The Industrial Age has been built by the labor loop: pay workers more so that they can consume more factory products. This has led to unprecedented improvement of living conditions and overall wealth. This also worked well in an era of scarcity.
As we reach an era of abundance, where manufacturing can produce way more than we can or should consume, what will be the new model that will drive progress in the world? There is much talk about replacing it with a knowledge loop. An excellent post describes this transformation: ‘From the Job Loop to the Knowledge Loop (via Universal Basic Income)‘.
At the same time I find that the view of a knowledge loop supported by basic income where everybody would keenly participate to creating knowledge quite utopic. I am not sure everybody would indeed participate actively, and how the contributions of individuals could be valued.
Nevertheless, the crisis of the labor loop is upon us, as shown by the relative decrease of wages as part of wealth creation and we need to find an alternative model.