Promise of Capitalism

Today, the world is suffering from the impacts of the Third Industrial Revolution as it stands on the cusp of the so-called Fourth Industrial Revolution. The question of our lifetimes is whether the world stands ready for such a drastic transformation when the ability to digest the impact of the third is proving to be a difficult task.

The Third Industrial Revolution saw the incorporation of robots and the automation of assembly lines. The result was a steady decrease in the number of workers needed in these factory jobs. These jobs were well-paying enough to give those working them a middle-class life.

However, the percentage of workers engaged in factory work has declined steadily as robots and other labor-saving devices become more prevalent. The Fourth Industrial Revolution stands to propel this replacement of workers at an accelerating pace. In essence, this revolution will see the marriage of human and machine capabilities in the form of artificial intelligence (AI) and an accompanying surge in productivity and a diminishing demand for labor.

The Fourth Industrial Revolution will likely see the rise of autonomous forms of transportation for taxis and long-distance trucking along with the replacement of cashiers, clerks and more by robots, computers or AI. Around Seoul, it is not uncommon to find McDonald's restaurants which allow you to place your order at kiosks, entirely bypassing the cashier. How far away can burgers or coffees made to order by robot be?

However, the loss of jobs will not be limited to simply those with lower skilled jobs. Lawyers, accountants, financial analysts, insurance underwriters and more will also have their professions threatened by AI.

In such a scenario, who stands to benefit the most? Increasingly, capitalism has found all the profits generated by companies or corporations making their way into the pockets of shareholders. In previous decades, it wasn't uncommon for companies to have profit-sharing programs with their workers.

This is not the case anymore as rising inequality attests to. Increasingly the rich are become richer because of investments, not through labor. The replacement of people with robots and AI will only encourage this trend of widening inequality as capital holders stand to gain at the expense of labor.

The average worker, along with increasing numbers of skilled workers, will find themselves out of work. The question of the Fourth Industrial Revolution is what to do with them...