The New Economic Model

Warren Buffet – Charlie Munger – new economy – economic recovery – paradigm – happiness – happy – economic model – vision – wealth – relationship – management – excellence – team building – positive

With all due respect to Warren Buffet and Charlie Munger, their economic model is all wrong.

Holding onto money for the sake of dividends and re-investment does not produce a just civilization. Yes, it does help accumulate “wealth” but not true wealth, the kind that allows a flourishing economy. The economy needs to breathe. Capital goes in, capital goes out. Otherwise, it’s like holding your breath and you know what happens when you stop breathing. Right.

We need a new paradigm for this new economy. Instead of measuring wealth in dollars or yen, it needs to be measured in happiness.

What would a society measured by happiness look like?

  1. People would enjoy their jobs because they knew it wasn’t causing harm to others anywhere in the world.
  2. People would focus on relationships and team building rather than profit
  3. Instead of management, we would have visionaries (one per company is enough. Case in point: Steve Jobs) and the people who collaborate to carry out those visions.
  4. The people who are considered most visionary understand extrapolation: the ultimate effect of their efforts, if extended over time and with population growth. They would focus on providing only positive benefits over the long term. If the person who “thinks” they are visionary can’t do this, then they need to work with someone who can. For example, a Steve Jobs needs a Judy Frankel.
  5. Companies will have a “purpose” that has very little to do with making money. The value of the company will be grounded in that purpose.
  6. We, as consumers, will support companies who have good purpose and do no harm.

In such an environment, the arts will flourish. It is our God given (or Universe given) purpose in life to express ourselves in whatever way we do best.

Yes, it will take a huge shift to move from money-centric economics to purpose-centered economics. The lucky thing is: we already know how to do this. Remember the books by Thomas Peters and Robert Waterman? The book called In Search of Excellence: Lessons from America’s Best Run Companies hinted at the above paradigm. They just didn’t include care for the earth as part of that (item #4, above). Now we get it. People call it “sustainability” but I would rather call it “regeneration.” (That’s a nod to you, Maria Rodale!)

Getting back to happiness. We’ve all heard that money does not buy happiness. What we are seeing is that idea on a grand scale. The people with the most money have lost their purpose in life. They know it, and they are scared because if you took away all their money, they wouldn’t know what to do. That’s why they’re willing to build armies and fortresses to keep everyone out. It’s quite lonely in there.

Instead, they need to understand that we love them, we want them to join us, and we want them to be happy too. Go find your truest expression, find your purpose, and you will be happy.

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