Against Technocracy (Part 2) (2026)

From the July 2026 issue of the Socialist Standard

Link to Part 1.

According to Jason Crawford:

‘The 19th century was dominated by a belief in the power of human reason and its ability to advance science and technology for the betterment of life. But after World War I and the Great Depression, it got harder to believe in the rationality of humanity or in the predictability and controllability of the world’ (The lure of technocracy).

As Crawford notes, in the 1920s, a ‘democratic realist’ school of thought emerged, exemplified by individuals like Walter Lippmann. The masses were viewed as fundamentally irrational and uninformed. Their role in public life should be limited, with fundamental decisions affecting the future of society being entrusted to a tiny, informed elite. Democracy should be redefined as ‘rule for the people but not by the people’.

The elitist assumptions behind such thinking found expression in the 1930s in such forms as Stalinism, the growth of fascism, and the rise of the Technocracy Movement itself.

During the early post war boom, increasing living standards and low unemployment shaped the optimism conveyed in books like Galbraith’s The Affluent Society (1958). In his subsequent work, The New Industrial State (1967), sometimes called a ‘blueprint for technocracy,’ Galbraith argued that a corporate ‘technostructure’ of experts and managers had come to dominate businesses, eclipsing owners and shareholders – an argument anticipated by James Burnham’s The Managerial Revolution (1941).

In this ‘affluent society,’ Galbraith argued, the ‘technostructure’ should shift its focus from just economic growth to broader social goals, including more public investment and reducing inequality. His position overlapped with elements of the pre war Technocracy Movement, particularly its emphasis on scientific, centralised economic management.

However, there were also differences in that the latter opposed the capitalist market and money. The existence of money was deemed incompatible with abundance because of the way the price system worked.

Paradoxically, the growing prosperity that many workers experienced in the early post-war years provided the conditions out of which a broad counterculture movement emerged. This called into question the idea of top-down, expert-led coordination of society, as well as the basic direction in which technological development was heading. The hippies of the 1960s were perhaps the vivid example of this, representing a confluence of tendencies opposed to militarism, environmental destruction in the name of progress and the threat to individual freedom posed by an increasingly oppressive and intrusive technology.

As post war prosperity faded and capitalism entered recession in the 1970s, these conditions that had sustained the counterculture weakened. The downturn exposed the limits of Keynesian demand management, whose reliance on deficit spending failed to overcome the built-in capitalist trade cycle of boom and slump. In response, Keynesianism gave way to a more market oriented policy framework –monetarism – the cornerstone of the emerging neoliberal order.

The Technocracy Movement, having peaked in the 1930s, declined sharply thereafter. Some of its core ideas were simply absorbed into wartime economic planning, making the movement somewhat redundant. Later, in the context of the Cold War, its anti market and central planning orientation fell out of favour because of the perceived resemblance to Soviet state planning. At the same time, the technocratic approach to problem-solving was subjected to mounting criticism from a countercultural (and particularly environmentalist) perspective.

For technocracy as a concept to survive, it had to adapt. One interesting example of this was the Venus Project (TVP).

The Venus Project

TVP´s origins can be traced back to the 1970s, though it officially began life in 1995. Its founders were Jacque Fresco, a structural engineer, industrial designer and futurist author who had been involved in the Technocracy Movement in the 1930s, and Roxanne Meadows, an illustrator, designer and architect. They established a research centre at a place called Venus in Florida (hence the name) and published material promoting their ideas.

From a socialist standpoint, TVP unquestionably represented an advance over the old Technocracy Movement. Whereas the latter proposed a system of rationing in the form of ‘energy certificates,’ TVP advocated, instead, a ‘free access’ model for the distribution of goods and services. This required making the industrial and natural resources of the planet the common heritage of all humanity. All forms of sectional or private ownership (including state property) of the means of production would cease to exist.

Thus, a resource-based economy (RBE) would mean goods and services being freely available to individuals to take for themselves, with cybernetic feedback and automated resource management working to ensure adequate real-time availability.

Another breakthrough was TVP´s rejection of the concept of a single universal unit of accounting (money, labour-time or energy units). The need for this only arises in a system based on quid pro quo exchange, where you have to ensure that what is being exchanged is equivalent. This requires commensurability.

However, commensurability becomes irrelevant in a non-exchange, free-access model. Accounting, according to TVP, would be based on purely physical metrics, dubbed ‘resource-based accounting.’ This resembles the socialist idea of calculation-in-kind, but the emphasis is more on resource flows and biophysical limits (an example of technocracy´s adaptation to environmental criticism).

However, there are also serious flaws in TVP´s outlook. One is its attitude towards democratic decision-making. Fresco´s approach differed from that of the top-down approach of the Technocracy Movement. He was wary of entrusting scientists with excessive power to make decisions affecting others. He preferred a decentralised system based on collaborative design and making extensive use of automated AI-optimised feedback systems.

