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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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    Nov 10 2012: Awesome thought.

    I think that is indeed where we are moving. The flood of information for the last few decades has changed a lot of things. While it does have its drawbacks in the generation that's being built glued to an illuminated screen, it has given incredible amounts of information to an amazing number of people. The spread of knowledge is accelerating. And all that information is getting stored in each person, expanding their bodies of knowledge farther than was ever possible before. It's slowly taking us out of our roles as cogs and walking us into utilizing all our knowledge and resources to live.

    For example, I am a musician, dancer, and fitness instructor. I've changed course and focus over the years but I am now using all of my skillsets simultaneously. I do this simply out of joy. They are things that I like to do. They make me happy. But its allowed me to start to walk away from that place of identity that our system wants you to have. It wants to classify you as a lawyer, business man, administrator. It makes it easier to sell to you.

    But we're now starting to move a place where people are finding a fuller sense of self and responsibility. People who grow their own food. Bike instead of drive. Help people who obviously need it without asking. Have 2-3 "jobs" but simply because you're doing multiple things you love, not because you "have to make money". This system makes our physical dollars flow in more organically because you're doing what you love, you're saving more because you're being responsible about eating well and being good to the environment, and you're constantly getting meals and gifts and treats from friends and neighbors because you help them out all the time without them even asking.

    This is a much more joyful way to live. It redefines what capitalism is; no longer capitalizing to acquire great quantities, but capitalizing on all the opportunities you have to give of yourself to the world. I promise it's more fun that way.
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    Nov 9 2012: transparency?!!!
    I think that devils dominate the world, We need a global revolution against all regimes, no transparency, no justice, money is the main core, authorities and private wealth converge, regimes are supported by business men and their media, public believe everything exported by media, people are suffering, the problem is that sufferers choose at last their killer, you know drowning man will clutch at a straw, we want first to beat corruption, monopoly, exploitation to be able to build our new life our new world..you know wars and disputes are created and supported by large countries every day-such in Africa- so that large countries can sell weapons and gain money...no care for humanity, no care for me, no care for you...Hope truth, justice, love, peace will prevail
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    Nov 17 2012: I really enjoyed this conversation, thank you friends!
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    Nov 17 2012: Humans are not born with skill like cheetahs or any other animals are not born with skill they are acquired by training or a study which takes time. Being human is not a skill set. Definition of "Skill": Proficiency, facility, or dexterity that is acquired or developed through training or experience. Instincts are something you are born with like walking or breathing or eating and many other things. I don't know if I will have a chance to respond to the next post but any ways nice conversation and thanks for having patience and explaining what the new economy has to hold. I don't know how the average US citizens would adapt to this economy.
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    Nov 12 2012: So your are saying Time does not have value if somebody didn't have a skill set? Hmm? I don't believe that because a skill set is acquired by time. That time was valued to learn that skill set. Anything can be valued with anything like 25 chicken equals one cow so are you telling me that your time can't be bought with all the money in the world? Don't get me wrong time is the most valuable asset a human has.
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    Nov 9 2012: Human skill sets are wealth but not currency. Currency has to be easily moved from place to place, to be a means of exchange. Time on the other hand has to do more with currency then human skill.
    Things get done because of people's time devoted for a mean of exchange which is money. A human skill set that is not used is not wealth or currency, Money not used is saving. You can't have a saving of human skills but only the potential to use human skills.
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      Nov 9 2012: Currency is the medium of exchange of skill set (product or service). As far as mobility is concerned we are already iterating on plastic, electronic and mobile payment gateways.
      I honestly do not yet know the relation between time and economy. ....If you could please help me understand your perspective I will be grateful.
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        Nov 12 2012: Ok a skill set is used to do a task to make a good or to provide a service, right. But not all skills are equal with in individuals but markets has set up a plan for this, they average the time it takes the qualified individuals to do a certain task so the markets can have a set price. Most jobs are based off of time, you think of hourly wage or even being paid a commission it all has to do with time. When you have a skill set this is kind of an equation that you get paid by. Time x skill set = wage. Have you ever heard time is money well it literally is money, when you hold a dollar, you are holding your own time in your hand, to trade for somebody's (Skill Set) time. To be able to trade skill sets you need a mean of exchange which is not skill sets which is valuable to be able to trade. Are currency is back by GDP which has to do with nationality skill sets.
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          Nov 12 2012: Any exchange or trade primarily happens because not all skills are equal. The current practices of economics, job and wage are centered around the notions of the previous century.
          Time has value only when it is coupled with a skill set and the only trade which happens universally is the exchange of skill set and it is thus the only currency.
          " Time is money" is a metaphor for me, I would not want to take it literally as I believe it will be an under valuation of time!
  • Nov 2 2012: too much of advancement gave path to dishonest means to raise wealth. as on today the crooked most will win the market. every one wants to be wealthy with out efforts. since rarity lost its axis. the commercialized world is connected with machines. the human relations are lost. reliability of humanity and machine is well clear. communication skills, centralized air condition administration institutes are good example of degenerating factors in intellectual sphere. almost all business shots are born with golden spoon. their grand old paas have earned with sweat besides many adverse conditions. we lost the grip on literal world. education has become a tool of money earning. whole planet is dwelling around earning. the basic purpose of living is lost. i being a consumer suffered a lot/suffering due to moderators instead human mind to solve my problems.
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    Oct 20 2012: but how can human skill be weighted and measured
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      Oct 21 2012: Skill set is being measured already on the sites that the speaker has quoted in the talk. The iteration today needed is to scale these skill set measurements from small time job works to an economic scale.
      Similar to the concept of localization this scale varies from country to country.
      Global vision aligned with local action is what social interaction need to achieve to drive an economy
      and once that is achieved local human resource needs to be integrated.
      its just my perspective.
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        Oct 22 2012: Which speaker which talk sorry I did not watch all the talks.

