TEDNYC
Scott Galloway: How Amazon, Apple, Facebook and Google manipulate our emotions
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The combined market capitalization of Amazon, Apple, Facebook and Google is now equivalent to the GDP of India. How did these four companies come to infiltrate our lives so completely? In a spectacular rant, Scott Galloway shares insights and eye-opening stats about their dominance and motivation -- and what happens when a society prizes shareholder value over everything else. Followed by a Q&A with TED Curator Chris Anderson. (Note: This talk contains graphic language.)
Scott Galloway - Professor of marketing
Scott Galloway teaches brand strategy and digital marketing and the NYU Stern School of Business. Full bio
[This talk contains graphic language
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https://e-vid.net/v/en/4539-0
00:12
So, this is the first and the last slide
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00:16
each of my 6,400 students
over the last 15 years has seen.
over the last 15 years has seen.
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00:19
I do not believe you can build
a multibillion-dollar organization
a multibillion-dollar organization
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00:24
unless you are clear on which instinct
or organ you are targeting.
or organ you are targeting.
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00:27
Our species has a need for a superbeing.
https://e-vid.net/v/en/4539-5
00:33
Our competitive advantage
as a species is our brain.
as a species is our brain.
https://e-vid.net/v/en/4539-6
00:36
Our brain is robust enough to ask
these really difficult questions,
these really difficult questions,
https://e-vid.net/v/en/4539-7
00:39
but, unfortunately, it doesn't have
the processing power to answer them,
the processing power to answer them,
https://e-vid.net/v/en/4539-8
00:42
which creates a need for a superbeing
https://e-vid.net/v/en/4539-9
00:46
that we can pray to
and look to for answers.
and look to for answers.
https://e-vid.net/v/en/4539-10
00:48
What is prayer?
https://e-vid.net/v/en/4539-11
00:51
Sending a query into the universe,
https://e-vid.net/v/en/4539-12
00:52
and hopefully there's some sort
of divine intervention --
of divine intervention --
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00:54
we don't need to understand
what's going on --
what's going on --
https://e-vid.net/v/en/4539-14
00:57
from an all-knowing, all-seeing superbeing
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00:59
that gives us authority
that this is the right answer.
that this is the right answer.
https://e-vid.net/v/en/4539-16
01:01
"Will my kid be all right?"
https://e-vid.net/v/en/4539-17
01:05
You have your planet of stuff,
https://e-vid.net/v/en/4539-18
01:08
you have your planet of work,
https://e-vid.net/v/en/4539-19
01:10
you have your planet of friends.
https://e-vid.net/v/en/4539-20
01:11
If you have kids,
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01:13
you know that once something
comes off the rails with your kids,
comes off the rails with your kids,
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01:15
everything melts,
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01:18
in your universe
to the Sun that is your kids.
to the Sun that is your kids.
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01:19
"Will my kid be all right?"
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01:22
"Symptoms and treatment of croup"
in the Google query box.
in the Google query box.
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01:25
One in six queries presented to Google
have never been asked before
have never been asked before
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01:29
in the history of mankind.
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01:33
What priest, teacher, rabbi, scholar,
mentor, boss has so much credibility
mentor, boss has so much credibility
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01:34
that one in six questions
posed to that person
posed to that person
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01:40
have never been asked before?
https://e-vid.net/v/en/4539-31
01:42
Google is our modern man's God.
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01:44
Imagine your face and your name
above everything you've put into that box,
above everything you've put into that box,
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01:47
and you're going to realize
you trust Google more than any entity
you trust Google more than any entity
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01:52
in your history.
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01:56
(Laughter)
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01:57
Let's move further down the torso.
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01:58
(Laughter)
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02:00
One of the other wonderful things
about our species
about our species
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02:02
is we not only need to be loved,
but we need to love others.
but we need to love others.
https://e-vid.net/v/en/4539-40
02:05
Children with poor nutrition
but a lot of affection
but a lot of affection
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02:08
have better outcomes than children
with good nutrition and poor affection.
with good nutrition and poor affection.
https://e-vid.net/v/en/4539-42
02:11
However, the best signal
that you might make it
that you might make it
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02:16
to be part of the number-one fastest
growing demographic in the world --
growing demographic in the world --
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02:19
centenarians, people
who live to triple digits --
who live to triple digits --
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02:24
there are three signals.
https://e-vid.net/v/en/4539-46
02:26
In reverse order: your genetics --
not as important as you'd like to think,
not as important as you'd like to think,
https://e-vid.net/v/en/4539-47
02:27
so you can continue to treat
your body like shit
your body like shit
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02:31
and think, "Oh, Uncle Joe lived to 95,
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02:33
the die have been cast."
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02:35
It's less important than you think.
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02:37
Number two is lifestyle.
