Someone once told me I am always captured by the last book I
have read.
 |
| Paul Mason |
There is some truth in this. I also can’t resist ordering
books I have heard reviewed on National Radio that capture my interest. One
such book was Paul Mason’s ‘Post capitalism – a Guide to Our Future ‘- the
author was interviewed by Kim Hill.
The ideas in the book certainly have impressed me and all I
will be able to do will share, best I can, some of his ideas. I really enjoyed the
historical development of the relationship between labour and power and, in
particular, the dramatic rise of socialism and capitalism.
Well worth a read. It was referenced by speakers at the
recent NZ Labour Party Conference which I recently attended.
The book is premised by the belief that ‘for the developed
world the best of capitalism is behind us, and for the rest it will be over in
our lifetime’.
‘What started in 2008 as an economic crisis morphed into a
social crisis, leading to mass unrest’. There are two ways it can end. In the
first scenario, the global elite clings on’ but with stagnating
 |
| Escaping the neo liberal box |
growth and
growing inequality.
In the second scenario, as ordinary people refuse to pay the
price, a variant of what happened in 1930s could emerge.
In both scenarios, the serious impact of climate change, demographic aging, mass migration and growing debt will combine to create chaos
by 2050.
Mason proposes an
alternative, we ditch neo -liberalism; then we save the planet – and rescue
ourselves from inequality – by moving beyond capitalism. There is a growing
consensus as to how you do it: suppress high finance, reverse austerity, invest
in green energy and promote high waged work. But, as Greece found out, any
government that defies austerity will clash with the global institutions that
protect the 1%..
The route to a new future beyond capitalism has been created by technology (
just as the printing press provided the impetus to create the Renaissance). Modern technology, through automation, has
reduced the need for labour to produce goods. Secondly information technology corrodes the markets
ability form prices correctly - - consider the ease of downloading music from
the internet. Thirdly there is the rise of collaborative production –
Wikipedia, the biggest information product in the world is free as is the rise
the ‘creative commons’.
 |
| Networked world |
'A networked world', Mason believes ‘offers an escape route’ and this ‘must be driven by a change in our thinking about technology, ownership and work itself’.
‘In the old socialist project the state takes over the
market, runs it in favour of the poor instead of the rich, then moves key areas
of production out of the market and into a planned economy’. This has been
tried but it hasn’t worked.
The state’s future role is to create the framework for change. ‘The new information technology has created
a new agent for change; the educated and connected human being. Revolutions in
highly complex information driven society will look very different from the
revolutions of the 20th century.’
The challenge of the future is between the availability of
free and abundant goods (with minimal labour input) and a system of
monopolies, banks and governments trying to keep things private, scarce and
commercial. ‘Everything comes down to the struggle between the network and the
hierarchy, between old forms of society molded around capitalism and new forms
of society that prefigure what comes next’.
The power elites and the financial institutions have a lot
at stake. The idea of TINA (there is no alternative) is now under attack. ‘Millions
of people are beginning to realize they’ve been sold a dream that they can
never live’. There is no ‘trickle down’; growing inequalities are a feature of capitalist societies
In his book Mason writes that in the decades
after WW2 prosperity was the result of state ownership and
control. It was an era that resulted in technological changes and the spreading
of best practices. This came to a halt with the oil shocks of the 70s and with
President Nixon removing the gold standard for the dollar.
This was the beginning of neo-liberalism – Thatcher, Reagan
and in New Zealand ‘Rogernomics resulting in the dis empowerment of worker
unions and the rise of business elites and corporate domination.
Mason’s book is premised on the concept of cycles of
political change in power structures; neo-liberalism is coming to end.
It is Mason's belief that the new information technology, rather
than creating a new and stable form of capitalism, is dissolving it; corroding
market mechanisms, eroding property rights and destroying the old relationships
between wages, work and profit.
 |
| Recommends Mason's book |
More radically it is leading us
towards a post capitalist economy; a move as great as when the financial
merchant families replaced the power of the feudal monarchs' ; a change that will
redefine the nature of work itself as automation takes effect.
This automation will
result in making human labour largely redundant resulting, for many, more free time than work time leading to the problem of what to do with the millions of people
whose jobs are automated? In this process work will lose its centrality as part of a person’s
identity. Networked individuals will increasing become a power for change.
Transitions are always hard to understand as the plot of
Downton
 |
| Changing times in an earlier era |
Abbey illustrates. The question is how will humans have to change in
order for post capitalism to emerge?
Four time bombs Mason writes will create the press for change – all are
interrelated an all will require dramatic action.
 |
| Peace talks 1939 |
The first is climate change – the result of ‘free market’
capitalist economic growth -primarily caused by the use of carbon fossil fuels to fuel
economic growth. Strong positive action focusing on renewable energy will help
but, as Mason writes, ‘more and more the climate talks…come to resemble the
peace treaties that paved the way for the Second World War’.
 |
| The aging problem |
The second time bomb is the demographic problem of aging, potentially as big a threat as climate change but with a more immediate
economic impact. Fewer and fewer workers
will be available to pay pensions and the care of an aging population. This is an irreversible change
added to by falling birth rates.
