“Nor any drop to drink.”
It was a year ago this week that I first launched this blog, and when a friend shared the above video the other day, it reminded me why I choose to write about digital-age issues, the rights of artists and creators, and the assertion of the humanistic over the technological: it’s because I believe the economics of the internet too often reflect exaggerated corporate values disguised as social values. I’ve produced videos similar to this one, have sat down with CEOs to record no small amount of gibberish in my career, but Nestle CEO Peter Brabeck-Letmathe appears to be a paragon in the art of believing one’s own bullshit. When a guy calls “extreme” the assertion that water is a human right, it’s probably time to break out the pitchforks and torches. If the molecule that makes all life possible isn’t a human right, then there are no human rights. Of course, Nestle has long been featured in many a rogues gallery among watchdog organizations for a range of abuses around the world, including its purchase of cocoa harvested by child slaves in Africa.
There’s nothing wrong with corporations, just corporate culture; and it’s my belief that for about a half-century, we’ve been nurturing a mindset so detached from social responsibility that it should really be no surprise when executives at the top of the hill espouse viewpoints bordering on depravity. More to the point, this dissociative behavior is not exclusive to wealthy CEOs. For everyone you know who might want to defenestrate the architects of the mortgage-backed securities fraud, you probably know just as many people who privately think, “I wish I’d been in on that.” And the truth is these corrupt bubbles are often pumped up as much by greedy individuals and small entities tailgating the bigger players in these schemes. We have trained ourselves to pursue short-term, high-return ventures regardless of their value or toxicity to society overall. And the sad reality is that the economy we have fostered leaves us with little choice other than to become social cannibals. As the middle class in the developed world is hollowed out by the schemes of the uber-wealthy, those in the middle begin to recognize that a modest and sustainable existence is nearly impossible; and so we become schemers ourselves, assuming that the only security lies in rapid wealth accumulation by whatever means. Victims be damned.
I have believed for a long time that our economic woes are cultural more than they are systemic, and if this is true, it means things will have to get really bad before a new generation redefines its principles out of necessity. And that brings us to the massive influence of Silicon Valley and the many populist promises of Web 2.0. The marketing is an ongoing montage of human potential, entrepreneurism, innovation, global connectivity, and a better quality of life for more people — all set to the tune of some world-music anthem. To watch the commercials, one gets the idea that all we need is to endow every individual with a smartphone, and human potential becomes limitless. If we just plug in, we can all live beautiful, upper-middle-class lives, dress like hipsters, and share our beautiful experiences with one another through social media. Meanwhile, I meet more American millennials who have no idea what they want to do with themselves, partly because jobs are scarce and the market is flooded with educated people.
The underlying message emanating from the internet industry is indeed one that promotes tearing down existing systems (i.e. “barriers”) because technology “empowers the individual.” And there is some truth in these promises evidenced by many entrepreneurial and grassroots enterprises that would not exist without the digital revolution; but there is also an illusion of personal empowerment that I think blinds many to the same old corporate interests behind all the feel-good PR.
My concern is that the internet industry, both tangibly and ideologically, represents everything that’s already dangerous about corporate culture, only on steroids. Take a step back from the apparent vastness of the web and consider how few major corporations profit from most of our activity. Name another Facebook. Name another Amazon. Name another Google. Web 2.0 is a highly circumscribed environment owned by a small number of corporations that don’t employ very many people. Moreover, if we’re going to be brutal about it, the most successful web business are fundamentally exploitative in nature. Whether we’re talking about social media, a news aggregator, music streaming, some sophomoric diversion site, a YouTube, or a torrent, the business model is clear — drive traffic to paying advertisers without investing much or anything in the production of content. This is the underlying reason why the industry is antagonistic to intellectual property (and sometimes even privacy) rights — because such constructs are just a nuisance to the money-for-nothing model that is the foundation of most of these self-proclaimed innovations in the market. “Water is not a human right” is a message that supports Nestle’s bottom line. “Privacy and IP aren’t civil rights” are messages that support the bottom line of most high-profit web companies.
We may be in danger of very rapidly expanding the WalMart model throughout multiple sectors of the economy by having too much faith in these technological promises. The big-box retailer is monopolistic and exerts excessive pressure on suppliers. As consumers, we see lower prices at the store but too often fail to realize that we’re part of a vicious cycle that actually leaves us with fewer dollars to spend in the first place and even forces manufacturers to export labor overseas where workers may be mistreated in the production of inferior goods. We see this same, unilateral bargaining power as Apple’s new music streaming service negotiates licensing rates with the major publishers; we’ll see it as YouTube negotiates with entities like the NFL and as Google inserts itself more directly into the filmed-entertainment business. Instead of diversity and competition, which the web promises, we seem to be fostering consolidated wealth and power not seen since the days of John D. Rockefeller. And although many people have come to look at the WalMart model holistically, we still tend to look at web enterprises only as consumers benefiting from all the cheap and free stuff.
