Ending of Capitalism and The Lost Middle Class
11/17/2018 Matsudo TMC
Capitalism is going to end in the near future.
Capitalism used to be a system that the investors can get profit from exploiting the labors who used the facilities.
For example, in the spinning industry, investors prepared the weaving machines to the laborer so that the laborers could produce fabric.
In the printing industry, it was the investors that provided the rotary press machine to the laborers.
To be honest, there was a good relationship between the investors and the laborers in the secondary industry.
In the world economy nowadays, however, the manufacture industry has reached the saturation point. People have started to avoid mass production and mass consumption, gradually shifted to the minimum lifestyle.
As a result, mass consumption has decreased day by day, and our society was ready to change from the secondary industry to the third industry.
In the meanwhile, some intellectuals claim that the Japanese should become entrepreneurs or get side businesses, but general workers cannot do it with ease.
Entrepreneurs need ability to create new business from scratch, and it is not an easy task for the laborers.
Actually, it is to create a new thing “1” from zero . It is different from their jobs which succeeded in creating “2” or “3 out of “1.”
That is to say, all of the Japanese people are requested to undergo “paradigm shift”.
Some of the intellectuals said, “To survive in the business, make your own platform.”
For instance, Google has made a platform, its search engine, and Facebook produced SNS, Social Networking Service.
And now, they are running in the frontline in the Internet industry.
Please look at the table in the paper. Many of the higher ranker in 1992 are already out, while Amazon and Apple are listed higher in terms of the asset value of 2016.
Now, IT -related corporations have become profitable.
However, it was so hard to survive among modern enterprises. The profit is decreased because of copying and competitive discount.
That is to say, we can call it, “Limitation of Cost Zero Society.”
As for Japan, a couple of years ago ,”RAKUTEN” was a prodigy of Internet industry but now their prosperity will be getting worse rather than before.
The reasons can be not only the rising of Amazon but also the endless price battle royal among other shopping sites as the theory of ” limitation of Cost Zero Society.”
So not only RAKUTEN but also above higher ranking companies chose to monopolize the market to take advantage of their name value and their fame by hiring many efficient employees.
Eventually, the value of highly capable human resources is raised as compared with the past.
Nowadays, the laborers’ value has become bipolarized: many companies try to keep the efficient employees, but the laborers, as belonging to the company’s capital, are enforced to work under strict conditions.
This bipolarization was caused by the meritocracy adopted on the world scale. It clarified the relationship between the workload and the salary.
In short, the system of how to invest money has become clear.
I think that the bipolarization is the cause of the lost economic middle class worldwide.
As a conclusion, we should reform the system to decentralize the wealth, Right Now!
In my opinion, for example, we should impose tax on the company if it adopted AIs for reducing the hiring costs. In this way, the profits can be returned to our society.
Thank you for your kind attention.