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| Photo by Landiva Weber |
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| Photo by Landiva Weber |
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| Photo by fauxels: https://www.pexels.com/photo/multi-cultural-people-3184419/ |
We live in what are described as post-capitalism times where the economic system that
promotes the virtues of creating individual wealth has been variously described as broken,
defunct and even failed. It has, according to many morphed into a system, where the
oligarchs control the resources required to make immense wealth and leave the rest tofend for themselves and fight over scrap. Some go to the extent of romanticising
the concept of a welfare state where basic worries like food, shelter and education are
assured for all by the state.
It is acknowledged, however, that wealth creating economic activity is the path to generating enough resources to afford that kind of nanny state where one is looked after from the cradle to the grave, but one is not certain that unbridled capitalism is the way to do that. The looming spectre of AI replacing human labour as a factor of production has further added to the chorus denouncing capitalism as a dehumanising and even sinister force hell-bent upon lining the coffers of already very rich oligarchs and their cronies. With the failed experiments of communism as a cautionary tale about the danger of going in completely the opposite direction with regard to harnessing the resources of a nation for the greater good of its people, one is left at a crossroads, when it comes to choosing an economic system that keeps everyone happy.
To the credit of capitalism, the immense wealth and the generally high standard of living found in Western Europe, North America and elsewhere are the result of following unbridled capitalism. The bastion of communism, the Soviet Union and its allies in East Europe collapsed under the weight of their own contradictions. Fellow communist nation China was walking down the same course of self-destruction, until it changed course in the late 1970s and adopted capitalism lock, stock and barrel, heralding an unprecedented era of growth and wealth increase for the average Chinese.
Similarly in India, hundreds of millions of its people came out of extreme poverty for the first ever time on the back of big ticket reforms carried out in the 1990s that opened up the Indian economy to the world allowing it to finally step on the gas pedal, when it came to achieving fast paced economic growth.
As a matter of fact, wherever capitalism has been allowed to strike deep roots, it has transformed the economies and destinies of the people concerned. The most definitive proof of this lies in nations across the South East Asian region, especially in places like Singapore,Hong Kong and Taiwan. It is also true of other nations in the region like Malaysia, Thailand and even communist Vietnam.
Capitalism is a far from perfect system of bringing about economic growth and suffers from myriad ills that are well known and documented. These range from colonialism in the past and inequitable distribution of wealth to exploitation of peoples and environmental degradation in the present times.
Yet, it is the only system that has delivered. From lifting nations and peoples out of poverty to the funding and financing of education, healthcare, infrastructure, discoveries and inventions, there is much that has been the gift of capitalism to the world.
Does capitalism have a future?
Does the only system of economic growth and development which has been adopted to varying degrees by 70 to 80% of the world’s population have a future? One would imagine that it does.
Where capitalism went wrong was in the part where it allowed the profit motive to quite often disregard the moral and ethical bedrock that should define any model of economic enterprise. While it is similar to communism in that human follies that corrupt the system led to its assumed fall of grace, capitalism is not a basically untenable system like the latter is.
The ills of capitalism include the primary one of allowing certain groups to prosper at the cost of others which alienates the former leading to much resentment on their part. Often the ones who fall behind are the ones whose parents and grandparents had prospered under the capitalist system - the same system that was now promoting the rise of a new elite that possess the skills now in demand. The obvious case in point is the rise in demand for technology workers at the cost of traditional blue collar workers. This has led to the rise of right wing ultra nationalist governments across the world who pander to the fears of such people by putting in place protectionist trade policies that impede global trade and do more harm to the capitalist system, in turn exacerbating the problems of the very people who claim to have been left behind in the economic sweepstakes.
Currently, there is a tendency for nations of the world to enter into separate trade agreements with nations or blocs of nations, rather than continue within the existing global trade order which served the world so well in the years following the Second World War, right up to the present times. These populist measures ultimately don’t lead to any tenable solutions to what many, especially left leaning people believe are inherent flaws in capitalism. Whatever its flaws, reverting to failed communist and socialist economic models is undoubtedly worse than the temporary protectionist policies put in place by right wing demagogues.
