Archive for July, 2002

Welcome

Wednesday, July 31st, 2002

Today we finish our series of excerpts from Barry Carter’s book Infinite Wealth with the thirteenth essay. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation  7) The Infinite Wealth Potential of Liberated Humans 8) The Mandate for Win-Win Wealth Creation  9) Breakpoint: Why You Must Act Now  10) SYNOCRACY: True Democracy Through Synergy 11) THE SHIFT: Awaking to a Win-Win World and 12) The Synthesis of a Win-Win World

“Breakpoint change abruptly and powerfully breaks the critical links with the past. What we are experiencing today is absolutely un­precedented in all of humanity’s recorded history. We have run into change so different from anything pre­ceding it that it totally demolishes normal standards. It has swept us into a massive transformation that will completely reorder all we know about living in this world. It demands totally new rules for suc­cess”.

— George Land and Beth Jarman, Breakpoint and Beyond


Vision for a Synergic Transition

Barry Carter

Since we still operate on second wave Industrial Age systems is there hope for us entering the Wisdom Age—the fourth wave in our life times? Yes, as Figure 12 shows the waves start slowly and overlap. Though we are still operating upon Industrial Age systems and are likely years from breakpoint to the Information Age, we have already begun the assent up the Age Wave curve to the Wisdom Age.  In addition, the waves have accelerated their pace. The Hunter Gatherer Age lasted tens of thousands of years. The Agricultural Age lasted about ten thousand years. The Industrial Age lasted only a couple hundred years. Today we see the Information Age and Wisdom Age moving at us at the same time starting only a couple of decades apart. In this book I, therefore, make little distinction between the third and fourth waves, because they both shift us from the Win/Lose Era to the Win-Win Era—both driven by intangible wealth.

The Need for Vision

The single most important thing required for a successful transition to an Informa­tion Age is a powerful vision of what is occurring and where we are going. Without a vision a successful transition shall be much more difficult and painful. What happens when you turn off the lights at night in your house? With no vision you stumble in the dark bumping into things and hurting yourself. In the transition from the Win/Lose Era the stumbles, bumps and pain come in the form of lost wealth, bankruptcy, death, destruction, terrorism, crime, corruption, social collapse and perhaps even a second dark ages. This is something that you and your family must avoid.

Our vision must be one of win-win and abundance enjoyed by an inter­connected humanity. It must be a vision of knowledge-based wealth-creation, with responsible individ­uals who own and, therefore, are responsible for the wealth they create. It must be a vision of a Wisdom Age fueled with emotional and spiritual intelligence. It must be a vision of a new civilization that rests upon a foundation and structure of information technology, family, intelligence, individual freedom, personal re­sponsibility and caring for others.

Since society will only begin to work well when there is a critical mass of the new systems in place, we must all, as individuals, be working on our “piece.” No longer can we blame politicians, welfare recipients, bureaucrats, managers, employees, oppressors, foreign com­petitors or cheap foreign labor. Today everyone is a leader. If we are not leading to­wards the new civilization then we are pulling against it. The absence of positive contri­bution to the new civilization is active resistance against it. There is no neutral ground. Where there is no passion, there is no love, and the absence of love is fear.

Today if we are not actively, passionately and lovingly working to build a win-win knowl­edge-based civilization, we are fiercely and auto­matically opposing it. The wait and see, go slow approach is a recipe for disaster. There are no objective observers and no middle ground. The following is a list of things that you can begin doing to create the win-win world and win big for yourself:

Σ        If you are an employee begin making tangible plans to shift from the prostitution of your talents towards Mass Privatization and begin tapping your infinite potential thus creating the wealth you deserve. As the great Martin Luther King, Jr. said, “ a man can’t ride your back unless it is bent,” (King 1963, p31). You are worthy of more than being a cog in an Industrial Age machine. You are pure creativity able to create anything you desire and worthy of all of the material and non-material wealth of the universe (Chopra, 1993). Try Network Marketing, become a NeuroNet partner, let NeuroNet help you start your own Mass Privatization enterprise, start your own business. Help lead the greatest peaceful revolution is history, remembering, “a true leader is not the one with the most followers but one who creates the most leaders”  (Walsch, 1997). Mass Privatization is about turning everyone into a leader creating Businesses without Bosses.

Σ        If you get the Mass Privatization message pass it along. “ A true teacher is not the one with the most knowledge but the one who causes the most others to have knowledge.” (Walsch, 1997).” “When information flows cash flows,” and Mass Privatization is a knowledge flow system producing the Intelligent Enterprise.

Σ        If you are already self-employed connect with others on the Internet and form into a networked organization of teamnets for leverage, synergy and increased wealth through The TeamNet Factor.

Σ        If you are a small business owner restructure your baby bureaucracy into a Mass Privatization enterprise for leverage, synergy, creativity, customization, speed, growth and increased wealth. Produce The End of Bureaucracy and The Rise of the Intelligent Organization.

Σ        Understand and perpetuate the role of information technology in liberating humanity and Building a Win-Win World.

Σ        Learn computers, get on the Internet and begin networking producing The Death of Distance.

Σ        Support progressive programs within organizations creating a Higher Standard of Leadership. Work to integrate and synthesize these programs towards Mass Privatization, creating Visionary Business as opposed to using the fad of the month approach.

Σ        As a customer, demand quality, service, customization and speed from your suppliers creating The Accelerating Organization. Help push them beyond the capabilities of their control-based systems. Sometimes we change only through crisis.

Σ        Develop your creative and intuitive abilities The Artist Way. Start by reading books on these subjects. (See the NeuroNet web page under reading list.)

Σ        Expand your vision and thus your wisdom—make it 2020 Vision for Conscious Evolution. Learn to synthesize and think systemically. Start by reading books on these subjects. (See the NeuroNet web page under reading list.)

Σ        Increase your emotional and spiritual intelligence using books, support groups, through teams and networks. Begin Putting Emotional Intelligence to Work. (See the NeuroNet web page under reading list.) Practice Stephen Covey’s Seven Habits of Highly Effective People and move on to deeper material such as Thomas Riskas’ Working Beneath the Surface or Marianne Williamson’s Return to Love and many others. (See the NeuroNet web page under reading list.)

Σ        Begin working where your passion is. Do What You Love and The Money Will Follow.

Σ        Embrace diversity and understand how and why it is needed for mass customization, your growth and wealth. Join The Web of Inclusion.

Σ        Improve your ability to empathize and see from others perspective. Understanding that empathy is the key to Mass Customization and meeting others’ needs and your wealth.

Σ        Become a life-long learner. Read, Read, Read! Listen to audio tapes while you drive. Remember that knowledge today is wealth and directly convertible to dollars. As you begin working in Mass Privatization communities, the more knowledge you have to draw from the more wealth you can create in The Knowledge Economy.

Σ        Support expanded social and economic freedoms at every opportunity with Liberation Management.

If you decide to voluntarily accept the challenge of leading the creation of a new win-win civilization beware.


 

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things.”

Niccolo Machiavelli, The Prince

Conclusion

Our social institutions are dying. The pain we feel is the pain of death and birth simultaneously, the death of one civilization and the birth of a new one. We have entered a pe­riod where the conservative, non-risk taker requiring stability has become the risk taker, the radical and the gambler. A pe­riod where the one who refuses to change will surely be the one who loses the most in the coming years. There is no going back to the way things used to be. “Back to the basics” is a failed policy. The future has already begun and the trend is clear.

Starting today you must have a completely new outlook on life. You must be responsible. You can no longer depend on employers, unions or governments to look out for your economic well being, to provide you with a job, retirement, social security, health care or a safety net.

From this day forward you, and your global network of partners, are responsible for cre­ating work and wealth for yourself. If you have no network you have no security. All of the rules have changed. The guarantees and promises made to you by Industrial Age society are null and void and will be breached.

The government and controlled economies have no choice as the power bestowed upon them in the Industrial Age slips away to you the individual supplier and customer. Likewise you the individual supplier and customer have no choice as to whether or not to accept this responsibil­ity. Mass victimization is no longer an option.

As most companies and employees are not seriously preparing, the number of companies which will fail to make the transition could be extremely high. And there likely will be no unemployment benefits, no Welfare and no Social Security safety nets to catch those who fall. Your network is your security. As we stand poised on the edge of the great­est advancement and growth boom in history, we may stumble. Many may lose life, fortune, standard of living and suffer tremendous hardship.

We, the individuals, are the only ones who can make the change. Our corporate and political leaders have neither the power, vision or intelligence needed to address the root causes. We, the people, must wake up from our Industrial Age sleep, which our factory style schools, jobs, and governing system have lulled us into. We must come out of our defined cubbyholes and take responsibility. Our leaders cannot do what needs to be done to correct our problems, for this responsibility lies not in their bureaus of specialty. It is not in their job descriptions.

Based upon history, real change usually only comes through crisis. The evidence shows that the crisis has begun. Tens of thousands are dead from the transition. We can possibly lessen or prevent the crisis if we align ourselves with the change. Today we have the technology, knowl­edge, power, ability, intelligence, and willingness to move faster towards win/win wealth-creation.

We must use intelligence to recognize what is occurring and move with the natural flow of things and with all deliberate speed. Either way, we will have to make the transition. Mean­dering along simply means that we shall pay a higher price in life, death, suf­fering, standard of living and debt for our children. Meandering also risks complete collapse and a possible dark millennium.

The universe does not guarantee our standard of living or our survival. Perhaps our ances­tors had to meander during periods of social transition because there was little or no precedence, as well as little knowledge to use what precedence there was. We are fortu­nate because we can learn from their mistakes. As the late Carl Sagan said, “we see further be­cause we stand on their shoulders.”

Getting aligned with the coming change will allow us to avoid the pain and prosper significantly. Let’s get on with it. Let’s stop the bleeding and start the fun, passion and living! This shall be the most fun and exciting time of our lives!

Copyright 2000 by Barry Carter


Next: Advanced Papers by Barry Carter

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth

Welcome

Tuesday, July 30th, 2002

We continue with the twelveth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation  7) The Infinite Wealth Potential of Liberated Humans 8) The Mandate for Win-Win Wealth Creation  9) Breakpoint: Why You Must Act Now  10) SYNOCRACY: True Democracy Through Synergy and 11) THE SHIFT: Awaking to a Win-Win World

“The failure to strive for completeness is probably the most common failing in the thinking of all individuals. We focus our eyes on one small truth so hypnotically that we neglect all other truths.”

–Sam Keen


The Synthesis of a Win-Win World

Barry Carter

When we synthesize the metamorphosis of wealth-creation with the shift to True Democracy with the age wave historical precedence, as well as the changes occurring in spirituality, religion, psychology, human maturity and science, we see the rise of a new win-win world. It is a world of infinite wealth potential and abundance. It is a world of creating, creativity and infinite possibilities. It is a world where the more we help others, the more wealth we produce for ourselves.

Empathy, Wholeness and Win-Win

In the Win/Lose Era it was imperative that one focused on one’s own needs intently. A hunter in the hunter/gatherer age could not afford to empathize with the opponent, since a split second distraction could mean his own death. Today in sports or business you surely would not hesitate and wait on the competition, while empathizing and considering the pain of his loss, since it could cause you to lose. The result is a world filled with people seeking to win at other people’s expense—talking but with little ability to listen. It is a world filled with people feeling like victims when losing but unable to see the opponent as a victim when they are losing; seeing from narrow, limited and fragmented perspectives and not caring about and unable to see from other people’s perspectives.

A world of competition is one based upon good guys and bad guys, where “I” or “we” are the good guys and “he” or “they” are the bad guys. A win-win knowledge civi­lization cannot exist where people’s primary focus is on perceiving only from their own limited fragment of reality—where empathy is not the core of our actions.  It can­not exist where people are focused on finding the “bad guy” in other people, so that they can see themselves as the “good guy;” it cannot exist where we see ourselves as victims who are owed something.

The ability to see win-win realities boils down to not merely seeing from other peo­ple’s perspective but embracing many other peo­ple’s perspectives. The late David Bohm, quantum physicist and author of The Undivided Universe says that all of existence is one undivided, interconnected whole. We, however, see ourselves as separate individuals. In reality, we are all part of one whole but seeing from different perspectives, with different paradigms, seeing different realities.

We debate our various views, trying to convince others that what we see is correct. However, we are all merely seeing incoherent fragments, of which, none are completely correct. Only by synthesizing all of our various, fragmented perspectives together do we stand a chance of understanding the synthesized whole. In Thought as a System Bohm says, “Our thoughts are incoherent, and the resulting counter-productiveness lies at the root of the world’s problems.” He asserts that communications must come through win-win-based dialogue and understanding as opposed to win/lose-based debate or discussion.

Covey’s habit number five is, “seek first to understand and then be understood.” The ability to see win-win is about toler­ance and the assumption that other people are perceiving correctly, though differently. Win-win is a reality that is void of judgment and blame because we realize that oth­ers are merely seeing from different paradigms. Joel Barker, in Paradigms, says when he disagrees with someone he searches to determine the paradigm from which the other person is seeing, in order to find the source of disagreement.

Within our win/lose paradigm, individuals are not willing to understand others because there is little in it for them. A mass victimization world based upon win/lose competition always produces more losers than winners. Even the people who are winning feel like victims due to our fear-based socialization. In the win/lose world one thrives on getting one’s own point across and not on empathizing or listening to others. We live in a world filled with peo­ple starved to be heard and understood. Being an in­secure victim leaves one’s own need to be heard unfulfilled. We, therefore, continually step on others, competing to be heard and understood.

Healing Our Separation through Connecting

As we prepare for a Win-Win Era, there is tremendous healing work going on in re­covery programs, support groups, self-di­rected work teams, through psychotherapy and the like. These groups and methods are preparing us for an era of win-win wealth-creation. Pro­grams like Re-Evaluation Counseling are based upon the con­cept that people already have the solutions to their own problems, they merely need to be heard and understood to be healed.

The support group or co-counselor empathetically listens to the individual and supports him as he discovers his own solutions. The co-counselor asks questions to help the individual “discharge,” heal, or re-map false neural connections or low intelligence habits patterns. This usually occurs as the individual discharges the pain by crying, throwing a temper tantrum, screaming, punching a pillow, and laughing or through some other emotional outlet. The key is having someone listen to one’s pain.

People on the television show “911 Rescue” almost always cry when they describe some painful event; a daughter being hit by a car; a son falling into an icy lake; a husband shot. It is very difficult not to cry and discharge the pain with so many people watching and empathetically listening to your situation. Most of these people likely never expected themselves to cry on national television. We are discovering that the simple act of listening to others, empathizing and, truly interconnecting with one another has the power to heal and increase emotional and spiritual intelligence. The underlying reason for this is that we are all part of one whole. By connecting with one another we begin to become whole and healed.

The mass victimization norm of the win/lose era thrived on not listening and not empathizing; focusing on one’s own condition and ignoring others; seeing only from our own perspectives. It would make sense that listening to others heals the reality created from not listening to others. To empathetically listen is to connect with another. It is to interconnect, to synthesize, to become one. Interconnectedness, synthesis and wholeness are the very essence of true spirituality as well as the new science of quantum physics (Zukav, 1979). Interconnectedness and synthesis are also the very essence of Mass Privatization and Mass Synocracy.

Quantum Physics and the Undivided Whole

Eastern religions are built on the notion that we humans, the universe and god are all part of one undivided, seamless, inseparable whole—one collective consciousness. Quantum physics today is pointing to this notion as reality. Physicist Walter Heitler, author of a standard textbook on light/matter interaction, says that in spite of its obvious partitions and boundaries, the world in actuality is a seamless and inseparable whole. Fritjof Capra, in the Tao of Physics, as well as Deepak Chopra in Creating Affluence add to this concept. David Bohm, author of The Undivided Universe, says, “one is led to a new notion of unbroken wholeness which denies the classical analyzability of the world into separate and independent parts. … The inseparable quantum interconnectedness of the whole universe is the fundamental reality.”

Einstein said, “the illusion that we are separate is an optical delusion of our senses.” Irwin Schroedinger, the quantum physicist who developed the wave equation in quantum physics says, “If we could just measure the sum total of the minds in the universe there would be just one.”

Information technology and the drive for in­terconnectedness from Mass Privatization-based wealth-creation is today putting humanity on a course for massive chaotic interconnectedness, at a tangible level. If as quantum physics says we are all interconnected at some deep level, then information technology is allowing us to interconnect in a basic and primitive but perhaps necessary way—building towards a more substantive spiritual interconnectedness. Information technology is so powerful today because it is allowing us to interconnect, to synthesize, better understand and become the one global economy and the one whole that we are. Perhaps information technology is a bridge necessary for those like ourselves obsessed with the need for empirical evidence of something before we will believe it.

Quantum Physics and the Wholeness of Wealth-Creation 

Earlier in this chapter I spoke of our definition of wealth-creation being expanded. Another reason that it is expanding is because we are beginning to take a more holistic view of wealth-creation. When a company makes a profit by not paying the full cost of producing their product or service today, then perhaps no profit has been made and no wealth created. In fact, that company is living on welfare, expecting someone to pay his or her cost. It is win/lose wealth-creation and welfare when a company pollutes the environment, requiring future generations to pay the cost. If a manager intentionally negotiates a salary with a naive employee for $20,000 less that the fair market value then this is welfare. The manager is expecting something for nothing—a handout that has not been earned. The manager wants the employee to work for free part of her time. Though we say we hate welfare, for able-bodied people, it turns out that welfare it is the heart of competition and win/lose wealth-creation.

Our present view of profit and loss comes from a fragmented worldview based upon analysis, where profit only takes into account a narrow sliver of the whole—“my sliver.” Perhaps if we lived in a Newtonian, fragmented universe made of independent pieces this win/lose approach would be valid.

Quantum physics is showing that perhaps no wealth is created in many win/lose situations. This is because there could be a loss to the entire system when one person wins at another’s expense.

Reinforcing Feedback Loops and New Realities

When management thinks of employees as dumb, employees re­spond by reinforcing management’s expectations. Vio­lence on television, movies and music reflects back and reinforce our reality and produces more violence. In school, classes are segregated by “perceived” intelligence. The “perceived” lower intelligence students are continually given the message that they are less intelligent, and then per­form accordingly. This is known as the Pygmalion Effect.

Reinforcing feedback loops cause us to produce more of what we see in a sort of snowballing effect (Senge 1990). They lock us into the status quo. Here is what Peter Senge in The Fifth Discipline says about feedback loops.

If you are in a reinforcing feedback system you may be blind to how small actions can grow into large conse­quences—for better or worse . . . . In re­inforcing pro­cesses, a small change builds on itself. Whatever movement occurs is ampli­fied, producing more movement in the same direction. A small action snow­balls, with more and more and still more of the same, resembling compounding interest.

We see the win/lose reinforcing loops so strongly throughout soci­ety and the world that win/lose is thought by most people to be simply a law of nature. Competition is everywhere and permeates every­thing. We see this reality, we expect it and adapt to it, thereby perpetuating it. Since we expect it, we get more. The more we see, the more we are convinced that this is the only reality.

Reinforcing feedback loops are, however, what shall deliver us into the new win-win reality. Though we are over­whelmed with a win/lose reality, the win-win reinforcing feedback loops increase daily and at some point will reach breakpoint.

Reinforcing feedback loops are why Mass Privatization is so critical to the transition to a win-win world. Mass Privatization allows us to tangibly, directly and immediately see that we win by helping others win. Without aligned structures, the win-win paradigm will likely be difficult, if not impossible, for most people today to accept, just as it has been for thousands of years.

The Win-Win Reinforcing Feedback Loops

The customer and quality movements of the last twenty years are part of slowly building win-win reinforcing feedback loops. The shift to a buyer’s market, a customer-driven society and mass customization are small reinforcing loops growing larger. With the worker shift from subservient employee to empowered private worker we also see win-win feedback loops grow larger. Wal-Mart increases quality and service. Other suppliers, unable to meet customer needs, like Brendle’s, Kmart and Rose’s, struggle, restructure, close stores or file for bankruptcy. Win-win reinforcing feedback loops like this cannot be ignored. They slowly increase the size of the win-win snowball.

We also see win-win reinforcing feedback loops operating in the area of emotional and spiritual intelligence. This is in the personal and spiritual growth movements. There are networks of individuals, support groups, recovery groups, healing groups, self-knowledge groups, observing consciousness groups and many oth­ers. There are many people writing, studying, and communicating worldwide. People are coming to­gether as never before to heal the pain of the past that cause us to see from our fear paradigm. They are working to increase emotional and spiritual intelligence to become more effective.

Information Technology and the Breakpoint to the Win-Win Era

Information technology is the primary power behind the growing win-win feedback loops as defined in more detail on the NeuroNet Web Site. It connects and empowers individuals and customers in society. Information Technology is providing tangible, visible and touchable evidence of the new and growing win-win civilization. As Deepak Chopra, Alvin Tof­fler, Peter Drucker and Tom Peters have all shown, knowledge is the driver of wealth-creation today. Knowledge is infinite and can be win-win power.

What is informa­tion technol­ogy but the basic raw tools of information process­ing and knowledge production, and knowledge flow? These tools today have become tangible creators of infinite wealth for all to see. Furthermore with interconnectedness being the essence of spirituality, we are witnessing the rise of the most powerful spiritual growth tools in history—information technology. Information technology is bringing humanity together, enabling synthesis, synergy and wholeness.

It is critical that we see information technology for what it is, because we practical humans need tangible and touchable evidence of something before we will believe and act upon it. Today we have win-win, infinite wealth and spiritual growth producing tools, growing at the speed of light directly before our eyes. In reference to the growth of information technology, John Naisbitt says the following in Global Paradox, “If we had similar progress in automotive technology, today you could buy a Lexus for about $2. It would travel at the speed of sound, and go about 600 miles on a thimble of gas.”

We see the infinite wealth potential of information technology as enterprises like Microsoft, which produces nothing but intangible ideas, with only 11,000 people, having a greater net worth than IBM and GM with hundreds of thousands of people and dozens of tangible factories and “things-based” products. We see the win/win characteristics of knowledge power with one third of Microsoft’s employees being millionaires.

Knowledge power, within a Mass Privatization enterprise, has enabled those like Amway to create more millionaires than any other organization in history. In the past several decades, infor­mation technology increased social free­dom enormously for everyone. It has likely avoided many wars, as it brings the horrors of war directly into our living rooms with television, thus raising our consciousness. It has reduced corruption worldwide as it increases our awareness regarding the true nature of centralized power. It has reduced pollution, as we all become more aware of the harm we are doing to the environment through our actions.

It has increased awareness regarding police departments as a single video, such as the Rodney King tape, gives us all more understanding. It has saved thousands of dolphins’ lives. A single video, shot by one person, showing dolphins being killed in fishing nets, raises our consciousness. We stop buying tuna and the industries changes. It has permanently toppled dictatorships, replacing them with Industrial Age democracies. Mass Privatization enterprises will interconnect people and globally through the Information Superhighway. We will not as easily be able to wage war against those whom we consider friends, partners, suppliers and customers—those whom we have come to know, love and depend upon.

Information technology has begun to reflect back to us a new win-win reality that will al­low us to continue creating that reality. We need to make a conscious effort to see information technology and the interconnectedness it offers as the key link in the tran­sition from our win/lose past of scarcity, to a win-win future of abundance. It is not just a hard cold technology. It is a system connecting our minds, hearts and souls into the coherent whole of which we are apart. It is a relatively primitive, “hard-wired” forerunner of the much deeper “soft-wired” spiritual connections to come. Information technologies are our spiritual training wheels and Mass Privatization is our first bicycle, as we graduate from our tricycle. 

As illustrated earlier in this book the Information Superhighway is being built from a host of various information technologies—virtual reality, Internet, holographs, etc. Mass Privatization partners, at some point, will in essence be having real person to person communication almost as though they have been physically transported to the same location.

As a critical mass of the Information Superhighway comes on line, Mass Privatization shall begin to blossom. The Information Superhighway and Mass Privatization are providing the motive and means to chaotically interconnect humanity on a massive scale. This interconnecting is moving us to a breakpoint in human maturity—a breakpoint to a world based upon love. To love someone is to come to care for, to understand, to know and to desire helping that person. Mass Privatization partners, suppliers and customers must interconnect and become interdependent on one another in meeting each other’s unique, fickle and customized needs. They must collaborate and come to know one another, they must empathize and synergize with one another; they must care about one another—they must act from love.

Information technology and the trend to Mass Privatization is providing the most powerful motive and means in history for individuals to love one another. It is empowering humanity to synergize on a global scale, to mature, to come to know itself—to become one.

Today humanity is like a large brain of six billion neurons with very few neural connections. With our sparse neural con­nections we are like the brain of a newborn baby. We have had dreams and nightmares while in the womb maturing. In­formation technology is just now allowing humanity to be born. We are about to allow the six billion neurons to connect through massive, chaotic and powerful neural networks that operate on chaos theory. These massive neural connections shall synergize, multiplying all of humanity’s intelligences by many orders of magnitude—including emotional, spiritual, creative, intuitive and intellectual intelligences.

Our Expectations Are Our Path Out of Hell

Using the Mass Privatization concept we have come on a very long trip to show the shift to a win-win world. In fact our journey started thousands of years ago. It is ironic that neither Mass Privatization nor the trip was ever necessary. Just as great spiritual leaders have told us we have always had access to a win-win world. Today science supports this notion. Science now tells us that we create our reality out of our expectations, beliefs and observations.

Win/Lose Era wealth-creation was more about attaining wealth at another’s expense, using low emotional and spiritual intelligence, than creating anything. The people doing the losing are victims. Victims are people whose control and power has been taken away. Victims then attempt to win by taking power and control away from someone else. Both the winners and losers, in the Win/Lose Era, all come from a fear-based victim paradigm.

True wealth-creation is about creating something where nothing before existed. Real wealth is created where people are empowered and can actualize dormant potential, thus creating wealth. Empowerment is about creating a desired future and transcending current realities. It is about creating and creativity. Empowerment and true wealth-creation are the opposite of the helpless victim paradigm.

