Astral Codex Ten

Fortune 500

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Fortune 500

Article

Fortune 500 is a recurring organization in the Astral Codex Ten archive, appearing 2 times across 2 issues between December 20, 2022 and May 07, 2025. The archive places it in contexts such as “CEO of a Fortune 500 company”; “if you took any of the Fortune 500 CEOs”. It most often appears alongside Donald Trump, FDA, Trump.

Metadata

  • Category: Organizations
  • Mention count: 2
  • Issue count: 2
  • First seen: December 20, 2022
  • Last seen: May 07, 2025

Appears In

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

Prediction Market FAQ
December 20, 2022 · Original source
If we try this plan, then looking back on it ten years from now, will we agree it was a mistake? Prediction markets give us a way to get accurate and canonical answers to questions like these, and to short circuit the usual discussions about how biased different information sources are. See below for some clever, more exotic ways we can use prediction markets. 4. What are the most common objections to prediction markets? These are various objections, some wrongheaded, some true but nonfatal. There are many of them, making this section very long - you might want to skip over any objections you’re not worried about. 4.1: Would prediction markets be ruined by insider trading? That is, suppose there is a market on whether President Biden will resign before the end of his term. President Biden has special knowledge of this, so he could bet on the true outcome and make a lot of money unfairly. He could even change his behavior (eg resign at an unexpected time) just to make more money. Isn’t this unfair? One answer is that normal markets (eg the stock market) face these same problems, but manage them by making insider trading illegal. These laws don’t always work perfectly, but they work well enough that most people are happy to buy stocks. Another answer is that, while this is bad for other investors, it’s not bad for the accuracy of prediction markets, or their use in creating unbiased social consensuses. In fact, knowing that President Biden is insider-trading on a “Will President Biden resign?” prediction market should only increase your confidence in it getting the right answer! This is slightly too rosy, because if insider trading is bad enough for other investors, they might just not trade. This would be a partial effect: investors would be willing to overcome their fear for a big enough payday, meaning that concerns about insider trading probably would increase the likelihood of persistent small mispricings while still not allowing bigger ones (with the exact size depending on how frequent the insider trading was). It’s unclear whether this negative effect would be bigger or smaller than the positive effect from insiders having more information, so in different situations the market might end up either more or less accurate. Overall, economists are split on whether insider trading makes markets more or less accurate. Commodities markets don’t really have insider trading laws right now, and seem to be about as accurate as anything else. I hope prediction markets will experiment with different insider trading rules, and the ones that best satisfy all participants and create the most accurate results will win out. If for some reason this doesn’t work, I don’t expect it to make too much difference either way. 4.2: Would prediction markets encourage harmful or illegal activities? What about the risk of insider trading by committing harmful / illegal acts? That is, could President Biden’s doctor decide to poison him, then make money when he has to resign due to ill health? I think the strongest evidence against is that this basically never happens in stock markets. Tesla stock would plummet if Elon Musk died or resigned, but nobody realistically worries that Musk’s doctor will short Tesla and poison him. Lots of corporations’ stocks would sink to zero if you burned down their offices and factories, but nobody shorts them and then commits arson. Probably this is because there are laws against doing harmful and illegal things, and people have decided that stock market gains aren’t worth breaking the law and getting punished. Since prediction markets have only a tiny fraction of the amount of money that stock markets do, probably people won’t consider it worthwhile to commit harmful actions to manipulate them either. If you were going to murder someone to profit off a market, who would you rather kill: a US politician (the PredictIt market on the presidential election has a volume of about $600,000)? Or a Fortune 500 CEO (whose companies might have market caps in the hundreds of billions)? 