When Success Means 'Do Evil and Scale, until Nobody can Catch you': A Mother's Stand Against Capitalist Extremes

"Do Evil and Scale, until Nobody can Catch you": A Capitalist Belief a Mother can't Accept

The phrase "Do evil and scale, until nobody can catch you" represents a disturbing mindset that's become increasingly prevalent in the world of startups and tech. This belief was brought to my attention during a recent dinner conversation with my 16-year-old son. He shared a piece of advice he received from a startup mogul he looks up to: "Do a lot of evil and seize the market until you are too big to fail or hire the best lawyer to clean up your mess." Hearing this from my son left me shaken. It made me realize how deeply such unethical beliefs have penetrated the entrepreneurial culture, encouraging young minds to equate success with power and dominance, regardless of the means used to achieve it.

A Dinner Discussion With My Son

That dinner is one I won't soon forget. As my son recounted the words of this startup mogul, I could see the admiration in his eyes, the kind of admiration that should be reserved for genuine role models. The mogul had built and sold multiple ventures, cultivating an image of "success" that many young people, especially in Southern California, idolize. My son seemed to have taken this advice to heart. When my husband, a manager at a large tech company, and I tried to challenge the ethical implications of such a mindset, we were dismissed. "You losers know nothing," he said with a tone of finality that stung more than I care to admit.

I suppose I could understand why he sees us that way. To him, I might seem like a "loser." I took a mortgage to finish my degree in literature and now teach part-time at a university for a modest salary. I haven’t amassed wealth or made a name for myself in the business world, so perhaps in his eyes, I lack the credentials to refute the startup mogul's advice. He even mentioned Eric Schmidt, former CEO of Google, who had given similar advice in a recent interview. It’s disheartening to see how easily these ideas take root in young, impressionable minds.

Sir Eric Schmidt's Controversial Advice

Eric Schmidt’s comments were particularly unsettling. In a recent interview at Stanford University, Schmidt suggested that AI startups could "steal" intellectual property and then hire lawyers to "clean up the mess." The interview was soon made private after sparking widespread criticism, but the damage was done. His remarks reflected a pragmatic yet morally questionable approach to success in the tech industry, one that my son, unfortunately, seemed to resonate with.

"Do Evil and Scale"—An Uncomfortable Reality

After our heated discussion, I couldn't help but ponder whether there was some truth to this troubling philosophy. It didn’t take long to realize that many big players—banks, tech companies, and others—have indeed used ethically dubious tactics to secure their success. The more I thought about it, the more examples came to mind.

For instance, Microsoft in the 1990s was embroiled in an antitrust lawsuit for leveraging its dominance in the operating system market to suppress competition. They eventually settled, but not before showcasing how companies can use aggressive tactics to maintain their market position. Google, another example, has faced numerous antitrust investigations worldwide. Even after a record €2.42 billion fine from the European Union for abusing its market dominance, it still stands strong in search and online advertising.

Facebook's Cambridge Analytica scandal was another glaring example. Millions of users had their data harvested without consent to influence political outcomes. Despite a $5 billion fine by the FTC and a massive public outcry, Facebook continues to be a dominant force in social media and online advertising. Uber, too, has engaged in questionable practices, like using software to evade law enforcement in cities where its service was restricted. And yet, Uber continues to operate globally.

Then there are the tech giants like Apple, Amazon, and Google, which use complex tax structures to minimize their tax liabilities. While these practices are often legal, they raise serious ethical questions about whether these companies are contributing their fair share to society. Labor practices also come to mind—Amazon, for example, has faced criticism for poor working conditions and aggressive anti-union tactics. Despite numerous investigations and fines, the company remains one of the most valuable in the world.

Unethical Success Stories in Cryptocurrency and Online Fraud

The tech giants aren't the only ones. The worlds of cryptocurrency and online fraud offer further examples of unethical or illegal practices leading to significant power and influence. Take BitConnect and OneCoin, for instance. They defrauded investors of billions by promising high returns through fraudulent operations, exploiting the lack of regulation in the cryptocurrency market.

Mt. Gox was another glaring case. Once the largest Bitcoin exchange, its collapse due to hacking and mismanagement highlighted the absence of oversight in early cryptocurrency markets. And who can forget Silk Road? This online black market used the dark web and cryptocurrencies to facilitate illegal activities, offering a degree of anonymity that made law enforcement's job difficult. Mexican drug cartels have also turned to cryptocurrencies for money laundering, taking advantage of their decentralized nature to evade authorities.

Too Big to Fail: The Untouchables

Some entities and individuals have become so powerful they are considered "too big to fail." Their vast resources and influence often allow them to evade full accountability. The 2008 financial crisis comes to mind, where major banks were involved in risky practices that led to an economic collapse. Despite their role, very few high-level executives faced prosecution. Governments bailed these institutions out to prevent a complete financial system collapse, showing how entities can use their influence to escape severe consequences.

HSBC's money laundering case in 2012 is another example. Despite facilitating money laundering for drug cartels, HSBC avoided criminal charges by paying a $1.9 billion settlement. It demonstrated how large financial institutions could navigate legal challenges using their size and global influence.

