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Building the most vibrant economy ever imagined Ann G. Kramer, Ed. S Copyright 2011, Good 4U Inc. www.lifepuzzle.com What is an “economy”? Economics: the study of mankind in the ordinary business of life Alfred Marshal Describes how we manage life What is important to us Employment sectors/Wealth accumulation Major driver: shows focus of society Changes over time; becomes more complex Copyright 2011, Good 4U Inc. www.lifepuzzle.com Economic History Agricultural Economy Time frame:1600-1900 Major driver: management of the home Industrial Economy Time frame: 1850-1975 Major driver: consumerism (consumer ed sciences) Service/Consumer Economy Time frame: 1975--2010 Major driver: consumerism moving to intangibles Knowledge Economy Time frame: 2005-future Major driver: quality of life Copyright 2011, Good 4U Inc. www.lifepuzzle.com Economy is concerned with: Work/Employment sectors Markets—factories, industrial production Government—military, schools, federal, state, local Illegal—drugs, prostitution, crime etc. If you can’t find work in the Market or Government sector…..here’s where you go Copyright 2011, Good 4U Inc. www.lifepuzzle.com Economy is concerned with: Wealth & Wealth Accumulation Money, $$$$ Power Possessions Property Copyright 2011, Good 4U Inc. www.lifepuzzle.com Economic transitions in our lifetime: 1973 Oil embargo/Technology Cost of manufacturing goes up Expensive oil drives up costs Profits go down Outsourcing begins 1975-2000 Blue-collar Service jobs replace Lower wages • 1995—current White-collars jobs begin be outsourced too Dot.com Crash 2008 Recession Technology explosion Kodak—140,000 employees Instagram—13 This is not your grandfather’s world anymore! Copyright 2011, Good 4U Inc. www.lifepuzzle.com Where will we work? How will we live? It appears we can not consume our way out of crisis Unemployment is a challenge: U-6 is 11.6% (spring 2015) Consumption is down Most new jobs are low paying/not a living wage Technology has taken over— no need for humans to do much of the work of the previous generations KIND OF SCARY…. WILL YOU BE NEXT? Copyright 2011, Good 4U Inc. www.lifepuzzle.com 2015: Time for an Integrative economy? All economies change over time Agricultural: 1800-1900 Industrial/Consumer & Service/Consumer: 1900-2000 Service/Consumer (Knowledge): 1990-2010-Future INTEGRATIVE ECONOMY: Timeframe—2015 onwards Major driver: Quality of Life— Triple Bottom-line: People, Planet and Profits Copyright 2011, Good 4U Inc. www.lifepuzzle.com The Challenge: solving the 70/30 reality 30% will be well employed Could continue to see this % of well-employed individuals go down but right now this group is doing okay. 70% will not be well employed Low paying jobs Low intellectual jobs No jobs @ all Guaranteed Basic Income discussed Left on the sidelines. Copyright 2011, Good 4U Inc. www.lifepuzzle.com Integrative Economy— Taking the best from all the previous economies and permitting ourselves to add a new dimension. The only thing stopping us is the belief that we have to keep doing it the way we’ve done it. These are genuinely different times. In all previous economic transitions, as old jobs became obsolete, new jobs replaced them. This time, due to technology, less and less humans will be needed to do the work in traditional business and government work sectors--forever. We need new solutions… Copyright 2011, Good 4U Inc. www.lifepuzzle.com An Integrative Economy: 3 steps to achieve this next transition 1. Expand the way we measure the economy 2. Expand the number of employment sectors where people can work 3. Expand wealth accumulation options beyond money, power, property and possession Copyright 2011, Good 4U Inc. www.lifepuzzle.com #1. Expand Economic Measurements Agricultural economy Integrative Economy requires going beyond GDP No National value measurement Gross Domestic Product + “Core Economy”* (Local Community Capacity) Industrial/Consumer, Service/Consumer 1946 GDP introduced Quantity of Stuff measured Quality of Life measured *from Creating Wealth: growing local economies with local currencies., by Hallsmith & Lietaer Copyright 2011, Good 4U Inc. www.lifepuzzle.com Definition: an economy of family, neighborhood, kith and kin. Economists acknowledge that something like 4050% of productive economic activity