In fact, the socialist principle of free access endorsed by TVP is precisely what would pre-empt the possibility of concentrated or asymmetrical power emerging in a post-capitalist society. It removes any leverage that any group or individual could exercise over any other, and thus, is the ultimate guarantor of any truly ‘free’ society.

However, to go further and assert, as TVP does on its own website, that ‘it is doubtful that, in the latter part of the twenty-first century, people will play any significant role in decision-making’ is absurd.

As individuals, we will continue to play a decisive role in the choices we make concerning what we consume and what we contribute. This is implicit in the old socialist slogan, ‘from each according to ability to each according to need.’ An algorithm in a computer programme may facilitate (even anticipate) our choices, but they will still be ours to make. Otherwise, we are looking at some anti-humanistic dystopia where the machines have taken over.

Importantly, there will also be joint decisions to be made that, by their very nature, (inevitably) impact multiple individuals who, accordingly, should have a say in making them. Joint decisions will need to be made at different spatial levels – local, regional and even global – examples of which are literally countless.

You cannot depend on a machine, however sophisticated, to make these decisions for you. This is because they involve human values and human interests. The sociological naiveté of the technological determinists, in that respect, is truly remarkable.

Fresco himself argued ‘Democracy is a con game. It’s a word invented to placate people to make them accept a given institution’ (2002). Democracy may well be a ‘con game’ in a plutocratic capitalist society, but that is definitely not because there is too much of it but rather, too little!

Another serious flaw in TVP´s approach is its repudiation of economic classes and class struggle. On its website, it states, ‘In no way does The Venus Project advocate this approach to social change. In contrast, The Venus Project approaches social change as a process of guided evolution and a problem of engineering to produce a working alternative.’

This immediately prompts the question – if TVP advocates for the common ownership of the industrial and natural resources by humanity as the material basis of the moneyless post-capitalist world it desires, how is this to be realised without first removing the possibility for a tiny owning class to monopolise these resources at the expense of the rest of humanity? In short, how can you possibly avoid ‘class’? ‘Classlessness’ is implicit in the very way TVP frames its vision of a post-capitalist society, so achieving it, almost by definition, has to involve confronting this vexed question of class.

Broligarchy

Technology is not neutral; it is fundamentally conditioned by today´s class ownership and control of the means of production. This is becoming increasingly apparent in the light of recent developments.

There has been much talk recently about the rise of ‘techno-fascism,’ a dangerous new force, particularly visible in American politics, representing a ‘broligarchy’ of far-right tech billionaires bent on seizing power and reshaping the body politic to suit their interests and ideological inclinations, technology being the means by which they aspire to realise this elitist vision.

In truth, American politics has always been deeply plutocratic, with only the merest paper-thin claim to being a functioning ‘democracy,’ while being constantly subjected to the enormous power of lobby groups and political donations (bribes). Indeed, some argue that the Founding Fathers themselves framed the Constitution precisely this way to guarantee this outcome – ensuring that the interests of the rich and powerful would be perpetually protected.

However, recent developments, particularly since Donald Trump’s return to office in 2025, suggest a turn for the worse. It has prompted some to ask whether, given the inordinate influence now being exercised by people like Peter Thiel (aided and abetted by the far-right blogger, Curtis Yarvin), Elon Musk and others, this does indeed represent an attempt on the part of these tech billionaires to ‘seize power’ and dismantle what little there is of democracy in America.

Some commentators suggest that these people see themselves as some kind of Übermensch, superior to everyone else. They resent any barrier in their path or any constraint that would rein in their wealth or power. An example is Thiel, a venture capitalist with a current (2025) personal worth of approximately $22 billion:

‘In a 2009 Cato Unbound essay, Thiel wrote: “I no longer believe that freedom and democracy are compatible.” That wasn’t just a provocation, it was a programmatic declaration that aligns him with authoritarians both abroad and at home — culminating in a second Trump administration that daily tests the limits of US constitutional democracy. Climate change, racial justice, and economic inequality all become “distractions” in this framework as they demand collective effort and overlapping interests’ (Christopher Marquis, Jacobin, 6 Oct 2025).

If nothing else, this should serve as a salutary reminder of the risk of relying too much on ‘techno-fixes’ that can sometimes have unintended, and even runaway, negative consequences. Of course, there should always be scope for technological innovation and progress. But innovation should be adapted to, and informed by, the needs and concerns of society in general, and that is simply not possible in a society based on minority class ownership of the means of production.

This is what fundamentally obstructs the implementation of a resource-based economy. Failure to acknowledge this in a bid to appear less ‘partisan’ condemns TVP to promoting an approach that can only depict a future that might be called a ‘nice idea’ but one incapable of being realised.

