This is the transcript of my latest video on the new economic worldview:
SECTION 1 (starts at 0:00)
> enabling personal freedom and the pursuit of happiness
> or... ...how to indefinitely sustain a democratic society
SECTION 2 (0:15)
> since early on,... ...humans have gathered in communities... ...to succeed.
> cities and states were created... ...to provide a platform... ...for a better life.
> governments have evolved,... ...providing security... ...and public order.
> democratic societies have emerged,... ...standing for individual freedom... ...and the pursuit of happiness.
> nevertheless,... ...an important question remains.
> can a democracy be sustained?
> the answer, it turns out,... ...ultimately depends... ...on the economy.
SECTION 3 (1:10)
> driven by natural impulses,... ...humans generate unique and dynamic... ...structures of needs.
> the behaviors employed... ...to generate needs... ...form a continuum.
> at the top,... ...the buyer updates... ...a unique and overarching need... ...that describes a successful existence.
> at the bottom,... ...the buyer generates... ...a multitude of common needs... ...that match existent offerings.
> the clearer the need,... ...the lower its position... ...on the continuum.
> accordingly,... ...all economic transactions... ...can be represented... ...on the continuum.
> furthermore, an economy... ...can be represented,... ...showing transactions... ...taking place over time.
> nevertheless,... ...there is order in disorder.
SECTION 4 (2:25)
> within the same community or market,... ...buyers tend to have similar behaviors... ...relative to a particular need... ...and the matching offering.
> such offering and market... ...tend to form... ...a lasting... ...virtual business space.
> this space or microcosm... ...is called... ...tofmos.
> all transactions within a tofmos... ...appear clustered... ...on the continuum.
> furthermore, the cluster is persistent,... ...moving lower... ...as knowledge about the offering... ...accumulates over time.
> this process is known as... ...the commoditization... ...of the offering relative to the market.
> tofmos commoditization... ...can also be used... ...as a more concise term.
> every economy, then,... ...can be represented... ...as an ever-changing collection... ...of commoditizing tofmos.
SECTION 5 (3:43)
> during commoditization,... ...the characteristics of a tofmos... ...change.
> the number of buyers... ...and, thus, the total revenue... ...increases.
> the prospect of growth... ...attracts vendors... ...and entices them to persist.
> it is generally easier to join... ...a commoditizing tofmos,... ...than to create a new one.
> as a result,... ...every economy... ...will naturally tend to bunch up... ...toward the bottom of the continuum.
> in other words,... ...an economy's share of revenue... ...that comes from commoditized offerings... ...has a natural tendency to increase.
> so, what... ...does that mean... ...for a society?
SECTION 6 (4:47)
> as an economy bunches up,... ...business practices... ...that are specific to commoditized spaces... ...become increasingly popular.
> higher levels of standardization... ...enable... ...higher levels of efficiency.
> outsourcing,... ...mergers and acquisitions... ...become widespread.
> the number of low-skill jobs... ...increases disproportionately,... ...leading to rising unemployment.
> although the economy is growing,... ...the overall wealth becomes... ...increasingly concentrated.
> a widening share of the overall wealth... ...migrates toward... ...a shrinking segment of society.
> at the same time,... ...more and more people... ...see their economic power diminishing.
> eventually, this natural development... ...becomes a threat... ...to the current social order... ...and, thus, democracy itself.
> so, what... ...should a society do?
SECTION 7 (6:05)
> once bunched up,... ...economies are also prone... ...to stay that way.
> the natural drive for maximization... ...tends to favor tofmos... ...that commoditize fast.
> moreover, societies... ...tend to sustain and create... ...more commoditized tofmos.
> governments tend to intervene... ...to help existent businesses... ...and to create more public projects.
> in short, societies are predisposed to evolve... ...into welfare systems,... ...which would encroach on individual liberties.
> nevertheless,... ...by pure luck, an economy... ...can debunch itself.
> a wave of new offerings,... ...creating many tofmos high on the continuum,... ...could emerge at any time.
> also, natural disasters... ...and wars... ...can swiftly debunch an economy.
> fortunately, though,... ...a less destructive... ...and more deliberate alternative... ...is available.
SECTION 8 (7:24)
> to sustain democracy,... ...a society must strive... ...to prevent its economy... ...from bunching up.
> it must constantly push... ...for new tofmos... ...that are positioned high on the continuum.
> new tofmos... ...that are based on new offerings,... ...rather than new markets,... ...must be encouraged and supported.
> at the same time,... ...the society must constantly ensure... ...that tofmos evolve and disappear freely,... ...protected from manipulation.
> in short,... ...to achieve enduring success,... ...a democratic society must create an underlying system... ...to keep its economy perpetually debunched.
SECTION 9 (8:20)
> the end
> or... ...the beginning?
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