"Economics is defined as a science of scarcity; it is predicted that abundance will do it in the 21st century."
The best-selling author, Jeremy Rifkin, published his twentieth book, 'The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons and the Eclipse of Capitalism', in 2014. It draws attention to a much more profound contradiction ignored by Karl Marx while eloquent about many other ancillary contradictions of Capitalism.
Dying Capitalism:
Rifkin exposes the contradiction at the heart of capitalism that has propelled it to greatness - but is now taking it to its death. The inherent entrepreneurial dynamism of competitive markets drives productivity up and marginal costs down. It enables businesses to reduce the price of goods and services to win over consumers and market share. When goods or services attain the critical mass, one can make additional units at zero or near-zero marginal cost.
Zero marginal cost describes a situation where one can produce additional goods and services without increasing production costs. While economists have always welcomed a reduction in marginal cost, they never anticipated the possibility of a technological revolution that might bring marginal costs to near zero, making goods and services priceless, nearly free, abundant, and no longer subject to market forces.
We are worried that capital accumulation is driving ever-greater wealth inequality and that we have already lost the climate change battle. We have good news. Rifkin argues that we are about to enter an era when the Internet of Things, free energy, and what he calls 'the collaborative Commons' will make anything and everything available for practically nothing. Together, those developments will overthrow capitalism as the world’s dominant economic model. Economics is defined as a science of scarcity; it is predicted that abundance will do it, in the 21st century.
The near-zero-marginal cost phenomenon has disrupted the information-good industries over the past decade. Millions of Consumers turned Prosumers are using the Internet to produce and share their music via file-sharing services, videos on YouTube, knowledge on Wikipedia, news on social media, and even e-books, all for nearly free, which has become commonplace. Massively Open Online Courses (MOOCs) operate at near-zero marginal cost, and some of the most distinguished professors in the world conduct them. Six million students have currently enrolled for MOOCs for free. The near-zero marginal cost phenomenon brought the music industry to its knees, shook the film and television industries, forced newspapers and magazines out of business, crippled the book publishing market and forced universities to rethink their business model. We enjoy Apps that promise millions of songs free 24/7 under the zero marginal cost economy.
Internet of Things & AI:
There was an argument that the productivity advances made possible by the digital economy would not pass across the firewall from the virtual world to the brick-and-mortar economy of energy, transportation, and physical goods and services. There is no longer a firewall between the digital and the world of physical enterprise. A new Internet of Things (IoT) is evolving. Artificial intelligence drives automation and robotics that enable exponential productivity growth - driving down the production costs and expenses of hiring a workforce. It allows conventional businesses and millions of 'prosumers' to make, store and distribute renewable energy on a digital energy Internet; Share vehicles on an automated, GPS-guided and soon driverless, Transportation and Logistics Internet; Manufacture an increasing array of 3-D-printed physical products and other goods and services. All this at a meagre marginal cost in the market exchange economy, or near zero marginal cost in the sharing economy—just as they now do with information goods.
The best Digitised biology class video that is Distributed Online gets Demonetised; and further Consumed by an infinite number of students rendering it Democratised - illustrating the typical three-step process of the New Economy.
Post-Covid, the expensive meetings are digitised (zoom), demonetised, person-to-person and group contact costs, reduced to zero; and democratised, accessible to anyone with a smartphone. Similarly, all activities having a cognitive pattern, including critical (robotic) surgeries, would be rendered to zero marginal cost, dispensation.
The Demise of Propreitarian Economic Theories:
Today, the Private and State Propreitarian economies and the hybrid versions of the Enterprise's organisation are challenged as never before.
Rise of the Principle of Utilization as the Socioeconomic Value
Economists have only interpreted Proprietary in various ways. The point, however, is Utilisation. That is the Progressive Utilisation of all kinds of Resources – material, intellectual, and psycho-spiritual for the welfare of all living beings. Further, the pandemics, climate change, nuclear war and technology disruption, respect no Borders, warranting a world governance structure.
Cosmic Inheritance: Prout asserts that all living beings, animate and inanimate, are the progeny of a singular Progenitor. Hence, all have the all-important inviolable Right to utilise and share, but not hoard or abuse, the universe’s resources as a Cosmic Inheritance.
New Progressive Utilisation Theory (PROUT): The concept and practice of privileging Utilization over Propreitarianism of finite physical resources are fundamental to the progressive Utilisation, and Rational distribution, of all available resources, material, metaphysical spiritual resources for the welfare of all living beings. Thus, the misuse and disuse of available resources is anti-social behaviour.
The underlying principle is recognising that the hoarding or misusing of finite physical resources would deprive or diminish opportunities for others. Thus, Prout legislates for the social intervention of a ceiling on accumulating physical wealth. The principle applies solely to the accumulation of available physical wealth, whereas in the realms of infinite metaphysical (intellectual/cultural) and spirituality, humans experience complete freedom without any restrictions.
Guaranteed Minimum Requirements and Yoga Economics:
Universal Education:
Society guarantees Universal Education and Healthcare, ensuring a level playing field. It proclaims 'Sa Vidya ya Vimuktaye'. Education cannot be subjected to a market economy and should be treated as a Fundamental Right of all citizens to enable the fullest human expression of each individual's physical, psychic and spiritual potential - without any discrimination.
