Future Economics: Establishing the Groundwork for Futurenomics
Within our current economic ecosystems, as technology increases and general collective consciousness advances to unfathomable new heights (with increasing new rates of change), to be stagnant is to fall behind, and to be slow to grow is to be stagnant. Unfortunately and fortunately, we don’t have the luxury of falling victim to the same pitfalls as our predecessors once embraced as a way of life. In an interview from Google moderated by Eric M. Ruiz, Tom Bilyeu outlines what it truly means to be forward thinking encapsulating the essence of the principle of futurenomics.
Growth Mindset | Innovation
The bad news is that there are consequences for falling victim to similar mistakes, as such are related to topics like diversity and inclusion, global pollution, or even failing to have a “growth mindset,” just to name a few. As Napoleon Hill teaches in his book, “Think and Grow Rich,” there are a number of negative results that one might expect for not taking advantage of his own mind. Inversely, there are substantial rewards that can be experienced for taking advantage of ones own thoughts (growth mindset). This methodology of ideals is what we particularly define as Future Economics | Futurenomics.
There are a few different definitions of futurenomics, but our definition focuses more on the holistic approach to having a growth minded outlook on future ecosystems and ultimately determining current needs in order to reach our collective visions for a brighter tomorrow. There are several different subsets that begin to paint a holistic viewpoint on steps one should take to ensure this picture of success. These various subsets or “growth identifiers” will be covered periodically in later articles. Nevertheless, a very real example of future economics can be depicted from our current economic crisis as relates to global warming. According to an article by Enrique Dans in Forbes, it was explained that within our current global climate if we continue to be stagnant in our approach to minimizing pollution we are headed for an unfavorable outputs.
“The Intergovernmental Panel on Climate Change’s (IPCC) recent alarming report silences the pseudo-scientific idiots who for years have denied the evidence and put humanity on track to catastrophe: we must change or face extinction. It’s like there’s a fire alarm ringing in the kitchen, and we’re asking if it’s real or a dream, if we should ignore it or whether we should find a way to turn it off, rather than putting out the fire that’s causing it. Global warming is no longer a distant threat to future generations: it’s already affecting the quality of life and the prospects of survival of life on the planet, unless they intend to die within a few years. To ignore it, to discuss it or to deny it is to waste precious time.
What can we do to help avoid this? Individual sacrifice poses a problem: nobody is prepared to trade in their comfort or quality of life if everybody else is doing nothing. Such an approach is not just hard, but possibly meaningless, one implies sacrifice and loss of competitiveness, while the other reflects the habits established over generations. However, there are some approaches that can help us make more coherent decisions regarding the magnitude of the problem:
Firstly, to understand that our current evolution is completely unsustainable. Stopping this implies ignoring the fundamental dogma of capitalism: economic growth. Most of what causes global warming is done in the name of the supposed need for economic growth at all costs. Alternative technologies to fossil fuels exist, but we don’t use them because it would shut down entire industries, boost unemployment and bring about multimillion-dollar losses for powerful companies. The blame here lies with our economists, who for decades have defended unsustainable economic growth at all costs. The planet, like everything, has its limits.”
With the Enrique Dans exposing the immediate global needs, highlighted throughout the article, it is clear to see the correlation between monetary policy and social wellbeing issues that affect our core human needs. These needs are directly solvable by reformation of regulations and economic processes to ensure we do not continue down the path that leads to unstable global climate conditions.
Connecting Future Economics to Bottom Line
According to Dr. Roger Kaufman professor at Florida state when speaking to Novel City Ventures Innovation Accelerator cohorts, it is imperative for ecosystem developers to consider mega planning into even the smallest of microcosms of innovation ecosystems. The term mega planning derived from Dr. Kaufman refers to exactly this idea of developing ecosystems with greater consciousness and social well being as the core factor that drives decision-making. Under the notion that business models need to first aim to solve these issues that appeal to basic human needs and from there integrate this philosophy into the micro levels of daily operations.
Future Economics, from our definition, has a lot of synergy with Dr. Kaufman’s model of mega planning. The synergy between mega planning and future economics merges within the understanding of the core elements needed for ecosystems of the future. Additionally, the two concepts seek to identify what plans of action need to be taken today to achieve future sustainability. The critical components that are often overlooked in our current capitalism culture, as the article suggests, are the direct correlations with bottom line. Capitalist views of monetary policy don’t suggest a lot of symmetry, but with more in depth analysis these key indicators (what we call growth identifiers) are the main vehicles driving GDP (Gross Domestic Product) and global trade.
Growth Identifiers = Future Economics = Disruptive
Growth Identifiers are real resources that will sustain despite economic downturn and will be irreplaceable to the healthy growth of local communities. Real resources are defined as assets or intellectual capital that appreciates over time. Applying more real resources to economic models, strategic business planning, and daily operations, in principle, has been a lost art within normal teachings and standard best practices. Its no secret that the most successful models do apply these principles; but why has this information and standardization of trues not been trickled down into mainstream business institutions?
The answer is found in the lack of understanding pertaining to elementary supply and demand functions. It is common knowledge that increasing output can position a company higher on the the demand curve thus increasing profits. However, it is often overlooked that applying real assets (intellectual capital or disruptive technology in the case of global warming) can shift the entire demand curve higher, increasing the entire transaction cycle or demand function. A simple analogy would be a cup of coins. Increasing output fills your cup with coins but shifting the curve increases the size of the cup.
The concept of increasing the cup size is important in our current economy now more than ever in order to shift the demand curve because metaphorically speaking the cup size has been increasing shrinking. This phenomenon is described as the decrease in real wages. Real wages are regular wages accounting for inflation or buying power. Buying power has been decreasing due to normal inflation naturally causing cup size (real wages) to decrease. Disruptive approaches are the only true means of materially increasing bottom line earnings affecting real wages causing future economic impact.
Future Economics is Current Economics (The Future is Now)
The opposing dichotomy suggests that the time horizon is too long and this type of growth is too time consuming for the normal wage earner to realize the profits. This theory may of been true 20 years ago but for the past decade we have been experiencing a renaissance of disruptive injections being financially realized in an unprecedentedly quick nature. Financial analysts refer to this as a “J” curve; indicative of how profits rise quickly undergoing shorter breakeven intermediary periods where return on investments are not recovered. Within our rapidly changing technological era, disruptive inputs can be implemented within a normal business cycle strengthening competitive advantage and future economic value (realized almost instantaneously), ultimately securing higher returns in shorter time horizons.
Top Growth Identifiers
Below we have narrowed down a few topics of growth or future economics that are important. We will continue the the conversation and poll top executives to find out which are most important. If you have any feedback subscribe to provide input in our data research.
We examine these principles and the growth identifiers around these concepts more in detail in other articles.
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