Image for The end of capitalism has begun

The red flags and marching songs of Syriza during the Greek crisis, plus the expectation that the banks would be nationalised, revived briefly a 20th-century dream: the forced destruction of the market from above. For much of the 20th century this was how the left conceived the first stage of an economy beyond capitalism.

The force would be applied by the working class, either at the ballot box or on the barricades. The lever would be the state. The opportunity would come through frequent episodes of economic collapse.

Instead over the past 25 years it has been the left’s project that has collapsed. The market destroyed the plan; individualism replaced collectivism and solidarity; the hugely expanded workforce of the world looks like a “proletariat”, but no longer thinks or behaves as it once did.

If you lived through all this, and disliked capitalism, it was traumatic. But in the process technology has created a new route out, which the remnants of the old left – and all other forces influenced by it – have either to embrace or die. Capitalism, it turns out, will not be abolished by forced-march techniques. It will be abolished by creating something more dynamic that exists, at first, almost unseen within the old system, but which will break through, reshaping the economy around new values and behaviours. I call this postcapitalism.

As with the end of feudalism 500 years ago, capitalism’s replacement by postcapitalism will be accelerated by external shocks and shaped by the emergence of a new kind of human being.

And it has started.

Postcapitalism is possible because of three major changes information technology has brought about in the past 25 years. First, it has reduced the need for work, blurred the edges between work and free time and loosened the relationship between work and wages. The coming wave of automation, currently stalled because our social infrastructure cannot bear the consequences, will hugely diminish the amount of work needed – not just to subsist but to provide a decent life for all.

Second, information is corroding the market’s ability to form prices correctly. That is because markets are based on scarcity while information is abundant. The system’s defence mechanism is to form monopolies – the giant tech companies – on a scale not seen in the past 200 years, yet they cannot last. By building business models and share valuations based on the capture and privatisation of all socially produced information, such firms are constructing a fragile corporate edifice at odds with the most basic need of humanity, which is to use ideas freely.

Third, we’re seeing the spontaneous rise of collaborative production: goods, services and organisations are appearing that no longer respond to the dictates of the market and the managerial hierarchy. The biggest information product in the world – Wikipedia – is made by volunteers for free, abolishing the encyclopedia business and depriving the advertising industry of an estimated $3bn a year in revenue.

Almost unnoticed, in the niches and hollows of the market system, whole swaths of economic life are beginning to move to a different rhythm. Parallel currencies, time banks, cooperatives and self-managed spaces have proliferated, barely noticed by the economics profession, and often as a direct result of the shattering of the old structures in the post-2008 crisis.

You only find this new economy if you look hard for it. In Greece …

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• Ben Cannon in Comments: There is little mention in the full article of land and resources. The debate on information is already over, aside from new innovations, which can easily be hacked, or intellectual property ignored or loopholed, and most scientists are happy just to have the resources to continue working. All other information is already essentially free, although sifting for quality has become more of a task. The battles to be fought will be over land and resources, diminishing both due to non-renewability of some and increased population. The ruling classes, both the bourgeois upper class and the petite-bourgeois share and property owning middle class will have to decide how to balance their personal safety with their share of physical wealth. Look for the places with the widest gap between economic classes and you’ll also see the places with the highest rates of violence. Any role employment plays is either as a means to attaining physical wealth or the psychological benefits of a meaningful occupation. As the article reiterated, the second is becoming rare, but the first is also increasingly an empty promise as we move further into a feudal arrangement. The battle lines are already being drawn for the next world war, maybe the only hope we have is the collapse of the capitalist economy, which would hopefully drag the military machine down with it. Although this wouldn’t necessarily follow; soldiers were bribed with land in the ancient world, I’m sure it can be done again.