In the opening chapter of Technofeudalism: What Killed Capitalism, Yanis Varoufakis introduces the reader to the book’s central themes through a personal anecdote about his father, a chemical engineer and leftist intellectual. He recounts childhood memories of his father teaching him about metallurgy and historical materialism through experiments with different metals in their home fireplace. This chapter sets the stage for the book’s argument by exploring the deep relationship between technology, economic systems, and societal transformation.
Varoufakis recalls how his father introduced him to tin, bronze, and iron, demonstrating how each metal’s properties reflected broader technological and economic shifts in history. Iron, in particular, symbolized a major civilizational leap—transforming warfare, agriculture, and infrastructure. The transition from the Bronze Age to the Iron Age, he notes, was not just about stronger materials but also about shifts in power, labor, and social organization. His father’s lesson foreshadowed the book’s main argument: technology fundamentally alters economic systems, often in ways people fail to recognize at the time.
A key theme in the chapter is the duality of technology. While his father admired technological progress, he also worried about its unintended consequences. Varoufakis connects this concern to Hesiod, the ancient Greek poet, who lamented that the Iron Age—despite its advancements—brought social strife, inequality, and moral decay. This reflects a recurring historical pattern where technological breakthroughs create both liberation and oppression. The same iron that built plows and tools also forged swords for conquest.
Through this narrative, Varoufakis introduces the concept of historical materialism—the idea that human societies evolve based on the technologies they develop and how they shape economic structures. This Marxist framework underpins his argument that capitalism, too, is subject to technological transformations that may ultimately lead to its own demise.
The chapter concludes with a pivotal moment from 1993, when Varoufakis connected his father’s computer to the internet for the first time. His father then posed the question that inspired this book: Would networked computers make capitalism impossible to overthrow, or would they expose its Achilles’ heel? Varoufakis’ response to this question forms the central thesis of Technofeudalism—that capitalism has already been replaced by a new economic order shaped by digital networks and data-driven monopolies.
This chapter establishes the book’s historical perspective and philosophical foundation, setting the stage for the argument that we are witnessing the rise of a new feudalism enabled by digital technology.
