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Sunday, May 1. 2016The Indigo EconomyFrom Mikhail Fridman's As Global Instability Spreads, the "Indigo" Economy Rises:
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I'd love to think so, and I agree that almost everything that was written about what would happen to scarce natural resources and commodities 20 or 50 or 100 years ago has turned out to be complete hooey. Innovation is key.
I agree 100% with what was written about the future, but disagree on a minor detail. He's right about the people leading us there - curious, innovative and strong-willed people of talent.
But generally speaking, most of the young people today are essentially cargo-cultists. The idea of producing something to develop wealth runs counter to the popular Progressive themes running through the Clinton/Sanders campaigns, and while they don't run counter to many of the Trumpians, Trump himself has some bizarre and unsubstantiated views of economic progress. But other than that, yep, I'd agree. He is utterly, hopelessly wrong. Global instability will result in chaos, war, and social, economic and political collapse. People, most especially the young, are becoming stupider, less creative and much more conformist and subservient
I am between Bulldog and Bob Sykes, and I hope am providing something they could both sign on to. The essay seems to say "Economies are volatile! Therefore, my previously held theories must be true!" The economy has been different, and it is somewhat due to the creative, off-the-wall thinkers who have driven the technological improvements in communications. But some of it has been straight engineering improvement driven by better-available data. And - not all the creative thinkers have contributed to the improvement. some of them have been seriously in the way.
The problem with even using the hackneyed terms like creative and innovative is that we too readily associate that with counterculture, hip, Portlandia residents who are actually more of the problem. We need creative and innovative terms for the the old words creative and innovative. Language changes, and those words now mislead. I don't know that what you wrote is radically different from what I wrote.
But I disagree with bob sykes that instability will lead to chaos war and collapse. Collapse is an easy term, but it's something that has rarely and truly occurred. War, on the other hand, is always a possibility, even when times are good. But as trade increases(ed), war becomes less likely, not more so. Interdependency makes confrontation costly and dangerous. However, myth-making and misunderstanding the nature of interdependency is fairly common, and that is what usually leads to war. I'm not saying it will happen. It's certainly a possibility. But I still think it's highly unlikely. There's too much to lose. However, I've noticed that many people remain blissfully unaware of just how much they have, and continue to complain about what they perceive they lack. A myth, to be sure, but one which can help lead to bob sykes' potential outcome. And yes, all that does relate back to your Portlandia comment, because they are the myth-makers. OK, I am a pessimist. But, I am 72 years old, and I have seen nothing but decay for 30+ years. Right now, the US is in the worst shape of my life. And the current generation is the worst in the history of this country. They are most likely to destroy it.
Listening to Barbara Tuchman's Guns of August a few years I remember there was a theory that since the world was so globally connected that war was a thing of the past. That was just before WW1. I think Thucydides said something a little different about men's pride. Mankind hasn't changed much in 2500 years.
You beat me to it grant1863. You are quite right about 1914.
That war is less likely with free trade is a myth. There was no free trade prior to WWI or WWII. In fact, protectionism and trade restrictions/taxation only increased as war grew closer.
I didn't say war isn't possible. Nor did I say it trade would make it impossible. I said it makes it less likely. In fact, the proof of this exists today in the varied alliances which have bound together nations which, prior to both WWI and WWII were the main warring parties. France, Britain, Germany, Italy, Spain, etc. have all continued to grow closer through trade. In fact, that trade has peaceful benefits has yielded more and more trade pacts, and increased opportunities for peace (if not peace itself). But I'm not a Pollyanna, either. I recognize that problems exist. However, look at the source of those problems. They usually emanate from totalitarian nations, or from democratic nations with politicians who foster mildly (or hardcore) totalitarian points of view. The casual dismissal of trade providing opportunity for peace as a 'myth' is precisely why it can remain a 'myth' - simply because missing the evidence of its role in providing peaceful relations is something so many of us choose to willfully engage. As long as you and I engage in reasonable dialogue, the likelihood of either of us throwing a punch remains low. Chances are, over time, we will either come to a common point of view or agree to disagree. The third option, throwing that punch, remains a lower probability. Trade represents reasonable dialogue. So no, I did not say trade would make war outdated and impossible - and Tuchman was not correct. In fact, in MacMillan's recent work, "The War That Ended Peace" only pollyannas ran around saying war was impossible and unlikely. In fact, most politicians and primary personalities felt war was inevitable. It was barely averted 2 or 3 times prior to 1914. There were limited and mild attempts to reach out across borders and find common ground. It was believed, incorrectly, that restrictions on arms were the best method to halt the war talk. But this was misguided because it either led to innovations which skirted the restrictions or outright ignoring them. As for bob sykes being a pessimist - maybe you, maybe you aren't. I have no idea. I'm 54 and while I see things in society that bother me and I find uncomfortable and disconcerting, I also see many things which are wonderful and uplifting. I believe these outweigh the negatives. I'm not an optimist. I'm a realist. Bad things happen all the time, unfortunate trends and uncomfortable ideas take root constantly throughout humanity's existence. But it's the unique ability of humanity to make things which are seemingly bad work in our favor. As a realist, I tend to be cautiously optimistic. Because declaring myself a pessimist means I just become part of the problem, rather than part of the solution.