Suppose through some strange new science we came to understand that we create our own reality. This would mean that there is no such thing as a victim. If we create our own reality then we have always been in full control of our destiny and under the control of no one else. It would mean that we have always been fully empowered but perhaps too immature to realize it. Science is proving that we do create our own reality—to be specific the science of quantum physics.

Neils Bohr, the Danish physicist, along with those like Albert Einstein, earlier in this century pioneered much of quantum theory. Perhaps no one has had more impact on the interpretations of the new physics than Bohr. The “Copenhagen interpretation” developed at Bohr’s Copenhagen Institute says 1) there is no deep reality and 2) we create our reality out of our observations (Herbert, 1985). The Copenhagen interpretation is not a minority view. The majority of physicists at least partly buy into in the Copenhagen interpretation.

As we enter a knowledge era, perhaps the greatest discovery of our times is that ex­pectation, beliefs and observations create reality. There is no deep, objective reality out there to observe and adapt to. Reality depends upon our perspective and what we perceive. This is our path out of our win/lose hell.

For all of human history we have viewed ourselves as helpless victims at the whim of a harsh universe as well as those in power. We are now discovering that our negative expectations, which come from low emotional and spiritual intelligence, create our harsh win/lose reality. Win/lose competition and scarcity are not natural laws to which we must adapt. They are a reality created out of our immature beliefs. This means that by increasing our emotional and spiritual intelligence and changing our belief system we can create the reality and future we desire.

The next figure shows that virtually every segment of society has proven concepts that support the notion that we create our reality from our beliefs, expectations and observations. We see it with the Pygmalion Effect in psychology, the Hawthorne Effect in business, paradigms in science, stereotyping in sociology, visualization in sports, the Placebo Effect in medicine and far more.

“ExpectationsReality”

As a college student, and for many years af­ter, I was a strong proponent of facing reality directly and head on. Being competitive and driven, I believed that one should face reality directly no matter how painful because this was the way to adapt and best survive. I practiced enduring pain and thriving on it. I didn’t take as­pirin for headaches. I didn’t have an air conditioner in my car. I’d yearly pick the cold­est days in winter to take five-day solo canoe trips down the Stanton River in Virginia.

For hun­dreds of years we have thought that we could objectively ob­serve the universe to determine reality and adapt to it for our benefit. From the victim paradigm we saw the things around us as happening to us, with us reacting to them. We saw ourselves as mere bystanders, separate from events, as they happened to us. Therefore, careful observation and analysis is what the science of the last few hundred years has been about. By observing and understanding we could then adapt to the environment, not knowing that we were merely adapting to a mirror image of our believes, expectations and observations.

Within the win/lose paradigm, I was correct in attempting to face reality no matter how painful. The world is hard and tough so I must be hard and tough. Within the larger win-win paradigm, I was incorrect. Today the evidence shows that facing a painful and harsh reality directly and head on, and adapting to it, is not the most practical method of thriving.

Facing reality or being practical merely serves to keep us trapped in a limited “practical” paradigm; today that paradigm is a practical win/lose hell. The more win/lose we see the more convinced we are that it the only reality. We then feel compelled to adapt to the win/lose reality in order to survive.

The captain of the slave ship that brought Kunta Kinte to America in the movie Roots opposed what he was doing but did it in the name of being practical. After all had to feed his family. Others on the ship never questioned what they were doing. Many, at some point in their lives had adapted and learned to like holding others in pain. Whether they liked it or acted in disdain their actions were in the name of being “practical.” Many of the Nazis in World War II did what they did out of being practical. They were merely following orders.

We are no different. We as prostituting employees do work that we do not believe in, which we dislike or even oppose just to fill our bellies for another day. When all is said and done we shall understand that “being practical” has been the curse that has kept humanity trapped in hell of thousands of years. We have not been able to see the forest for the “practical” trees directly before us. What quantum physics tells us is that the captain, the Nazis and we could and can step out of our practical “hell” any time we really “truly” desire.

As we synthesize quantum physics with changes in wealth, spirituality and psychology we find the key to the new Win-Win Era as well as the Win/Lose Era. We have always created our own reality, however, in the Win/lose Era the reality we created came from a fear-based victim paradigm of scarcity—low emotional and spiritual intelligence. Being practical and creating wealth within this paradigm kept us trapped in this paradigm.

We are finding that the higher one’s emotional and spiritual intelligence, the more capable one is of creating the reality he or she desires—transcending current realities. Someone working at the base of the hierarchy of needs is not likely to have very high emotional and spiritual intelligence, with limited ability to actualize his or her potential.  He or she will, therefore, likely perceive that directly before herself as all of reality.  Since it is ALL it must be finite and we must compete through fear for the finite ALL.  When individuals see themselves as victims, they are driven to meet their own needs first or create wealth out of fear.

Today as humanity is maturing and its social systems, technology and knowledge reach a critical mass, it is all pushing humanity’s emotional and spiritual intelligence to new highs. Our higher emotional and spiritual intelligence will move us into a new worldview of personal responsibility and self-empowerment. It will force us out of our victim paradigm so that we can see that we are truly empowered and in charge of creating our own environment and destiny.

What’s the moral of this quantum physics story? We see what we believe or want to see. As the concept of paradigms tells us evidence that does not fit our paradigm is literally invisible. We cannot see it even if we look directly at it. If after reading this book you still are not seeing the shift to a win-win world, it does not matter. All that is necessary is that you believe it. When you believe it you will see it.  What you see in the world is merely a reflection of your beliefs about yourself and the world—a reflection of your own self-esteem, maturity, self-actualization. You must ask yourself am I worthily of abundance, wealth and happiness? Are my children worthy of a life of abundance, wealth and happiness? If you see only a win/lose world it is because you have been hurt, you have shut down and have closed your mind to certain possibilities in an effort to prevent from getting hurt again. You have toughened, harden, become competitive, and adapted to a hard world—you have become a rock. But what is a rock. It is hard and tough but it is dead, not sensing very much!

Contrary to popular believe, where we idolize tough guys, it does not take much to become tough and hard, to be competitive, to shut down and not feel other’s pain. I know because I have been there and done that. The challenge is to transcend what we see as current reality. If nothing else perhaps the feedback loops to a win-win world can help you jump-start new win-win wealth-creation habits even if these habits initially are out of self-interest.

Breakpoint to Lose/Lose Hell

There is, however, a downside to the shift from win/lose. When we turn on the news each night, what are our expecta­tions—death, violence, corruption, murder, terrorism and layoffs? We have an epidemic of win/lose expectations. Much of what we see is out-of-control win/lose. Expanded social freedoms are in the process of being thrust upon six billion, relative immature individuals through information technology. At the same time these individuals have no macro vision of what is occurring. If our expectations remain win/lose we are headed for the greatest chaotic hell that humanity has ever experienced.  Unless we shift our expectations, we shall create this reality on a massive scale as win/lose devolves into mass lose/lose.  As we near breakpoint, an expectation of win/lose as the norm is incompatible with human survival. How is it possible to change this expectation? The answer lies in our expectations and attitude.

Today, based upon quantum physics, it’s “win-win or no deal.” We must learn to see from many different per­spectives in order to see win-win. We must today visualize the win-win and abundance before us. If we are to survive, we must visualize win-win and make it the expectation. Though the reinforcing loops for win-win are tiny, they are growing and we must look to find them.

Visu­alizing win-win based upon knowledge power and seeing the growing win-win feedback loops are the premiere chal­lenges of our lifetime. We must have a powerful enough vision of a desired future to change our win/lose expectations. We must understand the con­cepts of quantum physics—the reality we see is merely a reflection of our thinking, not some independent, absolute re­ality. We cannot stay in our win/lose civilization. On the other hand, we cannot move to a win-win civi­lization without an intelligent vision.

Since we humans crave the “practical,” based upon empirical, observable evidence, we must see and use Mass Privatization and information technology as the human maturity stepping stones to a win-win world.

Copyright 2000 by Barry Carter


Next: Vision for a Synergic Transition

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth

Welcome

Monday, July 29th, 2002

We continue with the eleventh in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization 2) A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation  7) The Infinite Wealth Potential of Liberated Humans 8) The Mandate for Win-Win Wealth Creation  9) Breakpoint: Why You Must Act Now and 10) SYNOCRACY: True Democracy Through Synergy


THE SHIFT: Awaking to a Win-Win World

Barry Carter

Today we are witnessing a change in the very definition of wealth-creation from the “self-centered” making, mining and growing of things, to the “others centered” meeting of human needs. It is a power shift that sets the stage for a win/win world.

Wealth-Creation Moves Beyond Self-interest

In defining the invisible hand of the “Industrial Age” free market in The Wealth of Nations, Adam Smith drove home the point that civilization advances and creates wealth when each individual looks out for his or her own self-interest. By each individual looking out for his or her own interests, the “invisible hand” of the free market ensures that civilization also advances. We have order from chaos.

Smith was absolutely correct that Industrial Age wealth-creation is driven by self-in­terest. However, like all paradigms, there is a larger paradigm that encompasses the smaller one. Self-interest being the driver of wealth-creation is not wrong. It is just in­complete and incoherent. Some levels and dimensions of wealth can be attained by only looking out for oneself, however, deeper levels, broader dimensions and more wealth is attained by looking out for others while helping oneself—win/win.

The rallying cry for organizations in the 1990’s was “growth by meeting customer’s needs.” It is being expanded to include all stakeholders—customers, suppliers, partners and others. The frantic change in the last twenty years has been about a shift to win/win wealth-creation—the customer and quality movements, teams and collaboration, empowerment, incentive pay and far more. Today one must do far more than be in­terested in self-gain if one is to thrive financially.

As society has advanced, developed and reached breakpoint, Smith’s Industrial Age paradigm has simply run out of steam. It is an immature Newtonian worldview based upon fragmentation—we are separate from one another and the universe and we can help ourselves while hurting or not caring about others or the environment. What we are dis­covering, through experience, is that there is only so far that self-interest alone can propel a civilization. Looking out for oneself and dick­ering, haggling and negotiating to have one’s way, to see only from one’s narrow perspective, does add value in a relative primitive civilization and a relative immature humanity. Civilizations after all advanced and created wealth through slavery, however, far more wealth has been created though the less win/lose system of employment.

As we again shift civilizations we must make another leap towards greater win/win in wealth-creation in order to continue advancing. Today we must not only look out for ourselves but for customers and all stakeholders, as well as all of humanity and our environment. This change moves us to a new level of maturity and the opportunity to tap infinite wealth through collaboration. Smith’s view of self-interest driving wealth-creation is win/lose, “a sales paradigm” and the core of wealth-creation during the Industrial Age. It is no longer valid.

The Shift from a Sales to a Service Paradigm

When I’m ready to purchase a computer, I call Ted at Applied Com­puter. He is a partner whom I can trust to look out for my needs. Vir­tually every company today has written mission statements in the last few years. Most are mere plaques on the wall as controlled economies, operating on laws of the school, have little “real” desire or capacity to follow through. However, most say something to the effect of “growth by meeting customer needs.” Another way to put this is, “winning by helping other people to win.

In the 1970’s GM stated that its mission was “making money.” It was not long after this that things started going very bad for GM. In 1992, Revlon’s senior management published a similar mission stating that it’s primary objective was profit. Within months most of the senior management team was replaced. What we are seeing is a shift from a sales to a service paradigm where people with a “me first” sales paradigm produce less wealth for themselves.

A sales paradigm focuses on meeting one’s own needs regardless of other people’s needs. A service paradigm fo­cuses on meeting one’s needs through the meeting of other people’s needs. The sales paradigm is one of win/lose, whereas the service paradigm is one of win/win. “I do not care if you win or lose as long as I win.” It does not have to be a paradigm of hatred, merely non-caring. In the new era, organizations like Revlon and GM, as well as individuals who are focused merely on their own personal needs, will discover meeting their own needs to be harder and harder without meeting other people’s needs first.

As shown in chapter 1, thriving organizations like Wal-Mart, Nordstroms, Rosenbluth Travel, Amway, Nucor Steel, Lincoln Electric, Johnsonville Foods, Mary Kay Cosmetics and many others are shifting away from the sales paradigm to the service paradigm. This includes service to internal and external customers as well as other stakeholders.

Whereas the old golden rule was to treat others as you would like to be treated, the new mass customization-based golden rule for the empathic era is to “treat others as they would like to be treated.”

Wealth-Creation Moves Beyond Material Wealth

Abraham Maslow showed that there is a hierarchy of needs, which motivates people. As a general rule, people are motivated to satisfy the needs at the base of the pyramid before higher order needs. A person who has no air is not likely to be searching for shelter. A person with no shelter is not likely to be seeking personal growth and so on.

If one takes Maslow’s Needs Hierarchy and overlays it onto Toffler’s “age wave” theory, as done on page 6 , Figure 12 – The Age Wave Chart , a striking observation can be made. The Agricultural Age can be classified as a basic needs-building period where people spent the majority of their time on the most basic needs: food and shelter. In an Industrial Age, people on average spent most of their time on middle needs: safety, security and stability with jobs, schools, stable incomes and the like. As we move into an Information Age as well as the Wisdom Age, which will be discussed later, we are spending more time on the higher order needs—knowledge, self-esteem, self-actualization and true spiritual needs.

It appears that our definition or view of wealth-creation has changed throughout the ages depending upon what people spent most of their time doing in order to meet their needs. In the Agricultural Age, the majority of human work-time was spent on basic needs mostly food production and other physiological needs from the land. In the 1600’s over 90% of the population worked on the land, by 1840 it was down to 70%, 1960 down to 10% and by 1998 it was under 1%. While writing this book I sit in my home office in Snow Hill, North Carolina watching a two person mobile mass production factory harvest a 100 acre field of cotton in a matter of hours. Two hundred years ago this job would have taken many dozens of slaves weeks. Because, in an early Agricultural Age, most of humanity’s time was spent on the land, the definition of wealth-creation was likely limited to physiological needs, primarily food production.

Adam Smith in The Wealth of Nations speaks of a group of French economist, from the 1700’s, called Physiocrats. They believed that agri­culture was the only form of productive labor and that land was the source of all wealth. They referred to manufacturing and commerce as sterile. The Physiocrats, in essence, believed that the meeting of physiological needs was the only way to create wealth. This was likely a mainstream view in the early agrarian civilization. As the Agricultural Age matured and the Industrial Age began ramping up the Age Wave curve it was becoming dated—a leftover remnant from an early-stage Agriculture Age. By 1776, the time of Smith’s writing of The Wealth of Nations, he was making fun of this obsolete notion.

Manufactured goods in an early Agricultural Age likely took up such a small portion of time as to hardly be considered wealth-creation. A manufactured tool may have been something with which one attained or protected wealth, but likely was not considered wealth itself. A plow was a thing used to produce food. However, since it did not directly stop the hunger pains in one’s stomach or meet some other lower order need, it likely was not considered to be wealth. An early herdsman’s wealth was, instead, measured by how many goats or cows he had.

As the Agricultural Age matured, manufactured “things” be­came a larger part of wealth-creation. As we began up the slope to the Industrial Age, even pre-breakpoint, our paradigm, or defini­tion of wealth-creation, expanded to be more inclusive of manu­factured “things.”  Eventually our paradigm came to be dominated by the manufac­tured “things,” that we needed to meet needs higher up the hierar­chy.

The classic Industrial Age definition of wealth-creation is the making, mining or growing of some­thing hard and tangible—manufactured items, raw materials or food. This is where people have spent the majority of time working in the past 200 years.

Today, however, we have become the Physiocrats of the Information Age as we consider wealth to be created only through the making, mining and growing of things. In an Industrial Age knowledge was seen as something one used to attain wealth, but not wealth itself. As knowledge work rapidly increases knowledge is beginning to be seen as wealth not just a tool for creating wealth.

The increase in knowledge work is occurring from many perspectives. First, more and more people are knowledge workers, performing strictly knowledge work, not building a physical product in their daily work routines: engineers, writers, therapist, fitness trainers, programmers, network marketers, accountants, sales people, health care workers, buyers, technicians, mechanics and far more.

Second, of the people directly making, mining or growing things the knowledge content of their work is dramatically increasing. For example many people in hands on manufacturing are beginning to perform knowledge work as we transition to self-directed teams and empowerment. The team members are required to perform work previously performed by specialized knowledge workers such as engineers, planners, and supervisors even customer service representatives.

In agriculture, the two person cotton harvesting factory that I spoke of earlier had one fellow in an air-conditioned harvester with his stereo playing. He arrived at the cotton field in his four-wheel drive sports utility vehicle wearing a golf shift and slacks. The inside of the harvester looked a little like the cockpit of a jet. Though the driver did not have a laptop computer with him it would not surprised me if he had one.

Third the manufacturing or tangible part of work is getting enfolded into the entire work process as we shift to the Synthesis of Whole Work. Those like Ted at Applied Computer build “tangible” computers as one small part of a whole business process. Most of his time is spent on the knowledge work part of his whole business: billing, ordering parts, accounting, shipping, sales, marketing, engineering, receiving, customer service, programming and more. His actual time building computers is very small, perhaps two to five percent.

Fourth at home we are all spending more time on knowledge-based work or activity such as working on computers, programming VCR’s and Televisions, surfing the Internet, shopping via home shopping channels or Internet, reading, watching the news or educational channels on television, budgeting using computers and on line.

The knowledge content of work, of industrialize nations, is rising at a dramatic rate as more and more of all of our time is spent doing knowledge work. As the percent of time we spend performing knowledge work increases, knowledge itself becomes wealth. This is because we define wealth-creation based upon where people spend the majority of time working. Knowledge, however, has always been wealth just as manufactured items. However, like the Physiocrats we just never recognized knowledge as wealth. In fact we have made fun of geeks, nerds and brainy people. However, as brainy Bill Gates has become the wealthiest person in the world, I believe we are amidst a paradigm shift.

Beyond Toffler’s third wave lies the fourth wave as termed in Herman Maynard and Susan Mehrtens’ book The Fourth Wave – Business in the 21st Century. The third wave is one where we learn that, “we are connected and must cooperate.”  The fourth wave is the age of wisdom where we come to understand, as quantum physics tells us, “we are one and choose to co-create.” Where the Information Age is driven primarily by knowledge power the Wisdom Age is driven primarily by emotional and spiritual intelligence.

Therefore, our definition of wealth-creation is today also being expanded to include emotional and spiritual intelligence. This happens as people spend more and more time on these higher order needs as an integrated part of their daily work and lives. People are spending more time on emotional and spiritual intelligence because with the Mass Privatization trend people meet their own needs by connecting with others and meeting other’s needs. Thus in the new wealth-creation system people are inherently developing emotional and spiritual intelligence as they work.

Emotional and spiritual intelligence includes such things as relationship intelligence, personal health (body, mind and soul), happiness, wisdom, environmental health. After all at the top Maslow’s needs hierarchy are self-esteem, self-actualization and spiritual awareness—emotional and spiritual intelligence.

Emotional and spiritual intelligence is about actualizing our infinite potential, deeply understanding ourselves and our relations to others and the larger universe. It is about taking responsibility for ourselves, our situations and our lives. It is about the ability to effectively interact, collaborate and synergize with others. Emotional and spiritual intelligence includes the ability to shift paradigms to see from many different perspectives, to synthesize and see larger wholes, to live fully in and appreciate the present and to be deeply connected to all things, as well as the larger universe.

A very large part of emotional and spiritual intelligence is about moving beyond self. It is about helping others, connecting with others and meeting other people’s needs. It is about the ability to transcend current realities, by shifting our perception. Finally it is about seeing the universal reality of love, win/win and abundance that has always existed.

Suppose we were to discover that we are all one being, who has infinite potential as we synthesize our various wholes together into a larger whole. Emotional and spiritual intelligence, as defined above, would make since as the ultimate driver of wealth-creation. Win/win wealth-creation would be critical to infinite wealth.  If, however, as Newtonian thinking, leads us to believe, that we are all separate and can gain as individuals, by taking from others, then win/lose wealth-creation makes more sense. As we shall see in this chapter science is proving that we are all whole parts of a larger whole being.

Today the definition of wealth-creation has expanded to include all material and non-material wealth. Each day that we move further into the Win/Win Era intangible wealth is easier and easier to converted directly into tangible wealth, dollars, goods, or power.

As shown in the book How to Build a Network of Power Relationships by Harvey Mackey the more relationships and connections one has with other people the more dollars one has the potential to generate. Like neurons in the brain, whose connections determine intelligence, our connections to other people determine our potential for dollar and other forms of wealth. Mackay even shows that a couple of United States presidents have networked their way into the White House.

People who are mentally or physically healthy or happy are able to convert this into dollars with books, “how to” videos, television exercises shows, audio tapes and more. The explosion in the mental and physical health industries attest to the increasing ease at which personal health is converted into dollars. Organizations that help the environment are able to convert this into dollars from increased sales to the growing number of environmentally “awakened” consumers as documented in a host of business ecology books such as The Bottom Line of Green is Black  by Tedd Saunders.

The dollars produced from intangible wealth can then be converted back to relationships, environmental health, personal health and happiness. People with dollars can have a relative easier time establishing relationships (given that they have good interpersonal skills) because others desire knowing those with money and power. Organizations with more dollars have more to spend protecting the environment. Individuals with money can hire personal trainers, therapists or purchase sophisticated exercise equipment to improve mental and physical health. In general those with dollars have more time to focus on higher order needs.

As we near the top of the needs hierarchy wealth has the capacity to flow from material to non-material wealth and back again. It can flow from one form to another with relative ease and the easier it flows the wealthier we all become.  As we will come to understand the more fluid wealth flows in all capacities the wealthier we all become.

An Organization’s Hierarchy of Needs

The shift to emotional and spiritual intelligence has everything to do with the shift in organizations’ missions today from making profits to meeting people’s needs. In the past, we considered an organization’s mission to be merely making profit because, like people, organizations also have a hierarchy of needs. Near the bottom of the organizational needs hierarchy is profit. If a person does not have air he or she will not be around very long; likewise an organization without profit will not be around very long. On the other hand, a person’s mission in life is not to simply breathe air.

As humanity collectively matures and moves up the hierarchy of needs to focus on higher order needs, so too must organizational types, as their focus broadens from mere personal profits. The simple shift in organizations’ missions towards the meeting of human needs represents a significant change in our view of wealth-creation. In an Information Age, the mere act of increasing one’s emotional and spiritual intelligence, completely void of any material object, is in and of itself creating wealth.

As Goes Wealth-Creation, so goes Human Nature

Though attaining non-material wealth sounds great, most people today are still more concerned with material wealth. After all, we must eat, have shelter, cars, clothes, computers, and other material items which cost money. The shift to the broader definition of wealth-creation, “the meeting of human needs” means that higher emotional and spiritual intelligence are requirements for attaining greater material wealth, as well as non-material wealth. At a practical level, emotional and spiritual wealth is far more important than material wealth, since:

In the Win/Win Era the higher the emotional and spiritual intelligence the more material and non-material wealth one is able to create.

This is a radical de­parture from the Win/Lose Era. Control and victimization of the masses fueled the wealth-creation systems of the Win/Lose Era—employment, serfdom and slavery. Hence they were eras of mass victimization. One problem with mass victimization is that it limits and lowers the levels of emotional and spiritual intelligence in people. This includes both the people being controlled as well as those doing the controlling.

Mass victimization was done in the name of satisfying one’s own practical, immediate needs. You held a slave in bondage, control and pain in order to serve your own needs. Since wealth-creation was more about attaining something at someone else’s expense, one’s emotional and spiritual intelligence, as defined above, would need to be somewhat low to do this. One would have to think that he or she would gain by causing someone else to lose—one would have to see themselves as separate from the other—and this all by definition is low spiritual intelligence. We do not usually see those who participate in illegal win/lose activity (criminals) as having high emotional and spiritual intelligence. Likewise we who participate in legal win/lose activities also have relatively low emotional and spiritual intelligence. This is true whether the competition is in sports, business, war or for fun.

We must remember that the line between legal and illegal win/lose activity is arbitrary. Slavery is illegal today but was legal two hundred year ago. Gorilla warfare, during war times, is legal today and was not three hundred years ago in Europe. We will eventually come to understand that legal and illegal win/lose activity hurt us all as individuals and as a whole and legal verses illegal is irrelevant. Perhaps one day employment will be illegal! After all, from a liberty perspective, the only real difference between slavery and employment is that employees have the freedom to change plantations. However, the vast majority of employees must stay on some plantation. As one manager once said, “I want to hire people who are deep in debt because they are easier to control.” They are more “bonded” to the boss and his or her will.

Most people see spiritual intelligence and wealth-creation as opposites. The bible says that it harder for a rich man to get into heaven than a camel to fit through the eye of a needle. This reflects the misalignment between wealth-creation and spirituality throughout human history.

A customer-driven empathic era will force empathy and increased emotional and spiritual intelligence of the individual. This is because a customer-driven buyer’s market demands that people see from other people’s perspectives in order to tend to these people’s needs. Suppliers who are good at understanding and attending to others’ diverse needs prosper and grow. Suppliers who do this poorly or are mediocre either go out of business or increase their emotional and spiritual intelligence. For the first time in human history, wealth-creation is becoming aligned with higher order human needs—revealing a more coherent whole reality.

Great spiritual leaders, like Jesus and Buddha, thousands of years ago spoke of a win/win and abundant reality. However, without aligned structures we have not accepted it. Without direct alignment, which shows how the effects of our benevolent actions help us, we have had too little motivation to see the systemic win/win reality of the universe. We, therefore, talk a good game on Sunday and other holy days, but our actions for the other six days of the week, when it comes to meeting our practical needs, run counter.

The customer-driven movement is extremely powerful because of the new alignment between wealth-creation and emotional and spiritual intelligence. Within the new paradigm, there is no difference between growing emotionally and spiritually, helping others and wealth-creation. They have all been synthesized into one undivided whole.


