How does VOS solve 21st Century’s #1 economic dilemma of productivity and inequality,in three steps?
With few of our recent VOS posts being infinity inspirations focused, we are being inspired to write an action post today, from the standpoint of, bringing those inspirations to life, in the form of our VizPlanet platform.
First things first –
With resources being the weakest link of our planet earth, a key implication is following
A compelling insight that validates this implication is following
As intriguing as it sounds, when we extrapolate this insight little further, we have the following question evolving -
Well, the ramifications of such consumption patterns are mind boggling indeed, to say the least, as they could manifest, all the way from, astronomical prices to civil wars/trade wars - and by some estimates, even trigger a third world war!
The good news is that, some of the so called “do more with less” ideas, indeed have developed some great sustainable solutions to manage those extremes, however, most of these solutions, in our opinion, are still discipline focused myopic solutions, that end up negating the impact from one another in some instances (i.e. solutions from other disciplines).
What do we mean?
A classic example of this negating behavior is the increased productivity that comes from the tech discipline, causing the inequality among the masses (which is measured by the economics discipline).
Granted, tech productivity has substantially grown the economic value pie in the last century, however, when we dive deeper into that pie, bulk of the growth has indeed come from the accumulated wealth of the top 1% of the elite, at the expense of the income of the masses in some instances, thus causing, what the economists call as the “issue of our age” called inequality.
While regulatory solutions like wealth tax and employment insurances, to an extent, can mitigate these inequality gaps in the interim, they’re not sustainable solutions at all, as they end up stifling the productivity, the foundational driver of the thing that we are trying to grow. This is where, we opine that the root cause of the problem perhaps lies in the way we have been using the discipline focused measurement/incentive systems. For example, most discipline focused incentive systems (e.g. GDP growth rate dependent FDI), while it continues to grow the quantitative part of the GDP, it does so in some cases, at the expense of negating the qualitative measures from other discipline solutions (e.g. healthcare).
In other words, it all boils down to our hypothesis below –
Extreme ideologies from both left and the right wing worsen inequality (and vice-versa) -- as these extreme ideologies, by and large are caused by the " extreme forms of both demand-side and supply-side macro economic theories" only. These extreme economic theories then create extreme political rhetoric and hence economic policies as well. And then, they bolster inequality, and bolstered inequality generates more extreme ideologies -- and the vicious cycle continues!
A key implication of this hypothesis is the creation of the following macroeconomics dilemma --
The #1 economic challenge?faced by 21st century economists is -- solving the dilemma between inequality and productivity consciously and sustainably!
Similarly, when it comes to the solution part, it can be summarized under two larger categories
The blue or left wing solution?
-- Upward mobility using demand-side policies of redistribution of wealth and employment insurance.??
(Note: The challenge here, as you know as well as I do, it works only in the near term, and ends?up stifling productivity in the long term, the very thing we need to grow)
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The red or right wing solution?
--?Upward mobility using supply side economic policies of low tax with education/skill building.?
(Note: While this is a noble solution, the?challenge is that we also need a rope to help talented people to claim the ladder, lest no one will ever climb).
This is where, we?as a firm have?came up with a middle ground "upward mobility enabling conscious sustainable education policy from kindergarten level along with a platform to democratize elite innovations to masses" by balancing both left and right wing solutions consciously and sustainably, with a PURPLE wing solution (Red+ blue balanced) in the form of our VizPlanet platform solution.
This is a pragmatic solution in three steps (Delinearize, Decouple and Democratize). Simply put,
Step 1: Delinearize the linear economy as circular with five value stations (or capitals) and restore/multiplex value, with zero wastage driven 5R+5M patterns
Those of our audiences, who have read our Virtual Ocean writings, might recall that value under VOS is created as a circle (in SPACE dimension) and then accelerates as cycle (in TIME dimension), by traveling through five value stations (purpose, human, customer and P&S Capital) before becoming Financial Capital and the cycle continues.
