Prof G’s Call to Unsubscribe: Why It’s Going To Hurt the Economy

It is easy to call for a recession from a yacht. But when the S&P 500 falls, it isn't the rich who suffer—it’s the pension funds and the service economy.

Inspiration: Reading Scott Galloway’s recent calls to cancel Prime, Netflix, and Spotify to "send a message," and realizing that the message received will be a recession.

(Disclaimer: I am a Scott fan, as he has taught me a tremendous amount. So, this one is painful to watch. But then, a real fan is probably the who calls out when they see a blind spot).

Scott Galloway (Prof G) is rallying his followers to cancel their subscriptions to Big Tech. He wants to hurt their stock price. He wants to crash the S&P 500 to force regulation (and likely to get Trump’s attention).

It sounds like noble activism. But it is economically dangerous.

The Economic Reality: The Wealth Effect

The Wealth Effect states that when people feel rich (because their 401k or stock portfolio is up), they spend more money.

The US economy is 70% consumption.

If Galloway succeeds and the S&P 500 drops 20%, the upper-middle class feels poor. They stop buying cars, renovating homes, and eating out. A consumption collapse leads to a recession.

The "Targeting" Irony

He targets consumer subscriptions (Netflix/Spotify). But Tech is powered by Enterprise (Microsoft Office, AWS, Google Cloud).

He isn't telling companies to cancel Office 365 (because they can't). So, the "pain" is felt by the consumer divisions—the creatives—while the B2B monopolies remain untouched.

The Meta Paradox: He is rallying this movement on... Social Media. To spread his message, he needs engagement on Instagram (Meta), X (Elon), and YouTube (Google). He is feeding the beast to kill it.

The Political Endgame

This feels good now. It feels like activism.

Sure, it is a genius attempt to catch the attention and possibly damage the current administration.

But when the job cuts start because Netflix missed earnings, the sentiment turns.

Galloway is positioning himself politically (potentially supporting Gavin Newsom). But Tech workers are historically Democrat.

I personally believe he will become even more politically active in the next elections.

Yet, by attacking the industry that employs his base, he risks alienating the very people who buy his books. Remember Palmer Luckey? Silicon Valley has a long memory.

Conclusion: The "Discount" for the Rich

A stock market crash hurts the poor, not the rich.

If the market crashes 30%:

• Prof G: Has millions in cash. He buys the dip. He gets richer.
• The Public: Their pension fund collapses. They lose their job. They sell at the bottom to survive.

My Take: It is easy to call for a "reset" when you have a safety net. For everyone else, it’s just a crash.