Shervin Pishevar: Eradication of middlemen is key to frictionless economy

Shervin Pishevar is not yet a household name. But the 44-year-old entrepreneur has become a legend within certain tech circles. He is one of the most renowned venture capitalists in Silicon Valley, having been behind the formation of Virgin Hyperloop, Airbnb, Uber and Social Gaming Network.

But Shervin Pishevar has gained even more fame due to his massive social media presence. The venture capitalist operates one of the most popular Twitter feeds of anyone in the tech world, with more than 100,000 of the most influential people in the field hanging on his every tweeted word. Shervin Pishevar regularly tweets about some of the most important topics facing the nation today.

In a recent 21-hour tweet storm, Shervin Pishevar talked about how the economy of the United States could be improved in the future. He has long been a staunch critic of both excessive government interference in free markets and of too much monopoly power within the tech world. While this may seem like a sort of contradiction due to the fact that it requires government power to break up monopoly power, Pishevar believes that it is not. In fact, the very thing that defines monopolies are the increasing taking on of characteristics and levels of power normally only seen with government institutions. In this sense, says Pishevar, monopolies themselves are a form of government, with even less responsiveness to the public than democratic government institutions.

Regardless of the philosophic underpinnings, Pishevar’s ideas on what implications all of this has for the U.S. economy going forward are fairly simple. He believes that both governments and monopolies are two subtypes of a larger phenomenon that is almost always friction-creating, extractive and wealth-destroying in nature: the middleman.

Government acts as a middleman by taxing consumers, businesses and employees and by constantly interjecting in otherwise free transactions through the imposition of tariffs, regulations and laws. Monopolies fit into this framework a bit more subtly. But they essentially act as friction-creating middlemen when they engage in all of the same activities that define middlemen, namely, extractive rent seeking, creation of inefficiencies and the erection of barriers to entry.

https://www.youtube.com/watch?v=geCtCov15g4

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