Optimize The World
This blog is aimed to expose some ideas to optimize the way the world works and try to put some ideas to optimize it. These ideas would include how could we use technological advances to increase welfare around the world and some recommendations everybody should follow in all businesses to try to make the world a better place to live. If these ideas were put into work we would life in a better and more fair society and we would probably be happier.
There was a time when people liked high quality long lasting products because they were going to last a lifetime. But this changed and now everybody seems to care nothing at all about the durability and quality of products and prefer to buy more bad quality products to be able to change them for new and different ones when they broke.
Nowadays price is all that seems to matter. I'm tired of seeing companies selling very bad products and services and people buying only that kind of products because they're only seeing the short-term price. But what they don't realize is that this bad products and services are basically bad investments because in the end "cheap is expensive".
People's preference for variety has pushed them to buy low quality goods because you have to be very rich to buy lot's of the high quality ones and everyone wants to have everything that is fashionable. Everyone is worried about what other people think about them (you can see that specially on the way people use Facebook) and that's one of the reasons for buying many completely unnecessary things.
This is a very inefficient and ecologically unsustainable trend because we live in a resource limited world. However I see that something is beginning to change. We are currently watching this trend in the food market. A few years ago fast food became massively spread around the world but now when governments have realized the huge long term costs (illness, obesity) that this has caused and they're trying to change that. Nowadays more and more people are beginning to prefer organic food because in the end you are what you eat and if we eat bad (chemically intensive and low quality) products our health will be seriously affected in the long term.
I hope this ecologically raised food trend begins to spread on all other markets (technology, cars, furniture, clothes, etc.) and people begin to change the way they behave as consumer, acting more responsibly.
Should we change the way we act on our shopping, acting with more responsiveness, we could Optimize the World!
I have always asked myself why throughout the world politicians are such bad leaders.
People chooses them by means of democratic elections to lead the country to a better future but politicians almost always let their people down and also deceive their people.
From my point of view politicians are such bad leaders because:
- Lack of specific skills and education: Most politicians have received a law based career at least on most European Countries. This is not the knowledge that is needed to cope with certain situations like the current financial crisis and does not guarantee any good decision in any matter at hand.
- All politicians should be educated in business management and administration because a country government is like the biggest company in each and every country. In addition, a government is in charge of decisions involving the largest amounts of money and as a consequence people that would take this decisions should have the required knowledge to predict the consequences of their decisions.
- Languages knowledge: On a globalized world all politicians should be able to understand each other at least in what has become the defacto standard the English language. If translators have to be in the middle of negotiations things won't be fluent.
- Reelection based decisions: This is one of the most important deficiencies a politician has from the day it's born, it always want to be reelected. As a consequence, all decisions that have to be made are biased by this reelection thought and therefore are wrong. In some occasions there are things that have to be done for the greater good without thinking in electoral consequences.
- Lack of vision: While businesses leaders usually have a clear vision of what they want their companies to turn into, it's really frequent that political leaders do not have this perspective and rule the country on a day by day basis without a clear vision of the future they want for their countries. This vision a leader must have has to be in the root of all the decisions to be taken.
- Economy knowledge: How can a country leader rule the country without any knowledge about economy? In my opinion, and now more than ever, it is essential that good leaders have a clear understanding on how the economy works since all their decisions would have a tangible result on the economy.
Currently, I can see only one leader in all the world that is not thinking on reelection and has a clear vision of what has to be done, the prime minister of Italy Mr. Mario Monti. He has not an ideological affiliation and is an economist and this is making him a good Italian leader.
He is leading his country thought the right path during these hard times taking all necessary measures without ever having any doubt about what has to be made. I think he will be vital on the European Union to help resolve all the problems that are currently being tackled since he is the only european leader that is not worried about the reelection (this is not something that can be said about Angela Merkel and other european leaders).
I am sure about this, if we had better politicians we could easily Optimize the World!
I have always asked myself why do humans, despite our genetically implanted tendency to laziness, work so much. I have only one possible answer for this, human greed.