The Zeitgeist Movement

TVP gave rise to a spin-off called the Zeitgeist Movement (TZM), dubbed the ‘activist arm’ of TVP. It was founded in 2008 by Peter Joseph, a filmmaker, and rapidly expanded to the point of having up to 250 local chapters worldwide, attracting many thousands of supporters. Whereas TVP focused more on blueprints and designing sustainable structures, such as ‘circular cities,’ TZM emphasised grassroots activism and cultural transformation. Underlying tensions arising from these differences in approach resulted in TVP and TZM drifting apart in 2011.

As with TVP, there is much in what TZM says that socialists can endorse, but there are also fundamental, even irreconcilable, differences, particularly over the question of class and the need for democracy.

Nevertheless, any attempt to transcend the rigid barriers a money-based mindset imposes on our thinking is welcome and a step forward. The point is, surely, to take serious steps further in that direction.

Robin Cox

World Socialist Radio - David and Goliath. Competition and “Enshitification” (2026)

Adapted from the April 2026 issue of the Socialist Standard

David and Goliath. Competition and “Enshitification” by The Socialist Party of Great Britain

In modern capitalism, so-called “Davids” (like startups) often win by using strategies backed by huge financial power, such as venture capital. Companies deliberately sell at a loss to undercut competitors, drive them out, and dominate the market—after which they worsen their service or raise prices, a process described as “enshittification.” These outcomes aren’t exceptions but built into capitalism itself: success tends to come not from better products but from access to capital and market control. What looks like an underdog victory is often just another form of concentrated power, meaning consumers and workers ultimately lose out as competition disappears and conditions deteriorate.

Taken from the April 2026 edition of The Socialist Standard.

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World Socialist Radio is the official podcast of The Socialist Party of Great Britain. We have one single aim: the establishment of a society in which all productive resources – land, water, factories, transport, etc. – are taken into common ownership, and in which the sole motive for production is the fulfilment of human needs and wants.

To read more news, views, and analysis please visit: worldsocialism.org/spgb

or, for a free three-issue subscription to The Socialist Standard: spgb.net/podcast

Featuring music: ‘Pushing P (Instrumental)’ by Tiga Maine x Deejay Boe. Source: Free Music Archive, licensed under Creative Commons CC BY 4.0

Pathfinders: David and Goliath (2026)

The Pathfinders Column from the April 2026 issue of the Socialist Standard

Possibly one of the least attractive neologisms of the modern tech era is the word ‘enshittification’. But its coiner, science fiction author and post-scarcity activist Cory Doctorow, doesn’t much care. It’s an ugly word for an ugly thing. And once you are aware of it, you can’t unsee it, because it’s everywhere.

It all starts with a basic and age-old capitalist conundrum. How, as a manufacturer or service provider, can you come to dominate the market and crush all the competition? If you are hopelessly naïve, you might plan to do it by having the best quality product. An easier way, as practised by the likes of Amazon, Uber, Shein, Temu, and many others, is to borrow vast amounts of venture capital (VC) in order to sell at a loss, for long enough to undercut and wipe out the opposition. Then, when you’re the last company standing, the fun can really start.

Your VC-funded product doesn’t need to be perfect, just better and cheaper than the rest. People will flock to it, never suspecting a thing. After all, don’t we live in a world of limitless improvement? That’s how capitalism works, right?

And thus, you conquer the market by making your customers 100 percent happy. You’ve hit peak product. Nothing to change. Nothing more to do. Just sit back and watch the direct debits roll in.

In theory, anyway. Degrowthers and Doughnutters argue that the finite planet can’t afford infinite growth, but what if the economy could achieve a ‘sweet spot’, neither growing nor shrinking, that observes environmental boundaries? All manner of sustainable social benefits could flow from that. It’s a seductive idea. But capitalism is not a static system. It has its own laws of motion. Nobody has the choice to stand still. If you’re not racing ahead, you’re losing ground to the competition. Eat their profits, or they’ll eat yours. If the system isn’t racing ahead, there are no new profits to attract new investments. It either grows, or it withers.

And let’s not forget that you achieved peak product and market dominance at a loss. First you need to claw back those losses, and then your Silicon Valley VC investors will want a big fat return on top. But you’ve already maxed out the market. Where do you go from there? The answer, the only possible answer, is enshittification. Here’s how it works.

You’ve locked in your customers and killed the competition, so now you can price-gouge them. But it doesn’t stop there. Instead of one-off sales, you force subscription models on them so that they have to keep paying forever. If you run a streaming service, open up new income by riddling it with adverts your customers have to pay extra not to see. If it’s a social media platform, collect oceans of personal data to sell to third parties. If you own a phone product, issue updates that make it progressively ‘laggy’ until the customer surrenders and buys a newer model. If you own an electric car company, entice buyers in with fancy software services and then save money by shutting them down. If you own an operating system, design a new version that won’t work on existing computers, forcing everyone to chuck theirs in landfill and buy a new one. Cram it with unremovable resource-draining bloatware and charge extra for a ‘premium’ clean version. Build in intrusive and interfering AI that nobody asked for, with forced logins for simple desktop tools. Add a handy ‘Recall’ function that photographs their desktop every second, including all their passwords, website visits, personal messages, Tinder profiles and online banking details, and stores that information in your company servers where it’s a target for hackers. Ignore the protests. You know what your customers need better than they do. And besides, you’ve fired all your human customer service reps so now the whingers and wailers have to navigate a tortuous odyssey through concentric rings of automated responses and AI chatbots. In short, start with customer satisfaction, end with customer extraction, which Chinese scammers call ‘pig-butchering’. Lock in the suppliers too, and repeat up the chain.

