Wikipedia

Post-capitalism

This article is about the concept in economic thought. For the book by Paul Mason, see PostCapitalism.
"Post-capitalist society" redirects here. For 1993 book by Peter Drucke, see Post-Capitalist Society.

Post-capitalism is in part a hypothetical state in which the economic systems of the world can no longer be described as forms of capitalism. Various individuals and political ideologies have speculated on what would define such a world. According to classical Marxist and social evolutionary theories, post-capitalist societies may come about as a result of spontaneous evolution as capitalism becomes obsolete. Others propose models to intentionally replace capitalism, most notably socialism, communism, anarchism, nationalism and degrowth.

History

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In 1993, Peter Drucker outlined a possible evolution of capitalistic society in his book Post-Capitalist Society.

In 1993, Peter Drucker outlined a possible evolution of capitalistic society in his book Post-Capitalist Society.[1] This states that knowledge, rather than capital, land, or labor, is the new basis of wealth. The classes of a fully post-capitalist society are expected to be divided into knowledge workers or service workers, in contrast to the capitalists and proletarians of a capitalist society. Drucker estimated the transformation to post-capitalism would be completed in 2010–2020. Drucker also argued for rethinking the concept of intellectual property by creating a universal licensing system.[2]

In 2015, according to Paul Mason, several factors — the rise of income inequality, repeating cycles of boom and bust, and capitalism's contributions to climate change — led economists, political thinkers and philosophers to start seriously considering how a post-capitalistic society would look and function. Post-capitalism is expected to be made possible with further advances in automation and information technology – both of which are effectively causing production costs to trend toward zero.[3]

Nick Srnicek and Alex Williams identify a crisis in capitalism's ability and willingness to employ all members of society, arguing that: "there is a growing population of people that are situated outside formal, waged work, with minimal welfare benefits, informal subsistence work, or by illegal means".[4]

Variations

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Heritage check system

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Main article: For Us, The Living: A Comedy of Customs
 
Robert Heinlein

Heritage check system is a socioeconomic plan that retains a market economy but removes fractional reserve lending power from banks and limits government printing of money to offset deflation. Money printed is used to buy materials to back the currency and pay for government programs in lieu of taxes, with the remainder to be split evenly among all citizens to stimulate the economy (termed a "heritage check", for which the system is named). The original author of the idea, Robert Heinlein, stated in his book For Us, The Living: A Comedy of Customs, that the system would be self-reinforcing and would eventually result in regular heritage checks able to provide a modest living for most citizens.[5]

Economic democracy

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Economic democracy is a socioeconomic philosophy that establishes democratic control of firms by their workers and social control of investment by a network of public banks.[6]

Participatory economy

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Main article: Participatory economy

In his book Of the People, By the People: The Case for a Participatory Economy, Robin Hahnel describes a post-capitalist economy called the participatory economy.[7]

Hahnel argues that a participatory economy will return empathy to our purchasing choices. Capitalism removes the knowledge of how and by whom a product was made: "When we eat a salad the market systematically deletes information about the migrant workers who picked it".[8]

Socialism

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Main article: Socialism
 
Paul Mason
 
Michael Albert

Socialism often implies common ownership of companies and a planned economy, though as an inherently pluralistic ideology, it is argued whether either are essential features.[9] In his book PostCapitalism: A Guide to our Future, Paul Mason argues that centralized planning, even with the advanced technology of today, is unachievable.[3]

In UK politics, strands of Corbynism and the Labour party have adopted this 'post-capitalist' tendency.[10][11]

Permaculture

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Main article: Permaculture

Permaculture is defined by its co-originator Bill Mollison as: "The conscious design and maintenance of agriculturally productive systems which have the diversity, stability, and resilience of natural ecosystems".[12]

PROUT

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Main article: Progressive utilization theory

Progressive utilization theory (PROUT) is a socioeconomic and political philosophy created by the Indian philosopher and spiritual leader Prabhat Ranjan Sarkar in 1959. PROUT includes the decentralization of the economy; economic democracy; development of cooperatives; provision of all working members of society with five basic needs: food, clothing, shelter, education, medical care; and systematic solution of environmental problems through technological development and limitation of consumption.[13]

Agrowth

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This section is an excerpt from Agrowth.[edit]

Agrowth ("almost agnostic or atheistic about growth”) is a concept in economic policy according to which it is preferable to be indifferent to the growth of gross domestic product (GDP growth) when devising policies to further economic and societal progress.[14][15] The reasoning behind agrowth is that GDP growth does not correlate closely with such progress.[16][17]

The concept has been particularly discussed in the context of environmental policy, where it is opposed to both green growth and degrowth.[17] Agrowth is supported by many scientists.[15][18][19]

Post-growth

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This section is an excerpt from Post-growth.[edit]

