Unveiling the Infuriating Effects of Chokepoint Capitalism

Chokepoint Capitalism with Cory Doctorow

https://www.youtube.com/watch?v=vluAOGJPPoM

Adam Conover of “Adam Ruins Everything” didn’t have to do the ruining this time. Instead, he was joined by Cory Doctorow who did the work for him. I had heard about this podcast when it came out and finally had the chance to watch it over a couple of days. And they were an angry couple of days. At one point in the interview, Cory even acknowledges the fact that his book is infuriating. He said that many people end up really pissed off after reading just the first half of his book. Which is why he focused on what we could do about the situation in the second half.

What is Chokepoint Capitalism?

Chokepoint capitalism refers to a situation where a company sets up a business connecting goods or services with people who want to purchase them. However, once they have a significant share of the market, these connector companies close down the funnel, effectively becoming chokepoints.

Take Amazon, for example. If you want to buy something online, you have to go through Amazon.¹ At first Amazon made it very pleasant for buyers. They offered Amazon Prime with 2-day delivery at a time when expedited shipping was a luxury most people couldn’t afford. They carried a wide range of brands, and their return policies were exceptional. These policies attracted a large customer base.

However, once they successfully connected customers with sellers, they started tightening their offerings. Two-day shipping became “prime day” shipping and return policies are more limited and restricted. But they didn’t limit just the consumers. They also set up restrictions on sellers. They launched their own Prime store brand to compete directly with the small businesses they had wooed onto the platform. Eventually, the only way to get top placement in the Amazon search results was to pay for it. Customers were unhappy, small businesses were unhappy, but what could they do about it? Amazon has all the power.

I See Chokepoints Everywhere Now

I’ve started noticing chokepoints everywhere in today’s economy:

• My local veterinarian was bought out by a nationwide vet clinic. As a result, they no longer handle emergency vet appointments, charge for things that used to be included in the service, have limited hours, and only accept new patients from existing customers.
• My medical clinic went through very similar changes after being acquired by a nationwide firm.
• In my area, there are only three or four grocery stores within a five mile radius, and two are Safeway.
• Insurance companies often act as true death panels, making life-or-death decisions that may contradict a doctor’s opinion.

It often seems like everything is undergoing a process of enshitification (a term coined by Cory).

I Don’t Know What Will Happen

I saw a question on r/AskReddit the other day that asked:

What will happen when most people are not paid a living wage?

That seems to be the road that the oligarchs are driving us to, so I suppose we just need to hang on and find out.

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from Adam Conover via Factually Podcast on YouTube

title: Chokepoint Capitalism with Cory Doctorow

author: Adam Conover

published: 2023-03-09

source: Factually Podcast

link: https://www.youtube.com/watch?v=vluAOGJPPoM

Image by Bruno from Pixabay