The video raises an intriguing perspective about the relationship between productivity and monetary value, particularly through the lens of technological advancement. Nobel Economist Robert Solow’s calculation that 80% of economic growth stems from technological advances underscores the fundamental connection between productivity improvements and economic value creation
The Productivity-Money Paradox
The current economic system faces a significant measurement problem in how it accounts for the creators of productivity gains. While GDP effectively measures the output (products), it fails to properly value the primary drivers of productivity – the engineers, scientists, and technologists who create and implement technological advances
The Hidden Value Problem
The classification of technical talent as “intangible assets” and expenses rather than investments creates a fundamental disconnect between value creation and value measurement. This accounting approach effectively conceals what could be trillions of dollars of real economic value
Rethinking Value Creation
The video suggests that by reclassifying technical talent as assets rather than expenses, we could better align our economic measurements with actual value creation. This shift would more accurately reflect how money represents productivity in the modern economy
The Technology-Productivity Link
The relationship between technology and productivity is clear – technological advancement increases our productive capacity, which in turn generates real economic value. However, our current economic frameworks fail to properly capture this relationship by treating the creators of this productivity enhancement as costs rather than investments
This misalignment between productivity creation and monetary measurement suggests a need for new economic frameworks that better reflect the true sources of value in our technology-driven economy. The proposed solution of using game theory, blockchain, and AI to convert intangible assets into tangible form represents an innovative approach to bridging this gap
The Ingenesist Project: Making Money
Nobel Economist Robert Solow calculated that 80% of economic growth is the result of advances in technology. This Makes sense. Technology makes us more productive.
However, GDP measures the products, not the producers. Engineers, Scientists, and Technologists are responsible for ideation, design, and implementation of new and improved technology.
Unfortunately, Engineers, Scientists and Technologists are classified as “intangibles” Intangibles are, in turn, classified as expenses to be minimized, not investment to be maximized.
Here’s the good news… 80% of the true global economy is simply hidden from view. Trillions upon trillions of dollars are sitting on the table waiting to be measured into existence. Can you see it?
The Ingenesist Project uses game theory, blockchain, and Artificial Intelligence to convert Intangible Assets into a tangible form.
Join The Ingenesist Project
Analysis
The purpose of this video is to synthesize the simplest interpretation of value and test that against prevailing economic principals. Engineers, scientists and technologists are treated as EXPENSES, let that sink in. If they are not assets, then they are LIABILITIES… full stop. This is a clear, present and vastly consequential flaw that must be addressed by someone somewhere.
Otherwise, if there is no institution willing or able to defend this flawed economic principal, then it is super-vulnerable to disruption. We need to maximize innovation, not minimize innovation. There needs to be a wholistic and systemic approach to solving problems in the world. We must head off global systemic risks. As clever and experienced as the VC community is, they cannot be expected to pick and choose winners and losers in the next economic paradigm.
There is far more ‘money to be made’ by shifting engineers, scientists, and technologists to the ASSET column of the global balance sheet.