Fluid modernity catches up with savings

So, S&P downgrades the USAAA. The last store of value for financial investors has become fluid, relative, uncertain. Could this be a watershed in economic ideology?

If value cannot be safely stored in money, will holders of money turn to the ‘real economy’ for lasting security? Will they begin again to assess the use-value of products and services? To look for the right balance between basics and luxuries, between consumer goods and capital goods, between local production and imports? To see value in full employment and in social cohesion? But also, to look beyond employment numbers, to what employees actually produce? To rediscover thrift, but also to consider how savings are invested in ‘real’ assets?

Is it time to revive input-output economics? Whatever happened to David Ricardo and to Wassily Leontief?

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One thought on “Fluid modernity catches up with savings

  1. Is ‘real’ a constituent part of the fluid modernity or a disconnected reality waiting ‘out there’ to be found? Do we separate between virtual and real (economy, organizations, communications, etc) or (try to) identify how the ‘real’ goes through transformations according to emergent dynamics? Leveraged capital can be as ‘real’ an asset as the hyperlocal organic food (or energy) production. And ‘venture’ capital can be as real as the crowdsourced one.Therefore, taking the ‘reality’ of notions like ‘basics and luxuries’, ‘consumer and capital goods’ or even ‘employment’ and ‘production’ as static through time and space can be misleading.I’m not arguing that we are not going towards the ‘real’. All I’m saying is that the ‘realities’ are changing and a new one is on the making.In our two most recent blog posts (in Greek) we have tried to identify the ‘fluid modernity’ of organizations:: http://www.thebusinessbook.gr/?page_id=41

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