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02:38
Don't smoke, don't be obese,
and prescreen --
and prescreen --
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02:40
get rid of about two-thirds
of early cancers
of early cancers
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02:42
and cardiovascular disease.
https://e-vid.net/v/en/4539-55
02:45
The number one indicator or signal
that you'll make it to triple digits:
that you'll make it to triple digits:
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02:47
How many people do you love?
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02:50
Caretaking is the security camera --
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02:54
we call the low-resolution
security camera in our brain --
security camera in our brain --
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02:57
deciding whether or not
you are adding value.
you are adding value.
https://e-vid.net/v/en/4539-60
03:00
Facebook taps into our instinctive need
not only to be loved,
not only to be loved,
https://e-vid.net/v/en/4539-61
03:02
but to love others,
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03:06
mostly through pictures
that create empathy,
that create empathy,
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03:07
catalyze and reinforce our relationships.
https://e-vid.net/v/en/4539-64
03:09
Let's continue our journey down the torso.
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03:12
Amazon is our consumptive gut.
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03:15
The instinct of more is hardwired into us.
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03:18
The penalty for too little
is starvation and malnutrition.
is starvation and malnutrition.
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03:21
Open your cupboards, open your closets,
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03:25
you have 10 to 100x times what you need.
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03:28
Why?
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03:31
Because the penalty
for too little is much greater
for too little is much greater
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03:32
than the penalty for too much.
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03:35
So "more for less" is a business strategy
that never goes out of style.
that never goes out of style.
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03:37
It's the strategy of China,
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03:41
it's a the strategy of Walmart,
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03:42
and now it's the strategy of the most
successful company in the world,
successful company in the world,
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03:44
Amazon.
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03:47
You get more for less into your gut;
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03:48
digest, send it to your muscular
and skeletal system of consumption.
and skeletal system of consumption.
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03:51
Moving further,
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03:54
once we know we will survive,
the basic instinct,
the basic instinct,
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03:56
we move to the second
most powerful instinct,
most powerful instinct,
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04:00
and that is to spread and select
the strongest, smartest and fastest seed
the strongest, smartest and fastest seed
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04:02
to the four corners of the earth,
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04:07
or pick the best seed.
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04:09
This is not a timepiece.
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04:11
I haven't wound it in five years.
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04:13
It's my vain attempt to say to people,
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04:15
"If you mate with me,
your children are more likely to survive
your children are more likely to survive
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04:17
than if you mate with someone
wearing a Swatch watch."
wearing a Swatch watch."
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04:20
(Laughter)
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04:23
The key to business is tapping into
the irrational organs.
the irrational organs.
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04:25
"Irrational" is Harvard Business School's
and New York Business School's term
and New York Business School's term
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04:29
for fat profit margins
and shareholder value.
and shareholder value.
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04:33
"High-caloric paste for your children."
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04:36
No?
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04:39
You love your choosy mom.
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04:40
Why choosy moms choose Jif:
you love your kids more.
you love your kids more.
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04:42
The greatest algorithm for shareholder
creation from World War II
creation from World War II
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04:46
to the advent of Google
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04:49
was taking an average product
and appealing to people's hearts.
and appealing to people's hearts.
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04:50
You're a better a mom,
a better person, a better patriot
a better person, a better patriot
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04:53
if you buy this average soap
versus this average soap.
versus this average soap.
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04:56
Now, the number one algorithm
for shareholder value isn't technology.
for shareholder value isn't technology.
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05:00
Look at the Forbes 400.
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05:03
Take out inherited wealth,
take out finance.
take out finance.
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05:05
The number one source of wealth creation:
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05:07
appealing to your reproductive organs.
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05:09
The Lauders; the number
one wealthiest man in Europe, LVMH.
one wealthiest man in Europe, LVMH.
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05:11
Numbers two and three: H&M and Inditex.
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05:16
You want to target the most
irrational organs for shareholder value.
irrational organs for shareholder value.
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05:19
As a result, these four companies --
Apple, Amazon, Facebook and Google --
Apple, Amazon, Facebook and Google --
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05:25
have disarticulated who we are.
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05:29
God, love, consumption, sex.
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05:30
The proportion in your approach
to those things is who you are,
to those things is who you are,
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05:33
and they have reassembled who we are
in the form of for-profit companies.
in the form of for-profit companies.
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05:36
At the end of the Great Recession,
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05:40
the market capitalization
of these companies was equivalent
of these companies was equivalent
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05:42
to the GDP of Niger.
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05:45
Now it is equivalent to the GDP of India,
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05:46
having blown past
Russia and Canada in '13 and '14.
Russia and Canada in '13 and '14.
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05:49
There are only five nations
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05:52
that have a GDP greater
than the combined market capitalization
than the combined market capitalization
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05:54
of these four firms.
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05:57
Something is happening, though.
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05:59
The conversation just a year ago
was, which CEO was more Jesus-like?
was, which CEO was more Jesus-like?
