>The following research overviews and citations were strategically prompted by myself after the essay was written to provide additional context for the reader and are designed to give you resources to do your own research. Most prompts are based on academic or industry research I've been studying for years and were top of mind while writing.
## Cycles of Capitalism Overview
>Here are the strategically prompted AI research rabbit holes for any curious readers. Original prompt by me, run through Claude: *create a 500 word supporting essay on the following prompt--Cycles of capitalism since the industrial age and our current transitional phase from industrial and managerial capitalism to information and surveillance capitalism.
The transformation of capitalism since the Industrial Revolution represents a series of profound shifts in how wealth is created, managed, and distributed throughout society. Each phase has been marked by distinctive technological innovations that fundamentally altered the relationship between capital, labor, and information.
The first major transformation began with industrial capitalism in the late 18th century, characterized by the mechanization of production and the rise of factories. This period saw the emergence of a new working class, the concentration of capital in urban centers, and the establishment of time-based labor systems. The steam engine and assembly line became the dominant technologies, reshaping not just production but the very fabric of society.
By the early 20th century, industrial capitalism evolved into managerial capitalism, exemplified by figures like Frederick Taylor and his principles of scientific management. This phase emphasized efficiency, hierarchical organization, and the separation of ownership from control. Large corporations emerged, managed by professional executives rather than owner-operators. The dominant technologies were mass production systems and organizational hierarchies that treated both workers and consumers as standardized units within a larger machine.
The late 20th century witnessed the rise of financial capitalism, where the creation and manipulation of financial instruments became a primary source of profit. This period saw the decoupling of financial markets from traditional manufacturing and the emergence of global capital flows. Computing technology enabled instantaneous worldwide transactions and complex financial modeling, fundamentally changing how value was created and measured.
Now, we find ourselves in a transition to information capitalism, rapidly evolving into surveillance capitalism. This new phase, theorized by scholars like Shoshana Zuboff, is marked by the commodification of personal data and behavior prediction. The dominant technologies are no longer physical machines but algorithms and artificial intelligence systems that extract value from human experience itself.
Surveillance capitalism represents a fundamental shift in how capital accumulates. Instead of merely profiting from the production and sale of goods or services, it generates wealth by predicting and modifying human behavior through the continuous monitoring and analysis of personal data. Social media platforms, search engines, and smart devices serve as infrastructure for this new economic model, creating what Zuboff calls "behavioral surplus" – the excess data beyond what's needed for service improvement, used instead for prediction products sold in behavioral futures markets.
This transformation has profound implications for democracy and individual autonomy. Unlike previous forms of capitalism that primarily extracted value from physical labor or financial transactions, surveillance capitalism mines the intimate details of human experience. The algorithm-driven information systems you describe in your main text are not merely tools for content delivery – they are the fundamental infrastructure of this new economic order.
As we grapple with the challenges of algorithmic bias and information decay in crisis situations, it's crucial to understand that these are not mere technical glitches but manifestations of an economic system designed to prioritize behavioral prediction and control over human needs and community resilience. The centralization of algorithmic control and the deterioration of local information networks are not accidents but features of a system that views human experience as raw material for economic extraction.
Here are the academic resources:
1. Industrial Capitalism
- [How the Industrial Revolution Shaped Modern Capitalism](https://www.law.georgetown.edu/denny-center/blog/industrial-revolution/)
2. Managerial Capitalism
- [The Visible Hand: The Managerial Revolution in American Business - Wikipedia](https://en.wikipedia.org/wiki/The_Visible_Hand:_The_Managerial_Revolution_in_American_Business)
3. Financial Capitalism
- [Finance Capitalism Wiki](https://en.wikipedia.org/wiki/Finance_capitalism)
4. Information Capitalism
- [The Information Age: Economy, Society and Culture - Wikipedia](https://en.wikipedia.org/wiki/The_Information_Age:_Economy,_Society_and_Culture)
5. Surveillance Capitalism
- [The Age of Surveillance Capitalism - Wikipedia](https://en.wikipedia.org/wiki/The_Age_of_Surveillance_Capitalism)
## Genesis of Surveillance Capitalism
> AI Prompt: Please elaborate on the following including academic references: *The business decisions of Google after the DotCom bubble popped and their drive to achieve profit and sustainability at any cost, resulting in the genesis of Surveillance Capitalism.
The aftermath of the 2000 dot-com crash marked a pivotal moment in digital history, as Google faced intense pressure from investors to transform its revolutionary search technology into a profitable enterprise. This pressure catalyzed a fundamental shift in how digital companies approached user data, leading to the birth of surveillance capitalism.
Google's breakthrough came with the realization that the "digital exhaust" of users' search behaviors – their clicks, queries, and browsing patterns – could be repurposed as a predictive tool for advertising. This surplus behavioral data transcended its original purpose of service improvement, becoming instead a proprietary behavioral surplus that could be analyzed and sold to advertisers.
The company's success in monetizing user behavior through targeted advertising established a new economic model. By combining user data with advanced analytics, Google created prediction products that could anticipate user behavior with unprecedented accuracy. This model proved so profitable that it quickly became the dominant paradigm for internet companies, fundamentally altering the relationship between businesses and users.
This transformation represented more than a mere business innovation – it marked the emergence of a new form of capitalism. Users were no longer simply customers but unwitting suppliers of raw behavioral data. The free services offered by Google became extraction mechanisms for behavioral surplus, establishing a precedent that would reshape the entire digital economy and our understanding of privacy.
