#rentiers

[mostlysignssomeportents]

Yanis Varoufakis’s “Technofeudalism: What Killed Capitalism?”

Monday (October 2), I'll be in Boise to host an event with VE Schwab. On October 7–8, I'm in Milan to keynote Wired Nextfest.

Socialists have been hotly anticipating the end of capitalism since at least 1848, when Marx and Engels published The Communist Manifesto - but the Manifesto also reminds us that capitalism is only too happy to reinvent itself during its crises, coming back in new forms, over and over again:

https://www.nytimes.com/2022/10/31/books/review/a-spectre-haunting-china-mieville.html

Now, in Technofeudalism: What Killed Capitalism, Yanis Varoufakis - the "libertarian Marxist" former finance minister of Greece - makes an excellent case that capitalism died a decade ago, turning into a new form of feudalism: technofeudalism:

https://www.penguin.co.uk/books/451795/technofeudalism-by-varoufakis-yanis/9781847927279

To understand where Varoufakis is coming from, you need to go beyond the colloquial meanings of "capitalism" and "feudalism." Capitalism isn't just "a system where we buy and sell things." It's a system where capital rules the roost: the richest, most powerful people are those who coerce workers into using their capital (factories, tools, vehicles, etc) to create income in the form of profits.

By contrast, a feudal society is one organized around people who own things, charging others to use them to produce goods and services. In a feudal society, the most important form of income isn't profit, it's rent. To quote Varoufakis: "rent flows from privileged access to things in fixed supply" (land, fossil fuels, etc). Profit comes from "entrepreneurial people who have invested in things that wouldn't have otherwise existed."

This distinction is subtle, but important: "Profit is vulnerable to market competition, rent is not." If you have a coffee shop, then every other coffee shop that opens on your block is a competitive threat that could erode your margins. But if you own the building the coffee shop owner rents, then every other coffee shop that opens on the block raises the property values and the amount of rent you can charge.

The capitalist revolution - extolled and condemned in the Manifesto - was led by people who valorized profits as the heroic returns for making something new in this world, and who condemned rents as a parasitic drain on the true producers whose entrepreneurial spirits would enrich us all. The "free markets" extolled by Adam Smith weren't free from regulation - they were free from rents:

https://locusmag.com/2021/03/cory-doctorow-free-markets/

But rents, Varoufakis writes, "survived only parasitically on, and in the shadows of, profit." That is, rentiers (people whose wealth comes from rents) were a small rump of the economy, slightly suspect and on the periphery of any consideration of how to organize our society. But all that changed in 2008, when the world's central banks addressed the Great Financial Crisis by bailing out not just the banks, but the bankers, funneling trillions to the people whose reckless behavior brought the world to the brink of economic ruin.

Suddenly, these wealthy people, and their banks, experienced enormous wealth-gains without profits. Their businesses lost billions in profits (the cost of offering the business's products and services vastly exceeded the money people spent on those products and services). But the business still had billions more at the end of the year than they'd had at the start: billions in public money, funneled to them by central banks.

This kicked off the "everything rally" in which every kind of asset - real estate, art, stocks, bonds, even monkey JPEGs - ballooned in value. That's exactly what you'd expect from an economy where rents dominate over profits. Feudal rentiers don't need to invest to keep making money - remember, their wealth comes from owning things that other people invest in to make money.

Rents are not vulnerable to competition, so rentiers don't need to plow their rents into new technology to keep the money coming in. The capitalist that leases the oil field needs to invest in new pumps and refining to stay competitive with other oil companies. But the rentier of the oil field doesn't have to do anything: either the capitalist tenant will invest in more capital and make the field more valuable, or they will lose out to another capitalist who'll replace them. Either way, the rentier gets more rent.

So when capitalists get richer, they spend some of that money on new capital, but when rentiers get richer, them spend money on more assets they can rent to capitalists. The "everything rally" made all kinds of capital more valuable, and companies that were transitioning to a feudal footing turned around and handed that money to their investors in stock buybacks and dividends, rather than spending the money on R&D, or new plants, or new technology.

The tech companies, though, were the exception. They invested in "cloud capital" - the servers, lines, and services that everyone else would have to pay rent on in order to practice capitalism.

Think of Amazon: Varoufakis likens shopping on Amazon to visiting a bustling city center filled with shops run by independent capitalists. However, all of those capitalists are subservient to a feudal lord: Jeff Bezos, who takes 51 cents out of every dollar they bring in, and furthermore gets to decide which products they can sell and how those products must be displayed:

https://pluralistic.net/2022/11/28/enshittification/#relentless-payola

The postcapitalist, technofeudal world isn't a world without capitalism, then. It's a world where capitalists are subservient to feudalists ("cloudalists" in Varoufakis's thesis), as are the rest of us the cloud peons, from the social media users and performers who fill the technofuedalists' siloes with "content" to the regular users whose media diet is dictated by the cloudalists' recommendation systems:

https://pluralistic.net/2023/01/21/potemkin-ai/#hey-guys

A defining feature of cloudalism is the ability of the rentier lord to destroy any capitalist vassal's business with the click of a mouse. If Google kicks your business out of the search index, or if Facebook blocks your publication, or if Twitter shadowbans mentions of your product, or if Apple pulls your app from the store, you're toast.