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06:01
Who was running for president?
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06:06
Now the worm has turned.
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06:08
Everything they're doing is bothering us.
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06:10
We're worried they're tax avoiders.
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06:12
Walmart, since the Great Recession,
has paid 64 billion dollars
has paid 64 billion dollars
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06:14
in corporate income tax;
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06:17
Amazon has paid 1.4.
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06:19
How do we pay our firefighters,
our soldiers and our social workers
our soldiers and our social workers
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06:21
if the most successful companies
in the world don't pay their fair share?
in the world don't pay their fair share?
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06:25
Pretty easy.
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06:28
That means the less successful
companies have to pay
companies have to pay
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06:30
more than their fair share.
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06:32
Alexa, is this a good thing?
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06:33
This is despite that fact --
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06:35
(Laughter)
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06:37
This is despite the fact
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06:38
that Amazon has added the entire
market capitalization of Walmart
market capitalization of Walmart
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06:41
to its market cap in the last 19 months.
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06:45
Whose fault is it? It's our fault.
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06:52
We're electing regulators
who don't have the backbone
who don't have the backbone
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06:54
to actually go after these companies.
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06:58
Facebook lies to EU regulators
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07:00
and says, "It would be impossible
for us to share the data
for us to share the data
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07:02
between our core platform
and our proposed acquisition of WhatsApp.
and our proposed acquisition of WhatsApp.
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07:06
Approve the merger."
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07:09
They approve the merger and then --
spoiler alert! -- they figure it out.
spoiler alert! -- they figure it out.
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07:11
And the EU says, "I feel lied to.
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07:15
We're fining you 120 billion dollars,"
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07:16
about .6 percent of the acquisition price
of 19 billion dollars.
of 19 billion dollars.
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07:20
If Mark Zuckerberg could take out
an insurance policy
an insurance policy
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07:24
that the acquisition would
go through for .6 percent,
go through for .6 percent,
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07:27
wouldn't he do it?
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07:29
Anticompetitive behavior.
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07:31
A two-and-a-half-billion-dollar fine,
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07:33
three billion of the cash flow,
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07:35
three percent of the cash
on Google's balance sheet.
on Google's balance sheet.
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07:38
We are telling these companies,
"The smart thing to do,
"The smart thing to do,
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07:41
the shareholder-driven thing to do,
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07:45
is to lie and to cheat."
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07:47
We are issuing 25-cent parking tickets
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07:49
on a meter that costs 100 dollars an hour.
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07:53
The smart thing to do is lie.
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07:56
Job destruction!
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07:57
Amazon only needs one person
for two at Macy's.
for two at Macy's.
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07:59
If they grow their business 20 billion
dollars this year, which they will,
dollars this year, which they will,
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08:02
we will lose 53,000 cashiers and clerks.
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08:06
This is nothing unusual;
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08:08
this has happened all through our economy,
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08:09
we've just never seen
companies this good at it.
companies this good at it.
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08:12
That's one Yankee Stadium of workers.
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08:14
It's even worse in media.
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08:16
If Facebook and Google
grow their businesses
grow their businesses
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08:18
22 billion dollars this year,
which they will,
which they will,
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08:20
we're going to lose approximately
150,000 creative directors,
150,000 creative directors,
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08:22
planners and copywriters.
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08:26
Or we can fill up two-and-a-half
Yankee Stadiums
Yankee Stadiums
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08:28
and say, "You are out of work,
courtesy of Amazon."
courtesy of Amazon."
https://e-vid.net/v/en/4539-184
08:30
We now get the majority of our news
from our social media feeds,
from our social media feeds,
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08:34
and the majority of our news
coming off of social media feeds is ...
coming off of social media feeds is ...
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08:37
fake news.
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08:41
(Laughter)
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08:42
I am not allowed to be political
or use curse words,
or use curse words,
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08:44
or talk about religion in class,
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08:48
so I can definitely not say,
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08:49
"Zuckerberg has become Putin's bitch."
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08:53
I definitely cannot say that.
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08:56
(Laughter)
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08:58
Their defense:
https://e-vid.net/v/en/4539-195
08:59
"Facebook is not a media company;
it's a technology company."
it's a technology company."
