My unpopular idea for today is going to shock some of my fans, for I’m arguing that capitalism may have its limits, that whatever its merits, seemingly bad long term outcomes are still possible. Specifically, I’ll explain why I think market forces doom my own industry and most creative professional fields. What we create is increasingly 100% digital. Software, literature, news, music, movies and indeed all sorts of artistic endeavor are headed for an entirely digital future. But at the same time, the march of technology means it is becoming virtually free to make copies of digital works. 100% digital media cost nothing to reproduce, which reduces the perceived value. When we paid for entertainment, news, computer applications and other information in the past, we mostly thought we were purchasing the medium, the physical book, magazine or disc which cost something to make. Cheap computers and digital content mean zero variable costs plus low fixed and entry costs. So most intellectual pursuits are headed toward a digital future with much lower rewards.
Q. It is clear to me that you are onto something. I mean, a future with free music and movies sounds dreadful, not to mention all the poor starving software engineers. Whatever shall we do?
A. What is needed are wise elite thinkers such as myself, who can step in and set things right. People with compassion for the underdog, liberal humanitarians with the best interests of all mankind (and of course womankind too) at heart, those with a keen understanding of the problems and how we can fix them through benign government administration and incentives. Yea, an entirely new and thoroughly modern dictatorship of the proletariat (with a few humble administrators like myself).
Q. Great idea! Why didn’t I think of that?
A. Such things are best left to intellectuals. Fortunately, I am here to serve, wisely advancing the interests of all you little people.
Q. And how should we address your excellency?
A. Wise Helpful Operator Of Public Systems. WHOOPS for short.
As you probably guessed, I will not argue we should scrap capitalism. While I see some possibly bad consequences that capitalism has in store for people, it is still a far better system that any alternative I know. For one thing, you may not share my values so and so a future constructed in my best interests probably would not be in your best interests. But even if our interests align, never forget that power corrupts and that absolute power corrupts absolutely. Give anyone enough power, even someone as obviously kind, thoughtful and fair as myself, and you are in deep trouble. Put anyone in charge of the economy, no matter how intelligent and well meaning, and they will inevitably if unconsciously squander a good portion of your wealth.
What I will argue is that market forces are working to lessen the value of at least some creative pursuits. It is possible to predict things heading down that road, but it is probably impossible to predict whether we will reach some new equilibrium before we reach the the apparent destination. Economic dictatorship cannot help us, but possible future changes in public values and opinions might eventually restore some economic power to creators of digital content. Along the way, I will also describe how some anti-piracy software works and explain why it does not work very well.
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