Is The Era Of Tech Bros And Technolibertarianism Over?
Is the era of technophiles and technolibertarianism over? Depending on how you look at it, tech guys Sam Bankman-Fried and Elon Musk may or may not be hitting not just their companies, but the entire industry. When these industries are the currency and the new public space, the praise that private technology can replace traditional government functions suddenly rings hollow.
After the bankruptcy of FTX and the collapse of Twitter's verification system, where are you going to get your currency and trusted public information? Doubtful cryptocurrencies that will send even the most legitimate into bankruptcy if a competitor activates an outdated "runbank". Social media platforms where even a new "town square" can turn into complete chaos if the new owner wants to make a quick buck.
For now, investors should flock to the U.S. dollar and Treasuries, which have already begun to regain signs of subdued inflation, and wait for intervention from the Justice Department, the Securities and Exchange Commission (SEC), and other old-guard government agencies. .and clean up.
I'm not crazy. I started building Radio Shack kits in the 1970s, learned basic programming in the 1980s, and have since mastered all the basics except social media. Economics never made sense to me until a disturbing incident revealed that "you are the product" and then who needs you? We've read hasty obituaries about technology before. In reality, of course, we will not return to an earlier stage of technology development.
But techno-libertarianism, the gleeful feeling that old-school sovereign states are headed for the dinosaurs, that tech bros, free markets, and total liberalism will lead us to a utopia of freedom, choice, and self-determination. may have just reached its peak. . The problem is always that profit is more important than trust, and revenue and "productivity" are more important than infrastructure and sustainability. Businessmen are working, and no one should blame them. Profit is the goal of shareholders, and modern companies are designed to maximize it to the exclusion of alternative ESG measures. However, companies do not operate in a vacuum. This is made possible by a level playing field based on a neutral infrastructure in which all actors have sufficient trust.
Currency is an important part of business infrastructure. The SEC has refused to regulate cryptocurrencies for far too long, and now the chickens have come home to roost. If FTX is a "Lehman moment" for cryptocurrencies, it may be too late for the SEC to take meaningful action, and it's time for Congress to step in. If so, it could be the final clash between the geopolitical state and the techno-libertarian ideology that flexible, decentralized technology can transcend these "old world" entities.
Can Governments Tame Cryptocurrencies? This will likely require international cooperation through treaties. But in a world of rising geopolitical tensions and a battle for technological supremacy, can global forces come together big enough to succeed?
Trusted sources of information are equally important for companies. Attacks on the "mainstream media" have strengthened the position of alternative news sources such as Twitter. The mainstream media, of course, is also largely populated by commercial corporations. But since the early days of government regulation of radio and television, new media have been accountable to governments, not just investors. Can governments finally tame social media? We have to find out because it's volatile, it's carnival night in a new square where we don't know who's real and who's not, even among the blue chips we're among, drug critics or politicians who care takes us who rule the nation. Again, this will likely require not only congressional intervention, but also international cooperation and treaties to restore regulation and secure infrastructure.
Perhaps the days of the tech bros are numbered, not the days of the former sovereign states. Some things stick (warts, etc.) because they've proven themselves in the long run. Shiny new objects sometimes fade in the sun and are discarded for the next one. I sympathize with libertarianism and am not in favor of unchecked regulation. And yet the basic infrastructure necessary for healthy real estate, contracts, businesses and investments cannot be safely and reliably provided by the unregulated private sector itself.
With the collapse of FTX and Twitter, traditional governments could be the big winners. we need them to redouble their efforts to provide vital currencies, information and regulatory infrastructure so that businesses and economies can thrive.
Sean M. O'Connor is a professor of law and executive director of the Center for Intellectual Property and Innovation Policy at George Mason University's Antonin Scalia School of Law. He is a visiting professor at Boston College Law School, where he teaches contracts, corporations, and securities regulation.
