Yochai Benkler on Tech’s True Forces: Capitalism, Institutions, and Ideological Impact
Nov 6, 2023
auto_awesome
Yochai Benkler, Professor of Entrepreneurial Legal Studies at Harvard Law School, discusses the role of capitalism, institutions, and ideology in shaping technology and societal outcomes. He challenges the belief that technology is the cause of change, emphasizing how power dynamics within capitalism drive technological development. The podcast explores topics such as the impact of digital technology on society, the manipulation of preferences for innovation, the imperfections of free markets and state regulation, the trade-off between broadly distributed knowledge and market adoption, and the value of non-profit, socially-oriented systems.
Technology and software are driven by the dynamics of power-seeking in capitalism, rather than being autonomous drivers of change.
Balancing dynamic innovation with social accountability and fairness is crucial for building a just society.
Social relations and institutions shape the development and impact of technology, and understanding specific historical and cultural contexts is essential.
Deep dives
The Role of Capitalism in Shaping Technology and Society
In this podcast episode, Yohai Bankler, Professor of Entrepreneurial Legal Studies at Harvard Law School, discusses the role of capitalism, institutions, and ideology in shaping technology and societal outcomes. Bankler argues that technology and software, rather than being autonomous drivers of change, are subsumed by the dynamics of power-seeking in capitalism. He challenges the prevailing wisdom that technology is the cause of change, highlighting that it is a tool used by profit-seeking classes to maximize their gain while legitimizing it with claims of democratization and social improvement. Bankler's framework emphasizes the need to build a society that balances dynamic innovation with social accountability and fairness.
The Political Economy of Technology
Bankler delves into the political economy of technology, emphasizing the distinction between modern capitalism and pre-capitalist or non-capitalist systems. He discusses the driving force of profit-oriented innovation, which seeks power and rents rather than focusing on efficiency or competition. This approach to innovation brings both positive material growth and patterns of exploitation, raising concerns about social dislocation and inequality. Bankler underscores the challenge of harnessing the dynamism of capitalism while containing its exploitative elements and building a society that aligns with moral claims about our obligations to each other.
The Interaction of Technology, Society, Institutions, and Ideology
Bankler critiques the notion that technology shapes society independently, arguing instead that social relations and institutions shape the development and impact of technology. He highlights the importance of understanding the specific historical and cultural contexts in which technology is introduced and adapted. Bankler points out that different countries have different opportunities and constraints based on their inherited social practices. He also cautions against overcomplicating the analysis and recommends focusing on a tractable set of components, including institutions and ideology, to optimize governance and create a society that balances dynamism and fairness.
The Value and Limitations of Commons-Based Peer Production
Bankler discusses the value and limitations of commons-based peer production, exemplified by platforms like Wikipedia and open-source software. He highlights how this approach allows for faster learning through the broadly distributed knowledge and insights of contributors. However, he acknowledges that commons-based systems can struggle with focus, direction, and disseminating the final product to a larger population. Despite these challenges, Bankler emphasizes that commons-based peer production offers an alternative to profit-oriented or state-controlled models, enabling a more democratic and socially accountable approach to value creation.
The Prominence and Pitfalls of Blockchain
When discussing the potential value of blockchain as an organizing principle for society, Bankler criticizes how profit-driven motivations have distorted its initial promise. He highlights the issue of blockchain's governance structure, which often rewards voting power based on economic value rather than fostering decentralized self-governing systems. Bankler points out the contradiction between the idea of decentralization and the concentration of power in systems that prioritize profit and wealth. He suggests that the potential of blockchain and other technologies can only be realized if they are shaped by values that prioritize social benefit and collective decision-making.
Yochai Benkler is a professor of Entrepreneurial Legal Studies at Harvard Law School and co-director of the Berkman Klein Center for Internet & Society at Harvard University. Yochai is known for coining the term commons-based peer production which describes collaborative efforts or social production in the creation of information goods such as Apache server or Wikipedia. In 2012, he received a lifetime achievement award from Oxford University in recognition of his contribution to the study and public understanding of the Internet and information goods. Yochai has written a number of influential books, including The Wealth of Networks, Network Propaganda, and the Penguin and Leviathan.
Our conversation with Yochai focuses on the role of capitalism, institutions, and ideology in shaping technology and societal outcomes. Yochai’s theory centers around the notion that it is not technology and software that shape change, but rather that the dynamics of power-seeking in capitalism have subsumed and directed technology and software towards the same aim as it always had — which is to maximize profit for a narrow set of profit-reaping classes while legitimizing it under a patina of claims of self-actualization, democratization, social mobility, and improvement in well-being for all. Yochai’s framework pushes back on the prevailing wisdom that technology is the cause of change but rather an arena where the dynamics of capitalism established since the 17th century are driving, while a naturalized view of technology is simply a red herring.
We also discuss the political economy of technology, commons-based peer production as a value generation model, and the value of decentralized blockchain systems like bitcoin and ethereum.
This was a very refreshing conversation. It’s clear the world could learn a lot from the wisdom of Yochai Benkler.