4.2.1: What about prediction markets in very specific harmful or illegal activities? I guess if you created a market in “Will someone burn down the 7-11 on Main Street tomorrow at 3:32 AM?”, then bet a lot of money, then did it, that would be bad. I think realistically nobody would bet against you on that. But probably prediction markets should avoid hosting markets on these very specific bad things, just to make sure. 4.3: Would prediction markets give rich people more power? That is, suppose we used prediction markets to assess socially important questions like “will the climate change by such-and-such a number of degrees by 2030?” It would be bad if rich people could manipulate our social consensus on this. But you move prediction markets by buying shares, and rich people can afford more shares than poor people. So doesn’t this mean that rich people can manipulate how concerned we are by global warming? No. See 3.2 for the general reasons why it’s very difficult or impossible to successfully manipulate a prediction market. These reasons apply to rich people too. Suppose a rich person spent $100 million to buy NO shares in “will the climate be warmer in 2030 than today?”, pushing the market’s implicit chance of global warming down to 1%. That means if there is global warming, you could multiply your money by 100x by buying YES. I would immediately invest $10,000 in this market, so that I could get $1 million back in 2030 and retire rich. My $10,000 isn’t going to be enough to fully move this market all the way back - we already said the rich person spent $100 million manipulating it. But “you can get a free $1 million quickly with no downside at an evil rich person’s expense by correcting an obvious misconception about global warming” sounds like the sort of thing that could make it to the front page of Reddit (to put it lightly). I think more than enough people would learn about this to fully correct the mispricing. Is there any amount of money that could successfully manipulate a market? I think the answer is that you need to have more money than the sum total owned by everybody else in the world who wants to make $1 million quick. And at the limit, there’s always Goldman Sachs - who watch financial markets very closely, definitely want to make $1 million quick, and have a lot of money. So I think the most honest answer to this objection is: if you are an evil rich person reading this FAQ, then it will definitely work for you. Please sink $100 million into reducing a prediction market’s chance of global warming to 1%. And make sure you tell me first, so that I can fully marvel at your evil genius. This will work great for you and nothing will possibly go wrong. 4.3.1: But wouldn’t the subtle biases of rich people (which they might genuinely believe) still affect the market more, since they have more money? No. See 3.3 for the general reasons why we should expect prediction markets to be free from subtle biases which people genuinely believe. These reasons apply to rich people too. Suppose rich people have subtle biases which make them wrong more often than poor people. And suppose rich people (wrongly) believe global warming is 75% likely, but poor people (correctly) believe it’s 99% likely. This just reduces to the Nate Silver situation earlier, with poor people playing Nate Silver. The aggregated opinion of poor people is “an expert” which is right more often than the markets. It’s easy for someone to notice this and get rich quick (in expectation) by betting on what poor people think. Since lots of people can easily notice this and want to get rich quick, eventually they will correct the mispricing. Even if rich people have so much more money than poor people that no group of poor people, however large, can ever correct a rich person mispricing, eventually some smart rich person will hit upon this strategy themselves. If no individual rich person does it, Goldman Sachs will definitely do it. 4.3.1.1: What if both rich people and poor people have biases, and neither one is consistently more right than the other? Won’t the market still reflect rich people’s biases rather than poor people’s? Not if it’s possible for anybody to notice these biases and correct for them. Treating the aggregate opinion of poor people as an expert was just one example. If the winning strategy is something like “trust rich people on financial questions, poor people on environmental questions, and the point exactly halfway between them on social questions”, then whoever discovers that strategy can get rich quick. The more often people use prediction markets, the easier it should be to detect strategies like these. 4.4: Aren’t prediction markets worse than superforecasting? “Superforecasting” refers to a variety of forecasting methods similar to those pioneered by Philip Tetlock and the Good Judgment Project. Typically, they would do something like: Ask many smart people to give probabilistic answers to a very well-specified question
Inline links: economists are split
If we decide to go with Vaccine B, will at least X people die from the disease? If the first prediction market is 60% and the second one is 40%, they might decide to use Vaccine B. Then they can give refunds to everyone who bet on the first market (since it will never be tested) and resolve the second market normally. Remember, decision-makers usually aren’t experts themselves, and have the same “which experts do I trust?” problem as the rest of us - except worse, because there are more special interests spending more money to confuse them. They could find markets like these very helpful. One downside of decision markets is that you have to be very careful to choose the right outcome. For example, if people can both die from the disease or be disabled by the disease, this market will choose the vaccine that causes the fewest deaths, regardless of how much disability it causes. Because of issues like these, decision markets should only be used as one input in decision-making, not as the entire process. Another downside is that sometimes conditionals can interact in non-intuitive ways that make conditional prediction markets inappropriate or slightly off. See this article for more details. 