Digital Destruction : Dawn of Ex-proletarian Revolution
at the Horizon of Digital Collision
e-mail: emre@emrecivelek.com
April 8, 2010
I do not want to raise an ominous prophecy about the future but so as to digest what is the dynamics of internet age we should revolutionize our understanding of the upcoming change factors. In order to see the relationship between changing business processes and economic depression arising recently we should relinquish the current Newtonian –Cartesian paradigm in favor of chaos theory. In consideration of this challenge I derive fresh conceptions in the scope of this article such as ‘Digital Destruction’ and ‘Ex-proletarian Revolution’. Furthermore the eminent concept upon these mentioned ones is ‘Ex-proletarian Revolution’ which is defining inevitable collapse of capitalism.
Unprecedented effectiveness that we can observe in all line of business cause the unemployment rate to increase. Companies can not leave the effectiveness competition but can forget about human! This was the real paradox. The effective and efficient business systems cause excess production owing to computer power rather than man power! But the missing variable is the influence of the consumers in this freak equation. Decreasing purchasing power of the consumers is to be a positive function of unemployment rate. Digitalization is increasing the effectiveness of the production processes by getting rid of employees consequently cause the unemployment rate to increase and also cause the purchasing power of the consumers to decrease. This is an uneven equation. In the future more jobs will be temporary and chronic unemployment will increase. The companies that suffered from the recession to make drastic organizational changes for greater efficiency and flexibility. Digitalization and automation will increase. Robots and computer systems will take over labor force when employees fired. Therefore, if the authorities insist on current model, this time, social and political stability shall be disturbed for the sake of effectiveness. As the inevitable consequence of this vicious circle, worsening working conditions will grow a new class consist of chronic unemployees. We call this new class as ‘Ex-proletariat’ that will prompt a new revolution named as ‘Ex-proletarian Revolution’. So as to apprehend this revolution we should scrutinize the term of digital destruction in depth by comparing this term with the term of creative destruction.
Creative destruction is a term from the Schumpeterian economic framework suggested by Joseph A. Schumpeter in 1939. It means that innovation based technologic developments cause current paradigm to shift and destroy the old industries. Creative destruction essentially promotes continious development in society. Conversely, digital destruction is an inauspicious concept with regard to creative destruction. Digital destruction means that e-driven unemployment destroy social structure and cause imbalance income distribution.
Creative destruction process is the essential fact about capitalism and denotes gradual and incremental development in capitalist economic system. But contrary to expectations digitalization and automation in all business processes cause capitalist economic system to collapse. Robots and automated business systems invade and overrun all the offices around the world. Under these circumstances we have unprecedented level of effectiveness. On the other hand we have unprecedented level of unemployment. This is the main reason to collapse the capitalist economic system. Insolvable unemployment problem are to be a sign of imminent social movements. Creative destruction denotes improvement for social system that the capitalism rested on but in direct contradiction digital destruction directly destroys social structure. Digital Destruction is the inevitable consequence of digitalization in all business systems.
As a matter of fact, it is my hope that the ideas contained in this article will change the way you look at the economic situation in our future ulta-digitalized world. I do not want to provoke a new ideology but I tried to bring out the austerity of the situation and imminent social movements of Ex-proletarian revolution.
Unprecedented effectiveness that we can observe in all line of business cause the unemployment rate to increase. Companies can not leave the effectiveness competition but can forget about human! This was the real paradox. The effective and efficient business systems cause excess production owing to computer power rather than man power! But the missing variable is the influence of the consumers in this freak equation. Decreasing purchasing power of the consumers is to be a positive function of unemployment rate. Digitalization is increasing the effectiveness of the production processes by getting rid of employees consequently cause the unemployment rate to increase and also cause the purchasing power of the consumers to decrease. This is an uneven equation. In the future more jobs will be temporary and chronic unemployment will increase. The companies that suffered from the recession to make drastic organizational changes for greater efficiency and flexibility. Digitalization and automation will increase. Robots and computer systems will take over labor force when employees fired. Therefore, if the authorities insist on current model, this time, social and political stability shall be disturbed for the sake of effectiveness. As the inevitable consequence of this vicious circle, worsening working conditions will grow a new class consist of chronic unemployees. We call this new class as ‘Ex-proletariat’ that will prompt a new revolution named as ‘Ex-proletarian Revolution’. So as to apprehend this revolution we should scrutinize the term of digital destruction in depth by comparing this term with the term of creative destruction.
Creative destruction is a term from the Schumpeterian economic framework suggested by Joseph A. Schumpeter in 1939. It means that innovation based technologic developments cause current paradigm to shift and destroy the old industries. Creative destruction essentially promotes continious development in society. Conversely, digital destruction is an inauspicious concept with regard to creative destruction. Digital destruction means that e-driven unemployment destroy social structure and cause imbalance income distribution.
Creative destruction process is the essential fact about capitalism and denotes gradual and incremental development in capitalist economic system. But contrary to expectations digitalization and automation in all business processes cause capitalist economic system to collapse. Robots and automated business systems invade and overrun all the offices around the world. Under these circumstances we have unprecedented level of effectiveness. On the other hand we have unprecedented level of unemployment. This is the main reason to collapse the capitalist economic system. Insolvable unemployment problem are to be a sign of imminent social movements. Creative destruction denotes improvement for social system that the capitalism rested on but in direct contradiction digital destruction directly destroys social structure. Digital Destruction is the inevitable consequence of digitalization in all business systems.
As a matter of fact, it is my hope that the ideas contained in this article will change the way you look at the economic situation in our future ulta-digitalized world. I do not want to provoke a new ideology but I tried to bring out the austerity of the situation and imminent social movements of Ex-proletarian revolution.
