While I do literally mean the actual dinosaurs, there is also a lesson in the answer for the metaphoric dinosaurs that big companies can become.
“A giant meteorite wiped out the dinosaurs” is the catch phrase. But have you ever wondered “why the dinosaurs, when so many other animals survived?”. The alligators survived, fish survived, mammals survived, even other reptiles survived, and even frog species that seem so sensitive to any change in environment survived that meteorite.
So why the dinosaurs? And what is the lesson? These answers after first some background and myth-busting. Continue reading
7 trillion looks like a typo, but no, the maths shows that either by continuing the actual global population growth levels typical the 20th century, or achieving 2% per year or far less than what is currently happening in Nigeria, the maths produce this number in a relatively short time!
A key theme of this blog is that, while population growth is no longer the threat that it once was, economic policy has yet to adapt to the slowing in population growth. While population growth has slowed since the 20th century, growth is not at 2% as some dangerous people advocate, and all the world is not like Nigeria, it is still worth understanding just how quickly things can escalate and not take for granted the slowing population growth that is both happening, and needed, to avert crisis.
Does it feel crowded now? Can you imagine Earth inhabited by not 7 billion (7,000,000,000) humans, as we have now, but 7 trillion (7,000,000,000). That would be one human for every 3.3 meters x 3 meters of habitable land on the planet (calculation below). Around 10 square meters allocation per person to live, grow food all of one food and that is without allocating any wilderness for other living things or trying to allow space (corridors?) to move outside your own space. This is a level we would reach if were able to continue peak 20th century population growth rates.
Summary: Most of us now live under ‘finite world economics’, where population growth results in a smaller share of wealth for each individual and the majority of the population, but increased revenues for Governments, nationwide businesses and multinationals who gain revenue from the entire population. The rich win, the rest suffer.
The now finite World
When Christopher Columbus set sail for America, no one had a world map, doubt about a map the included America. When Captain Cook ‘discovered’ Australia, as it approached the year 1800, no civilization knew where all the land on Earth was located. By 1900, humans knew where all the land was, but still had not explored all that land. Now (2017 at the time of writing), we basically know where all the land is and have even allocated ownership and mineral rights of all the land. Our world is now finite.
The post explores the ‘finite’ world concept, then discuss each of the two dynamics resulting in the widening of the gap between rich and poor. Continue reading
The current wealth distribution system is an already a broken system about to face severe attack. As discussed in Robots & Job Terminators, the role of employment is set to change.
On engadget, the post How will you survive when the robots take your job? outlines the ‘basic income’ proposal, as put forward by many in the tech industry and being experimented with in Canada, Finland and the Netherlands. This articles provides a great starting point and conveys the basic idea and if unfamiliar with the idea it makes sense to read that article first. This post is about looking further, in terms of thoughts about what else should change if a ‘basic income’ is introduced and what would be needed to make such an idea work. What would such a measure cost, and what would be the impact on society of a total package, of a ‘basic income’ together with a logical set of policies to create a total package? Continue reading
As explained by ‘Alan Kohler’ of the ABC, the record trade surplus is largely due to “A huge rebound in iron ore, coal and gold exports delivers a record trade surplus of $3.5 billion in December, providing a big boost to national income.”, with no proportional increase in imports.
I suggest an analysis of the impact on the Australian economy is reason for people around the world to consider the impact of automation.
Back in 1986, the movie Highlander was released. It was actually sufficiently successful to inspire four sequels, plus spin offs and even a reboot. Something in the original clearly stuck a chord, and the tagline and concept ‘in the end there can only be one’ could be part of this. The plot centres around a small group of individuals, immortals, who become ever stronger by defeating ‘competitor’ immortals in mortal combat. The immortals all seem have a share of power. Defeat another immortal and grow stronger as the victors gain the power of the vanquished, until only one immortal remains, and the one remaining will hold all the power. So how closely does the ‘rules’ of the highlander actually match the ‘rules’ for competitor companies?
How accurate is the analogy? Continue reading
It was a reference to ‘trickle down economics’ that started me on this thought path. The proposal that simply allowing the wealthy to become even wealthier could generate additional wealth that in a flow on process will trickle throughout the economy and result in everyone being wealthier. Yes, even Wikipedia seems to largely discredit the idea, but it is still pushed by various politicians. Cynics may point out those same politicians need to keep their wealthy backers happy in order to fund their re-election, but surely their must be some truth to the idea or we would not vote for them anyway?
Ok, here is my conclusion: the wealthy get wealthy by gaining a small share of wealth from each member of a large population. To get wealthier, they require either a larger share from each individual, or a larger population. Continue reading