The Economics of Prediction and Instrumental Power: A Critical Analysis of Surveillance Capitalism and Its Impacts on Autonomy and Democracy

Abstract

This literature study critically analyzes surveillance capitalism, an economic system driven by the monetization of personal data and behavioral prediction. It explores how extracting "behavioral surplus" reconfigures individual autonomy and democratic foundations. The research reveals that pervasive data extraction creates structural misalignments that erode privacy and freedom. By leveraging predictive capabilities, this model exerts instrumental power, facilitating behavioral modification and undermining deliberative democracy through algorithmic fragmentation and micro-targeting. Furthermore, the attention economy fosters a "datafied self," where individuals internalize machine-generated categories, fundamentally altering human subjectivity. The study concludes that these challenges are systemic and cannot be resolved through individual consent or minor regulatory tweaks. Instead, it advocates for a fundamental political-economic reconfiguration of the digital ecosystem. The goal is to prioritize human autonomy, democratic integrity, and collective self-determination over predatory extraction and the commodification of human behavior.