The Death Of Creative Destruction
Hey Jessentrepreneurs
The world is in a state of flux as we continue to push our inflationary monetary policy to the brink. When we broke away from gold in 1971, we thought we unlocked the keys to unlimited economic growth; we could create money out of thin air and buy and produce anything we wanted. Every country jumped on board, and every government now had near unlimited control over its people with this method.
Those who understood how inflation worked benefitted from it greatly and continued to trade debased money for assets that are finite and continue to do so and reap the benefits of it. This is why we see such levels of wealth concentration today.
Now that a system is on its last legs and we see a business, credit and economic cycle all coming to an end, governments are desperately throwing everything they can at it to keep it going, understanding that if they don't we will be in the worse depression the world has ever seen and they're trying to smooth things out.
The unseen losses of inflation become greater
One day we will look back on this time in history and hopefully we'll have learned our lesson and laugh about how we thought we could keep creating money and never have to pay the bills in a fiat/debt-based economy. Inflation or rather rampant, misused and inflation with nepotism creating cantillionaires is death by 1000 cuts.
As the economy gets better at producing goods and services with the help of technology instead of us all sharing in the improvements, most of the wealth is transferred to a set few. I'm not saying that Jeff Bezos and Elon Musk and the like don't deserve to be applauded for their efforts.
What I am saying is they are in a market where no one can compete with them to disrupt. We see major companies all over the world backstopped, saved by governments, invested in because they are listed and burning money to become profitable eventually.
Creating single points of failure
This business cycle concentrates wealth as it creates monopolies, and while Amazon is super convenient and Teslas are awesome in a deflationary environment, we'd have hundreds if not thousands of these companies all competiting for our money. All are trying to make it faster and cheaper at even more exponential rates.
In a deflationary economy, we would see constant creative destruction, with the real disruption that drives broad-based abundance for us all.
The wolf pit of business
We've created a world of too big to fail, and now we're stuck at a point where the small businesses that should be carrying the load are being destroyed for the sake of monopolies surviving.
Small businesses are nimble by nature, and they're waiting to pounce on any mistakes big businesses make. As big businesses scale, they cannot give customers the one-to-one attention we want and great service, and this is where small business keeps big business in check.
Now that we don't have this balance, we cannot see all the creativity lot by people who should be running a business but now opt for the safety of a paycheque as they all contribute to monopolising sectors of the economy.
What is seen and unseen
It's easy to see what we gain from these big companies, but the productivity and efficiency and creativity lost is something harder to identify, and the costs are surely in the trillions each year.
If we try not to be so smart and let the natural course of the business and financial cycle take its course, we would see much bigger gains overall. Until we get out of our own way, we'll never unlock the true potential of the human labour force.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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