Macroscope | The clash between man and machine is capitalism’s ultimate challenge

Ever wondered why so many tech billionaires are reaching for the stars with dreams of settling on Mars? Even acclaimed cosmologist Stephen Hawking reckons we only have 100 years left on Earth before Doomsday descends. Something is going badly wrong on our planet and it is not just climate change, pollution and destruction of our ecosystem which threaten our very survival.

We are becoming too successful for our own good, with the pace of technological progress so rapid, humanity risks being left behind. As machines take over from man, it is a massive problem for our world, with its current population of 7.6 billion heading for 11 billion by 2100 according to United Nations’ estimates. The growing conflict between man and machine poses capitalism’s ultimate challenge. If our world leaders fail to solve the mounting productivity-employment gap, the human race is in peril.

There is no doubting the digital age is full of potential, offering fabulous rewards for mankind. Automation, robotics, artificial intelligence, social media and algorithm-run market mechanisms have brought untold benefits for economic growth, global prosperity and personal leisure that we are only just beginning to understand. It is the dawning of a new age propelling the human race into an exciting era of innovation and achievement. But it brings its own inherent risks.

It is not the sensationalist threat of killer bots running amok and taking over the world in some latter day incarnation of an Arnold Schwarzenegger’s Terminator movie. It is the more subtle trend towards automation and mechanisation which is driving workers out of jobs as businesses invest in more cost-effective plants and machinery to boost productivity, improve competitiveness and reap bigger profits.

When algorithms and robots put people out of work it is no good for growth if it concentrates the rewards in fewer hands and society is left worse off, with a growing army of disaffected unemployed. It is fine if capital-intensive, productivity-driven growth boosts employment, raises prosperity and benefits society as a whole. But the growing disparity in work opportunities, the widening wealth gap and deepening social divisions put all our futures at risk.

Fulfilling faster growth, better job creation and keeping the masses happy at all times should be the Holy Grail for world leaders. Without it, the risks of economic discontent, social disorder and political upheaval loom large. It is a problem being felt the world over right now, especially as the global economy struggles to get back into better shape after the 2008 financial crash.