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Thursday, July 24, 2025

24: "Capitalism Will Not Survive AI"

The General Theory of Enshittification It isn’t a new phenomenon, but it seems to matter more ......... Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die. ......... And the increasingly anti-democratic rage of tech bros is, I’d argue, in part driven by their awareness that people don’t love and admire them the way they used to, and their belief that they should still be the culture heroes they once were. ........... Suppose you run a business whose product, whatever it may be, is subject to network effects: the more people using it, the more attractive it is to other current or potential users. Social media platforms like Facebook or TikTok are the currently obvious examples, but the logic works for services like Uber or physical goods like electric vehicles too. ......... One last point: In my little model, the story doesn’t end with the firm dying. It ends, instead, with stagnation — the monopolist increases prices and/or reduces quality enough that his base stops growing, but not enough to drive it away. For what it’s worth, that appears to be the story so far for

Facebook, whose user base has plateaued but not crashed. Twitter is a somewhat different story, but this post is about enshittification, not Nazification.

.......... Like everyone, I miss good service, good prices, and quality entertainment. But a further problem with enshittification is, as I said, that it messes with people’s heads. ......... Now, the guy who ran Facebook when it was a great way to form communities and make friends and find old friends is the same guy who has turned Facebook into a hellscape. There’s very good reason to believe that Mark Zuckerberg was always a creep, and he took investment capital very early on, long before he started fucking up the service. So what gives? Did Zuck get a brain parasite that turned him evil? Did his investors get more demanding in their clamor for dividends? ........... The thing is, the enshittification cycle also messes with the heads of the people running these companies. They were loved when the public imagined, falsely, that they were the good guys. Now they aren’t. And it drives them crazy.

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A Reorganized UN: Built From Ground Up
The Drum Report: Markets, Tariffs, and the Man in the Basement (novel)
World War III Is Unnecessary
Grounded Greatness: The Case For Smart Surface Transit In Future Cities
The Garden Of Last Debates (novel)
Deported (novel)
Empty Country (novel)
Trump’s Default: The Mist Of Empire (novel)

The 20% Growth Revolution: Nepal’s Path to Prosperity Through Kalkiism
Rethinking Trade: A Blueprint for a Just and Thriving Global Economy
The $500 Billion Pivot: How the India-US Alliance Can Reshape Global Trade
Trump’s Trade War
Peace For Taiwan Is Possible
Formula For Peace In Ukraine
A 2T Cut
Are We Frozen in Time?: Tech Progress, Social Stagnation
The Last Age of War, The First Age of Peace: Lord Kalki, Prophecies, and the Path to Global Redemption
AOC 2028: : The Future of American Progressivism

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