This was one of the more impressive summaries of a phenomenon I’ve ever read.
Ignorance of the network effect leads to a shift of the tax base off of liquid value of net assets — most essentially farm land — onto economic activities. Once that happens, it is only a matter of time before sons are replaced with de facto slaves as the labor source and the people die, having been sacrificed on the altar of Mammon.
Comment on The Rainbow Nation Goes Dark
Put another way, when the FIRE sector grows too large in comparison with the economy it supposedly enables, then the master population is doomed to be outbred and absorbed by its slave population.
I believe this marker in time describes the upper-right corner of the Pyrrhic Cycle:
So there exists some source of economic value, somewhere, whether it’s farm land or a struggling artist’s body of work or a subculture’s “cool”. Then the “lightbringer” archetype comes along and notes that this value could be monetized, formalized, or otherwise leveraged so that the people farming it can profit off the network effect and live comfortably, instead of just scraping by. Eventually, the ratio of the Metcalfe valuation of the network versus the original value around which the network organized exceeds some unknown number, and the most adaptive status striving strategy shifts from value-farming to social networking. People at the center of the network now profit heavily merely as liaisons between specialized economic actors.
In MOP terminology, this would describe the appearance of sociopaths. In the Gervais principle, this would correspond to one of the sociopaths at the top having the idea of importing a bunch of Clueless in order to expand their department and take control of the company. In Edenic theory, this corresponds to the emergence of the melonhead phenotype within an “outburst” culture. In globalism, this refers to the process by which revolutions and otherwise detached cultures are brought into the globohomo world order: by exchanging their real cultural value for money and diluting it in the massive globohomo culture, so that every nation within the order has effectively the same culture.