2019/10/16 | “Bubbles, Golden Ages, and Tech Revolutions” | Carlota Perez

How might our society show value for the long term, over the short term? Could we think about taxation over time, asks @carlotaprzperez in an interview.

[35:00] Golden Ages are very clearly state-led. When you get a Golden Age, it’s because the state is shaping it. And that means taxing.

Finance has to be taxed properly.

We should have very high taxes for anything, any operation, anything that you earn within one day, with like the Fast Finance, and all of these things, 92% tax. That’s not unique. That happened in the 1950s. So, you get 92% tax for anything within one day, 80% tax for anything within one month, 50% to 60% tax for anything within one year, zero tax for 10 years.

So, you actually get finance to be interested in the long term, because without long term, we don’t have proper innovation.

Perez (2019), Exponential View

There’s some supporting information in a 2017 interview.

That is why now is the right historical moment for the government to come back on the scene, boldly, actively and wisely. In a turning point, government is not the problem: government is the solution.

This is what eventually happened from the 1940s. Government action and the Second World War led to mass production and mass consumption. Large numbers of people had access to relatively cheap products. Suburbanization made it profitable for firms to innovate for the family in the electric home with its insatiable hunger for new products. At the same time, the Cold War led to government investment in high tech. The reconstruction of Europe also stimulated economic growth and the demand for equipment and other goods.

Carlota Perez: post-war golden age

The welfare state enabled mass consumption. That’s one reason why high taxes were possible without resistance. The top rate was around 90% throughout the 50s. The money went out of tax-payers’ pockets, passed through the hands of government, and came back as solvent demand for consumer goods or procurement. Firms prospered because they were able to pursue an agreed common vision of what “the good society” looked like and what innovation was needed to make it happen. Everyone was going to have a home with cheap appliances. Credit was available that enabled people to buy houses and goods. It was an intelligent positive-sum game between government, business and society that led to the greatest economic boom in history.

Perez (2017) Forbes.com

Reference

Carola Perez, “From A Casino Economy To A New Golden Age: Carlota Pérez At Drucker Forum 2017”, Forbes, Nov. 25, 2017 at https://www.forbes.com/sites/stevedenning/2017/11/25/from-a-casino-economy-to-a-new-golden-age-carlota-perez-at-drucker-forum-2017

Carlota Perez, “Bubbles, Golden Ages, and Tech Revolutions”, Exponential View with Aseem Azhar, October 19, 2019 at https://hbr.org/podcast/2019/10/bubbles-golden-ages-and-tech-revolutions

About

David Ing blogs at coevolving.com , photoblogs at daviding.com , and microblogs at http://ingbrief.wordpress.com . A profile appears at , and an independent description is on .

