Ethonomics
Limitations of our Current Economic System and the Scarcity-Abundance Paradox
It is imperative for entrepreneurs and business leaders alike to understand the ideologies on which our current economic structure is based, and the foundational principles from which it operates. This is especially true if we wish to provide a level of protection to our families and communities, or desire to accomplish the even more noble feat of creating generational wealth while adhering to the highest level of integrity and honor.
The United States economy was formed after an 18th century Scottish philosopher, Adam Smith, published the book, “The Wealth of Nations" in 1776. Smith had previously attended the University of Glasgow at the age of 13 and attended Balliol College at Oxford University, where he studied European literature. He moved to France in 1763 to accept a position as a personal tutor to the stepson of Charles Townshend, an amateur economist, with significant familial influence.
Smith was never known to have any first hand business experience, however due to his academic and social influence, his ideas quickly became popular. He was a proponent of the belief that the labor of the poor is a key measure of how an economy performs. He was known for being concerned with inequality, and his theories on capitalism, free markets, and supply and demand became highly regarded at the time.
In his book, Smith popularized many of the ideas that formed the basis for our current system. Years later other economists built on Smith's work to solidify classical economic theory, which became the foundation for the economic structure through the Great Depression, a time when scarcity thinking was in abundance.
The objective was to create what would be deemed as a mixed economy. An economic system that would feature the character of both capitalism and socialism. The belief was that a mixed economic system could protect some private property and allow a level of economic freedom in the use of capital, but also allow for governments to intervene in economic activities in order to achieve social aims on behalf of public good.
By studying the evidence and historical data over many decades, we can now definitively conclude the following: Firstly, those who have created significant wealth, did so by operating outside of the foundational principles set out by Smith and our current economic structure. Secondly, that the study of scarcity will never - and can never lead to a greater wealth position. This is true for the same reason that it is impossible to attain optimal health by exclusively focusing on disease and surrounding oneself with the infirm. Things are not brought into existence by focusing on their opposites.
Today, Adam Smith is still considered the father of modern economics, and his system continues to operate and spread throughout the globe. This structure is a complex network of interactions that governs the production, distribution, and consumption of resources. While it has undoubtedly brought about some advancements and improvements in several aspects of society, it is not without significant flaws, namely that it perpetuates poverty and oppression. This document will address just a few of the issues associated with the existing economic framework and prove that studying scarcity will not lead to abundance.
Problems with the Current Economic System:
01
Inequality
One of the most pressing issues is the unequal distribution of resources. The current system often perpetuates wealth inequality, leaving many marginalized and underserved populations with limited access to essential resources such as education, healthcare, and even basic necessities.
02
Short-Term Focus
The prevalent focus on short-term gains and profits often disregards long-term sustainability and environmental concerns. This shortsightedness can lead to overexploitation of natural resources and damage to ecosystems, ultimately affecting future generations.
03
Externalities
The economic system tends to overlook external costs, such as environmental damage, when calculating the true value of products and services. This can result in overproduction and overconsumption, as well as negative impacts on the environment and society.
04
Consumerism Culture
Our current economic model encourages a culture of consumerism, where individuals are driven to constantly acquire more goods and services. This not only contributes to overconsumption but also fosters dissatisfaction and fails to address deeper human needs.
The concept of scarcity is deeply ingrained in traditional economic theories, suggesting that resources are limited and must be allocated efficiently. However, the pursuit of abundance is often considered the antithesis of scarcity. Here lies the paradox: the emphasis on scarcity-focused thinking can inhibit the realization of true abundance.
Here are a few pitfalls with the Scarcity and Abundance Paradox:
01
Mindset Limitations
A scarcity mindset can lead to fear-based decision-making, focusing on hoarding resources and protecting individual interests. This mindset discourages collaboration, inhibits innovation, and hampers the development of solutions that could lead to abundance for all.
02
Resource Allocation
Viewing resources as perpetually scarce may hinder investment in alternative technologies and sustainable practices. This mindset can prevent the exploration of innovative solutions that could potentially address scarcity issues and lead to a more abundant future.
03
Negative Externalities
A singular focus on scarcity can lead to a disregard for the negative externalities generated by resource extraction and production. This further exacerbates environmental degradation and social inequalities.
In conclusion
While the current economic system has undoubtedly contributed to societal progress, its flaws are becoming increasingly evident. Addressing issues such as inequality, short-term focus, and environmental damage requires a shift in mindset and approach. The scarcity-abundance paradox highlights the need to move beyond conventional scarcity-based thinking and embrace a holistic view that considers the potential for abundance through innovative solutions, collaborative efforts, and sustainable practices.
You may be wondering:
Is it possible to create… A new economic structure that is truly based on thrive and abundance thinking?
A current system built on solid science, mathematical principles, and ethics?
A modern and relevant economic process that has a proven track record to work, universally, for all who abide by its fundamentals?
A structure that can lead anyone to becoming a millionaire within 2-3 years, and to achieving generational wealth within 5-7 years, regardless of age, race, current education level or financial state and without requiring 60-80 hours of work a week?
The answer is unquestionably yes!
Until now, this proven and revolutionary economic structure has been accessible only to the wealthy elite.
But there are those among the ranks of that elite class who feel that the true secrets of financial prosperity should be shared with all.
To take the first step down this path of creating a more equitable, prosperous, and harmonious future, email us.