The Economics of Kindness Part 1
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Transcript of The Economics of Kindness Part 1
Guy DaunceyApril 2017
PART ONE
FOUR THEMES1.What is an Economy?2.Business, Banking,
Money3.Nature and Climate
4.Poverty and InequalityI am still developing this presentation:
much is omitted due to the constraints of a public presentation. – Guy Dauncey
1.What is an Economy?
What is the Economy? The Neo-Classical View
What is the Economy? The Neo-Classical View
Self Interest Homo Economicus
Rational, Self-Interested
Homo Economicus
The Economics of Self-Interest
Milton Friedman
“The world runs on individuals pursuing their
self interests. The great achievements of civilization have not come from government
bureaux.”
The 19th Century Economy: A Stable, Complex Machine
Economics: A science, Just like physics
The 20th Century Economy: A Stable, More Complex
Machine
The 21st Century Economy: A Stable, Hyper-Complex
Machine
The Economics of Self-Interest
“If any civilizationis to survive, it is the morality of altruism that men have to reject.”
Ayn Rand
Guy Dauncey 2013 www.earthfuture.com
Guy Dauncey 2013 www.earthfuture.com
GDP =GrossDepletion of the Planet
Guy Dauncey 2013 www.earthfuture.com
GrossDepletion of the Planet
Why?
To raise cattle, to make hamburgers
Guy Dauncey 2015www.earthfuture.com
Guy Dauncey 2013 www.earthfuture.com Chris Jordan
Guy Dauncey 2011www.earthfuture.com Smithore Dreamstime.com
CLIMATE CRISIS
December 2016
The last time the world was 3C warmer,
the sea level was 25 metres higher.
The Guardian, March 22, 2016
Vancouver 2 Metres Sea-Level Rise
Vancouver 20 Metres Sea-Level Rise
So if we’re not all rational and self-interested, what is our human
nature?
Sweet and Kind?
Or not so much?
Kind
Loving
Gossipy
Passionate
Selfish
Angry
Rational
Risk-TakerJealous
Mean
Visionary
Nurturing
The Economics of Kindness
%
The Economics of Kindness
%
The Economics of Kindness
David Sloan WilsonBiologist & anthropologist
“Selfishness beats altruism within groups.
Altruistic groups beat selfish groups. Everything else is commentary.”
The Economics of Kindness
Homo Economicus
Homo Amicus?
So What is the Economy? Let’s try again
The Eight Dimensions of the Real Economy
The Eight Dimensions of the Real Economy
Ecological
Wealth
The Eight Dimensions of the Real Economy
Ecological
Wealth
IndividualAgency
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural wealth
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural wealth
Communitywealth
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural wealth
Communitywealth
Publicwealth
The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural wealth
Communitywealth
Publicwealth
Privatewealth
Guy Dauncey, 2017
Ecological
Wealth
Trust
Future
Faith
in the
Cultural wealth
Communitywealth
Publicwealth
Privatewealth
The Real Economy: A complex adaptive system
made up interdependent humansin a dynamic living world
- Kate Haworth, The Doughnut Economy
Genuine Progress Indicator
Gross Domestic Product (GDP)
Today’s economy is divisive and degenerative by default.
Tomorrow’s economy must be distributive and regenerative by design
- Kate Raworth
Doughnut Economics: 7 Ways to Think Like a 21st Century Economist
We need NEW
GOALSfor our
economy
Full employment, jobs for all?Reduced inequality, social
prosperity?Increased happiness and
wellbeing?Harmony with nature?
COHESIVE CONSENSUS 0 = no resistance. 10 = complete resistanceLowest score = least shared resistance= most
cohesive
2. Business, Banking, Money
Typical locally-owned small businessCommitted to the community
Relationships matter
Typical large corporate businessCommitted to its owners and
shareholdersProfit maximization matters
1. Articulate a powerful vision2. Ideas are only as good as their execution3. World-changing innovation can come from anywhere4. Operate with integrity5. Build great products6. Have confidence7. Disturb the comfortable8. Know how to persevere9. Continuous learning is a priority10. Network and connect
Elon Musk’s Ten Rules for Business Success
• Recycle more money in the local economy• Conduct themselves more reliably,
accountably • Generate a stronger sense of local
identity • Owners and staff engage in more civic
activity • Give more to local charities
Compared to large corporations,
locally-owned businesses…
Green Business Certification
Green Business Certification
Jill Doucette
Benefit Corporations
Social Business
Benefit Corporations
Benefit Corporations in VancouverAquatic Informatics
Aroundsquare LtdBig Room Inc.Brix Media Co.
Climate Smart Business, Inc.Ethical Bean Coffee
Fairware Promotional Products.Flipside Creative
HootsuiteJunxion Strategy
Kent Employment LawLeverage Lab
Light Trail ConsultingLunapads
Mills Office Productivity
PyrrhaRealize Strategies
Recollective ConsultingRenewal Funds
RTOWNSaul Good Gift Co
Save On MeatsSES ConsultingSMAK Food Inc
soulpepperSPUD
Sustainability Television
Yulu Public Relations Inc.