Windows 11 is getting furious blowback for being enshittified. Users are turning in disgust to Linux, which is free, has no viruses and runs on any old machine with a fraction of the resource requirements. Others are resurrecting the antiquated Windows 7, now topping lists on pirate bittorrent sites. Piracy itself, once neutralised by the ease and reach of ad-free Netflix, is now resurging as the streamer market has fractured into a proliferation of platforms, each demanding your money while thrusting ads at you. The subscription model backfires as customers adopt the same cynicism as the corporations: ‘If buying is not owning, then piracy is not stealing’. The double standards are obvious to many: ‘If people downloading a song are criminals, what are the CEOs of AI companies using the entire internet to train their LLMs?’.

Last month the Norwegian Consumer Council released a video of someone cutting holes in socks, and sawing legs off tables to make them wobbly. The video was part of a global campaign to draw attention to the ‘deliberate degradation of a service or product’, urging politicians to take action against enshittification, including enforcing data protection, breaking digital monopolies, and giving consumers ‘more power to control, adapt, repair and alter the products they already own’. The council admits it’s a David and Goliath battle, ‘but… David won in the end, right?’.

Doctorow isn’t claiming he’s discovered some new phenomenon. He’s savvy enough to know how the world works. Enshittification is not just about how profit sabotages tech development, making things worse instead of better. It’s really a metaphor for capitalist production itself, which has generated eye-watering wealth yet imposes poverty on billions. In this version of the bible story, David is the bad guy, the tiny rich elite, while Goliath is the world working class, the sleeping giant that needs to wake up.

Paddy Shannon

World Socialist Radio - The Magic Gadget IRL (2026)

From the Socialism or Your Money Back blog

The Magic Gadget IRL by The Socialist Party of Great Britain

This episode reflects on life before smartphones and social media, describing how children in the 1990s experienced the world directly, without digital pressures such as FOMO (fear of missing out), sexting, cyberbullying, and addictive “attention economy” features designed to maximize engagement. It highlights growing concerns about the mental health impacts of ubiquitous device use among young people and discusses recent policy responses such as Australia’s ban on major social media platforms for under-16s and widespread bans on phone use in schools, though evidence of real benefits remains mixed. It also notes how pervasive smartphone ownership even among very young children blurs safety with surveillance, and that regulatory efforts may simply push kids toward less regulated, potentially worse online spaces.

Taken from the January 2026 edition of The Socialist Standard.

World Socialist Radio is the official podcast of The Socialist Party of Great Britain. We have one single aim: the establishment of a society in which all productive resources – land, water, factories, transport, etc. – are taken into common ownership, and in which the sole motive for production is the fulfilment of human needs and wants.

RSS Feed for The Magic Gadget IRL

To read more news, views, and analysis please visit: worldsocialism.org/spgb

or, for a free three-issue subscription to The Socialist Standard: spgb.net/podcast

Featuring music: ‘Pushing P (Instrumental)’ by Tiga Maine x Deejay Boe. Source: Free Music Archive, licensed under Creative Commons CC BY 4.0

Pathfinders: The magic gadget IRL (2026)

The Pathfinders Column from the January 2026 issue of the Socialist Standard

30 years ago in 1996, some were learning to use email, home computers and the embryonic worldwide web, but most families still shopped in the high street, looked up numbers in the phone book and watched ‘terrestrial’ telly together in the sitting room. Kids who wanted alternative amusement ended up hanging out with mates on park benches or outside supermarkets in the winter cold. Gay teens had no local community of peers to turn to. Neither did those with hobbies, or growing-pain problems. For them, the world in real life (IRL) was limited and limiting.

But, IRL, there was also no FOMO, no sexting, no doxing, no doomscrolling, no cyberstalking or cyberbullying, no revenge porn or ‘nudifying’ of classmates, and no pro-suicide chatrooms. Smartphones and social media (SM) have revolutionised the childhood experience, and not necessarily in a good way, as BBC Radio 4 reported (7 December): ‘Alongside the widespread adoption of smartphones has come a tidal wave of adolescent anxiety, depression, loneliness, and a spike in suicides’. Now Australia has banned access to ten of the biggest SM sites for under-16s. Communications Minister Annika Wells explains: ‘Teenage addiction was not a bug, it was a design feature, and on 10 December there are going to be withdrawal symptoms. […] With one law, we can protect Generation Alpha from being sucked into purgatory by predatory algorithms described by the men who created the feature as “behavioural cocaine”‘.

