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Yanis Varoufakis on the death of capitalism, Starmer, and the tyranny of big tech

Channel 4 News・28 minutes read

China and the United States dominate big Tech while Europe and Britain are considered insignificant; Techno-feudalism, a mutated form of capitalism, shifts wealth to cloud capital controlled by companies like Amazon and Alibaba, impacting economic stability, individual autonomy, and global dynamics. A proposal for socializing cloud capital involves giving each employee one share in a company upon employment, aiming to create equality between workers and owners, challenging traditional economic laws and systems.

Insights

  • Techno-feudalism, as described by Yanis Varoufakis, is a mutated form of capitalism where wealth is generated through cloud capital by big Tech companies like Amazon and Alibaba, leading to economic crises and a blurring of work-leisure boundaries.
  • The proposal to socialize cloud capital by giving each employee a non-tradable share in a company upon employment aims to create equality and democratize corporations, shifting away from profit-driven markets to a more equitable shareholder democracy.

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Recent questions

  • What is techno-feudalism?

    A mutated form of capitalism based on cloud capital.

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Summary

00:00

"Techno-Feudalism: Shift from Capitalism to Rent"

  • Only China and the United States are major players in big Tech, while Europe and Britain are considered irrelevant.
  • The guest on the podcast, Yanis Varoufakis, is a Greek Economist and former Greek Finance Minister who discusses his latest book "Techno-Feudalism: What Killed Capitalism."
  • Feudalism was a system based on land ownership and rent-taking by the aristocracy, while capitalism shifted power to those who owned machines and factories.
  • Techno-feudalism is a mutated form of capitalism where wealth comes from cloud capital, represented by big Tech companies like Amazon and Alibaba.
  • Cloud capital charges rents on products sold, leading to anxiety and economic crises due to a disconnect between money supply and investment levels.
  • Capital is now being produced by individuals contributing data and content to platforms like Amazon and Facebook without being paid as wage laborers.
  • The shift to cloud capital affects aggregate demand, leading to central banks printing more money to compensate, causing inflation and economic instability.
  • The constant production of capital through digital labor blurs the lines between work and leisure, impacting individual autonomy and social democracy.
  • Techno-feudalism replaces traditional capitalism by shifting from profit-driven markets to rent-collecting digital platforms, altering economic laws and global dynamics.
  • Companies like Tesla, with a focus on data-driven electric cars, exemplify the shift to cloud capital, while traditional companies like Volkswagen struggle to adapt.

16:49

"Socializing Cloud Capital for Worker Equality"

  • Germany has failed to copy Tesla, while only China and the United States have succeeded in big tech.
  • Europe, including Britain, is considered irrelevant due to the lack of cloud capital.
  • Social democracy is deemed inadequate to address the issue; cloud capital must be socialized.
  • A proposal suggests giving every employee one share in a company upon employment, which cannot be traded or leased.
  • This system aims to create a real shareholder democracy within corporations.
  • The elimination of the share market and labor market under capitalism is proposed to create equality between workers and owners.
  • A successful example of this system was observed in a company in Washington state with 350 employees and a $1.2 billion turnover.
  • The importance of informed voting and participation in decision-making processes within companies is highlighted.
  • The failure of the speaker, a former Finance Minister, in Greek politics is discussed, attributing it to unmet expectations and betrayal of hope.
  • The lack of credibility in current political leaders, like Keir Starmer, is emphasized, questioning the effectiveness of their policies and leadership.

32:58

"Workplace democracy, digital banking revolution"

  • Democratize workplace: one person, one share, one vote
  • Central Bank of England to provide free digital account and PIN number
  • Barclays and Lloyds to offer services beyond payment system
  • Proposed changes could revolutionize the world
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