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Look at Enshitification through the lens that its basically just Inflation localized to a single company. When companies are poorly managed, they die. Except: n
by 015a 3y ago
Look at Enshitification through the lens that its basically just Inflation localized to a single company. When companies are poorly managed, they die. Except: now enters awesomely sophisticated Financial Engineering, enabling companies to metastasize far longer than the market alone would allow them. Take out debt; venture funding; unsupported valuations; high expectations; market ebbs and flows; you can fly a Cessna at 70mph just fine, but a jet going that slow crashes.
Unity was running $200M in losses on $500M in revenue, per quarter. And they've never been profitable (since going public). A government can safely print money if it has the economic growth and tax base to support it; but if it doesn't have that, over enough time, you get: Inflation. The bill always comes due.
Enshitification is just company-localized inflation after unsupportable financial engineering. There are really good examples in Doctorow's original piece; most of them actually cover the more-common stagflationary effect, but stagflation is just inflation through a different lens. It really doesn't have much to do with B2B versus B2C; its intimately related to attempts toward increasing profit margins, but the critical piece is the path the company walked to get there; and, in the most severe cases, the fact that they should have stopped walking and died three miles back.
Or, maybe Doctorow would disagree with all of that. But that's the fun part of inventing such a meme-able, excellent term; it outgrows you!