Unicist Root Causes of the Crisis 2008 – 2010
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The financial crisis that began in 2008 is not just one more crisis. It is a structural crisis where the roots of the capitalist system have been threatened.
The capitalist system is not only based on private property, it is based on trust and credibility and the integration of the population in the property of the economic institutions.
The financial crisis broke the integration of the system between the market and the companies and between the companies and their shareholders.
This crisis will provoke the generation of a more stable organization of markets. Speed of growth will recover in all those countries where there is a gap of added value to be empowered using technologies. But growth will be lower than in the past.
We will begin with a synthetic presentation of the history of the crisis and the expected solution.
The history of the crisis has two basic preconditions and two main triggering causes.
The preconditions are the fall of the communist system and the use of consumerism in order to sustain scarcity as an economic driver.
The two triggering causes were the technological plateau and shareholders dominance in economic organizations.
The dot.com “prelude” was a demonstration of the technological plateau and of shareholders’ dominance using the money of the “market”.
Considering the forecast made using the unicist ontology of evolution, the recovery from the crisis will be based on a structural change of the rules of the game.
Economy will be much more institutionalized with two extreme different solutions.
Those who believe in bottom-up development will develop strong institutions to inhibit the entropy of the economic system.
Those who believe in top-down development will develop institutions to control the market. In the middle, there will be different solutions to catalyze the market growth.
Considering similar economic structures, bottom-up approaches will grow faster than top-down approaches. Top-down approaches will develop in a more secure and slower way and with a higher risk of corruption.
Feudalist capitalism, where there is no real participation of the market in the property of companies will develop naturally towards a top-down approach.
Denial of the crisis is a natural response when structures quake. Denial has two aspects. The positive aspect is that it avoids uncontrollable changes. The negative aspect is that it inhibits the evolution of counter-cycles.
Globalization, being a controversial word in the past, will begin to make sense in order to build the new economic system.
The different types of democracy will develop their bottom-up and top-down trade-offs in order to maintain their participation model.
Businesses have the responsibility to survive and at the same time to develop growth counter-cyclical strategies.
Access more information at: http://www.unicist.org/deb_growth.php
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