Capitalism 4.1... The Complexity Policy Frame and The Role of Government in Capitalism 4.1...

"We will stop this discussion of complexity tools and terminology and move on to the primary goal of this book;

To outline the complexity policy frame that sees the entire social system as a complex evolving system, and to spell out a role for government within that frame.

     While this new frame agrees that the system cannot be controled, it does accept that government  policy is crucial for the system to work and sees government as playing a role in the system's evolution. One aspect of policy involves attempting to make that role better - people, through government, and in partnership with private institutions, help influence the evolution of the economy in ways that they believe will be positive.

     This is a much more difficult policy role for government than any envisioned by the standard policy model, which sees government as outside the system correcting for market failures. p974

The Financial Crisis Comes Home To Roost on Pennsylvania Ave...

New Hampshire leads the Way - Throw the Bums OUT!!!

What we have here is Crony Capitalism and a Failure of Stewardship and Statesmanship...

Capitalism 4.1

EVOLVABILITY - What MARX did not understand is that conflicts can be resolved... Emergent Systems EVOLVE...to a new state ....not equilibrium....

Modular-Finance™, Emergent Systems & The Theory of Reflexivity

"Economic pluralism and political pluralism seem, in principle, separable. But there doen't seem to be any examples of being able to sustain one without the other."

Hat Tip ~ John Kay, British Economist

Railroads and Hegemons - "Globalization needs political patronage"

- Capitalism 4.0

A third clear difference between Capitalism 4.0 and the preceding versions of the system will be an understanding that markets and governments are both imperfect and prone to error. Acknowledging this inherent fallibility will not be paralyzing, but empowering, provided the new model of capitalism encourages experimentation and proves able to adapt to unexpected events. This capacity for institutional adaptation and ideological flexibility should be one of the distinctive features of the mixed economy of Capitalism 4.0. Competitive markets operate through trial and error and quickly correct small misjudgments. In politics, democratic competition plays a similar error correcting role. But markets can magnify errors instead of correcting them when herd instinct overtakes investors - and the same thing can happen in democracies when one ideology overwhelms all political debate. In a fast-moving, interdependent, and inherently unpredictable world, skepticism, experimentation, and flexibility are crucial. Adaptability and the willingness to admit errors will become a cardinal virtue in politicians and central bankers, as well as in businesspeople and financiers, in the world of Capitalism 4.0.

The Economic System Surrounding Artifacts and Designs

Modularity