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Is there any company that you find sus? (One that isn't owned by Lex Luthor.)
Black Rock's potential for financial destruction is shocking, 9 trillion dollars of barely constrained capitalism. Whilst we're talking private equity, Apollo bought hospitals and nursing homes, rapidly decreased quality of care whilst secretly purchasing life insurance on the patients they were actively neglecting and killing.
Bayer is really living up to its origin as IG Farben. Monsato is one of their subsidiaries just to give you a nice taster on what they do. The apple barely rolled out of the tree.
Never use a Huawei phone. They sell the most phones of any company in the world and their cyber security is deliberately waffle shaped.
Swarovski Crystals started making rifle scopes for exactly who you think - willingly - and historians aren't allowed to release their findings. Love that. They're still making those gun parts by the way.
Kodak (who previously made key components for C4, triggers, fuses, detonators and hand grenades all through WWII using forced labor, selling to both sides through Switzerland) still have weapons grade uranium. For some reason. Don't ask. Nothing to do with their previous work on the Manhattan Project.
You probably know about Nestlé killing babies and targeting water ownership in drought-stricken regions of both the US and abroad. This didn't look so good, so they sold it to private equity firm... BlueTriton... formerly Nestlé.
I personally find it a bit suspicious that the Libyan-Chad war is also called the Toyota War. Seems like the anti-paramilitary regulations didn't really work, huh.
Purdue Pharma... the US Government... Sodexo... Exxon, Chiquita...
But for legal reasons, this is a joke :)
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The specific process by which Google enshittified its search
I'm touring my new, nationally bestselling novel The Bezzle! Catch me SATURDAY (Apr 27) in MARIN COUNTY, then Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!
All digital businesses have the technical capacity to enshittify: the ability to change the underlying functions of the business from moment to moment and user to user, allowing for the rapid transfer of value between business customers, end users and shareholders:
https://pluralistic.net/2023/02/19/twiddler/
If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan
Which raises an important question: why do companies enshittify at a specific moment, after refraining from enshittifying before? After all, a company always has the potential to benefit by treating its business customers and end users worse, by giving them a worse deal. If you charge more for your product and pay your suppliers less, that leaves more money on the table for your investors.
Of course, it's not that simple. While cheating, price-gouging, and degrading your product can produce gains, these tactics also threaten losses. You might lose customers to a rival, or get punished by a regulator, or face mass resignations from your employees who really believe in your product.
Companies choose not to enshittify their products…until they choose to do so. One theory to explain this is that companies are engaged in a process of continuous assessment, gathering data about their competitive risks, their regulators' mettle, their employees' boldness. When these assessments indicate that the conditions are favorable to enshittification, the CEO walks over to the big "enshittification" lever on the wall and yanks it all the way to MAX.
Some companies have certainly done this – and paid the price. Think of Myspace or Yahoo: companies that made themselves worse by reducing quality and gouging on price (be it measured in dollars or attention – that is, ads) before sinking into obscure senescence. These companies made a bet that they could get richer while getting worse, and they were wrong, and they lost out.
But this model doesn't explain the Great Enshittening, in which all the tech companies are enshittifying at the same time. Maybe all these companies are subscribing to the same business newsletter (or, more likely, buying advice from the same management consultancy) (cough McKinsey cough) that is a kind of industry-wide starter pistol for enshittification.
I think it's something else. I think the main job of a CEO is to show up for work every morning and yank on the enshittification lever as hard as you can, in hopes that you can eke out some incremental gains in your company's cost-basis and/or income by shifting value away from your suppliers and customers to yourself.
We get good digital services when the enshittification lever doesn't budge – when it is constrained: by competition, by regulation, by interoperable mods and hacks that undo enshittification (like alternative clients and ad-blockers) and by workers who have bargaining power thanks to a tight labor market or a powerful union:
https://pluralistic.net/2023/11/09/lead-me-not-into-temptation/#chamberlain
When Google ordered its staff to build a secret Chinese search engine that would censor search results and rat out dissidents to the Chinese secret police, googlers revolted and refused, and the project died:
https://en.wikipedia.org/wiki/Dragonfly_(search_engine)
When Google tried to win a US government contract to build AI for drones used to target and murder civilians far from the battlefield, googlers revolted and refused, and the project died:
https://www.nytimes.com/2018/06/01/technology/google-pentagon-project-maven.html
What's happened since – what's behind all the tech companies enshittifying all at once – is that tech worker power has been smashed, especially at Google, where 12,000 workers were fired just months after a $80b stock buyback that would have paid their wages for the next 27 years. Likewise, competition has receded from tech bosses' worries, thanks to lax antitrust enforcement that saw most credible competitors merged into behemoths, or neutralized with predatory pricing schemes. Lax enforcement of other policies – privacy, labor and consumer protection – loosened up the enshittification lever even more. And the expansion of IP rights, which criminalize most kinds of reverse engineering and aftermarket modification, means that interoperability no longer applies friction to the enshittification lever.
