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Posted by alexzeitler 10/22/2024

A new book shows how the power of companies is destabilizing governance(hai.stanford.edu)
333 points | 344 commentspage 5
djohnston 10/23/2024|
The state is the primary means by which wealth is siphoned from the public to private interests. You see it with lobbyists, Covid scams, politicians amassing millions on a 200,000 salary. The state is the enemy. If tech companies (and technology generally) are stripping power from the state, so be it. In 100 years we’ll look back at the carcass of the nation state the way we do the Catholic Church.
oefnak 10/23/2024||
Wow. I feel the complete opposite. The state is the only thing that can fix things like climate change. Public companies cannot have ethics, they only focus on profits.
djohnston 10/23/2024|||
Not all are created equal. I do get the impression that the Nordic states maintain responsible governance and generally have a vested interest in the success of their people. But most Western states are a malignant plague of cronyism and theft with no hope of recovery. We are genuinely in the phase “steal as much as you can before the show is over”. Taxes will continue to rise, austerity will increase, and the state will oversee the continued transfer of wealth from the public to its corrupt benefactors.
animal_spirits 10/23/2024|||
Profits mean providing value to individuals. People more and more are valuing sustainability and spending their money to buy sustainable products. It might not be happening where you are yet, but in Seattle there are huge markets for plastic free goods, compostable packaging, farmers markets and locally sourced foods.
blackbear_ 10/23/2024|||
You seem to be suggesting that without the state companies would find it harder to extract wealth from the people. I really can't understand why this would be the case?

Any sufficiently large company could simply build their own private army and enforce whatever "law" they wanted. Essentially, this would result in a Mafia society which would seem way worse (https://en.m.wikipedia.org/wiki/Mafia).

wormlord 10/23/2024||
No offense but this feels like a politically immature opinion. You could say "this implementation of the state". I also believe that the "less state, the better". But what about a state that is controlled by council composed of worker and citizen councils? Those types of states would explicitly NOT transfer wealth from public to private interests, since private property would not exist.

Liberal Nation States + Capitalist Corporations are kind of the same evil in different clothing. They are undemocratic. You either have capital and control the corporation, or you don't. You either have political capital and control the state and its violent mechanisms of control, or you don't.

> If tech companies (and technology generally) are stripping power from the state, so be it.

Could you explain to me what you think the difference would be between:

1. Living in an authoritarian city where the state has total control over your day-to-day life. 2. Living in an authoritarian company town where the company has total control over your day-to-day life.

(If your response is "the free market" please explain why we wouldn't just see anti-competitive behavior between the corporations in order to mutually supress workers and consolidate their control?)

djohnston 10/23/2024||
No offence taken :).

I would say the main difference between (1) and (2) is the nature of the compulsion.

If my company town sucks and I’m talented, I can find a better company town.

But with the state, such agency is either high friction or downright impossible to achieve. For instance, if Im American living abroad, I still am required to file my taxes to the American state, even if my life and employment has nothing to do with my place of birth.

A company town never gains that much power.

I have a question for you, regarding

> I also believe that the "less state, the better". But what about a state that is controlled by council composed of worker and citizen councils?

Is this a system like in ancient Athens, where regular folk were basically selected at random to serve in govt for a rotation? I like it! But, I don’t understand how this system precludes private property.

wormlord 10/23/2024||
> If my company town sucks and I’m talented, I can find a better company town.

What's stopping the company from hiring a private police force to prevent you from leaving?

> For instance, if Im American living abroad, I still am required to file my taxes to the American state, even if my life and employment has nothing to do with my place of birth.

I think you are looking at current systems as they exist and claiming that these are inherent properties of states/corporations. There is a broad spectrum of corporation. You could have a company that is a dual partnership between owners, or a corporation in a social democracy that is compelled to "behave well" by a strong liberal government. On the opposite extreme, you could also have the Dutch East India company which was basically a colonial administration with as much power as a state. The subjects of the VOC were equally as oppressed (if not more) as someone living under totalitarian state control.

There is no inherent benefit that corporate control has over state control. I think the metric to look at is how democratic the implementation of a system is. Sure corporate control of your life might have less friction in its current iteration, but what if they gain more control?

> Is this a system like in ancient Athens, where regular folk were basically selected at random to serve in govt for a rotation? I like it! But, I don’t understand how this system precludes private property.

I was thinking more along the lines of Russia after the abdication of the Tsar, prior to Boleshevik takeover. Worker's councils (soviets) controlled their factory, and a council of soviets controlled each region. The Supreme Soviet was basically a top-level council. There is no private property because the "means of production" was controlled democratically by a council of workers.

I'm not saying this was a good system of governance (it collapsed almost immediately when faced with a centralized force), but I am just giving a counter-example to the statement that "the state is meant to move public funds into private control". That statement needs some qualifiers since there are many different examples of states.

