Our economic narrative is hijacked by dangerous falsehood: the notion of economic zero-sum. This belief is that to make one win, another must fundamentally lose contradicting the notion of economic growth. If we really live in a zero-sum world, how could our economy expand? It’s like asking a sumo wrestling team to gain weight by trading the same food themselves. It doesn’t add up. Economic growth Need to create new valuenot just redistribute what already exists.
However, opportunists capture this myth by exploiting our psychological vulnerability to manipulate and extract their own interests. The natural human vulnerability of zero-sum thinking prey to the long scarce history of our species.
For most human existence, resources are indeed limited. But today’s rich world makes scarcity a matter of choice. The decisions of business executives, investors, elected officials and consumers determine when they are available. As 2024 Nobel Prize-winning economist Daron Acemoglu pointed out, “Inclusive economic institutions promote economic activity, productivity growth and economic prosperity… [while] Mining economic institutions aim to extract income and wealth from one subset of society to benefit another subset. ”
Time Travel Through Positive Economics
The miracle of our modern economy lies in its ability to participate in time travel. Through the magic of credit, the score reserve bank and the state fiat currency, zero-sum economics death, positive and positive. The capital market is a time machine that allows borrowers and entrepreneurs to gain future benefits from today’s purchases. The national fiat currency means that a country can create funds from nothing to nothing, but nothing more than the value of shared trust, which is a significant development from the era when every coin needs to contain its weight with precious metals.
Capital Markets Time Machine transforms economics from a static, zero-sum game to a dynamic, positive reality in which growth is not only possible, but is expected. There are other positive plans. Consider affecting the investment landscape. Affordable housing investments are provided with necessary shelter, Increase happiness and enhance social stability And reduce the taxpayer burden on social safety net Generate attractive financial returns. Affordable housing investment reveals the fallacy of zero-sum thinking: we can do well.
Similarly, drive innovation, productivity and profitability through greater empathy to improve investment in corporate culture. KKR is one of the world’s leading investment companies, which demonstrates the equivalent investment in comparable companies generated Higher financial returns When the CEO shows more empathetic leadership. The basis of empathy is fairness, equitable treatment of measurable rewards. A great corporate culture is not only kind, but also positive, because it generates more profits and social benefits than alternatives.
Even Milton Friedman, often misunderstood as a champion of shareholder profits, admitted in his groundbreaking articles to invest in communities and workers. Create long-term positive value. The prosperity of a business is inseparable from the prosperity of its ecosystem.
Active and positive through patriotic action
What we need is an economic narrative that originates from positive and ideological through patriotism. Not a variety that waving flags, but a deep commitment to the country, democracy and common interests. This approach recognizes that when businesses serve the broader interests of society, viewing workers as long-term assets rather than short-term costs, they thrive and go beyond the “Chainsaw al” Dunlap mentality to prioritize shareholders only.
Research by economists Daron Acemoglu, Simon Johnson and James Robinson proves this Built on an inclusive fair body with prosperity-based societiesand those who focus on extractiveness and unfairness ultimately fail. Fairness is not only morally correct; it is economically essential.
Influence investors from a positive perspective and actively seek opportunities Financial returns and positive social impacts aligned. They identify undervalued assets in underserved areas, recognize the potential in empathy leadership teams, and understand that solving social problems often creates new markets. Many policy makers, company boards and business executives have embraced a false narrative that widening income and wealth gaps is inevitable and that investments in the streets and labor are drainage of capital. They are not. These differences are the consequences of intentional choice to ignore long-term prosperity rather than short-term extraction.
The way forward: From theory to action
The world today is objectively positive and positive, but our thoughts are still trapped in the zero-sum paradigm. This psychological model serves those who profit from fear, anxiety, and artificial scarcity, but it cannot serve our country or our economy.
We need to move towards positive and future specific steps:
- Business Leader: Implement empathy training, fair wages, predictable timelines and Extensive employee ownership Programs. Remember that in the long run, considering employees as assets rather than spending will produce higher financial returns.
- investor: Distribute all or part of your portfolio to investments that intentionally generate positive financial and social returns. Start at least 5% and then grow from there.
- Decision Maker: Create more tax benefits for companies that promote worker ownership and invest in worker training and development. Consider expanding the capitalization of human capital costs to reflect people more important than property, plants and equipment. Long-term investment in human capital should be rewarded for the positive externalities generated by society.
- consumer: Support businesses that invest in communities and treat workers fairly. Your purchasing power is more influential than you think.
As Albert Einstein wisely observed: “We cannot solve our problems with the same ideas we used when we created them.” By embracing positive economics, we can create a U.S. where upward liquidity can be provided more broadly, economic growth can boost all ships, and we recognize that our personal success is inextricably linked to our collective thriving.
The Zero Sum game is over. A positive future is waiting. Let’s build it together.
