A number of changes in politics and economics are underway due to the transformation that digital marketing has had on the populace. The working classes have seen jobs outsourced to low wage economies and the middle classes are seeing no real increase in wages. Thus democracy is in crisis in the digital economy. Now it is technology driven, startup oriented economy originating from Silicon Valley rather than Wall Street which is coming to the forefront. Social norms and statuses are shifting so quickly that established middle classes are feeling challenged. With the third Industrial revolution impending, the social democracy as we know is struggling for identity. Even labour movement has lost its vitality. Digital transformation will alter not only economics but politics as well.