Quite a few events in life happen in which their success is claimed by many fathers. But when you look closer and understand the facts, underlying that success are often people who succeed not because but despite the indoctrination of their forefathers.
Always question authority
For one, groundbreaking innovation is dependent upon the ignorance and even retaliation of the opinion of our forefathers, or at least the majority of them. Not because all of our forefathers were necessarily wrong, but because the majority misinterpreted (not unlike the telephone game) and simply echoed the opinion from one of their forefathers who may have been right. In other words, the descendants of those who were right provoke an arbitrage to their children that – unquestioned, uncalibrated and without proper nuance – is often simply wrong (a common problem with downstream thinking).
For that reason one should always question authority, not necessarily to prove the opinions of our forefathers wrong but to ensure their fresh legitimacy in this day and age. And to re-establish the merit that is needed to make a lasting positive impact on this world.
The past is wrong
Economic, social and financial systems are the derivatives of the opinions from those who came before us. Those systems are deemed to be valid to those who come after, and often remain unquestioned (but here). Yet according to the above described telephone theorem those systems are by definition regressive and become increasingly ineffective. Not just because time changes, but because the merit of the opinions of the few who were right was underestimated, misunderstood or misinterpreted.
And when we detect deficiencies in our systems we tinker with the outcome, artificially constrain unwanted behavior and artificially stimulate positivity to solve a problem quickly, and to score quick personal points without regards to the spiraling ramifications long-term. For decennia we do so until we find ourselves with no more quick buttons to push that change our economic outcome.
The future is right
It should come as no surprise that our children, as they grow up, do not look up at us and certainly do not want to follow in our footsteps. We have deployed opinions that in most cases appear to be untrue, and we deployed economic and financial systems that deliver artificial advantage or disadvantage based on that ill-conceived arbitrage. What we leave them with are systems that are poised to hold our children hostage in mediocre compliance, often for the rest of their lives. No wonder they resist.
We should not discount the opinion of our children (at the right age) who in search of developing their own merit, recognize that the systems we set up for them have lost theirs. Because only from those who disagree with the status quo can emerge the potential for a brighter future.
So, between the few of our founding forefathers with righteous desires for freedom and the implementation of a future that is right lies a minefield littered with economic “geniuses” who brought us the economic malaise we face today, and who seem to have all but disappeared in offering a viable and pragmatic economic path forward.
We remain a resilient people, because we still harbor the most ingenious global entrepreneurial capacity:
- Despite that we have implemented our forefathers dream of a free-market economy as a silly laissez-faire implementation of an economic free-for-all, void of the regulations that make every participant adhere to and be protected by the same definition of freedom.
- Despite that we allow the arbitrage of our implementation of a “meritocracy” to be in flagrant violation of free-market principles and artificially (and cunningly) constrain the dynamic range of the definition and recognition of such merit.
- Despite the overwhelming sub-priming of Venture Capital (along with other financial systems), the few entrepreneurs who escape its wrath prove capable of producing socioeconomic value that continues to change this world.
We have succeeded despite our flawed economic implementation of economic freedom. And now is the time for us to develop a new, more disciplined economic framework so our capacity to innovate can excel, not despite but because of it.
- Price loses its value when money loses its trust. — Georges van Hoegaerden - February 20, 2015
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- Economics: A system designed to maximize personal freedom protected by the paradoxical rules of collective freedom. — Georges van Hoegaerden - February 2, 2015
- Capitalism without the deployment of operating principles that secure a meritocracy is an oligarchic system in violation of the most rudimentary definition of freedom we owe ourselves. — Georges van Hoegaerden - February 1, 2015
- Equality is a fantasy of extraordinary proportion. — Georges van Hoegaerden - January 21, 2015
- If no man is created equal, why then do we debate equal pay? — Georges van Hoegaerden - January 21, 2015
- CalPERS pre-empts asset allocation - January 21, 2015
- Homogenization of people is a bad idea, we ought to focus on the value of our differences, not on the rut of our commonalities. — Georges van Hoegaerden - January 14, 2015
- Only realism can breed justifiable optimism. — Georges van Hoegaerden - January 14, 2015
- The fix to improving asset management’s effectiveness lies in its reinvention, not in the optimization of its bloated past. — Georges van Hoegaerden - January 13, 2015