The author argues that the pursuit of growth and executive greed has led to a disconnect between production and investment, resulting in a decay of creativity and innovation. The author cites examples of media outlets like The Messenger and Sports Illustrated that have suffered due to mismanagement and a misguided focus on traffic and ad revenue. The author also criticizes tech companies for their heavy investment in AI, despite the lack of clear use cases and profitability, arguing that these decisions are made to satisfy investors rather than improve the product or user experience.
Key takeaways:
- The author argues that both public and private markets have become decoupled from the concept of "good business," focusing instead on the constant growth of revenue and market share, regardless of the quality of the product or treatment of employees.
- Major tech companies like Google, Meta, and Microsoft have laid off thousands of workers despite making billions in profit, as they invest heavily in the unprofitable field of artificial intelligence.
- The media industry is suffering due to a focus on pleasing investors and algorithms rather than serving their audience, leading to a decline in quality and originality of content.
- Major tech companies are investing heavily in AI despite it being incredibly expensive and unprofitable, with the author arguing that this is done to appear innovative and successful to investors, rather than to improve the user experience.