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09:00
You create original content,
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09:03
you pay sports leagues
to give you original content,
to give you original content,
https://e-vid.net/v/en/4539-198
09:05
you run advertising against it --
boom! -- you're a media company.
boom! -- you're a media company.
https://e-vid.net/v/en/4539-199
09:08
Just in the last few days,
https://e-vid.net/v/en/4539-200
09:11
Sheryl Sandberg has repeated this lie,
that "We are not a media company."
that "We are not a media company."
https://e-vid.net/v/en/4539-201
09:13
Facebook has openly embraced
the margins of celebrity
the margins of celebrity
https://e-vid.net/v/en/4539-202
09:17
and the influence of a media company
https://e-vid.net/v/en/4539-203
09:21
yet seems to be allergic
to the responsibilities
to the responsibilities
https://e-vid.net/v/en/4539-204
09:23
of a media company.
https://e-vid.net/v/en/4539-205
09:27
Imagine McDonald's.
https://e-vid.net/v/en/4539-206
09:29
We find 80 percent of their beef is fake,
https://e-vid.net/v/en/4539-207
09:31
and it's giving us encephalitis,
https://e-vid.net/v/en/4539-208
09:33
and we're making terrible decisions.
https://e-vid.net/v/en/4539-209
09:35
And we say, "McDonald's,
we're pissed off!"
we're pissed off!"
https://e-vid.net/v/en/4539-210
09:37
And they say, "Wait, wait --
https://e-vid.net/v/en/4539-211
09:40
we're not a fast-food restaurant,
https://e-vid.net/v/en/4539-212
09:43
we're a fast-food platform."
https://e-vid.net/v/en/4539-213
09:45
(Laughter)
https://e-vid.net/v/en/4539-214
09:47
These companies and CEOs wrap themselves
https://e-vid.net/v/en/4539-215
09:50
in a neon-blue pink rainbow
and blue blanket
and blue blanket
https://e-vid.net/v/en/4539-216
09:52
to create an illusionist trick
from their behavior each day,
from their behavior each day,
https://e-vid.net/v/en/4539-217
09:56
which is more indicative
of the spawn of Darth Vader and Ayn Rand.
of the spawn of Darth Vader and Ayn Rand.
https://e-vid.net/v/en/4539-218
09:59
Why? Because we as progressives
are seen as nice but weak.
are seen as nice but weak.
https://e-vid.net/v/en/4539-219
10:04
If Sheryl Sandberg had written
a book on gun rights
a book on gun rights
https://e-vid.net/v/en/4539-220
10:09
or on the pro-life movement,
https://e-vid.net/v/en/4539-221
10:12
would they be flying Sheryl to Cannes?
https://e-vid.net/v/en/4539-222
10:14
No.
https://e-vid.net/v/en/4539-223
10:17
And I'm not doubting
their progressive values,
their progressive values,
https://e-vid.net/v/en/4539-224
10:19
but it foots to shareholder value,
https://e-vid.net/v/en/4539-225
10:21
because we as progressives
are seen as weak.
are seen as weak.
https://e-vid.net/v/en/4539-226
10:23
They're so nice -- remember Microsoft?
https://e-vid.net/v/en/4539-227
10:25
They didn't seem as nice,
https://e-vid.net/v/en/4539-228
10:27
and regulators stepped in much earlier
than the regulators now,
than the regulators now,
https://e-vid.net/v/en/4539-229
10:29
who would never step in
on those nice, nice people.
on those nice, nice people.
https://e-vid.net/v/en/4539-230
10:33
I'm about to get on a plane tonight,
https://e-vid.net/v/en/4539-231
10:37
and I'm going to have a guy
named Roy from TSA molest me.
named Roy from TSA molest me.
https://e-vid.net/v/en/4539-232
10:39
If I am suspected of a DUI
on the way home,
on the way home,
https://e-vid.net/v/en/4539-233
10:41
I can have blood taken from my person.
https://e-vid.net/v/en/4539-234
10:45
But wait! Don't tap into the iPhone --
https://e-vid.net/v/en/4539-235
10:48
it's sacred.
https://e-vid.net/v/en/4539-236
10:51
This is our new cross.
https://e-vid.net/v/en/4539-237
10:53
It shouldn't be the iPhone X,
https://e-vid.net/v/en/4539-238
10:54
it should be called the "iPhone Cross."
https://e-vid.net/v/en/4539-239
10:56
We have our religion; it's Apple.
https://e-vid.net/v/en/4539-240
10:58
Our Jesus Christ is Steve Jobs,
https://e-vid.net/v/en/4539-241
11:00
and we've decided this is holier
than our person, our house
than our person, our house
https://e-vid.net/v/en/4539-242
11:02
or our computer.
https://e-vid.net/v/en/4539-243
11:05
We have become totally out of control
https://e-vid.net/v/en/4539-244
11:06
with the gross idolatry
of innovation and of youth.
of innovation and of youth.
https://e-vid.net/v/en/4539-245
11:09
We no longer worship
at the altar of character,
at the altar of character,
https://e-vid.net/v/en/4539-246
11:13
of kindness,
https://e-vid.net/v/en/4539-247
11:15
but of innovation and people
who create shareholder value.
who create shareholder value.
https://e-vid.net/v/en/4539-248
11:16
Amazon has become so powerful
in the marketplace,
in the marketplace,
https://e-vid.net/v/en/4539-249
11:20
it can conduct Jedi mind tricks.
