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blue bits. red rocks.
Monday 8 June 2009

It’s been my belief that economic vitality, the ability to generate maximal growth in wealth over long periods of time, is a function of the degree two which ownership over the capacity to produce things is dispersed. The more decentralized ownership over productive assets is, the faster wealth grows. It’s a function of decentralized decision making (something I call, “open decision making”). In our wage driven society, where productive assets are concentrated, we’ve attempt to game this. We’ve focused on distributing the ownership of non-productive assets (homes or the financial equivalent in pensions/retirement savings), instead of productive assets. That approach is proving to be a failure. It is too easily gamed by financial elites, who use debt to assume ownership and corporate ownership to freeze/reduce wages. It also forces economic sclerosis since decision making on how to allocate capital and improve its application is centralized in the hands of a few. John Robb

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