The thing with capitalism is that it is anything, but a static process. If large numbers of people feel ill served by the existing trade arrangements of the world, there will be a reaction against it with old certainties being discarded and new ones inexorably taking their place. Right now the capitalist way of doing things is undergoing a flux, but it will find its new balance, like it always does.
The age of AI is changing the way that economic activity will take place in the times ahead with the nature of human labour as an important growth factor undergoing a profound change. There will be both immense challenges and equally immense opportunities presented to the nations of the world as it walks further down the path; yet it will undoubtedly be the capitalist way of doing things that will shine a light on the path ahead. For that has been the way of humans since the earliest times. It has always been capitalist trade carried out between nations and civilizations of the world that has shaped human destiny and will continue to do so.
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Indians aged 60 and above need not contemplate a life of inactivity and declining economic opportunity as the twilight years begin to stretch ahead of them. To those who have just turned 60, a time when they are at their professional prime, and still physically capable of doing everything they did from when they were in their twenties right till the present time, the decades ahead might appear quite disconcerting.
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| Photo by Andrea Piacquadio |
The all-consuming tidal wave of AI has impacted more professions than what one usually believes. Things like writing and coding are low-hanging fruit, which the AI juggernaut has apparently swallowed effortlessly, while other professions are on notice. From teachers and healthcare professionals to cab drivers and an increasingly large number of blue-collar workers, apparently, more and more working men and women fear for their jobs.
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| Photo by Antoni Shkraba Studio |
The time has come for one to seriously study the impact of AI on consumer behaviour in all its entirety. This is something which has been happening since much earlier than the much publicized launch and promotion of generative AI and has been exercising the minds of social scientists, marketers and indeed common people for a few years now.
The fact that we receive suggestions to buy goods and services in our social media feeds, as if somebody is cued into our thought process has caused anxiety amongst many for a few years now, as it seems to subvert free will itself.
Everything from e-commerce companies and social media platforms to streaming services deploys AI powered algorithms to get a handle on consumers’ buying and browsing behaviour. This makes it possible for them to come up with bespoke product and service offerings, in the process leading to supposedly optimal shopping experiences resulting in enhanced consumer loyalty.
The concern with AI powered product and service recommendations is centered around the fact that these may lead to a subversion of the traditional way of arriving at consumption decisions. Instead of subliminally guiding consumers to decisions that best suit their interests, these may instead lead them to believe that the interests of businesses selling them products and services align with theirs.
With AI expected to become fully autonomous in the not so distant future, are we paying any attention to what kind of products and services it might decide to promote to unsuspecting and gullible consumers? Is there any guarantee that these will be in the best human interest? What if autonomous AI decides that serving the best human interests is not in its own best interest? Maybe that won't happen, but shouldn't we be guarding against such a possibility?
On the other hand businesses marketing their products and services have access to a surfeit of critical information collected by cutting edge tools that not only provide vital insights about their interests and needs, but also their vulnerabilities. Might they not exploit these and emotionally manipulate their consumers into making purchase decisions that are not in their best interests?
It is nobody’s case that AI be not used as an immensely enabling technology to further a business’s marketing prospects. What is instead required is to ensure that ethical AI be made non-negotiable for any entity seeking to use it to more efficiently market its offerings.
Businesses have to be made to mandatorily adhere to a code of ethics that ensures that they never indulge in any kind of unfair practices including discrimination, disrespect for consumer rights or any form of deception. The bottom line is that legal and moral standards are adhered to at any cost. There can be no scope for bias ,breach of trust of a compromise of confidential consumer information.
It is contingent upon marketers to use AI tools of companies that adhere to the highest ethical standards. Building an ethical eco system for the deployment of AI in digital marketing has to be absolutely sacrosanct.
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| Photo by Lina Kivaka: https://www.pexels.com/photo/woman-reading-book-to-toddler-1741231/ |
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| Photo by AS Photography: https://www.pexels.com/photo/documents-on-wooden-surface-95916/ |