Robots, capitalism, and socialism

Abstract

Would recent technological breakthroughs transform modern capitalism, and make socialism a viable alternative in the 21st century? To answer this question, I first analyze the direction of causality between innovation and institutional change on a broader scale. Many experts view major advances in robotics and artificial intelligence as inexorable. Therefore, these inevitable innovations will compel the current social institutions to adapt and will shape our future. In contrast, according to mainstream economics, social institutions shape the path of technical change by creating and shielding incentives for innovation. In this study, I propose a theory of social change that reconciles these two opposite views. Based on this theory, I endeavor to answer whether socialism would emerge as a potential alternative to capitalism as technology and capitalism continue to reshape each other.