Until world war 2, the purpose of most economists was to model how to improve the lot of places' future generations. They were inspired by Adam Smith, entrepreneurial movements - none more so than the founder of The Economist. He had come down from Scotland to London to become a Member of Parliament determined to throw out the majority of MPS who were representing vested interests not serving the peoples' most life critical needs. The Economist was launched in 1843 to help raise transparent debates with 2 particular social action goals - ending hunger caused by the corn law monopoly, and reforming the responsibility of the nation for investing in youth.
After world war 2 my father's diaries over 40 years at The Economist show the rise and rise of an economics (macroeconomics) sponsored by the big get bigger, and ever more to do with political soundbiting as the tv age took over. Macroeconomics dismally lost the purpose of being economical. Worst of all, much of its logics are geared to disinvesting in youth as its models are sponsored by old powers that be, the short-term and those who would polarise politics rather than serve the public.
By 1976, father's Christmas Day survey in The Economist was calling for Entrepreneurila Revolution - the quest for new organsiational system designs that could sustain win-win-win growth and develop places so that our children's children gained more opportunities to be productive. There are over 100 sunetorks of Entrpreneurs which have emerged since 1976 http://www.economicsofrevolution.com but they haven't turned the tide against most of the non-sustainable dynamics of macroeconomics.
Norman had warned as early as 1972 that the global financial system would collapse by the 2010s if very simple crises spun by macroeconomics had not been sorted out. For example, in 1956 Norma;s book on the London Capital market had concluded that a capital market is strategic to a clountry's develoment futures- it is about that place's quality of intergenerational savings. The greatest of all erors would be to end up with capital markets that were dominated by the financing needs of global coreporations who felt no responmsibility for develoment of places whose savings they took, and whose models used imagery to hide the costs of compound risks that sector knoew most about. In Adam Smith's sense, markjets are not free where they hide costs of disinvesting in coimmunity's nature capital or borrow from thise with the elast voice (youth in particular)
Norman was one of the last students to be tuaght directly by Keynes. His general theory had demanded that economists make a hippocratic oath for "increasing being whta rules the world". Keynes most be roling in his grave at the non-economics ratings agencies and paraphanalia of Wall Street Economics. It is time we introdyced simple economics as a literacy in schools. Yunus is correcet to say we are ending the freedom of all youth when we fail to see credit as a human right thjat needs to focus on loans made to help a person's productive lifetime not as a way of tyrapping them in the debt of conspicuious consumption.
Yunus economics today is about all the heroic goals youth want to spend their working time on. As well as ending poverty, it is about job creation everywhere, if we are to ensure that the net generation is many timnes more productive with the revolkutionary death of distance technology, than previous generation, and if we are to resot=re sustainability to every community.
The bad news is we are systemising an economics whose endgame spins Orwell's Big Brother;s way ahead. The good news is with one common mathematical error in our way, chnage the maths and we can still make 2010s the most exciting decade for investing in productivity linked in to youth's most exciting goals.
Can economics (including all the biggest institutes in the world who beleiuve they govern economics) change itself from focusing on economics of scarcity which previous thing-based economic ages were contrained round TO economics of abundance? To do this, the attached file suggests an exercise - make a checklist of 10 foci of joy of abundant economics.
Top-Down Economics spins non-economical results onto next generations
Obama's inaugural speech identifies how non-economical education, healthcare, banking and energy have spun but then appoinst top-down economists to try to change their own mindsets and systems
Better care at one eighth the cost?
