Technology, capitalism, and the social contract

Capitalism is intimately bound up with technology. Societies change through advances in technology, and technology sets the boundaries for what is possible within work organisations and social institutions. Debates about the direction of capitalism emerge periodically following the introduction and uptake of new technologies (Harcourt, 2014). The most recent candidate for generating discussion about the future of capitalism is digital technology, which includes artificial intelligence, machine learning, algorithms, and the internet of things (Brynjolfsson & McAfee, 2014). Digital technology has been placed at the heart of ‘the fourth industrial revolution’ (Schwab, 2017). The capacity for these technologies to alter how organisations and employees work together and with it, capitalism itself, has generated a burgeoning and disparate literature. Two broad competing narratives have emerged. First, some scholars have predicted an intensification and entrenchment of capitalism. Scholars in the labour process tradition (e.g., Kellogg et al., 2020; Thompson & Briken, 2017) have highlighted how key elements of digital technology have shifted far greater control towards the employer in the employment relationship, leading to increasing exploitation of certain groups of workers and less influence and ownership by individuals. For example, digital technology can provide, through the use of monitors or tags or sensors, the ability to track employees and bring heightened predictability and control of employees, bringing about what has been terms variously as “datafication of employment” (O'Neil, 2016), or the “digitalisation of the worker” (Warhurst & Hunt, 2019). The complexity of new technology can also entail that employees become passive users of it, rather than being active in its development and roll out, leading to their deskilling (Bader & Kaiser, 2019; Russell, 2012). A second theme is that digital technology has led to a “tipping point” in capitalism (Thompson, 2019). There are two distinct aspects to this. The first concerns the possibility for new technology to reshape traditional ways of working. For example, research on “cognitive capitalism” (Hardt & Negri, 2001) has argued that technological innovation will dramatically drive down the costs of production, and knowledge will spread widely, to such an extent that capitalism will no longer be an effective economic approach, and a new social order of collaborative networks will develop, which will be characterised by greater democracy and emancipation. The second tipping point is “post-work”. New technology raises the possibilities of greater automation and with it the likelihood of increasing unemployment. As unemployment increases, this will have a strong negative effect on consumption by individuals. Given the foundational nature of consumption for capitalism, this turn would mark a “crisis” for capitalism (Hughes & Southern, 2019). Common to both themes is a recognition that the traditional social contract is changing. The social contract is an implicit agreement among the members of a society to cooperate for social benefits, Traditional social contracts have been characterised as a set of relations between the state, capital, and labour (Fisher, 2010). Until now, for most jurisdictions, the social contract has been negotiated to provide a large workforce of full-time employees, relatively secure jobs, wage growth in line with productivity, and shared risk taking between employer and employee, (Manyika et al., 2020). However, the rise of digital technology has gone hand-in-hand with the increasing globalisation of major organisations making for a greater mobility of capital and a lessening of state and labour influence (Weil, 2017). Recent movements such as “conscious capitalism” (Mackay & Sisodia, 2014), and the “purposeful organisation” (Mayer, 2018) have been influential, and the concept of “inclusive capitalism” has been advocated by the Bank of England (2018). Within these initiatives is an implicit imperative to treat workers as more than economic assets but as social beings. There is a turn towards looking at the future of capitalism not merely from an economic point of view but also an ethical one. The central principle of such approaches in the notion of “reciprocal obligation”, rather than pure economic growth, as the basis for a cooperative world, sustainable society. In this article, we draw on these ideas and draw out implications for the social contract from the increasing use of digital technology. We look first at the particular consequences of digital technology for the employment relationship. We then turn to the consequences for capitalism and identify three particular narratives: in entrenching of capitalism, amendments to capitalism, and post-capitalism. Our aim is to focus on current uses of digital technology and changes that are already present in the workplace and rely on empirical evidence rather than develop speculative ideas about large-scale economic and social change. We conclude with some reflection on ethics and trust. Within capitalist society, technology is a mechanism intended to increase the generation of capital primarily through increasing automation and more rapid execution and delivery of products and services (Smith, 2019; Thompson & O'Doherty, 2013). For Marx, technology and society are the two forces of social production, with technology providing the force of production and society providing social relations (Marx, 1847/1955; 1978). This perspective highlights the embedded nature of technology within the capitalist process, rather than technology being a neutral, rational mechanism that is somehow apolitical. (Fisher, 2010). Schumpeter (1942) identified technology as a principal means of creative destruction. Creative destruction, which Schumpeter (1942) considered ‘the essential fact about capitalism’, refers to the waves of innovation on both products and processes that disrupt and replace existing practices. Both Marx and Schumpeter believed that