What Human Activity Drives Wealth-creation

Wealth Paradigm

Win/Lose Era

Win/Win Era

Scarcity Paradigm

Abundance Paradigm

Finite Wealth

Infinite Wealth

Win/Lose

Win/Win

Fear-Driven Competition

Love-Driven Collaboration

Work Paradigm

Win/Lose Era

Win/Win Era

Work is Unpleasant

Work is Fun

Work is Done in Order to Live

Working is Living

Human Work Relationships

Win/Lose Era

Win/Win Era

Adversarial/Subordinate

Partnered

Controlled/Authoritarian

Chaotic/Synocratic

Sales (meet my needs)

Service (meet your needs)

Self-centered

Empathic

Self-Interested

Considerate

Selfish

Generous

Separate

Interconnected

Independent/Dependent

INTERdependent

Fear-based

Love-based

Embraces Homogeneity

Embraces Diversity

Controlling Others Produces Wealth

Helping Others Produces Wealth

Debate/Discussion (get your point across)

Dialogue (Understand others)

Individual Work Outlook
 

Win/Lose Era

Win/Win Era

Victims (powerless to effect change)

Self-Empowered

Mass Passivity (others lead, masses follow)

Mass Activism (everyone leads)

Competition for Limited Resources

Collaboration to Tap Infinite Wealth

Judgment

Imagination/Creativity/Intuition

Strength from Fear

Strength from Love

Impersonal Work Relationships

Interpersonal Work Relationships

Self-Protecting, Defensive, Tough

Open, Secure, Confident, Soft

Advances Vertically

Advances through Connections


The tables above shows the drivers of wealth-creation in the Win/Lose and Win-Win Eras. It illustrates that they are driven by almost completely opposite forces. The shift to a win/win era represents a complete reversal from all of human history. This is consistent with the science of breakpoint which shows that systems operate completely opposite after breakpoint as compared to before breakpoint (Land, Jarman 1992).

The shift to win/win is now practical because of humanity’s level of advancement in maturity, knowledge, technology and spirituality. Eventually, however, we shall see and come to understand that win/win and abundance have always been available to humanity, just as the great spiritual leaders throughout history have claimed. We, however, were not mature enough to see it. We humans have always been on a journey. It has been a journey of maturation. We have confused an immature humanity with an unchangeable human nature. We are about to reach a new level of maturity and with it comes more liberty.

Emotional and Spiritual Intelligence, Wealth-Creation and Love

Stephen Covey’s book Seven Habits of Highly Effective People has maintained itself on the business books bestsellers list as well as most generic bestseller’s lists for nearly a decade. This is unprecedented in business books. These seven habits are about increasing one’s emotional and spiritual intelligence in order to produce more wealth for oneself and others. It is no accident that this book has appeared today and not twenty-five, fifty or one hundred years ago.

These habits are more about effectiveness in the Win/Win Era than the Win/Lose Era. For example, thinking win/win, habit number four, would not be very practical in a competitive win/lose era. How could you think win/win towards the opposing team in the middle of a football game while the opponent is intently focused on defeating you? If we compiled a list of the most “effective” people in history and looked at their most common traits, most of these seven would not be on the list. Effective as defined by most people’s definition of success: money, wealth, power, high standard of living and quality of life.

The seven habits are: 1) Be proactive, 2) Begin with the end in mind, 3) Put first things first, 4) Think Win/Win, 5) Seek first to understand, 6) Synergize, 7) Sharpen the saw.

Today, however, as we shift to a Win/Win Era, companies and other controlled economies are attempting to implement Covey’s seven habits.

Just as organizations today with higher collective IQ’s, creativity, intuition and multiple intelligences, are more capable than lower IQ organizations, organizations with higher emotional and spiritual intelligence are more capable than companies where it is lower. There is even a new booming industry of consulting organizations helping organizations increase their emotional and spiritual intelligence. Jan Nickerson founder of The Prosperity Collaborative is able to share her emotional and spiritual intelligence with organizations. She helps expand organizations’ emotional and spiritual intelligence thus helping organizations better collaborate, meet human needs and reap bigger profits.

Today’s workers in self-directed teams must have high levels of emotional intelligence in order for the teams to function effectively. As the world is now shifting towards win/win and we attempt to mature and throw off the shackles of supervi­sion, regulation and control, we run headlong into our low emotional and spiritual intelligence.

When the regulating supervisor is removed while implementing self-directed teams, all hell breaks lose. This behavior is a direct result of individuals’ low levels of emotional intelligence resulting from a history of win/lose human relations. This low emotional and spiritual intelligence includes: low tolerance levels, quickness to judge, blame and find fault, the obsession with being heard and the inability to listen, the lack of em­pathy and the inability to transcend paradigms to see from other perspectives. By far the most prevalent problem in newly formed self-directed teams is the perception by the majority of individuals that they are victims being picked on by others. An obsession with being a victim can be expected after thousands of years of mass victimization.

I was counseling one dispute within a self-directed team regarding an incident where one person incorrectly perceived an attack from an­other. I asked this person not to become so defensive and judgmental with others; to give people the benefit of the doubt and he’d feel less need to be offensively aggressive. Towards the end of the conservation he said something quite profound, “with the way things used to work, before teams, if I didn’t look out for myself nobody else would.” This simple statement is the key to wealth-creation in an Information Age and this entire book. A partner-based customer-driven empathic age is about people look­ing out for the needs of others.

According to Don Carew, co-author of The One-Minute Manager Builds High Perfor­mance Teams, teams that have broken through to become super high-performing all have one thing in common. They all have a very high degree of caring for one another. They are focused on each other’s needs; they are interconnected; there is love. A high degree of caring for others is a key trait of individuals with high emotional and spiritual intelligence. Obviously, in or­der to have a high functioning team, members cannot themselves be dysfunc­tional.

The team, which is the heart of Mass Privatization, has at its core the need to move be­yond self. There is the need to focus on other people’s needs, to contribute to others and society. I refer to this as interconnectedness or spirituality. Some, however, simply call it love.

Copyright 2000 by Barry Carter


Next: The Synthesis of a Win-Win World

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth

Welcome

Sunday, July 28th, 2002

We continue with the tenth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation  7) The Infinite Wealth Potential of Liberated Humans 8) The Mandate for Win-Win Wealth Creation and 9) Breakpoint: Why You Must Act Now

You are living in a period of time that will produce more change for humanity that any previous era in history. It is a time of extraordinary importance that will fundamentally reshape almost every aspect of your life during the next two decades. Wholesale change is taking place in almost every segment of your reality and the pace will only increase in the coming years.

—John Peterson, The Road  to 2015


SYNOCRACY: True Democracy Through Synergy

Barry Carter

For those desiring more freedom from government controls it is critical to understand that the institutions for an era all fit together. We have the present governmental limits on personal liberty because this is required for a system of Centralized Wealth Creation and controlled economies. In order to get significantly more personal liberty from government we must have a significantly different way of organizing work, business and all of our institutions. If you are a business owner railing against the infringements on your personal freedoms by government, consider the limits of creative freedom and ownership that your system of organizing work in your company places on your employees.

I could spend several chapters defining the problems with Mass Representative Democracy and why it cannot work in an Information Age. However, we all deep down intuitively know that something is gravely wrong with the system of politicians, taxes, representation and elections. We know that it is so deep it will not be fixed simply by electing a new president or even a whole new congress. However, we simply cannot imagine anything beyond “Traditional Democracy” or what would replace it. Over two hundred years ago Thomas Jefferson, a founding father of Mass Representative Democracy, warned us of the system’s limits.

“I am not an advocate for frequent changes in laws and constitutions.  But laws and institutions must go hand in hand with the progress of the human mind. As that becomes more developed, more enlightened, and as new discoveries are made, new truths discovered and manners and opinions change, with that change of circumstances, institutions must advance also to keep pace with the times. We might as well require a man to wear the coat which fitted him as a boy, as civilized society to remain ever under the regimen of their barbarous ancestors.”   –Thomas Jefferson

By today’s standards even Jefferson would have to admit that he was “barbarous” as a slave owner. With his own words Jefferson himself sowed the seeds for the replacement of the representative system of government and civilization that he helped to establish. We continuously look back to see what our forefathers intended.  Above all they intend for humanity never to be stuck in outmoded institutions.

The monarchy, overthrown by Thomas Jefferson and his associ­ates two hundred years ago, was part of a system of wealth-creation for an agrarian society which was outgrown and replaced with a sys­tem for an industrial society. They needed a new and fresh founda­tion, one that inherently supplied the levels of liberty, own­ership and freedom to harness the power and growth of the coming Industrial Revolution.

There seems to be a trend in which humanity requires more liberty and free­dom as it grows and evolves in order to continue growth and development. As human­ity has grown, devel­oped and become mature over the past decades and centuries, we have reached the limits of liberty, ownership and freedom with our present system of represen­tation. We now require a new system that will provide individuals with even more inherent individual liberty, ownership and freedom. Having outgrown the Industrial Age wealth-creation system, it’s time for us to take Jef­ferson’s advice and do what he and his clan did—cast aside the old system and help usher in the new system of social order.

The Quest for True Democracy – Our Intuitive Ideal

When we synthesize Decentralized Wealth Creation with expanded social and economic freedoms from information technology we see a new system of “True Democracy” arising to replace representation. Most people intuitively know what True Democracy is.  However, this idealistic view does not fit the representative government that we have had for the past 200 years.

Most people intuitively understand democracy as a system of individual liberty; one free of authoritarian controls and restraints on our individual liberty; one with opportunity for all. We envision a system based upon synergy where individuals come together through free market interactions to create more than they could separately. These free interactions include thoughts, ideals, culture, products, values and more. We envision a system where social order is largely a by-product of our free market interactions, therefore, requiring little authoritarian controls. We envision a system with family values at the core; based upon responsibility and ownership; a system with spirituality interwoven into the very fabric of the system and our daily lives.

Unfortunately due to technical and other limitations this has been a mere dream. We have not experienced True Democracy over the past two hundred years. At this point in our history we must make a distinction between the “Beginner’s Democracy” of the Industrial Age and True Democracy of the Information Age to which we are moving.  For this reason I refer to the “Beginner’s Democracy” of the past two hundred years as one form of Representative Government. As shown in The Age Wave Chart, Representative Government, covers everything from Beginner’s Democracy to communism to dictatorships—all of which use representatives, elected or imposed, to makes decisions for the masses.

Beginner’s Democracy is a good system relative to the primitiveness and control of monarchy and serfdom. It offered significantly more liberty for our ancestors transitioning from an Agricultural Age. Today, however, it simply does not offer the liberty, interconnectedness and opportunity for all that is required to propel an information society. When we analyze exactly what Beginner’s Democracy means and compare it to how it operates, we are shocked that our form of government is not exactly what we thought we had. The dictionary defines democracy as:

1) Government by the people; Rule by the Majority. 2) A government in which the supreme power is vested in the people and exercised by them directly or indirectly through a system of representation usually involving periodic free electionsÖ  5) The absence of hereditary or arbitrary class distinctions or privileges. (Merriam-Webster, 1991)

Beginners Democracy is therefore a system of government based upon rule by the majority of people through elected representative politicians who, through laws attempt to deliver social equality to all.

When we analyze the definition above we find even more surprises. Webster’s defines government as “authoritative,” a system of governing.”  Governing is defined as “to control and direct,” “to rule,” “to dominate,” “to restrain.” To rule is defined as “to control by authority,” “to exercise dominion and power over,”enforcing obedience to one’s own ideas of what is desirable.”

Based upon the above, one can logically define Beginners Democracy as a system of social organization based upon providing individuals with a relatively small degree of liberty, where the majority selects the people to dominate, restrain, rule over or control them, with the ideal of treating everyone equally.

On a relative scale, traditional democracy is an authoritarian system in which the majority merely gets to elect who will be in authority. Some may see this as a specious argument based upon formal dictionary definitions. Much of this group may feel that the answer to representative democracy’s problems can be found with a simple shift from federal to local governmental control.

The Failure of Local Representative Government

The thinking of the local government movement is that this will get control back into the hands of the people. This is the same logic that managers in companies are using as they attempt to fix their problems by converting to smaller baby bureaucracies within larger bureaucracies (business units, teams, horizontal organizations, etc). Though they both show the direction of change neither is the answer nor our final destination for an Information Age.

From 1992 to 1996 I worked closely with the public school system in Greene County North Carolina. The school superintendent, Dr. Paul Browning, was extremely progressive, bringing a new level of customer service, openness, democracy and learning to the school system and county. He led the effort to get two of the county’s four schools to Exemplary Status. Refusing to play the political game he had done some things that were in the best interest of the children and county but had offended some well connected people. Eventually he was forced to resign and he was paid $125,000.00 for the buyout of his contract. Citizens were outraged.

In a county where citizens rarely speak out due to apathy and fear of reprisal, hundreds showed up at Board of Education meetings. In meeting after meeting citizens demanded answers regarding what had happened. Newspapers led with editorial headlines reading “Tell the People Why!” Board of education meetings were broadcast on the local news. In one meeting, filling a school auditorium, citizens repeatedly asked why the action had been taken. The board members sat silently and did not answer a single question as the questions flew for a couple of hours. The Board of Education’s lawyer instead responded to all of the questions. In a nutshell his position was as follows:

It does not matter what you people want, think or believe. You have elected these politicians to represent you and they have the legal authority to take the action they have taken and to run the school system as they please. This is our system of government. Good or bad, the system, education included, works based upon politics. If you don’t like the decisions these people have made then don’t vote for them in the next election. However, they do not owe you any answers for their actions and will not answer any of your questions.

He made it clear that they, the authorities, control the school system and the education of your children not, we the people. In future meetings the citizens were treated like serfs. We were constantly reminded that the meetings were not for us and that we the citizens were external to the government, with them being in charge. In many cases we could not hear the discussions. Board members would whisper to one another, we never received handouts of information being presented to the board for consideration and thus could not follow the issues being reviewed. The room was designed so that the people bringing proposals to the board for review sat with their backs to the citizens, symbolically and literally leaving the citizens out of the meeting.

Overhead projectors and other tools that most organizations use to communicate to groups were hardly ever used. In one case a presenter did use a transparency projector.  The screen hung in the back of the room where the citizens sat. When it was pulled down from the ceiling it came down directly in front of people in the back row. Not only could they not see the presentation, the back of the screen was inches from their faces pinning them against the back wall of the room. The balance of citizens had to turn their necks at a very bad angle to see, with some others not being able to see at all.  At the end of the meeting I asked why were they not using standard seating arrangements and communications tools that organizations use as a matter of course, when they desire is to communicate. Needless to say I got no answer.

As of this writing all of the board members who voted for the buyout lost their bid for reelection. The leader of the coup, the Chairman of the Board, finished next to last out of a field of more than a half dozen. The board members’ loss proved that the majority of citizens did not agree with the board’s action. One could say that Beginner’s Democracy prevailed as the citizens got the last word. However, the citizens did not get what they wanted. The customers’ needs were not met. Browning was gone forever and my four children and other children in the County will get a poorer education because of this. Local Mass Representative Democracy had failed to meet its prime mission, majority rule and was and is light years away from individual liberty. Ironically part of the defense used by board members was that they knew best what was right because they were local and not state or federal politicians. Though they were right as far as they went, they were unwilling to take it to follow the logic to the next level and trust “we the people.”

Local Mass Representative Democracy is not the answer to our problems. One may say that the example above is an exception, however, local papers nationwide, each week have many similar problems. Within two years Greene County had a repeat of a similar issue with the Board of County Commissioners regarding a regional landfill. Again citizens were treated as lowly serfs and the landfill was pushed through against strong citizen opposition.

We have the liberty to choose our dictators and this is largely where our liberty ends. Though people may say dictator is too harsh a word, I refer to the Greene County citizen who told me, “I cannot say anything regarding my opposition. All it takes is one phone call to the state board of _________ and I am out of business.” I met many citizens who made similar statements.  Even today I leave out the name of the state board due to the fear of reprisal for the individual.

The best we can hope for with Mass Representative Democracy is an enlightened dictatorship. And even with this as much as 49% of the population may not be getting what they desire since Mass Representative Democracy is based upon rule by the majority. And even when one’s candidate does win none of the individuals voting for him or her gets all of the things they believe in. Customer’s needs, therefore, go unmet. This is because it is a mass production system where regardless of individual’s needs the focus is on the average.

Today there are people ranging from radical militias to conservatives to libertarians to liberals to minorities to many upstart organizations who are almost in rebellion against what they perceive as the tyranny of Beginner’s Democracy. Most believe that the true ideals of representative democracy have been subverted. However, they have not, since Beginners Democracy, at its core, governs, rules, controls and restrains the individual in society through laws, taxes and micro rules. In fact, Beginners Democracy is more democratic than ever with our politicians more intelligent, honest, law-abiding and ethical than ever. The problem is that our expectations have been raised, primarily by information technology, as we better connect and yearn for levels of liberty and maturity beyond what Beginner’s Democracy can delivery.

We must remember that Beginner’s Democracy is an archaic Mass Production system where everyone gets the same equal and “average” treatment, as determined by representatives of the majority, regardless of the individual’s specific needs. The rage people feel against Beginner’s Democracy is the yearning for more liberty, therefore more customization, from a more mature form of democracy for a more mature humanity. We are six years olds demanding that our training wheels be removed.

Beginner’s Democracy is a system of social organization in which order comes from a source external to and separate from the individuals in society—elected representatives in governing bodies. It is a primitive system of liberty providing basic freedoms, where there is very little direct participation by individuals.

Even when Beginner’s Democracy is directly participatory, with individuals directly voting for or against something, it is still about narrow win/lose choices. It is rigid, lifeless and mostly void of synergy, with two or sometimes three opposing win/lose viewpoints, while the world contains infinite viewpoints. Beginner’s Democracy is about debating, pointing out the weaknesses and negatives in other’s views and furthering one’s own point of view at the expense of others. It is mostly void of synergy because it is about analyzing and fragmenting reality and focusing only on one’s own perspective, as opposed to integrating and building on many perspectives. Rather than pulling humans together to become interconnected, it is about maintaining our separateness and divisions. Beginner’s Democracy is mechanistic, Newtonian, analytical, reactionary, linear and slow.

True Democracy is not only replacing Beginner’s Democracy with a new, more liberating and enlightened system, it also replaces the very notion of government with the broader notion of “social order.”  

A New Paradigm of Democracy From its Roots

The common belief by most people is that democracy has its roots in European culture. Jack Weatherford shows in his book, Indian Givers—How the Indians of the Americas Transformed the World, that the roots of democracy lie in the Indian cultures of the Americas.

It is commonly understood that American democracy was an outgrowth of the political thought of the 17th century Enlightenment.  Weatherford outlines how reports on the political systems and way of life of the American Indians inspired those 17th century thinkers. 

“Europe at that time was an intensely authoritarian, class-bound society.  In fact, the word “freedom” itself was not defined as “personal liberty” in European languages prior to the discovery of the Americas, but generally referred to a nation’s independence or a slave’s release from bondage. Once New World explorers began to observe the native cultures they experienced “amazement at the Indians’ personal liberty, in particular their freedom from rulers and social classes based on ownership of property. For the first time the French and the British became aware of the possibility of living in social harmony and prosperity without the rule of a king.” (Weatherford, 1988, p. 123.)

These ideas provoked a good deal of thinking and writing in the early 16h Century and by the 17th Century many more reports had found an interested audience, particularly in France. A very popular writer, Baron de Lahontan, published a number of works based on his observation of the Huron. He reported on the statement of one Huron to him,

“We are born free and united brothers, each as much a great lord as the other, while you are the slaves of one sole man.  I am the master of my body, I dispose of myself, I do what I wish, I am the first and the last of my Nation . . . subject only to the Great Spirit.”  (Brandon, New Worlds for Old: Reports from the New World and Their Effect on the Development of Social Thought in Europe. 1500-1800, p. 90)

These ideas were adapted into a “hit” play Arlequin Sauvage by Delisle de la Drevetiere.  In true French romantic fashion, the play was about an American Indian who travels to Paris.  A young Frenchwoman named Violette falls in love with him and travels back with him to the New World so that she might live in liberty. 

This play made a great impression on a young Jean Jacques Rousseau who subsequently wrote Discourse on the Origins of Inequality, 1754.  (His name is always mentioned in the list of European thinkers who influenced the American Founding Fathers.) 

Another significant name on that list is Thomas Paine.  At the age of 37 he went to visit Benjamin Franklin in Pennsylvania and became interested in the Iroquois.  During the Revolution he was employed as secretary to the commissioner sent to negotiate with them.  He learned their language and in the rest of his writings, including Common Sense, The Rights of Man, and The Age of Reason used the Indians as models of how a free society might be organized.  Following the pattern of the Iroquois League of Nations, he coined the name “United States of America.” 

In fact, the first person in recorded history to suggest a union of the colonies was the Iroquois chief Canassatego in 1744.  He complained that the separate colonies, each with their own policies, were difficult to communicate and deal with, and life would be easier for everyone involved if the colonies could unite and speak with one voice, as the Iroquois League did.

Benjamin Franklin also studied the Iroquois extensively.  As early as 1754 at the Albany Congress he called for the colonies to unite into a league similar to the Iroquois. Decades later, as the U.S. government was being framed, Franklin continued to promote many of the details of Iroquoian government to the Founding Fathers, many of which were adopted. 

Charles Thomson also studied the Iroquois extensively, and at Thomas Jefferson’s request, wrote a lengthy report that was included in Jefferson’s Notes on the State of Virginia.  Not only was the concept of a united federation of states described, but also many other details of government which were later adopted into our own constitution.  He describes political leadership won by election, not heredity. There is a separation of military leadership from civil leadership. There is the concept of impeachment. There is the concept of the ratification of new states as equal members. The European model was one of colonization—a new land that was to forever remain a vassal to the colonizing nation.  But in our country new lands became territories which were nurtured from the outset to become equal partners. 

Another uncanny similarity is in the concept of an electoral college.  There was also a tradition of changing the name of a new leader, which anticipates the practice in the Senate of addressing a senator by his senate title, not his personal name, which is never mentioned on the Senate floor.

Franklin wanted to use the Iroquois word for “grand council” rather than the Latin -based “congress.”  Franklin proposed, in imitation of the Iroquois, that U.S. officials not be paid for their work.  This was not adopted, but the principle apparently was noted, since the Founding Fathers did arrange for officeholders’ salaries to be minimal, just enough to pay for living expenses.  Franklin was also very excited about the Iroquoian custom of military leaders being elected by the men they led.  He even formed a militia organized this way.  Our government did not adopt this, but they did abandon the European custom of military posts being purchased by the wealthy, and they did allow for a great deal of movement through the ranks and avoided the domination of the wealthy aristocracy or oligarchy. 

Another likely imitation is the custom of allowing only one person to speak at a time.  (European parliament traditionally has allowed the shouting down of any speaker who displeased noisy members.)

“The purpose of debate in Indian councils was to persuade and educate, not to confront.  Unlike European parliaments, where opposing factions battle out an issue in the public arena, the council of the Indians sought to reach an agreement through compromise.”  (Weatherford, Indian Givers, p. 141.)      

One aspect of Iroquoian social order that never was adopted but is very intriguing is the fact that policies were adapted by their councils only when concurrence was unanimous. This is the destiny to which democracy must return. If we are to have a win/win world based upon synergy and synthesizing then it must come through the type collaborative dialogue which could produce unanimous concurrence. It is the kind of communications which can occur in Mass Privatization but will never work in controlled economies, representative government and bureaucracies.

Later research into the workings of Indian systems of social order throughout the Americas has shown that this democratic organization was commonplace.  Throughout this whole hemisphere, a chief never possessed the kind of power to which Europeans were accustomed. Even in the highly complex Aztec culture the Spaniards found, Moctezuma was the supreme speaker of the nation, not its emperor. 

Democracy—The Dream Realized at Last

It is important to understand the history of democracy. However, this is not just about the history of Beginner’s Democracy of the Industrial Age. The Indians have also given us a model to follow for True Democracy of the Information Age. There are significant differences between Beginner’s Democracy and the system of social order of Indian Democracy. Weathford illustrates the difference in his description of a recent powwow in Fargo North Dakota. Weathford states:

To an outsider things, such powwows often appear chaotic. Even though posted signs promise that the dances will begin at four o’clock, there is still no dancing at five-thirty. Drummers scheduled to play never arrive, and some groups drum without being on the program. Impromptu family ceremonies intertwine with the official scheduled events, and the microphone passes among scores of announcers during the evening. No one is in control. This seems to be typical of Indian community events: no one is in control. No master of ceremony tells everyone what to do and no one orders dances to appear. The announcer acts as herald or possibly as facilitator of ceremonies, but no chief rises to demand anything of anyone.

Having attended a recent Iroquois powwow in Washington, North Carolina Weathford seems to be describing the very powwow that I attended. Beginner’s Democracy is authority-based whereas Indian Democracy is more egalitarian. In Beginner’s Democracy someone must be in control—in authority. Based upon Weathford’s description, Indian Democracy was more natural and free flowing; artististic and spiritual; synergistic and synthesizing. At the same time it was practical and supported their system of wealth-creation and social order. Indian Democracy worked because people lived and worked in small communities connected to other small communities.

As we move into an Information Age where information technology is creating a global village of interconnected diverse small Mass Privatization communities, a more natural and liberating form of democracy is mandatory. Toffler refers to the new government for an Information Age as a mosaic democracy—a society of overlapping organizations with direct participation. Peter Drucker calls it a society of organizations. An Information Age must have a system of social order that moves towards a more natural democracy. Perhaps we can provide a new and concise definition for True Democracy.

