Allen Scott_A_World_in_Emergence

Toward a New Economy: Technology, Labor, Globalization

Evolution of Capitalism

• Capitalism undergoes continuous evolutionary changes:

  • Relatively stable regimes with dominant sectors and technologies may exist, but they are always succeeded by new structures.

  • 19th Century: Factory and workshop systems allowed varied outputs but limited in scale.

  • 20th Century: Keynesian-Fordist era utilized automated assembly lines for mass production, reducing variety.

  • 21st Century: Global competition enhances economies of scale with increased product variety.

Schumpeter's Vision

• Schumpeter's analysis predicted continuous capital intensification and industrial concentration.

  • He argued that market coordination would shift towards oligopoly and monopoly, requiring government intervention.

  • Nationalization of industries seen as an inevitable outcome of capitalism dynamics.

• Historical context shows Schumpeter’s views were not manifested as he anticipated.

Transition from Fordism to Postfordism

• By the late 1970s, political shifts in Britain and the U.S. initiated a new era of conservative regulation to tackle 1970s crises.

  • Counter-cyclical policies from the past didn't hold under the new regime.

• Thatcher-Reagan Era:

  • Cutbacks in welfare and labor union strength; resurgence of market forces in a globalized context.

  • Emergence of digital technologies began reshaping production and labor divisions.

Distinct Features of Fordism

• Fordism characterized by routinization, repetition, and standardization aimed at minimizing costs.

  • High productivity from assembly lines, but inflexibility restricts output variation.

  • Some industries utilized flexible methods, contradicting rigid Fordist frameworks.

Rise of Lean Production

• Influence of early lean production and flexible specialization emerged by the late 1960s.

  • Neofordism: High scale production coupled with flexibility and product variety.

  • Japanese adoption of neofordism deepened Fordism's crisis in the West.

Emerging Flexible Specialization

• Flexible specialization revitalizes elements of 19th-century craft production, particularly through computerization.

  • More adaptable production units arise, catering to niche markets with high-quality outputs.

  • Growth of flexible labor markets facilitated by the erosion of labor unions, leading to more part-time and temporary roles.

Economic Inequality

• Income disparities increase, with the upper labor segment benefiting significantly compared to declining wages in production and service jobs.

  • Piketty and Saez highlight growing inequality, showcasing CEO compensation skyrocketing compared to average wages.

Emergence of Cognitive-Cultural Economy

• New labor divisions arise with cognitive and cultural labor gaining prominence.

  • Digital technologies facilitate the displacement of routine work and enhance roles requiring creativity and interpersonal skills.

  • Upper labor tier: Well-paid, qualified cognitive workers driven by personal talents in less regimented environments.

Employment Trends and Labor Dynamics

• Analysis of professional vs. production vs. service labor in the U.S. demonstrates dramatic shifts.

  • Professional occupations grow despite economic downturns; production workers diminishing rapidly.

  • Low-wage service worker numbers rise slowly, demonstrating resilience against automation.

The Cultural Economy

• Cultural industries showing rapid growth globally, with varying local expressions.

  • Cultural outputs: Includes film, music, and design industries gaining critical importance and penetrating global markets.

Globalization of Capitalism

• Historical trajectory of globalization from the 19th century peaks, influenced by the 20th-century upheavals.

• Post-Cold War era sees resurgence in global trade, leading to unprecedented interconnectedness of capitalist systems.

• Uneven economic and social developments noticeable in emerging markets alongside traditional powers.

Conclusion

• The cognitive-cultural economy indicates a shift towards higher symbolic value and consumer goods flexibility.

• Capitalism’s new configuration points to both opportunities for growth and challenges, especially regarding regulatory shifts at national and global levels.