5.2: Politician pledge markets Suppose that President Biden pledges to cut carbon emissions in half by 2030. In theory this is a noble goal. In practice, it’s cheap talk; he can institute whatever policies he wants, but he has no incentive to make them work. By 2030 he’ll be retired and maybe even dead. Instead, he could pledge to move prediction markets about 2030 emissions. Suppose that before he made his pledge, prediction markets said there was only a 5% chance that emissions would halve by 2030. Biden might pledge that within a year, prediction markets would say there was a 80% chance of this. Then he could announce new policies. If they were good policies that would almost certainly halve emissions by 2030, the prediction markets would go up to some very high number. If they were bad policies, the prediction markets would stay low, and Biden would either have to propose better policies, or admit having failed at his pledge. For more, see Instead Of Pledging To Change The World, Pledge To Change Prediction Markets. 5.3: Attention markets Suppose you’re a very important person, like the President of the US, or the CEO of a Fortune 500 company. You want ordinary people to be able to raise important problems to your attention (for example, a threat to national security, or a major flaw in your product). But if you made your email address public, millions of people would send you dumb complaints or random screeds every day. Prediction markets could solve this. Tell people who have a complaint to start a conditional prediction market in “If the President personally looks over this complaint, will he believe it was a good use of his time?” Then agree to look over any complaints that get above 50% (plus some randomly selected ones, to encourage people to keep the probability accurate even when it’s below 50%). When you’re done, tell people whether you thought it was a good use of your time, so the market can resolve. If the markets start sending too many complaints your way, your bar for “good use of my time” will go up, and the system will naturally self-correct. I’ve sometimes used this system to resolve moderation issues around this blog, with generally good results. 5.4: Replication Markets Suppose you have one hundred scientific studies that got kind of weird results and that you think might have made a mistake somewhere. But you don’t have enough money to repeat all one hundred studies; in fact, you only have enough money to repeat one. You can open up a hundred prediction markets, like: If we decide to redo Study #1, will we get the same results?
Inline links: this article, Instead Of Pledging To Change The World, Pledge To Change Prediction Markets
Moldbug Sold Out
May 07, 2025 · Original source
A patchwork of city-states, unbound by modern “international law”, with few barriers to the free flow of capital and population. I’ll then describe how carefully Moldbug explained that you had to have these things, or else the dictatorship would fail in more or less the ways normies expect dictatorships to fail - leaving himself no room for the kind of pivot he’s trying now. 1: Classic Moldbug Believed Populist Dictatorship Would End In Disaster Classic Moldbug admitted that fascism and communism were extremely bad. He just drew different borders around political systems: fascism, communism, third world banana republic dictatorship, and democracy all cluster together as systems where coalitions rule because they can seize temporary power in a semi-lawless society. In the various totalitarianisms, it’s literal seizing of power through armed troops or secret police; in democracy, it’s electoral seizing of power through distributing the most goodies to coalition members. From here, my bolding. Clearly, the worst forms of demotism, the really bad apes, were the totalitarian systems—fascism and communism. The main difference between fascism and communism was not in mechanism, but in origin—fascist elites tended to be militarist, communist elites intellectual. But the one-party state is a clear case of convergent evolution. To a neocameralist, totalitarianism is democracy in its full-blown, most malignant form. Democracy doesn’t always deteriorate into totalitarianism, and lighting up at the gas pump doesn’t always engulf you in a ball of fire. Many people with cancer live a long time or die of something else instead. This doesn’t mean you should smoke half of Virginia before lunch. A political party is a political party. It is a large group of people allied for the purpose of seizing and wielding power. If it does not choose to arm its followers, this is only because it finds unarmed followers more useful than armed ones. If it chooses less effective strategies out of moral compunction, it will be outcompeted by some less-principled party. When one party gains full control over the state, it gains a massive revenue stream that it can divert entirely to its supporters. The result is a classic informal management structure, whose workings should be clear to anyone who watched a few episodes of The Sopranos. Without a formal ownership structure, in which the entire profit of the whole enterprise is collected and distributed centrally, money and other goodies leak from every pore. Totalitarian states are gangster states, in other words, and they tend to corruption and mismanagement. The personality cult