Book SummaryThe Coming of Neo-Feudalism, by Joel Kotkin

1-Page Summary1-Page Book Summary of The Coming of Neo-Feudalism

New Elites and Power Concentration Enabled by Modern Technology

Kotkin argues that instead of a more equitable and democratic future, modern technology has enabled a new type of feudalism, where power and wealth are highly concentrated among a few tech giants and their partners in the intellectual and cultural elite. This new oligarchy, much like previous ruling classes, is enabled and sustained by its control over technology, data, and the means of production, leaving most people in a precarious state.

Tech Giants Dominate, Forming an Aristocracy

The tech industry, once celebrated for its competitive spirit and disruptive innovation, has become increasingly dominated by a handful of exceptionally powerful companies, reminiscent of the monopolistic trusts from the late 19th century. These massive tech companies have captured a disproportionate share of the globe's most profitable sectors, often taking over or destroying potential competitors. Their vast resources and ability to attract the best talent solidify their position at the top of a new social hierarchy, akin to a techno-feudal aristocracy.

Tech Giants' Monopolistic Power Eclipses Traditional Industrial Titans' Market Share

Kotkin highlights the shift in economic power from traditional industrial corporations to technology companies. He points out that tech giants like Apple, Amazon, Google, and Facebook have achieved a level of market dominance exceeding that of even the most powerful industrial titans of the past, such as J.P. Morgan's U.S. Steel. For example, Google dominates approximately 90% of the market for search advertising, while Amazon controls around 75% of the ebook market in the U.S. This monopolistic power, he suggests, stifles competition and allows these few companies to dictate the terms of economic participation for both entrepreneurs and consumers.

Practical Tips

• Enhance your digital literacy by taking online courses on digital platforms. As tech companies dominate the economy, understanding how to use their products and services can be crucial for personal and professional development. Look for courses on topics like social media marketing or data analysis, which can be directly applicable in various job markets and can be learned without prior expertise.
• Experiment with browser extensions or apps that randomize your default search engine on a daily or weekly basis. This could introduce you to new search experiences and information sources you might not have considered otherwise, broadening your perspective and reducing the influence of any one search engine on the information you receive.
• Use browser extensions or apps that compare ebook prices across different platforms before making a purchase. By doing so, you ensure you're getting the best deal while also not contributing to a single company's market share by default. This habit can save you money and encourage a more competitive ebook marketplace.
• Diversify your online shopping by using lesser-known e-commerce platforms. Instead of always turning to the big names, try finding smaller, niche online stores for your purchases. This supports smaller businesses and reduces reliance on tech giants. For example, if you're buying books, look for independent bookstores that have an online shop, or if you're into handmade goods, explore platforms that specialize in crafts and direct-from-creator items.
• Educate yourself on the principles of cooperative businesses and consider starting or joining one. Cooperatives are owned and run by their members, which can be a practical way to counteract the influence of large corporations. You could start a cooperative with friends or neighbors to provide a service or product you all are passionate about, like a community-owned grocery store or a cooperative childcare service.

Tech Executives' and Investors' Wealth Forms a Powerful Oligarchy

Along with market dominance, the technology sector has generated massive personal fortunes, placing its leaders among the world's wealthiest people. Kotkin notes that a disproportionate number of people on the Forbes billionaires list hail from the tech sector, with many being in their thirties and forties. These fortunes translate into significant sociopolitical and cultural influence. Like aristocracies throughout history, these tech oligarchs have the means to shape policies, mold public opinion, and control the flow of information through their ownership of media outlets, their funding of research institutions, and their access to influential people with authority.

Other Perspectives -...

The Coming of Neo-Feudalism Summary Intellectuals, Academics, and Cultural Elites in Legitimizing Neo-feudal Order

Kotkin defines the current "clerisy" as a broad and influential group of intellectuals, academics, and cultural leaders. As with the clergy during medieval times, this modern class provides intellectual and moral justification for the prevailing social order, now increasingly dominated by tech oligarchs.

Modern "Clerisy": Professors, Journalists, Non-profit Leaders as Arbiters of Right-Thinking

According to Kotkin, the modern clerisy has taken the place of the church in shaping social and cultural values. This class, composed mainly of college professors, journalists, writers, artists, and leaders of nonprofit organizations and foundations, holds a position of vast cultural influence, shaping perceptions and steering public discourse. Just as the clergy once served as the guardians of religious orthodoxy, this modern cognative elite acts as an arbiter of what is considered right thinking on a wide range of issues, from race and gender to the environment and economics.

Academics Now Favor Ideological Conformity Over Intellectual Diversity at Colleges

Kotkin points out a dramatic shift in academia, away from the aspiration for open inquiry and intellectual diversity,...

The Coming of Neo-Feudalism Summary The Decline of Middle- and Working-Class People: Rise of a "New Serf Class"

Kotkin's key argument is the hollowing out of the middle class, central to liberal democracy's weakening and the emergence of neo-feudalism. He argues that those in the working and middle classes are falling further behind despite economic growth, threatened by globalization, technological change, and the concentration of power in the hands of a new elite.

Economic and Tech Shifts Weakened Rising in Class and Middle/Working Class Power

Over the past several decades, major economic and technological shifts have reshaped the economic landscape, weakening upward mobility and eroding the power of middle- and working-class people. The combination of global economic changes, automation, and industrial decline has reduced the availability of well-paying jobs for those without elite educations and skills, while those at the top of the income ladder have seen their fortunes soar.

Job Losses and Middle-Class Impact From Globalization, Automation, and Manufacturing's Downfall

Globalization has resulted in the shifting of manufacturing and other industries to lower-wage countries, leading to substantial job losses in Western countries, particularly for those in blue-collar...

The Coming of Neo-Feudalism Summary Urban Dynamics: City Bifurcation, Suburbia Conflict, and Population Implications

Kotkin examines the changing urban landscape, arguing that the traditional role of cities as driving forces for economic advancement has been undermined by increased inequality and the policies promoted by a coalition of oligarchs and clerics.

Cities Divided: Wealthy Elite vs. Impoverished, Middle Class Pushed Aside

Cities, traditionally the crucible for creating a vibrant middle class, have grown increasingly bifurcated, notes Kotkin. A wealthy elite, including oligarchs and the highest levels of the clerisy, have gathered in urban centers that have been gentrified, often displacing middle-income and working-class residents. Simultaneously, the urban poor are pushed farther to the periphery or concentrated in neglected neighborhoods.

Gentrification and High Housing Costs Create "Gated Cities" for the Wealthy, Displacing Middle- and Working-Class People

In numerous leading global cities, gentrification and skyrocketing housing prices have created what Kotkin describes as "gated cities"—enclaves of privilege favored by the ultra-wealthy, while becoming less hospitable to middle- and working-class households. He points to the experience of cities like San Francisco,...