Third Millennium Economics

 

Welcome.  This is a book/whitepaper published in website format (as well as a .pdf), about how technology has created new economic forces that are reshaping society.  Contained within is guidance on how individuals, organizations, and nations have to adapt to these transformations in order to prosper. 

If you are interested in any of the following, this is the reading material for you :

• Accelerating, exponential technological progress
• Technological disruption, and its social and economic impact
• How artificial intelligence and robotics are affecting employment
• Why most mainstream economists are unable to measure the economic impact of technology, and no longer understand monetary forces
• Navigating the next recession/financial crisis
• Creating a dynamic safety net that replaces outdated government programs, and is simultaneously the destination of central bank easing
• A path towards migrating the tax burden away from humans and onto technological productivity
• How a country can hedge against technological disruption of its core industries
• How the data you generate can be monetized for your benefit
• How to harness technological forces for yourself

I hope this content changes how you view the world, in the present and the future.  

 

– Kartik Gada

Version 1.0 : February 26, 2016

Version 2.0 : February 29, 2020

May 31, 2020

 

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Executive Summary

The accelerating pace and diffusion of technological change has taken control of an ever-growing fraction of the world economy.  This fraction is being assimilated into a different set of economic fundamentals, such as the rapid and exponential price deflation inherent to technology.  The effect of this was insignificant until recently, but is now beginning to create conspicuous distortions in many economic metrics, and is just years from being the dominant force across the entire economy. 

In response to technological deflation, the central banks of the world will have to create new money in perpetuity, increasing the stream at an exponentially rising rate much higher than is currently assumed.  This now-permanent need for monetary expansion, if embraced, can fund government spending more directly.  This in turn creates a very robust, dynamic, and efficient safety net for citizens, while simultaneously reducing and even eliminating most forms of taxation by 2025-30.  Alternatively, this monetary expansion can be a means to create Sovereign Venture Funds that can hedge a country's risk far more effectively than existing sovereign wealth funds.  

Failure to recognize that technological deflation mandates permanent and ever-rising central bank monetary expansion that can and should gradually become the primary source of government spending could result in countries falling behind more enlightened countries in a very short time. 

The nature of current worldwide technology is to link various disruptions with each other, consume monetary liquidity to generate deflation, and lower the effective prices of most goods and services over time.  Therefore, the entirety of worldwide technology has to be seen as a holistic economic entity, and can be defined as an ‘Accelerating TechnOnomic Medium’, or ‘ATOM’, which itself is the central concept of 'Third Millennium Economics'.  

 

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Table of Contents

1. Prologue
2. The Exponential Trendline of Economic Growth
3. Technological Disruption is Pervasive and Deepening
4. The Overlooked Economics of Technology
5. Characteristics of Third Millennium Economics
6. Current Government Policy Will Soon be Ineffective
7. Government Policies Must Adapt, and Quickly
8. The Transformation by Sector
9. Reframing ‘Inequality’
10. Implementation of Third Millennium Economics for Nations
11. Implementation of Third Millennium Economics for Individuals
12. The ATOM’s Effect on the Final Frontier
13. Conclusion
14. The Campaign to Make This a Reality

 

 

Comments

[AL Villalobos]

Excellent work!
You have tied together several lines of thought that have been in my mind for years now.
I'd love to see an active discussion forum for your work.

[Kartik Gada]

Thanks, Al.

The comments section here is going to be the early discussion forum, but for that we need more traffic. This is still the early stage, so I am just seeking to get more people (and more of the right people) to read it. Anything you can do to build exposure/readership gets us closer to our goal...

[alan2102]

Very interesting and laudable. One thing, however: THIS: "Accelerating TechnOnomic Medium" -- is too obscure and confusing. You must find a better way of expressing what is surely a very important idea. IMO.
Thanks.

[Kartik Gada]

Alan2102,

Thanks for reading the whole thing. I thought about it at great length, but there did not appear to be a more acronym-friendly name that works well in the logo and conveys what the whole concept is about. So we went with 'ATOM'.

[Tim Cason]

I have briefly read through this and I'm hoping to find the time to thoroughly read and analyze it. I think it is revolutionary thinking and I wish people were talking about this. I have discussed and shared this article with a few people, but I plan to spread the message as much as I can!

[Kartik Gada]

Tim Cason,

Thanks! It is great to see someone who gets the material, and is willing to share the materials with other. Anything you can do to spread the material is greatly valued.