How Can Financial Innovation Promote Economic Growth?

It is essential first to understand what economic growth contributes to society before one can assess the kinds of innovation suitable for driving progress.

If you take the example of The United States, as the self-proclaimed mother of the world with many countries actively vying for and dependent on our help, we must embarrassingly admit that despite tremendous progress, wealth and growth our renewal, critically affecting what comes after the current generation, is in dire straits.

  • The extreme poverty rate in the U.S. is 15.8%, along with a quarter of all children not knowing where their next meal will come from, causing compounding learning disabilities in a large and growing part of our future generations. Thus severely hampering the renewable contribution to our societal strengthening and sovereignty. Blind economic growth is not helping but exasperating this situation.
  • 70% of Americans are on prescription drugs, the length of their life (and their offspring) propped up by, and dependent on, medicine. Many are suffering from chronic depression. The source of a multi-generational weakening of humanity and severely depleting the zest for self-improvement. A vile-maxim of economic growth derived from modern-day slavery not aiding this situation.
  • The U.S. is the second most obese country in the world, much of its population enslaved to apathetic consumerism that knows no end, in complete ignorance to personal responsibility and solidarity upon which the evolution of humanity depends. Our ignorance as the main reason why our medical systems will buckle under its weight, no matter what safety net we come up with if we don’t build systems to force us instead to take our responsibilities seriously. Apathetic economic growth from consumption not aiding this situation.
  • More than 75% of Americans have disenfranchised themselves from the political process by not voting. Leaving a Presidency in a fragile class-clown state, voted in by less than 15% of the population. What democracy, indeed? Make-believe economic growth not because but despite our “democracy”.
  • Our economic performance is primarily determined by a financial sector eleven times the size of production as a contribution to GDP. A dangerous predicament considering finance is non-renewable without production. We have become a feeble hydrocephalous of finance, with much of our purported growth coming from finance investing in itself. Narrow and steep economic growth dependent on a volatile resource limiting our sustainability.

So, the endless rat-race for growth does not contribute positively to humanity, albeit it makes for nice appearances and rather silly envy at the top of the global economic leaderboard.

Conversely, renewable growth that strengthens and prolongs the sustainability of humanity is what our systems should be geared towards. And that kind of growth can only be achieved with new operating-systems for humanity, with new principles at its basis directly linked to our survival as a species.

“Growth for the sake of growth is the ideology of a cancer cell.” — Edward Abbey

Finance applied to the proper technology can be a fantastic accelerant to those operating-systems when it begins to adhere to evolutionary principles to strengthen, not weaken or hold the freedom and future of all of us hostage.

Let’s lead the world by example with new rigors of excellence we first and successfully apply to ourselves.

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