11 February 2023

Beyond Zero-Sum Thinking to Economic Abundance

The idea of zero-sum thinking stifles economic progress by fostering the notion that resources are scarce and that one person's gain must come at the expense of another's loss. This mindset often results in a "us vs. them" mentality, as seen in policies such as "buy American" and the belief that immigrants are taking jobs away from citizens.

However, economic growth and prosperity can be achieved through cooperation and inclusivity, rather than exclusion and competition. It is not the availability of raw materials that determines the quality of our lives, but what we collectively create together, from products to institutions. For instance, bringing in immigrants can increase entrepreneurship and job creation, rather than cause job loss (as immigrants are 80% more likely to become entrepreneurs). Similarly, investing in welfare programs for those in poverty can result in a more productive and creative society, rather than merely redistributing resources from one group to another. Investing in poor children means they will have more opportunities to create value for all of us when they grow up.

It's crucial to understand that our economy has moved away from a zero-sum reality and now operates in a world of abundance. The limitations of poverty are not in our reality, but in our thinking. A shift from "we only have so much" to "we have so much" is crucial to unlock the potential for growth and prosperity for all.

Gone are the days when the zero-sum reality led Jesus to warn that "It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God." The idea that my gain comes at your expense is no longer true. We now live in a world where every time a person fails to realize their potential, it decreases the prosperity of the world. The more people we cooperate and create with, the more prosperous we can be.

No comments: