Capitalism as we know it is over, so what comes next? | My Wildest Prediction with Varoufakis

Recent questions

• What is cloud capital and its impact on capitalism?

  Cloud capital refers to a new form of capital that emerged about a decade ago, residing in devices like phones and virtual assistants. It includes optic fiber cables, server farms, and cell towers, acting as an interface between users and capital goods. Users train virtual assistants like Alexa to provide personalized recommendations, leading to increased profits for owners like Jeff Bezos. This shift to cloud capital has transformed capitalism into a form of techn feudalism, where tech companies focus on behavioral modification for profit rather than just technological innovation. This transition has significant implications for the economy and society, as profits shift from physical stores to digital platforms, impacting economic energy, inflation, and power imbalances.

• How did the financial crisis contribute to techn feudalism?

  The financial crisis of 2008 played a crucial role in the transition to techn feudalism. Zero interest rates and massive money printing post-2008 fueled the rise of tech companies and cloud capital. This shift occurred between 2008 and the present, as responses to the financial crisis led to increased investment in cloud capital. Janice Verlis argues that the focus on behavioral modification for profit by tech companies defines cloud capital, marking a departure from traditional capitalism. The financial crisis created conditions that accelerated the growth of cloud capital, leading to the transformation of the economic landscape and power dynamics within society.

• How do Alibaba and Amazon differ from a monopolized town scenario?

  Alibaba and Amazon differ from a monopolized town scenario depicted in Western movies by personalizing what users see through algorithms, creating a non-monopolized market. In a monopolized town scenario, one person owns everything, exerting immense power over everyone. However, Alibaba and Amazon use algorithms to tailor recommendations to individual users, fostering competition and diversity in the market. This personalized approach distinguishes them from traditional monopolies, offering users a range of choices and experiences based on their preferences. By leveraging algorithms to curate content, these companies create a dynamic marketplace that deviates from the centralized control seen in monopolized towns.

• What role do algorithms play in cloud capitalism?

  Algorithms play a central role in cloud capitalism by driving consumption, personalizing recommendations, and shaping user experiences. Tech companies like Amazon and Alibaba use algorithms to analyze user data and behavior, providing tailored suggestions and content. These algorithms not only drive profits for platform owners but also influence user behavior and preferences. While algorithms can enhance user experiences and facilitate transactions, they also have the potential to distract from societal issues like climate change. The power of algorithms in cloud capitalism raises concerns about who controls the algorithms and the implications for individual autonomy and economic dynamics.

• How can societal progress be achieved in the era of cloud capitalism?

  Societal progress in the era of cloud capitalism can be achieved through changes in corporate law, the implementation of micro-payment systems, and the adoption of innovative share structures in companies. Addressing power imbalances and ensuring fair practices through corporate law is crucial for fostering a more equitable society. Ending free services and introducing micro-payment systems can help prevent complete control by cloud capitalists, promoting a more balanced economic landscape. Additionally, the revolutionary idea of share structures where each employee holds a non-tradable share with voting rights and benefits could transform share and labor markets, offering a more inclusive and democratic approach to ownership and decision-making within companies. These measures aim to mitigate the negative impacts of cloud capitalism and pave the way for a more sustainable and equitable future.