Saturday, April 17, 2010

Capitalism 2.0

How Monetary Incentives Are Counter Productive When Certain Ways Of Thinking Are Required


The Congress of the United States is considering sweeping financial reforms that should keep the our economy and the global economy in general from melting down, again.

To inform this effort a short piece on PBS the other night was presented that shows that monetary incentives are counterproductive when certain ways of thinking are required. Here is the link:

http://www.danpink.com/archives/2010/04/pbs-looks-at-motivation-and-candles

Last night on the radio program "This American Life" I listened to a piece that, to me, proved the premise when considering the melt down the economy endured in 2007-2008, and that we are still recovering from. Here is the link to that show:

http://www.thisamericanlife.org/radio-archives/episode/405/inside-job

These two shows should be REQUIRED viewing and listening for all members of the United States Congress as they consider the financial reforms.

And everyone in the financial industry (stocks, bonds, commodities, etc...) should also learn the lessons presented in this idea.

Paying attention to this is really a win-win thing.

Instituting reform for the types of behaviors will not only keep the planet's financial system from melting down again but also result in (sane) profits for business as compared to (insane profits).