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RAVI CHANDRA PRAKHYA

Amateur Researcher , Looking for an opportunity

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Isn't human skill a more tangible currency than trust in the new economy?

In the Rachel Botsman's talk, she makes an observation about two things essentially: "the new economy" and "the currency" it operates on. Before going further I thought I will first understand the current status. In today's economy currency is the medium of exchange between production and consumption and is based on natural resources of energy and their trade among countries.

In order to understand "the new economy" I looked around on ted for some help and I found that in one of his talks Yochai Benkler observes that "Social production is a real fact, not a fad. Social relations and exchange become significantly more important than they ever were as an economic phenomenon" because " computation storage and communication capacity are in the hands of an ever growing number of users and these activities are the core basis of an information economy." I realized that internet is the driver of the new economy where production and consumption is driven socially.

In another talk Don Tapscott opines that sharing, collaboration, transparency and empowerment are the four principles of the open world.
After having learnt about an open economy in the open world I concluded that the new economy will have the similar dynamics. And I tried to scale the theory to the real world today as the context of interaction are about the real time environment.

In reality today production is less than consumption. And as the new economy is opined to be predominantly social. It will be safe to assume that social interactions will drive our interaction with our natural environment.

At a global scale this means skill set sharing will not be limited to services but will be extended to products. Since energy is the core basis of all and any product the future indicates multi-national energy sharing.

And in that case the only thing that will matter is being a user. Human resource will be globally sourced will A human skill set is thus I believe the currency of the new economy

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    Oct 17 2012: Are you asking whether a person would contribute more to the economy by having more skills but not being trustworthy rather than having fewer skills but being trustworthy?
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      Oct 18 2012: My question is about the dynamics around currency which by definition is the "medium of exchange" in an economy. The new economy is synonymous to the sharing of earth driven by social interactions, which is the only asset.
      And in such a scenario every individual user skill set will have a defined task. And at this global scale of "trade" the medium of exchange I believe is human skill set. Technology today is very much capable of developing an open source matrix for trust. A network of trust will essentially be a part of the user profile.
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        Oct 18 2012: Okay. I thought from the way you posed the question that you were comparing the value of skills and trust. You are, rather, saying that skills and trust are both parts of the set of attributes that define the contribution people can make to the economy.

        And then you go another step, perhaps, to call that value itself the medium of exchange
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          Oct 18 2012: Hmm.. well let me put it this way. Economy is an interaction between a producer and consumer.
          In this interaction skill is consumed and trust is produced. "Trust" in itself is like a quality check which is "one to one" therefore making it just a skill of the consumer.
          Either ways the medium of exchange is "skill" and not trust.
          Think about it!
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        Oct 18 2012: I meant trustworthiness. Sorry.
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          Oct 18 2012: No problem!
          The core value of an interaction in my perspective is skill.
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        Oct 18 2012: How do you see the idea of skill as the core economic value for individuals as different from what we normally assume about people in the economy?

        For example, when someone chooses who will paint his house for him, aren't the potential painters' skills in house painting, trustworthiness, and the amounts they will charge the primary criteria? The person who needs the service may trade off quality for price, thus sometimes choosing the less skilled person.
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          Oct 20 2012: The example first,

          The skill to paint the house is no longer the core product. The painters skill to day is to price it right and leverage his skill as further service to the customer
          for example -post market survey his pricing is least, however he has recommendations based on the home decor and neighborhood. A home beautification plan for additional costs. Product to services is the order of the day. And skill enhancement is a continuous process for the painter.

          Now the first part of the comment-
          Are you asking the difference between the way we perceive individual skill today and those of the new age economy?
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        Oct 21 2012: I was wondering what other than skill that you take as the most valued attribute historically, as you seem to believe the importance of skill is connected to the new economy.
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          Oct 21 2012: The most valued attribute for any system be it social or economic is energy. And I believe that human skill set is the only tangible medium of exchange of energy in the new economy.
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        Oct 21 2012: So, no difference then between new and old economy? Skill remains the most important?
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          Oct 21 2012: The difference in old and new economy is the energy sharing through skill set exchange. It's like a version upgrade of the technology called currency.

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