Norman's 1984 quiz of why don't we try to design helthcare to become more economical has now become so absurly overlooked that USA now spends more of its budget on healthcare than anywhere in the world only to have life expectancy coming down - what are the reasons? That's an importnat quiz every school could be debating and internetworking. Some emerging realities:
healthcare is too expensive in USA for many to afford it;
foodcare is so junk ridden that obesity has reached plague-like proportions;
wrong turns made in 30 years of investment in too much carbon - on the earth itself as well as climate volatility - are increasingly destroying what were once the most nutritious foods- in USA, up to half of veggies and fruit now have more fertiliser than nutrition in them; edible fish may disappear within half a century
what's most absurd of all is green is the new quality- the world's richest nation could be leading to a better world by investing most in quality solutions instead of ones whose maximiasation of low cost in the short-term maximises high cost for future generations
an economics driven by short-term results which uses politics to hide risks and conflucts of taking shortcuts is the fastest way for the USA yo decine from developed nation to developing one; perhaps most maddeningly of all, the knowledge network economt's unique feature is the abunadnat multi-win games it offers; we are being ruled by economics of scarccity just when our children needed us to mediate and invent an economics of abundancy
Help us rate purposes of banking from peoples viewpoints
|Keep savings safe.||
Offer credit for income generation.
Focus on promoting service needs that are optimally run locally - including basic health, education, clean agriculture/energy
Sustain communities youth entrepreneurs: nb communal goals (like parental goals) cannot be expoenentially sustained for the future by maximising quarterly profit extraction at the expense of human, social and natural capitals
invest in cooperative ownership of community markets and replication of service franchises that are world class designs but where all the productivity by the community is reinvested in the community
In the last 20 years US banks have moved completely away from such purposes explaining why the economy is in a tali spin regarding job destruction. If the reason some banks might have changed was to embrace new technology then none have done that in a way that leverages the 10 times lower costs of tracking basic transactions : see www.bankabillion.org and Norman Macrae's (THe Economist's Unacknowledged Giant's) last article.
By failing to stay grounded in local community investments, Wall Street spun the 2000s until the sub-prime plague crashed around the world. What was needed immediately the bubble burst was to replace bust banks with new owners with restored community purspose. Moreover in a networked world, goodwill audits should be such that before something reaches the status of too big to fail it should be regarded as too big to exist. By failing to learn the simplest lessons from banking's most non-economical behaviours ever governed, we have transferred the syndrome of disinvesting in youth across many countries. Rule 101 of banking is any government bailout of a bank of the kind perpetrated in response to the subprime crisis always taking from our next generation place by place.
The 2010s net generation could be the most productive time for youth - instead we are spinning the least productive time through macroeconomics whose financial terrorism is as maddening as other forms of terrorism (because it is also the root cause of lost sustainability of communities and so lost hope of living a productive life)
The first thing to do differently from top down government summits round banking fixes is to look for local sources of money for refinancing. For examples, more that twice the total Greek debt is owned by Greek churches. They are using assets in ways that are not helping youth to be productive as a net generation. That is where the Greek people should be renegotiaiing their future entrepreneuriual freedoms and happiness to be. But then alongside governments being misadvised with top-down economics, and banks run by owners determined to take from youth futures, we also have media that isnt free from politicians and isnt free from big brother ownership of the sort the banking sector is infected by.
Examples of WHAT IF we really wanted tpo design free marlets to sustain communmities
many communities have a paucity of basic professional services. GOING INFORMAL IS KEY
Informal means that it is agreed that there are no liability suits between local providers and local customers, and next to no middle men. For example many big cities are facing the double whammy of increasing numbers of elders needing care and increasing numbers of nurses retiring. Many of the nurses would be happy to do part-time local work if there were no middle men and no laywers in the way. The matching of provision and need could be done by a specific ebay type structire dedicated to that community.
Green energy, as with much of efficiency achieved by mimicing nature or using her abundancy requires community grounded system designs not top-down lones. Obama's much vaunted 5 million green jobs campaign promised in 2008 was actionable - in fact easy to achieve- but not unless we design grassroots networks micro up, and have local financing that is itslef community grounded.
ungov - all down the chain of powering over of gov from regional (eg EU) to national to local is the wrong way round to empower enytrepreneurial investement by and for the community; all we need to do is give back some of the gtaxes to fund true micro up banking and we quickly invest in income generation, community owned markets and the ways that knowlwdge can mulitply in use especially if we dare to design networks to bring down degrees of separation on life critical information