Capitalists "still have the power to command labor from the majority who are reliant on wages," but they are still mere vassals to the cloudalists. Even the most energetic capitalist can't escape paying rent, thanks in large part to "IP," which I claim is best understood as "laws that let a company reach beyond its walls to dictate the conduct of competitors, critics and customers":

https://locusmag.com/2020/09/cory-doctorow-ip/

Varoufakis points to ways that the cloudalists can cement their gains: for example, "green" energy doesn't rely on land-leases (like fossil fuels), but it does rely on networked grids and data-protocols that can be loaded up with IP, either or both of which can be turned into chokepoints for feudal rent-extraction. To make things worse, Varoufakis argues that cloudalists won't be able to muster the degree of coordination and patience needed to actually resolve the climate emergency - they'll not only extract rent from every source of renewables, but they'll also silo them in ways that make them incapable of doing the things we need them to do.

Energy is just one of the technofeudal implications that Varoufakis explores in this book: there are also lengthy and fascinating sections on geopolitics, monetary policy, and the New Cold War. Technofeudalism - and the struggle to produce a dominant fiefdom - is a very useful lens for understanding US/Chinese tech wars.

Though Varoufakis is laying out a technical and even esoteric argument here, he takes great pains to make it accessible. The book is structured as a long open letter to his father, a chemical engineer and leftist who was a political prisoner during the fascist takeover of Greece. The framing device works very well, especially if you've read Talking To My Daughter About the Economy, Varoufakis's 2018 radical economics primer in the form of a letter to his young daughter:

https://us.macmillan.com/books/9780374538491/talkingtomydaughterabouttheeconomy

At the very end of the book, Varoufakis calls for "a cloud rebellion to overthrow technofeudalism." This section is very short - and short on details. That's not a knock against the book: there are plenty of very good books that consist primarily or entirely of analysis of the problems with a system, without having to lay out a detailed program for solving those problems.

But for what it's worth, I think there is a way to plan and execute a "cloud rebellion" - a way to use laws, technology, reverse-engineering and human rights frameworks to shatter the platforms and seize the means of computation. I lay out that program in The Internet Con: How the Seize the Means of Computation, a book I published with Verso Books a couple weeks ago:

https://www.versobooks.com/products/3035-the-internet-con

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/09/28/cloudalists/#cloud-capital

#pluralistic #yanis varoufakis #socialism #communism #technofeudalism #economics #postcapitalism #political science #rent-seeking #rentiers #books #reviews #gift guide

[scavengedluxury]

#uk politics #landlordism #rentier capitalism

[liberalsarecool]

Exploitation is root of most of our problems. You are given endless distractions, but most of what grinds you down is the bottomless greed/avarice of capitalism.

#rentier economics

[gynoidgearhead]

moderation wage labor is inhumane and this is one functional reason social media is a fundamentally insolvent concept

#not that other wage labor isn't categorically inhumane (basically all wage labor under capitalism is inhumane) #but moderation labor... look i can both think facebook sucks institutionally *and* think nobody should have to look at the shit there #especially when they're being paid an absolute pittance and aren't being offered therapy. and especially with graphic gore and csam etc #like look. anyone who does meaningful moderation labor should own a share of the platform they help maintain. #and this is basically never going to happen as long as the owner/rentier/capitalist class exists and owns these platforms #moderation #labor #capitalism #social media #alienation of labor

[dwagom]

if WFH is going to cause an imminent meltdown in commercial real estate then the question of "why didn't we have WFH sooner" really becomes "how long have office-workers been forced to subsidise CRE-landlords, and were those landlords more macroeconomically important than the direct employers?"

#the hilarious downslide of modern rentierism

[primarch-victus]

there's just something about the male protagonists of focus entertainment published games; they have bewitched me with their grumpiness and complete lack of people skills

#also their accents 😌 #oh how i love these fellas #just lil guys who have the most batshit things happen to them #jesse rentier #jonathan reid #red mac raith #banishers #banishers ghosts of new eden #vampyr #evil west #focus entertainment

[sweeetestcurse]

Jesse Rentier 01/??

#evilwestedit #jesse rentier #gamingedit #videogameedit #gifs #evil west #my gifs #queue

[stillnotyourmusebitch]

Okay so I've been playing Evil West. Set in western times with Vampires.

