The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism by Jeremy Rifkin

The Zero Marginal Cost Society is a book written by Jeremy Rifkin that predicts a drastic change to the way business is done, due to advances in technology and communication. The book presents a vision for a “Near Zero Marginal Cost Society” where products and services are exchanged for virtually no cost. This transition to a near-zero marginal cost society is already well underway, and is a result of the twin revolutions of the Internet of Things and the Collaborative Commons. These twin revolutions are set to transform the entire economy, and eclipse capitalism as we know it.

In the book, Rifkin outlines his argument that the Internet of Things and the Collaborative Commons are drastically reducing the marginal costs of the production, distribution, and usage of goods and services. The Internet of Things is a network of highly connected machines, such as smartphones and sensor-equipped devices, that have the ability to monitor and analyze data that is sent across vast networks. This network of devices carries information about products and services that are typically isolated within silos. By creating a highly connected network, information can be easily shared and acted upon, reducing the cost of production and distribution.

The second revolution, the Collaborative Commons, is a digital platform where individuals and companies share information, resources, and products for virtually no cost. This sharing economy is drastically reducing the need for traditional forms of ownership and consumption. Instead, customers access goods and services by sharing them with others using digital networks, effectively eliminating the need for ownership and the marginal cost associated with it.

Rifkin predicts that the result of this near-zero marginal cost society will be a dramatic shift away from capitalism and towards a more sustainable economic model. The traditional market-based economy, Rifkin argues, is built on competition and scarcity, as producers and sellers have to fight for customers and resources. This model of competition leads to high marginal costs and high prices, which leaves many consumers unable to purchase the goods and services they need. The near-zero marginal cost society, on the other hand, encourages sharing, collaboration, and efficiency. It incentivizes producers to find new avenues of production and distribution while lowering prices, making it possible for more people to access goods and services.

Overall, The Zero Marginal Cost Society is an exploration of how the Internet of Things and the Collaborative Commons are changing the nature of the economy in profound ways. The twin revolutions are drastically reducing the cost of production and distribution, as well as encouraging more efficient, collaborative, and sustainable forms of production and consumption. While this change may be a challenge for some to adapt to, Rifkin argues that it is a necessary shift that will eclipse capitalism as we know it and replace it with a more sustainable economic model.