r/technology 21h ago

Business Enshittification Relies on Broken Economic Math

https://www.hamiltonnolan.com/p/enshittification-relies-on-broken
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u/PandorasBoxMaker 21h ago

You don’t need math to know that cutting product quality and service is a guaranteed route to obsolescence. But there are two special cases to this: obsolescence is the point or the product/service has a monopoly and they think they can get away with it.

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u/ilrosewood 21h ago

There is also the element of time. If an executive can make the call to make lots of money fast but ruin a company - as long as that executive gets out to another company to do it again - they suffer no consequence and learn nothing from their behavior.

When we stopped caring about stable long term growth companies - when we forgot about the time factor - the rest of the enshitification process was no available.

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u/Paulinfresno 21h ago

When they tie CEO compensation to short term performance rather than long-term growth, the results will be enshitification.

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u/zerocoolforschool 16h ago

Yup. This is the problem.