A family buys a house they can’t afford. They can’t make their monthly mortgage payments, so they borrow money from the Mob. Now they’re in debt to the bank and the Mob, live in fear of losing their home, and must do whatever their creditors tell them to do.
Welcome to the internet, 2019.
Buying something you can’t afford, and borrowing from organizations that don’t have your (or your customers’) best interest at heart, is the business plan of most internet startups. It’s why our digital services and social networks in 2019 are a garbage fire of lies, distortions, hate speech, tribalism, privacy violations, snake oil, dangerous idiocy, deflected responsibility, and whole new categories of unpunished ethical breaches and crimes. //
“Most of my startups have the decency to fail in the first year,” one investor told him. My friend’s business was taking in several million dollars a year and was slowly growing in staff and customers. It was profitable. Just not obscenely so.
And internet investors don’t want a modest return on their investment. They want an obscene profit right away, or a brutal loss, which they can write off their taxes. Making them a hundred million for the ten million they lent you is good. Losing their ten million is also good—they pay a lower tax bill that way, or they use the loss to fold a company, or they make a profit on the furniture while writing off the business as a loss…whatever rich people can legally do under our tax system, which is quite a lot.
What these folks don’t want is to lend you ten million dollars and get twelve million back.
You and I might go, “Wow! I just made two million dollars just for being privileged enough to have money to lend somebody else.” And that’s why you and I will never have ten million dollars to lend anybody. Because we would be grateful for it. And we would see a free two million dollars as a life-changing gift from God. But investors don’t think this way.
