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this post was submitted on 13 Aug 2023
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The industry can't learn this lesson from their customers, because they didn't get the bad idea from their market. It's a society-wide trend, a symptom of a whole economy under the control of a narrow coproate elite that knows little to nothing about the industries they control or the products they produce. They contribute nothing to the productive process. They only work to streamline the parasitism that infests our society.
I have experienced this on the production end, as well. I used to work in pest control. For a brief period of my career, I was lucky enough to work for a midsized regional company, grown from a small family business, that was focused on solving actual customer problems. We did tons of one shot work. We did do quarterly and bimonthly service, but there was no particular pressure to subscribe, or to cajole customers who wanted to cancel service (because we'd successfully dealt with the problem) into continuing service.
Then the elderly couple that owned the company sold us to a global megaconglomerate (one of the "Big Three"). Over the course of a year, our focus changed. "Recurring revenue" was now the watchword, which is a tough fit in an inherently seasonal industry. And the reason they do this, in pest control, in game development, in every industry that can potentially produce any kind of surplus wealth, is because the owners ("investors") neither know nor care about any of the details of the industries they control. All they want is regular and ever-increasing revenues, in exchange for nothing at all. You can't even say it's in exchange for access to their savings, because though there is a little actual savings in the system, that's chump change compared to the ever growing wealthy elite that controls our society and devours our productivity.
Beautifully written and entirely spot on. The question is whether we will do anything about it. We probably have 10-30 years before this elite will entrench themselves forever with some kind of robot police that truly can't be overthrown. (And it's not like anyone is rising up now, even though the power is clearly with the workers)
And then this elite will Habsburg-jaw themselves into oblivion and all that remains of humanity are machines built in the name of shareholder profits. What a sad way for things to end.
Or, alternatively, they'll ruin the earth's climate in their selfishness and greed and either find a way to leave the planet and abandon the plebs to die, or more likely, die right alongside us as the climate collapses and ecological disaster wipes out the human race.
Either way, greed ends up destroying us all.
I see a different future. The tendency of wealth to be drawn upwards as position comes to replace labor as the primary means of gaining wealth ultimately puts a cap on progress. It's a soft cap, meaning it might happen sooner or happen later, but it will happen sooner or later. Eventually, the imbalance reaches a tipping point, where the slightest jolt to the system sends the entire thing crashing down. Maybe people get pissed enough that general rebellion breaks out. Maybe the population becomes sufficiently stressed and undernourished and, therefore, immunocompromised that a global pandemic goes well beyond COVID into Bubonic Plague territory. Maybe peoples faith in the system becomes so thoroughly damaged that law breaks down generally, forcing those ultra rich to devote so many resources to security the people providing the security become the new elite. Allowing "position" (in Classical Economic parlance, "Land") to be in itself a source of private revenue sows the seeds of destruction for a progressing society.
Of course, once enough people die and enough capital is destroyed, society starts over again, going once again through an age where labor is in the drivers seat, until population and capital base recovers.
Earning revenue by caring for your customers and the industry takes strategic direction, time, money and effort, and the kind of effort needed is different between industries.
Earning revenue by sucking the living shit out of a company works (at least temporarily) for any industry and a multinational C-suite executive can employ it to any industry to give themselves the guise of success.
It's like instead of cooking and following a recipe, just take all the ingredients and stick it into a blender and call the smoothie a meal. You'll get sustenance but you ruined what made food interesting.
Capitalism working as intended.
Isn’t the whole point of pest control to kill ‘em [the pests] dead? Like, to have recurring business from the same customer one would have to not actually solve their problem. Barring any reintroduction of pests with seasonality as you suggested, or otherwise.