Now that every tech boss has an enshittification lever that moves very freely, they can show up for work, yank the enshittification lever, and it goes all the way to MAX. When googlers protested the company's complicity in the genocide in Gaza, Google didn't kill the project – it mass-fired the workers:
https://medium.com/@notechforapartheid/statement-from-google-workers-with-the-no-tech-for-apartheid-campaign-on-googles-indiscriminate-28ba4c9b7ce8
Enshittification is a macroeconomic phenomenon, determined by the regulatory environment for competition, privacy, labor, consumer protection and IP. But enshittification is also a microeconomic phenomenon, the result of innumerable boardroom and product-planning fights within companies in which would-be enshittifiers try to do things that make the company's products and services shittier wrestle with rivals who want to keep things as they are, or make them better, whether out of principle or fear of the consequences.
Those microeconomic wrestling-matches are where we find enshittification's heroes and villains – the people who fight for the user or stand up for a fair deal, versus the people who want to cheat and wreck to make things better for the company and win bonuses and promotions for themselves:
https://locusmag.com/2023/11/commentary-by-cory-doctorow-dont-be-evil/
These microeconomic struggles are usually obscure, because companies are secretive institutions and our glimpses into their deliberations are normally limited to the odd leaked memo, whistleblower tell-all, or spectacular worker revolt. But when a company gets dragged into court, a new window opens into the company's internal operations. That's especially true when the plaintiff is the US government.
Which brings me back to Google, the poster-child for enshittification, a company that revolutionized the internet a quarter of a century ago with a search-engine that was so good that it felt like magic, which has decayed so badly and so rapidly that whole sections of the internet are disappearing from view for the 90% of users who rely on the search engine as their gateway to the internet.
Google is being sued by the DOJ's Antitrust Division, and that means we are getting a very deep look into the company, as its internal emails and memos come to light:
https://pluralistic.net/2023/10/03/not-feeling-lucky/#fundamental-laws-of-economics
Google is a tech company, and tech companies have literary cultures – they run on email and other forms of written communication, even for casual speech, which is more likely to take place in a chat program than at a water-cooler. This means that tech companies have giant databases full of confessions to every crime they've ever committed:
https://pluralistic.net/2023/09/03/big-tech-cant-stop-telling-on-itself/
Large pieces of Google's database-of-crimes are now on display – so much, in fact, that it's hard for anyone to parse through it all and understand what it means. But some people are trying, and coming up with gold. One of those successful prospectors is Ed Zitron, who has produced a staggering account of the precise moment at which Google search tipped over into enshittification, which names the executives at the very heart of the rot:
https://www.wheresyoured.at/the-men-who-killed-google/
Zitron tells the story of a boardroom struggle over search quality, in which Ben Gomes – a long-tenured googler who helped define the company during its best years – lost a fight with Prabhakar Raghavan, a computer scientist turned manager whose tactic for increasing the number of search queries (and thus the number of ads the company could show to searchers) was to decrease the quality of search. That way, searchers would have to spend more time on Google before they found what they were looking for.
Zitron contrasts the background of these two figures. Gomes, the hero, worked at Google for 19 years, solving fantastically hard technical scaling problems and eventually becoming the company's "search czar." Raghavan, the villain, "failed upwards" through his career, including a stint as Yahoo's head of search from 2005-12, a presiding over the collapse of Yahoo's search business. Under Raghavan's leadership, Yahoo's search market-share fell from 30.4% to 14%, and in the end, Yahoo jettisoned its search altogether and replaced it with Bing.
For Zitron, the memos show how Raghavan engineered the ouster of Gomes, with help from the company CEO, the ex-McKinseyite Sundar Pichai. It was a triumph for enshittification, a deliberate decision to make the product worse in order to make it more profitable, under the (correct) belief that the company's exclusivity deals to provide search everywhere from Iphones and Samsungs to Mozilla would mean that the business would face no consequences for doing so.
It a picture of a company that isn't just too big to fail – it's (as FTC Chair Lina Khan put it on The Daily Show) too big to care:
https://www.youtube.com/watch?v=oaDTiWaYfcM
Zitron's done excellent sleuthing through the court exhibits here, and his writeup is incandescently brilliant. But there's one point I quibble with him on. Zitron writes that "It’s because the people running the tech industry are no longer those that built it."