        I don't know I have spent many a day trying to figure out how to get rid of money. I personally think that the people who do work/like to work will always work even if you gave the the choice not to work. Why couldn't every one live a semi-retired life. 50% work half a year 50% work the other half and machines do the rest.
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      Oct 22 2012: The basis to the current conversation are the four ted talks which are mentioned under the heading "related talks" just below the brief synopsis.
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        Oct 22 2012: yeah I saw, I comment on a lot of conversation and don't always have the time to watch the videos. However I will watch them :)
  • Oct 20 2012: Currency is merely a token. The problem is not with the token but the creation and distrbuton of tokens to the extent that wealth accumulates in the hands of minority to the detriment of those least able to compete.

    In the white paper for people-centered economics, we said

    "The Information Age can become the pinnacle of human civilization, the Golden Age. Or, it can become the end of human civilization. We get to decide which way to go, and act accordingly.

    Dismissing people and consciously leaving them to die is probably not the way to go.

    Economics, and indeed human civilization, can only be measured and calibrated in terms of human beings. Everything in economics has to be adjusted for people, first, and abandoning the illusory numerical analyses that inevitably put numbers ahead of people, capitalism ahead of democracy,

    Each of us who have a choice can choose what we want to do to help or not. It is free-will, our choice, as human beings."

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      Oct 20 2012: Currency is merely a token. The problem is not with the token....
      Energy always has a medium of exchange. In the primary medium of exchange it is called food. The only other natural medium of exchange is social interaction. Currency was later developed when the social collective realized that since natural resources are limited a monetary currency will make an individual accountable to consumption. And the basis of this consensus was limitation to communication.

      The information age..
      Industrial revolution gifted us communication technology. And as we searched for the true meaning of development that we knew was lost in translation, globalization of economy happened.

      Dismissing people and consciously leaving them to die...
      Today with the social networks we are witnessing how consumers are driving business strategies. Its a only a matter of time when consumers realize their true potential which can save lives through their interactions.
      And the way human interaction is happening today. A user will definitely make the right choice on which to go. He always has!

      Economics, and indeed human civilization....
      Economic interaction originated as a mere tool to help a human coexist with his environment and as conversations today become more and more transparent Human skill set does look like the only lucrative investment.
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      Oct 18 2012: Social interaction I believe is that motion of thoughts which moves consciousness out of stagnation!
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    Oct 18 2012: The only true application of the system Karl Marx devised is the American Amish religion. Within there are skill sets of pig farmer, cow raiser, wheat grower, horse shoer, and all other trades. Each of the families get a direct proportinate share of the stored goods. They are excellent woods craft persons and I can not pass a Amish baked sale.

