Yanis Varoufakis, the former Greek Finance Minister and renowned economist, has been noticeably absent from the spotlight lately.
Once a fiery voice against austerity, he now seems weary, his energy dimmed by time. Yet, in a recent interview, Varoufakis shifts focus from nostalgia to urgency, tackling a pressing question: what do we do now? His answer lies in a provocative analysis of our economic reality, which he dubs "techno-feudalism."
Varoufakis argues that the capitalism we knew has ended, replaced by a new system born from its own excesses. This transformation, he says, has been stealthy but profound, reshaping the global economy and every individual’s life. Capital, he contends, has triumphed over organized labor and social democracy — but its victory has mutated into something unrecognizable. Historically, capital — be it a plow, steam engine, or robot — produced goods like wheat, textiles, or cars. Today’s capital, embedded in our smartphones, tablets, and computers, produces nothing tangible. Instead, it wields a singular, immense power: the ability to alter our behavior.
This new entity, which Varoufakis calls "cloud capital" or "algorithmic capital," thrives on a feedback loop. Machines train us to train them, learning our habits to earn our trust. Then, using that trust, they implant desires into our minds — automatically, without human intervention. Once those desires take root, cloud capital offers products to satisfy them, bypassing traditional markets entirely.
Platforms like Amazon, which seem like marketplaces, are not decentralized hubs of buyers and sellers. Varoufakis labels them "digital fiefs." An algorithm decides what you see, prioritizing items that maximize the platform’s "cloud rent" — up to 40% of a product’s price. This isn’t capitalist profit; it’s a digital echo of feudal land rent, a step forward into a system Varoufakis deems worse than capitalism’s flaws.
So, what’s the solution? Varoufakis rejects nationalization, favoring "socialization" of apps and algorithms instead. Imagine taxi cooperatives with their own apps, free from Uber’s hefty cuts, or municipal platforms replacing Airbnb, where communities set rules and keep profits. Another key proposal is "interoperability" — the ability to transfer followers from one social network to another, much like keeping a phone number when switching carriers. This, he argues, would curb the "unbridled power of techno-feudal lords" and foster real competition.
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The challenge is steep. These tech giants wield immense political and economic clout, making change a uphill battle. Yet Varoufakis remains hopeful. The first step, he insists, is recognizing this absolute power and our subjection to it. Only then can we agitate for a democratic process to redistribute that privilege from the few to the many.
As Varoufakis ages, his vision sharpens. Whether he’s faded or simply evolved, his call to action resonates as the world grapples with this new economic order.