There are social, moral, and financial reasons to be wary of our exuberant embrace of models that rapidly devalue goods and services, or principles like privacy, intellectual property, or common decency. Nevertheless, every day, some lobbyist or paid consultant or academic with a book to sell will extoll the value of devaluation. Not only do many of these theories remind me of Mr. CEO of Nestle defining water as a “food stuff,” it reminds me of an old joke . . .
A guy buys firewood at $1.50/lb and sells it to his customers for $1.25/lb. When he realizes he’s not making any money, he decides he needs a bigger truck.
The only problem with your comments is that Peter Brabeck-Letmathe is at least partially right. Communism has proven not to have worked…all the “Social Democracies” are broke, with a few exceptions…notably Germany and Scandinavia, and they’re getting more stressed out daily. Working harder does create more work because each little cog in the economic system effects lots of other cogs, and working less hours puts less cogs into play. One only has to look at places in Africa to see the result of really, really well-meaning liberal bullshit that has gone terribly wrong. In the 50’s people from the 1st world went into villages that were self-sustaining at 3000 people, brought them western medicine and antibiotics, and the infant mortality rate dropped from 4 out of 5 to 1 out of 5…and just a few generations later, those same villages have 20,000 people in them…they do not have enough water, arable land, land to graze their cattle…and the world bank moves in, tells them they must now grow cash crops to trade for food…
Corporate bullshit is still bullshit, but we have governments that promote one of two kinds of welfare, either social welfare or corporate welfare…It just depends on who is in power. In my very humble opinion, I believe that those who ignore Thomas Malthus do so at their peril, and that human nature is to always try to game the system…and that’s why it breaks down. So where we ARE on the same page is here: The government cannot allow monopolies of any kind…Internet, Communications, Industrials…the glory of human beings is to always be able to invent something that’s just a little bit better than what we have now…and the government should encourage that instead of getting in the way of it.
But I’m loathe to call this guy an asshole…he just sees the picture from his perspective…If you proclaim water as a “Right”, people will assume it costs nothing…and soon we will have water wars…
Thanks for commenting. I believe we may one day have water wars no matter what we call it, not that I want to get into a protracted thing about water and Nestle. I believe I know what he sees, and he is very quick to point to the number of people employed by Nestle, which is not irrelevant, but isn’t the point either, especially when sovereignty is also at play. Does any corporation have the right to privatize a natural resource without which nothing can live and do so anywhere on Earth? I don’t think it’s fundamentally communistic to determine certain rights exist and to decide collectively to protect them. The water that comes out of my American, capitalist faucet is potable because of public policy and public works (which is a light form of collectivism); and if those policies or systems are weakened for the sake of corporate interest, the water tends to go bad and people get hurt. Everything endeavor has a cost but not necessarily a profit motive.
Hoo-whee.
Well, I watched the video and – hope I don’t lose all respect you might have had for me – I actually have to agree with him on the water part.
There are many good reasons why water shouldn’t be considered a human right. My personal option – stemming from my philosophy of human rights – is that it isn’t because it cannot be derived from the right of self-determination nor the principle of equality of men (I like my philosophy simple). Taking a more practical approach, obtaining water we would consider fit to drink these days requires a lot of infrastructure and thus work. Declaring it a human right means that someone has to do that work for free (since charging for providing water would be a violation of the customer’s human rights). Whenever we get into “consumption rights”, we’re starting down a very slippery slope and you – like everyone on our side of the copyright debate – should know this.
That isn’t to say that we – as a society – cannot agree that it is better that everyone be assured of reliable access to water and we have numerous ways of doing that: starting from public utilities, financed from taxes, right up to “water subsidies” for the economically disadvantaged, who are unable to pay market rates. I’d even say that it’s generally a better idea all around that we do. However, I do agree with Brabeck that NGOs tend to advance extreme positions, mostly because they couldn’t give a damn about who’ll be paying for their ideas (it won’t be them).