https://e-vid.net/v/en/4539-250
11:23
It can begin damaging other industries
just by looking at them.
just by looking at them.
https://e-vid.net/v/en/4539-251
11:24
Nike announces they're distributing
on Amazon, their stock goes up,
on Amazon, their stock goes up,
https://e-vid.net/v/en/4539-252
11:27
every other footwear stock goes down.
https://e-vid.net/v/en/4539-253
11:31
When Amazon stock goes up,
the rest of retail stocks go down,
the rest of retail stocks go down,
https://e-vid.net/v/en/4539-254
11:33
because they assume what's good
for Amazon is bad for everybody else.
for Amazon is bad for everybody else.
https://e-vid.net/v/en/4539-255
11:36
They cut the cost on salmon 33 percent
when they acquired Whole Foods.
when they acquired Whole Foods.
https://e-vid.net/v/en/4539-256
11:39
In between the time they announced
the acquisition of Whole Foods
the acquisition of Whole Foods
https://e-vid.net/v/en/4539-257
11:43
and when it closed,
https://e-vid.net/v/en/4539-258
11:46
Kroger, the largest
pure-play grocer in America,
pure-play grocer in America,
https://e-vid.net/v/en/4539-259
11:48
shed a third of its value,
https://e-vid.net/v/en/4539-260
11:50
because Amazon purchased a grocer
one-eleventh the size of Kroger.
one-eleventh the size of Kroger.
https://e-vid.net/v/en/4539-261
11:52
I got very lucky.
https://e-vid.net/v/en/4539-262
11:59
I predicted the acquisition
of Whole Foods by Amazon
of Whole Foods by Amazon
https://e-vid.net/v/en/4539-263
12:00
the week before it happened.
https://e-vid.net/v/en/4539-264
12:03
This is me boasting; I said
this publicly in the media.
this publicly in the media.
https://e-vid.net/v/en/4539-265
12:05
This was the largest
acquisition in their history,
acquisition in their history,
https://e-vid.net/v/en/4539-266
12:07
they'd never made
an acquisition over a billion,
an acquisition over a billion,
https://e-vid.net/v/en/4539-267
12:10
and people asked, "How did you know this?"
https://e-vid.net/v/en/4539-268
12:12
So I'm letting this very impressive
audience in on the secret.
audience in on the secret.
https://e-vid.net/v/en/4539-269
12:14
How did I know this?
https://e-vid.net/v/en/4539-270
12:18
I'm going to tell you how I knew.
https://e-vid.net/v/en/4539-271
12:19
I bark at Alexa all day long
https://e-vid.net/v/en/4539-272
12:21
and try to figure out what's going on.
https://e-vid.net/v/en/4539-273
12:24
(Scott Galloway) Alexa, buy whole milk.
https://e-vid.net/v/en/4539-274
12:26
(Alexa) I couldn't find
anything for whole milk,
anything for whole milk,
https://e-vid.net/v/en/4539-275
12:29
so I've added whole milk
to your shopping list.
to your shopping list.
https://e-vid.net/v/en/4539-276
12:31
SG: Then I asked,
https://e-vid.net/v/en/4539-277
12:34
(SG) Alexa, buy organic foods.
https://e-vid.net/v/en/4539-278
12:35
(Alexa) The top search result
for organic food
for organic food
https://e-vid.net/v/en/4539-279
12:38
is Plum Organics baby food,
banana and pumpkin,
banana and pumpkin,
https://e-vid.net/v/en/4539-280
12:41
12-pack of four ounces each.
https://e-vid.net/v/en/4539-281
12:44
It's 15 dollars total.
https://e-vid.net/v/en/4539-282
12:46
Would you like to buy it?
https://e-vid.net/v/en/4539-283
12:48
SG: And then, as often happens at my age,
https://e-vid.net/v/en/4539-284
12:49
I got confused.
https://e-vid.net/v/en/4539-285
12:51
(SG) Alexa, buy whole foods.
https://e-vid.net/v/en/4539-286
12:52
(Alexa) I have purchased the outstanding
stock of Whole Foods Incorporated
stock of Whole Foods Incorporated
https://e-vid.net/v/en/4539-287
12:56
at 42 dollars per share.
https://e-vid.net/v/en/4539-288
12:59
I have charged 13.7 billion
to your American Express card.
to your American Express card.
https://e-vid.net/v/en/4539-289
13:01
(Laughter)
https://e-vid.net/v/en/4539-290
13:05
SG: I thought that'd be funnier.
https://e-vid.net/v/en/4539-291
13:07
(Laughter)
https://e-vid.net/v/en/4539-292
13:09
We've personified these companies,
https://e-vid.net/v/en/4539-293
13:11
and just as when you're really angry
over every little thing someone does
over every little thing someone does
https://e-vid.net/v/en/4539-294
13:12
in your life and relationships,
https://e-vid.net/v/en/4539-295
13:16
you've got to ask yourself,
https://e-vid.net/v/en/4539-296
13:17
"What's going on here?
