Charles Hugh Smith – Though we are still in the early stages of web-enabled automation, it’s already evident that the old models of work are broken–though few are willing to admit it. The primary model of work is being an employee in a hierarchy–Corporate America or the state (government) or a government-funded industry (defense, higher education, R&D, Medicare, etc.)
The foundation of employee financial security is the paycheck, which is earned for 1) showing up and 2) following orders.
In the employee model, ownership is generally limited to those with stock options. Those working for start-ups that successfully go public can cash in their options for extraordinary profits; those working for start-ups that fizzle can use their expired options as bathroom wallpaper.
The conventional employee gets no ownership of their work, and this disconnect between the employee and the value created by the employee’s labor is the source of Marx’s definition of alienation: the worker is alienated from the output of his/her labor, which is owned by others.
In the new model of work, the worker has ownership of his/her work and human capital. Security in the new model flows not from dependence on an employer but on ownership of the entire process of value creation which includes the social and human capital of skills, collaboration, accountability and creativity.
I explain this process in my book Get a Job, Build a Real Career and Defy a Bewildering Economy.
As Gordon Long and I discuss in this program on the changing nature of work, in the new model Continue reading →