new niches, and new divisions of labor. Cooperation makes evolution constructive and open-ended.

An important point is that all this lofty talk is backed up by peer-reviewed science. Nowak published, in major journals, articles about mathematical game theory which explain under what conditions cooperation can evolve in communities of competing organisms.

This topic is of particular interest because of its implications for politics.    The political ideology of the conservative movement in America is based on opposition to government and cooperation, in favor of low taxes, deregulation, and laissez-faire capitalism.   Conservatives can point to evolution as a justification of their ideology, much as Herbert Spenser did in the 19th century. But if cooperation plays a much larger role in evolution than previously thought, then the biological argument becomes less persuasive.

Indeed, government-run health care in most countries provides higher quality care at a fraction of the cost of America’s inefficient market-based system.   Competition is useful in some areas, especially in high tech where innovation is important. But in other areas of an economy, including health care delivery, centralized control and planning make more sense, as they eliminate unproductive rent-seeking.

It’s a battle between selfishness and cooperation, between freedom (including freedom to cheat) and justice.

Super Cooperators is written in a lively style by Harvard professor of Biology and Mathematics, Martin A. Nowak, with science writer Roger Highfield as co-author. The book has few equations or diagrams but the exposition and prose are clear enough so that the educated reader, especially someone with a little background in biology or computer science, can imagine how to reproduce many of the experiments.

Since  the 19th century biologists (including Darwin) pointed to the success of the social insects (e.g., ants) as examples of how traits can evolve that favor the group over the individual.  Called “group selection” or “kin selection” or “multilevel selection” or “inclusive fitness”, these mechanisms represent a kind of higher level evolution, wherein groups that are better able to cooperate out-compete groups comprised by more selfish individuals.    But until recently, most biologists have thought that mechanisms such as group selection have limited effect.   On the other hand, it is obvious that evolution has resulted in highly cooperative species, such as ants and homo sapiens.    Nowak and others researchers have laid mathematical and evidential foundations that explain the origin of cooperation and that support a broader role for cooperation in evolution than previously thought.

Much of the book describes computer simulations of competition in which virtual individuals compete in a virtual ecology (economy).   Researchers have experimented with different strategies for competition.  Depending on the how the economy is set up, the best strategy may involve either selfish competition or cooperation.  Sacrificing one’s own short-term gain can lead to an outcome in which everybody benefits (as in the tragedy of the commons).  Research shows under which conditions one strategy (e.g., “cooperate if the other person cooperated in the past”) can make inroads against individuals using a different strategy (e.g., “always be selfish”).    The research paradigm appears under the name of “Prisoner’s Dilemma”.

In the new framework for evolution, not all is rosy. “There is a dark side to cooperation that comes in the form of parasites, cheats, defectors, and other lowlifes.”  In an ecology of cooperating individuals, a “defector” can exploit the kindness of strangers and disrupt the cooperative strategy.   Cancer cells in the body are an example of non-cooperators.  In a political economy, defectors can take the form of welfare queens who refuse to work. Alternatively, the defector can take the form of wealthy individuals who benefit from government contracts and protections but offload costs (e.g., pollution) to others, don’t pay their taxes, and subvert government laws and regulations to be in their own favor.

Nowak identifies five mechanisms for the evolution of cooperation: (1) direct reciprocity; (2) indirect reciprocity — reputation, via language; (3) spatial selection — organizing into small, local groups helps to protect against defectors and parasites and to increase mutual trust;  (4) multilevel selection — selection at the group level — e.g., tribes that cooperate better out-compete tribes consisting of selfish individuals; and (5) kin selection — people naturally cooperate with people related by blood. For each of the five mechanisms, Nowak presents simple mathematical formulas that describe under what conditions cooperation can out-compete selfishness. For example, if the product of the benefits deriving from cooperation times the probability that you’ll encounter the same person again exceeds the short-term cost of cooperation, then it pays to cooperate. This and other cases imply that cooperation works better if people divide into small groups and cooperate in such groups. The theory explains the prevalence of groups such as families, villages, gangs, cults, corporations, policies, and factions in human societies. It also implies that humans should organize politically at different levels of granularity.

In the final chapters Nowak makes a (somewhat sentimental and melodramatic) call for greater worldwide cooperation, especially on the issue of climate change. He says:

The story of humanity is one that rests on the never-ending creative tension between the dark pursuit of selfish short-term interests and the shining example of striving towards collective long-term goals. …. I have argued that evolution “needs” cooperation if she is to construct new levels of organization, driving genes to collaborate in chromosomes, chromosomes to collaborate in genomes, genomes to collaborate in cells, cells to collaborate in more complex cells, complex cells to collaborate in bodies, and bodies to collaborate in societies.

