The Economic Possibilities of Technological Progress: Business Restructuring and the Labor Market in the 21st Century

The extraordinary technological progress in recent decades rekindles the questions raised by John M. Keynes in Economic Possibilities for Our Grandchildren, especially about its emancipatory potential. Economic development has rendered work almost irrelevant for social reproduction and wealth generation in the 21st century, by reducing its necessity to produce our existence. It has also made human emancipation possible, expanding freedom and leisure time, creating room for a good life – as Keynes had envisioned through the lens of the ancient Greeks – rich in love, friendship, beauty, and the pursuit of truth. However, overcoming the economic problem seems distant politically. This paper discusses two central issues. The first is the corporate restructuring that has taken place in recent decades, characterized by de-conglomeration and rentism, which has shaped a new international division of labor. Under the logic of “shareholder value”, large corporations have focused on their core business, reduced their productive investments, and prioritized the financial appreciation of their stocks and dividend distribution. Technological monopolization and its private appropriation have led to material abundance for only a small portion of the wealthy and their associates, driven by consumerism and waste, especially in affluent countries. The second issue is related to the impact of the development of productive forces on the rich countries’ labor markets, leading to the exclusion of increasingly larger segments of the population, subject to structural unemployment and deteriorating living conditions. In a neoliberal political order, technological advancement has pushed growing portions of the population into serving the wealthy, the only remaining activity that expands job opportunities while exacerbating social inequality.