Many countries now ban phone use in schools. Australia started doing this back in 2020, with support from teachers and parents alike. All claimed a degree of success. However the bans were not well coordinated, and subjective reports of greater engagement and improved mental health may be the placebo effect at work. A Birmingham University study looking at 1,227 students in 30 secondary schools found no evidence of changes in grades, amount of sleep, class behaviour, or even time spent on phones.

Australia’s latest action, with popular support, could trigger a global cascade of similar legislation. SM firms already face a landmark US trial this month. China, with basilisk totalitarian vigilance, uses spyware to restrict SM use and game playing by its youth, with a 40-minute daily limit for SM and 3 hours gaming per week. The UK 2023 Online Safety Act (OSA) instead demands that SM companies take ‘reasonable steps’ to protect children. Good luck with that. SM lawyers will have a field day.

It’s not just teens. Ofcom estimates that 1 in 4 UK children aged between 5 and 7 have a smartphone. Parents say they buy these phones for safety reasons to do with the child being contactable and trackable. But satellite-tracking a five-year-old is not the way to keep them safe. In truth, overworked adults managing multiple jobs and kids may well find the magic gadget of infinite games and videos hard to resist, given that it shuts their child up like nothing else and besides, if all the other kids have one, their child runs the risk of being victimised for looking poor.

Radio 4 interviewees speculate that the Australian ban could be a useful research opportunity. That’s if it works, but it probably won’t. One 13-year-old got round the ban in less than five minutes. And if one kid can do it, they all will, because of peer pressure, and because the industry wants to lock them in, not out, and because it will regard regulatory fines as the paltry cost of doing business. The new OSA age-verification rules for porn sites are also probably doomed. There has been a huge increase in downloads of VPN apps which hide the user’s IP address. With a conservatively estimated 240,000 online porn sites, Ofcom regulators face an uphill struggle to ensure compliance. So far they’ve taken action against just 70, leading insiders to argue that the new rules are effectively unenforceable.

And then there is the law of unintended consequences which produced this generational mental health crisis in the first place. Regulating the top SM sites might end up funnelling users to even worse places, like regulation-exempt gaming chatrooms, notorious as extremist rabbit-holes.

But, one might argue, why pussyfoot around imploring SM firms to take responsibility, why not just ban smartphones for kids altogether? The UK’s Education Select Committee last year recommended exactly that. But capitalist governments have bigger things to worry about, and unlike China, are generally leery of voter blowback for ‘nanny-statism’.

Even so, some young self-styled neo-Luddites are opting to downsize to ‘dumbphones’ that have no social media, with a view to clawing back their free time. As one manufacturer puts it, SM entrepreneurs are obsessed with monopolising their users’ engagement time, whereas users should be saying ‘What about me? What about my time?’ He continues: ‘The problem is not the device, it’s the business model: the attention economy. Every free app, every social media platform, every browser, is trying to maximize engagement so they can make money collecting data and categorizing people into different groups so they can sell it to advertisers’.

Unfortunately for neo-Luddites, dumbphones offer a near-zero margin, so tech firms ‘have little incentive to cater to dumbphone users, whose revenue potential is relatively miniscule – that is, if they can even make the economics of manufacturing the devices work at all’.

It’s a tragic indictment of capitalism that social media started by connecting people, and is now arguably complicit in global disinformation and child abuse. Now, encouraged by Trump, SM firms are even ditching their fact-checkers. Perhaps Gen Z parents, having seen the damage for themselves, will refuse to allow their Gen Alpha kids to go through it. The bigger long-term tragedy for Gen Alpha, whether they’re on social media or not, is that their future IRL will be one of relentless capitalist exploitation and wage slavery. If we really want to stop not just child abuse, but human abuse, abolishing capitalism IRL is the only way.

Paddy Shannon

(Facebook review, page 20)

Careless Society (2026)

Book Review from the January 2026 issue of the Socialist Standard

Careless People: Power, Greed, Madness. A story of where I used to work. By Sarah Wynn-Williams (2025, 4th Estate)

Remember the Metaverse? Funny that you don’t hear much about it these days. This was going to be the Next Big Thing, the fully immersive virtual reality (VR) heaven where we all spent every waking moment, in our aspirational avatar forms, shopping, meeting people, swanning around in flying cars, and never going outside to see the real sky, or indeed talk to a real person. Unappealing as all this might sound to jaded old cynics and doubters, Mark Zuckerberg was so excited by his own visionary virtual universe that he changed his company name from Facebook to Meta, hired thousands of engineers and invested $36bn in development. As might be expected, tech firms chucked in plenty of money too, just in case it ever took off, and even manufacturers and high-street businesses like HSBC, Skechers, Bosch, Next and Heineken. Seoul City Council even went so far as to build a VR community space where people could ‘take advantage of public services 24/7 all year round and even visit the virtual mayor’s office and library’, as well as availing themselves of ‘various administrative services such as economy, education, and tax affairs’.