capitalism could not be sustained. For Marx, capitalism will reach a crisis brought about by overaccumulation, a crisis characterised by intensified exploitation of workers, a large increase in routine work, and the dramatic fall in the costs of production. A new social order, based on collaborative social principles, would be the inevitable result. For Schumpeter, there is a limit ultimately to total output and creative destruction will be unable to break through this. This will lead to a stagnation of the market and the end of capitalism (Yun, 2015). Both Marx and Schumpeter argue for the emancipatory significance of the dissolution of capitalism and the promise of a new social order (Adler, 1990, 2001). More recently, other economists have highlighted the transformational capacities of new technology. For example, Rifkin (2011) and Piketty (2014) both predicted the decline of the labour force, rising inequalities between elite skilled workers and the vast majority who will be unemployed, and a completely changed working week. Their solution is a with the development of a society based on and not capitalist for the social contract to be have in to the increasing of digital technology. The notion of the social contract has a in and and more in the work of such as and there is between of social contract in the a is that the social contract is as a mechanism to of and social within a In economic of social the state is at the heart of social contract et al., contracts the set of between the state and other key et al., among are capital and society by a strong social between capital and labour within the of a strong to labour in the of and of labour to by its most for a social and providing capital with labour for production and consumption to increasing of The state from both groups by an state, which capitalism from both and an and at the a between labour and the of providing social services and in (Fisher, economic is a social contract and how are to within the what their and how the is to be market the both and on a social contract that is to of is to for the of boundaries between industrial or innovation is and of between and to for strong (Thompson, 2019). there to be in the perspective that there between key economic within or boundaries in the (Thompson, The effect of digital technology on the social contract has been a major in risk taking from capital towards For example, the have to greater for their economic have from this for a of the changes are and a of in (Manyika et al., A of has been to the social focus on the to greater and social and not economic growth and also to inequalities of economic and social In the we some of the consequences of digital technology for the employment relationship. In this we certain aspects of digital technology which for the social More we and work and Traditional of the employment have on the which highlights two broad the and the in the and with the with and and who are to be et al., 2012). in the have with the with less and are working on a or a provide the with both the of workers the at and also in the of by The is to to through the of the by use of work that is in Recent research has that with increasing use of digital technology, are more on a of employment A major of this has been the development of the & 2017). et al., Digital technology has been a major for this as can be in the following the of labour for between or digital that between and on a and by et al., to this of workers in the between and recent the growth of the in the has to an about of the total workforce and the recent rise of work as the of a process which will in traditional of employment In some this as of the that this of work can workers both to and to and to about The identify are rather workers can be as by the that through digital have to or for and can be or have their for their with no for or workers are from and the of a workplace the for employees to to for or more on organisations have on (Weil, 2017). The of workers is that as control of their work, and have of the that are to & research on the of workers organisations the of the workers and other such as greater possibilities of and and the of on their the has about how the social contract be with about and & it is that a large of workers are employees who are other work to their The of in the highlights that of workers have and looking to is a of and not on pure or A recent that in on contracts such key aspects as or and some of this not be to the introduction of new technology example, and also among other a of have that the rise of digital technology the that are et al., 2014). Recent research (e.g., et al., highlights that the of work are greater than to Digital technology has led to an intensification of work, to and the to more in a than New work is also by digital technology, as it and which not and to be and In the technology can have on existing work, which be for of workers in the workers the who are by technological have and for some with new technology at work has and is their ability to work et (2011) that digital technologies more to and are more than to to use technology, it is who most from their greater technology use can the for There is also a a less than employees being it that in the at and also more of and greater in the making the more to and more their use of technology. intensification is also heightened by the rise of who are that track and and in some and from that 2017). This of also can in workers the and control of to work et al., 2020). of the of digital technology is its ability to provide more for A of is to which the and in the work and in the to be in it & has been considered for increasing for example, it is a central in the & and in such as the of and is also a key in & & digital technology, workers less on routine and and focus on more working and with to et al., The introduction of digital technology has also been as a force to and that is in traditional and that and increase (Fisher, 2010). However, digital technology also Digital technology, as can increase the of employment and in