Further Reading:
1. [High tech is watching you](https://news.harvard.edu/gazette/story/2019/03/harvard-professor-says-surveillance-capitalism-is-undermining-democracy/)
2. [Data Mining for Security at Google](https://web.stanford.edu/class/cs259d/lectures/Session11.pdf)
3. [The Economics of Privacy](https://www.law.berkeley.edu/wp-content/uploads/2015/11/The-Economics-of-Privacy.pdf)
4. [EFF--Behind the One-Way Mirror: A Deep Dive Into the Technology of Corporate Surveillance](https://www.eff.org/wp/behind-the-one-way-mirror)
5. [Behavioral Surplus](https://medium.com/@fabiodeoliveiraribeiro/behavioral-surplus-the-new-world-to-be-conquered-and-owned-40c90f4cf027)
## Facebook's Evolution
>AI Prompt: *The adoption of surveillance driven revenue models by Facebook in its early stages of growth. And how Facebook then enabled Cambridge Analytica and the genocide in Myanmar.
Facebook's evolution from a college social network to a global surveillance apparatus demonstrates how the adoption of data-driven revenue models can lead to catastrophic real-world consequences. Following Google's profitable example, Facebook embraced surveillance capitalism by transforming users' social connections, personal relationships, and emotional expressions into commodified data points for advertisers.
This business model required increasingly sophisticated algorithms to maximize user engagement and data collection. Facebook's tools for micro-targeting and behavioral prediction became so powerful that they enabled Cambridge Analytica to harvest millions of user profiles for political manipulation, fundamentally impacting democratic processes worldwide.
Even more tragically, Facebook's algorithmic amplification of emotional content and the company's insufficient content moderation in non-English languages contributed to real-world violence. In Myanmar, military officials systematically used Facebook to incite hatred and coordinate attacks against the Rohingya minority. The platform's algorithms, optimized for engagement, amplified hate speech and misinformation, while the company's inadequate local language moderation failed to identify and remove dangerous content.
This cascade of events reveals how surveillance capitalism's imperative to collect and monetize behavioral data can override basic human rights concerns. Facebook's prioritization of growth and engagement metrics over safety and social responsibility demonstrates the inherent dangers of allowing surveillance-based business models to operate without adequate oversight or ethical constraints.
Further Reading:
1. [The Facebook Files: A Wall Street Journal Investigation](https://www.wsj.com/articles/the-facebook-files-11631713039)
2. [# Myanmar: Facebook’s systems promoted violence against Rohingya- Amnesty International](https://www.amnesty.org/en/latest/news/2022/09/myanmar-facebooks-systems-promoted-violence-against-rohingya-meta-owes-reparations-new-report/)
3. [Democratic responsibility in the digital public sphere](https://onlinelibrary.wiley.com/doi/10.1111/1467-8675.12670)
4. [Jillian York: The global impact of content moderation](https://www.article19.org/resources/the-global-impact-of-content-moderation/)
## Media Consolidation & Twitter's Acquisition
>AI Prompt: *Please summarize Media consolidation in America over the past 2 decades and the acquisition of Twitter by Musk and its impacts on media ownership and algorithm control.
The past two decades have witnessed an unprecedented consolidation of media ownership in America, fundamentally altering the landscape of information distribution and democratic discourse. Traditional media conglomerates have merged into ever-larger entities while tech platforms have emerged as dominant gatekeepers of digital information, creating a complex web of corporate control over public communication channels.
This consolidation accelerated following the Telecommunications Act of 1996, which relaxed ownership restrictions and triggered a wave of mergers. By the early 2000s, six major corporations controlled approximately 90% of U.S. media outlets. Subsequent mergers, such as AT&T's acquisition of Time Warner and Disney's purchase of 21st Century Fox, further concentrated media power. This consolidation extended beyond traditional media into digital platforms, with Facebook's acquisitions of Instagram and WhatsApp, and Google's purchase of YouTube representing significant consolidations of digital information channels.
The 2022 acquisition of Twitter by Elon Musk marked a significant shift in this landscape, representing a new model of individual billionaire ownership of major information platforms. Unlike traditional media mergers driven by corporate strategy, Musk's $44 billion takeover reflected the growing trend of wealthy individuals seeking direct control over information distribution channels. This transition from institutional to individual ownership has profound implications for information control and algorithmic governance.
Under Musk's ownership, Twitter has undergone dramatic changes in content moderation policies and algorithmic priorities. The platform's recommendation algorithms have been modified to amplify certain voices while suppressing others, demonstrating how individual ownership can directly impact information distribution at a global scale. These changes have particularly affected breaking news coverage and emergency information distribution, as highlighted by recent natural disasters and political events.
The impact of this ownership transition extends beyond Twitter itself. The platform's role as a primary source of breaking news and real-time information means that changes to its algorithmic systems have ripple effects throughout the broader media ecosystem. Traditional news organizations, emergency services, and community information networks that relied on Twitter's previous infrastructure have had to adapt to new patterns of information flow and visibility.
This concentration of algorithmic control in the hands of individual owners represents a new frontier in media consolidation. Unlike traditional media mergers, which were subject to regulatory oversight and public interest considerations, the private ownership of digital platforms allows for rapid, unilateral changes to information distribution systems that affect millions of users worldwide.
Further Reading:
1. [Concentration of Media Ownership Wiki](https://en.wikipedia.org/wiki/Concentration_of_media_ownership)
2. [Forbes 2016 - These 15 Billionaires Own America's News Media Companies](https://www.forbes.com/sites/katevinton/2016/06/01/these-15-billionaires-own-americas-news-media-companies/)
3. [Democratic self-government and the algocratic shortcut: the democratic harms in algorithmic governance of society](https://link.springer.com/article/10.1057/s41296-023-00656-y)
4. [Media Consolidation Means Less Local News, More Right Wing Slant](https://www.gsb.stanford.edu/insights/media-consolidation-means-less-local-news-more-right-wing-slant)