passerby
passerby
Re-posting this essay from my Substack. Let's discuss.
Public faith in U.S. institutions is at an all-time low. The American populace no longer trusts large technology companies, corporations, and government arms like the police and public schools. Good—maybe these institutions have outlived our trust.
On the tech side, it's interesting that millions of people have flocked to alternative platforms like Substack (20M monthly subscribers), Mastodon (1.8M monthly active users), Rumble (60M a month), Discord servers (154M monthly), Medium (100M monthly users), and even OnlyFans (238M users and 3M creators). Notice a throughline: These subscription-driven platforms offer more flexibility in monetization and user-generated content, challenging incumbents like WordPress/Mailchimp, X, YouTube, >reddit, and adult websites.
Small business is one of the few institutions consistently retaining public confidence, partly because most Americans across party lines believe tech giants like Google have too much power in the market, leaving competitors at a disadvantage. Indeed, our Fortune 500-consolidated economy doesn't respect the true free market. Industry leaders often buy out competitors long before they become a legitimate threat, effectively paying the little guy to shut up.
Silicon Valley was once rooted in originality, scrappiness, and flexibility—the hallmarks of innovation. Today, the movement has been bastardized by financialization and an investor-driven desire to maintain dominance through portfolios/ecosystems.
For example, I'd argue Apple hasn't independently invented anything new since the early-2000s. This year's Vision Pro launch might be an exception, but it required several under-the-radar acquisitions to pull off. Apple is one of many tech giants whose business model depends on getting consumers hooked on its signature household staples, enriching shareholders through a proven market strategy. The company spends more money on stock buybacks than research and development: From 2013 to Q1 2024, it totaled $651 billion in repurchases but just $175 billion in R&D.
Big Tech institutions deprioritize R&D and absorb competitors because they're desperate to keep their mediocre products alive. If only we had an alternative to high-power gaming PCs running on the Windows operating system. Windows is extremely unreliable, glitchy, and full of invasive in-app advertising. No, Microsoft, I'm never interested in what you're hocking.
Meanwhile, the law is slowly reacting to these trends, albeit too late to rescue the pre-corrupted ideals of the free market. The Department of Justice has made some big antitrust moves lately, including two lawsuits alleging that Google illegally monopolized the ad tech market and Apple monopolized the smartphone market. But can we trust the justice system to apply the law fairly and effectively? Companies always have the resources to defend themselves, no matter the case's merits. The world's best legal teams know which loopholes to jump through.
Companies have already adapted their short-term strategies to avoid scrutiny over megadeals. Meta, Salesforce, Alphabet, Apple, and Amazon only made four acquisitions last year, compared to 18 in 2022. Market analysts project that 2024 will bring smaller M&A transactions. As S&P Global puts it, "big is out; small is in."
"Big business" has always been an Alpha-eat-Beta world. As I covered in my consumer choice post, market-leading companies don't care about the consumer experience. Competition is ruthless at the top, as execs take proverbial tokes off the infinite growth model. Investors depend on that irresistible high by proxy.
An institutional power transfer is already underway in many aspects of modern life, including how we consume and understand news and events. Narratives are no longer solely filtered by cable news outlets or newspapers, which historically required editorial control for financial, legal, and even personal reasons.
Thanks to the internet, audiences now see the raw, unfiltered evidence of what's happening throughout all institutional ladders. Firsthand footage of world events can be accessed secondhand by anyone with a smartphone and an internet connection. That's over 90% of the U.S. population. Since social media is designed to spread opinions, there's always someone available to scrutinize illusions or propaganda in the 24/7 news cycle.
Political movements form quickly with widespread social media access. For example: In last month's Super Tuesday elections, hundreds of thousands of people cast "uncommitted" protest votes against the U.S.-backed war in Gaza and the growing tally of 30,000+ civilian casualties. Two days later, ceasefire protests delayed President Biden's arrival to the State of the Union by 30 minutes. The uncommitted campaign is now spreading to other states ahead of November's election. Will it actually make a difference though?
Foreign wars aside, fewer than 2 in 10 Americans trust the federal government to do what is right. Reforms are insufficient for the average person. I wonder if our leaders will ever win back the public's faith. Rather than reversing their poor track records, they manipulate us into excusing them while demanding unconditional support through our money (Big Tech), attention (centralized media), and confidence (politics).
Civil War isn't what you think in 2024. It's a quiet but raw battle for control, aligning the institutions against the consumers/civilians. It's a prolonged trust-fall, in which one party is left hanging for decades while the other grows self-interested and forgets why they agreed to demonstrate trust in the first place.
Here is an opportunity for ordinary Americans to create our own institutions. Are the old authorities worthy of our trust?
