The Economy

Knowledge Horizon

Flat Growth | Idiosyncratic Business Models | Freeing Up Intelligence | Freeing Up Regulation

Flat Growth

a. sum of particular circumstances

A distribution tails add up until infinity.
We can achieve greater growth sideways.
We can allocate opportunities rather than inflate and burst businesses.
Less in front of us is more on the horizon.

Global Competitiveness reports of the World Economic Forum showed:

Economies with high social mobility are also more competitive.

Social mobility is measured in a number of generations by the OECD.
It takes decades for low-income families to reach average income levels.
There is large room for improvement and the reward is compelling.
Economic success of a country is tied to the ease of redistribution.
How could it possibly work?
Borderline welfare between aid and dependency is another dilemma.
What is needed is structural empowerment instead of submission.
Their own success preoccupies empowered and knowledgeable individuals.
They work out the details of solutions for dispersed impediments.
The potency to facilitate could be given to atomic economic agents.
We maintain a type of superior knowledge to the institution governing us.
Hayek points out the underlying principle;

in the third part of the already mentioned publication:

practically every individual has some advantage over all others in that he possesses unique information

The individual possesses:

the knowledge of the particular circumstances of time and place

Mail used to be too slow to pool this knowledge together:

the method by which such knowledge can be made as widely available as possible is precisely the problem to which we have to find an answer

War had just been resolved when the paper was published.
Last World War II surrender occurred on 2 September.
The IT problem declared above has arguably been solved.
But the global war-ming comeback did not alleviate problems since 1945.
It remains the process to enable the informed mental work of individuals;

stated as, while talking about a random man and with added highlights:

he possesses unique information of which beneficial use might be made, but of which use can be made only if the decisions depending on it are left to him or are made with his active cooperation

Idiosyncratic Business Models

b. "fit for purpose" value chain

The argument proposes that added value could be conditionally released.
The delegation of decisions relevant to the individual unlocks growth.
However, the decision scope of delegation is highly debatable.
It can be derived from the analysis of obstacles.
We noted earlier the rigidity of public services.
They are constrained by the mandate to administer one system for all.
A value chain designed for a company idiosyncrasies gains efficiency.
Both the administrator and the operator should benefit.
It is conceivable that bespoke administration could yield greater returns.
Business rules themselves have to be delegated.
Digital nomads are revitalizing the knowledge economy desert in a sandbox.
Mental work misses composable business processes to thrive anywhere.

Freeing Up Intelligence

c. constrained mind

Research has successfully measured the invisible untapped value.
It confirmed that we do not make the most out of everyday knowledge.
Sendhil Mullainathan and Eldar Shafir showed in "Freeing Up Intelligence":
effects of cognitive taxes on the quality of decisions and mind bandwidth.
Mental capacity is badly impacted by preoccupation, in any scarcity form.
It corroborates the potential to create thriving environmental conditions.
Lateral interventions are designed to disperse stress at friction level.
They substitute needs with local resources, flexibility and expertise.
Actors become aware and handle issues in a specialized intermediation.
Such systemic agility is only a theoretical model because of overheads.
Rigid regulations externalize processes of the assembly line and protocol.
Bureaucracy disintegrates local value and creates scarcity with red tape.
Sad truth is that an anxiety-inducing world brings about mass control.
Minds occupied by destitution are helpless.

Freeing Up Regulation

d. liberating structures

Lean and special-purpose interfaces handle impotent micro-contributions.
They cannot, free and for free, legislate or finance narrow services.
There is a lot to win in the establishment of a free regulatory zone.
It can reliably respond to administrative demands with a public ledger.
Risk is minimal.
Narrow services do not leave much room for abuse.
Every transaction is tiny and traceable to a micro-contribution.
Value is generated, and not channeled, in an IT system.
It is not going to finance terrorism unless misappropriated later.
A tractable fear should not override making money from original purposes.
A currency amount can be tied to a public utility represented by tokens.
More effective regulations would articulate utility rather than identity:
the what, the use and abuse; rather than the who, the poor and the rich.
"Know Your Client" is only necessary for progressive tax liabilities.
There is no need for it in an open and fair system taxed at the source.
Mass surveillance should not burden people looking to make a living.
The regulatory weight is only sustainable to corporations.
Freelance programs have eased but there is no middle ground to grow.

A bit of data is a drop in the economy.
An administration made of fiber optic cables charges a gigabyte per bit.
It creates scarcity where others create value.