Building the most vibrant economy ever imagined Ann G. Kramer, Ed. S Copyright 2011, Good 4U Inc. .

Building the most vibrant economy ever imagined

Ann G. Kramer, Ed. S

Copyright 2011, Good 4U Inc. www.lifepuzzle.com

Presentation’s Key Themes: An Integrative Economy is on the horizon

“Knowledge” will be a primary asset of its success.

Quality of Life will be its major driver

Implementing an Integrative Economy means changes and adjustments New economic measurements

New employment sectors

New wealth accumulation options


What is an “economy”?

Describes how we manage life

What is important to us Employment sectors Major driver: shows focus of society

Changes over time; becomes more complex

Economics: the study of mankind in the ordinary business of life

Alfred Marshall


Agricultural Economy Time frame:1600-1900

Major driver: management of the home (home economics)

Home & community Enough to get by

Industrial Economy Time frame: 1850-1975 Major driver: consumerism (consumer ed sciences)

Expansion of manufacturing

Unlimited production and growth meant success

Agribusiness replaces small farms

Economic History


Service/Consumer Economy Time frame: 1975--2010 Major driver: consumerism Consuming intangibles (services)

Investments: Finance, Insurance, Real Estate

Medical and Health Care Entertainment & Travel

Individual wealth and competition valued

Decline of industrial manufacturing Continued decline of family farms; consolidation of agribusinesses

Globalization in all sectors

Economic History


Knowledge Economy Time frame: 2005-future Major driver: quality of life Information acquisition and growth Knowledge as a tool and resource Quality of life; cooperation valued

Continued decline industrial farms & manufacturing

Local economy grows Small businesses Services are growing; many are NG

O’s and Non-profits

21st Century….


Economy is concerned with: Work/Employment sectors

Markets—factories, industrial production

Government—military, schools, federal, state, local

Illegal—drugs, prostitution, crime etc. If you can’t find work in the Market or Government sector…..here’s where you go


Economy is concerned with:Wealth & Wealth Accumulation

Money, $$$$PowerPossessionsProperty


Transitions in our lifetime: 1975 Oil embargo

Cost of manufacturing goes up Example: expensive oil drives costs

1960 1975 2006

$10 $40 $100

Profits go down


The Solution to Declining Profits

Less expensive employees reduces costs; increase Profits

Profits decline

Outsourcing begins in early 80sCopyright 2011, Good 4U Inc.

www.lifepuzzle.com

Service/Consumer Economy Emerges

1975-2000 Blue collar production outsourced

Service jobs replace manufacturing jobs Lower wage for many Services: retail, real estate, financial, medical, entertainment, and travel


A second transition begins…1995

1995-2010 White collar jobs begin declining, too High unemployment overall (2000 Dot Com crash) Largest income disparity since Great Depression

Have and have nots “Knowledge” becomes primary asset for employment High paying—access to Knowledge (25% of jobs) Low paying—delivery of Service (75% of jobs)

Uncharted territory Does not fit Consumer/GDP model

Grow, grow, grow harder to maintain Environmental challenges—resources depleted Huge increases in Non-profits and NGO’s


In 2008 the Economy Falters 2008 Great Recession

15 million unemployed Jobless recovery predicted

Wake up call After 25 years of outsourcing jobs overseas, both blue-collar and white collar jobs are gone.

Middle-class decimated

Everyone is confused How do we get the economy going again?

Restart the Service / Consumer economy?

Consider some new approach?


The Government efforts to restart economy

$700 billion to bail out the “Too Big to Fail” banks (7.7 Trillion by Federal Reserve)

Auto Industry rescue package $800 billion Stimulus package Cash for Clunkers

Real estate: first time home buyer credits of $8,000/$6500

Interest rates down to 0% Hints of deflation: sales on everything!

Nothing seems to work!


2013: The next economy is here? All economies change over time

Agricultural: 1800-1900 Industrial/Consumer & Service/Consumer: 1900-2000 Service/Consumer (Knowledge): 1990-2010-Future

It appears we can not consume our way out of crisis Unemployment is up Consumption is down Cheap supplies and resources — gone Natural Resources — minerals and water depleted (along with oil!)

