A Companion to the Philosophy of Technology

Technology and Late Capitalism

By the 1970s a crisis had emerged in the global capitalist system measured by a decline in the general rate of profit owing to an increase in oil prices, increased competition from Asian markets, and a decline in welfare state economic protections while supporting increased privatization of goods and services. Fordism was plagued by high raw material costs, high inventory costs, and factory systems of production that were slow to respond to changes in the market; circulation time and costs were as slow as the machinery they used; technological research and development was sacrificed under Fordism for short-term profit; consumers were reacting against mass-produced, standardized products; and the relationships among suppliers, engineers, producers and distributors were too poorly integrated to innovate as rapidly as the market demanded.

What evolved was an economic system, found in most industrialized countries today, known as “late capitalism.” Also known as “post-Fordism,” the current mode of production is based on the widespread use of information technologies, a “just in time” system of production and distribution of commodities (i.e. fewer raw materials, more partially assembled parts), the elimination of non-“value-adding” positions in production (i.e. management, quality control), mass customization tailored to meet more individualized consumer desires, the creation of “knowledge worker” jobs, and cooperation among and within firms. The current ...