Best You Guru™

                                                                  Linear vs Circular

The stock market is not the accumulated wisdom of rational people but the judgments of flawed people attempting to navigate an uncertain future in their interest. It is not an equilibrium of supply and demand as outlined by Adam Smith in his theory of the real economy of capitalism where the divisions of labor maintain relevancy. The stock market is dependent on political power, societal order, legitimacy, political rhetoric, and confidence.

Today our stock market is held as the standard of the health of our economy. Current economic factors worth consideration:

1.    Historical high prices of stock related to their earning per share. 

2.    Historical high corporate indebtedness. 

3.    A dangerous amount of leveraged corporate debt.

4.    The historically high amount of personal indebtedness.

5.    Divisions of labor with little relevance to the contributions to the economy.

6.    Economic inequality levels historically contributing to societal instability.

7.    Wide stock market fluctuations triggered by political speech.  

The current opinion of the majority of Americans is the economy is in great position despite the danger signs with a historical basis for concern. Have we exchanged prudence for indulgence? Have possessions and status replaced the value of hard work?  

Traditional economic theory is a linear theory with no endgame and where perpetual monetary growth is the measure that defines good or bad. Gross Domestic Product, GDP, is the unit of measure used to determine what is currently defined as a good economy or bad economy. The GDP is the total sum of all goods and services produced in a country. Is economic growth the proper measurement in a mature economy? Has GDP become the wrong goal?  

I suggest we use the wrong indicator for the economic health of our nation. We have placed the measure of the economic health of the citizenry onto an inappropriate instrument. The stock market indices were designed to be a supportive measure as opposed to a primary measure. They were designed to measure the health of the business but we have conflated them to represent the health of a people. How can we measure without the proper apparatus? 

The words of Theodore Roosevelt require review and contemplation. “I don’t pity any man who does hard work worth doing. I admire him. I pity the creature who does not work, at whichever end of the social scale he may regard himself as being”.  

Economic growth is not necessary for the prosperity of humankind. We Should turn our focus to a regenerative economy with shared values of co-creation. 

We can and should measure the health of the economy with the health of its citizens. The over-reliance on GDP as the priority economic health measurement has harmed the populace. The extraction of resources must no longer be the preferred method of financing our economy. The extraction of resources is unsustainable. The cost of human lives and the health of our planet should not be the price of an illusionary healthy economy. An economic theory should no longer focus on the State and the market. A circular and regenerative economy must become the focus of economic endeavors. Macro and micro-financial matters must begin to mirror the cycle of life. The dismissal of linear economics as an overall measurement of economic health must give way to circular regenerative economics.  

As with economics, personal measurement of overall health must be circular and regenerative. It is not the one who has the most toys at their death that wins. It is the one that has given back the greatest percentage of their accumulation both in time and possession. Money is a poor gauge of contribution. But it is the one that gains the greatest amount of fanfare. Giving your heart and talents creates a greater community and replenishes your soul. Giving your self requires taking care of yourself. Maintaining a healthy life is circular. A person must replenish what has been given so that more can be given. It is truly the empty person that keeps all that they accumulate. Learn to give more unto the world so that your life will expand beyond your ego sphere so that your life will be gifted will the fullness of the world.       

     Action step: 

1.    Sleep 1/3 of your day. 

2.    Strive for a diet of sustainable and nutritious food. 

3.    Give more of your money and time.  

4.    Surround yourself with people that build you up with the truth.

5.    Avoid energy sappers.

6.    Expand your knowledge by reading daily.  

7.    Replenish your body and soul on an hourly basis.  

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