The fourth industrial revolution: Implications for the global economy and for the strategic competition between the United States and China

Abstract

During the First Industrial Revolution, industrialization led to incompatibilities between the economic sphere and a political sphere based on rule by monarchs and land-owning nobles. These incompatibilities led to poor economic outcomes for workers and, ultimately, to deep changes in the political system. In the Second and Third Industrial Revolutions, compatibility emerged between new technologies and political systems based on representative democracy, leading to favorable outcomes. The changes in technology brought by the Fourth Industrial Revolution may lead to a growing incompatibility between the productive and political spheres, marked by polarization and conflict both within and among counties. A key aspect of this conflict is the rivalry between the United States and China. We evaluate the strengths of the respective countries and analyze which of them is likely to win the competition for dominance during the Fourth Industrial Revolution.

Keywords

• industrial revolution
• China-US competition
• Technological change
• Historical materialism
• Political system