One can view this area of research as giving a naturalistic explanation for morality.

The research gives intellectual succor for progressive-minded people who want to push back against the regressive forces in American politics who wish to dismantle the New Deal and return the country to the small government, small-minded days of the Articles of Confederation.

Reflections on the 2014 election

GWB was the best thing for organizing on our side in many years. He forced everyone to get together in opposition. As soon as he was gone, we started splintering. But he’s NOT gone, he was always just a front man. The folks behind him are still there, working as hard as ever against most of us.

We refuse to plan or operate in unison or strategically. When we have a chance to make progress, we immediately divide up start squabbling over details or are diverted to work on feel good proposals that do not alter the basic situation one iota.

The need at the moment has not changed one bit. Unify to oppose the neoliberal economic concentration scheme based on austerity and the denial of human rights for working folks, racism, xenophobia, militarization and the destruction of the planet. If you think you can walk away from this fight and somehow not be affected, you are mistaken.

The percentage of their racist base varied, but everywhere in our nation, the Right’s job was made easier by the prevailing racism that was activated by our having a black president. The exit poll interviews I heard out of Kentucky were abysmal. Here in Stevens county it is no longer even below the surface for about a quarter of the population. Obama’s refusal to act anything like what one might expect from a black president has done nothing to defuse this, and in fact, made the Right’s job easier by deactivating our voter base. Their endless supply of campaign cash easily layered on top of this to manufacture consent for economic self-destruction among a majority of the voters even in areas such as Kansas, which are in economic free fall, or in WA-05, most of which hasn’t seen economic prosperity in thirty years or more.

There was an impressive start at a new level of organization within the local party and campaigns. Instead of people walking away discouraged, we need to continue to do more of it. There are Spokane city races that are crucial coming up next year. Statewide, the Democratic party is for the first time ever embarking on a modest campaign to activate its member base to hold its elected officials accountable to its platform and not to Boeing, Microsoft, and Wall Street. I have a feeling that party leaders will be surprised by how willing and ready the rank-and-file will be to send this message. Despite their victories, there are huge rifts within the GOP and there are many people who’ve been voting Republican that are ready to hear a new message.

I can attest that many local voters who cast their ballot for McMoRo did not do so out of any great affirmative feeling for her, quite the opposite, they are at best vaguely uneasy. But they’d never heard of Joe Pakootas and vote for the devil they know. We will not reach and educate these voters by calling them, mailing them a nice postcard, or knocking on their door right before an election. We will never have the money to even try to reach them through the media. Effective organizing is not technology driven, it cannot be accomplished quickly, easily, and efficiently. It is messy and non-linear and it requires two-way communication over a period of time. It must start today if we want to see less dismal results in the future

Readings about carbon taxes

* Our endorsement in September from Seattle Business magazine prompted a half-dozen Letters to the Editor in the latest issue, including pro-carbon-pricing letters from Rogers Weed, former director of the state Department of Commerce; from real-estate heavyweight Craig Kinzer; and from Gwen Hanson of the Bellevue chapter of Citizens Climate Lobby.

* Forbes magazine is featuring a new voice from the Tri-Cities: geologist Jim Conca. I especially recommend “So You Think We’re Reducing The Use Of Coal? — Think Again” and (for something more positive!) “Can A Carbon Tax Create Jobs, Jobs, Jobs?” Jim is also the co-author of the 2007 book The GeoPolitics of Energy: Achieving a Just and Sustainable Energy Distribution by 2040. Another essay from Forbes is from the CEO of Royal Dutch Shell: Why This ‘Big Oil’ CEO Believes In Applying A Price To Carbon.

* For another truly inspiring read, try “The Sudden Rise of Carbon Taxes, 2010–2030” by Lawrence MacDonald and Jing Cao. The authors note that “this essay is what might be called a future history, a work of imagination set in 2030 that looks back at one possible scenario for global climate policy. We are tempted to call it “policy fiction” or perhaps “political science fiction”—a tribute to science fiction—except that such terms seem to suggest that the scenario we have sketched could never come true. Our intention to persuade the reader that some rough approximation of the events we have described is indeed possible, and thus to increase the likelihood that something like it will come to pass.” A key excerpt:

Before long, British Columbia’s success attracted attention south of the border, in the US states of Washington and Oregon, where the large share of voters in favor of climate action had ringside seats to watch the British Columbia experiment with carbon taxes to their north and California’s experiment with cap-and-trade to the south… [A] lively debate ensued in Washington and Oregon about which path to follow. California’s cap-and-trade system seemed to be off to a good start, and the idea that reductions in emissions could be obtained at lower cost and without politically difficult “tax” increases appealed to significant numbers of voters and politicians… It wasn’t long, however, before California’s cap-and-trade system began to lose its luster [and for a variety of reasons described in the full piece] both Washington and Oregon followed British Columbia’s lead and adopted revenue-neutral carbon taxes… As in British Columbia, revenue was rebated through a combination of cuts in business taxes, personal tax breaks, and low-income tax credits. And, as in Canada, other subnational jurisdictions took notice when the US Pacific Northwest managed to combine increased economic growth and falling emissions with tax reductions.