Post-growth is a stance on economic growth concerning the limits-to-growth dilemma[20] — recognition that, on a planet of finite material resources, extractive economies and populations cannot grow infinitely.[21][22][23][24][25][26] The term "post-growth" acknowledges that economic growth can generate beneficial effects up to a point, but beyond that point (cited as $25,000 GDP/capita by Richard Wilkinson and Kate Pickett in their book The Spirit Level) it is necessary to look for other indicators and techniques to increase human wellbeing.[23][24][27][28]

Post-growth can be distinguished from similar concepts and movements (such as degrowth and steady-state economy) in that it seeks to identify and build on what is already working, rather than focusing on what is not. Post-growth advocates try to encourage, connect and further develop already existing ideas, concepts, technologies, systems, initiatives, and actions. In this way, "post-growth" does not specify the answer to the limits-to-growth challenge, as "steady state economics" and "degrowth" attempt to do, but rather, seeks to understand and address this challenge from an evolving complex systems perspective. With this perspective, post-growth deals with all aspects of self and society (such as psychology, human nature, human evolution, cultures, social systems and economies) and the interrelation of all of these aspects. Accordingly, the post-growth concept also advocates solutions that are appropriate with regards to place, time, resource and cultural factors. Therefore, post-growth initiatives take shape in very different ways under different circumstances.[29]

Post-growth can be considered an asset-based approach to community development — applied not only to community development but across a wide range of categories — in response to limits-to-growth challenges, as it seeks to identify and build on cultural and technological assets to facilitate the emergence of post-growth futures.[29] In his landmark work Prosperity Without Growth (Routledge, 2017), the economist Tim Jackson demonstrates that building a ‘post-growth’ economy is indeed a "precise, definable and meaningful task". Starting from clear first principles, he sets out the dimensions of that task: the nature of enterprise; the quality of our working lives; the structure of investment; and the role of the money supply.[30][31][32]

Steady-state economy

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This section is an excerpt from Steady-state economy.[edit]

A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time.[33]: 366–369 [34]: 545 [35][36] The term usually refers to the national economy of a particular country, but it is also applicable to the economic system of a city, a region, or the entire world. Early in the history of economic thought, classical economist Adam Smith of the 18th century developed the concept of a stationary state of an economy: Smith believed that any national economy in the world would sooner or later settle in a final state of stationarity.[37]: 78 

Since the 1970s, the concept of a steady-state economy has been associated mainly with the work of leading ecological economist Herman Daly.[38]: 303 [39]: 32f [40]: 85  As Daly's concept of a steady-state includes the ecological analysis of natural resource flows through the economy, his concept differs from the original classical concept of a stationary state. One other difference is that Daly recommends immediate political action to establish the steady-state economy by imposing permanent government restrictions on all resource use, whereas economists of the classical period believed that the final stationary state of any economy would evolve by itself without any government intervention.[41]: 295f [42]: 55f 

Critics of the steady-state economy usually object to it by arguing that resource decoupling, technological development, and the operation of market mechanisms are capable of overcoming resource scarcity, pollution, or population overshoot. Proponents of the steady-state economy, on the other hand, maintain that these objections remain insubstantial and mistaken — and that the need for a steady-state economy is becoming more compelling every day.[43][44][45][40]: 148–155 

A steady-state economy is not to be confused with economic stagnation: Whereas a steady-state economy is established as the result of deliberate political action, economic stagnation is the unexpected and unwelcome failure of a growth economy. An ideological contrast to the steady-state economy is formed by the concept of a post-scarcity economy.

Degrowth

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Degrowth aims to bring about a post-capitalist world through what Anitra Nelson describes as the reframing and recreation of economies so that they "respect the Earth’s limits in order to achieve socio-political equity and ecological sustainability.' They note that degrowth is "distinctive within sustainability and justice movements due to a unique emphasis on growth as a driver of unsustainabilities and inequities." As such "Degrowth argues for a radical reduction in production and consumption, greater citizen participation in politics, and more diversity, especially within ecological systems and landscapes, along with a flourishing of creativity, care, and commoning — using renewable energy and materials.[46]

Degrowth and MMT

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Jason Hickel at the University of Oxford

Modern monetary theory (MMT) could enhance the degrowth movement in transitioning to a "post-growth, post-capitalist economy", according to economic anthropologist Jason Hickel. Towards this end, he suggests that the power of "the government’s role as the issuer of currency" could be utilized to bring the economy back into balance with the natural world while at the same time reducing economic inequality by providing high quality universal basic services, implementing the rapid development of renewable energy infrastructure to completely phase out fossil fuels in a shorter period of time, and establishing a public job guarantee for 30 hours a week at a living wage doing decommodified, socially useful work in the public services sector, and also useful work in renewable energy development and ecosystem restoration. Hickel notes that providing a living wage at 30 hours a week also has the added benefit of shifting income from capital to labor. Furthermore, he adds that taxation can be used to "reduce demand in order to bring resource and energy use down to target levels," and specifically to reduce the purchasing power of the wealthy.[47]

