In modern capitalism, so-called “Davids” (like startups) often win by using strategies backed by huge financial power, such as venture capital. Companies deliberately sell at a loss to undercut competitors, drive them out, and dominate the market—after which they worsen their service or raise prices, a process described as “enshittification.” These outcomes aren’t exceptions but built into capitalism itself: success tends to come not from better products but from access to capital and market control. What looks like an underdog victory is often just another form of concentrated power, meaning consumers and workers ultimately lose out as competition disappears and conditions deteriorate.

Taken from the April 2026 edition of The Socialist Standard.

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