#4.1.2.1.1
Bulldog
on
2016-05-02 09:04
(Reply)
http://cafehayek.com/2006/11/trade_promotes_.html
just one of many which support the POV. Remember, part of the reason the Soviet Union fell was because it was incapable of feeding itself. Trade was essentially necessary, and trade opened its doors to alternative points of view which slowly eroded its infrastructure of political stagnation and opposition to all things capital. China opened up for a variety of similar reasons. While we are still often having tense moments with these nations, the fact remains we are closer to having peaceful relations with them than we were 50 years ago, and much of that is due to trade. Consider the nations with whom we currently have limited trade relations, like North Korea. The more limited and restrictive our relationships, the more hostile the interaction.
#4.1.2.1.1.1
Bulldog
on
2016-05-02 10:04
(Reply)
QUOTE: Consider the nations with whom we currently have limited trade relations, like North Korea. The more limited and restrictive our relationships, the more hostile the interaction. The No Kos would be just as hostile were we to trade with them. Ditto for Iran. Recall how much 0bama has just given them. Look at Cuba, they're just there. Hardly a threat and we don't trade with them. It's the ideology, not trade that is the overriding factor. China is likely restrained by trade with the world but it could hardly be defined as free trade. And still they are aggressively staking out the South China Sea for themselves, consider Taiwan theirs, and are using intimidation tactics against our Navy. And let's not forget their unremitting cyberwarfare against the USA and the stealing of technology/intellectual property. Trade hasn't curbed any of that. I would consider all of the above to be hostile acts even if we are not shooting at each other. And what about the witch's cauldron the Middle East has become? Trade has nothing to do with it. Those people just hate each other. Invariably, when the calculation is made to go to war (for example Japan, Germany, the American South), the rationalization on trade is that the war will be over before the lack of trade really starts to cripple the economy. Nations always have and always will go to war when they consider it in their interest, trade not withstanding.
#4.1.2.1.1.1.1
feeblemind
on
2016-05-02 12:01
(Reply)
Trade has everything to do with it.
The Mid East is a cauldron for many reasons, and trade has actually made it more stable and predictable. If we were to stop trading with most of those nations, the problems wouldn't get better, they'd get much, much worse. Iran itself is what I'd classify as a 'special case'. I don't think we needed to do a deal with them, nor should we have. But in the event that we have, I don't see the massive downsides that others do. Most of the population there is predisposed positively toward the US. In the long run, numbers win, and they are more likely to be on our side than the Sunnis. As for North Korea, there's no doubt that's an unstable regime and too controlling to be of much interest to us at the moment (beyond defense). But if we were to open up trade agreements (though they have little to nothing we can use), there is undoubtedly a massive improvement likely to occur. Cuba needed us, we didn't need Cuba. Cuba opened its doors to us long ago...we kept them at arms length. As time goes by, we'll see improvements there. If China were trading more freely, they'd see more benefit and be less inclined to take what they want. They have already seen the huge benefits free trade bestowed on Hong Kong, and have used that to lever benefits for themselves, but on a more restrictive level. Their lack of free trade is what is driving their foreign policy, not the other way around. The cyberwarfare they engage in is industrial in nature, primarily, because they are still playing catch up. The size of their economy is huge, but it's a numbers game. On a per person level, they are still far behind the US. Let's also not forget we have done little to let them back down. Our own foreign policy has been too aggressive for too long. As a nation, we'd be better off returning to a neutral footing and stop being the world's policeman, and stop seeing threats around every corner. Threats exist. But they are not as numerous or as dangerous as our politicians make them out to be. We are a trading nation, and our focus on using trade as a form of war is what is hurting us today. The fact you pointed to the calculation of the cost/benefit of trade within the war rationalization shows exactly why MORE free trade is better rather than less. When you have more of it, the impact will be greater, faster.
