Placeholder Image

Subtitles section Play video

  • 80% of corporate wealth is now in just  

  • 10% of firmsand those are the firms that have  the most personal data and intellectual property.

  • So, you know, mostly big tech  firms, Google, Amazon, Facebook

  • Google is actually an interesting  narrative arc because Google really  

  • invented the business model  of surveillance capitalism.

  • And that is the business model of essentially  tracking everything you are doing,  

  • saying online and increasingly offline, and  using it to build a profile of you and then  

  • selling that information to advertisers who  want to target you down to a microscopic level.

  • So, think about that now as it moves into  healthcare, into finance, into insurance.

  • Here is a real-world example that is happening

  • Insurance companies are now putting sensors  

  • in some countries in some markets where  this is legalsensors in peoples' cars  

  • or homesso let's say I'm now driving with my  child in back and I don't stop quickly enough  

  • at a stop light. That will be tallied –  I might get a black mark on my insurance.

  • First of all that's I think incredibly creepy but  it also has the effect of completely changing the  

  • business model from a business model of  the collective, in which it's about risk  

  • sharing and risk poolingto separating all  of us - suddenly we are all individual risks,  

  • and perhaps you and I can be insured but perhaps  there is a pool uninsurable people over here.

  • It creates this real  

  • tier system within society where there are  people who can be completely disenfranchised.

  • First Wall St and then Silicon Valley really  have more power than any other entity.

  • I see so many similarities between  the way that Wall Street had both  

  • monetary capture of politics but also cognitive  capture of politics before the financial crisis  

  • and to a certain extent after and the  way Big Tech has captured the debate now.

  • With the banks, there is at least some requirement  for how they kind of mark things on the books.

  • With tech firms - you don't have that  – so it's really a very opaque system

  • We are not doing transactions in dollars  or sterling, we're doing transactions  

  • in dataand that is a barter transactionIt's a very opaque transaction.

  • So if you think about what Adam Smith would have  said you needed for a properly functioning market.

  • You need equal access to information, you need  a transparent transactionso both parties  

  • need to understand what's being exchanged  – and you need a shared moral framework.

  • Now you could argue that in the era of big  datanone of those things are in effect.

  • Think about the most opaque transaction  in the financial crisisyou know,  

  • the derivativesweapons of mass financial  destruction - and the kinds of transactions  

  • that we are doing on an hourly basis  now are just as opaque if not more so.

  • We don't really understand what is  happening in the algorithmic black box.

  • One of the reasons that the big tech  companies have been so reluctant  

  • to police political advertising is they don't  want to open up that algorithmic black box.

  • One of the possibly elegant answers to  some of the problems we've been talking  

  • about - from privacy, to competitivenessto innovationwould be to create digital  

  • data banks where companies of all sizes, in  all industries, could have access to data,  

  • but only in a way that citizens and  democratically elected governments would decide.

  • Suffice to say, we need to  move from old capitalist model  

  • to a kind of a new more equal  sharing of this wealth pie.

80% of corporate wealth is now in just  

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 business model opaque big tech transaction tech model

How Big Tech Betrayed Us | Rana Foroohar

  • 8 1
    Summer posted on 2021/01/26
Video vocabulary