Thursday, August 12, 2010

Prelude to Goodwill Capitalism

For too long, people have embraced money as a final solution, even refusing to look for alternatives because most are too busy chasing it while those who have it dont want to let it go...
Click here to go directly to the latest blog entry in this series

  • Capitalism, or any other "ism" for that matter, has never really lived up to their promise. The fact that about 25% of the world population is still living in abject poverty earning less than $1.25 a day and many more living in "moderate" poverty, is a testament to that fact. Capitalism has worked out to be the best among the worst, but it is still fundamentally flawed, in that, its metrics are based on a scarce entity - wealth in the form of money. There is just not enough money in the whole world to take care of everyone's needs.

  • As life expectancy and population increases, demand for life sustaining products and services increases. Traditional laws of supply and demand for pricing cannot be applied without adversely impacting life and quality of life itself. Inter-generational gap widens. While one generation feels entitled, the other generation feels exploited. Social Security and Medicare and Medicaid systems are solutions that will quickly run out of money unless an alternative and more viable solution is found.
  • In the midst of all this, there is an abundance of another type of resource that is rarely monetized - and that is the human capital in the form of Goodwill. Unlike money, there will always be enough goodwill for everyone and more.
  • Goodwill Capitalism is proposed as a parallel economy to build wealth and conduct commerce in terms of human capital and goodwill. This leaves the free market economy, as we know it today to build wealth in terms of money and property.

  • Just as money is the currency in the traditional market economy, Goodwill Credits or GeeCees, as we will call them from here on, will be the secondary currency in Goodwill Capitalism, in addition to money.
  • Goodwill Capitalism will be focused around economic activities that are essential to guarantee the basic necessities of life (Life's Essentials) for every living person, without exception.
  • In the current system, revenue generating activities are rewarded with money and other essential but non-revenue generating activities are rewarded with certificates, medals and honor. But only money can guarantee food on the table, treatment for illnesses and a sound education. Goodwill Capitalism is set up to reward people and activities that are essential for betterment of the social fabric even if they do not directly contribute to revenues.
  • Finally, for those of you who are familiar with Keynesian Economics, you can think of Goodwill economy to buffer the impact of animal spirits in the traditional but "rationally driven" money based economy.
Technology has changed the way we live. It has changed the way we do business....well...not completely, not yet... This is covered in the second post of this here to learn more on Goodwill Capitalism of the series

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