The End Of Capitalism

in LeoFinancelast year

No, this is not an article how the Fed money printing or some political movement is going to destroy the capitalistic markets. Nor does it present some -ism that is going to take over.

Instead, what we are seeing is a natural course of events. In fact, it is capitalism that is destroying capitalism.

We can sum it up this way: the destruction of capitalism is coming as a result of its own success.

As capitalism became more successful, it destroyed the core tenets of what made it so prosperous.

The foundational principles of wage labor, private property, debt-based financing, and profit driven competition generated more wealth in the last 150 years than we saw in the entire history of the planet. Unfortunately, this is all being eliminated as we progress forward.

Capitalism excels at finding needs in the market, developing products or services that fill those needs, and, through competition, creating more efficiency while ultimately driving down prices. With increased competition, margins are slashed causing a great portion of what we use to be "commoditized".

Obviously, this is a major boom to society as products and services that were only for the select few previously are now available to the masses.


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Things started to accelerate as the digital age came upon us. Suddenly, we were introduced to a rather new concept: the idea of zero marginal cost. What use to have a cost it it, and thus contribute to GDP, was suddenly available for no extra expense.

Let us take a letter as an example. Decades ago, there were pools of secretaries who were typing up "copies" of letters. The same letter would be re-typed 3 or 4 times to provide for all the parties. In the 1970s, we saw the introduction of the copy machine which eliminated the need for people to manually recreate the letter. Instead, the machine could do it much quicker and for less money. There was still a cost to it though.

In the digital age, a letter is typed once and emailed to the 3 or 4 parties who require it. The cost for each additional copy is zero.

We see the same concept play out with music, video, software, and anything else that becomes digitized.

Essentially what we are seeing is that capitalism excelled in a world of atoms yet, as more of what we do is based upon bits and bytes, capitalism eats itself.

The challenge is the power of the capitalistic market ensures that the pace of this conversion is accelerating. Industries such as gaming, sports, communications, publishing, and finance already are seeing this transformation take place. This will expand as we see the advancement of IoT, extended reality, distributed manufacturing, and industries-as-a-service.


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In a plant-capital-labor world, there was a harmony to everything. To increase capital, one simply developed more plants which required more labor. Through this process, greater profitability was achieved, resulting in more capital.

Rinse and repeat.

This all changed. Automation is already eliminating the wage aspect of things. Wall Street institutions took advantage of this by replacing their human traders with computers. Now, 80% of all market activity is done by machines; a level that is only increasing. The introduction of AI managed funds is taking this another step forward.

All the while, costs decline.

In the 1980s, it was not uncommon to pay $100 to a brokerage firm for each stock transaction. This meant only larger players could participate since high dollar trades required. Over the decades, this has constantly fallen to the point where, now, most brokerage houses offer zero commission trading. The system became so efficient that financial institutions can make nothing off it.

As we move forward, the transition is going to be obvious. However, we are going through a period where people are trying to replace capitalism with some other -ism. We are not going to see something we know appear. Instead, a completely new economic platform will evolve as capitalism fades away. Certainly, there will be aspects that are retained but the entirety will be completely different.


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This is hard for many people to accept. Nevertheless, anyone who looked closely at what is likely to evolve as we progress deeper into Web 3.0 understands that the principles of capitalism do not fit into that realm. The decentralization of all aspects of life, through the moving of bits rather than atoms, means that new models are required. Personally, I feel we are seeing some of the foundation being erected with cryptocurrency and some of the governance models that are being experimented with.

Either way, the world as we know it is rapidly changing. The next decade is going to see a further move away from what was in place for the last few hundred years. We are entering a time where things will be abundant meaning the profit margins will be crushed. This is going to deter competition placing us in a situation where another form of collaboration is required.

Ultimately, through digital networks, we are going to see cooperative commons established where people gather for a shared goal. The scope of this will vary yet each will have a financial aspect. Individuals are going to drift from common to common based upon their interest, needs, and desires.

Energy, education, medicine, retail, and transportation are already at various stages of this trend. We will soon see similar transformations in construction, manufacturing, and food production.

Ultimately, the collapse of capitalism will be a result of the success of capitalism.

The digital age ensures this.


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This is a remarkably incite essay. The examples of plant-labor capitol versus the reproduction of product is an analogy of merit and weight. The capitalism eating itself analogy is amazingly picturesque, but true, as profits for the sake of profits regardless of the effect on sustainability drive capitalism to its next evolution or termination.