    Is this the sort of economy you are suggesting. If so how would you differ this from the barter system.

    On the issue of trust in your equation. Why would I ever hire someone who has a bad reputation for his work. Trust is a improtant part of the hiring process. The most important part of advertising is word of mouth.

    Finally, The Amish community can do this because it is a small and closed society. The life style is simple and the needs attended to are basic needs. If for instance the Amish allowed computers into the society then they would by necessity no longer be a closed society. The need for parts, electricity, power plants, etc would change their world.

    It would be my opinion that this works in small managable groups but would not be effective on a large scale. If a incident occured from country X involving country Y how would it be resolved. Country X would stop relations with country Y and the word would spread and many other countries would stop bartering with country Y. Even if country Y was known for its skill set there would be no trust.

    Hope I understood your conversation correctly. If I missed the mark please inform me.

    Thanks ..... Bob.
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      Oct 18 2012: About the Amish community I have learnt it today from you and would like to thank you for the information.

      About the new economy, I am not trying to differentiate it from any existing system. I have always believed in the saying that we need to do things differently rather than focusing on doing different things.

      The issue of trust.- The frame of reference here is the new economy. Don Tapscott in one of his talk has established that sharing, collaboration, transparency and empowerment are the four principles of the open world ( read the new economy). What I have learnt from his talk is that empowerment is how the internet is helping an individual to understand that the core skill is integral to a specific quality standard, version upgrade, market expansion, advertising or any traditional function of an enterprise involved with production. Technology is helping in maintaining the transparency in the work profile of an individual. Accountability matrix ( read reputation) is a
      a built in function of internet today.

      The small and closed community. - There is a famous phrase today that the world is a global village. We are going into times where we understand that we share a singular asset and our social interactions will keep this community close -the only difference is geographically we are spread out around the world. The only community of the new economy is the 'user'.

      Consensus and action on Energy production and sharing is still some time away while we work on smarter technologies of energy production, sharing and consumption.

      Country X and Country Y - I wouldn't worry much about that. " Collaboration at astronomical basis" as remarked by Don Tapscott is yet to be achieved. We are yet to migrate to the new economy. We have just begun and on ted We are just sharing our vision and perspective about our experiences so far.
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    Oct 18 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?
  • Oct 18 2012: Nothing costs money.
    Everything costs people.

    Things don't "GET DONE" because of money.
    Things "DON'T GET DONE" because of money.

    It is always people doing it.
  • Oct 18 2012: I'll keep saying it:
    Nothing costs money. Everything costs people.

    In the monetary system:
    Things don't "GET DONE" because of money.
    Things "DON'T GET DONE" because of money.
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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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      Oct 18 2012: It will be my pleasure! In the meantime, you might find my conversation above with Fritzie Reisner interesting!
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      Oct 18 2012: What happens when people talk... a lot happens when people talk!

      Man is a social being where in, once his biological needs like food , water and shelter are met it is social interactions that he engages in. The human mind is incredible where in it constantly converts information into knowledge. And interactions are the primary source of information. Why it does that? To sustain. Sustainability is the very basis of the human mind.

      Being social is an essential instinct of the human mind, as a collective it responds better to a crisis.
      A crisis can be explained as a threat to human sustenance, be it interruption in food and water supply, safety, security, shelter, or natural disaster, anything which is a threat.

      As a collective mind we have learnt that in order to coexist with our natural environment we need to be accountable, as our natural resources are limited. Thus, we arrived at an interaction amongst ourselves which would require an individual to earn his needs. It is called economy.

      Currency is the medium of exchange in this interaction. This again depends on the sources of energy and its trade. While we are still trying to make smarter energy production technologies the energy resources currently available are still limited. Hence, increased consumption and lesser production makes this medium of exchange week.

      Mobile payment is already an indication of electronic currency taking over the traditional currency. This coupled with the fact that internet today allows social interactions to happen without any boundary seem to suggest that social interactions will drive economic decisions.

      This phenomenon might sometime in the future call for a change in the very basis of currency. And I believe that human skill set is one of the top contenders for it, after all it is a human mind.

      I hope my explanation this time is simple enough. Please feel free to revert.