Once again, Varoufakis elides the main distinctive feature of capitalism: Being a mode production aimed at capital accumulation through the exploitation of human labor...
"From this perspective, just as the Soviet Union was a feudal-like industrial society pretending to be a workers’ state, the United States today is performing a splendid impersonation of a technofeudal state, with repercussions that extend to every realm of state activity, including health services, education, the tax office, our borders and faraway battlefields.
In Ukraine and Gaza, and along our militarised borders, cloud capital is trained to extend its reach. Amazon’s AI tool Rekognition is used by law enforcement, including ICE, while Palantir’s vast surveillance software runs on Amazon’s cloud. Through Project Nimbus, Amazon and Google provide the Israeli military with advanced cloud and AI capabilities, reportedly enabling rapid, AI-driven targeting in Gaza with minimal human oversight.
Let us briefly return to the comparison with the early 20th century’s original monopolist capitalists. Whether we admire or abhor the Magnificent Seven’s stock market valuations, it is helpful to keep this in mind: the old capitalist giants, the “robber barons”, actually produced things. The new technofeudal lords produce a new social order. They have replaced the invisible hand of the market with the visible, algorithmic fist of the cloudalist.
Free-market enthusiasts have nothing to celebrate and much to regret. But it will take a brave soul amongst them to stare reality in the face. Just like pro-Soviet Marxists remained in denial that the Soviet experiment had failed for many years after 1991, so free-market ideologues refuse to see that capitalism begat a form of capital — cloud capital — that replaced markets with something out of the Soviet past. In the process, it has killed capitalism."
https://unherd.com/2025/12/big-tech-are-the-new-soviets/
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