particular increase the and of have this with digital technology providing the means to and of for employees in their in not be within routine but also to skilled (Thompson, 2019). Kellogg et highlighted two key within the workplace that limit and In the to workers based on the of the by the of in The the of to workers to influence has a negative on For example, includes a of the new being to work This increasing production and and as as to with other However, it also workers on the no longer about how to their production workers to be of this being and that their less we have about how workers digital technology and its technology is also a and the of its and et al., 2019). The has the and of their and how the can their and et al., as we is and its is with and of about the use of the technology and the it will have in the et al., 2019). of technology about the of and that the technology has et al., A recent of & that are about the of technology to society it is but been through a in the workplace on technology believed would have a effect on society. In research et al., we have with within the working a of and The aim of the to of the work of the and how of their work and the placed As about their of the process of and we their of how and with and to In the the of the and for and that have of and the of the of the However, it that also an ethical which in processes and For example, have the it is to change and a it on of that ethical the is that to ethical from traditional such as and the of is characterised by and which the of We that the between and ethical As with the of a making but considered the implications of their on by of the complexity of their work, and the in what the consequences it that no use to The that there be a of or rational of a be in such a This can we the two major and the nature of these and the of with which to more We with these and ethical about their and to the that the and of their We certain consequences of digital technology for the employment and how this influence the nature of capitalism. More we three the entrenchment of capitalism, the of capitalism, and to capitalism. first it as and of are which have the effect of entrenching traditional of capitalism. The between employer and to have shifted towards the greater control workers and increasing inequalities The rise of digital technology has been most in the of organisations such as and The of economic within these organisations has led to a new of The rise of such major organisations has the of capitalism, or a of and social As have based and then social networks within production initiatives such as not of the the capitalist Digital technology has also the rise of has been the central in capitalist (Thompson, 2014). has been as increasing of and in the of the and its both at the and In to the rise of in the organisations have also become more in and as a to This a from on production capitalism to capitalism. As there is a of in which making through rather than through and This to the of capital market from is by digital and also has consequences for the social For example, Thompson a capitalist and between employer in the work and employment an imperative to assets that will There is an increasing towards the major costs of the in the of and in labour and (Thompson, 2019). This that organisations will increase control the workforce and in will changes to the and up the of the with their and in the of capitalism to the nature of digital it is to that capitalism is digital and capitalism, but at the capitalism, capitalism, capitalism The of these of capitalism would also to be considered in of the nature of capitalism. the possibilities of increasing between capital and a of themes in the ways in which capitalism to the digital and the social We look at these from two the and at the a possible is for to workers as active or technology that focus on what and employees already bring to work, and on what to their work For example, the introduction of to at an with been as from the that the to with on This the of the and about the change and the there some to the most the to with the also benefits, on and greater and of with New technology in the workplace is most to of work and their workers are and by about its are and have to about how the changes are working This point is by the et al., that employees be and about the or development of new technological and the that what is is an for technology and the of work & 2017). In this approach, employees who are the particular are to the the technology, that can it to the work that and as an of this approach, with the introduction of technology in the their workforce to and the technology and two for in to look at work processes and and how will rather than at of or employees, and second how work and for the which on or & As an example, the of and and how technology the these workers provide to the argue that have a to reach and a in a of to but there is to the from the the on the other have a are the of the to most can greater which for the on this it to as of the routine and work as possible and use with more to from a and with as The work of on the other not be or are the point of with their their work could be for with an through which could and to and provide a More there are to a and the majority of its workers are who have or no or of its and and no to be to it, or to its the to to As in the direction of a of and a of the more and more of the working for a be more or less of their current and it be to and a contract it be less to to the and about how the work be in with and other will to ways to and workers more and the of employment this labour for a of social and is for hand-in-hand with social and and for the of would be a from some to & The is approaches to increase the of workers on the change to bring of between contract workers and full-time employees, between employees and the and the is is a more of social for workers, not in the as as greater in and For the is a fact of and is to employment but also bringing a of social and increasing and In the the to