Gravity and the Ant: Real Power Can Crush Even the Hardy
November 6, 2020
I read a news story called “How Billionaire Jack Ma Fell to Earth and Took Ant’s Mega IPO with Him” from the trust principles outfit Thomson Reuters. The story was sort of news and sort of MBA analysis.
The news part is that the Chinese regulators pulled the plug on an initial public offering for an alternative bank. The entrepreneur Jack Ma learned that the Chinese government was not too keen on a person offering an alternative to the existing financial system in the Middle Kingdom.
Long story short: No IPO.
The analysis part of the write up veered into “humility” and “hubris.” These are concepts once taught when students went to school and suffered through in person classes about Greek tragedy, philosophy, and maybe history.
Long story short: Individuals have a tough time when there is an authority with power.
What’s interesting to me is that the Ant crushed story did not find a contrast between China’s approach to an entrepreneur and the US government’s approach to entrepreneurs. The subject seems rich with possibilities:
- The US has not one Ant but an anthill of ants with names like FAANG, bit telcos, and Goldman Sachs type outfits.
- China acted quickly to deal with an alternative to established institutions. US regulators have allowed many ants to rework the economic landscape.
- The big Ant Ma has dropped from sight at least for now. The anthill’s occupants are everywhere: New products, services, and features.
The difference between the Chinese approach and the US approach to upstarts is fascinating.
Net net: Power has pull. The gravity of the situation is obviously clear to Jack Ma. In the US, some of the ants are scrambling to control the flow of information within their systems.
Interesting how one Ant can put large scale systems in sharp relief.
Stephen E Arnold, November 6, 2020
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