Zero Marginal Cost Society, Essay Example

The United States economy has carried for many years the reputation of being a capitalist society. This would simply suggest that one person gains at another person’s loss. What Jeremy Rifkinmarch is addressing in his article “The Rise of Anti-Capitalism”, is that the US economy is starting to rise against capitalism through innovations and continuous advances in technology. As products become more freely accessible to society, such as the example of free music Rifkinmarch pointed out when referring to Napster, the paradox of a zero marginal cost is beginning to surface. The positive outcomes to this paradox are that many citizens of society will be satisfied with the idea of virtually free products and services at higher levels of accessibility. The negative outcome to this paradox is that not enough money will be flowing through the economy for it to be stimulated. This would mean that there are fewer sales taxes, which would lead to higher employment tax rates to make up for it.

What is referred to as “the internet of things” is a concept that suggests that almost anything can be connected to a network of computers which would allow users to compose as well as receive internet data on given object. Rifkinmarch used the examples of 3-D printing and software programs to demonstrate how this theory works.

One paradox to consider is referred to as the “paradox of thrift”. If everybody saved their money during times of recession, then demand for products and services would decline. If the demand for products and services declined, then economic growth would stall. This would result in all kinds of additional economic problems such as jobs cuts, rises in unemployment, business failing to achieve sales revenue goals, and many other macroeconomic factors.

I might be able to relate to the zero marginal cost society through the use of media. Most of my music, news feeds, and learning materials are virtually free thanks to the access I have to the internet.