It is no secret that I am predicting the implosion of the big tech industry, not the tech industry overall. For Background, here are two previous articles.
It is amazing that a student can complete a PHD program in economics from a prestigious university and graduate without a clue as to how markets function.
I don’t have that problem, though I have never been inside a prestigious school. Instead, I make use of natural law and deal in pure arguments. Natural law is never wrong. Using natural law, in the beginning is not that easy. It requires being in the vantage point of thinking in the light of reality. Raw reality is quite daunting. Fantasy rules the world and it is taxing to stay on the outside of that. That is until peace ensues, then it is easier.
Market forces are a real world phenomenon. Even brilliant minds prefer to think that mankind can can do better than what nature provides.
Natural law generates simple answers. Perhaps that is why it gets so little respect. A lot of what I write appears to be too simple to be of value. The reason, big tech will collapse is because its activities have no utility to society. That being the case, in time, other tech companies will discover things that genuinely do have utility to society. Further, big tech through lies and manipulation, creates demand for its services – rather than accommodate demand that is generated naturally. Anyone who has written and produced highly successful radio commercials, as I have, knows that manipulation techniques have a life span, some long and some short. At some point , folks become immune to being manipulated. As it is today, tastes and preferences are changing. People are completely on to being manipulated online. Big tech has become accustomed to dictating to consumers what the consumers want, but consumers are becoming immune to being manipulated.
Way back in the 80s, I was a small business owner. In Texas, where I live, we went though a recession while the rest of the country did a lot better. There was also a severe drought All cities had no choice but to to impose water rationing. Everyone’s grass started dying.
Down the road in Corpus Christi, owners of commercial water trucks responded brilliantly. Near Corpus, there is a sizable lake with water that is not drinkable. Water truck owners began driving to the lake to fill their tanks with water that was not safe to drink. Then they drove through neighborhoods using their trucks to water people’s grass. They did very well for as long as the drought lasted.
My grandfather was a cattle rancher. One year in the 60s the price of cattle was so low that it made no sense to take them to market. Pop, as we called him, noticed water trucks going up and down the highway, supplying water to a highway project. He called the government and offered to let the trucks fill their tanks from one of his man made lakes. That cut the governments cost because the drive was much shorter. It also sped up completion of the highway. Pop did quite well while the other ranchers suffered and incurred losses.
These were ordinary people who understood markets and responded brilliantly.
How does this apply to Big Tech? There is a new kid in town. Many have already heard of and used Instacart. This is a business that makes deliveries from grocery stores and countless other business entities to folks in various areas all over the country. I started using them just a week ago. There is no way big tech will ever be able to compete with their system. Customers can have virtually anything from local vendors delivered to them at a cost that often comes out cheaper than driving to the store and back. If a person’s time is worth anything, it is much cheaper. Delivery occurs mostly in less than two hours.
Instacart comes along when expensive electric cars are being crammed down the throats of ordinary people. Car ownership is getting very expensive . The price of repairs are staggering. A business like this makes car ownership, even in Texas, optional. Instaart is just the beginning. There is no telling how many other companies will spring up to accommodate demand that most don’t even know exists.
What is important, is that Instacart will not be the only headwind big tech ends up facing. Big tech has no genuine utility to society. Companies that do will end up eating their lunch. That is what market forces do.
Note: Fantasy Free Economics is banned in the United States. I am now hosting with Smartway, which is offshore. From the positive results I have gotten, I would host with them regardless. I encourage all to ask themselves – have you ever read anything here on Fantasy Free Economics that could be deemed unfit for the common person to read? Is there any content that is a threat to national security?
The only way to rebuild the readership of Fantasy Free Economics is for those who read it to share the link to the blog and certain articles. Email is best. It cannot be censored. There are still sites which accept the link. Try it and see.
James Quillian is not Tucker Carlson. I wish him well – as I hope all do. When a famous person get censored, he has the resources to make hay over the situation. I have no such resources. I must be frugal – just to meet my expenses. If you like these ideas, I hope you will participate by at least sharing the link.
The Fantasy Free Advantage is PDF book explains the reasoning behind the fantasy free approach.
Common Thinking Errors This article provides a genuine shortcut to thinking and analyzing in the light of reality.