NEMs and recession

man walking in chartWe all know “Institutionalised Capitalism”. It's a world in which economies of scale are self evident, branding is crucial and market entry is so often prohibitive. NEMs supplements that with “Atomised Capitalism”. The system breaks any buyer's requirement down to its smallest components then allows anyone to compete for each part. That efficiency can bring all sorts of opportunity to the lower levels of the income pyramid. It's also likely to be cheaper for the buyer, which encourages spending.

 

Realised assets

car side viewRight now you probably have unused assets for which others would pay. But there’s no market efficient enough to earn that income. Perhaps you have a car you’re not using this afternoon? Suppose you could instantly see what it might earn if let out in a local vehicle hire market. Imagine you could put it in the market with a couple of clicks, with total safety, and effortlessly see an uptick in your bank balance a few hours later. Might you do so?

Currently, there’s all sorts of reasons you wouldn't do this. Fears about trustworthiness of hirers, validation of driving licences, insurance issues, the hassle of transferring keys and signing over authority, need for delivery to a hirer plus payment collection would probably be top of the list. NEMs could instantly solve all these problems using a combination of:money in shape of car

  • new technologies
  • interlocking marketplaces across multiple sectors
  • unique legal status as public infrastructure.

No marketplace will ever be 100% watertight. But NEMs would be the safest, lowest overhead, fastest, most convenient way imaginable to turn the time of any person or asset into cash.

hand holding keyCars are one example of a NEMs sub-sector. Other vehicles that could be hired for a few hours, or more, downtime include: fork lifts, vans, trucks, mini-buses, agricultural machines, construction equipment and coaches.

Vehicles are just one sector. Anyone with a Nintendo or Playstation they don’t need this weekend could put it safely, instantly into the hire market. A neighbour could handle all the work of handover to buyers in return for a cut of the earnings. Your company has a meeting room that’s not required tomorrow morning? Let it out, but only to buyers with a track record of complaint-free hires of office space.

From a small start in one or two sectors, NEMs could expand organically across thousands of areas like this. Each new sector brings new, low level, resources into the economy. (NEMs' technology)

 

Time as asset

NEMs also helps anyone sell whatever time they have available. The system could offer a “My Opportunities” screen. Answer some questions about your location, qualifications, experience, availability and willingness to work. It will analyse market data, factor in your track record of reliability, then recommend sectors you might want to try.

girl cleaning windows- 1Perhaps window cleaning is one recommendation based on your circumstances: local rates are high with a premium for reliability and there’s a gap between demand and supply at weekends which is the time you want to work. As part of NEMs' benefits from government, all public sector window washing requirements have been broken down and moved progressively to the National Market. That’s enough core demand to start activity. NEMs has then scythed through all the unknowns that currently make getting windows washed so time consuming and uncertain for buyers. It's likely there’s been an expansion in overall demand.

girl cleaning window 2For the putative window cleaner, there’s minimal commitment required for market entry. You might try listing a few hours of availability next Saturday morning. As an unproven newcomer in the sector you’ll have to price cheaply to get the bookings. But you can be out of the market by lunchtime if it’s not  for you.

If it turns out squeegees aren’t your thing, NEMs can constantly offer other specific opportunities. Dog walking? Odd hours of employment at local call centres who may go onto provide specific training if they’re happy with your first few bookings? Home checks for people who are away? Anyone can have a personalised portfolio of opportunities in NEMs. If they reliably fulfil their bookings, the system promotes them up through its rankings, making them more and more attractive to buyers in all sectors.

 

Stimulus goes intravenous

news paper stack

What about the bleakest scenario? What could NEMs do in an area where there is no buying power, however efficient the market? It could then function as a uniquely efficient tool for administering government stimulus.

Suppose policymakers have earmarked $2m over 12 months to renovate the area in which you live. Currently that might typically create 60 or so jobs to refurbish public spaces. But, alternatively, think of that $2m as buying some core administrators plus 140,000 hours of local people at an averaged $12 an hour.

Adam Smith on noteIn this model, the funds could be used to create the core of a local market for periods of work. The $2m could engage an initial 1,000 local people for a few hours each week through the year. That keeps each of them in the labour market, building a verifiable track record. That pool of reliable people is only a few clicks away for other employers. 

Government could use NEMs to interact with citizens in all sorts of ways. A mature system could bring new levels of precision, incentive and targeting to:

  • welfare payments
  • skills training
  • volunteering/civic activity.

If economic conditions turn even worse, NEMs could become the platform for a sophisticated Official Complementary Currency. This would allow localised trading to flourish even while banks, property prices and export markets collapsed.

Whatever the currency, NEMs could short-circuit a Credit Crunch with ultra-efficient peer-to-peer loan markets. And it could create new investment opportunities, allowing anyone fo fund up-skilling of reliable NEMs sellers into underserved sectors. The return comes from an automatically deducted cut of their newly increased earnings.

 

Non PC?

help key on pc keyboardEverything described on this page is dependant on access to a computer and knowing how to use it. Does that exclude the 30% of first world populations who aren’t Personal Computer literate? It depends on the legislation that initiates NEMs.

The concession to operate these markets could generate enormous revenue for operators. Accompanying obligations might include:

  • a national programme to ensure everyone has access to these Modern Markets through kiosks
  • funding for a NEMs market in peer-to-peer NEMs training.

money fallingThis would mean anyone who wanted to learn how to use the new facility could perhaps sign up at their local library or Town Hall. They would then get a one-off five hours of training funded at the time and public place of their choosing. Their trainer would be a local person already accredited as a NEMs instructor who had competitively priced themselves into work in this market.

 

Overview