Technology as a driver of post-capitalism

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Automation

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Technological change that has driven unemployment has historically been due to 'mechanical-muscle' machines, which have reduced the need for human labor. Just as the use of horses for transport and other work was gradually made obsolete by the invention of the automobile, humans' jobs have also been affected throughout history. A modern example of this technological unemployment is the replacement of retail cashiers by self-service checkouts. The invention and development of 'mechanical-mind' processes or 'brain labor' is thought to threaten jobs at an unprecedented scale, with Oxford Professors Carl Benedikt Frey and Michael Osborne estimating that 47% of US jobs are at risk of automation.[48]

Information technology

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Post-capitalism is said to be possible due to major changes brought about by information technology in recent years. These changes have blurred the boundaries between work and free time[49] and loosened the relationship between work and wages. Significantly, information is corroding the market's ability to form prices correctly. Information is abundant and information goods are freely replicable. Goods such as music, software or databases do have a production cost, but once made can be copied infinitely. If the normal price mechanism of capitalism prevails, then the price of any good which has essentially no cost of reproduction will fall towards zero.[50] This lack of scarcity of those things is a problem in those models, which try to counter by developing monopolies in the form of giant tech companies to keep information scarce and commercial. But many significant commodities in the digital economy are now free and open-source, such as Linux, Firefox, Wikipedia and Open-source hardware.[51][52]

