Former Finance Minister of Greece and co-founder of grassroots movement DM25, Yanis Varoufakis, discusses the impact of the digital age on our lives, the rise of techno feudalism, and the fading illusion of the liberal individual. They also explore the significance of the transition from the Bronze Age to the Iron Age and the power of collective thinking and action.
Techno-futalism has replaced traditional capitalism, concentrating wealth and power in the hands of tech giants like Jeff Bezos.
The liberal individual promoted by classical liberal economics is no longer valid in a world dominated by algorithms and centralized control.
Deep dives
Janis Varafakis argues that capitalism is dead and a new economic era has begun
In his book Technofudalism, Janis Varafakis argues that capitalism is dead and a new economic era called techno-futalism has begun. He emphasizes that as an economist, he tries to address his books to the public and people close to him by writing a long letter to them. In this case, he chose to address the book to his father, who introduced him to technological change and capitalism. Varafakis explores the dialectical opposition between the benefits and dangers of technology throughout history, referencing a poem by Hesiod that represents the dilemma humanity faces when encountering technological advancements. He also discusses the impact of being a digital tourist, reflecting on his daughter's rejection of digital consumption and her preference for physical music and books. Varafakis connects his personal experiences, family history, and societal analysis to present a provocative argument about the nature of our current economic system.
Capitalism's transformation from the Iron Age to cloud capital
Varafakis discusses the significance of the Iron Age in human history, which his father introduced him to through a fascination with iron and its transformative properties. He draws a parallel between the Iron Age and the modern era of technological advancements, highlighting the acceleration of history due to technological changes. He emphasizes the role of the Industrial Revolution in speeding up historical developments and later the impact of cloud capital, which has replaced traditional capitalism. Varafakis points out that cloud capital, controlled by tech giants like Jeff Bezos, has concentrated wealth and power, making it difficult for governments and social democracy to effectively address inequality and redistribute income. He emphasizes the need for global solidarity and international movements to confront the challenges posed by techno-futalism.
Challenging the illusion of the liberal individual and social democracy
Varafakis reflects on the concept of the liberal individual and its demise in techno-futalism. He explains that the illusion of the autonomous and self-determining individual, promoted by classical liberal economics, no longer holds true in a world dominated by algorithms and centralized control. He argues that social democracy is no longer feasible due to the power dynamics between cloud capital owners and precarious workers. Varafakis criticizes the compromises made by social democratic parties in aligning with the interests of the financial sector and losing their ability to mediate between labor and capital. He asserts the need for collective action, internationalism, and solidarity to address the growing inequalities and injustices of techno-futalism.
Hope, overcoming polarization, and reclaiming individuality
Varafakis expresses his distinction between optimism and hope, stating that while he is pessimistic about the future, hope drives him to take action and work towards change. He discusses the importance of dialogue, collective thinking, and collective action in confronting the challenges of techno-futalism. He emphasizes the power of solidarity during times of crises and the need to reconnect with art, music, and collective endeavors that allow individuals to rise above commodification. Varafakis argues against finding a middle ground between left and right political ideologies, asserting that capitalism and techno-futalism are fundamentally incompatible with democracy and humanist values. He advocates for a transformative approach that empowers individuals and transcends the divisions perpetuated by the dominant economic system.
This week on the Penguin Podcast, Nihal Arthanayake is joined by the former Finance Minister of Greece and co-founder of the international grassroots movement DM25 as well as a Professor of economics at the University of Athens, Yanis Varoufakis. His latest book, Technofeudalism: What Killed Capitalism, explores how the owners of big tech have become the world's feudal overlords.
In this episode, Nihal and Yanis discuss the impact living through the digital age has on our lives, how commodities have more freedom of movement than people, and the objects that inspired the theories explored in his book.
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