An Economy for the Common Good
“Our economic system is upside down. Money has become a self-purpose rather than a means for what really matters: a
good life for all.” – Christian Felber
CO-OPERATIVE OWNERSHIP
Patrons and owners of the George and Dragon Pub,
Yorkshire, now a cooperative
One of 582 owners of ATX Taxi Coop
Austin, Texas
Mondragon, Spain
*
Network of 100 cooperative businesses
Philosophy of participation and solidarity
75,000
Mondragon wage ratios 1:3 to 1:9US Corporate CEOs 1:350*
(*Harvard Business School Study)
The 150 employee-owners of Chandos Construction
$400 million annual turnoverCertified B-Corporation
Recognized as one of Alberta’s Top Employers 2017
Employee Stock Ownership Plan (ESOP)
A Cooperative Economy
StrengthenEntrepreneurialism
Mentoring and Support for Business and Coop Start-Ups
Including Women, Youth, First Nations, Minorities
www.startupcommunities.ca
Train New Entrepreneurs
We need youth enterprise initiatives in all schools
Since their 2012 launch• 85,000 members, 400 business support providers• Mentored 20,000 entrepreneurs• Worked with 5,000 startup businesses• Facilitated development of 25+ entrepreneur co-working
spaces• Launched 20 startup community hubs across Canada• Mobilized $25m in investment and in-kind resources
Emilia Romagna, Italy• Population 4.4 million• $$$, top ten European regions• 32% self-employed• 76% work in small business with 4-5 workers• Italy’s 4th largest exporter• 400,000 enterprises• 7,500 cooperatives• Strong tradition of reciprocity, regional economy mutual support, financed by 0.4% levy on sales •Regional credit system with close ties to local enterprises• Lowest unemployment• Highest rate of citizen satisfaction in Italy
Businesses Cooperating Together
Elinor Ostrom
Elinor Ostrom’s Eight Principles for
Managing the Commons
Triodos, HollandThe World’s Greenest Bank
Social Banking
Vancity Credit Union
520,000 members$20 billion in assets
$5.5 million returned to members last year
Public Banking
40% of the banks in the world are Public Banks
AlgeriaAustriaBrazil
BulgariaCaribbean
ChileChina
ColombiaCosta RicaDenmark
Egypt
FinlandFrance
GermanyHollandHungary
IndiaJapan
MacedoniaMexico
New ZealandNorway
PolandRussia
SloveniaSouth Korea
SpainSweden
SwitzerlandSyria
Taiwan
Mission “to deliver quality, sound financial services that promote agriculture,
commerce and industry in North Dakota.”
“More profitable than Goldman Sachs, has a better credit rating than JP Morgan and Chase, and hasn’t seen profit growth
drop since 2003.
Meet the Bank of North Dakota,
the U.S.’s lone state-owned bank.
Return on equity (…) is 18.56%, about 70%
higher than at Goldman Sachs and J.P. Morgan.”
November 19, 2014
Re-instate the pre-1974 powers of the publicly owned Bank of Canada
to create money for positive public purposes
Responsible Investing
Socially responsible investing has outperformed the S&P 500 since 1992. (First Affirmative Financial Network)
Socially responsible investing has outperformed the S&P 500 since 1992. (First Affirmative Financial Network)
Canada Responsible Investment
Associationwww.riacanada.ca
Where can I find a socially responsible investment
advisor?
USASocial Investment
Forumwww.ussif.org
The ProposalThat over time, every business
and every bank becomes a Social Business
The ProposalThat over time, every business
and every bank becomes a Social Business
PHASE 1: 2017-2022. Encouraged as a goal. Praise and
Awards.
The ProposalThat over time, every business
and every bank becomes a Social Business
PHASE 1: 2017-2022. Encouraged as a goal. Praise and
Awards.PHASE 2: 2022-2032. Tax incentives. Public purchasing privileges and bid
requirements
The ProposalThat over time, every business
and every bank becomes a Social Business
PHASE 1: 2017-2022. Encouraged as a goal. Praise and
Awards.PHASE 2: 2022-2032. Tax incentives. Public purchasing privileges and bid
requirements PHASE 3: By 2032. All businesses must adopt social charter as a legal licensing
requirement, including annual certification.
“The process by which banks create money is so simple that the mind is repelled.”
- John Kenneth Galbraith
A. Is it printed by Central Banks, reflecting the quantity of gold in reserves?
B. Is it created by Central Banks out of social trust (aka “thin air”)?
C. Is it created by Private Banks based on their fractional reserves?
D. Is it created by Private Banks out of social trust (aka “thin air”)?
Public TRUST…
Public TRUST…Allows money creation…
Public TRUST…Allows money creation…Allows banking…
The Bank of Gandalf can create money out of thin air because of social trust.
Is this a smart redesign of a
complex problem?
Or a major loss of personal and social
trust?
Quantitative Easing
Quantitative Easing
$12.3 trillion globally$3.7 trillion in the US$110 billion in Canada
QUANTITATIVE EASING
QUANTITATIVE EASING
Quantitative Easing inflates housing prices
PEOPLE’S QUANTITATIVE
EASING
Useful innovation, speculative bubble, or tax-evasion scheme?
Guy DaunceyApril 2017
PART TWO
3. Nature and ClimateSee PART TWO