Glenn Diesen - Greater Eurasia Podcast Yanis Varoufakis: Technofeudalism and the Death of Capitalism
Sep 22, 2025
Yanis Varoufakis, former Greek finance minister and author, discusses his provocative book on the concept of technofeudalism. He asserts that capitalism has been replaced by digital platforms extracting rents from users, creating 'cloud fiefdoms.' Varoufakis explores how these platforms avoid taxes and threaten democracy, reducing individuals to digital serfs. He also discusses potential solutions like interoperability and social ownership, warning of the inherent instability of concentrated tech power. His insights challenge our understanding of power in the modern age.
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Cloud Capital And Cloud Rents
- Varoufakis coins "cloud capital" as non-productive machinery (servers, algorithms, networks) that extracts value via data and attention.
- These platforms act like modern fiefdoms, charging "cloud rents" that bypass traditional markets and profits.
User Labor Fuels Platform Value
- Big tech captures value because users provide unpaid labor: posts, data, and network effects build platform value.
- High switching costs and network effects erect virtual walls that let owners charge persistent cloud rents.
Platforms Expand By Monetizing Data
- Cloud capital turbocharges economies of scope, letting platform owners extend into transport, payments, and beyond without owning physical assets.
- Firms like Uber or Tesla increasingly monetize data streams rather than core manufactured goods or vehicles.