Why are we so disappointed in technology?"
Why are we so disappointed in technology?"
https://e-vid.net/v/en/4539-297
13:19
I believe it's because the ratio
of one-percent pursuit
of one-percent pursuit
https://e-vid.net/v/en/4539-298
13:22
of shareholder value
https://e-vid.net/v/en/4539-299
13:24
and 99 percent the betterment of humanity
https://e-vid.net/v/en/4539-300
13:26
that technology used to play
https://e-vid.net/v/en/4539-301
13:28
has been flipped,
https://e-vid.net/v/en/4539-302
13:29
and now we're totally focused
on shareholder value instead of humanity.
on shareholder value instead of humanity.
https://e-vid.net/v/en/4539-303
13:31
One hundred thousand people came together
for the Manhattan Project
for the Manhattan Project
https://e-vid.net/v/en/4539-304
13:34
and literally saved the world.
https://e-vid.net/v/en/4539-305
13:37
Technology saved the world.
https://e-vid.net/v/en/4539-306
13:39
My mother was a four-year-old Jew
living in London at the outset of the war.
living in London at the outset of the war.
https://e-vid.net/v/en/4539-307
13:40
If we had not won the footrace
towards splitting the atom,
towards splitting the atom,
https://e-vid.net/v/en/4539-308
13:44
would she have survived?
https://e-vid.net/v/en/4539-309
13:47
It's unlikely.
https://e-vid.net/v/en/4539-310
13:49
Twenty-five years later,
https://e-vid.net/v/en/4539-311
13:50
the most impressive accomplishment,
arguably, ever in all of humankind:
arguably, ever in all of humankind:
https://e-vid.net/v/en/4539-312
13:52
put a man on the moon.
https://e-vid.net/v/en/4539-313
13:56
Four hundred thirty thousand Canadians,
British and Americans came together,
British and Americans came together,
https://e-vid.net/v/en/4539-314
13:57
again, with very basic technology,
https://e-vid.net/v/en/4539-315
14:01
and put a man on the moon.
https://e-vid.net/v/en/4539-316
14:03
Now we have the 700,000
best and brightest,
best and brightest,
https://e-vid.net/v/en/4539-317
14:04
and these are the best and brightest
from the four corners of the earth.
from the four corners of the earth.
https://e-vid.net/v/en/4539-318
14:08
They are literally playing with lasers
relative to slingshots,
relative to slingshots,
https://e-vid.net/v/en/4539-319
14:11
relative to the squirt gun.
https://e-vid.net/v/en/4539-320
14:15
They have the GDP of India to work at.
https://e-vid.net/v/en/4539-321
14:17
And after studying
these companies for 10 years,
these companies for 10 years,
https://e-vid.net/v/en/4539-322
14:19
I know what their mission is.
https://e-vid.net/v/en/4539-323
14:22
Is it to organize the world's information?
https://e-vid.net/v/en/4539-324
14:23
Is it to connect us?
https://e-vid.net/v/en/4539-325
14:26
Is it to create greater comity of man?
https://e-vid.net/v/en/4539-326
14:27
It isn't.
https://e-vid.net/v/en/4539-327
14:30
I know why we have brought together --
https://e-vid.net/v/en/4539-328
14:32
I know that the greatest collection
of IQ capital and creativity,
of IQ capital and creativity,
https://e-vid.net/v/en/4539-329
14:33
that their sole mission is:
https://e-vid.net/v/en/4539-330
14:38
to sell another fucking Nissan.
https://e-vid.net/v/en/4539-331
14:40
My name is Scott Galloway, I teach at NYU,
and I appreciate your time.
and I appreciate your time.
https://e-vid.net/v/en/4539-332
14:42
(Applause)
https://e-vid.net/v/en/4539-333
14:46
Chris Anderson: Not planned,
https://e-vid.net/v/en/4539-334
14:54
but you prompted
some questions in me, Scott.
some questions in me, Scott.
https://e-vid.net/v/en/4539-335
14:56
(Laughter)
https://e-vid.net/v/en/4539-336
14:59
That was a spectacular rant.
https://e-vid.net/v/en/4539-337
15:00
SG: Is this like Letterman?
https://e-vid.net/v/en/4539-338
15:02
When you do well,
he calls you onto the couch?
he calls you onto the couch?
https://e-vid.net/v/en/4539-339
15:03
CA: No, no, you're going to the heart
of the conversation right now.
of the conversation right now.
https://e-vid.net/v/en/4539-340
15:06
Everyone's aware that after years
of worshipping Silicon Valley,
of worshipping Silicon Valley,
https://e-vid.net/v/en/4539-341
15:10
suddenly the worm has turned
https://e-vid.net/v/en/4539-342
15:16
and in such a big way.
