Transcript Integrative Economy 2015

Building the most vibrant
economy ever imagined
Ann G. Kramer, Ed. S
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
What is an “economy”?

Economics:

the study of mankind in the
ordinary business of life Alfred Marshal

Describes how we manage life

What is important to us
Employment sectors/Wealth accumulation
Major driver: shows focus of society
Changes over time; becomes more
complex



Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Economic History

Agricultural Economy




Time frame:1600-1900
Major driver: management
of the home





Industrial Economy
Time frame: 1850-1975
Major driver: consumerism
(consumer ed sciences)
Service/Consumer Economy
Time frame: 1975--2010
Major driver: consumerism
moving to intangibles
Knowledge Economy


Time frame: 2005-future
Major driver: quality of life
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Economy is concerned with:
Work/Employment sectors



Markets—factories, industrial
production
Government—military, schools, federal,
state, local
Illegal—drugs, prostitution, crime etc.

If you can’t find work in the Market or
Government sector…..here’s where you go
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Economy is concerned with:
Wealth & Wealth Accumulation
 Money, $$$$
 Power
 Possessions
 Property
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Economic transitions in our lifetime:
1973 Oil embargo/Technology




Cost of manufacturing
goes up
Expensive oil drives up
costs
Profits go down
Outsourcing begins
 1975-2000 Blue-collar
 Service jobs replace
 Lower wages
• 1995—current
White-collars jobs begin
be outsourced too
Dot.com Crash
2008 Recession
Technology explosion
Kodak—140,000 employees
Instagram—13
This is not your grandfather’s world
anymore!
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Where will we work?
How will we live?

It appears we can not consume our way out of crisis
 Unemployment is a challenge: U-6 is 11.6% (spring 2015)
 Consumption is down
 Most new jobs are low paying/not a living wage
 Technology has taken over— no need for humans to do
much of the work of the previous generations
KIND OF SCARY….
WILL YOU BE NEXT?
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
2015:
Time for an Integrative economy?

All economies change over time




Agricultural: 1800-1900
Industrial/Consumer & Service/Consumer: 1900-2000
Service/Consumer (Knowledge): 1990-2010-Future
INTEGRATIVE ECONOMY:
 Timeframe—2015 onwards
 Major driver: Quality of Life—
 Triple Bottom-line: People, Planet and Profits
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
The Challenge:
solving the 70/30 reality


30% will be well
employed
Could continue to see
this % of well-employed
individuals go down but
right now this group is
doing okay.

70% will not be well
employed





Low paying jobs
Low intellectual jobs
No jobs @ all
Guaranteed Basic Income
discussed
Left on the sidelines.
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com


Integrative Economy—
Taking the best from all the
previous economies and
permitting ourselves to add
a new dimension.

The only thing stopping
us is the belief that we
have to keep doing it
the way we’ve done it.
These are genuinely different times. In all
previous economic transitions, as old jobs
became obsolete, new jobs replaced them. This
time, due to technology, less and less humans
will be needed to do the work in traditional
business and government work sectors--forever.
We need new solutions…
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
An Integrative Economy:
3 steps to achieve this next transition



1. Expand the way we
measure the economy
2. Expand the number of
employment sectors where
people can work
3. Expand wealth
accumulation options
beyond money, power,
property and possession
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
#1. Expand Economic Measurements

Agricultural economy Integrative Economy requires
going beyond GDP
 No National value
measurement

Gross Domestic Product
+
“Core Economy”*

(Local Community Capacity)


Industrial/Consumer,
Service/Consumer


1946 GDP introduced
Quantity of Stuff
measured
Quality of Life measured
*from Creating Wealth: growing local
economies with local currencies., by
Hallsmith & Lietaer
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com


Definition: an economy of
family, neighborhood, kith
and kin.
Economists acknowledge
that something like 4050% of productive
economic activity takes
place outside the
government/market
sectors. Edgar Cahn

The “work” in the Core
Economy is extremely
necessary, yet it isn’t
measured!




Local Community Capacity
Human Capacity
Development
Volunteerism
Natural Environment
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
# 2. Expand Employment sectors:

Market


Everything connected to
unlimited production & growth
Government






Taxes pay for Administration,
schools, military, public
utilities—fire, roads etc.

Illegal

“Shadow sector”
Drugs, underground economy,
sex trade etc.
As much money paying people
to work here as in markets!


Non-profits / NGOs in last
40 years became a significant
employment sector
Providing necessary services
but not measured as “real
work” like markets or
government
Initiated from market sector
based on philanthropic gifting
Funders now include both
government and market sector
organizations
Fastest growing employment
sector—10%+
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Here’s what it could
look like:
Markets
Integrative
Economy's
Government
4
Employment
Sectors
Local
Community
Capacity
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Illegal
#3. Expand Wealth Accumulation options:

Some Traditional $$, property, possessions,
and power




Sustainable/sufficient levels instead of more is better
Reconsider‘insatiable desire’
New currencies/exchange options—beyond
“monoculture-money/Federal dollar”
Redefining ‘wealth’
(Economics of Wholeness)





Relationships
People, Community, Earth
Local Community capacity/Volunteers
Sharing economy/Volunteer Service registry
Millennials—less about owning stuff
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Can this be done?
Much is already in the pipeline

#1. New measurements—
ready to be implemented
if we could get global
agreement of what to use.


Quality of life can be
measured
We have the technology to
do it and it sets the stage
for a far more vibrant
economy!

