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The Rise of Anti-Capitalism ____ The internet of things
nytimes.com ^ | MARCH 15, 2014 | By JEREMY RIFKIN

Posted on 03/22/2014 2:46:32 PM PDT by dennisw

WE are beginning to witness a paradox at the heart of capitalism, one that has propelled it to greatness but is now threatening its future: The inherent dynamism of competitive markets is bringing costs so far down that many goods and services are becoming nearly free, abundant, and no longer subject to market forces. While economists have always welcomed a reduction in marginal cost, they never anticipated the possibility of a technological revolution that might bring those costs to near zero.

The first inkling of the paradox came in 1999 when Napster, the music service, developed a network enabling millions of people to share music without paying the producers and artists, wreaking havoc on the music industry. Similar phenomena went on to severely disrupt the newspaper and book publishing industries. Consumers began sharing their own information and entertainment, via videos, audio and text, nearly free, bypassing the traditional markets altogether.

The huge reduction in marginal cost shook those industries and is now beginning to reshape energy, manufacturing and education. Although the fixed costs of solar and wind technology are somewhat pricey, the cost of capturing each unit of energy beyond that is low. This phenomenon has even penetrated the manufacturing sector. More than six million students are enrolled in free massive open online courses, the content of which is distributed at near zero marginal cost.

Industry watchers acknowledge the creeping reality of a zero-marginal-cost economy, but argue that free products and services will entice a sufficient number of consumers to purchase higher-end goods and specialized services, ensuring large enough profit margins to allow the capitalist market to continue to grow. But the number of people willing to pay for additional premium goods and services is limited.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS:
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1 posted on 03/22/2014 2:46:32 PM PDT by dennisw
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To: dennisw
The Commies at the "New York Slimes" are attacking the free enterprise system again? What a shock /sarc

Incidentally, Napster is vicious parasitism off musician's creative work. There used to be fines against some of the napster users. I'm not sure what the system is now, but the napster system as it started should have been dealt with by the courts via fines against some of its users.

2 posted on 03/22/2014 2:52:49 PM PDT by Stepan12
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To: dennisw

It’s coming. Technological Socialism will change the world. Not necessarily for the better, but it will happen.

Older people work hard for big houses, big cars, jet skis, etc. The younger generations are happy with a small apartment, a smartphone, gaming console, and laptop. That’s why the free market message not only doesn’t appeal to them; it actually turns them off.


3 posted on 03/22/2014 2:53:31 PM PDT by Bryanw92 (Sic semper tyrannis)
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To: Bryanw92

Yup. Look at open source software. People will work on it for free or for a fraction of the salary from a real company. I don’t understand it, but there it is.


4 posted on 03/22/2014 3:00:50 PM PDT by rbg81
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To: Bryanw92

Being rich is the new racism.


5 posted on 03/22/2014 3:10:19 PM PDT by Dallas59 (Obama: The first "White Black" President.)
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To: dennisw

omg the abundance of cheap/free goods, which free people up to do other things, the horror. We must put a stop to this!!


6 posted on 03/22/2014 3:11:34 PM PDT by 4rcane
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To: dennisw
I have been studying the internet of things for a while (purely to determine if there is investment potential there and, if so, where)...and this statement from the article is hilarious...
The inherent dynamism of competitive markets is bringing costs so far down that many goods and services are becoming nearly free, abundant, and no longer subject to market forces.
When I can get my new Mercedes for free and drive to my free beach house with free fuel. Then I will be convinced.
7 posted on 03/22/2014 3:13:59 PM PDT by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: Bryanw92
It’s coming.

Baloney!

Do you think these hot new Stanford/MIT grads are socialists, wanting to donate their work for free.

These kids want to make billions. And that takes capitalism.

If anything, socialism will be run over by young billion $ seeking capitalists.

There is a revolution on the horizon, but it isn't socialism.

8 posted on 03/22/2014 3:18:32 PM PDT by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: dennisw

Rifkin doesn’t see the future as usual.

Mass customization will be the outcome. Instead of cheap mass produced identical goods, the near zero cost of basic production married to high bandwidth interactive communication will lead to value added services thru the process of customization.

