GameStop populism

By Jason Lim

Remember when everyone invested in bitcoin and other cryptocurrencies a few years back as bitcoin was rising rapidly towards $10K and above? If it was an investment craze for the rest of the world, it was a veritable social phenomenon in Korea driven by tech savvy young people subscribing to a popular narrative of sudden wealth and prosperity they could call their own. Get a little money together, invest in cryptocurrency, and watch it go through the roof.

The cryptocurrency story was younger Koreans' own Miracle on the Han and the legend of ever-rising apartment prices all rolled into one. If the older generation had steady jobs and real estate, then what do the young have to get ahead? How else do you make money in Korea where inheritance is de facto destiny and there is a gaping gap between the haves and have not's. A never-ending series of part-time jobs only go so far, and getting into entry positions in chaebol is probably more difficult than a camel getting through the eye of a needle.

You can almost make the narrative connection between the Candlelight Revolution and the crypto craze. If the Candlelight Revolution was a political upheaval that overthrew the lingering vestiges of the narratives that defined the industrialization and democratization generations, then the crypto story was about rewriting the plot for success for the millennials. As with the Candlelight Revolution, the new story was hopeful and empowering. At least in the beginning. Economics, as well as politics, are phenomenon of reality. Empowerment proved to be as volatile and fleeting as cryptocurrency prices and ever-rising real estate prices that shut even more young people from the version of success that the Korean society has drilled into them.

I guess this is a long, roundabout way to say that the cryptocurrency craze in Korea a few years back was really a populist movement centered around the young who felt that their needs were not being met by the status quo. Worse, the prevailing rules, institutions, and elite were actively undermining the younger generation's rightful equity to take part in the prosperity of the county. This was the opportunity to strike back by making much more money much more quickly than the entrenched elite could. Hit them where it hurts. Show them who's boss.

That also seems to be the central theme of the whole Gamestop saga. Although it seems to be losing steam, it definitely was a populist movement expressed and organized through a sub-reddit with the primary aim to cause pain to the elitist institutions that seem to control the world. And hedge funds with its billions definitely fit the bill. Making money was secondary. Giving Wall Street the financial middle finger was the point.

Under the hood, this is not too dissimilar to the Trump phenomena. It's essentially a reaction against the tone-deaf elitism that seems to serve only themselves. It's all about burning down the clubhouse that only welcomes the top 1 percent. They are done asking nicely to be let in, doing everything they are told to play by the rules, working diligently to save up enough to afford the membership dues, and trusting that the process would be fair and transparent. After decades of abuse and growing inequality, many have realized that the trust has been irrevocably broken. The system can no longer be fixed. It's time to burn it all down and start over.

With social media, these dangerous public sentiments have now found ways to communicate, find each other and organize into coordinated actions. What happened in Korea with crypto investing was no longer investing in the traditional financial sense; it was more of a social networking phenomenon. Gamestop was likewise a social networking phenomenon, not an investment club. In a very real way, the last four years in the U.S. was a giant social networking phenomenon.

No wonder both left and right feel threatened and are angry at the social media tech giants of the world; they can be deprived of their communities by the very elite that they want to bring down. Their continued viability is at the mercy of executive fiat, which makes them even angrier.

Populism is essentially a purist movement. And as history can attest, purist movements are simple and juvenile in nature and tend to be destructive and murderous. Luckily, we are not all quite there yet, although there are enough. The populist sense of disenfranchisement continues to be palpable, angry, and looking for ways to strike at the heart of the political and socioeconomic order that the elite have built. The internal contradictions have surfaced as visible cracks in the walls and foundations of the venerable institutions that safeguard the status quo.

How much longer can they hold on? How can you make them more resilient? Can these institutions be reengineered in a way that's more inclusive, equitable, and compassionate? It was Bitcoin yesterday and Gamestop today. Who's the target tomorrow?

Jason Lim (jasonlim@msn.com) is a Washington, D.C.-based expert on innovation, leadership and organizational culture.