Note that this was written before the authors knew about our CarbonWA campaign!

* I’ve got two articles on the Sightline blog: “The #1 Question from Conservatives about Revenue-Neutral Carbon Taxes” and “The #1 Question from Progressives about Revenue-Neutral Carbon Taxes”. (Hint: They’re the same question!) Another reading along the same lines is “Do Carbon Taxes Just Feed the Beast?” from Bloomberg View.

* The latest hint from Governor Inslee (who’s CERT taskforce recommendations are due in a few weeks) is “Inslee: Carbon regulation could fund education, flood control“.

* Finally, the New York Times has “Environment Is Grabbing Big Role in Ads for Campaigns” and (on a somewhat lighter note) “Why Republicans Keep Telling Everyone They’re Not Scientists”. Excerpts:

Mr. Krosnick of Stanford analyzed polls in 46 states conducted between 2006 and 2013 and found that in every state surveyed, at least 75 percent of the population acknowledged the existence of climate change, and at least 67 percent said the government should limit greenhouse gas emissions.

One result is that a cadre of Republican staffers and advisers, most under the age of 40, have started pushing their bosses to find a way to address the issue.

The general dialogue has been, ‘We have to do something about this,’” said one Republican adviser who asked to remain anonymous in order to speak candidly. “We have to be less head-in-the-sand and acknowledge we are losing public opinion on this issue.

Now that you’ve read all this, what can you do? Well, check out our winter deliverables and see how you can help out! Can you set up a Carbon Washington chapter in your area to help spread the word? Can you make a signature gathering pledge for yourself or your group? Can you complete and comment on the carbon tax swap calculator? Can you help us connect with organizations, businesses, economists, or members of the media? Can you forward our email newsletter (this newsletter!!) to your friends and encourage them to sign on at CarbonWA.org? Can you make a donation? Can you connect with us on Facebook and Twitter? Everybody can do something!

PS. For those of you in the Seattle area, I’m giving a book talk on T Nov 4 at 7pm at University Bookstore on The Cartoon Introduction to Climate Change. Note that I’ve pledged all of my royalties for the year to Carbon Washington and that I’m still happy to send a signed copy to you if you make a donation to Carbon Washington of at least $100… or a monthly contribution of just $20!

Badass Teachers target Microsoft for avoiding taxes

Tell Bill Gates that Microsoft needs to carry their fair share of the tax burden now if he REALLY wants to help the vulnerable

The Bill & Melinda Gates Foundation promotes the privatization of public schools and were influential in donating in support of the Washington State charter schools initiative, I-1240, in 2010.

The registered sponsor for the initiative was the League of Education Voters. I-1240 campaign was funded partly by a “handful” of Puget Sound area billionaires, including Bill Gates, Paul Allen and the parents of Jeff Bezos. [3] [16][17] Alice Walton was also among the top five contributors. [18][19] The measure was also endorsed by Stand for Children.

For details about the Black Friday Microsoft protest see Don’t wait for #BlackFriday. #BoycottMicrosoft WORLDWIDE now!

Seattle Public Municipal Bank Forum, Dec 10

Join

Seattle City Councilman Nick Licata,
State Senator Bob Hasegawa,
Gwen Hallsmith of the Public Banking Institute,
the Seattle Public Bank Coalition,
and experts in public banking for a

public forum on

A Municipal Bank for Seattle

Dec 10 at 7pm

University Methodist Church, 1415 NE 43rd St, Seattle

Seattle could have a public bank for public lending. Once the city capitalizes the bank, it can act like any bank by creating loans for local needs.

1. Public banks can lend for local needs at rates that the global Wall Street banks are unlikely to find attractive.

2. A public bank can reduce a city’s reliance on expensive private bond issuance, reducing the costs of capital projects by 30-40%.

3. A city government can finance its projects through its own bank. The city earns interest, making more projects possible or lowering the tax burden.

4. A public bank as it grows, can partner with community banks and credit unions to support small business with lending at reasonable rates.

