A Post-Labor Economics Manifesto

Post-Labor Economics Theory Overview

Introduction to the Book and Collaboration

• The speaker introduces their work on post-labor economics theory, mentioning collaboration with Julia McCoy.

• The working title of the book is "The Great Decoupling," which will explore various economic concepts.

Policy Proposals in Post-Labor Economics

• The speaker outlines 11 policy proposals aimed at reshaping economic structures.

Proposal 1: Subsidiarity

• Advocates for decentralizing power to create more efficient markets, referencing historical improvements in nutrition and local economies after the Roman Empire's collapse.

Proposal 2: Radical Transparency

• Emphasizes that democratization of information leads to better market efficiency and reduces exploitation through information asymmetry.

Proposal 3: Socialization of Private Risk

• Critiques corporate welfare policies like "too big to fail," arguing they socialize risk while individuals bear the consequences.

Proposal 4: Information Asymmetry as Market Failure

• Argues for public access to non-classified information, suggesting that transparency should apply equally to corporations and politicians.

Proposal 5: Local Ownership Maximizes Efficiency

• Suggests that local ownership enhances efficiency without advocating for state ownership; private ownership is preferred.

Further Proposals on Economic Structures

Proposal 6: Minimize Intermediaries

• Recommends reducing intermediaries between value creation and capture, citing personal experiences with platforms like YouTube and Patreon.

Proposal 7: Competitive Economic Power

• Warns against regulatory capture, asserting no entity should become too large or powerful enough to escape market forces.

Proposal 8: Align Incentives with Outcomes

• Stresses that decision-makers must face direct consequences of their actions rather than externalizing risks onto others.

Proposal 9: Decentralize Power by Default

• Highlights the need for systems designed to prevent natural concentration of power within organizations or entities.

Automation and Infrastructure

Proposal 10: Prioritize Automation of Human Labor

• Controversially argues for reducing human involvement in labor processes to maximize productivity, suggesting changes in licensing laws for professions like medicine and law.

Proposal 11: Build Decentralized Infrastructure

• Calls for establishing legal frameworks, regulatory structures, and technology necessary for decentralized systems.

Understanding the Social Contract

• Discusses how society has been organized around a three-way relationship between business, labor, and government over the last century.

Historical Context of Embedded Liberalism

Neoliberalism and Economic Agency

The Shift to Neoliberalism

• Neoliberalism emerged around 1980, characterized by a shift in power dynamics, transferring authority from labor to business and government.

• There is a noted "revolving door" relationship between business and government officials, with speculation about potential changes under Donald Trump's administration.

Concerns About Job Security

• Many individuals express anxiety over job loss and financial stability, questioning how they will make ends meet without work.

• Despite rising GDP projections (10x or 100x growth), the benefits have not trickled down to the general populace, highlighting failures of trickle-down economics.

Understanding Economic Agency

• Economic agency refers to an individual's ability to influence their economic status; it can exist independently of traditional employment.

• Key criteria for measuring economic agency include:

• Time Sovereignty: The balance between free time and work commitments.

• Financial Authority: Control over personal finances and influence on economic policies.

Measuring Economic Agency

• Knowledge access is crucial as it empowers individuals economically.

• Community power diminishes as federal systems strengthen, emphasizing the importance of local governance.

• Mobility freedom encompasses both physical movement and socioeconomic mobility through employment opportunities.

Bargaining Power Dynamics

• Bargaining power includes collective action capabilities such as union representation and voting influence on policy changes.

Principles of Neoliberalism

Core Tenets of Neoliberal Policy

• Neoliberalism promotes market primacy, advocating for bringing non-market elements into market frameworks.

Neoliberalism: Key Principles and Impacts

Privatization of Public Goods

• The principle of privatization emphasizes the need for proper incentive structures, suggesting that services must be profitable to function effectively.

• While many public services have been privatized, such as healthcare in America, there remains debate over the extent to which this should occur.

Globalization and Corporate Power

• Globalization facilitates multinational conglomerates like Walmart and Disney, leading to economies of scale but also potential inefficiencies.

• The rise of corporate hegemony is noted as a mixed blessing within globalization's framework.

Labor Power and Union Dynamics

• Neoliberalism disrupts the social contract by minimizing labor power through union busting and right-to-work laws, stemming from historical tensions in the 70s and 80s.

• Recent strikes, such as those by dock workers seeking higher wages while resisting automation, illustrate ongoing struggles between labor rights and economic pressures.

Market Creation and Consumerism

• Neoliberalism promotes the idea that everything can be commodified; platforms like OnlyFans exemplify this trend where personal dignity is tied to financial means.

• The shift towards individual responsibility reflects neoliberal doctrine, emphasizing consumer-driven economic growth models over collective welfare.

Property Rights and Economic Agency

• Protecting property rights—including intellectual property—is prioritized under neoliberalism to incentivize capital accumulation across various sectors.

• Price discovery through market competition is essential for resource allocation but may not apply effectively to infrastructure-heavy industries like healthcare.

Taxation and Employment Policies

• Neoliberal policies advocate for reduced taxes on corporations, arguing that they are engines of productivity deserving breaks—often termed "corporate welfare."

Understanding Neoliberalism and Post-Labor Economics

The Impact of Neoliberal Policies on Employment and Wages

• Inflation is often controlled at the expense of employment, indicating a deliberate erosion of the social contract in favor of big business.

• Neoliberalism promotes flexible labor markets, making it easier for employees to change jobs and for companies to terminate workers, emphasizing labor mobility as beneficial.

• Despite increased productivity since 1980, real wages have not kept pace, highlighting a disconnect caused by prioritizing corporate interests over worker compensation.

Criteria for Post-Labor Economic Solutions

• Proposed post-labor economics must increase GDP more than neoliberalism; nations will avoid policies that harm economic growth due to geopolitical risks.

• Establishment elites must still profit from new systems; any changes should align with their interests to gain acceptance.

• Solutions need to be measurable and incremental rather than radical or rapid changes that could lead to negative outcomes.

Benefits of Post-Labor Economic Theory

• The proposed principles aim to rectify market inefficiencies created by neoliberalism while empowering both the economy and individuals.

• By increasing market efficiencies, post-labor economics can potentially boost GDP beyond what neoliberal policies achieved.

• The approach allows elites like Elon Musk to continue profiting while fostering competition by reducing monopolistic practices.

Implementation Strategy

• All proposals are designed to be measurable and incremental, allowing for gradual testing at various governmental levels without drastic policy shifts.