Technology, Capitalism and the Future
Professions that are based on repetitive patters are going to be crowded out by Artificial Intelligence (AI) and Big Data. This is the process which unfolds in front of our eyes. This is something we cannot deny. Moreover, AI and Big Data make not only low-value occupations jeopardized but high-value ones too (which means that lawyers and doctors are threatened too). Modern technology also contributes to the widening of the inequality gap with those who hold assets becoming even richer and those who have only their physical and mental power to sell getting increasingly indebted.
Capitalism as we knew it in the past does not work. Our standard education systems do not fare better. They teach to excel in repetitive skills and these would soon be out of demand. The socialist ideology has been discredited. A mixture of state capitalism and autocracy, like in China, does not look attractive for many reasons despite economic growth it can arguably maintain. In the absence of workable foundational tenets we have turned to experts, especially economists. Unfortunately those founder too. There is palpable evidence for rent-seeking behavior of big corporations which contemporary economics ignores. It also applies the incentive principle, one of the pivots of the discipline, selectively. It even does not believe its own models: Harry Markowitz, the father of Modern Portfolio Theory and Noble Prize laureate (laureate of the special prize in economics founded by the Sweden’s Central Bank) never thought of using it for his own investments or Myron S. Scholes and Robert C. Merton, two other Noble Prize laureates, did not prevent the spectacular crash of the Long-Term Capital Management hedge fund. On top of it modern information economy creates goods that are inexhaustible and non-excludable and the existing economic models have very little to say about such commodities.
If you are interested in the topics touched upon above you may want to watch what Eric Weinstein, managing director of Thiel Capital, has to say about them here. If you are inclined to share with us your opinion please write to us at email@example.com