From startup to giant government-supported effective monopoly, the core concept of the “company” has changed. Until the 1980s, a company was understood to be an organization that existed in order to profitably provide goods and services to its customers. But with the onset of financialization, a company became seen as a vehicle for the transfer of money from the government, from venture capitalists, or from Wall Street to the primary stakeholders. The customers were secondary, the goods and services tertiary. The existing businesses and customer bases are nothing more than mines to be stripped of all their assets, then abandoned, barren and empty.
This is why deplatforming – unthinkable in “the customer is always right era” – is now very common and the quality of the goods being produced and the services being provided is in free fall. The convergence of the corporations is rendering them totally incapable of fulfilling their nominal core functions, and combined with the financialization of the corporate sector, means they’re not even incentivized to attempt to fulfill those functions.
If Lockheed Martin can arrange to get a government contract paying $100 billion for a single jet fighter that cannot even fly, that’s great business by today’s standards. If a startup can receive $1 billion in venture capital without ever generating a single dime of income, that’s a home run by today’s standards. And yet, there is no actual economic activity. There is nothing being produced and no services provided.
In other words, it’s a fragile system with a foundation that isn’t built on sand, but thin air. Which is why it is vital for those who wish to survive, and perhaps even thrive, amidst the system’s inevitable ruins to ignore the way business is done today and focus on the age-old principles of providing genuine value to actual customers.