It’s hard to imagine a duller advertisement for the Metaverse than, ‘Hey, you can use it to pay your taxes!’ For once, the doubters were on the money. It turned out people didn’t want to spend their lives indoors wearing silly Oculus headsets. Sales flopped, followed by investments, until Zuckerberg quietly dropped the whole project.

One indication of how preposterous the whole thing was, and also why apparently nobody told Zuck this at the time, is the fact that in her tell-all exposé of her five years as a top Facebook executive, Sarah Wynn-Williams doesn’t bother to mention the Metaverse once. But she does have plenty to say about Facebook’s dirty off-book activities. One of these, which Facebook publicly denied to the consternation of their own marketing teams who were using it as a selling point, was to target vulnerable teenagers who had just deleted a selfie by thrusting beauty ads at them, on the assumption that they must hate the way they look. Though often funny, the darkest part of the book is where Zuck finally realises how the Trump campaign has used Facebook’s comprehensive data tools in an ingenious and targeted misinformation offensive in order to win the 2016 election. What’s dark about this is that Zuck and the other FB execs are not horrified, they are impressed. Zuck allegedly even begins to form his own plans to use the same techniques to run for president himself. After all, he’s so rich he wouldn’t even need to fund-raise.

The take-home gist is that, whereas FB starts off as a maladroit mix of idealists and nerdy technicians with no concept of the political reverberations they are about to unleash on the world, the more wealth and power they acquire, the less they give a damn about anyone or anything, a point rammed home by their casual indifference to the FB-driven massacres in Myanmar. Nobody comes out of this book looking good, including in some ways the author. The corruption, hypocrisy, sexual harassment and megalomania are laid bare for all to see. Some of these people would probably have been jailed, except that capitalism doesn’t jail people this stupendously rich. Zuckerberg, increasingly isolated in a protective shell of fawning sycophants, comes across as having had any trace of humanity surgically removed. He is never told that any of his ideas (like the Metaverse?) are just dumb and won’t work, because FB ‘ices out’ and then fires anyone who dares. He’s actually tried to have this book banned in the USA, a truly stupid move because of the ‘Streisand effect’, where attempts to suppress tend to backfire in spectacular fashion. To no one’s surprise, the free-speech champion’s attempt at censorship has sent the book to the top of the bestseller list.

But in truth, apart from showing how dysfunctional the business is, there are no real revelations that weren’t already out there. Yes, Zuck lied to Congress. Yes, FB are manipulative bastards out to make money out of your data. No, they have no scruples whatsoever. We knew or could guess all that. It’s a fun read, but socialists won’t be surprised by any of it. It’s just the reality of capitalist business with the veneer removed.

Paddy Shannon

Letter: Technofeudalism (2025)

Letter to the Editors from the December 2025 issue of the Socialist Standard

Technofeudalism

Dear Editors

In the November Socialist Standard there is a critique of Varoufakis’s work Technofeudalism. The author of this article indicates that it is a divergent of classical Marxism, emphasising the statement specifically ‘Capitalism is Dead. Welcome to Technofeudalism’. (note the inverted commas). The SP is known for its theoretical adherence to the scientific Marxist interpretation of Capital. On reading its magazine, for a while now, I recognise that it is unshakeable in its desire for pure socialism, which in this period seems distant. Marxism is scientific in its analysis of periods, it therefore assesses that which pervades, whilst recognising the past.

The colossal rise of the IT industry closely followed by the AI industry has not changed the theory of Constant, Variable and Surplus Value (CVS). It has however massively warped it, to the advantage of the owner, even further and it’s in cyber space. Compare a labour-intensive manufacturer, where the preceding CVS applies to the vast empires of the cloud and its opaque streams of surplus value.

This is not of course a cloud! It is a vast warehouse of electronic equipment, often set in remote areas with a skeleton of technicians and security (proletarians). This enormous structure consumes vast amounts of power and water for cooling (Constant Value). It has been built so there is now the CVS to apply to that, which, if the workforce is unionised, may give a reasonable return to the V element.

What Varoufakis is emphasising throughout this work is the careful disguise these moguls of the internet and social media are deploying to use billions of unpaid labour, pressing keyboards, to further their Surplus and their empires. It is most significant that recently Trump met the foremost IT moguls, and it would seem no traditional manufacturers.

All Varoufakis books are worth reading and it should be remembered that as a socialist minister the courageous struggle he had with the EU over a more compassionate deal for Greece, which was lost, when the EU showed its true colours, and the masses of Greece lost with it. As socialists we need to be aware of who our comrades are and who are not.

