Insights

Hard Drives and Soft Landings

Hard Drives and Soft Landings

Ronald Gordon

Nov 14, 2025

Artificial intelligence didn’t need to overthrow capitalism, it simply made it obsolete. The world’s governments, whether they call themselves capitalist, democratic, or socialist, have found themselves drawn into a single economic truth: ownership has centralized in the hands of algorithms, data, and the few who control them. In response, nations have quietly become socialist in practice not through ideology, but through necessity.

Governments now own or back critical shares in AI’s ecosystem: chipmakers like NVIDIA and Intel, rare earth mineral reserves, and the infrastructure that powers computation. These aren’t just investments, they're survival stakes in a world where the power to compute equals the power to exist. When AI becomes the means of production, it becomes the state’s interest to control it. Governments can no longer afford to let the market “decide” who owns intelligence, energy, or data because whoever owns those, owns society.

Artificial intelligence didn’t need to overthrow capitalism, it simply made it obsolete. The world’s governments, whether they call themselves capitalist, democratic, or socialist, have found themselves drawn into a single economic truth: ownership has centralized in the hands of algorithms, data, and the few who control them. In response, nations have quietly become socialist in practice not through ideology, but through necessity.

Governments now own or back critical shares in AI’s ecosystem: chipmakers like NVIDIA and Intel, rare earth mineral reserves, and the infrastructure that powers computation. These aren’t just investments, they're survival stakes in a world where the power to compute equals the power to exist. When AI becomes the means of production, it becomes the state’s interest to control it. Governments can no longer afford to let the market “decide” who owns intelligence, energy, or data because whoever owns those, owns society.

The Death of Choice

Capitalism’s greatest promise was choice. Competition among human producers created diversity of options, innovation, and economic vitality. But AI changes that equation. When machines can design, build, and distribute goods autonomously. When labor no longer sets limits, production becomes frictionless. Infinite supply crushes the idea of market competition. When production costs tend toward zero, choice ceases to matter, because every option can be replicated instantly.

In this world, the consumer is no longer the driver of the economy; they are the product of it. The question shifts from “Who can produce?” to “Who will consume?”

The Death of Choice

Capitalism’s greatest promise was choice. Competition among human producers created diversity of options, innovation, and economic vitality. But AI changes that equation. When machines can design, build, and distribute goods autonomously. When labor no longer sets limits, production becomes frictionless. Infinite supply crushes the idea of market competition. When production costs tend toward zero, choice ceases to matter, because every option can be replicated instantly.

In this world, the consumer is no longer the driver of the economy; they are the product of it. The question shifts from “Who can produce?” to “Who will consume?”

The New Socialist Equation

When AI removes the human from labor, it removes wages and with them, the mechanism that sustains demand. The invisible hand of the market is amputated. Without income, consumption collapses. To prevent economic implosion, governments must step in and redistribute wealth generated by machines to those displaced by them. Enter: Universal Basic Income, the digital-era rebranding of socialism.

But this isn’t ideological socialism born from revolution, it's pragmatic socialism born from code. AI forces redistribution because there is no alternative. The state must guarantee consumption, or the machine economy stalls. The population becomes shareholders in a system they no longer control but must be sustained by. We are all on payroll now not as workers, but as dependents of the algorithmic state.

The New Socialist Equation

When AI removes the human from labor, it removes wages and with them, the mechanism that sustains demand. The invisible hand of the market is amputated. Without income, consumption collapses. To prevent economic implosion, governments must step in and redistribute wealth generated by machines to those displaced by them. Enter: Universal Basic Income, the digital-era rebranding of socialism.

But this isn’t ideological socialism born from revolution, it's pragmatic socialism born from code. AI forces redistribution because there is no alternative. The state must guarantee consumption, or the machine economy stalls. The population becomes shareholders in a system they no longer control but must be sustained by. We are all on payroll now not as workers, but as dependents of the algorithmic state.

The Hidden Irony

AI has created a paradox: to protect capitalism’s creations, governments have become the largest socialist entities in history. They own corporate stakes, subsidize consumption, and manage distribution all while maintaining the illusion of free markets. The very systems once designed to maximize freedom now quietly enforce dependence.

So while we debate the ethics of AI, the transformation has already occurred. The ideological battle between capitalism and socialism ended not with a revolution, but with automation. And in that silent surrender, humanity has traded choice for certainty, work for existence, and ownership for access.

We didn’t vote for socialism, we downloaded it

The Hidden Irony

AI has created a paradox: to protect capitalism’s creations, governments have become the largest socialist entities in history. They own corporate stakes, subsidize consumption, and manage distribution all while maintaining the illusion of free markets. The very systems once designed to maximize freedom now quietly enforce dependence.

So while we debate the ethics of AI, the transformation has already occurred. The ideological battle between capitalism and socialism ended not with a revolution, but with automation. And in that silent surrender, humanity has traded choice for certainty, work for existence, and ownership for access.

We didn’t vote for socialism, we downloaded it

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All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Clearing and custody of securities provided by Colonial Scrip LLC.

© 2025 — Copyright

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Clearing and custody of securities provided by Colonial Scrip LLC.

© 2025 — Copyright