Big Tech Embraces Capitalism, but Struggles When Faced with Hardship

In the world of big tech, few words are spoken as frequently and passionately as “capitalism.” The tech giants embrace it, extoll its virtues, and champion it as the surest path to societal advancement. Yet, when the going gets tough, these same companies seem to forget about their free-market principles and prioritize self-preservation above all else. In this article, we’ll explore how big tech has become a shining example of capitalism’s pitfalls and how their behavior during times of crisis raises important questions about the role of corporations in society.


Silicon Valley Bank’s collapse marks a major turning point for the technology industry. However, it may take some time before we see the full effects. The concept of a strategic inflection point, where a business’s fundamentals are about to change, was popularised by Intel’s former CEO, Andy Grove. The tech industry recognises that its transformative innovations can alter fundamentals and result in inflection points. SVB’s failure was due to its shortsighted bet that economic conditions would remain unchanged, and its decision to tie up most of its assets in long-term government bonds ultimately led to disastrous consequences. The fallout affected not just the bank, but many start-ups that depended on it for venture funding. While the tech industry typically calls for less government intervention, it was quick to demand help when needed. SVB’s collapse highlights the hypocrisy of tech companies, many of which have directly or indirectly profited from government-funded research. The industry needs to learn from this inflection point and take responsibility for the consequences of its actions.


In conclusion, Big Tech’s admiration and promotion of capitalism have undoubtedly played a massive role in shaping the digital economy. However, the current economic crisis caused by the COVID-19 pandemic has revealed that Big Tech’s support for capitalism is only skin-deep. As the going gets tough, these corporations seem to be more interested in protecting their profits than supporting the public interest. It’s high time that we rethink the relationship between Big Tech and capitalism and explore ways to make the tech industry more accountable and transparent. As the world continues to grapple with the ongoing crisis, it’s crucial that we work towards creating a more equitable and just digital economy that works for everyone.