What is post-capitalism?

Main

• Post-capitalism is a term describing a new economic system that should replace capitalism.
• The concept of post-capitalism was described in detail by the British journalist Paul Mason. In his opinion, the current capitalist model has exhausted itself and is leading to massive impoverishment and growing inequality.
• According to Mason, humanity is now moving towards a post-capitalist system. Global trends, such as ubiquitous automation and the spread of information technology, will allow minimizing the cost of basic goods and services in the future, significantly improving the quality of life.
• Centralized and hierarchical economic structures will give way to horizontal models of voluntary cooperation.
• The concept of post-capitalism, described by Mason, is criticized for being utopian and biased towards leftist ideology.

“Neoliberal Revolution”

The theory of postcapitalism was outlined by the British journalist and publicist Paul Mason in his book “Postcapitalism. Guide to Our Future” (PostCapitalism: A Guide to Our Future), published in 2015.

In his work, he pointed to structural problems in the Western economy and the growing popularity of the far right as troubling signs of a systemic crisis in capitalism. The volatility of social and economic life in developed countries, in his opinion, is due to the fact that “neoliberalism is broken.”

Mason noted that real wages had ceased to rise in proportion to productivity growth since the early 1970s. By the early 1980s, growth began to be increasingly supported by debt instruments, which increased their total volume to more than 300% of world GDP by 2010. In autumn 2021, the amount of debt exceeded $300 trillionand their ratio to global GDP is 350%.

Debt growth was facilitated by monetary policy: key rates in the United States and European countries have been consistently reduced since 1980. This stimulated economic growth through cheap investment. Another factor is the massive increase in the money supply, including through the “quantitative easing” programs launched since 2008. As a result, inflation accelerated, and real interest rates on deposits and government bonds fell.

In 1979, the “neoliberal revolution” took place, states the author of Postcapitalism. For the first time in hundreds of years, the capitalist elite emerged from another crisis not by compromise with the “working majority”, but by rapidly increasing debt by issuing money. This led to an increase in productivity without an increase in real incomes in the following decades.

Crisis of capitalism

“Capitalism is no longer able to adapt in the way it did during the most successful times of the early 20th century and after World War II. It no longer allows you to create value from skills and performance,” says Mason.

The so-called “information effect” has a great influence on the modern economy. According to Mason, the rapid growth of information and its free distribution have made many services and goods available. However, due to the structural features of capitalism, they have not solved the problem of productivity, which is in stagnation.

The digital economy in the current structure of “classical” capitalism, Mason believes, has contributed to an unprecedented concentration of wealth. In this case, in the hands of large technology corporations that have monopolized the information environment with the help of platforms. As a consequence, social stratification has only increased in recent decades, characterized by the constant creation of bullshit jobs.

Another consequence of neoliberal relations is the transfer to market relations of activities that used to be public and voluntary, as well as the financialization of various goods and objects.

Transition to post-capitalism

Mason is confident that the world economy is on the verge of a new historical cycle of 500 years. The previous cycle began in the 15th century and led to the emergence of capitalism. The researcher called the new type of economic relations post-capitalism. Its offensive was made possible by technological progress.

A transit to post-capitalism that can solve problems will be facilitated by several global trends:

• Total automation of industry and services through machines, AI and robots;
• Introduction of a universal basic income;
• Availability of basic consumer goods;
• Spreading the principle of open source code;
• Fight against rental economic models and monopolies;
• Reducing public debt by regulating banking and keeping rates below inflation.

Mason calls for preference in investing in information technology, such as in industry and healthcare. The latter will significantly reduce the cost of living and improve its quality, while at the same time reducing the burden on the social security system.

The result of all these trends will be the minimization of the cost of most goods and services, which will increase the overall level of well-being, and the need for low-skilled work will disappear. The volume of compulsory work will be reduced, free time for most people will become free. Centralized structures based on inequality and vertical hierarchies will lose their former role.

Instead, decentralized models of activity will become more widespread, in which individual specialists will voluntarily unite to implement any projects. To do this, they will spend their free time, often without demanding any payment in return.

Criticism of the concept

While some experts acknowledge the validity of Mason’s ideas, others criticize his suggestions and conclusions. Kristan Fuchs of the University of Westminster names the author of “Postcapitalism” “utopian socialist”who relies on information technology as a way to solve economic problems.

He notes that technologies are formed under the influence of the most hierarchical system of capitalism. Therefore, they contribute to its development rather than contribute to its collapse.

The Guardian columnist Chris Mullin writes in his book reviewthat Mason’s perception of trade unions and the labor movement in the 1960s and 1970s in the West, in particular in the UK, is too idealized.

In addition, Mullin points to Mason’s past: in his youth, he took an active part in the radical left movements. This, the critic believes, may explain why Mason devoted a significant part of his book to the criticism of capitalism, but offered an overly simple and vague program of action, referring to the writings of Marx and the socialist politicians of the past.