Social order and abundance through the people’s free interactions, interdependence and interconnectedness.  To be even more concise: Social order and abundance through synergy and synthesis—hence Synocracy or Mass Synocracy.

mass :  Ö adj.  (1773) 1a: of or relating to the mass of people.
synergy: Ö [from Greek  synergos, working together] (1660): interaction of discrete agencies Ö or agents Ö such that the total effect is greater than the sum of the individual effects.
s
ynthesis: [Greek syntithenai, to put together] 1589: 3: the combining of often diverse conceptions into a coherent whole, 2b: the integration of seemingly opposite concepts into a higher stage of truth.
 -cracy: . . . [Greek - kratia from strength, power.] Ö  3: theory of social organization <technocracy>.  (Merriam-Webster New Collegiate Dictionary. 1991)

True Democracy or Mass Synocracy moves us away from governing, ruling or dictating even when it is self-induced governing, ruling or dictating. Synocracy is about engaging each individual and each viewpoint in society—the more the merrier. While Beginner’s Democracy chokes on diversity, seeking a homogeneous melting pot, synocracy thrives on it seeking a diverse mosaic. Synocracy is alive with people’s ideas freely flowing and building on one another’s through dialogue, seeking first to understand, brainstorming, connecting and communicating.

True Democracy or Synocracy is a synthesizing and synergizing process of creativity, creating, artistic flow and continuous evolution to a higher abundant and spiritual state. It is a system of connecting and integrating, revealing underlying quantum wholeness to the universe. Synocracy at its core is a highly liberating, participatory and customizing form of social organization, where self-determination and each individual’s needs and liberty are of highest priority—however through this highest priority the greatest group collaboration is produced.

With Mass Synocracy, social order is self-generating from within the system. By each individual creating wealth and working, he or she automatically participates in producing an ordered society based upon norms, not laws and micro rules. Unlike Beginner’s Democracy, which supports our fragmented Newtonian worldview, by separating social order from wealth-creation “government should stay out of business,” Mass Synocracy synthesizes social order into the wealth-creation process itself.

Beginner’s Democracy also separates social order from spirituality. It must do this or risk abuse of power and oppression of people’s religious beliefs, hence the long standing Newtonian separation of church and state. With Mass Synocracy there is no division between spirituality, wealth-creation and social order. The three plus more have been synthesized into one undivided natural whole called life.

Mass Synocracy is the system of True Democracy that results from a society operating upon Mass Privatization, Decentralized Wealth Creation and Mass Autocracy. There are thousands of global Mass Privatization communities, with the common mission of meeting other people’s needs. As they deeply interconnect, overlap and interact, social order and abundance in society is naturally produced. Social order comes through norms, principles and a shared vision of the interdependent whole of which we are a part. Each individual is connected and has some relationship with every other individual globally, either directly or indirectly.  It is a system where all boats rise together, with an individual’s wealth directly increasing as the wealth of other individuals and the whole group increases; thus win/win and collaboration is the primary norm.

Copyright 2000 by Barry Carter


Next: THE SHIFT: Awaking to a Win-Win World

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Also see Timothy Wilken writing on SYNOCRACY

Reason Wilken’s Review of Infinite Wealth


Welcome

Friday, July 26th, 2002

We continue with the ninth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation  7) The Infinite Wealth Potential of Liberated Humans and 8) The Mandate for Win-Win Wealth Creation

“The science of natural change and growth shows that at critical points in the development of anything the rules shift. . . . At Breakpoint the rule change is so sharp that continuing to use the old rules not only does not work, it erect great sometimes insurmountable barriers to success.”

 – George Land and Beth Jarman, Breakpoint and Beyond


Breakpoint: Why You Must Act Now

Barry Carter

At the dawn of the Information Age there are serious questions to be asked. How and when do we make it past breakpoint? Can this occur with­out catastrophic violence, death and turmoil? Is there the likelihood that we will not make it into the new era? Can the transition occur through slow, continuous improvement, or is it an all-or-none proposition? Throughout the rest of this book, these questions shall be answered. However, in short, slow continu­ous change alone is a doomed strategy. The science of breakpoint as well as our precedence from the past indicates that the change will be abrupt and quick.

Breakpoint – Sudden, Abrupt and Radical Transition

We will remain on the Industrial Age foundation of Centralized Wealth Creation, until we hit what George Land and Beth Jarman in Breakpoint and Beyond call breakpoint.  It is a climax through which we must pass to make the transition from an Industrial Age to an Information Age and from the Win/Lose Era to the Win/Win Era. Breakpoints are natural phenomenon in the develop­ment of any evolving system, where the rules suddenly and sharply shift. The old rules no longer apply and even become counterproduc­tive. In explaining the sci­ence of break­point, Land and Jarman say, “the science of natural change and growth shows that at critical points in the development of anything the rules shift.” After breakpoint, many things operate opposite of pre-breakpoint. Using science and social change, Land and Jarman build a compelling case, showing how breakpoints work. They show several things:

Σ       As breakpoint is approached, actions that were once very productive begin to have diminishing returns, with systems becoming ineffective and inefficient. For example, today it is commonly understood that the management of people is quite an ineffective means of running a business though we have productively done so it for two hundred years. We have new books such as Managing People is Like Herding Cats and The Unnatural Act of Management documenting this trend. A second example can be seen with the focus on material wealth creation verses non-material wealth as explained earlier with IBM and Microsoft. Material wealth has been very productive for two hundred years, but now knowledge based wealth is far more productive.

Σ       Once breakpoint is reached the old systems simply do not work and even become counter­productive. For example, serfdom and aristocracy after the French Revolution simply were not possible. Agricultural wealth creation after the start of the Industrial Revolution produced millions of failing family farms as people were herded into factories. Likewise we will see the failing of employment after breakpoint to Mass Privatization.

Σ       Many things, which produced nothing and were liabilities before breakpoint, become the new producers after breakpoint. For example, workers in controlled economies are liabilities. This is from a financial perspective with the win/lose-standardized compensation of employment. This is because they are a cost. Workers, however, become the primary asset in the win/win value added compensation system of Mass Privatization.

Perhaps, the most compelling trait of breakpoints is that they are all-or-none and all-at-once propositions. We cannot safely and effectively “contin­uously improve” our way past breakpoint, since the Infor­mation Age is not a mere linear extension of the Industrial Age.

Based upon past precedence, we are presently near the breakpoint of a completely new wealth-creation paradigm and civilization. Because of our society’s level of advancement, this promises to be the sharpest and largest change in all of human history in the shortest time span. Based upon past historical precedence we can expect a dramatic, sharp and abrupt shift where controlled economies, employment, representative government and all other Industrial Age institutions are replaced, as the norms and power systems in society, over the span of a few years.

Three Historical Breakpoints – Linear Thinking from the Past

People who live in a civilization that has lasted for hundreds or thousands of years, or even just a few decades, tend to believe that the current institutions are all that is possible. Their thinking becomes straight lined and linear. The future is simply more of the past. Things will continue the same way indefinitely. As shown in the following figure every so often, after decades or cen­turies of straight, continuous, linear change, things move in a completely new di­rection.

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The precedent also shows that these abrupt, directional changes result in massive death and destruction, as people are usually caught off-guard, thinking that things are destined to continue in a straight line. They, therefore, ignore or resist the change, producing pain for themselves. They literally miss the turn off to the future as they plunge into death and destruction.

As we look back in history we see people in a Hunter/Gatherer Age who had lived a simple tribal life for tens of thousands of years. They had the vast majority of the evidence showing that things would remain the way they’d always been. When we look at what happened in the United States when the Agricultural Age clashed with the Hunter/Gatherer Age we see 9.6 million out of ten million Na­tive Americans dying because of a non-linear breakpoint. We see the same in Mexico with the Spanish, in Africa and many other countries as they were colonized by agrarian powers such as England and Spain. 

We see the same straight linear thinking with the Agricultural Age to In­dustrial Age transition. This transition offers us several precedents of age wave breakpoint. In all of what would become the indus­trialized world, the Agricul­tural Age wealth-creation system of serfdom, slavery, monarchy and more was systematically replaced. In the French Revolution, those who resisted the new paradigm had their heads chopped off; Russia experienced the Bolshevik Revolution; in the United States a first breakpoint came with the American Revolution. However, the Southern United States committed to sticking to an agrarian civilization requiring a second breakpoint with the Civil War.

Southern plantation owners ignored and then resisted the steamroller forces of the coming and unstoppable Industrial Revolu­tion, causing many people to lose fortunes, lives and family. Many lost all that they had built because of their out-of-date wealth-creation paradigm. Plantation owners had to be taken hostage and forced into the Industrial Revolution, with the Civil War. Their ignorance and unwillingness to shift paradigms and see the future cost 600,000 lives and the destruction of much of what they had cre­ated.

Throughout the world those who resisted or ignored the incoming Industrial Revolution caused mass destruction; a fate we can avoid by aligning ourselves with today’s shift. The precedent clearly shows that the true risk, at breakpoint lies in: 1) Linear thinking, 2) Not breaking out of old world views and, 3) Not getting into alignment with the collective change. As Peter Drucker says, “we must today be prepared to change everything.”

The Collapse has begun

As we look at the United States, the most advanced of the industrialized nations and the leader into the Information Age, we see a society nearing breakpoint.  A society that fits the first rule of the breakpoint concept—the systems become ineffective and inefficient. In our schools we have dropped to the bottom of the rankings of all industrialized nations ranking 19th in 1998. We have wasteful and declining bureaucracies not effectively meeting customer needs, gridlocked government, increasing taxes, gangs, drugs, corrupt leaders, high crime and violence, terrorism, homelessness, talk of session, collapsing traditions, collapsing infrastructure, declining families and far more.

Already more than 100,000 peo­ple have died in street violence and other violence crimes in the United States as a re­sult of the shift during the 1980’s and 1990’s. Think of the magnitude of the disillu­sionment of southern planta­tion owners immediately after the Civil War. This is the pain we face without more alignment with an Information Age. What must we do to avoid this pain? We must abandon our present civilization and create a new one.

We should learn from the plantation owners’ mistakes. We need to protect our years of investment by embracing the Information Revolution and its new social institu­tions. We need to abandon the old institutions while cre­ating the new ones in parallel. This is the only way in which we can protect our years of investment.

For more detail on the decline of Industrial Age society refer to the NeuroNet web page under The Collapse has Begun. 

Lessons for the Plantation Owners

Since breakpoints are rapid and violent we need to consciously begin creating the new systems with all deliberate speed. Continuous improvement of present systems, alone, will actually create more problems than it solves. Upon hearing the statement above a friend of mine replied, “bunk!” He said up until the Civil War, planta­tions were still cre­ating wealth. He was implying that we should follow our present course of slow continuous im­provement within Centralized Wealth Creation. “If you’re making good money, stay with it and ride the system down until it falls apart and let others worry about the consequences.” I commented that we’ll be the ones who will have to worry about the consequences.

If we look back to the plantation owners, there was an illusion of wealth being created in the South directly before the Civil War. Five years before the war, the plantation owners were setting the stage for the destruction of much of what they had created.

Though each year their individual plantations and bank accounts may have regis­tered a profit, they were in reality building huge deficits. These deficits were rapidly paid within a few years after the start of the Civil War with the draining of their bank accounts to fund the war. They paid with the blood and lives of their sons and them­selves, the brutal destruction of their plantations, cities, infra­struc­ture and civilization and the rapes of their wives and daughters.

Are we doing the same today? Are we, as companies and individuals, showing illu­sionary profits which we’ll have to repay in a few years? Are we setting the stage for millions of deaths and the destruction of much of what we’ve built? Are you setting the stage for the deaths of your love ones because you refuse to open your eyes, begin synthesizing information and taking action? Because of the enormous power bestowed on win/lose individuals in the Knowledge Era, we probably are repeating the sins of our ancestors.

The barbarians are at the gate as millions of empowered losing individuals want what you have and are gaining the power to violently take it. Either you begin win/win wealth-creation today and begin truly caring about others or you and your family stand to lose it all.

The plantation owners chose to improve the plantation—they chose to “care less” about those losers in pain and bondage. As winners they had years and decades invested in the old system. Their vision was a linear one—an aristo­cratic society that would last a thousand years. Because they saw opportunity as a threat to this in­vestment and vision, they chose to protect their investment by staying within the old system. There was only one way for the plantation owners to have protected their years of investment, that was by abandoning their civiliza­tion and creating and embracing the new one.

What if the plantation owners had a powerful vision of the coming Indus­trial Revo­lution and had passionately embraced it? What if they had accepted the Industrial Age social institutions five years before the Civil War—a strong central government, compa­nies, employment, factories, farms, mechanized farming, the nuclear family? What if they had voluntarily abandoned planta­tions, slavery and broad states’ rights for these new institutions?

They may have been able to profitable make the transition to factories and farms, their plan­tations could have supported them until the new investments became profitable. Perhaps they could have re­covered their slave investments by selling each slave his own free­dom. They could have hired slaves out, allowing them to keep a portion of the income thus purchasing their own freedom. They could have re­couped much of their investment and had a rela­tively smooth tran­si­tion into an Indus­trial Age. But all of this would have taken a powerful vision of what was occurring.

Instead the plantation owners took the thousand year old institution of serfdom and tried to stretch it into an Industrial Age institution. Plantations were feeble attempts at mass production within an Agricultural Age paradigm. It was the inappropriate mixing of two systems from two different social eras. We do the same thing today as we try Information Age systems within Industrial Age controlled economies—mass customization, self-directed teams, gainsharing, empowerment, virtual enterprises, information technology, continuous improvement and diversity enhancement programs. How silly future generations will think we were as were tried to empower people in controlled economies—the ultimate oxymoron. This effort is ineffective, and alone void of vision-based action, it is doomed to end in failure and possibly great disaster.

Today, we have the same opportunity as the plantation owners, but we are following in the plantation owners’ footsteps. We lack a powerful enough vi­sion of what is going on. We cling to the old system without understanding that a completely new system is required. We protect our investment and illusionary personal profits by staying with the old paradigm. We accept the illusion that our present social institutions are all that is, or ever will be possible: learning in schools, working in companies, governing by representation. As Toffler says we are literally going to have to reinvent civilization, abandoning the old civilization while creating a new one. We must begin win/win wealth-creation with all deliberate speed.

Copyright 2000 by Barry Carter


Next: SYNOCRACY: True Democracy Through Synergy

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth


 

Welcome

Thursday, July 25th, 2002

We continue with the eighth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age  6) Decentralized Wealth Creation and 7) The Infinite Wealth Potential of Liberated Humans

And another reason that I’m happy to live in this period is that we have been forced to a point where we are going to have to grapple with the problems that men have been trying to grapple with through history, but the demands didn’t force them to do it. Survival now demands that we grapple with them. Men, for years have been talking about war and peace. But now, no longer can they just talk about it. It is no longer a choice between violence and nonviolence in the world; it’s a choice between violence and nonexistence.

Martin Luther King, Jr.


The Mandate for Win-Win Wealth Creation

Barry Carter

In order to have a stable society there must be a balance between social and eco­nomic freedoms. If people are wealthy but are severely limited regarding what they can do and how and when they can do it, there will be turmoil. This turmoil comes as people use their wealth and power to purchase social freedoms. They will bribe, buy influence from those in power or pay for others to bend the laws.

On the other hand, if people are allowed to do whatever they want whenever they want, and have little money, or avenues to attain money, there will be turmoil. Many people will use their social freedoms to do whatever they want, whenever they desire in order to obtain money or wealth. They will steal, commit violent crimes, sell drugs and join gangs. There will be con-artists and corrup­tion. All of this occurs because people have broad social free­doms that prevent them from being penalized for their ac­tions.

In an or­dered society, social and economic freedoms MUST be balanced or there will be chaos.

Order and the Good Old Days

Some people yearn for the good, old days when things were simpler and peo­ple had respect for others. It was a time when there was order and people were respon­sible and held accountable for their actions. It was a more peaceful time when it was safe to walk down the street and leave our doors unlocked at night. Our leaders were respected and our justice system worked.

Unfortunately, because of analysis, we have selective memories. We remember the best fragments from the past. When we look at the whole picture, I do not believe the good old days can be classified as such. Taking the whole era into consideration, I don’t believe that there was the respect, re­sponsibility or accountability levels we remember.

Yes, there was less chaotic crime and violence in society, but there was a very high cost for this order. This cost came in the form of severely limited social freedoms for the masses of individuals. People did not have a lot of eco­nomic freedom but they also had limited social freedom. Therefore, there was a reason­able level of order.

As we look back over the Industrial Age, we see norms of oppression, with one group limiting another. Within the mainstream population individuals were stifled by conformity, through standardized behavior, thinking and speaking. The norms of the last hundred to two hundred years include exploitative child labor practices, legalized lynchings, castra­tions and mutilations, legalized racism, sexism and hatred, limited worker rights and mass poverty. Initially, voting rights belonged only to white, male landowners only. As workers tried to organize for improved working conditions, many were violently oppressed; some were even murdered. In the 1940’s and 1950’s people were jailed, blackballed, followed, harassed, searched, monitored and, in some cases, tried and sentenced to death because of their political beliefs. All of the above represent limited social and economic freedoms.

Perhaps the United States was not much better at upholding human rights during the peak of the Industrial Age, the 1940’s and 1950’s, than South Africa in the 1980’s. We look at a country like South Africa as it was in the 1980’s and see oppression of blacks. However, in order to oppress blacks, an entire society must have limited options and freedoms. There must be a very tight code of narrow and rigid behavior for all. You cannot have individual white peo­ple standing up and fighting the system—it rocks the boat and creates disorder for all. Most whites in South Africa in the 1970’s (or in the Southern United States during the 1940’s) who disagreed with the segregation policies did so quietly. After all, who wanted to be accused of being a “nigger lover” by their neighbors, friends, business associates and customers. Your business could be ruined or you could lose your job or become a social outcast. Whether in South Africa, the Soviet Union or China during the 1980’s, or the United States in the 1930’s, 1940’s or 1950’s, people did not step out of line because there simply was little social freedom for the vast majority of people. <S><?XML:NAMESPACE PREFIX = O /><O:P></O:P></S>

Expanded Social Freedoms

In the past several decades, information technology and knowl­edge power has pro­duced significant increases in social freedoms to the masses. To date, however, the in­creases in economic freedoms for people have not kept pace, creating instability throughout society. This imbalance lies at the heart of our crime, violence, terrorism and gang problems. The only answer is significantly expanded economic freedoms for all.

Since the 1950’s, social freedoms in the United States have exploded. As a simple example of the growth in social freedoms, in the 1930’s or 1940’s, if a black male in the Southern United States got slightly out of line, he could easily be castrated, lynched or severely beaten by any white person who decided to do so. That was truly an era of “zero toler­ance.” Today, however, many black males commit heinous crimes with relatively little or no ramifications. There is a good chance of not getting caught, of getting off on a technicality, or getting off because of the lack of proof beyond a reasonable doubt, or a plea of insanity or other loopholes. There is also a good chance of getting lost in the red tape. In Seattle, for example, in the early 1990’s 66% of crimes committed with a gun never made it to court because of delays for years, with people eventually skipping bail.

Even if a guilty black male is convicted today, prisons are more humane with edu­cational opportunities, libraries, televisions, fitness centers. In addition, full sentences are rarely served due to overcrowding as well as lenient parole laws. This example rep­resents enormous gains in social freedoms for black males, and is a measure of the expanded social freedoms for all citizens. Though some people may disagree with some of the above because of persecution of black males today by police and the criminal justice system, this is relatively minor when compared to a past history of slavery, lynchings, segregation and violent oppression as the social norm.

Today people openly believe in whatever politics desired, dress in any way desired: use drugs; get pregnant out of wedlock; practice devil wor­ship; produce and listen to any kind of music (even that advocating violence against police and the government.) That is all a reflection of an enormous increase in social freedom.

Information Technology and Increased Social Freedoms

Information technology and the knowledge power of an Information Age are the primary drivers behind the expanded social freedoms of the past decades. They cre­ated the “do-your-own-thing” movement. It is no coincidence that the 1960’s were a wild decade of hippies, sex and drugs. Young people were empowered through information technology and rebelled against rigid limits on their so­cial freedoms. People wanted to do what they wanted, when and how they wanted to do it. They rebelled against standardized thinking and conformity. People rebelled against the government and its war with Vietnam, against racism and sexism. How did in­formation technology trigger this chaotic, non-conformity?

Information technology produced the first ”living room war” in history. Disturbing pictures of death counts, body bags, protests, opposing views, corruption and the general horrors of war were broadcast into every­one’s living room each night. Prior to television, the realities and horrors of war were simply were not real to people (similar to the 35,000 or so people who die of starvation each day globally. Since we do not see these people, it simply is not real). In addition, prior to the Information Age, governments could more easily put positive spins on reality by presenting only fragments of the whole picture. 

Although protest against the Vietnam War started slow, more and more people joined the bandwagon. The result was enough internal political pressure for the United States to opt out. Today the majority of people agree that we never should have been there. Information and knowledge empow­ered people to stop blindly following authoritarian leaders, who in the past had controlled limited information—it empowered people to think for them­selves. It empowered people, to synergize, by letting them know that there were others out there with similar thoughts to their own.

As the documentary, The History of Rock and Roll showed, Rock and Roll marked the beginning of the worldview of one humanity; a global worldview. It was the beginning of the coming together of all cultures of the world, which synthesized diverse cultures’ music into harmonious tunes that touched the masses of people. Listening to many of the artists in the documentary, their intent was to do exactly that. The explosion of Rock and Roll was possible only because of information technology through radio, television, phonographs, CD’s, amplifying systems, electric instruments, computers and more. It allowed humanity to begin to interconnect as one.

Most people would consider the Civil Rights movement to have had nothing to do with the Information Age, information technology and knowledge power. Nothing could be further from the truth. The Civil Rights movement was successful only because of new information technology and knowledge power. Without television and information technology, there would likely be the same degree of segregation and injustice now as there was seventy-five years ago for Blacks in the South. The primary tool in the shift in people’s attitudes was the television set and television camera, bringing disturbing pictures of a new reality into every household in the nation with police dogs and water cannons abusing non-violent people. As long as people were not directly aware of what was occurring in the South and local officials controlled the information put out to the world, things would most likely have remained the same indefinitely.

Information was used to shift people’s perception of reality. Perhaps Martin Luther King understood knowledge power earlier than most. Perhaps he understood that information, as a form of power, was far stronger than the powers of violence or wealth. As Toffler shows, violence and wealth had been the two primary forms of power in civilization un­til the Information Age. The Information Age has changed that, making information and knowledge the primary power in civilization.

King demonstrated this as he used information power with a kind of martial arts strategy, allowing his opponent’s violence and wealth power to defeat themselves. He used the higher quality power of awareness and knowledge, through the television and information technology, to bring about shifts in consciousness of the masses. Indeed, we live in an era of new and strange power—power, which operates by vastly different non-linear rules than the wealth, and violence power to which we have become accustomed.

We see the same liberating trend for individuals and restraining force on central authorities with the Rodney King incident and many other police brutality cases, caught by personal video cameras. Corrupt policemen are now hindered by this kind of scrutiny, with video cameras being in the hands of the masses everywhere. Legitimate police activity is also severely handicapped because of the red tape created by expanding social freedoms, with many complaining that the judicial system favors the accused far more than the victims of crime.

In politics our politicians and leaders are no more corrupt than they have ever been. In fact, they are quite likely less corrupt than at any time in history. However, the horizontal connecting of individual minds enabled by information technology has increased our awareness and thus limits the power of those in authority. Information technology allows us to wake up to a reality that has existed for decades and centuries. We saw this connection of minds defeat Marcos in the Philippines; we saw it in Poland and the collapse of the Soviet Union; we saw it in South Africa with the defeat of Apartheid.

Social and Economic Freedom Imbalance Equals Explosion

The problem with the transition to a knowledge era is that we have an imbalance of freedoms. As the Information Age delivers more freedom to the individual, it has brought a dramatically higher degree of social freedom than economic freedom. Decades ago people had neither the money nor tolerance from society to do a wide variety of things. Today, there is the tolerance due to enforcement of our democratic Constitution and Bill of Rights in recent decades. However, not there is not the money to satisfy the needs of some people. We, therefore, have chaos.

In addition, after centuries of the masses of people being controlled through serfdom, slavery, racism, sexism and employment and fed a diet of pain, fear, torture and oppression, a lot of negative, distorted distress can be expected to emerge when social freedom is delivered. That is especially true if economic freedom does not arrive at the same time as the new social freedoms.

The social and economic freedom imbalance is nothing new. The late 1980’s Tienemen Square uprising in China and subsequent massacre came from a social and economic freedom imbalance. People in China had begun to enjoy a level of affluence leading them to ex­pect greater latitude of social freedom. The results were the Tienemen Square slaughter. The government has temporarily denied this social freedom through violence power.

As the Soviet Union and Soviet Bloc collapsed, it left in its oppressive wake tremendous social freedom but little economic freedom. This mismatch has produced drug and alcohol abuse, crime, violence, racism, war, ethnic cleansing, death camps, rape, child murder, disintegrating countries and disorder.

There is a direct correlation between the two freedoms—when out of balance, all hell breaks loose. Our current problems with crime and violence will not be solved until there is a balance between social and economic freedoms. Today this imbalance threatens to de­stroy all of civilization if it is not restored.

The Empowerment of Losers

A knowledge era automatically decentralizes power to the in­dividual. Today, as a knowledge era delivers more social freedom to individuals daily, it is empowering indi­viduals who have been on the losing side of the win/lose game for decades and centuries. Many people oppressed for the past few hundred years now have a “loser” paradigm. With expanded social freedoms many “losers” now have the social freedom to cause you, your family and much of society to lose with them and this empowerment grows daily with expanding information technology.

Since the losers have nothing to lose and now have the power to force others to lose with them, many are choosing to exercise their new power. Win/lose is evolving to lose/lose directly before our eyes. This lose/lose reality surfaces today as terrorism, gangs, violence, riots, robbery, rape, crime, radical militias and hate groups. Lose/lose is all simply a reflection of our win/lose paradigm, as individuals are empowered in a knowledge society with social freedoms prior to economic freedoms.

