Silicon Valley is continually a decade ahead of the rest of the humanity in their opportunistic thinking, they know how to take advantage of us before we even realise it. If this were chess, they’re so far ahead of everyone that we have no choice but submitting to their power. By the time government figures out what’s going on, they’re already 2 decades too late. Silicon Valley has us outmanoeuvred, and by the time people figure it out we’re already their slaves.
What is the root cause of the problem with tech? Perhaps main problem is tech monopoly power in few mega corporations, and the concentration of power in the United States.
Entrepreneurship has actually been decreasing over the 3 or 4 decades as power has become more and more concentrated in fewer corporations, allowing hyper-capitalism to occur at an unprecedented scale.
The Big Small: Reversing the Decline in Entrepreneurship
Usually it’s the role of government to break up monopolies as they are considered illegal in the US for example, but for whatever reason that hasn’t happened.
The evidence of this concentration of power in mega tech corporations is everywhere. But maybe nowhere is it more striking than by looking at the stock markets.
For example the last 13 years or so has seen an overall negative return in almost all stock markets, such that if someone were to have invested way back then, they would now have less money than they stated with. This is true almost everywhere, but not for the United States. In the same period investing in US stocks would have at least doubled or tripled your money.
It has been happening for years in fact, Western Europe now has seen some 13 years of decline, and Japan almost 3 decades of decline.
And if you had invested just in the US tech industry for the same 13 year period, you would now have 5 times as much money.
If we add up all information technology companies including online interactive media (ie Google and Facebook), Amazon and telecomm, information tech alone is already at least 43 percent of the value of the US stock market. And that’s not even counting biotech, fintech and other high tech industries which if also added in would together be much more than half of the market.
USA Stock Market Sectors and Industies
In fact just Apple, Amazon, Alphabet, Microsoft and Facebook combined account for 20 percent of the US stock market’s value.
So most industries outside of tech and outside of the USA had low profit margins and were in poor financial shape even before the pandemic happened.
And now on top of insult and injury what we have now with the current deep recession or depression (as it will later be determined) is a situation where a large portion of the world’s business small and big are being vaporised before our very eyes.
For example in many industries it’s estimated that 40% of businesses will disappear. Many already have. This is the permanent end of many businesses, and I can see that by either looking at the numbers from the top, from the bottom, or simply by walking down the street and seeing the faces of some small business owners.
This economy is not going to bounce back because not just because US unemployment could already be higher than the worst point of the Great Depression, but because people fear for their safety and will not be going out and about for a long time.
It’s the perfect scenario for information tech to go from having taken over, to having control of maybe even most of the economy and of humanity (if it hasn’t already).
Though unthinkable it’s the biggest issue of the present, so we must think about it and think about it quickly.