What Does “Postcapitalism” Mean?

A new economic system that should eventually take the place of capitalism is referred to by the phrase post-capitalism.

Paul Mason, a British journalist, provided a thorough explanation of the post-capitalist ideology that he developed. According to his analysis, the current capitalism paradigm has reached its limits and is driving the world into widespread poverty and increasing inequality.

According to Mason, the current economic system of humanity is transitioning into a post-capitalist one. In the not too distant future, developments taking place on a global scale, such as pervasive automation and the proliferation of information technology, will make it possible to reduce the price of essential commodities and services, greatly enhancing the quality of life.

Revolution in Neoliberalism

Paul Mason, a British journalist and publicist, presented the postcapitalist idea in his book titled “Postcapitalism: A Guide to Our Future,” which was released in 2015. The title of the book literally translates to “PostCapitalism: A Guide to Our Future.”

In his work, he pointed to fundamental flaws in the Western economy and the growing popularity of the far right as alarming signals of a systemic crisis in capitalism. Specifically, he was concerned about the structural problems in the Western economy and the growing popularity of the extreme right. According to him, the fact that “neoliberalism is broken” is the primary cause of the instability that characterizes the social and economic life of industrialized countries.

Mason observed that beginning in the early 1970s, the rate at which real wages increased in proportion to increases in productivity had ceased to increase. At the beginning of the 1980s, growth began to be supported more and more by debt instruments, which eventually led to their entire volume increasing to more than 300% of world GDP by the year 2010. By the end of the year 2021, the total amount of debt commitments had surpassed $300 trillion, and their proportion to world GDP stood at 350%.

Monetary policy played a role in fostering the expansion of the national debt by lowering key interest rates in the United States and European countries on a regular basis since 1980. This boosted economic growth by making investment opportunities more affordable. Another issue is the enormous growth in the money supply, which has been brought about in part by the “quantitative easing” initiatives that have been implemented since 2008. As a direct consequence of this, the pace of inflation quickened, and real interest rates on deposits and government bonds declined.

According to the author of Postcapitalism, the “neoliberal revolution” had happened in 1979. [Citation needed] For the first time in hundreds of years, the capitalist elite were able to emerge from another crisis not by reaching a settlement with the “working mass,” as they had done in previous crises, but rather by quickly increasing debt through the issuance of money. Because of this, there was a rise in productivity in the decades that followed, but there was no corresponding rise in real income.

The Crisis of Capitalism

The so-called “information effect” gives significant consideration to the economy of the present day. According to Mason, the exponential rise of information and the ease with which it can now be disseminated have facilitated the availability of a great deal of services and goods. However, as a result of the inherent characteristics of capitalism, they have not been able to tackle the problem of declining productivity, which has persisted for decades.

Mason is of the opinion that the current framework of “classical” capitalism, which includes the digital economy, has contributed to a concentration of wealth on a scale never seen before. in this particular instance, centralized within the control of huge technology businesses that, with the assistance of platforms, have a monopoly on the information environment. As a direct result of this, social stratification has only intensified in the most recent decades, a phenomenon that is characterized by the ongoing growth of low-wage positions.

A further effect of neoliberal relations is the shift to market relations of activities that used to be public and voluntary. Neoliberal relations also result in the financialization of a variety of different goods and objects.

Transition to Postcapitalism

Mason is sure that the global economy is about to enter a new historical cycle that will last for the next five hundred years. The preceding cycle started in the 15th century and ended with the establishment of capitalism. Post-capitalism was the name that the researcher gave to the newly emerging form of economic interactions. The advancement of technology made it possible for them to carry out their onslaught.

A transition to post-capitalism that is capable of finding solutions to problems will be made easier by various global trends, including the following:

• Complete mechanization of manufacturing and service processes with the use of AI and robots;
• The implementation of a universal basic income; The production and distribution of essential goods;
• Increasing awareness of the open source code philosophy;
• Fight against economic structures based on renting, as well as monopolies;
• lowering the national debt through increased financial oversight and maintaining interest rates below inflation levels.

Mason argues that investments in information technology should be prioritized over those in other areas, such as the medical and industrial sectors. The latter option will result in a sizable decrease in the cost of living while simultaneously improving the quality of life and lightening the load placed on the social security system.

The eventual effect of all of these developments will be a reduction in the price of the majority of goods and services, which will lead to a rise in the standard of living as a whole and the elimination of the demand for labor that requires low levels of expertise. The amount of required work will be cut down, and the majority of individuals will have more spare time available to them. The previous function of centralized institutions that were founded on inequity and vertical hierarchies is going to be eliminated.