In the 1990’s lose/lose violence reached epidemic proportions. Tens of thousands of people were killed on our streets in violence such as: drive-by shootings and gang warfare, tourist killings in Florida, a mass suicide in Texas.  There were the bombings of the World Trade Center, the Oklahoma City Federal Building and the Atlanta Olympics. There were airplane bombings, mass public shootings, free­way shootings in California, routine Post Office killings, the hijacking of passenger planes, hundreds of houses burned in arson forest fires in California, car-jackings, and the hijacking of a cruise lin­er.

Already we have as many people dying daily, at 55 per day due to violence, as in the Vietnam war. We all know of the famous people, like Bill Cosby and Michael Jordan, who have lost family members because of the transition and out of control win/lose. However, there are also tens of thousands of other nameless and faceless people who face the same pain each year.

Lose/Lose and Empowered Individuals Equals the Big Bang

Though our present level of lose/lose violence is at epidemic pro­portions, nuclear weapons in the hands of people with lose/lose paradigms puts a whole new light on the issue. In a knowledge era, it becomes harder and harder to protect, control or contain knowledge. Today, any individual can learn to make a nuclear bomb from books in public libraries. This was demonstrated and proven in the 1970’s. Already bomb making instructions are readily available on the Internet with nuclear grade plutonium for sale on the Russian black market. Even the most sensitive knowledge will even­tually leak in a knowledge era. However, more importantly, in a knowledge era a wide variety of people will be able to create the desired knowledge for highly destructive weapons.

No explanation is required for what could happen as a few people with lose/lose paradigms explode a few nuclear weapons in a few of the United States’ or world’s largest cities. Today there is no shortage of internal or external lose/lose terror­ists from which this type of activity could come and this list will only grow longer as win/lose continues to shift to lose/lose.

Nuclear weapons, however, aren’t the only means by which small groups of individuals can bring an Information Age society to a halt. Chemical or biological weapons such as Anthrax or others could easily be delivered to New York, Los Angeles or Chicago by crop duster airplanes at night. Hundreds of thousands could be killed by one individual. A small team of individuals hitting several cities at once could kill millions and throw our society and economy into chaos. In 1994, 60 Minutes presented a segment on an invisible and odorless poisonous gas that could be delivered to a city like Boston by driving a boat through the harbor. A pound delivered today would cause hundreds of thousands of people to begin dropping dead tomorrow.

Today, our Information Age society and economy rest on fragile technological pillars. As the information superhighway becomes the infrastructure for civilization the pillars of society become relatively easy to sabotage. As we advance into an Information Age protecting these pillars from lose/lose individuals becomes harder and harder and eventually will be impossible.

Alvin Toffler in War and Anti-War talks to a senior intelli­gence official who says, “Give me $1 million and 20 people and I’ll shut America down.” In an Information Age, power is greatly decentralized to the individual. Fifty years ago a mil­lion dollars and 20 people didn’t stand a chance of shutting America down. In the next five years the shut-down-America figure will be far lower, perhaps $500,000 dollars and ten people. In ten years it may be $100,000 and five people. In fifteen years it maybe one person and $10,000.

This, however, is only the tip of the iceberg. The longer term holds almost certain devastation unless we shift to win/win. A knowledge era shall provide individuals with enormous power. We are sure to develop the knowledge for far more powerful weapons and destructive ability. Indi­viduals and small groups, in a knowledge era, will eventually be able to produce these new, more powerful weapons. We will not be able to regulate these individuals into not having or using these weapons.

Within the coming decades we are faced with every individual on the planet having unlimited power to destroy or create; each with the power to blow up the planet and end civilization. We are moving to a state of Mass Autocracy where each individual has unlimited power.

Our destructive power is simply far too great to con­tinue our win/lose paradigm. This is because it reaches a point where one loser can set us all back a thousand years. The systemic effects of our win/lose worldview are catching up with us not only through intentional violence but also through other means such as the destruction and neglect of the environment. When we measure profit based upon the fragmented piece of product cost for which one today can be held accountable, while ignoring the part that others in the future pay for, we are practicing win/lose-based wealth-creation. I win by making a profit today producing electricity from nuclear power, but people in the future may lose by having to pay to clean up my waste.

When we do not pay the full cost for what we get when we practicing win/lose wealth-creation. When we try to get people to work for as little as possible while getting them to produce as much as possible we practice win/lose wealth-creation.  We have a name for people who do not believe in paying the full cost for what they receive—welfare recipients. Though some refer to this as good business, good bargaining or good negotiating to pay an engineer $36,000 simply because he is naÔve, when you believe he is adding at least $50,000 in value, this is welfare and we are welfare recipients.

Although data is presented and denied regarding the state of the environment and the effects of our actions, the bottom line is that there are limits to the amount of destruction which we can cause to the environment before we reach a state of no return. There are also other areas with equally devastating potential if approached from a win/lose worldview, such as genetics and human cloning. These technologies cannot and will not be contained or controlled.

Today it is truly “win/win or no deal” (Covey, 1989). The evidence shows that a knowledge soci­ety must evolve out of its win/lose her­itage or perish. Win/lose simply will not cut it any longer. It is not compat­ible with the power brought to the individual in an era of Mass Autocracy. We are in a knowledge era that has only just begun to provide social freedoms. As information technology grows, it will continue to expand social freedoms faster and faster. The longer we delay in getting economic free­dom up to par, the more we shall all lose.

In the next several decades we shall likely see information technology expand social freedoms and individual power beyond the human regulation breakpoint—the point where individual humans cannot be controlled through laws and micro rules. Each individual at some point in the future will have the ability to literally destroy all of civilization. At the “human regulation breakpoint” and beyond humanity must have systems in place to operate a civilization from win/win-based norms and not win/lose-based regulation. “When mores are strong enough, laws are not needed and when mores are not strong enough laws are irrelevant.”

The alternative to a win/win civilization is bleak, including a likely “road warrior era;” a second “dark ages,” as human knowledge and technology, for the second time in history, outpaces human maturity. We cannot grow in technology and knowledge without relative equal growth in wisdom and maturity. Nature will keep these two in balance even if it means a step back a thousand years, to get our technology to match our maturity.

The balance between social and economic freedom is, therefore, not only critically important for peace and prosperity. It is the critical link to our maturity and the survival of our planet.

We are not going back to the limited social freedoms of a pre-Information Age, unless information technology regresses fifty years or civilization crashes. The present cautious wait-and-see, go-slow, reactive, analytical and continuous improvement approach, therefore, must be discarded. We must move rapidly toward as much economic freedom as possible for the in­dividual, in order to match the social freedoms being automatically granted through knowledge power. The only practical system with the power to expand economic freedom fast enough is Mass Privatization and Decentralized Wealth Creation in which individuals are free to control their own destiny and are motivated to heal themselves.

Copyright 2000 by Barry Carter


Next: Breakpoint: Why You Must Act Now

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth


 

Welcome

Wednesday, July 24th, 2002

We continue with the seventh in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism  5) Mass Privatization: Organizing in the Information Age and 6) Decentralized Wealth Creation

Tom Peters had the following to say about a camera he pur­chased in 1992, which had more brainpower than the Apple II computer he bought in 1982.

“I spent seven hundred bucks on that camera. What did I buy? I bought about three dollars worth of plastic. I bought about $15 worth of optical glass. I bought about $682 worth of software, com­puter power and imagination. We are in an age where brawn is not the driving force, where human imagi­nation is the driving force.”


The Infinite Wealth Potential of Liberated Humans

Barry Carter

Toffler, in Powershift, identifies violence, wealth and knowl­edge as the three primary forms of power in society. He shows violence to be the lowest quality of power, and dollar wealth to be second and knowledge to be the highest quality power, due to its leverage potential, versatility and limitlessness.

In the transition from the Agricultural Age to the Industrial Age, people went from working and creating wealth on the “land,” powered primarily by force or violence, to working on “things,” pow­ered by dollar wealth as shown on The Age Wave Chart. Today, wealth-creation is shifting from the making of “things” powered by dollar wealth, to the creation of “knowledge” pow­ered by information. Information technology is turning knowledge into the premiere power in society.

In PowerShift while explaining the power of “knowledge,” Toffler demonstrates that one idea can be used simultaneously by fifty or five hun­dred or five hundred million people. One person can only use one gun (representing violence power) or one dollar (representing dollar power) at a time. In the past, one there­fore had strong motivation to tightly hold on to whatever power (dollars and guns) one had, and not to share them with anyone.

Today and even more so tomorrow, sharing power (information and knowledge) directly with others, under the right aligned con­ditions, can create more wealth for one­self. In fact, sharing knowledge under the right conditions, such as Mass Privatization, is quickly becoming the best and fastest way for an individual to win. Mass Privatiza­tion provides tremendous leverage to the individual who helps others. This change gives humanity the opportunity to shift from tens of thousands of years of win/lose norms to a win/win norm.

Era of Infinite Wealth

Since one idea can be shared by billions of people and they all win and ideas and knowledge are infinite, wealth has become infinite. Paul Pilzer, in Unlimited Wealth, shows how technology, which rests entirely on knowledge power, is the driver of a new alchemic world with new rules of wealth-creation. The dream of past alchemists was to turn lead into gold. Today, using knowledge and ideas, we, for example, turn sand into something more valuable per pound than gold, computer semiconductor chips.

Infinite wealth goes against common sense and our ex­perience. Infinite wealth is too good to be true. It is like creating something from nothing. This nothing, however, is actually something. It is ideas in people’s heads that comes from knowledge, which is created from information inside of billions of neurons and neural connections. Tangible wealth is today created from information.

Deepak Chopra, in Creating Affluence, approaches infinite wealth from a scientific and spiritual perspective showing that ideas, beliefs and knowledge are the creators of physical and non-physical wealth as well as the universe itself. Using quantum physics, he shows that atoms, which make up everything in the universe, are made of infor­mation, knowl­edge and intelligence and not solid material. Though the nature of quantum physics will be explained in more detail later, the bottom line is:

Information, knowledge and intelligence today are the pri­mary forces driving wealth-creation and the human brain is the primary creator of knowledge. For the first time in history the masses of individuals own the means of production—their own minds and brains.

Wealth-creation, therefore, can no longer be controlled, it must be liberated and based upon individual freedom.

The Vision of a Real Free Market

Our thinking regarding free markets is incoherent and not fully developed. Like many other paradigms it too is limited. What we’ve seen for the past 200 years has not been a free market. Today most people equate a free market with companies, managers, stock markets, corporations and win/lose competition for limited resources and customers. We think of hard and tough “businessmen” honed on the gridiron for fierce competition, who are willing to do anything to win. Real free markets have little to do with any of this.

Real free markets are merely about win/win interactions. They are soft and based upon collaboration, love, interconnection and the free flow of wealth and knowledge between people. People collaborate in order to create more wealth from an infinite source instead of competing for scarce wealth. Free markets are about human liberation and the free exchange of ideas, knowledge and work. They are about exploration, discovery, learning, creativity and spirituality. Most of all they are about caring for others, helping each other and love.

Yes, this is a radical departure from our traditional definition; the words “love” and “free market” in the same sentence sounds odd. The broader and more accurate definition of a free market is a community where humans are free to create, exchange, interact and interconnect in order to meet each other’s needs, thereby creating wealth for themselves, others and society.

Infinite Power of Free Humans

Wealth is not something that is static, finite or absolute. As will be discussed in more detail later, wealth is created through the meeting of human needs. Since wealth is created when people trade work with one another and meet human needs, wealth and wealth-creation is infinite. Why?

Because the more people, the more needs there are. With more needs comes more work and the more work the more income and wealth there is. Traditionally we have thought that the more people there are the less wealth there is for each. This is not true. What we find is that the more people the more wealth there is for everyone.

If we think about this deeply, we will see that there is absolutely no reason why there isn’t plenty of work and wealth for everyone. By answering the following four questions we must conclude that wealth is abundant:

1)     Is there a lack of desire to work? No, the vast majority of people want to work and receive handsome income from that work.

2)     Do people want the goods and services that the income from their work pur­chases? Yes, virtually everybody wants the goods and services that income produces.

3)     Is there a void of human needs to be met? No, there are hundreds of billions, trillions and perhaps infinite human needs for people to work, meet and receive income from.

4)     Is there a shortage of people to perform this work? No, there are plenty of people to produce, as well as consume the products and services of this work.

If all of the above is true, then what is standing in the way of infinite wealth? Why is there poverty, unemployment and people starving in the world? Let’s take an even closer look at wealth-creation to find out what is restraining it.

1.      As people perform work, their ideas, knowledge and work, when traded meet human needs and thus create wealth.

2.      With the compensation they receive for their work, they purchase products and services to meet their own needs.

3.      This spending creates demand for more work and ideas, which in turn generates compensation for some other person.

4.      This additional compensation produces more spending, which allows for the creation of more work, ideas and wealth.

The cycle of work, which produces income then causes spending, thereby creating more work, can be self-perpetual and infinite, in a knowledge-based free-market economy. The catch is that the flow and trade of work, ideas and knowledge must be free and unhindered. The freer and more fluid the flow and trade of work, ideas and knowledge the wealthier we all become.

First of all there must be trade. The more trade the more wealth as seen in industrialized nations. However, what in these economies causes wealth to be finite? Controlled economies, Mass Representative Democracy and Centralized Wealth Creation, the systems that have produced our current levels of wealth, are also the systems in society that prevent wealth from being infinite. Controlled economies are today constipating the wealth-creation process because of their inherent focus on controlling the wealth process, instead of facilitating wealth’s unrestricted flow. Control produces scarcity, whereas, free flow produces abundance.

The head financial officer in a controlled economy is called a controller for a good reason. Within controlled economies performance is achieved through consistency and process control. Consistency is achieved with forced, rigid stan­dardization based upon average performance. Controlled economies are machines and each part must be identical within a tolerance, just like parts of a machine. We should all walk alike, think alike, dress alike and park in specific parking spaces, “a place for everything and everything in its place.” Averages are everything to the mass-production-based controlled economy.

Companies, for example, have almost as hard a time with many of their top performers as their bottom performers. This is because the top performers produce too much variability, making mass production processes hard for bureaucrats to control. Controlled economies prefer the average performer because of consistency. Manufacturers use Statistical Process Control (SPC) to produce quality products. The SPC definition of being in control is have a consistent amount of process variability, with the thrust being to continually reduce process variability.

The obsession with averages and reducing variability forces the controlled economy to thrive upon medi­ocrity. Like Antonio Salieri, Mozart’s rival in the movie Amadeus, the controlled economy is the “champion of medi­ocrity.” Today, however, to be in control is to be out of control.

What is needed to unleash the infinite power of wealth-creation in an In­formation Age is a system such as Mass Privatization which allows people to freely synergize and trade their work output, information and knowl­edge. This system must allow trade to occur easily and quickly, without hindrance. The system should facilitate and encourage the free flow of trade. The last thing our wealth-creation institutions should be doing is attempting to control the wealth-creation process.

Decentralized Wealth Creation and Mass Privatization operate based upon Chaos Theory, in which the norm is the more variation there is, the better. The more weird the ideas the better, because in a mass customization era a very wide variety of ideas is mandatory to meet customer needs. As documented in many books, success only comes through many tries and failures. Mass Privatization achieves order from individuals trying lots of wild ideas, having mostly failures and having the freedom and incentive for the thousands of individuals to calibrate on each other’s best ideas. This calibration occurs of the in­dividual’s own free choice.

Private Capital and the Free Trade of Work

Recently I spent two years living in rural Southside Virginia near where I was born and raised. We lived on a large, beautiful lake—the largest and most se­cluded lake on the entire east cost. The surrounding community, however, was quite poor, or at least this was their perception. Southside Virginia had been a thriving hub of commerce in the Agricultural Age, but with the decline of this era, so too came the decline of this rural area. As work in agriculture dropped and manufacturing increased, in­dustry was not attracted to this rural community.

Though there are tremendously talented people in Southside Virginia, they don’t perceive it this way. Their egos have been bludgeoned by continuous decline since the end of the Agricultural Age. When my wife, Linda, told an acquaintance that we had recently relocated there from Southern California, her response was, “Oh I’m sorry, things must really be going bad for you.” She thought that surely nobody in their right mind would move here from Southern California, unless they had no other choice.

The people in the area think of themselves as dumb and poor. They also don’t per­ceive their time as very valuable. After traveling the world and working with the best and brightest, I can honestly say that I knew people from Southside Virginia who were barely surviving, but were as talented as any en­gineer, artist or manager anywhere I’d been. They perceive themselves as dumb and poor because they have less dollar capital than people do in more industrialized ar­eas. They have been trapped by the Industrial Age paradigm of dollar capital. Today they only need a shift in perception to see their abundance of tangible wealth.

Though these people have little dollar capital there is no shortage of capital at all. Capital is defined as a stock of accumulated goods. These people have an overwhelming stock of accumulated knowledge, talent, intelligence, creativity, and work desire. Since wealth-creation is merely comprised of people trading their work with one another and with there being plenty of capital, all that is missing is a means to exchange their work with one another. The Industrial Age, with its controlled economies and public work, made dollar capital the sole means of ex­changing work, with employment being the primary method. In Southside Virginia, with relative little industry and with dollar capital in such short supply, the perception is scarcity.

Toffler, in PowerShift, shows that we are moving to a super symbolic economy with super symbolic capital. As shown in The Age Wave Chart, in the Agricultural Age, a dollar was represented by a piece of metal or something worth one dollar—a dollar’s worth of bartered potatoes, chickens or smoked bacon. The dollar piece, for example, was made of one dollar’s worth of gold, silver or some other precious metal.

As we shifted to the Industrial Age, a dollar came to be represented by a piece of paper. The paper dollar is perhaps worth less than a penny in real value. It symbolically represents a dollar’s worth of work or value. It is “symbolic” money.

In the Information Age today, the bulk of dollars which change hands are never touched. They are transferred from one person’s bank account to another, as electronic sym­bols flow from one computer to another. These electronic symbols represent paper dol­lars, which in turn represent a dollar’s worth of value—hence super symbolic money.

Money is merely a means to measure how much value has been added or wealth created by one’s work. It’s a way to measure how much work each person has per­formed. Money allows one person’s work to easily be exchanged for another person’s work. An electronic barter bank would allow jobless and moneyless individuals who desire trading their work, to do so, and thus increase their individual and collective wealth.

With the advance of information technology virtually anyone can today set up an electronic computer barter bank using a Personal Computer.  There is, therefore, no reason why people in Southside Virginia should be restrained in the trading of their work simply because there is a shortage of controlled-economy-based jobs and U.S. dollar capital. There is, after all, an abundance of human-knowl­edge capital, plenty of human needs to meet, abundant information technology and plenty of people ready to work.

Limited monopolistic dollar capital has twisted and blocked our perception of reality—tricking us into thinking that wealth is limited. It has slowed the trade of work and con­stipated the wealth-creation process—the meeting of human needs. Today, we are in an era of su­per symbolic money where a mere shortage of dollar capital is not a valid reason to keep people from working, trading their work, creating wealth, meeting human needs and growing wealthy. We merely need a shift in perception.

When we combine an understanding of what money is with the following three facts, it becomes self-evident that parallel sources of capital—private capital—will ex­plode to break lose our present constriction in wealth-creation:

1.      Super sym­bolic monies are merely electronic symbols in computers that track people’s accumulated work or wealth.

2.      Today the computers and people required to set up and run super symbolic electronic barter banks are abundant.

3.      There is no shortage of human capital.

4.      We are moving to a Decentralized Wealth Creation and Mass Privatization paradigm where work and people are a lot more flexible and the free trade of work is mandatory.

Toffler, in PowerShift, speaks of parallel forms of capital coming into being in the In­formation Age. One thing holding back Southside Virginia and many other communities na­tionally and globally, is their perception regarding money, cap­ital and themselves. Already today there are barter banks springing up to fill the dollar capital void. In Raleigh, NC, a local barter bank has been started with hundreds of members. An article in Mother Earth News, October/November 1993, shows that private citizens in Ithaca, NY and Myrtle Beach, SC have established parallel sources of capital. Roger Langrick in the book Barter Systems be­gins to define the shift to private capital in society.

Regarding the residents in Southern Virginia and elsewhere, a shift in perception towards the private electronic exchange of work through networked private capital will allow for a more free-flowing exchange of work. A shift in their per­ception of them­selves as worthy human beings, as will be discussed later, is also re­quired before they will acquire the wealth lying within them.

As shown in The Age Wave Chart, we are transitioning from a system of trade based upon one monopolistic currency, which today restricts the free trade of work, to super symbolic multiple currencies, networked together to form a global system of fluid and freely trading work. As individual local electronic barter banks begin to connect with one another globally through the information superhighway, they will produce a network of seamless, global multiple currencies. These multiple currencies, which are an integral part of Mass Privatization and Decentralized Wealth Creation, will further liberate the free and fluid flow and trade of work, ideas and wealth.

Private Capital Barter Banks Empowered by Information Tech­nology

Envision a networked barter bank of 5000 people. The idea is to set up a barter bank for a given re­gion. People, though they have little dollar capital, can trade what they do have, the ability to do things, fix things, make things or provide some service. The barter bank is, in essence, a trading house. Each mem­ber has an account. Example: Jane, a member has 200 P-dollars (private dollars) in her account. Jane needs her car repaired but does not have any traditional dollar money to pay. Bob, who is also a member in the network, agrees to repair the car for 80 P-dollars. When the job is complete, Bob’s ac­count is cred­ited 80 P-dollars from Jane’s account. Bob, who’s retired, has no traditional dollars to spend since his social security check for the month is all budgeted. He does, however, have 80 P-dollars. He searches the network database for items or ser­vices for sale.

He finds Anne who is unemployed but talented at refinishing furniture. His granddaughter’s third birthday is coming soon. He has Anne re­finish an old child’s chair that was his when he was a child. Sixty-five P-dollars are transferred from Bob’s account to Anne’s account. Anne, being unemployed, is on a tight budget and her house very badly needs some repairs. She contracts with James, a young man right out of school who hasn’t yet found a job. James, eager for income, does the repairs and is credited 200 P-dollars.

John, a local clothing retailer who is being hard hit by a reces­sion, decides to begin listing some of his merchandise on the network. He figures it cannot hurt. James trades 200 P-dollars for a new suit for job interviews. John begins to move merchandise at four times his normal rate through the network, even though he is selling this material at a relatively higher price than what is paid in his store with dollar capital. John has a problem. He has lots of P-dollars but no dollars to restock his store. His suppliers are hundreds of miles away and haven’t even heard of a barter bank and have no interest in his P-dollars.

John decides to put some of his P-dollars up for sale on the network, in exchange for dollar capital. For the people in the network who have access to traditional dollar capital this is a good bargain. They buy John’s points for 75% of their value with traditional dollars. The people who purchased John’s P-dollars have plenty of dollar capital, and see this as an op­portunity to get products and services at a discounted price below the dollar capital rate.

John then takes the cash and restocks his store. Everybody wins. Even though John sold his P-dollars at a discount, the vol­ume and lack of advertising and other overhead to sell the merchandise has made it quite a profitable deal.

John then takes some of the additional P-dollars and has some remodeling done on his house by James and others in the network with car­pentry and masonry skills. The bottom line is that the gross wealth of the community and standard of living of many people has been increased, merely by injecting a parallel form of capital into the system and enabling work to be traded more freely. Parallel sources of capital, in essence, jump starts stalled parts of an economy. They empower people to bootstrap their way out of a hole by trading work that would not have been traded, and meeting needs that would not have been met without the additional source of capital. It provides a system of self-regulation, eliminating restrictions in the wealth-creation process.

In the example above people were able to trade their work, receive income and meet some additional needs, only because there was a parallel source of capital. I personally know of people, living in Mecklenburg County, Virginia, who fit the description above. They are talented people who sit idle each day receiving a government check, not working, not adding value for others, not receiving compensation and with many needs being left unmet, partly because of gridlock created by having only one source of capital.

I know a man who can repair cars who is sitting idle as I write this paragraph, while a lady two miles away, has needed her car repaired for months. This man at the same time has needed some furniture refinished while the same lady, who has furniture refinishing skills has nothing to do. Neither has money to pay the other. They fail to see the wealth they already own and do not trade their work because of their dollar capital paradigm. They both live below the poverty line while receiving a government check and both sit idle each day with little to do, little money and many needs going unmet. We have tens of millions and hundreds of million, in fact billions of people globally, hindered in the trading of their work for the exact same reason. What a waste!

The new parallel forms of private capital may not replace dollar capital. Parallel forms of capital complement each other in the forming of a truer free market. They keep things in bal­ance, break bottlenecks and keep things flowing. These parallel forms of capital break the logjams which dollar capital creates through a monopoly. They allow work to be traded more freely.

Parallel forms of capital have begun to and will continue to spring up around the country and world. This is simply because there is too much pressure on dollar capital, with people being dollar capital starved in a capital rich world.

As the growth of information technology reaches a critical mass, Networked Private Capital will become a norm. It is also inevitable that information technology will turn local private capital into regional, national and even global private capital. It will oblit­erate national boundaries. It will make billionaires of the individuals who pioneer electronic barter banks, thus enabling billions of other people to win. The freer we make the flow of information and the trade of work, the wealthier we all become.

Parallel forms of private capital are an inherent part of Mass Privatization. They em­powers the individual to trade work, information and knowledge quickly, easily and without hindrance. It supports the paradigm of infinite wealth.

Information Technology, Free Trade and Infinite Wealth

In The Virtual Corporation,  William Davidow and Michael Malone show a correla­tion between major historical growth periods and the orders of magnitude improvement in technology needed to create them. They state:

Historically, whenever important technological innova­tions have resulted in improvements equal to at least one order of magnitude, revolutionary changes have oc­curred in the way people live their lives and conduct their business.

