A Tulip By Any Other Name: Facebook’s Market Capitalization Is A Symptom of What Ails Us.

Posted on December 22, 2015

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Grey and BrutalImagine, for a moment, if Facebook broke — not for a few minutes, but for good. Like, forever.

How hard would it be for you to survive in the wake of its demise?

Certainly, the first few days would be frustrating, but, after a few days or, perhaps, a few weeks, your life – all of our lives – would carry on without any serious consequences.

Imagine now, if our drinking water and sewage systems or the electrical grid collapsed. How long do you think you would survive?

A few days? Sure. A few weeks? Probably, with a bit of careful planning. A few months? I’d guess no, especially if you had to survive Canada’s winter.

Don’t believe me? Think about it.

How would you get and store fresh water? How would you cook? How would you store fresh food? How would you avoid the cold of winter? Where would you safely dispose of your “human waste”? How would you work to earn a paycheck? In other words, how would you live?

In short, before long, you wouldn’t.

Now for the compare and contrast: The current market capitalization (Dec 22, 2015) of Facebook is about $CDN 410 billion. According to some estimates, it will cost about $31 billion to update and repair Canada’s water and wastewater systems. To upgrade all of Canada’s electricity infrastructure, it will cost about $300 billion.

Let that sink in.

The so-called rational market thinks Facebook is worth more than the complete refurbishment of an entire nation’s water and electricity infrastructure.

Facebook’s market capitalization is absurd. It is also symptom of what ails us. One of the most influential measures of value in Western society is driven by considerations which are wholly irrelevant to the short and long term well-being of most people. 

A social mechanism that generates so much money for so few people is not a measure of value. It is a measure of class and privilege.