
What if capitalism is engineering its own demise? Jeremy Rifkin's provocative thesis shows how near-zero marginal costs could create a post-capitalist era where goods become virtually free. Discussed at Google Talks, this economic paradox is reshaping how we view scarcity itself.
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Picture the moment when music became virtually free. Not through piracy alone, but through a fundamental shift in how we create, share, and consume. One day you're buying CDs for $15 each; the next, Spotify offers 70 million songs for the cost of a single album per month-or nothing at all. This wasn't just disruption. It was a preview of something far more profound: an economic transformation that's now spreading from pixels to power plants, from software to solar panels, from digital files to physical manufacturing. We're witnessing the early tremors of capitalism's most fundamental contradiction-the relentless drive for efficiency that's pushing the cost of production toward zero, threatening the very profit mechanism that sustains the system. When it costs nearly nothing to produce one more unit of almost anything, what happens to an economy built on scarcity and exchange? Here's the uncomfortable truth: capitalism is extraordinarily good at making itself obsolete. Every business seeks competitive advantage through efficiency and productivity gains, driving down the marginal cost-what it costs to produce one additional unit after covering fixed expenses. This race to the bottom has always existed, but something unprecedented is happening. Technology is pushing marginal costs so close to zero that entire industries can no longer sustain traditional profit models. The pattern emerged clearly in information goods. Once you've written software, recorded music, or created a digital course, reproducing it costs virtually nothing. A single server can deliver the same content to one person or one million with negligible difference in cost.
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