A Private General Intellect
Bill Gates in The Simpsons, Fox Broadcasting Company
From London Review of Books:
How did Bill Gates become the richest man in America? His wealth has nothing to do with the production costs of what Microsoft is selling: i.e. it is not the result of his producing good software at lower prices than his competitors, or of ‘exploiting’ his workers more successfully (Microsoft pays its intellectual workers a relatively high salary). If that had been the case, Microsoft would have gone bankrupt long ago: people would have chosen free systems like Linux which are as good as or better than Microsoft products. Millions of people are still buying Microsoft software because Microsoft has imposed itself as an almost universal standard, practically monopolising the field, as one embodiment of what Marx called the ‘general intellect’, meaning collective knowledge in all its forms, from science to practical knowhow. Gates effectively privatised part of the general intellect and became rich by appropriating the rent that followed from that.
The possibility of the privatisation of the general intellect was something Marx never envisaged in his writings about capitalism (largely because he overlooked its social dimension). Yet this is at the core of today’s struggles over intellectual property: as the role of the general intellect – based on collective knowledge and social co-operation – has increased in post-industrial capitalism, so wealth accumulates out of all proportion to the labour expended in its production. The result is not, as Marx seems to have expected, the self-dissolution of capitalism, but the gradual transformation of the profit generated by the exploitation of labour into rent appropriated through the privatisation of knowledge.
The same goes for natural resources, the exploitation of which is one of the world’s main sources of rent. What follows is a permanent struggle over who gets the rent: citizens of the Third World or Western corporations. It’s ironic that in explaining the difference between labour (which in its use produces surplus value) and other commodities (which consume all their value in their use), Marx gives oil as an example of an ‘ordinary’ commodity. Any attempt now to link the rise and fall in the price of oil to the rise or fall in production costs or the price of exploited labour would be meaningless: production costs are negligible as a proportion of the price we pay for oil, a price which is really the rent the resource’s owners can command thanks to its limited supply.
A consequence of the rise in productivity brought about by the exponentially growing impact of collective knowledge is a change in the role of unemployment. It is the very success of capitalism (greater efficiencies, raised productivity etc) which produces unemployment, rendering more and more workers useless: what should be a blessing – less hard labour needed – becomes a curse. Or, to put it differently, the chance of being exploited in a long-term job is now experienced as a privilege.