The year 2008 signaled to many the weak foundations of modern capitalism in the hands of the greedy, untethered financial sector—the “vampire squid” investment banks as journalist Matt Taibbi called them. Rising from the ashes of the crash, these banks used government money—”socialism for the bankers”—to enrich themselves and Big Business. This money never got to the masses. Instead shares were bought back in traditional capitalist industries and an emerging powerful bloc—the Jeff Bezos’s, the Microsoft’s, the Google’s of the world—invested in what guest Yanis Varoufakis calls, “cloud capital.”
Former member of the Greek parliament and Minister of Finance Yanis Varoufakis joins host Chris Hedges on this episode of The Chris Hedges Report to explain how capitalism is dead and a new form of capital, the title of his new book, “Technofeudalism,” has arisen and holds power akin to the feudal lords of medieval times.
Varoufakis argues that the two pillars of capitalism, markets and profits, have now been replaced and a familiar system of fiefdoms and serfs has emerged. “Markets have been replaced by these digital platforms that look like markets but are not markets. They're more like digital or cloud fiefdoms like Amazon.com or Alibaba, where you have a digital fence keeping within it producers, consumers, artisans, intellectuals, and we are all essentially producing value for the owner of that digital fiefdom, Jeff Bezos in this particular case, in the case of Amazon, who charges ground rent, but of course it's cloud rent,” Varoufakis tells Hedges.
The huge amount of investment in phones, laptops, cell towers, server farms and thousands of miles of optical fiber cables has brought about a system that now dominates all parts of life, including even behavior modification in individual people. The most common platforms used today—Instagram, Google, Amazon, etc.—use their automated systems to produce “tailor-made advertisements which are in a dialectical relationship with us,” Varoufakis says. “We train them to train us, to train them to train us, to convince us that we want something.”
Varoufakis discusses this and more, including how private equity companies like BlackRock, State Street and Vanguard also tap into this system of rentier capitalism and do away with competition, parasitically exploiting working people and traditional capitalists alike.