How Big Tech stole $35 Trillion from the public | Yanis Varoufakis

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Summary

Yanis Varoufakis discusses how Big Tech companies, unlike traditional capitalist companies, pay a minuscule percentage of their revenue to workers. He explains how central banks injected trillions into the financial sector after 2008, which was then used by corporations for share buybacks instead of genuine investment. This led to the rise of 'cloud capital' and a new form of 'technofeudalism' where public funds indirectly fueled Big Tech's growth, leading to wealth extraction and economic stagnation.

Highlights

Big Tech's Minimal Worker Compensation
00:00:00

Traditional capitalist companies like British Aerospace or Ford allocate approximately 85% of their revenue to salaries. In stark contrast, Big Tech companies such as Google and Facebook pay only 1% of their revenue to their workers, indicating a significant shift in wealth distribution.

The 2008 Financial Crisis and Central Bank Bailouts
00:00:31

Following the 2008 financial crisis, central banks, including Wall Street, the City of London, Paris, and Frankfurt banks, printed an astounding $35 trillion ($35,000 billion). This money was provided to financiers at negative interest rates, meaning central banks paid them to take the money. This was described as a 'crime against humanity' due to the implications of these bailouts.

Corporate Misuse of Bailout Funds
00:01:19

Instead of investing these free funds in productive ventures, CEOs of corporations used the money to buy back their own shares. This practice inflates the share price, directly increasing CEO bonuses, but it does not create new jobs or stimulate economic growth. The only significant investment in machinery came from owners of 'cloud capital' (Big Tech).

The Rise of 'Cloud Capital' and Technofeudalism
00:01:53

Public funds indirectly financed the creation of 'cloud capital,' which has enclosed us in 'cloud fiefs.' In these digital spaces, people involuntarily provide free labor, which is characterized as the worst kind of slavery. This system allows Big Tech to siphon off 35% of global GDP, move this wealth to offshore accounts like the Cayman Islands, and remove it from the circular flow of income.

Economic Consequences: Job Losses and Inflation
00:02:28

The siphoning of wealth leads to job losses because aggregate demand falls, discouraging terrestrial capitalists from investing. Central banks, like the Bank of England, are forced to print more money to maintain economic activity, leading to inflation and increased cost of living. This results in 'technofeudalism,' where even those without direct engagement with Big Tech platforms are still negatively affected.

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