The Psychology of Money — with Morgan Housel

Subscription Shift

The shift towards subscription-based social media models is gaining traction as a potential solution to the pitfalls of ad-supported platforms. Scott Galloway argues that subscription services could reduce harmful emissions associated with the attention economy, such as teen depression and societal division 1. He highlights Meta's move to a paid tier, which offers users enhanced features and authenticity, as a step in the right direction 2.

I'm very hopeful about this. I think it's the right business strategy. And also as a general rule, the world would be a much better place, a much better place if it wasn't ad supported. It was subscription based.

--- Scott Galloway

Galloway envisions a future where social media is more secure and less harmful, advocating for age verification and better user experiences.

   

Attention Economy

The attention model of the internet has profound implications for mental health and societal well-being. Scott Galloway critiques how platforms monetize attention by fostering division and misinformation, contributing to teen depression and societal polarization 3. He suggests that the original sin of the internet is its reliance on ad-supported models, which prioritize engagement over well-being 4.

The most noxious emission? It isn't carbon, in my view. It is the emissions that have resulted from us transitioning attention to money, specifically attention to advertising to money.

--- Scott Galloway

Galloway calls for a shift towards subscription models, which could mitigate these negative effects by reducing the need for sensationalism and divisive content.