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Greg Jones

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Diversity is the key that underpins what our capitalist system and nature itself requires to be stable and grow.

The Diversity Principle

Where game theory fails is in the principle of diversity.
If you consider that our capitalist monetary system is clearly Darwinian in nature where the best and also the biggest wins, it tends towards every larger financial and trading structures.
It also follows that if you recognize that capitalism is Darwinian in nature that it has some basic attributes similar to nature and and therefore needs to managed as such.

The basic idea that only that capitalism can regulate itself producing ever bigger financial and trading institutions fails to recognize the need for diversity in the market place.

In its simplest form, imagine a local market that only had four stalls each selling the same thing, naturally it would stagnate by its on lack of diversity.

This is where the idea on a global level we have been pushed to amalgamate and centralize such as in the Euro single currency which has caused stagnation and lack of diversity /growth.

On a local level we can see the stagnation in local economies brought about by the shopping giants and retail outlets. The idea that bigger is better totally fails to understand the need for diversity in the market place.

On a global level and local level the protection and promotion of diversity and diverse trading conditions needs to be addressed and considered in the same way that game theory was embraced.

Diversity is the key that underpins what our capitalist system and nature itself requires to be stable and grow.

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  • Jun 13 2012: Thank you for the interesting replies

    In reply I would point out that as in nature there are parallels with capitalism which is also Darwinian

    As in nature a landscape that only contains super predators soon becomes a wasteland. An unmanaged environment has checks and balances that eventually sees the hierarchy of predators and other species change with the super predators dying out to some extent.

    I'm am proposing that big business not only manages their local environment but actually promotes minor competitors even if they are unrelated to their business model. As within nature a diverse macro economy provides a stable and healthy environment for sustainability and growth .

    In the present model big business feeds on the environment pushing out minor competitors leaving local economies a wasteland as it would in nature.

    On a global level a system that only contains 3 or 4 super economies and very few currencies will also stagnate through lack of diversity which is a basic principle from the trading markets before the Roman times.

    The principle of diversity in the market place whether it be a small localized macro economy or at a national or international level has been overlooked by the omnipresent idea that capitalism can't be managed and must be left to the Darwinian belief that the finical environment will regulate itself without massive human cost,the idea that an environment where the super predators can consistently grow without a healthy diverse environment to sustain it.

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