I think that a more universal description would be "the state controls the distribution of wealth (or power)". This can either be the distribution of wealth from many to few, or few to many.

animal_spirits 10/23/2024|
I watched Julian Assange’s recent talk at the Council of Europe and his testimony on the insanity that the U.S. Government put him through [1]. This makes me come to a different conclusion than the article.

> In the digital realm, companies’ control of information, unfettered agency, and power to act have almost overtaken that of governments.

Why is it assumed that governments will act better if the power to control information is in their hands? We see this time and time again that the control over information is the most manipulating force a tyrant can wield. Why should we trust government over companies? At least with a publicly traded company we can sell stock faster than we can elect new leaders.

[1] https://www.youtube.com/watch?v=idphGmY3QRM

jpeizer 10/23/2024||
For US companies and its citizens, trading stock enough to send a message and make a difference is in the hand of the top X% of people. Those same people don’t have to worry about the same things we do. Their income tier makes them operate fundamentally differently. When you have a team of lawyers on call you can get a lot done quickly. For us companies depend on us deeming it not worth our time and money for a chance to right a wrong. On top of that companies are at times misusing or breaking the law for decades before they are taken to justice. And that justice is more and more just the cost of doing business.

I could go on and on, but I would rather face down one tyrant than an army of them. But the way things are going, we might be facing both soon.

AdieuToLogic 10/23/2024|||
> Why should we trust government over companies?

Democratic governments have some form of accountability to those elected, if none other than periodic elections. If you are fortunate enough to live in a country which has free and fair elections, then vote.

Companies do not have such constraints and operate strictly in self-interest.

animal_spirits 10/23/2024|||
Does government not act within self interest? The self interest of the company is to provide the information that people want. The self interest of the government is to provide the information that keep the citizens voting for who controls the politicians. And who controls the politicians is a profitable game for big corporations.

I understand companies act within their own self interest. But the problem is when we provide government with enormous power it becomes within the self interest of companies to influence government rather than provide value to society.

JumpCrisscross 10/23/2024||
> self interest of the government is to provide the information that keep the citizens voting for who controls the politicians

Now expand your model to one where the government, politicans and citizens aren't monoliths.

> who controls the politicians is a profitable game for big corporations

It's a pertinent game for everyone. That's the point of democracy. It's still a profitable game in a dictatorship. It's just that while democracy gives a peanut-gallery seat to even the most disinterested citizen, autocracies hoard those seats for the deserving.

animal_spirits 10/23/2024||
How do you end up in a position where governments aren't monoliths? You decentralize the power. Adding more and more state control concentrates power into the monoliths.
JumpCrisscross 10/23/2024||
> You decentralize the power. Adding more and more state control concentrates power into the monoliths

“State control” isn’t a monolithic lever. You can have a theoretically powerful but weak state if power is properly shattered. This is the lost art of designing democracies. (Not just throwing elections at every problem.)

animal_spirits 10/23/2024||
This is the current situation in the United States. The problem with this is that when you have shattered/distributed state power, they work to achieve opposing objectives. On one hand we have massive subsidies provided to the fossil fuel industry while at the same time spending millions on research in renewable energy. Recently we had huge subsidies to growing tobacco while also funding programs to stop people from smoking. This is ineffective and inefficient use of money. Now, this would happen with private companies as well, but the difference is that private companies have no means to force individuals to pay for their costs the way state government does. The state can threaten you by means of force or jail to pay for both of these conflicting endeavors through taxation. Whereas you only give money to private enterprises voluntarily, where you find value in their goods or services.
refurb 10/23/2024||||
Companies do not have such constraints and operate strictly in self-interest.

With companies I have options to not engage at all. I don’t have that option with the government.

fallingknife 10/23/2024|||
They operate under the constraint of my ability to take my business elsewhere. This gives me 1000x more leverage over companies than my vote will ever have over the government. The worst customer service nightmare i have ever been through is nothing compared to the time the IRS incorrectly calculated that I owed them thousands more in taxes. My vote does not constrain them in the least.
posterguy 10/23/2024|||
i love going to hackernews and reading comments from people who are confused about the difference between democratic franchise and stock ownership
philosopher1234 10/23/2024||
Because companies make decisions based on who has the most money. 90% of Americans have basically no control of those decisions. And companies interfere with democratic control of the government. Getting things out of the way of democracy seems good to me.
phyzix5761 10/23/2024|||
Again, how would that be different if government had the power to control information? Its human nature to do things that benefit yourself. At least if its not centralized then you have competition which gives people a choice of where they want their information coming from.
refurb 10/23/2024||||
We already know that organizations (whether public or private) eventually devolve into a bureaucracy where the goal is the growth of the organization itself.

We see this with the government - how often does the government ever remove laws? Or reduce size? Very rarely.

It seems to me that if the goal is to ensure one is not coerced, whether by business or government is not to try and create mechanisms to ensure coercion is only benevolent, but rather to ensure they never have the power to coerce people in the first place.

tightbookkeeper 10/23/2024|||
Who does the government listen to when making decisions?

Influence and power follows a power distribution. This is an age old problem.