Is The Era Of Tech Bros And Technolibertarianism Over?
Is the era of technology and technological freedom over? Depending on how you look at it, tech powerhouses Sam Bankman-Fried and Elon Musk have either failed to succeed or not just for their companies, but for their entire industry. When these industries become the new currency and city square, the hype that private technology can replace traditional government jobs suddenly fades.
After the bankruptcy of FTX and the collapse of the Twitter verification system, where do you want to get your coins and reliable public information? Cryptocurrencies are so unscrupulous that even the most legitimate ones go bankrupt when a competitor causes an old-fashioned "bank". Social media platforms are where even "new town squares" can descend into complete chaos when the new owner wants to make a quick buck.
Investors may jump into the dollar and US Treasuries, which have already started to rally, as they look to the Justice Department, the Securities and Exchange Commission (SEC) and other legacy government institutions for signs of easing inflation. Fill and clean. above
I am not Luddi. I started building Radio Shack sets in the 70's, learned basic programming in the 80's and have since embraced all major news except social media. The economics didn't make sense to me until the big "you are the product" concern and who wants that? We've read about early tech deaths before. In fact, of course, we are not going back to previous levels of technology.
But technolibertarianism—the euphoric sense that the old sovereign states are going the way of the dinosaurs, the brotherhood of technology, unfettered free markets, and iron liberalism will lead us to a utopia of freedom, choice, and self-determination—is just this achievement. Its peak. The problem is that profits always take precedence over reliability, while revenue and "performance" take precedence over infrastructure and stability. Companies are doing business and should not be blamed for this. Profit is the shareholder's goal, and the modern business organization is designed to maximize it according to alternative ESG measures. However, the company does not operate in a vacuum. This makes possible a level playing field based on a neutral infrastructure where all players have sufficient confidence.
Currency is an essential part of business infrastructure. The SEC has shied away from regulating cryptocurrencies for too long, and now the chickens have come home to roost. Billions of dollars are at stake. If FTX is the "Lehman moment" in crypto, it may be too late for the SEC to do anything meaningful and it's time for Congress to act. If so, it may be the ultimate proof of the geopolitical state and techno-libertarian ideology that agile decentralized technology can save "old world" entities.
Can governments regulate encryption? This may require international cooperation through treaties. But in a world of rising geopolitical tensions and battles for technological leadership, can enough global forces coalesce to succeed?
Reliable sources of information are also important for business. Attacks on "mainstream media" have strengthened the position of alternative news sources such as Twitter Mainstream media, of course, is largely populated by for-profit corporations. But since the early days of government control of radio and television, new news sources have subjugated governments, not just investors. Can the government finally control social media? We have to figure it out because it's unstable, it's a carnival night in a new town square where we don't know who's real and who's not, even in the corporations we rely on drug addicts or the politicians who run the country. Again, this will likely require not only congressional intervention, but also international cooperation and agreements to restore control and secure infrastructure.
Perhaps the days of the technological fraternity are numbered, not the days of the old sovereign states. Some things stay (warts and all) because they've proven their worth in the long run. New, bright, shiny things sometimes fade in the sunlight and are thrown away by other people. I'm familiar with liberalism and not a fan of crazy rules. However, the unregulated private sector cannot safely or reliably provide the basic infrastructure needed for robust property, contracting, business and investment systems.
Traditional governments could be the biggest winners after the collapse of FTX and Twitter. We must redouble their efforts to secure their underlying currency, 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 x Innovation Policy at the Antonin Scalia School of Law at George Mason University. He is a visiting professor at Boston University School of Law and teaches contract, corporate and securities regulation.
