On November 29,I’m at NYC’s Strand Bookswith my novelThe Lost Cause, a solarpunk tale of hope and danger that Rebecca Solnit called “completely delightful.”
This week, I wrote about how the Great Enshittening – in which all the digital services we rely on become unusable, extractive piles of shit – did not result from the decay of the morals of tech company leadership, but rather, from the collapse of the forces that discipline corporate wrongdoing:
The failure to enforce competition law allowed a few companies to buy out their rivals, or sell goods below cost until their rivals collapsed, or bribe key parts of their supply chain not to allow rivals to participate:
The resulting concentration of the tech sector meant that the surviving firms were stupendously wealthy,
and cozy enough that they could agree on a common legislative agenda. That regulatory capture has allowed tech companies to violate labor, privacy and consumer protection laws by arguing that the law doesn’t apply when you use an app to violate it:
But the regulatory capture isn’t just about
preventing regulation: it’s also about
creating regulation – laws that make it illegal to reverse-engineer, scrape, and otherwise mod, hack or reconfigure existing services to claw back value that has been taken away from users and business customers. This gives rise to Jay Freeman’s perfectly named doctrine of “felony contempt of business-model,” in which it is illegal to use your own property in ways that anger the shareholders of the company that sold it to you:
Undisciplined by the threat of competition, regulation, or unilateral modification by users, companies are free to enshittify their products. But what does that actually
look like? I say that enshittification is always precipitated by a lost argument.
It starts when someone around a board-room table proposes doing something that’s bad for users but good for the company. If the company faces the discipline of competition, regulation or self-help measures, then the workers who are disgusted by this course of action can say, “I think doing this would be gross, and what’s more, it’s going to make the company poorer,” and so they win the argument.
But when you take away that discipline, the argument gets reduced to, “Don’t do this because it would make me ashamed to work here, even though it will make the company richer.” Money talks, bullshit walks. Let the enshittification begin!
But why do workers care at all? That’s where phrases like “don’t be evil” come into the picture. Until very recently, tech workers participated in one of history’s tightest labor markets, in which multiple companies with gigantic war-chests bid on their labor. Even low-level employees routinely fielded calls from recruiters who dangled offers of higher salaries and larger stock grants if they would jump ship for a company’s rival.
Employers built “campuses” filled with lavish perks: massages, sports facilities, daycare, gourmet cafeterias. They offered workers generous benefit packages, including exotic health benefits like having your eggs frozen so you could delay fertility while offsetting the risks normally associated with conceiving at a later age.
But all of this was a transparent ruse: the business-case for free meals, gyms, dry-cleaning, catering and massages was to keep workers at their laptops for 10, 12, or even 16 hours per day. That egg-freezing perk wasn’t about helping workers plan their families: it was about thumbing the scales in favor of working through your entire twenties and thirties without taking any parental leave.
In other words, tech employers valued their employees as a means to an end: they wanted to get the best geeks on the payroll and then work them like government mules. The perks and pay weren’t the result of comradeship between management and labor: they were the result of the discipline of competition
for labor.
ALT
