AI as Capitalism’s Final Crisis

 

The Terminal Contradictions

AI as Capitalism’s Final Crisis

Artificial intelligence amplifies capitalism’s core contradictions by pushing the fictitious commodification of social life and creativity to its limits. Building on Polanyi, AI platforms convert previously uncommodified spheres—such as creative expression, micro-interactions, and even affective labor—into datafied, monetizable assets. As generative models mimic and monetize social relations and creativity, the boundaries of what can be sold are effaced, resulting in heightened alienation and the dissolution of authentic human exchange in favor of extractive platforms.​

Simultaneously, when applied at scale, AI transforms the cost structure of entire industries. With the marginal cost of producing software, digital content, and design services approaching zero, the profit logic on which capitalism depends evaporates. The price mechanism, which allocates resources under scarcity, is rendered obsolete in AI-mediated post-scarcity contexts. Sectors that once relied on labor as the source of value and social mediation are hollowed out. This trend accelerates Marx’s “tendency of the rate of profit to fall”—as labor is eliminated, surplus value disappears, and capital loses its valorization process.​

Ultimately, AI exposes the fiction of market universality: when everything becomes a good and the cost of production collapses, neither prices nor profit can coordinate or justify ongoing accumulation. This brings the capitalist system to a terminal impasse, requiring not reform, but a foundational social overhaul.


Foundational Pillars of a Post-Capitalist Model

Core Principle

Departure from Capitalism

Basis in Economic Thought

Decommodification of Basic Necessities

Ensures universal access regardless of market participation; directly negates fictitious commodification of life.

Universal Basic Services (UBS), Eco-Socialists

The Commons as Default Infrastructure

Replaces profit-motivated ownership with shared resource governance; solves market allocation’s redundancy post-scarcity.

Elinor Ostrom, Commons Theory

Participatory, Plural Value Metrics

Multidimensional contribution replaces profit as the organizing principle; revitalizes purpose after price collapse.

Participatory Economics (Albert & Hahnel), Polanyi


Institutional & Operational Blueprint

The Resource & Production System

A dual model, “The Circular Commons,” allocates essentials through a state-backed Universal Basic Services (UBS) framework: all have access to food, shelter, health, information, and education as unconditional rights. Surplus and specialized goods are provided via collaboratively managed, AI-driven open platforms where communities—rather than markets or traditional firms—steer resource flow and innovation. AI automates logistics, distribution, and production, optimizing for accessibility, sustainability, and circularity instead of profit.

The Meaning & Governance System

Purpose and belonging are structured through “Multiform Contribution Tracking” systems that recognize care, creativity, and civic engagement as core social values. A network of deliberative citizen assemblies, selected by sortition, sets norms, priorities, and oversees resource distribution. AI supports, but does not supplant, participatory deliberation, ensuring transparency, plural voice measurement, and adaptive feedback mechanisms. Social standing and access to collaborative projects derive from demonstrated engagement across recognized domains, not labor-market competition or accumulation.


The Post-Scarcity Social Contract:

A Draft Constitution for a Post-Capitalist Commonwealth (Circa 2045)

Preamble

We, inheritors of an era that saw every facet of life commodified and the edifice of market logic brought low by its own technologies, affirm the necessity of a new social covenant. The spread of artificial intelligence rendered obsolete the core mechanisms of capitalism—price, profit, and wage—while exposing the alienation and insecurity at its heart. We therefore, in recognition of the abundance created and the collective creativity of humanity, establish this Commonwealth to guarantee dignity, flourishing, and participation for all.

Article 1: Fundamental Guarantees

All residents are entitled, as inviolable rights:

  • To the unconditional provision of basic necessities, including sustenance, shelter, healthcare, education, and information access.
  • To contribute meaningfully to society through creativity, care, and civic engagement, with such plurality of effort recognized as valuable.
  • To direct participation in deliberative governance, ensuring all voices shape the collective future.

Article 2: Economic Architecture

The production, allocation, and stewardship of essential goods and services shall be managed through a universal framework of public guarantees. The abundance generated by artificial intelligence shall be administered through democratic, commons-based institutions, optimizing for equitable access, sustainability, and circular feedback. Surplus goods and innovation beyond necessity shall be organized through peer-managed, open-source platforms, continually adapted to common needs.

Article 3: Civic Architecture

Societal purpose and oversight shall be vested in assemblies constituted by sortition, ensuring representative deliberation without monopolization by expert or elite classes. Recognition and rewards for social contribution shall stem from transparent, pluralistic systems capturing a diversity of engagements—caregiving, creative pursuit, knowledge-making, and civic participation—guaranteeing both autonomy and social connection. All governance processes shall remain open, adaptive, and responsive to the evolving values of the Commonwealth.

Comments