In modern market capitalism, we’re witnessing a fundamental shift in how value is created and measured. While classical economics focused on tangible inputs like land, labor, and capital, today’s economy increasingly derives its value from intangible human factors (inputs)
The Evolution of Economic Inputs
Traditional Model Limitations
The classical economic model from the 1700s excelled at measuring physical inputs and outputs, but failed to adequately capture human-centered contributions. As a result, economic outputs reflected this deficiency.
This created a systemic blind spot in our economic calculations.
The New Paradigm
Today’s value creation is predominantly driven by:
- Social capital and networks
- Creative innovation and ideation
- Intellectual property and knowledge assets
The Innovation Paradox
A critical insight emerges: innovation drives economic growth, not the other way around
We’ve been operating under the flawed assumption that economic growth must precede technological advancement, when in fact, technological change is the prerequisite for economic expansion
Measuring the Immeasurable
Modern technology has provided us with new tools to quantify previously “invisible” assets
By converting intangible human inputs into measurable metrics, we can better align our economic outputs in a manner that supports the inputs – that is, actual value creation. This shift has profound implications for:
- Climate change solutions
- Social equity advancement
- Venture capital allocation
- Global debt management
- Much more…..
The key to unlocking this potential lies in reconceptualizing how we measure and value human contributions to the economy. Rather than treating intangible assets as accounting footnotes, we must recognize them as primary drivers of economic value
This transformation doesn’t require dismantling existing institutions; instead, it involves adapting our measurement systems to better reflect the realities of modern value creation
Video transcript:
A Tiny Flaw. The Ingenesist Project
What if there was a tiny and nearly imperceptible flaw in Market Capitalism that could be easily corrected?
To do so would solve many of society’s most pressing needs without disrupting the institutions upon which we depend.
Technological change must always precede economic growth. We are going about the business of civilization as if economic growth must always precede technological change.
It’s like driving a car while looking through a mirror.
In other words, money is not the cause of innovation. Money is the result of innovation. The implications of this tiny flaw impacts everything from Climate Change and Social Equity to Venture Capital and Global Debt.
It started with classical economic theory. In the 1700’s economic inputs such as Land, Labor, and Capital were easy to measure. The products that resulted from these inputs were also easy to measure.
However, in the 1700’s; social, creative, and intellectual inputs by humans were not so easy to measure. Accountants call them intangibles, but they are simply “invisibles”.
Today, this is an easier problem to solve. Ironically, technological Change has brought us new ways to measure intangible assets. All we need to do is convert them to a tangible form.
The resulting economic growth will far exceed global debt because there is no such thing as “not enough money to innovate”. Together we can correct A Tiny Flaw
Join the Ingenesist Project.
Analysis
This is largely the initial video in the series and the first that we published. Attention should be drawn to the idea that maybe there is a tiny flaw that can be easily corrected. Instead of trying to solve every single problem that is strangling civilization as we know it, we could solve one single problem and the other problems will solve themselves.
The question becomes: are we too vested in our misery to even consider such a possibility? Are we so narcissistic to believe that our particular problem is the one that must be solved even if it worsens someone else’s problem? Are we all expecting the “other guy” to change and that will make your world work? Good luck with that.
The flaw is no tiny, so hidden, yet so obvious that it defies the imagination. All we need to do is measure ourselves differently. Who is stopping us from doing this? nobody. What law says we can’t do this? There is none. And if we do correct the flaw, who suffers? No one.
Will we do it?