# How Big Tech stole $35 Trillion from the public | Yanis Varoufakis Source: https://www.youtube.com/watch?v=VwrTYz1N7W4 Recap page: https://rapidrecap.app/video/VwrTYz1N7W4 Generated: 2026-02-20T15:06:26.478+00:00 --- ## Quick Overview Yanis Varoufakis argues that modern capitalism, particularly since 2008, functions as a form of techno-feudalism where massive cloud capital owners extract wealth equivalent to $35 trillion (or 35,000 billion) from the economy by not paying salaries for services rendered, effectively creating a system of voluntary slavery for the lowest-paid workers. **Key Points:** - Traditional terrestrial capitalist companies (like aerospace or Ford) spend an average of 85% of their revenue on salaries, from the board down to the lowest-paid worker. - In contrast, Big Tech firms like Google pay only about 1% of their revenues toward employee salaries. - Following the 2008 crisis, major financial centers like Wall Street, London, Paris, and Frankfurt were bailed out, and central banks effectively paid them to take money at zero interest rates, which they then lent out, making more money. - The CEOs of these conglomerates took this 'free money' and used it to buy their own shares, artificially inflating stock prices, which subsequently dictated their bonuses. - The speaker asserts that 35,000 billion (or $35 trillion) is siphoned off globally by these cloud capital owners, which is equivalent to 35% of global GDP, by not paying salaries for the labor that generates that value. - This process creates 'bullshit jobs' and results in a situation where even users of services like Nokia phones are subjected to techno-feudalism, as their labor (data/attention) is exploited. - The worst form of slavery is voluntary slavery, which occurs when people happily and voluntarily work without receiving fair compensation for the value they create. ![Screenshot at 00:08: The speaker states that traditional terrestrial capitalist companies spend on average 85% of their revenue on salaries, contrasting this with the practices of Big Tech firms.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-00-08.jpg) **Context:** Yanis Varoufakis, a prominent economist and former Greek Finance Minister, discusses the structural economic shift from traditional capitalism to what he terms 'techno-feudalism,' focusing on the financial mechanisms employed by large technology corporations (Big Tech) and the financial sector following the 2008 crisis. He contrasts the historical wage distribution in traditional industries with the modern practice of retaining revenue by minimizing labor costs and leveraging central bank policies. ## Detailed Analysis Yanis Varoufakis explains that conventional terrestrial capitalism involved companies like Ford dedicating about 85% of their revenue to salaries across all levels. However, he argues that post-2008, a massive shift occurred where financial institutions were bailed out by central banks who effectively paid them to take money at zero interest rates, which they then used to profit further. This dynamic is amplified by Big Tech companies, such as Google, which allocate only about 1% of their revenue to salaries. Varoufakis calculates that this allows cloud capital owners to siphon off $35 trillion, or 35,000 billion—an amount equivalent to 35% of global GDP—by not paying for the labor that creates value. This money is instead used by CEOs to buy company shares, thereby inflating stock prices that determine their bonuses. He describes this system as creating 'bullshit jobs' and resulting in a form of techno-feudalism, where even users of basic technology are subject to this exploitation, as they provide free labor (data/attention) without proper compensation, constituting what he calls the worst kind of slavery: voluntary slavery. ### Wage Distribution Contrast - Traditional companies spend 85% of revenue on salaries - Google pays only 1% of revenue toward salaries - This impacts everyone from the board down to the lowest-paid worker. ### Post-2008 Financial Manipulation - Wall Street, London, Paris, and Frankfurt banks received bailouts where central banks paid them to take money at zero interest rates - They lent this money to make further profit. ### Wealth Extraction via Cloud Capital - Cloud capital owners effectively siphon off $35 trillion (35,000 billion), which is 35% of global GDP, by not paying for labor. ### CEO Incentives and Consequences - CEOs used this money to buy their own shares, increasing stock prices and their bonuses - This leads to 'bullshit jobs' and lowers aggregate demand. ### Techno-Feudalism - The system results in everyone being subject to techno-feudalism, where free labor (like data contribution) is extracted, which the speaker equates to voluntary slavery. ![Screenshot at 00:04: The speaker begins contrasting traditional capitalist companies with modern structures, mentioning examples like British Aerospace or Ford.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-00-04.jpg) ![Screenshot at 00:08: The speaker highlights the key statistic: traditional companies pay 85% of revenue to salaries, contrasting it with Big Tech's low percentage.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-00-08.jpg) ![Screenshot at 00:40: The speaker references the 2008 crisis, noting that Wall Street and other financial centers 'went pear shaped' and required bailouts.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-00-40.jpg) ![Screenshot at 00:50: A large graphic displays the figure '$35 TRILLION' \(35,000,000,000,000\), representing the amount siphoned off by cloud capital owners.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-00-50.jpg) ![Screenshot at 02:31: The speaker concludes that the result of this economic imbalance is the creation of 'bullshit jobs' due to suppressed aggregate demand.](https://ss.rapidrecap.app/screens/VwrTYz1N7W4/00-02-31.jpg)