Very interesting take.
In parallel with the rise of the technopoly over the past couple of decades the US’s global dominance has been declining. The 2007 crash effectively legalising financial fraud – you only get jail time if you defraud the rich – lead to both a decline in the rule of law in the US and an excessively financialised economy. When stock markets and the like are overrepresented they suck the air out of the rest of the economy and make it less competitive.
If you have two economies of equal size and productivity, one has a massive financial sector and billionaires while the other does not, the financialised economy will have less left over to invest in research, education, infrastructure, and healthcare. Over time, it will inevitably fall behind the country with a smaller financial sector because it’s the other things that drive the economy and productivity, not stock market growth.
The US has coasted on the fact that it’s economy is so big that it could afford all the finance and billionaire parasites sucking its blood. At least for a while.
[…]
Instead of delivering services and software that unlocks value for their client industries, the software industry has spent the past decade or so trying to control their customers and their client industries. Why make software for hotels when you can control the hotel industry? Why make software for taxis when you can replace the entire industry with software? Instead of trying to entice customers to upgrade their software by making new versions more valuable to them, push them to a subscription service where you control what they get, when they get it, and what value they’re allowed to unlock from their own businesses. Why sell Word when you can sell an Office 365 Cloud Subscription?
The endpoint of this is to replace every industry that remains with generative models. Cut back on actual development of Photoshop, for example, lower development costs and programmer overhead even as you replace the industries that are your customers with automatic image and video generators.
But writing out a detailed analysis of the how, what, why, and where of the software industry’s grasp for control doesn’t really make that much sense when we don’t know how any of it’s going to pan out.
The software industry is built on the foundation provided by an unchallenged US global hegemony. Without it, without the economic force provided by the US dollar, the US having access to all of our data around the globe and their control over payment systems and networking would be less tenable. Today’s software industry would not exist. Without the weight of the US political empire behind it – if Airbnb or Uber had been local startups – much fewer countries in the world would have loosened their regulations and consumer protections to accommodate them to the point where they prospered as they did.
Even as the software industry achieves its ne plus ultra – the unprecedented achievement of controlling all language, media, and office work in the west by turning “AI” into the universal intermediary – the foundation they built on is crumbling.