Why Elites Are Losing Trust — With Vivian Schiller

Episode Summary

Executive Summary: At Davos, Vivian Schiller and Alex Kantrowitz critique the World Economic Forum’s elite image while exploring why trust in institutions, media, and government has eroded. They discuss populism, propaganda, social media, stakeholder capitalism, unionization, TikTok, Twitter, tech regulation, and local news—arguing that corporations and journalism must adapt to a polarized, distrustful information environment.

Main Topics: Davos, elitism, and the World Economic Forum backlash (Priority: 5/5): The conversation opens with skepticism about Davos as a symbol of elite power. Schiller describes the event as inaccessible and somewhat performative, while both speakers criticize the WEF’s messaging around the 'Great Reset' and its apparent desire to shape societies from the top down. Why trust in elites, media, and government is collapsing (Priority: 5/5): Schiller argues that distrust is driven by economic inequality, COVID-19, climate change, racism, homophobia, anti-Semitism, and propaganda amplified by social media. She says people often distrust institutions emotionally, not just rationally, and that tribal media consumption deepens the problem. Corporate power, stakeholder capitalism, and employee pressure (Priority: 4/5): The hosts debate whether corporations should play a larger social role. Schiller supports stakeholder capitalism in practice, emphasizing employee and public expectations, while warning that companies remain beholden to shareholders and can’t always take political stands without consequence. Tech platforms, news distribution, and content moderation (Priority: 5/5): The discussion covers Facebook’s fraught relationship with news, TikTok’s rapid rise and addictive product design, and the need for transparency about algorithmic amplification. Schiller argues that platforms should provide more data to researchers so society can better understand information flows. Twitter’s dysfunction and Elon Musk’s attempted takeover (Priority: 4/5): As a former Twitter news executive, Schiller reflects on the company’s long-running leadership problems and says Musk appears motivated more by personal desire and ideology than a coherent plan. She is skeptical that either Musk’s exit or acquisition would resolve Twitter’s deeper issues. Government response: FTC, disinformation, and local news (Priority: 5/5): Schiller says the Biden administration has moved slowly on tech, though the FTC may become more active. She defends the idea behind a disinformation coordination body but says the rollout was disastrous. She also stresses that local journalism is civic infrastructure essential for accountability. Optimism through democracy and the Ukraine war (Priority: 4/5): The episode ends on a cautiously hopeful note: Russia’s attack on Ukraine has renewed appreciation for democracy and galvanized international support. Schiller argues this global clarity may strengthen support for journalism, transparency, and democratic institutions more broadly.

Key Arguments: Davos and the WEF are perceived as an elite, top-down attempt to influence societies in ways many people find illegitimate and out of touch. Anti-elite and populist movements are fueled by real-world conditions—inequality, pandemic disruption, climate anxiety, racism, and information disorder—not just messaging. People trust corporations more than government or media because companies are embedded in daily life and have become one of the last remaining institutions with relative credibility. Corporate leaders face pressure from employees and customers to take stands on social issues, making stakeholder capitalism increasingly difficult to avoid in practice. Platforms such as Facebook and TikTok shape public discourse through algorithmic choices, and greater transparency is needed to understand and regulate those choices. Twitter has suffered from chronic leadership failure; Elon Musk’s interest looks less like a strategic turnaround and more like a personal and ideological play. Local news is critical civic infrastructure because it holds officials accountable and prevents corruption; its decline leaves communities vulnerable to propaganda and polarization. A stronger appreciation of democracy, sharpened by the Ukraine war, may create momentum for better information systems and institutional reforms.

Data Points: Facebook’s value: About half of $1 trillion - Alex notes Facebook was worth a trillion dollars last summer and roughly half that now. Facebook news share: About 3% of content - Nick Clegg reportedly said news is only around 3% of Facebook content. CEO pay disparity: Multiple times median salaries - Alex references the large gap between CEO pay and typical worker pay as part of the inequality discussion. Twitter revenue growth in 2021: Up 37% year over year - Alex says Twitter’s revenue rose 37% in 2021 versus 2020 under Jack Dorsey/leadership direction. Davos attendance access: White badge vs. no badge - Schiller explains she lacks the badge required to enter the main WEF congress center, underscoring access and exclusivity. Edelman trust survey: Elites trust each other more, but publics trust elites less - A clip referenced in the discussion highlights the gap between elite trust and public distrust.

Pivotal Quotes: "the elitism is just, you know, and I say this as, you know, you and I are arguably, or many would look at us as the elite." — Vivian Schiller: Her criticism of Davos as an ivory tower disconnected from ordinary people. "don't listen to these elites, listen to us. We are the populists." — Vivian Schiller: Describing the messaging strategy of anti-democratic, far-right movements. "it is a good point and it's something that I think about a lot." — Alex Kantrowitz: Alex acknowledges the argument that corporations may have greater credibility than media or government.

Implications: The episode suggests tech platforms, corporations, and media face a trust crisis that can’t be solved by optics alone. Transparency, local journalism, employee pressure, and democratic legitimacy will increasingly shape how these institutions operate.