Fully Automated Luxury Communism

1. The Third Disruption: A New Era of Technological Change

The Third Disruption – now in its opening decades – is still to be contested, and its consequences remain uncertain.

Technological revolution. The Third Disruption, following the agricultural and industrial revolutions, is characterized by exponential progress in digital technologies, renewable energy, and biotechnology. This era is marked by the potential for extreme abundance in information, labor, and resources.

Historical context. Like previous disruptions, the Third Disruption is reshaping social, economic, and political structures. However, it is unfolding more rapidly than its predecessors, driven by:

• Moore's Law in computing
• The experience curve in renewable energy
• Breakthroughs in biotechnology and gene editing

Uncertain outcomes. The consequences of this disruption are not predetermined. The technologies driving change could lead to either unprecedented prosperity or exacerbate existing inequalities, depending on how they are implemented and governed.

2. Extreme Supply: The End of Scarcity in Information, Labor, and Resources

Information wants to be free.

Abundance paradigm. The Third Disruption is characterized by a shift towards extreme supply in key areas:

• Information: Near-zero marginal cost of digital reproduction
• Labor: Automation and AI replacing human workers
• Energy: Renewable sources providing cheap, abundant power
• Resources: Potential for off-world mining and synthetic materials

Economic implications. This abundance challenges fundamental assumptions of capitalism:

• Scarcity as the basis of economic value
• The price mechanism for resource allocation
• The necessity of human labor for production

Societal impact. The potential for extreme supply offers the possibility of overcoming longstanding human challenges, including poverty, resource conflicts, and environmental degradation. However, it also raises questions about the distribution of abundance and the purpose of human activity in a post-scarcity world.

3. The Five Crises: Challenges Facing Modern Society

Ours is a finite world marked by constraints.

Interconnected challenges. The author identifies five major crises facing contemporary society:

1. Climate change and global warming
2. Resource scarcity
3. Surplus populations and technological unemployment
4. Societal aging
5. Growing inequality

Systemic threats. These crises are not isolated problems but interconnected challenges that threaten the stability of current economic and social systems. They represent the limits of the existing capitalist model and its ability to address global issues.

Catalyst for change. The author argues that these crises, while daunting, also create the conditions for radical transformation. They necessitate new approaches to economics, governance, and social organization that align with the possibilities of the Third Disruption.

4. Fully Automated Luxury Communism (FALC): A Vision for the Future

FALC is not the communism of the early twentieth century, nor will it be delivered by storming the Winter Palace.

Post-scarcity vision. Fully Automated Luxury Communism (FALC) is presented as a political and economic framework suited to the conditions of the Third Disruption. Key features include:

• Automation of labor
• Abundance of resources and energy
• Universal access to goods and services
• Democratic control of production

Distinct from historical communism. FALC differs from 20th-century communist experiments:

• Based on abundance rather than scarcity
• Enabled by advanced technologies
• Aims for individual freedom and fulfillment

Political project. The author argues that FALC is not an inevitable outcome of technological progress but requires active political engagement to shape the future. It represents a starting point for reimagining society in light of new technological possibilities.

5. Universal Basic Services: A New Social Contract

UBS is not solely a response to crises whose emergence is relatively recent, but also the means by which citizens can enjoy fuller lives, accessing the resources necessary to be who they want.

Expanded public goods. Universal Basic Services (UBS) is proposed as an alternative to both current welfare systems and Universal Basic Income. It would provide free access to essential services:

• Housing
• Transportation
• Education
• Healthcare
• Information and communication

Beyond commodification. UBS aims to decommodify essential aspects of life, treating them as rights rather than market goods. This approach is seen as more efficient and equitable than market-based provision or cash transfers.

Implementing UBS. The author suggests a gradual implementation of UBS, starting with areas where technology is already driving down costs (e.g., transportation, information). This would be coupled with democratic control and worker ownership of service provision.

6. Beyond GDP: Redefining Progress and Success

GDP measures everything, in short, except that which makes life worthwhile.

Limitations of GDP. Gross Domestic Product (GDP) is criticized as an inadequate measure of societal progress, especially in the context of the Third Disruption. Issues include:

• Failure to capture non-market value creation
• Neglect of environmental and social costs
• Inability to measure quality of life and well-being

Abundance Index. The author proposes a new measure of progress that accounts for:

• CO2 emissions and environmental impact
• Energy efficiency and renewable adoption
• Delivery of Universal Basic Services
• Leisure time and self-reported happiness
• Health outcomes and lifespan

Paradigm shift. Moving beyond GDP represents a fundamental change in how societies define and pursue progress. It aligns economic measurement with the goals of sustainability, well-being, and human flourishing.

7. The Path Forward: Breaking with Neoliberalism

Burn neoliberalism, not people.

Immediate actions. The transition to FALC requires concrete steps to break with neoliberal policies:

• End privatization and outsourcing
• Implement municipal protectionism and local economic development
• Create a network of public and cooperative banks
• Introduce Universal Basic Services
• Rapidly transition to renewable energy

Democratic control. These measures aim to shift economic power from private corporations to democratic institutions and worker-owned enterprises. This includes:

• Reforming central banks to prioritize social goals
• Expanding public ownership of key industries
• Fostering local and cooperative economic development

Long-term vision. While addressing immediate challenges, these steps are framed as part of a longer-term transition to a post-scarcity society. The author emphasizes the need for both pragmatic reforms and a clear vision of a radically different future.

Last updated: January 24, 2025