Several European Union countries, including Germany, provide free Education, including Higher education, to all citizens.
India spends a low GDP share of 3.37 per cent, which has declined from 4.5 for the year 2000, while It is 4-6 per cent of GDP in most countries, big and small, rich and underdeveloped. The average share of GDP for Education in OECD countries is 4.5. By not funding Education, the Pakistan government drove the students into the lap of fundamentalist madrasas with severe consequences for themselves and the region.
Vested interests in India are commoditising and lowering the standards of Education. Their neglect of teaching Humanities Courses is affecting the cultivation of exemplary citizenship against dogmas.
The digitisation of knowledge resources and universal, affordable Internet connectivity enables access to a world-class education for all. The best digital classroom experience can be delivered on handheld devices at zero marginal cost without distinction to rich and poor alike.
Prout activists would unlock the potential of a zero marginal cost economy to materialise the powerful dream of universal quality education to all in both the mother tongue and world languages. 'Sa Vidya ya Vimuktaye'.
Food Sovereignty:
Exponential innovations in science and technology will render the required local food production for the Samaj, economic and feasible, irrespective of adverse or favourable geophysical factors.
There are three essential factors for climate-neutral farming and food production: (A) Driving down input cost to zero marginal cost, (B) AI and Automation in crop monitoring reducing labour costs. (C) health and ecology-conscious community's demand for locally produced food.
A). We can draw the required energy from Renewable resources such as solar, geothermal, wind, tidal, hydro-electrical and other sources. Thus the energy costs for a) desalination/nutrition through irrigation water, b) controlled climate conditions of the multi-tiered greenhouses - would be available in situ, at zero marginal cost.
B. Vertical farming, Hydroponics, Artificial intelligence, nano-robots, and automation will render crop production in multi-tiered climate-neutral greenhouses feasible, reduce workforce necessity, and remove drudgery.
C. There is a movement gathering momentum for local food production for local consumption, for all the right reasons; carbon footprint, health, circular or symbiotic economy.
The agrarian revolution of Cooperatives can free humanity from malnutrition, and hunger and restore the threatened environment. All we need is the political will to establish governance of Samajas by the informed leadership.
The solutions for the production of sufficient food are available. Each Samaj shall design the (Proutist) cooperative economy to produce and distribute food to meet the demand, securing Samaj's food sovereignty.
Transport and Communications:
The multiple revolutions - navigation (Google Maps), ride-hailing, ride-sharing (uber) and 6G-backed speed of response will shortly lead to self-driving vehicles (waymo) - together riding on the platform of the Internet, combined with the exponential increase in battery storage capacity, will render transport to near-zero cost.
The communications revolution in the last two decades has made geography history. Now powered by handheld smartphones, it is heading to connect rapidly entire humanity. The costs have also been rapidly falling with powerful 6G and several projects underway to offer Internet connectivity and Wi-fi by placing thousands of low-orbit satellites covering the entire planet.
Healthcare for All:
Unlike the current, reactive distress-stage healthcare, the future will be predictive, based on the whole-genome-info of all members of a Samaj, made accessible online for healthcare purposes. Along with it, chips embedded in the individual, connected to an online health surveillance system and Digital Assistants (artificial intelligence) would deliver universal Healthcare at zero marginal cost.
The individual whole-genome sequencing cost from 7 crores in 2001 has crashed to Rs.15000/- in 2020 (Veritas Genetics). The downward curve with volumes will render it at zero marginal cost in a few years. Prout society will ensure whole-genome sequencing of All and its access to Experts to monitor health indicators to deliver predictive Healthcare.
Universal Access to Basic Necessities:
The data-rich Eco-system has transformed how we learn, socialise, work, and entertain through affordable smartphones at near marginal cost. Similarly, three-step - Digitised, Demonetised, and Democratised processes will go beyond the virtual spaces. It will drive physical devices in every sector, from Cars to Robotic surgical operations, bringing zero marginal economics closer to the goal of guaranteed minimum necessities of life and welfare of All.
The major cost factor of energy required for production and distribution is resolved by distributed or in situ power generation, at near-zero cost, from renewables, such as solar, wind, thermal, tides, etc.
Promise Plenty:
Prout activists must challenge the under-use, abuse and disuse of available resources under greed-driven Capitalism. Another world is possible with the zero marginal cost economy to achieve self-reliance in the local production and distribution of guaranteed minimum necessities of life to all the members of the society.
The economy's redesign with the Cooperatives will secure maximum utilisation and equitable and rational distribution of the essential minimum requirements of the era, further progressively upgrading the universal basic basket of essential goods and services in step with the changing times.
Prout ideology warrants adopting a new value system based on Spirituality and a Revolutionary shift in behaviour. The Prout vision of alternative Futures shall inspire a paradigm shift in social thinking and action. The Proutists shall offer the necessary leadership in materialising the Sadvipra Samaj, ushering welfare of all living beings.
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1 Comments
Very well explained. I hope this reaches the policymakers and bureaucrats.
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