of dictatorship is quite misleading—a totalitarian dictator has little in common with a neocameralist CEO, or even a cameralist monarch. The difference is the management structure. The CEO and the monarch owe their positions to a law which all can obey, and those who choose to obey the law are naturally a winning coalition against those who choose to break it. The dictator’s position is the result of his primacy in a pyramid of criminals. This structure is naturally unstable. There is always some other gangster who wants your job. Dictators, like Mafia chiefs, are not good at dying in bed. The internal and external violence typical of totalitarian states is best explained, I think, by this built-in mismanagement. Dictators are violent because they have to be—they use violence as an organizing principle. The totalitarian state has no principle of legitimacy that would render it impractical for an ambitious subordinate to capture the state with a coup. European monarchs made war, sometimes they were assassinated, and there were even succession struggles, but coups in the modern sense were very rare. Note that the financial logic which keeps the neocameralist state lawful does not apply in any way to the totalitarian state, because the latter does not have a stable management structure which is controlled by its shareholders. Lawlessness is not profitable for the state as a whole, but it may be quite profitable for the part that chooses lawlessness, and in the totalitarian state no one is counting as a whole. Similarly, only shareholder control gives the neocameralist state an incentive to remain small and efficient. The totalitarian state has an incentive to become large and inefficient, because every functionary has an incentive to expand his or her own department, and no bean-counter who demands that the department do more with less. In a totalitarian state, since no gangster is permanently safe from any other gangster, there is a strong incentive for anyone with power to take what he can, while he can. And there is no disincentive for him to avoid abusing a resource which neither he nor his allies benefit from. Under gangster management, the totalitarian states often engaged not only in mass murder, but mass murder of their most economically productive citizens. I’m trying to avoid subjecting you to too many Moldbug walls of text, but this is a constant hobbyhorse of his. Unless you implement his neocameralist ideology of shareholder control, your attempted autocracy will become a totalitarian state, which will be even worse than regular democracy. 2: The Dictator Must Not Be Elected The original sin of democratic/totalitarian governments is permitting power struggles. When you permit power struggles, the most power-hungry person wins. This person is probably a bad guy. But even if he isn’t, he has to optimize for gaining and maintaining power, instead of for the national interest. This usually means paying off the people who raised him to and keep him in power, i.e. corruption. Sometimes the corruption is straightforward, like giving friendly colonels vast sums from the public treasury. Other times it’s more insidious; if someone rose to power because organized labor joined their coalition, they have to overpay public unions, pass stifling pro-labor regulations, and ban whatever productive economic activity the labor unions don’t like. Therefore, we need a dictator who came to power without a struggle and doesn’t owe anyone anything. This is Moldbug’s read on “the divine right of kings”: Divine-right monarchy is very easy to understand, even for an atheist like me. We have already derived it. To an atheist, the King’s authority must be absolute, not because he is appointed by God, but because he is appointed by no one. If someone appoints him, that man is King. If their roles are divided—the famous “balance of powers” or “checks and balances”—they will struggle, and one or the other prevail. Probably the many over the few. How do you come to power without a fight? This is a tough ask, but Classic Moldbug bit the bullet: anybody who wants power is unworthy of it. You have to just sit there being worthy. When people get tired of sucking, they’ll give you power. The Procedure [for installing a virtuous government] comes in Three Steps: 1: Become worthy. 2: Accept power. 3: Rule!!1! You think I’m kidding. But I’m not. How do you become worthy? You must absolutely, 100%, avoid any kind of candidacy in elections, protesting the government, criticizing the government, thinking you could do government better than the current government, or (god forbid) deliberately trying to take power: As a reactionary, you don’t believe that political power is a human right. You will never convince anyone to adopt the same attitude, without first adopting it yourself. Since you believe others should be willing to accept the rule of the New Structure, over which they wield no power, you must be the first to make the great refusal. They must submit to the New; you must submit to the Old. The reactionary’s opinion of USG is that it is what it is. It is run by the people who run it. And at present, the present management may well be the best people in the world to run USG, and even if they’re not he can’t imagine what might be done about it—short of replacing the whole thing. This simple and final judgment, like the death penalty, admits no possible compromise. In particular, passivism is