Philip Chambers

Reply:

We don’t agree that Varoufakis was a “socialist minister” but at least he had the political courage to resign rather than impose austerity on the working class as the state of Greek capitalism required. Not many leftist ministers do that when faced with the choice of whether or not to bow to capitalism’s will.

Editors.

Big Tech and the state (2025)

From the January 2025 issue of the Socialist Standard

What is Big Tech? How did it get so big? Has Big Tech got too big for the rest of the capitalist class?

Big Tech is a loose definition to describe the largest digital technology-based enterprises – it always includes Google (Alphabet), Facebook (Meta), Amazon and Apple. Microsoft is usually included now, sometimes Tesla, the electric car manufacturer, and Nvidia, the semiconductor manufacturer, and some perspectives will include the Asian firms: Baidu, Alibaba, Tencent, and Xiaomi – who by their nature and size fulfil a similar role.

As socialists we understand the integral role of technology in capitalism. In the Socialist Standard No 9 in 1905 we said:

‘The capitalist-class, the most revolutionary class that has ever oppressed human society, cannot increase its riches but by incessantly revolutionising the means of production by the never-ending introduction of new applications of the mechanical, physical, and chemical sciences to the industrial tool. Its thirst for inventions is so insatiable that it has created factories of inventions.’

Whilst most employees in Big Tech are supporting existing products rather than being inventors – factories of inventions seems like a suitable description of commercial research departments or startup companies.

And of course many years earlier Marx and Engels in the Communist Manifesto wrote:

‘The bourgeoisie cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society.’

Marx also wrote at length about Machinery and Modern Industry in Capital Volume 1.

Whilst many analysts of the left and right sides of capitalism have defined capitalism in our current era variously as platform capitalism, the app economy, surveillance capitalism, and techno-feudalism. The fundamentals of capitalism in terms of social relations are the same and the driving forces are the same, but they are right to recognise that capitalist enterprises have organised themselves differently from other eras.

Technology in perspective

We are not living in a world where most of society is working in information technology, but many use it as part of their jobs.

The Office for National Statistics report UK Digital Economic Research: 2020 showed that using the OECD’s ‘narrow’ definition of the digital economy, digital products accounted for 5 percent of Gross Value Added (GVA) in 2020. Using the wider OECD definition, products significantly affected by digitisation accounted for up to 20.7 percent in 2020, down from a revised figure of 21.2 percent in 2019. This report showed that research, health, finance, retail, manufacturing and real estate industries are all larger than the digital products sector in terms of GVA.

You can’t eat technology for dinner, it doesn’t keep the rain off and you can’t ride it into town, but technology helps produce food, houses and transportation – more and more efficiently with every iteration. The massive amounts of quantitative analysis, the number crunching, and instant communication, has enabled production at scales and efficiencies not seen before.

Productivity figures from sweatshops in Cambodia, for instance, can be analysed in air-conditioned offices in California and decisions made and responses delivered in a matter of seconds.

Some of the Big Tech enterprises are in direct competition: Google and Facebook (which includes Instagram and Whatsapp) are selling ads, giving opportunities to platforms that want to gather information about you to puts ads right in your face. Google and Facebook are said to share a duopoly in online advertising.

Amazon is mainly known for its online retail and delivery business, but most of its operating profit is in ‘the cloud’ (tinyurl.com/yc2j3s4h) – that is data centres where it rents out disk space and computing power. Second in the data-centre business is Microsoft (MS), which is primarily about business software and operating systems (OS), and Google is also pushing into the data centre market.

Apple is primarily in consumer hardware including iPhones, iPads, laptops and desktop computers. In the developed world the iPhone is the dominant mobile phone technology. In the less developed world, Google’s Android OS dominates but the hardware comes from different suppliers.

How did big tech get so big?

Analysts have identified four phenomena that allowed Big Tech to emerge: deregulation, financialisation, globalisation and technological convergence.

Often cited as the key piece of deregulation that paved the way for social media was Section 230 of the 1996 US Telecommunications Act which stated:

‘No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider’.

Social media sites, it can be argued, are fulfilling the same role as paper publishers who are responsible for what they publish, but for social media after Section 230 it was considered that anything posted on them was ‘user-generated content’ – and users were responsible, not publishers.

Software rarely has the regulatory safeguards that physical products have – think of trying to sell a car with no brakes or a kettle that catches on fire. Fujitsu has paid private compensation for its part in the UK Post Office scandal and, unusually, is also facing criminal proceedings (tinyurl.com/u2xz9zx7). In July this year 8.5 million MS Windows servers were made inoperable due to a faulty software update from an anti-virus company. Delta Airlines, whose operations were massively disrupted, are suing the anti-virus company claiming the outage cost them $500 million, with 1.8 million passengers affected (tinyurl.com/4kaj3s2x). Only those who can afford to sue them will get any money back.

Perhaps ‘lack of regulation’ is a better term – it’s largely a case of legislation not being able to keep up with the rapid innovation of digital services.

