A new focus
by @robyneggs, business strategist and artist in PDX
The inward focus shift
The equilibrium of the global economy is in the not-too-distant future. The population is increasing substantially, and the largest segment of the U.S. population will retire soon. According to PricewaterhouseCoopers (PWC) an economic slow-down will occur around 2020, or less than five years from now, and continue on into 2050, at which time the global economy is predicted to also triple in size (2015)! With that knowledge it must be addressed that the GDP growth of the nation will hence slow, causing businesses to look towards “deepening” capital within this growth measurement (MIT, 2009). It is important to note what kind of growth is occurring, whether it be in capital, hours, or Total Factors of Production (TFP) (MIT, 2009). For, labor growth alone won’t guarantee a healthy nation (Chien, 2015). To stay on top, therefore, we must "deepen" our nation's human capital. And steemit can help.
Maximizing focus
In order to fully maximize, or deepen output, the nation must first invest in sustainable infrastructure, human capital, and technological advances, for only long term economic strategy will increase the GDP healthfully. Steemit could cover all those bases. Steemit houses a sustainable infrastructure within its free-market governing principles; its focus is the user (or human capital in this example); and it is technologically advanced. Apparently continual growth has more to it than just increasing output. It's not about just posting any content, it's about posting content that adds to, or "deepens" the worth of steemit, as a whole. Our human capital output (in the form of posts) must sustain itself in the long run. At what point does steemit house all possible how-to articles? At what point does every household in the nation have the products it needs to live? What needs to happen to continue to grow a nation’s GDP value after that? What does steemit need to do to continue to create value after the hard fork?
Are businesses (and you) prepared?
Considering the economy will soon reach equilibrium, how prepared are we for such an event? Consider that the free market of businesses might only be concerned with the short term effects of economic growth and shock, but what controls will be instituted to carry on efforts when said businesses mature or no longer exist? What about when steemit matures? Continual increased output will simply not be enough, considering the explosion in population growth by 2050. According to Peter Diamandis, a speaker at TED2012, this explosion brings with it an age of abundance; one in which we can expect to see 3 billion new minds (minute 12:07) coming online in the near future. Capital deepening must become the new focus of growth measurement, to guarantee that output per worker increases; that we increase our value as the individual. It is up to us to deepen ourselves and our investments, steemit being the possible infrastructure of deliverance.
Adapting and policy
New economic policy must therefore become endogenous.
What is the 'Endogenous Growth Theory'
The endogenous growth theory is an economic theory which argues that economic growth is generated from within a system as a direct result of internal processes. More specifically, the theory notes that the enhancement of a nation's human capital will lead to economic growth by means of the development of new forms of technology and efficient and effective means of production. -Investopedia
New, long term evidence has shed light on the effects of internal and external shocks to this nation, and globally over many decades. And while exogenous growth models can be applied to technological shocks, endogenous growth explains why those shocks inevitably deepen the capital of the labor force.
Technology allows for more output per worker than ever before; labor increases using the same amount of hours. Not just technology can grow the economy but the TFP (total factors of production) can as well, like the skills and abilities of trained and talented human capital. Labor deepening exists within steemit as people's abilities and skills heighten. This is because we continuously improve, to stay at the top of the free-market demand apex.
An investment
Investing in human resources, new technology, and sustainable infrastructure (that said transactions occur over), is the new focus of growth measurement in the economy. Focusing on endogenous measurements of growth rather than exogenous is what is necessary in the long-term. And steemit can accommodate that. How will government policy solve the economic problem of capital per worker decrease due to the large amount of population that will turn 60 between 2020 and 2050 (Kim & Hewings, 2013)? How will it address the new market of 3 billion new internet users? How will it deal with a long term economic slow-down as a result? Much less, how will it transcend the predicted financial crash of the U.S. dollar (as outlined by @thelord)? The separation between government policy and private sector economic business strategy lies in the training and investment of human capital, aka the education system, aka steemit.
No government control and the resulting education
Without government control, the private sector would need to establish their own education systems, to prepare children to enter the workforce. How would businesses even begin to do that? What types of people would a business choose? What business would the parents choose to educate their children? And would having non-standardized education increase the GDP, or would it weaken it? Steemit, through its free-market allocation of wealth, would drive children and parents to educate themselves, in the most needed fields. The focus would become bent on finding a need and filling it.
Deepening brings salvation
These situations can only be measured in endogenous growth. Government economic policy aka steemit can serve to motivate or enhance this growth in human capital, in a way that businesses may fail at - by providing a free-market demand for education across the globe, by maintaining the infrastructure already in use to house this education, and by employing retirees that wish to continue to contribute to the workforce. Breaking down current government policy, however, is still a must. It needs to be rebuilt efficiently, utilizing new technology, to maximize its effect on the GDP. It needs to question what will be done in regards to the slow-down. Surely, if it adapted steemit, it would lose control in planning for and protecting the future health of the economy. But this control would simply be replaced with free-market principles, as opposed to the current capitalist structure. A free-market application to long-term economic strategy is the steemit solution, and the one that could save us all.
References:
- Chien, YiLi. (2015) What drives long-run economic growth? [Article] Retrieved from https://www.stlouisfed.org/on-the-economy/2015/june/what-drives-long-run-economic-growth
- Diamandis, P. (2012) Abundance is our future. [Video] Retrieved from https://www.ted.com/talks/peter_diamandis_abundance_is_our_future?language=en?utm_source=tedcomshare&utm_medium=referral&utm_campaign=tedspread
- Investopedia (2016) Endogenous Growth Theory. [Definition] Retrieved from http://www.investopedia.com/terms/e/endogenousgrowththeory.asp#ixzz4KLiH50Qd
- Kim, T., Hewings, G.J.D., (2013). Endogenous growth in an aging economy: Evidence and policy measures. The Annals of Regional Science, 50(3), 705-730. [Ebook] doi:http://dx.doi.org/10.1007/s00168-012-0527-z
- MIT OpenCourseWare (2009) Table 14.02 Principles of macroeconomics [PDF] Retrieved from http://ocw.mit.edu
- PricewaterhouseCoopers (2015) The world in 2050: will the shift in global economic power continue? [PDF] Retrieved from https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf
Follow me @robyneggs
@robyneggs is foremost an artist, but she likes to try to make $ on steemit by posting about what people might actually be interested in. ;-) I hope you find my article intriguing. Let us not forget, none of us are going to make it out alive (joke). :D Please, make any and all comments and/or corrections below the eggs and toast:
