Source: In These Times

The Left has yet to prop­er­ly absorb two major rev­e­la­tions of 2020: 1) The rul­ing class, for all its plat­i­tudes, deci­sive­ly does not care about small busi­ness, and 2) We are all small busi­ness­es now. To the first point, a court-ordered Small Busi­ness Admin­is­tra­tion data dump in Decem­ber con­firmed that more than half of the $521 bil­lion doled out in April’s CARES Act small busi­ness res­cue pro­gram were snagged by just 5% of well-heeled recip­i­ents, includ­ing sec­tors like con­struc­tion and law that were mere­ly incon­ve­niencedcer­tain­ly not dec­i­mat­ed — by Covid-19 shut­downs. Mean­while, the clique of gig app devel­op­ers behind California’s suc­cess­ful pas­sage of the ter­ri­fy­ing­ly abso­lutist Propo­si­tion 22 in Novem­ber — which effec­tive­ly repeals the very con­cept of employ­ment for any work­er who takes orders from a smart­phone app — have vowed to nation­al­ize the law.

We can expect the col­lapse of the ser­vice sec­tor to lead mil­lions of dis­placed sous chefs and bar­tenders and fish­er­per­sons to open Etsy and Lawn­Starter accounts, live on couch­es while rent­ing out their apart­ments on Airbnb, sign up to dri­ve for Door­Dash, cook for a Cloud­Kitchen, or sign up to be a third par­ty sell­er on Ama­zon. Thanks to the busi­ness mod­el cod­i­fied in Prop 22, they’ll be the CEOs of their own immis­er­a­tion: sourc­ing their own equip­ment, with­hold­ing their own pay­roll tax­es, shop­ping around for insur­ance and, inevitably, hir­ing oth­er gig work­ers to assist with the unman­age­able work­load of the 21st-cen­tu­ry sub­sis­tence entre­pre­neur. The line that once dis­tin­guished work­ers from the small-time mer­chant-farmer class Marx called the ​petit bour­geoisie” will be all but obso­lete, erased by the hands of a few deep-pock­et­ed data-min­ing con­glom­er­ates that are (gen­er­al­ly) yet to even make money.

It’s impor­tant to bela­bor that point: None of the com­pa­nies who brought you Prop 22 is actu­al­ly prof­itable; Uber has lost $26.5 bil­lion since 2014. Uber’s part­ners on Prop 22 have bled anoth­er $9 bil­lion. Crit­ics of cap­i­tal­ism tend to view prof­it as the system’s orig­i­nal sin, but for gig apps and Ama­zon, the abil­i­ty to burn through cash is what actu­al­ly makes them unstop­pable. The rest of Sil­i­con Val­ley learned it from Ama­zon, which uses its grotesque cloud-com­put­ing earn­ings to sub­si­dize the bil­lions it los­es ship­ping dia­pers overnight for free.

Sell­ing any­thing indef­i­nite­ly at a loss is tech­ni­cal­ly ille­gal, because the sell­er typ­i­cal­ly does it to crush com­pe­ti­tion in the short term so as to secure absolute pric­ing pow­er in the longer run. Case in point: the gig app car­tel and Ama­zon have increas­ing­ly mit­i­gat­ed its loss­es by forc­ing retail­ers, restau­rants and deliv­ery dri­vers to sub­si­dize them; one study esti­mates Door­Dash dri­vers lose mon­ey on near­ly a third of their orders, while restau­rants that do not rad­i­cal­ly over­haul their menus and pric­ing for­mu­las gen­er­al­ly lose mon­ey on most deliv­ery app orders, a predica­ment they share with untold legions of Ama­zon (and increas­ing­ly Etsy) sell­ers. A full-time rideshare dri­ver recent­ly broke down his finances in a Jalop­nik col­umn that con­clud­ed he had paid $250 for the priv­i­lege of Lyft and Uber dri­ving in 2019.

This whole despi­ca­ble busi­ness mod­el might have been nipped in the bud with stronger enforce­ment of Sec­tion 2 of the 1890 Antitrust Act, which pro­hibits anti-com­pet­i­tive busi­ness activ­i­ties. But no one real­ly paid atten­tion to antitrust until a few years ago, when some Belt­way wonks dis­il­lu­sioned by the finan­cial cri­sis began lay­ing the ground­work for a legal crack­down on cor­po­rate concentration.