I think that gets it backwards. I think that there were always enshittifiers in the C-suites of these companies. When Page and Brin brought in the war criminal Eric Schmidt to run the company, he surely started every day with a ritual, ferocious tug at that enshittification lever. The difference wasn't who was in the C-suite – the difference was how freely the lever moved.
On Saturday, I wrote:
The platforms used to treat us well and now treat us badly. That's not because they were setting a patient trap, luring us in with good treatment in the expectation of locking us in and turning on us. Tech bosses do not have the executive function to lie in wait for years and years.
https://pluralistic.net/2024/04/22/kargo-kult-kaptialism/#dont-buy-it
Someone on Hacker News called that "silly," adding that "tech bosses do in fact have the executive function to lie in wait for years and years. That's literally the business model of most startups":
https://news.ycombinator.com/item?id=40114339
That's not quite right, though. The business-model of the startup is to yank on the enshittification lever every day. Tech bosses don't lie in wait for the perfect moment to claw away all the value from their employees, users, business customers, and suppliers – they're always trying to get that value. It's only when they become too big to care that they succeed. That's the definition of being too big to care.
In antitrust circles, they sometimes say that "the process is the punishment." No matter what happens to the DOJ's case against Google, its internal workers have been made visible to the public. The secrecy surrounding the Google trial when it was underway meant that a lot of this stuff flew under the radar when it first appeared. But as Zitron's work shows, there is plenty of treasure to be found in that trove of documents that is now permanently in the public domain.
When future scholars study the enshittocene, they will look to accounts like Zitron's to mark the turning points from the old, good internet to the enshitternet. Let's hope those future scholars have a new, good internet on which to publish their findings.
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan
#pluralistic#ed zitron#google#microincentives#constraints#enshittification#rot economy#platform decay#search#ben gomes#code yellow#mckinsey#hacking engagement#Prabhakar Raghavan#yahoo#doj#antitrust#trustbusting
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Helene McKinsey Abstraction ca. 1958 Oil on canvas 34 1/8 x 28 in.; 86.6775 x 71.12 cm. The Phillips Collection
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exxonmobil ad
#furryart#furry#coyote#exxonmobil#exxon#mobil#gore#blood#texas#trans#mckinsey & company#grindset#money#capitalism
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how do I get a kabru in my head.. this guy would do so well in a bullshit corporate job. he would know all the catalysing value addition streamlining optimising nonsense words. the management would love him. they'd call him a go getter and a pleasure to work with. he would fool the clients into thinking their money is being spent well. he would get so many promotions. how do I become him I just need a fucking raise to pay rent and they hate people who can't fake a response to "how's it going"
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getting older means having a growing shit list of specific corporations you'd snap out of existence given the godlike ability to do so
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Of all the things I have actual knowledge of, I don't think I expected John to cover consulting firm McKinsey. In my time in the audit industry (I think this is the first time I'm mentioning working in finance! It sucked), it was obvious the business community had a severe case of fawning over them undeservedly. Every McKinsey employee I ever met was an entitled prick, unable to critically think their way out of a paper bag, or both.
I am not shocked that their best skill as a company seems to be "acting as a puppet of the Saudi regime and getting journalists killed".
#john oliver#last week tonight#last week tonight with john oliver#mckinsey#baby opioids as a concept almost destroyed my soul as well#Youtube
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Helene McKinsey Herzbrun, Abstraction, ca. 1958
oil on canvas
34 1/8 x 28 in.; 86.6775 x 71.12 cm.
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my favorite under appreciated trope is a character moving to the big city and it just fucking sucks. first day? a piano falls on them. second day? gonorrhea from the toilets. third day? mugged by a rat.
the more realistic side of this is that they think the city is gonna rock and then the rent is high and transit sucks and corporate life is miserable and they hate their roommates.
It sets up an amazing reason for the character to want to change something in their life. excellent for a young adult fresh out of a rural college or smth. they think working for mckinsey will be fun (it’s not) and so three weeks later they’re like “yeah sure let’s join a cult—i’ll do inadvisable things otherwise”
#tropes#trope#writing#writeblr#writer#writers on tumblr#crack#idk#it could also be#fiction#of another kind#fuck mckinsey#fuck poor public transit#fuck rent prices#fuck the housing market#etc#etc etc etc
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The 2020 election fried my brain omg…I just remembered how many people were running it was insane…why do I still retain so much of that information it was like the biggest reality tv show competition ever
#Amy klobochar being…Zola Jesus cousin and eating her salad w a comb#Cory booker…gay and w Rosario Dawson….Marianne Williamson was the best thing to come out of that#the unraveling of Bernie sanders….Elizabeth warren being a snake#Pete buttigieg rigging the Iowa caucus …#and being canceled and accused of being a fake gay for working at McKinsey
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Canada's privatised shadow civil service
PJ O’Rourke once quipped that “The Republicans are the party that says government doesn’t work and then they get elected and prove it.” But conservative parties have unlikely allies in the project to discredit public service: neoliberal “centrist” parties, like Canada’s Liberal Party.