On the broader topic of the post, I believe that the root of the problem is in how we have managed to lose sight of the fundamental role of the modern society: making sure that nobody has too much power. This starts in government – with separation of powers and the system of checks and balances – and should be replicated throughout the whole of society. We have anti-trust laws (in theory, at least) to ensure that no single company is able to dominate the market. We have unions and labour laws to ensure that employers aren’t able to abuse their dominant economic position over their employees. Hell, even in the copyright realm we have things like the idea-expression distinction and fair use to ensure that copyright holders cannot stifle other people’s creativity.
What Brabeck fails to see, rather humorously (towards the end of the video) is that whilst the line about us being better off than at any previous point in recorded history was generally true up to a couple of decades ago, it is rapidly becoming untrue. My general impression is that things have deteriorated horribly compared to the Nineties – and I’m not talking about the music biz here – and they look to be going down further. Unless you happen to be the CEO of the 27th biggest company in the world and that’s because your situation is the direct result of making things worse for the rest of us. I believe most of it is due to the problems outlined in the previous paragraph.
My biggest fear in all of this is that the chances of a turnaround are depressingly small, mostly due to the fact that there’s nobody prepared to offer a sensible solution. The right are generally interested in keeping the gravy train chugging along and the left are too tied up in their ideologies – generally completely detached from reality – to offer a sensible diagnosis, let alone the cure. To their credit, they can see the symptoms, but I’m hearing a lot more magical thinking than rational programs from that side of the political spectrum.
Perhaps all that’s left is to go down with a song, if we’re going down anyway.
Faza, I doubt I could ever lose respect for you, and if I did the folly would be mine. Apropos of my response to Overviper, I agree with you in principle, particularly with regard to NGOs and their fantasies. But it seems to me that public works (infrastructure) are the manifestation of a collective agreement that everyone has a basic right to certain things like clean air and potable water, which is not to suggest that these things are to be made available for free but that they are to be paid for collectively, which is what we do in polite society. Moreover, it seems to me that our better angels make these choices based on the principle of equality. In the US, it remains the law of the land that every child has a right to an education (although not everyone feels that way or can agree about what it means to be educated).
The deterioration you describe is one I attribute to the application of corporate values to all things, which is why I think there is a cultural connection between those in my country who want to tear down, say, the EPA and those who want to unravel copyright. Those are two groups likely to be at opposite ends of the political spectrum, both who I believe have forgotten why these systems were built in the first place. We have a lot of broken systems that need repair, but I suspect frustration and fear lead us to want to throw out the baby with the bottled water.
At least we can be comforted by the fact that EVERYONE seems to feel Wifi is a basic human right.
Old Industry CEO makes offensive comment about water –> let’s rant against the internet!
Sometimes this blog borders on pathological.
Well put. Thank you.
Anon seems to think there’s a difference, but I think the parallels are clear…I forget who said “Taxes are the price we pay for civilization”, but that seems to be on the nose. The only thing that government at all levels really argues about is how to spend the money. Just as water is one of those things that are deemed to be for the “collective good” (and by the way, this is in the first paragraph of the US Constitution – ” provide for the general welfare”)…so might online access soon be deemed to be one of those things that are important enough not be left to a few profit-driven corporations to be in charge of. We were supposed to have a nationwide fiber-optic network by now that could handle very high bandwidth. Why don’t we? Because a few companies are stifling the competition that it would inevitably bring…and that would eat into their profits. So if you’re going to make the argument that a monopoly is good for the consumer (which they did), you can’t then make the argument that something BETTER for the consumer costs too much for you to implement. It is at junctures like these that government needs to take a more active role, not go with the corporate bullshit, and do the right thing for the citizens…but since our legislator’s votes are sold off to the highest bidder, this doesn’t happen. If we allow a few corporations to be able to dictate the price for water, does anyone really believe the price will go down? That doesn’t mean that water is a “Right”…it means that the citizenry needs to take an active role in how things are run…and not stare zombie-like into a TV screen that feeds them daily doses of Jersey Shore and Honey Boo-Boo…
I’m not holding my breath…
David: as a once practitioner of the PR dark arts, I am reminded of Bonaparte’s famous admonition: “Never ascribe to malice that which can be adequately explained by incompetence.” I highly doubt that the CEOs words were his own, or that this video reflects his feelings on the matter, (if he had any at all.) That said, the soulless corporation has become more so, as we the citizenry, have abdicated (or sold, or given proxy) our rights to demand social responsibility. It is the minions I fear, not the executives; the minions have far more to lose.
Wise words. As a former colleague in spirit, I would never presume to underestimate the power of incompetence.