The issue is, with automation, you don't necessarily need to sell anything, hell, where you don't necessarily even need workers. When your entire top to bottom production chain is automated from raw materials to finished product, you can just leave the people behind like you would a worn out factory. I think this could create a very dangerous Elysium-esque schism in the population, where the very rich basically tell the rest of us to fuck right off and die. If they have everything they need, and the process of them getting everything they need doesn't require us anymore, what value do we have, to them?
A good question, to which I think there are a couple responses.
The first is that, essentially, the rich could almost be said to have reached this point already. Most wealth is in the hands of a very few. They don't need us for most things. Why do they continue to seek wealth? Well, because they don't just want to be richer, they want to be better. Better than the other guy, better than the competitor. Why? Because we're humans, we wouldn't have made it this far as a species if we weren't competitive. If we're lucky, that'll get us into space. Of course, then you have to deal with the ones who aren't competitive, just greedy...
So, to the second, let me point out that if none of us can buy things from Wal-Mart, something very bad is going to happen to Wal-Mart. Wal-Mart won't suddenly be able to get income from somewhere else - it will fold, and all the people who owned parts of Wal-Mart will be in financial trouble insofar as they were exposed to it. The rich, even those in the financial sector, base their economies on us, on our consumption. Who is going to buy the iPods, the cars, and so forth, that make the rich, well, rich?
And that's not to mention the fact that automation cannot actually handle many of the tasks necessary for the rich to survive, from custom craftsmanship to raw resource extraction.
But suppose you are right. Suppose that every job that humans can do is automated. What then? Well, the fun thing is that if you can do that, then there's no reason that you can't use that automation to make your own life better. So the rich have 3d printers? So what? I and my friends will get one together, and print ourselves what we need.
And yet, I agree that your worries are valid. Not because capitalism is failing us - not that we have much of capitalism in the United States anymore - but because I take issue with this statement, in an odd way:
They'll inherit the future that should have been meant for all of us, because they were too selfish and too focused on the short term to share and in the long run it just won't affect them. They won't have to live with it. We will.
There is no such thing as a future that is meant for all of us. There are no such things as innate human rights. There is no such thing as justice. There is no principle that the powerful violate, no over-arching ideal.
But there is power. The point of what we see, for most of those who would exploit us, is power. Financial power, political power, the exercise of power. That's why your proposed future is possible, because it won't be automation that crushes us, if it comes in the manner you speak. Give free people that sort of access to technology and they'll be colonizing the asteroid belt, if that's what it takes to find a job. If automation crushes us, it will be because those who utilize it saw it as an opportunity to remove the threat that the majority of humanity could always exercise: that of simple non-compliance.
So we only have those rights which we fight for. And that is a political problem, not an economic one. Capitalism works, or, at least, welfare capitalism does. Why isn't it working? Because it is sabotaged by those with personal interests in getting rid of it.
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To your second point: what do we owe people, simply for being people?
Nothing. It neither breaks my heart nor picks my pocket if someone in the Sudan dies from starvation. Or, to put it in the Adam Smith analogy, if you were to find that you were going to lose your leg tomorrow, your would likely be far more upset by that than by the fact that several thousand children died today, in rather excruciating circumstances. Some will deny this, but the test of caring is in action, and few if any sacrifice everything they love and enjoy just to save lives they do not know.
On the other hand, perhaps I should care quite a lot. That child might have been a possible Einstein, or his death might spark a revolution that could harm my interests, or there might be innumerable other advantages that might accrue to me if he lived. If it costs me nothing, why wouldn't I want him to live?
So, perhaps we are not obligated to save a life, or to make it better - just as you are not obligated to jump into an ice-cold lake to save a drowning man - but it does seem pretty decent of us to give it a shot, so long as it doesn't cost us too much. Fortunately, you have posited a society in which helping others costs us essentially
nothing. And, given that little fantasy, which I admit would be nice if true, it would naturally follow that we could help everyone as much as possible. Nothing, being an infinite, allows for infinite help if the cost is nothing.
Well, what becomes the currency in that case? The currency becomes ideas and inventions, art and science. If the trash collects itself, then what people will want and pay for are better and more artistic trash collection methods, as well as aforementioned limited-by-nature items (coastline property, for instance). Capitalism will still exist, only the products will change. Even given infinite resources, time and ideas will still be limited.
Maybe its time to change that. Its been 150 years since anyone proposed a radically new economic model. The models we have, the systems we have, are all made under the assumption that people are a critical step in creating the things we need. But that's more and more rapidly ceasing to be the case. Capitalism, communism, even socialism. These are becoming increasingly outdated systems built upon premises that no longer apply in our automated and global world. I think its time for something new. Everything is on the table. For the sake of our futures, and our children's futures. We have to be willing to put aside our parents tools, and start to construct our own.
To this I am tempted to point out that almost every time someone in charge has taken the above seriously, quite a lot more people have died than was strictly necessary. But I think a more...reasonable approach is in order.
I'm not a Marxist, because I have studied Marx, and his theories do not correspond to reality. But he had good historical points, as well as sociological ones, and one point he made, whether he knew it or not, was that capitalism was an organic system.
That is to say, capitalism was not designed. It grew out of the feudal and mercantile eras without anyone particularly coming up with the idea that it should. In fact, many did not think it should. Yet, it triumphed anyway. It triumphed because it was the most efficient and natural method for people to relate to each other economically.
So to say that capitalism is outdated or founded on any premises is, I think, to miss the point. Capitalism isn't a system that anyone sat down and chose, it is a system that arose despite the efforts of many to squelch it. It did not beat out socialism, feudalism, Marxism, corporatism, and other systems because it was imposed - although it can be imposed - it beat out those systems because it was simply what people did when not acted upon by state control of property. We are very fortunate that it can be harnessed to collective aims. We were very stupid, as a species, to think ourselves capable of over-riding it.
Now this is the mistake people make: when I say that capitalism should serve us, and not we it, I do not mean that we are free to institute whatever economic system we wish. We are not, unless you are willing to embrace a forcible control of people that must expand beyond any terror of automation you might care to name. You could no more suspend the laws of natural selection than you can change economic behaviors by fiat.
Yet, the laws of evolution did not cause us to shrug, decide that whatever bad happened was necessary to the natural order, and thus remain ever in stasis. Rather, humanity found that it could tailor certain organisms, by those same laws, to its own ends. Similarly, we live by economic laws that entail capitalism, and will continue to entail it as long as limited goods (of any particular kinds) exist, but that does not mean that we must live tooth and claw economically. Capitalism, like natural selection, is an engine of titanic and incomprehensible power, subtle and brutally strong, but if we are aware of it, if we understand it, it can make us unimaginably better off.
But the ability to do that is a political decision. It has always been a political decision, a decision about power. And capitalism is not uniquely corruptible. Feudalism was, in essence, one long continuous barbaric orgy of exploitation. Slavery lasted for thousands of years, and not always for pure economic convenience. Socialism, fascism, and attempts at communism are already infamous for their callous treatment of humanity. No, whatever economic system we have, it will always be susceptible to the weak, pathetic mirror of our will to compete and dominate - that is to say, our fear, our terror of defeat, our sadism, and our desire to crush the other in the vain hope that by doing so we will be exalted.