Oops, wrong shaped model

What if our global economic models are shaped wrong? We hear a lot about consumer confidence, import ratios and the DOW market changes. What do they all mean?

Our economy is based on our countries and companies selling more. What if people have already bought enough? And I know, some people say it is impossible to shop too much but excluding these shopaholics, lets take a look at this.

Lets create a new index. It is an index that tracks people's and businesses' natural purchasing behavior: the Natural Purchasing Index (NPI). If the NPI equals 1.0 and global productions of goods is 1.2, and if countries and companies are evaluated on selling at that level, then they will not meet analysts short-term expectations.

Either the NPI will need to be brought up or our expectations for countries and companies will need to be lowered otherwise they won't get the valuation they want for investors.

As globalization becomes more of a natural phenomenon, more companies will create more products and services. Where is the point where we stop creating goods without considering global planning. I believe that there is a NPI and it does not match current expectations and this disharmony causes more market turmoil, job losses and socioeconomic pressure than is needed.

Comments

[elizabeth]

Hi Robert,

I like your ideas. They brought to my mind these questions:

Is Love a resource that is limited in any way?

In its essence, what is the entire universe ~ the material world ~ made of? One theory that has been proposed is that it is made of Love. I don't know if this is true, but if it were, then

How could there possibly be any limitation to what can be created by this limitless Love-Energy?

But just because it's possible to create something, is it always the right choice to do this?

What would a global economic system based on these questions (and answers) look like?

[Robert H]

Those are interesting questions. I am sure that if they were asked consistently during the process of developing a new approach to global economics that it would undoubtedly lead to a more holistic solution.