They show that from 1770 to 1851 productivity of production workers jumped by roughly 300 percent or two orders of magnitude, fueling the start of the Industrial Revolution. They go on to show the orders-of-magnitude-change that we’ve had in information processing in the past decades.

Although, strictly speaking, one cannot add all advances together because there would be double counting, it can be said that forty years of comput­ing has experienced a combined improvement in five dimensions—mass stor­age, reliability, cost, power consumption and processing speed—of thirty orders of magnitude. Such a level of change is almost beyond hu­man comprehension. It is equal to the jump from the diameter of a single atom to that of the Milky Way galaxy. As we noted above, it took a change of two orders of magnitude to spark the Industrial Revolution and one of only four orders of magnitude to end World War II and redirect human his­tory. (with the creation of the atomic bomb)

I personally know of the change in information technology all too well. As an example of some of this improvement, in 1986, when I founded CheckMate, I purchased a 120 megabyte hard drive for my Personal Computer. It cost $2,800. People told me that I’d never need that much space. Most people had 20 to 30 Megabyte drives. In 1991 when I replaced it, I paid $495. In 1993, the last time I priced a 120 megabyte drive, it was less than $200 and I was told that I’d be lucky to find one. By 1994, 120 megabyte drives were no longer available because they were too small. By 1998 I could get a 13,600 megabyte drive for $299. The price went from $23.30 per megabyte to two cents per megabyte. That’s an improvement by a factor of 1059 times in twelve years. In the same time the speed more than doubled and the power consumption and sheer weight dropped to a mere fraction of the original “boat anchor” I pur­chased in 1986.

Davidow and Malone go on to show that there is consensus building with many noted economist regarding the value which computers have added in to society from our system of Centralized Wealth Creation. The data shows that there has been little to no productivity gain from our orders of mag­nitude in­crease in information processing technology. Harvard economist Gary Loveman says:

I’m here to tell you that after several years, my re­sults have been poor and the results of many of my colleagues who have tried similar things are also poor. Poor in the sense that we simply can’t find evidence that there has been any substantial produc­tivity increase—and in some cases any pro­ductivity increase—from the substantial growth in informa­tion technol­ogy.

Davidow and Malone go on to show that there is historical evidence which shows that there is a lag between huge advances in new technologies and the real results they deliver. With technology improvement of thirty orders of magnitude sitting idle, we must ask, what is holding back its impact on society? It is waiting for a system of wealth creation that at its core is based upon the free flow of work, knowledge and wealth—Mass Privatization. When we think about it the free flow of work, knowledge and wealth is exactly what information technology does best. The thing that is holding back information technology’s impact on society is the control of wealth creation that comes from controlled economies and Centralized Wealth Creation. We have a wealth creation system that is not aligned and does not match the new technology—it cannot fully utilize the power of the thirty orders of magnitude improvement. As long as infor­mation technology is used merely to pave Industrial Age cow paths, we shall realize little real benefit from it. Like the water wheel and the steam engine one cannot effectively mix technologies or institutions from different eras.

 Mass Privatization, which at its core embraces the free flow of work, knowledge and wealth, provides a system which fully utilizes the advances in information technology. As a critical mass of Mass Privatization and the Information Superhighway is developed we shall see an economic growth explosion unparalleled in history which shall shift us all into an era of mass affluence.  

Growth Limited Only by Our Imaginations

Mass Privatization empowers individuals to create their own work and to find their own niches. This is opposed to the indi­vidual finding a job that a centralized govern­ment or company bureaucracy has created. We should remember that a free mar­ket is simply an environment that provides maximum freedoms and options for individuals. A true free market is about human freedom, the human spirit, compassion and helping oth­ers. It is about humans collaborating to meet human needs and, therefore, creating wealth.

With Mass Privatization and Decentralized Wealth Creation people will be liberated throughout the world to add value where they see fit. They will be liber­ated to search out human needs and meet them. They will be liberated to discover human needs that customers didn’t even know ex­isted. They will be liberated to create human needs and meet them.

We are looking at a civilization with six billion in­dividuals working hard to figure out how to help each other and one where the people who do this best create more wealth for themselves. WOW!

With six billion liberated humans there will be more gross wealth and it will be distributed into more people’s hands. After my awakening to Mass Privatization I looked deeper into the consequences of this new paradigm, synthesizing more and more pieces. It became clear to me that the concept was a stepping stone to something even bigger than I could have ever imagined. This shift in perception was in fact jolting. It presents us with the opportu­nity for far more than a mere new type of wealth-creation enterprise to replace the com­pany. It presents us with the opportunity for an entirely new wealth-creation paradigm “a new civilization unlike anything before it” a civilization of win/win, abundance and infinite wealth.

This shift to win/win would unleash enormous positive powers. I then knew that the pain which humanity was presently expe­riencing was part of the greatest emancipation in the history of the world. It is, in fact, the emancipation of the human spirit.

It has been demonstrated with the Agricultural Age to Industrial Age shift that a simple change in wealth-creation power, from violence to dollar wealth, releases tremendously powerful advances in human growth. With the Industrial Age to Information Age shift, there is far more potential increase in standard of living, quality of life, productivity and ad­vancement, than there was when we shifted from the Agricultural Age to the Industrial Age. This is because of the enormous power delta between knowledge and wealth, ver­sus wealth and vi­olence. This delta includes the win/win nature of knowledge, its leverage potential, as well as the infinite nature of knowledge. The magnitude of ad­vances made in the Industrial Age will be dwarfed by the magnitude of advances to come as the infinitely powerful win/win knowledge fuel kicks in with Decentralized Wealth Creation.

There is nothing in our imaginations today which can even come close to imagining what is possible in ours, our children’s and grandchildren’s lifetimes. The shift from dollar wealth power to knowledge power as the fuel powering civilization and the Mass Privatization organization as the engine, are revolu­tionary changes. They lay the foundation to thrust us at the speed of light into a new dimension. It is a dimension that will result in the end of poverty, unemployment, racial strife, hatred and war worldwide within a relatively short period. They will produce tens of millions of millionaires and at the same time end government taxation as well as gov­ernment itself. It shall dra­matically increase everyone’s standard of living and quality of life. And all this is likely to happen within a single lifetime.

It will repay the trillions of dollars of government debt. It will pay off the billions of personal and business debt, repay the third world debt, and repay the debt all of the indus­trialized nations. It will end our quality deficits, educational deficits, and environmental deficits. It will enable the repayment of the national debt left from the Agricultural Age owed to Indians, slave descendants and oth­ers. This will not come from the mass wealth re-distribution and affirmative action programs mandatory to attempt balance in the In­dustrial Age. It will come through wealth-creation oppor­tunity and economic freedom for the individual. It will end our crime, violence, education and quality deficits, as well as most of our other win/lose deficits. It will provide a foundation and means to end our abundance of fear, hatred and self-hatred. It will do this by providing a strong motive for cooperative op­portunity. It will do all of this with no taxes, no welfare, no giveaways and no government.

What we are speaking of when we talk about a free market economy in an Informa­tion Age is a self-perpetuating super­charged engine that runs off of the highest quality power there is, knowledge and wisdom. I am speaking about human freedom, choice and options.

Copyright 2000 by Barry Carter


Next: The Mandate for Win-Win Wealth Creation

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth


 

Welcome

Tuesday, July 23rd, 2002

We continue with the sixth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work 4) The Emancipation of Capitalism and 5) Mass Privatization: Organizing in the Information Age

“Not since the days of Noah has there been the oppor­tunity to recre­ate society as there is today.”

—Thomas Payne 1775


Decentralized Wealth Creation

Barry Carter

When we synthesize Mass Privatization (changes occurring in work, business and wealth-creation) with historical change, today’s social stagnation and decay, the changes occurring in government, education and the family we see an entirely new wealth-creation system emerging—Decentralized Wealth Creation.

Whereas Mass Privatization is the organizing structure for individual organizations, Decentralized Wealth Creation is the entire wealth-creation system which results from a society made of a mosaic of overlapping and intertwined Mass Privatization organizations—a society with citizens operating as suppliers, customers and partners interdependent upon one another. The organizations or communities are interconnected through the incoming Information Superhighway. They are locally and globally interdependent—all working to help themselves by meeting others’ needs.  The Mass Privatization communities are without boundaries in the sense that one cannot determine where one ends and another begins, since most individuals and teams participate in more than one organization. 

The Age Wave Historical Perspective

Aside from the Third Wave concept there is no effective system of analysis which makes sense of the frustrations and confusion which characterizes politics and government virtually everywhere in the industrialized world. –Newt Gingrich

In charts below, I have expanded upon Alvin Toffler’s Age Wage concept, to show some of the differences between civilizations based upon Localized Wealth Creation, the wealth-creation system for the Agricultural Age, Centralized Wealth Creation of the Industrial Age and Decentralized Wealth Creation of the Information Age.

With the Localized Wealth Creation of the Agricultural Age, most people worked, in bondage, as serfs or slaves. They worked on the land in hierarchical fiefdoms and kingdoms. The power used to created wealth was physical force or violence power. It was the primary fuel that propelled the entire civilization, as serfs and slaves were forced to work on the land. Serfs were compensated based upon a percent of the wealth produced. The only activity that was seen as creating wealth was direct agricultural production.

As we transitioned into the Centralized Wealth Creation of the Industrial Age, most people went from working as serfs to employees. They went from working in hierarchical-based fiefdoms on the land and in bondage to working in bureaucracy-based controlled economies contained within single buildings. They worked as representatives of the owners and were compensated for their time with standardized compensation—wages and salaries. The power used to organize people shifted from brute-force to dollar wealth power. And our view of wealth-creation expanded from food production to include the making, mining and growing of things, with the making of things dominating wealth-creation.

As we are shifting to the Decentralized Wealth Creation of an Information Age, we are at the very beginnings of a shift from people working as employees in single buildings to people working as owning partners via the Information Superhighway. The shift is from people working in controlled economy-based bureaucracies to people working in free-market-based networks of self-directed virtual teams or teamnets. People are shifting from working as representatives of the owners, receiving standardized compensation, to owners that are compensated based on the value they add directly for customers. The power driving society is shifting from finite dollar power to infinite knowledge power. Our view of wealth-creation is expanding from the making, mining and growing of things to include knowledge-based wealth-creation.

Social Era>

Agricultural Age

Industrial Age

Information Age

Wealth-Creation System->

Localized
Wealth-Creation

Centralized
Wealth-Creation

 Decentralized Wealth Creation

 

 

 

 

 

 

 

Wealth-Creation

Food

Things
& Food

Knowledge
Things & Food

 

 

 

 

Definition>

PoweredBy>

Force/Violence

Dollar Wealth

Knowledge

 

(Guns)

(Dollars)

(Ideas)

 

(Win/Lose))

(Win/Lose)

(Win/Win)

 

 

 

People WorkAs>
Work Where->

Slaves/Serfs
On the
Land

Employees

In Single
 Buildings

Partners
Via Information
Technology

 

 

 

 

 

 

 

People Work In>

Hierarchies

Bureaucracies

TeamNets

Organizing Structure->

Feudalistic
Fiefdoms

Controlled
Economies

Mass Privatization
Free Market Economies

System of Work

Production and Social Organizing

One Piece Customization

Mass Production
Paradigm

Mass Customization
Paradigm

Paradigm

Personalized Made to fit Craftsmanship

Standardized Interchangeable Parts

Personalized Free Market Standardization

Work Division

Whole Work

Division of Labor

Synthesis of Whole Work

Reward for Work

Intrinsic
Reward
(%  of Wealth Produced)

Standardized Compensation
(Flat Salaries and Wages)

Value Added
Compensation
(%  of Wealth Produced)

Work Relationship

Independent Work

Dependent Work (jobs)

Interdependent Work

 

Personal

Impersonal

Interpersonal

Worker Status

Bonded Servant

Employed Representative

Partnered Owner

Market Control

Producer = Consumer

Seller’s Market

Buyer’s Market

Other Social Systems

Government (System of Social Order)

Monarchy

Monocracy
Minority Rule through
Heredity

Representative Government Representatives Govern through Majority

True Democracy

Synocracy

Individuals Self-Ordered
through Alignment

Family

Extended Family

Nuclear Family

Varied Families

Science

Formal Religion

Newtonian Science

21st Century Science

Currency

Barter/Real Currency

Symbolic Single Currency

Super Symbolic Currency

Allegiance/Focus

Local and Regional

National

Local and Global

Human Needs-

Lower Order Needs
Food, Shelter, Basics

Middle Needs
Safety, Security, Stability

Higher Order Needs
Emotional and Spiritual

Knowledge Levels

Family Centered Learning

From Home
Mass Ignorance

Mass Production Education
From Factory Schools

Mass Basic Education

Personalized Learning Via
Information Technology

Mass Learning

Wealth Level

Mass Poverty

Mass Stability

Mass Affluence

 

As Goes Wealth-Creation So Goes Civilization

Wealth-creation is the driver of all human civilizations, propelling everything else. All civilizations are built around and rest upon the wealth and wealth-creation paradigm and system of the period. In turn, the wealth-creation system is based upon the current worldview and this is based upon the latest science of the day.

Built upon this foundation are all of the social institutions of the period: work, family, spirituality, justice, government, education, commerce. These social institutions must be compatible with the wealth-creation paradigm and system of the era. As that wealth-creation system and paradigm changes so too must all of the institutions.

The institutions of an era must also be compatible with each other.  Institutions from different eras cannot effectively be mixed and matched. The social institutions for Agricultural Age did not work for an Industrial Age. Serfdom and slavery did not work with representative democracy. Likewise ownerless employment is not effective in a knowledge era where workers by default own the knowledge producing equipment, thus the means of production, in society. To change one piece we must change it all. The different eras require institutions, thinking, science and a worldview that synthesizes and to some degree matches one another to form a whole society. Since every part of every civilization rests upon its own wealth-creation foundation, as goes wealth-creation so goes civilization.

We not only see the company being replaced or transformed but all of our controlled economy-based institutions: non-profit and charity organizations, public and private schools, government agencies, universities, hospitals and more. All controlled economies, like companies, are in the business of meeting human needs.

The Shift to a Family Centered Civilization

We, in essence, live in a bureaucracy-centered society where our family members look to various bureaucracies, focused on specialized fragments of life, to meet our various needs. It has been an era of the bureaucratization of the family. This was not so in the Agricultural Age. It was a more natural time where most people got their needs met through the family. Children learned at home what they needed to live. They participated in the family business from a very young age learning as they worked. In fact, working on the land was not even considered a business, it was merely part of family life. Work, learning and family life were one undivided whole.

As we shift to Decentralized Wealth Creation we are shifting back to a family-centered civilization. One where the meeting of our family members needs for learning, work and trade, social order, emotional growth, recreation, rest, retirement and spirituality is integrated back into our family’s daily life. With Decentralized Wealth Creation, we see the family being put back into a position of direct responsibility for the needs of family members.

From Schools to Knowledge Creation and Knowledge Flow

With Decentralized Wealth Creation we can expect to see schools and the notion of education replaced with a new system based upon the broader concept of knowledge creation and knowledge flow. Education is externally driven and done by one person to another. As in all controlled economies there is one person in control. Knowledge creation and knowledge flow is internally driven, self-directed and fun. The concept of knowledge creation and knowledge flow is naturally interwoven into every aspect of every person’s life everyday. This is as opposed to the concept of education being confined to the younger years of one’s life.

With Decentralized Wealth Creation children get a large part of their learning from home through advanced information technology. Parents will have full and direct control of and responsibility for their children’s learning. Many people will work from home or a combination of home and office. Parents will be able to merge their children’s learning with their own work because much of children’s learning comes through information technology that is very much aligned with the parents’ work.

Socialization will take place daily through small, local and global learning communities, clubs and organizations. Rather than mass production-based factory schools with hundreds and thousands of children in single buildings, the local privately- owned, for-profit learning communities meet in small buildings equipped with the latest in advanced information technology. In addition, there will be global learning organizations that meet through the virtual-reality Information Superhighway.

In regards to socialization we must ask ourselves, why do our children have to be socialized with hundred and thousands of others in a single building? When and where in society do people have to interact in large numbers like this on a routine basis? This only occurs in factories.

Perhaps factory-style schools were needed for the Industrial Age.  Children were taught rote memorization, they were not taught to think and be creative, but to follow the rules, to obey authority, to be on time, to fragment through analysis, to adapt to routine, tedious work, and to conform, all the while maintaining low emotional and spiritual intelligence. These are the things that our factory style schools teach in order for people to work successfully in “controlled” and stable factories. However, today we need a new learning model that socializes our children to thrive in a New World of collaboration within small groups, relying heavily on self-direction, creativity, and synergistic relationships.

In the New World, our children’s learning comes from a variety of sources, unlike the standardized schools of the Industrial Age. Some learning occurs in small, specialized learning communities, while other learning comes from children working with their parents in their businesses, helping meet other people’s needs. A third source is from children’s play as they go online and play learning games. A fourth comes as children operate their own businesses trading their ideas, knowledge, goods and services with other kids and adults.

In addition, children will be traveling and exploring the world, and universe through the infinite Information Superhighway. This all sounds a bit scary because it lacks the control-based standardization of our current Industrial Age school system. However, we must have confidence in the invisible hand of the free market, chaos theory, to provide far better order in complex system. For example, as we look at the PC industry, we see global standardization and order without any authoritarian controlling standards.

As children become adults there will no longer be tangible graduate degrees and cut-off points where we get a certificate, and learning stops. People will be working and learning all of their lives. With the advent of Decentralized Wealth Creation in education we see the unification of learning, play, spirituality and work into one undivided whole.

The Shift to Holistic Living

 As demonstrated throughout this book, one of the trademarks of the Industrial Age has been Newtonian fragmentation. Life itself could not escape this fragmentation.  For two hundred years we have witnessed the bureaucratization of life into separate cubbyholes. Because of fragmentation we do not see work as a part of life, but something we must do so that we can live in our time off—we, in effect, sell part of our lives. We do not see the need to learn very much after graduation from school since that life-fragment is over once work starts. We do not see the need to practice our spiritual values in work and business because business and spirituality are two separate fragments that we assume simply operate upon different principles. And last, we have a separate cubbyhole for retirement and relaxation. The reality, however, is that all of the above is part of life and should operate based upon the same principles and all should be occurring throughout life, not in separate cubbyholes. All of life was one in the Agricultural Age and will again be one in the Information Age. Life was not whole in Industrial Age because of our fragmented view of life and separate, incoherent institutions.

As we shift to Decentralized Wealth Creation, we are shifting to a system where we learn, work, grow emotionally and spiritually, govern, recreate, create wealth, trade, retire and live all of the time in virtually everything we do. To do one is to do them all. It is to live!

A Natural Shift

Many people, upon seeing the Age Wave chart, comment “You mean, we’re going back to systems of the farm days; barter, home and family-based education, owning one’s work, income and reward based upon what one creates and trades with others, home-based work, production based upon individual customization? That’s nuts!” However, when one steps back and looks at the big picture it makes sense.

We see natural systems in an Agricultural Age and through all of human history. In order to move from the primitiveness and separateness of an Agricultural Age, to a civilization where things worked on massive scales, mass production, mass communications, mass marketing, mass work, mass government, etc., artificial, machine-based, command and control systems were needed to organize people and mass work. Today we are developing the information technology to enable mass work in the more natural ways.

Copyright 2000 by Barry Carter


Next: The Infinite Wealth Potential of Liberated Humans

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth


 

Welcome

Monday, July 22nd, 2002

We continue with the fifth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery 3) Why Corporations Don’t Work and 4) The Emancipation of Capitalism

“Our thinking creates problems that the same level of thinking can’t solve.”

—Albert Einstein


Mass Privatization: Organizing in the Information Age

Barry Carter

The company needs a complete metamorphosis in order to have the intelligence and motivation required to accommodate the demands of individual customers in a Mass Customization Era. The changes are massive and comprehensive; so complete that, by any reasonable definition the company will no longer be a company once it has changed enough to meet the customer’s demands. There will be no company left, and definitely not a controlled economy, once we:

Σ      Have changed compensation to have it flow from customer to supplier.

Σ      Are truly customer-driven and not management-driven. 

Σ      Are true partners networked together in win/win arrangements.

Σ      Truly have self-directed teams and horizontal flat and networked organizations. 

Σ      Truly operate on chaos theory.

There will be no company left because bureaucracy, employees, management, wages, salaries and central control are what define a company. There are two core components to the Mass Privatization enterprise that differentiates it from a control economy—the compensation system and organizing structure. People are compensated directly based upon the value they add for others, as opposed to receiving standardized compensation for their time, in the form of salaries and wages. In regards to structure, people work in personal partnered relationships as opposed to impersonal and subordinate relationships.

Compensation System

There are limitless ways in which compensation is being structured within Mass Privatization, including much of what is being tried today in companies—gain sharing, at-risk-pay, employee product royalties, bonuses systems, network marketing, team-based pay, variable pay, pinpointing and much more. However, there are two key components that all Mass Privatization compensation systems have:

Σ        Individuals or small teams, in one form or another, receive compensation in direct proportion to the value they add or wealth they create for customers and partners.

Σ        Individuals get to keep a percent of the income that they produce or accept losses incurred.

Thus Mass Privatization is a win/win system where the more value individuals and teams add for customers and partners the more compensation they directly receive.

Organizational Structure

By definition, the company or controlled economy is public work and public work is bureaucracy. A two-person bureaucracy with one person reporting to another is a bureaucracy and carries the same negative traits as the 5,000-person bureaucracy. As Tom Peters has said, “Any organization with more than four people is a hopeless bureaucracy.” When we analyze a bureaucracy by taking it apart, as seen in the following figure, we find an authoritarian relationship based upon domination and subordination. The reason that the subordinate or “inferior” must report to the “superior,” and be controlled, is because she lacks ownership in the specific work she performs. Without ownership there must be some means of accountability, and in the representative bureaucracy accountability comes through subordination.

 

On the other hand, at the core of the Mass Privatization organization (the neural net structure) are teamnets or networks of teams. These are virtual groups of partners who are overlapped and interconnected with other partners and teams. They come together, work on projects, disband and reformulate as needed. The relationship that we find at the core of the teamnet is partnership.

Teamnets have the intelligence and flexibility of a “mom and pop shop” but with the size power and momentum of a traditional bureaucracy. When we synthesize the subordinate relationship we get a full-blown bureaucracy and when we synthesize the partner relationship we get a teamnet or Starburst organization.

 

With the teamnet, there is a structure partner who partners with a core group of individuals to form the core team of the organization. Each core team member is partnered with its own team of partners, with each of these partners in turn partnered with its own team of partners. The starburst structure continues to expand until it reaches some natural limits.

TeamNets and the “Synthesis of Whole Work”

The teamnet has us moving toward a new, more powerful means of organizing work away from the “division of labor.” I’ve labeled it the “Synthesis of Whole Work.” Applied Computer of Anaheim, California is a virtual enterprise. The virtual enterprise is a new organizational type based upon extreme flexi­bility, core competencies, outsourcing, partnering and constantly changing relationships (Davidow,  Malone, 1992). Ted Diab, owner and founder of Applied Computer, has completely reversed the division of labor and made work whole again. He is the only worker in his own corporation: marketing representative, salesperson, president, CEO, accountant, janitor, production line operator, test technician, pro­grammer, field service representative, quality inspector and friend all in one. In 1994, the fastest growing segment of the economy was the one-person enterprise like Applied Computer.

With Ted’s system of whole work, he gets to interact with all of the aspects of the wealth-creation process. With the divided work of controlled economies all employees interact with mere fragments of the whole wealth-creation process. This is what Margaret Wheatley says in Leadership and the New Science regarding quantum physics, perspective and employee interactions with work:

In quantum logic it is impossible to expect any idea to be real to employees if they do not have the opportunity to interact with it. Reality emerges from our process of observation, from decisions we the observers make about what we will see. It does not exist independently of those activities. Therefore, we cannot talk people into reality because there truly is no real­ity to describe if they haven’t been there. People can only become aware of the reality of the plan by interacting with it, by creating different possibili­ties through their personal processes of observation.

Individuals within companies create wealth through their work. Since the whole process, including the details, is not within the perspective of any of the employees, including management, the resultant decisions and actions are far less than optimal. I have worked in manufacturing environments where the improper electrical assembly by the production person could kill a customer. When I’ve mentioned this fact to production workers responsible for assembly, they’ve been shocked (no pun intended). After many years building the product they simply weren’t aware of the gravity of their work. Likewise, managers have little idea of the real-world details of front line workers, though most think they do. Instead they live in a vague abstract world of numbers, graphs and charts which poorly represent reality. Then there are the segmented bureaus of specialty whose employees continually debate their individual perspectives—engineering, production, quality, marketing, accounting, etc.

Ted’s whole work is powerful because from his perspective he gets to see and experience the whole wealth-creation process. Because of Ted’s perspective, he is in a position to be truly and deeply intelligently customer-focused. It allows Ted and I to have a long-term relationship which I classify as a partnership, based upon Chip Bell’s definition in Customers as Partners. Bell says real partnerships must be based on abun­dance, trust, dreams, truth, balance and grace.

Partnerships

Σ       A customer partnership is a living demonstration of an attitude or orientation. Powerful partnerships are anchored in an attitude of generosity, a “giver” perspective that finds pleasure in extending the relationship beyond just meeting a need or requirement.

Σ       Powerful partnerships are grounded in trust. Partners don’t spend energy looking over their shoulder, but instead take a leap of faith and rely on the relationship.

Σ       Powerful partnerships are bolstered by a joint purpose. While this purpose is rarely writ­ten down, each partner is enfolded in a vision or dream of what the association could be and a commitment to take the relationship to a higher plane.

Σ       Powerful partnerships are coalitions laced with honesty. Truth and honesty are seen as tools for growth rather than devices for disdain. Partners serve each other straight talk mixed with compassion and care.

Σ       Powerful partnerships are based upon balance. Their pursuit of equality, however, is one that seeks stability over time rather than absolute encounter-to-encounter equilibrium.

