T-Economy Prosperity without Crises

34 Pages Posted: 8 Jan 2019

Date Written: October 20, 2018

Abstract

People are the original knowledge carriers of a society.

Here it is shown how prosperity will arise in the future where people live, when the individual can secure a stable, safe income for himself as a knowledge carrier by his own efforts. Economic crises, which hitherto faced the individual helpless, can be avoided in the future.

Knowledge is introduced as a quantifiable value and is thus economically just as resilient as income from work. If two sources of income, work and knowledge, are available in the digital world of the future, the prosperity of society as a whole can be increased accordingly.

To quantify knowledge, two new economic variables h and T are required. Where h, referred to as human potential, stands for a quantity of knowledge and T, referred to as economic temperature, for the income contribution (monetary value) of a human potential unit. Both variables result from the consistent application of market-based methods. This is demonstrated using the example of the shopping basket and the assessment of knowledge and skills, as is customary in business, science and administration. An economic science that uses these methods is referred to here as the T-Economy.

With the new methods, it can be proven quantitatively unequivocally that sufficient prosperity is generated in a digital world if broad-based cultural knowledge is promoted in the same way as productive knowledge. Productive knowledge determines how something gets into the shopping basket at a reasonable price. Cultural knowledge determines the variety of products in the shopping basket. Both together determine the prosperity of a society. In a digital world, the distinction between economy and culture is obsolete.

With its expanded, cultural knowledge base, the economically secured human being also becomes the political stabilizing factor of a democratic society.

Keywords: knowledge, human potential, economic temperature, prosperity, T-Economy, digital world, education, cultural knowledge, educational income, welfare, prosperity, development of income

Suggested Citation

Kreft, Hans-Diedrich and Martiny, Lutz, T-Economy Prosperity without Crises (October 20, 2018). Available at SSRN: https://ssrn.com/abstract=3310829 or http://dx.doi.org/10.2139/ssrn.3310829

Hans-Diedrich Kreft (Contact Author)

Shuccle AG ( email )

Ecksweg 4
Dassendorf, DE 21521
Germany
+49 4104 694796 (Phone)

Lutz Martiny

Independent ( email )

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