The crushing of conventions
Dr. Amir Kahani
Price Smart, Build Trust! Reduce CAC ( Customer Acquisition Coast) by Unify Sales & Pricing —Ethically
?In the ever-evolving landscape of the global world, many conventions have been crushed, considering the harsh reality we face. The crushing of conventions has become a prevailing theme. This seismic shift is not confined to the economic realm alone; it permeates through the political, social, and humanitarian spheres of our collective existence. The question we must grapple with is not just when this economic transformation occurred but how we can adapt and thrive amidst these changes.
?The late 20th century, particularly the 1980s, witnessed a monumental global transition towards market-centric policies. This era, often associated with neoliberalism, was characterized by an economic focus on business, deregulation, and profit. The shift was primarily influenced by several key figures and economists of the time, including Milton Friedman, Margaret Thatcher, and Ronald Reagan.
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Milton Friedman, a renowned economist and intellectual, championed free-market capitalism. His theories significantly shaped the economic strategies of numerous governments, advocating for a diminished role of government in the economy and an amplified presence of private enterprise.
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Margaret Thatcher, serving as the Prime Minister of the United Kingdom from 1979 to 1990, implemented policies that underscored deregulation, privatization of state-owned enterprises, and a reduction in the sway of trade unions. Her tenure marked a significant tilt in the UK's economic policy towards a more business-oriented and profit-driven approach, a phenomenon now known as Thatcherism.
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Similarly, Ronald Reagan, the President of the United States from 1981 to 1989, introduced policies, collectively known as Reaganomics, which stressed tax cuts, deregulation, and increased military spending. His administration advocated for a free-market economy, believing less government intervention would spur economic growth.
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The cumulative influence of these leaders, backed by economists like Friedman, led to a global trend favoring business and profit. This shift had profound ramifications:
Globalization: The drive for free trade and the dismantling of barriers to international commerce hastened globalization, allowing businesses to extend their reach globally.
Financialization: The economies of many nations, notably the United States and the United Kingdom, experienced a surge in the size and influence of their financial sectors.
Income Inequality: While these policies led to substantial wealth generation, they also exacerbated income and wealth inequality within and among nations.
Influence on Other Countries: The policies endorsed by Thatcher and Reagan, coupled with Friedman's economic theories, impacted international institutions like the International Monetary Fund (IMF) and the World Bank. These institutions encouraged similar reforms in other countries, particularly in the developing world during the 1980s and 1990s.
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Economic Boom and Busts: This era was marked by periods of significant economic growth but also laid the groundwork for economic downturns, as evidenced in the early 1990s and more dramatically in the 2008 financial crisis. Critics argue that these downturns are long-term consequences of deregulation and overreliance on markets.
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The era in question signified a significant shift in numerous countries towards policies that favored business and profit. The implications of this shift have had enduring impacts on the global economy and societal structures.
Especially after the pandemic, which has had a substantial negative impact on society's well-being and the economy, we need to adopt a modern and innovative approach that will bring positive value to society's well-being.? Then a question arises: can businesses create solutions that will bring positive value, focus on society's well-being, and gain their needed profit?
My answer is straightforward and clear: YES! To do so, we, the business community worldwide, must shift our mindset and adopt new concepts.
How? By creating a self-evolving organization!
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