RE: https://fosstodon.org/@ovid/116334866923361500

My earlier thread on 4,000 years of enshittification got some great responses. One question kept coming up: if the extraction pattern is deeper than capitalism, what is the root cause? I think I have the start of an answer, but it means annoying people across the political spectrum.

1/9

Marx correctly identified capital as extractive. His solution was collective ownership, with the state as a temporary bridge. Every implementation saw the bridge become permanent. The party became the new extractive class.

Libertarianism correctly identifies that institutions are extractive. Its solution: strip them away and let markets sort it out. Each one correctly diagnoses a disease, then prescribes a cure that causes the same disease.

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Because both models miss the deeper pattern. It's not capital or government that's the problem. It's power asymmetry and power asymmetries are convertible. Eliminate economic power and political power expands to fill the gap. Eliminate political power and economic power does the same.

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What other kinds of extraction do both miss? Kinship networks. The Soviet nomenklatura extracted through party connections. Silicon Valley extracts through founder-class access. Ibn Khaldun documented this in the 14th century: the cohesive in-group always extracts from everyone outside it.

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Informational asymmetry. Sumerian priests controlled literacy and therefore controlled surplus. Medieval guilds hoarded trade secrets. Modern finance extracts through complexity regulators can't parse. Communism assumes state planners will be benevolent with their knowledge advantage. Libertarianism assumes markets make information transparent.

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Ecological extraction is stealing from the future. Externalizing costs onto people who don't exist yet and can't fight back. Soviet industrialization and unregulated capitalism have both been catastrophic here. Neither model has a mechanism to represent future populations. The extraction just changes who gets the bill.

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Religious and ideological extraction. Tithes under feudalism. Enforced conformity under state atheism. Prosperity gospel under capitalism. Control over meaning and legitimacy is a form of power, and it generates extraction under every economic system we've tried.

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The difficult conclusion: the fundamental problem isn't capital or government or religion. It's that any sufficiently large power asymmetry will be exploited for extraction. Or, as I put it in my earlier thread: if you can get away with it, it takes less energy to steal than to create.

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This is why solutions designed to eliminate one form of power just create a vacuum for another. We need mechanisms designed for recurrence, one that assume extraction will re-emerge through whatever channel is left open. Because it always has.

9/9

@ovid participatory budgeting? We could also try representative democracy instead of just systems of fabricated consent. Gerrymandering and voter suppression are too easy in the 2-party game, besides buying both sides.
@enobacon Participatory budgeting? I know Ricardo Semler helped prevent some extraction with SemCo. Part of this was offering every employee training on how to read annual reports. It let them make better decisions on how to collectively run the company and the company grew like mad as a result. Fascinating to watch.
@ovid https://council.nyc.gov/pb/ says NYC is doing it now, " began in Porto Alegre, Brazil in 1989". I'm sure it still gets steered by bureaucrats but the proposal are supposed to come from the bottom up, delegates, final vote of the public. That requires voters to be informed and engaged... so I guess we'll see how that goes.
Participatory Budgeting

New York City Council - Participatory Budgeting

Participatory Budgeting
@ovid Which maybe points toward the notion of encouraging "countervailing powers". https://en.wikipedia.org/wiki/Countervailing_power
Countervailing power - Wikipedia

@jyasskin Added to my notes. Thank you! Totally forgot about that, but yeah, it's an interesting angle.
@ovid I apologize if this is inappropriately left-field but I’m curious if this could feel useful! Because my background/lived experience is primarily substance use disorder, I immediately recognize the cycle of that - on a much more individual/micro scale - here. Part of the extraordinary challenge of “getting sober” is overcoming such asymmetry, figuring out how to build a pattern of choosing the hard thing overtop a well-worn history (and intimate knowledge) of choosing the much easier one. You clearly have a knack for uncovering the parallels so I won’t ramble on. For the record, I’d def pre-order this - with a side of flowers for your wife, too.

@laurel Definitely not an inappropriate comment. Different POVs help me look at things differently!

I like the idea of addiction as a metaphor; it's powerful. It's also dangerous. @pteryx pointed out that I was teetering on victim-blaming and I think "addiction" does, too. But I also have known addicts who *like* their addiction and just gloss over the side effects. Short-term reward versus long-term wellbeing.

But I won't tell my wife about the flowers. I'd have to fess up to the book.