If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/01/31/mckinsey-and-canada/#comment-dit-beltway-bandits-en-canadien
The Liberals have become embroiled in a series of scandals over the explosion of lucrative, secretive private contracts awarded to high-flying consultancy firms who charge hundreds of times more than public sector employees to do laughably bad work.
Front and centre in the scandal, is, of course, McKinsey, consligieri to opioid barons, murdering Saudi princes, and other unsavoury types. McKinsey was brought in to “consult” on strategy for the Business Development Bank of Canada (BDC), a Crown corporation that gives loans to Canadian businesses.
https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914
While there, McKinsey performed as per usual, veering from the farcical to the grotesquely wasteful. Most visible was the decision to spend $320,000 on a livecast fireside chat between BDC president Isabelle Hudon and a former Muchmusic VJ that was transmitted to all BDC employees, which featured Hudon and the host discussing a shopping trip they’d taken together in Paris.
Meanwhile, BDC has been hemorrhaging top people, which leaving the organisation with many holes in its leadership — the kind of thing that would pose an impediment to its lofty goals of substantially increasing the support it gives to businesses run by women, First Nations people and people of color.
Hudon — a Trudeau appointee — vowed to “start from scratch” when she took over the organisation, but then went ahead and did what her predecessors had done: hired outside consultants who billed outrageous sums to repurpose anodyne slide-decks full of useless, generic advice, or unrealistic advice that no one could turn into actual policy. They also sucked up BDC employees’ time with endless interviews.
The BDC has (reluctantly) disclosed $4.9m in contracts to McKinsey. The CBC also learned that Hudon parachuted several cronies from her previous job at Sun Life into top roles in the organisation, and that BDC had reneged on promised promotions for many long-term staffers. Hudon also repeatedly flew a chauffeur across the country from Montreal to BC to drive her around.
In Quebec, premier François Legault hired an army of McKinsey consultants at $35,000 per day to advise him on covid strategy, for a total bill of $8.6m. McKinsey’s contract with the province stipulated that they wouldn’t have to disclose their other clients, even in the event that they had conflicts of interest:
https://www.cbc.ca/news/canada/montreal/caq-legault-mckinsey-pandemic-consulting-1.6602374
The contract was kept secret, as was the long-running, $38m contract between McKinsey and the Hydro Quebec power authority:
https://ici.radio-canada.ca/nouvelle/1927738/mckinsey-hydro-quebec-consultants-barrages-affaires
Most of the bad press McKinsey gets revolves around the evil advice it gives — like when it advised opioid companies to pay cash bonuses to pharma distributors for every death-by-overdose in their territory (no, I’m not making this up):
https://pluralistic.net/2022/06/30/mckinsey-mafia/#everybody-must-get-stoned
But these rare moments of competence should be understood in the broader context in which McKinsey isn’t evil, they are merely utterly, totally fucking useless. The 2022 French Senate report on McKinsey really digs into this:
http://www.senat.fr/commission/enquete/2021_influence_des_cabinets_de_conseil_prives.html
They find that a quarter of the work McKinsey turned in was “unacceptable or barely acceptable in quality.” This is in line with the overall tenor of work performed by consultants. For example, when it came to giant Capgemini, the French Senate found that the work it provided was “of near-zero added value, indeed sometimes counterproductive.”
And yet, despite the expense and “near-zero added value,” hiring outside consultants is a reflex for neoliberal centrist leaders. Trudeau has presided over a massive expansion of the Canadian government’s reliance on outside consultants:
https://www.theglobeandmail.com/politics/article-liberals-spend-billions-more-on-outsourced-contracts-since-taking/
After campaigning on a promise to reduce outside consultancy, the Trudeau administration increased consultant spending by 40%, to $11.8 billion. This shadow civil service is not just more expensive and less competent that the real civil service — it is also far more opaque, able to fend off open records requests with vague gestures towards “trade secrecy.”
Since 2015, McKinsey has raked in $101.4m in federal contracts, even as the civil service has been starved of pay. Meanwhile, federal departments insist that they need to “protect Canada’s economic interests” by not disclosing outside contracts, and list their total spend at $0.00.
https://nationalpost.com/news/outsourcing-contracts-mckinsey-billions
The Professional Institute of the Public Service of Canada estimates that between 2011–21, the Canadian government squandered $18b on outside IT contracting that could have been performed by public servants. In 2022, the Government of Canada spent $2.3b on outsource IT contracts, while the wage bill for its own IT staff came in at $1.85b.
