I think the thing companies forget is that a lot of them can't remain functional if a shrinking percentage of the population can afford their products. Yes, you can try and appeal to the rich and sell products/services aimed at their needs. But does that work for most companies?
I'd say no. The rich won't buy millions of food items or works of fiction or go to every service available in real life.
So, many of those companies won't remain viable unless there's some alternative way for people to spend money. Lots of people who see themselves at the top will end up out of a job, or watch their businesses crash down.
I will say that the fact these societies are (at least for now) still democracies makes the future these tech moguls want less certain for them though. Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not. The US may have some issues there, but a lot of the world has seen parties outside the mainstream grow in popularity, including some on the more leftward side of the political spectrum.
Some companies are discovering that they can get by just fine by overcharging the insanely rich and never bothering with providing goods and services to the middle class or the poor at all. The rich don't buy as many food items or works of fiction, or services as the masses but they don't have to either.
Companies can save a ton of money by not being open to everyone all the time. They can instead focus on providing the most amazing luxury experience customized to the extremely wealthy individuals requesting their services and charge them more than anyone else could afford. While not every company can live off of whale meat, those who can will leave the rest of us behind.
This doesn't work for staples. In fact, for staples the companies that cater to the rich are very small and often end up getting acquired by those that cater to the middle class. For things that aren't necessary though, you are right. But the real money is only made once the wider market can afford something. When it can't, the market is usually measured in single digit millions, when it can, its measured in billions.
The issue is that about 90% of companies can't do this. Even if they all want to, the end result will be most of them going under.
Most of the world's democracies don't have influential AI companies, so if the voters want X and companies want Y, X will win. There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
>There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
You kidding? They have every reason to because the leaders of Indonesia make investments into these companies. No matter where you are on the globe, the oligarchy does not give a crap about the little man. They care about the profit angle. Indonesia readily hands out mining rights to foreign companies for example.
"However, Chinese firms have dominated Indonesia’s nickel sector thanks to significant investments. In 2023, Indonesia was the single biggest recipient of China’s Belt and Road Initiative, receiving $7.3 billion in investment. Chinese companies have also constructed over 90 percent of Indonesia’s nickel smelters. Chinese firms operating in Indonesia include Tsingshan Holding Group, Zhejiang Huayou Cobalt, Ningbo Lygend (part of CATL Group), Wuling Motors, and China Molybdenum Company."
https://www.csis.org/analysis/diversifying-investment-indone...
> I think the thing companies forget is that a lot of them can't remain functional if a shrinking percentage of the population can afford their products.
Why not? Apple, for example, had billions upon billions of dollars in cash. Think about that: That means they gave billions upon billions of dollars worth of stuff to people and never got back anything in return. And there is no sign that they ever plan to get anything in return. They are already quite happy to give their stuff away for free.
And why wouldn't they? When you give people stuff for free, they put you on a pedestal and treat you like a king. Those who lead Apple get to do things and get away with things you and I can only dream of. That's the appeal of still doing it even though you don't get any economic return. Social return is what actually starts to matter once your basic needs are met.
>Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not.
The issue with this is that the game is fundamentally rigged. You might have good ideas, you might be that person we need. But, too bad, you are being outspent by the oligarchy, who put forth a candidate that is blatantly lying to get elected, who knows the public has a poor grasp of what actually happens in government, and will outspend you in getting your word out. They will gish gallop in debates while you attempt to talk nuanced policy, and you will be seen as a failure who gets easily overwhelmed. There will be conspiracies spread about you. Massive propaganda operations where just about every piece about you and the election in the media is manufactured to achieve some outcome. The whole beast is rotten.
The only way out is to remove campaign financing entirely. Do it like Cuba where campaigning is illegal; they elect actual engineers and domain experts there as a result, not professional politicians. But, you can't actually do that without a revolution, because everyone in power now who can reshape this currently benefits from the status quo and has no incentive to reshape themselves back to a level playing field.
> Do it like Cuba where campaigning is illegal; they elect actual engineers and domain experts there as a result, not professional politicians.
The US military is preparing to fix this issue in Cuba's political system.
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Some businesses will not necessarily need human customers at all