While Financial Capital is restored as human Capital, the rest of the capitals (P&S in particular) are mostly consumed linear, with a big waste, and so, we consciously imagined economy as circular, so that more and more percentage of resources can be restored back into the economic cycle, by minimizing waste. Simply put, VOS’ economic value is proportional to HOW MUCH (SPACE dimension) and HOW MANY TIMES (TIME dimension), products & services (and resources) are restored back into its economic value cycle.
When resources are restored as products, VOS’ restoration cycle follows a 5R pattern (refresh, refurbish, recycle, repurpose, revive), whereas, when resources are restored as services, VOS’ restoration cycle follows a 5M pattern (pure play muxing,time slice muxing, freq muxing, wavy muxing and multiplication).
As effective/efficient as these patterns sound, after certain iterations, such restoration and multiplexing patterns/capabilities have their human/tech productivity limits. In other words, as long as, restoration and multiplexing happens at a household level (at a given any time), our products and services usage are, still going to be linearly constrained.
Put otherwise, as long as P&S’s are restored/multiplexed only in TIME dimension, it’s still going to grow value, with ADDITION based productivity only. This is where, we asked the following
Turns out, only the top 1% of the elite, are capable of such restorative/multiplexed productivity today, partly because of their superior skills, and sure enough, those capabilities end up accumulating their wealth, which brings us to the second step of our solution below.
Step 2: Decouple economy’s size from its constraints, by adding the infinite human capital to the restored/multiplexed value and make value pie size infinity, as well
While the 5R+5M restoration/multiplexing patterns in the previous Dilinearize step, does increase productivity by reducing waste, after a point, it does have its limits. This is where, we opine that the only way for economic value pie to reach its infinity aspirations is that, it has to figure out a way to source its resources from an infinite source . Sure enough, with human capital being one of the infinite things under the heavens, we figured that by creatively mixing the infinite human capital with AI/robotics/telemetry/3D printing/nano-tech/VRE interfaces, would indeed grow value with a MULTIPLICATION effect, especially when we augment our value cycle, with our 5S mantra (source, soar, synthesize, switch and serve), as outlined below.
Simply put, under our 5S mantra, for economic value pie to reach infinity, source it with an infinite 5 part purpose seed capital (vision + mission + values + codes + BHAG) in the form of invisible instructions and then soar them with the infinite human capital (in the form of ideas and insights), before synthesizing them as the infinite P&S capital (by creatively mixing finite physical and infinite virtual resources, in the form of AI/Robotics/telemetry/nano-tech/human capital etc) - and last but not the least, switch them as the infinite finance capital (as all other capitals are infinite), before serving the customer capital's infinite needs and wants(i.e. the jobs to be done equation).
Step 3: Democratize the restored/multiplexed value, among masses, by creatively combining the physical and virtual resources using VOS’ VizPlanet and its 15+ sub platforms
While the earlier Dilinearize and Decouple steps, have been experimented by few economists, the step of "Democratizing Value” is what differentiates VOS’ VizPlanet platform from the pack, as it is the step that democratizes the infinite elite human capital among the masses with a noble goal of reducing inequality without stifling productivity. Simply put, VIzplanet takes democratization altogether to a new level and aspire to solve this dilemma of productivity/inequality, by applying the democratization ideas to multiple lines of businesses - and we have listed, five of them as a preview below.
Conclusion
While few economists/strategists/innovators/entrepreneurs/businesses have experimented some of these ideas on a standalone manner, we have developed an integrated, pragmatic approach to help them take their ideas to a new level
In summary, our approach has one compelling answer, not only to improve productivity, but also, to reduce inequality in a sustainable manner. Simply put, our discipline neutral platform called VizPlanet, that delinearize/decouple/democratizes the value among masses, has one compelling answer to solve this 21st century productivity/inequality dilemma, in a sustainable manner - and let that be our last word.
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6 年Hi Charles, Some lofty ideals here, although I not sure I have understood everything here. I would like to add here though that a country's progress should not be measured by gross domestic produce, but by something akin to a sustainability index. Because, more production also means more wastage at times.??