Friday, March 10, 2017

Time Sequencing and Economic Complexity

Given the partial nature of general equilibrium in terms of growth potential, how to encourage a broader range of economic complexity? After all, some possibilities under consideration, are not so much about labour as gradually being replaced by robots and automation, but rather the kinds of economic time interaction which could prove capable of preserving social identity and purpose.

Even though some of this interaction would doubtless remain "low skill", anyone can respect the fact this skills flexibility is what individuals often prefer in time based service interactions. When skill level isn't paramount for either one's time compensation or product outcome, individuals find it easier to contribute to the nature of time based product, via the mutual participation it suggests. Hence preserving group identity would particularly depend on the integration of a wide range of skill sets, among all who take part in knowledge use systems.

One way to think about this thorny issue, is to consider where a broad array of overlapping time sequencing already exists in populations, and where it does not. Wherever the overlapping of designated economic activity remains thin, individuals and groups alike suffer, because social isolation tends to be the result when there is little reason to join other groups other than a need to overcome loneliness. Indeed, one's attempts to access a very limited range of economic or cultural options due to personal loneliness rather than common interests, tends to be self defeating.

Nevertheless: before individuals or groups could be comfortable embracing the time sequencing of new economic complexity, formal recognition and validation would be needed, given the level of personal commitments involved. Yet once these permissions are in place, group participants would eventually gain more economic options, and more courage, to take a chance on finding purposeful time with others, once again.

Among the benefits of new templates for economic complexity, is that after a period of experimentation and development, this organizational capacity would also become capable of self regeneration and sustainability. In other words, the ability to create new wealth via one's own efforts, also means that local revenue and organizational structure would exist which is not at the mercy of external monies or redistribution, just to maintain its social cohesiveness.

Only consider the fragility of so many rural environments of the present in the U.S. Many of these exist in their current form mostly because of the extensive redistribution which takes place in the form of retirement and disability payments. Often, if retirement pensions do not also contribute to this mix, such communities have insufficient local structure for formal time sequencing, other than local schools, possibly a non profit office or two, religious affiliations and a smattering of local retail. Even families in these places tend to travel elsewhere, for much of their time based production and consumption. That's not a lot of potential for time sequencing for local citizens, where individuals might go to freely mingle with others on terms that are mutually understandable and agreeable.

Over time, the internal wealth creation of knowledge use systems could generate economic complexity which allows not just the additional time sequencing of time based product, but also other forms of output as well. If anyone needs any reminder why it is so important for average citizens to contribute to new forms of 21st century wealth creation, one only need remember earlier government reactions to the Great Depression, and how those reactions "contributed" to "wealth formation". The all too recent Great Recession - in many ways - was a contained depression which still has not been confronted on the crucial supply side terms which matter most. And somehow, I don't think many of us really want more worldwide war as a response to insufficient economic complexity.

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