takes place outside the government/market sectors. Edgar Cahn The “work” in the Core Economy is extremely necessary, yet it isn’t measured! Local Community Capacity Human Capacity Development Volunteerism Natural Environment Copyright 2011, Good 4U Inc. www.lifepuzzle.com # 2. Expand Employment sectors: Market Everything connected to unlimited production & growth Government Taxes pay for Administration, schools, military, public utilities—fire, roads etc. Illegal “Shadow sector” Drugs, underground economy, sex trade etc. As much money paying people to work here as in markets! Non-profits / NGOs in last 40 years became a significant employment sector Providing necessary services but not measured as “real work” like markets or government Initiated from market sector based on philanthropic gifting Funders now include both government and market sector organizations Fastest growing employment sector—10%+ Copyright 2011, Good 4U Inc. www.lifepuzzle.com Here’s what it could look like: Markets Integrative Economy's Government 4 Employment Sectors Local Community Capacity Copyright 2011, Good 4U Inc. www.lifepuzzle.com Illegal #3. Expand Wealth Accumulation options: Some Traditional $$, property, possessions, and power Sustainable/sufficient levels instead of more is better Reconsider‘insatiable desire’ New currencies/exchange options—beyond “monoculture-money/Federal dollar” Redefining ‘wealth’ (Economics of Wholeness) Relationships People, Community, Earth Local Community capacity/Volunteers Sharing economy/Volunteer Service registry Millennials—less about owning stuff Copyright 2011, Good 4U Inc. www.lifepuzzle.com Can this be done? Much is already in the pipeline #1. New measurements— ready to be implemented if we could get global agreement of what to use. Quality of life can be measured We have the technology to do it and it sets the stage for a far more vibrant economy! #3. New wealth accumulation options Millennials—currently largest population cohort is shifting away from strictly traditional wealth Sharing economy Bitcoins/alternative currency Co-operative business Lots of motivation for the 99% locked out of traditional wealth accumulation Copyright 2011, Good 4U Inc. www.lifepuzzle.com #2. Expand work sectors— this is the hard one! This requires a shift in perception Three major areas As we go from a quantity of stuff to a quality of life economy, then it is easy to recognize the value of the work done in this sector Once you make that shift, it is a no-brainer to add this work into the recognized employment sectors Volunteer Services Natural environment Human Capacity Development PLENTY OF WORK HERE! Copyright 2011, Good 4U Inc. www.lifepuzzle.com New economy needs everyone fully capable. This wasn’t always true: Through many economies, education was only for a few-Ag economy—education for 10% Industrial economy— education for 20% Knowledge—education for 30% Integrative—education for 90%! Whole Person/Whole SELF Self-responsibility Participating consciously in economy Proactive On-going, growing for a lifetime Copyright 2011, Good 4U Inc. www.lifepuzzle.com Volunteer Services—work sector & new wealth accumulation Work would not be done if not for volunteers Many Non-profit and NGO organizations Valuing volunteers Intrinsic reward $23.07 Federal, $21.04 North Carolina National Volunteer Registry Like Social Security: accumulate over a lifetime Social safety net for responsible actions Paid in transferable time Tradable for caring actions of a new volunteer Backed by the full faith and credit of each other Copyright 2011, Good 4U Inc. www.lifepuzzle.com Natural Environment Integration True Cost Accounting Compute the ‘value’ of the work done by the environment Closed Loop market production: zero emissions Every step of production attended to for waste management Waste turns into by-products, new services Copyright 2011, Good 4U Inc. www.lifepuzzle.com Local Community Capacity Work sector: Create businesses that hire Human Capacity Development Professionals: Why is this work important? An Integrative Economy will require humans who are fully capable of owning/taking responsibility for their lives while living in an ever-changing global environment Fully functioning Human beings don’t just happen Current work output ranges from great to horrible We must move from haphazard/chaos to