Economic Multipliers (103) Do you know what these are? They help CREATE wealth in systems. Too much of almost anything (abundance) can be a negative economic multiplier. ¤¤¤¤¤¤¤ When people think about negative economic multipliers, they usually think about things that cause damage and diminish resources: texting while driving, pollution, crime, etc. Most people would not consider ‘abundance’ to be a negative economic multiplier. But it can be. Think for just a moment about how ‘abundance’ can diminish the ability to create, and more specifically, retain wealth:
If you recognize that any form of ‘abundance’ comes with its own set of problems, it is much easier to create positive economic multipliers as you work to minimize negative ones. ¤¤¤¤¤ P.S. Years ago, I read that when large auto manufacturers were first ‘competing’ against each other and wanted their production numbers to be high, one or more companies would ‘scrap’ new cars if they were manufactured just for the ‘numbers’ and fields of brand new parked cars could be found, rusting away. My first reaction was: You’d think they could have run promotions like ‘win your first car …’ or perhaps have donated cars for ‘not-for-profit work’ but then it would have been obvious that the production numbers were a bit faulty. P.S.P.S. In Sidney Poitier’s book, The Measure of a Man, he noted that before the world had a lot of fancy crushing equipment, people in his childhood village on an island used to crush stones by hand to create the gravel needed for construction / concrete. They’d leave the gravel in their yards until there was enough to sell and no one (to his recollection) stole from anyone else: You just didn’t steal the value of another’s labor. |