Σ       Powerful partnerships are grounded in grace. The spirit of partnership has an artistic flow that gives participants a sense of familiarity and ease.

Bell shows the kind of partnerships we must have in our wealth-creation relationships. I can trust Ted’s advice 100%. The value Ted adds above what any controlled economy could ever produce comes from trust, honesty and integrity—the wealth-creation norms for the new era. Ted’s whole work is the foundation for the substantive laws of the farm in the new organizing system. There is no whitewashing of performance results, with phony “laws of the school” activity, at the end of the week as employees and managers do. Either there is a profit or a loss. There is also good reason not to kill the goose, long term, merely to get the golden eggs, short term, as many employees do. This is because Ted is very concerned about the very long-term health of his business.

Ted certifies his suppliers, as any large corporation would. He assembles, tests and services his own computers. He qualifies components. His logo and PC’s, in my opinion, look as handsome as Apple’s, IBM’s or anyone else’s. Without even knowing it Ted is on the leading edge of organizational change. His performance would make the most progressive companies appear decades behind. Ted has the ultimate flat, horizontal and virtual organization. He has the ultimate gain sharing system. He has the ultimate one piece flow process using lean manufacturing and just in time principles. With nearly zero inventory he takes an order for a customized computer builds and ships it within 24 hours. He sees customers as partners, lives the seven habits of highly effective people and works beneath the surface.

Without reading any fad business books, attending any seminars or paying any consultants, Ted is doing the things larger organizations are paying consultants millions to teach them one fragmented piece at a time. Most companies struggle years and decades to make minor gains in the areas defined above. Ted, however, has done these things near their maximum potential because these things are natural to whole and private work.

Ted has unlimited flexibility, being a one-person “virtual corporation.” There is no way any fragmented organization can match Ted’s service, quality, trust or partnering. As the mammoth IBM’s in the computer industry have downsized or gone belly up, thousands of Ted’s have sprung up. Most towns have at least one. Prior to the personal computer, the computer industry was vertically integrated like most others.

Presently, the tens of thousands of independent Ted’s are collectively mass customizing hundreds of thousands of computers and producing billions of dollars in income. Each outlet custom builds and ships one ordered unit at a time.  Collectively, they are likely shipping more than some of the largest computer makers. At some point, these thousands of virtual corporations will begin to network with one another, through the Information Superhighway for leverage and synergy producing Mass Privatization. Presently Ted’s only disadvantage is price and name brand recognition.

As Ted links with thousands of others into a single Mass Privatization community, he and the partners could agree to purchase “X” thousand of motherboards, hard drives, monitors per year on blanket purchase orders, they would then be able to match the prices of the large controlled economies. Likewise there would be global name brand recognition. They would be able to match price and brand equity with the big boys and would be far superior in all other aspects of business. This includes partnering and intra-organizational collaboration, customization, speed (lead times and response times), service, organizational intelligence, diversity, flexibility, perspective, wholeness, passion, trust and ownership and far more.

As Mass Privatization organizations arise made of thousands of individual Ted’s formed into teams, business units and global communities, we move away from the Newtonian-based division of labor. We shift to the “Synthesis of Whole Work.” This is where whole businesses come together to form larger whole businesses and then these wholes form even larger wholes. This is a quantum physics worldview.  Division is about fragmentation and synthesis is about wholeness.

As we view the situation with Applied Computer and the thousands of others like Ted we see that today we are very close to having the Mass Privatization enterprise. In the computer industry we mostly lack the vision to pull the organization together.

If the Mass Privatization enterprise is so powerful, why has no organization gone all the way with it? There are many organizations performing bits and pieces and some performing entire chunks of Mass Privatization as documented in hundred of book. There are a few that are very close to Mass Privatization. There are also network marketing organizations who are all of the way there, however, only in sales and marketing.

The question, however, still remains if Mass Privatization is such a great deal for everyone then why isn’t there a mad rush to Mass Privatization? Well, why did plantation owners stay with plantations when industry was far more profitable and humane? In short, momentum, inertia, paradigms, complacency, low self-esteem, a strong analysis bias, the desire to control from fear, lack of vision and limited technology all restrain us. However, as information technology reaches a critical breakpoint we all will be thrust into the new system at the speed of light. As one organization in one industry either converts to or starts up as a Mass Privatization community the entire industry will fall like dominoes one company at a time. Either they will be forced out of business or forced to privatize. We see this type precedent with the shift to virtual organizations such as Amazon.com, the world’s largest bookstore. Barnes and Nobles, Borders and the entire industry is now rapidly going virtual.

Ted and the Collapse of Time and Space

Information technology, in specific the Information Superhighway, is the primary Mass Privatization enabler. It has not reached the point where it makes face to face communication human enough to compel Mass Privatization. We humans need real person-to-person communications to effectively work together from various distant locations. Communication by telephone only uses one of our five senses—hearing. With Internet we only have the written word with extremely limited use of hearing and sight through teleconferencing. 

At some point in the near future Ted will have access to the tens of thousands of other Ted’s with direct face-to-face communications through the highly publicized Information Superhighway. Internet and teleconferencing technology will be integrated and more widely used. However, the Information Superhighway will also include the highly humanizing virtual reality and holographic technologies. These two integrated technologies will move us away from talking to one another through two-dimensional computer monitors, to almost complete, person-to-person three-dimensional communications, where we fully use our senses of sight and hearing. Though Mass Privatization is today possible, virtual reality and holographic technologies, combined with others, will compel Mass Privatization.

The Information Superhighway will be a synthesis of a vast array of information technologies including: Internet, the World Wide Web, fiber optics, wireless technology, voice recognition, computer technology, virtual reality, language translation software, holographic technologies, telephone, television, interactive television, VCR, fax and digital technology and many more.

Ted and his partners will NOT be sitting in front of monitors talking to each other through a computer and computer screen. They will be having real person-to-person contact through holographic virtual reality networked computer systems. Like Star Trek’s “holodeck,” people will literally see and talk to others, as though they were sitting in the same room, though they were thousands of miles away.  The partners will appear to each other to be in the same location, having a person-to-person conversation. Information technology is, in effect, collapsing time and space—allowing individuals to travel anywhere in the world and meet with anyone desired at the speed of light and at virtually no cost.

In addition, the superhighway will have the ability to translate the speech of Ted’s partners from all over the world so that many people from many countries can communicate. Your partner in Tokyo speaks to you in Japanese but what you hear is English.

Ted in the Year 2020

Imagine it’s the year 2020. One of Ted’s partners, Jane, has a great idea regarding customizing their products for customers. At 7:30AM she posts a meeting notice for the seven partners on her self-directed team and fifteen more from her broader business unit. She calls the meeting for 9:00 that morning and selects a secluded beachfront conference room on the Hawaiian Island of Maui. 

Eight of the twenty partners show up. With waves crashing all around they are literally on the beach in a conference room, with Jane standing and presenting data on a screen in front of the room. She passionately explains how the idea has already improved her customer satisfaction and increased sales for her. They openly brainstorm with a free flow dialogue. Since each partner is eager to improve his or her own customer satisfaction and increase profits, the partners are very open to new ideas—there is alignment. They “seek first to understand,” listening intently to one another. As the idea is presented, people add variations to the original idea, which may improve it even more. With synergy, the ideas build on one another. They are truly connected, synthesizing, synergizing

After a short, informal fifteen-minute meeting, people sign off and are instantaneously back in their homes and offices. Ten minutes later some of the partners have already begun implementing the concept with variations. Some variations work and most fail. These eight partners have virtual meetings of their own with other partners who again try other variations. Within twenty-four hours, through parallel processing, nearly all ten thousand partners have heard about it, with eight thousand having tried it. By the end of the twenty-four-hour period, through the order found in chaos theory and the interconnectedness of quantum physics, the idea has evolved through several variations.

Jane, as well as the eight thousand partners, has implemented some version of Jane’s original idea. Like a school of fish or flock of birds the entire synergy-based organization turns and moves in new directions with synchronous beauty and lighting speed, as through guided by one brain. Without the rigid standardization of control and variation reduction of the controlled economy, we have a highly ordered economy based upon broad variation, diversity, creativity and individual liberty. 

Ted’s network is designed with a Knowledge Leveraging Compensation system, where an individual’s income increases as other partners’ incomes increase. Knowledge Leveraging Compensation pools a small portion of each partner’s income and equally divides it back out, highly motivating partners to communicate successes and failures to other partners. This pooling is done at several levels—the team, the business unit and globally. Because of passionate communications, gross income for the organization increases, as individual partner’s income increases and customers are made happier. Everyone has won. In addition to Knowledge Leveraging Compensation, there are many other reasons why partners want to share information with others. Trust, bond­ing, partnership, love, car­ing, friendship, strength of the network and real teamwork, are all driving forces behind information flow in Mass Privatization. In addition, to this people have become aware of the win/win world that this behavior supports as our norms and values have changed.

Eight thousand partners plus tens of thousands of customers have won with one idea due to the win/win nature of knowledge power and the Mass Privatization system. In addition, Jane has won more by sharing the idea than withholding it.  This is because others were allowed to synergize and synthesize their ideas with hers—thus building something that none of them could have developed alone.

Although the above may sound far-off to some people, the fact is that the most practical part of this scenario already exists. By adding up the sales of the thousands of individual Ted’s, who presently already exist, we already have an organization with billions in real sales through thousands of private workers, real growth, profits, customers and real products. All of this exists and is real, without any division of labor, central control, operating procedures, petty rules, bureaucracies, managers, unions or employees. All that is left is the alignment of these communities—the synthesizing of these constituents of whole work.

Ted’s 2020 Mass Privatization community operates like the brain itself, with each person operating more or less like an individual neuron, and in­formation technology working as neural connec­tions and memory. Synergy and parallel processing are the core building blocks of the Mass Privatiza­tion paradigm.

As Mass Privatization expands and interconnects thousands of organizations, producing a system of Decentralized Wealth Creation, the global neural connections on Planet Earth are about to expand ex­ponentially in the coming years. With this degree of connectability, it is easy to see the growth and in­telligence po­tential ahead through the Mass Pri­vatization paradigm.

Mass Privatization in Heavy Industry

At this point you may be saying, “Perhaps I can see Mass Privatization working in service industries or assembly manufacturing, but how about heavy industry?” Heavy industry is already headed towards Mass Privatization as discussed earlier, with the long-term shift from vertical to horizontal integration. We have come from a past where the entire wealth-creation process was defined and controlled. We have seen a gradual shift over time towards the worker controlling her specific work.  We’ve gone from dictators such as Ford and Rockefeller, who had total control and ownership over entire supply chains (theory X management) to micro management, to theory Y management, to employee involvement, to empowerment, business units, core competencies, profit centers and self-directed teams.

Leading edge organizations such as ABB (Asea Brown Boveri) are at the forefront of today’s continued decentralization, just as decades ago there were the first big manufacturers to go public. ABB manufactures products for power plants, power distribution, power transmission, transportation, and environmental controls. In transportation, for example, ABB manufactures locomotives. Manufacturing does not get much heavier than locomotives. In 1991, ABB restructured the entire $28.9 billion company and 215,000 employees into 5,000 profit centers, each owning its assets. As power was shifted to the profit centers, the 3,000-person central controlling office was reduced to 150 people within a couple of months. ABB CEO Percy Barnevik said he would have incorporated each one of the 5,000 profit centers if it were not for the paperwork. The 5,000 profit centers make up 1,300 independently incorporated companies, averaging 200 people per company. The average profit center of 50 people has its own profit and loss statement and each is broken into high-performance teams averaging ten people per team while serving customers directly.  (Peters, 1992, p9, 45.)

We are seeing market forces pushing us away from centralized control of wealth-creation to individual control of wealth-creation. Through natural selection, society slowly shifts in this direction. As we observe the trends towards localizing the control of work in heavy industry, one of the next logical steps is the company as a holding company. This is an arrangement where “the company” invests money in ventures based upon a prospectus or past track record but with no say in how the day-to-day business operates. This is nothing new. Investors invest billions each day into organizations where they have no say in the day-to-day operations. The holding company is the ultimate flattening of the organization, where managers are squashed out of existence, leaving only value-adding work and workers as business owners. Let’s theoretically look at ABB, as a holding company, a few years into the future.

ABB as a Holding Company

Similar to former Soviet bloc countries, ABB two years ago offered employees a privatization plan. The 5,000 profit centers were broken into 21,000 profit centers with each team being a profit center. They have also gone from 1,300 companies to 8,500 independent businesses or business units. Each business unit is comprised of several self-directed teams (averaging three to four teams). Power Products is one of the businesses. As part of the privatization package ABB traded 60% of ownership of Power Products to the former employees, now partners. Employees are not merely being called partners and associates but are real partners. In return for the ownership, ABB receives a percent of the profit produced from each business in the form of a quarterly dividend payment, based upon an agreed upon percentage of the profits produced.

As part of the privatization agreement ABB and Power Products partners agreed that Power Products would accept and ABB would provide “high directive” support until Power Products partners develop the expertise to operate as a high performing team. Part of team theory say that one cannot merely go from being passive employees to being empowered owners without going through four stages of team development—forming, storming, norming and performing. So that the ABB partner businesses are not thrown into a sink or swim situation, like most upstart businesses which fail, there is a period where the business contractually must follow the directives of an ABB representative. So that the representative’s interests are properly aligned, she is compensated based upon a percentage of Power Products profits.

ABB has zero labor costs, zero management costs, zero overhead costs, no union headaches, zero benefit costs, zero utilities or facilitates costs and a lot less government regulation. There are no managers or employees. Power Products partners receive no standardized salaries, wages or benefits. There is precedence for this in heavy industry. Lincoln Electric workers presently receive no salaries, wages, vacation days or holiday pay because of their ownership-based compensation systems (Posner, 1988 p95). As partners making far more money than employees, Power Products partners are no longer dependent on entitlements from the bureaucracy. Through networks the partners leverage their purchasing power, and purchase these services customized for themselves directly from suppliers.

Power Products produces power transformers for the utility industry. There are 33 people working in the Power Products business unit in three self-directed teams. Power Products has the option of leasing its production equipment and space from ABB or from another supplier. When offered the privatization package, Power Products moved its production equipment and people out of the larger factory of 500 employees. They found a small building where the lease on floor space was 45% less than the quote from ABB. They did, however, lease the production equipment from ABB.

Power Products sells its transformers through an ABB networked enterprise of sales representatives focused on the utility industry. Customers purchase products from Power Products and pay Power Products directly, not some corporate accounting department. Power Products in turn pays its suppliers. One of these suppliers is ABB who receives a monthly payment for leased equipment.

The 33 Power Product partners perform most of the organization’s work, from building the product, to customer service, to much of the equipment maintenance, to much of product and process design. However, some work is vendored out to former ABB managers who work as external suppliers. The pyramid has truly been inverted and management has become true suppliers. However, since it is a free market, Power Products partners have the option of using other suppliers. Likewise, these former managers consult with other Mass Privatization enterprises.

Power products also contracts with former engineers, accountants and others as needed. You see no Industrial Engineers out doing formal time studies, dividing work and dictating rigid work standards, as well as talking down to the people doing the work, as in the old days. You also do not see former managers dictating to Power Products partners or taking disciplinary action with them. Managers and engineers who remain dictators, who cannot adapt to being customer-focused suppliers are not profitable and quickly go out of business. 

The thirty-three team members share the work of the business. There is little division of labor and no division between the front office and factory floor, since there is no front office. Customer calls come directly onto the factory floor and are answered by the Scheduling Team Leader.  There are many other team leaders, including preventive maintenance, process consistency, materials, purchasing and quality. These are people with more expertise or passion in given areas that lead facilitation efforts in these areas.

Of the three teams in the business unit, two are suppliers to the third team, the “Customer Team.” The customer team is the one that receives the income from external customers and it in turn places orders with and pays the other two teams as suppliers. Within the ten members on the Customer Team, profit is split relatively equally. There is, however, an adjustment made based upon a peer evaluation done each month. In addition, a Knowledge Lever­aging Com­pensation system is used which pools 15% of the three teams profits and equally splits it back out to the teams. It also pools 10% of Power Products profits with all other ABB business units and equally divides it back out. This provides incentive for interconnectedness, communication and generosity in helping one another.

Why did ABB trade away part of its ownership? Because ABB could make far more money as investors investing in partners than managers managing employees could—more profit from human liberation than human control. Passionate, engaged learning owners are far more efficient and effective at meeting customer needs, adding value and creating wealth than ownerless representative employees. Workers now receive far more income and it comes from a win/win system where the more partners make the more the holding company makes.  ABB’s profits are up and ABB is growing faster than before because of the privatization package. Customers are getting better quality, service and more customized products faster. Everybody has won!

The above is intended only to show that Mass Privatization can exist today using practical and proven concepts, systems and technology. It is not intended to show all of the realistic detail of Mass Privatization in heavy industry. There are too many variables to predict the details of Mass Privatization. In addition, these details will be handled differently for each organization.

Other Mass Privatization Options in Manufacturing

There are many other ways Mass Privatization will evolve in industry.  In 1993, I ran across a virtual molding company. Envision an injection plastic molding company with 1,000 molding machines. Undoubtedly it would be the largest molding business in the world. But the surprise is that there is no factory. Each of the molding machines is owned and operated out of individual partner’s garages. This was a networked organization where private workers in their homes did the manufacturing work.

In addition to the privatization of manufacturing we must consider the impact of automation on manufacturing. Over time we can expect to see automation turn mass produced products into commodities with little human involvement in production. We have the precedent from the Agricultural Age, where we went from 70% of the people working in agriculture to less than 1% today. From 1960 to the early 1990’s we saw the number of people working in manufacturing drop by 32%. We can expect this trend to continue. With Ted’s whole work we see manufacturing being integrated seamlessly into the overall wealth-creation process, as opposed to being a separate island unto itself.  The bottom line is that manufacturing will become a non-issue for workers, since few people will be working in an isolated fragment of the wealth-creation process known as “manufacturing.”

The End of Bureaucracy

Today the Mass Privatization system is slowly replacing the company and other controlled economies as the primary wealth-creation institution in society. We see the foundation and core building blocks for the Mass Privatization enterprise being developed all around us within controlled economies. We merely need to synthesize the various activities in business and society, then extend the trends out a few years in order to clearly see where we are headed: towards win/win free-market-based wealth-creation institutions, with unlimited economic freedom for the individual.

Copyright 2000 by Barry Carter


Next: Decentralized Wealth Creation

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth


 

Welcome

Sunday, July 21st, 2002

This morning we continue with the fourth in our series of excerpts from Barry Carter’s book Infinite Wealth. See: 1) The Rise of a Win Win Civilization  2)  A Personal Journey of Discovery and 3) Why Corporations Don’t Work

Times such as ours have always bred defeatism and despair. But there remain, nonetheless, some few among us who believe man has within him the capacity to meet and overcome even the greatest challenges of this time. If we want to avoid defeat, we must wish to know the truth and be courageous enough to act upon it. If we get to know the truth and have the courage, we need not despair.

—Albert Einstein


The Emancipation of Capitalism

Barry Carter

In 1990, after years of effort moving at a snail’s pace to make CheckMate work, things were going great. We had a profitable business. Our sales had held at a 9% hit rate for two years. As long as this figure held, nothing could hurt us. Based upon years of data, it would take more than an earthshaking catastrophe to make that figure drop. My wife, Linda, and I confidently decided to relocate our small mail-order business to the peaceful Blue Ridge Mountains of Virginia, as we’d planned for years. Two weeks after I announced leaving my day job, it happened. All in one week, Iraq invaded Kuwait, news of recession broke and President Bush and congress were gridlocked on passing the 1991 budget, with the federal government on the verge of shutting down. The country went into shock and our sales hit rate not only dropped, it plummeted to zero.

The pressure was on, and, after years of struggling with the paradox of the waste and gridlock within traditional companies versus the weakness of building momentum in a small start-up venture, the answer became clear. Panic and threat of financial ruin from my business allowed me to see past my paradigms. While reading of Jay Forrester’s vision of private work in Reinventing the Corporation it was as through I’d been shot through the forehead with a brain-piercing revolutionary epiphany.

We needed a completely new system for organizing work. We needed one that combined the power, size and momentum of a bureaucracy with the creativity, flexibility, passion and intelligence of a mom and pop operation. Within the bureaucracy, momentum and size were right but alignment was missing, and the opposite is true of the “mom and pop shop.” The kind of alignment we needed in organizations could come only from more ownership throughout the supply chain, so that all stakeholders’ interests pointed in the same direction. The wealth creators needed to own the specific work they performed and be compensated based upon a percentage of this wealth. We needed privatization within the organization on a mass scale, hence Mass Privatization.

The Mass Privatization structure creates a win/win condition where the more one individual wins the more other stakeholders win.

Mass Privatization Defined

Today we face the greatest move towards personal responsibility, ownership and personal power in all of human history. When we synthesize Age Wave Theory with the changes in work, business, science, information technology, organizations and wealth-creation we see a new work and wealth-creation institution emerging—the Mass Privatization enterprise or community.

I define Mass Privatization as a wealth-creation organization or community in which the individual worker, or a small team of workers, owns the specific work they perform. These private owners work in partnership with other private owners. Networks of small virtual teams (teamnets) form chains of customers, linked by information technology to form powerful global enterprises (Lipnack, Stamps 1993). They are flexible enough to customize at the individual level while producing en masse, hence Mass Customization. Partners are bound together through a compelling vision and mission, as well as alignment that comes from an organizational structure based upon win/win compensation. Internal to the organization, suppliers as partners are compensated directly by their customers. Likewise, internal customers pay their suppliers directly. There are no managers, salaries, bosses, hierarchies, employees or central controls.

Is Mass Privatization socialism? No! In socialism the individual worker owns nothing. Is it capitalism? No! In capitalism the individual worker does not own the individual work performed. Though socialism purports to be a system in which workers own the means of production, and capitalism espouses the right of the individual to own a whole business, neither system supports the individual owning the means of production for his or her own work. Both systems are, however, based upon the central control and ownership of work.

Mass Privatization is a more coherent wealth-creation paradigm than either socialism or capitalism; coming from a higher vantage point. It synthesizes the best values of both systems (individual liberty and worker ownership) while leaving out the negative methods (authoritarian control and the centralization of ownership). Mass Privatization is a wealth-creation organizing structure which both socialist and capitalist alike would likely embrace. They would both feel like their views have now been proven correct and valid. Ironically, there is also the possibility that either of these people would find Mass Privatization total heresy.

Order Attained through Alignment versus Control

For centuries humans have attained order through control. However, we confuse control with order. Ask any typical manager and he will tell you that people need to be managed; there needs to be rules, laws and punishment. Control, however, is merely one means to attain order. Alignment is another, more advanced, means and there are others beyond alignment that we will discover as we mature. For our level of advancement, however, we must have either control or alignment to attain order.

The less an organization is aligned, the more control is required—the more aligned the organization, the less control is needed. Nobody, after all, has to monitor the local family-owned mom-and-pop drugstore to assure that they are making the best decisions for their business. The problem with order from control is that there is little commitment or engagement by the workers. For today’s level of human maturity, alignment is mandatory prior to empowerment, liberation and self-direction. Empowerment without alignment produces disorder, as people’s arrows of interest point in various directions. By not understanding the broader synthesized picture of where change is headed some companies are trying faddish self-directed team and empowerment programs without alignment and the result is a mess—again I speak from experience. Others, however, are providing alignment in the form of variable-compensation systems such as gainsharing and team-based pay.

Though we need Mass Privatization, it does seem to be a contradiction in terms, (as does the term “Mass Customization”). Private Work is work owned by one person. It would seem, then, that the only way there could be mass work within a single organization would be if it were to be publicly owned. The difference, however, is that today’s information technology is beginning to allow individual private workers to network together to form organizations from remote locations—virtual organizations.

Chaos Theory–the Science Supporting Alignment

Margaret Wheatley, in her groundbreaking bestseller, Leadership and The New Science, shows how organiza­tions today operate on principles derived from Newtonian science of the seven­teenth century, which assumes a fragmented and mechanically-controlled universe. The new sciences, such as Chaos Theory, Quantum Physics and Complexity Theory, have overturned almost all of this old science. Chaos and Complexity Theory show that far better order is created in complex systems out of self-organization than control.

We, by far, are not the first to discover Chaos Theory in wealth creation. Adam Smith in the Wealth of Nations two hun­dred years ago identified the “invisible hand” as the driver of free markets. Smith’s invisible hand is Chaos Theory. He showed that free markets and free individuals are best at meeting other people’s needs.  As people work as liberated agents they automatically provide a system of order.

In the late 1980’s, while I lived in Southern California, I sometimes compared the central control of companies to the chaos theory that produced order on Southern California streets, roads and freeways. Thousands of decisions are made each second regarding turning at intersections, merging at freeway on and off ramps, changing lanes, pulling into traffic from stop signs. Do I go or do I wait, do I turn or not? Decisions are made at the local level based upon personal judgment, experience, intuition, creativity and yes, ownership. Who best to make the decision regarding whether or to stay or go than the person whose life, family and personal property is at stake. We make tremendously complex decisions in split seconds with only a glance. We synthesize the speed of oncoming traffic, with the distance, our acceleration potential, pedestrian traffic, and many other factors and make correct decisions 99.999999999999% of the time. Out of millions of miles trav­eled each day in Southern California, there are only a relative handful of accidents. I used to won­der what would happen if a few bureaucrats controlled all of this activity. Suppose they had a massive computer system and attempted to control every deci­sion made by every person on all of the roads in Southern California!

As I watched the complexity of decisions being made by just a few cars in my im­mediate vicinity, I knew the impossibility of the task. There would be thousands or tens of thousands of acci­dents each day. However, the bureaucrats would track the numbers and declare success with a 98% accident-free rate! Maybe they would eventually install a “continuous improvement” program, improving from 98% to 98.05% over a couple of years and again declare success while patting themselves on the back; with thousands of people still being injured and hundreds killed daily.  Yet companies worldwide consider the pitiful “continuous improvement” model perfectly acceptable while external and internal customers receive a mere fraction of the value, service, quality and customization potential available!