Tagged with:
Posted in Talk Audio Download

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Translate
Beyond this media queue
This content is syndicated to Twitter. For professional perspectives, look to Coevolving Innovations; for a photoblog, look to Reflections, Distractions.
  • Strategic Communications + The Brand Stack, Zaid Khan + David Akermanis (ST-ON 2020/09/14)
    Two Major Research Projects (MRPs) — they might be called master’s theses elsewhere — by Zaid Khan and David Akermanis reflect the Systemic Design agenda within the OCADU program on Strategic Foresight and Innovation (SFI).    To graduate, all SFI students complete an MRP.  With many subjects and techniques covered during SFI studies, only a few exercise Sys […]
  • Beyond the Tavistock and S-cubed legacy
    While it’s important to appreciate the systems thinking foundations laid down by the Tavistock Institute and U. Pennsylvania Social Systems Science (S3, called S-cubed) program, practically all of the original researchers are no longer with us.  Luminaries who have passed include Eric L. Trist (-1993), Fred E. Emery (-1997), and Russell L. Ackoff (-2009).  T […]
  • Socio-Technical Systems, Service Systems Science
    In order to move forward, the Systems Changes Learning Circle has taken a step backwards to appreciate the scholarly work that has come before us.  This has included the Socio-Psychological Systems, Socio-Technical Systems and Socio-Ecological Systems perspective, from the postwar Tavistock Institute for Human Relations.  The deep dive on “Causal texture, co […]
  • Causal Texture of the Environment
    For those who haven’t read the 1965 Emery and Trist article, its seems as though my colleague Doug McDavid was foresighted enough to blog a summary in 2016!  His words have always welcomed here, as Doug was a cofounder of this web site.  At the time of writing, the target audience for this piece was primarily Enterprise Architecture practitioners.   [DI] Pub […]
  • Causal texture, contextualism, contextural
    In the famous 1965 Emery and Trist article, the terms “causal texture” and “contextual environment” haven’t been entirely clear to me.  With specific meanings in the systems thinking literature, looking up definitions in the dictionary generally isn’t helpful.  Diving into the history of the uses of the words provides some insight. 1. Causal texture 2. Conte […]
  • Trist in Canada, Organizational Change, Action Learning
    Towards appreciating “action learning”, the history of open systems thinking and pioneering work in organization science, the influence of Action Learning Group — in the Faculty of Environment Studies founded in 1968 at York University (Toronto) — deserves to be resurfaced. 1. Trist in Canada 2. Environmental studies, and contextualism in organizational-chan […]
  • 2020/12 Moments December 2020
    Approaching winter solstice, the temperature in Toronto hovers around freezing, and we see a mix of rain and snow.
  • 2020/11 Moments November 2020
    Day shortening and temperatures dropping meant bundling up for bicycling.
  • 2020/10 Moments October 2020
    Clear autumn near home in Toronto, extended with a family vacation within Canada to Vancouver, where the Covid rates are more favourable
  • 2020/09 Moments September 2020
    Discovering more of the neighbourhood, bicycling mostly in the mornings.
  • 2020/08 Moments August 2020
    Moderate summer temperatures in a city normally overheated with activity, residents gradually emerging as public venues opened cautiously.
  • 2020/07 Moments July 2020
    Daytimes full of new work assignment and training, evenings and weekends bicycling around downtown Toronto as it slowly reopens from pandemic.
  • The Innovation Delusion | Lee Vinsel, Andrew L. Russell | 2020
    As an irony, the 2020 book, The Innovation Delusion by #LeeVinsel @STS_News + #AndrewLRussell @RussellProf shouldn’t be seen as an innovation, but an encouragement to join @The_Maintainers where an ongoing thought network can continue. The subtitle “How Our Obsession with the New has Disrupted the Work That Matters Most” recognizes actual innovation, as dist […]
  • Republishing on Facebook as “good for the world” or “bad for the world” (NY Times, 2020/11/24)
    An online social network reproduces content partially based on algorithms, and partially based on the judgements made by human beings. Either may be viewed as positive or negative. > The trade-offs came into focus this month [November 2020], when Facebook engineers and data scientists posted the results of a series of experiments called “P(Bad for the Wor […]
  • 1969, 1981 Emery, System Thinking: Selected Readings
    Social Systems Science graduate students in 1970s-1980s with #RussellAckoff, #EricTrist + #HasanOzbehkhan at U. Pennsylvania Wharton School were assigned the Penguin paperback #SystemsThinking reader edited by #FredEEmery, with updated editions evolving contents.
  • 1968 Buckley, “Modern Systems Research for the Behavioral Scientist: A Sourcebook”
    Resurfacing 1968 Buckley, “Modern Systems Research for the Behavioral Scientist: A Sourcebook” for interests in #SystemsThinking #SocioCybernetics #GeneralSystemsTheory #OrganizationScience . Republication in 2017 hardcopy may be more complete.
  • Wholism, reductionism (Francois, 2004)
    Proponents of #SystemsThinking often espouse holism to counter over-emphasis on reductionism. Reading some definitions from an encyclopedia positions one in the context of the other (François 2004).
  • It matters (word use)
    Saying “it doesn’t matter” or “it matters” is a common expression in everyday English. For scholarly work, I want to “keep using that word“, while ensuring it means what I want it to mean. The Oxford English Dictionary (third edition, March 2001) has three entries for “matter”. The first two entries for a noun. The […]
Contact
I welcome your e-mail. If you don't have my address, here's a contact page.
%d bloggers like this: