Our economy is driven by an old currency, monetary value. (Currency stores value) Money represents a value exchange, I give you dollars and cents and you give me goods or services. Businesses and individuals seek to maximize earnings, money, by producing goods and services that a market consumes. Serving the interest of the market at maximum productivity and quality insures a continuous stream of your currency, money.
Currency used to be based on a commodity such as Gold because of its rarity – but today, time is the rarity. We are only given so much of it and what we choose to do with it defines us as an entrepreneur – or not. An entrepreneur raises assets from low productivity to high productivity. A parent, teacher, doctor, engineer, are entrepreneurs in the truest sense.
Productivity is a measure of (how much stuff you can make in a given period of time) production. The more you can produce and do so with quality (in the eyes of the buyer) the higher probability that your earnings will go up. Productivity in economics refers to metrics and measures of output from production processes, per unit of input. Labor productivity, for example, is typically measured as a ratio of output per labor-hour, an input, or at least we used to think so.
What Improves Productivity?
In the industrial era productivity was driven by maximizing machines and human resources to produce more in less time. During the information era productivity was driven by the maximization of information with human resources aimed at creating new value from the information, knowledge. From industrial, information and now knowledge productivity has been and will continue to be the driver of value that creates our currency of exchange.
While we’ve witnessed different eras of “production” we have not changed the currency rather we have simply relied on the “dollar” as the (storage device) exchange for value produced. As we experience the era of knowledge fueled by technological advancements along with the convergence of a new global economy one must ask “what will the new currency be?” Certainly anyone can see that the American dollar is headed for massive devaluation and many global leaders, including our current President, are moving towards a new global currency.
The currency of productivity is time. If you could produce more in less time, whether a business or individual, what value could you create and would that value becomes your new currency? (more time available gives you more options to produce new enterprise) In order to produce more value in less time one must rely on or create new (information, information then becomes knowledge within another person in a relationship economy) knowledge.
New Knowledge then fuels innovation and (the ideation) of consumption of innovative products, services or ideas aimed at improving productivity are centric to saving time. Read that again and think about it. If you could earn or produce as much “currency” in a four day work week vs. five days would you not be creating value which everyone wants, time.
Objective: produce Time. Time has value. Time is subject to supply and demand. Time has a quantity that cannot be corrupted and a quality that is relative to a market. You need to invest time to make more of it. The best person for a job is the one who can make time more efficiently. People must be paid based on how much time they contribute to society. A teacher contributes time to society to the extent that they can increasing the productivity of thousands of students. A doctor contributes time to the extent that they can increase the quantity and quality of time for thousand of patients.
Anyone who does not increase the productivity of another person should not be paid in the new economy. On the other hand, pollution, gambling, crime, war, all decrease productivity of society and the market should be allowed to address these accordingly in the new economy.
Think about the advancements in technology over the last 25 years. Did you ever think that “email” would make you more productive? What about cell phones, the World Wide Web and now social technology surround and consume us. Knowledge is fueled by learning. Learning comes from an exchange of conversational currency. Conversational currency comes in numerous forms. Words in textual formats, spoken words in audio formats, images, video and sound are all part of our conversational currency that fuels knowledge for those seeking it. Applying knowledge with the aim of creating innovation aimed at producing more time is what will produce improved productivity.
Knowledge that fuels innovation aimed at productivity will be the driving force of a new global currency. Those who learn and apply knowledge to produce more in less time will be the winners. Those that don’t will lose. The difference is having more or less currency in the new global economy rushing towards us all.
Today social media fuels the conversation exchange. Tomorrow those who learn how to create time saving knowledge and innovation from these exchanges will be the productive ones and the value of their currency will be higher than those who don’t.
Get it? What say you?