It is an old economy that is dying, and it is the sound of the death throes and squalls of agony from that economy that is keeping the Harvard Business School Deans, Australian property spruikers, and European governments up at night.
I have written quite a lot on why high house prices are not good for innovation (thus growth, and thus economic wellbeing and equity).
Trade.
The economic problem is this: Trade makes people better off.
The social problem is: Monopoly capitalism and large ‘propped up’ institutions make no-one (collectively) better off. And this is what we have had.
Needed: 1 Middle Class
The Ford period of mass-production was based around the insight of creating larger wealthier consumer markets. By paying higher wages, people could afford the company’s products. i.e. cars.
Credit is a poor substitute for a middle-class. Consumer Credit or Mortgage Re-draws just kick the can down the road, and max-out the grand-kids credit card.
Which is fair enough. Perhaps we only get a ‘good decade’ (or less) every so often. The ‘good old times’ were never so ‘good’. (Except a few years here and there).
Answer.
So we must build an innovation economy, because the rules of the game are changing.
Just some thoughts…
Your Innovation Economy Today! Hobby to Killer Product
Now what are you going to build today?
How about you turn a hobby into a killer business… but remember, think about distribution first. How can you get your killer product to market?
Keep innovating,
Christopher Hire