@laurel Also, DON'T APOLOGIZE! Even if someone tells me I'm being a complete idiot, if they offer a strong justification, I want to hear it. This problem appears systemic and hard to deal with. I would love to hear counter-arguments suggesting that the situation isn't as fatalistic as I'm implying.
@ovid This is a fantastic assembly of a bunch of abandoned notes I've made over the years that range from "billionaires are a policy failure" to "capitalism literally becomes the deification of capital and that's why OpenAI's neg about the value of money has got the rich so terrified to invest". The term I was obviously missing there was converting their power from control of capital to control of the thing that replaces it.

I should explain how assymetries are "convertible."

A tech founder has informational power (a proprietary algorithm). That converts to economic power (market dominance, stock price). Economic power converts to political power (lobbying, regulatory capture). Political power converts back to economic power (favorable legislation, weakened antitrust). The cycle completes.

The point is that if you eliminate one type of power, such as abolishing private capital, the people who still hold other forms of power (political connections, social networks, information access, capacity for violence) can convert those into whatever replaces capital. The extraction continues through a different channel.

We cannot fight a pattern we don't learn to recognize.

@ovid The pattern that needs to be recognized, is not the extraction, that is obvious. Rather it's why the opposition fails even though they are numerically superior and should win based on theoretical power. This is only slightly less obvious: it's because they fight more against themselves than the real enemy. This is something that people really don't want to hear, I've noticed. Even the people that refused to vote for Harris still refuse to understand the problem...
@trademark Yes! The infighting is a deliberate strategy that the elite are now adopting. It's not just Russian and Chinese psy-ops campaigns. The whole "woke" idiocy has been a perfect dumpster fire, burning the masses and keeping the elite warm.
@ovid while infighting is a deliberate strategy, e.g. US green party appears to work for Putin. This also happens entirely by itself without any external provocation. It started pretty much instantly after the 1917 March revolution, even before Germany sent Lenin. And he was entirely his own person, he was in no way created by German intelligence. This was extreme in Europe post WWII, with multiple communist parties in each country, it's so pervasive in so many countries that it must be innate.
@ovid Instead of studying Marx, I recommend studying organizations that actually succeeded. A number of labor organizations actually made things vastly better for the workers. Western Europe has lots of opportunities for comparative analysis of what worked and what didn't.
@ovid especially the Comintern split, where the cooperative, sane people broke with the extremist nutcases. Much more useful detail available than old histories about Ur of the Romans.
@trademark Gotta include the historical examples so that people understand that this has been happening all of recorded history. From there, identifying the common underlying theme makes it easier to spot.
@trademark Also, which "comintern split" are you referring to? There are a few things that might apply, but at the end of the day, those willing to extract power/wealth kept winning. Just because there are sane people doesn't mean there are *effective* people.
@ovid communist international organized from Moscow. From memory one of the most contentious issues was whether workers could be religious at all, should be discouraged or just welcomed like any other. Most of the western European parties/unions that broke with Moscow over this still exist and some are in power right now.
@trademark Yup. I also want to do more digging into the Nordic model. 6 out of the top happiest countries in the world arguably use the Nordic model (exceptions are Israel and Costa Rica). Nordic countries are highly inclusive and very innovative, but much of their innovation is on a smaller scale than the "I Wanna Be a Billionaire" model of the US.
@trademark Also worth noting a successful model: US Social Security. It was explicitly designed to be inclusive (no means testing), so everyone has a stake and there's no "welfare queen" distractions. It's also very transparent because it comes out of your paycheck. Though many politicians have tried to gut it, people intuitive understand "I paid for that, so it's my money."
@ovid interestingly I believe they all have more dollar billionaires per capita than the US does, e.g. Iceland pop 300 000 has one :)

@trademark To be extremely clear: if you have a business idea and become insanely rich, I have NO PROBLEM WITH THIS if you fairly earned that money.

If you did it through extractive means (/me waves at Uber), then no, this is not right. So the question isn't whether they have more billionaires per capita (they are, after all, very innovative), but whether that behavior was extractive.

@ovid some differences I am vaguely aware of, unlike in the US with mandatory membership in unionised workplaces, the norm is freedom of association, there are multiple unions and you can be a member of any(or none) doing your normal work while colleagues' union are striking is fine, doing their work is not. I think there's some kind of formalized forgiveness possible for strikebreakers to get them rehabilitated.
@ovid unions are so strong that the employers have also organised themselves, so at the national level the workers unions and the employers organisations are first negotiating the overall direction(multiple competing of both workers and employers organizations) and then detailed negotiations for sectors and individual workplaces.
@ovid the unions basically won, but they have a policy of restraint being better in the long term so they leave most of the money they *could* have gotten if they played hardball to the owners and management.
@ovid for comparative analysis of policies, Ithink Finland did their union fighting in the 50s while the others had them in the 30s.