Public faith in U.S. institutions is at an all-time low. The American populace no longer trusts large technology companies, corporations, and government arms like the police and public schools. Good—maybe these institutions have outlived our trust.
On the tech side, it's interesting that millions of people have flocked to alternative platforms like Substack (20M monthly subscribers), Mastodon (1.8M monthly active users), Rumble (60M a month), Discord servers (154M monthly), Medium (100M monthly users), and even OnlyFans (238M users and 3M creators). Notice a throughline: These subscription-driven platforms offer more flexibility in monetization and user-generated content, challenging incumbents like WordPress/Mailchimp, X, YouTube, >reddit, and adult websites.
Small business is one of the few institutions consistently retaining public confidence, partly because most Americans across party lines believe tech giants like Google have too much power in the market, leaving competitors at a disadvantage. Indeed, our Fortune 500-consolidated economy doesn't respect the true free market. Industry leaders often buy out competitors long before they become a legitimate threat, effectively paying the little guy to shut up.
Silicon Valley was once rooted in originality, scrappiness, and flexibility—the hallmarks of innovation. Today, the movement has been bastardized by financialization and an investor-driven desire to maintain dominance through portfolios/ecosystems.
For example, I'd argue Apple hasn't independently invented anything new since the early-2000s. This year's Vision Pro launch might be an exception, but it required several under-the-radar acquisitions to pull off. Apple is one of many tech giants whose business model depends on getting consumers hooked on its signature household staples, enriching shareholders through a proven market strategy. The company spends more money on stock buybacks than research and development: From 2013 to Q1 2024, it totaled $651 billion in repurchases but just $175 billion in R&D.
Big Tech institutions deprioritize R&D and absorb competitors because they're desperate to keep their mediocre products alive. If only we had an alternative to high-power gaming PCs running on the Windows operating system. Windows is extremely unreliable, glitchy, and full of invasive in-app advertising. No, Microsoft, I'm never interested in what you're hocking.
Meanwhile, the law is slowly reacting to these trends, albeit too late to rescue the pre-corrupted ideals of the free market. The Department of Justice has made some big antitrust moves lately, including two lawsuits alleging that Google illegally monopolized the ad tech market and Apple monopolized the smartphone market. But can we trust the justice system to apply the law fairly and effectively? Companies always have the resources to defend themselves, no matter the case's merits. The world's best legal teams know which loopholes to jump through.
Companies have already adapted their short-term strategies to avoid scrutiny over megadeals. Meta, Salesforce, Alphabet, Apple, and Amazon only made four acquisitions last year, compared to 18 in 2022. Market analysts project that 2024 will bring smaller M&A transactions. As S&P Global puts it, "big is out; small is in."
"Big business" has always been an Alpha-eat-Beta world. As I covered in my consumer choice post, market-leading companies don't care about the consumer experience. Competition is ruthless at the top, as execs take proverbial tokes off the infinite growth model. Investors depend on that irresistible high by proxy.
An institutional power transfer is already underway in many aspects of modern life, including how we consume and understand news and events. Narratives are no longer solely filtered by cable news outlets or newspapers, which historically required editorial control for financial, legal, and even personal reasons.
Thanks to the internet, audiences now see the raw, unfiltered evidence of what's happening throughout all institutional ladders. Firsthand footage of world events can be accessed secondhand by anyone with a smartphone and an internet connection. That's over 90% of the U.S. population. Since social media is designed to spread opinions, there's always someone available to scrutinize illusions or propaganda in the 24/7 news cycle.
Political movements form quickly with widespread social media access. For example: In last month's Super Tuesday elections, hundreds of thousands of people cast "uncommitted" protest votes against the U.S.-backed war in Gaza and the growing tally of 30,000+ civilian casualties. Two days later, ceasefire protests delayed President Biden's arrival to the State of the Union by 30 minutes. The uncommitted campaign is now spreading to other states ahead of November's election. Will it actually make a difference though?
Foreign wars aside, fewer than 2 in 10 Americans trust the federal government to do what is right. Reforms are insufficient for the average person. I wonder if our leaders will ever win back the public's faith. Rather than reversing their poor track records, they manipulate us into excusing them while demanding unconditional support through our money (Big Tech), attention (centralized media), and confidence (politics).
Civil War isn't what you think in 2024. It's a quiet but raw battle for control, aligning the institutions against the consumers/civilians. It's a prolonged trust-fall, in which one party is left hanging for decades while the other grows self-interested and forgets why they agreed to demonstrate trust in the first place.
Here is an opportunity for ordinary Americans to create our own institutions. Are the old authorities worthy of our trust?