Bruce Schneier:

In July 2012, responding to allegations that the video-chat service Skype — owned by Microsoft — was changing its protocols to make it possible for the government to eavesdrop on users, Corporate Vice President Mark Gillett took to the company’s blog to deny it.

Turns out that wasn’t quite true.

Or at least he — or the company’s lawyers — carefully crafted a statement that could be defended as true while completely deceiving the reader. You see, Skype wasn’t changing its protocols to make it possible for the government to eavesdrop on users, because the government was already able to eavesdrop on users.

At a Senate hearing in March, Director of National Intelligence James Clapper assured the committee that his agency didn’t collect data on hundreds of millions of Americans. He was lying, too. He later defended his lie by inventing a new definition of the word “collect,” an excuse that didn’t even pass the laugh test.

As Edward Snowden’s documents reveal more about the NSA’s activities, it’s becoming clear that we can’t trust anything anyone official says about these programs.
Google and Facebook insist that the NSA has no “direct access” to their servers. Of course not; the smart way for the NSA to get all the data is through sniffers.

Gillian Tett:

How can America cut its healthcare costs? The question is generating political heat in Washington right now. No wonder. Healthcare spending now stands at an eye-popping 17 per cent of US gross domestic product. And next year, President Barack Obama’s divisive “Obamacare” reforms will take effect, extending insurance to a much wider part of the population than ever before.

But as politicians trade ideas (and insults) about cutting costs – with proposals ranging from better use of information technology through to insurance exchanges – there is another issue that needs to be discussed: doctors’ pay.

In recent years, doctors in America have received relatively high levels of remuneration, running about 60 per cent higher than the industrialised world average, according to data from the Paris-based OECD. But the absolute pay level is not the key issue at stake. What really needs to be debated is the system of incentives.

Most notably, in recent years about two-thirds of US doctors have been paid according to a “fee-for-service” system, meaning that they receive remuneration every time they see a patient or provide a treatment.

Joel Kotkin:

Once, we saw the potential unsurpassed human liberation available through information technology. However, Silicon Valley, as shown in the NSA scandal, increasingly has become intimately tied to the surveillance state. Technology has enabled powerful firms – including Verizon, Apple, Facebook, Microsoft and Google – to channel everyone’s email and cellphone calls to the national security apparatus.

“It’s as bad as reading your diary,” Joss Wright, a researcher with the Oxford Internet Institute, recently told the Associated Press, adding, “It’s far worse than reading your diary. Because you don’t write everything in your diary.”

Nor does the snooping relate only to national security. If my emails to friends and family arguably constitute a potential threat to national security, that’s one thing. The massive monitoring and largely unapproved tapping into our data for profit is quite another.

Google, which, in the first half of 2012, took in more advertising dollars than all U.S. magazines and newspapers combined, has amassed an impressive list of privacy violations, notes the Huffington Post. Even the innocent-seeming Gmail service is used to collect and sell information; Google’s crew in Palo Alto may know more about the casual user than most of us suspect.

Even Apple, arguably the most iconic Silicon Valley firm, has been hauled in front of courts for alleged privacy violations. For its part, Consumer Reports recently detailed Facebook’s pervasive privacy breaches, including misuse of information as detailed as health conditions, details an insurer could use against you, when someone is going out of town (convenient for burglars), as well as information pertaining to everything from sexual orientation to religious and ethnic affiliation.

Despite ritual denials about such invasions of privacy, the new communications moguls have little reason to stop, and lots of financial reasons to continue. As for concerns over privacy, the new oligarchs take something of a blasé attitude. Eric Schmidt, Google’s chairman, in 2009 responded to concerns over privacy with this gem: “If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.”

Andy Greenberg and Ryan Mac:

The biggest problem for Palantir’s business may be just how well its software works: It helps its customers see too much. In the wake of NSA leaker Edward Snowden’s revelations of the agency’s mass surveillance, Palantir’s tools have come to represent privacy advocates’ greatest fears of data-mining technology — Google-level engineering applied directly to government spying. That combination of Big Brother and Big Data has come into focus just as Palantir is emerging as one of the fastest-growing startups in the Valley, threatening to contaminate its first public impressions and render the firm toxic in the eyes of customers and investors just when it needs them most.

“They’re in a scary business,” says Electronic Frontier Foundation attorney Lee Tien. ACLU analyst Jay Stanley has written that Palantir’s software could enable a “true totalitarian nightmare, monitoring the activities of innocent Americans on a mass scale.”

Karp, a social theory Ph.D., doesn’t dodge those concerns. He sees Palantir as the company that can rewrite the rules of the zero-sum game of privacy and security. “I didn’t sign up for the government to know when I smoke a joint or have an affair,” he acknowledges. In a company address he stated, “We have to find places that we protect away from government so that we can all be the unique and interesting and, in my case, somewhat deviant people we’d like to be.”