highest quality/knowledgeable Copyright 2011, Good 4U Inc. www.lifepuzzle.com Integrative Community Ventures Inc: Human Capacity Development Professionals (HCDP) An Integrative Economy will require fully functioning human beings Currently most of this work is done outside the economic measurement and traditional work sectors. We have to change this Example business: Integrated Community Ventures Inc. Hires HCDP Work from home Networked in teams of 30 One mile walking radius Work focus: Children Children & Adults with disabilities Seniors Copyright 2011, Good 4U Inc. www.lifepuzzle.com Whole Person/Whole SELF— a Universal framework Human Capacity Development Professionals are trained in all 16 areas. Proficient in utilizing in their lives and teaching/implemen ting it for others Copyright 2011, Good 4U Inc. www.lifepuzzle.com Could employ millions! Could absorb a significant portion of the 70% who are currently under-employed or sitting on sidelines. HCDPs are employees They are well-trained professionals They work from their homes Their workload includes their children, children & adults with disabilities and seniors in need Work with local businesses in B2B relationships Integrated with Universities—research, education etc. Copyright 2011, Good 4U Inc. www.lifepuzzle.com Funding…ah, where do we get the money? When we measure economy differently it enables us to ‘fund’ differently When we expand the employment sectors; the necessity for funding LCC becomes obvious When we expand wealth accumulation options we can create innovative ways to assure a basic quality of life for all. Cooperatives make ever more sense Integrative B to B—we need each other Private investment Copyright 2011, Good 4U Inc. www.lifepuzzle.com We have done this before….. Agricultural economy transitions to Industrial economy 3 options available in 1905 1. Do nothing and let the current rollercoaster ride continue 2. Grow, grow, grow 1905: Leaders gather 13 cycles of recession/depression in the 1800’s Looking for solutions Instill insatiable desire in population Advertising industry explodes Citizens become consumers 3. Understand whole systems— economic, social and environmental and design new economy (from Whole Life Economics, Barbara Brandt) Copyright 2011, Good 4U Inc. www.lifepuzzle.com What did we choose? #2 1. Do nothing? No one wanted that 2. Build insatiable desire, unlimited growth and production system 3. Understand whole systems Looked like this would work forever—everyone wins In 1905, who could imagine running out of resources? Not actually possible in 1905 Didn’t have sufficient knowledge to implement a Triple bottom-line system Had we been there in 1905, we would’ve picked #2 too. Copyright 2011, Good 4U Inc. www.lifepuzzle.com Here we are again….. Transitioning from Industrial to Integrative economy We too have 3 options 1. Do nothing 2. Maintain consumer economy/insatiable desire 3. Build a whole system economy #1. No one wants that #2. No longer sustainable #3. Now possible Economic, Social and Natural systems Results in abundance for a few, scarcity for most Pressures on air, water, animal, plants, earth pushing to breaking point We have the knowledge, technology and capacity to make this happen Triple Bottom line makes sense Copyright 2011, Good 4U Inc. www.lifepuzzle.com An Integrative Economy: building the most vibrant economy ever imagined Meets the challenges of the 21st century High unemployment Ecological stress Income disparity—have and have not Great Recession transformed The next generation—living different than previous generation Different, not less Copyright 2011, Good 4U Inc. www.lifepuzzle.com Implementing an Integrative Economy Who will Lead the way? The United States is the best incubator Factors all three major systems into economic policy and structure Social Natural Business Transforms and includes Expands Economic measurements of success Expands employment sectors Expands wealth creation and accumulation options Copyright 2011, Good 4U Inc. www.lifepuzzle.com Our children are depending on us Using centuries of knowledge wisely = An Integrative Economy We have a choice To see the challenges before us Create a viable solution that works for humans and the planet. An Integrative Economy is such a solution. LET’S GET STARTED! Copyright 2011, Good 4U Inc. www.lifepuzzle.com