Will capitalism survive ‘value abundance’?

by Christopher Paul on March 4, 2012

From Aljazeera:

The problem is this: internet collaboration has enabled the creation of use value in a way that totally bypasses the normal functioning of our economic system. Normally, increases in productivity are somehow rewarded, and these rewards enable consumers to derive an income and buy products.

But this is no longer happening. Facebook and Google users create commercial value for their platforms, but only very indirectly. And they are not at all rewarded for their own value creation. Since what they are creating is not what is commodified on the market for scarce goods, these value creators do not receive income. Social media platforms are exposing an important fault line in our economic system.

Michel Bauwens writes a very intelligent and look at how social media is (or can) disrupt capitalism. Crowdfunding only shifts the money around. It doesn’t eliminate it. Money normally allocated to the development of an idea will be used elsewhere. The system becomes more efficient but it doesn’t go away. So I have no worries. Capitalism won’t die because of an over abundance of ideas.

(Via Readability)

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