The future is a knowledge economy — we’ve been hearing this for the last 15 years now. But it seems to me, no one is willing to recognize how different that is from the consumer economy. And while, yes, a highly educated populace is a necessity for a knowledge economy — once educated, where will these people be working?
Much of the work that is necessary in a knowledge economy does not fit into the 'unlimited growth and production equal profits’ of the consumer economy. Where will the funds come from to pay for the work done in a knowledge economy, since much of it does not generate profits? The traditional market sector is the only place where wealth is created, as far as our current economic models are concerned. The wealth created in the market/consumables sector is utilized by the private sector (profits generate salaries and taxes) and it also funds the government sector. When the market declines, the government is without its source of funding too. A knowledge economy does not fit nicely into a market economy — yet we keep trying to make a square peg fit into a round hole.
This article appears in Feb 10-16, 2010.