#4.1.2.1.1.1.1.1
Bulldog
on
2016-05-02 13:37
(Reply)
1. Nope - basic resources are still required. Methinks this article was written by someone far removed from the actual sources of production for food/energy on which their elitist life is based. We have not yet found replacements for oil, water, food, and fiber - we've just got better at extracting/producing them. It's great that only 2 percent of the population now produces our food - freeing up manpower for other productive work - but if anything, the concentration of the population in urban centers makes them more vulnerable to supply lines outside their control. Let's not confuse added economic value - which is no longer resource-dependent - with basic life needs, which still are.
2. The pool of innovators is not limited to spoiled socialist American kids. It never was - much of America's reputation for innovation is based on the achievements of waves of hungry immigrants. Scottish, Irish, Italian, Jewish, Chinese, Korean, Indian. Et cetera. Now that much of the world has industrialized, we see levels of innovation coming from the East that challenge/exceed America, and see flashes of promise from places like India and Eastern Europe. In fact, one of the great disruptions caused by current technology is that the keys to this success is now accessible all over, not just to people who win the lottery by being born or admitted to America and other developed countries. Where does this leaves those spoiled young Americans? Dunno. But the only advantage they have over clever people in other parts of the world is the stability and freedom of the American political system, and they've been trained to sneer at/dismantle that. What happens when the ambitious Indian/Chinese/Russian programmer-engineer no longer feels the need to come to America to realize their dream - or worse, feels that American socialism is just as stifling to his dreams as, say, byzantine EU labor laws? I don't see innovation leading to much. I've seen several "best new ideas" articles and most of the "innovation" seems to be better video games, better spy helicopters, better iPhone stuff, better ways to bring eco fuel to only 1/50 instead of 1/300 or so as good as oil and coal . The only useful thing I saw was "meat on a stick" (eliminating the need to raise and slaughter cattle for a steak) which is as likely to gain a significant market share as the flying cars I read about in the 60's.
The innovation I see includes bloatware that "you must upgrade to" so you can have more security (a little) and far more useless capability that I lived without perfectly well yesterday; (I'll admit when my son first showed me an iPod, I pointedly rejected it because I didn't need to fill my head with music like a Beatles-maniac 1960's girl with a Sony transistor radio held against her head so tightly it seems she's trying to keep her brains from oozing out her ear); electric skateboards that explode, automated house appliances and devices that replace "up is on-down is off" switches with software compatible switches that require you to read an on-line, incomprehensible, poorly translated manual with more pages than a book you didn't read for high school English class that explain how you can set your lights to turn on at the midnight on Vernal Equinox of 2053 (instead of using a calendar and alarm clock) and require seven hours of study to figure out how to turn on a light now, while in the dark, with the dog barking to go outside. The innovation I see is more security on my computer at work, that stops, slows, and impedes my ability to do anything. Purchases are less intuitive to use, fail incredibly frequently, and just aren't worth the effort. But, it's hard to find the alternative "stuff." I bought a new dog tie chain the other day. I almost need pliers to unhook the dog from the tie out chain. Innovation would be a chain that worked as well as the one I bought 20 years ago, that didn't replace brass with cheap "brass-like" coatings that rust in 20 days in Fl humidity and salty air. In sum, I recall progress where my life was made better by things that worked, instead of complex crap that requires new hardware to work properly so we can spend more just to stay up. I'd like an update to iTunes that didn't crash and slow my computer because of new features I'm not certain I'll ever use because I'd rather be out enjoying my back yard or family, instead of spending hours at the computer trying to figure out if I want to take advantage of these new features I didn't ask for or need. When I get my affordable |