An Interest Rate on Social Productivity?

by Jay Deragon on 02/28/2010

People and businesses wonder how productive all things social are or could be.  Chasing results everyone is looking for measures of productivity that translate to income.  The rate of change in social represents increased rates of interest. Interest on money is charged for use. Interest on social is relevant to the cost of productivity.

If social were money one must wonder at what rate of interest would use of social cost us. Think about it. using social stuff takes time and effort which cost money. The way to get a return on social is find ways to improve productivity with it. The irony is that using social for advertising and marketing doesn’t create interest thus using it this way actually reduces productivity.  Thus using social for something that doesn’t improve productivity, derive interest or value is like borrowing money and not using it wisely. Doing so only creates debt and debt piles up because the interest on debt robs productivity. Make sense?

The Risk of Social is a Reduction in Productivity

Dan Robles writes: Money represents human productivity, but the interest on money represents risk. This means that the lender collects interest because that represents the risk that they assume in departing from their money. Meanwhile productivity fluctuates naturally and can be affected by a many external forces.

The problem is that risk can never be negative, therefore interest rates can never be negative  – that is called “breaking he buck”.  Risk is a measure of volatility, or, “deviations from what is considered normal”.  While there is certainly good deviations and bad deviations, there can never be a “negative” deviation from normal – it is a mathematical impossibility, a glitch.

The result is that productivity must always be driven up and up and up – sometimes in unnatural ways, such as forcing consumption.  Constant production is unacceptable – it must always increase.  Vacations, free time, family time, and leisure are not acceptable.  What if we had a currency that could accommodate a negative interest rate?

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{ 10 comments }

JDeragon February 28, 2010 at 2:09 pm

Money represents human productivity, but the interest on money represents risk.What about social? http://short.to/1936j

Top 5k February 28, 2010 at 2:09 pm

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RSS Feed February 28, 2010 at 7:51 am

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Allen Howell February 28, 2010 at 7:32 am

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JobShoots February 28, 2010 at 7:08 am

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JobShoots February 28, 2010 at 7:08 am

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Wales Social Media February 28, 2010 at 7:05 am

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Brendan McManus February 28, 2010 at 6:57 am

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AllThingsM February 28, 2010 at 6:25 am

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The Social CEO February 28, 2010 at 6:08 am

The Social CEO An Interest Rate on Social Productivity?:
People and businesses wonder how productive all things … http://bit.ly/bl33mp

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