From 600+ conversations with the world’s leading thinkers.
The easiest piece of advice to give, but the hardest to follow- is to not let yourself get swept up in the next bubble. You could have said that about tech stocks in the 90's, housing prices around the world in the early 2000's… but people always got swept up in them. The history of financial bubbles does not give cause for optimism.
The reality is, not every business model is designed for scalability. Some businesses don't necessarily need to scale to be successful. The key lies in intellectual property. Once you've developed a piece of IP, the cost of distributing it to one person versus a million is remarkably similar.
When you empower people economically, your social programmes go further. The idea that there is a stark separation between a social program that's sustainable and economic program that's a luxury doesn't fit the reality. When you join economic empowerment to social protection, you get double the benefit.
It certainly plays a much bigger role than was ever intended to. A number of financial institutions and contracts rely on LIBOR as the benchmark by which other rates are set. I don't think it was ever intended that LIBOR would play such a central role between so many institutions and contracts.
However, imagine living in a place where such financial avenues are virtually non-existent. Where hard work and ambition offer no promise of progress or escape from economic stagnation. This reality is stark for many.
To be a billionaire in America today is less a matter of merit than it is a matter of being at the right place at the right time, and being a beneficiary of a set of rules designed to benefit billionaires.
Academics, research analysts, and even regulatory agencies have recognized that today's markets are more liquid and less expensive than before the advent of HFT. This is no doubt due in part to the improvement in liquidity provisioning that has arisen from the better risk management that computers provide over human traders.
The only source of value in our business is the consumer's desire for the product. That desire is built on emotions ascribed to diamonds.
It's not that capitalism is failing, but rather that the organisation of capitalism is succumbing to wealth and power. People with extraordinary power and wealth will organise and enforce markets in such a way that it benefits their wealth and adds to their power- it becomes a self-fulfilling prophecy- a vicious cycle of more wealth and power.
We have to leave behind the myth that our economies are actually fit for the present that we understand, and the vision of the future we want to create. We need to redesign economics for our times.
The neo-liberal capitalist mindset has also been a huge contributor to loneliness. Since the 1980s, alongside Margaret Thatcher and Ronald Reagan, a new form of economics came to the fore which enshrined the pursuit of self-interest over the pursuit of collective good. That generated the mindset we see today- me first, dog-eat-dog, greed is good… that inevitably begets a world where people feel less connected to each-other, more atomised, and many ended up feeling marginalised and unseen.
During the twentieth century we saw consumption boom beyond the planets natural limits, beyond what the planet is capable of sustaining. Everything is connected, forest destruction is a major cause of global warming, climate change.