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this post was submitted on 02 Jul 2023
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No Stupid Questions
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Part of it is the standard crisis of capitalism, the profit you get from doing the same thing always declines, so over time you have to push up revenue (increasing prices, forcing people to pay, showing more ads, gathering more data, etc) & push down costs (fire engineers, run on less hardware, etc)
Part of it is capitalisms natural tendency to create monopolies, and the lack of competition in a given field causing the company to then lose sight of what it's good at to compete in a bigger field.
Part is that interest rates mean loans are no longer cheap, so taking on debt to get customer, to at some point down the line make money, is a less viable plan. Twitter is a special case where the bad loans are because that was the original deal not interested rate related, and Musk is trying to pull all of the enshitification levers at the same time.
Part is that CEOs generally don't have a fucking clue about their products or what they are doing (it's a circuit job about who you know/blow, not what you know), so once one CEO starts firing/enshitifying, the rest just copy them so as to not be left out.
Capitalism is a system built on greed as a foundation to function. In a capitalist system, you must always continue to grow, expand, engulf, absorb, and acquire. This is why it is such a toxic and destructive system. Capitalism will always incentivize companies to get the most people possible to spend as much as possible on as little as possible, that's literally the core principle of maximizing profitability.
It's why enshittification keeps happening, the system isn't broken, it's working exactly how it's supposed to.
Wouldn't capitalism be relatively fine without the function of the Stock Exchange? I feel like the stock Exchange is what causes the issue with the need for continual growth. I feel like capitalism without the overarching need to continuously grow due to the demands of the stock exchange system, could work perfectly fine as you wouldn't need to continuously grow but to maintain a profit and adjust for inflation where needed.
Capitalism codifies the acquisition and control of capital by an owning class separate from the workers (employees). The owners always want to see their profits grow, because in a system that is zero sum, where competition is glorified as the primary mechanism for fair pricing and business success, if you aren't growing, then other competitors will eventually extinguish you.
Capitalism mimics evolution in that way, where all organisms compete against each other in a winner-takes-all setting. Talk to any hardcore Capitalist and they will talk about Capitalism being the "natural order", "human nature" etc. I know, I used to be a hardcore free market capitalist.
A system that places profit and private ownership of capital above all else will always result in the kinds of oppressive systems and company practices we see today.
It's like how fundamentalist religious institutions are having abuse scandals over and over for literal centuries. They are built in such a way that makes abuse easy to get away with. Even if it starts out perfectly clean, safe, and incorrupt, eventually the very structure of the organization itself will cause abusers to join or allow already abusive people to commit those acts without significant consequences. It is a negative feedback loop that perpetuates itself until it collapses totally or is extinguished by an outside force.