#3. New wealth
accumulation options





Millennials—currently largest
population cohort is shifting
away from strictly traditional
wealth
Sharing economy
Bitcoins/alternative currency
Co-operative business
Lots of motivation for the
99% locked out of traditional
wealth accumulation
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
#2. Expand work sectors—
this is the hard one!

This requires a shift in
perception



Three major areas

As we go from a quantity
of stuff to a quality of life
economy, then it is easy
to recognize the value of
the work done in this
sector
Once you make that shift, it
is a no-brainer to add this
work into the recognized
employment sectors



Volunteer Services
Natural environment
Human Capacity
Development
PLENTY OF WORK HERE!
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
New economy needs
everyone fully capable.





This wasn’t always true:
Through many economies,
education was only for a
few-Ag economy—education
for 10%
Industrial economy—
education for 20%
Knowledge—education
for 30%






Integrative—education for
90%!
Whole Person/Whole
SELF
Self-responsibility
Participating consciously
in economy
Proactive
On-going, growing for a
lifetime
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Volunteer Services—work sector &
new wealth accumulation

Work would not be done if not for volunteers



Many Non-profit and NGO organizations
Valuing volunteers
 Intrinsic reward
 $23.07 Federal, $21.04 North Carolina
National Volunteer Registry
 Like Social Security: accumulate over a lifetime
 Social safety net for responsible actions


Paid in transferable time
Tradable for caring actions of a new volunteer

Backed by the full faith and credit of each other
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Natural Environment Integration


True Cost Accounting
 Compute the ‘value’ of the work done by the environment
Closed Loop market production: zero emissions
 Every step of production attended to for waste management
 Waste turns into by-products, new services
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Local Community Capacity Work sector:
Create businesses that hire
Human Capacity Development Professionals:


Why is this work important?



An Integrative Economy will require humans who are fully
capable of owning/taking responsibility for their lives while
living in an ever-changing global environment
Fully functioning Human beings don’t just happen
Current work output ranges from great to horrible

We must move from haphazard/chaos to highest
quality/knowledgeable
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Integrative Community Ventures Inc:

Human Capacity
Development
Professionals (HCDP)



An Integrative Economy
will require fully
functioning human beings
Currently most of this
work is done outside the
economic measurement
and traditional work
sectors.
We have to change this

Example business:
Integrated Community
Ventures Inc.

Hires HCDP


Work from home
Networked in teams of 30


One mile walking radius
Work focus:



Children
Children & Adults with disabilities
Seniors
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Whole Person/Whole SELF— a Universal
framework
Human Capacity
Development
Professionals are
trained in all 16
areas. Proficient in
utilizing in their
lives and
teaching/implemen
ting it for others
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Could employ millions!


Could absorb a significant portion of the 70% who are
currently under-employed or sitting on sidelines.
HCDPs are employees





They are well-trained professionals
They work from their homes
Their workload includes their children, children & adults with
disabilities and seniors in need
Work with local businesses in B2B relationships
Integrated with Universities—research, education etc.
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Funding…ah, where do we
get the money?






When we measure economy differently it enables us to
‘fund’ differently
When we expand the employment sectors; the necessity
for funding LCC becomes obvious
When we expand wealth accumulation options we can
create innovative ways to assure a basic quality of life for
all.
Cooperatives make ever more sense
Integrative B to B—we need each other
Private investment
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
We have done this before…..

Agricultural
economy transitions
to Industrial
economy


3 options available in 1905


1. Do nothing and let the current
rollercoaster ride continue
2. Grow, grow, grow
1905: Leaders gather

13 cycles of
recession/depression
in the 1800’s
Looking for solutions




Instill insatiable desire in population
Advertising industry explodes
Citizens become consumers

3. Understand whole systems—
economic, social and environmental
and design new economy

(from Whole Life Economics, Barbara Brandt)
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
What did we choose? #2

1. Do nothing?



No one wanted that
2. Build insatiable desire,
unlimited growth and
production system


3. Understand whole
systems


Looked like this would
work forever—everyone
wins
In 1905, who could imagine
running out of resources?
Not actually possible in
1905
Didn’t have sufficient
knowledge to implement a
Triple bottom-line system
Had we been
there in 1905, we
would’ve picked
#2 too.
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Here we are again…..



Transitioning from
Industrial to Integrative
economy
We too have 3 options






1. Do nothing
2. Maintain consumer
economy/insatiable desire
3. Build a whole system
economy

#1. No one wants that
#2. No longer sustainable

#3. Now possible

Economic, Social and Natural
systems
Results in abundance for a few,
scarcity for most
Pressures on air, water, animal,
plants, earth pushing to
breaking point

We have the knowledge,
technology and capacity to
make this happen
Triple Bottom line makes
sense
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
An Integrative Economy: building the
most vibrant economy ever imagined

Meets the challenges of the
21st century




High unemployment
Ecological stress
Income disparity—have and have not
Great Recession transformed


The next generation—living different
than previous generation
Different, not less
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Implementing an Integrative Economy

Who will Lead
the way?

The United States is
the best incubator


Factors all three major
systems into economic
policy and structure
 Social
 Natural
 Business
Transforms and includes
 Expands Economic
measurements of success
 Expands employment sectors
 Expands wealth creation and
accumulation options
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com
Our children are depending on us

Using centuries of
knowledge wisely =
An Integrative
Economy

We have a choice




To see the challenges before
us
Create a viable solution that
works for humans and the
planet.
An Integrative Economy is
such a solution.
LET’S GET STARTED!
Copyright 2011, Good 4U Inc.
www.lifepuzzle.com