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

AGI represents a fundamental rupture in the social contract because it functions simultaneously as both worker and capital owner, concentrating economic value in the hands of those controlling its infrastructure while potentially rendering human labor economically obsolete. The paper argues that classical economic frameworks built on human labor participation cannot accommodate AGI-driven productivity without risking mass disenfranchisement and entrenched inequality, necessitating new policy mechanisms such as universal AI dividends, progressive taxation, and decentralized governance to ensure equitable distribution of AGI-generated wealth. Using production function analysis and a "power shift" index, the author demonstrates that without intervention, AGI's control will consolidate into a techno-feudal structure where intelligence itself becomes the most exclusive form of capital.

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