to Gandhi as Gandhi is to Hitler. Hitler, before 1933, was a violent democratic activist; Gandhi was a nonviolent democratic activist. Passivism is not any sort of activism. Passivism is passivism. In plain English, you may not even begin to consider the rest of the Procedure until you have freed yourself entirely from the desire, built-in burden though it be of the two-legged ape, for power. Break the steel rule, change your name to “Darth,” don’t expect to keep your internship at the Jedi Council. As a matter of both principle and tactics, the passivist rejects any involvement with any activity whose goal is to influence, coerce, or resist the government, either directly or indirectly. He is revolted by the thought of setting public policy. He would rather drink his own piss, than shift public opinion. He finds elections—national, state or local—grimly hilarious. And if he needs to get from Richmond to Baltimore, he drives through West Virginia. The passivist has a term for democratic activism directed by the right against the left. That term is counter-activism. Passivism does not dispute the fact that counter-activism sometimes works. For instance, it worked for Hitler. (We’ll say more about Hitler.) However, it only works in very unusual circumstances (such as those of Hitler), and is extremely dangerous when it does work (e.g., the result may be Hitler). In case this isn’t crystal-clear, the steel rule precludes, in no particular order: demonstrations, press releases, suicide bombs, lawsuits, dirty bombs, Facebook campaigns, clean bombs, mimeographed leaflets, robbing banks, interning at nonprofits, assassination, “tea parties,” journalism, bribery, grantwriting, graffiti, crypto-anarchism, balaclavas, lynching, campaign contributions, revolutionary cells, new political parties, old political parties, flash mobs, botnets, sit-ins, direct mail, monkeywrenching, and any other activist technique, violent or harmless, legal or illegal, fashionable or despicable […] In the First Step, passivism is a no-brainer. Why should you be interested in influencing OUSG? You’re trying to replace the Structure, not join it. One clear sign that you’re doing this right and haven’t been corrupted by power is that people won’t write hit pieces about your blog. I swear I’m not making this up: [A] passivist blog will appear, at worst, harmless and extremely strange. There’s something going on here, Mr. Jones. But you don’t know what it is—do you, Mr. Jones? As an existential enemy of USG, the reactionary may well deserve some immune attention. But he won’t get it, and he is quite happy with that. True fact: the author of UR has received over 7 zillion very interesting emails, all of which deserve responses, often long, that most have not received (but will). Number of hostile communications received, in over two years of blogging: zero. One can ascribe this result to many hypotheses, not all flattering, but I put it down to passivism. If you break this rule and seek electoral power, you are punished with something terrible: right-wing populism, which is basically the same as Hitler and must be prevented at all costs. [The] third tactical benefit [of passivism is] Hitler prevention. To an orthodox reactionary, Hitler is basically the poster child for what happens if you break the steel rule. Fascism is reaction, but laced with cancerous tumors of democracy—“right-wing populism,” as people say these days. If it loses it loses; if it wins, the tumors grow. An improvement on Communism, but not much of one. Just about all of Hitler’s shtick, right down to the name of his party, was ripped off from the Left. Who introduced nationalism to the Continent of Europe? The Hapsburgs, or Garibaldi? Under this camouflage, which never convinced anyone with a college education, Nazism was never in any way leftist. Rather, it was a demotic corruption of the old Prussian tradition […] Since most people are neither historians nor philosophers, the fact that Hitler was on the extreme Right, and this Reaction is also on the extreme Right, raises some natural concerns. Again: the only way to face these concerns is to (a) provide a complete engineering explanation of Hitler, and (b) include an effective anti-Hitler device in our design. The reactionary’s basic answer to the Hitler Question is the Law of Sewage. (This is not my invention, but I don’t know where I got it. Heinlein, perhaps?) The Law is: if you put a drop of wine in a barrel of sewage, you get sewage. If you put a drop of sewage in a barrel of wine, you get sewage. You’ll find that this rule applies perfectly to many fields of human endeavor. Thus, Nazism contains a great deal of reactionary wisdom, because those who created it were quite familiar with the old Continental tradition of government. However, the Nazi movement originated as a democratic political party. Thus Nazism combined the venom of democracy with the experience and efficiency of Prussia, an understandably dangerous combination […] This is where passivism, by abjuring democracy, vaccinates itself against Hitler. True: at a higher level, the reactionary seeks to cause a transition in power, and thus in a sense seeks power itself. But he is not an activist, because he is not working for power. His actions do not excite the human political instinct, the love for forming coalitions and tearing hell out of the apes across the river. For one thing, said actions bear no resemblance