Main

• Post-capitalism is a term describing a new economic system that should replace capitalism.
• The concept of post-capitalism was described in detail by the British journalist Paul Mason. In his opinion, the current capitalist model has exhausted itself and is leading to massive impoverishment and growing inequality.
• According to Mason, humanity is now moving towards a post-capitalist system. Global trends, such as ubiquitous automation and the spread of information technology, will allow minimizing the cost of basic goods and services in the future, significantly improving the quality of life.
• Centralized and hierarchical economic structures will give way to horizontal models of voluntary cooperation.
• The concept of post-capitalism, described by Mason, is criticized for being utopian and biased towards leftist ideology.

“Neoliberal Revolution”

The theory of postcapitalism was outlined by the British journalist and publicist Paul Mason in his book “Postcapitalism. Guide to Our Future” (PostCapitalism: A Guide to Our Future), published in 2015.

In his work, he pointed to structural problems in the Western economy and the growing popularity of the far right as troubling signs of a systemic crisis in capitalism. The volatility of social and economic life in developed countries, in his opinion, is due to the fact that “neoliberalism is broken.”

Mason noted that real wages had ceased to rise in proportion to productivity growth since the early 1970s. By the early 1980s, growth began to be increasingly supported by debt instruments, which increased their total volume to more than 300% of world GDP by 2010. In autumn 2021, the amount of debt exceeded $300 trillionand their ratio to global GDP is 350%.

Debt growth was facilitated by monetary policy: key rates in the United States and European countries have been consistently reduced since 1980. This stimulated economic growth through cheap investment. Another factor is the massive increase in the money supply, including through the “quantitative easing” programs launched since 2008. As a result, inflation accelerated, and real interest rates on deposits and government bonds fell.

In 1979, the “neoliberal revolution” took place, states the author of Postcapitalism. For the first time in hundreds of years, the capitalist elite emerged from another crisis not by compromise with the “working majority”, but by rapidly increasing debt by issuing money. This led to an increase in productivity without an increase in real incomes in the following decades.

Crisis of capitalism

“Capitalism is no longer able to adapt in the way it did during the most successful times of the early 20th century and after World War II. It no longer allows you to create value from skills and performance,” says Mason.

The so-called “information effect” has a great influence on the modern economy. According to Mason, the rapid growth of information and its free distribution have made many services and goods available. However, due to the structural features of capitalism, they have not solved the problem of productivity, which is in stagnation.

The digital economy in the current structure of “classical” capitalism, Mason believes, has contributed to an unprecedented concentration of wealth. In this case, in the hands of large technology corporations that have monopolized the information environment with the help of platforms. As a consequence, social stratification has only increased in recent decades, characterized by the constant creation of bullshit jobs.

Another consequence of neoliberal relations is the transfer to market relations of activities that used to be public and voluntary, as well as the financialization of various goods and objects.

Transition to post-capitalism

Mason is confident that the world economy is on the verge of a new historical cycle of 500 years. The previous cycle began in the 15th century and led to the emergence of capitalism. The researcher called the new type of economic relations post-capitalism. Its offensive was made possible by technological progress.

A transit to post-capitalism that can solve problems will be facilitated by several global trends:

• Total automation of industry and services through machines, AI and robots;
• Introduction of a universal basic income;
• Availability of basic consumer goods;
• Spreading the principle of open source code;
• Fight against rental economic models and monopolies;
• Reducing public debt by regulating banking and keeping rates below inflation.

Mason calls for preference in investing in information technology, such as in industry and healthcare. The latter will significantly reduce the cost of living and improve its quality, while at the same time reducing the burden on the social security system.

The result of all these trends will be the minimization of the cost of most goods and services, which will increase the overall level of well-being, and the need for low-skilled work will disappear. The volume of compulsory work will be reduced, free time for most people will become free. Centralized structures based on inequality and vertical hierarchies will lose their former role.

Instead, decentralized models of activity will become more widespread, in which individual specialists will voluntarily unite to implement any projects. To do this, they will spend their free time, often without demanding any payment in return.

Criticism of the concept

While some experts acknowledge the validity of Mason’s ideas, others criticize his suggestions and conclusions. Kristan Fuchs of the University of Westminster names the author of “Postcapitalism” “utopian socialist”who relies on information technology as a way to solve economic problems.

He notes that technologies are formed under the influence of the most hierarchical system of capitalism. Therefore, they contribute to its development rather than contribute to its collapse.

The Guardian columnist Chris Mullin writes in his book reviewthat Mason’s perception of trade unions and the labor movement in the 1960s and 1970s in the West, in particular in the UK, is too idealized.

In addition, Mullin points to Mason’s past: in his youth, he took an active part in the radical left movements. This, the critic believes, may explain why Mason devoted a significant part of his book to the criticism of capitalism, but offered an overly simple and vague program of action, referring to the writings of Marx and the socialist politicians of the past.