Companies like Purdue Pharma, owned by the Sackler family, played a significant role in the opioid crisis through aggressive marketing that downplayed the addiction risks of their drugs. Although they have faced numerous lawsuits and settlements, much of the family's wealth remains protected. Volkswagen's "Dieselgate" scandal, where they installed software to cheat emissions tests, resulted in fines and settlements, but no high-level executives faced prison time in the U.S.

Is This Really Success?

It's true that some have "succeeded" by engaging in unethical or illegal practices, but is this really success? While these entities may avoid immediate consequences, the long-term ramifications can include a loss of reputation and public trust. Companies like Enron and individuals like Bernie Madoff eventually faced severe consequences, serving as reminders that such evasion is not guaranteed indefinitely.

Pursuing a strategy based on unethical or illegal behavior can have significant negative impacts on society and the environment. The financial crises, public health crises, and social inequities that result from such actions demonstrate the broader harm caused by following such advice.

There is also a growing movement toward holding powerful entities accountable. Regulatory frameworks are evolving, and public scrutiny, especially in the age of social media, can force change. Even the tech companies that have often evaded full accountability are increasingly facing regulatory challenges and public pressure to act more ethically.

Engaging in unethical practices comes with significant risks. Not all who pursue this path succeed in evading the law or public backlash. Theranos and Elizabeth Holmes serve as a recent example where deceit led to criminal convictions. There are also numerous companies and entrepreneurs who have succeeded while adhering to ethical practices. Businesses like Patagonia and Ben & Jerry’s demonstrate that it’s possible to build a successful, sustainable business while maintaining a strong ethical stance.

Our Capitalism Is Broken

Reflecting on these examples, it's clear that many of the problems in our economy and society are tied to the dynamics of capitalism, power structures, regulatory failures, and cultural values. Wealth tends to concentrate in the hands of a few, creating significant disparities in power and opportunity. Studies show a widening gap between the rich and the poor, with wages for lower and middle-class workers stagnating while executive compensation soars.

Corporations often use their resources to influence legislation and regulation in their favor, a practice known as lobbying. In the U.S., corporations spend billions on lobbying to shape policies that benefit their interests, sometimes at the expense of public welfare. When regulatory agencies are dominated by the industries they are supposed to regulate, policies often favor large corporations, allowing them to operate with fewer constraints.

Market failures also play a role. Capitalist markets often fail to account for negative externalities, such as environmental damage. Industries that pollute may not bear the full cost of their actions, leading to widespread environmental degradation. Large corporations can dominate markets, reducing competition and exploiting workers. Globalization has led to a "race to the bottom" in labor standards, contributing to income inequality and poor working conditions.

In capitalist societies, there’s a tendency to value material success and consumption over social and environmental well-being. This cultural focus drives unsustainable economic practices and exacerbates inequality. The pursuit of short-term profits over long-term sustainability leads to corporate behaviors that can harm society, such as cutting corners on safety, environmental practices, or labor rights.

Expert Perspectives on the Future

Experts generally agree that our current societal and economic structures are unsustainable in the long run. They envision a future with a more inclusive, equitable, and sustainable society. This involves restructuring economic systems to reduce inequality, incorporating sustainability into economic practices, and prioritizing social welfare.

Thomas Piketty advocates for wealth redistribution through progressive taxation and universal basic income to reduce inequality. Joseph Stiglitz suggests a reformed capitalism with stronger regulations, fairer tax systems, and investment in public goods. Naomi Klein calls for a societal shift towards sustainability, emphasizing the need to combat climate change by reducing reliance on fossil fuels. Meanwhile, Kate Raworth proposes "Doughnut Economics," focusing on meeting human needs within the planet's ecological boundaries.

Technological integration and human-centric policies are also vital. Yuval Noah Harari warns of

the challenges posed by AI and automation, suggesting that societies need to rethink job structures and economic support systems like UBI to ensure a future where technology benefits everyone. Mariana Mazzucato advocates for the state to take an active role in guiding innovation and technology for the public good.

Amartya Sen stresses the importance of enhancing human capabilities, focusing on health, education, and social safety nets. Rutger Bregman promotes the idea of universal basic income and reduced working hours to create a more equitable and humane society.

My Advice to Future Young Leaders

If I could offer my son and other young entrepreneurs any advice, it would be to focus on building something that matters. True success isn’t about scaling at all costs. It’s about creating value by solving real problems and adding something positive to society. It’s about building trust and maintaining integrity, establishing a reputation for transparency and ethical behavior.

Sustainability should be at the forefront of every decision. Consider the environmental and social impacts of your business choices, aiming for growth that benefits all stakeholders. Learn to embrace challenges and failures, but always within ethical boundaries. Inclusive growth should be the goal—create opportunities and positive outcomes for the broader community, not just for personal or corporate gain.

The business environment we cultivate should be one that succeeds not just in financial terms but in contributing positively to society. At the end of the day, being too big to fail shouldn’t mean being too big to care.