It’s not like these outside IT contractors are good at their jobs, either. The most notorious example is the ArriveCAN covid-tracking app for travellers, the contract for which was awarded to GCstrategies, a two-person shop in Ottawa, who promptly turned around and outsourced it to KPMG and other contractors, whom they billed to the government at $1,000–1,500/day, raking off 15–30% in commissions.
For months, the origins of the ArriveCAN app were a mystery, with the government insisting that the details of the contractors involved were “confidential.” But ArriveCAN was such a steaming pile of shit, and so many travellers (a population more likely to be well-off and politically connected than the median Canadian) had to deal with it, that eventually the truth came out.
The ArriveCAN scandal is ongoing — just last year, it cost the Canadian public $54m:
https://www.theglobeandmail.com/politics/article-arrivecan-subcontractors-multinationals/
Trudeau’s Liberals didn’t invent outsourcing high-stakes IT projects to incompetent grifters. Under Conservative PM Stephen Harper, Canada paid IBM to build Phoenix, an utterly defective payroll system for federal employees that stole millions from civil servants, bringing government to a virtual standstill. Thus far, the Government of Canada — which paid IBM $309m to develop Phoenix, as a “cost savings measure” — has paid $506m in damages to make good on Phoenix’s errors:
https://www.theglobeandmail.com/politics/article-ottawa-paid-out-400-million-in-phoenix-pay-compensation-to-federal/
The Liberals didn’t invent Phoenix — but they did deploy it, after campaigning on the wastefulness and incompetence of the Tories’ outsourcing bonanza. And after Phoenix crashed and burned, the Liberals increased outsourcing spending.
All of this is well-crystallized in last week’s Canadaland discussion between Jesse Brown and Nora Loreto:
https://www.canadaland.com/podcast/853-the-indulgent-consultant/
And on his Substack, Paul Wells proposes that the Senate — a largely ornamental institution in Canadian politics — is the unlikely check of last resort on the Liberals’ fetish for outsourcing:
There are former deputy ministers at the federal and provincial levels, secretaries to cabinet, a former Clerk of the Privy Council, a former chief of staff to a prime minister. A lot of them can remember the days when big decisions weren’t farmed out to firms that make their founders rich and are spared the rigours of accountability for their counsel. Surely some of them would like to shine a light?
https://paulwells.substack.com/p/shine-a-brighter-light-on-contract?
Image: Sam (modified) https://commons.wikimedia.org/wiki/File:The_Canadian_House_of_Commons.jpg
Presidencia de la República Mexicana (modified) https://commons.wikimedia.org/wiki/File:Justin_Trudeau_June_2016.jpg
CC BY 2.0 https://creativecommons.org/licenses/by/2.0/deed.en
[Image ID: The legislative chamber of Canada's House of Commons; behind the speaker's chair, the back wall has been replaced by an enormous $100 bill. The portrait on the $100 bill has been replaced with an unflattering, braying picture of Justin Trudeau. The Bank of Canada legend across the top of the note has been replaced by the McKinsey and Company wordmark.]
#pluralistic#canada#cdnpoli#neoliberalism#consultancy#opacity#impunity#hollow government#mckinsey#justin trudeau#liberal party#covid#quebec#profiteers
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Greed, Inc.
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sooo glad that other people have waded through the mess of novel german compound words and abbreviations of offices that make up a description of the nazi administrative regime so that i do not have to very much
but please god. why do the nazis have an "office for corporate development". did they invent management consultancy in the 1930s.
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Consulting firm McKinsey & Co has agreed to pay $78 million to resolve claims by U.S. health insurers and benefit plans that it fueled an epidemic of opioid addiction through its work for drug companies including OxyContin maker Purdue Pharma. The settlement was disclosed in papers filed on Friday in federal court in San Francisco. It marked the last in a series of settlements McKinsey has reached resolving lawsuits over the U.S. opioid epidemic. Plaintiffs accused McKinsey, one of the leading global consulting firms, of contributing to the deadly drug crisis by helping drug manufacturers including Purdue Pharma design deceptive marketing plans and boost sales of painkillers. McKinsey previously paid $641.5 million to resolve claims by state attorneys general and another $230 million to resolve claims by local governments. It has also settled cases by Native American tribes. Friday’s class action settlement, which requires a judge’s approval, resolves claims by so-called third-party payers like insurers that provide health and welfare benefits.
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