The demands of
spending on pensions, health and care will create devastating problems of
public debt.
The fourth time bomb is the impact of mass migration
resulting from poverty. Mason predicts that we have not seen anything compared to what is to come. 'Either poor countries will become richer
or poor people will migrate to richer countries.’
Notwithstanding all these problems, even following the GFC
of 2008, the ‘financial aristocracy is determined to go on living as if the
threats outlined above are not real,’ believing that market forces will solve
all problems. Those in power will do whatever they can to avoid real
transformational change that requires the end of neo-liberalism and the
development of a post capitalistic world. The illusions, bred over the last twenty-five
years, feed our paralysis – the illusion that everything is
going to be OK.
This false sense of security, echoing the feelings prior to
the outbreak of World War Two, will eventually require dramatic action.
Only states and states acting together can organize positive actions –
responding to the challenges that lie ahead will require more state ownership
and will require more planning than anybody currently expects..
Mason’s book provides an antidote to despair. For all the
rhetoric about free markets, the capitalist system will not provide any answers
and, rather, will contribute the problems..
The theme of Mason’s book is that technology is developing a
world that requires fewer workers and introduces the idea of a transition to a
world without work driven by information technology able to produce goods
almost for free; a challenge to profit orientated capitalism. In the future people will be
involved in providing services beyond the market – for example free information
through Wikipedia or the creative commons.
In his final chapter Mason outlines what a post capitalist
society might involve. He calls it Project Zero as its aims are a zero- carbon
energy systems; the productions of machines, products and services with zero
marginal costs; and the reduction of labour time as close as possible to zero.
This is not about returning to deadening state control but rather will require a state foresight and guidance rather than command and
control; networks rather than hierarchies.
Mason outlines five
principles.
 |
| The 1 % |
Test all proposals on a small scale before attempting them
on a larger scale.
Design transitions to ecological sustainability, responding
to problems as they emerge.
This transition will not be just about economics but will require the emergence of new kinds of people that will be created created by the growth of networked
communities. The growing cohorts of networked citizens will have different
perceptions from their parents or grandparents.
The fourth principle will be to attack all problems from all
angles. The rise of networked
citizens allows them to organise meaningful spontaneous actions as powerful
agents of change beyond the control of governments, political parties and corporations.
New forms of democracy will need to evolve allowing solutions to be found
through a mix of small scale
experiments that, if shown successful, can be scaled up through top down
action.
The fifth principal for a successful transition is to
maximize the power of information. Already aggregated data about our lives is
available too often controlled by governments or corporations.
There will be a need to
create democratic control over aggregated information to prevent its misuse by states and corporations. Once information has been 'socialised' it will have the
power to amplify the results of collective action by mapping problems and
providing immediate assistance.
In Mason’s scenario decision making is decentralised; the
structures needed to deliver it emerge
during the delivery; targets evolve in
response to real-time information – and all actions should e modelled through
simulations tools before enacted for real. ‘The best method is for small groups
to pick a task, work on it for a bit, document what they’ve done and move on.’
Top level aims of a post capitalist project would be:
Rapidly reduce carbon emissions -work towards sustainability
Stabilize and socialize the finance system to take into
account problems of aging, climate change and debt.
Deliver high levels of material prosperity and well-being by
facing up to inequalities in society.
Gear technology towards the reduction of necessary work –
eventually work becomes voluntary with the rapid transition towards an
automated society.
Such changes will require a ‘new spirit’ – a new attitude to
replace the current misplaced faith in ‘market forces’ which is unable to solve current
problems.
Mason’s solutions provide his best guesses and is open to be
changed by the wisdom of others.
‘The most challenging arena for action is the state; we need
to think positively about its role in the transition to post capitalism.’
‘The
state has to see itself as one of nurturing new economic forms to the point
where they take off.’ Currently the state, under neo-liberalism, has been
deregulated to allow marketization, corporatisation and privatisation in such
areas as education and health. ‘The state has to reshape markets to favour
sustainable, collaborative and socially just outcomes. ’Local energy systems
could be incentivised and infrastructures developed to allow local innovation. The
state has to ‘own’ the agenda for responses to the challenges of climate
change, demographic aging, energy security and migration’.
Governments will have to do something clear and progressive about
debts – in countries that are unable to repay debts they could be written off.
Collaborative business models need to be fostered. The tax
system needs to be reshaped to reward the creation of non-profits and
collaborative productions.
Large
corporations need to be controlled by regulation. This might sound harsh but
similar restrictions outlawed slavery and child labour despite protests of
factory bosses and plantation owners.
 |
| New minds required |
Monopolies to be be outlawed. ‘For twenty
five years’, Mason writes, ‘ the public sector has been forced to outsize and
break itself into pieces; now would come the turn of such monopolies such as
Apple and Google’.
