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Techno-Feudalism and the Rise of AGI: A Future Without Economic Rights?

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  • Pascal Stiefenhofer

Abstract

The rise of Artificial General Intelligence (AGI) marks an existential rupture in economic and political order, dissolving the historic boundaries between labor and capital. Unlike past technological advancements, AGI is both a worker and an owner, producing economic value while concentrating power in those who control its infrastructure. Left unchecked, this shift risks exacerbating inequality, eroding democratic agency, and entrenching techno-feudalism. The classical Social Contract-rooted in human labor as the foundation of economic participation-must be renegotiated to prevent mass disenfranchisement. This paper calls for a redefined economic framework that ensures AGI-driven prosperity is equitably distributed through mechanisms such as universal AI dividends, progressive taxation, and decentralized governance. The time for intervention is now-before intelligence itself becomes the most exclusive form of capital.

Suggested Citation

  • Pascal Stiefenhofer, 2025. "Techno-Feudalism and the Rise of AGI: A Future Without Economic Rights?," Papers 2503.14283, arXiv.org.
    • Handle: RePEc:arx:papers:2503.14283
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    References listed on IDEAS

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    Cited by:

    1. Pascal Stiefenhofer, 2025. "Artificial General Intelligence and the Social Contract: A Dynamic Political Economy Model," Journal of Economic Analysis, Anser Press, vol. 4(3), pages 142-183, September.

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