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Culture War Roundup for the week of November 14, 2022

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I think it's totally plausible from a technical standpoint if those 50 people are talented and hardworking. All the hard stuff for a basic scaled social media platform is a cloud API or open source library these days, and Twitter is past its startup design sprint anyway. A low cost structure would give him a lot of headroom to ignore the problems that his employee bloat is aimed at addressing right now.

The issue is that a 50-person giant social media empire isn't a stable equilibrium. It's similar to why you rarely see charities that spend ~100% of their funds on the cause: if spending a dollar on marketing gets you more than a dollar in increased contributions, then why wouldn't you do that? Likewise if you had a scaled 50-person giant social media empire, then the return of hiring a marginal employee is much greater than the cost.

The issue for Musk specifically is that he needs to pay a billion dollars a year in interest payments for the leverage that he took on in order to acquire Twitter. So he doesn't have the luxury of running the shop at low cost and telling advertisers to take it or leave it.

Since he needs advertisers to pay his interest, he needs to solve a lot of the messy social problems that drove a lot of that employee bloat in the first place. He needs good sales teams. He needs good marketing. He needs good moderation to keep the tone of Twitter consistent with advertisers' brand expectations. He needs giant compliance teams to keep up with the onerous, schizophrenic, internally inconsistent and offensive regulations imposed by the likes of Europe and India. None of those are purely technical problems; they require giant teams of people, and (pre-AGI) they always will. Why? Because they aren't static goals; they're adversarial goals with elements of competition. They're basically a policy market, in the sense that if it could all be automated, advertisers and regulators would have more headroom to increase the onerousness and contradiction of their demands until it couldn't. The only check on advertisers' demands of Twitter is how they compare with other social media platforms in terms of brand safety, and the only check on regulators' demands of Twitter is how onerous their regulations can be before Twitter will go dark in their country (or before the US government initiates WTO actions against them, and no one is betting on Biden's willingness to bail out Elon Musk in the international policy market).

I dunno if he'll pull it off. I suspect he will, but no outcome here will surprise me.

One outcome that particularly wouldn't surprise me is if Musk capitalizes on the chaos to threaten his lenders with bankruptcy, and uses that threat to buy out his debt for 20-50 cents on the dollar. Good luck marketing this debt, guys: no one has ever demonstrated that Twitter can have positive economic value, and a high-profile failure by Elon Musk isn't going to increase anyone's estimation of those odds. Then his cost structure becomes much simpler and he can tell advertisers and foreign regulators to get fucked, the prospect of which at this point I am sure provides him with near-sexual arousal.