We run our world on them, but do we owe it to ourselves during these seriously troubling times to seriously challenge them? I would suggest we need to totally rethink our paradigms, given that some pretty fundamental globally impacting decisions are being made based upon them.
Austerity as a way out of recession has driven global policy, particularly in Europe. The assumption was that the empirical evidence used in it was correct. Ops. Now you have a situation in which over 50% of young people are unemployed, economies like Greece are retracting faster than ever predicted and a huge amount of social unrest. Incidentally, while we are talking assumptions, here’s one – that these economies will solve these issues through political and economic means…. i predict not, The last time we had huge social inequality and a ruling class that ignored the masses, revolution occurred. What is clear to me is that economists don’t actually know what is going on. Their models are predicated on some structural stability that might be mythical … so its all wrong? Could be..
Next assumption – that banks are safe and trust worthy. Clearly not, these institutions have gotten away with some of the biggest scams of all time, some overtly criminal
These traffickers didn’t have to try very hard. They would sometimes deposit hundreds of thousands of dollars in cash, in a single day, into a single account, using boxes designed to fit the precise dimensions of the teller windows in HSBC Mexico’s branches
Others, a massive con, convincing customers that they are acting in their good only to add no value at all…
The entire financial management industry is a rentier arrangement: they skim immense profits and return no productive yield at all.
Would you, as a member of the public be ok if a member of known organised crime ring went into a powerful public position, like the ministry of justice and got some monetary benefit by making that move? Seems absurd, yet that’s what is happening in the finance industry. Assuming that those in the public sector are working for our good seems naively absurd in today’s world.
What about the assumption that you should go to university, get qualified and you’ll do well in life? Another myth busted by the GFC, leading some to overtly state its not worth it.
So before you embark on your next initiative, challenge everything.
- Who is proposing it, the people with the most to loose, or those with true intent, it is a rare turkey that votes for Christmas
- What belief drove the decision you are being asked to make,
- Is the data accurate ( like Reinhart, Rogoff)
So as a starting point to some new paradigms…economists don’t really know whats going on, banks aren’t trustworthy, CIO’s and IT shops are knowingly hampering your business, education isn’t always the answer, innovation – everyone is talking about it and virtually no one is doing it.