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Video: Alvin Toffler on the New Economy

December 10, 2010

Even as Bob Dylan croons ..

Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone.
If your time to you
Is worth savin’
Then you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’.

…Alvin Toffler articulates how the new economy is taking shape.

“To think that the new economy is over is like somebody in London in 1830 saying the entire industrial revolution is over because some textile manufacturers in Manchester went broke.”

An reviewer provides a very detailed review of the hardbound.

Robert D. Steele – This review is from: Revolutionary Wealth (Hardcover)

Their first key focus is on TIME and its relation to space, knowledge, and effectiveness as translated into wealth. Innovative businesses are going 100 mph; civil collective groups at 90 mph; the US family at 60 mph, labor unions at 30 mph, government bureaucracies at 25 mph, education at 10 mph, non-governmental organizations including the United Nations at 5 mph, US politics and the participation process at 3 mph, and law enforcement and the law it enforces at 1 mph. This is really quite a helpful informed judgment as to the relative unfitness of all but two of the groups.

The TIME section of the book has some very interesting insights including the fact that anything that requires time, like filling in a form, or that adds time to a process through regulation, is in fact a TIME TAX that is more costly than an old money tax.

The Tofflers note that vice is globalizing faster than virtue. This is very important from a taxation and social goods perspective.

They spend a great deal of time discussing the intangible economy that consists of non-rival knowledge that can be shared and bartered; volunteer time that produces economy value (notably parents who teach their children sanitary habits, how to speak, and discipline or social IQ); and alternative forms of capital–social, moral, whatever. They point out that 60% of the value of the industrial era companies is intangible knowledge, while almost 100% of the new economy is intangible.

for a more detailed review click here

In the following videos, Alvin Toffler expounds on the New Economy based on his book “Revolutionary Wealth”.

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The Philippines cannot keep on using 18th century thinking in the dynamic, competitive, real-time, 24/7 markets of the 21st century. First wave agrarian economics looks at economics as a closed system – if you have the land – i can’t have it. In the knowledge economy – what I know, you too, can know – and we both or more of us can leverage that same knowledge of technology, markets, structures – information – to create sustainable and viable enterprises of the 21st century.

Competing on domestic factors costs alone is doomed to failure. Philippine companies that retain the first-wave centric view will perish. Instead of demanding that the international economy (which is already in the third wave or knowledge economy) retrogress into a first wave state, the Philippines should start looking at a more regional view that includes comparative advantages throughout the value chain and supply chain – and deliver value all across domestic and global markets and market segments – and that takes a third wave society mindset.

The Philippine economy has to make the adjustments – and acquire the capabilities and will for doing so – if it hasn’t done yet.

The alternative is obvious – refuse to innovate and listen to the market – where we then dig a deeper hole for ourselves and perish.

In closing, here are some Alvin Toffler quotes to remember :

Future shock is the shattering stress and disorientation that we induce in individuals by subjecting them to too much change in too short a time.

Change is not merely necessary to life – it is life.

The illiterate of the future will not be the person who cannot read. It will be the person who does not know how to learn.

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