The New Economy

businesses have always been focused on increasing efficiency the Industrial Revolution meant that production could take place on an enormous scale the Model T car was produced by the thousands distributed to a dealership near you this was a great time for America while fixed costs for creating cars were expensive the additional variable cost per car was cheap optimal production occurs when the marginal revenue gained from selling an additional car equals the marginal cost of production recent trends have added some confusion to the old formulas what happens when the marginal cost approaches zero we predict this will unlock tremendous efficiency and create more opportunities for everyone but how does this happen exactly enter the digital revolution advancing technology and transportation and telecommunications met production could occur wherever labor was cheapest outsourcing jobs was just the beginning automation in computer software have replaced jobs typically thought of as human furthermore increased access to information means that consumers can bypass traditional marketplaces these forces have started to reduce the marginal costs in many industries to near zero meaning many goods and services are becoming nearly free this means we're continuing to see increased efficiency individuals are networking with each other and decentralizing the old model of distribution examining industry at large we notice a few trends the marketplace is becoming hyper competitive technology has begun evening the playing field between corporations and individuals the ability to quickly respond to changes becomes paramount here individuals race past encumbered corporations the titans of industry may still exist but their growth is fueled by consuming smaller nimble startups new means of unlocking efficiency are continually being found large cities around the u.s. have started to experience a sharing economy where idle items can be easily rented between individuals increased collaboration is starting to fulfill economists theories of perfect competition this is the opposite of a monopoly here consumers have the power what will success look like in the future for one businesses will need to build trust with consumers they need to show they are sincerely trying to help consumers to the best of their ability this is the heart of conscious capitalism second businesses will need to keep up with the pace of innovation this may mean some jobs are phased out in the short term but new kinds of jobs will continue to pop up in the future what will this future look like for our economy we'll all these changes result in some intergalactic utopia 200 years down the road or will they be so disruptive that our economy collapses drag civilization into a chaotic resurgence of the Dark Ages juiced up on nuclear steroids only time will tell

Leave a Reply

Your email address will not be published. Required fields are marked *