Characteristics Of Economic Paradigm

An economic paradigm is a series of “informal rules created due to transactions between sellers and buyers” (“What is Economic Paradigm?”). The rules become commonplace, and become the status quo over time, which is agreed upon by the buyers and sellers. Specifically, the current economic paradigm relies on the assumptions made of the global economy after World War II. Subsequently, the monopoly on industrial development by the United States was a significant factor in the economic development of the world for the next half century. What characterizes this paradigm is a focus on globalization, modernization, and resources that may or may not still exist. A Nobel Peace Prize lecturer describes the six characteristics being: high rates of growth

This refers to the idea that American culture, with its global outreach, is colonizing the whole world in the process of globalization. On the other hand, the native inhabitants of developing nations are building the iPhones, Macbooks, PCs, and TVs for the Western countries to enjoy. This refers to outsourcing, where the industrial might of the U.S. and other Western countries are moved to other countries because it’s cheaper to have Chinese or Indian workers make the products than it would be to have production done in the West (U.S., U.K., Europe, etc.). The consequences are a loss of jobs, poor working conditions in said outsourcing factories, but higher wages than the native inhabitants receive currently. Overall, it’s been a good idea to industrialize nations that are underdeveloped, so that the standard of living increases and more countries can live at similar standards to the

Oil will not remain cheap, and will likely become scarce as a world resource. The solution has to be a mixture of new technologies and resources in order to adapt to a changing environment. Whether this means going out into Space or digging from the bottom of the Earth is anyone’s guess. Fundamentally, the current economic paradigm will not work given the fact that developing countries can’t industrialize too quickly without hurting the planet (through fossil fuel energies). One hopes that the world is able to understand why there cannot be an equal distribution of wealth when the Middle Class was built in the U.S., during conditions that aren’t replicable without another World War. Perhaps equality can be achieved beyond distributing wealth, and the lives of rich and poor individuals can be just as safe, healthy, and happy if certain steps are taken. But at the end of the day, I am not an economist and have no idea whether or not maintaining industrialization in certain areas will benefit the world, or even how the prices on various products affects everyday people. What concerns me is that we cannot rely on optimism alone to change the paradigm, or adapt in the current economic