And it will be capitalist. That’s how new services will be built on low to zero cost infrastructure, like Linux platforms, like self replicating 3 D printer bots.

Everything up to now has followed this pattern. Rifkin is a Bolshevik nostalgic still confused by capitalist development, which he misunderstands since it appears formless to him.


9 posted on 03/22/2014 3:21:05 PM PDT by Regulator
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To: All
Check out this video at Vimeo to get a bird's eye view of the real revolution. (These guys talk fast so you might need to back up a few times...I did). And believe me, capitalism (otherwise known simply as economic freedom) is the foundation of this revolution.

The old joke about Communism still applies.

Technocrat: "Mr. Smith, you have been approved for a brand new automobile."

Mr. Smith: "Great, when can I expect delivery?"

Technocrat: "In about 15 years...would you prefer morning or afternoon delivery?"

Mr. Smith: "Better make it in the afternoon...the plumber is coming in the morning."


10 posted on 03/22/2014 3:25:23 PM PDT by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: RoosterRedux

I remember that old joke!


11 posted on 03/22/2014 3:28:14 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw
I agree: the problem with Capitalism our Republic is that thieves are making it legal to steal.

And I agree that if something doesn't change soon, our system will collapse....
12 posted on 03/22/2014 3:52:25 PM PDT by Tzimisce
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To: dennisw

...except at the NYT where they still charge for online subscriptions....


13 posted on 03/22/2014 3:53:36 PM PDT by Tzimisce
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To: RoosterRedux
Do you think these hot new Stanford/MIT grads are socialists, wanting to donate their work for free.

Great for the 1% that want to make billions.

What are the other 99% gonna do?

In the future it will be harder to get decent pay for a decent day's labor.

14 posted on 03/22/2014 4:22:37 PM PDT by who_would_fardels_bear
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To: dennisw

Wait until we make everything at home with 3D printing ... :-) ...


15 posted on 03/22/2014 4:27:19 PM PDT by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
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To: Bryanw92

“The younger generations are happy with a small apartment, a smartphone, gaming console, and laptop. “

Since they’ve been largely “educated” that children are to be avoided, what need do they have for more?

The other side of that coin is that children by necessity induce responsibility and maturity.

Where is our culture going? It’s not looking pretty...


16 posted on 03/22/2014 4:33:20 PM PDT by PreciousLiberty
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To: rbg81

A lot of fun can be poked at open source, but much of it is better than the commercial stuff.


17 posted on 03/22/2014 4:35:58 PM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: dennisw; All

This is hilarious. Rifkin mistakes cheap things for free, and the destructive creation of capitalism for the destruction of capitalism

When you start with false assumptions, it is hard to come up with correct conclusions.

Rifkin has never had a clue. He is desperate to come up with a reason for the long overdue failure of capitalism.


18 posted on 03/22/2014 4:36:46 PM PDT by marktwain (The old media must die for the Republic to live. Long live the new media!)
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To: Bryanw92
Technological Socialism will change the world.

There is no such thing as "Technological Socialism".

Calm down and get a grip.

19 posted on 03/22/2014 4:38:39 PM PDT by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: dennisw

More software, education and designs are free. Entertainment can and should be cheap for the wise and frugal. Less expensive, older manufacturing methods can be used to produce any one of many items for a profit (see prices and costs). Many regulations will fall for lack of business revenues and subsequent lack of government revenues (for lack of manufacturing that generated more real revenues).

Some government-connected special interests dislike these natural, free market changes and are looking for ways to enforce more consumerism and legislate more fee hikes and regulations against healthy, productive activities (small building, manufacturing, etc.) while projecting their socialist tendencies on their enemy (American consumers unable to spare more money for non-essential purchases).

Too bad. We’re steeped in government and consumer debt, unwilling to legalize real production enough everywhere to allow new, small operations for new ingenuity (building, manufacturing, etc.). That’s the way of current paradigm, and it’s not being directed from the bottom. It’s being directed from the middle and the top (the more influential constituents and constituent groups) with concerns for extinct property values and concerns against new competition.


20 posted on 03/22/2014 4:38:52 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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