Monday, April 25, 2016

Seeding Prosperity - Why it matters

Why seeding prosperity is important, it is what facilitates life. Prosperous people are absent the need of government support, they enjoy better health and they contribute to more prosperity – prosperity contributing to more prosperity is a virtuous cycle. This is in no way a right or left with issue, this is about igniting the economy and ensuring an ever expanding source of fuel. The more people who can access capital and apply their respective talents and garner wealth as a result, the more people will be drawn upward; in sociology they call this “transcendence”. Why is transcendence important, because in the long term without it society stagnates, becomes decadent, and ends – in the short term it drives growth. The cycle is held up in perfect resolution with just a cursory review of history.

There are a number of contributing factors that inhibit transcendence. The most prominent of which is the inclination for established players in any given economic environment (market) to resist encroachment on their sources of revenue, this in combination with entrenched franchises is challenging. The concern is that by generally seeding prosperity that incumbents “wealth opportunity” will wane and with it influence. The opposite is true however, what will happen is that the rising tide will raise all boats, big and small, and as for influence, there will be a society wide buy in on the merits of the system.
There is a propensity for institutions to become tools of incumbent players, so the bigger institutions get the more concentrated influence over institutions becomes – government institutions are no exception, in fact they may be the worst. This comment is in no way a rebuke of government employees, it is a statement on the realities of institutional inertia – institutional inertia is a governmental, private sector and civil society reality. This is a phenomenon that is a product of the natural inclinations of people, which is exacerbated by the linear concentration of influencers associated with hierarchy – this is as mechanical as a lever and fulcrum and as inevitable as the sun rise. It will happen unless we take steps to ensure that we introduce disruptive processes into the phenomenon that is institutional inertia and the resulting reality of “social” or “economic” concentration. The joy in facilitating disruption and effecting transcendence is that you make everyone wealthier – in a prosperous society there is no requirement to tax wealth and no need for initiative killing redistributionist policy. 

In British Columbia, we use to have hundreds schools systems, now we have one, we use to have hundreds of medical systems, now we have one, we use to have hundreds of auto insurance providers, now we have one.  Due to this reality there has been massive concentration in political influence and the majority of people are outside the political process. Big Business and Big Labour hold sway in the political process in Canada, the majority made up of small business, artisans, farmers and other independents are in effect unrepresented; what’s worse however, is that there are no real political imperatives for policy for the maintenance and enhancement of the most valuable and dynamic sector of society.
We have to find ways to seed the economy, to facilitate the grassroots to drive growth. The first thing we must do is provision the environment that promotes action and wherever possible and mitigates the risk associated with the natural heuristics that occur in a market economy and or the rigours associated with *“creative destruction” – a positive phenomenon that can result in short term human discomfort. In a safe place people try things, some work and some fail, the more that happens the better for us all. So John Turner’s slogan, "free enterprise with a heart" sums perfectly what needs to be in place. The cost of failure low, the rewards for success high, in this sweet spot the mountain of technology that is now latent will come to action; the key is to make it happen here in British Columbia.

*Creative Destruction being the process of disruption ending one solution for another and or the    process where the market fails to accept an offering simultaneously accessing the market with a          competing offering

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