https://e-vid.net/v/en/4539-343
15:18
To some people here, it will just feel
like you're piling on,
like you're piling on,
https://e-vid.net/v/en/4539-344
15:20
you're kicking the kids who've already
been kicked to pieces anyway.
been kicked to pieces anyway.
https://e-vid.net/v/en/4539-345
15:23
Don't you feel any empathy
for them at all?
for them at all?
https://e-vid.net/v/en/4539-346
15:27
SG: None whatsoever.
https://e-vid.net/v/en/4539-347
15:29
Look, this is the issue:
https://e-vid.net/v/en/4539-348
15:31
it's not their fault, it's our fault.
https://e-vid.net/v/en/4539-349
15:33
They're for-profit companies.
https://e-vid.net/v/en/4539-350
15:35
They're not concerned
with the condition of our souls.
with the condition of our souls.
https://e-vid.net/v/en/4539-351
15:37
They're not going to take care of us
when we get older.
when we get older.
https://e-vid.net/v/en/4539-352
15:40
We have set up a society that values
shareholder value over everything,
shareholder value over everything,
https://e-vid.net/v/en/4539-353
15:42
and they're doing what
they're supposed to be doing.
they're supposed to be doing.
https://e-vid.net/v/en/4539-354
15:46
But we need to elect people,
https://e-vid.net/v/en/4539-355
15:49
and we need to force
ourselves to force them
ourselves to force them
https://e-vid.net/v/en/4539-356
15:50
to be subject to the same scrutiny
https://e-vid.net/v/en/4539-357
15:52
that the rest of business
endures, full stop.
endures, full stop.
https://e-vid.net/v/en/4539-358
15:54
CA: There's another narrative
https://e-vid.net/v/en/4539-359
15:56
that is arguably equally
consistent with the facts,
consistent with the facts,
https://e-vid.net/v/en/4539-360
15:58
which is that there actually is good
intent in much of the leadership --
intent in much of the leadership --
https://e-vid.net/v/en/4539-361
16:01
I won't say everyone, necessarily --
https://e-vid.net/v/en/4539-362
16:08
many of the employees.
https://e-vid.net/v/en/4539-363
16:10
We all know people who work
in those companies,
in those companies,
https://e-vid.net/v/en/4539-364
16:12
and they still are pretty convincing
that their mission is to --
that their mission is to --
https://e-vid.net/v/en/4539-365
16:15
so, the alternative narrative
is that there have been
is that there have been
https://e-vid.net/v/en/4539-366
16:18
unintended consequences here,
https://e-vid.net/v/en/4539-367
16:22
that the technologies
that we're unleashing,
that we're unleashing,
https://e-vid.net/v/en/4539-368
16:24
the algorithms, that we're attempting
to personalize the internet, for example,
to personalize the internet, for example,
https://e-vid.net/v/en/4539-369
16:26
have A, resulted in weird effects
like filter bubbles
like filter bubbles
https://e-vid.net/v/en/4539-370
16:31
that we weren't expecting;
https://e-vid.net/v/en/4539-371
16:37
and B, made themselves vulnerable
to weird things like --
to weird things like --
https://e-vid.net/v/en/4539-372
16:38
oh, I don't know, Russian
hackers creating accounts
hackers creating accounts
https://e-vid.net/v/en/4539-373
16:41
and doing things that we didn't expect.
https://e-vid.net/v/en/4539-374
16:44
Isn't the unintended consequence
a possibility here?
a possibility here?
https://e-vid.net/v/en/4539-375
16:46
SG: I don't think --
https://e-vid.net/v/en/4539-376
16:51
I'm pretty sure, statistically,
https://e-vid.net/v/en/4539-377
16:52
they're no less or better people
than any other organization
than any other organization
https://e-vid.net/v/en/4539-378
16:54
that has 100,000 or more people.
https://e-vid.net/v/en/4539-379
16:57
I don't think they're bad people.
https://e-vid.net/v/en/4539-380
16:58
As a matter of fact, I would argue
https://e-vid.net/v/en/4539-381
17:00
that there's a lot of very
civic-minded, decent leadership.
civic-minded, decent leadership.
https://e-vid.net/v/en/4539-382
17:02
But this is the issue:
https://e-vid.net/v/en/4539-383
17:05
when you control 90 percent
points of share in a market, search,
points of share in a market, search,
https://e-vid.net/v/en/4539-384
17:06
that is now bigger than the entire
advertising market of any nation,
advertising market of any nation,
https://e-vid.net/v/en/4539-385
17:10
and you're primarily compensated
and trying to develop economic security
and trying to develop economic security
https://e-vid.net/v/en/4539-386
17:14
for you and the families
of your employees,
of your employees,
https://e-vid.net/v/en/4539-387
17:17
to increase that market share,
https://e-vid.net/v/en/4539-388
17:19
you can't help but leverage
all the power at your disposal.
