History does not repeat but it rhymes, and if we don’t learn from it, we are doomed to repeat it
Protectionism Vs Globalism
Throughout history every economic industry we know of, have undergone technological efficiency innovations and revolutions, resulting in less people making more output. This phenomenon pushes less efficient participants out of the industry unless they are subsidised.
Take for example the dairy industry. A single cow used to produce 2500 liters per year. Today a cow can produce 4 times as much. Add to that mechanisation and automation and the result is an oversupply of milk driving down prices. The problem is that in a democracy, farmers are also voters and so massive amount of subsidies are put in place to keep the less efficient farmers “in a job”. Worse still the excess milk are “forcibly exported” through corruption or coercion, to a less developed country which in turn devastate their industry. The effect of subsidising inefficient farmers in a develop country imparts misery in a developing country and keeps them poor.
The only solution is to redeploy these displaced workers in an emergent and new industry.
Take the steel industry. Steel production left the USA because their mills have become less efficient. To bring these dying industry back through tariffs is futile and only serves to make the US steel industry lag behind even further. Unless there is a technological economic breakthrough in steel manufacturing, no investor will invest billions into outdated technology, and this is true for any industry. In the late 50’s China embarked on the “Great Leap Forward”. Chairman Mao proclaim that China was to be the world biggest steel producer. This pushed the whole populace to make pig iron all over the country including melting down iron pots and pans. The result was that the cottage industry based pig iron produced was no good for making steel. Reverting to inefficient technology does not work.
The new emergent crypto industry.
The new emergent industry is a crypto rather than blockchain industry because there will only be one blockchain that matters, EOS. It will be the “Google of blockchains”. When the dust settles all the other blockchains put together, may not even account for more than 5% of usage. Take the example of BetDice. It already has in excess of 8000 users in less than a week since launch. Despite not being the first dice game on the EOS blockchain, from the look of things this dapp will go parabolic.
The reason is their EOS faucet, enabling any user the chance to “earn” at least 0.0005 EOS every hour by way of a free draw. It may seem counter intuitive as a business model giving away good money, but I believe that they have a net gain in revenue and are winning more gamblers and eyeballs to their website. I have used the word “earned” rather than win because a person can actually “earn” 0.012 Eos per day, around 7 cents. This is not insignificant if you are in a poor country or unemployed. It may even become “a real job”, especially if the EOS you earn and hoddle away today rises in value to $10,000 in 2 years say.
The new crypto industry will be the main area for job creation now and into the future. Other than the basic production for the necessities of life like food and shelter, every other derived industry is unnecessary. They have been invented to make the “surplus people” feel useful. We could pay them to dig a hole and fill it up again but they would not feel useful. However if they choose to sit in front of a keyboard and tap keys for a living, they will feel useful and proud. Extrapolate this to thousands and millions of similar enterprises and we will soon see the birth of a whole new industry.
UBI / URI
This is another counter intuitive idea. By combining unique identification and free transaction on the EOS blockchain, we can push an “UBI/URI” to every person on the planet. I have touch upon this is another article here. This is not communism or socialism but for our own economic survival. Governments do this by dropping “helicopter money” to the populace in order to stimulate the economy. By the same measure giving everybody a “UBI/URI” stimulates the EOS economy too. Some will use it to live on and other will use it for seed capital in new businesses and ventures.
This is the promise and power of EOS.