Monopolies & the Human Condition
“When monopolies succeed, the people fail …”, Henry Demarest Lloyd wrote in March 1881, denouncing the practices of Rockefeller’s Standard Oil. Almost a century later, John Kenneth Galbraith warned of the dangers of blindly having faith in our capital market system and the organizations and institutions that support it.
“The greater danger is in the subordination of belief to the needs of the modern industrial system … These are that technology is always good; that economic growth is always good; that firms must always expand; that consumption of goods is the principal source of happiness; that idleness is wicked; and that nothing should interfere with the priority we accord to technology, growth, and increased consumption.” —The Atlantic 1967-06-01
Both Demarest Lloyd and Galbraith saw the flaws in the capitalist system, especially the tendency to think of people as mere replaceable human capital. In 1994, Peter Drucker discussed the rise of the knowledge worker, a term Drucker coined in 1959. This had the potential to shift the focus of our production systems from capital to labour. But Drucker saw that the shift to a society of knowledge workers would not be easy, as we are still struggling with it today.
“It is also the first society in which not everybody does the same work, as was the case when the huge majority were farmers or, as seemed likely only forty or fifty years ago, were going to be machine operators.
This is far more than a social change. It is a change in the human condition.” —The Atlantic 1994-11-01
Today, we deal with some of the same struggles against monopolies as Demarest Lloyd, but we are several billion more people, facing climate change and environmental degradation. At the same time, our democracies are under attack from the abuse of surveillance technologies by corporations and governments.
The political tide is shifting to embrace tribalism. The change in the human condition identified by Drucker requires new thinking and putting new models in practice. Our existing institutions do not offer these. Our markets, especially our labour markets, are not designed for this change in the human condition. Automation, coupled with non-routine work as the norm, fundamentally changes our concepts of labour and earning a living.
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