Your political beliefs will cut you out of the new economy
Introduction
I am no economist. What I am, is a student of business, a researcher, and a thinker with an interesting question to ask. Jeremy Rifkin, an American economic and social theorist, believes we’re heading into a new economy, one that is interconnected through a global network of internet of things and built upon an energy grid that delivers through a market cooperative. This cooperative will create, share, and manage clean energy at a near zero marginal cost. Meaning, after the initial infrastructure investment is recouped, each additional unit of energy will essentially be free. This economy will require an acknowledgement and action on the crisis of climate change as well as a deliberate shift from fossil fuels to clean energy. I believe this new economy will live within a new type of economic system.
“Will a person’s political beliefs exclude them from the new economy?”
A Very Brief Evolution of Economic Systems
Before I share initial thoughts and a few potential key challenges with the new economy, let’s quickly visit the evolution of economic systems. In this case, we define economic system as the environment which private and public organizations, sub economies, markets, industries, and individuals do, or do not, exist, and interact to create and distribute products and services.
Paul Mason’s perspectives on “reshaping the economy around new values and behaviours.”, as stated in The end of Capitalism Has Begun (Theguardian.com, 10/24/2016, Par. 3) highlights the spontaneous rise of collaborative production as one of the three key drivers to this new “postcapitalism” economy. I agree, and believe we are moving towards a new economy and view this new economy as a component of a new Mesh Economic System. The Mesh Economic Systems is an evolution of the Mixed Economic System and will consist of Market, Command, and a newly introduced Social market that will collide, stretch, and evolve to produce and deliver new types of products and services. Let’s look briefly at the evolution of economic systems.
Traditional Economic System: Products and services are produced and transacted that reflect the culture and beliefs of the people. There exists very little to no surplus or waste in this system.
Command Economic System: An environment that is largely controlled by a centralized power, often a government.
Market Economic System: Products, services, and prices are developed and managed by people and organizations, not the government.
Mixed Economic System: Properties of a Market and Command economic system are present, and there is generally free market with government regulation and / or control over key areas.
Enter…. Mesh Economic System.
The New Economy:
In the evolution to our new cooperative near zero marginal cost economy described by Jeremey Rifkin, I believe several global and national trends will result in members of society opting to not participate in this new economy. These trends are nationalism, the United States disappointing regression on the topic of global warming, and a global reliance on fossil fuels.
In today’s economy, a farmer in rural America makes a purchase on Amazon.com, manages crop data through a high-speed internet, and sells their crops in local farmer’s markets and around the world. Member of society make digital transactions with little thought of the member of society on the other end of the transaction.
If this same farmer votes for a political representative who refuse to acknowledge the challenges around climate change, promotes construction of additional coal mines, and shows animosity towards more liberal members of society. Then, will these beliefs cause them to opt-out of an interconnected, cooperative economy built on renewable energy and foundationally backed by more liberal members of society? I believe so. This will result in breaks across the Mesh Economic System both on the opt-out and the other end of the connection. Consider a scenario when a more liberal member of society autonomously filters out those individuals or groups where their social, political, or spiritual beliefs do not align, thus blocking transactions. Will a greater polarization of political parties in this new economy drive the creation of two fractions of economies?
Final Thoughts:
A new economy is coming. Professor David Christian describes eight fundamental thresholds in his work on Big History of the world (thegreatcoursesdaily.com), the eight being The Modern Revolution. I perceived Professor Christian alluding we’re on the edge of another threshold and I believe the advent of social networking, compounded with coming advancements in artificial intelligence, and the challenges around climate change will create this new threshold and propel society into the new economy.
We as a society of humans must look beyond our front porch and find ways to work together, expand education, trust science, and exhibit productive behaviors so that others around us will be more likely to adopt those behaviors. Thought leaders today must architect policies, procedures, and beliefs for the new economy that ensure accessibility, safety, and active engagement by all contributing members of society.
Please share your thoughts on political polarization and its potential impact on the new, more connected, and cooperative economy.