all the power at your disposal.
https://e-vid.net/v/en/4539-389
17:21
And that is the basis for regulation,
https://e-vid.net/v/en/4539-390
17:24
and it's the basis for the truism
throughout history
throughout history
https://e-vid.net/v/en/4539-391
17:26
that power corrupts.
https://e-vid.net/v/en/4539-392
17:28
They're not bad people;
https://e-vid.net/v/en/4539-393
17:30
we've just let them get out of control.
https://e-vid.net/v/en/4539-394
17:31
CA: So maybe the case
is slightly overstated?
is slightly overstated?
https://e-vid.net/v/en/4539-395
17:34
I know at least a bit --
https://e-vid.net/v/en/4539-396
17:38
Larry Page, for example, Jeff Bezos --
https://e-vid.net/v/en/4539-397
17:40
I don't actually believe
they wake up thinking,
they wake up thinking,
https://e-vid.net/v/en/4539-398
17:42
"I've got to sell a fucking Nissan."
https://e-vid.net/v/en/4539-399
17:45
I don't think they think that.
https://e-vid.net/v/en/4539-400
17:47
I think they are trying to build
something cool, and are probably,
something cool, and are probably,
https://e-vid.net/v/en/4539-401
17:48
in moments of reflection,
https://e-vid.net/v/en/4539-402
17:54
as horrified that some of the things
that have happened as we might be.
that have happened as we might be.
https://e-vid.net/v/en/4539-403
17:55
So is there a different way
of framing this,
of framing this,
https://e-vid.net/v/en/4539-404
17:59
to say that when your model
is advertising,
is advertising,
https://e-vid.net/v/en/4539-405
18:04
that there are dangers there
that you have to take on more explicitly?
that you have to take on more explicitly?
https://e-vid.net/v/en/4539-406
18:09
SG: I think it's very difficult
to set an organization up as we do,
to set an organization up as we do,
https://e-vid.net/v/en/4539-407
18:14
to pursue shareholder value
above all else.
above all else.
https://e-vid.net/v/en/4539-408
18:19
They're not non-profits.
https://e-vid.net/v/en/4539-409
18:21
The reason people go to work there
is they want to create economic security
is they want to create economic security
https://e-vid.net/v/en/4539-410
18:22
for them and their families,
https://e-vid.net/v/en/4539-411
18:26
mostly first and foremost.
https://e-vid.net/v/en/4539-412
18:27
And when you get to a point where
you control so much economic power,
you control so much economic power,
https://e-vid.net/v/en/4539-413
18:29
you use all the weapons at your disposal.
https://e-vid.net/v/en/4539-414
18:32
I don't think they're bad people,
https://e-vid.net/v/en/4539-415
18:34
but I think the role of government
and the role of us as consumers
and the role of us as consumers
https://e-vid.net/v/en/4539-416
18:36
and people who elect our officials
https://e-vid.net/v/en/4539-417
18:39
is to ensure that there
are some checks here.
are some checks here.
https://e-vid.net/v/en/4539-418
18:41
And we have given
them the mother of all hall passes
them the mother of all hall passes
https://e-vid.net/v/en/4539-419
18:43
because we find them just so fascinating.
https://e-vid.net/v/en/4539-420
18:46
CA: Scott, eloquently put,
spectacularly put.
spectacularly put.
https://e-vid.net/v/en/4539-421
18:48
Mark Zuckerberg, Jeff Bezos,
Larry Page, Tim Cook, if you're watching,
Larry Page, Tim Cook, if you're watching,
https://e-vid.net/v/en/4539-422
18:51
you're welcome to come and make
the counterargument as well.
the counterargument as well.
https://e-vid.net/v/en/4539-423
18:56
Scott, thank you so much.
https://e-vid.net/v/en/4539-424
18:59
SG: Thanks very much.
https://e-vid.net/v/en/4539-425
19:00
(Applause)
https://e-vid.net/v/en/4539-426
19:02
About the speaker:
Scott Galloway - Professor of marketingScott Galloway teaches brand strategy and digital marketing and the NYU Stern School of Business.
Why you should listen
Scott Galloway is the founder of L2 Inc, a professor of marketing at the NYU Stern School of Business and author of The Four: The Hidden DNA of Apple, Amazon, Facebook, and Google. He was named "one of the world's 50 best business school professors” by Poets & Quants in 2012. He is also the founder of Red Envelope and Prophet Brand Strategy. He was elected to the World Economic Forum's Global Leaders of Tomorrow and has served on the boards of directors of Urban Outfitters, Eddie Bauer, The New York Times Company and UC Berkeley's Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.
Scott Galloway | Speaker | TED.com
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