Friday, October 11, 2013

Economic Differentiation

Diverse Philosophy or Philosophy of Differentiation has a unique view when applied to economics.

When D (differentiation) is applied to specific economic topics, categories and practices we get very unique ideas opposed to standard economic theory.

Differentiation is the notion of creating differences – this would include diversity, variety, individuality, parts, creativity, evolution and more.

Let us see what happens when D, differentiation, meets aspects of economics:

D applied to value results in measure and immeasure – immeasure includes all those values which cannot be measured – the personal, the transcendent, the sacred, the moral etc. Humanity then arrives at a list of values divided into categories and degrees of priority.

D applied to measure results first in a split of quantity and quality – qualities are things we choose to measure; quantities are the numerical accumulation of the measure. The present practice measures only one quality: profit and money. It also seeks unlimited acquisition of this measure.

In actuality, D applied to measure results in many metrics – profit is appended by a long list of values transformed into measures and operating targets – from social diversity to community support to the environment to limiting executive compensation etc.

Thus D applied to money results in a breakup of the domination of money into new forms of money caused by the new metrics.

D applied to ownership results in dispersion of equity across a population – a reversal of the common problem of a small elite controlling most of a nation's capital and resources.

D applied to income results also in dispersion and equalization so that middle class can get its just share of rewards, and so that poverty can be eliminated.

D applied to management and decision making results in many points of view on governing/executive bodies representing different values and social interests throughout a community and nation.

D applied to the concept of an economy results in the inclusion of many social sectors into an economy, with the creation of interlocking relationships between economic and social organizations – consumers, investors, communities, government, social demographics such as women, minorities etc. The old idea that an economy is separate from society and should remain so is now dead, because it never was true.

D applied to the concept of an economy also results in are realization that an economy is interconnected with nature, and dependent on nature. And thus the destruction of nature, ecosystems and climate are issues businesses must respond too.

At the same time, D applied to the concept of power results in another thought. We must also grasp that not everything is economic, that many institutions in society do not or should exist for the purpose of making money. A new economy is a fine idea with its new metrics and organizations, but there will coexist many other forms that will not be economic at all. We have multiple behaviors and multiple powers.

D applied to regulation results in both government regulation and a new theme: self regulation through new business metrics and interlocking institutions that provide oversight of business activity. This self regulation is the front line in the battle of company ethics.

D applied to buying and selling results in a market of course -- of many buyers and sellers or else we have no true market, we have graft and monopolies.

D applied to a stock market results in multiple measures of economic performance meaning new ways of viewing stocks and investment, and new forms of stocks, bonds and financial instruments.

D applied to banking means new metrics to determine loan criteria and business success.

D applied to business products leads to innovation and competition and price reduction.

D applied to creativity leads to many company forms, styles and strategies.

D applied to economic-technological evolution results in new trends, new industries, the death of old industries.

D applied to evolving human needs leads to creativity and planning for these changes.

D applied to an economic institution or organization leads to the realization that the basic unit of an economy is not a business, it is in fact the individual. The citizen is the worker, the owner, the investor, the innovator, the measurer, the consumer, the seller, the lender, the community member, the agent of nature and animals, a component of a social demographic, a voter, the representative of her or his values and ethics….

So these are the changes that the simple idea of differentiation brings to an economy.

 Cage Innoye

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