The science of paying it forward - how the sharing (investment) economy works.

in #philosophy7 years ago (edited)

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If you've never seen the movie pay it forward, let me summarize it for you.

Basically, a school teacher asks a class of students how they will personally aspire to change the world.

The teacher wants to prove that saving the world is utterly hopeless, and that we should all just stick to improving our own lives.

What the teacher doesn't expect is for a unique child to take the challenge to heart - and invent a way for everybody to give back in a way that eventually reaches the entire populace of earth.

This is called the paying it forward method.

The idea is that if one person gives back to a certain number of people, and tells them that they are obliged to do the same, then eventually you have a very large amount of people who have been effected by an act of kindness, and this pyramid keeps going.

What this model doesn't explain is that each person effected will not only give back to others, but eventually the person who took the initial action will be effected by the same chain he started.

And so, more than a pyramid, this process is circular in nature.

Essentially, if the chain keeps going, it is impossible for everyone to not be effected.

Think of it as similar to the decentralization model of the block-chain.

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Essentially, each person is constantly being effected and is constantly effecting others.

Similar to how block chain nodes are perpetually sending and receiving information.

Isn't this the way economy is supposed to work?

One person offers a service to another and that person is glad to purchase the service knowing that the one who offers the service will again put his money back into the economy.

....and round and round it goes...

The problem is that economy doesn't always work this way.

We have been born into a paradigm of not enough.

Meaning that we are afraid to spend and even make/ask for money.

And because of their low prices, the biggest corporations are the ones who reap the most wealth.

Yet they do not invest money back into the local community; and as their pockets grow bigger and become bulging with cash, the small business man who DOES invest in the community is shrugged off as too expensive.

The Sharing Economy

What is the sharing economy?

Steemit is a perfect example of the sharing economy: people come together and share their skills to create brilliant masterpieces of art which are then free to access for all other community members.

This art can be in the form of stories, digital or physical paintings, music, or even festivals such as steemfest.

Traditionally, the sharing economy is direct peer to peer lending or sharing of access. Like what is seen in the Venus Project..

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However, the sharing economy can also be defined as peer to peer (or small business to small business) transactions to develop a community of investment driven spending.

In the ladder definition of the sharing economy, a person buys from a local business or dealer rather than an incredibly large multi-national corporation because they know that the money they spent is going back into their community.

As said money goes back into the community, it will eventually be returned to the initial buyer of the service in some way.

Whether the money gets added to the tax pool and helps pay for a hospital or community center that said buyer later has need of, or the money gets invested into a fund that helps pay for an incredible new park that is unprecedented because of extra money from community spending, or whether the money is spent on the service provider themselves; it is always returned to the buyer of said service in some way.

For example, if said service provider spent the money on a new car that they paid for in the local community, then not only would that money be again re-invested; but also the service provider would be eccentrically blissful because of his new car and because of this bliss will probably invest again into the local community.

Regardless, this bliss would be felt by other members of the community which he interacted with, and this would be another investment as their new found bliss could potentially spiral into another creation or endeavor that would again effect other members of the community.

Essentially, the initial investor would no doubt receive the benefits of their investment in some way, eventually; whether they are aware of it or not.

Investing in each others projects.

When we invest in each others projects, we are not only investing in the Steemit community: we are investing in thousands of communities world-wide - and each investment is a catalyst for more investment: which eventually creates a snowball effect of local investment.

When we invest in each others projects, we have the luxury of witnessing a project that we have directly influenced potentially blow up to become the next big thing.

That is the power of paying it forward.


Would you like to pay it forward?

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One of my favorite movies of all time... and I love the whole concept of the Sharing Economy.

That said, I also worry about the way ideologies often are super hard to implement in the "real" world where only a limited portion of the population actually wants to be accountable and take right action... and "gaming the system" and corruption are the norm.

AGain....really wish there wasnt a limit to the timing of when I can edit a post

#steemit

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