‘Public ownership delivered in the past huge social benefits
and in the post capitalist society it would deliver that and more.’
Public
provision of water, energy, housing, transport, telecoms infrastructure and
education would feel like a revolution as these have been privatised under
‘market forces’ for the benefit of a few.
'A mix of government encouraged initiatives and highly
regulated corporations would create the framework of the next economic
system, not its substance.’ ‘There is no reason to abolish markets by diktat,
as long as you abolish the basic power imbalances that the term ‘free market’
disguises.’ Innovation and creatitivity would be rewarded. Patents and intellectual
property rights would be designed to taper away. State funded research should
be free and shared.
‘The only sector where it is imperative to suppress market
forces completely is wholesale energy. To meet climate change with urgent
action the state should take ownership and control of the energy distribution
grid, plus all big carbon suppliers of energy. Renewable sources of energy need to be subsidized. Mason believes in' decentralizing and allowing local communities to keep the
efficiency gains they make’.
 |
| The neo-liberal position |
The next big piece of social technology would be focused on the financial system. Central nationalized banks should have sustainability
targets. Other banks would need to be restructured to reward innovation and to
be penalised for speculative rent seeking loans.
The biggest structural change to make post capitalism possible is to establish a state guaranteed universal basic income.
The purpose of a basic income is to formalize the separation of work and wages and to subsidize the transition to a shorter working week, or day, or life.
The idea is simple: everybody of working age gets an
unconditional basic income from the state funded by taxation, and this replaces
the unemployment benefit. Other forms of need-based
welfare would still exist topping up the basic income.
This move would radically accelerate technological progress.
One study states that 47% of all jobs in an advanced economy will be redundant
due to automation – this would result in an enormous unemployment problem. A
basic income paid out of taxes gives people a chance to build a life in a non
–market economy allowing individuals to involve themselves in work or non-work
activities.
.
The fiscal cost for this would be high costing, according to
UK figures, twice the current welfare bill.. This would be affordable if
current tax exemptions were abolished combined with cost saving changes to
other public spending.
‘Under this system there would be no stigma attached to not
working. The universal basic income would be an antidote
to the low paying service jobs that capitalism has created over the past
twenty-five years that pay little and demean the worker.
‘As we pursue these goals, a general pattern is likely to
emerge; the transition to post capitalism is going to be driven by surprise
discoveries made by groups of people working in teams’. ‘This is not going to
be a controlled process. The most valuable thing that networks can do ( and
individuals within them) is to disrupt everything above.’
Asking what is the end state is not the wrong question
according to Mason. Post capitalism is a ‘beginning state’.
As the reproduction
cost of labour shrinks dramatically the employment problems that have defined
human history will shrink or disappear. ‘So instead of looking for an end
state, it’s more important to ask how we might ... escape a
dead end.’
We are entering an era when the labour that is necessary to
sustain life falls and free time grows – where the division between work and
free time is blurred.
Mason concludes his book writing, ‘we are at a moment of
possibility; of a controlled transition beyond the free market, beyond carbon,
beyond compulsory work.What happens to the state? It probably gets less
powerful over time- and in the end its
function are assumed by society.’
‘What happens to the 1%?
Their ideology tells them their
uniqueness has made them successful but their success depends on a
plentiful supply of cheap labour and repressed democracy – where inequality is
rising. 'To live in a world so separate, dominated by the myth of uniqueness but
in reality so uniform, constantly worrying you’re going to lose it all, is- I
am not kidding, tough.’
‘But there is good news. The 99% are coming to the rescue.
Post capitalism will set you free.’
Not an easy book to summarise. Best you read it for yourself
“Instead of coming immediately to the teacher, we want students to
experiment on their own. Many of us wonder why students constantly do the
opposite instead. I've got news for you. It's our fault. We, as educators, are
often responsible for learned helplessness, and we have a responsibility to
change it! How can we empower our students to be self-directed learners?”
“The Global Search for Education consistently focuses on how to
better prepare students for the21st century — an age which will be all about
innovating and building. Today, we’ve invited education expert Tony Wagner and
entrepreneur and filmmaker Ted Dintersmith to imagine the school of the
future.”
“It is not a
matter of teachers becoming superhuman and overcoming all horrible conditions
and indignities trying to succeed in doing what is virtually impossible,
especially in a sustained way. The students need their teachers to stay engaged
and fight for them. When the conditions of teaching are bad, the conditions of
learning tend to be worse, and children suffer in lasting ways. That's why the
collateral damage of burned-out teachers is burned-up children.”
Teaching By
Doing Something Meaningful
“There are many, including myself, who
believe we are now entering a new age of creativity- some even call it a
'second Renaissance'. If this is so then many of our current organisations,
with their genesis in an industrial age, will need dramatic transformation, as
will, more importantly our mindsets. We will need new minds for a new
millennium.We will need to create networks of creative schools so as to to be
in the forefront of such exciting changes. To achieve this schools, and their
communities, need to stop and think about what is required of education in such
exciting and very unpredictable times. Traditional education just won't do.”
