Political And Economic Basis For Innovation America 30a Thr
A Political And Economic Basis For Innovationamerica 30a Three Act P
A Political and Economic Basis for Innovation America 3.0 * A Three act play
New Reality 1 Food Crises & Revolution The Arab spring uprisings were more to do with food prices than politics. Third Shock in 4 years We are about to enter a new cycle of food price rises Population Explosion All inexorably driven by population growth in places with food and ecology stresses The Coming Water Crisis Lack of water being the most dramatic. Ethnic Tensions In the Mid east, almost every country, including Israel will be wracked by sectarian tensions for years to come. We are a bystander as recent events have shown. Starvation=Migration Ecological stress leads to migration, much of it towards Europe European Muslim Tension This has led to right wing backlash throughout Europe Chinese Dissent According to the New York Times authorities recorded 127,000 so-called mass incidents in 2010 Even in China, dissent is on the rise and will be accentuated as economic stresses expand. * Balance of Power We are entering a new era where “it’s every nation for itself”—as Merrill Lynch recently reported.
This might look like earlier eras where there was a balance of power, such as the hundred years after the Congress of Vienna in 1814. New Reality 2 -We really live in 2 americas - Gun Control Laws 2 americas once again Blue subsidizes Red California paid $318,000,000,000 in Federal Taxes in 2010 Rural Power 215,000 citizens 18,000,000 citizens Today, with the filibuster, 21 of the 50 states, representing 11 percent of the population, can muster the 41 votes to stop a majority in the Senate. John Barasso-Wyoming Barbara Boxer-California Gridlock This does not have to be our future. “Congress has largely been reduced from a lawmaking entity to a political operation.”-New York Times, July 12, 2013 -The people who want to make sure there's no federal gun control, marriage laws, they can always block it -Nothing happens in Washington (think about it) Progressive Federalism “It is one of the happy incidents of the federal system that a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.”–Justice Brandeis False Narratives America 3.0 Energy independent Reduced carbon footprint Highly educated public Reduced Inequality Fiscal Sanity How do we get there? America 1.0 “We shall be as a city on a hill. The eyes of the world will be upon us…we must be willing to abridge our selves of our superfluities, for the supply of others’ necessities”—John Winthrop America 1.0 We hold these truths to be self-evident, that all Men are created equal, that they are endowed by their creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness—Thomas Jefferson It will be our policy to cultivate tranquility at home and abroad and extend our commerce as far as possible—George Washington Liberty, equality and anti-imperialism Federalism “The true theory of our Constitution is that the states are independent as to everything within themselves, and united as to everything respecting foreign nations.”–Thomas Jefferson The three ideas of Washington and Jefferson made us unique Abandoning Federalism and Anti-imperialism But we have abandoned both Washington’s anti-imperialism and Jefferson’s federalism If America were a company “We must lower the center of gravity at IBM”—Sam Palmisano, former CEO The centralization of power has led to sclerosis and like big companies, we should force change. America’s Advantage Freedom and Equality Tranquility and Trade Federalism and Experimentation We can restore all three elements by 2020 and take advantage of this networked revolution The Public Good Local Federal America 1.0 America 1.0 was built on a split between local control and financing of schools, roads bridges and public services and Federal control of big interstate projects like the railroads or interstate highway system. It worked pretty well This combination of local and federal leads to the greatest gain in income per capita in history. The Inventive Society It also lead to a very innovative society where bottom-up enterprise could flourish in regional pockets of experimentation America 2.0-Making the World Safe for Democracy Woodrow Wilson entered the First World War and Federal Government spending began it’s relentless climb The Neoconservative Gospel The twin poles of the Neoconservative philosophy first elucidated by Irving Kristol in The Public Interest in 1965: In domestic affairs the national government should shrink (by cutting taxes and business regulations) In foreign affairs the government should grow (by becoming the world’s sole military superpower). Conservatives did not understand these two principles could only lead to record deficits. Reagan & Bush’s Legacy Budget Priorities The Free Rider Problem The National Security State Rise of the Plutocracy Although tax cuts for the top 0.01%, it killed the middle class. Savage Capitalism The Crash of 2008 Productivity & Wages “There appears to be a new tendency to substitute against labor. It’s permanent, as long as there are alternatives like outsourcing and robotics.”—Allen Sinai The Outsourcing Revolution Robots & Jobs Labor vs. Capital “Only 30% of the American workforce is actively engaged in their work”—Gallup Oligopoly Number and Percentage of U.S. Manufacturing Industries in which Largest Four Companies Accounted for at Least 50 Percent of Shipment Value in Their Industries How the Other Half Lives Bottom 2 Quintiles (40% U.S. Population) Recovery without employment 4 million fewer workers We have recovered from the crash of 2008 on a GDP basis, with 4 million fewer workers. Fiscal Cliff or Sanity? Reduce our Military Footprint Declining Foreign Oil Dependence Renewable Energy That’s enough for 600 Million lightbulbs The Soft Power Era It is no longer a question: the sources of leadership, innovation and change are coming from Decentralized, Networked enterprises and governments. Scale and Fragmentation Coexist Proctor & Gamble, Coca Cola, WalMart, Pepsico, Colgate Palmolive, Kimberly Clark. General Mills, Kraft, Kellogg, Costco, Whole Foods, Altria, Mondelez VDC Jobs, Sustainability and Education Progressive Federalism I use California as an example of how New Federalism would work. It could apply to any state. Reversal of Fortunes Energy Technology Efficiency Invest, Divest & Prosper Plug-In Hybrids Modern Nuclear Power Cooperation between builders and insurance co’s Sustainable Agriculture Steinbeck Innovation Cluster Transportation and Walkable Cities LA-San Francisco in 2 hours with minimal pollution Federalist Health Care California Lifestyle Health Behavior Schools Education Double Teacher Salaries U.S. High School Teacher-$36,000 (1.2x average income) Korean High School Teacher-2.5x average income Cut State University Tuition 1978 tuition cost for a California Resident-$ 21,000 The Virtuous Circle A Cambrian Moment Cloud Computing Graphic Processing Chips/systems-GPU’s Social Networks Big Data Analytic Engines Sentiment Analysis 2nd Screen-ubiquitous computing Transmedia 5D-building immersive worlds The Imagination Economy The Magic of Innovation The Return of the Golden State