Move over Wilma, Fred has a new idea!
There are four principal types of economic systems on the planet: traditional, command, market and mixed. Each economy has its strengths and weaknesses, its sub-economies and tendencies, and, of course, a troubled histories.
In the 21st century you may as well burn the textbooks because creative destruction is the rule not the exception!
Traditional economies still create products and services that are a undeviating result of their beliefs, customs, traditions, religions, etc.
Useful and old school.
Command economies is an economy in which production, investment, prices, and incomes are determined centrally by a government.
Dictators and monarchies, for sure dead ducks.
Market economies in which decisions concerning investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.
Hanging in there but losing steam fast.
Mixed economies is an economic system which combines private and public enterprise.
Hello we may have a winner, sort of!
Move over old school economic philosophies, there are some new Sheriffs in town (notice the plural of ‘Sherriff’?)
Ever heard of the ‘Purpose Economy’? Aaron Hurst wrote about this and how your desire for personal growth, impact and sense of community can change the world.
You have the ‘Sharing Economy‘, (what never heard of this, come on Fred Flinstone). Companies like ‘Airbnb‘, ‘Turo (formerly RelayRides’), ‘TaskRabbit‘, ‘and ‘Lyft‘ and of course ‘Uber‘ these companies are all examples that even Wilma and Barney would use in Bedrock.
Peer to peer on growth hormones basically.
We have the ‘Maker Economy’ a technology based DIY mindset and culture. Crafts, metal working, with a little bit of tech, (or alot) Chris Anderson of Wired shared his thoughts in “How the ‘Maker’ Movement Plans to Transform the U.S. Economy” in Time magazine and authored Makers: The New Industrial Revolution. Stand tall makers, this is not just crafting anymore ‘Etsy’ is just what the crafter ordered!
The ‘Gig Economy’ is a mixture of everything, find some time, got a passion, freelancers everywhere rejoice. Adam Smith called it the genuine market in his ‘An Inquiry Into the Nature and Causes of the Wealth of Nations’, in the 18th century!
I have a new one, and this one is going to dominate by using all of the above. A hybrid future rock star I like to call the ‘MiddleLiving Economy’. Where encore careers meet your transitional wanderlust. Entrepreneurship is being driven by adults over the age of fifty, (my definition of MiddleLiving is 45-75 years old) so the utilization of the ‘Gig-Economy’ leads to profound economic development.
Are you ready for this?
Small scale entrepreneurship is a massive economic driver, and could become the catalyst for the way we view retirement. Frankly I have always referred to retirement in the 21st century as walking through the front door of the ‘ReFirement-Zone’, here are some facts and figures-
- Some estimate that the rise in entrepreneurship for those 55 and over could increase yet another 20% in the next 10-15 years.
- In every single year from 1996 to 2007, Americans between the ages of 55 and 64 had a higher rate of entrepreneurial activity than those aged 20-34.
- For the entire period, the 55-64 group averaged a rate of entrepreneurial activity roughly one-third larger than their youngest counterparts.
- These trends seem likely to persist: in the Kauffman Firm Survey, a longitudinal survey of nearly 5,000 companies that began in 2004, two-thirds of firm founders are between the ages of 35 and 54.3
- Additionally, Kauffman research has revealed that the average age of the founders of technology companies in the United States is a surprisingly high 39—with twice as many over age 50 as under age 25.4the know-how to operate a business.
And as far as wealth is concerned-
- “The 55+ age group controls more than three-fourths of America’s wealth (ICSC).
- 78 million Americans who were 50 or older as of 2001 controlled 67% of the country’s wealth, or $28 trillion (U.S. Census and Federal Reserve).
- Boomers and seniors have seen a decrease in their median family net worth, however they still have a net worth 3x that younger generations (Economic Policy Institute).
- Baby Boomers outspend other generations by an estimated $400 billion each year on consumer goods & services (US Government Consumer Expenditure Survey).
- In 2009, spending by the 116 million U.S. consumers age 50 and older was $2.9 trillion, up 45% in the past 10 years (Bureau of Labor Statistics).
- Baby Boomers account for nearly $230 billion, or 55%, of consumer packaged goods sales (Nielsen).”
- Americans over 55 spend 50% of all vacation dollars in the U.S.
- Women over 50 spend $21 Billion on clothes annually
- Baby boomers take great pride in the appearance of their homes as 27% have had landscaping done in the past year and they are 21%more likely than all American adults to have spent $10,000 or more on home improvements in the past year (Scarborough)
- The NAHB predicts that the aging in place remodeling market to be $20-$50 billion. That’s about 10% of the $214 billion home improvement industry
- 96% of baby boomers participate in word-of-mouth or viral marketing by passing product or service information on to friends (ThirdAge and JWT Boom)
So when it is all done and if we do this correctly, the multigenerational collaboration that is going to occur will benefit everyone, and then some. Economies of scale and scope never dreamed of by Adam Smith or Fred Flinstone, no time for ‘Schleprocks’.
Time to incentivize ‘MiddleLiving people to come to Mid-Michigan and see what we are doing, you may be surprised!
Just remember these key words-
Keywords: sharing economy, electronic markets, social media, durable goods, collaborative economy, on-demand, collaborative consumption, crowdsourcing, crowdfunding, p2p, Internet, ecommerce, Airbnb, Uber, Lyft, Lending Club, Blablacar, WeWork, Instacart, Ola.
You see my point! Time to get on the bus gang, time is our most precious resource.