Within companies, these “accidents” take the form of human needs not being met. These are also the “accidents” which destroyed the former Soviet Union. When all is said and done, perhaps the most striking similarity between the company and former Soviet Union is the degree to which both of these controlled economies consistently failed to meet the needs of the people internal to them. In the end, external customers and all of society pay an enormous price for the wasted potential of control. We pay in poorer quality products and services, a lower standard of living, quality of life and our many other deficits.

Chaos Theory is the key to the Mass Privatization organizing system. In Chaos Theory there is a component known as the Strange Attractor which produces order while giving significant freedom at the individual level. In nature we see schools of fish moving in harmony while each has the freedom and autonomy to go their own way. For the fish the strange attractor is the safety of numbers and patterns as the movements of the schooling fish confuse predators.

In organizations the Strange Attractor as shown in the following figure acts as a powerful magnet that naturally aligns all stakeholders’ “arrows-of-interests” in the same direction. This is not done through force or control but through each individual’s own free will, through self-determination, as each individual wins for him or herself by helping others win. In the Mass Privatization paradigm the win/win knowledge-based structure and compensation system, plus caring, plus the shared vision, values and passion of the individuals within the organization, operate as the powerful Strange Attractor. In Mass Privatization I make more money by helping others and the more people I help the more money I make.

 

The Trends toward Mass Privatization

As my business was sinking and I thought more about Mass Privatization I was struck by a jolting thought: Mass Privatization is what the market has been demanding. It is where all of the faddish, frantic business change and hype has been headed over the past thirty years.

The new wealth-creation enterprise is easy to visualize. As shown in Figure 6, all one needs to do is evaluate what business has been for the last hundred years, compare it to the progressive changes over the last few decades and years, synthesize the trends and extend these trends out a few years. This is especially true when comparing it to the immediate past.

The History of Organizational Ownership

As we look over the past hundred years, we see a very specific and clear long-term trend from Centralized Wealth Creation and controlled economies to Decentralized Wealth Creation and free market economies, or Mass Privatization. Early “smoke-stack” companies vertically integrated the entire supply chain into one huge self-contained controlled economy, under one person’s ownership and control. This was the ideal towards which capitalists strove.

When the Industrial Age or Mass Production era was in its prime, those like JD Rockefeller crushed their entrepre­neurial rivals, drove them out of business, purchased the remains of their businesses, and then hired the former entrepreneurs as controlled and controlling bureaucrats within their companies. The name of the game was to control as much of an economy as one could. One of the many entrepreneurs driven out of business and vertically integrated into Standard Oil was forced to become a bureaucrat controlled by Rockefeller. He commented, “This is down­right undemocratic, it’s an infringement on my freedom.” He was exactly right.

With vertical integration we bought and sucked up whole small businesses, broke them up and put their resources into defined departments or bureaus of specialty (marketing, production, sales, engineering, quality, accounting, etc.). It turned owners into representatives and entrepreneurs into bureaucrats.

Vertical integration disguised customers and suppliers in the supply chain as employees. The In­dustrial Age was based on the idea of vertical integration. Henry Ford had a factory that was miles long, starting with iron ore on one end and automobiles rolling off a production line at the other. He even owned the mines where the iron ore came from, as well as the rubber plantations for tires in South America.

The history of the ownership of companies, at the height of the Industrial Age, was one in which an owner like Ford owned the entire supply chain. Over time, free market forces compelled ownership to be diluted into the hands of more individuals through stock ownership. Then, rather than one owner, there were thousands of owners. Then came employee stock ownership—programs where employees owned percentages of companies, or even the entire company. Later came profit sharing and franchises. Recently, there has been an explosion of variable-pay private ownership or value-added compensation programs. These allow the individual to more directly own a percentage of the wealth he or she produces. They include gainsharing, at-risk pay, team-based pay systems as well as incentive, pinpointing and bonus programs.

Each of these progressive steps from control to liberation was not necessarily desired by companies and owners. The market demanded them. For example, a public corporation could raise the capital needed to seize opportunity much faster than a company who attempted to maintain sole ownership and complete control. Through natural selection, the public corporation, therefore, became be the norm. And today it is this natural selection process which will cause the end of the controlled economy and the rise of the Mass Privatization organization. Companies like Nucor Steel and Lincoln Electric have thrived while many in their industries have gone under. A five year study by the National Center for Employee Ownership concluded that companies with employee ownership and participation financially out perform companies without these two. This is because non-owning employees are simply not able to meet customer needs as well as participating owners.

The History of Organizational Structure

Regarding vertical integration, what is occurring today is the de-vertical or horizontal integration of controlled economies as we move to the horizontal Mass Privatization structure, as shown in Figure 6. Starting with those like Rockefeller who owned the entire supply chain, perhaps the initial step towards horizontal integration came with outsourcing. Here, more owning suppliers were introduced into the supply chain. External companies (owning suppliers) rather than controlled bureaucrats performed more of the work of the supply chain. Today, there are no companies globally which own more than a fraction of a total supply chain, with the work of the vast majority of all supply chains being performed by many different suppliers. It simply became more profitable to control less of the wealth creation process. Either companies de-vertically integrated or went out of business. “To be in control today is to be out of control” (Peters 1992).

Perhaps the next big step was franchises. Kentucky Fried Chicken has ten thousand restaurants, with many thousands of small owners. Franchising, uses more real owners in the wealth creation process, in order to expand rapidly to meet customer needs. However, the operations are out of the control of the founding organization. The other option is slow growth and tighter control. Price Club was the first company to pioneer the brilliant wholesale warehouse concept. It seemed destine to dot the entire U.S. landscape with Price Club warehouses. However, in 1993 it was announced that, due to a fall in earnings, Price Club was merging with Costco. The decline was due to slow expansion when an onslaught of competition from Sam’s, Price Savers, Pace and the like entered the wholesale warehouse business. The Prices stated that the reason for the slowness and ultimate fall was the moderate pace of expansion that was prudent and necessary to ensure that management had tight control over opera­tions. Today, tight control over operations is a sure road to de­cline. Again, “to be in control is to be out of control.”

In recent years, there has been a flurry of activity towards horizontally integrating controlled economies including core competencies, profit centers, business units, horizontal organizations, self-directed teams, virtual organizations, network marketing, contract employees, lean manufacturing and more as shown in Figure 8 , page 6 .  All of these concepts move us a step further away from the control of vertical integration and towards the liberty of free markets.

With some of the programs, many people are being downsized out of the bureaucracy to become business owners. With the collapse of the mainframe computer, IBM lost approximately 200,000 of its 400,000 employees. Many of these former bureaucrats and employees are now building and selling computers in their own one-person computer retail stores. The crushing weight of the free market is forcing bureaucrats back into the horizontal supply chain—an exact reversal of vertical integration.

We are emancipating capitalism. Just as vertical integration turned entrepreneurs into bureaucrats and clerks, horizontal integration turns clerks and bureaucrats into entrepreneurs. Perhaps vertical integration was mandatory in the Mass Production era because mass wealth and mass physical re­sources were required to produce wealth. However, with knowledge being the primary wealth creator today, vertical integration is obsolete. Individuals own the knowledge in their own heads, meaning by default, that individuals today own the means of production.

Books and Fads Shows the Trend to Mass Privatization

Books serve the purpose of documenting trends, activity and thinking in society. Prior to 1980, the number of business books showing new progressive thinking and activity was relatively small. It was a period of long stability and there was little need for new business theories, thinking and activity. There has been steady growth in business books since the early 1980’s, which has exploded within the last few years. Since 1990 many new publishers of leading edge progressive but widely accepted business book have entered the market—the likes of Berrett-Koehler, Executive Excellence and Butterworth-Heinmann.

It is imperative to understand that each book concerning business or social change represents thousands of hours of thinking, researching, reading and collaborating focused on a specific issue. Today’s explosion of books, from hundreds of publishers, represents virtually all that is presently occur­ring in business, organizations and society. When we stop analyzing and step back away from the trees to see the forest, all of a sudden things come into focus and Mass Privatization is clear to see. We are discovering a completely new wealth-creation paradigm, one building block at a time.

The key here is to be able to synthesize the material being produced and make some holistic picture of the trends. When viewed collectively, they almost com­pletely define the Mass Pri­vatization paradigm. Figure 7 shows a small sample of the books published in the last few years regarding organizational and social change.

Many of the book titles are stretched beyond the content contained within that book. For example, the thought expressed in the title Businesses without Bosses is exactly where wealth-creation is going. The author, however, does not advocate a new form of business where managers and hierarchy do not exist. Although many of the books lack the substance implied in the title, the ti­tles and hype nonetheless show the demand of the market and where we must ulti­mately go—what controlled economies are unable to completely deliver. A mere review of the titles provides an excellent indicator of the direction and degree of change.

In 1990, when the Mass Privatization concept clicked in my head, I knew based upon intuition that it was the answer to our gridlocked system of work. After the weakness I’d wit­nessed in companies and my own business struggles, I knew that personal ownership was the only way out. In the years since, while writing this book, I’ve watched as others discovered bits and pieces of the Mass Privatization paradigm. I would write about a concept such as alignment, infi­nite wealth, the death of bureaucracy, democracy within business and two months later, there would be an entire book being published on the subject. As that occurred repeatedly, in all segments of society, the evidence for the Mass Privatization concept became overwhelming.

We try bit and pieces of Mass Privatization, by drifting from one fad program to another. This is because of our Industrial Age analysis bias. Analysis is a slow and piecemeal thought process, which focuses on one thing at a time. We see the activity documented in these books as fad programs, which we try independently. They mostly fail within controlled economies because: 1) Mass Privatization cannot effectively be piecemealed, 2) most managers have little vision of what is occurring as they drift from one fad program to another, 3) much of what defines a controlled economy directly opposes the new free market economy. The very definition, foundation and core of a controlled economy are in direct contradiction with these concepts.

There are two common threads that run through all of the activity and fad programs in Figure 7 above and Figure 8 below. They are all customer-focused and/or free-market-based. If one simply listens to the terminology of the many management programs one can easily hear the demands of the market, and what controlled economies are unable to provide. The market is asking for a shift within the enterprise from employees to real business owners, real internal suppliers and customers chains and real partners. Real profit and loss is being demanded instead of salaries, hourly wages and standardized compensation. The market is dictating a move away from supervisors, hierarchies, regulation and control to freedom, liberty and opportunity for all. Perhaps we could ignore one book or one fad program or even a handful. However, we cannot ignore it when the totality of business publishing and activity points towards Mass Privatization.

Customers are the Driving Force behind Human Liberation

The driving force behind the shift from controlled economies to free market economies is the natural desire for human freedom. Because of our analysis bias we seek to separate concepts like human liberation from business. However, today the most powerful branch of the human liberation movement comes directly from customers as they seek more freedom, options and choices from suppliers.

The controlled economy is a system established for a seller’s market, from a sales paradigm, when sellers controlled the economy. Centralized Wealth Creation is a foundation where a relatively few sellers could determine how, where and when everyone else’s needs would be met—internal and external customers. We have, in fact, had a “bureaucrat-driven market.

In a seller’s market, the seller mass-produces the same product for everyone regardless of the individual’s unique needs. The seller then charges the highest price the market will bear. It is a market where lead times are long. Sellers produce in large batches at their own pace and convenience. The vast majority of customers are controlled by and report to the single, monopolistic seller (the bureaucracy). It is an economy of stability, standardization and mind-numbing conformity. Quality is sacrificed at the expense of production and productivity. The seller’s market organizing system is the foundation upon which our industrial society rests.

The seller’s market foundation is not inherently bad, just primitive—having been created two hundred years ago. As we evolved from the scarcity of the Agricultural Age, buyers were glad to get whatever they could. Technology and human advancement were limiting factors.

In 1800, typical Americans had less than 300 products to chose from in their home­towns. Things have changed. Today we have many suppliers and choices. The average American has easy access to over one million products, and many suppliers for most things. An average super­market alone carries 25,000 products. Wal-Mart’s superstores carry 110,000 different items (Snider, Ziporyn, 1992, p6). However, all of our advanced technology, our entire production and wealth-creation systems, as well as all of society still rest on the rusty, primitive, bureaucracy-based seller’s market foundation.

Perhaps controlled economies could somewhat effectively manage a few dozen products and a few employees, mass-producing the same thing for everyone. Today we are asking it to effectively organize tens of thousands of products and people and to begin customizing for each individual customer.

It boils down to a matter of complexity. If companies were countries we would easily recognize the absurdity of central planning. In 1989 General Motors ranked as the 20th largest economy in the world based upon economic output. In fact, in 1989, 47 of the world’s largest 100 economies were corporations, not countries (Ackoff, 1994 p 147).

Today we know that countries are too complex to be run with systems of central planning and control, as we spent trillions opposing communism. We must come to understand that this is true of companies as well. How can we philosophically oppose a con­trolled economy such as Cuba or North Korea and simultaneously support the systems of a larger controlled economies such as General Mo­tors, IBM or AT&T?

Americans use to wonder why tens of millions of soviet citizens supported a system that systematically limited their freedoms and wealth opportunity. Yet we do exactly the same thing, as we believe in companies as our primary wealth-creation institution. This shows the difficulty of attaining perspective within a paradigm.

At its core, Centralized Wealth Creation was evolved for a low-tech, low information, stable, stationary, illiterate, ignorant population with simpler and smaller systems. To­day the population is more educated, mobile, versatile and informed. In addition, society has become more unstable, complex, interconnected, global, diverse, automated and advanced. As things have changed and evolved from the primitiveness of an early-stage industrial economy, there is only so far that a seller’s market foundation can be stretched towards a buyer’s market foundation.

If an economy truly had a buyer’s market foundation, customers would control it (this includes internal customers, today’s employees). Customers would have seemingly infinite choices and receive customized goods and services made specifically to their desires and receive them immediately with zero lead-time.

With the advent of the customer and quality movement sparked by Japan in the 70’s and 80’s, the seller’s market foundation has begun to crack. What was sparked by the Japanese has become a global state of chaos, with at least one new progressive management program introduced each week to better meet customer needs. With each failing program the cracks in the foundation grow larger as customer needs continue to accelerate and go unmet. Though progress is being made it is too slow and falls short of customers’ needs. We normally do not notice this shortfall because we are not really concerned with meeting customer needs. Because of the win/lose competitive paradigm we are only concerned with being a step ahead of the competition at meeting our customers needs. There are even entire value streams, involving dozens and hundreds of companies, missing the mark regarding what customers really want (Womack/Jones, 1996). 

Today the Information Superhighway threatens to explode the cracked Industrial Age foundation and create a new foundation. As the Information Superhighway opens markets globally and puts the “mom and pop” shop on an equal footing with large corporations, it lays the foundation for Mass Privatization.

From a Mass Production to Mass Customization Worldview

The mass production system has run out of steam on the threshold of the 21st century. Its down fall is the fact that the American marketplace is no longer made of interchangeable customer. … The old mass production system must be replaced. While a hierarchy allows management to control a stable, predictable Mass Production shop, it is the exact opposite of what is needed to empower a flexible, responsive workforce that is faced with a constantly changing marketplace.  Mass-Customized businesses thrive on flattened hierarchies that give autonomy to groups.  Each of these groups share information through communications networks so that each group is constantly aware of what it must do to respond to the new needs of the customer. Ö Believe it or not, flattening the hierarchy is the simple approach.  The most drastic structural innovation is to shatter it into independent pieces. –Joseph Pine, Mass Customization.

The shift from a seller’s to buyer’s market foundation is far more than a shift in production systems. It is a shift from the entire mass production foundation upon which civilization rests. Everything from representative democracy, to our factory style schools to manufacturing, to our view of justice, to civil rights, to competitive sports are all based upon the outdated mass production paradigm. The shift from mass production will mean the end of all of these institutions.

We are shifting to a customer-driven civilization based upon a new foundation of mass customization. As shown on the Age Wave chart in Figure 12, page 6 , society has begun to shift from a Mass Production to a Mass Customization system of production.

Mass Customization is exactly what it says: producing in volume, but at the same time giving each individual customer something different according to his or her unique needs. With mass production everybody receives the same thing regardless of individual needs.

Not only is this a new system of production, it will also form a new worldview in which, for example, our notions of “fairness” and “equality” are challenged as we come to understand that no two people’s needs are exactly the same. Equality, the cornerstone of representative democracy, in which “all men are created equal” and must get equal treatment, loses its meaning. It is a primitive “given” today in industrialized societies that no person is superior to another. Equality is merely a mass production notion where the goal is to give everyone the same “average treatment.” People, however, have very different needs. Mass production then by definition means that people will not get their needs met. Mass Production operates based upon homogenous averages and majorities because at its core it is based upon reducing variation, while stabilizing, controlling and mass producing the same thing thousands of times. In addition, Mass Production not only does not need diverse brainpower, it cannot tolerate it.

The focus of mass customization is on meeting each individual customer’s unique needs. We are shifting to a new civilization which operates upon customization, variation, creativity, chaos and diversity. A mass customization era will thrive and flourish on diversity, diverse brainpower and creativity. If suppliers are going to customize to meet infinite variations of customer needs, then they will need an infinite diversity of creative intelligence to do so. The more variation the better. This can only come through widely diverse people, six billion strong, controlling the wealth-creation process. Comparing this to the mass production era, we see a system that was and still is controlled by one very small minority—middle-aged white males. It simply does not take a lot of diverse intelligence to ignore specific, diverse needs and mass-produce the same product millions of times.

Business managers and political leaders could be as brilliant as Einstein, as creative as Da Vinci, as results-oriented as Attila the Hun, as honest as Washington, with the political leadership skills of Lincoln and Jefferson combined. Still, Centralized Wealth Creation would not be capable of meeting the market demands of a mass customized market. The collective intelligence is too low and too limited. The complexity of the market and its size pits the brains of a relatively few bureaucrats against thousands of billions of people’s indi­vidual, unique, unpredictable, moody, subjective and changing needs.

There is only one force on earth with the intelligence, knowledge, flexibil­ity and capacity to manage wealth-creation to meet these needs. This is the collective, diverse brainpower of the billions of individuals owning, planning and controlling work and wealth-creation, themselves, at the local level.

The intelligence found in diversity is the trait of the new mass customization era which will not only end racial, sexual and human division but also will cause us to embrace and thrive upon diversity. As mass customization flourishes through the freedom of the Mass Privatization enterprises, we will begin to see the end of racial division and racism as people begin thriving on diversity as millions of fortunes are made. 

The new civilization is one that at its roots will drive people to help, understand and partner with others very different from themselves, because this produces more intelligence and wealth for themselves. Meeting others’ needs is already driving wealth-creation in an infant Information Age. As we continue down this path, wealth-creation becomes the driving force for human understanding, tolerance, empathy and harmony.

The seller’s to buyer’s market shift, the shift from mass production to mass customization and the ramifications for human growth, plus the end of human division and hatred are subjects deep enough for books of their own.

The Intelligence Needed for Mass Customization

With knowledge being the primary creator of wealth in the Information Age, business enter­prises must have the ability to create very high levels of in­telligence and must themselves be extremely intelligent. The company, with one person reporting to another and with standardized compensation, is specifically designed to have the people towards the top doing the thinking. There is a division of labor between thinking and doing. With a few people at the top doing the thinking and the masses at the bottom doing the actual work, we inherently have a dumb organization. There simply are not enough brains thinking. Milliken, the textile manufacturer, like many in the South, at one point actually called its production workers “hands.” As we move towards Mass Privatization, Milliken transitioned to calling workers employees and now calls their employees associates.

Though companies like Milliken have taken steps to become an intelligent organization, they, like all other controlled economies, can have only limited success. This is because of the inherent limitations of the controlled economy and the piecemeal approach to change. There are limits to which most non-owning public workers will engage their minds. In addition, there are limits to the amount of thinking and creativity that a controlled economy can tolerate when variation is, at heart, its enemy. Ask any manager how to best produce quality or maintain order in a bureaucracy and he will tell you that it is done by continually reducing variation.

Because of the inherent low intelligence of controlled economies, with the thinking being done at the top, the intelligence quotient of a company is only a fraction of the sum of all of the individual employee’s IQ’s. It is a system where 1+1=0.1. The vast majority of an organization’s intelligence lies in the frontline employees, simply because this is where most of the brains are. Assuming, as most managers do, that managers are smarter than frontline employees, a company of 200 frontline employees averaging an IQ of 100 per employee, has a total front line employee IQ of 20,000, not including any synergistic effect. Given that the controlled economy has seven very smart managers, averaging IQ’s of 125 each and a CEO with a 150 IQ, the collective management IQ is 1025.

Including supervisors, engineers and other specialists, the collective IQ of those doing the thinking, managing, directing and controlling is 2935. The IQ ratio between the “hands,” and the “brains,” are out of whack. The less intelligent (2,935) collective is thinking for, directing and controlling the far more intelligent (20,000) collective. The subordinate, passionless, ownerless position of a public worker renders the bulk of employee brainpower mostly useless. Though steps are being taken to involve and empower employees it is too little and too slow with customer needs not being met and untold wasted potential.

The Industrial Age operated using this dumb organization because it did not take a lot of intelligence to mass-produce at the seller’s pace and desire. It, however, takes lots of intelligence to produce at billions of individual customer’s pace and desire. The dumb “mass production-based controlled economy” is, therefore, exactly the wrong organizing system and foundation for a knowledge era, where ideas and knowledge create the bulk of wealth in society.

As we are move to an era where knowledge is the ultimate wealth creator, it is reasonable that organi­zations of the future will operate like the brain; since the brain creates knowledge.

I know that neuro nets are the appropri­ate organiza­tional structure for a chaotic knowledge-based Information Age. When we look at the neural net­work of the brain we see the same basic pattern as the starburst organization. This is no coincidence. The organization of the present and future must be a naturally evolving learning organism. It must resemble the functions of a brain, including synergy, parallel processing, log­ical thinking, intuition, creativity and freedom of thought and expression.

The brain is made up of about 28 billion neurons or nerve cells. Neu­rons are tiny biological computers which, like personal computers, work off of electrical impulses. They are capable of processing about one mil­lion bits of infor­mation per second. It uses what equates to about 6,000 miles of wiring for each neuron. Though neurons in the brain act independently they also communicate with other neurons through a network of nerve fibers. Each human has about 100,000 miles of nerve fibers within their bodies (Robbins, 1991, p120). When we learn some­thing, we create a physical connec­tion between neurons called a neural connection.

In­telligence in a person is determined by how many of these paths of informa­tion there are between neurons. According to the National Academy of Sciences there are more possible connections in your brain than the total number of atomic particles in the entire universe (WOW!). The more neural connections we have in our brains the more intelligence we have to draw from and the more intelligent we are. The simple act of sharing in­formation be­tween two or more neurons creates intelligence. The same is true with people in organizations. Information technology is allowing humans to connect like neurons in a rapidly growing brain.

The brain utilizes what is called parallel processing, which is what gives it such power. Even though the brain takes a million times longer to send a signal than a computer switch, the brain can spread a signal to hundreds of thousands of other neurons in less than 20 millisec­onds. Most computers operate based upon one step-at-a-time serial processing, just like the majority of activity within controlled economies. This is what makes bureaucracies and computers relatively slow. Parallel processing is simply the notion that several brains, neurons, comput­ers or computer-processing chips can be working on a problem at the same time from different perspectives. By taking a number of people with aligned motives and providing aligned-incentives to openly communicate, parallel processing and synergy can natu­rally occur in organizations and society.

Synergy, knowledge, and intelligence are created when neurons communicate with each other in a brain. Likewise synergy, knowl­edge, and intelligence are cre­ated when people communicate with each other within an organization or society. In the organization, as well as the brain, the more neural con­nections there are, the more parallel processing there is, which means more communications and thus more intelligence and, therefore, more wealth created. By simply al­lowing, enabling and providing aligned in­centive for communications and connections, in a system such as Mass Privatization, the com­munications and thus gross intelligence and wealth of the group is increased.

In addition, when it comes to intelligence we find that diversity is the key component that creates intelligence. As Don Carew, co-author of The One-Minute Manager Builds High Performance Teams says, “If two people on a team think alike, then one of them is not needed.”  If all brains in one network think basically alike there will be less neural fir­ings, brain stimulations, fewer perspectives and therefore less intelligence created than a net­work with more di­verse brains. There will, therefore, be fewer ideas pro­duced and they will be less varied than a network with more variety.

Organizations of the future must be designed for maximum neural connection develop­ment. The system must have natural alignment towards building and creating more and better neural connections, diversity and have incentives for parallel, chaotic, free and massive informa­tion flow. As Toffler says, “When information flows, cash flows.”

The structure of the controlled economy inherently inhibits the free and chaotic information flow required for a truly intelligent organization. Companies as intelligent organizations cannot reach their logical conclusion because of control. Even concepts such as open book management can have only limited success in controlled economies. After all, at the core of a controlled economy is control—including control of information flow. It is critical to understand that control is the very heart of the controlled economy and bureaucracy. When the degree of control, required for today’s intelligent organization, is taken away we no longer have a company by today’s definition. We have Mass Privatization. Without control we lose the notion of management, employees, salaries and far more—the very things that define a company.

Because of control, even the companies that are making a genuine effort to be intelligent organizations are only tapping the smallest percentage of their potential. Only through a system such as Mass Privatization, where individuals are free to and have the motivation to engage and dig deep, to freely connect, communicate and collaborate with one another, can organizations produce the intelligence to meet customer’s unique and customized needs.

Copyright 2000 by Barry Carter


Next: Mass Privatization: Organizing in the Information Age

About Barry Carter.  

Infinite Wealth is available at the author’s website, and can be purchased in bookstores everywhere including Amazon and Barnes & Nobel. There is also an abbreviated free online version.

Reason Wilken’s Review of Infinite Wealth