What Should We Do About Short Termism?

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I had a very naive view living in silican valley. I thought that the culture of business at large was that we can change things, andour things are always improving. And i kept meeting with people tasked with doing innovation, and i would watch them go through the cycle over and over again. It's just when you get to seeall that stuff up close and personalthat the human cost is what i come back to again and again. You may as well not invest an innovation if you're going to cancel it before it's had a chance to run its course. Innovation takes longer than three months. So this is like an epidemicin our corporations.

At Center for Humane Technology, we often talk about multipolar traps — which arise when individuals have an incentive to act in ways that are beneficial to them in the short term, but detrimental to the group in the long term. Think of social media companies that compete for our attention, so that when TikTok introduces an even-more addictive feature, Facebook and Twitter have to mimic it in order to keep up, sending us all on a race to the bottom of our brainstems.

Intervening at the level of multipolar traps has extraordinary leverage. One such intervention is the Long Term Stock Exchange — a U.S. national securities exchange serving companies and investors who share a long-term vision. Instead of asking public companies to pollute less or be less addictive while holding them accountable to short-term shareholder value, the Long-Term Stock Exchange creates a new playing field, which incentivizes the creation of long-term stakeholder value.

This week on Your Undivided Attention, we’re airing an episode of a podcast called ZigZag — a fellow member of the TED Audio Collective. In an exploration of how technology companies might transcend multipolar traps, we're sharing with you ZigZag’s conversation with Long Term Stock Exchange founder Eric Ries.

CORRECTION: In the episode, we say that TikTok has outcompeted Facebook, Instagram, and YouTube. In fact, TikTok has outcompeted Facebook, but not yet YouTube or Instagram — TikTok has 1 billion monthly users, while YouTube has 2.6 billion and Instagram has 2 billion. However, we can say that TikTok is on a path toward outcompeting YouTube and Instagram.

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