Marx argued that, as a consequence of the structural exploitation of the labour class by capitalists, capitalism’s inherent class struggle would eventually transform the capitalist political economy into a socialist one through revolutionary measures (Marx, 2013; Marx and Engels 46-7). As discussed in the previous chapter, the 4IR will likely increase the pressure on the already unequal interaction between labour and capital through increasing labour insecurity. The robotic innovations of the 4IR may even redefine this relationship altogether as labour may become a capital asset, which decreases the overall demand for human labour (Piketty, 2014).
Standing pointed out that this trend of increased labour insecurity fosters the growth of the precariat class, which he argued is a new dangerous class that will destabilise capitalist democracies through their sensitivity to populist rhetoric (Standing, 2011; Roe 501-505; Gonzalez-Vicente and Carroll, 2017; Flecker, 2016; Harvey 91-111).
Further research will need to point out what the actual similarities between the emerging precariat crises and the Marxist class struggle are, the similarities that can be observed through this thesis make me believe Marx may still be relevant for addressing this issue in the future.
Conclusion
In conclusion, recent decades have showed a surge in the negative socioeconomic trends like growing economic inequality that are fostered by liberalisation of global capitalist political economies. The technological innovations of the 4IR have the potential to disrupt the capitalist interaction between capital and labour and as a result increase economic disparity globally. As a result, the 4IR will shake global capitalism to its core.
In respect to Marx’s and Smith’s writings of over two centuries, this thesis has shown that both academics and experts in public and private institutions validate that Marx’s and Smith’s perception of the tendencies of capitalism and Marx’s thesis about the inherent contradictions appears to hold true for today’s capitalist political economies.
As it is likely easier to prepare for change than to address it in hindsight. The 4IR will require a monumental shift in the approach to capitalism if it is to adapt to the developments of the 21st century. If not, the socioeconomically motivated growth of the precariat class may split capitalist societies in half and destabilise societies through political polarisation. Moreover, as automation of production will increase pressure on the geographical labour advantage or developing countries, the development process in developing countries may come to a halt if these governments do not find a way to divert from their industrialisation development strategy.
RQ
What insights can Marx’s critique of capitalism provide for preparing for the socioeconomic challenges that come with the technological innovations of the 4IR?
One thing is certain, 4IR will decrease the demand for low-skilled labour as the machines of the future will outcompete the human physique. High rates of economic inequality will decrease social mobility and political participation of those at the bottom of the pyramid. Therefore, even though this may seem beneficial for a portion of society, the group that is no longer participating in the economy due to 4IR labour redundancy may be left behind as their social mobility may eventually come to a standstill as economic inequality grows larger.
Marx argued that joblessness does not necessarily have to be a bad thing, it can also be freedom. In order to ensure that the 4IR will benefit all, Marx may be able to provide insights. Perhaps, a focus on mass education policies and a framework that enables the fluidity of work by addressing its stigma could be pivotal. There are already sporadic attempts to adapt like trials with a non-discriminatory basic income (Standing, 2011). However, it is hard to see where governments should suddenly find the funds to implement these costly measures, especially considering that many are experiencing budget deficits (Piketty, 2014).
Piketty’s research may provide us with at least one part of the answer. In order to mediate the trend of increasing economic inequality. Piketty suggests that his recommendation of progressive wealth taxation may be able to tackle rising economic inequalities as it tackles the problem of wealth growing faster than productivity; the latter of which is linked to the growth rate of wages.
However, Piketty notes that progressive taxation of wealth may require an overarching global governmental body in order to provide the institutional policy framework to guide this practice of global wealth distribution. At the moment such a framework only exists regionally in institutions like the European Union (Piketty 515-6).
Over the course of his lifetime Marx argued that capitalism would eventually evolve into socialism, however he did not provide many clear guidelines on how socialism could function in practice aside from it needing to be a
planned political economy. Piketty’s call for a global wealth distribution policy framework may well align to at least a part or Marx’s thesis, as all governments will need to adhere to the rules and regulations of this financial political institution.
With this conclusion, questions arise about its implementation. Future research is needed on how to mitigate the concentration of power that comes with a global institution of this sort. Moreover, to take it one step back, it is unlikely that governments will unilaterally give up a part of their sovereignty. Research would need to be conducted to investigate the possibilities for such a framework and provide an academic basis for political change in order for policymakers to be willing to take a step towards change. This thesis pointed out that Marx identified some of the inherent contradictions and tendencies of capitalism, tendencies that will likely intensify and laid bare in the dawn of the 4IR. Therefore, policymakers and academics alike may want to start their search for an answer with Marx in hand.
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