Notes on The Third Industrial Revolution Lecture by Jeremy Rifkin

Introduction

• Walter Benjamin Quote: Information has fleeting value; stories preserve strength over time.
• The global economy is in crisis:
  • Declining productivity and slow growth expected for the next 20 years.
  • High unemployment rates, especially among Millennials.
  • Climate change leading to a potential sixth mass extinction.

Current Economic Landscape

• Jeremy Rifkin: Social theorist and author of significant works like "The Zero Marginal Cost Society" and "The Empathic Civilization."
• Half the human race improved in wealth due to industrialization, while 40% live on less than $2/day.
• Wealth Inequality: 62 wealthiest individuals hold wealth equal to half the world’s population.

Climate Change Crisis

• Climate change is a pressing real-time issue, not a future threat.
• Alterations in Earth's water cycles due to temperature increases:
  • Increased precipitation absorption (7% more per degree).
  • More extreme weather events (e.g., hurricanes, flooding).
  • Sixth Extinction Event: Potential loss of half of all species over the next 70 years.

Economic Paradigm Shifts

• Historical Economic Shifts: At least seven major shifts; driven by convergence of three technologies:
  1. New communication technologies.
  2. New energy sources.
  3. New transportation modes.
• Examples:
  • First Industrial Revolution: Steam-powered printing and coal energy.
  • Second Industrial Revolution: Electricity and communication (telephone, radio).

Productivity Issues

• Declining Productivity: Issues stem from outdated infrastructure and low aggregate efficiency.
• Aggregate Efficiency: The ratio of potential work versus actual work achieved. Current efficiencies:
  • U.S. around 14%, Germany 18.5%, Japan 20%.
• Need for a new industrial paradigm to improve efficiency.

Future Economic Vision

The 3rd Industrial Revolution

• Three Internets:
  1. Communication Internet.
  2. Renewable Energy Internet.
  3. Automated Transportation Internet.
• Internet of Things (IoT): Embedding sensors for real-time data and connectivity.
• This new model can lead to:
  • Lower costs and increased productivity.
  • Shift from ownership to access (sharing economy).

Zero Marginal Cost Society

• Marginal Cost: The cost of producing additional units.
• Digital technologies lowering marginal costs to near zero, enabling:
  • Free sharing of virtual goods (e.g., music, videos, Wikipedia).
  • Renewables leading to near zero energy costs.
• Examples of transition:
  • Germany’s shift to renewable sources (32% from solar/wind currently).

Infrastructure Transition

• Need for a smart infrastructure to connect energy, communication, and transport.
• Investment strategies must shift from old to new infrastructure.
• Mass Employment: Transitioning to a new infrastructure will create significant job opportunities across various sectors.

Social and Economic Implications

• Sharing Economy: New paradigms focus on access rather than ownership, fostering collaboration.
• Cooperatives: Important for creating a new economic model that benefits communities rather than monopolies.

Educational Reform

• Current education systems need to adapt to foster collaborative skills and ecological awareness.
• Biosphere Consciousness: Shift from traditional geopolitical views to a collective responsibility for the planet.

Conclusion

• The responsibility lies with the current generation to enact change towards a sustainable future.
• Mobilization around shared goals and community engagement is crucial for the success of this transition.