As explained by the Maslow pyramid, once we have satisfied our basic needs (food, water, shelter) we search for health, love, self-steem, creativity on upper layers of this pyramid in order to fulfill our inner needs. But I think that in today's consumerized world there is a perpetually dissatisfied layer of this pyramid (placed just above health for most people) that we should call "products and properties ownership". Most people stop progressing once they reach this layer of the pyramid and work more and more just to satisfy this layer forgetting the ones above it (love and belonging, self-steem and self-actualization). In addition, I think that to be truly happy with our life we should think more about satisfying our most important needs and forgetting about externally imposed irrelevant needs.
If you take into account the impressive last century productivity improvements of the human race I find it difficult to find one reason to explain why working hours have reduced so slowly. What's more, in some economies (like China), working hours have not been reduced at all. On an ideal world (with a fair distribution of benefits caused by this high productivity) we should be living better and working less than our grand great-grandparents. However, this is not happening because our needs rise in parallel with our productivity gains.
Human greed causes goods prices to go higher because of the demand of new products and properties that we create when we earn money. Due to goods prices increasing we have to work more in order to be able to buy more unnecessary things and that's an spiral that will never end. Even more, every now and then, someone creates new needs (like a car for each person, a smartphone, a tablet, Nespresso) which helps keep this madness working.
On modern developed economies people spending in food is as low as 30% of the total income. In fact quality of food has gone down in recent decades because of chemical-intensive agriculture. That's awful because it means we spend less and less money on what we really need to be high quality (what we definitely are) and we spend more and more on high quality goods that we don't really need to survive. Nowadays, some clever people are beginning to tackle this issue seriously and that's the foundation of the organically grown food trend that we're experiencing and that in my opinion it won't stop.
What's more, with progressive tax systems on which you pay a variable percentage of your income depending on the salary section (for instance 10% from 0 to 10.000 dollars , 15% from 10.000 to 30.000 dollars) , it doesn't even have much sense to work so much.The more you work the more taxes you would pay to the state. Every additional (paid) hour to your working week causes a decreasing marginal benefit to your effective wage.
Let's think about it and rethink our priorities and return to a responsible consumption of goods that makes this world more sustainable! Let's optimize the world!
Imagine a world with only electronic-based economic transactions, it would be a better world, don't you think?
Let's analyze this question as deeply as I can.
Firstly, I would like to analyze the positive outcomes of this situation:
- If we were in a world were physical money would not exist all our payments and incomes could be controlled by states so our income statement would be automatically generated by governments and would be totally reliable.
- No economic transaction would be able to overcome tax payments and tax havens would be devastated. I think this is one of the best outcomes of this kind of situation which would be very good since this is one of the biggest problems our world is facing today. No government is doing anything to control big fortunes not receiving the same amount of fiscal pressure that middle class people are suffering because their fear of losing the people and businesses that generate this fortunes in front of other countries.
- Lot's of woods would not be wasted on printing and renovating physical currencies.
- A very big amount of metal would not be wasted on creating coins.
Secondly, obviously there are some evident drawbacks from this kind of situation:
- Privacy: Since all economic transactions would be recorded and associated with out name, all of our spending would be available data. Strong measures should be taken to try to prevent this information from falling into the wrong hands. But since this is already the case of our medical records similar measures should be taken on this scenario.
- Black markets: Some people should be tempted to create black markets with products that cannot be seen by governments (like drug trafficking) in which people would exchange goods (since money would not be available) for this illegal products.
- Banks fees: In this scenario bank fees should be strictly reduced by states since current fees (for instanceEscribe texto o la dirección de un sitio web, o bien, traduce un documento.Cancelar traducido automáticamente por Googlewithdraw money from an ATM or the commission that banks charge shops for electronic card payments) are totally insane and are very far from the real costs that banks with such infrastructure support. Did you know that if you had to put a cost into electronic transactions it should be so low you wouldn't believe it? Bank fees are one of the higher margin businesses around the world trade.
And last but not least, despite of big brother related fears I hope this electronic transaction world someday becomes real. For instance, It has been proven that street surveillance reduces crimes in places where they are put into operation. To sum up, I think this would be very effective to reduce tax fraud and most important of all it would be much more difficult to put money into a tax haven since people would not be able to physically move it!
I really think this kind of world would be much more efficient and optimal so this would be a good way to Optimize the World!