The world has been coming together for a very long time. Trade between civilizations has given each of them a peek into new worlds which dazzled and challenged them in turns. From the Silk Road of 2,000 years ago to the shipping lanes of today, trade has often defined how the world comes together.
As important as this has been, it has never been even or reliable. Trade is defined by people and their desires. Economic value is always what the buyer is willing to pay for something, and far too often the definition of things like money and credit has had a large role in how it works out. Contact between people brings more than physical goods, too – it brings envy, greed, curiosity and concern among many other emotions.
A world defined by people and their needs is a connected world. But those connections have to be at a human level more than at a money level if they are going to be sustainable. Connection in and of itself is one of the Five Points of the definition of People’s Economics for this reason.
A world which seems to move faster all the time usually doesn’t feel like it at all. Like a car on a highway, speed is never what people sense. Yet the faster the speed, the more likely it is that every bump in the road or sudden gust of wind can cause an accident.
A few decades ago, cars felt simply dangerous at high speeds. As technology advances they become more comfortable and much safer because they are more stable. It’s not a static balance that they achieve, but a dynamic reaction to every bump and every change, correcting it back to controllable and level.
The same sense of dynamic stability is essential to a faster moving economy as well. This is why it is one of the Five Points of People’s Economics.
After World War II, America settled down to a comfortable life and much of the world started to rebuild. Using the industrial models that defined the times, including the war, the entire process was described in terms of developing a “consumer economy.” The main economic function of people was to consume what industry produced, guaranteeing profit and growth. It was dynamic in that money changed hands rapidly, yet static in the view of where capital comes from and how it was used.
As more nations developed the process was expected to continue. But it did not. Societies, particularly in Asia, found many reasons to save money and develop themselves and their families for the long haul. This has been a critical change which, when applied properly, makes market based systems work even better.
This is also why a true market based system focused on people has to emphasize investment over consumption. It is a big part of the definition of People’s Economics, as this continues.
A world which depends on technology is a world which depends on skills. The word technology literally means “the study of skill,” and the acquisition of new skills defines a developing economy. There can be little doubt that the skills and ability to implement new products, processes, or systems is what will continue to define a technology driven world.
This is a matter of people, not money. It is at the core of what People’s Economics, the process of increasing the value of the greatest resource of any nation on earth – the drive, skills, and connections of its people. It is the second of the Five Points which define People’s Economics.
The election is over. The results will still take a lot of sifting through before we know exactly what has happened, but we do know that both parties have a stake in government now. Democrats took the US House, several legislative chambers, and six Governors offices. Republicans held, and even strengthened, their grip on the Senate.
This is going to be gridlock. But for Democrats, there is a very clear way forward that will point to a successful 2020 and beyond – possibly for a whole generation. It’s a matter of growing leadership and strengthening the position of problem solvers who work for the people of this nation.
I will get back to defining People’s Economics shortly. It only matters more after this.
Electino Day is 6 November. There is likely to be a ‘blue wave” that will change the US House and many statehouses to Democratic control, but the Senate is not likely to change. The net result is almost certainly going to be entrenchment and gridlock, meaning that nothing is going to be done for the next two years.
It’s important to take a break from the description of People’s Economics to consider why this is likely the case, and why the repudiation of Trump will not be complete. The short answer is that while America would like to move ahead in a different direction, it simply has not been properly defined.
Market day. The open stalls bubble with activity as vendors show off their products. Small handwritten signs tell you what it will take to make them yours, but you know that’s just a starting point. You can offer less, especially to the quieter booths away from the activity. But have cash on hand to make the trade quickly once you have a mutual agreement on what everyone considers fair.
That’s the common view of what a “free market” is, and it’s something everyone around the world has experience with. It seems perfectly natural, an essential part of being human. It can’t possibly need interference from other people to make it work, can it?
Yet as the world comes closer together, the definitions of nearly everything wind up befuddled in language, definitions of fairness, and sometimes the simple lack of a personal connection.