An Economic Revolution?

by Jay Deragon on 09/22/2008

I love it when smart people make bold statements based on logic. Dan Robles responded to my post titled Emerging New Business Models? and said: “Social Media is making knowledge tangible outside the construct of the corporation. People are not certain how to handle this except to compare it with the context of the post-industrial economies.

Until we recognize that knowledge tangibility is the holy grail of finance and a stand alone economy in its own system, we truly stand the risk of losing this great wealth generating condition from our communities to be “incorporated” by the old business models from MS, Google, and Yahoo. “

“Something entirely new is happening and it is radical. Knowledge tangibility uproots the most time honored conventions in society today from the concept of working for wages, the elimination of the resume, the rationale of the university “degree” system, to the very definition of money itself. Hold you hats kids – it’s going to be a wild ride!!!”

Is it an Economic Revolution?

Given the crisis state of our economic system rather than fixing a broken system maybe it is time to replace it with improved measures of value.

Dan Robles further writes: Social Networks will become the corporate structure of the future. They will spit out start-ups at an astonishing rate.

The “resume system” will be banished forever possibly earning the title of the cruelest human invention since the lobotomy.

The University System will be challenged – the relevance of the college degree will be questioned in an economy that favors unique combination of knowledge assets rather than everyone having the same “degree”.

Everyone will have visibility of supply and demand meaning that employers and employees will have equal information.

Creative knowledge workers will earn micro-royalties for their participation in thousands of brainstorming sessions and product development discussions. Earnings will be shared openly and the percentile Search Engine will replace the product patent market.

The new Patent will be the “Secret Sauces” – the algorithm that entrepreneurs will develop to select their knowledge assets when producing specific innovation.

Teachers will forego salary in favor of an equity position in their students. The best teachers will make the most money. Universities will forego tuition in favor of an equity position in students; again, the best university attracts the best student.

The knowledge inventory and search engine system rewards people for doing what they are most passionate about. The dominant strategy for all players in an Innovation Economy (that which produces the most revenue) is for participants to pursue what they are naturally good at and passionate for – as long as there is a market for it.

Innovation bonds will return 80% interest or more with near-zero risk. Institutional investors, insurance reserves, and foreign investors will flood the market with Venture Capital.

The Fed will peg the dollar to national productivity, not gold or silver.

The flaw in market economics will be reversed. Technological change will occur before economic growth eliminating the economy of debt. The financial system will be restored to a sustainable condition. We know that innovation is the engine of all wealth creation and it must live in an integrated system. All we need to do is format knowledge a little bit differently than we do today.

This is not easy to see because we do not have anyone to copy – we need to invent it.

A vision worthy of your thoughts?. Given the current condition of the existing economic system maybe it is time to change the system. What say you?

{ 3 comments }

Pre Paid Debit Cards November 16, 2009 at 4:05 pm

Hello Guru, what inspired you to post this article. This article was extremely interesting, especially since I was searching for thoughts on this subject since last Thursday.

Heartburn Home Remedy April 15, 2009 at 7:46 am

I follow your blog for a long time and must tell you that your posts are always valuable to readers.

Neal "thePuck" Jansons September 23, 2008 at 12:56 pm

Very nice post. You just got a subscriber. This is similar to the kind of concepts I have been trying to address on the philosophical side over at the Social Media Philosophy Project.

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