these is both by the current and by the of and and a more A for and for will be to and more to at of and to and both digital and to with the of the workplace & 2019; the on and increase as the employees become more be less to in their workers workers are more to taking their new with also be to bring to would provide workers with the to be what of is by their and how this is 2020). the rise of collaborative services and organisations are that no longer to the of the market and the The in the is by for the and the of an a in of such a view have argued that there are other by of a collaborative products other than (Thompson, 2019). However, there are at two possibilities of to capitalism. The first concerns the of a of The second on the of the social and & 2017). Within the of for an to capitalism through the greater of for the on this are and of change. for ‘the of and for and The of is in of and and present an to the or capitalism & As it is that and are not the of capital and it also to be that the is not by the A second possibility is the concept of workers The of greater democracy in the workplace is but in this the is that workers are to change in As organisations the of a capitalism at the the that the and ideas to & with and by members and being shared among The traditional of a to and workers would be in of workers the and with the output of the among of their of such point to the of for to their labour in such and the of possibility of such capitalist organisations The of the state in the for such approaches to work is and that a is a that would both and based to by The second tipping point is which that with digital technology, future work be more but there will be less of it and unemployment will of unemployment are not The introduction of new technology on employment and the possible implications of for labour of the In the an for in which considered how the have changed by the as to of means of the use of labour the at which we can new uses for this as a of but not believed that labour by would be the in the argued that within a the for to work would have we would have what economic the of how would be a or but predicted that this would new as would to to of a work has to about to the for at present the employment is the unemployment is at concerns about technological unemployment to to are or at have been up to this to the for evidence for that technology some workers, it raises labour technological advances are to routine work, and these advances an more than from to & 2019). However, of the end of employment it is could turn out to be at some unemployment by has been the it has not been the of the which of the of England in of the by & The employment of has also dramatically in recent from of the workforce in to by has characterised these changes as the of labour from some and to the for are not jobs, but and the it is predicted that will be by to routine and are already to some more than 2015). technological which has the capacity to disrupt at the and to as as & that of total employment is at of being by in the we that society has been to to technological changes in by new jobs, we not be that the future will be the in this it be that there will be for labour to to be as leading to the development of a or a The both these on the and technology as a mechanism in on the a of in capitalism. not the with technology and some of the that technology can have both within organisations and society as a innovation is possible by the by a of from and to and and through the of in turn and are by economic and social There are being in this process about how organisations will to and is that digital technology, together with is the social contract to capital to the state, and a decline in with the key economic of society has some this is leading to an intensification of the the current social and a of capital with to labour and to the A set of for amendments to the social to the of increasing and of A perspective highlights the for a social contract based on which on and cooperative a more state, and a of social capitalism. of the discussion about the entrenching of the capitalist has on an increasing of work rising work and and the up of and control of are in approaches and are of 2020). of of concerns is to develop a of workers and to to can be in through and control and the of as digital technology its reach within society, and knowledge more (Adler, the to up approaches rather than to the social more & 2020). As (Adler, on of research on the of in in the of of as the principle most effective in generating and new this concept has a the on capitalism has the to trust. The focus on in capital and increasing through the greater of employees and in the of would be in of risk and in or would be to more to secure and to in both and also social The on with ideas of “reciprocal Digital technology be the of on which social The ethical is to and of This also has a and The More the have for a from and of the social which and social towards more and based of social The crisis of capitalism highlights that fact that are not workers but are also and the new that digital technology has these a new social contract is There is to be a and the possibility of a break with the current social contract is to be or of the three possibilities we have will There will to be elements of and that are by digital technology 2014). technology is in a and capitalist (Fisher, other possibilities are the of society, we would is not a technological an economic but a and an ethical one. We that there no of in the of this is a at the of and is of the for research are technology, and the of change. is a at research are in technological and is a at research focus on innovation and risk in technology The for this is at not to this as no generated or the current

Business · Capitalism · Economics · Market economy · Political science · Politics · Social contract · Digital Economy and Work Transformation · Employment and Welfare Studies · Housing, Finance, and Neoliberalism · Law

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