Feeling dizzy in the face of technological developments is stupid. That's how the techno-optimist manifesto that went viral in 2023 makes you feel. A document promoted by Marc Andreessen, a serial entrepreneur known for being the father of the Netscape browser and Facebook. This manifesto uses an epic tone to present a series of statements based on the premise that technological progress is the only hope for humanity's great problems. To save humanity, it is necessary to let entrepreneurs do their work, in complete freedom, trusting in the proper functioning of free markets that have proven over time to adapt and evolve. This manifesto enthrones money as the driving force of economic growth that cannot be stopped. From the perspective of the manifesto, thinking about the social consequences, possible inequalities, or injustices, are unjustified fears that only make it more difficult. In fact, the document describes regulation, sustainability, social responsibility, and ethics as "zombie ideas," a remnant of communism.
On the other side of the spectrum, we find the thesis of economist Varoufakis, who claims that we are witnessing a mutation of capitalism, no longer framed by the norms of a free and competitive market, with the emergence of a system he calls techno-feudalism. In his view, this emerging system is built on intangible capital that companies construct in the cloud, based on the accumulation of data and active, opaque algorithms.
According to Varoufakis's theory, Amazon, for example, would be a cloud-based fiefdom. The vassals would be the companies forced to sell their products through its platform. We consumers would be the servants, providing endless data about our preferences and desires. The algorithm adjusts to our economic capacity and preferences, seeking to influence our behavior. Searching for the same product yields different results in a market where consumers lack complete information. Amazon also has the ability to remove a product from a search if it is interested in positioning others or selling a model it produces itself.
It's true that Amazon isn't alone; Alibaba and some others can compete with it, but they can be counted on the fingers of one hand. They're still fiefdoms. Social networks like Instagram, TikTok, and X also feed on the information we provide: what we look at, how long we spend there, what we like and don't like, as well as what we post. All of this data is measurable down to the last detail and extremely reliable. We are "servants" of the cloud. In fact, they know us better than we know ourselves. All the intangible capital in the cloud that these companies have, the basis of their wealth, is created and updated by us constantly, with great pleasure, and all for the modest price of €0.
While companies based on tangible capital must make large investments to stay competitive, cloud companies have the advantage of data. Investments are limited to machinery in data centers, which certainly have a cost, but it's small compared to the wealth generated by content.
Another substantial change is in the portion of business income transferred to workers in the form of salaries. While in companies based on land-based capital it can reach between 60-70%, in companies based on cloud-based capital this percentage plummets, potentially reaching less than 1% of revenue. Millions of us "workers" are free.
As humans, we will always need land-based capital, but the Internet of Things is expanding, and with it, the power of cloud capital: smart watches and glasses, the Alexas Homemade and derivatives. And, if you drive a Tesla, a certain Elon Musk—a great techno-optimist—knows where you're coming from and where you're going, if you're speeding, if you're picking your nose at traffic lights, and, at any moment, has the power to immobilize your vehicle. Cloud capital will end up dominating terrestrial capital, just as Clive Humby predicted more than two decades ago: "Data is the oil of the 21st century."
Technofeudalism exists, but we must bear in mind that these are fiefdoms created by entrepreneurs with effort and vision, and not inherited from birth as was the case in the Middle Ages. In favor of technological optimism, perhaps yes, but accompanied by critical thinking: knowing what we do, why, for whom, and with what derivatives.