to normal politics. For another, they cannot bring any actual power to the actors, even if they succeed. Which, however likely, must remain intuitively implausible—if not laughable. And thus the project of reaction does not attract those with a real taste for power, which if nothing else is very un-Nazi-like. In other words - the failure mode of neoreaction (good) is right-wing populism eg Nazism (bad). You’ll know you’ve fallen into the failure mode if your reactionary movement starts with a democratic political party, or if its members are feeling normal human political emotions. If you can’t have a normal democratic party, how do you complete steps two and three - accepting power and ruling? Moldbug’s answer is complicated and not very related to our topic, but he thinks you first create the Antiversity, a shadow university system laser-focused on always telling the truth. Then you bootstrap it into a shadow government, which doesn’t engage in violent revolution or political campaigning, but just sits there being right about things (I’m imagining for example a shadow FDA that produces better drug information than the real FDA, so people gradually come to trust the shadow FDA more even though its rulings have no legal effect). Then people gradually switch their allegiance from the real government to the shadow government, until finally the shadow government proposes a pseudo-candidate in an election whose sole platform is “switch power from the real government to the shadow government”. Once he wins, he revokes the Constitution, implements the shadow government charter, and resigns. Why do you have to use this weird process instead of taking power the normal way? Because if you take power the normal way, you will fall into the trap of right-wing populism and become like Hitler: You start to see the difference between this and the Nazis. For the Nazis, the equivalent of the Antiversity was… Hitler. Have you read Hitler? I have. (The Table Talk is the Hitler to read.) Frankly, Hitler reads a lot like me, if I lost 25 IQ points from drinking lead soda, and also had a nasty case of tertiary syphilis. I may have some of Hitler’s talents—I will be the first to admit it. But I have no intention of applying for his job. I would never be able to do it, anyway. I don’t think anyone could. 2.5: The Dictator Must Not Need Anyone’s Approval This is a trivial extension of the previous point - “If someone appoints [the King], that man is King”. If the people appoint the King, the people are King, and then you’re a demotic totalitarianism. How do you avoid dependence on other people’s approval? In a democracy, you need the approval of 51% of people to win the next election; in a traditional dictatorship, you need the approval of the secret police or military to keep crushing your opponents. The reason [an unquestioned autocracy with no dissent] is peaceful and free is that we’ve defined [the autocrat’s] primary right so that it works just like a secondary right, [ie his legal rights are completely enforced by real power/control.] Hitler, Stalin and Mao, on the other hand, had enemies. Stalin and Mao, especially, basically operated under the assumption that everyone in the world wanted to kill them and take their jobs. After a while this was quite the self-fulfilling prophecy. Terrorist government—as in the Reign of Terror, a usage that’s unfortunately lapsed—is a consequence not of absolute primary title, but of insecure primary title. It is best understood as a form of civil war. So a dictator who still has enemies risks being crazy and genocidal. We’ll never get a dictator with nobody who dislikes him, but can we get a dictator with effectively no enemies - ie one whose enemies have zero chance of seizing power and so who might as well not exist? Yarvin admits this is a tough problem, but suggests cryptographically-locked weapons: In a full CDCC government, the sovereign decision and command chain is secured from end to end by military-grade cryptography. All government weapons—not just nukes, but everything right down to small arms—are inoperable without code authorization. In any civil conflict, loyal units will find that their weapons work. Disloyal units will have to improvise. The result is predictable, as results should be. That is, all weapons need a key to fire (or have a key that can prevent them from firing). The dictator owns the key. He can selectively disable weapons of rebel forces, allowing even the tiniest remnant of loyalists to easily overpower them. There are probably some implementation difficulties here; the point is that it’s definitely not democracy, nor even some kind of two-bit dictatorship where the dictator depends on the continued goodwill of the army. Why go to these lengths? Because without them, the dictator needs to curry favor through various corrupt strategies that undermine the national interest. Of these, the most malignant - the one Moldbug holds his deepest vituperation for - is fake news. Democratic parties necessarily lie, because they are not infinitely correct about everything, but they need the public to think they are. In order to maintain the support of the masses, they will lie about the nature of their policies, the details of their policies, and especially the success of their policies. There are two kinds of government: those whose formula of legitimacy depends on popular consent, and those whose doesn’t. Following contemporary