The Post-Capitalist Society

post-capitalist society

Peter Drucker, the father of modern management, discusses how knowledge, not capital, is the new basis of wealth.

Unimagined Futures: “EVERY FEW HUNDRED YEARS in Western history there occurs a sharp transformation. We cross what in an earlier book, I called a “divide.”

Within a few short decades, society rearranges itself—its worldview; its basic values; its social and political structure; its arts; its key institutions. Fifty years later, there is a new world. And the people born then cannot even imagine the world in which their grandparents lived and into which their own parents were born.

We are currently living through just such a transformation. It is creating the post-capitalist society, which is the subject of this book.

PETER DRUCKER: International economic theory is obsolete. The traditional factors of production – land, labor, and capital – are becoming restraints rather than driving forces. Knowledge is becoming the one critical factor of production. It has two incarnations: Knowledge applied to existing processes, services, and products is productivity; knowledge applied to the new is innovation.

When you look at it that way, the last 40 years of economic history begins to make some sense. The Japanese have shot themselves into the world economy by concentrating on productivity, while we have concentrated on innovation. But the Japanese have neglected innovation. They are now desperately trying to catch up; the results are not yet good. The Germans have totally neglected innovation and show no signs of even trying to catch up. Now we in the US are desperately trying to catch up on productivity.

Knowledge has become the central, key resource that knows no geography. It underlies the most significant and unprecedented social phenomenon of this century. No class in history has ever risen as fast as the blue- collar worker and no class has ever fallen as fast. All within less than a century.

In 1900 the blue-collar worker was still a proletarian. Trade unions were still either totally illegal or barely tolerated. There was no job security. There was no eight-hour day. There was no health insurance (except in Germany). Fifty years later, the blue-collar worker seemed to dominate every single developed society.

Now we have a Secretary of Labor who openly declared, in _The Work of Nations_, that the blue-collar worker doesn’t matter. And the unions accepted him.

Drucker born in , died November 11, 2005 in California at 95.

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One Response to “The Post-Capitalist Society”

  1. Book excerpt: The Crowdfunding Revolution | Tech-Bubble Says:


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