CREATIVISM: THEORY OF THE 21st CENTURY
I would like to share these videos -
1. How I built a windmill? https://www.youtube.com/watch?v=G8yKFVPOD6o
2. How to Fix Capitalism by Mr. Gates? - https://www.youtube.com/watch?v=zA1ioym5OYA
As mentioned in Mr. Gates interview, we are reaching a point where imbalances in the system is starting to cause major societal issues across the globe. Without fixing these issues soon, most of the economic solutions would be a temporary fix and can become bigger and bigger. For longer term solutions, we have to accept the fact that globalization has brought world closer, mixed up cultures and economic theories, but also resulted in bringing problems come closer. To address this problem in a holistic manner, instead of just focusing on IQ, a combination of IQ, EQ (Emotional Intelligence Quotient) and AQ (Aspirations quotient) as presented in a Wharton article should be incorporated to define creativity and talent across the globe.
For that reason, I would like to utilize the term, "CREATIVISM" rather than confining to anyone economic theory.
WHAT IS "CREATIVISM"?
We need to transform the global environment that would be conducive for creativity and talent to come to the forefront by providing appropriate opportunities to address job growth and education requirements for the people in the 21st century. Most importantly, creativism should address imbalances across the globe to reduce problems caused by inefficiencies in the global system.
What imbalances are we seeing? It is not only wealth gap, but we see at least the following three -
Three primary ones -
1. Population & Demographic
2. Economic & Financial
3. Energy and Climate issues
Before I elaborate on these imbalances, I would like to briefly delve on the nature of problem that we need to address here:
These imbalances can be considered as optimization problems, where over time, we need to identify member by member optimal solution as well as global optimal solution. In this way, countries/group of countries would have a right portfolio mix of self-sufficiency combined with globalized interaction based on comparative advantage. (Prof. Teneketzis, I am trying to bring back what I learned in your course)
POPULATION & DEMOGRAPHIC IMBALANCES:
In several of my previous articles, I had presented many societal issues caused by demographic characteristics. To further elaborate on this point, a simple example would be population density in different parts of the world. Right now, almost 60% of the population is localized in the Asia/Pacific region.
To address this issue, as repeatedly mentioned before, every country should have a good database on demographics continuously updated and also utilize it to optimize labor and economic requirements of the country. Further, to address issues such as aging population or global population imbalances, larger countries with more surface area should consider incorporating open immigration policies to reduce this imbalance in the coming years.
What would be advantage and disadvantage of opening up the immigration policy?
- It will help in restoring some balance to planet earth
- It will help in increasing countries domestic demand, and self-sufficiency
- Increase diversity
- Potentially, reduce liquidity crisis
- Increase diversity
- Increase demand for resources
How to combat the disadvantages?
- As the demographic changes happen over time, policies should be put in place early on to promote behavioral changes such as, managing energy sources and demands appropriately.
- Legal and Community service sectors (firefighters, teachers, and other educational professionals) should be expanded to accommodate for growing population.
- Immigrant population should have decent understanding of the local culture and legal system to blend into the system.
ECONOMIC & FINANCIAL IMBALANCES:
I would like to clarify upfront that I am not seeking a gini index of zero, which means everyone should have same income. If that were to happen, we will not have "CREATIVISM" as there is no incentive to work. Instead, the gap should be reduced. Right now, data from various sources suggest that the top 1% is worth around 35% of the wealth in US, and the top 10% around 90% of the wealth. With such wealth gaps, we are having a system where families and individuals who would like to spend either don't have money or reluctant to spend due to lack of job and market stability. Whereas, people with money are either not spending, or the liquidity is circulating within that group. This wealth gap, in turn, appears to result in frequent liquidity crisis. Note: Similar liquidity crises were felt prior to several other financial crises.
By readjusting this wealth gap where 90% have close to 20-25%, we might be able to have enough liquidity in the market place, which, in turn, might limit the frequency of systemic financial risk.
It is also important that, over time, there needs to be some control measures to be put in place to address global trade dominated by 500 MNEs. To meet the increasing demand for jobs, more of the MNEs should consider divesting their non-core assets. Financial institutions can't be too big to fail and too big to be over the law. For that reason, satellite banking systems such as, credit unions and community banks that primarily focuses on the basic functioning of banking revolving around deposits, and loans should become more and more prominent in the coming years.
Considering these issues, suggestions were put forth in the last article to do the following:
1. Increase consumer demand, which I believe, would increase liquidity in the market (in the near term)
2. Reducing or eliminating unnecessary layoffs for up to three years would increase consumer confidence, bring back some level of trust and stability
3. It also gives countries that had been over-relying on insourcing or outsourcing to grow their economy, and to balance their portfolio mix
It is also the reason that connectivity within states and between states within regions should be improved. By increasing connectivities, we might be able to combat frequent housing bubbles, and also reduce imbalances in economic growth within countries.
Over the long-run, fiscal discipline should be brought into the system, both on the private and public debt sides.
Why do we have to fix these inefficiencies soon?
Due to various system related changes happening over the years, the inefficiencies in the system combined with networked environment appears to result in faster spread of problems on a global scale. In order for us to focus more on the bigger problems such as energy demand, global warming, we need to address system related inefficiencies soon. With data of sizes never seen before to our support, we should be able to address these issues in an effective manner soon.
Energy Imbalances & Global Warming issues - will be addressed in a separate article -
1. https://newsdaily.com/2015/08/white-house-announces-plans-to-boost-renewable-energy-use/ (Added on 8/25/15)