Sponsors

Seattle Public Bank Coalition
www.seattlepublicbankcoalition.org
Public Banking Institute
www.publicbankinginstitute.org
University Temple, United Methodist Church


Quote from Martin Luther King County Labor Council Executive Secretary/Treasurer David Freiboth:

We are all too aware of the misery wrought upon ordinary citizens by an under-regulated and out of control financial sector. After years of deregulation the banking system is no better than it was preceding the Great Recession. That reason alone is enough to bring some sanity to our financial sector through public banking.

Looking for action?

Find it at Radical Women’s organizing meeting

Connect with a multi-racial group of feminists looking to change the world! Take part in updates and discussions on the effort to stop Seattle Housing Authority’s rent-raising “Stepping Forward” plan. Analyze the movement to defend Marissa Alexander, a Black mother going on trial in Florida for defending herself against domestic violence. Learn about other campaigns and activities. Get involved, you are needed!

Thursday, November 6, 7pm
Dinner is served with vegan option at 6:30pm for $8.50 donation.

New Freeway Hall, 5018 Rainier Ave S., Seattle
On the #7 busline or six blocks southeast of the Columbia City light rail station.

For info, rides or to reserve childcare:  206-722-6057
RWseattle@mindspring.com • www.RadicalWomen.org

Microsoft's tax avoidance schemes: national and in Washington State

(revised, 2014/10/28)

Bloomberg reported in 2012: “A U.S. Senate committee memo said Microsoft Corp. (MSFT) used aggressive international tax maneuvers to avoid billions of dollars in taxes over the past three years. … Microsoft used transactions with subsidiaries in Puerto Rico, Ireland, Singapore and Bermuda to save at least $6.5 billion in taxes.” It “shifts some income from around the world to a Bermuda subsidiary that has no employees.”

In Microsoft Admits Keeping $92 Billion Offshore to Avoid Paying $29 Billion in US Taxes David Sirota elaborates:

The panel’s report noted that “despite the [company’s] research largely occurring in the United States and generating US tax credits, profit rights to the intellectual property are largely located in foreign tax havens.” The report discovered that through those tax havens, “Microsoft was able to shift offshore nearly $21 billion (in a 3-year period), or almost half of its US retail sales net revenue, saving up to $4.5 billion in taxes on goods sold in the United States, or just over $4 million in US taxes each day.”

You can download the Senate committee report here.  It says that as of March 31, 2012, Microsoft reported $59.5 billion in cash. $50 billion of that cash (89%) was held overseas.  For comparison, Johnson & Johnson and HP held 100% of their cash overseas.  Apple Computer held $74 billion overseas (67% of their cash).  Google held 48% of their cash overseas. So Microsoft isn’t alone in being a tax cheat.

The Senate report notes that in 1952 corporate taxes generated 32.1% of federal tax revenue. In 2012 corporate taxes generated 8.9% of federal tax revenue.

CR Sridhar writes:  “Oil giants EXXON and CHEVRON earning in the year 2009 profits of $19 billion and $10 billion respectively paid zero Federal income tax. One of the biggest banks in America Citigroup, after posting a profit of $ 4 billion and receiving a bailout of $2.5 trillion, paid nothing to the US treasury. …  A New York janitor earning slightly more than $33,000 has an effective tax rate of 25% while GE, with billions of dollars in revenue pays zero tax. The big losers are the salaried middle class who pay for the games the rich play in tax havens. ”

Getting back to Microsoft…  Not only does Microsoft avoid federal taxes. They also avoid Washington state taxes.

Danny Westneat of the Seattle Times wrote in 2011, “Microsoft reports it is getting a $104.5 million break in its sales taxes — a threefold jump compared with what it reported the year before.  …. If we didn’t give Microsoft the $104.5 million tax break, it would have $52.668 billion cash on hand.”  Westneat says that perhaps school children, the poor, and the disabled would be better beneficiaries of the legislature’s largesse.

Jeff Reifman says in an August 2014 article for Crosscut (“Where are Washington’s K-12 dollars? Just ask Microsoft shareholders“) that Microsoft “accounted for its software licensing sales through the new office [in Nevada] to avoid paying taxes on them, even as the bulk of its facilities, software development and sales continued from Washington state.” Nevada has no corporate income tax. “Because the facilities and employees that built and sold Microsoft’s software overwhelmingly exist in Redmond, the state could have challenged Microsoft Nevada’s accounting as an illegal step doctrine.”   Reifman speculates that the state chose not to challenge the accounting for political reasons.