Earth exhausted: air, water, land Technology has taken over— no need for humans to do much of the work of the previous generations

We suggest it’s time for an Integrative Economy


We’ve done this before….. Agricultural economy:

Transition to Industrial economy 1905: Leaders gather 13 cycles of recession/depression in the 1800’s

Looking for solutions

3 options available in 1905 1. Do nothing and let the current rollercoaster ride continue

2. Grow, grow, grow Instill insatiable desire in population

Advertising industry explodes Citizens become consumers

3. Understand whole systems—economic, social and environmental and design new economy

(from Whole Life Economics, Barbara Brandt)


What did we choose? #2 1. Do nothing?

No one wanted that 2. Build insatiable desire, unlimited growth and production system Looked like this would work forever—everyone wins

In 1905, who could imagine running out of resources?

3. Understand whole systems Not actually possible in 1905

Didn’t have sufficient knowledge to implement a Triple bottom-line systemHad we been

there in 1905, we would’ve

picked #2 too.


2008: Here we are again….. Transitioning from Industrial to Integrative economy

We too have 3 options 1. Do nothing 2. Maintain consumer economy/insatiable desire

3. Build a whole system economy Economic, Social and Natural systems

#1. No one wants that #2. No longer sustainable Results in abundance for a few, scarcity for most

Pressures on air, water, animal, plants, earth pushing to breaking point

#3. Now possible We have the knowledge, technology and capacity to make this happen

Triple Bottom line makes sense


Beginning stages of an Integrative Economy (2010)

Where are people successfully employed? Medicine

Hospitals, Pharmaceuticals Technology

Apple, Microsoft, AT&T Arts/Entertainment

Disney, Pixar Travel

Eco-tourism Education

Colleges, all levels Local Food Non-profits/NGOs Green/renewable industries

Early adopters Knowledge-driven careers

Creativity minded people

Minority of population

Majority of people remain attached to old Industrial & Service / Consumer economies They are losing jobs Many of those jobs are not coming back


The short-lived Knowledge economy is the bridge to an Integrative Economy

An Integrative Economy will be “Knowledge” driven: Knowledge is a product: A resource like oil. The one who owns the “knowledge” can sell it. An example: Consulting /Experts

Knowledge is a tool: Like Software or a shovel. It helps you be creative with your knowledge but by itself it doesn’t do anything without the person picking it up and using it.


An Integrative Economy Transforms into a new way of living for the 21st century Builds from the best of each previous economy Adds new elements to the whole economic picture

Changes the focus and values of our economy Includes parts of all the previous economies along with a new Knowledge-driven sector Agricultural / self-sustaining Industrial / consumerism Service / consumerism Knowledge / human capacity development


Three things have to happen to enable an Integrative Economy:

1. Change the way we measure the economy GDP is too limiting

2. Broaden the number of employment sectors that people can work in to support selves/family

3. Expand our vision of wealth and wealth accumulation beyond money, power, property, possessions.


#1 New Economic Measurements Agricultural economy No National value measurement

Industrial/Consumer, Service/Consumer 1946 GDP introduced Quantity of Stuff measured

Integrative Economy requires going beyond GDP

Gross Domestic Product +

“Core Economy”* (Local Community Capacity)

Quality of Life measured


*from Creating Wealth: growing local economies with local currencies., by Hallsmith & Lietaer

"Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product ... if we should judge America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.

"Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans." Robert F. Kennedy Address, University of Kansas, Lawrence, Kansas, March 18, 1968


New measurements: It’s happening!

“From April 2011 we will start measuring our progress as a country not just by how our economy is growing, but by how our lives are improving, not just by our standard of living, but by our quality of life. We’ll continue to measure GDP as we’ve always done, but it is high time we admitted that, taken on its own, GDP is an incomplete way of measuring a country’s progress.”

David Cameron Prime Minister of Great Britain

“Looking ahead, [Chinese] party officials have indicated that their next five-year plan, China’s 12th, will focus on the quality of economic growth—how it affects people’s lives—rather than the quantity.” From “Shop China Shop”, NY Times magazine November 2010


# 2. Broaden Employment sectors: Current employment sectors

Market Everything connected to unlimited production & growth

Government Taxes pay for Administration, schools, military, public utilities—fire, roads etc.

