Macquarie Picks "Enshittification" For 2024

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Post on Nov 26, 2024

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Macquarie Predicts "Enshittification" as the Big Trend for 2024: What Does It Mean?

Okay, so you've probably heard the buzzword – "enshittification." Sounds pretty harsh, right? It's not exactly a word you'd expect to see in a major financial institution's predictions for the coming year. But that's exactly what Macquarie, a seriously big player in the investment world, is calling one of the major trends for 2024. Let's break it down.

What the Heck is "Enshittification"?

The term, coined by internet writer and programmer Venkatesh Rao, describes a process where a once-great product or service gradually deteriorates over time. Think about it – you know how some apps or websites, once amazing, slowly become cluttered, buggy, or just plain annoying? That's enshittification in action. It's not necessarily about malicious intent; sometimes it's simply a result of neglecting improvements or focusing on short-term gains over long-term quality.

Macquarie isn't just throwing this word around for laughs. They're saying this trend will hit a lot of industries. They're seeing it as a major factor to consider when making investment decisions. Think about it – if a company prioritizes short-term profits over user experience and product quality, it's going to suffer eventually, right?

Examples of Enshittification in Action

Let's get real. We've all experienced this. Remember that awesome streaming service that used to have killer content and a seamless interface? Now it's crammed with ads, the interface is a nightmare to navigate, and half the content's locked behind paywalls. That's prime enshittification. It's not just streaming services, either. Think about social media platforms, subscription boxes, even some software you use daily. Did the quality dip? Were features suddenly taken away? That's a strong sign of things going south, and potentially impacting the stock price!

Another classic example? Your favorite local coffee shop that used to make amazing lattes but now uses cheaper beans and less-skilled baristas. The customer experience takes a hit, impacting reputation, and possibly profits.

Why Macquarie is Paying Attention (and Why You Should Too)

For Macquarie, identifying this trend is crucial for investment strategy. Companies that prioritize quality and customer satisfaction are way more likely to survive and thrive in the long run. Those that don't? Well, let's just say they might find themselves in a bit of a pickle. This isn't just about investing; it's about consumer awareness, too. As consumers, we need to be aware of this gradual decline in quality to avoid getting ripped off. It's all connected!

Avoiding the Enshittification Trap: What Can We Do?

Honestly, there's not a simple magic bullet to stop every instance of enshittification. But staying informed and vocal is key. If you see your favorite service or product going downhill, let the company know! Write a review, contact customer support – whatever it takes to make your voice heard. In addition, supporting companies that prioritize user experience and long-term quality, even if it costs a little more, can be a powerful statement. Think of it as a kind of 'voting with your wallet.'

So, "enshittification" might sound like a weird word, but it's a very real problem with significant implications. Macquarie's prediction should be a wake-up call for both investors and consumers to be more aware of the quality of the products and services they use and support. Let's hope we see less of this terrible trend in 2024!