usage, we can classify these as authoritarian and democratic. An authoritarian state has no need to tell its subjects what to think, because it has no reason to care what they think. In a truly authoritarian government, the ruling authority relies on force, not popularity. It cares what its subjects do, not what they think. It may encourage a healthy, optimistic attitude and temperate lifestyle proclivities, but only because this is good for business. Therefore, any authoritarian state that needs an official religion must have something wrong with it. (Perhaps, for example, its military authority is not as absolute as it thinks.) A democratic state which tells its citizens what to think is a political solecism. Think about the motivation for democracy: it consigns the state to the collective responsibility of its citizens, because it feels this is an independent and well-anchored hook on which to hang the common good. Once the republic has an established church, this hook is no longer independent, and the (postulated) value-add of democracy is nullified. Without separation of church and state, it is easy for a democracy to indulge itself in arbitrarily irresponsible misgovernment, simply by telling its bishops to inform their congregations that black is white and white is black. Thus misdirected, they are easily persuaded to support counterproductive policies which they wrongly consider productive. Moldbug warns that this is especially characteristic of right-wing populism, which is why he [Moldbug] is relieved when right-wing populism loses: The entire political structure of the American populist tradition is set up to select for ignorance and stupidity, and select against organization and cohesion. Thus it is simultaneously undesirable and ineffective, and even those of us who like myself sympathize with it to a considerable degree are often slightly relieved to see it lose, as it always does. 3: The Dictator Must Be Limited By A Board Of Directors How do we know that the dictator won’t have terrible policies, or be sadistic, or rename every state to “Statey McStateFace” just for fun? Moldbug proposes running the dictatorship as a joint-stock corporation. This helps in two ways. First, the dictator will be checked by a board of directors, who can fire him if he goes crazy. Second, the board of directors (or the investors who elect them?) will be aligned because they have stock. The stock goes up if the nation does better. If the dictator tries to kill the Jews and the market thinks that’s bad for business, then the directors will fire and replace the CEO. What happens if the controllers disagree on what “responsible” government means? We are back to politics. Factions and interest groups form. Each has a different idea of how Steve should run California. A coalition of a majority can organize and threaten him: do this, do that, or it’s out with Steve and in with Marc. Logrolling allows the coalition to micromanage: more funding for the threatened Mojave alligator mouse! And so on. That classic failure mode, parliamentary government, reappears [...] Actually, there’s one way to do it. We can define responsibility in financial terms. If we think of California as a profitable corporation, a capital asset whose purpose is to maximize its production of cash, we have a definition of responsibility which is not only precise and unambiguous, but indeed quantitative...We have, of course, reinvented the joint-stock company. There is no need to argue over whether this design works. It does. How would the board of directors remove a dictator who didn’t want to be removed? If the country is running on the cryptographically-locked weapon system discussed earlier, the directors will have a higher-level key that can overrule the dictator’s key and make sure that factions loyal to the board have working weapons while those loyal to the dictator don’t. How would the system guard against the dictator arresting the directors and torturing the key out of them? Maybe the directors could live in foreign countries (remember, they aren’t motivated by patriotism - they just want their stock to go up). Or maybe some of this process can be done cryptographically, so that nobody knows how many shares people have, how they voted, or even who the directors are at any given time. If the dictator started poking around to try to figure this out, the directors could remove him. I bring this up partly because 2025-Yarvin has been pushing the corporations vs. democracies argument pretty hard recently. Corporations, he argues, are nimbler and better-run than democracies. A big part of their advantage is that the buck stops with an autocratic CEO instead of a limited President. Therefore, to improve upon democracy, give President Trump the limitless powers of a corporate CEO. [When people ask me why I think monarchies are better than democracies] I ask them to look around the room and basically point out everything in the room that was made by a monarchy. Because these things that we call companies are actually like monarchies. And then you’re looking around yourself and you see, for example, a laptop. And that laptop was made by Apple, which is a monarchy. Whereas if your MacBook Pro was made by the California Department of Computing, you can only imagine it […] I think that if you took any of the Fortune 500 CEOs, some of them are good, some of them are bad. But the overall quality, just pick one