by Ken Melvin
Economy: An Economy is a social entity’s aggregate activity of producing and exchanging
goods and services. To date, a large body of knowledge about how economies work has been
accumulated; a body of knowledge known as the science of economics.
In a Well Functioning Economy, the requisite goods and services are efficiently produced and
equitably distributed whilst all the while giving utmost consideration to Human Welfare and to
the protection of the Natural Environment.
We study history so as to better understand and be able to cope with the present (now), and to be
better able to prepare for the future.
Looking to past economic models; from slavery, …, to feudalism, …, to mercantilism, …,
to colonialism,…, to capitalism, …; we see some slight evolution but more a continuum. In
succession, each model was a variation on the theme of its predecessor. In succession, those
who held the wealth and the reins of power were the greater beneficiaries of the economy.
It is easy enough to understand how it is that this was so.
Of these past models, Capitalism of a form is the one most akin our current economic model.
Reviewing our current economic model’s past, it functioned best for Americans from around 1946
to around 1972; a time when America was manufacturer to the world and her demand for labor
was high; a time before automation and offshoring. Even during those few best years, the model
gave but slight consideration to Human Welfare and the protection of the Natural Environment, …
economic model did not function very well before 1946; it has not adapted at all well to the
changes of the past 50 years.
Whereas always before we have had room to grow and expand, now we face limits in all directions.
We either develop a well functioning economic model for the present, one that can also take us
forward; or, we will again long suffer and muddle through only to again have an economic model
imposed on us by those with wealth and power. This time, there will be less to go around; less
to go around to so many more.
We have a large body of knowledge about how economies work. We know a lot about markets,
about production, about inventories, about finance, …, about some of the problems with past
models, about pitfalls to avoid, …
We know a lot about complex systems; how to model extremely complex systems. We have access
to tremendous computing power. We are capable of profound reasoning based on rational
thinking. We know how to work successfully in teams. We humans have shown that through
science we can transcend the beliefs and dogmas of the past.