The so-called ​hip­ster antitrust” movement’s biggest achieve­ment thus far has been the House antitrust subcommittee’s inves­ti­ga­tion of the big four tech giants (Ama­zon, Apple, Face­book and Google); the sub­com­mit­tee recent­ly filed a 450-page report report that laid out a damn­ing case that the firms had effec­tive­ly and delib­er­ate­ly installed them­selves as gate­keep­ers over all online activ­i­ty, extract­ing enor­mous fees and/​or valu­able pro­pri­etary data from vir­tu­al­ly every­thing Amer­i­cans do on a phone or lap­top, and that they had used their pow­er and con­trol of infor­ma­tion to either buy off or crush any­thing they inter­pret­ed as an even a plau­si­ble threat to that gate­keep­er sta­tus. The report was writ­ten by Demo­c­ra­t­ic com­mit­tee staffers, but quick­ly scraped and deployed by Repub­li­cans in the Trump Jus­tice Depart­ment and state attor­neys gen­er­al offices, who sued Google for monop­o­liz­ing search in Octo­ber, and in Decem­ber Trump’s Fed­er­al Trade Com­mis­sion sued Face­book along­side a bipar­ti­san group of 46 state attor­neys gen­er­al (plus the AGs of Guam and Wash­ing­ton D.C.) for essen­tial­ly con­spir­ing to Google­fy social media. This is the oth­er big achieve­ment of the new trust­bust­ing move­ment: It has suc­cess­ful­ly har­nessed Trumpian astro­turf pop­ulism for a legit­i­mate­ly pop­ulist cause. Eighty-five per­cent of Amer­i­cans think big tech has too much con­trol. It’s not hard to see what’s in it for Repub­li­cans: 95% of big tech employ­ees spend their cam­paign dona­tion dol­lars on Democ­rats; in 2016 Sil­i­con Val­ley spent 60 times as much con­tribut­ing to Hillary Clin­ton as it did Don­ald Trump. The antitrust sub­com­mit­tee even hand­ed the MAGA crowd some use­ful talk­ing points by evis­cer­at­ing the Oba­ma Admin­is­tra­tion repeat­ed­ly in its report over its lais­sez faire atti­tude about prob­lem­at­ic big tech deals like Facebook’s acqui­si­tions of What­sApp and Insta­gram. But where the intel­lec­tu­al basis of the Oba­ma FTC’s clas­sic ​neolib­er­al inac­tion” stance toward cor­po­rate con­cen­tra­tion was mas­ter­mind­ed by right wing Uni­ver­si­ty of Chica­go econ­o­mists, Missouri’s Repub­li­can Sen. Josh Hawley’s cru­sade against the big tech giants is fun­da­men­tal­ly, not that he’d ever admit it, anti-capitalist.

Case in point: in April Haw­ley for­mal­ly asked the Trump DOJ to open a crim­i­nal inves­ti­ga­tion into the Ama­zon pri­vate label department’s prac­tice of sys­tem­at­i­cal­ly min­ing data on third-par­ty sell­ers for pop­u­lar prod­ucts to copy, then under­cut­ting their price by a few pen­nies or using oth­er meth­ods to abuse its mar­ket­place pow­er to give its own copy­cat ver­sions pref­er­en­tial treat­ment. Lib­er­tar­i­ans scoffed at this demand; after all, plen­ty of gro­cery stores sell their own down­mar­ket pri­vate label sand­wich cook­ies right along­side Ore­os. What’s dif­fer­ent now is, of course, the gap­ing pow­er imbal­ance. Mul­ti­ple third par­ty sell­ers and oth­er ​mar­ket par­tic­i­pants” con­tact­ed by the antitrust com­mit­tee stopped coop­er­at­ing with the inves­ti­ga­tion or polite­ly refused to talk even anony­mous­ly out of fear of retal­i­a­tion, explain­ing that they ​live in fear” of an all-know­ing com­pa­ny that, as the subcommittee’s chair­man Rep. David Cicilline (D‑R.I.) put it, is ​the only game in town” in retail anymore.

This under­stand­able fear is shared by the company’s work­ers. As Ama­zon has hiked com­mis­sions for sell­ing mer­chan­dise over its plat­form it has also slashed wages; ware­house work­ers in one South Car­oli­na coun­ty saw their salaries shrink by 32% after Ama­zon opened a site.

No group of Ama­zon work­ers has suc­cess­ful­ly union­ized — though some at a ful­fill­ment cen­ter in the for­mer steel town of Besse­mer, Alaba­ma are cur­rent­ly try­ing. Work­ers right­ly fear Amazon’s omni­scient sur­veil­lance appa­ra­tus, which tracks every­thing from phys­i­cal work­er move­ments to pri­vate Face­book groups formed by its ​inde­pen­dent” Flex dri­vers. (In Europe the com­pa­ny even hired the Pinker­ton spy agency to infil­trate nascent union dri­ves.) And if the usu­al union-bust­ing tac­tics fail, with unem­ploy­ment at mul­ti-decade highs, Ama­zon can eas­i­ly do like Wal­mart and just shut down any facil­i­ty that tries to orga­nize, just as uncer­e­mo­ni­ous­ly as it shuts down the accounts of sell­ers it deems some­how dis­obe­di­ent. Notably, Uber has ripped off Amazon’s labor rela­tions blue­print, noto­ri­ous­ly using its sys­tems to spy on work­ers and oth­er ene­mies while bom­bard­ing dri­vers’ phones with Prop 22 pro­pa­gan­da and, when a Cal­i­for­nia judge attempt­ed to force the com­pa­ny to com­ply with state labor law in August, threat­en­ing to shut down ser­vice alto­geth­er in the state.

