KISS II: The Humane Economy3 History
By Caroline Smalley on May 25 2014, last modified on Jun 17 2014.
Most of the businesses we’re familiar with today measure success by the profit they make. Banks are no exception. To maximize financial returns from lending someone money, they incorporate systems that use assessments made by credit bureaus; and to help mitigate risk, make it so the less you have, the…
Most of the businesses we’re familiar with today measure success by the profit they make. Banks are no exception. To maximize financial returns from lending someone money, they incorporate systems that use assessments made by credit bureaus; and to help mitigate risk, make it so the less you have, the more interest you pay.
The problem with doing this that it helps the rich to get richer and increases the challenges – such as borrowing money to build a business or affording an education – for those with little cash.
As a consequence, the wealth gap cannot be reduced, there is less entrepreneurial innovation, corporate control on political policy and hidden costs* are maintained, population and the need for social welfare and environmental reform increases, more people default on loans, and the entire economic system – indeed, all of humanity – becomes at risk of collapse.
To create a sustainable world, we need to collaborate in a way that uses individual skills to maximize innovation and provides equal opportunity to get ahead. This means open sharing of knowledge and ideas and supporting initiatives that are affordable and help people and communities increase their own livelihoods.
Designing solutions that are radically affordable means being radically smart with resources. Learning how to do this will not only help new business, but will have a significant ‘trickle-up’ impact on all.
So what can we do?
Create a means of moving finance to a people-centric economy, where co-operation and competition go hand in hand, which is why we founded The Citizens media® (CM).
*Hidden Costs: Commonly called externalities, ‘hidden costs’ refer to the cost or benefit that affects a party who did not choose to incur that cost or benefit. Learn More
"For social justice we must disrupt more than the payments services industry, we must take back the credit issuing power and give it to producers and trusted entities. This should be the first principle of the solidarity economy. The challenge is partly technical - we need blockchain technology and apps and APIs and identity management and better reputation systems. But the real challenge is the evolution of consciousness necessary to transfer our trust from the sinking state to our swimming peers. From money as as pure liquid wealth, to money as a tool for exchange. From credit consumers to credit issuers. As well as a distributed transaction ledger, we need distributed credit issuance. The crypto-revolution must pave the way for the credit-revolution." – Matthew Slater matslats.net/whither-crypto-revolution