After the Great Recession of 2008, a ground-shaking event – this became obvious. Something had to be done to fix the Economy – but no fixes were in sight. Perhaps a radical overhaul would be necessary – but no one had any idea what that would be either. If all else failed, perhaps a review of what happened to us, how we got here – would help.
Big Business was a necessary product of Industrialization – and produced riches for a few and poverty for the rest, with not much inbetween. Eventually, after some violent struggles, it was forced to become better for its workers – and an affluent middle class evolved in the developed countries – but not in the undeveloped countries – in the global South.
But late in the last century, these advantages were reversed as Big Money wrecked the economy – and produced Income Disparity again. It has become obvious, once again, that Government has to have a bigger control of the Economy – but Business has become global, with no global governance to control it. Is there any solution to this?
Perhaps so, with the introduction of financial technology – fintech. Which does have global impact. It makes the Economy more efficient – and gets rid of the excessive profits that Big Money has enjoyed.
Consider the situation now – I can take my credit card to the nearest ATM, and get cash without entering a bank. All this was an advance in financial technology that didn’t exist fifty years ago. We consider this perfectly natural – and cannot imagine being without it – when there is nothing natural about it. It uses artificial money entirely. There is a downside, however – all this free credit has encouraged a lot of debt – more, perhaps than be sustained.
Fintech has benefitted from the invention of imaginary money – personified by BitCoin – that bankers everywhere are hastening to emulate.
Something else happened – the Startup economy. Where companies are getting rich (very rich) by providing new services – Facebook being the outstanding example.
The average person, however – has no awareness of this at all – and continues to live in the 19th Century. Progress has left them in the dust of the past – with a permanently declining income.