See also

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References

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  1. ^ Drucker, Peter F. (1993). Post-Capitalist Society. HarperInformation. ISBN 978-0-7506-0921-0.
  2. ^ Schwartz, Peter (1 March 1993). "Post-Capitalist". WIRED. Retrieved 17 March 2016.
  3. ^ a b Mason, Paul (2015). PostCapitalism: A Guide to our Future. Allen Lane. ISBN 9781846147388.
  4. ^ Srnicek, Nick; Williams, Alex. Inventing the Future: Postcapitalism and a World Without Work. Verso Books. pp. 103–104. ISBN 9781784780968
  5. ^ Heinlein, Robert (2003). For Us, The Living. Scribner. pp. 233. ISBN 978-0-7432-5998-9.
  6. ^ Schweickart, David (2002). After Capitalism. Rowman & Littlefield Publishers, Inc. pp. 22–23. ISBN 978-0-7425-1299-3.
  7. ^ Hahnel, Robert (2012). Of the People, By the People: The Case for a Participatory Economy. AK Press Distribution. ISBN 978-0983059769.
  8. ^ Albert, Michael; Hahnel, Robin. "Participatory Planning" (PDF). Retrieved 17 March 2016.
  9. ^ Wright, Tony (1986) Socialisms: theories and practices. Oxford, UK: Oxford University Press. ISBN 9780192191885.
  10. ^ Pitts, F. and Dinerstein, A. (2017). Corbynism's conveyor belt of ideas: Postcapitalism and the politics of social reproduction. Capital & Class, 41(3), pp.423-434.
  11. ^ Peck, Tom (2016-08-30). "Jeremy Corbyn promises to 'rebuild Britain' with digital manifesto". Independent. Retrieved 8 December 2018.
  12. ^ "What is Permaculture ?". The Permaculture Research Institute. Retrieved 2021-01-19.
  13. ^ Sarkar, Prabhat (1992). Proutist economics - Discourses on economic liberation. India: Ananda Marga. ISBN 978-81-7252-003-8.
  14. ^ van den Bergh, Jeroen C.J.M. (March 2011). "Environment versus growth — A criticism of 'degrowth' and a plea for 'a-growth'". Ecological Economics. 70 (5): 881–890. doi:10.1016/j.ecolecon.2010.09.035.
  15. ^ a b Savin, Ivan; King, Lewis (20 September 2023). "Idea of green growth losing traction among climate policy researchers, survey of nearly 800 academics reveals". The Conversation.
  16. ^ Kalimeris, Panos; Richardson, Clive; Bithas, Kostas (March 2014). "A meta-analysis investigation of the direction of the energy-GDP causal relationship: implications for the growth-degrowth dialogue". Journal of Cleaner Production. 67: 1–13. doi:10.1016/j.jclepro.2013.12.040.
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  18. ^ van den Bergh, Jeroen C. J. M. (February 2017). "A third option for climate policy within potential limits to growth". Nature Climate Change. 7 (2): 107–112. Bibcode:2017NatCC...7..107V. doi:10.1038/nclimate3113. hdl:1871.1/55d55cfa-2617-4e8a-b21c-fbc02ee19eea.
  19. ^ Lehmann, Cathérine; Delbard, Olivier; Lange, Steffen (February 2022). "Green growth, a-growth or degrowth? Investigating the attitudes of environmental protection specialists at the German Environment Agency". Journal of Cleaner Production. 336: 130306. doi:10.1016/j.jclepro.2021.130306. S2CID 245721607.
  20. ^ Post Growth Institute. "Post Growth Institute homepage". Post Growth Institute.
  21. ^ Blühdorn, Ingolfur (2017). "Post-capitalism, post-growth, post-consumerism? Eco-political hopes beyond sustainability". Global Discourse. 7 (1): 42–61. doi:10.1080/23269995.2017.1300415.
  22. ^ Paulson, Lily; Büchs, Milena (2022). "Public acceptance of post-growth: Factors and implications for post-growth strategy". Futures. 143: 103020. doi:10.1016/j.futures.2022.103020.
  23. ^ a b Daly, Herman (1996). Beyond Growth: the economics of sustainable development. Washington D.C.: Beacon Press. p. 37. ISBN 9780807047088.
  24. ^ a b Jackson, Tim (2009). Prosperity Without Growth: Economics for a Finite Planet. Sustainable Development Commission. pp. 3–11. ISBN 9781844078943.
  25. ^ Crownshaw, Timothy; Morgan, Caitlin; Adams, Alison; Sers, Martin; Britto dos Santos, Natália; Damiano, Alice; Gilbert, Laura; Yahya Haage, Gabriel; Horen Greenford, Daniel (2019). "Over the horizon: Exploring the conditions of a post-growth world". The Anthropocene Review. 6 (1–2): 117–141. doi:10.1177/2053019618820350.
  26. ^ van Woerden, Winne Fleur; van de Pas, Remco; Curtain, Joel (2023). "Post-growth economics: a must for planetary health justice". Globalization and Health. 19 (1): 55. doi:10.1186/s12992-023-00957-2. PMC 10410890.
  27. ^ Wilkinson, Richard; Kate Pickett (2010). The Spirit Level: Why Equality is Better for Everyone. London: Penguin Books. p. 8. ISBN 9781846140396.
  28. ^ Clive, Hamilton (2003). Growth Fetish. Sydney: Allen & Unwin. ISBN 9781741140781.
  29. ^ a b Maclurcan, Donnie (9 July 2012). "Post Growth Futures Are Already Here". Treehugger. Archived from the original on June 20, 2019. Retrieved 2 April 2013.
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  31. ^ "How to kick the growth addiction". Great Transition Initiative. Archived from the original on 2017-04-25. Retrieved 11 June 2017.
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  35. ^ Blauwhof, Frederik Berend (2012). "Overcoming accumulation: Is a capitalist steady-state economy possible?". Ecological Economics. 84: 254–261. Bibcode:2012EcoEc..84..254B. doi:10.1016/j.ecolecon.2012.03.012.
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  46. ^ Nelson, Anitra (2024-01-31). "Degrowth as a Concept and Practice: Introduction". The Commons Social Change Library. Retrieved 2024-02-23.
  47. ^ Hickel, Jason (September 23, 2020). "Degrowth and MMT: a thought experiment". jasonhickel.org. Retrieved July 11, 2023. MMT proposals align elegantly with one of degrowth's key observations, namely, that if growthism depends on the perpetual creation of artificial scarcity, then by reversing artificial scarcity – by providing public abundance – we can dismantle the growth imperative. As Giorgos Kallis has put it, "capitalism cannot survive under conditions of abundance". MMT provides an opportunity for us to create a post-growth, post-capitalist economy.
  48. ^ Frey, Carl Benedikt; Osborne, Michael A (2017-01-01). "The future of employment: How susceptible are jobs to computerisation?". Technological Forecasting and Social Change. 114: 254–280. CiteSeerX 10.1.1.395.416. doi:10.1016/j.techfore.2016.08.019. ISSN 0040-1625.
  49. ^ N. Korody. "Architecture after capitalism, in a world without work". Retrieved 25 Jun 2017.[permanent dead link‍]
  50. ^ P. Mason (2015-07-17). "Three dynamics leading to post-capitalism". The Guardian. Retrieved 25 Jun 2017.
  51. ^ Mason, Paul (17 July 2015). "The end of capitalism has begun". The Guardian. Retrieved 19 August 2019.
  52. ^ Kostakis, Vasilis; Niaros, Vasilis; Giotitsas, Chris (2023-06-30). "Beyond global versus local: illuminating a cosmolocal framework for convivial technology development". Sustainability Science. 18 (5): 2309–2322. Bibcode:2023SuSc...18.2309K. doi:10.1007/s11625-023-01378-1. ISSN 1937-0709.

Further reading

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