Late Stage Capitalism Has Now Given Way To Techno-Feudalism

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The Next Economic Shift

The United States is undergoing a transformation that signals the decline of late-stage capitalism and the rise of something new—something many are calling "techno-feudalism." This emerging system is defined by extreme wealth concentration, corporate control over essential infrastructure, and a workforce increasingly dependent on a handful of tech billionaires who shape the economy’s future. As artificial intelligence advances, and labor markets shift toward automation, the traditional structures of capitalism are giving way to a digital aristocracy.

One of the clearest signs of this shift is the battle over labor and immigration policy, particularly in the tech industry. Former Trump Adviser, Steve Bannon, was quoted in an Al Jazeera article telling Italian press that Tesla CEO Elon Musk intends to implement ‘techno-feudalism on a global scale’.

H-1B Visas

Elon Musk, one of the most influential figures in this transition, has been a vocal advocate for H-1B visas, which allow companies to bring in highly skilled foreign workers, often at lower wages than their American counterparts. His argument is that the U.S. needs the best talent to remain competitive in AI and technology. However, critics point out that this strategy suppresses wages and shifts power further into the hands of corporations that rely on a global, disposable workforce rather than investing in American workers.

This labor model reflects the broader move toward techno-feudalism, where corporations replace traditional nation-state responsibilities, setting their own rules for employment, speech, and even governance. While late-stage capitalism relied on markets, competition, and some level of consumer power, techno-feudalism consolidates wealth and control into the hands of a few tech overlords, leaving workers with little bargaining power.

As AI technology continues to evolve, the need for human labor will shrink. Advanced automation and machine learning models will soon be able to perform a vast array of tasks, from customer service to coding and even creative work. When that happens, human labor won’t just be devalued—it may become obsolete in many industries. Musk himself has acknowledged this, stating that AI will eventually be capable of replacing most jobs.

What Could The Future Look Like?

The endgame of this transition is an economy where digital systems—rather than human workers—create and manage wealth. While this won’t happen overnight, the trend is already clear: an elite class of technologists and capital owners dictate the terms of economic life, while the average worker struggles to maintain relevance in a world where human labor is no longer essential.

If late-stage capitalism was marked by extreme inequality, techno-feudalism will take it further. The new ruling class will not be factory owners or financiers, but those who control the algorithms and automation. The question remains: will governments and institutions adapt to protect workers, or will society fully embrace an era where digital labor replaces human effort entirely?