The expectation of profits means big tech firms don’t have to look far for sources of investment, which means they can expand in-house, or alternatively acquire smaller firms to increase market share either by embracing or extinguishing a rival technology. A current example is OpenAI, owners of ChatGPT, with an estimated $2 billion in revenue in 2024, though yet to turn a profit due to the huge cost of training AI models (tinyurl.com/2cub8my8). Twitter, for example, made profits in 2018 and 2019, the first since its inception in 2012. Since Elon Musk took over and renamed it, revenue has fallen sharply and ‘X’ has massive debts (tinyurl.com/rbtsh74f).

Globalisation allowed Big Tech companies to minimise their tax burden and move production to places with lower wages. They often have European headquarters in low-tax Ireland. Many consumers are familiar with Microsoft’s Indian Tech Support call centre, while the Foxconn City Factory complex in Shenzhen, China, makes parts for Apple products, and a global army of content moderators work for Facebook and ChatGPT in less developed parts of the world.

Technical convergence basically means devices doing more and more and being linked over the internet. Whilst a telephone handset makes calls, a camera takes pictures, a torch shines a light and a computer runs apps, in a smartphone these roles are combined into one device. These hardware functions rely on software to work, providing apps through app stores, and gateways to other services such as shops, entertainment and games. Both Google Play Store and Apple App Store charge a fee to stock software in their stores, and up to 30 percent commission on app sales and in-app purchases. This is a part of what is known as platformisation (tinyurl.com/5ybrxmdv).

Too big?

Any casual follower of the industry will have noticed that the tide seems to be turning. The section on the Wall St Journal website providing advice for potential investors warns that:

‘Governments around the world are evaluating the impacts that massive tech platforms and social networks have on businesses and consumers. In the coming months, regulations in the European Union and the United States will likely take effect, pushing tech companies to prioritise data protection, harm reduction, the ethical use of AI, and commitment to sustainability goals.’

Over the years there have been a number of skirmishes but the 2023 EU Digital Markets Act, and the EU Product Liability Directive currently being revised to include digital technology, are more significant. A US federal judge ruled in August that Google had violated US antitrust (anti-monopoly) law by maintaining an internet search monopoly. In October the US Department of Justice said in a petition to the court that it may recommend dismantling Google’s core businesses, writing that:

‘That would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants.’

The Digital Markets Act (DMA) is an EU regulation that aims to make the digital economy ‘fairer’ and more contestable. It became applicable in May 2023. The DMA aims to ensure a higher degree of competition in European digital markets by preventing large companies from abusing their market power and by allowing new players to enter the market.

Twenty-two services across six companies – Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft – were identified as ‘core platform services’ by the EU in September 2023. The companies are known as ‘gatekeepers’ due to the ‘durable market position in some digital sectors’ and because they also meet certain criteria related to the number of users, their revenue, or size.

However, there have been accusations from US-based commentators that the rules were carefully constructed so as not to affect European companies and that it is purely about protectionism. As one example, Spotify, a Swedish company which trades on the New York Stock Exchange via a company in Luxembourg, could well have been on the list.

Almost 40 years after it came into force, the European Union is undertaking a major revision of the Product Liability Directive (Directive 85/374/EEC). The aim of this reform is to adapt ‘the standards to the conditions and needs of the digital single market’. To this end, software will in future be considered as a product.

The UK government prior to the general election this year also passed the Digital Markets, Competition, and Consumers Act (DMCC), a similar piece of legislation which surprisingly is the only one to include some protection for consumers, specifically for mis-selling and secondary ticket-pricing, such as the recent fiasco with the tickets for Oasis concerts.

We know there is a to and fro that goes on between lawmakers and Big Tech whilst the laws are being drafted, as Big Tech tries to make sure the legislation, if it has to exist at all, isn’t too damaging.

What’s in store for Big Tech in the future? Will we see monopolies destroyed, and how much will that affect the working class as a whole? Of particular interest to us is, how will it affect us as socialists?

Does it matter?

So in the current era of capitalism we have seen the immensely innovative system undergo great changes in the forces of production, and these changes are ongoing. Perhaps monopolies in certain markets will be broken, or perhaps it is a tendency for states always to be reactive and too slow.

As socialists the monopoly we are mainly concerned with is the monopoly that the capitalist class has over the means of producing wealth, and creating a socialist society where no such monopoly is possible, as everything in and on the world will be owned in common and managed democratically.

Here and now our job as socialists is to make socialists, and digital technology is a major method of promoting socialist ideas – so with changes in the platforms and networks we use there could be profound effects for spreading socialism. There might be profound effects if and when the socialist movement gets big enough to become a threat to capitalism, and when we do win there might be big consequences in having forces of production so complex and powerful at our disposal. Then the factories of invention will go from merely servicing the capitalist system to becoming communities for finding creative solutions to fulfil human needs.

PDH