Illegal Drugs, underground economy, sex trade etc.

As much money paying people to work here as in markets!

“Shadow” Non-profits / NGOs in last 40 years became a significant employment sector

Providing necessary services but not measured as “real work” like markets or government

Initiated from market sector based on philanthropic gifting

Funders now include both government and market sector organizations

Fastest growing employment sector—10%+



Current employment sectors

Non-profits/NGOs – “Shadow” employment Sector

Need to bring organizations out of economic “shadows”

Organizations doing “Core Economy*” work Social and environmental needs that neither government nor markets addressed

In the last 25 years the number of organizations doing this work has steadily increased

Most of this work is not accounted for in GDP

Usually initiated and funded from private market sector as a“philanthropic cause”

Eg: Goodwill, Energy Trust, United Way, Sierra Club



When we expand our economic measurements it enables us to create this new employment sector: Local Community Capacity. As a stand-alone sector—each community can determine its needs for the work that falls in this sector.

Building New Employment sector: Local Community Capacity—LCC

“Shadow” sector enables transition to Integrative Economy

Non-profits, & NGOs provide a significant amount of work for new economy: Quality of Life work….

Human Capacity Development

Social Benefit /Volunteerism

Environmental Sustainability

This is the challenge before us:

How do we make funding Non-profits/NGOs not dependent on Market & Government sectors?

New Economic measurements Recognize “Core Economy” in new employment sector: LCC

Human Capacity Development Volunteer Services Natural Environment integration

New Wealth accumulation options

This is the challenge before us:

How do we make funding Non-profits/NGOs not dependent on Market & Government sectors?

New Economic measurements Recognize “Core Economy” in new employment sector: LCC

Human Capacity Development Volunteer Services Natural Environment integration

New Wealth accumulation options



Within the Local Community Capacity employment sector are three distinct areas where people might work.

Core Economy:

Local Human Capacity Development Human Capacity Development organizations

Major employers for the future Highly valued salaried work Professional model for local community engagement

Training provides high functioning employees—Infrastructure of an Integrative economy

Many NGOs and Non-profits working now

Non-profit “corporation” model Integrative Community Ventures (ICV) Pilot project to create replicable model


Volunteer Services Work would not be done if not for volunteers

Many Non-profit and NGO organizations Valuing volunteers

Intrinsic reward $20.85 federal, $17.79 Oregon

National Volunteer Registry Like Social Security: accumulate over a lifetime

Social safety net for responsible actions Paid in transferable time

Tradable for caring actions of a new volunteer Backed by the full faith and credit of each other


Natural Environment Integration True Cost Accounting

Compute the ‘value’ of the work done by the environment

Closed Loop market production: zero emissions Every step of production attended to for waste management

Waste turns into by-products, new services


New Wealth Accumulation options:

Some Traditional $$, property, possessions, and power Sustainable/sufficient levels instead of more is better

Beyond ‘insatiable desire’ New currencies/exchange options—beyond “monoculture-money/Federal dollar”

Redefining ‘wealth’ (Economics of Wholeness)

Relationships People, Community, Earth Local Community capacity/Volunteers

Divergent/Convergent thinking Creativity/Innovation


Implementing an Integrative Economy Who will Lead the way?

The United States is the best incubator

Factors all three major systems into economic policy and structure Social Natural Business

Transforms and includes Expands Economic measurements of success

Expands employment sectors

Expands wealth creation and accumulation options


An Integrative Economy: building the most vibrant economy ever imagined Meets the challenges of

the 21st century High unemployment Ecological stress Income disparity—have and have not

Great Recession transformed The next generation—living different than previous generation

Different, not less


Our children are depending on us Using centuries of knowledge wisely = An Integrative Economy

We have a choice To see the challenges before us

Create a viable solution that works for humans and the planet.

An Integrative Economy is such a solution.

LET’S GET STARTED!


Building the most vibrant economy ever imagined Ann G. Kramer, Ed. S Copyright 2011, Good 4U Inc. .

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Transcript of Building the most vibrant economy ever imagined Ann G. Kramer, Ed. S Copyright 2011, Good 4U Inc. .