The Joys and Dangers of Impedence-Free Societies
by Kurt Cagle
The consequence of the more financial fallout on Wall St. is only now just beginning to hammer at the average American (and is at least on the horizon for the average Canadian). If you were employed in the housing or financial sectors, chances are rising that you're no longer in the housing or financial sectors. As the credit markets continue to seize up and the government bailouts begin to soar into the hundreds of billions of dollars, this WILL have a negative impact upon employment in most other sectors, I'm not going into the details - I'm sure that you are probably already as attuned to the shaky state of the economy as I am.
However, this has helped to highlight for me an issue that I'm seeing hit with increasing savagery. We live in an impedance economy, an economy in which the value of goods or services is directly proportional to the scarcity of those goods or services. On the commodities side this is reflected in dramatically rising food prices as demand for staple crops - rice, wheat, corn, soybeans - rises ... whether that rise be the rise of a Chinese and Indian middle class (with corresponding shifts in taste), reduced arable land due to climactic pressures, subsidization of ethanol, rising petroleum costs .. there are certainly enough vectors..
Ummm.... it means the scarce resources are talent and ideas.