FC: Final report on Financial Cryptography '00 & Anguilla

[Declan McCullagh <declan () well com>]

I got back very late Sunday night from Anguilla. It's a small, odd, and 
endearing place.

A national election is about to happen. While I was driving back from 
dinner on Saturday night (I ended up sleeping on the beach -- it was much 
too nice outside), I passed by candidates on the side of the street 
attempting to rouse the sentiments of the voters against what I gathered 
were the incumbents.

The controversy: The US military reportedly wants to lease land on a small 
island miles from Anguilla -- but is nevertheless part of the country -- 
and use it as a bombing range. "Bombs will be falling on Anguilla, on West 
End, on Little Bay, on Rendezvous Bay, even in The Village," one candidate 
intoned darkly, warning that warplanes might miss their targets.

The politico who was using this issue against his opponent gave a masterful 
performance. He manipulated raw emotions, roused anti-capitalist 
sentiments, attacked the presumably-wealthy landowner, exaggerated the 
problem, played to anti-foreigner feelings, and did his best to stir up 
envy, resentment, and anger.

It might well get him elected. The problem is that voters are rationally 
ignorant -- the costs of learning more about the issue are far greater than 
the benefits because a single vote is essentially meaningless. In truth, 
the odds of US bombs accidentally falling on Anguilla is practically zero, 
there may be nothing he could do about it even if elected, and there are 
more pressing issues closer to home.

But because politicos need to rouse those rationally-ignorant voters, 
instead of speaking logically and thoughtfully, they appeal to emotion, 
anger, and prejudice. Kissing babies and warning against foreigners 
slaughtering your family is simply, and sadly, a rational reaction on the 
part of politicians.

My final two reports:

There's Gold in That E-Casino
http://www.wired.com/news/business/0,1367,34555,00.html

Crypto Confab Heats Up
http://www.wired.com/news/politics/0,1283,34603,00.html

-Declan

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