at random, and put him or her in charge of Washington, and I think you’d get something much, much better than what’s there […] One of the things about monarchy that’s been known for quite some time—and again, even in very, very anti-monarchial regimes and periods, an exception is made for this—is that a ship always has a captain. An airplane always has a captain. Basically, in any very safety-critical environment … you should have someone in charge. But even granting that corporations are better-governed than democracies, this comparison doesn’t work. Corporate and national governance are trying to solve different problems. Corporate governance asks “Given pre-existing rule of law and the certainty that all of our bylaws will be enforced by a greater power, how do we ensure competent administration?” National government asks “How do we generate rule of law out of nothing in a way that can prop itself up and defend against attacks?” What prevents Tim Apple from refusing to pay dividends to Apple investors and keeping all the profit for himself? Easy question, it’s the United States government, no problem here. What prevents Donald Trump from murdering America’s five richest billionaires and taking their stuff? The police? What about the thing where Trump is the police chief’s boss’s boss’s boss’? Awkward, but that’s why we have separation of powers, checks and balances, government-of-law-and-not-of-men, all that stuff. What prevents Donald Trump from calling in the military to arrest all the other separate powers that are supposed to check and balance him? Uh, more separation of power, different checks and balances, some sort of loyalty to the Constitution. When Yarvin points out that companies thrive without separation-of-powers, that’s because they never encounter the problem that separation of powers was intended to solve. Classic Moldbug understood this well, which was why he proposed a separate power capable of checking his dictator - the board of directors1 - and a mechanism for keeping the system stable against power grabs - the cryptographic weapons. But the regime he boosts today has nothing like this, so it’s facile to use the corporate comparison argument. 4: The Dictator Must Be Embedded Within A Patchwork Of Similar Corporate City-States. Architectonics already did a great job covering this one. Read his Part 1 and Part 2, then meet me back here for the Conclusion section. At Long Last, I’ve Created The Populist Strongman From My Classic Series Of 11,000 Blog Posts “Don’t Create The Populist Strongman” I enjoyed reading Unqualified Reservations, way back in 2013. I didn’t agree with it, but I thought some parts of it were good, and even the bad parts helped me think clearly about the nature of power. I hoped the neoreactionaries would take the good parts, ditch the rest, and build something useful out of it. I think some people, mostly outside the organized neoreactionary movement, did exactly that (subscribers-only post, sorry). Unfortunately, Yarvin went the opposite direction, jettisoning the good stuff in favor of the bad. All the warnings against populism, party politics, corrupt power-seeking officials, misinformation, and mobocracy have been filed away in favor of a Flanderized “maybe dictatorship is good”. One reason I respect Sam Altman is that back in 2016, when he founded an AI charity to bring a positive singularity to the world, he realized that it would later be extraordinarily tempting to turn it into a normal profit-focused company and get rich. So he tied himself to the mast by designing a nonprofit structure capable of thwarting all the machinations his future self could throw at it. A few years later, he gave into temptation, tried to turn it into a normal profit-focused company, and failed, because the structure he designed was really good. This was the best possible outcome, and one of many reasons I number him among the all-time greats. Moldbug deserves a similar level of respect. He clearly saw that the failure mode of his philosophy was that power-seeking people would use it to support right-wing populism. He included a fantastic number of tests to determine whether any given self-professed reactionary was the real deal or a false prophet, begging his readers to apply them carefully to anyone claiming the mantle of reaction. Then he got corrupted by power and tried to use his philosophy to endorse right-wing populism. But the tests are still there! Anyone who reads through 11,000 blog posts can see all the red flags where Moldbug says “…and if I ever do X, then I’ve sold out and you should stop listening to me.” Another all-time great! Just the few posts I’ve highlighted in this essay have listed over a dozen tests - by tests I mean something where Moldbug says something is an absolutely vital feature of the new regime, or that without it things would descend into kleptocracy, or that this is the only safeguard against Hitler, or something along those lines. These include: The reactionary party always tells the truth
Inline links: here, The Sopranos, Divine-right monarchy, through West Virginia, Mr. Jones, Moldbug’s answer, Reign of Terror, suggests cryptographically-locked weapons, they will lie, is relieved when right-wing populism loses, proposes running the dictatorship as a joint-stock corporation, has been pushing the corporations vs. democracies argument pretty hard recently, 1, Part 1, Part 2, did exactly that, and failed