Over the next few years, we are going to hear the phrase "stakeholder capitalism" start to be tossed around. This is a concept that is not fully developed yet will be discussed in relation to job losses due to artificial intelligence (and robotics).
Many associate this with the post-scarcity world. Another term to get familiar with is "post-monetary world". They are often used interchangeably.
So what does all this mean?
Let us start to discussion by outlining the environment many believe we are heading and then dive into the concepts people are going to apply.
The Rise of Robots
As discussed recently, we are seeing technology related to robots advancing at a great pace. Obviously, there is still a lot of work to be done since what we have is not very productive. However, once we see the 3rd and 4th generations of these bots rolling out, they will be fairly effective at what they do.
Then the conversation turns to the machine learning. This could cover a dozen articles so we will simply say that any progress in this area is going to have a profound impact. The advantage to a robotic system is the ability to multiply the skills simply by updating the software. Once the database has the skillset in it, that can be transferred to all.
If we get massive automation, especially in a relatively short period of time (say 5 years), this is going to displace a lot of workers. What happens when massive layoffs occur? People call for government action and the politicians are willing to pander for votes.
Here is where things get tricky. What is the solution to a dilemma like this? Again, that could also cover a dozen articles (and get us nowhere). For this reason, let's skip that and focus upon the larger picture.
Post Scarcity Economy
The idea of a post scarcity economy is that most basic needs are abundant. If humanoid robots are able to handle many of the tasks presently done by humans, the means of production skyrocket. Labor is no longer a limited commodity.
What we could see is the dual attack on both white and blue collar jobs. Due to software advancements, the things that a human can do better than a computer diminishes each day. With robotics, this will likely happen in the physical realm also.
At this point, it is only a matter of scaling. How long will it take to produce 1 billion bots? That does not seem like an unreasonable number 5 years after they enter production. We have to warn that still might be a couple years away but, as we know, time flies.
As they filter through the economy, production increases massively. Simply look at a supply chain and envision that mostly automated with these bots. We can see how each leg sees the same results, feeding into a much larger overall level of output.
The point being we could, by the end of the decade, be living in a world where productions levels are mind-boggling compared to where they are at now. Couple this with another 6 years of AI advancement and it is a guess of how things will look.
One hypothesis is that many of the basic components of society will not be lacking. Another is that jobs occupied by humans will decrease.
Stakeholder Capitalism
This is a name being assigned to a concept where society is viewed from the perspective of everyone having stake in what is taking place. It views the world in a way where corporations (or whatever is behind the means of production) operates in a way that benefits all stakeholders.
Many of the proposals tied to this idea have governments at the center. This is required to ensure the distribution of the means of production in a way that benefits everyone. Some call for Universal Basic income (UBI). Others believe that governments will provide basic services (Universal Basic Services) as a guarantee. There are ideas about doing this through taxation while others feel unlimited debt is the answer.
Whatever the angle that is being proposed, all approach the same situation: what happens if production is growing massively while jobs are diminishing?
This sets hundreds of years of basic economic activity on its ear. Our world is one where, for the most part, income is tied to labor. This is the basic swapping of time for money. Show up for work, get paid.
What happens when that is no longer the standard? How does society deal with it then?
These are the questions people are going to be wrestling with.
Cryptocurrency Already Solves This
Digital Assets are going to provide more solutions than people realize.
What we have taking place is the foundation for the future. Over the last few years, we discussed concepts such as the network-state. This is a basis for stakeholder capitalism, sans the governments.
It is also why governance, something not really experimented with, requires innovation. This is the basis for how people will survive.
When people talk about everyone having a stake, that is exactly how blockchain networks operate. Anyone involved is free to acquire the base coin, providing some stake in the system. Depending upon the structure, this gives one some say in how things operate.
They key factor is that people are able to financially capture any increase in the output of the overall system. This is absent in our present system. If the GDP goes up 5%, what does that mean for the average individual? In fact, what does it mean for anyone? There is nothing to capture that move. Some corporations might reflect it but others will not. The currency could reflect it but that is only present relative to other ones. When it comes to goods and services, this gain could be (is likely) negated.
Of course, when it comes to stake, distribution is vital. Here is where innovation is required. So far, most networks are "buy-in" programs. If you want the coin, bring money to the table and purchase it. In my mind, this is not changing the system very much.
That said, there are other means of distribution which are being implemented. These are likely the networks which can pull more of the global population.
In Conclusion
Keep this article in mind as you start to hear the phrases tossed around. My expectation is these will heat up over the next couple years. There will be many topics brought up but it all centers around the disconnect of income to jobs. This is the crux of it all if automation takes over.
Few are going to look to cryptocurrency as the solution. However, in an era of automation, there has to be something to capture the value generated by the increased output.
The onset of the Industrial Revolution brought with it, to a degree, the corporation. We are now fully immersed in that design. If you are one holding some stake in the companies that benefit from what we are discussing, you will capture the value. As for the rest, sorry about your luck.
This is what people will seek to change. Networks are going to be very important going forward and will become abundant. Here is the opportunity to tie all this together.
What happens if the massive gains from production are tied to a network which is tokenized? Then all the holders are able to enjoy the increase in value related to the economic output.
The solution is already here. Nevertheless, we are going to see academics, politicians, and think tanks all spending untold hours trying to figure it out.
We are well ahead of the curve.