It gets worse. In 2010 the legislature agreed to exempt Microsoft from paying royalty tax on worldwide sales; instead it would pay only on sales in Washington State. Former Microsoft executive Ross Hunter led the charge for this tax break, according to Reifman. “Hunter also snuck in language which granted large taxpayers such as Microsoft amnesty from unpaid royalty back-taxes.”   Hunter claimed that the change would generate additional revenue, because other software companies would come to the state. Such additional revenue failed to materialize.  Reifman concludes, “we can conservatively estimate Microsoft’s savings from lobbying and dodging the state royalty tax between 1997 and 2014 at $5.34 billion.”  The exact numbers are kept secret. “One study by the Department of Revenue found it took $588,000 worth of tax credits for each local job created.”

Microsoft: Tax Dodger

As I reported here last year, at a state Finance Committee work group meeting on the topic accountability for tax preferences,  Greg LeRoy, Executive Director of Good Jobs First, testified remotely about Making Economic Development Tax Credits Transparent. His group analyzed 240 “megadeals” in which state legislatures gave away $75 million or more in tax preferences.  The number of such giveaways has risen sharply since 2008.  The average cost to the state  per job is  $465,000.  The Boeing tax break is the largest given to date. But there are hundreds of older tax breaks.  LeRoy gave Washington a grade of D for transparency, D- for Job Creation/Quality, and D+ for Enforcement/Clawbacks.

A promising approach to bring an end to such tax breaks is for the legislature to adopt a so-called tax expenditure budget (see this and this), which would require tax expenditures on preferences to be listed in the state budget and reauthorized or allowed to expire every two years.

My interest in this topic was newly inflamed by the planned boycott of Microsoft next month in response to its tax avoidance (see Boycott Microsoft (Black Friday Mourning Picket!) November 28).    Another reason for my interest is a discussion I had with State Rep Cyrus Habib (like Hunter, a Democrat from the 48th LD) recently. When I mentioned Microsoft’s tax breaks, Habib denied that such tax breaks still exist. He claimed the legislature closed tax breaks for Microsoft last year.  The information gathered in this article suggests that Habib misspoke.

If I’m wrong about Microsoft’s state tax breaks, or if the issue is a lot more complex than I have made it out to be, someone please enlighten me. If I’m largely correct about Microsoft’s tax breaks and about legislators’ responsibility for their existence, then there needs to be accountability.

It’s undeniable that Republicans go out of their way to protect corporate tax breaks. Many Republicans have pledged not to raise taxes and not to eliminate tax breaks (which they consider the same thing as raising taxes).  On July 30 Senate Republicans voted to block a bill to limit offshore tax breaks. As reported by Politico, Sen. Chuck Schumer unveiled a bill this September to limit the benefits of tax inversions but Republicans oppose the reforms.

Clearly not all Democrats are immune to supporting tax breaks for corporations.  Gov. Gregoire showed little or no interest in eliminating tax breaks.  Gov. Inslee not only ran on a platform of not raising taxes but spearheaded the largest corporate tax break in US history last year (the $8.7 gift to Boeing).   On the other hand, Inslee and Democrats in the legislature tried to eliminate some tax exemptions in 2013 but they were thwarted by GOP opposition, as reported here.

But Microsoft is the biggest users of H-1B visas (source). Sections of Redmond and Bellevue are filled with East Indians working for the software giant.  Heck, why should Microsoft bother paying state taxes to fund education when they can get trained workers from overseas?

Unfair tax breaks for rich corporations will end only when enough citizens realize they’re being screwed and realize that the problem isn’t taxes per se but the regressive nature of the nation’s tax system.

Let’s hope the boycott event on Nov 28 is big and noisy, like the one imagined here.

Protest against Microsoft tax dodging

Related stories

An explanation of transfer pricing and how corporations use it to avoid taxes

Inside the Spiders Web: Tax havens and Dirty Money

Microsoft Wins Nevada Royalty Tax Cut and Tax Amnesty; Reports Record Revenue

Europe calls out corporate tax schemes our politicians won’t

Cover Story: Washington’s Candy Land of Tax Breaks (“As our cash-strapped state prepares to cut services for the poor and mentally ill, billions of dollars in tax breaks and exemptions are still being doled out.”)

Microsoft could find payoff, take high road by paying up taxes

Microsoft’s Staggering Tax Dodge Alone Would Fund the Entire State of Washington for Two Years

Exposing Two Microsoft Scams… The Billion Dollar Tax Avoidance Scam and the HiB Union Busting Scam

Republicans Are in Corporations’ Pockets on Tax Inversions — Democratic Senate Candidates Should Hammer Them for It

Europe takes aim at deals struck to escape taxes

U.S. Senator blasts Microsoft’s H-1B push as it lays off 18,000 workers