WORLD ECONOMIC JOURNAL
PHOTO : CHRISTINNE MUSCHI / BLOOMBERG VIA GETTY IMAGES
The stock market valuation of the leading players , such as GAFAM , reflects a near-monopolistic position , relying more on computer power than human effort . Humans are increasingly valued more as consumers than producers , which could lead to significant challenges as the value of labour diminishes .
This situation echoes Sismondi ’ s early 19th-century theory . A historian and political economist , Sismondi warned against the dangers of unchecked industrialism , noting the disappearance of certain types of work and their replacement by machines . He proposed that anyone permanently displaced by machines should receive a lifelong pension .
Capitalism has already largely triumphed . We are now entering an era of hypercapitalism , where social and fiscal systems may become unsustainable if labour remuneration continues to decline .
What measures should be taken to mitigate this risk ? We must regulate companies and ensure they pay taxes to restore balance to the tax system . Additionally , following Sismondi ’ s logic , we could consider requiring these companies to contribute to social security .
What kind of relationship have GA- FAM companies established with the US government concerning AI investments ? Historically , US capitalism was built on free competition , with easy market entry and exit , and a focus on combating monopolies . Today , however , the opposite is true . Old principles have been abandoned , and monopolies are thriving . The problem is that these monopolies self-reinforce . Their valuation relies on the belief that they will continue to uphold their dominance , having the necessary resources to achieve their goals .
Moreover , the US government strongly supports privately-led technological development . The belief that government influence is waning might be true for Europe but not for the United States . Without US government backing , Elon Musk would not have achieved his current success .
The Great Depression , as a crisis of capitalism , led to a world war . If technological progress ends up stifling humanity , we could face an era of immense violence . In the short term , what concerns me is that governments no longer act strategically ; they primarily accommodate market demands .
Without US government backing , Elon Musk would not have achieved his current success
Furthermore , in the US , there is virtually no social safety net , and labour is viewed as an externality . For instance , Amazon has ordered 750,000 robots . The share of labour in GDP is decreasing in favour of capital income .
China , on the other hand , follows a different approach , aiming for overperformance , such as by increasing the population ’ s IQ levels .
Will global competitiveness increasingly rely on automation ? Yes . French President François Mitterrand observed in 1995 , « the 21st century will be characterised by a struggle to the death , but without deaths , between China and the USA .» This competition will be driven by automation and AI .
How can this technology-driven future be socially accepted ? All scenarios are possible . If hypercapitalism continues to impoverish people , major social conflicts are inevitable . People will resist having their lives « deterritorialised ,» or dissolved into an intangible sphere that allows some to exploit others without any protective geographic framework .
Do you foresee social unrest erupting even before geo-strategic conflicts , such as in Taiwan ? I am more concerned about social and civil unrest than anything else . Consider what might happen in the USA if Trump wins the election ...
Could new , virtuous economic and social models emerge ? How can we envision a stable world when productivity gains are monopolised by global corporations that wield more power than governments , and the erosion of purchasing power is constrained solely by the necessity to sustain the next purchase ?
To navigate this new world , governments must now conceive systems of social and fiscal solidarity . For example , Europe faces the challenge of integrating an ageing population . Automation should not equate to reduced social contributions . Governments should consider taxing machines , as Sismondi suggested . Do we have to wait for a revolution to bring this about ?
This interview also appeared in French language in Hors Normes , a syndication partner of World Economic Journal
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