I enjoyed the comments and answers, you are well read. It’s refreshing to hear someone say, they read someone’s work, even though you don’t agree with them. Knowledge is available even from those we disagree with and multiple points of view are needed for a complete picture.

Refreshing and my respect continues for your work and thought processes.

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So, maybe researching to see which companies that produce 3d printing materials hold the most promise - and then investing in them a little early would be a good idea? :)

TASK, an article like this is perfect fodder for #infowars and the new Token!
We introduced it on the old steemit right before the HF Split happened, pretty much. Then had to pay for it AGAIN on the Hive :P But here we are, and I have upvoted you. Check for the infowars tokens in your wallet!
PLEASE HODL!!!

Add to this, what i believe will happen, is what, in Japan are called Halfus (Half oos)

Half farmer, half something else.

Everyone will grow their own food. And with modern agriculture advancements, this can be done in 10 hours a week.

Then with community sized, continuous, green power generation, the meaning of a job, trading time for money becomes useless.

You have your needs met, what you want are things you can't produce, and so a trade economy develops, where it is not about profit margins.

Of course, capitalism will be in full effect (its original meaning), but the capital in question is machinery, raw materials and labor available.

The abomination that is capitalism today: A young chemical engineer figured out how to crack oil for ¼ the energy, but it was never implemented... because it would lower the profit margin. If you make it 4x as cheap, you have to sell 4x more to make the same profit.

The abomination that is capitalism today: A young chemical engineer figured out how to crack oil for ¼ the energy, but it was never implemented... because it would lower the profit margin. If you make it 4x as cheap, you have to sell 4x more to make the same profit.

Yes very true. And that is the drawback to the physical world. The digital world can advance much quicker . That is why a company like Amazon can hit profitability a lot quicker than a Tesla even though both are in the tech arena.

I think, in a couple decades, 3d printing will really alter the face of what is taking place. When most household products exist as a digital file that is downloaded and printed out, we will see manufacturing change completely.

This in addition to what you pointed out about food production being localized.

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I found your article very interesting. The examples you listed make perfect sense.

You have been included in today's "I Am Engaged" challenge which I will post in a few minutes. Watch for it @slackerman

We have to have workers, we don't have to have dollars.

Money is a tool for collaboration, thus, unless you are heading back to a barter system, some type of currency exchange is needed.

We have to have workers...

You use to need them to operate elevators, make copies, and manage video stores.

Within a decade, you wont need them to operate vehicles, fulfill online orders, manufacture much, or manage people.

It seems your claim about workers is declining.

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some type of currency exchange is needed.

This is false.
We only need money if you are trying to keep score.

Some people exceed the normal production, they deserve more, yes, but they don't deserve to rule over us as lords because their great great grandpa ripped off his neighbor and turned it into a fortune by ripping off the suckers as the came along.

Money enables more bad than good.

Better we work on social credit, your neighbors will know if you are a bum, and it will all be exposed by the panopticon, anyway.

Do you want your secret knowledge known only to the few that use it to extract time from your life, or do you want to live honestly amongst your neighbors?

Why do you think banking 'tries' to be secret?
Because if your neighbors knew what a cuck you were, they wouldn't talk to you.

You know selling your soul for silver is bad, but selling it for crypto is good?

You can't know what you don't know, nor that you don't know it,...

I can point you to the books, buy you would have to read them.

If you found this article informative, please give an upvote and rehive.

A wonderful read! One could almost believe that you have read Das Kapital. 😎

LOL.

Well Marx, like John Maynard Keynes, shows what happens when economists (or economic schools of thought) are politicized. Suddenly one view or another is tossed out because of a political view. Even though I disagree with Keynes fundamental premise, he wrote a lot of insightful stuff.

The same is true for Marx. The major problem with Marx is how those that followed his ideas tried to forcefully affect change, resulting in a system that was worse than what was before.

This time, we will are seeing the decline in capitalism while there is an evolutionary creation of something else which is am sure will be named over the next decade by academia.

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The same is true for Marx. The major problem with Marx is how those that followed his ideas tried to forcefully affect change, resulting in a system that was worse than what was before.

The ironic thing when libertarian types tend to beat up on old Karl is that the end game of Marxism is to reach the stage of such abundance that the state is no longer required. He spoke very little, if at all, about the forming of a communist state.

This time, we will are seeing the decline in capitalism while there is an evolutionary creation of something else which is am sure will be named over the next decade by academia.

Yep, or as Monty Python used to say, "And now for something completely different." 😎

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