So now I'm thinking about RDR2 and Arthur Morgan whooping vampire booty.

#jamie talks #rdr2 #evil west #jesse rentier #arthur morgan

[april-ryan]

EVIL WEST (2022)

#evil west #gamingedit #videogameedit #evilwestedit #jesse rentier #jessgameedits

[les4lesbushfire]

Bi, Trans, and He/Him Pronouns Jesse + Gay, Amaverique, and no pronouns Edgar icons!

like or reblog if using- thnx!

#just hc icons :3 #evil west #jesse rentier #edgar gravenor #pride icons #icons #just started this game today. it's so fun #cowboy vampire hunters!!!! AAAAAAAAAAAA #temp 2

[mostlysignssomeportents]

They're handing out patents for "inventions" that don't exist

Today (Oct 16) I'm in Minneapolis, keynoting the 26th ACM Conference On Computer-Supported Cooperative Work and Social Computing. Thursday (Oct 19), I'm in Charleston, WV to give the 41st annual McCreight Lecture in the Humanities. And on Friday (Oct 20), I'm at Charleston's Taylor Books from 12h-14h.

Patent trolls produce nothing except lawsuits. Unlike real capitalist enterprises, a patent troll does not “practice” the art in its patent portfolio — it seeks out productive enterprises that are making things that real people use, and then uses legal threats to extract rents from them.

One of the most prolific patent trolls of the twenty-first century is Landmark Technology, whose U.S. Patent №7,010,508 nominally covers virtually anything you might do in the course of operating an online business: having a homepage, letting a customer login to your site, or having pages where customers can view and order products.

Landmark shook down more than a thousand productive businesses for $65,000 license-fees it demanded on threat of a patent lawsuit.

But that reign of terror is almost certainly over. When Landmark tried to get $65,000 out of Binders.com, the victim’s owner, NAPCO, went to court to invalidate Landmark’s patent, which never should have issued.

A North Carolina court agreed, and killed Landmark’s patent. Landmark faces further punishments in Washington State, where the attorney general has sued the company for violating state consumer protection laws in a case that has been removed to federal court.

Landmark’s patent contains “means-plus-function” claims. These a rentier’s superweapon, in which a patent can lay a claim over an invention without inventing or describing it. These claims are almost entirely used in software patents, something that has been blessed by the Federal Circuit, America’s most authoritative patent court.

A means-plus-function patent lets an “inventor” patent something they don’t know how to do. If these patents applied to pharma, a company could get a patent on “an arrangement of atoms that cure cancer,” without specifying that arrangement of atoms. Anyone who actually did cure cancer would have to pay rent to the patent-holder.

-A Major Defeat For Technofeudalism: We euthanized some rentiers.

My next novel is The Lost Cause, a hopeful novel of the climate emergency. Amazon won't sell the audiobook, so I made my own and I'm pre-selling it on Kickstarter!

#technofeudalism #rentiers #class struggle #capitalists hate capitalism #unity #patent trolls #means-plus-function

[scavengedluxury]

#uk politics #landlordism #rentier economy

[felixcarlucci]

EVIL WEST (2022) dev. Flying Wild Hog

#evil west #jesse rentier #evilwestedit #gamingedit #gamingmen #vgedit #dailyvideogames #dailygaming #.gif #q

[sabrerine911]

Jesse Rentier(Evil West) finally got Evil West the other day and I already replayed it and almost beat it again in NG+ LOVING it. Its a vampire hunter game so its a bit of a no brainer id adore it considering its me(the guy with 3 main vampire hunter OCs ), but nevertheless, its a banger in my opinion, a bit rough at times, but a banger

#jesse rentier #evil west #love the game #vampire hunter #totally not bias cause I have 3 vamp hunter OCs

[thepowerisyouth]

The news is grossly misinforming the public about an inherently flawed financial system.

We need to step back from any very very specific type of analysis and think of this as a centuries old problem

Wealth disparity

The "rentiers" (landlords, anyone who makes money lending out their assets and taking a fee for that lending) is inherently a supplier to the economy

Any person who is being forced to rent out assets from a rich rentier is, by nature, their demander

Demand sets the price first, so long as suppliers are slow to wake up to the reality of lack of demand in their world

Its the most basic economics in the world: wealth disparity must end unless they just kill us all and shoot off to space

When the PRICE to rent someones assets (no, not just the interest rates, but also renting a house or renting an underpaying job with the future promise of a better paying life) is too high that demand is faltering, and people are maxing out credit cards to afford bills-- we know it will all end soon.

#economics #rich rentiers #we all know how france went #no I'm not saying violence its symbolism #people need literary analysis skills

[copper-wasp]

Ok devs really gotta stop exploiting my love for cowboys fr

#evil west #jesse rentier #a new jesse has entered chat