There is sim­ply no way to win against Ama­zon or Uber with­out mak­ing them less pow­er­ful first. Antitrust at least gives us some tools to do so, and the Left should rel­ish the oppor­tu­ni­ty to join forces with GOP oppor­tunists like Josh Haw­ley if it gives us the chance to snatch them from the neg­li­gent hands of the Demo­c­ra­t­ic Party’s rul­ing cor­po­ratist hack estab­lish­ment. Unfor­tu­nate­ly, I think most­ly because the ​break ​em up” move­ment is iden­ti­fied with Eliz­a­beth War­ren, antitrust has few allies on the Bernie Left (and I am wear­ing a Bernie 2020 T‑shirt as I write). For years, social­ist intel­lec­tu­als — such as Bhaskar Sunkara and Nicole Aschoff of Jacobin, the People’s Pol­i­cy Project’s Matt Bru­enig, and (deserved­ly!) beloved pod­cast­er Vir­gil Texas—have argued that antitrust law is ​quaint” at best (in Texas’ esti­ma­tion) and coun­ter­pro­duc­tive at worst. In Bruenig’s view, big busi­ness is bet­ter for labor because ​fetishized” small busi­ness­es are exempt from cer­tain labor laws; Sunkara believes the larg­er social­ist goal of nation­al­iz­ing the means of pro­duc­tion is accel­er­at­ed by cor­po­rate consolidation.

This view is mis­guid­ed. Ama­zon is infi­nite­ly scari­er than the most tyran­ni­cal pizze­ria own­er, taxis were eas­i­er to reg­u­late than Uber, and nation­al­iza­tion is mean­ing­less out­side of ​big struc­tur­al change” (and we know because ​we” did it to AIG and Fan­nie Mae). Even if your goal is to col­lec­tivize Ama­zon by bloody force, the infor­ma­tion derived from the antitrust clique’s string of sub­poe­nas is your ammunition.

Bernie Sanders him­self is an ardent sup­port­er of break­ing up monop­o­lies — he said as much in an online event this week co-spon­sored by People’s Action and the Amer­i­can Eco­nom­ic Lib­er­ties Project (an advo­ca­cy group for which I some­times con­duct research) — but it’s not one of his com­mit­tee assign­ments; the gory arcana of how to unwind bad merg­ers and police preda­to­ry prac­tices is not real­ly his thing. Nor is it tech­ni­cal­ly Warren’s thing; most of the leg­work has hap­pened in Cicilline’s House antitrust sub­com­mit­tee, while the small Sen­ate subcommittee’s rank­ing Demo­c­rat Amy Klobuchar has shown heart­en­ing signs of will­ing to be at least as oppor­tunis­ti­cal­ly rad­i­cal as Josh Hawley.

Giv­en all of the big busi­ness vic­to­ries in 2020, the War­ren Wonks and the Bernie Bros would be wise to stop get­ting dis­tract­ed by how annoy­ing they find the other.

Moe Tkacik is a senior fel­low at the Amer­i­can Eco­nom­ic Lib­er­ties Project and, until recent­ly, a waitress.


ZNetwork is funded solely through the generosity of its readers.

Donate
Donate
Leave A Reply

Subscribe

All the latest from Z, directly to your inbox.

Institute for Social and Cultural Communications, Inc. is a 501(c)3 non-profit.

Our EIN# is #22-2959506. Your donation is tax-deductible to the extent allowable by law.

We do not accept funding from advertising or corporate sponsors.  We rely on donors like you to do our work.

ZNetwork: Left News, Analysis, Vision & Strategy

Subscribe

All the latest from Z, directly to your inbox.

This is your article this month.

We’re glad you keep coming back. If Z’s work has informed, challenged, or inspired you, that’s no accident: there are no paywalls, no ads, and no billionaire owners here, and there never will be. Independent media survives because readers choose to support it.

Billionaires fund their own media. We fund ours. Help us reach 1,000 sustaining donors:

Number of donors685
Our goal1,000

Sustainers at $9/month or more receive the digital Z Magazine.

Already a sustainer? Click here and we won’t ask again. Thank you!

Your reading count is stored only in your browser and is never sent to us.

Sound is muted by default.  Tap 🔊 for the full experience

CRITICAL ACTION

Critical Action is a longtime friend of Z and a music and storytelling project grounded in liberation, solidarity, and resistance to authoritarian power. Through music, narrative, and multimedia, the project engages the same political realities and movement traditions that guide and motivate Z’s work.

If this project resonates with you, you can learn more about it and find ways to support the work using the link below.

Independent media is not disappearing because the ideas are weak.

It is disappearing because platforms reward speed, outrage, and algorithmic visibility over thoughtful analysis.

More than 100,000 people read Z every month, free of paywalls, ads, and billionaire owners. It takes fewer than 1 in 100 of them to fund all of it: 1,000 donors who keep Z independent, for everyone, and build what comes next.

Number of donors685
Our goal1,000

Sustainers at $9/month or more receive the digital Z Magazine.

Subscribe

Join the Z Community – receive event invites, announcements, a Weekly Digest, and opportunities to engage.

Exit mobile version