Threats to Capitalism

http://www.cnn.com/2013/05/02/travel/london-city-airport-internet-of-things/

1.) Jeremy Rifkin wrote an opinion piece in the March 15, 2014 edition of the New York Times in which he described a new threat to capitalism: the constant lowering of a product's marginal cost, which is the dollar amount associated with producing one additional item of a particular product.

2.) The lowering of marginal costs to "near zero" is what Rifkin thinks will be a threat to capitalism's future. He said this lowering is "a paradox at the heart of capitalism," because the products that are made have costs and prices that are close to free, and that makes the product "no longer subject to market forces," according to Rifkin.

3.) The first example Rifkin offered for a threat to capitalism is Napster, a peer-to-peer application that allowed users to download music for free. He said this application totally changed the music business, and now artists can rarely make money on the recordings they make.

Another example Rifkin used to prove there is a threat to capitalism is how green energy, like solar panels, are making the cost of electricity cheap or free.

4.) Adding information into the mix causes more threats to capitalism, according to Rifkin. In his piece, Rifkin described this concept called "The Internet of Things" in which all kinds of different devices are connected to the Internet, uploading a bunch of data onto the Internet, which allows consumers to make even more educated purchasing decisions, thus more lowering of marginal costs, increasing the threat to capitalism as we know it.

5.) I agree with Rifkin's analysis; however, I also don't agree. I agree that the lowering of marginal costs are a threat to capitalism because it's difficult to make a profit when stuff is free. But I also think that when dealing with capitalist, people wanting to make a profit, they will always find a way to do so, and as a result capitalism won't ever die in the way Rifkin described.