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Correspondent

23 August 2024 at 4:29:04 pm

Algorithmic Anarchy

The NEET paper leak protests at Delhi’s Jantar Mantar should have remained a legitimate expression of student anger over the collapse of examination integrity. Instead, as the agitation escalated into clashes with the police, abusive sloganeering and an increasingly radical political campaign, Meta’s algorithms emerged as an invisible force multiplying the unrest. The controversy surrounding the brief removal of Prime Minister Narendra Modi’s message to the youth in the aftermath of the...

Algorithmic Anarchy

The NEET paper leak protests at Delhi’s Jantar Mantar should have remained a legitimate expression of student anger over the collapse of examination integrity. Instead, as the agitation escalated into clashes with the police, abusive sloganeering and an increasingly radical political campaign, Meta’s algorithms emerged as an invisible force multiplying the unrest. The controversy surrounding the brief removal of Prime Minister Narendra Modi’s message to the youth in the aftermath of the protests only reinforces that concern. Meta has attributed the takedown to a “technical glitch” and apologised. But when the world’s largest social media platform can temporarily suppress the message of the elected leader of the world’s largest democracy during a politically charged moments, the issue extends well beyond a single deleted post. Who decides what India sees? That question has become impossible to ignore during the Cockroach Janta Party’s protests. Across Instagram and Facebook, users have reported being inundated with CJP videos, reels and protest clips despite never following the organisation or engaging with similar political content. Whether this resulted from coordinated paid collaborations, recommendation algorithms or both deserves a thorough investigation. But the larger democratic concern is that public opinion is increasingly being mediated not by citizens, journalists or elected representatives, but by opaque algorithms designed in Silicon Valley and optimised for engagement rather than democratic responsibility. Meta’s recommendation engine is not a passive notice board. Every piece of political content that reaches millions has first been selected by an algorithm whose workings remain largely hidden from public scrutiny. This is hardly unique to India. Around the world, Meta has repeatedly been accused of amplifying polarisation, misinformation and political extremism because outrage keeps users engaged. From elections to ethnic conflicts and episodes of civil unrest, the company has faced persistent criticism that its commercial incentives reward divisive content over balanced discourse. Democracies cannot afford to outsource the architecture of public debate to corporations whose primary obligation is to shareholders rather than constitutional values. While citizens are entitled to challenge governments and demand accountability, there is an important distinction between a movement that expands because people are persuaded and one that appears to be algorithmically amplified into omnipresence. Equally disturbing has been the normalisation of abusive political language during the protests. When such content is repeatedly amplified through recommendation systems, platforms cease to be neutral intermediaries and become active participants in degrading democratic discourse. Platforms that influence elections, protests and public opinion must explain how political recommendations are generated and why particular narratives receive extraordinary amplification. Silicon Valley companies insist they are merely technology platforms. But their algorithms increasingly exercise editorial power. When software determines which protests dominate national conversations and whose voices disappear, technology has already become politics.

Four Methods to Choose Investment

One of the most common questions investors ask is: “Which investment should I choose?” The real answer is that no investment is good or bad in isolation.


A simple way to judge any investment is the RRLT framework - Risk, Return, Liquidity and Time Period. Before investing in any product, all four factors should be seen together.


1. Return

Return is the reward you expect from the investment. It may come in the form of interest, dividend, capital appreciation or regular income. Naturally, every investor wants good returns.


However, return should be understood properly. It is important to look at the real intrinsic / internal rate of return (IRR) of every investment, especially when cash flows happen at different points of time. A product may sound attractive on the surface, but the actual return may be very different when calculated correctly.


2. Risk

Risk is the possibility of losing money whether partially, fully, temporarily or permanently. In some investments, the risk is very low. In others, the value may fluctuate significantly in the short term.


Direct stocks, equity mutual funds, gold and real estate can create wealth over time, but they need patience and the ability to tolerate ups and downs. On the other hand, fixed income products may offer stability, but they may not beat inflation over the long term.


3. Liquidity

Liquidity means how easily you can convert your investment back into money when required. A savings account is highly liquid. Fixed deposits, mutual funds and stocks are reasonably liquid. Real estate may take time to sell.


Liquidity matters because emergencies do not come with advance notice. Before chasing returns, every investor must ensure that enough money is available in liquid instruments for short-term needs and emergencies.


4. Time Period

Time Period is the most important filter. The investment product should be selected based on when you need the money.


If the money is needed within a few months or one to two years, safety and liquidity matter more than high returns. If the goal is ten, fifteen or twenty years away, growth-oriented assets like equity mutual funds, direct stocks and gold-related instruments can play a larger role.


The longer the time horizon, the better your ability to handle short-term volatility.


Goal-Based Planning

This is where proper financial planning becomes useful. Make a table of your financial goals - home purchase, car, vacation, child education, child’s marriage and retirement.


Write the amount required, adjust it for inflation and mention the time left for each goal. Once this is clear, choosing the right investment becomes easier.


Investment Avenues

Broadly, investment avenues can be divided into two categories - those that help beat inflation and those that mainly provide stability.


Equities, equity mutual funds, gold and real estate help in long-term wealth creation by beating inflation. Your long-term financial goals should ideally be invested in this bucket - the one that helps your money grow faster than inflation.


For your short-term goals, rely more on bank fixed deposits, recurring deposits, and debt mutual funds. Here, safety and availability of money are more important than high returns.


A good investment is not the one that sounds exciting. A good investment is the one that fits your goal.


So before investing anywhere, remember RRLT - Risk, Return, Liquidity and Time Period. When these four are aligned with your financial goal, investment decisions become much clearer.


(The writer is Chartered Accountant and CFA (USA). Financial advisor. Views personal. He could be reached on 9833133605)

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